Alerts

FDIC Releases Final Policy Statement on Acquisitions and Investments in Failed Banks or Thrifts by Private Capital Investors

August 28, 2009

On August 26, 2009 the FDIC board of directors (the “FDIC Board”) adopted the Final Statement of Policy on Qualifications for Failed Bank Acquisitions (the “Final Statement”). The purpose of the Final Statement is to provide guidance to private capital investors interested in acquiring or investing in failed insured banks or thrifts (collectively referred to herein as “banks”) regarding the terms and conditions for such investments or acquisitions. In response to public comments, the Final Statement makes key changes to the following provisions of the FDIC’s Proposed Statement of Policy on Qualifications for Failed Bank Acquisitions (the “Proposed Statement”), as well as other limited revisions described in more detail below: (1) applicability of the provisions of the Final Statement, (2) capital commitment, (3) cross support obligation, and (4) source of strength. The Final Statement does not affect any of the existing requirements under federal banking law (including the requirement that any investor acquiring 25% or greater voting interest in a bank must register as a bank holding company). The FDIC Board will review the operation and impact of the Final Statement within 6 months from August 26, 2009 and will make adjustments as it deems necessary.