Restrictions on bank buyouts draw criticism (Dealscape

Private equity investors say the Federal Deposit Insurance Corp.'s easing of regulations on buying failed banks does not go far enough. The FDIC on Wednesday lowered the Tier 1 capital requirement that private equity firms must maintain after acquiring a failed bank to 10% from the originally proposed 15%.

"It's still an impediment," said one private equity investor, as the 10% threshold is still twice the 5% cushion required of healthy banks as buyers. "It's tilting the playing field" in favor of strategic players at a time when the regulator is hoping to invite private capital investment into the distressed bank sector, he added.

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NOT A SUBSCRIBER? Restrictions on bank buyouts draw criticism Posted on August 27, 2009 9:30 PM Private equity investors say the Federal Deposit Insurance Corp.'s easing of regulations on buying failed banks does not go far enough. The FDIC on Wednesday lowered the Tier 1 capital requirement that private equity firms must maintain after acquiring a failed bank to 10% from the originally proposed 15%. "It's still an impediment," said one private equity investor, as the 10% threshold is still twice the 5% cushion required of healthy banks as buyers. "It's tilting the playing field" in favor of strategic players at a time when the regulator is hoping to invite private capital investment into the distressed bank sector, he added. This is a free content preview. Subscribers enjoy access to all stories in full as well as second-to-none market intelligence. Dig deeper, with Pipeline. 220 in-depth reports of PE deals in the Financial Services sector form the past year 25 articles related to Guaranty Financial Group Inc. 16 in-depth transaction records for Banco Bilbao Vizcaya Argentaria SA 11 articles related to Flexpoint Ford LLC 10 years of news and analysis archives from the voice of The Deal Economy Most searched keywords Deutsche Bank Birds Eye Cadbury AG Agrium Inc. Skadden Arps Revolution Money Tandberg ASA Aisling Capital Ken Lewis Natco		EXISTING USERS Username Password Forget your password? Missing a product?

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