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0 0.000511810156955025 0.00130979373500335 0.00298831091641526 0.00292227089616304 0.00292227089616304 0.00292227089616304 0.00292227089616304
Stock impact report

FDIC opens door for private equity to buy failed banks [Yahoo! Finance]

First Citizens BancShares, Inc. - Class A (FCNCA) 
Company Research Source: Yahoo! Finance
The Federal Deposit Insurance Corp. rescinded a 2009 policy that kept nonbanks such as private equity firms from bidding on failed banks. The policy included “onerous and highly prescriptive measures,” according to a Thursday memo , including capital standards that don't apply to other failed bank acquisitions and restrictive limits on transactions. “The FDIC recognizes that nonbank entities such as private equity firms can play a significant role in the resolution process, given their ability to access and deploy significant pools of capital,” the agency wrote. Continuing to apply the policy “may have a deterrent effect on private capital investment and inhibit the infusion of a potentially significant flow of capital into failed institutions,” it wrote. The rationale for the policy shift comes from the regional bank crisis of 2023, when Silicon Valley Bank, Signature Bank and First Republic failed in quick succession. Nonbanks participated in the auctions of these three ban Show less Read more
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