Americas staff writer
The Federal Deposit Insurance Fund (FDIC) is nervous. In the
past year its deposit insurance fund, which insures more than
$6 trillion in deposits, dropped below $10.5 billion for the
first time since 1993. Its balance sheet added more than 120
troubled banks (some of which have since been sold) in the past
two years and there are 416 more on its Problem List.
So the FDIC is liberalising its guidelines for bidding on
failed banks to bring in more buyers, and private equity firms
are first in line. With un-deployed capital and a desire to get
into a market previously closed to them, private equity is
eager to buy the banks.
On July 9 2009 the FDIC proposed guidelines for private
equity bids on these failed banks. Those proposals were met
with wide criticism; the FDIC policy statement released on
August 26 revises the...