FDIC Issues Revised FAQs Regarding Its Private Equity Policy State

On January 7, 2010, the Federal Deposit Insurance Corporation (FDIC) issued frequently asked questions (FAQs) regarding its Final Statement of Policy on Qualifications for Failed Bank Acquisitions (Policy Statement). See FDIC Adopts Modified Guidelines for PE Investments in Failed Institutions: The Debate Continues 21st Century Money, Banking & Commerce Alert® (Aug. 28, 2009). The FAQs are available here. These FAQs follow, with some important modifications, the FAQs that the FDIC issued on December 11, 2009, and quickly withdrew. See FDIC Issues and Withdraws FAQs Regarding Its Private Equity Policy Statement, 21st Century Money, Banking & Commerce Alert® (Dec. 23, 2009).

The Policy Statement encourages private equity investors (PE Investors) to co-invest with established banking organizations, and the FAQs clarify when such co-investments are exempt from the financial and operational requirements imposed by the Policy Statement on bidders for the assets and