FDIC Proposes Standards Applicable to Buyers of Failed Thrifts

In an effort to provide guidance to private investors interested in acquiring or investing in failed depository institutions in receivership, on July 1, 2009, the Federal Deposit Insurance Corporation (FDIC) proposed eligibility standards for investors who are not already owners of a bank or thrift holding company.  As defined in the FDIC’s proposed policy statement, “Investors” means (a) private capital investors in a company (other than a bank or thrift holding company existing or acquired at least three years prior to the effective date of the proposed policy) that proposes to directly or indirectly assume deposit liabilities and/or assets from a failed insured depository institution in receivership, and (b) in the case of de novo charters issued in connection with the resolution of failed insured depository institutions, applicants for insurance.

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