The FDIC board Wednesday approved revised guidance to private investors interesting in buying or investing in failed banks.
The Federal Deposit Insurance Corp. now requires a minimum capital requirement of 10% of the bank's assets, down from 15% in the original proposal that was announced July 9.
Specifically, private investors must keep the leverage ratio at 10% for the first three years of the bank's operation, subject to further extensions by the FDIC.
Private equity firms had complained that the original proposal was too stringent and would discourage private investments in failed banks.
The revised rules take effect once they are published in the Federal Register, which could take a couple of weeks, according to Catherine Topping, counsel, FDIC Legal Division.