FDIC Sets Standards for Private-Equity Firms to Buy Shut Banks
Posted by WARREN MOSLER on August 26th, 2009
So why should capital ratios be a fuction of who the shareholders are?
FDIC Sets Standards for Private-Equity Firms to Buy Shut Banks
By Alison Vekshin
August 26 (Bloomberg) — The Federal Deposit Insurance Corp. approved guidelines for private-equity firms to buy failed banks, opening a growing pool of failing lenders to new buyers and limiting costs to the agency and the industry.
The FDIC board approved the rules today at a meeting in Washington, agreeing to lower to 10 percent from the proposed 15 percent the Tier 1 capital ratio private-equity investors must maintain after buying a bank.
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August 27th, 2009 at 2:30 am
So why should capital ratios be a fuction of who the shareholders are?
LOL! Because first by inflation, and then by deflation, this nation will be stole from j6p and passed to the rich. Too bad you aren’t in the “in” club and can get those superior capital ratios you little william black wannabe! The best way to rob a bank is to own the one with the best capital ratios!
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August 27th, 2009 at 7:34 am
Specifically, the FDIC raised the capital ratio for private equity buyers from 8% to 10%, but didn’t go to the proposed 15%.
This lowers the bids they get from private equity firms.
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August 28th, 2009 at 12:43 am
So your proposing the capital ratio should be the same for any purchaser public/private foreign/domestic, right?
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August 28th, 2009 at 7:09 am
right, until someone has a good reason to do otherwise
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