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US toughens up on bank buy-outs

Private equity that want to buy troubled banks would have to maintain significant capital levels and promise not to “flip’’ investments for at least three years, under proposals by US regulators. The proposed rules, which would require buyout firms to maintain a tier one capital ratio of at least 15% - three times the level typically required of other banks - for at least three years, were introduced on Thursday despite disagreements among regulators over how far the requirements should go.