The board of the US Federal Deposit Insurance Corporation on Wednesday voted 4-1 to require private equity buyers of banks to maintain a Tier One capital ratio of 10%, scaling back an initial proposal to require a capital ratio of 15% – three times the usual standard. The regulator also dropped a proposed requirement for private equity buyers be a “source of strength” for banks they buy – meaning they might have to provide extra support – amid ongoing need among troubled lenders to raise fresh capital.

This entry was posted by Gwen Robinson on Thursday, August 27th, 2009 at 5:16 and is filed under Capital markets, M&A, Private equity. Tagged with fdic. Edit this entry.