Forbes Intelligent Investing: Will FDIC Proposal Work?
Written: July 8, 2009
The FDIC is looking into imposing harsher standards on private equity
firms that want to buy troubled banks. Will this slow the bank's progress
toward recovery?
With
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Stephen Roseman, Managing Member of Thesis Capital Management; and
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Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of http://BrokeAndBroker.com and http://RRBDLaw.com
Alexandra Zendrian, Forbes Editor: The Federal Deposit Insurance Corp. has put out for comment new standards for private equity groups that want to invest in banks. These new standards will raise the Tier 1 capital level to 15%, from 4%, and make private equity firms hold onto banks for three years instead of 18 months. Some believe that these higher standards could cause private equity firms to shy away from purchasing banks. More pressing, do these new standards mean more bank insolvency and less recovery?
To read the entire Intelligent Investing Panel interview, visit:
http://www.forbes.com/2009/07/08/fdic-banks-capital-intelligent-investing-equity.html
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