PRESS RELEASE
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
August 26, 2009
Media Contact:
Andrew Gray (202-898-7192)
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-152-2009
FDIC Board Approves Final Statement of Policy on the Acquisition
of Failed Depository Institutions
FOR IMMEDIATE RELEASE
The FDIC Board today adopted a final Statement of Policy on the Acquisition of Failed
Insured Depository Institutions. This policy statement provides guidance to investors
interested in acquiring or investing in the deposit liabilities of failed banks or thrifts about
the standards they will be expected to meet in order to qualify to bid on a failed
institution.
FDIC Chairman Sheila C. Bair said, "The Policy Statement strikes a thoughtful balance
to attract non-traditional investors in insured depository institutions while maintaining the
necessary safeguards to ensure that these investors approach banking in a way that is
transparent, long term and prudent. Most importantly, the statement assures that
acquired institutions will have adequate capital, that there will be stability in
management, and there will be strong protections to ensure that lending decisions will
be both objective and independent. It both protects the interests of taxpayers in a safe
and sound banking system, and provides the guidance that investors need to evaluate
investments in the deposit operations of failed institutions."
The FDIC wants all owners of banks or thrifts, whether they are individuals,
partnerships, limited liability companies, or corporations, to have the experience,
competence, and willingness to run the banks in a prudent manner, to support them
when they face difficulties, and to protect them from abuses. At the same time, the FDIC
has noted that the banking industry is in need of additional capital and that there is
capital available that could fill that need. In order to facilitate private capital investments
in the banking industry, the FDIC issued in July a Proposed Statement and sought
public comment on the proposal.
Federal Deposit Insurance Corporation Each Depositor insured to at least $250,000
August 26, 2009
Media Contact:
Andrew Gray (202-898-7192)
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-152-2009
FDIC Board Approves Final Statement of Policy on the Acquisition
of Failed Depository Institutions
FOR IMMEDIATE RELEASE
The FDIC Board today adopted a final Statement of Policy on the Acquisition of Failed
Insured Depository Institutions. This policy statement provides guidance to investors
interested in acquiring or investing in the deposit liabilities of failed banks or thrifts about
the standards they will be expected to meet in order to qualify to bid on a failed
institution.
FDIC Chairman Sheila C. Bair said, "The Policy Statement strikes a thoughtful balance
to attract non-traditional investors in insured depository institutions while maintaining the
necessary safeguards to ensure that these investors approach banking in a way that is
transparent, long term and prudent. Most importantly, the statement assures that
acquired institutions will have adequate capital, that there will be stability in
management, and there will be strong protections to ensure that lending decisions will
be both objective and independent. It both protects the interests of taxpayers in a safe
and sound banking system, and provides the guidance that investors need to evaluate
investments in the deposit operations of failed institutions."
The FDIC wants all owners of banks or thrifts, whether they are individuals,
partnerships, limited liability companies, or corporations, to have the experience,
competence, and willingness to run the banks in a prudent manner, to support them
when they face difficulties, and to protect them from abuses. At the same time, the FDIC
has noted that the banking industry is in need of additional capital and that there is
capital available that could fill that need. In order to facilitate private capital investments
in the banking industry, the FDIC issued in July a Proposed Statement and sought
public comment on the proposal.
The FDIC received a substantial number of comments on these standards, and they
provided helpful insight regarding the issues related to private capital investments. After
careful consideration of those comments, the FDIC has incorporated a number of
significant changes into a final policy statement. Those changes include, for example,
refining the description of the types of investors covered, changing the capital standard
to one that is a better measure of the capital available to absorb losses, and clarifying
the circumstances in which the cross support obligation would apply.
# # #
provided helpful insight regarding the issues related to private capital investments. After
careful consideration of those comments, the FDIC has incorporated a number of
significant changes into a final policy statement. Those changes include, for example,
refining the description of the types of investors covered, changing the capital standard
to one that is a better measure of the capital available to absorb losses, and clarifying
the circumstances in which the cross support obligation would apply.
# # #