FDIC Paves the Way for Private Investors to Recapitalize Troubled Banks and Bid for Failed Banks
May 5, 2010
The recently announced high profile recapitalization of Pacific Capital Bancorp by investor Gerald Ford and affiliates, coupled with the FAQ issued by the FDIC on April 23, 2010, indicates that private equity has several paths to successfully enter the queue for failed bank acquisitions and troubled bank recapitalizations. However, it is also clear that the FDIC, as gatekeeper, is primarily opening the door to “patient” money invested by “anchor groups” who are willing to subject themselves to federal bank agency scrutiny. It remains extremely important for such potential investors to engage qualified bank regulatory attorneys and consult closely and