To increase potential bidders for failed banks, the Federal Deposit Insurance Corp. weakened its rules for private-equity firms interested in buying troubled lenders. In a 4-1 vote, the FDIC board reduced the requirement for Tier 1 capital ratio from 15%, which was proposed in July, to 10%. Banks owned by private equity must maintain the 10% ratio for a minimum of three years. "The policy statement strikes a thoughtful balance to attract nontraditional investors in insured depository institutions while maintaining the necessary safeguards," said FDIC Chairwoman Sheila Bair.
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