FDIC Rescinds 2009 Failed Bank Acquisition Policy

JD Supra Finance & Banking

Published March 23rd, 2026

Detected March 30th, 2026

Summary

The FDIC Board of Directors rescinded its 2009 Statement of Policy on Qualifications for Failed Bank Acquisitions and related 2010 guidance effective March 23, 2026. The rescission removes heightened capital standards, cross-guarantee requirements, restrictive affiliate transaction limits, and lengthy continuity of ownership requirements that applied to private capital investors acquiring failed bank assets. The FDIC stated the restrictions may have discouraged nonbank participation in failed bank resolutions and increased costs to the Deposit Insurance Fund.

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What changed

The FDIC removed its 2009 Statement of Policy on Qualifications for Failed Bank Acquisitions and related 2010 guidance, effective March 23, 2026. The rescinded policy imposed 'onerous and highly prescriptive measures' including heightened capital standards, cross-guarantee requirements, restrictive affiliate transaction limits, and continuity of ownership requirements that applied to private equity and other nonbank investors seeking to acquire failed bank assets or deposit liabilities. The FDIC specifically noted that while nonbanks participated in resolutions following prominent bank failures in 2023, their bidding options may have been constrained by these requirements.

Compliance officers at banks and asset managers should review the removal of these restrictions when evaluating future failed bank acquisition opportunities. Investors must still comply with existing laws governing capital adequacy, control determinations, affiliate transactions, and BSA/AML requirements. The FDIC emphasized that acquirers will be expected to operate in a safe and sound manner post-acquisition despite the relaxed entry requirements. Private equity firms and other nonbank investors previously deterred by the prescriptive standards now face fewer regulatory barriers to participating in FDIC auctions.

What to do next

Review the rescission to determine how removed restrictions affect acquisition strategies
Update compliance frameworks to reflect the elimination of prior capital standards and ownership continuity requirements
Confirm BSA/AML and safe/sound operation obligations remain in effect for all future acquisitions

Source document (simplified)

March 30, 2026

FDIC rescinds 2009 policy on failed bank acquisitions

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On March 19, the FDIC Board of Directors announced the rescission of its 2009 “Statement of Policy on Qualifications for Failed Bank Acquisitions” and related 2010 guidance, effective March 23. The FDIC described the rescinded policy as imposing “onerous and highly prescriptive measures” on private capital investors seeking to acquire failed bank assets or deposit liabilities, including heightened capital standards, cross-guarantee requirements, “restrictive” affiliate transaction limits, and “lengthy” continuity of ownership requirements. The agency asserted that these restrictions may have discouraged nonbank participation in the resolution process, noting that, while nonbanks participated in FDIC auctions following prominent bank failures in 2023, their bidding options may have been limited by the policy’s requirements.

The FDIC said the rescission is intended to remove regulatory barriers for nonbank entities such as private equity firms to participate in bids on failed banks and to reduce costs to the Deposit Insurance Fund. The FDIC emphasized that potential investors must comply with existing laws and regulations governing capital, control, affiliate transactions, and BSA/AML requirements, and will be expected to operate in a safe and sound manner following an acquisition.

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Named provisions

Statement of Policy on Qualifications for Failed Bank Acquisitions Affiliate Transaction Limits Continuity of Ownership Requirements Cross-Guarantee Requirements