Senior officials of the Federal Deposit Insurance Corporation (FDIC) yesterday held a roundtable discussion with a wide variety of interested groups, including public interest organizations, pension funds, private investors, investment managers, and others, to discuss the application of the FDIC Statement of Policy on the Acquisition of Failed Insured Institutions, published on September 2, 2009. The roundtable was part of the six-month review of the Statement of Policy mandated by the FDIC Board of Directors when it was adopted. By providing an opportunity for open dialogue with interested parties, the roundtable will help support improved application of the requirements contained in the Statement of Policy and the principles that underlie them.
"Bringing responsible new investors into the banking system is an important step towards a strengthened banking system," said FDIC Chairman Sheila C. Bair. "In doing so, we must also make sure that new investment supports strong banking institutions for the long term and meets the fundamental principles applicable to the ownership of insured depository institutions."
The FDIC Statement of Policy on the Acquisition of Failed Insured Institutions provides guidance to investors interested in acquiring or investing in the acquisition of failed banks or thrifts about the standards they will be expected to meet in order to qualify to bid on a failed institution.
"Since the adoption of the Statement of Policy, qualified private investors in new banks and in partnership with existing banks and holding companies have successfully bid on and acquired failed institutions. The Statement of Policy has been crucial tool and it continues to be our goal to have a transparent application process in order to give clear and timely answers," Chairman Bair said. "Today's roundtable was useful to help guide the FDIC's ongoing review of the Statement of Policy."
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,012 banks and savings associations and 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-63-2010