In a series of 21st Century Money, Banking & Commerce Alerts® and articles published by our attorneys throughout 2007 and 2008, we have traced developments in business structures and regulatory responses impacting investments in, or acquisitions of, healthy and failed banks by private equity and hedge funds. We have maintained that this trend would continue and have made suggestions over the last several years to modernize the regulatory landscape and eventually facilitate bidding for failed institutions by such firms. Copies of or cites to these articles and Alerts are available at:
http://www.ffhsj.com/index.cfm?pageID=28&aID=3
The FDIC announced on Friday, January 2, 2009, that for the first time since the early 1990's, it turned to a consortium of private equity investors to resolve the failure of a bank when it signed a letter of intent with IMB Management Holdings, LLP, to acquire IndyMac Federal Bank, FSB. The transaction is described by the FDIC at: http://www.fdic.gov/news/news/press/2009/pr09001.html. A fact sheet on the transaction is attached to the FDIC's announcement on its website.
While private equity transactions in the highly regulated business of banking include very complex issues, we believe that the need for capital will continue to generate similar transactions.
Copies of our book, "Equity Investments and Controlling Acquisitions Involving US Financial Institutions" on the rules of the road for such transactions are available at the above website address.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
