The FDIC took a considerable amount of criticism from the private equity community over its early July issuance of a Proposed Statement of Policy on Qualifications for Failed Bank Acquisitions which imposed significant burdens on bidders for failed banks. Many saw this Statement with its high capital requirements and long investment holding period as an example of the FDIC turning its back on a substantial source of new capital for the banking industry at a time when new capital is so sorely needed.

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