Notice2026-05646
Recission of the Statement of Policy on Qualifications for Failed Bank Acquisitions
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 23, 2026
Effective
March 23, 2026
Issuing agencies
Federal Deposit Insurance Corporation
Abstract
The Federal Deposit Insurance Corporation (FDIC) is taking final action to rescind the Statement of Policy on Qualifications for Failed Bank Acquisitions issued in 2009 and related questions and answers posted on its website in 2010.
Full Text
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<title>Federal Register, Volume 91 Issue 55 (Monday, March 23, 2026)</title>
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[Federal Register Volume 91, Number 55 (Monday, March 23, 2026)]
[Notices]
[Pages 13847-13848]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-05646]
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FEDERAL DEPOSIT INSURANCE CORPORATION
RIN 3064-ZA54
Recission of the Statement of Policy on Qualifications for Failed
Bank Acquisitions
AGENCY: Federal Deposit Insurance Corporation.
ACTION: Rescission of the Statement of Policy on Qualifications for
Failed Bank Acquisitions.
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SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is taking
final action to rescind the Statement of Policy on Qualifications for
Failed Bank Acquisitions issued in 2009 and related questions and
answers posted on its website in 2010.
DATES: The rescission is effective March 23, 2026.
FOR FURTHER INFORMATION CONTACT: Division of Risk Management
Supervision: Sandra Macias, Chief, Risk Management Applications
Section, (202) 898-3642, <a href="/cdn-cgi/l/email-protection#bbc8d6dad8d2dac8fbdddfd2d895dcd4cd"><span class="__cf_email__" data-cfemail="aeddc3cfcdc7cfddeec8cac7cd80c9c1d8">[email protected]</span></a>; Legal Division: Annmarie
Boyd, Assistant General Counsel, (202) 898-3714, <a href="/cdn-cgi/l/email-protection#0a6b6865736e4a6c6e6369246d657c"><span class="__cf_email__" data-cfemail="a4c5c6cbddc0e4c2c0cdc78ac3cbd2">[email protected]</span></a>;
Merritt Pardini, Counsel, (202) 898-6680, <a href="/cdn-cgi/l/email-protection#e88598899a8c818681a88e8c818bc68f879e"><span class="__cf_email__" data-cfemail="0c617c6d7e686562654c6a68656f226b637a">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
On September 2, 2009, the FDIC published a Statement of Policy on
Qualifications for Failed Bank Acquisitions (Statement of Policy)
following a 30-day comment period, with certain changes based on
comments received.\1\ In January 2010 and April 2010, the FDIC posted
online questions and answers on aspects of the Statement of Policy.\2\
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\1\ 74 FR 45440 (Sept. 2, 2009).
\2\ See Federal Deposit Insurance Corporation, Statement of
Policy on Qualifications for Failed Bank Acquisitions (last updated
Mar. 15, 2024).
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The Statement of Policy was issued to provide guidance to private
capital investors interested in acquiring the deposit liabilities, or
both the liabilities and assets, of failed insured depository
institutions, regarding the terms and conditions for such investments
or acquisitions. In so doing, it established extensive terms and
conditions that private capital investors were expected to satisfy
before they could become eligible to bid on a failing institution.
Since its publication, these standards have been applied to (1) private
investors in certain companies that sought to assume deposit
liabilities or both such deposit liabilities and assets from the
resolution of a failed insured depository institution; and (2) private
capital investors involved in applications for deposit insurance in
conjunction with de novo charters issued in connection with the
resolution of failed insured depository institutions.
The Statement of Policy included onerous and highly prescriptive
measures, including capital standards that would not be applicable in
any other failed bank acquisitions; imposition of an agreement to a
cross guarantee with respect to substantially commonly-owned depository
institutions; limits on transactions with affiliates that are more
restrictive than Sections 23A and 23B of the Federal Reserve Act; and
lengthy continuity of ownership requirements. The FDIC is concerned
that these and other aspects of the Statement of Policy may discourage
and potentially limit investments by nonbanks in connection with the
resolution of failed depository institutions. Accordingly, the FDIC is
rescinding the Statement of Policy.
II. Rationale for Rescission of the Statement of Policy
The rapid speed of the failures of Silicon Valley Bank, Signature
Bank, and First Republic in 2023 demonstrated the need for a practical
shift toward advance preparation by financial regulators and proactive
communication with potential acquirers. Although nonbanks participated
in FDIC auctions for these failed banks in 2023, their options for
bidding and the participation of additional nonbanks may have been
limited by the restrictions imposed by the Statement of Policy. The
FDIC recognizes that nonbank entities such as private equity firms can
play a significant role in the resolution process, given their ability
to access and deploy significant pools of capital. Because the
Statement of Policy is more restrictive than certain statutory
requirements, and also introduces another point of approval and
uncertainty for nonbanks in the failed bank acquisition process, the
FDIC believes that continuing to apply the Statement of Policy may have
a deterrent effect on private capital investment and inhibit the
infusion of a potentially significant flow of capital into failed
institutions. Given the increased speed with which a bank failure may
occur, in part driven by the advancement of technology and ongoing
evolution of the financial system, these impacts could, in turn, result
in considerably increased costs of resolution and risk to the Deposit
Insurance Fund. Potential investors will continue to be required to
comply with existing laws and regulations--including those governing
capital, control, affiliate transactions, and anti-money laundering/
countering the financing of terrorism requirements--and will be
expected to operate in a safe and sound manner following an
acquisition. Rescinding the Statement of Policy will improve the
ability of nonbanks to participate in the resolution process.
III. Administrative Law Matters
A. Administrative Procedure Act
Under 5 U.S.C. 553(b)(A), federal agencies are exempt from the
informal rulemaking provisions of the Administrative Procedure Act for
``general statements of policy.'' The Statement of Policy rescinded in
this notice provided guidance to private capital investors interested
in acquiring the deposit liabilities, or both the liabilities and
assets, of failed insured depository institutions regarding the way the
FDIC would exercise its discretionary authorities. As such, it is a
general statement of policy and exempt from the notice and comment
requirements of the Administrative Procedure Act.
B. Executive Order 12866
Executive Order 12866 as amended by Executive Order 14219 directs
certain agencies to assess costs and benefits of significant regulatory
actions and to select regulatory approaches that maximize net benefits
(including potential economic, environmental, public health and safety
effects, distributive impacts, and equity). Pursuant to section 3(f) of
Executive Order 12866, the Office of Information
[[Page 13848]]
and Regulatory Affairs within the Office of Management and Budget has
determined that the Rescission of the Statement of Policy on
Qualifications for Failed Bank Acquisitions is not a ``significant
regulatory action.''
C. Paperwork Reduction Act
In accordance with the requirements of the Paperwork Reduction Act
of 1995 (PRA),\3\ the FDIC may not conduct or sponsor, and the
respondent is not required to respond to, an information collection
unless it displays a currently valid Office of Management and Budget
(OMB) control number.
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\3\ 44 U.S.C. 3501 et seq.
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Rescission of the Statement of Policy does not create any new or
revise any existing collections of information under the PRA.
Therefore, no information collection request will be submitted to the
OMB for review.
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC on March 19, 2026.
Jennifer M. Jones,
Deputy Executive Secretary.
[FR Doc. 2026-05646 Filed 3-20-26; 8:45 am]
BILLING CODE 6714-01-P
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