FDIC Eases Restrictions to Let Nonbanks Acquire Failed Banks

After the 2008 financial crisis, the FDIC established a policy in 2009 governing acquisitions of failed banks. It required certain private-capital buyers to maintain a Tier 1 leverage ratio of at least 15% for the first three years and imposed a three-year holding restriction. Although designed to guard against high-risk capital, the rules also narrowed the pool of bidders. Expanding the range of eligible buyers could raise bids and reduce resolution costs borne by the Deposit Insurance Fund.

The FDIC board voted unanimously on March 19, 2026, to rescind the 2009 policy and related 2010 guidance in a question-and-answer document. The change took effect upon publication in the Federal Register on March 23. Nonbanks such as private equity firms may now participate in failed-bank auctions, but remain subject to reviews involving bank ownership and control. The move changes eligibility restrictions and does not involve a specific bank or acquisition amount.