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US toughens up on bank buy-outs
FT Alphaville —
Private equity that want to buy troubled banks would have to maintain significant capital levels and promise not to “flip’’ investments for at least three years, under proposals by US regulator s. The proposed rules, which would require buyout firms to maintain a tier one capital ratio of at least 15% - three times the level typically required of other banks - for at least three years, were introduced on Thursday despite disagreements among regulators over how far the requirements should go.
No-flipping, increased-capital rules proposed for buying troubled banks
BloggingStocks —
... Why is this idea of flipping real estate important now? Well, it seems that private equity investors buying troubled banks will be prohibited from "flipping" the bank for at least three years. In addition, regulators are requiring purchasers to maintain a capital ratio of 15%, three times the ratio required of other banks. ...
