The Am Law world got to flex its muscles Wednesday when the Federal Deposit Insurance Corporation backed off of stringent proposed rules that would have governed private equity investment in failed banks.
As we reported last week, Am Law’s biggest names submitted letter after letter urging the FDIC to back off the regulations, including a rule that would have required PE firms interested in owning part of a failed bank to maintain a Tier 1 capital ratio of at least 15 percent — three times higher than the five percent capital ratio required for banks designated as “well-capitalized companies.”
