Does the Statement of Policy apply to recapitalizations of existing banks? Would it apply if the recapitalized institution acquired a failed insured institution?
Recapitalizations of existing institutions are not subject to the Statement of Policy. Where new Investors have recently recapitalized an institution and the institution seeks to acquire a failing bank, the FDIC will review whether the additional capital was provided contingent on completion of failing bank acquisitions. The Statement of Policy will apply if any acquisition of one or more failed institutions occurs that in combination exceed 100% of the recapitalized institution’s total assets within an eighteen-month period following the recapitalization. Irrespective of the foregoing, any acquisitions will remain subject to otherwise applicable supervisory considerations or requirements. II. Applicability – De Minimis Investors. The statement of policy does not apply to any Investor with 5 percent or less of the total voting power of an acquired depository institution or its bank or thrift holding company provided there is no evidence of concerted action among these Investors.
