FDIC to rescind policy on nonbanks acquisition of failed banks

The Federal Deposit Insurance Corporation board rescinded a 2009 policy that prevented private equity firms and other nonbanks from bidding on failed banks.

The FDIC notice reads:

“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.”

The rescission is effective as of March 23, 2026.