Federal Reserve Loosens Limitations on Private Equity Investments in Banking Organizations

Private Equity/Financial Institutions
September 25, 2008

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Stuart C. Johnson
Robert D. Klingler
Kathryn Knudson
Amanda Lang Norcross

On September 22, 2008, the Federal Reserve Board issued a policy statement easing the limitations on private equity investments in banks and bank holding companies.  The policy statement addresses when such an investment creates a presumption of “control” which would require registration as a bank holding company.  

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