High Time to Revisit Bank Control Rules
Banks are beginning to shake off eight years of financial cobwebs that have gummed up potential mergers, acquisitions and a variety of other transactions. A number of new rules will require domestic and foreign institutions to attract new capital, dispose of assets, sell or create new subsidiaries and affiliates and set up new domestic holding companies.
With all of these changes and more on the horizon, it is an opportune time for federal bank regulators to reevaluate control rules and the restrictions on minority investments in banks and bank holding companies. Revising the current rules could make more capital from private equity, hedge funds and other institutional investors available to banking institutions.
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