U.S. Drafting New Rules To Spur PE Investment in Banks
(Reuters) - U.S. regulators are drawing up rules that would make it easier for private equity firms to acquire troubled banks, aiming to free up more funds to recapitalise lenders, the Financial Times reported, citing people close to the situation. The plan, which has yet to be finalised, may require private equity companies to inject substantial capital into lenders and to agree not to sell them for at least two years, the newspaper reported. Obama administration officials continue to stress concerns about ensuring sufficient capital in the financial system, even as several financial institutions have begun lining up to return funds borrowed under the government's $700 billion troubled asset relief program to cope with the financial crisis.
