The FDIC will allow private equity firms and other nonbanks to bid on failed banks.

Speaking at a conference, FDIC Acting Chairman Travis Hill said, “Today, nonbanks control substantial pools of capital that can be deployed to bid on assets of failed institutions and can be used in partnership with banks to bid on entire institutions. As an example of our work in this area, the FDIC has developed a seller-financing program for nonbank bidders, to increase competition by including private equity firms and other nonbank entities in the marketing process, and thereby ultimately reduce costs to the DIF.”

The FDIC has developed a pre-qualification process for nonbank bidders, with the intent of qualifying nonbank bidders in advance of any offering. The pilot process will begin in January 2026.

Author: sdbrownlow

Student of Design