Recent Regulatory Initiatives Pave Way for New Bank Investors

The announcement on Friday, November 21 of a regulatory first—the approval of a “shelf” or “expandable” charter—is the latest sign that bank regulators wish to encourage new equity investors in the banking market. The Office of the Comptroller of the Currency (OCC) touted the new charter of the Ford Group Bank—which positions the investor group to bid on assets and assume liabilities from the Federal Deposit Insurance Corporation (FDIC) as receiver of failed or failing institutions—as the first of its kind. Three private equity firms plan to invest in the bank holding company that will own the bank. This recent development was preceded by the OCC’s August approval of a small bank acquisition by an investor interested in bidding in future failed bank situations.

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