Financial Times FT.com

Bank capital changes opposed

By Henny Sender in New York

Published: July 8 2009 03:00 | Last updated: July 8 2009 03:00

Private equity investors have objected to a new rule proposed by regulators that would require them to inject nearly four times the minimum capital normally required into troubled banks in which they invest.

The objections were raised during a marathon meeting this week between Sheila Bair, chairman of the Federal Deposit Insurance Corp, and private equity and other potential investors in troubled banks. It came a week after the regulator proposed new policies governing private capital investment in failed banks.

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