On May 21, 2009 the FDIC issued a press release stating that we would provide guidance concerning acceptable structures for acquiring failed institutions. This Proposed Policy Statement would provide guidance to private capital investors interested in acquiring or investing in failed banks or thrifts regarding the terms and conditions of the investments or acquisitions.

I am particularly concerned with new owners’ ability to support depository institutions with adequate capital, management expertise, and a long term commitment to provide banking services in a safe and sound manner. Obviously, we want to maximize investor interest in failed bank resolutions. On the other hand, we don’t want to see these institutions coming back. I remain open minded on many aspects of this proposal, including the categories of investors to whom it should apply, the appropriate level of upfront capital commitments, and the operation of cross guarantee provisions and limits on affiliate transactions. I look forward to receiving comments in these areas.