Emergency Clearance Request

FDII

Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990

Legal Division

August 26, 2009

Ms. Shagufta Ahmed
OMB Desk Officer
Office of Management and Budget
New Executive Office Building
Washington, DC 20503
Dear Ms. Ahmed:

The Federal Deposit Insurance Corporation ("FDIC") is seeking emergency review by
the Paperwork Reduction Act requirements contained in a Statement of
Policy on Qualifications for Failed Ban Acquisitions ("Policy Statement"). The Policy
Statement establishes guidance to private capital investors interested in acquiring or investing in
failed insured depository institutions with respect to terms and conditions for such investments or
acquisitions. The Policy Statement is being adopted and issued by the FDIC on

August 28,2009, of

August 26,2009, pursuant to its authority under sections 6, 7, 8, and 13 of

The Federal Deposit

Insurance Act ("FDI Act") (12 USC 1816, 1817, 1818, and 1823), respectively. These sections
of
the FDI Act require the FDIC to consider certain factors before a depository institution is
permitted to obtain federal deposit insurance; to refuse to permit a proposed change in ban

control if the proposed transaction would result in an adverse effect on the Deposit Insurance
Fund ("DIF"); to assess the safety and soundness of
the practices, operations, and conditions of
insured depository institutions; and to resolve troubled insured depository institutions and
the assets of such institutions using the method that is least costly to the DIF,
dispose of
maximizes the return from sale of such assets, and minimizes any loss to the DIF.

The Policy Statement was prepared in response to a significant rise in the number of bank
failures, a decrease in the number of interested and suitable insured depository institutions
acquirors, and an increased interest among private capital investors in acquiring the deposits and
other liabilities and assets of
failed bans. The FDIC's Board of
Directors is scheduled to meet
to consider the Policy Statement at its 3:30 p.m. meeting on August 26, 2008. Given the
unanticipated need for additional capital in the baning system and the contribution that private
equity capital from appropriate sources could make to meeting this need (provided that the
interests of private investors, their affiiates, and other related paries are consistent with basic

concepts contained in established baning laws and regulations as such concepts apply to the
ownership of insured depository institutions), it is imperative that the Policy Statement be
implemented immediately upon approval by the FDIC's Board of
Directors. We apologize for
the time constraints; however, the FDIC has determined that this request is dictated by the
exigencies of

the current situation. The FDIC believes that its ability to evaluate resolution

alternatives for the increasing number of failed institutions and to adequately assess risk to the

2

DIF posed by potential private capital investments wil be hampered if normal clearance
procedures are followed.
In compliance with the requirements of 5 CFR 1320.12, the FDIC has further determined
that the Policy Statement is consistent with the FDIC's mission to maintain the stability of and
public confidence in the national's financial system. The FDIC plans to follow this emergency
request with a request through normal clearance procedures and, in that process, will fully
consider comments on minimizing burden.
Thank you for your consideration of this request.

Sin:ei~ ./ 4 ~';?

~~-/#~
Robert E. Feldman
Executive Secretary