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San Francisco
US regulators are stepping up their scrutiny of rules that enable buyers of failed banks to take an accounting gain – dubbed "Christmas capital" – by acquiring assets at a discount, according to people familiar with the discussions.
Regulators are discussing guidelines to limit how much of a bank's capital can be comprised of such gains. The talks involve leading bank regulators, including the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.
"The FDIC wants to make sure the acquirer has capital beyond the gain generated from the transaction," said one person with knowledge of these deals. The FDIC hopes to prevent acquirers of troubled banks from facing problems down the road if assets deteriorate.
http://www.ft.com/cms/s/0/5fed2092-3a94-11df-b6d5-00144feabdc0.html
