FDIC Sees Anonymity in Equity Funds as Obstacle to Buying Failed Banks, Says U.S. Official

By Colby Adams

U.S. officials are continuing to contend with having to determine whether private equity firms investing in failed banks have prohibited links to bank secrecy jurisdictions, according to a federal official. Private equity funds, a type of collective investment used at times to buy troubled companies that can later be resold at a profit, generally operate with minimal regulation and have gained a reputation for taking on high-risk acquisitions. The funds raised over $245 billion in 2009, according to the Private Equity Growth Capital Council, a Washington, D.C.-based advocacy group. But while proponents of the funds contend that they can provide...