Private Equity

Fed’s Move Has Some Recalling S&L Crisis 

Are policymakers making the same mistakes we observed in the early days of the S&L crisis? Late Monday, the Federal Reserve revised key rules surrounding bank holding companies, loosening ownership restrictions to allow private equity firms to take a larger chunk of banks. In particular, the Fed said it will allow private equity investors to take at least one seat on the board of directors at bank holding companies — and, in certain cases, two.