Bank holding regulation: Balancing act

Banks are in need of capital, and buyout funds are flush with cash and eager for investments with built-in leverage. But regulations on control of US banks are helping to keep them apart. Maybe not for long: buyout firms might try to change the rules - or find ways to work within them. One big hang-up is the US Bank Holding Company Act, or BHCA. This legislation was written in 1956 so the Federal Reserve could keep tabs on the owners of regulated banks. It applies if a company owns 25% or more ...