US bank ownership rules: Looser Feds

Investors can now take larger stakes in US banks before tripping the threshold that makes them subject to government regulation. The Federal Reserve has loosened the rules to allow investors to own up to 33% of a bank’s equity, and be represented on the board, without being considered a bank holding company. Investors, including private equity firms, lobbied for these changes for months. The problem, though, few private investors will be eager to invest in banks now. Early investors have already...