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US FDIC meets private equity on failed bank deals

* Roundtable was held Monday afternoon

* More than 20 industry attendees

NEW YORK, March 23 (Reuters) - More than 20 private equity industry insiders debated rules put in place last year to govern private investment in failed banks at a roundtable held on Monday, U.S. regulators said.

The meeting was part of a six-month review of the rules, which include requirements that private investors hold a higher capital level than bank buyers. They were criticized at the time by the industry and some investors say they have dampened private equity deals in the sector.

The “roundtable was useful to help guide the FDIC’s ongoing review of the Statement of Policy,” Federal Deposit Insurance Corp Chairman Sheila Bair said in a statement.

The attendees at the FDIC’s roundtable meeting included private equity firms Carlyle Group [CYL.UL] and Warburg Pincus [WP.UL] and Stone Point Capital and banks and law firms such as Sandler O’Neill and Davis Polk & Wardwell.

For a full list of attendees: here

Since the rules were introduced, “qualified private investors... have successfully bid on and acquired failed institutions,” Bair said.

Data provided by the Private Equity Council, which the industry body said combined data from research firm PitchBook with data from Thomson Reuters, showed a drop in such deals.

In the 24 months between September 2007, the beginning of the bank capital-raising cycle, and August 26, 2009, when the FDIC Policy announced its final statement, private equity investment in insured depository institutions averaged $895 million per month, the council said.

In the six months following the FDIC Policy Statement, investment has averaged $58 million per month, a 94 percent decline, it said. (For more M&A news and our DealZone blog, go to www.reuters.com/deals) (Reporting by Megan Davies and Paritosh Bansal; Editing by Tim Dobbyn)

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