The Federal Deposit Insurance Corporation has proposed new guidelines for private equity firms that want to buy banks owned by the government body. Here, Financial News speaks with a top financial institutions lawyer at law firm Paul Hastings to discuss the consequences these proposals will have on groups’ willingness to invest in banks.

The FDIC's proposals, released yesterday, were met with predictable derision by the Private Equity Council, which represents the largest private equity firms in the US. The council said: "We believe that the FDIC's proposed guidance would deter future private investments in banks that need fresh capital."