US bank regulators clash over private equity rules

WASHINGTON, July 2 (Reuters) - U.S. bank regulators on Thursday clashed over stringent proposed guidelines for private equity investments in failed banks, with some officials expressing concern that the tough proposals could scare away needed capital.

The heads of the Office of the Comptroller of the Currency and the Office of Thrift Supervision both aired their concerns at a board meeting of the Federal Deposit Insurance Corp, during which the board proposed the new guidelines.

FDIC Chairman Sheila Bair said the guidelines need to include strong capital requirements and other provisions to ensure the safety and soundness of the banks, but said she is open to comments on the proposal.

The FDIC plans to hold a roundtable discussion on the proposal next week, Bair said. (Reporting by Karey Wutkowski, editing by Gerald E. McCormick)