The Federal Reserve just eased regulations on minority ownership of banks, raising the percentage of stock ownership allowed to be raised without requiring registration as a bank holding company”

Key changes in the guidelines include allowing an investor to buy up to a 15 percent voting stake instead of the previous 9.9 percent limit. Investors can also buy up to 33 percent total equity interest, including voting and non-voting shares, instead of the 25 percent prior limit.

Allowing greater ownership before regulation, reminiscent of the S&L crisis, when many of these institutions were purchased by developers, who then lent to themselves at unrealistically attractive rates.

Of course, these days, it won’t be real estate developers, but private equity firms who can use this to exert influence over banks for capital.

Case in point, the founder of private-equity firm J.C. Flowers & Co., surprisingly enough a guy named J. Christopher Flowers, is buying the First National Bank of Cainesville in Missouri.

Not enough bullets.

H/T Calculated Risk.