Based on a number of sources, we understand that banks that submit their applications to the FDIC are getting a request for the ratios right after they submit the information and are hearing within a couple of days whether they will, or are expected to be, eligible.  If they are not eligible, banks are being given the opportunity to withdraw the applications to avoid reputational issues.

We have also been advised by the regulators that particularly high capital ratios will not be a basis for the FDIC to find a bank ineligible.  From the regulator’s perspective, you cannot have too much capital.