WASHINGTON — Regulators were working up until the eleventh hour to piece together a final policy today on allowing nonbank firms to buy failing institutions.

The Federal Deposit Insurance Corp. is expected to dilute its policy on private-equity bank investments significantly, but sources said exact details remained in flux ahead of a scheduled board meeting this afternoon.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.