A Reagan-era chairman of the Federal Deposit Insurance Corp. is leading a group of investors, including former regulators and bankers, seeking to raise $1 billion to invest in failed lenders in the southeast, Bloomberg News reports Friday, citing people briefed on the plan.

William Isaac, who headed the FDIC from August 1981 to October 1985 under President Ronald Reagan, will lead the group — BSE Management LLC — and former Freddie Mac chief executive David Moffett and former Office of Thrift Supervision regional director John Ryan will help run the firm.

Plans call for raising $500 million initially. An outside spokesman for BSE said the firm doesn't comment on its potential fund-raising. Isaac didn't respond to requests for comment.

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