In the latest attempt to prevent bank failures, the Wall Street Journal reports that, “the Federal Reserve is considering steps to make it easier for private-equity firms and others to invest in banks.”

Many experts believe the US banking system is on the verge of a series of bank failures, both at the local and national level.

Federal Deposit Insurance Corp Chairman Sheila Bair recently made the comment that, “there is also the possibility that future failures could include institutions of greater size than we have seen in the recent past.”

To date this year, 4 small FDIC-insured banks in the US have failed and 90 have been placed on the FDIC’s troubled lists.  These 90 banks a combined $26 billion in assets, which is half of the FDIC’s deposit insurance fund. No wonder they are considering private equity as a solution.