A Federal Deposit Insurance Corp. plan to place new restrictions on private-equity firms seeking to buy failed banks is facing strong opposition from fellow bank regulators and could temporarily freeze all private-equity activity in bank acquisitions.

Under the plan, private-equity firms would face additional capital, cross-guarantee and disclosure requirements if they buy a failed bank. Though FDIC officials said the proposal was balanced, Wilbur Ross, a prominent investor, warned it went too far and other regulators said it could increase resolution costs.

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