As we noted last week, with bank failures at their highest level in 17 years, the FDIC’s insurance fund, which protects bank deposits from disappearing, is in danger of disappearing itself.

So far this year, the FDIC has shut down 81 banks, shrinking the insurance fund to $13 billion, down from $52.8 billion a year ago.

We also noted that the FDIC was weighing controversial plans to entice risk-taking private-equity firms to buy failed banks, which should ease the burden on the fund.

Now Bloomberg News is reporting that the FDIC’s board, which meets tomorrow, is poised to approve those plans.

In July, the FDIC originally proposed strict rules for how firms can acquire failing banks and their assets, sparking opposition from the private investment industry.

The current proposal before the FDIC appears to be a compromise intended to stop the bleeding at the insurance fund. Bloomberg and the New York Times are reporting that the FDIC might relax its earlier plan to require higher capital requirements for private equity firms than for banks. The FDIC also may abandon plans to require a firm with investments in more than one failed bank to provide guarantees for losses based on the size of the investment in the banks.

The New York Times described some of these steps as “unheard of even a few months ago.” From the Times:

Some officials fear that private equity firms might engage in more risky lending to bolster their returns and be fickle, short-term investors in a business that demands stability.

But as Bloomberg pointed out, private-equity firms still may be reluctant to start buying teetering banks out of concern the FDIC could modify the rules later.

And, of course, the FDIC hasn’t officially approved anything yet. We’ll update you tomorrow after the board votes.