Formations, Acquisitions, and Mergers of Bank Holding Companies
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This law outlines the process and regulations surrounding the formation, acquisition, and merger of bank holding companies in the United States. It details the requirements for companies seeking to become bank holding companies or to acquire control of existing banks or nonbanking companies. The law emphasizes the need for public comment and compliance with the standards set out in the Bank Holding Company Act of 1956.
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Key Changes
- Regulations on forming and acquiring bank holding companies
- Public comment process for proposed acquisitions
- Compliance with standards in the Bank Holding Company Act
Obligations
What this law requires
Companies seeking to become a bank holding company must submit an application to the Board of Governors of the Federal Reserve System pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) and Regulation Y (12 CFR part 225)
Companies must obtain Board approval before acquiring the assets, ownership, control, or voting shares of a bank or bank holding company
Applicants seeking to acquire a nonbanking company must demonstrate compliance with section 4 of the BHC Act (12 U.S.C. 1843) standards
Public portions of applications and related filings must be made available for inspection at the appropriate Federal Reserve Bank and Board of Governors offices
Interested persons must submit written comments on BHC Act standards (12 U.S.C. 1842(c)) to the specified Reserve Bank or Board of Governors office by the published deadline