Menu
Banking Exchange Magazine Logo
Menu

FDIC seeks more notice over change in bank control requests

Majority of FDIC board vote for move towards new requirements

  • |
  • Written by  Banking Exchange staff
 
 
FDIC seeks more notice over change in bank control requests

The Federal Deposit Insurance Corporation Board has voted 3-2 to go ahead with a proposed rule that requires parties acquiring FDIC-insured institutions to give advanced notice, even if the Federal Reserve plans to review the change in control request.

As the requirements currently stand, no individual can acquire control of an insured depository institution without providing at least 60 days prior written notice to the appropriate federal banking agency.

The policy change was proposed by board member and Consumer Financial Protection Bureau Director Rohit Chopra, who said it would delete an “odd provision”  that gives the FDIC’s no review of changes in control for many transactions involving insured banks.

“I think it’s highly inappropriate for the FDIC to abdicate the responsibility Congress entrusted to us to safeguard the ownership and control of the banks we supervise,”  he said.

However, the FDIC’s regulations exempt transactions from the notice requirement in cases where the Fed reviews a Change in Bank Control notice.

In exemption cases where the Fed has accepted passive commitments from an investor, the FDIC has overruled the notice requirements.

The new rule would remove the exemption and request public comment regarding the FDIC’s overall approach to changes in control affecting FDIC-supervised institutions.

back to top

Sections

About Us

Connect With Us

Resources

Webinar:

Optimizing Payment Rails:
Smarter Solutions for Efficient Money Movement

Thursday, February 27 at 2:00 ET

Financial institutions are under pressure to deliver faster, more cost-effective, and user-friendly payment solutions. Smart routing and multi-rail optimization have emerged as key strategies to streamline payment processes and enhance the customer experience.

What You’ll Learn:

REGISTER NOW!

This webinar is brought to you by:

AlacritiBanking Exchange