Fed, OCC seek comments on bank acquisition
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Banking, Corporate Governance, Inside the Beltway
Wednesday, June 1, 2022
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The Federal Reserve and the Office of the Comptroller of the Currency (OCC) announced a joint public meeting on the proposal by Bank of Montreal and BMO Harris Bank national Association to acquire BancWest Holing and Bank of the West.
Though a public comment period is required by law for every application for a bank merger or acquisition, it has not been common practice to hold public hearings on specific applications. The scheduling of public hearings relating to larger bank mergers is likely a tool being utilized by Fed and OCC to slow the rate of larger mergers as the they and other banking regulators work to heighten restrictions and scrutiny on large bank mergers, some experts speculate.
The purpose of the meeting is to collect information and comments from stakeholders as the agencies evaluate the proposed acquisition application. By law, the agencies are required to evaluate:
- The convenience and needs of the communities to be served by the combined organization.
- The insured depository institutions’ performance under the Community Reinvestment Act.
- Competition in the relevant markets.
- The effects of the proposal on the stability of the U.S. banking or financial system.
- The financial and managerial resources and future prospects of the companies and banks involved in the proposal.
- The effectiveness of the companies and banks in combatting money laundering activities.
The public meeting will be conducted virtually on July 14, 2022. The regulators also have extended the public comment period associated with the proposal through July 19, 2022.
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