Control and Divestiture Proceedings

Control and Divestiture Proceedings
Subject: Bank control
Agency: Federal Reserve
Status: Final rule
The Board is adopting a final rule to revise the Board’s regulations related to determinations of whether a company has the ability to exercise a controlling influence over another company for purposes of the Bank Holding Company Act or the Home Owners’ Loan Act. The final rule expands the number of presumptions for use in such determinations. By codifying the presumptions in the Board’s Regulation Y and Regulation LL, the Board’s rules will provide substantial additional transparency on the types of relationships that the Board generally views as supporting a determination that one company controls another company. The final rule is largely consistent with the proposal and includes certain targeted adjustments to the Board’s historical practice, as described in detail in the Supplementary Information.
FR Doc:

2020-03398; 2020-06993 (effective date delayed)

Date proposed: April 23, 2019
Comments due date:

July 15, 2019

Final rule effective date: April 1, 2020 Sept. 30, 2020
Rule compliance date:
Agency release:

Related Reg Report item(s):

Final rule codifies presumptions used by Fed to determine bank control; some adjustments from past practice included

Fed proposes to codify how it determines when a firm takes control of a bank