A proposed acquisition of one large bank by another has prompted a joint public meeting by two federal banking agencies, ostensibly to collect information from stakeholders as the agencies evaluate the applications, the two said in a joint release Monday.
The Federal Reserve and the Office of the Comptroller of the Currency (OCC) said their joint meeting, set for March 8, will consider the proposal by U.S. Bancorp, Minneapolis, Minn., to acquire MUFG Union Bank, National Association, of San Francisco. The proposal includes the merger of Union Bank into U.S. Bank National Association, Cincinnati, Ohio, the agencies noted.
The agencies noted that, by law, they are required to evaluate several factors in acquisitions. Those include: the convenience and needs of the communities to be served by the combined organization; the insured depository institutions’ performance under the Community Reinvestment Act (CRA); 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; and the effectiveness of the companies and banks in combatting money laundering activities.
Also Monday, the agencies announced they are extending the public comment period for the applications to the Fed and OCC that are associated with the proposed acquisition. Comments on the applications will now be accepted through March 11, 2022.
The virtual meeting begins at 11 a.m. ET on March 8, the agencies said. Members of the public seeking to present oral comments must register by 12:00 p.m. EST on March 1, 2022, through the online registration webpage (see the link below for more information).