Acting Comptroller of the Currency Announces Proposed Rulemaking Regarding Bank Mergers
Proposed Rule to Eliminate the Availability of Automatic Expedited Approvals and Streamlined Applications for Bank Mergers
On January 29, 2024, Acting Comptroller of the Currency Michael Hsu spoke at the University of Michigan Stephen M. Ross School of Business on “What Should the U.S. Banking System Look Like? Diverse, Dynamic, and Balanced†(the “Remarks,†available here). The Remarks call for the development of a “macro view†of the banking system—one that holistically evaluates the impact of bank mergers on the banking system and the U.S. economy—as a way to improve “transparency and trust†in the Office of the Comptroller’s (the “OCCâ€) “micro,†case-by-case approach to reviewing bank merger applications.
In furtherance of that objective, Mr. Hsu announced that the OCC is today releasing a notice of proposed rulemaking (available here) inviting comment on a proposal to amend its regulations governing business combination applications to remove (i) provisions related to the expedited review and “deemed approval†of such applications in certain circumstances and (ii) the availability of a streamlined application for these types of transactions. Importantly, the proposed rule seeks comment on a draft policy statement summarizing the principles the OCC uses when reviewing proposed bank mergers, which could be read as differing in certain critical respects from current policy and practice.
Comments on the proposed rule will be due 60 days after publication in the Federal Register.
