Other Changes in Bank Control
The Change in Bank Control Act of 1978 authorizes the federal bank regulatory
agencies to deny proposals by a single “person” (which includes an individual or
an entity), or several persons acting in concert, to acquire control of an
insured bank or a bank holding company. The Federal Reserve is responsible for
approving changes in the control of bank holding companies and state member
banks, and the FDIC and the OCC (Office of the Comptroller of
the Currency)
are responsible for approving changes in the
control of insured state nonmember and national banks, respectively. In
considering a proposal under the act, the Federal Reserve must review several
factors, including the financial condition, competence, experience, and
integrity of the acquiring person or group of persons; the effect of the
transaction on competition; and the adequacy of the information provided by the
acquiring party.