In a final statement of stringent bank-merger policy, the FDIC has finalized a little-changed version of its March proposal to do so. It will make it difficult for all but the smallest and simplest transactions within its jurisdiction to have the clear prospect of regulatory action usually necessary in nonemergency transactions, subjecting other M&A applications to protracted review with a high likelihood of denial. Strategic alliances involving nonbanks and/or nonbank affiliates and BHCs with nonbank activities may also come under critical FDIC scrutiny, complicating transactions otherwise under the FRB or OCC’s review. Transactions over $100 billion would face the toughest scrutiny, but even small bank mergers could be denied if the FDIC is dissatisfied with the bank’s prior supervisory, enforcement, or community/consumer record…..
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