This topic covers only securities issued by banks, bank holding companies and savings associations For coverage of the securities-related activities engaged in for others (for example, acting as a broker/dealer, underwriter or investment advisor), refer to the topic Securities Activities In General [more...]
Overview Bank Service Corporations (BSCs) are corporations or LLCs that are owned and controlled by one or more banks to perform services for banks and other depository institutions (including credit unions authorized by the Bank Service Company Act - 12 USC 1861 With certain exceptions, the banks that control the BSC must be located in the same [more...]
Items of Current Interest OCC Bulletin #2007 - 27 FAS 159 and Risk-Based Capital Market Risk 7.27.07 Proposed Joint Inter-agency Regulations Proposed Supervisory Guidance for Internal [more...]
Summary A major constraint on bank changes in control is statutory and it is tied to the insured status of the institution The Federal Deposit Insurance Act ( 12 USC §1817(j) ) provides in part: In general, no person, acting directly or indirectly or through or in concert with one or more other persons, shall acquire control of any [more...]
Summary Multiple types of conversions are governed by federal law and regulations: National bank into state-chartered, non-member bank FRB State bank to national bank OCC Federal savings association to national bank OCC Mutual savings bank to stock savings bank FDIC State-chartered mutual depository institution to federal mutual [more...]
Summary In the absence of a federal body of corporate law , both the OCC and the OTS allow a national bank or federal stock association to adopt the corporate governance procedures of one of the following 12 CFR 7.2000(b) and 552.5(b)(3) : The law of the state in which the main office of the bank or association is located; The law of [more...]
Overview The majority of the financial institutions in the United States are chartered under state law by the variously-named state agencies charged with that responsibility. See the State Law index page for links to state law A [more...]
In General Banks may extend their geographic reach by merging with another bank, by acquiring branches from another bank or by opening a de novo branch. Individual banks can only open a de novo branch in another state if the laws of that state permit it 12 USC 36(g) In general, mergers are the principle method by which banks branch into [more...]
Interpretive Materials A national bank must apply to and obtain permission from the OCC before consummating any business combination in which the resulting entity is a national bank This includes reorganizations under 12 USC §215a-2 in which a national bank becomes a subsidiary of a bank holding company See the [more...]