Financial Services Committee Chair Seeks Moratorium on Large Bank Mergers and Acquisitions

Maxine Waters (D-CA), Chair of the Home Financial Services Committee, called on the Federal Reserve Board (“FRB”), the FDIC and the OCC to “impose a moratorium on approving any large merger and acquisition application resulting in a banking entity that would have more than $100 billion in total assets.”

In a letter addressed to the regulators, Chair Waters urged the companies to require public hearings be held for all giant financial institution mergers and acquisitions. Moreover, Ms. Waters requested that the financial institution merger and acquisition purposes be reviewed by different regulatory companies, such because the Financial Stability Oversight Council and the CFPB to make sure that every transaction doesn’t improve the chance to shoppers or jeopardize the soundness of the monetary system.

Ms. Waters acknowledged that the present rules contribute to lax oversight by each the DOJ and the Federal Reserve, which has not denied a transaction since 2003. Ms. Waters known as for a number of coverage modifications, together with:

  • reducing the focus thresholds for enhanced scrutiny of mergers;

  • extra rigorous analysis of monetary stability dangers; and

  • stronger consideration of potential conflicts of curiosity.

Ms. Waters acknowledged {that a} non permanent withholding of approvals, till such assessment is accomplished, “will help ensure that a regulatory landscape that promotes . . . ‘healthy, vibrant, and competitive banking markets’ . . . is put in place.”

  1. House Financial Services Committee Chair Maxine Waters (D-CA) Calls on Fed, FDIC and OCC to Halt Mergers and Acquisitions over $100 Billion

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