The Board of Directors of the FDIC voted to amend the FDIC’s Statement of Policy on Bank Merger Transactions (the “Statement”). The Statement provides guidance to the public and the banking industry on bank merger applications to the FDIC.
The Statement, as amended (the “Amended Statement”), reflects changes to the Bank Merger Act made by the Financial Services Regulatory Relief Act of 2006 that: (1) eliminated the need for the FDIC to obtain a competitive factors report from the other three Federal banking agencies in processing a merger application; and (2) eliminated both the post-approval Department of Justice waiting period and the need to obtain competitive factors reports, when the proposed merger solely involves an insured depository institution and one or more of its affiliates.
The Amended Statement also reflects the merger of the Bank Insurance Fund (“BIF”) and the Savings Association Insurance Fund (“SAIF”) into the FDIC’s Deposit Insurance Fund pursuant to the Federal Insurance Reform Act of 2005. In a related change, the Amended Statement deletes all discussion of Oakar transactions (mergers involving a member of BIF and a member of SAIF).
In addition to certain technical amendments, the Amended Statement adds text to reflect that in evaluating a merger transaction, the FDIC must consider the effectiveness of merging insured depository institutions (including their respective overseas branches) in combating money-laundering activities.The Amended Statement will become effective upon its publication in the Federal Register.