Trade Associations Propose Revisions To FRB Proposal On "Control" Rules

The American Banking Association ("ABA"), SIFMA and the Institute of International Bankers ("IIB") made recommendations (see here, here and here) regarding a proposal (the "proposal") by the Federal Reserve Board ("FRB") to modify its regulations for determining "whether a company has the ability to exercise a controlling influence" on another company under the Bank Holding Company Act and the Home Owners' Loan Act.

As previously covered, the FRB-proposed revisions are intended to give bank holding companies, savings and loan holding companies, depository institutions, investors and the public a better understanding of the circumstances that the FRB considers most relevant when evaluating controlling influence.