FR 2021-01808

The recent document from the Federal Register, titled "Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company," outlines the applications submitted to the Federal Reserve System by various individuals and groups seeking to acquire or retain shares in banks or bank holding companies. Under the regulations of the Change in Bank Control Act, these applications are made public for inspection at designated Federal Reserve Banks and provide an opportunity for interested parties to submit comments until February 11, 2021.

Summary of the Document

The document highlights specific applications, including those from the McHugh family, who are attempting to retain shares in McHugh Investment Company, and the Oliver Family Group, who wish to acquire additional shares in Valliance Financial Corp. Other groups like the Adams Family and the Carl W. Adams, Jr. Revocable Living Trust are also named as seeking to retain their shares. These submissions highlight the ongoing movements and interests within specific financial entities and the regulatory oversight required to monitor such changes.

Significant Issues and Concerns

Several issues emerge from the document, including a lack of explanation about why these individuals or groups are seeking to acquire or retain shares. This information could be crucial for the public to understand the motivations behind these financial maneuvers. Furthermore, the legal references within the document are not elaborated on, which could lead to confusion for those unfamiliar with statutes such as 12 U.S.C. 1817(j) or regulations like 12 CFR 225.41.

There is also a noticeable absence of definition for terms such as "acting in concert" or "indirectly retain," which may further contribute to ambiguity for readers who do not possess specialized legal knowledge. The document does not delve into potential impacts or consequences that these acquisitions might have on the banks involved or the financial system at large, nor does it address any conflicts of interest or ethical considerations.

Impact on the Public and Stakeholders

For the general public, the document might seem opaque and lacking in relevant background information to fully grasp the implications of these applications. It assumes familiarity with a specific legal context that may not be common knowledge, potentially hindering meaningful public engagement or discourse.

For specific stakeholders such as the involved bank holding companies and the families or trusts seeking to retain or gain shares, the document signifies a step in the regulatory process that could affect their strategic interests and financial stability. A positive outcome for these stakeholders might involve enhanced control or influence over banking operations, potentially yielding financial benefits or advancing family legacy interests. Conversely, any adverse decisions could impede their objectives and alter their financial positions.

In summary, while the document fulfills a regulatory transparency requirement by listing pending applications, it leaves room for improvement concerning clarity and public understanding. It raises questions about stakeholder motivations and the broader impact of these structural banking changes, highlighting the necessity for accessible communication when dealing with complex financial regulations and practices.