FR 2021-01810

Summary of the Document

The Federal Reserve System has issued a notice regarding an extension of the comment period for an application involving the formation or acquisition of bank holding companies. Specifically, the notice pertains to First Citizens BancShares, Inc. of Raleigh, North Carolina's proposal to acquire CIT Group, Inc. of New York, New York, which includes acquiring CIT Bank, National Association, based in Pasadena, California. Members of the public are invited to submit their written comments on this proposal by February 22, 2021. Information pertaining to the application is available for public inspection at the Federal Reserve Bank of Richmond, and online through designated resources.

Significant Issues and Concerns

There are several notable issues and concerns in this document:

1. Lack of Transparency on "Good Cause": The document mentions that the comment period has been extended "for good cause," yet it does not specify what constitutes this good cause. This lack of detailed explanation may appear opaque to the public.

2. Complex Legal References: The notice assumes a degree of familiarity with legal statutes such as the Bank Holding Company Act of 1956 and Regulation Y, which could be difficult for individuals who are not versed in banking law to understand. References such as "12 U.S.C. 1841 et seq." are likely to confuse readers unfamiliar with legal citations.

3. Dispersed Contact Information: The contact information for submitting comments or requesting further information is spread across different sections and formats, potentially complicating the process for those wishing to participate.

4. Limited Explanation of Relevant Standards: The standards enumerated in the Bank Holding Company Act are mentioned but not elaborated upon, which may require interested parties to conduct additional research to understand the criteria against which the application is judged.

Impact on the Public

For the general public, this document represents an opportunity to engage with the regulatory processes that oversee significant banking transactions. Public participation and commentary are crucial as they offer perspectives and concerns that may influence regulatory decisions. However, the complexity of the legal references and scattered information may deter some individuals from providing input.

Impact on Specific Stakeholders

• Banks and Financial Institutions: They may view this document and the extension as a chance to align their strategies and potentially adjust their competitive approaches based on the anticipated merger.

• Shareholders and Investors: These stakeholders might scrutinize the document to assess the potential impacts of the acquisition on shareholder value and market dynamics.

• Consumers of Banking Services: Although indirectly affected, consumers might be concerned about how such acquisitions could alter the landscape of banking services, potentially affecting competition, service availability, and pricing.

In summary, while the document invites public participation and transparency around a significant financial acquisition, the complexity and presentation could be improved to ensure broader understanding and involvement.