FR 2021-02237

In the latest release from the Federal Register, the Federal Reserve System outlines applications from various individuals and trusts seeking approval to acquire shares in a bank or bank holding company. This process is governed by the Change in Bank Control Act and the Board’s Regulation Y. These applications are available for public inspection at specified Federal Reserve Banks and the Board of Governors' offices. Interested parties have until February 18, 2021, to submit their comments on the applications.

Summary of Document

The document serves as a notice to inform the public about applications submitted under the Change in Bank Control Act. The Act requires individuals or groups intending to acquire controlling shares of a bank to undergo a review process to ensure that the acquisition does not adversely affect the soundness of the institution. The notice highlights the involvement of various trusts and individuals, particularly through actions at the Federal Reserve Bank of Kansas City.

Significant Issues or Concerns

There are several issues present in the document:

• Technical Language: The document employs technical jargon related to banking and legal procedures, potentially making it challenging for those without specialized knowledge to fully comprehend its implications.

• Lack of Detailed Information: It refers to "paragraph 7 of the Act" without elaborating its contents, expecting the reader to be familiar with the Act, which may not be the case for a general audience.

• Assessing Impact: Without specific financial details or the context of each application, it’s difficult to assess any possible wasteful spending or preferential financial transactions.

Impact on the Public

From a broad perspective, this document's importance lies in its role in maintaining transparency in financial oversight. By allowing the public to review and comment on such applications, the Federal Reserve fosters a measure of accountability in the banking sector. This transparency can reassure the public that banking regulations are being observed, potentially contributing to public confidence in financial institutions.

Impact on Specific Stakeholders

For the stakeholders directly involved, such as the individuals and trusts applying for bank shares, successful approval could mean significant influence over the financial entities in question. This could lead to strategic changes in the bank's operations and policies.

On the other hand, current stakeholders in the banks being acquired—such as other shareholders, employees, and customers—may view these changes with concern, as new ownership could alter the bank’s direction or operations. For instance, changes might take the form of revised business strategies, which could impact jobs or customer policies.

In summary, while the document is technical and somewhat opaque due to its reliance on legal and financial language, it underscores the ongoing processes of oversight and involvement that institutions like the Federal Reserve maintain to ensure banking activities are conducted in a manner beneficial to the wider community. Thus, it serves as a critical part of the regulatory framework that supports financial stability.