FR 2025-02656

The Federal Reserve System has issued a notice regarding applications to acquire shares in a savings and loan holding company under the Change in Bank Control Act. This document outlines the procedure for individuals to express their views on such acquisitions, involving public disclosure of comments submitted. In this particular instance, Jeffrey A. Schumacher and John Schumacher are identified as applicants seeking to maintain their voting shares in the American Federal Corporation and the American Federal Bank, both located in North Dakota. Comments on these applications must be submitted by March 3, 2025.

General Summary

This notice is a formal announcement by the Federal Reserve, providing transparency around applications filed under the Change in Bank Control Act. The Act requires that individuals or groups wishing to acquire significant shares in a savings and loan holding company apply for approval. The document includes procedural details, such as inspection locations for applications and methods for the public to submit comments. It highlights one specific application involving two individuals, Jeffrey A. Schumacher and John Schumacher, who aim to retain voting shares in North Dakota financial institutions.

Significant Issues and Concerns

The document, despite its comprehensive nature, lacks a clear abstract that could offer a concise summary of its intent. This absence might make it challenging for readers to grasp the document’s purpose quickly. Furthermore, the explanation regarding public disclosure of comments is repetitive and could benefit from a more streamlined presentation. Additionally, the rationale behind the Schumachers' application to retain voting shares is not explicitly stated, leaving readers without context on the reasons or motives behind their application.

Moreover, technical terms such as "Change in Bank Control Act" and "Regulation LL" are used without context or definitions, potentially alienating readers unfamiliar with banking regulations.

Public Impact

For the general public, this notice primarily serves to promote transparency in financial dealings involving savings and loan holding companies. By enabling public inspection and comments, the Federal Reserve encourages civic participation in the regulatory process. However, the technical nature of the document and the lack of context or definitions might limit public understanding or engagement.

Impact on Specific Stakeholders

Stakeholders directly involved or affected by the applications—namely, the Schumachers, employees, and customers of the American Federal Corporation and American Federal Bank—could experience a range of impacts. Should the applications be approved, current management and strategies at these institutions are likely to continue without interruption. Conversely, denial of the applications could bring changes in governance that might impact the business operations and strategic direction of these entities.

For regulators and financial watchdogs, the document illustrates the importance of oversight in maintaining the stability and integrity of the financial system. These entities rely on such procedures to ensure compliance with federal banking regulations, safeguarding against undue control by unvetted individuals or groups.

In summary, while the document is essential for regulatory transparency and public awareness, enhancements in clarity, context, and engagement could strengthen its effectiveness and accessibility for all interested parties.