FR 2025-02657

The Federal Reserve System has issued a notice regarding applications under the Change in Bank Control Act. This notice involves individuals and trusts seeking to acquire shares in specific banks or bank holding companies. In particular, this document highlights the efforts of the Price & Minta Ford Living Trust from Tennessee and the Burrage family trusts from Oklahoma to gain control of additional shares in banks within their respective regions.

General Summary

The document is primarily focused on notifying the public about the intentions of certain parties to acquire additional voting shares in bank holding companies. Notably, the Price & Minta Ford Living Trust intends to acquire more shares of Commercial Holding Company, Inc., which controls Commercial Bank & Trust Company in Tennessee. Similarly, the Steve Burrage 2024 Succession Trust and the Roberta Burrage 2024 Succession Trust are seeking to join the Burrage Family Control Group to secure shares in First Antlers Bancorporation, Inc., thereby indirectly gaining an interest in FirstBank located in Oklahoma. The notice gives a deadline of March 3, 2025, for public comments on these applications.

Significant Issues or Concerns

Several concerns arise from this notice. Firstly, the document fails to provide clear financial thresholds or criteria that define what constitutes "additional voting shares." This omission might create ambiguity regarding the scale and intent of these acquisitions.

Additionally, the document acknowledges that public comments will be made available without changes, which poses a risk of exposing sensitive or confidential information. There is a clear statement advising against sharing confidential details, but it is not accompanied by any enforcement mechanism or process to ensure compliance. Thus, there is a potential for missteps concerning privacy.

There is also the complex issue of understanding how individuals and trusts acting "in concert" can influence or control bank holding companies. For the general public, the intricacies of these roles may not be immediately apparent, and the lack of detailed explanations might hinder transparency.

Impact on the Public

For the general public, these types of notices are critical because they shed light on changes in the control structures of regional banks, which could subsequently impact local economies. However, given the technical nature of the terms and processes involved, not all individuals may fully comprehend the broader implications.

Public engagement is invited via comments, and such participation can potentially influence regulatory decisions. Nevertheless, without clear guidelines on information security, some might hesitate to provide input, knowing their comments will be publicly available.

Impact on Specific Stakeholders

On one hand, the applicants, namely the Price and Burrage family trusts, stand to benefit significantly from these acquisitions. By increasing their voting shares, they can potentially exert more influence over the direction and policies of these banking institutions.

On the other hand, existing shareholders and employees of the banks involved might experience uncertainties regarding their roles or returns on investment, depending on the strategic changes introduced by new controllers. Regulators and policymakers need to weigh these acquisitions carefully to ensure they align with broader financial stability and transparency goals.

Overall, while such transactions are part of normal banking and financial operations, they require careful scrutiny to balance the interests of various stakeholders and ensure the system operates smoothly and transparently.