OCC reinstates expedited M&A reviews

The Office of the Comptroller of the Currency recently reinstated expedited approvals of mergers and acquisitions for national banks and federal savings associations under the Bank Merger Act..The expedited approval process was revoked last September under former Acting Comptroller of the Currency Michael Hsu. The rule allows mergers to be automatically approved on the 15th day following the close of the comment period unless the OCC removes the filing from expedited processing. Acting Comptroller of the Currency Rodney Hood said the reinstatement of expedited M&A reviews cuts down on the “burden and uncertainty for banks and supports a regulatory framework for bank mergers that is effective and not excessive.“Making it easier for well-managed and well-capitalized banks to merge promotes competition and facilitates economic growth and innovation,” Hood added. The American Bankers Association and Independent Community Bankers of America praised the decision. “We appreciate Acting Comptroller Hood’s willingness to reconsider the flawed actions the agency formerly took in this space, and to establish a process that reflects today’s financial services landscape and promotes competition more effectively,” said ABA President and CEO Rob Nichols. Last year, the ICBA said the expedited approval process is appropriate for the majority of M&A involving community banks as such deals are relatively simple and don’t significantly impact competition. The trade group called on unified, interagency bank merger guidelines to be developed between the Federal Reserve Board, FDIC and Department of Justice.