A state member bank has inquired
whether Pub. L. 88-593 (78 Stat. 940) requires reports of change in
control of bank management in situations where the change occurs as
an incident in a merger.
Under the Bank Merger Act of 1960 (12 USC 1828(c)), no
bank with federal deposit insurance may merge or consolidate with,
or acquire the assets of, or assume the liability to pay deposits
in, any other insured bank without prior approval of the appropriate
federal bank supervisory agency. Where the bank resulting from any
such transaction is a state member bank, the Board of Governors is
the agency that must pass on the transaction. In the course of consideration
of such an application, the Board would, of necessity, acquire knowledge
of any change in control of management that might result. Information
concerning any such change in control of management is supplied with
each merger application and, in the circumstances, it is the view
of the Board that the receipt of such information in connection with
a merger application constitutes compliance with Public Law 88-593.
However, once a merger has been approved and completely effectuated,
the resulting bank would thereafter be subject to the reporting requirements
of Public Law 88-593. 1964 Fed. Res. Bull. 1414; 12 CFR 250.181;
¶ 2600.
