BPI Statement on FDIC M&A Proposal

Washington, D.C. — BPI SVP and Senior Associate General Counsel Gregg Rozansky issued the following statement on the FDIC’s proposed statement of policy on M&A: 

“The FDIC’s proposal reinforces an alarming trend among federal policymakers of discouraging M&A activity. At a time when the costs of technology, marketing and compliance have the market demanding industry consolidation, the FDIC is inventing new obstacles to mergers that have no basis in statute, such as forward-looking representations and commitments around prices, fees, banking services or facility locations. Because these novel standards are almost wholly subjective, they inject a level of uncertainty that most firms — acquirer or target — will generally find unacceptable. Banks considering mergers – and their customers and employees — need a clear, transparent and predictable review process, and this policy statement would enshrine the opposite.  Not only should the FDIC allow healthy banks to combine and prosper, it should also let healthy banks acquire troubled banks, rather than let them slowly migrate towards failure and an FDIC-administered receivership — where the FDIC’s recent track record has been less than stellar, frankly.”

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About Bank Policy Institute.

The Bank Policy Institute (BPI) is a nonpartisan public policy, research and advocacy group, representing the nation’s leading banks and their customers. Our members include universal banks, regional banks and the major foreign banks doing business in the United States. Collectively, they employ almost 2 million Americans, make nearly half of the nation’s small business loans, and are an engine for financial innovation and economic growth.

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Tara Payne
Bank Policy Institute
sean.oblack@bpi.com

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