§5363 Acquisitions

Summary

The Federal Reserve must treat a nonbank financial company it supervises the same as a bank holding company for the related law. Banks or supervised nonbank companies with at least $250,000,000,000 in assets cannot buy voting control of a company (other than an insured bank) that does certain financial activities and has $10,000,000,000 or more in assets without telling the Federal Reserve in writing beforehand. That advance notice rule does not apply to purchases that already qualify for existing exemptions. The buyers must follow the regular notice steps in the law (except for one timing rule that does not apply). The Fed must also look at whether the deal would increase or concentrate risks to global or U.S. financial stability or the U.S. economy. For one related law, these transactions are treated as if Fed approval is not required.