Hay Examines Recent Reforms to Federal Reserve’s Bank Merger Review Process

Financial Services partner Amber Hay was quoted in the GCR article, “Fed’s bank merger review not a ‘rubber stamp’, board member says,” which highlights comments from Michelle Bowman, a member of the Federal Reserve Board of Governors, at a recent event hosted by the Federal Reserve Bank of Kansas City. Bowman rejected calls for reforms to the Federal Reserve’s bank merger review process, emphasizing that the process “requires a lot of investment and risk for the merging banks.” Certain reforms aim to eliminate the expedited timeline some banking transactions receive.

Hay told GCR that Bowman’s remarks should be taken in the context of her dedication to protecting community banks and that any proposed rulemaking would have an impact on these smaller banks due to the Bank Merger Act and Bank Holding Company Act, which do not have a filing threshold like the Hart-Scott-Rodino Act. Hay added that Bowman discussed the “pressure points” being felt throughout the banking industry, as lengthy review processes can affect deals.

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