Regulatory Alerts2019-05-14 | 2019-09415Control and Divestiture Proceedings
The Board of Governors of the Federal Reserve System proposes revisions to Regulations Y and LL to codify presumptions regarding whether a company exercises controlling influence over another under the Bank Holding Company Act and Home Owners’ Loan Act. The proposal introduces a tiered framework of presumptions based on ownership percentages and specific relationships to enhance transparency and consistency in regulatory determinations. These changes aim to clarify the facts and circumstances that trigger control status, thereby reducing regulatory burden for banking organizations and investors while maintaining oversight of potential controlling influences.
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