Regulatory AlertsInteragency Statement on Restrictions on Conversions of Troubled Banks
The Board of Governors of the Federal Reserve System, the FDIC, and the OCC issued this guidance to implement Section 612 of the Dodd-Frank Act regarding charter conversions. The agencies prohibit charter conversions for institutions subject to significant enforcement actions, such as cease and desist orders, unless the issuing regulator does not object. The statement also mandates that insured depository institutions notify both their current and prospective federal banking agencies when filing a conversion application.
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