Fed delays revised control framework until September

Federal Issues Federal Reserve Agency Rule-Making & Guidance Covid-19 Bank Holding Company Act Home Owners' Loan Act

On March 31, the Federal Reserve Board (Fed) announced that its control and divestiture proceedings final rule—set to take effect April 1—would be delayed for six months. As previously covered by InfoBytes, the Fed revised the bank control framework to clarify the rules used to determine if a firm controls a bank pursuant to the Bank Holding Company Act and the Home Owner’s Loan Act. The Fed stated that “[t]he delay will reduce operational burden and allow institutions to focus on current economic conditions” created by the Covid-19 pandemic. No changes were made to the final rule, which will now become effective on September 30.