WASHINGTON, D.C.—Shayna Olesiuk, Director of Banking Policy, issued the following statement on a Comment Letter to the Federal Deposit Insurance Corporation (FDIC) on the proposed rescission of the 2024 Statement of Policy on Bank Merger Transactions.

“In 2024, after years of prudent, judicious, and appropriate analysis, the FDIC implemented a policy (2024 policy) that strengthened and improved the merger review process. Now, the FDIC is proposing to wrongly withdraw and discard the 2024 policy, reverting to the inferior 2008 policy.

“This withdrawal is a mistake for several reasons:

• The 2024 policy prioritizes consumers and communities by stating that the post-merger bank would need to better meet the convenience and needs of the community and be financially stronger than the original bank.
• The 2024 policy considers the financial stability effects of the merger.
• The 2024 policy adds clarity on the expectation for public hearings for larger mergers.

“Instead of rescinding the 2024 policy, the FDIC should keep the 2024 policy intact while considering adjustments that improve and strengthen merger policy. While the 2024 policy is not perfect, it contains vital protections for consumers, communities, and financial stability.”

The Comment Letter is available here.

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