Notice of Mutual-to-Stock Conversions

Zusammenfassung

The interim rule requires FDIC-insured state-chartered savings banks that are not members of the Federal Reserve System (State Savings Banks) that apply to their applicable state banking regulator to convert from the mutual to stock form of ownership to provide the FDIC with a notice of the proposed conversion and a copy of the application and related disclosure materials. The interim rule also requires that State Savings Banks not finalize a mutual-to-stock conversion until either they receive a notice of the FDIC's intention not to object to the proposed conversion or 60 days pass after a complete notice and copy of the application materials are filed with the FDIC. A conversion may not be completed if the FDIC objects to the proposed conversion. The intended effect of the interim rule is to provide the FDIC with the opportunity to review proposed mutual-to-stock conversions of FDIC- regulated mutual savings banks to determine whether the proposed conversion would engender concerns about the safety and soundness of the institution, the institution's compliance with applicable law, and/ or insider abuse.