Fed delays new rules on controlling interests in banks
WASHINGTON (Reuters) - The Federal Reserve announced Tuesday it was delaying for six months new rules dictating when a company takes control of a bank and must face stricter oversight.
The rules were due to take effect Wednesday, and now will be inactive until Sept. 30. The regulations are aimed at setting terms for when companies and other investors are considered in control of a bank, which then exposes them to additional banking rules.
The Fed finalized those rules in January, saying at the time it would help clarify what conditions must be met for a bank to be considered under control of a particular entity. Previously, those control decisions were made on a case-by-case basis by Fed supervisors. Fed officials said at the time such clarity could make it simpler for banks to attract investors wary of being exposed to stricter rules, and it could also make it simpler for banks to make investments of their own into companies.
Reporting by Pete Schroeder; Editing by Chizu Nomiyama; Editing by Chizu Nomiyama