Page:United States Statutes at Large Volume 74.djvu/169

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PUBLIC LAW 86-463-MAY 13, 1960

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Public Law 86-463 AN ACT To amend the Federal Deposit Insurance Act to require Federal approval for mergers and consolidations of insured banks.

May 13, 1960 [S. 1062]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (c) I nFederal c Deposit s u r a n e Act, amendment,. of section 18 of the Federal Deposit Insurance Act is amended by Stat. 892. striking out the third sentence and inserting in lieu thereof the fol- 64 USC 1828. 12 lowing: "No insured bank shall merge or consolidate with any other Mergers and consolidations. insured bank or, either directly or indirectly, acquire the assets of, or assume liability to pay any deposits made in, any other insured bank without the prior written consent (i) of the Comptroller of the Currency if the acquiring, assuming, or resulting bank is to be a national bank or k District bank, or (ii) of the Board of Governors of the Federal Eeserve System if the acquiring, assuming, or resulting bank is to be a State member bank (except a District bankj, or (iii) of the Corporation if the acquiring, assuming, or resulting bank is to Pub be a nonmember insured bank (^except a District bank). Notice of notice.l i c a t i o n of any proposed merger, consolidation, acquisition of assets, or assumption of liabilities, m a form approved by the Comptroller, the Board, or the Corporation, as the case may be, shall (except in a case where the furnishing of reports under the seventh sentence of this subsection is not required) be published, at appropriate intervals during a period (prior to the approval or disapproval of the transaction) at least as long as the period allowed under such sentence for furnishing such reports, in a newspaper of general circulation in the community or communities where the main offices of the banks involved are located (or, if there is no such newspaper in any such community, then in the newspaper of general circulation published nearest thereto). I n granting or withholding consent under this subsection, the Comptroller, the Board, or the Corporation, as the case may be, shall consider the financial history and condition of each of the banks involved, the adequacy of its capital structure, its future earnings prospects, the general character of its management, the convenience and needs of the community to be served, and whether or not its corporate powers are consistent with the purposes of this Act. I n the case of a merger, consolidation, acquisition of assets, or assumption of liabilities, the appropriate agency shall also take into consideration the effect of the transaction on competition (including any tendency toward monopoly), and shall not approve the transaction unless, after considering all of such factors, it finds the transaction to be in the public interest. I n the interests of uniform standards, before acting on a merger, consolidation, acquisition of assets, or assumption of liabilities under this subsection, the agency (unless it finds that it must act immediately in order to prevent the probable failure of one of the banks involved) shall request a report on the competitive factors involved from the Report by Attor^ ney General. Attorney General and the other two banking agencies referred to in this subsection (which report shall be furnished within thirty calendar days of the date on which it is requested, or within ten calendar days of such date if the requesting agency advises the Attorney General and the other two bankingagencies that an emergency exists requiring expeditious action). The Comptroller, the Board, and the Report to Coi^ Corporation shall each include in its annual report to the Congress g r e s s.

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