First National Bancshares, Inc., a bank holding company, filed an application with its Federal Reserve Bank on March 1 to acquire a subsidiary bank. On March 15 the Federal Reserve Board asked First National for more information. On April 1 the Federal Reserve Bank received the completed application and accepted it.
On April 5 the Federal Reserve Bank notified First National of the April 1 acceptance and referred the application to the Federal Reserve Board. Under the normal rules, by what date must the Federal Reserve Board act on the application?
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A. B. C. D.A
The answer to this question is A. June 1.
When a bank holding company seeks to acquire a subsidiary bank, it must file an application with the Federal Reserve Bank (FRB) in the district where the subsidiary bank is located. The FRB evaluates the application and makes a recommendation to the Federal Reserve Board (FRB Board), which has the authority to approve or deny the application.
In this case, First National Bancshares, Inc. filed an application with its FRB on March 1 to acquire a subsidiary bank. On March 15, the FRB Board requested additional information from First National, which caused a delay in the processing of the application.
The completed application was received by the FRB on April 1, and it was accepted by the FRB on the same day. On April 5, the FRB notified First National that the application was accepted and referred it to the FRB Board for approval.
According to the normal rules, the FRB Board must act on the application within 60 days of its acceptance by the FRB. Therefore, the deadline for the FRB Board to act on this application would be June 1, which is 60 days after April 1 (the date the application was accepted by the FRB).
In summary, the answer is A. June 1 because the FRB Board has 60 days from the date of the application's acceptance to act on the application.