Federal Law Requirements for Closing a Less Profitable Neighborhood Branch

A

Under federal law, when a bank decides to close a branch, it is required to take certain actions to ensure that its customers and the regulatory agencies are informed of the closure. These actions are intended to provide customers with enough time to move their accounts to another bank and to ensure that the bank's regulators are aware of the bank's activities.

A. Publish a notice of the closing in the local newspaper: This action is often required under state law rather than federal law. However, some federal regulatory agencies may also require that the bank publish a notice of the branch closure in a local newspaper.

B. Send a notice to its regulatory agency: This action is required under federal law. When a bank decides to close a branch, it must notify its primary federal regulator of the closure. The regulator may request additional information or documentation related to the closure.

C. Send notices to the branch customers: This action is required under federal law. When a bank decides to close a branch, it must notify its customers of the closure. The notice must be sent in a timely manner and should provide customers with information about how to access their accounts and move their funds to another bank.

D. Post a notice at the branch: This action is required under federal law. When a bank decides to close a branch, it must post a notice at the branch providing customers with information about the closure and how to access their accounts and move their funds to another bank.

Therefore, the action that is NOT required of the bank under federal law is A. Publish a notice of the closing in the local newspaper.