Finance
Bank Mergers Face Higher Hurdle for FDIC Approval Under Plan
- FDIC propose new guidance, latest agency to tackle issue
- New plan would lead to more scrutiny on financial stability
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US banks face steeper regulatory hurdles to buy another lender under a plan from the Federal Deposit Insurance Corp., the latest move by Biden-era officials to clamp down on consolidation by financial firms.
The FDIC on Thursday proposed new guidance that would add layers of scrutiny to the process of getting a green light for a merger. The plan, if ultimately finalized, would more directly take into account effects on financial stability, communities, and competition. The regulator would also have more discretion under the plan’s so-called principles-based approach.