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Can you summarize SR 15-15?
Supervision and Regulation Letters - 2015 > Supervisory Concerns Related to Shareholder Protection Arrangements
Short Summary
This guidance issued by the Board of Governors of the Federal Reserve System explains supervisory concerns related to shareholder protection arrangements structured by bank and savings and loan holding companies. The guidance applies to bank holding companies and savings and loan holding companies, including those with $10 billion or less in consolidated assets. Shareholder protection arrangements that have raised supervisory issues include provisions such as cash payments reflecting the difference in share prices, providing additional shares of stock at minimal or no cost, granting existing shareholders the ability to acquire additional shares at significant discounts, granting investors with less-than-majority control the right to restrict or prevent the issuance of additional shares, and giving the holding company’s board of directors authority to nullify share purchases or take actions that inhibit secondary market transactions. The Federal Reserve may direct a holding company’s board of directors to modify or remove a shareholder protection arrangement that raises safety-and-soundness concerns.
Whom does it apply to?
Bank holding companies and savings and loan holding companies, including those with $10 billion or less in consolidated assets
What does it govern?
Supervisory Concerns Related to Shareholder Protection Arrangements
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
U.S. Federal Government