U.S. FDIC Proposes Extra Scrutiny of Bank Mergers Above $100 Billion

Mergers that could result in banks with more than $100 billion in assets should expect heightened scrutiny from the U.S. Federal Deposit Insurance Corporation, according to a policy statement the top bank regulator proposed on Thursday.

The FDIC’s board of directors voted 3-2 to issue the proposal, which would update the agency’s merger guidance for the first time in 16 years. The new guidance puts special emphasis on maintaining the stability of the banking sector, agency officials said in advance of the vote.

Bank mergers and industry consolidation have come under intense scrutiny since last year, when three of the largest-ever U.S. bank failures resulted in acquisitions and billions in losses for the FDIC’s insurance fund.

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