The Federal Reserve recently issued a highly-anticipated proposal to amend its regulations governing when one company will be deemed to control another.
The proposal would have significant implications for investments by and in banking organizations. It would provide greater certainty and transparency by codifying and clarifying a number of principles for analyzing control that have never before been set out in a comprehensive fashion or in formal regulation. The proposal would also make “targeted adjustments” to liberalize certain past practices, in some cases with significant effect.