ACME national bank plans to acquire Smith Brothers insurance agency and make it an operating subsidiary of the bank. ACME is considered a well-managed and adequately capitalized bank. What regulatory-related action must ACME take to obtain the agency?

Question

Quizplus · Accepted Answer

ACME national bank must notify the OCC (Office of the Comptroller of the Currency) before completing the acquisition to obtain regulatory approval. The OCC needs to evaluate the proposed acquisition to ensure that it is consistent with applicable laws and regulations and does not pose excessive risks to the bank or its customers. Once approval is granted, ACME can complete the acquisition and notify the OCC of the final transaction details.

ACME National Bank Plans to Acquire Smith Brothers Insurance Agency