Any foreign bank seeking to buy more than 5 percent of the stock of a U.S. bank or bank holding company must receive Federal Reserve Board approval prior to making the acquisition.

Question

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The Federal Reserve Board must approve any acquisition by a foreign bank of more than 5 percent of the stock of a U.S. bank or bank holding company to ensure stability, compliance with U.S. banking regulations, and to assess the impact on the financial system.

Any Foreign Bank Seeking to Buy More Than 5 Percent