Bank regulators may challenge a merger between two institutions but can never require banks to divest themselves of some of their offices in order to secure regulators' approval.

Question

Quizplus · Accepted Answer

Bank regulators have the authority to require banks to divest themselves of some branches or offices in order to secure approval for a merger or acquisition. This is known as a divestiture, and it is a commonly used tool to address antitrust concerns and ensure that the resulting bank or financial institution does not have undue market power or concentration in certain regions or segments.

Bank Regulators May Challenge a Merger Between Two Institutions but Can