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Dan Hartman and Matt Hanaghan Examine the Fed’s Modernization of Mutual Holding Company Rules in Law360
Print PDFDan Hartman and Matt Hanaghan, both of counsel in Nutter’s Corporate Department and members of the Banking and Financial Services group, authored an article for Law360 analyzing the Federal Reserve Board’s first comprehensive rewrite of its rules for mutual holding companies since it assumed supervision from the Office of Thrift Supervision in 2011. In the article, “Fed’s Capital Rule Proposal Could Help Banks Stay Mutual,” Dan and Matt explain that the proposal would amend Regulation Q to clarify that mutual capital certificates and special deposits can qualify as regulatory capital, and would streamline Regulation MM by removing procedural requirements, including most dividend waiver conditions, that the Fed has concluded no longer serve a supervisory purpose.
For mutual institutions weighing whether they can keep growing without a full or partial stock conversion, they write, the proposal could materially change the strategic calculus, though state law and charter changes will be necessary in many jurisdictions, including Massachusetts. Public comments on the proposal are due October 5.
Nutter Partners Mike Krebs and Kate Henry contributed to the article.
