What Fund Investors Should Know About US Bank Control Rules

June 28, 2016

Many private equity, hedge and mutual funds constantly have to confront the complex control rules that may impact even the smallest of investments in banks or bank holding companies (BHCs). The issue may be as simple as avoiding acquiring more than 10% of a BHC through the aggregation of all investments in that BHC by a number of commonly advised funds.

While passive and active investors are generally aware of the extensive federal and state restrictions on the acquisition of control of a BHC, less obvious is the fact that federal change in control rules also apply to the acquisition of securities in commercial and retail companies that directly or indirectly “control” a trust bank, credit card bank or industrial loan company.

Read "What Fund Investors Should Know About US Bank Control Rules."