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Federal Reserve opens comment period on bank holding company applications

Federal Reserve opens comment period on bank holding company applications

Rule Changes

Public comments due November 9 on ownership change requests

Yesterday: Fed opens comment period on bank ownership applications

Overview

Updated Yesterday

An employee stock ownership trust in Louisiana, a family group in Oklahoma, and a Washington state investor all want Federal Reserve approval to change bank ownership. The Fed published a notice on October 9 opening a public comment period that runs through November 9.

The review process, required by the Bank Holding Company Act of 1956, is how the Fed keeps bank ownership transparent. Anyone can submit comments challenging an application before the Fed decides.

Why it matters

The comment period is the public's only formal window to challenge a bank ownership change before the Fed approves it.

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Key Indicators

31
Comment period length
From October 9 to November 9, 2026
3
Applications in related October notices
Washington State Bancshares ESOP, Rainbolt family group, and Gregory Deckard

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People Involved

Organizations Involved

Timeline

September 2026 November 2026

5 events Latest: Yesterday
Tap a bar to jump to that date
  1. Comment period closes

    Upcoming Deadline

    Deadline for comments on the October 9 notice.

  2. Rainbolt family comment deadline

    Upcoming Deadline

    Comments due on Rainbolt Family Control Group application.

  3. Fed opens comment period on bank ownership applications

    Latest Regulatory Notice

    Notice covers Washington State Bancshares ESOP and related applications; comments due November 9.

  4. Deckard seeks more State Bancorp Northwest shares

    Application

    Individual investor applies to acquire additional voting shares.

  5. TabaPay seeks bank holding company status

    Application

    Fintech TabaPay applies to acquire Transact Bank in Denver.

Scenarios

1

Fed approves Washington State Bancshares ESOP application

Likely Resolves by End of 2026

Discussed by: Federal Reserve practice; most such applications are approved

The comment period closes with no objections, and the Fed approves the ESOP's application to become a bank holding company. This is the most common outcome for these applications, which are typically approved within 60 days of the comment deadline.

2

Comments raise concerns, Fed conditions or delays approval

Unlikely Resolves by End of 2026

Discussed by: The Fed's review standards under the Bank Holding Company Act

Interested parties submit comments raising concerns about competition, financial stability, or community needs. The Fed extends its review or attaches conditions to the approval.

3

No public comments submitted by November 9 deadline

Likely Resolves by Nov 9, 2026

Discussed by: Routine nature of these applications

No comments are submitted by the November 9 deadline, and the Fed proceeds to decide the applications without public input. This is common for small, uncontroversial ownership changes.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

1956

Bank Holding Company Act (1956)

Congress passed the Bank Holding Company Act, requiring Federal Reserve approval for forming or expanding bank holding companies. The law was the first major federal regulation of bank holding companies.

Then

The Fed gained authority to review bank ownership changes.

Now

The Act remains the legal basis for the Fed's review of bank holding company applications today.

Why this matters now

The October 9 notice cites the Act as the legal authority for the review process.

1978

Change in Bank Control Act (1978)

Congress passed the Change in Bank Control Act, extending the approval requirement to individuals seeking to acquire control of banks. The law requires notice to the Fed before acquiring control.

Then

Individual investors like Gregory Deckard must get Fed approval before acquiring bank control.

Now

The Act created the notice process used for the Rainbolt and Deckard applications.

Why this matters now

The Rainbolt and Deckard applications are filed under this Act.

Sources

(5)