Get Receipt Of Approval For Merger - Mufg

The Treasury Department's Office of the Comptroller of the Currency (OCC) ordered MUFG Union Bank to pay a $15 million civil penalty for engaging in deceptive practices in violation of Section 5 of the Federal Trade Commission Act. The OCC issued its consent order May 10, but it was not publicly released until June 10.

MUFG to Buy $936 Million Stake in U.S. Bancorp After Unit Sale. Mitsubishi UFJ Financial Group Inc. will buy a stake in U.S. Bancorp for $936 million, deepening an alliance after selling its regional banking business to the US lender last year.

Regulatory approvals of bank mergers rely on 2 key supervisory criteria issues: Anti-trust and new merged entity must provide at least the same or better level of service to the smaller bank customers. Increased risk mitigation strategies and better technology systems.

Section 18(c) of the Federal Deposit Insurance (FDI) Act, also referred to as the Bank Merger Act (BMA), requires the prior written approval of the FDIC before any insured depository institution (IDI) may merge or consolidate with, purchase or otherwise acquire the assets of, or assume any deposit liabilities of, ...

The Bank Merger Act requires that mergers between depository institutions be subject to the prior approval of the primary federal regulator of the resulting institution (12 USC 1828(c)).

Mergers and acquisitions (M&A) are rife with regulatory issues. These issues are commonly related to antitrust laws, securities laws, company laws, foreign exchange, and investment laws. Therefore, the legal advisor to the deal is as important as the financial advisor or the investment bank.

Merger applications and membership applications are reviewed by the Federal Reserve when the resulting institution would be a state member bank.

The transaction will allow MUFG to shift its focus to its retail banking business in Japan and Asia, while continuing to focus on its wholesale corporate and investment banking franchise in the United States.