Investments in Banks: Change in Bank Control Act

Summary

This practice note discusses the Change in Bank Control Act of 1978 (CBCA), 12 U.S.C. § 1817(j), an important part of the overall federal legal framework governing acquisitions of banking organizations. Among other things, this law prohibits a person from acquiring control, directly or indirectly, of an insured depository institution (IDI) unless such person has provided the appropriate federal bank regulatory agency with at least 60 days' prior written notice and, during that period, the federal bank regulatory agency has not issued any notice disapproving the proposed transaction.