January 22, 2010
OCC Approves First Use of “Shelf Charter” to Acquire Failed Bank
WASHINGTON — The Office of the Comptroller of the Currency announced today it has approved the first use of a “shelf charter” for the acquisition of a failed bank, allowing Bond Street Bank, National Association, to acquire a Florida bank that was placed in receivership today.
The “shelf charter” is a new mechanism that involves the granting of preliminary approval to investors for a national bank charter. The charter remains inactive, or “on the shelf” until such time as the investor group is in a position to acquire a troubled institution. By granting the preliminary approval, the OCC expands the pool of potential buyers available to buy troubled institutions, and in particular the new equity capital available to bid on troubled institutions through the Federal Deposit Insurance Corporation’s bid process.
Bond Street Bank, National Association, was granted preliminary approval as a shelf charter on October 23, 2009. Today, the OCC granted final approval for the bank to establish Premier American Bank, National Association, which acquired Premier American Bank, a state-chartered bank that was closed today by the Florida Department of Financial Services, Division of Banking. The final approval is subject to various conditions to ensure the safe and sound operation of the new bank.