Certified Regulatory Compliance Manager (CRCM) — Question 263

First National Bancshares, Inc., a bank holding company, filed an application with its Federal Reserve Bank on March 1 to acquire a subsidiary bank. On March 15 the Federal Reserve Board asked First National for more information. On April 1 the Federal Reserve Bank received the completed application and accepted it.
On April 5 the Federal Reserve Bank notified First National of the April 1 acceptance and referred the application to the Federal Reserve Board. Under the normal rules, by what date must the Federal Reserve Board act on the application?

Answer options

Correct answer: A

Explanation

The correct answer is June 1, which is 90 days after the initial application was accepted on April 1. The Federal Reserve Board typically has 90 days to act on applications, which makes the other options incorrect since they do not align with this timeline.