The Bank Slate


Fed, OCC approve U.S. Bancorp-MUFG Union merger

The Federal Reserve and the Office of the Comptroller of the Currency have approved U.S. Bancorp’s pending purchase of MUFG Union Bank in San Francisco.

U.S. Bank will have $680 billion of assets when the deal closes.

The OCC’s conditional approval requires U.S. Bancorp to identify business lines and portfolios that could be sold quickly “in the event of stress and a plan to effectuate that separability.”

“In reaching this decision, the OCC carefully considered the effect of the U.S. Bank and MUFG Union Bank merger on communities, the banking industry, and the U.S. financial system,” Acting Comptroller of the Currency Michael Hsu said in a press release.

“The OCC also took into account the important work initiated by our fellow regulators to evaluate and consider how best to ensure that large banks do not become the next class of too big to fail institutions,” Hsu added.

The Fed said that U.S. Bancorp committed to provide the Fed and the Federal Deposit Insurance Corp. with “an interim update to its resolution plan reflecting the combined organization, and implementation plans related to heightened prudential standards.”

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