Flagstar Financial in Hicksville, N.Y., plans to dissolve its holding company.
The $97.6 billion-asset company said in a press release that the unusual move should reduce annual expenses by $15 million and eliminate oversight by the Federal Reserve.
The Office of the Comptroller of the Currency would become the primary regulator. Flagstar CEO Joseph Otting is a former comptroller of the currency.
The move, if approved, is expected to take place in the third quarter.
“We continue to make significant progress on our journey of building a well-capitalized, diversified, and top-performing regional bank,” Otting, who is also chairman and president, said in the release. “This action of simplifying our legal, regulatory, and corporate structure accelerates this mission by reducing unnecessary costs and ensures our focus remains on the customers and communities we serve.”
It is rare to see a holding company dissolve, though BancorpSouth in Mississippi made the move a few years ago.