Section DFI-SB 22.04 - Grounds for disapproval of reorganizations(1) BASIC STANDARDS. The division may disapprove an application for a mutual holding company reorganization on one or more of the following grounds: (a) Disapproval is necessary to prevent unsafe or unsound practices, or to otherwise maintain a sound financial institution.(b) The reorganization plan is not fair to members of the reorganizing savings bank.(c) The reorganization plan does not protect the interests of deposit account holders of the reorganizing savings bank.(d) The financial or managerial resources of the reorganizing savings bank or any acquiree savings bank warrant disapproval.(e) After the proposed capitalization of the mutual holding company, any savings bank subsidiary would fail to meet the requirements of ss. 214.40 and 214.43, Stats.(f) A stock issuance, proposed in connection with a mutual holding company reorganization, fails to meet the standards established by s. DFI-SB 22.07 or 22.08.(g) The reorganizing savings bank or any acquiree savings bank fails to furnish information required in the reorganization plan or any other information requested by the division regarding the proposed reorganization.(h) The proposed reorganization would violate any law or rule.(2) CAPITALIZATION.(a) The division shall disapprove a proposal by a reorganizing savings bank or an acquiree savings bank to capitalize a mutual holding company if, immediately following the reorganization, the resulting or acquiree savings bank would fail to meet the capital requirements of ss. 214.40 and 214.43, Stats. If the net worth of the reorganizing savings bank will, under the reorganization plan, meet the minimum net worth requirements of ss. 214.40 and 214.43, Stats., a reorganization plan may permit a mutual holding company to retain assets of the reorganizing mutual savings bank.(b) Proposals by reorganizing and acquiree savings banks to capitalize mutual holding companies shall comply with any statutes and rules governing capital distributions by savings banks.Wis. Admin. Code Department of Financial Institutions DFI-SB 22.04
CR Register, February, 1994, No. 458, eff. 3-1-94.