ABA Opposes Delaware’s Proposed Changes to Trust Company Applications

The American Bankers Association today wrote to Delaware State Bank Commissioner Robert Glen urging him to withdraw a proposal that would prevent new trust company applications from being approved unless they are affiliated with a national bank, an FDIC-insured depository institution or a bank holding company. ABA noted with concern that no written explanation has been provided about the change.

“We are concerned that the proposal may negatively affect existing Delaware independent trust companies by stifling the industry’s robust and competitive growth,” ABA wrote. “In particular, by instilling uncertainty into change of control applications and similar activity, the proposal may hinder corporate actions involving these charters or purchases of their books of business.