DOJ Withdraws 1995 Bank Merger Guidelines, Affirms 2023 Standards

The US Department of Justice (DOJ) announced today that it has officially withdrawn the 1995 Bank Merger Guidelines, marking a significant shift in its approach to evaluating mergers in the banking sector. Per the department’s statement, the 2023 Merger Guidelines will now serve as the sole authoritative framework across all industries, including banking.

In conjunction with this move, the DOJ released additional commentary specifically detailing how the 2023 Merger Guidelines apply to bank mergers. According to the department’s statement, this commentary highlights common competition issues that arise during bank mergers and identifies which sections of the guidelines are most relevant for analyzing these concerns. While this commentary provides insight into how the department reviews such mergers, it does not establish any new legal rights or obligations for parties involved in banking transactions.

The department emphasized that the decision was made in consultation with its key regulatory partners, including the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC). The announcement also reflected feedback from the public, the department’s own experience in merger reviews, and ongoing developments in the market, law, and economics.

Notably, neither the 2023 Merger Guidelines nor the newly released banking commentary dictate the DOJ’s enforcement actions in any given case. According to the statement, while the guidelines outline the factors and frameworks used by the DOJ when investigating mergers, enforcement decisions will continue to rely on prosecutorial discretion and case-specific facts.

The department reiterated its commitment to working closely with banking regulators throughout the merger review process. Per the DOJ’s statement, the relevant regulators—such as the Federal Reserve and OCC—may use their own methods to evaluate and screen proposed mergers, ensuring that each agency applies the laws within its area of expertise consistently.

This latest development underscores the DOJ’s broader effort to modernize its approach to antitrust enforcement, reflecting current market dynamics and evolving legal standards.

Source: Jusitce Gove