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Foreign banks looking to buy a U.S. institution long faced tough scrutiny from the Federal Reserve, and the financial crisis has only made the process harder.
October 2 -
A Los Angeles-based community group has dropped its objection to the proposed sale of City National Bank to Royal Bank of Canada and now says the deal should be expedited.
June 24 -
Royal Bank of Canada sold its U.S. retail bank a few years ago to PNC. The company is back with a targeted play: City National, a Los Angeles bank that has built its business targeting the rich and working with Hollywood.
January 22
Royal Bank of Canada has received approval from the Federal Reserve Board to buy City National in Los Angeles.
The Fed's approval, issued Thursday, was the final regulatory approval needed, said Tanis Feasby, an RBC spokesperson. The approval came about 10 months after RBC agreed to pay about $5.4 billion for the $34 billion-asset City National. The deal will allow the $832 billion-asset RBC to
City National shareholders
The companies said in a press release last month that they
An ad hoc group of religious and community organizations in California had protested the deal, claiming that the banks had a weak plan for lending to minorities, women and other groups. But RBC executives
The Fed disclosed that "many" of the 15 groups that submitted comment letters objecting to the deal either withdrew their letters or ended up backing the acquisition. One dissenter pointed to RBC's 2012 scale back as evidence that the company had previously been unsuccessful in the United States. The Fed, for its part, brushed off that criticism, noting that RBC was still well-capitalized and well-managed.
Paul Davis contributed to this article.
