Delaware Proposed Amendment to Trust Company Charter Applications

Dear Commissioner Glen:

The American Bankers Association (ABA) appreciates this opportunity to provide comments on the proposed amendment to Delaware regulations governing bank and trust company applications. Under the proposal, no new trust company application would be approved unless the applicant is affiliated with a national bank, a depository institution insured by the Federal Deposit Insurance Corporation (FDIC), or a bank holding company. The purpose behind this proposal is uncertain, as there is no written explanation for the change in the public notice document.

ABA represents many limited purpose trust companies chartered under state law, as well as full-service banks that offer fiduciary services through a trust department. Due to this membership cohort, we have an interest in these changes as they may affect the potential creation of new members, as well as affect the interests of existing Delaware trust company members.

We, therefore, support the request of the Delaware Bankers Association that this proposal be withdrawn. We are concerned that the proposal may negatively affect existing Delaware independent trust companies by stifling the industry’s robust and competitive growth. 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.

We appreciate your consideration of our brief comments and welcome any questions on the points raised.

Sincerely,

Phoebe A. Papageorgiou

Vice President, Trust Policy