Federal Reserve Invites Public Input on Bank Ownership Changes

You might care about this because the Federal Reserve System has published a notice about proposed changes in who controls certain banks. These notices are important for ensuring stability in our financial system. The specific case discussed involves the Jennifer Garst Family Trust. This trust, along with Iowa State Bank as its trustee and Elizabeth Garst as the Trust Investment Director, wants to join the Garst Family Control Group. This group already acts together to manage financial interests. Their goal is to keep voting shares in Greene Investment Co. Greene Investment Co. indirectly holds voting shares in two other banks: Home State Bank in Jefferson, Iowa, and Raccoon Valley Bank in Perry, Iowa. The Federal Reserve reviews such applications under the Change in Bank Control Act. This law helps make sure that changes in bank ownership are fair and do not pose risks to the public. The public can share their thoughts on these applications. The applications and related documents are available for review at Federal Reserve Banks and the Board of Governors' offices. You can also get this information faster by contacting your local Federal Reserve Bank or the Board's Freedom of Information Office. It is important to remember that any comments you submit will be made public. So, do not include any personal or confidential information in your comments. The deadline for submitting comments on this matter is July 30, 2026. You can send your comments to the Federal Reserve Bank of Chicago or to the Board of Governors in Washington, DC. This notice is particularly interesting because it shows how the government oversees financial institutions. When someone or a group wants to gain or keep control of a bank, they have to get approval from the Federal Reserve. This process is not just a formality. The Federal Reserve carefully looks at several factors. These factors include how the change might affect competition in the banking industry. They also consider the financial health of the people or groups involved. Another important factor is how the change might impact the management of the bank and the convenience and needs of the communities served. For instance, the Garst Family Trust's application is reviewed to ensure it meets these standards. This level of scrutiny helps protect depositors and maintains public confidence in the banking system. It also prevents any single entity from having too much influence without proper review. The fact that the public can comment on these applications makes the process more transparent. It allows ordinary citizens and interested parties to voice their opinions. This input can influence the Federal Reserve's final decision. It highlights the democratic aspect of financial regulation. Many different groups of people would find this legal document relevant. If you are a shareholder or an investor in banks, especially those in Iowa like Home State Bank or Raccoon Valley Bank, this notice directly affects you. Changes in control can impact the value of your investments or the strategic direction of the bank. Bank employees might also be interested. New ownership or control groups can sometimes bring changes to bank operations, culture, or even staffing. Customers of these specific banks might also want to stay informed. While direct impacts might not be immediate, overall stability and management are important for anyone relying on a bank's services. Legal professionals working in banking, finance, or corporate law would also pay close attention. This document provides practical examples of how the Change in Bank Control Act is applied. Community leaders and local economists in areas served by these banks would also find this information useful. They often monitor local financial stability and economic conditions. Lastly, anyone interested in government oversight and financial regulation would find this notice informative. It illustrates how regulatory bodies like the Federal Reserve manage significant changes within the financial sector.