More Banks Could See Activist Attention Under Fed Proposal

Randy Benjenk is quoted in Bloomberg Law regarding the Federal Reserve’s proposed rule to create room for investors to own more stock and occupy more board seats at banks. The rule could lead to an increase in stakeholder activism. According to Mr. Benjenk, the Fed can step in if an activist investor is going in a direction that regulators think poses a risk to a bank’s survival. “The Fed can weigh in on risk management or general safety and soundness issues,” he adds.