WASHINGTON -- The Federal Reserve Board adopted a rule Monday that will spur the seizure of about 50 critically undercapitalized banks with $21 billion in assets beginning Dec. 19.

The "prompt corrective action" measure, mandated by Congress in the 1991 banking law, will curtail the growth and deposit-taking activities of 200 other capital-deficient banks with $62 billion in total assets.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.