Ameriprise has announced the withdrawal of its 2021 application to shift its growing bank from the supervision of the Office of the Comptroller of the Currency to becoming a state-chartered industrial bank under the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation. 

Ameriprise also retracted a filing that aimed to convert the bank's personal trust services unit into a new limited-purpose national trust bank. According to FinancialPlanning.com, during the firm's second-quarter earnings call last week, an analyst inquired about why the company decided to abandon the idea. 

Ameriprise Chief Financial Officer Walter Berman stated that the firm decided not to pursue the change in their bank's structure due to the collapses of Silicon Valley Bank and Signature Bank and the takeovers of Credit Suisse and First Republic. According to a transcript by Seeking Alpha, Berman expressed confidence in the current federal savings bank structure, stating that it does not significantly impact the company as they still maintain the necessary capability.

The company previously described the potential conversions as a means of enabling the company to align capital frameworks across its businesses to compete more effectively and efficiently. Last year, rival firm Edward Jones abandoned its earlier plan to establish an industrial bank chartered in Utah. The decision was influenced by "the current environment" and discussions with the FDIC, which experts noted to be less open to applications for new industrial banks in the past decade.

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