On October 9, 2025, at 08:45 ET, Flagstar Financial, Inc. announced that Institutional Shareholder Services (ISS), a leading independent proxy advisory firm, had recommended that FLG shareholders vote "FOR" the company’s three proposals to merge its holding company into Flagstar Bank, N.A. The recommendation was issued in a press release dated October 10, 2025, but the announcement itself occurred on October 9, 2025, as indicated by the time stamp in the release.
The three proposals aim to simplify Flagstar’s corporate structure, streamline managerial, operational, and administrative functions, and reduce costs by eliminating redundant corporate activities. The merger would consolidate the holding company and the bank into a single legal entity, thereby eliminating the need for separate regulatory oversight and corporate governance layers. The proposals were previously approved by the Office of the Comptroller of the Currency, and the ISS endorsement reinforces the perceived benefits of the reorganization to shareholders.
The recommendation sets the stage for a vote at the company’s special meeting of shareholders scheduled for Wednesday, October 15, 2025. If approved, the merger would create a more efficient organizational framework and potentially unlock cost savings for the company, which could translate into improved financial performance and shareholder value. The ISS endorsement is a significant development that may influence the outcome of the upcoming vote and the company’s future capital structure.
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