Tax services provider H&R Block is exploring strategic options for its banking arm.
Tax services provider H&R Block is exploring strategic options for its banking arm. It says this could result in the company no longer being regulated as a savings and loan holding company by the Federal Reserve.
Its stock fell 67 cents, or 3.8 percent, to $16.95 in premarket trading on Wednesday.
The Federal Reserve announced some proposed rules in June that would impose higher capital requirements on savings and loan holding companies. H&R Block Inc. said Wednesday that if the proposed rules are enacted it would have to hold on to significant additional capital.
"We are a tax preparation company that offers financial products and related services as an added value to our clients, but operating within the regulatory constraints of these proposed rules would be cumbersome," President and CEO Bill Cobb said in a statement.
The company, based in Kansas City, Mo., says it hired Goldman Sachs to help explore strategic options for H&R Block Bank and that it can offer existing financial products and related services to clients in fiscal 2013.
H&R Block does not expect any material impact to its fiscal 2013 earnings.