If you have filed a federal regulatory application for a bank merger or acquisition recently, you probably noticed a new question in the standard application form. Bank regulators are now routinely asking for a description of the acquirer’s due diligence review of the target institution, as well as the scope of resources committed to the review, any significant adverse findings and, if applicable, the corrective actions to be taken to address those findings. Essentially, the regulators want to make sure you have done your homework. They will also use the provided information to issue-spot in connection with their review of the transaction and as a piggy-back for any related examinations. In our experience, regulators take responses to the due diligence question very seriously, and an incomplete or shallow response can result in significant delays in obtaining regulatory approval.