KANSAS CITY, MO--(Marketwire - Oct 10, 2012) - H&R Block, Inc. (
- Company is utlizing Goldman, Sachs & Co. to advise on strategic alternatives for H&R Block Bank
- Company's existing offering of financial products and related services will remain in fiscal 2013; financial products and related services remain key part of company's strategy
- Company expects no material impact on fiscal 2013 earnings, strategy or execution
In a regulatory filing yesterday with the Securities and Exchange Commission, H&R Block, Inc. (
"Evaluating strategic alternatives for H&R Block Bank demonstrates management's continued commitment to deliver on a shareholder-friendly capital allocation strategy," said Bill Cobb, H&R Block's President and Chief Executive Officer.
These proposed capital requirements, if enacted, would require H&R Block, Inc. to retain significant additional capital. The company believes the regulatory constraints that would result from these proposed rules and the manner in which the company believes they will be implemented are inconsistent with its strategic plans, operational needs, and growth objectives. In light of this, the company is utilizing Goldman, Sachs & Co. (Goldman Sachs) to explore strategic alternatives for H&R Block Bank that could result in H&R Block, Inc. ceasing to be regulated by the Federal Reserve as a savings and loan holding company.
"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," added Cobb. "At this point, we're working with Goldman Sachs on a number of alternatives to find the best long-term solution for our company and the implementation of our financial services strategy. We will have the ability to offer existing financial products and related services to our clients in fiscal 2013 and we do not expect this to materially impact our fiscal 2013 earnings or our ability to execute against our strategy in the upcoming tax season."
About H&R Block
H&R Block, Inc. (
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