YourVoice.Now Summary
Your MoneyCorporate BenefitsTransparency & AccountabilityThe FDIC could hand a failed bank to a smaller buyer, not a giant one — with the extra cost capped.
Your Money
The Deposit Insurance Fund covers your money when a bank fails. The FDIC could draw more from it under this bill, but must first write a rule that caps how much extra.
Corporate Benefits
A buyer that gets this extra help must pay the FDIC back. Payments would run at least five years, on terms the FDIC sets by rule.
Today the FDIC must pick the cheapest way to handle a failed bank, which often means selling it to a giant bank. Under this change, it could choose a smaller buyer instead, even when that costs more.
Transparency & Accountability
Each time the FDIC uses this option, it must send two committees in Congress a report within 30 days. The report has to show how much more the choice cost the fund.
More about this bill
If your bank ever failed, the buyer taking it over would be less likely to be a giant bank. Right now the FDIC must handle a failed bank in whatever way costs its insurance fund the least. That often steers failed banks to the biggest buyers — the handful regulators call globally important. The FDIC could instead pick a smaller buyer, even when that costs more. Guardrails come with the new choice. The FDIC and the Federal Reserve would both have to agree the trade-off is worth it. They would consult the Treasury Secretary first. Within a year, the FDIC would write a rule capping the extra cost. Buyers would repay the difference over at least five years. Congress would get a report within 30 days each time. Money in your own account would be protected the same way as today.
Congressional Summary
This bill allows the Federal Deposit Insurance Corporation (FDIC) to waive the least-cost resolution requirement for failed insured depository institutions and use alternative methods of resolution, particularly alternatives that do not involve global systemically important banks (G-SIBs).Under current law, the FDIC must use the resolution method (such as a deposit payoff or the purchase and assumption of a bank’s assets and liabilities) that costs the FDIC's Deposit Insurance Fund the least to implement when an insured depository institution fails.The bill provides an exception to this requirement if the following criteria are met:the alternative method is the least costly of all alternatives that do not involve a G-SIB and that do not exceed the cost of liquidation;the difference in cost between the selected alternative and the cost of a resolution involving a purchase and assumption by a G-SIB is less than a maximum cost as established by rule;if the alternative involves a person purchasing assets or assuming liabilities, that person must pay an assessment to the FDIC; andit is determined that the risks to the fund are outweighed by the benefits of limiting the concentration of U.S. banking under G-SIBs.FDIC must issue a report on any use of the exception established by this bill containing an analysis of the economic impact of cost differences between the selected alternative and the least-cost alternative.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Placed on the Union Calendar, Calendar No. 405.
- Action Date
- 2026-02-02
- Date Added
- 2026-04-09
- Source
- Congress.gov →
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