When a bank fails, regulators sometimes let another bank buy it even if the deal would push the buyer past normal limits on how much of the nation's deposits or liabilities one company can control. This bill narrows when regulators can waive those limits. It would require the FDIC, the Federal Reserve, or the Comptroller of the Currency to show "clear and convincing evidence" that an oversized merger is necessary to prevent serious economic disruption, and only if no smaller bidder that would stay within the limits has come forward. It also requires those agencies to publicly report to Congress within 30 days after granting any such waiver, explaining why it was needed and why competing bids weren't chosen. The rules apply to mergers involving failed banks and to deals where the FDIC provides financial assistance.
Corporate Benefits
- Concentration-limit exception for failed-bank mergers — Narrowed to require clear-and-convincing evidence of necessity and no competing qualified bid
Transparency & Accountability
- Reporting requirement for concentration-limit waivers — Agencies must publicly report justification to Congress within 30 days
Congressional Summary
Failing Bank Acquisition Fairness ActThis bill tightens restrictions on certain waivers granted by federal financial regulators to companies that acquire insured depository institutions. Under current law, a regulator may not approve an acquisition if it would result in an institution exceeding a set concentration limit (i.e., controlling more than 10% of total insured U.S. deposits). This may be waived if one or more of the institutions involved is in default or in danger of default or if the Federal Deposit Insurance Corporation (FDIC) is providing certain assistance.In addition to these requirements, the bill requires the regulator to determine that (1) the merger is necessary to prevent significant economic disruption or financial instability, and (2) FDIC has not received a qualified bid from a company not subject to this concentration limit.The bill also provides capitalization and management standards for qualified bids.Regulators that waive these concentration limits must report to Congress on the circumstances and justification of the waiver.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-12-10
- Date Added
- 2026-07-02
- Source
- Congress.gov →
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