Failing Bank Acquisition Fairness Act
Bill curbs big-bank takeovers of failed banks, requires proof of need and public reports
Legislative Progress
Key Points
- Big banks cannot use special exceptions to buy a failed bank unless officials show clear evidence it is needed to avoid major economic harm.
- If any well-run bidder can buy the failed bank without breaking size limits, that bid should be chosen instead.
- When an exception is used, agencies must report to Congress within 30 days, explain why, list other bids, and post a public summary.
- Officials cannot count bids that would break the law when choosing the cheapest way to handle a bank failure.
- The goal is to slow mega-mergers and keep competition, which can help customers with fees, rates, and service, while still allowing emergency exceptions.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Placed on the Union Calendar, Calendar No. 406.
The bill is now on the schedule for the full chamber to consider. It's in line for debate and a vote.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-475.
Ordered to be Reported (Amended) by the Yeas and Nays: 51 - 0.
The committee approved this bill and is sending it to the full chamber for a vote. This is a significant step — most bills never get this far.
Committee Consideration and Mark-up Session Held
Committee Consideration and Mark-up Session Held
Votes
No votes have been recorded for this legislation yet.
Related News
3 articles
Deposit insurance reform momentum slows in House
Coverage of the House Financial Services Committee hearing that bundled multiple failed‑bank resolution ideas. Lawmakers aired concerns on deposit‑insurance hikes and discussed tweaks to FDIC tools, competition, and least‑cost resolution tradeoffs.
HFSC Chair Hill eyes wider scope in deposit insurance debate
Article notes the House panel’s broader rethink of bank‑failure tools, including discussion around least‑cost rules and competition in failed‑bank sales—context directly tied to proposals like restricting megabank purchases of failed banks.
PNC’s Demchak bemoans M&A speculation
PNC’s CEO downplays odds of large bank deals in the near term and flags execution risk. While not about the bill, it reflects the market context for tougher scrutiny of large-bank acquisitions of troubled institutions.
Source Information
Document Type
Congressional Bill
Official Title
Failing Bank Acquisition Fairness Act
Sponsor
Cosponsors
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