Failing Bank Acquisition Fairness Act

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3914 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 3914

     To prohibit the use of certain concentration limit exceptions 
   applicable to mergers involving a failed bank if there are other 
                qualifying bids, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 7, 2023

  Mr. Lynch introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
     To prohibit the use of certain concentration limit exceptions 
   applicable to mergers involving a failed bank if there are other 
                qualifying bids, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Failing Bank Acquisition Fairness 
Act''.

SEC. 2. CONCENTRATION LIMIT EXCEPTIONS ONLY AVAILABLE WHEN NO OTHER 
              QUALIFYING BIDS.

    (a) Nationwide Concentration Limit With Respect to Deposits.--
Section 44(e) of the Federal Deposit Insurance Act (12 U.S.C. 1831u(e)) 
is amended by adding at the end the following: ``Notwithstanding the 
previous sentence, if the responsible agency receives more than one 
application under subsection (a)(1) for approval of a merger 
transaction involving the acquisition of the same bank in default or in 
danger of default or with respect to which the Corporation provides 
assistance under section 13(c), the responsible agency may only approve 
such an application without regard to subsection (b)(2)(A) if none of 
the other applications can be approved in compliance with subsection 
(b)(2)(A).''.
    (b) Concentration Limit With Respect to Consolidated Liabilities.--
Section 14(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1852(c)) is amended--
            (1) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C) (and adjusting the margins 
        accordingly);
            (2) by striking ``With the'' and inserting the following:
            ``(1) In general.--With the''; and
            (3) by adding at the end the following:
            ``(2) Limitation.--If the Board receives more than one 
        application for an acquisition of a bank in default or in 
        danger of default or with respect to which the Federal Deposit 
        Insurance Corporation provides assistance under section 13(c) 
        of the Federal Deposit Insurance Act, the Board may only give 
        consent under paragraph (1) to waive the concentration limit if 
        none of the other applications can be approved without such 
        consent.''.
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