Bank Failure Prevention Act of 2025
This bill revises the Federal Reserve Board’s review process of merger and acquisition applications for bank holding companies.
Specifically, the board must notify the applicant within a certain time period regarding whether the application is complete or if additional information is required. The board must grant or deny such an application no later than 90 days after submission, regardless of whether the application was deemed complete. (Currently, the board must grant or deny an application no later than 90 days after receipt of a complete application.)
In addition, the board is prohibited from basing such application determinations on information provided by third parties.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1900 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1900
To specify when the record is complete on certain acquisition
applications related to depository institution holding companies, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 6, 2025
Mr. Barr (for himself and Mr. Fitzgerald) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To specify when the record is complete on certain acquisition
applications related to depository institution holding companies, 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 ``Bank Failure Prevention Act of
2025''.
SEC. 2. COMPLETE RECORD ON AN APPLICATION.
(a) Bank Holding Companies.--Section 3(b)(1) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1842(b)(1)) is amended--
(1) by striking ``Upon receiving'' and inserting the
following:
``(A) In general.--Upon receiving'';
(2) by striking ``required'' and inserting ``acquired'';
(3) by striking ``In the event of the failure of the Board
to act on any application for approval under this section
within the ninety-one-day period which begins on the date of
submission to the Board of the complete record on that
application, the application shall be deemed to have been
granted.''; and
(4) by adding at the end the following:
``(B) Complete record on an application.--
``(i) Notice to applicant.--Not later than 30 days
after the date on which the Board receives an
application for approval under this section, the Board
shall transmit to the applicant a letter that either--
``(I) confirms the record on the
application is complete; or
``(II) details all additional information
that is required for the record on that
application to be complete.
``(ii) Extension of notice.--Notwithstanding clause
(i), the Board may, if an application is unusually
complex, extend the 30-day period described under
clause (i) for an additional 30 days.
``(iii) Receipt of response; deeming of complete
record.--Upon receipt of a response from an applicant
to a notice requesting additional information described
under clause (i)(II), the record on the application
shall be deemed complete unless the Board--
``(I) determines that the applicant's
response was materially deficient; and
``(II) not later than 30 days after the
date on which the Board received the response,
provides the applicant a detailed notice
describing the deficiencies.
``(iv) Treatment of third-party information.--In
determining whether the record on an application is
complete, the Board may take into account only
information provided by the applicant, and may not base
the determination of the Board on any information
(including reports, views, or recommendations) provided
by third parties.
``(C) Deadline for determination.--
``(i) In general.--Notwithstanding subparagraphs
(A) and (B), the Board shall grant or deny an
application submitted under this section not later than
90 days after the date on which the application was
initially submitted to the Board, regardless of whether
the record on such initial application was complete.
``(ii) Failure to make a determination.--If the
Board does not grant or deny an application within the
time period described under clause (i), such
application shall be deemed to have been granted.''.
(b) Savings and Loan Holding Companies.--Section 10(e) of the Home
Owners' Loan Act (12 U.S.C. 1467a(e)) is amended--
(1) in paragraph (2), by striking ``, and shall render a
decision within 90 days after submission to the Board of the
complete record on the application'';
(2) by redesignating paragraph (7) as paragraph (9); and
(3) by inserting after paragraph (6) the following:
``(7) Complete record on an application.--
``(A) Notice to applicant.--Not later than 30 days
after the date on which the Board receives an
application for approval under this subsection, the
Board shall transmit to the applicant a letter that
either--
``(i) confirms the record on the
application is complete; or
``(ii) details all additional information
that is required for the record on that
application to be complete.
``(B) Extension of notice.--Notwithstanding
subparagraph (A), the Board may, if an application is
unusually complex, extend the 30-day period described
under subparagraph (A) for an additional 30 days.
``(C) Receipt of response; deeming of complete
record.--Upon receipt of a response from an applicant
to a notice requesting additional information described
under subparagraph (A)(ii), the record on the
application shall be deemed complete unless the Board--
``(i) determines that the applicant's
response was materially deficient; and
``(ii) not later than 30 days after the
date on which the Board received the response,
provides the applicant a detailed notice
describing the deficiencies.
``(D) Treatment of third-party information.--In
determining whether the record on an application is
complete, the Board may take into account only
information provided by the applicant, and may not base
the determination of the Board on any information
(including reports, views, or recommendations) provided
by third parties.
``(8) Deadline for determination.--
``(A) In general.--Notwithstanding any other
provision of this subsection, the Board shall grant or
deny an application submitted under this subsection not
later than 90 days after the date on which the
application was initially submitted to the Board,
regardless of whether the record on such initial
application was complete.
``(B) Failure to make a determination.--If the
Board does not grant or deny an application within the
time period described under subparagraph (A), such
application shall be deemed to have been granted.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held
Ordered to be Reported (Amended) by the Yeas and Nays: 29 - 21.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-132.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-132.
Placed on the Union Calendar, Calendar No. 101.
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