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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6547 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6547
To amend the Federal Deposit Insurance Act to provide an exception to
the least-cost resolution requirement, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 10, 2025
Mr. Flood introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal Deposit Insurance Act to provide an exception to
the least-cost resolution requirement, 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 ``Least Cost Exception Act''.
SEC. 2. LEAST COST RESOLUTION EXCEPTION TO AVOID FURTHER CONCENTRATION
AMONG GLOBAL SYSTEMICALLY IMPORTANT BANKING
ORGANIZATIONS.
(a) In General.--Section 13(c)(4) of the Federal Deposit Insurance
Act (12 U.S.C. 1823(c)(4)) is amended--
(1) in subparagraph (A)(ii), by inserting ``except as
provided in subparagraph (I),'' before ``the total amount'';
(2) in subparagraph (E)(i), by inserting ``and except as
provided in subparagraph (I),'' after ``appropriate,''; and
(3) by adding at the end the following:
``(I) Least cost resolution exception.--
``(i) In general.--With respect to an
exercise of authority by the Corporation
described in subparagraph (A), the Corporation
may, at the discretion of the Corporation,
select an alternative method of exercising such
authority that is not the least costly to the
Deposit Insurance Fund, if--
``(I) the Corporation determines
that the selected alternative complies
with the requirements of clause (iii);
and
``(II) the Corporation and the
Board of Governors of the Federal
Reserve System, after consultation with
the Secretary of the Treasury,
determine that the potential additional
risks to the Deposit Insurance Fund of
the selected alternative are outweighed
by the reasonably expected benefits of
limiting further concentration of the
United States banking system in global
systemically important banking
organizations.
``(ii) Maximum cost to the deposit
insurance fund.--Not later than 1 year after
the date of enactment of this subparagraph, the
Corporation, by rule, shall specify the maximum
amount of the net worth of the Deposit
Insurance Fund that may be utilized to account
for any determination under clause (i).
``(iii) Requirements described.--The
requirements for the selected alternative
described in clause (i) are as follows:
``(I) The selected alternative is
least costly to the Deposit Insurance
Fund of all alternatives that do not
involve a transaction with a global
systemically important banking
organization and that do not exceed the
cost of liquidating the insured
depository institution.
``(II) The difference between the
cost of the selected alternative and
the cost of a covered alternative is
less than the maximum cost to the
Deposit Insurance Fund specified
pursuant to the rule adopted under
clause (ii).
``(III) In the case of a selected
alternative that involves another
person purchasing assets of the insured
depository institution or assuming
liabilities of the insured depository
institution, such person agrees to pay
an assessment to the Deposit Insurance
Fund comprised of payments--
``(aa) made over a period
to be determined by the
Corporation, but which may not
be less than 5 years; and
``(bb) that, taking into
account a realistic discount
rate, are in an aggregate
amount equal to the difference
calculated in subclause (II).
``(iv) Report to congress.--Not later than
30 days after selecting an alternative
described in clause (i), the Corporation shall
issue a report to the Committee on Financial
Services of the House of Representatives and
the Committee on Banking, Housing, and Urban
Affairs of the Senate containing an analysis of
the economic difference between the cost to the
Deposit Insurance Fund of the selected
alternative and the cost to the Deposit
Insurance Fund of the least costly alternative
that would have been selected absent the
application of this subparagraph.
``(v) Definitions.--In this subparagraph:
``(I) Covered alternative.--The
term `covered alternative' means a
method of exercising authority
described in subparagraph (A) that is
the least costly to the Deposit
Insurance Fund of all such methods that
involve a sale of all or substantially
all assets of the insured depository
institution to, and assumption of all
or substantially all liabilities of the
insured depository institution by, a
global systemically important banking
organization.
``(II) Global systemically
important banking organization.--The
term `global systemically important
banking organization' means a global
systemically important BHC (as such
term is defined in section 217.402 of
title 12, Code of Federal Regulations,
or any successor thereto) and any
affiliate thereof.''.
(b) Rule of Construction.--Section 13(c)(4)(H) of the Federal
Deposit Insurance Act (12 U.S.C. 1823(c)(4)(H)) does not apply to the
amendments made by subsection (a).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held
Committee Consideration and Mark-up Session Held
Ordered to be Reported (Amended) by the Yeas and Nays: 50 - 0.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-474.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-474.
Placed on the Union Calendar, Calendar No. 405.
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