H.J.Res.92 - Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Office of the Comptroller of the Currency of the Department of the Treasury relating to the review of applications under the Bank Merger Act. (119th Congress)
Summary
H.J.Res.92 is a joint resolution introduced in the House of Representatives aiming to disapprove a rule submitted by the Office of the Comptroller of the Currency (OCC) regarding the review of applications under the Bank Merger Act. The resolution utilizes the Congressional Review Act (CRA), codified in chapter 8 of title 5, United States Code, to nullify the OCC's rule. The rule in question is identified as 89 Fed. Reg. 78207, published on September 25, 2024.
The resolution asserts that the OCC's rule should have no force or effect. This action reflects a congressional effort to oversee and potentially limit the regulatory authority of executive agencies.
The bill was introduced by Mr. Barr, Mr. Fitzgerald, and Mr. Moore of North Carolina and referred to the Committee on Financial Services.
Expected Effects
If enacted, H.J.Res.92 would prevent the implementation or enforcement of the OCC rule concerning Bank Merger Act applications. This would maintain the existing regulatory framework for bank mergers, preventing any changes the OCC rule intended to introduce.
The disapproval could lead to a re-evaluation of the bank merger review process, potentially requiring the OCC to revise its approach or seek further congressional input. The practical effect is that the existing rules for bank mergers would remain in place, at least temporarily.
This could impact the speed and nature of bank consolidation, potentially affecting competition and financial stability.
Potential Benefits
- Prevents potential unintended consequences of the new OCC rule on bank mergers.
- Allows Congress to maintain oversight and control over financial regulations.
- Provides an opportunity for further review and public debate on the bank merger process.
- Could protect smaller banks from being easily acquired by larger institutions, preserving local banking options.
- May ensure a more cautious approach to bank consolidation, potentially mitigating risks to the financial system.
Potential Disadvantages
- Could hinder efforts to modernize or streamline the bank merger review process.
- May create uncertainty for banks planning mergers, potentially delaying or discouraging beneficial transactions.
- Could be perceived as an overreach of congressional authority into regulatory matters.
- May stifle innovation and efficiency gains that the OCC rule intended to promote.
- Could lead to political gridlock and hinder the ability of regulatory agencies to adapt to changing market conditions.
Constitutional Alignment
The resolution's constitutional alignment stems from Article I, Section 1, which vests all legislative powers in Congress. The Congressional Review Act (CRA), under which this resolution is made, is an exercise of Congress's oversight authority over executive agencies, ensuring that agency rules align with congressional intent.
Furthermore, the resolution can be seen as an application of the principle of checks and balances, preventing the executive branch (through the OCC) from unilaterally altering regulations without congressional consent.
However, some may argue that excessive use of the CRA could impinge on the executive branch's ability to implement laws effectively, potentially disrupting the separation of powers.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).