H.R.1900 - Bank Failure Prevention Act of 2025 (119th Congress)
Summary
H.R.1900, the Bank Failure Prevention Act of 2025, aims to expedite the application process for acquisitions related to depository institution holding companies. It sets specific deadlines for regulatory agencies to review and make decisions on these applications. The bill amends the Bank Holding Company Act of 1956, the Home Owners' Loan Act, and the Federal Deposit Insurance Act to enforce these changes.
Expected Effects
The bill will likely reduce the time it takes for bank holding companies, savings and loan holding companies, and insured depository institutions to get approval for acquisitions. This could lead to quicker consolidation and restructuring within the financial industry. The changes aim to streamline regulatory processes and reduce uncertainty for applicants.
Potential Benefits
- Faster Approvals: The set deadlines ensure quicker decisions on applications.
- Reduced Uncertainty: Clear timelines reduce uncertainty for financial institutions seeking acquisitions.
- Increased Efficiency: Streamlined processes may lead to more efficient regulatory oversight.
- Applicant Control: The ability to extend deadlines at the applicant's request provides flexibility.
- Transparency: The requirement for detailed notices regarding deficiencies enhances transparency.
Most Benefited Areas:
Potential Disadvantages
- Potential for Rushed Decisions: Fixed deadlines might lead to less thorough reviews in some cases.
- Reduced Regulatory Scrutiny: Limiting consideration of third-party information could weaken oversight.
- Increased Risk of Approvals: The 'deemed approved' clause may result in approvals of problematic applications.
- Complexity: The detailed requirements could create new layers of administrative burden.
- Unintended Consequences: Faster consolidation might reduce competition or increase systemic risk.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8), which grants Congress the power to regulate commerce among the states. By setting rules for bank acquisitions, the bill aims to manage and stabilize the financial system, which has a clear impact on interstate commerce. The bill does not appear to infringe upon any specific individual rights or liberties protected by the Constitution or its amendments.
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).