S.jres13 - 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
This document is a Joint Resolution (S.J.Res.13) passed by the US Congress to disapprove a rule submitted by the Office of the Comptroller of the Currency (OCC) regarding the review of bank merger applications under the Bank Merger Act. The resolution specifically targets the rule titled "Business Combinations Under the Bank Merger Act" as published in the Federal Register (89 Fed. Reg. 78207). The resolution states that the disapproved rule shall have no force or effect.
By disapproving the OCC rule, Congress is exercising its oversight authority to prevent the implementation of a regulatory change it deems inappropriate. This action reflects a congressional check on the executive branch's regulatory actions.
The resolution was passed during the first session of the One Hundred Nineteenth Congress.
Expected Effects
The immediate effect of this resolution is that the OCC rule concerning bank merger applications will not be implemented. This means the regulatory framework for reviewing such applications will remain as it was before the disapproved rule was proposed.
This could lead to a continuation of existing practices in bank merger reviews, potentially affecting the speed, criteria, or stringency of these reviews. Banks seeking mergers will have to adhere to the pre-existing regulatory landscape.
Potential Benefits
- Prevents potential negative consequences of the disapproved rule, as perceived by Congress.
- Maintains the status quo in bank merger regulations, providing stability and predictability for financial institutions.
- Reinforces congressional oversight of executive branch agencies and their regulatory actions.
- Could protect consumers and smaller banks if the disapproved rule would have led to increased consolidation and reduced competition.
- Ensures that changes to bank merger regulations are subject to congressional scrutiny and approval.
Potential Disadvantages
- May hinder efforts to modernize or streamline bank merger review processes if the disapproved rule had positive aspects.
- Could create uncertainty for banks that were planning their merger strategies based on the anticipated changes in the rule.
- Potentially slows down the process of bank consolidation, which some argue is necessary for efficiency and competitiveness.
- May lead to regulatory gridlock if Congress frequently disapproves agency rules, creating instability in the financial sector.
- Could be viewed as an overreach of congressional authority into areas of regulatory expertise.
Constitutional Alignment
This action aligns with Article I, Section 1 of the US Constitution, which vests all legislative powers in Congress. The Congressional Review Act, under which this resolution is enacted, is a mechanism for Congress to check the power of the executive branch in creating regulations.
By disapproving the OCC rule, Congress is exercising its legislative power to shape the regulatory environment. This is consistent with the principle of separation of powers and the system of checks and balances established by the Constitution.
However, the specific merits of the disapproval and its impact on the financial sector are policy choices that fall within the purview of Congress's legislative authority.
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).