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
Senate Joint Resolution 13 (S.J.Res.13) aims 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 rule in question, titled ``Business Combinations Under the Bank Merger Act'' (89 Fed. Reg. 78207), was published on September 25, 2024. The resolution seeks to nullify this rule, preventing it from taking effect.
The resolution was introduced in the Senate on February 4, 2025, and referred to the Committee on Banking, Housing, and Urban Affairs. Subsequently, the committee was discharged by petition, and the resolution was placed on the calendar.
This action utilizes the Congressional Review Act, allowing Congress to review and potentially disapprove new agency rules.
Expected Effects
If S.J.Res.13 is enacted, the OCC's rule regarding bank merger applications would be invalidated. This would mean that the regulatory framework for reviewing such applications would revert to the previous standard, prior to the implementation of the disapproved rule.
The practical effect would depend on the specific changes introduced by the OCC rule. Disapproval could lead to either stricter or more lenient oversight of bank mergers, depending on the content of the rule.
Ultimately, the impact would be felt by banks seeking to merge and potentially by consumers and the financial system as a whole, depending on how the review process is altered.
Potential Benefits
- Could prevent a rule that Congress deems detrimental to the financial system or consumers from taking effect.
- Allows Congress to exert oversight over regulatory agencies, ensuring accountability.
- May preserve a regulatory framework that Congress believes is more effective or appropriate for bank merger reviews.
- Could lead to a more stable and competitive banking environment if the disapproved rule was seen as favoring certain institutions.
- Provides an opportunity for public debate and scrutiny of important regulatory changes.
Potential Disadvantages
- Could hinder the OCC's ability to adapt its regulatory approach to changing market conditions.
- May create uncertainty for banks planning mergers, as the regulatory landscape could shift abruptly.
- Could lead to a less efficient or effective review process if the disapproved rule was intended to streamline or improve it.
- May be perceived as political interference in the regulatory process, undermining the independence of the OCC.
- Could discourage regulatory agencies from proposing new rules if they fear congressional disapproval.
Constitutional Alignment
This resolution is an exercise of Congress's legislative powers under Article I, Section 1 of the Constitution, which vests all legislative powers in Congress. The Congressional Review Act, under which this resolution is brought, is designed to provide a check on the executive branch's regulatory authority, ensuring that agencies do not overstep their bounds.
By disapproving a rule issued by the Office of the Comptroller of the Currency, Congress is asserting its authority to shape the regulatory environment for the banking industry. This aligns with the principle of separation of powers, as it allows Congress to review and potentially reject actions taken by the executive branch.
However, the specific constitutionality of the underlying rule being challenged would require a separate analysis focusing on whether the OCC exceeded its delegated authority or violated any constitutional rights in promulgating the rule.
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).