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) proposes congressional disapproval of 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 rule in question, titled ``Business Combinations Under the Bank Merger Act,'' is published in the Federal Register (89 Fed. Reg. 78207). The resolution seeks to nullify this rule, preventing it from taking effect.
The resolution invokes Chapter 8 of Title 5 of the United States Code, which provides a mechanism for Congress to review and disapprove agency rules. This is a check on the power of the executive branch.
The bill was introduced in the Senate on February 4, 2025, and referred to the Committee on Banking, Housing, and Urban Affairs.
Expected Effects
If S.J. Res. 13 is enacted, the OCC rule concerning bank merger applications would be invalidated. This would mean the OCC would need to operate under the previous regulatory framework or issue a revised rule that addresses congressional concerns.
The immediate effect would be to maintain the status quo regarding bank merger reviews. This could potentially slow down or alter the landscape of bank consolidation.
The long-term effect depends on whether the OCC issues a new rule and how Congress responds to any future regulatory changes.
Potential Benefits
- Prevents potential negative consequences of the OCC rule if Congress believes it is detrimental to the financial system or consumers.
- Reinforces congressional oversight of executive agency rulemaking, ensuring accountability.
- Allows for further debate and consideration of the appropriate regulatory framework for bank mergers.
- Could lead to a more balanced and effective approach to bank merger regulation if the OCC revises the rule in response to congressional concerns.
- Provides stability and prevents uncertainty in the banking sector if the rule is deemed problematic.
Potential Disadvantages
- Creates uncertainty for banks planning mergers, as the regulatory framework becomes less clear.
- May hinder the OCC's ability to adapt to changing market conditions and update its regulatory approach.
- Could lead to political gridlock if Congress and the OCC disagree on the appropriate regulatory approach.
- Potentially delays or prevents beneficial bank mergers that could improve efficiency and benefit consumers.
- May create an inefficient regulatory environment if the previous rules are outdated or inadequate.
Constitutional Alignment
This resolution 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 brought, is a mechanism created by Congress to check the power of the Executive Branch and ensure agency regulations align with Congressional intent.
By disapproving the OCC rule, Congress is exercising its legislative authority to oversee and potentially nullify executive agency actions. This is a valid exercise of congressional power under the Constitution.
However, the specific merits of the disapproval depend on whether the OCC rule itself is consistent with the broader constitutional principles and statutory mandates. The resolution itself is procedurally constitutional.
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).