Failing Bank Acquisition Fairness Act

I 118TH CONGRESS 1ST SESSION H. R. 3914 To prohibit the use of certain concentration limit exceptions applicable to mergers involving a failed bank if there are other qualifying bids, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 7, 2023 Mr. LYNCH introduced the following bill; which was referred to the Committee on Financial Services A BILL To prohibit the use of certain concentration limit exceptions applicable to mergers involving a failed bank if there are other qualifying bids, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Failing Bank Acquisi- 4 tion Fairness Act’’. 5 SEC. 2. CONCENTRATION LIMIT EXCEPTIONS ONLY AVAIL- 6 ABLE WHEN NO OTHER QUALIFYING BIDS. 7 (a) NATIONWIDE CONCENTRATION LIMIT WITH RE- 8 SPECT TO DEPOSITS.—Section 44(e) of the Federal De- 9 VerDate Sep 11 2014 21:03 Jul 06, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3914.IH H3914 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 3914 IH posit Insurance Act (12 U.S.C. 1831u(e)) is amended by 1 adding at the end the following: ‘‘Notwithstanding the pre- 2 vious sentence, if the responsible agency receives more 3 than one application under subsection (a)(1) for approval 4 of a merger transaction involving the acquisition of the 5 same bank in default or in danger of default or with re- 6 spect to which the Corporation provides assistance under 7 section 13(c), the responsible agency may only approve 8 such an application without regard to subsection (b)(2)(A) 9 if none of the other applications can be approved in com- 10 pliance with subsection (b)(2)(A).’’. 11 (b) CONCENTRATION LIMIT WITH RESPECT TO CON- 12 SOLIDATED LIABILITIES.—Section 14(c) of the Bank 13 Holding Company Act of 1956 (12 U.S.C. 1852(c)) is 14 amended— 15 (1) by redesignating paragraphs (1), (2), and 16 (3) as subparagraphs (A), (B), and (C) (and adjust- 17 ing the margins accordingly); 18 (2) by striking ‘‘With the’’ and inserting the 19 following: 20 ‘‘(1) IN GENERAL.—With the’’; and 21 (3) by adding at the end the following: 22 ‘‘(2) LIMITATION.—If the Board receives more 23 than one application for an acquisition of a bank in 24 default or in danger of default or with respect to 25 VerDate Sep 11 2014 21:03 Jul 06, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3914.IH H3914 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 3914 IH which the Federal Deposit Insurance Corporation 1 provides assistance under section 13(c) of the Fed- 2 eral Deposit Insurance Act, the Board may only give 3 consent under paragraph (1) to waive the concentra- 4 tion limit if none of the other applications can be ap- 5 proved without such consent.’’. 6 Æ VerDate Sep 11 2014 21:03 Jul 06, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H3914.IH H3914 pbinns on DSKJLVW7X2PROD with $$_JOB