Bill > HR6555

This bill, titled the "Enhancing Bank Resolution Participation Act," mandates a comprehensive study by the Comptroller of the Currency, the Federal Deposit Insurance Corporation (FDIC), and the Board of Governors of the Federal Reserve System. The study will examine the use of "shelf charters," which are pre-approved bank charters that can be quickly activated, and "modified bidder qualification processes," a system used by the FDIC to allow entities without existing bank charters to bid on acquiring failing banks. The study will investigate how these tools have been used, particularly in relation to the Bank Holding Company Act and the Home Owners’ Loan Act, and whether they could have improved the acquisition of assets and liabilities from failed banks in 2023, potentially increasing competition, protecting the Deposit Insurance Fund, and enhancing financial stability. It will also assess the broader impact of these practices since 2008 on financial stability, bank safety and soundness, and consumer services, as well as the benefits and risks of private equity ownership of banks through these mechanisms. Within one year of enactment, the agencies must report their findings and any recommendations for legislative or regulatory changes to Congress.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/6555/all-info