Failing Bank Acquisitions & Deposit Concentration Waivers
Current understanding
Federal law generally bars a bank merger that would give the combined firm more than 10% of nationwide insured deposits, but regulators may waive this cap when acquiring a failing institution. Legislation has been introduced (Failing Bank Acquisition Fairness Act) to tighten waiver conditions by requiring a finding that no qualified non-concentrated bidder exists, that the merger is necessary to prevent financial instability, and mandating congressional reporting on any waiver granted.
Evidence log
- 2026-06-25 — Bank Failure Accountability Act: cross-connection with bank-failure-accountability-act: Both address post-failure bank policy: HR9490 targets accountability for failures while the deposit concentration waiver rules govern how failing banks may be acquired. (novelty: 3)
- 2025-05-20 — Providing for consideration of the joint resolution (S.J. Res. 13) 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; providing for consideration of the joint resolution (S.J. Res. 31) providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Environmental Protection Agency relating to “Review of Final Rule Reclassification of Major Sources as Area Sources Under Section 112 of the Clean Air Act”; and waiving a requirement of clause 6(a) of rule XIII with respect to consideration of certain resolutions reported from the Committee on Rules.: cross-connection with occ-bank-merger-act-rule-cra-disapproval: OCC Bank Merger Act review standards interact with deposit-concentration and failing-bank acquisition waiver frameworks that govern which mergers can proceed. (novelty: 2)
- 2026-02-02 — Failing Bank Acquisition Fairness Act: cross-connection with bank-holding-company-regulatory-thresholds: Deposit-concentration waiver conditions during failing-bank acquisitions interact with size-based thresholds and systemic-risk considerations for large bank holding companies. (novelty: 3)