H.R. 6556 · Passed House · Finance and Financial Sector

Failing Bank Acquisition Fairness Act

What it does

Tighten federal waiver standards for acquisitions of failing banks, requiring regulators to find that a merger is necessary to prevent significant economic disruption or financial instability before allowing an acquirer
Mandate that regulators cannot waive deposit concentration limits unless the FDIC has first received and rejected a qualified bid from a company not subject to the concentration restriction.
Establish capitalization and management standards that bidders must meet to qualify as alternative acquirers in failing bank sales.
Require regulators to report to Congress whenever they waive deposit concentration limits, detailing the circumstances and justification for the waiver.

Official summary

Failing Bank Acquisition Fairness Act This bill tightens restrictions on certain waivers granted by federal financial regulators to companies that acquire insured depository institutions. Under current law, a regulator may not approve an acquisition if it would result in an institution exceeding a set concentration limit (i.e., controlling more than 10% of total insured U.S. deposits). This may be waived if one or more of the institutions involved is in default or in danger of default or if the Federal Deposit Insurance Corporation (FDIC) is providing certain assistance. In addition to these requirements, the bill requires the regulator to determine that (1) the merger is necessary to prevent significant economic disruption or financial instability, and (2) FDIC has not received a qualified bid from a company not subject to this concentration limit. The bill also provides capitalization and management standards for qualified bids. Regulators that waive these concentration limits must report to Congress on the circumstances and justification of the waiver.

Latest action

Jul 15, 2026: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Committee: Senate Banking, Housing, and Urban Affairs