H.R. 3914 — Introduced in House

I 118th CONGRESS 1st Session H. R. 3914 IN THE HOUSE OF REPRESENTATIVES June 7, 2023Mr. 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. 1. Short title This Act may be cited as the Failing Bank Acquisition Fairness Act. 2. Concentration limit exceptions only available when no other qualifying bids (a) Nationwide concentration limit with respect to deposits Section 44(e) of the Federal Deposit Insurance Act (12 U.S.C. 1831u(e)) is amended by adding at the end the following: Notwithstanding the previous sentence, if the responsible agency receives more than one application under subsection (a)(1) for approval of a merger transaction involving the acquisition of the same bank in default or in danger of default or with respect to which the Corporation provides assistance under section 13(c), the responsible agency may only approve such an application without regard to subsection (b)(2)(A) if none of the other applications can be approved in compliance with subsection (b)(2)(A).. (b) Concentration limit with respect to consolidated liabilities Section 14(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1852(c)) is amended— (1) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C) (and adjusting the margins accordingly); (2) by striking With the and inserting the following: (1) In general With the ; and (3) by adding at the end the following: (2) Limitation If the Board receives more than one application for an acquisition of a bank in default or in danger of default or with respect to which the Federal Deposit Insurance Corporation provides assistance under section 13(c) of the Federal Deposit Insurance Act, the Board may only give consent under paragraph (1) to waive the concentration limit if none of the other applications can be approved without such consent. .