Enhancing Bank Resolution Participation Act | ChamberLight
Bills · HR 6555
REPORTED· 119TH CONGRESS
House BillHR 6555Financial crises and stabilizationCorporate finance and management
Enhancing Bank Resolution Participation Act
INTRO DEC 10· LAST ACTION FEB 25
READING
4MIN
COSPONSORS
2BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Reported, not passed
LEGISLATIVE PROGRESS
STEP 3 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
This bill matters because it addresses how the government deals with bank failures, which can have significant consequences for the economy and ordinary people. When banks collapse, there's a risk to depositors' money (though the FDIC insures up to certain limits) and the stability of the entire financial system. The way these failures are resolved can influence how much it costs taxpayers and how quickly markets recover. By studying "shelf charters" and "modified bidder qualification processes," lawmakers want to understand if there are better, more efficient ways to handle these situations.
If this bill becomes law, the study's findings could lead to new regulations or laws that change how failed banks are acquired, potentially leading to more competition, more diverse solutions, and stronger financial stability. If it doesn't become law, the current processes for resolving bank failures will remain under less public scrutiny regarding these specific tools, and opportunities for improvement identified by such a study might be missed.
KEY PROVISIONS
5AI-extracted
PROVISION 01
Requires the Comptroller of the Currency, FDIC, and Federal Reserve to jointly study the use of shelf charters and modified bidder qualification processes.
This initiates a comprehensive review by the primary agencies responsible for bank oversight and resolution.
PROVISION 02
The study must include all conditional or preliminary shelf charter approvals between January 1, 2008, and the bill's enactment date.
This provides a specific historical scope for analyzing the usage and impact of shelf charters over a significant period, including past financial crises.
PROVISION 03
The study will analyze whether these processes were considered or used in 2023 bank receiverships and their potential to expand bidder pools, increase competition, protect the Deposit Insurance Fund, or strengthen financial stability.
This directly addresses recent real-world events and seeks to understand if these tools could have improved outcomes during specific bank failures.
PROVISION 04
The study must assess the impact of these processes since January 1, 2008, including on financial stability, bank safety, and consumer access to financial products.
This broader evaluation ensures a holistic understanding of the long-term effects of these tools beyond just recent failures.
PROVISION 05
Mandates a joint report to Congress within one year, detailing findings and recommendations for legislative and regulatory changes.
This ensures accountability and provides a direct path for the study's insights to inform future policymaking.
This bill matters because it addresses how the government deals with bank failures, which can have significant consequences for the economy and ordinary people. When banks collapse, there's a risk to depositors' money (though the FDIC insures up to certain limits) and the stability of the entire financial system. The way these failures are resolved can influence how much it costs taxpayers and how quickly markets recover. By studying "shelf charters" and "modified bidder qualification processes," lawmakers want to understand if there are better, more efficient ways to handle these situations.
If this bill becomes law, the study's findings could lead to new regulations or laws that change how failed banks are acquired, potentially leading to more competition, more diverse solutions, and stronger financial stability. If it doesn't become law, the current processes for resolving bank failures will remain under less public scrutiny regarding these specific tools, and opportunities for improvement identified by such a study might be missed.
KEY PROVISIONS
AI-extracted
high
Requires the Comptroller of the Currency, FDIC, and Federal Reserve to jointly study the use of shelf charters and modified bidder qualification processes.
This initiates a comprehensive review by the primary agencies responsible for bank oversight and resolution.
med
The study must include all conditional or preliminary shelf charter approvals between January 1, 2008, and the bill's enactment date.
This provides a specific historical scope for analyzing the usage and impact of shelf charters over a significant period, including past financial crises.
high
The study will analyze whether these processes were considered or used in 2023 bank receiverships and their potential to expand bidder pools, increase competition, protect the Deposit Insurance Fund, or strengthen financial stability.
This directly addresses recent real-world events and seeks to understand if these tools could have improved outcomes during specific bank failures.
med
The study must assess the impact of these processes since January 1, 2008, including on financial stability, bank safety, and consumer access to financial products.
This broader evaluation ensures a holistic understanding of the long-term effects of these tools beyond just recent failures.
high
Mandates a joint report to Congress within one year, detailing findings and recommendations for legislative and regulatory changes.
This ensures accountability and provides a direct path for the study's insights to inform future policymaking.
Not later than 1 year after the date of enactment of this Act
Submission of the joint report to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs.
GLOSSARY
AI-written
Comptroller of the Currency (OCC)
An independent bureau within the U.S. Department of the Treasury that charters, regulates, and supervises all national banks and federal savings associations.
Federal Deposit Insurance Corporation (FDIC)
An independent agency of the U.S. government that protects bank depositors by insuring deposits and supervises financial institutions for safety and soundness. It also manages receiverships of failed banks.
Federal Reserve System (the Fed)
The central bank of the United States, responsible for conducting monetary policy, supervising and regulating banks, and maintaining financial stability.
Shelf charter
A bank charter that has been approved by regulators but is not yet fully operational. It can be quickly activated or transferred to an acquiring entity, especially during the resolution of a failed bank, to speed up the process.
Modified bidder qualification process
A method used by the FDIC to allow a broader range of potential buyers, including those without a pre-existing bank charter (like certain private equity firms), to participate in the bidding process for a failed bank or its assets.
Insured depository institution
A bank or savings association whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC).
ACTION TIMELINE
7 EVENTS
FEB 25
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-534.
COMMITTEE
FEB 25
Placed on the Union Calendar, Calendar No. 459.
CALENDARS
DEC 17, 25
Committee Consideration and Mark-up Session Held
COMMITTEE
DEC 17, 25
Ordered to be Reported (Amended) by the Yeas and Nays: 51 - 0.
