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.
- Bill Number
- H.J.Res. 92
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-04-10: Referred to the House Committee on Financial Services.
- Last Updated
- 2025-09-22T15:31:42Z
AI-Generated Summary
Purpose
This joint resolution (H.J. Res. 92) aims to block a new federal rule issued by the Office of the Comptroller of the Currency (OCC), a part of the U.S. Department of the Treasury. The rule updates how the OCC reviews applications for bank mergers under the Bank Merger Act. By disapproving the rule, Congress seeks to prevent it from taking effect, maintaining the status quo in bank merger oversight.
Key Provisions
- Disapproval of Specific Rule: The resolution explicitly disapproves the OCC's rule titled "Review of Applications Under the Bank Merger Act," published in the Federal Register on September 25, 2024 (89 Fed. Reg. 78207).
- Nullification: Once passed, the rule will have no legal force or effect, meaning it cannot be implemented.
- Congressional Review Act Authority: This action is taken under the Congressional Review Act (CRA), a law that allows Congress to review and overturn certain agency rules within a set timeframe after they are issued.
Significant Changes to Existing Law
- Overturn of Agency Rulemaking: The resolution does not amend statutes but uses the CRA to invalidate the OCC's interpretive rule, which would have introduced stricter or more detailed criteria for evaluating bank mergers (e.g., considering financial stability, community impact, and competition).
- Reversion to Prior Standards: Bank merger reviews would revert to pre-rule guidelines, potentially simplifying the approval process without the new enhanced review factors outlined in the OCC's rule.
Potential Impacts
- On Government Agencies: The OCC and other banking regulators (like the Federal Reserve and FDIC) may face delays or adjustments in merger review processes, as they lose the new standardized framework. This could increase congressional scrutiny on future agency rules.
- On Citizens: Everyday banking customers might see fewer changes in merger policies, potentially leading to more bank consolidations without added protections for community access to services or financial risks. It could affect competition in local banking markets.
- On International Relations: Minimal direct impact, though large bank mergers involving international operations could proceed more easily, indirectly influencing global financial ties.
Main Stakeholders Affected
- Banks and Financial Institutions: Large and small banks seeking mergers would benefit from the rule's disapproval, as it avoids potentially tougher approval hurdles.
- Regulatory Agencies: The OCC, Federal Reserve, and Federal Deposit Insurance Corporation (FDIC) are directly impacted, as their coordinated review processes under the Bank Merger Act remain unchanged.
- Congress and Lawmakers: Sponsors (e.g., Reps. Barr, Fitzgerald, and Moore) and the House Financial Services Committee gain influence over financial regulation.
- Consumers and Communities: Local residents and small businesses could be affected if mergers lead to reduced banking options or branch closures without the rule's community-focused reviews.
Notable Legal, Constitutional, or Political Implications
- Legal: Invokes the CRA, a tool created in 1996 to empower Congress against executive branch overreach in rulemaking. If enacted, it sets a precedent for quick congressional vetoes of financial regulations without needing new legislation.
- Constitutional: Reinforces the separation of powers by allowing the legislative branch to check agency actions under the executive branch, aligning with Article I's grant of lawmaking authority to Congress.
- Political: Highlights partisan or bipartisan tensions in financial deregulation; introduced in the 119th Congress (2025–2026), it reflects efforts to limit what some view as overly burdensome rules on banking consolidation, potentially sparking debates on economic policy and regulatory independence.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Rep. Fitzgerald, Scott [R-WI-5], Rep. Moore, Tim [R-NC-14], Rep. Sessions, Pete [R-TX-17]
Recent Actions
- 2025-04-10: Referred to the House Committee on Financial Services.
- 2025-04-10: Introduced in House
- 2025-04-10: Introduced in House
Bill Versions
- 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. — issued 2025-04-10 — PDF (2 pages)