Enhancing Bank Resolution Participation Act

Bill Number

H.R. 6555

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2026-02-25: Placed on the Union Calendar, Calendar No. 459.

Last Updated

2026-06-11T23:26:41Z

AI-Generated Summary

Summary of H.R. 6555: Enhancing Bank Resolution Participation Act

Purpose

This legislation aims to improve the process for resolving failed banks by requiring federal banking regulators to study tools that could increase bidder participation in acquiring failed banks' assets and liabilities. It focuses on "shelf charters" (pre-approved bank charters ready for quick use) and "modified bidder qualification processes" (relaxed rules allowing non-bank entities to bid on failed banks). The goal is to enhance competition, protect the deposit insurance system, and promote financial stability, particularly in light of bank failures in 2023.

Key Provisions

• Joint Study Requirement: The Comptroller of the Currency (OCC, which oversees national banks), the Federal Deposit Insurance Corporation (FDIC, which insures deposits and handles failed banks), and the Board of Governors of the Federal Reserve System must conduct a collaborative study covering:
• Use of shelf charters by the OCC, including any conditional approvals from January 1, 2008, to the date of enactment.
• Use of the modified bidder qualification process by the FDIC.
• How existing laws like the Bank Holding Company Act of 1956 (regulates bank ownership) and the Home Owners' Loan Act (governs savings associations) apply to shelf charter proposals.
• Whether these tools were used in FDIC receiverships (takeovers of failed banks) in 2023.
• Potential benefits of greater use in 2023 cases, such as expanding bidder pools, increasing competition, protecting the Deposit Insurance Fund (which covers depositor losses), and reducing the need for emergency Treasury actions.
• Overall impacts since 2008 on financial stability, bank safety, and consumer access to financial products.
• Benefits and risks of private equity firms owning banks via these tools.
• Report to Congress: Within one year of enactment, the agencies must submit a joint report to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs. The report includes study findings and identifies legal or regulatory barriers to using these tools effectively, with recommendations for legislative or regulatory fixes.
• Definitions:
• Insured depository institution: A bank or similar institution with FDIC deposit insurance.
• Modified bidder qualification process: A 2008 FDIC policy allowing entities without a bank charter (e.g., investors) to bid on troubled banks.
• Shelf charter: A pre-approved national bank charter that can be quickly activated, as described in a 2017 OCC report.

Significant Changes to Existing Law

This bill does not directly amend or repeal any laws. Instead, it mandates a study and report, which could indirectly influence future changes by highlighting barriers in statutes like the Bank Holding Company Act or FDIC processes. No immediate alterations to current banking regulations are made.

Potential Impacts

• Government Agencies: The OCC, FDIC, and Federal Reserve will face additional workload to complete the study and report, potentially leading to streamlined resolution processes if recommendations are adopted. This could reduce costs to the Deposit Insurance Fund by attracting more bidders to failed bank sales.
• Citizens: Improved bank resolution tools may enhance financial stability, minimizing risks of broader economic disruptions from bank failures (as seen in 2023). Consumers could benefit from greater access to diverse financial services if more entities enter the market.
• International Relations: No direct impacts, as the bill focuses on domestic U.S. banking regulations.
• Overall, it could foster a more competitive banking sector, potentially lowering resolution costs and protecting taxpayer-funded insurance.

Main Stakeholders Affected

• Federal Regulators: OCC, FDIC, and Federal Reserve, who must perform the study and may implement changes.
• Banking Industry: Insured depository institutions, including national banks and savings associations, which could face increased competition from new entrants using shelf charters.
• Potential Bidders: Private equity firms, investors, and non-bank entities interested in acquiring failed banks, as the study examines easing their participation.
• Congress: House and Senate banking committees, which receive the report and could pursue follow-up legislation.
• Depositors and Taxpayers: Indirectly affected through protections for the Deposit Insurance Fund and financial system stability.

Notable Legal, Constitutional, or Political Implications

• Legal: The bill reinforces existing regulatory frameworks by scrutinizing their application to modern tools like shelf charters, potentially identifying gaps in laws governing bank ownership and resolutions. It promotes transparency without overriding agency discretion.
• Constitutional: No apparent issues, as it involves standard congressional oversight of executive agencies and falls within Congress's authority over commerce and banking under Article I.
• Political: Introduced amid concerns over 2023 bank failures (e.g., Silicon Valley Bank), it reflects bipartisan interest (additional sponsors from both parties) in strengthening resolution processes to prevent systemic risks. Recommendations could spark debates on private equity's role in banking, balancing innovation against safety concerns.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Huizenga, Bill [R-MI-4]

Cosponsors (2)

Rep. Gottheimer, Josh [D-NJ-5], Rep. Lawler, Michael [R-NY-17]

Recent Actions

• 2026-02-25: Placed on the Union Calendar, Calendar No. 459.
• 2026-02-25: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-534.
• 2026-02-25: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-534.
• 2025-12-17: Ordered to be Reported (Amended) by the Yeas and Nays: 51 - 0.
• 2025-12-17: Committee Consideration and Mark-up Session Held
• 2025-12-16: Committee Consideration and Mark-up Session Held
• 2025-12-10: Referred to the House Committee on Financial Services.
• 2025-12-10: Introduced in House
• 2025-12-10: Introduced in House

Bill Versions

• Enhancing Bank Resolution Participation Act — issued 2025-12-10 — PDF (5 pages)
• Enhancing Bank Resolution Participation Act — issued 2026-02-25 — PDF (8 pages)