Merger Agreement Approvals Clarity and Predictability Act
- Bill Number
- H.R. 6570
- 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. 460.
- Last Updated
- 2026-06-11T23:41:24Z
AI-Generated Summary
Purpose
The legislation, titled the "Merger Agreement Approvals Clarity and Predictability Act," aims to promote transparency and accountability in how federal regulators review and approve mergers of insured banks and credit unions. It mandates an independent study by the Government Accountability Office (GAO, the investigative arm of Congress) to examine whether regulators' use of commitments and conditions—agreements or requirements imposed on merging institutions—aligns with existing laws, without introducing unrelated factors.
Key Provisions
- GAO Study Requirements: The Comptroller General (head of the GAO) must conduct a study on how federal regulatory agencies handle merger applications for insured depository institutions. The study will:
- Analyze measurable data, such as approval rates or timelines.
- Assess if commitments and conditions follow statutory rules (laws passed by Congress) or if they incorporate non-legal influences.
- Evaluate the pros and cons of various review methods that comply with the law.
- Examine how these reviews and approved mergers affect bank safety, overall financial system stability, market competition, and access to banking products and services.
- Report to Congress: The GAO must submit a detailed report with findings within one year of the bill's enactment.
- Definitions: Key terms are clarified, including:
- "Federal depository institution regulatory agency" (e.g., Federal Reserve, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, National Credit Union Administration).
- "Insured depository institution" (banks and credit unions protected by federal deposit insurance).
- "Insured depository institution merger application" (requests to acquire a bank's ownership, assets, or deposits under specific federal laws).
Significant Changes to Existing Law
This bill does not directly amend current banking merger laws but introduces a new mandate for a GAO study. It builds on existing statutes (e.g., the Federal Deposit Insurance Act and Bank Holding Company Act) by requiring oversight to verify compliance, potentially leading to future legislative or regulatory adjustments based on the study's recommendations. No immediate changes to merger approval processes are made.
Potential Impacts
- On Government Agencies: Regulatory agencies may face increased scrutiny and need to justify their practices, which could lead to more standardized procedures but also additional administrative burden during the study.
- On Citizens: Could indirectly improve access to affordable banking services by fostering fairer competition and ensuring mergers do not harm financial stability or consumer options. No direct effects on international relations are addressed.
- Broader Financial System: Findings might influence merger approvals, potentially reducing risks to economic stability while encouraging innovation in banking products.
Main Stakeholders Affected
- Federal Regulators: Board of Governors of the Federal Reserve System, Comptroller of the Currency, Federal Deposit Insurance Corporation, and National Credit Union Administration Board, who oversee merger reviews.
- Insured Depository Institutions: Banks and credit unions involved in mergers, as their approval processes could become more predictable or restrictive based on study outcomes.
- Congress: Receives the GAO report, enabling informed decisions on future banking policy.
- Consumers and the Public: Benefit from potential enhancements in competition and service availability, though not directly regulated by the bill.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces statutory adherence in regulatory actions, potentially curbing overreach by agencies and upholding congressional intent in banking laws. It promotes accountability without altering constitutional balances between branches of government.
- Constitutional: Aligns with Congress's oversight role over executive agencies (like regulators) under Article I, ensuring executive actions stay within legal bounds.
- Political: Could spark debates on regulatory independence versus congressional control, especially amid concerns over bank consolidation. The study may inform bipartisan efforts to balance innovation with consumer protection in the financial sector, without evident partisan bias in the bill's text.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Fitzgerald, Scott [R-WI-5]
Cosponsors (1)
Rep. Lawler, Michael [R-NY-17]
Recent Actions
- 2026-02-25: Placed on the Union Calendar, Calendar No. 460.
- 2026-02-25: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-535.
- 2026-02-25: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-535.
- 2025-12-17: Ordered to be Reported (Amended) by the Yeas and Nays: 52 - 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
- Merger Agreement Approvals Clarity and Predictability Act — issued 2025-12-10 — PDF (4 pages)
- Merger Agreement Approvals Clarity and Predictability Act — issued 2026-02-25 — PDF (6 pages)