Failing Bank Acquisition Fairness Act

House Bill

H.R. 6556

119th Congress

Failing Bank Acquisition Fairness Act

Ordered to be Reported (Amended) by the Yeas and Nays: 51 - 0.

Introduced:Dec 17, 2025

Primary Sponsor

Stephen Lynch

D - MA

Cosponsors

1

Quick Stats

Policy Area

Finance and Financial Sector

Summary

This legislation restricts large banks from acquiring failed banks when smaller, well-capitalized institutions could do so. It prevents concentration limit exceptions for failed bank acquisitions unless regulators prove, with clear and convincing evidence, that allowing a large bank to acquire would be necessary to prevent significant economic disruption, and no qualified smaller bidder exists.

Latest Action

Ordered to be Reported (Amended) by the Yeas and Nays: 51 - 0.

AI Summary

Plain-English explanation of this bill

This legislation restricts large banks from acquiring failed banks when smaller, well-capitalized institutions could do so. It prevents concentration limit exceptions for failed bank acquisitions unless regulators prove, with clear and convincing evidence, that allowing a large bank to acquire would be necessary to prevent significant economic disruption, and no qualified smaller bidder exists.

Last updated: 12/26/2025

Key Points

Main provisions of the bill

Targets "too big to fail" acquisitions when a bank failure occurs
Requires "clear and convincing evidence" that large bank acquisition is necessary
FDIC must confirm no qualified bid from non-concentrated bidders before allowing large bank purchase
Defines "qualified bid" as coming from well-capitalized, well-managed institutions
Applies to both FDIC-assisted transactions and failing bank mergers
Passed committee 51-0 indicating unanimous bipartisan support

How This Impacts Americans

Potential effects on citizens and communities

This bill affects large banks (particularly Global Systemically Important Banks), regional banks, and the FDIC. It creates opportunities for mid-size and regional banks to acquire failed institutions, potentially preventing further banking industry consolidation. Community banks benefit from reduced competition from mega-banks in acquisition scenarios. Taxpayers and depositors benefit from a more competitive banking landscape and potentially reduced systemic risk.

Policy Areas

Primary Policy Area

Finance and Financial Sector

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

6556, 119th Congress (2025). "Failing Bank Acquisition Fairness Act". Source: Voter's Right Platform. https://votersright.org/bills/119-hr-6556