[Report No. 119–132]
March 6, 2025
Mr. Barr (for himself and Mr. Fitzgerald) introduced the following bill; which was referred to the Committee on Financial Services
June 4, 2025
Additional sponsors: Mr. Meuser and Mr. Sessions
June 4, 2025
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed
Strike out all after the enacting clause and insert the part printed in italic
For text of introduced bill, see copy of bill as introduced on March 6, 2025
To specify when the record is complete on certain acquisition applications related to depository institution holding companies, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short title
This Act may be cited as the Bank Failure Prevention Act of 2025
.
Sec. 2. Complete record on an application
(a) Bank holding companies
Section 3(b)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(b)(1)) is amended—
(1)
by striking Upon receiving
and inserting the following:
(A) In general
Upon receiving;
(2)
by striking required
and inserting acquired
;
(3)
by striking In the event of the failure of the Board to act on any application for approval under this section within the ninety-one-day period which begins on the date of submission to the Board of the complete record on that application, the application shall be deemed to have been granted.
; and
(4)
by adding at the end the following:
(B) Complete record on an application
(i) Notice to applicant
Not later than 30 days after the date on which the Board receives an application for approval under this section, the Board shall transmit to the applicant a letter that either—
(I)
confirms the record on the application is complete; or
(II)
details all additional information that is required for the record on that application to be complete.
(ii) Extension of notice
Notwithstanding clause (i), the Board may, if an application is complex, extend the 30-day period described under clause (i) for an additional 30 days.
(iii) Receipt of response; deeming of complete record
Upon receipt of a response from an applicant to a notice requesting additional information described under clause (i)(II), the record on the application shall be deemed complete unless the Board—
(I)
determines that the applicant’s response was materially deficient; and
(II)
not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies.
(iv) Treatment of third-party information
In determining whether the record on an application is complete, the Board may take into account only information provided by the applicant, and may not base the determination of completeness on any information (including reports, views, or recommendations) provided by third parties.
(C) Deadline for determination
(i) In general
Notwithstanding subparagraphs (A) and (B), the Board shall grant or deny an application submitted under this section not later than 90 days after the date on which the application was initially submitted to the Board, regardless of whether the record on such initial application was complete.
(ii) Failure to make a determination
If the Board does not grant or deny an application within the time period described under clause (i), such application shall be deemed to have been granted.
(iii) Tolling of period
The Board may at any time extend the deadline described under clause (i) at the request of the applicant, but may not extend the deadline more than 30 days past the deadline described under clause (i).
(b) Savings and loan holding companies
Section 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1467a(e)) is amended—
(1)
in paragraph (2), by striking , and shall render a decision within 90 days after submission to the Board of the complete record on the application
;
(2)
by redesignating paragraph (7) as paragraph (9); and
(3)
by inserting after paragraph (6) the following:
(7) Complete record on an application
(A) Notice to applicant
Not later than 30 days after the date on which the Board receives an application for approval under this subsection, the Board shall transmit to the applicant a letter that either—
(i)
confirms the record on the application is complete; or
(ii)
details all additional information that is required for the record on that application to be complete.
(B) Extension of notice
Notwithstanding subparagraph (A), the Board may, if an application is complex, extend the 30-day period described under subparagraph (A) for an additional 30 days.
(C) Receipt of response; deeming of complete record
Upon receipt of a response from an applicant to a notice requesting additional information described under subparagraph (A)(ii), the record on the application shall be deemed complete unless the Board—
(i)
determines that the applicant’s response was materially deficient; and
(ii)
not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies.
(D) Treatment of third-party information
In determining whether the record on an application is complete, the Board may take into account only information provided by the applicant, and may not base the determination of completeness on any information (including reports, views, or recommendations) provided by third parties.
(8) Deadline for determination
(A) In general
Notwithstanding any other provision of this subsection, the Board shall grant or deny an application submitted under this subsection not later than 90 days after the date on which the application was initially submitted to the Board, regardless of whether the record on such initial application was complete.
(B) Failure to make a determination
If the Board does not grant or deny an application within the time period described under subparagraph (A), such application shall be deemed to have been granted.
(C) Tolling of period
The Board may at any time extend the deadline described under subparagraph (A) at the request of the applicant, but may not extend the deadline more than 30 days past the deadline described under subparagraph (A).
(c) Insured depository institutions
Section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) is amended by adding at the end the following:
(14) Complete record on an application
(A) Notice to applicant
Not later than 30 days after the date on which the responsible agency receives a merger application for approval under this subsection, the responsible agency shall transmit to the applicant a letter that either—
(i)
confirms the record on the application is complete; or
(ii)
details all additional information that is required for the record on that application to be complete.
(B) Extension of notice
Notwithstanding subparagraph (A), the responsible agency may, if an application is unusually complex, extend the 30-day period described under subparagraph (A) for an additional 30 days.
(C) Receipt of response; deeming of complete record
Upon receipt of a response from an applicant to a notice requesting additional information described under subparagraph (A)(ii), the record on the application shall be deemed complete unless the responsible agency—
(i)
determines that the applicant’s response was materially deficient; and
(ii)
not later than 30 days after the date on which the responsible agency received the response, provides the applicant a detailed notice describing the deficiencies.
(D) Treatment of third-party information
In determining whether the record on an application is complete, the responsible agency may take into account only information provided by the applicant, and may not base the determination of completeness on any information (including reports, views, or recommendations) provided by third parties.
(15) Deadline for determination
(A) In general
Notwithstanding any other provision of this subsection, the responsible agency shall grant or deny a merger application submitted under this subsection not later than 90 days after the date on which the application was initially submitted to the responsible agency, regardless of whether the record on such initial application was complete.
(B) Failure to make a determination
If the responsible agency does not grant or deny an application within the time period described under subparagraph (A), such application shall be deemed to have been granted.
(C) Tolling of period
The responsible agency may at any time extend the deadline described under subparagraph (A) at the request of the applicant, but may not extend the deadline more than 30 days past the deadline described under subparagraph (A).