WASHINGTON — Rep. Scott Fitzgerald (R-WI) has introduced H.R. 6570, the Merger Agreement Approvals Clarity and Predictability Act, a bill aimed at studying how federal regulators review merger applications by insured depository institutions, including banks and credit unions.
The measure was referred to the House Financial Services Committee.
According to Fitzgerald, the bill would require the U.S. Comptroller General to conduct a six-month study on the use of “commitments and conditions” by federal depository institution regulators — such as the Federal Reserve Board, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the National Credit Union Administration board — in connection with merger applications. The study is to assess whether these practices align with statutory requirements and the extent to which nonstatutory factors influence merger decisions.
Report Would be Required
Under the legislation’s terms, the Comptroller General must submit a report to Congress detailing its findings within six months after the bill becomes law. Proponents say the measure seeks to help standardize and bring greater predictability to how merger approvals are evaluated across federal agencies.
The bill outlines definitions for key terms, including “application,” “federal depository institution regulatory agency” and “insured depository institution merger application,” to clarify the scope of the study.
Support and Next Steps
At introduction, H.R. 6570 had no cosponsors and awaits action in the House Financial Services Committee. Supporters argue that clearer standards for merger reviews could benefit depository institutions navigating regulatory processes, though critics may question whether the study alone will lead to meaningful reform. C
The committee is expected to further examine the bill in hearings, including a scheduled markup session where the measure has been listed among other financial services proposals.
