Limits the use of concentration limit exceptions in bank mergers involving failed or failing banks to cases where the regulator finds, based on clear and convincing evidence, that the merger is needed to prevent significant economic disruption or significant adverse effects on financial stability.

• Allows a merger involving a bank in default or in danger of default to exceed concentration limits only if the regulator finds, based on clear and convincing evidence, that the deal is necessary to prevent significant economic disruption or harm to financial stability, and the FDIC has received no qualified bid from an institution not subject to the limit.
• Defines a qualified bid as one from a company that is well capitalized and well managed and that stays well capitalized after the transaction.
• Requires the waiving agency and the FDIC to report to the House Financial Services and Senate Banking committees within 30 days of any waiver, explaining the justification and alternatives considered, and to publish the report with confidential information redacted.
• Bars bids that would violate these concentration limits from being treated as a least-cost option for FDIC resolutions, and reduces the discretionary surplus fund amount in the Federal Reserve Act by $2,000,000, effective September 1, 2036.

• Financial Services Committee (House)
• Banking, Housing, and Urban Affairs Committee (Senate)

Finance and Financial Sector