Sponsors (10)
The bill establishes a clear 15% statutory cap that reduces legal uncertainty and compliance burden for banks and regulators but may raise concentration risk if it increases allowable holdings versus prior limits and contains a drafting ambiguity that needs prompt clarification.
National and state-chartered banks: a clear, uniform 15% statutory cap on specified corporate/public-welfare investments reduces legal uncertainty about permissible investments and makes capital-allocation decisions more predictable.
Banks and regulators (including state supervisors): an explicit numeric limit simplifies compliance interpretations and supervisory review, likely lowering ongoing compliance and oversight costs.
Depositors, taxpayers, and the financial system: if the new 15% cap is higher than prior limits, banks could concentrate more assets in corporate/public-welfare investments, increasing portfolio concentration risk and potential exposure for depositors and taxpayers.
State member banks and supervisors: an unclear (blank) edit to § 338a creates legal ambiguity that may cause short-term compliance and operational uncertainty until the drafting issue is clarified.
Based on analysis of 2 sections of legislative text.
Sets a statutory percentage term in national bank corporate powers to 15% and includes an unclear edit to state member bank public‑welfare investment language.
Revises federal banking statutes to set a numeric investment limit to 15 percent for a provision of national bank corporate powers and attempts an edit to the statute governing state member bank public-welfare investments. The change to the national bank provision replaces an existing numeric term with “15,” which raises or standardizes the percentage cap used in that sentence; the edit to the state member bank provision is presented as a blank insertion and cannot be verified from the provided text.
Introduced July 24, 2025 by Tim Scott · Last progress July 24, 2025