Sponsors (3)
The bill requires a focused study to inform policy on bank acquisitions and private equity ownership—potentially protecting depositors and improving regulatory clarity—but it creates agency costs and could either raise taxpayer risk if it prompts deregulation or raise transaction costs and reduce competition if it prompts tighter rules.
Taxpayers and bank customers could face lower losses from failed banks if the mandated study leads to policies that increase acquirer participation and preserve the Deposit Insurance Fund.
Banks, regulators, and policymakers will receive clearer findings and targeted recommendations on shelf charters and modified bidder processes within one year, enabling faster, more focused policy fixes.
Depositors and taxpayers will get better information about the risks and benefits of private equity ownership of banks, informing future rules to protect safety and soundness.
Taxpayers could face greater risk to the Deposit Insurance Fund if the study's recommendations lead to deregulatory changes that weaken existing protections.
Potential acquirers of failed banks — including private equity firms and other buyers — could face stricter rules that raise transaction costs and reduce competition to acquire failing banks.
The OCC, FDIC, and Federal Reserve will incur additional regulatory workload and budgetary costs to conduct the study, diverting staff time and resources.
Based on analysis of 2 sections of legislative text.
Requires OCC, FDIC, and Federal Reserve to jointly study use/effects of OCC "shelf charters" and FDIC "modified bidder qualification process" (2008–present) and report recommendations within one year.
Introduced December 10, 2025 by Bill Huizenga · Last progress December 10, 2025
Requires the OCC, the FDIC, and the Federal Reserve to work together to study how OCC “shelf charters” and the FDIC “modified bidder qualification process” have been used since January 1, 2008 and what effects those tools have had on bank acquisitions, competition, Deposit Insurance Fund protection, financial stability, and consumer access. The agencies must report findings and recommend any statutory or regulatory changes to the House Financial Services Committee and the Senate Committee on Banking, Housing, and Urban Affairs within one year of enactment.