A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Office of the Comptroller of the Currency of the Department of the Treasury relating to the review of applications under the Bank Merger Act.

Summary

S.J.Res.13 is a joint resolution of the 119th Congress, one hundred nineteenth session, that disapproves a rule submitted by the Office of the Comptroller of the Currency (OCC) relating to 'Business Combinations Under the Bank Merger Act.' The rule, published at 89 Fed. Reg. 78207 on September 25, 2024, addresses the process and criteria for reviewing applications for bank mergers and acquisitions under the Bank Merger Act. The Bank Merger Act, enacted as part of the broader framework of federal banking regulation, requires prior approval from the appropriate federal banking agency (in this case, the OCC for national banks) before two or more banks can merge, consolidate, or acquire each other's assets. The OCC's rule sought to update and clarify the standards and procedures for such reviews, potentially altering how the agency evaluates competitive effects, financial stability, community impact, and other factors in merger proposals.

By invoking congressional disapproval under chapter 8 of title 5, United States Code (the Congressional Review Act, CRA), S.J.Res.13 aims to nullify the OCC's rule entirely. If passed by both the Senate and House of Representatives and signed by the President (or if Congress overrides a presidential veto), the rule would have no force or effect, meaning the OCC could not implement or enforce it. The CRA provides an expedited process for Congress to overturn recently finalized federal regulations, requiring only a simple majority in each chamber for passage (subject to potential filibuster in the Senate, though the CRA limits debate time). Once a rule is disapproved under the CRA, the agency is barred from issuing a substantially similar rule without future congressional authorization, unless Congress passes a new law specifically allowing it.

The specific OCC rule targeted by S.J.Res.13 likely aimed to modernize merger review guidelines, possibly incorporating considerations of technological change, fintech integration, or evolving market structures in the banking industry. Critics of the rule from the banking industry or certain political perspectives might argue it imposes unnecessary burdens, creates uncertainty, or overly restricts beneficial consolidation that could improve efficiency and service. Supporters of the rule, including consumer advocates and those concerned with financial stability, might argue it ensures thorough review of mergers that could reduce competition, lead to higher fees, worsen service in underserved areas, or increase systemic risk.

S.J.Res.13 does not propose a constitutional amendment; it is a standard joint resolution exercising congressional oversight authority under the CRA. Therefore, it follows the normal legislative process: passage by both chambers and presentation to the President for signature. If enacted, it would invalidate the OCC's merger rule, reverting to previous guidance or requiring the OCC to develop a new approach consistent with any remaining statutory directives. The resolution reflects broader debates about the appropriate level of regulatory scrutiny in bank consolidation, the balance between fostering innovation and maintaining competition, and the role of congressional oversight versus agency expertise in financial regulation.

Where Each Party Stands

History