Promoting the Health of the Banking Sector: Reforming Resolution and Broadening... (EventID=118576)

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Connect with the House Financial Services Committee » Get the latest news: https://democrats-financialservices.house.gov/ » Follow us on Facebook: https://www.facebook.com/USHouseFSC » Follow us on Twitter: https://x.com/USHouseFSC » Follow us on Instagram: https://www.instagram.com/ushousefsc/ » Follow us on Bluesky: https://bsky.app/profile/ushousefsc.bsky.social ___________________________________ » Subscribe: https://www.youtube.com/@USHouseFSC?sub_confirmation=1 ___________________________________ On Tuesday, September 9, 2025, at 2:00 p.m. (ET) Subcommittee on Financial Institutions Chair Congressman Barr and Subcommittee Ranking Member Congressman Foster will host a field hearing entitled, “Promoting the Health of the Banking Sector: Reforming Resolution and Broadening Funding Access for Long-Term Resilience." ___________________________________ Witnesses for this one-panel hearing will be: • Mr. Dory Wiley, President and CEO, Commerce Street Holdings • Mr. James B. Barresi, Partner, Squire Patton Boggs • Mr. Hugh Carney, Executive Vice President of Financial Institution Policy and Regulatory Affairs, American Bankers Association • Dr. Norbert Michel, Vice President and Director, Cato Institute Center for Monetary and Financial Alternatives • Mr. Robert James, President and CEO, Carver Financial Corporation, on behalf of National Bankers Association ___________________________________ This hearing will evaluate the Federal Deposit Insurance Corporation’s (FDIC) resolution process for failed banks, with a focus on how existing practices may be accelerating industry consolidation and diminishing competition. Additionally, the hearing will explore reforms regarding several regulatory topics that would support a healthy banking sector for institutions of all sizes—including ways to improve access to funding and capital; right-size the capital framework for community banks and mid-sized institutions; streamline capital-raising efforts; and have a more functional process for regulatory approvals of bank M&A to avoid creating a “barbell” banking system. Legislation Noticed 1. H.R. 3234, To amend the Federal Deposit Insurance Act to modify the amount of reciprocal deposits of an insured depository institution that are not considered to be funds obtained by or through a deposit broker, and for other purposes (Emmer): This bill amends the Federal Deposit Insurance Act to modify the amount of reciprocal deposits of an insured depository institution that are not considered to be brokered deposits on a graduated scale based on an institution’s total liabilities and asset size. This replaces the current hard cap of the lesser of $5 billion or 20 percent of an institution’s total liabilities. It also allows institutions that receive a ‘3’ CAMELS composite rating to use this framework. 2. H.R. ___, the Bank Competition Modernization Act (Fitzgerald): This discussion draft amends the Federal Deposit Insurance Act, the Bank Holding Company Act, and the Home Owners’ Loan Act to expand the competitive factors considered in reviewing bank mergers and acquisitions. It requires the Attorney General to account for products and services offered by not only other banks but also industrial loan companies, credit unions, Farm Credit institutions, and certain nonbank financial companies, while also providing that transactions resulting in institutions under $10 billion are presumed not to harm competition for the purpose of this analysis. 3. H.R. ___, the Merchant Banking Modernization Act (Williams): This discussion draft amends the Bank Holding Company Act to permit the holding of merchant banking investments for up to 15 years. 4. H.R. ___, the Community Bank Deposit Access Act of 2025: This discussion draft amends the Federal Deposit Insurance Act to establish that reciprocal deposits of an insured depository institution are not considered to be brokered deposits as long as the total amount does not exceed 20 percent of an institution’s total liabilities. This applies to institutions under $10 billion in assets. 5. H.R. ___, the Community Bank Capital Flexibility and Growth Act of 2025: This discussion draft amends the Economic Growth, Regulatory Relief, and Consumer Protection Act to lower the statutory range for the community bank leverage ratio from 8- 10 percent to 6-8 percent. The Federal banking regulators must propose a rule within 180 days and finalize within one year of enactment. 6. H.R. ___, the Least Cost Exception Act: This discussion draft amends the Federal Deposit Insurance Act to allow the FDIC to waive the least cost resolution if the agency determines the selected alternative is the least costly to the Deposit Insurance Fund (DIF) of all... ___________________________________ #fdic #financialservices #bank #treasury #GrammLeachBlileyAct #consumerdata ___________________________________ Hearing page: https://democrats-financialservices.house.gov/events/eventsingle.aspx?EventID=413726