WASHINGTON — Rep. Andy Barr, R-Ky., is introducing a resolution Thursday morning that would nullify the Office of the Comptroller of the Currency's updated rule on bank mergers.
The OCC under former acting Director Michael Hsu
The Congressional Review Act resolution introduced by Barr would unwind that rule, and prevent the OCC from pursuing a materially similar one in the future. Barr serves as the head of the subcommittee on financial institutions within the House Financial Services Committee.
He's introduced a number of bank-focused bills in the new Congress, including a
Barr's resolution follows a similar one offered by Sen. John Kennedy, R-La., in early February.
"Big government shouldn't stand in the way of healthy bank mergers that occur in the free market and serve consumers and job creators," Kennedy said in a statement. "In order to stabilize the banking industry and protect the Americans who depend on strong banks, Congress should quickly reverse the Biden administration's bureaucratic rule."
Sens. Thom Tillis, R-N.C., who leads the Senate Banking Committee's financial institutions subcommittee, and Bill Hagerty, R-Tenn., joined Kennedy in sponsoring the resolution.
The OCC's rule became effective on Jan. 1. The Biden administration had taken a skeptical stance on bank mergers, particularly for the largest banks. Biden issued an executive order in July 2021 that ordered federal banking agencies and the Justice Department to intensify scrutiny of bank mergers. The OCC was the only regulator to issue a rule on M&A, though the Federal Deposit Insurance Corp. issued a guidance to banks about how the agency would review bank mergers. Acting FDIC Chair Travis Hill already
Trump administration leadership at the OCC is likely to revisit the merger guidelines, regardless of whether or not Barr and Kennedy's CRA passes.
Acting Director Rodney Hood said that he plans to talk to the Justice Department to reduce merger standards, and suggested that the OCC would revisit a key measure of consolidation that regulators use to measure the competitive effects of mergers, known as the Herfindahl-Hirschman Index, specifically by adding credit union data.
Jonathan Gould, who awaits a final confirmation vote to lead the OCC from the full Senate, is also expected to take a lax approach toward bank merger guidelines.
Senate Banking Committee ranking member Elizabeth Warren, D-Mass., pointed to the OCC's record on uniformly approving bank mergers during Gould's tenure as the agency's chief counsel in a letter of questions sent to Gould ahead of his confirmation hearing.
"Over the last four decades, the OCC and other banking regulators have failed to rigorously review bank mergers to ensure unlawful transactions are not approved," Warren said. "This lax merger review has left the banking sector highly concentrated, which has inflicted serious harms on consumers and small businesses."
