H.R. 1900: Bank Failure Prevention Act of 2025

This bill is called the Bank Failure Prevention Act of 2025. Its main purpose is to change the rules for the approval of applications related to bank holding companies and savings and loan holding companies. Here are the key provisions of the bill:

Changes to the Approval Process

The bill modifies how the Board (the governing body that oversees bank holding company applications) manages the applications it receives:

• Notification Requirement: The Board must notify applicants within 30 days whether their application is complete or if more information is needed. If the application is complicated, this notice period may be extended by an additional 30 days.
• Deeming Complete Applications: If the Board requests additional information and the applicant responds, the application will be considered complete unless the Board finds serious deficiencies and communicates these to the applicant within 30 days.
• Limitations on Information Sources: The Board can only use information provided directly by the applicant to decide if the record is complete. They cannot rely on information from third parties, such as reports or recommendations.

Deadline for Decisions

Another important aspect of the bill is the deadline set for the Board to make its decision:

• The Board must either grant or deny the application within 90 days of the initial submission date, regardless of whether the application was originally complete.
• If the Board fails to make a decision within this timeframe, the application is automatically considered approved.

Applicability to Different Types of Institutions

The bill applies to two main types of institution holding companies:

• Bank Holding Companies: These are companies that own or control one or more banks.
• Savings and Loan Holding Companies: These are companies that hold savings and loan associations and must abide by similar rules regarding their applications.

Conclusion of Provisions

The overall aim of this bill is to streamline the application process for bank holding companies and savings and loan holding companies, making it more efficient while providing clear timelines for responses and decisions.

Relevant Companies

• JPM - JPMorgan Chase & Co.: As a major bank holding company, changes in the approval process for applications could impact its ability to quickly expand or structure acquisitions.
• BAC - Bank of America Corp.: Similar to JPMorgan, any modifications to its application processes for new bank holdings could influence its business strategies and growth potential.
• WFC - Wells Fargo & Company: This company could also be directly affected by the proposed changes in application requirements for bank holding companies.