H.R. 6570: Merger Agreement Approvals Clarity and Predictability Act

This bill, known as the **Merger Agreement Approvals Clarity and Predictability Act**, aims to provide more clarity and predictability around the approval processes for mergers involving banks and credit unions. Here’s a breakdown of the main components:

Study of Mergers

The bill requires the Comptroller General of the United States to conduct a study focused on how federal regulatory agencies interact with merger applications from insured depository institutions (like banks and credit unions). The study will consider:

• The effectiveness of certain commitments and conditions imposed by regulatory agencies when approving these mergers.
• Whether these commitments and conditions comply with existing laws and regulations.
• The impact of factors outside of statutory requirements (extrastatutory considerations) on the use of commitments and conditions during the merger approval process.

Reporting Findings

After completing the study, the Comptroller General must submit a report to Congress within six months. This report will contain all findings and conclusions from the study, aiming to enhance understanding and regulation of the merger approval process.

Definitions

The bill includes specific definitions to clarify terms used within the legislation, such as:

• Application: Refers to requests for permission that are submitted to a federal regulatory agency regarding mergers.
• Federal depository institution regulatory agency: Includes key organizations such as the Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation (FDIC), and the National Credit Union Administration Board.
• Insured depository institution: Refers to banks or credit unions that have insurance for their deposits.
• Insured depository institution merger application: Specifically pertains to applications related to the acquisition of an insured bank or credit union, along with its assets or deposits, under certain federal laws.

Objective

The intention behind the bill is to ensure a more standardized evaluation of merger applications, which may lead to a more predictable approval process for financial institutions looking to merge. By conducting this study and later reporting the findings, the bill seeks to address potential inconsistencies and improve regulatory practices in accordance with legal requirements.

Relevant Companies

None found