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Editor’s Note: Claire Williams with American Banker broke the story on this introduction Washington, D.C. – Today, U.S. Congressman Andy Barr (KY-06) introduced a joint resolution of disapproval under the Congressional Review Act to nullify a final rule issued by the Office of the Comptroller of the Currency (OCC) related to the review of bank merger applications under the Bank Merger Act. Senator John Kennedy (R-LA) introduced companion legislation in the U.S. Senate. The OCC’s rule, finalized on September 25, 2024, imposes new regulatory hurdles and vague, subjective criteria that would severely restrict banks of all sizes—particularly community and regional banks—from pursuing mergers and strategic partnerships. Barr’s resolution would nullify the final rule and prohibit the OCC from issuing detrimental merger regulation in the future without congressional authorization. “Mergers increase competition and make our banking system more dynamic. By allowing banks to realize economies of scale and pass cost savings on to consumers, these acquisitions result in better rates, lower fees, and expanded access to credit—especially in underserved communities,” said Congressman Barr. “The Biden administration’s OCC injected politics into the merger process, discouraging responsible growth. This rule will lead to consolidation in the banking system, threatening the diversity that makes the US banking system the envy of the world. My resolution ensures that regulatory overreach does not threaten healthy mergers and acquisitions that strengthen our financial system.” Barr emphasized that responsible bank mergers are vital for financial innovation, improved efficiency, and consumer benefit. Blocking these transactions under arbitrary standards could unintentionally accelerate consolidation by limiting smaller institutions' ability to compete. “Big government shouldn’t stand in the way of healthy bank mergers that occur in the free market and serve consumers and job creators. 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,” said Senator John Kennedy. “The Biden Administration’s rule undermines healthy bank mergers and the free market, creating needless uncertainty for consumers and financial institutions. These transactions are a vital tool for stabilizing the banking industry and ensuring communities continue to have access to reliable financial services,” said Congressman Scott Fitzgerald. “A competitive banking system thrives when the approval process is efficient and grounded in economic merit—not delayed by layers of red tape from Washington. Congress must act to reverse this rule and restore certainty to the banking sector.” “The Biden administration’s bank merger rule is another example of Washington overreach that hurts our local banks and the folks who depend on them,” said Congressman Tim Moore. I’m proud to support Rep. Barr’s resolution to reverse this misguided policy so banks can grow, compete, and keep serving our communities. We need fewer bureaucratic roadblocks for the institutions that help drive opportunity in Western North Carolina and across the United States.” This is the latest step in Congressman Barr’s ongoing efforts to push back against excessive regulation and protect the strength and resilience of America’s banking system. |
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