# Bank Failure Prevention Act of 2024: Plain Language Summary

This bill is about speeding up the approval process for bank mergers and acquisitions. When one bank wants to buy another bank or a holding company wants to acquire a bank, they have to get permission from the Federal Reserve (the Board). Right now, this process can drag on indefinitely because there's confusion about when the application is actually "complete" and ready for review. This bill sets clear deadlines and rules so companies know exactly where they stand and the process doesn't get stuck in limbo.

Here's what changes: The Federal Reserve now has 30 days to tell an applicant whether their application is complete or what additional information is needed. If the application is complex, they get an extra 30 days. Once a company submits the requested information, the application is automatically considered complete unless the Fed finds the response seriously deficient and says so within 30 days. Importantly, the Fed can only look at information the applicant provides—they can't hold up a decision based on complaints or reports from third parties like community groups or competitors. Most significantly, the Federal Reserve must make a final decision to approve or deny the application within 90 days of the initial submission, no matter what. If they don't decide within that timeframe, the application is automatically approved.

The bill applies this same process to both bank holding companies and savings and loan holding companies. The practical effect is that banks seeking to merge or be acquired will face much tighter timelines and won't get stuck waiting indefinitely for regulators to make decisions. Supporters argue this removes unnecessary delays that can kill deals and reduce competition. Critics might worry that strict deadlines could pressure regulators to approve deals without thorough review, though the bill does allow for extensions in complex cases.

Bank Failure Prevention Act of 2024

Barr, Andy

Bank Failure Prevention Act of 2024This bill revises the Federal Reserve Board’s review process of merger and acquisition applications for bank holding companies.Specifically, the board must notify the applicant within a certain time period regarding whether the application is complete or if additional information is required. The board must grant or deny such an application no later than 90 days after submission, regardless of whether the application was deemed complete. (Currently, the board must grant or deny an application no later than 90 days after receipt of a complete application.)In addition, the board is prohibited from basing such application determinations on information provided by third parties.