Enhancing Bank Resolution Participation Act
Summary
The "Enhancing Bank Resolution Participation Act" (H.R. 6555) mandates a joint study by the Comptroller of the Currency and the Federal Deposit Insurance Corporation (FDIC). This study will focus on the use of shelf charters and modified bidder qualification processes in bank resolutions. The goal is to assess their potential to expand participation, increase competition, protect the Deposit Insurance Fund, and strengthen financial stability.
Expected Effects
The Act aims to improve the resolution process for failed banks. It could lead to recommendations for legislative and regulatory changes. These changes could enhance the use of shelf charters and modified bidder qualification processes.
Potential Benefits
- Greater competition in the acquisition of failed bank assets.
- Increased diversity in market outcomes during bank resolutions.
- Potential protection of the Deposit Insurance Fund.
- Strengthened financial stability.
- Reduced need for emergency determinations by the Secretary of the Treasury.
Potential Disadvantages
- The study itself incurs costs for the Comptroller of the Currency and the FDIC.
- Potential delays in bank resolutions while the study is conducted and its recommendations are considered.
- No guarantee that the recommendations will be implemented or effective.
- Possible unintended consequences from changes to bidder qualification processes.
- The study's findings may not lead to significant improvements in bank resolution outcomes.
Constitutional Alignment
The Act appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to regulate commerce and establish laws related to banking and financial stability. The study mandated by the Act falls within the scope of congressional oversight and regulation of the financial system. The Act does not appear to infringe upon any individual liberties or rights protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).