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Bank Failure Rules Change: Limiting Concentration of Global Banking Giants

This law amends how the Federal Deposit Insurance Corporation (FDIC) handles failed banks. Previously, the FDIC was strictly required to choose the least costly resolution method. Now, the FDIC can select a slightly more expensive alternative if the goal is to prevent the failed bank from being acquired by a Global Systemically Important Banking Organization. This aims to foster competition and reduce the risk associated with having banks that are 'too big to fail.'
Key points
The FDIC gains flexibility to spend more from the Deposit Insurance Fund to prevent major global banks (GSIBs) from acquiring failed institutions.
The primary goal is to limit the concentration of power in the banking sector, promoting competition and overall financial stability.
Any alternative resolution method must still meet strict cost limits and must be determined to provide greater benefits to the banking system stability than the added cost.
article Official text account_balance Process page
Introduced
Citizen Poll
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Additional Information
Print number: 119_HR_6547
Sponsor: Rep. Flood, Mike [R-NE-1]
Process start date: 2025-12-10
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Least Cost Exception Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_6547.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-12-10.

What are the main provisions?

Key points include:

  • The FDIC gains flexibility to spend more from the Deposit Insurance Fund to prevent major global banks (GSIBs) from acquiring failed institutions.
  • The primary goal is to limit the concentration of power in the banking sector, promoting competition and overall financial stability.
  • Any alternative resolution method must still meet strict cost limits and must be determined to provide greater benefits to the banking system stability than the added cost.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Flood, Mike [R-NE-1].

What is the latest detailed status?

The latest detailed status is: Ordered to be Reported (Amended) by the Yeas and Nays: 50 - 0.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Economy