Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Republicans seek to invalidate Bank Merger Act rule, overturn small-business data requirements, (Feb 7, 2025)

By Joe Cox, J.D.

Senate and House Republicans have introduced bills on both fronts, seeking to invalidate President Biden's former policies.

Senate and House Republicans have introduced a pair of new legislative actions, one designed to invalidate the OCC's 2024 Bank Merger Act rule, which placed additional hurdles of potential bank mergers, and the other seeking to overturn a portion of the Dodd-Frank Act that dealt with data collection and reporting on small business loans. Both actions aim to overturn policies of the Biden administration.

Bank Merger Act rule. In September 2024, the Office of Comptroller of the Currency approved a final rule amending the procedures for reviewing applications for bank mergers involving national banks and federal savings associations. The final rule removed provisions for expedited review and a streamlined business combination application (see Banking and Finance Law Daily, Sept. 17, 2024). Critics have charged that the rule made the merger process more onerous, in part because it shifted a burden from the OCC and examiners to establish that a merger would be harmful to the individual banks to show the benefit of potential mergers.

In a joint resolution, Senator John Kennedy (R-La.) provided for Congressional disapproval of the rule and that the rule be held without force or effect. In a statement accompanying the resolution, Kennedy said, "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."

Section 1071 repeal. Meanwhile, House Republicans are advancing a resolution from Congressman Roger Williams (R-Tex.) to repeal Section 1071 of the Dodd-Frank Act. That particular law required financial institutions to collect and report extensive data on small business lending. Senator Kennedy will introduce a Senate equivalent to Williams's resolution. A prior attempt to repeal Section 1071 was vetoed by President Biden in December 2023.

Critics of the Section have charged that the reporting requirements created increased compliance costs with a disproportionate burden on community banks and credit unions, and that the Section actually led to reduced credit access for small businesses.

"Small businesses are the backbone of the American economy, and it is crucial that they can access affordable credit to support and grow our communities,” said Congressman Williams in an accompanying statement. “My bill seeks to eliminate costly regulatory burdens on financial institutions, ensuring greater access to credit for small businesses."

The Independent Community Bankers of America voiced support for the bill, terming it "much-needed legislation to overturn intrusive and overly burdensome data collection and reporting requirements for small-business loans."

Companies: Independent Community Bankers of America

News: AcquisitionsMergers Antitrust