Senate Votes to Repeal OCC Rule Tightening Bank Merger Reviews

A Biden-era rule that tightened a key regulator’s review of bank mergers is on the path to elimination after the US Senate voted to repeal it.

The Senate on Wednesday voted 52-47 to pass the measure (S. J. Res. 13) from Sen. John Kennedy (R-La.) overturning an Office of the Comptroller of the Currency rule that brought heightened scrutiny to mergers resulting in a bank with $50 billion or more in assets.

A similar measure (H. J. Res. 92) introduced by Rep. Andy Barr (R-Ky.) is pending in the House.

President Donald Trump has promised to sign legislation reaching his desk to undo Biden-era regulations using the Congressional Review Act.

The OCC is responsible for regulating and supervising national banks, such as the depository units of JPMorgan Chase & Co. and Bank of America Corp.

Its merger rule, finalized in September, was part of a Biden administration push to tighten antitrust enforcement across the economy.

Along with bringing tougher exam standards to large bank deals, the rule also eliminated a decades-old policy that mandated automatic OCC approval of proposed mergers on the 15th day after the close of a public comment period if the agency failed to act.

The OCC and the Federal Reserve in April approved Capital One Financial Corp.'s proposed $35 billion purchase of Discover Financial Services.

The 1996 Congressional Review Act gives Congress a 60-day window to repeal federal regulations with a simple-majority vote in both chambers and the president’s signature. The clock resets in a new session of Congress for rules adopted toward the end of the previous congressional session.

Repealing the rule under the CRA would also prevent the OCC from issuing a “substantially” similar one unless Congress separately authorizes it, potentially hamstringing future bank merger regulations.

Congress has used the CRA to repeal several Biden-era banking regulations, including Consumer Financial Protection Bureau rules capping overdraft fees at $5 and subjecting digital payment providers such as Apple Inc. and Alphabet Inc.'s Google Pay service to direct supervision.