Congress Vetoes New Bank Merger Rule: OCC’s Review Standards Are Officially Off the Table

This Joint Resolution is Congress using its biggest procedural hammer—the Congressional Review Act (CRA)—to swat down a specific new regulation issued by the Office of the Comptroller of the Currency (OCC). Essentially, the OCC, which is the federal agency that regulates national banks, recently finalized a rule about how they review applications under the Bank Merger Act. This resolution says, "Nope, we don't like that rule," and ensures that the OCC’s specific regulation (published in the Federal Register at 89 Fed. Reg. 78207) will have zero legal effect. This is a direct, procedural override, wiping the rule off the books as if it never happened.

The Administrative Reset Button

Think of the OCC’s rule as a new set of instructions for bank mergers—maybe changing the criteria for approval, the speed of review, or the level of public input. When Congress passes this resolution, it’s hitting the administrative reset button. For financial institutions planning a merger, this means they won’t be dealing with the OCC’s new rules; they’ll revert to the previous framework for how these applications are reviewed. This matters because the rules of the road for mergers dictate everything from competition in local markets to how quickly a deal can close. If you’re a small business owner relying on a community bank, the speed and standards of mergers can directly affect your access to credit and the fees you pay.

Why This Matters for the Rest of Us

While this seems like inside baseball for regulators and bankers, the standards for bank mergers affect the entire financial ecosystem. When two banks merge, it can change the competitive landscape. For instance, if the OCC’s now-nullified rule was designed to make mergers easier, its rejection means the process remains more stringent, potentially preventing some larger banks from gobbling up smaller ones. If you live in a rural area, fewer mergers often mean more local banks competing for your business, which can translate into better savings rates or lower loan costs. The congressional action here is a strong signal that Congress wants to retain the existing, likely more cautious, approach to approving these high-stakes deals.

The Check on Regulatory Power

This resolution is a prime example of Congress exercising its oversight power over the executive branch and its agencies. The CRA allows Congress to review and disapprove new federal regulations within a certain timeframe. By using it here, Congress is asserting that the OCC overstepped or simply got the policy wrong regarding bank merger review standards. The immediate practical challenge is for the OCC itself: they lose the ability to implement their preferred new standards and are now blocked from issuing any substantially similar rule in the future without specific legislative authorization. This keeps the existing merger review framework firmly in place, ensuring stability—or perhaps stagnation—depending on your perspective on the current rules.