Merger Agreement Approvals Clarity and Predictability Act (HR 6570)

Summary

The Merger Agreement Approvals Clarity and Predictability Act requires the Comptroller General of the United States to conduct a comprehensive study on the use of commitments, conditions, and other merger review procedures by federal depository institution regulatory agencies when evaluating insured depository institution merger applications.

Key Provisions:

1. The study will:

   • Evaluate relevant quantitative metrics
   • Review the alignment of commitment and condition use with statutory requirements
   • Consider the benefits and risks of different merger review approaches
   • Assess the impact of merger review procedures and approved mergers on safety, soundness, financial stability, competition, and product/service availability

2. The Comptroller General must submit a report to Congress within 1 year detailing the findings and determinations from the study.

Potential Impact:

• Provide greater transparency and clarity around how federal regulators approach the merger review process for insured depository institutions.
• Identify whether the use of commitments and conditions is aligned with statutory intent or influenced by extraneous factors.
• Inform potential legislative or regulatory changes to improve the merger review process and its outcomes for the banking industry and consumers.

Overall, this bill aims to enhance the accountability, predictability, and effectiveness of the merger approval process for insured depository institutions through an independent, comprehensive government study.