119th Congress Finance and Financial Sector
H.R. 6547: Least Cost Exception Act
Reported
- Introduced (completed)
- Passed House (not reached)
- Passed Senate (not reached)
- To the President (not reached)
- Became law (not reached)
Summary
This bill allows the Federal Deposit Insurance Corporation (FDIC) to waive the least-cost resolution requirement for failed insured depository institutions and use alternative methods of resolution, particularly alternatives that do not involve global systemically important banks (G-SIBs).
Under current law, the FDIC must use the resolution method (such as a deposit payoff or the purchase and assumption of a bank’s assets and liabilities) that costs the FDIC's Deposit Insurance Fund the least to implement when an insured depository institution fails.
The bill provides an exception to this requirement if the following criteria are met:
Read the full summary
- the alternative method is the least costly of all alternatives that do not involve a G-SIB and that do not exceed the cost of liquidation;
- the difference in cost between the selected alternative and the cost of a resolution involving a purchase and assumption by a G-SIB is less than a maximum cost as established by rule;
- if the alternative involves a person purchasing assets or assuming liabilities, that person must pay an assessment to the FDIC; and
- it is determined that the risks to the fund are outweighed by the benefits of limiting the concentration of U.S. banking under G-SIBs.
FDIC must issue a report on any use of the exception established by this bill containing an analysis of the economic impact of cost differences between the selected alternative and the least-cost alternative.
Written by the Congressional Research Service, Library of Congress.
Roll calls
No roll call votes have been held on this bill.
Amendments
No amendments were offered to this bill.
Cosponsors
- Bill Foster D-IL
- John Rose R-TN
- Jared Moskowitz D-FL
- Michael Lawler R-NY
Who scored on this bill
- 1Mike Flood SponsorIntroduced, drew cross-party cosponsors, marked up, reported4 events+38
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Introductions and cosponsorships count toward weekly caps and show no points.
Other bills by Mike Flood
- H.R. 7128: TRIA Program Reauthorization Act of 2026
- H.R. 8671: Bank Fraud Technology Advancement Act of 2026
- H.R. 3339: Equal Opportunity for All Investors Act of 2025
- H.J.Res. 109: Disapproval of Securities and Exchange Commission rule: Staff Accounting Bulletin No. 121
- H.R. 2797: Equal Opportunity for All Investors Act of 2023
History
- Introduced in the House by Mike Flood.
Show the full action history (7 actions)
- Reported (Amended) by the Committee on Financial Services. H. Rept. 119-474.
- Placed on the Union Calendar, Calendar No. 405.
- Committee Consideration and Mark-up Session Held
- Ordered to be Reported (Amended) by the Yeas and Nays: 50 - 0.
- Committee Consideration and Mark-up Session Held
- Introduced in House
- Referred to the House Committee on Financial Services.