H.R. 6547

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6547 Reported in House (RH)]

<DOC>

Union Calendar No. 405
119th CONGRESS
2d Session
H. R. 6547

[Report No. 119-474]

To amend the Federal Deposit Insurance Act to provide an exception to 
the least-cost resolution requirement, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

December 10, 2025

Mr. Flood introduced the following bill; which was referred to the 
Committee on Financial Services

February 2, 2026

Additional sponsors: Mr. Foster, Mr. Rose, Mr. Moskowitz, and Mr. 
Lawler

February 2, 2026

Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed 
in italic]
[For text of introduced bill, see copy of bill as introduced on 
December 10, 2025]

_______________________________________________________________________

A BILL

To amend the Federal Deposit Insurance Act to provide an exception to 
the least-cost resolution requirement, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Least Cost Exception Act''.

SEC. 2. LEAST COST RESOLUTION EXCEPTION TO AVOID FURTHER CONCENTRATION 
AMONG GLOBAL SYSTEMICALLY IMPORTANT BANKING 
ORGANIZATIONS.

(a) In General.--Section 13(c)(4) of the Federal Deposit Insurance 
Act (12 U.S.C. 1823(c)(4)) is amended--
(1) in subparagraph (A)(ii), by inserting ``except as 
provided in subparagraph (I),'' before ``the total amount'';
(2) in subparagraph (E)(i), by inserting ``and except as 
provided in subparagraph (I),'' after ``appropriate,''; and
(3) by adding at the end the following:
``(I) Least cost resolution exception.--
``(i) In general.--With respect to an 
exercise of authority by the Corporation 
described in subparagraph (A), the Corporation 
may, at the discretion of the Corporation, 
select an alternative method of exercising such 
authority that is not the least costly to the 
Deposit Insurance Fund, if--
``(I) the Corporation determines 
that the selected alternative complies 
with the requirements of clause (iii); 
and
``(II) the Corporation and the 
Board of Governors of the Federal 
Reserve System, after consultation with 
the Secretary of the Treasury, 
determine that the potential additional 
risks to the Deposit Insurance Fund of 
the selected alternative are outweighed 
by the reasonably expected benefits of 
limiting further concentration of the 
United States banking system in global 
systemically important banking 
organizations.
``(ii) Maximum cost to the deposit 
insurance fund.--Not later than 1 year after 
the date of enactment of this subparagraph, the 
Corporation, by rule, shall establish criteria 
for determining on a case-by-case basis the 
maximum allowable cost against the net worth of 
the Deposit Insurance Fund that may be utilized 
to account for any determination under clause 
(i).
``(iii) Requirements described.--The 
requirements for the selected alternative 
described in clause (i) are as follows:
``(I) The selected alternative is 
least costly to the Deposit Insurance 
Fund of all alternatives that do not 
involve a transaction with a global 
systemically important banking 
organization and that do not exceed the 
cost of liquidating the insured 
depository institution.
``(II) The difference between the 
cost of the selected alternative and 
the cost of a covered alternative is 
less than the maximum cost to the 
Deposit Insurance Fund specified 
pursuant to the rule adopted under 
clause (ii).
``(III) In the case of a selected 
alternative that involves another 
person purchasing assets of the insured 
depository institution or assuming 
deposit liabilities of the insured 
depository institution, such person 
agrees to pay an assessment to the 
Corporation comprised of payments--
``(aa) made over a period 
to be determined by the 
Corporation, but which may not 
be less than 5 years; and
``(bb) in an amount that 
takes into account, on a case-
by-case basis, criteria the 
Corporation, by rule, shall 
establish, including a 
realistic discount rate, the 
aggregate amount equal to the 
difference calculated in 
subclause (II), and any bid 
inconsistent with the purposes 
of this Act, with such rule to 
be established by the 
Corporation not later than 1 
year after the date of 
enactment of this subparagraph.
``(iv) Report to congress.--Not later than 
30 days after selecting an alternative 
described in clause (i), the Corporation shall 
issue a report to the Committee on Financial 
Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban 
Affairs of the Senate containing an analysis of 
the economic difference between the cost to the 
Deposit Insurance Fund of the selected 
alternative and the cost to the Deposit 
Insurance Fund of the least costly alternative 
that would have been selected absent the 
application of this subparagraph.
``(v) Cost determinations.--All cost 
determinations required under this subparagraph 
shall be made in accordance with subparagraphs 
(B) and (C).
``(vi) Definitions.--In this subparagraph:
``(I) Covered alternative.--The 
term `covered alternative' means a 
method of exercising authority 
described in subparagraph (A) that is 
the least costly to the Deposit 
Insurance Fund of all such methods that 
involve a sale of all or substantially 
all assets of the insured depository 
institution to, and assumption of all 
or substantially all deposit 
liabilities of the insured depository 
institution by, a global systemically 
important banking organization.
``(II) Global systemically 
important banking organization.--The 
term `global systemically important 
banking organization' means a global 
systemically important BHC (as such 
term is defined in section 217.402 of 
title 12, Code of Federal Regulations, 
or any successor thereto) and any 
affiliate thereof.''.
(b) Rule of Construction.--Section 13(c)(4)(H) of the Federal 
Deposit Insurance Act (12 U.S.C. 1823(c)(4)(H)) does not apply to the 
amendments made by subsection (a).
Union Calendar No. 405

119th CONGRESS

2d Session

H. R. 6547

[Report No. 119-474]

_______________________________________________________________________

A BILL

To amend the Federal Deposit Insurance Act to provide an exception to 
the least-cost resolution requirement, and for other purposes.

_______________________________________________________________________

February 2, 2026

Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed