Scott Lawrence Fitzgerald, U.S. Representative of Wisconsin's 5th congressional district | Official U.S. House headshot
Scott Lawrence Fitzgerald, U.S. Representative of Wisconsin's 5th congressional district | Official U.S. House headshot
Congressman Scott Fitzgerald’s Bank Competition Modernization Act has advanced through the House Financial Services Committee. The legislation seeks to update bank merger review standards by establishing a $10 billion asset threshold, adjusted for nominal GDP growth. Banks below this threshold would be granted a safe harbor from Department of Justice (DOJ) competition analysis, which supporters say will help small community banks grow and achieve operational efficiencies without delays caused by DOJ reviews.
“The current one-size-fits-all approach can slow consolidation that strengthens smaller banks and reduces the ability of these institutions to serve their communities effectively,” said Congressman Scott Fitzgerald. “Mergers among smaller banks can promote efficiency and allow institutions to achieve economies of scale. This bill enables cost savings that benefit consumers in their own community.”
Rebeca Romero Rainey, President and CEO of the Independent Community Bankers of America, commented on the bill: “H.R. 5262 would provide that a banking agency may, at its discretion, choose to not request a DOJ competitive analysis of a merger or acquisition application that would result in a bank with assets of less than $10 billion. This would be a welcome change, as a DOJ competitive analysis may create a prolonged delay in the approval of merger applications. Community bank mergers often result in more efficient institutions that are able to serve their communities more effectively.”
Currently, federal law requires all proposed bank mergers to undergo review by both banking regulators and the DOJ regardless of institution size. This process includes checks for financial stability risk and anti-money laundering compliance but can be time-consuming for smaller banks even when there is little effect on competition.
The legislation is supported by organizations such as the Independent Community Bankers of America (ICBA) and the Conference of State Bank Supervisors (CSBS).
Scott Fitzgerald has previously won elections against Mike Van Someren in 2022 with 64.4% of the vote and Tom Palzewicz in 2020 with 60.1%.
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