FDIC Proposes Reversal of Biden-Era Bank Merger Oversight

The agency plans to reinstate pre-2024 merger guidelines while reevaluating its review process under the Trump administration.

The FDIC board voted to roll back stricter bank merger policies implemented in 2024 during the Biden administration.
The proposal will temporarily reinstate the 2008 merger standards as the agency conducts a broader review of its merger regulations.
The 2024 policy subjected larger bank mergers to heightened scrutiny, including public hearings and financial stability assessments for firms exceeding $50 billion in assets.
Critics of the 2024 policy argued it added unnecessary complexity and regulatory uncertainty, while proponents emphasized its focus on financial stability and community needs.
The rollback aligns with the Trump administration's pro-business stance, aiming to simplify the merger approval process and reduce regulatory burdens.