Federal Legislation
Congress Amends FDIC Bank Resolution Authority
February 02, 2026
Congress has passed H.R. 6547, the Least Cost Exception Act, which amends the Federal Deposit Insurance Act to grant the Federal Deposit Insurance Corporation (FDIC) discretion to select resolution methods for failing banks that may not be the least costly to the Deposit Insurance Fund. This legislative change allows the FDIC to prioritize limiting further concentration among global systemically important banking organizations (G-SIBs) over strict cost minimization, balancing systemic risk and competition concerns in bank resolutions.
- This amendment impacts procurement and contracting related to financial institution oversight and resolution services, potentially affecting vendors providing risk assessment, resolution planning, and financial consulting to the FDIC and related agencies.
- Procurement professionals should note the FDIC's expanded discretion may lead to new or modified contract requirements emphasizing systemic risk mitigation and competitive market considerations.
- Financial services contractors and consultants may find increased opportunities to support the FDIC and Treasury in implementing resolution strategies that align with the new statutory flexibility.
- Agencies involved include the FDIC, Department of the Treasury, and Federal Reserve, which may coordinate on procurement activities influenced by this legislative change.
The FDIC may select an alternative resolution method that is not the least costly to the Deposit Insurance Fund if the benefits of limiting further concentration among global systemically important banking organizations outweigh the additional risks.
— H.R. 6547 legislative text
Agencies
Federal Deposit Insurance Corporation, Board of Governors of the Federal Reserve System, Department of the Treasury, Committee on Financial Services, Committee on Banking, Housing, and Urban Affairs
Locations
Sources
- H. Rept. 119-474 - LEAST COST EXCEPTION ACT · congress · Feb 02
- H. Rept. 119-474 - LEAST COST EXCEPTION ACT · congress · Feb 02