Watch Kennedy’s comments here.

WASHINGTON – The Senate passed Sen. John Kennedy’s (R-La.) joint resolution of disapproval under Congressional Review Act (CRA) procedures to block an Office of Comptroller of the Currency (OCC) rule that delays the bank merger approval process by adding more red tape that could lead to consumer uncertainty.

The Biden administration’srule, which went into effect on Jan. 1, 2025, amended the Bank Merger Act of 1960 to make it harder for the OCC to approve healthy bank mergers quickly. Kennedy’s resolution would reverse the Biden administration’s misguided rule so that banks can stay in business and serve hardworking Americans. 

Kennedy spoke on the Senate floor ahead of the resolution’s passage. Key excerpts of the speech are below:

“Well, President Biden’s people at the OCC decided that [the rule] wasn’t broken; so they were going to fix it. Again, I don’t hate anybody, but you have got to call it like you see it. 

“I think the folks at President Biden’s OCC got up one day and thought there was an award for being stupid. They took this very simple and effective rule and procedure, and they turned it on its head. What they did was tier-one level moronic.”

. . . 

“I am going to ask the Senate to reject President Biden’s cumbersome rule. . . . That doesn’t mean that the OCC can’t revisit it at some point, but let me just be blunt: What President Biden’s OCC people did was put together a plan—a new rule—that looks like it was put together by a heroin addict with a socket wrench. I mean, it is the most convoluted thing you have ever seen.

“If we vote yes today—and I hope we do—then we will reject this rule and go back to doing it the old way.”

Background:

• Historically, the OCC assumed that a potential merger passed muster if the agency took no action on a merger application within 15 days. The burden of showing that a merger would harm business and consumers fell on the OCC and bank regulators. 

• The Biden administration’s rule shifted the burden of proof to individual banks, making it harder for banks—particularly community banks—to fulfill their obligations by making smart, strategic mergers.

• In Feb. 2025, Kennedy introduced his resolution to undo the Biden administration’s rule.

Sens. Bill Hagerty (R-Tenn.), Thom Tillis (R-N.C.), Tim Scott (R-S.C.), Steve Daines (R-Mont.) and Bernie Moreno (R-Ohio) cosponsored the resolution.

“The Biden OCC rule restricting bank mergers would lead to less competition in the industry and reduce access to credit and important services for Americans. I’m proud to join Senator Kennedy’s effort to overturn this rule and allow the free market to decide how financial institutions can best serve their customers,” said Scott, chairman of the Senate Banking Committee.

“The Biden bank merger rule was a solution in search of a problem and embodies the overzealous rulemaking that defined the last Administration. Lacking any basis in sound banking policy, this regulation added more red tape and disproportionally burdened and harmed the competitiveness of small and mid-size banks by deterring beneficial business combinations,” said Daines.

The resolution will now move to the House of Representatives for consideration. Rep. Andy Barr (R-Ky.), chairman of the Financial Institutions Subcommittee on the House Financial Services Committee, has introduced the companion resolution.

“With President Trump restoring regulatory sanity in Washington, I’m proud to partner with Senator Kennedy on this effort to overturn the Joe Biden’s OCC’s flawed bank merger rule. This resolution upholds the integrity of our financial system by ensuring that merger applications are evaluated based on clear, consistent standards—not arbitrary political agendas. Community and regional banks deserve a regulatory framework that supports growth, innovation, and expanded access to credit,” said Barr.

The American Bankers Association (ABA) supports Kennedy’s resolution.

“ABA has long believed that bank mergers should be subject to clear and transparent standards, and that regulators should act in a timely and fair manner when considering applications. Unfortunately, the final rule the OCC approved last September created unhelpful and biased new standards—including arbitrary asset thresholds—without providing the clarity and predictability that banks and their customers need. We applaud today’s Senate passage of the Congressional Review Act resolution nullifying the OCC’s merger rule and thank Sen. Kennedy for his leadership on this important issue. We now urge the House to quickly pass the companion resolution introduced by Rep. Andy Barr so regulators can correct this flawed rule and establish a new framework that reflects today's financial services landscape and promotes competition that strengthens our financial system,” said Rob Nichols, President and CEO of the ABA.

Text of the resolution is available here.