FDIC to Rollback 2024 Bank Merger Policy

The Federal Deposit Insurance Corporation (FDIC) has approved a proposal to rescind a 2024 policy that increased regulatory scrutiny on large bank mergers, initially enacted under the Biden administration. This move reinstates the pre-2024 merger standards temporarily while the FDIC reevaluates its policies. The prior policy had required more rigorous scrutiny, including public hearings for mergers resulting in firms with over $50 billion in assets, and had heightened analysis for those over $100 billion, focusing on financial stability and community impact. The rollback addresses concerns from banks about regulatory uncertainty and complexity introduced by the 2024 policy. This deregulatory effort is part of a broader trend under the Trump administration's influence, seeking to reduce what is perceived as regulatory overreach. The proposal is open for a 30-day public comment period before a final FDIC board vote.