Bills Sec. 8 — Competitive effects

Section 18(c) of the Federal Deposit Insurance Act ( 12 U.S.C. 1828(c) ), as amended by section 7, is further amended by adding at the end the following new paragraph: In every case, the responsible agency shall consider the competitive effects of the proposed transaction on the market for— the cluster of commercial banking products and services, as described in United States v. Philadelphia National Bank, 374 U.S. 321 (1963); commercial deposits; loans to small businesses, using data reported under the Community Reinvestment Act of 1977 for loans to small businesses with less than $1,000,000 in gross annual revenue, and any other data the responsible agency deems appropriate to collect for this purpose; home mortgage loans, using data reported under the Home Mortgage Disclosure Act of 1975 for first-lien mortgage loans for single family homes, and any other data the responsible agency deems appropriate to collect for this purpose; and any other financial product that comprises a substantial portion of the activities of each bank or savings association involved in the proposed merger transaction, as determined by the responsible agency.

The responsible agency shall consider the competitive effects of the proposed transaction on the product markets identified in subparagraph

(A)with respect to each of the following geographic markets as defined by the United States Census Bureau: Each State in which the resulting company would operate. Each core-based statistical area in which the resulting company would operate. Each county in which the resulting company would operate. Any other geographic area the responsible agency deems appropriate. When evaluating the competitive effects of the proposed transaction, the responsible agency shall apply higher scrutiny to any markets in which the transaction would result in a Herfindahl-Hirschman Index over 1800 and an increase of more than 200. Nothing in clause

(i)may be construed as limiting the authority of the responsible agency to apply higher scrutiny to any markets in which the transaction would result in an Herfindahl-Hirschman Index under 1800 or an increase of less than 200. When evaluating the competitive effects of the proposed transaction, the responsible agency shall consider the extent to which— the resulting institution could receive a too big to fail subsidy; the proposed transaction could create or intensify conflicts of interest; the proposed transaction could diminish product quality, including consumer privacy and access to branch offices; the proposed transaction could lead to the exploitation of consumers’ data; the proposed transaction could impair the resilience of the United States or global financial systems; common ownership of firms in the relevant markets could impair competition; the proposed transaction could impact wages and working standards in the relevant markets; the proposed transaction could create or amplify existing climate and environmental risks; and any other factors that the responsible agency deems appropriate could impair competition. . Section 3(c) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1842(c) ), as amended by section 7, is further amended by adding at the end the following new paragraph: In every case, the Board shall consider the competitive effects of the proposed transaction on the market for— the cluster of commercial banking products and services, as described in United States v. Philadelphia National Bank, 374 U.S. 321 (1963); commercial deposits; loans to small businesses, using data reported under the Community Reinvestment Act of 1977 for loans to small businesses with less than $1,000,000 in gross annual revenue, and any other data the Board deems appropriate to collect for this purpose; home mortgage loans, using data reported under the Home Mortgage Disclosure Act of 1975 for first-lien mortgage loans for single family homes, and any other data the Board deems appropriate to collect for this purpose; and any other financial product that comprises a substantial portion of the activities of each bank or savings association involved in the proposed merger transaction, as determined by the Board. The Board shall consider the competitive effects of the proposed transaction on the product markets identified in subparagraph

(A)with respect to each of the following geographic markets: Each State in which the resulting company would operate. Each core-based statistical area in which the resulting company would operate. Each county in which the resulting company would operate. Any other geographic area the Board deems appropriate. When evaluating the competitive effects of the proposed transaction, the responsible agency shall apply higher scrutiny to any markets in which the transaction would result in a Herfindahl-Hirschman Index over 1800 and an increase of more than 200. Nothing in clause

(i)may be construed as limiting the authority of the responsible agency to apply higher scrutiny to any markets in which the transaction would result in an Herfindahl-Hirschman Index under 1800 or an increase of less than 200. When evaluating the competitive effects of the proposed transaction, the responsible agency shall consider the extent to which— the resulting institution could receive a too big to fail subsidy; the proposed transaction could create or intensify conflicts of interest; the proposed transaction could diminish product quality, including consumer privacy and access to branch offices; the proposed transaction could lead to the exploitation of consumers’ data; the proposed transaction could impair the resilience of the United States or global financial systems; common ownership of firms in the relevant markets could impair competition; the proposed transaction could impact wages and working standards in the relevant markets; the proposed transaction could create or amplify existing climate and environmental risks; and any other factors that the responsible agency deems appropriate could impair competition. . Section 4(j) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1843(j) ) as amended by section 7, is further amended is amended by adding at the end the following new paragraph: In every case, the Board shall consider the competitive effects of the proposed transaction on the market for— commercial deposits; loans to small businesses, using data reported under the Community Reinvestment Act of 1977 for loans to small businesses with less than $1,000,000 in gross annual revenue, and any other data the Board deems appropriate to collect for this purpose; home mortgage loans, using data reported under the Home Mortgage Disclosure Act of 1975 for first-lien mortgage loans for single family homes, and any other data the Board deems appropriate to collect for this purpose; and any other financial product that comprises a substantial portion of the activities of each bank or savings association involved in the proposed merger transaction, as determined by the Board. The Board shall consider the competitive effects of the proposed transaction on the product markets identified in subparagraph

(A)with respect to each of the following geographic markets: Each State in which the resulting company would operate. Each core-based statistical area in which the resulting company would operate. Each county in which the resulting company would operate. Any other geographic area the Board deems appropriate. When evaluating the competitive effects of the proposed transaction, the responsible agency shall apply higher scrutiny to any markets in which the transaction would result in a Herfindahl-Hirschman Index over 1800 and an increase of more than 200. Nothing in clause

(i)may be construed as limiting the authority of the responsible agency to apply higher scrutiny to any markets in which the transaction would result in an Herfindahl-Hirschman Index under 1800 or an increase of less than 200. When evaluating the competitive effects of the proposed transaction, the responsible agency shall consider the extent to which— the resulting institution could receive a too big to fail subsidy; the proposed transaction could create or intensify conflicts of interest; the proposed transaction could diminish product quality, including consumer privacy and access to branch offices; the proposed transaction could lead to the exploitation of consumers’ data; the proposed transaction could impair the resilience of the United States or global financial systems; common ownership of firms in the relevant markets could impair competition; the proposed transaction could impact wages and working standards in the relevant markets; the proposed transaction could create or amplify existing climate and environmental risks; and any other factors that the responsible agency deems appropriate could impair competition. .

Sec. 8. Competitive effects