142 
‘‘(i) IN GENERAL.—With respect to an ex-
ercise of authority by the Corporation described 
in subparagraph (A), the Corporation may, at 
the discretion of the Corporation, select an al-
ternative method of exercising such authority 
that is not the least costly to the Deposit Insur-
ance Fund, if— 
‘‘(I) the Corporation determines that 
the selected alternative complies with the 
requirements of clause (iii); and 
‘‘(II) the Corporation and the Board 
of Governors of the Federal Reserve Sys-
tem, after consultation with the Secretary 
of the Treasury, determine that the poten-
tial additional risks to the Deposit Insur-
ance Fund of the selected alternative are 
outweighed by the reasonably expected 
benefits of limiting further concentration 
of the United States banking system in 
global systemically important banking or-
ganizations. 
‘‘(ii) MAXIMUM COST TO THE DEPOSIT IN-
SURANCE FUND.—Not later than 1 year after 
the date of enactment of this subparagraph, the 
Corporation, by rule, shall establish criteria for 
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143 
determining on a case-by-case basis the max-
imum allowable cost against the net worth of 
the Deposit Insurance Fund that may be uti-
lized to account for any determination under 
clause (i). 
‘‘(iii) REQUIREMENTS
DESCRIBED.—The 
requirements for the selected alternative de-
scribed in clause (i) are as follows: 
‘‘(I) The selected alternative is least 
costly to the Deposit Insurance Fund of all 
alternatives that do not involve a trans-
action with a global systemically important 
banking organization and that do not ex-
ceed the cost of liquidating the insured de-
pository institution. 
‘‘(II) The difference between the cost 
of the selected alternative and the cost of 
a covered alternative is less than or equal 
to the maximum cost to the Deposit Insur-
ance Fund specified pursuant to the rule 
adopted under clause (ii). 
‘‘(III) In the case of a selected alter-
native that involves another person pur-
chasing assets of the insured depository in-
stitution or assuming deposit liabilities of 
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144 
the insured depository institution, such 
person agrees to pay an assessment to the 
Corporation comprised of payments— 
‘‘(aa) made over a period to be 
determined by the Corporation, but 
which may not be less than 5 years; 
and 
‘‘(bb) in an amount that takes 
into account, on a case-by-case basis, 
criteria the Corporation, by rule, shall 
establish, including a realistic dis-
count rate, the aggregate amount 
equal to the difference calculated in 
subclause (II), and any bid incon-
sistent with the purposes of this Act, 
with such rule to be established by the 
Corporation not later than 1 year 
after the date of enactment of this 
subparagraph. 
‘‘(iv) REPORT
TO
CONGRESS.—Not later 
than 30 days after selecting an alternative de-
scribed in clause (i), the Corporation shall issue 
a report to the Committee on Financial Services 
of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs 
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145 
of the Senate containing an analysis of the eco-
nomic difference between the cost to the De-
posit Insurance Fund of the selected alternative 
and the cost to the Deposit Insurance Fund of 
the least costly alternative that would have been 
selected absent the application of this subpara-
graph. 
‘‘(v) COST DETERMINATIONS.—All cost de-
terminations required under this subparagraph 
shall be made in accordance with subpara-
graphs (B) and (C). 
‘‘(vi) 
DEFINITIONS.—In 
this 
subpara-
graph: 
‘‘(I) COVERED
ALTERNATIVE.—The 
term ‘covered alternative’ means a method 
of exercising authority described in sub-
paragraph (A) that is the least costly to 
the Deposit Insurance Fund of all such 
methods that involve a sale of all or sub-
stantially all assets of the insured deposi-
tory institution to, and assumption of all 
or substantially all deposit liabilities of the 
insured depository institution by, a global 
systemically important banking organiza-
tion. 
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146 
‘‘(II) GLOBAL SYSTEMICALLY IMPOR-
TANT BANKING ORGANIZATION.—The term 
‘global systemically important banking or-
ganization’ means a global systemically im-
portant BHC (as such term is defined in 
section 217.402 of title 12, Code of Fed-
eral Regulations, or any successor thereto) 
and any affiliate thereof.’’. 
(b) RULE OF CONSTRUCTION.—Section 13(c)(4)(H) 
of the Federal Deposit Insurance Act (12 U.S.C. 
1823(c)(4)(H)) does not apply to the amendments made 
by subsection (a). 
SEC. 702. ENHANCING BANK RESOLUTION PARTICIPATION. 
(a) STUDY.—The Comptroller of the Currency, the 
Federal Deposit Insurance Corporation, and the Board of 
the Governors of the Federal Reserve System shall, jointly, 
carry out a study of— 
(1) the use by the Comptroller of the Currency 
of shelf charters, including all conditional or prelimi-
nary shelf charter approvals granted between Janu-
ary 1, 2008, and the date of enactment of this Act; 
(2) the use by the Federal Deposit Insurance 
Corporation of the modified bidder qualification 
process; 
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147 
(3) the application of the Bank Holding Com-
pany Act of 1956 (12 U.S.C. 1841 et seq.) and sec-
tion 10 of the Home Owners’ Loan Act (12 U.S.C. 
1467a) to shelf charter proposals; 
(4) whether shelf charters and modified bidder 
qualification processes were considered or used in 
connection with the receivership of any insured de-
pository institution for which the Federal Deposit 
Insurance Corporation was appointed receiver in 
2023; 
(5) with respect to such receiverships, the ex-
tent to which greater use of shelf charters and modi-
fied bidder qualification processes could have— 
(A) expanded the pool of participants in 
the acquisition of the assets or liabilities of such 
failed insured depository institutions; 
(B) resulted in greater competition and di-
versity in market outcomes; 
(C) protected the Deposit Insurance Fund; 
or 
(D) strengthened financial stability and re-
duced the need for any emergency determina-
tion by the Secretary of the Treasury under 
section 13(c)(4)(G) of the Federal Deposit In-
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148 
surance Act (12 U.S.C. 1823(c)(4)(G)) with re-
spect to any such receivership; 
(6) the impact of the use of shelf charters and 
modified bidder qualification processes since Janu-
ary 1, 2008, including on financial stability, the 
safety and soundness of affected insured depository 
institutions, and the availability of financial products 
and services provided to consumers by such institu-
tions; and 
(7) any benefits and risks of private equity 
ownership of banks through the use of shelf charters 
and modified bidder qualification processes. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Comptroller of the Currency, 
the Federal Deposit Insurance Corporation, and the 
Board of the Governors of the Federal Reserve System 
shall, jointly, submit a report to the Committee on Finan-
cial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of 
the Senate containing— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) an identification of statutory or regulatory 
barriers to the use and effectiveness of shelf charters 
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149 
and modified bidder qualification processes in the 
resolution of failed insured depository institutions, 
including recommendations for legislative and regu-
latory changes. 
(c) DEFINITIONS.—In this section: 
(1) INSURED DEPOSITORY INSTITUTION.—The 
term ‘‘insured depository institution’’ has the mean-
ing given the term in section 3 of the Federal De-
posit Insurance Act (12 U.S.C. 1813). 
(2) MODIFIED BIDDER QUALIFICATION PROC-
ESS.—The term ‘‘modified bidder qualification proc-
ess’’ has the meaning given such term in the press 
release of the Federal Deposit Insurance Corpora-
tion titled ‘‘FDIC Expands Bidder List for Troubled 
Institutions Plan Allows Those Without a Bank 
Charter to Participate in the Process’’ published No-
vember 26, 2008. 
(3) SHELF CHARTER.—The term ‘‘shelf char-
ter’’ has the meaning given such term in the report 
issued by the Comptroller of the Currency titled 
‘‘Activities Permissible for National Banks and Fed-
eral Savings Associations, Cumulative’’ published 
October 2017. 
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150 
TITLE VIII—FACILITATING INNO-
VATION AND BANK PARTNER-
SHIPS 
SEC. 801. MERCHANT BANKING MODERNIZATION. 
Section 4(k)(7)(A) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1843(k)(7)(A)) is amended by in-
serting ‘‘Under such regulations, the period of time gen-
erally permitted for holding merchant banking invest-
ments shall not be less than 15 years. For any merchant 
banking investment held on the date of enactment of the 
Merchant Banking Modernization Act, the holding period 
of time permitted shall not be less than 15 years from 
the initial date of the investment.’’ after the period at the 
end. 
SEC. 802. BANK-FINTECH PARTNERSHIP ENHANCEMENT. 
(a) STUDY ON BANK-FINTECH PARTNERSHIPS.— 
(1) STUDY.—The Board of Governors of the 
Federal Reserve System, the Comptroller of the Cur-
rency, and the Federal Deposit Insurance Corpora-
tion shall carry out a study of— 
(A) the impact of partnerships between 
banking organizations, on the one hand, and fi-
nancial technology companies, on the other 
hand, on the banking sector, competition, inno-
vation, consumer protection, and the availability 
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151 
of financial products and services, including the 
extent to which these partnerships support the 
formation of new banking organizations, reduce 
time to market for products and services, lower 
compliance burdens, boost customer acquisition, 
improve technological capabilities, and provide 
access to more diverse funding sources; and 
(B) what changes to Federal laws gov-
erning banking organizations, or to rules or 
guidance adopted by the Board of Governors of 
the Federal Reserve System, the Comptroller of 
the Currency, or the Federal Deposit Insurance 
Corporation, may help promote effective part-
nerships between banking organizations, on the 
one hand, and financial technology companies, 
on the other hand. 
(2) REPORT.—Not later than 1 year after the 
date of enactment of this Act, the Board of Gov-
ernors of the Federal Reserve System, the Comp-
troller of the Currency, and the Federal Deposit In-
surance Corporation shall issue a report to Congress 
containing all findings and determinations made in 
carrying out the study required under paragraph 
(1). 
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(3) BANKING ORGANIZATION DEFINED.—In this 
subsection, the term ‘‘banking organization’’ means 
a depository institution holding company or an in-
sured depository institution, as such terms are de-
fined, respectively, under section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813). 
(b) STUDY ON CREDIT UNION-FINTECH PARTNER-
SHIPS.— 
(1) STUDY.—The National Credit Union Ad-
ministration shall carry out a study of— 
(A) the impact of partnerships between 
credit unions, on the one hand, and financial 
technology companies, on the other hand, on 
the credit union sector, competition, innovation, 
consumer protection, and the availability of fi-
nancial products and services, including the ex-
tent to which these partnerships support the 
formation of new credit unions, reduce time to 
market for products and services, lower compli-
ance burdens, boost customer acquisition, im-
prove technological capabilities, and provide ac-
cess to more diverse funding sources; and 
(B) what changes to Federal laws gov-
erning credit unions, or to rules or guidance 
adopted by the National Credit Union Adminis-
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