Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Least Cost Exception 
Act’’. 
SEC. 2. LEAST COST RESOLUTION EXCEPTION TO AVOID 
FURTHER CONCENTRATION AMONG GLOBAL 
SYSTEMICALLY IMPORTANT BANKING ORGA-
NIZATIONS. 
(a) IN GENERAL.—Section 13(c)(4) of the Federal De-
posit Insurance Act (12 U.S.C. 1823(c)(4)) is amended— 
(1) in subparagraph (A)(ii), by inserting ‘‘except 
as provided in subparagraph (I),’’ before ‘‘the total 
amount’’; 
(2) in subparagraph (E)(i), by inserting ‘‘and 
except as provided in subparagraph (I),’’ after ‘‘ap-
propriate,’’; and 
(3) by adding at the end the following: 
‘‘(I) LEAST
COST
RESOLUTION
EXCEP-
TION.— 
‘‘(i) IN GENERAL.—With respect to an 
exercise of authority by the Corporation de-
scribed in subparagraph (A), the Corpora-
tion may, at the discretion of the Corpora-
tion, select an alternative method of exer-
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cising such authority that is not the least 
costly to the Deposit Insurance 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 Re-
serve System, after consultation with 
the Secretary of the Treasury, deter-
mine that the potential additional 
risks to the Deposit Insurance 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 orga-
nizations. 
‘‘(ii) MAXIMUM COST TO THE DEPOSIT 
INSURANCE FUND.—Not later than 1 year 
after the date of enactment of this subpara-
graph, the Corporation, by rule, shall estab-
lish criteria for determining on a case-by- 
case basis the maximum allowable cost 
against the net worth of the Deposit Insur-
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ance Fund that may be utilized to account 
for any determination under clause (i). 
‘‘(iii) REQUIREMENTS
DESCRIBED.— 
The requirements for the selected alternative 
described in clause (i) are as follows: 
‘‘(I) The selected alternative is 
least costly to the Deposit Insurance 
Fund of all alternatives that do not in-
volve a transaction with a global sys-
temically important banking organiza-
tion and that do not exceed the cost of 
liquidating the insured depository in-
stitution. 
‘‘(II) The difference between the 
cost of the selected alternative and the 
cost of a covered alternative is less 
than the maximum cost to the Deposit 
Insurance Fund specified pursuant to 
the rule adopted under clause (ii). 
‘‘(III) In the case of a selected al-
ternative that involves another person 
purchasing assets of the insured deposi-
tory institution or assuming deposit li-
abilities of the insured depository in-
stitution, such person agrees to pay an 
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assessment to the Corporation com-
prised 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 Corpora-
tion, by rule, shall establish, in-
cluding a realistic discount rate, 
the aggregate amount equal to the 
difference calculated in subclause 
(II), and any bid inconsistent 
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 alter-
native described in clause (i), the Corpora-
tion shall issue a report to the Committee 
on Financial Services of the House of Rep-
resentatives and the Committee on Banking, 
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Housing, and Urban Affairs of the Senate 
containing an analysis of the economic dif-
ference between the cost to the Deposit In-
surance 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 
subparagraph. 
‘‘(v) COST DETERMINATIONS.—All cost 
determinations required under this subpara-
graph shall be made in accordance with 
subparagraphs (B) and (C). 
‘‘(vi) DEFINITIONS.—In this subpara-
graph: 
‘‘(I) COVERED
ALTERNATIVE.— 
The term ‘covered alternative’ means a 
method of exercising authority de-
scribed in subparagraph (A) that is the 
least costly to the Deposit Insurance 
Fund of all such methods that involve 
a sale of all or substantially all assets 
of the insured depository institution to, 
and assumption of all or substantially 
all deposit liabilities of the insured de-
pository institution by, a global sys-
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