Officials' bank ties would block some federal banking approvals

Federal banking regulators would deny applications for a bank charter, master account, deposit insurance, or another federal banking license. Covered people include the President, Vice President, members of Congress, Senate-confirmed executive appointees, certain special government employees connected to the President's office, and the President's or Vice President's spouse or child. The rule applies if the person owns, controls, or can vote more than 10% of any class of the bank's voting shares, helps start or leads the bank, or otherwise controls it. It also covers ties held indirectly or through or with others.

Federal banking regulators would end the affected banks' charters, licenses, master accounts, and deposit insurance. This covers banks whose application for a federal charter, master account, deposit insurance, or other federal banking license was approved after January 20, 2025. Covered people include specified federal officials and the President's or Vice President's spouse or child. When the application was approved, a covered person must have owned, controlled, or been able to vote more than 10% of a class of the bank's voting shares, helped start or led the bank, or otherwise controlled it. Indirect ties and actions taken through or with others count. Regulators would have to act no later than 60 days after enactment.

The President, Vice President, and either official's spouse or child could not hold a barred bank stake or voting power, serve as a senior executive, or otherwise control a bank. The rule covers the President, Vice President, and either official's spouse or child. A bank includes a deposit-taking institution or a company that controls one. The limit covers owning, controlling, or being able to vote more than 10% of any class of a bank's voting shares. It also covers indirect action and action taken through or with others.

Federal banking regulators would immediately end the affected bank's charter, license, master account, or deposit insurance. This covers banks tied to the President, Vice President, or either official's spouse or child, including ties held indirectly or through or with others. The person must still have a barred bank stake, voting power, senior executive role, or other control when the time to comply runs out. The 30-day period begins on the relevant President's or Vice President's inauguration day.