A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Board of Governors of the Federal Reserve System relating to "Revisions to the Large Financial Institution Rating System and Framework for the Supervision of Insurance Organizations".

What This Bill Does

This joint resolution is Congress's way of formally rejecting — and canceling — a new rule created by the Federal Reserve (the central bank of the United States). The rule being rejected was called "Revisions to the Large Financial Institution Rating System and Framework for the Supervision of Insurance Organizations." That Federal Reserve rule would have updated how regulators grade and monitor large banks and insurance companies to make sure they are operating safely and responsibly. By passing this joint resolution, Congress would effectively wipe out that rule before it takes effect.

Who It Affects

This bill primarily affects large banks and insurance companies that fall under Federal Reserve oversight, as well as the Federal Reserve itself. The Fed's original rule would have changed the internal "report card" system regulators use to evaluate whether big financial institutions are healthy and well-managed. If this resolution passes, those large financial firms would not face the updated oversight standards the Fed had planned to put in place, and the old evaluation framework would remain in effect instead.

How the Process Works

Congress has the authority to block federal agency rules through a law called the Congressional Review Act. This resolution is an example of that process in action — lawmakers in the Senate have introduced it as a check on the Federal Reserve's rulemaking power. For the rule to be fully canceled, the resolution would need to pass both the Senate and the House of Representatives, and either be signed by the President or pass with enough votes to override a veto. The bill is currently in early stages, having been referred to the Senate Banking Committee for review.