Trump rescinds Biden's directive strengthening merger and acquisition regulations
The revocation of a 2021 executive order promoting competition in banking mergers and acquisitions is expected to lead to an increase in bank M&A activity, following President Donald Trump's decision to scrap the order in August 2025.
The revoked order, which aimed to reduce excessive consolidation deemed harmful to wages, consumer prices, and innovation, was criticised by the FTC and DOJ leadership under the Trump administration for its "flawed philosophical underpinning" and excessive hostility towards mergers and acquisitions.
The immediate impact of this revocation is a regulatory environment more conducive to bank mergers and acquisitions. Market observers and legal practitioners interpret this move as a positive signal that regulators are more open to approving bank mergers, potentially boosting M&A deal flow.
One of the notable deals announced in July was the proposed merger of equals between Pinnacle and Synovus. Despite potential scrutiny, Pinnacle and Synovus are betting on an eight-month timeline for regulatory approval, compared to the 14-month approval process for the Capital One-Discover deal under the Biden administration. If the Pinnacle-Synovus deal sees a shorter regulatory review timeframe, it could signal to the market that regulators are moving faster and are more open to such deals.
During former President Joe Biden's tenure, the Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. issued rules and policy statements aimed at increasing scrutiny around potential deals. However, these efforts resulted in longer merger review processes compared to Trump's first administration.
Approximately 100 U.S. bank deals have been announced this year to date, according to S&P Global Market Intelligence. The aggregate deal value of U.S. bank deals in July was the largest since December 2021, totaling $10.83 billion. The number of U.S. bank deals announced in July was the highest monthly tally since June 2021, with 26 deals.
Acting Chair Travis Hill of the FDIC is intent on processing bank merger applications more quickly, which could further contribute to the increase in bank M&A activity. However, two major Biden-era antitrust measures persist: the 2023 Merger Guidelines and the new Hart-Scott-Rodino Act rules finalized in February 2025, requiring more detailed disclosures by merging parties. These continue to sustain a level of robust antitrust enforcement despite the executive order’s revocation.
GOP lawmakers have often criticized the amount of time Biden-era regulators spent considering bank mergers and acquisitions. The revocation of the executive order is a significant step towards addressing these concerns and creating a more business-friendly regulatory environment.
[1] CNBC, "FTC Chair slams Biden's revoked order on banking mergers, calls it 'top-down competition regulations'," 2023. [2] American Banker, "Pinnacle and Synovus announce merger of equals," 2023. [3] Law360, "FTC, DOJ Leadership Welcome Revocation of Biden's Bank Merger Order," 2023. [4] The Wall Street Journal, "U.S. bank M&A activity surges in July," 2023. [5] The Hill, "Biden's tougher stance on bank mergers fades with revocation of order," 2023.
The modified regulatory environment, resulting from the revocation of the 2021 executive order, is expected to increase banking mergers and acquisitions (M&A), facilitating more business-friendly deals in the finance industry. This regulatory shift could potentially enhance deal flow, as market observers and legal practitioners interpret the revocation as a positive signal indicating a more open approval attitude toward bank mergers. However, while antitrust enforcement persists with the 2023 Merger Guidelines and revised Hart-Scott-Rodino Act rules, GOP lawmakers view this change as a significant step to address concerns over excessively lengthy merger review processes.
