The US Federal Deposit Insurance Corporation (FDIC) is set to propose new policies for bank mergers [02920e2a]. The proposal aims to address the instability affecting midsize lenders and comes after criticism of the FDIC's handling of mergers following major bank failures in 2023 [02920e2a]. Democratic Senator Elizabeth Warren and other financial reform advocates have expressed outrage over the acquisition of failed banks by large banks like JPMorgan Chase [02920e2a]. FDIC board member Rohit Chopra, who heads the US Consumer Financial Protection Bureau, has pledged tougher scrutiny of merger applications [02920e2a]. Treasury Secretary Janet Yellen has indicated openness to mergers among regional banks facing earnings pressure [02920e2a]. Bank executives have complained about regulators' slow approval process for mergers, which they believe has contributed to low merger activity among healthy banks [02920e2a]. The proposal is likely to face Republican opposition on the FDIC board, making Chopra's vote critical [02920e2a]. The OCC approved the merger of New York Community Bank with Flagstar Bank in 2022, despite concerns about NYCB's exposure to commercial real estate [02920e2a]. The FDIC also approved NYCB's takeover of Signature Bank in 2023 [02920e2a]. The combined entity reported a surprise loss in January and received a $1 billion capital infusion this month [02920e2a].