Least Cost Exception Act

This bill lets the FDIC choose a different method for handling a failed bank besides the cheapest option, as long as certain conditions are met. Right now, the FDIC is required to pick the least expensive way to deal with a bank failure, but this bill creates an exception that encourages solutions that don't involve the biggest banks in the country, known as global systemically important banks. To use this exception, the chosen method must still not cost more than shutting the bank down entirely, the extra cost must stay within set limits, and the FDIC must decide that keeping banking power from being too concentrated in the biggest banks is worth any added cost. The FDIC would also have to publish a report explaining the economic impact whenever it uses this exception.

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