Westmoreland and his Democratic counterpart, Rep. David Scott (D-Ga.), agreed that a study on bank failures is needed to see if the FDIC can do anything better to stave off these failures.

"The purpose of this bill is, one, to determine the extent to which certain FDIC practices precipitated the bank failures," Scott said. "We need to find out if there's something that the FDIC was doing, that regulators were doing, that we need to improve upon.

"Two, we need to determine whether various FDIC policies and practices for resolving failed banks are appropriate," he said.

"And three, we need to determine the extent to which the FDIC employees themselves in the field, the investigators the bank examiners… did they take actions that are consistent with FDIC policies and procedures that we developed here in Washington?"