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119-hr-3716119th CongressWALLET

Systemic Risk Authority Transparency Act

Sponsored By: Representative Green, Al [D-TX-9]

Passed House

Summary

This bill would boost _transparency_ around decisions to invoke the systemic risk exception for failing banks by forcing fast, public-facing reviews and detailed agency reports while protecting sensitive information.

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  • The Government Accountability Office would review each systemic risk determination within 60 days and again 180 days and report to Congress on the basis for the decision, its intended purpose, likely effects on bank and depositor behavior, and contributing factors such as mismanagement and compensation practices.
  • The appropriate federal banking agency would have to produce detailed reports for Congress that disclose examination materials and supervisory communications and analyze executive or board mismanagement, agency shortcomings, and recommendations to improve safety and soundness. These disclosures must include records from the prior three years when relevant.
  • Agencies must meet firm reporting deadlines, may redact personally identifiable or privileged material, consult House and Senate banking committee leaders before omitting documents, and may consolidate multiple reports so timing rules are met.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Independent GAO review after bank failures

If enacted, the Government Accountability Office would review each systemic‑risk decision about a failed insured bank. GAO would report to Congress within 60 days and again at 180 days. The reports would explain why the decision was made and what actions were taken. They would assess likely effects on banks and uninsured depositors. They would review bank mismanagement, pay practices, and any regulator shortcomings. They would also review actions by the Federal Reserve, the Treasury Department, the Federal Deposit Insurance Corporation, the Financial Stability Oversight Council, and others, plus emergency lending. The reports would not limit any agency’s power to enforce the law.

Regulators would report on bank failures

If enacted, the failed bank’s main federal regulator would send Congress two reports: one due in 90 days and another at 210 days. The reports would include exam and inspection reports and key supervisory letters from the past 3 years. They would analyze executive and board mismanagement, the agency’s own shortcomings, and what factors drove the failure. They would include recommendations to improve safety and financial stability. The agency would publish as much as possible, redact personal data, and keep attorney‑client, work‑product, and other legal privileges and Freedom of Information Act exemptions. Before omitting materials, the agency would consult House and Senate banking leaders. If withholding items of high public interest, it would provide them to those committees with a written explanation. One 60‑day extension would be allowed with notice to Congress. Reports could be consolidated if deadlines are met. Enforcement authority would be unchanged.

Sponsors & CoSponsors

Sponsor

Green, Al [D-TX-9]

TX • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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