[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4823 Reported in House (RH)]
<DOC>
Union Calendar No. 264
118th CONGRESS
1st Session
H. R. 4823
[Report No. 118-325]
To provide enhanced reporting requirements for Federal banking
regulators, to amend the Federal Reserve Act to remove the designation
of Vice Chairman for Supervision of the Board of Governors of the
Federal Reserve System, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 24, 2023
Mr. Loudermilk (for himself, Mr. Barr, Mr. Flood, and Mr. Ogles)
introduced the following bill; which was referred to the Committee on
Financial Services
December 19, 2023
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on July
24, 2023]
_______________________________________________________________________
A BILL
To provide enhanced reporting requirements for Federal banking
regulators, to amend the Federal Reserve Act to remove the designation
of Vice Chairman for Supervision of the Board of Governors of the
Federal Reserve System, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``American Financial
Institution Regulatory Sovereignty and Transparency Act of 2023'' or
the ``American FIRST Act of 2023''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; Table of contents.
TITLE I--STOP EXECUTIVE CAPTURE OF BANKING REGULATORS
Sec. 101. Report on the implementation of recommendations from the FSOC
Chairperson and Executive Orders.
TITLE II--ENSURING U.S. AUTHORITY OVER U.S. BANKING REGULATIONS
Sec. 201. Requirements in connection with rulemakings implementing
policies of non-governmental international
organizations.
Sec. 202. Report on certain climate-related interactions with covered
international organizations.
TITLE III--BANKING REGULATOR INTERNATIONAL REPORTING
Sec. 301. Reporting on interactions with non-governmental international
organizations.
TITLE IV--SUPERVISION REFORM
Sec. 401. Removal of the Vice Chairman for Supervision designation.
TITLE I--STOP EXECUTIVE CAPTURE OF BANKING REGULATORS
SEC. 101. REPORT ON THE IMPLEMENTATION OF RECOMMENDATIONS FROM THE FSOC
CHAIRPERSON AND EXECUTIVE ORDERS.
(a) Board of Governors of the Federal Reserve System.--Section 10
of the Federal Reserve Act (12 U.S.C. 247b), as amended by section
401(b), is further amended by adding at the end the following:
``(11) Report on the implementation of recommendations from
the fsoc chairperson and executive orders.--The Board of
Governors of the Federal Reserve System may not implement a
non-binding recommendation made by the Chairperson of the
Financial Stability Oversight Council or contained in an
Executive Order unless the Board of Governors first provides
the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate with--
``(A) notice that the Board of Governors intends to
implement such recommendation;
``(B) a report containing the proposed
implementation by the Board of Governors and a
justification for such implementation; and
``(C) upon request, not later than the end of the
120-day period beginning on the date of the notice
under subparagraph (A), testimony on such proposed
implementation.''.
(b) Office of the Comptroller of the Currency.--Section 324 of the
Revised Statutes of the United States (12 U.S.C. 1) is amended by
adding at the end the following:
``(c) Report on the Implementation of Recommendations From the FSOC
Chairperson and Executive Orders.--The Comptroller of the Currency may
not implement a non-binding recommendation made by the Chairperson of
the Financial Stability Oversight Council or contained in an Executive
Order unless the Comptroller of the Currency first provides the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate with--
``(1) notice that the Comptroller of the Currency intends
to implement such recommendation;
``(2) a report containing the proposed implementation by
the Comptroller of the Currency and a justification for such
implementation; and
``(3) upon request, not later than the end of the 120-day
period beginning on the date of the notice under paragraph (1),
testimony on such proposed implementation.''.
(c) Federal Deposit Insurance Corporation.--Section 2 of the
Federal Deposit Insurance Act (12 U.S.C. 1812) is amended by inserting
after subsection (f) the following:
``(g) Report on the Implementation of Recommendations From the FSOC
Chairperson and Executive Orders.--The Board of Directors of the
Corporation may not implement a non-binding recommendation made by the
Chairperson of the Financial Stability Oversight Council or contained
in an Executive Order unless the Board of Directors first provides the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate with--
``(1) notice that the Board of Directors intends to
implement such recommendation;
``(2) a report containing the proposed implementation by
the Board of Directors and a justification for such
implementation; and
``(3) upon request, not later than the end of the 120-day
period beginning on the date of the notice under paragraph (1),
testimony on such proposed implementation.''.
(d) National Credit Union Administration.--Section 102 of the
Federal Credit Union Act (12 U.S.C. 1752a) is amended by adding at the
end the following:
``(g) Report on the Implementation of Recommendations From the FSOC
Chairperson and Executive Orders.--The Board may not implement a non-
binding recommendation made by the Chairperson of the Financial
Stability Oversight Council or contained in an Executive Order unless
the Board first provides the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate with--
``(1) notice that the Board intends to implement such
recommendation;
``(2) a report containing the proposed implementation by
the Board and a justification for such implementation; and
``(3) upon request, not later than the end of the 120-day
period beginning on the date of the notice under paragraph (1),
testimony on such proposed implementation.''.
(e) Federal Housing Finance Agency.--Section 1311 of the Housing
and Community Development Act of 1992 (12 U.S.C. 4511) is amended by
adding at the end the following:
``(d) Report on the Implementation of Recommendations From the FSOC
Chairperson and Executive Orders.--The Director may not implement a
non-binding recommendation made by the Chairperson of the Financial
Stability Oversight Council or contained in an Executive Order unless
the Director first provides the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate with--
``(1) notice that the Director intends to implement such
recommendation;
``(2) a report containing the proposed implementation by
the Director and a justification for such implementation; and
``(3) upon request, not later than the end of the 120-day
period beginning on the date of the notice under paragraph (1),
testimony on such proposed implementation.''.
TITLE II--ENSURING U.S. AUTHORITY OVER U.S. BANKING REGULATIONS
SEC. 201. REQUIREMENTS IN CONNECTION WITH RULEMAKINGS IMPLEMENTING
POLICIES OF NON-GOVERNMENTAL INTERNATIONAL ORGANIZATIONS.
(a) Board of Governors of the Federal Reserve System.--Section 10
of the Federal Reserve Act (12 U.S.C. 247b), as amended by section
101(a), is further amended by inserting after paragraph (11) the
following:
``(12) Requirements in connection with rulemakings
implementing policies of non-governmental international
organizations.--
``(A) In general.--The Board of Governors of the
Federal Reserve System may not propose or finalize a
major covered rule unless, not later than 120 days
before issuing such a proposed or final rule, the Board
of Governors provides the Committee on Financial
Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate with notice, testimony, and a detailed economic
analysis with respect to the proposed or final rule,
including projections of economic costs, sectoral
effects, and effects on the availability of credit, the
gross domestic product, and employment.
``(B) Major covered rule defined.--In this
paragraph, the term `major covered rule' means a rule--
``(i) that the Board of Governors
determines would have an effect, in the
aggregate, on the economy of the United States
of $10,000,000,000 or more during the 10-year
period beginning on the date the rule takes
effect; and
``(ii) that is intended to align or conform
with a recommendation from a non-governmental
international organization (including the
Financial Stability Board, the Bank for
International Settlements, the Network of
Central Banks and Supervisors for Greening the
Financial System, and the Basel Committee on
Banking Supervision).''.
(b) Office of the Comptroller of the Currency.--Section 324 of the
Revised Statutes of the United States (12 U.S.C. 1), as amended by
section 101(b), is further amended by adding at the end the following:
``(d) Requirements in Connection With Rulemakings Implementing
Policies of Non-governmental International Organizations.--
``(1) In general.--The Comptroller of the Currency may not
propose or finalize a major covered rule unless, not later than
120 days before issuing such a proposed or final rule, the
Comptroller of the Currency provides the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate with notice,
testimony, and a detailed economic analysis with respect to the
proposed or final rule, including projections of economic
costs, sectoral effects, and effects on the availability of
credit, the gross domestic product, and employment.
``(2) Major covered rule defined.--In this subsection, the
term `major covered rule' means a rule--
``(A) that the Comptroller of the Currency
determines would have an effect, in the aggregate, on
the economy of the United States of $10,000,000,000 or
more during the 10-year period beginning on the date
the rule takes effect; and
``(B) that is intended to align or conform with a
recommendation from a non-governmental international
organization (including the Financial Stability Board,
the Bank for International Settlements, the Network of
Central Banks and Supervisors for Greening the
Financial System, and the Basel Committee on Banking
Supervision).''.
(c) Federal Deposit Insurance Corporation.--Section 2 of the
Federal Deposit Insurance Act (12 U.S.C. 1812), as amended by section
101(c), is further amended by inserting after subsection (g) the
following:
``(h) Requirements in Connection With Rulemakings Implementing
Policies of Non-governmental International Organizations.--
``(1) In general.--The Board of Directors of the
Corporation may not propose or finalize a major covered rule
unless, not later than 120 days before issuing such a proposed
or final rule, the Board of Directors provides the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate
with notice, testimony, and a detailed economic analysis with
respect to the proposed or final rule, including projections of
economic costs, sectoral effects, and effects on the
availability of credit, the gross domestic product, and
employment.
``(2) Major covered rule defined.--In this subsection, the
term `major covered rule' means a rule--
``(A) that the Board of Directors determines would
have an effect, in the aggregate, on the economy of the
United States of $10,000,000,000 or more during the 10-
year period beginning on the date the rule takes
effect; and
``(B) that is intended to align or conform with a
recommendation from a non-governmental international
organization (including the Financial Stability Board,
the Bank for International Settlements, the Network of
Central Banks and Supervisors for Greening the
Financial System, and the Basel Committee on Banking
Supervision).''.
(d) National Credit Union Administration.--Section 102 of the
Federal Credit Union Act (12 U.S.C. 1752a), as amended by section
101(d), is further amended by adding at the end the following:
``(h) Requirements in Connection With Rulemakings Implementing
Policies of Non-governmental International Organizations.--
``(1) In general.--The Board may not propose or finalize a
major covered rule unless, not later than 120 days before
issuing such a proposed or final rule, the Board provides the
Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the
Senate with notice, testimony, and a detailed economic analysis
with respect to the proposed or final rule, including
projections of economic costs, sectoral effects, and effects on
the availability of credit, the gross domestic product, and
employment.
``(2) Major covered rule defined.--In this subsection, the
term `major covered rule' means a rule--
``(A) that the Board determines would have an
effect, in the aggregate, on the economy of the United
States of $10,000,000,000 or more during the 10-year
period beginning on the date the rule takes effect; and
``(B) that is intended to align or conform with a
recommendation from a non-governmental international
organization (including the Financial Stability Board,
the Bank for International Settlements, the Network of
Central Banks and Supervisors for Greening the
Financial System, and the Basel Committee on Banking
Supervision).''.
(e) Federal Housing Finance Agency.--Section 1311 of the Housing
and Community Development Act of 1992 (12 U.S.C. 4511), as amended by
section 101(e), is further amended by adding at the end the following:
``(e) Requirements in Connection With Rulemakings Implementing
Policies of Non-governmental International Organizations.--
``(1) In general.--The Director may not propose or finalize
a major covered rule unless, not later than 120 days before
issuing such a proposed or final rule, the Director provides
the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate with notice, testimony, and a
detailed economic analysis with respect to the proposed or
final rule, including projections of economic costs, sectoral
effects, and effects on the availability of credit, the gross
domestic product, and employment.
``(2) Major covered rule defined.--In this subsection, the
term `major covered rule' means a rule--
``(A) that the Director determines would have an
effect, in the aggregate, on the economy of the United
States of $10,000,000,000 or more during the 10-year
period beginning on the date the rule takes effect; and
``(B) that is intended to align or conform with a
recommendation from a non-governmental international
organization (including the Financial Stability Board,
the Bank for International Settlements, the Network of
Central Banks and Supervisors for Greening the
Financial System, and the Basel Committee on Banking
Supervision).''.
SEC. 202. REPORT ON CERTAIN CLIMATE-RELATED INTERACTIONS WITH COVERED
INTERNATIONAL ORGANIZATIONS.
(a) In General.--A Federal banking regulator may not meet with or
otherwise engage with a covered international organization on the topic
of climate-related financial risk during a calendar year unless the
Federal banking regulator has issued a report to the Committee on
Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate containing, for the
previous calendar year--
(1) a complete description of the activities of the covered
international organization in which the Federal banking
regulator participates (including any task force, committee, or
other organizational unit thereof); and
(2) a detailed accounting of the governmental and non-
governmental funding sources of the covered international
organization (including any task force, committee, or other
organizational unit thereof).
(b) Definitions.--In this section:
(1) Covered international organization.--The term ``covered
international organization'' means the Financial Stability
Board, the Bank for International Settlements, the Network of
Central Banks and Supervisors for Greening the Financial
System, and the Basel Committee on Banking Supervision.
(2) Federal banking regulator.--The term ``Federal banking
regulator'' means the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation, the Federal
Housing Finance Agency, the National Credit Union
Administration, and the Office of the Comptroller of the
Currency.
TITLE III--BANKING REGULATOR INTERNATIONAL REPORTING
SEC. 301. REPORTING ON INTERACTIONS WITH NON-GOVERNMENTAL INTERNATIONAL
ORGANIZATIONS.
(a) Board of Governors of the Federal Reserve System.--Section 10
of the Federal Reserve Act (12 U.S.C. 247b), as amended by section
201(a), is further amended by inserting after paragraph (12) the
following:
``(13) Reporting on interactions with non-governmental
international organizations.--With respect to interactions
between the Board of Governors of the Federal Reserve System
and a non-governmental international organization (including
the Financial Stability Board, the Bank for International
Settlements, the Network of Central Banks and Supervisors for
Greening the Financial System, and the Basel Committee on
Banking Supervision), the Board of Governors shall--
``(A) keep a complete record of all such
interactions, including minutes of all meetings and any
recommendations made during such interaction for
international standardization with respect to open-
market policies and operations, discount lending and
operations (including collateral policies), or
supervisory policies and operations; and
``(B) issue an annual report to the Committee on
Financial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of
the Senate containing--
``(i) all of the information recorded
pursuant to subparagraph (A) with respect to
the previous year; and
``(ii) with respect to each non-
governmental international organization with
which the Board of Governors had an interaction
in the previous year, a description of the
funding sources of the non-governmental
international organization.''.
(b) Office of the Comptroller of the Currency.--Section 324 of the
Revised Statutes of the United States (12 U.S.C. 1), as amended by
section 201(b), is further amended by adding at the end the following:
``(e) Reporting on Interactions With Non-governmental International
Organizations.--With respect to interactions between the Office of the
Comptroller of the Currency and a non-governmental international
organization (including the Financial Stability Board, the Bank for
International Settlements, the Network of Central Banks and Supervisors
for Greening the Financial System, and the Basel Committee on Banking
Supervision), the Comptroller of the Currency shall--
``(1) keep a complete record of all such interactions,
including minutes of all meetings and any recommendations made
during such interaction for international standardization with
respect to discount lending and operations (including
collateral policies) or supervisory policies and operations;
and
``(2) issue an annual report to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate containing--
``(A) all of the information recorded pursuant to
paragraph (1) with respect to the previous year; and
``(B) with respect to each non-governmental
international organization with which the Office of the
Comptroller of the Currency had an interaction in the
previous year, a description of the funding sources of
the non-governmental international organization.''.
(c) Federal Deposit Insurance Corporation.--Section 2 of the
Federal Deposit Insurance Act (12 U.S.C. 1812), as amended by section
201(c), is further amended is amended by inserting after subsection (h)
the following:
``(i) Reporting on Interactions With Non-governmental International
Organizations.--With respect to interactions between the Federal
Deposit Insurance Corporation and a non-governmental international
organization (including the Financial Stability Board, the Bank for
International Settlements, the Network of Central Banks and Supervisors
for Greening the Financial System, and the Basel Committee on Banking
Supervision), the Board of Directors of the Corporation shall--
``(1) keep a complete record of all such interactions,
including minutes of all meetings and any recommendations made
during such interaction for international standardization with
respect to discount lending and operations (including
collateral policies) or supervisory policies and operations;
and
``(2) issue an annual report to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate containing--
``(A) all of the information recorded pursuant to
paragraph (1) with respect to the previous year; and
``(B) with respect to each non-governmental
international organization with which the Corporation
had an interaction in the previous year, a description
of the funding sources of the non-governmental
international organization.''.
(d) National Credit Union Administration.--Section 102 of the
Federal Credit Union Act (12 U.S.C. 1752a), as amended by section
201(d), is further amended by adding at the end the following:
``(i) Reporting on Interactions With Non-governmental International
Organizations.--With respect to interactions between the Administration
and a non-governmental international organization (including the
Financial Stability Board, the Bank for International Settlements, the
Network of Central Banks and Supervisors for Greening the Financial
System, and the Basel Committee on Banking Supervision), the Board
shall--
``(1) keep a complete record of all such interactions,
including minutes of all meetings and any recommendations made
during such interaction for international standardization with
respect to discount lending and operations (including
collateral policies) or supervisory policies and operations;
and
``(2) issue an annual report to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate containing--
``(A) all of the information recorded pursuant to
paragraph (1) with respect to the previous year; and
``(B) with respect to each non-governmental
international organization with which the
Administration had an interaction in the previous year,
a description of the funding sources of the non-
governmental international organization.''.
(e) Federal Housing Finance Agency.--Section 1311 of the Housing
and Community Development Act of 1992 (12 U.S.C. 4511), as amended by
section 201(e), is further amended by adding at the end the following:
``(f) Reporting on Interactions With Non-governmental International
Organizations.--With respect to interactions between the Federal
Housing Finance Agency and a non-governmental international
organization (including the Financial Stability Board, the Bank for
International Settlements, the Network of Central Banks and Supervisors
for Greening the Financial System, and the Basel Committee on Banking
Supervision), the Director shall--
``(1) keep a complete record of all such interactions,
including minutes of all meetings and any recommendations made
during such interaction for international standardization with
respect to discount lending and operations (including
collateral policies) or supervisory policies and operations;
and
``(2) issue an annual report to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate containing--
``(A) all of the information recorded pursuant to
paragraph (1) with respect to the previous year; and
``(B) with respect to each non-governmental
international organization with which the Federal
Housing Finance Agency had an interaction in the
previous year, a description of the funding sources of
the non-governmental international organization.''.
TITLE IV--SUPERVISION REFORM
SEC. 401. REMOVAL OF THE VICE CHAIRMAN FOR SUPERVISION DESIGNATION.
(a) In General.--The second undesignated paragraph of section 10 of
the Federal Reserve Act (12 U.S.C. 242) (relating to the Chairman and
Vice Chairman of the Board) is amended by striking ``and 2 shall be
designated by the President, by and with the advice and consent of the
Senate, to serve as Vice Chairmen of the Board, each for a term of 4
years, 1 of whom shall serve in the absence of the Chairman, as
provided in the fourth undesignated paragraph of this section, and 1 of
whom shall be designated Vice Chairman for Supervision. The Vice
Chairman for Supervision shall develop policy recommendations for the
Board regarding supervision and regulation of depository institution
holding companies and other financial firms supervised by the Board,
and shall oversee the supervision and regulation of such firms.'' and
inserting ``and 1 shall be designated by the President, by and with the
consent of the Senate, to serve as Vice Chairman of the Board for a
term of 4 years.''.
(b) Conforming Amendment.--Section 10 of the Federal Reserve Act
(12 U.S.C. 241 et seq.) is amended by striking paragraph (12).
Union Calendar No. 264
118th CONGRESS
1st Session
H. R. 4823
[Report No. 118-325]
_______________________________________________________________________
A BILL
To provide enhanced reporting requirements for Federal banking
regulators, to amend the Federal Reserve Act to remove the designation
of Vice Chairman for Supervision of the Board of Governors of the
Federal Reserve System, and for other purposes.
_______________________________________________________________________
December 19, 2023
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed