[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3716 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 3716
To amend the Federal Deposit Insurance Act to require reports on the
use of the systemic risk authority applicable to winding up a failed
insured depository institution, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 4, 2025
Mr. Green of Texas introduced the following bill; which was referred to
the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal Deposit Insurance Act to require reports on the
use of the systemic risk authority applicable to winding up a failed
insured depository institution, 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.
This Act may be cited as the ``Systemic Risk Authority Transparency
Act''.
SEC. 2. BANK FAILURE TRANSPARENCY RELATED TO SYSTEMIC RISK EXCEPTION.
(a) GAO Review.--Section 13(c)(4)(G)(iv) of the Federal Deposit
Insurance Act (12 U.S.C. 1823(c)(4)(G)(iv)) is amended to read as
follows:
``(iv) GAO review.--
``(I) In general.--The Comptroller
General of the United States shall, not
later than later than 60 days after a
determination is made under clause (i),
and again 180 days thereafter, review
and report to the Congress on the
determination under clause (i),
including--
``(aa) the basis for the
determination;
``(bb) the purpose for
which any action was taken
pursuant to such clause;
``(cc) the likely effect of
the determination and such
action on the incentives and
conduct of insured depository
institutions and uninsured
depositors;
``(dd) any mismanagement by
the executives and board of the
insured depository institution
that contributed to the failure
of the insured depository
institution;
``(ee) a review of the
compensation practices of the
insured depository institution;
``(ff) any supervisory or
regulatory shortcomings with
respect to the appropriate
Federal banking agency of the
insured depository institution;
``(gg) any actions taken by
the Federal banking regulators,
Financial Stability Oversight
Council, Treasury Department,
and other relevant financial
regulators in relation to the
failure of the insured
depository institution; and
``(hh) any additional
relevant entities or activities
that may have contributed to
the failure of the insured
depository institution,
including with respect to
auditing, accounting, credit
rating agencies, investment
bank underwriters, and
emergency liquidity options
such as loans from the Federal
reserve banks or advances
through the Federal Home Loan
Bank system.
``(II) Rule of construction.--
Nothing in this clause or a report
issued pursuant to this clause may be
construed to limit the authority of a
Federal agency to enforce violations of
Federal statutes, rules, or orders.''.
(b) Appropriate Federal Banking Agency Report.--Section 13(c) of
the Federal Deposit Insurance Act (12 U.S.C. 1823(c)) is amended by
adding at the end the following:
``(12) Appropriate federal banking agency report.--
``(A) In general.--The appropriate Federal banking
agency of an insured depository institution about which
a determination is made under paragraph (4)(G)(i)
shall, not later than 90 days after the date of such
determination, and again 210 days thereafter, submit a
report to the Congress that discloses the following:
``(i) Subject to such redactions as the
appropriate Federal banking agency determines
appropriate of personally identifiable
information about customers and other financial
institutions (as such term is defined under
section 11(e)(9)(D)), all--
``(I) reports of examination and
inspection that relate to the failed
insured depository institution in the
previous 3-year period;
``(II) formal communications of a
material supervisory determination
conveyed to the failed insured
depository institution in the previous
3-year period; and
``(III) any additional exam reports
and correspondence that the appropriate
Federal banking agency determines may
be relevant to the failure of the
insured depository institution.
``(ii) An examination of any mismanagement
by the executives and board of the insured
depository institution that contributed to the
failure of the insured depository institution.
``(iii) Any supervisory or regulatory
shortcomings by such appropriate Federal
banking agency with respect to the insured
depository institution.
``(iv) Any dynamics that the appropriate
Federal banking agency determines may have
contributed to the failure of the insured
depository institution.
``(v) Any supervisory, regulatory, and
legislative recommendations such appropriate
Federal banking agency may have to improve the
safety and soundness of similarly situated
insured depository institutions, the banking
system, and financial stability.
``(B) Protection of sensitive information.--
``(i) Effect on privilege.--The provision
of any information by a Federal banking agency
under this paragraph may not be construed as--
``(I) waiving, destroying, or
otherwise affecting any privilege
applicable to the information; or
``(II) waiving any exemption
applicable to the information under
section 552 of title 5 United States
Code (commonly known as the `Freedom of
Information Act').
``(ii) Transparency.--
``(I) In general.--A Federal
banking agency shall publish materials
contained in a report required under
subparagraph (A) to the fullest extent
possible to promote transparency.
``(II) Consultation on omitting
materials.--If a Federal banking agency
determines particular materials
described under subclause (I) should
not be published, the Federal banking
agency shall consult with the chair and
ranking member of the Committee on
Financial Services of the House of
Representatives and the chair and
ranking member of the Committee on
Banking, Housing, and Urban Affairs of
the Senate.
``(III) Omitting materials.--If,
after the consultation required under
subclause (II), the Federal banking
agency determines there is a
substantial public interest in not
publishing such materials, the Federal
banking agency shall provide those
materials to the Committee on Financial
Services of the House of
Representatives and the Committee on
Banking, Housing, and Urban Affairs of
the Senate with a written explanation
describing the reasons for not
publishing those materials.
``(iii) Privilege.--For purposes of this
subparagraph, the term `privilege' includes any
work-product, attorney-client, or other
privilege recognized under Federal or State
law.
``(C) Report extension.--A Federal banking agency
may extend a deadline described under subparagraph (A)
for an additional 60 days, if the Federal banking
agency--
``(i) faces ongoing circumstances that
require the Federal banking agency to
prioritize activities to promote stability of
the U.S. banking system; and
``(ii) notifies the Congress of such
extension and the reasons for such extension.
``(D) Consolidated reports.--A Federal banking
agency may consolidate multiple reports required under
this paragraph so long as the individual reports being
consolidated all meet the timing requirements under
this paragraph.
``(E) Rule of construction.--Nothing in this
paragraph or reports or materials provided pursuant to
this paragraph may be construed to limit the authority
of a Federal agency to enforce violations of Federal
statutes, rules, or orders.''.
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