[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4116 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 512
118th CONGRESS
  2d Session
                                H. R. 4116

                          [Report No. 118-614]

 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 14, 2023

    Mr. Green of Texas (for himself, Mr. Sherman, and Mrs. Beatty) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

                             July 30, 2024

  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 June 
                               14, 2023]


_______________________________________________________________________

                                 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.''.
                                                 Union Calendar No. 512

118th CONGRESS

  2d Session

                               H. R. 4116

                          [Report No. 118-614]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                             July 30, 2024

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed