Systemic Risk Authority Transparency Act
Systemic Risk Authority Transparency Act
Plain Language Summary
# Systemic Risk Authority Transparency Act Summary **What the Bill Does:** This bill requires banking regulators to provide detailed reports to Congress whenever a bank fails and the Treasury Department determines it poses a "systemic risk" (meaning its failure could threaten the broader financial system). Regulators must submit an initial report within 90 days and a follow-up report within 210 days, detailing what went wrong at the bank, any mismanagement by its leaders, and what regulators missed in their oversight. Additionally, the Government Accountability Office (an independent congressional watchdog) must investigate and report on similar issues, including the bank's compensation practices and what regulators could do better. **Who It Affects:** This bill primarily affects banking regulators (like the Federal Reserve and FDIC), Congress, and large banks whose failures could threaten financial stability.
It aims to increase accountability and transparency during banking crises, allowing lawmakers and the public to better understand what happened and who was responsible. **Current Status:** The bill has passed the House of Representatives. It now awaits action in the Senate. The legislation addresses congressional oversight of major financial institutions and aims to improve future responses to banking emergencies.
CRS Official Summary
Systemic Risk Authority Transparency Act This bill requires banking regulators to submit a report to Congress in the event of the failure of an insured depository institution that leads to a systemic risk determination by the Department of the Treasury.Regulators must report supervisory information relating to the institution, any mismanagement by the executives and the board, any shortcomings by the regulator, and recommendations to improve the safety and soundness of similarly situated institutions. This report must be made no later than 90 days after such a determination and again 210 days afterwards.The Governmental Accountability Office (GAO) must report on additional factors in its report regarding such a determination. Specifically, GAO must report on any mismanagement by the executives and board of the institution, a review of the institution's compensation practices, supervisory or regulatory shortcomings, actions taken by regulators, and other relevant information. The bill also requires this report to be made no later than 60 days after such a determination and again 180 days afterwards.
Latest Action
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.