119-hr1910

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1910 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 1910

 To amend the Financial Stability Act of 2010 to require certain large 
 banking institutions to have a Chief Risk Officer, and for other 
 purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 March 6, 2025

 Mr. Casten (for himself, Mr. Sherman, Mr. David Scott of Georgia, Mr. 
 Green of Texas, and Mr. Torres of New York) introduced the following 
 bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

 A BILL

 To amend the Financial Stability Act of 2010 to require certain large 
 banking institutions to have a Chief Risk Officer, 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 ``Chief Risk Officer Enforcement and 
Accountability Act''.

SEC. 2. CHIEF RISK OFFICER.

 

Section 165

    (h) of the Financial Stability Act of 2010 (12 U.S.C. 
5365

    (h) ) is amended--

    (1) in paragraph

    (2) --
        (A) by striking ``that is a publicly traded company 
 and'' each place such term appears; and
        (B) by inserting ``, and appoint a chief risk 
 officer, as set forth in paragraph

    (4) '' after ``as set 
 forth in paragraph

    (3) '' each place such term appears;

    (2) by redesignating paragraph

    (4) as paragraph

    (7) ; and

    (3) by inserting after paragraph

    (3) the following:
 ``

    (4) Chief risk officer.--
 ``
        (A) In general.--A chief risk officer required by 
 this subsection shall be appointed by a company from 
 among individuals with experience in identifying, 
 assessing, and managing risk exposures of large, 
 complex financial firms.
 ``
        (B) Responsibilities.--A chief risk officer shall 
 be responsible for overseeing the following:
 ``
            (i) The establishment of risk limits on 
 an enterprise-wide basis and the monitoring of 
 compliance with such limits.
 ``
            (ii) The implementation of and ongoing 
 compliance with the policies and procedures 
 establishing risk-management governance, risk-
 management procedures, and risk-control 
 infrastructure for the global operations of the 
 company.
 ``
            (iii) The development and implementation 
 of the processes and systems for implementing 
 and monitoring compliance with the policies and 
 procedures described under clause
            (ii) , 
 including--
 ``
            (I) processes and systems for 
 identifying and reporting risks and 
 risk-management deficiencies, including 
 regarding emerging risks, and ensuring 
 effective and timely implementation of 
 actions to address emerging risks and 
 risk-management deficiencies for the 
 global operations of the company;
 ``
            (II) processes and systems for 
 establishing managerial and employee 
 responsibility for risk management;
 ``
            (III) processes and systems for 
 ensuring the independence of the risk-
 management function; and
 ``
            (IV) processes and systems to 
 integrate risk management and 
 associated controls with management 
 goals and the compensation structure of 
 the company for the global operations 
 of the company.
 ``
            (iv) The management of risks and risk 
 controls within the parameters of the company's 
 risk-control framework, and monitoring and 
 testing of the company's risk controls.
 ``
            (C) Reporting responsibilities.--A chief risk 
 officer shall--
 ``
            (i) report directly to both the risk 
 committee described under paragraph

    (3) and the 
 chief executive officer of the company; and
 ``
            (ii) be responsible for reporting risk-
 management deficiencies and emerging risks to 
 the risk committee described under paragraph

    (3) and resolving risk-management deficiencies 
 in a timely manner.
 ``
            (D) Vacancies.--
 ``
            (i) Notification to regulators.--With 
 respect to a chief risk officer required by 
 this subsection, if the office of a chief risk 
 officer becomes vacant, the company shall--
 ``
            (I) not later than 24 hours after 
 such vacancy occurs, notify the primary 
 financial regulatory agency of the 
 company, the primary financial 
 regulatory agency of any depository 
 institution subsidiary of the company, 
 and any State agency with supervisory 
 authority over the company or any 
 depository institution subsidiary of 
 the company of such vacancy; and
 ``
            (II) not later than 7 days after 
 such vacancy occurs, submit a plan to 
 the primary financial regulatory agency 
 of the company, the primary financial 
 regulatory agency of any depository 
 institution subsidiary of the company, 
 and any State agency with supervisory 
 authority over the company or any 
 depository institution subsidiary of 
 the company on how the company will 
 search for and promptly hire a well-
 qualified chief risk officer to fill 
 the vacancy.
 ``
            (ii) Failure to fill vacancy.--With 
 respect to a vacancy described under clause
            (i) , if the company does not fill the vacancy 
 within 60 days of the vacancy occurring--
 ``
            (I) the company shall notify the 
 public, including on the website of the 
 company, that the vacancy has existed 
 for more than 60 days; and
 ``
            (II) the total assets of the 
 company may not exceed the total assets 
 of the company on the date the vacancy 
 occurred until such time as the vacancy 
 is filled.
 ``

    (5) Application to large banks with no bank holding 
 company.--The primary financial regulatory agencies shall issue 
 regulations requiring each bank that does not have a bank 
 holding company and that has total consolidated assets of not 
 less than $50,000,000,000 to establish a risk committee, as set 
 forth in paragraph

    (3) and appoint a chief risk officer, as set 
 forth in paragraph

    (4) .
 ``

    (6) Primary financial regulatory agency for certain 
 nonbank financial companies.--For purposes of this subsection, 
 the primary financial regulatory agency for a nonbank financial 
 company supervised by the Board of Governors shall be the Board 
 of Governors.''.
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