119-hr3716

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3716 Reported in House

    (RH) ]

<DOC>

 Union Calendar No. 169
119th CONGRESS
 1st Session
 H. R. 3716

 [Report No. 119-206]

 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

 July 15, 2025

 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 4, 
 2025]

_______________________________________________________________________

 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 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, Department of the 
 Treasury, 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, or 
 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. 169

119th CONGRESS

 1st Session

 H. R. 3716

 [Report No. 119-206]

_______________________________________________________________________

 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 15, 2025

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