Systemic Risk Authority Transparency Act
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Would require banking regulators and the Government Accountability Office to submit detailed reports to Congress whenever a bank failure triggers a 'systemic risk' determination — the special federal authority used to protect uninsured depositors when regulators judge that standard resolution would threaten broader financial stability.
The bill would create a structured, time-bound accountability pipeline tied directly to invocations of one of the government's most powerful bank-rescue tools, filling an oversight gap exposed by high-profile bank failures where Congress had limited timely access to information about what regulators knew and when.
What this bill would do
What it would do
The bill would amend the Federal Deposit Insurance Act to mandate congressional reports whenever a bank failure triggers a systemic risk determination — the special authority used to protect uninsured depositors when regulators judge standard resolution would threaten financial stability. The appropriate federal banking agency would report within 90 days (and again 210 days later), disclosing three years of examination records, evidence of executive mismanagement, regulatory shortcomings, and safety recommendations for similarly situated banks. The GAO would separately report within 60 days (and again 180 days later), also covering compensation practices and the roles of outside parties such as auditors, credit rating agencies, and emergency liquidity sources.
Attorney-client and work-product privileges would be preserved for any disclosed materials. Agencies could extend reporting deadlines by 60 additional days during active banking emergencies if they notify Congress. If an agency wishes to withhold materials from public publication, it must first consult the chairs and ranking members of the House Financial Services and Senate Banking committees, then provide those withheld materials directly to those committees with a written explanation.
Key provisions
- 1Would expand the existing GAO review requirement to include analysis of executive mismanagement, compensation practices, supervisory shortcomings, regulatory actions taken, and the roles of auditors, credit rating agencies, and emergency liquidity sources.
- 2Would require the appropriate federal banking agency to report to Congress within 90 days of a systemic risk determination — and again 210 days later — disclosing three years of examination records, mismanagement findings, regulatory shortcomings, and safety recommendations.
- 3Would allow agencies to withhold materials from public publication only after consulting the chairs and ranking members of both congressional banking committees, and would require withheld materials to be transmitted directly to those committees with a written explanation.
- 4Would preserve attorney-client and work-product privileges for all information submitted under the reporting requirements, and would not waive Freedom of Information Act exemptions.
- 5Would allow a federal banking agency to extend its reporting deadline by up to 60 days if facing ongoing circumstances requiring it to prioritize banking system stability, provided it notifies Congress.
Who would be affected
Federal banking regulators responsible for failed institutions, the Government Accountability Office, and the House Financial Services and Senate Banking committees, which would receive the reports. Any insured depository institution whose failure triggers a systemic risk determination would be the subject of disclosure, and its executives, board members, and outside auditors could be named in findings.
Why it matters
When a bank failure invokes the systemic risk exception, Congress currently receives no structured, time-bound information about what regulators knew and what went wrong. This bill would create binding deadlines — as short as 60 days — requiring detailed post-failure analysis of mismanagement, supervisory failures, and compensation practices while evidence is still fresh and accountability is most actionable.
What would change
Changes to existing law
Amends Federal Deposit Insurance Act, 12 U.S.C. § 1823(c)(4)(G)(iv) (Sec. 2(a))
Rewrites the existing GAO review clause to add required analysis of executive mismanagement, compensation practices, supervisory shortcomings, regulatory actions, and roles of outside parties such as auditors and credit rating agencies.
Amends Federal Deposit Insurance Act, 12 U.S.C. § 1823(c) (Sec. 2(b))
Adds a new paragraph requiring the appropriate federal banking agency to submit a detailed post-failure report to Congress within 90 days of a systemic risk determination, with a follow-up report 210 days later.
Agencies directed to act
Funding and costs
Congressional Budget Office estimate
CBO estimates H.R. 3716 would have a negligible effect on the federal deficit, with total costs across all affected agencies of less than $500,000 over the 2025–2035 period.
CBO estimates that enacting the Systemic Risk Authority Transparency Act would increase direct spending (mandatory spending) by less than $500,000 and decrease revenues by less than $500,000 over the 2025–2035 period, for a net deficit effect below $500,000. The bill requires the FDIC, Federal Reserve, GAO, and OCC to submit additional reports to Congress whenever the systemic risk exception — an emergency authority allowing regulators to protect uninsured depositors — is invoked, and the modest costs stem from the added administrative burden of those reporting requirements. CBO also found that the bill contains a private-sector mandate, because financial institutions that pay fees to regulators could see those fees rise to cover implementation costs, but CBO estimates that incremental cost would fall well below UMRA's annual private-sector mandate threshold of $206 million. The bill contains no intergovernmental mandates.
How implementation would work
After a systemic risk determination, the GAO must submit an initial report within 60 days and a follow-up 180 days later; the appropriate federal banking agency must report within 90 days and again 210 days later. Agencies facing ongoing banking stability emergencies may extend their deadline once by 60 days with congressional notification. If an agency wishes to withhold materials from public release, it must consult the chairs and ranking members of both banking committees before doing so, and must transmit withheld materials directly to those committees with a written explanation. Multiple reports may be consolidated as long as all timing requirements are met individually.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Official CRS summary
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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.
Legislative subjects
Banking and financial institutions regulation; Congressional oversight; Finance and Financial Sector; Government studies and investigations
Committee report
H. Rept. 119-206