Bill > HR3716

This bill amends the Federal Deposit Insurance Act to enhance transparency and reporting requirements when federal regulators use systemic risk authority to manage the failure of a bank or financial institution. Specifically, the bill requires two key types of reports: first, the Government Accountability Office (GAO) must conduct a comprehensive review within 60 days of a bank failure, examining the reasons for the failure, its potential systemic impacts, management misconduct, compensation practices, regulatory shortcomings, and other contributing factors. Second, the appropriate federal banking agency must submit a detailed report within 90 days, disclosing examination reports, supervisory communications, and an analysis of what led to the institution's failure, while also providing recommendations to improve banking system stability. The bill includes provisions to protect sensitive information and allows for limited redaction of confidential details, but emphasizes transparency by requiring agencies to publish as much information as possible and consult with congressional committees if they wish to withhold certain materials. The goal is to provide greater public and congressional insight into bank failures and the regulatory response, potentially helping to prevent similar incidents in the future.

Business and Industry, Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/house-bill/3716/all-info