Prudential Regulator Oversight Act

IIB 116TH CONGRESS 2D SESSION H. R. 4841 IN THE SENATE OF THE UNITED STATES JANUARY 14, 2020 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To require the prudential banking regulators to provide an- nual testimony to Congress on their supervision and reg- ulation activities, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 23:08 Jan 14, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4841.RFS H4841 pamtmann on DSKBC07HB2PROD with BILLS 2 HR 4841 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Prudential Regulator 2 Oversight Act’’. 3 SEC. 2. ANNUAL TESTIMONY. 4 (a) IN GENERAL.—The Dodd-Frank Wall Street Re- 5 form and Consumer Protection Act (12 U.S.C. 5301 et 6 seq.) is amended by adding at the end of title VI the fol- 7 lowing: 8 ‘‘SEC. 629. ANNUAL TESTIMONY OF PRUDENTIAL REGU- 9 LATORS. 10 ‘‘(a) SEMI-ANNUAL REPORT.— 11 ‘‘(1) IN GENERAL.—The prudential regulators 12 shall each issue a semi-annual report to the Com- 13 mittee on Banking, Housing, and Urban Affairs of 14 the Senate and the Committee on Financial Services 15 of the House of Representatives regarding the ef- 16 forts, activities, objectives, and plans of the regu- 17 lator with respect to the conduct of supervision and 18 regulation of depository institution holding compa- 19 nies, depository institutions, and credit unions. 20 ‘‘(2) SPECIFIC CONTENTS.—Each report re- 21 quired under paragraph (1) shall include a descrip- 22 tion of— 23 ‘‘(A) the safety and soundness of deposi- 24 tory institution holding companies, depository 25 institutions, and credit unions, including cap- 26 VerDate Sep 11 2014 23:08 Jan 14, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4841.RFS H4841 pamtmann on DSKBC07HB2PROD with BILLS 3 HR 4841 RFS ital, liquidity, leverage, stress testing, and living 1 wills, as applicable; 2 ‘‘(B) the examination and supervision of 3 depository institution holding companies, depos- 4 itory institutions, and credit unions, particu- 5 larly G-SIBs, including— 6 ‘‘(i) a detailed description of public 7 enforcement actions taken during the re- 8 porting period; 9 ‘‘(ii) aggregate data regarding super- 10 visory concerns examiners have issued in 11 writing to the boards of regulated institu- 12 tions during the reporting period; 13 ‘‘(iii) supervisory observations by the 14 regulator on particular areas and topics of 15 concern identified through the examination 16 and supervisory process; and 17 ‘‘(iv) a description of the regulator’s 18 exercise of all available tools beyond impos- 19 ing public fines to ensure compliance with 20 all applicable laws and regulations, as well 21 as actions to ensure accountability for cul- 22 pable executives; 23 ‘‘(C) emerging risks that may affect depos- 24 itory institutions and potential threats to the fi- 25 VerDate Sep 11 2014 23:08 Jan 14, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4841.RFS H4841 pamtmann on DSKBC07HB2PROD with BILLS 4 HR 4841 RFS nancial stability of the United States, and any 1 actions the regulator took in coordination with 2 the Office of Financial Research, to identify 3 and mitigate those threats; 4 ‘‘(D) any recent actions taken by the regu- 5 lator as a voting member of the Financial Sta- 6 bility Oversight Council and any updates re- 7 lated to authorities the regulator has under title 8 I or title VIII of this Act with respect to en- 9 hanced prudential standards and supervision of 10 large bank holding companies and firms des- 11 ignated by the Financial Stability Oversight 12 Council; 13 ‘‘(E) the implementation of the regulator’s 14 diversity and inclusion efforts, including its im- 15 plementation of section 342 of this Act and the 16 regulator’s compliance with section 308 of the 17 Financial Institutions Reform, Recovery, and 18 Enforcement Act of 1989 with respect to mi- 19 nority depository institutions; 20 ‘‘(F) the implementation of the Community 21 Reinvestment Act of 1977, including informa- 22 tion on examinations, guidance, and regula- 23 tions; 24 VerDate Sep 11 2014 23:08 Jan 14, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4841.RFS H4841 pamtmann on DSKBC07HB2PROD with BILLS 5 HR 4841 RFS ‘‘(G) any mandatory provision of law that 1 has not been implemented yet by the regulator, 2 including the date on which the mandatory pro- 3 vision will be implemented; 4 ‘‘(H) an overview of the mergers and ac- 5 quisitions process, including data and descrip- 6 tions of any mergers and acquisitions approved 7 during the reporting period; 8 ‘‘(I) examinations for Bank Secrecy Act 9 and anti-money laundering compliance, as well 10 as coordination with the Financial Crimes En- 11 forcement Network and appropriate commu- 12 nication with depository institutions and credit 13 unions; 14 ‘‘(J) the utilization of financial technology 15 as it relates to depository institution holding 16 companies, depository institutions, and credit 17 unions regulated by the regulator, including the 18 use of various technologies by depository insti- 19 tutions and credit unions as well as partner- 20 ships with third-party companies; 21 ‘‘(K) cybersecurity of depository institution 22 holding companies, depository institutions, and 23 credit unions, including steps taken to enhance 24 VerDate Sep 11 2014 23:08 Jan 14, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4841.RFS H4841 pamtmann on DSKBC07HB2PROD with BILLS 6 HR 4841 RFS cyber readiness and strengthen the protection 1 of consumer data; and 2 ‘‘(L) compliance with chapter 5 of title 5, 3 United States Code (commonly referred to as 4 the ‘Administrative Procedure Act’) and chap- 5 ter 8 of title 5, United States Code (commonly 6 referred to as the ‘Congressional Review Act’), 7 as well as all guidance documents and 8 rulemakings issued by the prudential regulator 9 in the previous 6-month period. 10 ‘‘(3) CONFIDENTIALITY REQUIREMENT.—Each 11 report required under paragraph (1) shall include 12 only information that does not constitute confiden- 13 tial supervisory information about a specific institu- 14 tion, but may include aggregate information on an 15 industry-wide basis or on a segment of an industry. 16 ‘‘(b) TESTIMONY.— 17 ‘‘(1) IN GENERAL.—The prudential regulators 18 shall each appear before the Committee on Banking, 19 Housing, and Urban Affairs of the Senate and the 20 Committee on Financial Services of the House of 21 Representatives at an annual hearing to testify with 22 respect to the reports required under subsection (a). 23 ‘‘(2) VICE CHAIRMAN FOR SUPERVISION.—The 24 Vice Chairman for Supervision of the Board of Gov- 25 VerDate Sep 11 2014 23:08 Jan 14, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4841.RFS H4841 pamtmann on DSKBC07HB2PROD with BILLS 7 HR 4841 RFS ernors shall appear before the Committee on Bank- 1 ing, Housing, and Urban Affairs of the Senate and 2 the Committee on Financial Services of the House of 3 Representatives at a semiannual hearing to testify 4 with respect to the reports required under subsection 5 (a). Any such appearance shall satisfy the require- 6 ments of section 10(12) of the Federal Reserve Act. 7 ‘‘(c) DEFINITIONS.—In this section: 8 ‘‘(1) BANK SECRECY ACT.—The term ‘Bank Se- 9 crecy Act’ means— 10 ‘‘(A) section 21 of the Federal Deposit In- 11 surance Act; 12 ‘‘(B) chapter 2 of title I of Public Law 91– 13 508; and 14 ‘‘(C) subchapter II of chapter 53 of title 15 31, United States Code; 16 ‘‘(2) G-SIB.—The term ‘G-SIB’ means a global 17 systemically important bank holding company, as 18 such term is defined under section 217.402 of title 19 12, Code of Federal Regulations. 20 ‘‘(3) PRUDENTIAL REGULATORS.—The term 21 ‘prudential regulators’ means the Vice Chairman for 22 Supervision of the Board of Governors, the Comp- 23 troller of the Currency, the Chairperson of the Cor- 24 VerDate Sep 11 2014 23:08 Jan 14, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H4841.RFS H4841 pamtmann on DSKBC07HB2PROD with BILLS 8 HR 4841 RFS poration, and the Chairman of the National Credit 1 Union Administration Board.’’. 2 (b) CLERICAL AMENDMENT.—The table of contents 3 under section 1(b) of the Dodd-Frank Wall Street Reform 4 and Consumer Protection Act is amended by inserting 5 after the item relating to section 628 the following: 6 ‘‘Sec. 629. Annual testimony of prudential regulators.’’. SEC. 3. DETERMINATION OF BUDGETARY EFFECTS. 7 The budgetary effects of this Act, for the purpose of 8 complying with the Statutory Pay-As-You-Go Act of 2010, 9 shall be determined by reference to the latest statement 10 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 11 Act, submitted for printing in the Congressional Record 12 by the Chairman of the House Budget Committee, pro- 13 vided that such statement has been submitted prior to the 14 vote on passage. 15 Passed the House of Representatives January 13, 2020. Attest: CHERYL L. JOHNSON, Clerk. VerDate Sep 11 2014 23:08 Jan 14, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H4841.RFS H4841 pamtmann on DSKBC07HB2PROD with BILLS