Banking Regulator Accountability Act

I 118TH CONGRESS 1ST SESSION H. R. 3555 To enhance the reporting and testimony requirements for Federal banking agencies. IN THE HOUSE OF REPRESENTATIVES MAY 22, 2023 Ms. DE LA CRUZ (for herself and Mr. BARR) introduced the following bill; which was referred to the Committee on Financial Services A BILL To enhance the reporting and testimony requirements for Federal banking agencies. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Banking Regulator Ac- 4 countability Act’’. 5 SEC. 2. REPORTS AND TESTIMONY TO CONGRESS ON SU- 6 PERVISION. 7 (a) TESTIMONY AND REPORTS TO CONGRESS ON 8 FEDERAL RESERVE SYSTEM SUPERVISION.—Section 2B 9 VerDate Sep 11 2014 05:21 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 3555 IH of the Federal Reserve Act (12 U.S.C. 225b) is amended 1 by adding at the end the following: 2 ‘‘(d) SEMI-ANNUAL TESTIMONY AND REPORT TO 3 CONGRESS ON SUPERVISION.— 4 ‘‘(1) IN GENERAL.—The Vice Chairman for Su- 5 pervision shall submit a semi-annual report to the 6 Committee on Banking, Housing, and Urban Affairs 7 of the Senate and the Committee on Financial Serv- 8 ices of the House of Representatives regarding the 9 efforts, activities, objectives, and plans of the Board 10 with respect to the conduct of supervision and regu- 11 lation of depository institution holding companies 12 and other financial firms supervised by the Board. 13 ‘‘(2) MINIMUM CONTENTS.—At a minimum, 14 each report under paragraph (1) shall include— 15 ‘‘(A) conditions of financial firms, includ- 16 ing examination or inspection ratings, on an ag- 17 gregate basis by firm asset size; 18 ‘‘(B) granular data on outstanding mate- 19 rial supervisory determinations by type of deter- 20 mination, including the types of risks covered, 21 on an aggregate basis by firm asset size; 22 ‘‘(C) changes in the number and types of 23 outstanding material supervisory determinations 24 over the previous 5 years; 25 VerDate Sep 11 2014 05:21 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 3555 IH ‘‘(D) aggregate data on the ratings of fi- 1 nancial firms over the previous 3 years; 2 ‘‘(E) the number of informal and formal 3 enforcement actions, by type of enforcement 4 order and showing changes in the last 3 years, 5 against supervised financial firms on an aggre- 6 gate basis by firm asset size; and 7 ‘‘(F) a description of the organization of 8 the supervisory functions of the Board with re- 9 spect to financial firms, including information 10 on roles, responsibilities, accountability, and tal- 11 ent management. 12 ‘‘(3) CONFIDENTIAL REPORT.—Concurrent with 13 each report under paragraph (1), the Vice Chairman 14 for Supervision shall submit a confidential report to 15 the chair and ranking member of each committee de- 16 scribed under paragraph (1) identifying— 17 ‘‘(A) each supervised financial firm with 18 less than satisfactory examination or inspection 19 ratings; and 20 ‘‘(B) each supervised financial firm with 21 an active formal or informal enforcement ac- 22 tion, and the status of each provision of each 23 enforcement action.’’. 24 VerDate Sep 11 2014 05:21 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 3555 IH (b) TESTIMONY AND REPORTS TO CONGRESS ON 1 FEDERAL DEPOSIT INSURANCE CORPORATION SUPER- 2 VISION.—Section 17 of the Federal Deposit Insurance Act 3 (12 U.S.C. 1827) is amended by adding at the end the 4 following: 5 ‘‘(h) SEMI-ANNUAL TESTIMONY AND REPORT TO 6 CONGRESS ON SUPERVISION.— 7 ‘‘(1) APPEARANCES BEFORE CONGRESS.—The 8 Chairman of the Corporation shall appear before the 9 Committee on Banking, Housing, and Urban Affairs 10 of the Senate and the Committee on Financial Serv- 11 ices of the House of Representatives at semi-annual 12 hearings regarding the efforts, activities, objectives, 13 and plans of the Corporation with respect to the 14 conduct of supervision and regulation of depository 15 institutions supervised by the Corporation. 16 ‘‘(2) REPORT TO CONGRESS.— 17 ‘‘(A) IN GENERAL.—The Chairman of the 18 Corporation shall transmit to the Committee on 19 Banking, Housing, and Urban Affairs of the 20 Senate and the Committee on Financial Serv- 21 ices of the House of Representatives semi-an- 22 nual reports regarding the efforts, activities, ob- 23 jectives, and plans of the Corporation with re- 24 spect to the conduct of supervision and regula- 25 VerDate Sep 11 2014 05:21 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •HR 3555 IH tion of depository institutions supervised by the 1 Corporation. 2 ‘‘(B) MINIMUM CONTENTS.—At a min- 3 imum, each report under subparagraph (A) 4 shall include— 5 ‘‘(i) conditions of depository institu- 6 tions, including examination or inspection 7 ratings, on an aggregate basis by institu- 8 tion asset size; 9 ‘‘(ii) granular data on outstanding 10 material supervisory determinations by 11 type of determination, including the types 12 of risks covered, on an aggregate basis by 13 institution asset size; 14 ‘‘(iii) changes in the number and 15 types of outstanding material supervisory 16 determinations over the previous 5 years; 17 ‘‘(iv) aggregate data on the ratings of 18 depository institutions over the previous 3 19 years; 20 ‘‘(v) the number of informal and for- 21 mal enforcement actions, by type of en- 22 forcement order and showing changes in 23 the last 3 years, against supervised deposi- 24 VerDate Sep 11 2014 05:21 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •HR 3555 IH tory institutions on an aggregate basis by 1 institution asset size; and 2 ‘‘(vi) a description of the organization 3 of the supervisory functions of the Cor- 4 poration with respect to depository institu- 5 tions, including information on roles, re- 6 sponsibilities, accountability, and talent 7 management. 8 ‘‘(C) CONFIDENTIAL REPORT.—Concurrent 9 with each report under subparagraph (A), the 10 Chairman of the Corporation shall submit a 11 confidential report to the chair and ranking 12 member of each committee described under sub- 13 paragraph (A) identifying— 14 ‘‘(i) each supervised depository insti- 15 tution with less than satisfactory examina- 16 tion or inspection ratings; and 17 ‘‘(ii) each supervised depository insti- 18 tution with an active formal or informal 19 enforcement action, and the status of each 20 provision of each enforcement action.’’. 21 (c) TESTIMONY AND REPORTS TO CONGRESS ON 22 COMPTROLLER OF THE CURRENCY SUPERVISION.—The 23 second section 333 of the Revised Statutes of the United 24 VerDate Sep 11 2014 05:21 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •HR 3555 IH States (12 U.S.C. 14; relating to the annual report) is 1 amended— 2 (1) by striking ‘‘The Comptroller’’ and inserting 3 the following: 4 ‘‘(a) ANNUAL REPORT.—The Comptroller’’; and 5 (2) by adding at the end the following: 6 ‘‘(b) SEMI-ANNUAL TESTIMONY AND REPORT TO 7 CONGRESS ON SUPERVISION.— 8 ‘‘(1) APPEARANCES BEFORE CONGRESS.—The 9 Comptroller of the Currency shall appear before the 10 Committee on Banking, Housing, and Urban Affairs 11 of the Senate and the Committee on Financial Serv- 12 ices of the House of Representatives at semi-annual 13 hearings regarding the efforts, activities, objectives, 14 and plans of the Office of the Comptroller of the 15 Currency with respect to the conduct of supervision 16 and regulation of national banks and other financial 17 firms supervised by the Office of the Comptroller of 18 the Currency. 19 ‘‘(2) REPORT TO CONGRESS.— 20 ‘‘(A) IN GENERAL.—The Comptroller of 21 the Currency shall transmit to the Committee 22 on Banking, Housing, and Urban Affairs of the 23 Senate and the Committee on Financial Serv- 24 ices of the House of Representatives semi-an- 25 VerDate Sep 11 2014 05:21 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •HR 3555 IH nual reports regarding the efforts, activities, ob- 1 jectives, and plans of the Office of the Comp- 2 troller of the Currency with respect to the con- 3 duct of supervision and regulation of national 4 banks and other financial firms supervised by 5 the Office of the Comptroller of the Currency. 6 ‘‘(B) MINIMUM CONTENTS.—At a min- 7 imum, each report under subparagraph (A) 8 shall include— 9 ‘‘(i) conditions of national banks and 10 other financial firms, including examina- 11 tion or inspection ratings, on an aggregate 12 basis by asset size; 13 ‘‘(ii) granular data on outstanding 14 material supervisory determinations by 15 type of determination, including the types 16 of risks covered, on an aggregate basis by 17 asset size; 18 ‘‘(iii) changes in the number and 19 types of outstanding material supervisory 20 determinations over the previous 5 years; 21 ‘‘(iv) aggregate data on the ratings of 22 national banks and other financial firms 23 over the previous 3 years; 24 VerDate Sep 11 2014 05:21 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555 pbinns on DSKJLVW7X2PROD with $$_JOB 9 •HR 3555 IH ‘‘(v) the number of informal and for- 1 mal enforcement actions, by type of en- 2 forcement order and showing changes in 3 the last 3 years, against supervised na- 4 tional banks and other financial firms on 5 an aggregate basis by firm asset size; and 6 ‘‘(vi) a description of the organization 7 of the supervisory functions of the Office 8 of the Comptroller of the Currency with re- 9 spect to national banks and other financial 10 firms, including information on roles, re- 11 sponsibilities, accountability, and talent 12 management. 13 ‘‘(C) CONFIDENTIAL REPORT.—Concurrent 14 with each report under subparagraph (A), the 15 Comptroller of the Currency shall submit a con- 16 fidential report to the chair and ranking mem- 17 ber of each committee described under subpara- 18 graph (A) identifying— 19 ‘‘(i) each supervised national bank or 20 other financial firms with less than satis- 21 factory examination or inspection ratings; 22 and 23 ‘‘(ii) each supervised national bank or 24 other financial firms with an active formal 25 VerDate Sep 11 2014 05:21 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555 pbinns on DSKJLVW7X2PROD with $$_JOB 10 •HR 3555 IH or informal enforcement action, and the 1 status of each provision of each enforce- 2 ment action.’’. 3 (d) TESTIMONY AND REPORTS TO CONGRESS ON NA- 4 TIONAL CREDIT UNION ADMINISTRATION SUPER- 5 VISION.—Section 102 of the Federal Credit Union Act (12 6 U.S.C. 1752a) is amended by adding at the end the fol- 7 lowing: 8 ‘‘(g) SEMI-ANNUAL TESTIMONY AND REPORT TO 9 CONGRESS ON SUPERVISION.— 10 ‘‘(1) APPEARANCES BEFORE CONGRESS.—The 11 Chairman of the Board shall appear before the Com- 12 mittee on Banking, Housing, and Urban Affairs of 13 the Senate and the Committee on Financial Services 14 of the House of Representatives at semi-annual 15 hearings regarding the efforts, activities, objectives, 16 and plans of the Administration with respect to the 17 conduct of supervision and regulation of credit 18 unions supervised by the Administration. 19 ‘‘(2) REPORT TO CONGRESS.— 20 ‘‘(A) IN GENERAL.—The Chairman of the 21 Board shall transmit to the Committee on 22 Banking, Housing, and Urban Affairs of the 23 Senate and the Committee on Financial Serv- 24 ices of the House of Representatives semi-an- 25 VerDate Sep 11 2014 05:21 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555 pbinns on DSKJLVW7X2PROD with $$_JOB 11 •HR 3555 IH nual reports regarding the efforts, activities, ob- 1 jectives, and plans of the Administration with 2 respect to the conduct of supervision and regu- 3 lation of credit unions supervised by the Admin- 4 istration. 5 ‘‘(B) MINIMUM CONTENTS.—At a min- 6 imum, each report under subparagraph (A) 7 shall include— 8 ‘‘(i) conditions of credit unions, in- 9 cluding examination or inspection ratings, 10 on an aggregate basis by credit union asset 11 size; 12 ‘‘(ii) granular data on outstanding 13 material supervisory determinations by 14 type of determination, including the types 15 of risks covered, on an aggregate basis by 16 credit union asset size; 17 ‘‘(iii) changes in the number and 18 types of outstanding material supervisory 19 determinations over the previous 5 years; 20 ‘‘(iv) aggregate data on the ratings of 21 credit unions over the previous 3 years; 22 ‘‘(v) the number of informal and for- 23 mal enforcement actions, by type of en- 24 forcement order and showing changes in 25 VerDate Sep 11 2014 05:21 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3555.IH H3555 pbinns on DSKJLVW7X2PROD with $$_JOB 12 •HR 3555 IH the last 3 years, against supervised credit 1 unions on an aggregate basis by credit 2 union asset size; and 3 ‘‘(vi) a description of the organization 4 of the supervisory functions of the Board 5 with respect to credit unions, including in- 6 formation on roles, responsibilities, ac- 7 countability, and talent management. 8 ‘‘(C) CONFIDENTIAL REPORT.—Concurrent 9 with each report under subparagraph (A), the 10 Chairman of the Board shall submit a confiden- 11 tial report to the chair and ranking member of 12 each committee described under subparagraph 13 (A) identifying— 14 ‘‘(i) each supervised credit union with 15 less than satisfactory examination or in- 16 spection ratings; and 17 ‘‘(ii) each supervised credit union with 18 an active formal or informal enforcement 19 action, and the status of each provision of 20 each enforcement action.’’. 21 Æ VerDate Sep 11 2014 05:21 Jun 13, 2023 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6301 E:\BILLS\H3555.IH H3555 pbinns on DSKJLVW7X2PROD with $$_JOB