Increasing Financial Regulatory Accountability and Transparency Act

IB Union Calendar No. 781 118TH CONGRESS 2D SESSION H. R. 3556 [Report No. 118–793, Part I] To amend the Federal financial laws to increase financial regulatory accountability and transparency, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 22, 2023 Mr. BARR (for himself, Mr. LOUDERMILK, Mr. FITZGERALD, Ms. DE LA CRUZ, and Mrs. KIM of California) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on Oversight and Accountability, and Rules, for a period to be subsequently determined by the Speaker, in each case for consider- ation of such provisions as fall within the jurisdiction of the committee concerned DECEMBER 4, 2024 Reported from the Committee on Financial Services with an amendment [Strike out all after the enacting clause and insert the part printed in italic] DECEMBER 4, 2024 Committee on Rules discharged DECEMBER 4, 2024 Referral to the Committee on Oversight and Accountability extended for a period ending not later than December 19, 2024 DECEMBER 19, 2024 Committee on Oversight and Accountability discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed [For text of introduced bill, see copy of bill as introduced on May 22, 2023] VerDate Sep 11 2014 04:55 Dec 27, 2024 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H3556.RH H3556 DMWilson on DSKJM0X7X2PROD with BILLS 2 •HR 3556 RH A BILL To amend the Federal financial laws to increase financial regulatory accountability and transparency, and for other purposes. VerDate Sep 11 2014 01:54 Dec 27, 2024 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H3556.RH H3556 DMWilson on DSKJM0X7X2PROD with BILLS 3 •HR 3556 RH 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; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the ‘‘In- 4 creasing Financial Regulatory Accountability and Trans- 5 parency Act’’. 6 (b) TABLE OF CONTENTS.—The table of contents for 7 this Act is as follows: 8 Sec. 1. Short title; table of contents. TITLE I—ENHANCING FDIC TRANSPARENCY Sec. 101. Federal Deposit Insurance Corporation transparency. TITLE II—ENHANCING FEDERAL RESERVE TRANSPARENCY Sec. 201. Federal Reserve transparency. TITLE III—ENHANCING FINANCIAL STABILITY OVERSIGHT COUNCIL TRANSPARENCY Sec. 301. FSOC transparency. TITLE IV—ESTABLISHING FEDERAL RESERVE VICE CHAIR FOR SUPERVISION EXPERIENCE REQUIREMENT Sec. 401. Establishment of requirements to be Vice Chairman for Supervision. TITLE V—BANKING REGULATOR ACCOUNTABILITY Sec. 501. Reports and testimony to Congress on supervision. TITLE I—ENHANCING FDIC 9 TRANSPARENCY 10 SEC. 101. FEDERAL DEPOSIT INSURANCE CORPORATION 11 TRANSPARENCY. 12 Section 13(c) of the Federal Deposit Insurance Act (12 13 U.S.C. 1823) is amended— 14 (1) in paragraph (1)(C), by inserting after 15 ‘‘taken’’ the following: ‘‘after notification to the Com- 16 VerDate Sep 11 2014 01:54 Dec 27, 2024 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H3556.RH H3556 DMWilson on DSKJM0X7X2PROD with BILLS 4 •HR 3556 RH mittee on Financial Services of the House of Rep- 1 resentatives and the Committee on Banking, Housing, 2 and Urban Affairs of the Senate and’’; 3 (2) in paragraph (4)— 4 (A) in subparagraph (B)(i)(I), by striking 5 ‘‘a present-value’’ and inserting ‘‘an expected 6 present-value’’; and 7 (B) in subparagraph (G)— 8 (i) in clause (i)— 9 (I) by inserting ‘‘after notification 10 to the Committee on Financial Services 11 of the House of Representatives and the 12 Committee on Banking, Housing, and 13 Urban Affairs of the Senate and’’ be- 14 fore ‘‘upon the’’; and 15 (II) in subclause (II), by striking 16 ‘‘would’’ and inserting ‘‘that can be 17 shown to’’; 18 (ii) in clause (iii)(I), by inserting be- 19 fore the semicolon the following: ‘‘, includ- 20 ing documentation of factors, empirical 21 analyses, and data that gave rise to the de- 22 termination’’; and 23 (iii) by adding at the end the fol- 24 lowing: 25 VerDate Sep 11 2014 01:54 Dec 27, 2024 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H3556.RH H3556 DMWilson on DSKJM0X7X2PROD with BILLS 5 •HR 3556 RH ‘‘(vi) ADDITIONAL REPORTS TO CON- 1 GRESS ON EMERGENCY DETERMINATIONS.— 2 ‘‘(I) IN GENERAL.—With respect 3 to each determination under clause (i), 4 the Board of Directors, the Board of 5 Governors of the Federal Reserve Sys- 6 tem, and the Secretary of the Treasury 7 shall each provide to the Committee on 8 Financial Services of the House of 9 Representatives and the Committee on 10 Banking, Housing, and Urban Affairs 11 of the Senate— 12 ‘‘(aa) not later than 3 days 13 after such determination, all docu- 14 mentation related to such deter- 15 mination, including staff analyses 16 and memoranda; and 17 ‘‘(bb) not later than 30 days 18 after such determination, any 19 analyses undertaken to justify 20 such determination, including 21 data, metrics used, and quan- 22 titative analyses undertaken. 23 ‘‘(II) INFORMATION REQUESTED 24 BY COMMITTEES.—The Secretary of the 25 VerDate Sep 11 2014 01:54 Dec 27, 2024 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H3556.RH H3556 DMWilson on DSKJM0X7X2PROD with BILLS 6 •HR 3556 RH Treasury shall provide the Committee 1 on Financial Services of the House of 2 Representatives and the Committee on 3 Banking, Housing, and Urban Affairs 4 of the Senate with such additional in- 5 formation related to a determination 6 under clause (i) as the committees may 7 request. The Secretary of the Treasury 8 may submit, with such information, a 9 written request and justification for 10 the committees to treat the information 11 confidentially.’’; and 12 (3) in paragraph (8)(B), after ‘‘in writing’’ by 13 inserting ‘‘, shall include details of factors that led to 14 the determination and analyses of those factors and 15 their implications’’. 16 TITLE II—ENHANCING FEDERAL 17 RESERVE TRANSPARENCY 18 SEC. 201. FEDERAL RESERVE TRANSPARENCY. 19 (a) FEDERAL RESERVE ACT.—The Federal Reserve 20 Act (12 U.S.C. 221 et seq.) is amended— 21 (1) in section 11— 22 (A) in the first subsection (s) (related to 23 ‘‘Federal Reserve Transparency’’)— 24 VerDate Sep 11 2014 01:54 Dec 27, 2024 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H3556.RH H3556 DMWilson on DSKJM0X7X2PROD with BILLS 7 •HR 3556 RH (i) in paragraph (2)(B), by striking 1 ‘‘eighth’’ and inserting ‘‘fourth’’; 2 (ii) in paragraph (5), by striking ‘‘24- 3 month’’ and inserting ‘‘12-month’’; and 4 (iii) in paragraph (7)— 5 (I) by striking ‘‘This subsection’’ 6 and inserting the following: 7 ‘‘(A) IN GENERAL.—This subsection’’; 8 (II) by inserting ‘‘public’’ before 9 ‘‘disclosure’’; and 10 (III) by adding at the end the fol- 11 lowing: 12 ‘‘(B) CONGRESSIONAL ACCESS TO INFORMA- 13 TION.— 14 ‘‘(i) IN GENERAL.—The Board shall, 15 upon request, make the nonpublic personal 16 information described under subparagraph 17 (A) available to the Committee on Finan- 18 cial Services of the House of Representatives 19 and the Committee on Banking, Housing, 20 and Urban Affairs of the Senate. 21 ‘‘(ii) CONFIDENTIALITY.—With respect 22 to a request described under clause (i), if 23 the Chairman of the Board determines that 24 any part of the requested information needs 25 VerDate Sep 11 2014 01:54 Dec 27, 2024 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H3556.RH H3556 DMWilson on DSKJM0X7X2PROD with BILLS 8 •HR 3556 RH to remain confidential and provides written 1 notice of such determination to the com- 2 mittee making such request, the Board shall 3 only make that part of the requested infor- 4 mation available to the chair and ranking 5 member of the committee.’’; and 6 (B) by redesignating the second subsection 7 (s) (relating to ‘‘Assessments, Fees, and Other 8 Charges’’) as subsection (t); and 9 (2) in section 13(3), by adding at the end the fol- 10 lowing: 11 ‘‘(F) CONGRESSIONAL ACCESS TO INFORMA- 12 TION.— 13 ‘‘(i) IN GENERAL.—The Board shall 14 make available to the Committee on Finan- 15 cial Services of the House of Representatives 16 and the Committee on Banking, Housing, 17 and Urban Affairs of the Senate informa- 18 tion requested by such committees related to 19 any credit facility established by or on be- 20 half of the Federal Reserve System or a 21 Federal reserve bank and authorized by the 22 Board under this paragraph. 23 ‘‘(ii) CONFIDENTIALITY.—With respect 24 to a request described under clause (i), if 25 VerDate Sep 11 2014 01:54 Dec 27, 2024 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6203 E:\BILLS\H3556.RH H3556 DMWilson on DSKJM0X7X2PROD with BILLS 9 •HR 3556 RH the Chairman of the Board determines that 1 any part of the requested information needs 2 to remain confidential and provides written 3 notice of such determination to the com- 4 mittee making such request, the Board shall 5 only make that part of the requested infor- 6 mation available to the chair and ranking 7 member of the committee.’’. 8 (b) DODD-FRANK WALL STREET REFORM AND CON- 9 SUMER PROTECTION ACT.—Title XI of the Dodd-Frank 10 Wall Street Reform and Consumer Protection Act is amend- 11 ed— 12 (1) in section 1104 (12 U.S.C. 5611)— 13 (A) in subsection (a)(2)— 14 (i) in subparagraph (A), by striking 15 ‘‘and’’ at the end; 16 (ii) by redesignating subparagraph (B) 17 as subparagraph (C); and 18 (iii) by inserting after subparagraph 19 (A) the following: 20 ‘‘(B) be transmitted to the chair and rank- 21 ing member of the Committee on Financial Serv- 22 ices of the House of Representatives and the 23 chair and ranking member of the Committee on 24 VerDate Sep 11 2014 01:54 Dec 27, 2024 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\H3556.RH H3556 DMWilson on DSKJM0X7X2PROD with BILLS 10 •HR 3556 RH Banking, Housing, and Urban Affairs of the 1 Senate; and’’; 2 (B) in subsection (b), by inserting after 3 ‘‘consent of the Secretary’’ the following: ‘‘and 4 notification to Congress’’; 5 (C) in subsection (c)(2), in the heading, by 6 striking ‘‘GOA’’ inserting ‘‘CONGRESSIONAL RE- 7 VIEW AND GAO’’; and 8 (D) by striking subsection (d); 9 (2) in section 1105 (12 U.S.C. 5612)— 10 (A) in subsection (c)— 11 (i) in paragraph (1)— 12 (I) by inserting ‘‘and upon notifi- 13 cation to Congress’’ after ‘‘with the 14 President’’; 15 (II) by striking ‘‘President may’’ 16 and inserting ‘‘President shall’’; and 17 (III) by striking ‘‘amount and a 18 request’’ and inserting ‘‘amount, and 19 include in such report the expected cost 20 to taxpayers and a detailed description 21 of the assumptions made and analyt- 22 ical tools used to calculate such ex- 23 pected cost, and a request’’; and 24 VerDate Sep 11 2014 01:54 Dec 27, 2024 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6203 E:\BILLS\H3556.RH H3556 DMWilson on DSKJM0X7X2PROD with BILLS 11 •HR 3556 RH (ii) in paragraph (2), by inserting 1 ‘‘and upon notification to Congress’’ after 2 ‘‘with the President’’; and 3 (B) in subsection (g), by amending para- 4 graph (3) to read as follows: 5 ‘‘(3) LIQUIDITY EVENT.—The term ‘liquidity 6 event’ shall have the definition given such term, joint- 7 ly, by the Board of Governors, the Corporation, and 8 the Secretary, by rule pursuant to notice and com- 9 ment.’’. 10 (c) TITLE 31.—Section 714(f)(3) of title 31, United 11 States Code, is amended— 12 (1) in subparagraph (B), by striking ‘‘legislative 13 or’’; and 14 (2) in subparagraph (C)(i), by striking ‘‘, in- 15 cluding to Congress,’’. 16 TITLE III—ENHANCING FINAN- 17 CIAL STABILITY OVERSIGHT 18 COUNCIL TRANSPARENCY 19 SEC. 301. FSOC TRANSPARENCY. 20 (a) FINANCIAL STABILITY ACT OF 2010.—The Finan- 21 cial Stability Act of 2010 (12 U.S.C. 5311 et seq.) is amend- 22 ed— 23 (1) in section 111— 24 (A) in subsection (b)(1)— 25 VerDate Sep 11 2014 01:54 Dec 27, 2024 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\H3556.RH H3556 DMWilson on DSKJM0X7X2PROD with BILLS 12 •HR 3556 RH (i) in subparagraph (I), by striking 1 ‘‘and’’ at the end; 2 (ii) in subparagraph (J), by striking 3 the period at the end and inserting ‘‘; and’’; 4 and 5 (iii) by adding at the end the fol- 6 lowing: 7 ‘‘(K) an independent member appointed by 8 the President, by and with the advice and con- 9 sent of the Senate, and not of the same political 10 party as the President.’’; 11 (B) in subsection (c)— 12 (i) in paragraph (1), by striking 13 ‘‘independent member’’ and inserting ‘‘inde- 14 pendent members’’; and 15 (ii) in paragraph (4)— 16 (I) in the heading, by striking 17 ‘‘INDEPENDENT MEMBER’’ and insert- 18 ing ‘‘INDEPENDENT MEMBERS’’; and 19 (II) by striking ‘‘subsection 20 (b)(1)(J)’’ and inserting ‘‘subpara- 21 graph (J) or (K) of subsection (b)(1)’’; 22 (C) by striking subsection (d); 23 (D) by redesignating subsections (e) through 24 (j) as subsections (d) through (i), respectively; 25 VerDate Sep 11 2014 01:54 Dec 27, 2024 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6203 E:\BILLS\H3556.RH H3556 DMWilson on DSKJM0X7X2PROD with BILLS 13 •HR 3556 RH (E) in subsection (d), as so redesignated, by 1 adding at the end the following: 2 ‘‘(3) NOTICE TO CONGRESS.—The Chairperson 3 shall notify the chair and ranking members of the 4 Committee on Financial Services of the House of Rep- 5 resentatives and the chair and ranking members of 6 the Committee on Banking, Housing, and Urban Af- 7 fairs of the Senate of a meeting at the same time as 8 the meeting participants are notified.’’; 9 (F) in subsection (f), as so redesignated, by 10 striking ‘‘, or to any special advisory, technical, 11 or professional committee appointed by the 12 Council, except that, if an advisory, technical, or 13 professional committee has one or more members 14 who are not employees of or affiliated with the 15 United States Government, the Council shall 16 publish a list of the names of the members of 17 such committee’’; 18 (G) in subsection (g), as so redesignated, by 19 inserting before the period at the end the fol- 20 lowing: ‘‘, but if such services, funds, facilities, 21 staff, or other support services are provided with 22 respect to any Council program or activity that 23 has, or is planned to have, duration of greater 24 VerDate Sep 11 2014 01:54 Dec 27, 2024 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6203 E:\BILLS\H3556.RH H3556 DMWilson on DSKJM0X7X2PROD with BILLS 14 •HR 3556 RH than 90 days, the Council shall notify Congress 1 of such provision’’; and 2 (H) in subsection (i), as so redesignated, by 3 adding at the end the following: ‘‘The Council 4 shall report on such detailed employees on a 5 monthly basis to Congress.’’; 6 (2) in section 112— 7 (A) in subsecti [Text truncated for display. 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