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HR 3716

Systemic Risk Authority Transparency Act

119th Congress Introduced by Al Green

HR 3716 mandates timely reports from federal banking agencies on bank failures, enhancing transparency and accountability to protect depositors and improve oversight.

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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Bill Summary · HR 3716

Summary of HR 3716: Systemic Risk Authority Transparency Act

Purpose and Intent

The Systemic Risk Authority Transparency Act (HR 3716) aims to enhance transparency and accountability in the use of systemic risk authority related to the winding up of failed insured depository institutions. The bill seeks to ensure that Congress receives timely and detailed reports on the actions taken by federal banking agencies in response to bank failures, thereby improving oversight and regulatory practices.

Key Provisions

The bill proposes several amendments to the Federal Deposit Insurance Act, specifically focusing on the following areas:

  1. GAO Review Requirements:

    • The Comptroller General of the United States is mandated to conduct a review and report to Congress within 60 days of a determination under systemic risk authority, and again 180 days thereafter. The report must include:
      • The basis for the determination.
      • The purpose of actions taken.
      • The likely effects on insured depository institutions and uninsured depositors.
      • Any mismanagement by executives contributing to the institution's failure.
      • A review of compensation practices.
      • Supervisory or regulatory shortcomings by the relevant federal banking agency.
      • Actions taken by financial regulators related to the failure.

  2. Federal Banking Agency Reporting:

    • The appropriate federal banking agency must submit a report to Congress within 90 days of a determination under systemic risk authority, and again 210 days thereafter. This report should include:
      • Examination reports and communications from the previous three years related to the failed institution.
      • An analysis of mismanagement and regulatory shortcomings.
      • Recommendations for improving the safety and soundness of similar institutions.

  3. Transparency and Protection of Sensitive Information:

    • The bill emphasizes the need for transparency in reporting while protecting sensitive information. Federal banking agencies are required to publish materials from their reports as much as possible, while also consulting with congressional leaders on any omissions.

Who Would Be Affected?

The legislation primarily impacts:
- Federal banking agencies responsible for overseeing insured depository institutions.
- Insured depository institutions that may face failure and require winding up.
- Congress as it will receive detailed reports to enhance oversight.
- Uninsured depositors and the general public, who will benefit from increased transparency regarding bank failures.

Procedural Aspects and Timeline

  • Introduced: June 4, 2025
  • Reported (Amended): July 15, 2025, by the Committee on Financial Services (H. Rept. 119-206).
  • The bill was placed on the Union Calendar on July 15, 2025, indicating it is ready for consideration by the full House.

Conclusion

The Systemic Risk Authority Transparency Act seeks to bolster the accountability of federal banking regulators in the event of bank failures by mandating comprehensive reporting requirements. This legislation aims to enhance the safety and soundness of the banking system, ultimately protecting depositors and promoting financial stability.

Compiled from official sources — confirm details with the bill’s official record.

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