Sponsors
The bill boosts speedier GAO and congressional oversight and transparency around systemic-risk designations and bank supervision while trading off greater exposure of confidential supervisory materials, potential diversion of agency resources during crises, concentrated access to sensitive materials, and higher legal risks.
Taxpayers and the public: GAO must review any systemic-risk determination and report to Congress within 60 and 180 days, creating faster external oversight of emergency banking rescues and decisions to designate institutions as systemically important.
Financial institutions, taxpayers, and Congress: Federal banking agencies must provide exam reports and supervisory communications (past 3 years), improving transparency about why a bank was treated as systemic and enabling more informed congressional oversight.
Bank customers and the financial system: Agency reports must analyze executive/board mismanagement and agency shortcomings and recommend reforms, which can identify root causes and spur changes to improve future safety and soundness.
Financial institutions and supervisors: Releasing examiner reports and supervisory communications could expose confidential supervisory strategies and privileged materials, potentially weakening enforcement effectiveness and supervisory leverage.
Taxpayers and financial stability: Producing detailed reports on tight timelines may divert agency resources from crisis management and supervision, risking short-term stability during emergencies.
Taxpayers and the public: Providing sensitive omitted materials only to committee leaders concentrates oversight access in a few members, raising concerns about equitable transparency and limiting broader congressional scrutiny.
Based on analysis of 2 sections of legislative text.
Introduced June 4, 2025 by Al Green · Last progress December 2, 2025
Requires the Government Accountability Office (GAO) and the relevant federal banking agency to produce and deliver timed reports to Congress whenever the statutory "systemic-risk" exception is invoked for an insured depository institution. Agencies must disclose supervisory materials and analyses (with permitted redactions and privilege protections), explain any supervisory failures or management problems that contributed to the institution’s distress, and propose corrective supervisory or legislative steps; limited deadline extensions and consolidation options are allowed to protect financial stability.