H.R. 3716 — Systemic Risk Authority Transparency Act

This section revises Government Accountability Office (GAO) review requirements and establishes new reporting requirements for the appropriate Federal banking agency following a systemic risk determination under the Federal Deposit Insurance Act (i.e., a determination by the FDIC Board of Directors, with concurrence from the primary regulator and Secretary of the Treasury, that FDIC assistance to a failing insured depository institution is necessary to avoid or mitigate systemic risk to financial stability). (As background, such determinations authorize open-bank assistance or protection of uninsured depositors beyond standard least-cost resolution requirements.) Specifically, the section (1) amends the GAO review provision to require reports to Congress within 60 days and 180 days after a determination, covering the basis and purpose of the determination, effects on insured depository institutions and uninsured depositors, executive/board mismanagement, compensation practices, supervisory shortcomings, regulator actions, and contributions from auditors, credit rating agencies, investment banks, or emergency liquidity facilities (e.g., Federal Reserve loans or Federal Home Loan Bank advances), while preserving agency enforcement authorities; and (2) requires the appropriate Federal banking agency to report to Congress within 90 days and 210 days after a determination (with possible 60-day extensions for financial stability priorities), disclosing redacted examination reports and formal communications from the prior three years, mismanagement analysis, supervisory shortcomings, failure dynamics, and recommendations to enhance safety and soundness, subject to privilege and Freedom of Information Act protections and maximum feasible public disclosure after committee consultation.