The Systemic Risk Authority Transparency Act makes sure that when a bank fails, there is a thorough review and report on what happened. This helps ensure accountability and transparency in the banking industry.
Systemic Risk Authority Transparency Act This bill requires banking regulators to submit a report to Congress in the event of the failure of an insured depository institution that leads to a systemic risk determination by the Department of the Treasury. Regulators must report supervisory information relating to the institution, any mismanagement by the executives and the board, any shortcomings by the regulator, and recommendations to improve the safety and soundness of similarly situated institutions. This report must be made no later than 90 days after such a determination and again 210 days afterwards. The Governmental Accountability Office (GAO) must report on additional factors in its report regarding such a determination. Specifically, GAO must report on any mismanagement by the executives and board of the institution, a review of the institution's compensation practices, supervisory or regulatory shortcomings, actions taken by regulators, and other relevant information. The bill also requires this report to be made no later than 60 days after such a determination and again 180 days afterwards.