Overview
Title
To require certain entities to submit to Congress information on the Basel Committee on Bank Supervision, and for other purposes.
ELI5 AI
S. 940 is a bill that wants some big bank groups to tell Congress what they talk about in certain meetings to help everyone understand better. It makes sure important changes are shared and explained in a simple way.
Summary AI
S. 940, known as the "Transparency in Banking Act," aims to enhance transparency in the activities related to the Basel Committee on Bank Supervision. The bill requires the Board of Governors of the Federal Reserve System and other relevant entities to submit an annual report to Congress detailing their goals, attendees, problems, and standards considered in Basel meetings. It also mandates these entities to notify Congress of any significant changes to their plans and to include this information in annual testimonies before relevant Senate and House committees.
Published
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Bill Statistics
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AnalysisAI
Summary of the Bill
The proposed legislation, titled the "Transparency in Banking Act," aims to increase transparency by requiring several U.S. financial entities to regularly report to Congress about their activities related to the Basel Committee on Bank Supervision. These agencies include the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation. They are mandated to submit an annual report detailing their goals, the issues they plan to address, the standards considered, and other related activities. An additional requirement is to inform Congress within 30 days about any significant changes to the planned activities.
Significant Issues
Several issues arise from the bill's requirements. The most prominent among them is the challenge of adhering to the complex and detailed reporting requirements. Each entity must contribute to a joint report, which may result in inefficiencies or delays due to potential disagreements between parties. Furthermore, the bill does not clearly define what constitutes a "significant change in planned activities," potentially leading to inconsistent reporting and undermining transparency. Finally, the vagueness of some language used in the bill could result in misinterpretation or incomplete reporting.
Potential Impact on the Public
The bill is designed to enhance transparency and accountability within U.S. financial regulatory agencies by providing Congress—and thereby the public—with detailed information about international banking supervision activities. In theory, this information can lead to better-informed legislative oversight and decision-making, potentially leading to a more stable and responsive banking system. However, if the entities struggle to meet the stringent reporting requirements, there could be delays and inefficiencies that retract from these benefits.
Impact on Specific Stakeholders
For U.S. financial institutions and their stakeholders, this bill could offer a clearer understanding of how international banking standards will be applied domestically, potentially influencing compliance strategies and operational adjustments. On the other hand, the regulatory entities themselves may face increased burdens from the new reporting obligations, requiring more resources to ensure compliance with the bill's mandates.
For Congress, this bill could provide the necessary tools to perform more effective oversight of financial regulatory agencies, leading to more informed policy discussions. However, if the information provided is inconsistent or unclear due to the issues outlined, this purpose may not be fully realized.
In conclusion, while the "Transparency in Banking Act" proposes to bolster transparency and accountability, the effectiveness will largely depend on the execution and the ability of the involved entities to consistently meet the reporting standards set by the bill.
Issues
Section 2: The text contains many detailed and complex requirements that may be challenging for all entities involved to consistently follow, particularly regarding reporting deadlines and contents. This could lead to compliance issues and legal challenges.
Section 2: The lack of clarity about what constitutes a 'significant change in planned activities' could lead to inconsistent reporting to Congress, potentially undermining transparency and accountability.
Section 2: The mandate for multiple entities to submit a joint report could lead to inefficiencies or bureaucratic delays if there are disagreements among the entities, potentially delaying the delivery of critical information to Congress.
Section 2: The language used could be simplified to improve comprehension, as the current version is dense and may not be accessible to all readers, potentially leading to misinterpretation or oversight.
Section 2: The phrase 'economy in general' is vague and could be more specific to ensure the relevant economic aspects are reported, risking incomplete or unfocused reporting that may not meet Congress's informational needs.
Section 1: The section does not provide any specific details about the provisions of the Act, which makes it difficult to identify potential issues related to spending or favoritism. This lack of detail may leave room for interpretation and potential misuse.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the Act specifies that it will be known as the "Transparency in Banking Act."
2. Basel Committee on Bank Supervision Read Opens in new tab
Summary AI
The bill requires several U.S. financial agencies to submit an annual report to Congress and publish it online with details about their goals and activities related to the Basel Committee on Bank Supervision, such as meeting attendees, issues addressed, and new standards. It also mandates these agencies to inform Congress promptly about any significant changes and requires key officials to discuss these reports during their yearly testimonies before congressional committees.