BGOV Bill Analysis: H.R. 3716, Banking System Risk Transparency

Federal banking regulators would have to submit information to Congress if the Treasury Department invokes the systemic risk exception when responding to a troubled bank under H.R. 3716.

Under the emergency exception, the Federal Deposit Insurance Corporation can take certain actions to respond to a bank failure — such as guaranteeing the bank’s uninsured deposits — to prevent larger systemic risks from spreading to other financial institutions.

Rep. Al Green (D-Texas), the bill’s sponsor, introduced similar legislation (H.R. 4116) in 2023 in response to the back-to-back collapses of Silicon Valley Bank and Signature Bank. The FDIC invoked ...