Systemic Risk Authority Transparency Act

Key Points

• When the government uses emergency powers to handle a bank failure that could hurt the wider economy, a nonpartisan watchdog must explain within 60 days and again at 6 months why it happened, what steps were taken, and the likely effects on banks and big depositors.
• The bank’s main regulator must release past exam reports and warning letters from the last 3 years, and spell out mismanagement by the bank’s leaders and any failures by regulators that added to the collapse.
• Reports must cover pay practices, board decisions, and the roles of auditors, credit raters, and lenders like the home loan bank system or the Federal Reserve, so the public can see the full picture.
• Most materials must be published, with personal customer details removed; regulators can delay up to 60 days in rare cases to protect stability, but must brief Congress and explain why.
• This does not change deposit insurance limits or create new bailouts; it adds sunlight and timelines that could discourage risky behavior and help families, workers, and small businesses understand what went wrong.