Stop Executive Capture of Banking Regulators Act

Stop Executive Capture of Banking Regulators Act

This bill requires banking and financial regulatory entities to report to Congress prior to implementing a non-binding recommendation from the Financial Stability Oversight Council or contained in an Executive Order. This requirement applies to the Board Of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Federal Housing Finance Administration.   

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4737 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 4737

 To require Federal banking regulators to report on the implementation 
of recommendations from the FSOC Chairperson and Executive Orders, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 19, 2023

  Mr. Flood introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To require Federal banking regulators to report on the implementation 
of recommendations from the FSOC Chairperson and Executive Orders, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Executive Capture of Banking 
Regulators Act''.

SEC. 2. REPORT ON THE IMPLEMENTATION OF RECOMMENDATIONS FROM THE FSOC 
              CHAIRPERSON AND EXECUTIVE ORDERS.

    (a) Board of Governors of the Federal Reserve System.--Section 10 
of the Federal Reserve Act (12 U.S.C. 247b) is amended by inserting 
after paragraph (10) the following:
            ``(11) Report on the implementation of recommendations from 
        the fsoc chairperson and executive orders.--The Board of 
        Governors of the Federal Reserve System may not implement a 
        non-binding recommendation made by the Chairperson of the 
        Financial Stability Oversight Council or contained in an 
        Executive Order unless the Board of Governors first provides 
        the Committee on Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate with--
                    ``(A) notice that the Board of Governors intends to 
                implement such recommendation;
                    ``(B) a report containing the proposed 
                implementation by the Board of Governors and a 
                justification for such implementation; and
                    ``(C) upon request, not later than the end of the 
                120-day period beginning on the date of the notice 
                under subparagraph (A), testimony on such proposed 
                implementation.''.
    (b) Office of the Comptroller of the Currency.--Section 324 of the 
Revised Statutes of the United States (12 U.S.C. 1) is amended by 
adding at the end the following:
    ``(c) Report on the Implementation of Recommendations From the FSOC 
Chairperson and Executive Orders.--The Comptroller of the Currency may 
not implement a non-binding recommendation made by the Chairperson of 
the Financial Stability Oversight Council or contained in an Executive 
Order unless the Comptroller of the Currency first provides the 
Committee on Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate with--
            ``(1) notice that the Comptroller of the Currency intends 
        to implement such recommendation;
            ``(2) a report containing the proposed implementation by 
        the Comptroller of the Currency and a justification for such 
        implementation; and
            ``(3) upon request, not later than the end of the 120-day 
        period beginning on the date of the notice under paragraph (1), 
        testimony on such proposed implementation.''.
    (c) Federal Deposit Insurance Corporation.--Section 2 of the 
Federal Deposit Insurance Act (12 U.S.C. 1812) is amended by inserting 
after subsection (f) the following:
    ``(g) Report on the Implementation of Recommendations From the FSOC 
Chairperson and Executive Orders.--The Board of Directors of the 
Corporation may not implement a non-binding recommendation made by the 
Chairperson of the Financial Stability Oversight Council or contained 
in an Executive Order unless the Board of Directors first provides the 
Committee on Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate with--
            ``(1) notice that the Board of Directors intends to 
        implement such recommendation;
            ``(2) a report containing the proposed implementation by 
        the Board of Directors and a justification for such 
        implementation; and
            ``(3) upon request, not later than the end of the 120-day 
        period beginning on the date of the notice under paragraph (1), 
        testimony on such proposed implementation.''.
    (d) National Credit Union Administration.--Section 102 of the 
Federal Credit Union Act (12 U.S.C. 1752a) is amended by adding at the 
end the following:
    ``(g) Report on the Implementation of Recommendations From the FSOC 
Chairperson and Executive Orders.--The Board may not implement a non-
binding recommendation made by the Chairperson of the Financial 
Stability Oversight Council or contained in an Executive Order unless 
the Board first provides the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate with--
            ``(1) notice that the Board intends to implement such 
        recommendation;
            ``(2) a report containing the proposed implementation by 
        the Board and a justification for such implementation; and
            ``(3) upon request, not later than the end of the 120-day 
        period beginning on the date of the notice under paragraph (1), 
        testimony on such proposed implementation.''.
    (e) Federal Housing Finance Administration.--Section 1311 of the 
Housing and Community Development Act of 1992 (12 U.S.C. 4511) is 
amended by adding at the end the following:
    ``(d) Report on the Implementation of Recommendations From the FSOC 
Chairperson and Executive Orders.--The Director may not implement a 
non-binding recommendation made by the Chairperson of the Financial 
Stability Oversight Council or contained in an Executive Order unless 
the Director first provides the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate with--
            ``(1) notice that the Director intends to implement such 
        recommendation;
            ``(2) a report containing the proposed implementation by 
        the Director and a justification for such implementation; and
            ``(3) upon request, not later than the end of the 120-day 
        period beginning on the date of the notice under paragraph (1), 
        testimony on such proposed implementation.''.
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