HR3716

HR3716, the Systemic Risk Authority Transparency Act, was introduced in the House on June 4, 2025, and passed the House on December 1, 2025. It was subsequently received in the Senate and referred to the Committee on Banking, Housing, and Urban Affairs on December 2, 2025. The bill's current status is 'Referred to committee — early stage' in the Senate, indicating it has several legislative steps remaining before potential passage into law. This bill does not authorize or appropriate any specific funding amounts. Instead, it amends the Federal Deposit Insurance Act to require detailed reports from the Comptroller General of the United States (GAO) and appropriate federal banking agencies following a systemic risk determination related to a failed insured depository institution. These reports would cover the basis for the determination, actions taken, likely effects on incentives and conduct of institutions and depositors, mismanagement by executives and the board, compensation practices, supervisory shortcomings, and contributions from other entities like auditors, credit rating agencies, and emergency liquidity providers. The mechanism is increased regulatory oversight and transparency, not direct financial allocation. Structural winners are not directly created by this bill, as it focuses on post-failure analysis rather than preventative measures or direct financial support. However, increased scrutiny on bank failures could lead to more stringent regulatory environments for large financial institutions. This could indirectly affect major banks such as JPMorgan Chase ($JPM), Bank of America ($BAC), Wells Fargo ($WFC), Citigroup ($C), Goldman Sachs ($GS), and Morgan Stanley ($MS) by potentially increasing compliance costs or influencing their risk management strategies. The bill aims to identify shortcomings in financial oversight and institutional management, which could lead to future policy changes impacting the finance sector broadly. The Presidential Memorandum on large-scale energy and infrastructure development is not directly relevant to this bill, as HR3716 focuses on financial sector transparency and oversight, not infrastructure funding or energy policy. Given its early stage in the Senate committee, the bill's ultimate passage is uncertain. The referral to the Senate Banking, Housing, and Urban Affairs Committee is a standard procedural step. The bill's sponsor, Rep. Al Green, is a Democrat from Texas, and the bill passed the House with a vote of 51-0 in committee, suggesting bipartisan support in the House. However, Senate consideration can be a lengthy process, and the bill will need to be reported out of committee, pass a full Senate vote, and then be signed by the President to become law.