[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9848 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 9848
To require the global systemically important bank holding companies to
provide annual reports to the Board of Governors of the Federal Reserve
System, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 25, 2024
Ms. Pressley introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To require the global systemically important bank holding companies to
provide annual reports to the Board of Governors of the Federal Reserve
System, 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 ``Greater Supervision In Banking Act
of 2024'' or the ``GSIB Act of 2024''.
SEC. 2. GSIB ANNUAL REPORTS.
The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) is
amended by adding at the end the following:
``SEC. 15. GSIB ANNUAL REPORTS.
``(a) Annual Report.--Each global systemically important bank
holding company shall issue an annual report to the Board containing a
description of the activities of the company during the previous year
and a description of the company's objectives and goals for the
following year.
``(b) Specific Contents.--Each report required under subsection (a)
shall include a description of--
``(1) the company's size and complexity, including a
listing of all company subsidiaries and their relationship to
specified company business lines;
``(2) with respect to each depository institution
subsidiary of the company, the number and geographic
distribution of the branches of such subsidiary;
``(3) any enforcement actions, including any consent orders
and settlements, against the company (including any affiliate
or subsidiary of the company), including enforcement actions
related to labor and health and safety law violations (in
addition to consumer protection);
``(4) with respect to each enforcement action described
under paragraph (3), the total number of consumers, employees,
or investors harmed by the conduct that was the basis for such
enforcement action;
``(5) the number of employees dismissed for misconduct, and
whether any such employees were company executives;
``(6) the company's capital market activities, including
with respect to securities (including underwriting, trading,
and securitization) and derivatives, including--
``(A) the trading desk structure of the company,
identifying each desk and the instruments traded or
held at each desk;
``(B) the average and standard deviation of a
metric of inventory, constructed using data on
individual trading desk positions, for long securities
positions, short securities positions, and derivatives,
at each individual trading desk for a quarterly period
six months prior to the reporting date;
``(C) how the company complies with restrictions
under section 13 of the Bank Holding Company Act of
1956 (commonly referred to as the `Volcker Rule') at
each trading desk, including a general description of
the methodology for determining reasonably expected
near term customer demand and for designing
compensation practices at the desk so as not to create
incentives for proprietary trading; and
``(D) the total profit or loss attributed to the
company's trading account, including a breakdown of
profit earned on fees, commissions, and spreads, and a
description of the source of trading account profit or
loss that cannot be attributed to fees, commissions,
and spreads;
``(7) the extent to which the company utilizes forced
arbitration clauses in contracts with consumers, employees,
investors, and contractors;
``(8) the company's compensation and clawback policies,
including--
``(A) how these policies are designed to promote
accountability of company executives;
``(B) how the compensation of the chief executive
officer and other senior executives compares to the
median compensation of an employee of the company; and
``(C) a detailed description of any stipulation
that third-party vendor of the company pays its
employees a minimum wage;
``(9) with respect to compensation paid by the company--
``(A) the average amount of compensation received
by each decile of employees;
``(B) a break down of the base pay and incentive
pay for each decile, including a descriptions of
metrics, sales goals, or cross selling required to be
met in order to qualify for the incentive or bonus pay;
``(C) the minimum wage received by employees; and
``(D) the number of employees who receive the
minimum wage;
``(10) the diversity of the directors of the company's
board and senior executives, the policies and practices
implemented at the company to promote diversity and inclusion
among the company's workforce, and the policies implemented by
the company to promote the use of diverse contractors,
including diverse asset managers, brokers and underwriters;
``(11) the company's approach to cybersecurity and
protecting consumer data;
``(12) the total number of whistleblower and ethics
complaints made by employees through internal company protocols
over the past year, what issues were involved in the
complaints, and what the resolutions of the complaints were;
``(13) the company's actions taken in relation to climate
risk and contribution to climate change, including--
``(A) any financed emissions targets set by the
company and whether they are aligned with the United
States obligations to hold global warming as close to
1.5 degrees Celsius as possible;
``(B) their reliance on offsets to achieve those
targets and the expected sources of those offsets;
``(C) amount of financing provided in the last year
and committed to in future years to companies involved
in fossil fuel expansion and any plans to phase out
financing to companies involved in fossil fuel
expansion; and
``(D) the projected effect of global failure to
achieve the science-based emissions targets on the
company's solvency, including the projected effect of 3
degrees Celsius or more of warming;
``(14) the company's involvement in projects that
contribute to or mitigate disproportionate environmental harms
to communities of color or indigenous peoples, or other forms
of environmental racism, including--
``(A) financing for oil and gas extraction, oil and
gas refineries, petrochemical plants and pipeline
projects located in low-income census tracts, majority-
minority census tracts, or on indigenous lands, or for
companies that build or operate these projects;
``(B) financing for deforestation and mining on
indigenous lands anywhere in the world;
``(C) impact on indigenous people's rights of any
nature-based offsets purchased by the company; and
``(D) any investments made or other actions taken
by the company to address and mitigate previous
financing of environmental racism, including but not
limited to efforts made to secure Free Prior and
Informed Consent; efforts made to compensate impacted
individuals living in close proximity to financed oil
and gas facilities or projects; and funds for site
cleanup;
``(15) the company's investments in, partnerships with, and
support provided to minority depository institutions and
community development financial institutions;
``(16) any merger or acquisition that was completed in the
previous year, including--
``(A) a description of how each merger or
acquisition affected the company's size and complexity;
``(B) an account of the retail branch closures that
resulted from the merger or acquisition;
``(C) a description of any regional markets that
experienced a change in market concentration, as
measured by the Herfindahl-Hirschman Index, resulting
from the merger or acquisition;
``(D) a description of any regional markets that
experienced a change in the company's regional share of
deposits resulting from the merger or acquisition;
``(E) a list of Federal or State government
agencies that approved the transaction; and
``(F) a description of any conditions placed by a
Federal or State government agency on the company when
the transaction was approved; and
``(17) a comparison of how the company's responses to
paragraphs (1) through (15) have changed over the last ten
years.
``(c) Public Availability of Reports.--The Board shall make the
reports received under this section available to the public, including
on the website of the Board.
``(d) Global Systemically Important Bank Holding Company Defined.--
In this section, the term `global systemically important bank holding
company' means a global systemically important bank holding company, as
such term is defined under section 217.402 of title 12, Code of Federal
Regulations.''.
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