GSIB Act of 2021
Bill: H.R.3948 | Sponsor: Rep. Pressley, Ayanna (D-MA)
Policy area: Finance and Financial Sector

Summary:
Greater Supervision In Banking Act of 2021 or the GSIB Act of 2021
This bill requires certain large bank holding companies (also known as global systemically important banks) to annually report on, among other things, their size and complexity, enforcement and regulatory actions taken against them, capital market activity, employee compensation, employee diversity, and environmental impacts.

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 2021'' or the ``GSIB Act of 2021''.

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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