Title: GSIB Act of 2019
Policy area: Finance and Financial Sector

Summary:
Greater Supervision In Banking Act of 2019 or the GSIB Act of 2019
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, and employee diversity. They must also testify annually before Congress.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4966 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 4966

    To require the chief executive officers of global systemically 
    important bank holding companies to provide annual testimony to 
                   Congress, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 31, 2019

 Ms. Pressley introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
    To require the chief executive officers of global systemically 
    important bank holding companies to provide annual testimony to 
                   Congress, 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 2019'' or the ``GSIB Act of 2019''.

SEC. 2. ANNUAL TESTIMONY OF GSIB CEOS.

    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. ANNUAL TESTIMONY OF GSIB CEOS.

    ``(a) Annual Report.--Each global systemically important bank 
holding company shall issue an annual report to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives 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) the current rating of the company and each depository 
        bank subsidiary of the company under CAMELS or the LFI Ratings 
        System, or any subsequent summary supervisory ratings system, 
        and, if applicable, a general description of any outstanding 
        issues that have led to the downgrading of such a rating, and 
        how long such issues have been outstanding without being 
        adequately addressed;
            ``(3) with respect to each depository institution 
        subsidiary of the company, the number and geographic 
        distribution of the branches of such subsidiary;
            ``(4) 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);
            ``(5) with respect to each enforcement action described 
        under paragraph (3), the total number of consumers or investors 
        harmed by the conduct that was the basis for such enforcement 
        action;
            ``(6) the number of employees dismissed for misconduct, and 
        whether any such employees were company executives;
            ``(7) 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; and
                    ``(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;
            ``(8) the extent to which the company utilizes forced 
        arbitration clauses in contracts with consumers, employees, 
        investors, and contractors;
            ``(9) the company's compensation and clawback policies, 
        including how these policies are designed to promote 
        accountability of company executives and how the compensation 
        of the chief executive officer and other senior executives 
        compares to the median compensation of an employee of the 
        company;
            ``(10) with respect to compensation paid by the company--
                    ``(A) the average amount of compensation received 
                by each decile of employees; and
                    ``(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;
            ``(11) 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;
            ``(12) the company's approach to cybersecurity and 
        protecting consumer data;
            ``(13) 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; 
        and
            ``(14) a comparison of how the company's responses to 
        paragraphs (1) through (13) have changed over the last ten 
        years.
    ``(c) Testimony.--The chief executive officer of each global 
systemically important bank holding company shall appear before the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives at an 
annual hearing to testify with respect to the contents of the report 
required under subsection (a).
    ``(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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