Federal Reserve Loss Transparency Act

Bill: 117-s-4889
Sponsor: full_name: Sen. Hagerty, Bill [R-TN]
Introduced: 2022-09-20
Policy area: Finance and Financial Sector
Latest action: action_date: 2022-09-20
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2022-09-20
action_desc: Introduced in Senate
text: <p><b>Federal Reserve Loss Transparency Act </b></p> <p>This bill prohibits transfers to the Consumer Financial Protection Bureau from the Board of Governors of the Federal Reserve System if Federal Reserve banks incur specified quarterly operating losses. The bureau is directly funded through transfers from the board.</p>

tv_txt: II 117th CONGRESS 2d Session S. 4889 IN THE SENATE OF THE UNITED STATES September 20, 2022 Mr. Hagerty introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To amend the Consumer Financial Protection Act of 2010 to clarify the funding of the Bureau of Consumer Financial Protection.

1. Short title This Act may be cited as the Federal Reserve Loss Transparency Act . 2. Bureau funding Section 1017(a) of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5497(a) ) is amended— (1) by redesignating paragraphs (3) through (5) as paragraphs (4) through (6), respectively; and (2) by inserting after paragraph (2) the following: (3) Prohibition on transfer when the Federal reserve banks incur a loss Notwithstanding paragraph (1), no transfer may be made to the Bureau if the Federal reserve banks, in the aggregate, incurred an operating loss in the most recently completed calendar quarter until the loss is offset with subsequent earnings. . 3. Calculation of net earnings using GAAP Section 7 of the Federal Reserve Act is amended— (1) by redesignating the second subsection (b) ( 12 U.S.C. 290 ) (relating to the use of earnings transferred to the Secretary) and subsection (c) ( 12 U.S.C. 531 ) as subsections (c) and (d), respectively; and (2) by adding at the end the following: (e) Calculation of net earnings and total capital using GAAP For purposes of this section, earnings and total capital shall be calculated in accordance with United States generally accepted accounting principles. .