S. 940: Transparency in Banking Act

The Transparency in Banking Act aims to enhance the accountability and transparency of U.S. bank supervision by requiring certain government entities to provide detailed reports to Congress regarding their interactions with the Basel Committee on Bank Supervision. This committee is an international body that creates regulations and standards for banks to ensure financial stability globally. Here are the key components of the bill:

Annual Reporting Requirements

The following government agencies are tasked with joint reporting to Congress:

• Board of Governors of the Federal Reserve System
• Federal Reserve Bank of New York
• Office of the Comptroller of the Currency
• Federal Deposit Insurance Corporation

These agencies, in consultation with the Secretary of the Treasury, must submit a report by January 31 each year, which includes:

• Details on attendees from each agency at the Basel Committee meetings.
• Identification of various issues the agencies aim to address.
• Options they expect to consider in these meetings.
• Proposed standards that may affect the U.S. or U.S. businesses.
• Authority sources for implementing these proposed standards.
• Activities of all subcommittees related to the Basel Committee.

Notification of Significant Changes

In addition to the annual report, the agencies are required to notify Congress within 30 days of any significant changes to their planned activities related to the Basel Committee. This notification must encompass:

• Results from the meetings.
• General economic implications.
• A summary of meeting minutes, including proposed changes and recorded votes.
• Descriptions of proposals discussed in the meeting.
• Positions taken by the U.S. representatives present at the meetings.

Testimony Requirement

The Chair and Vice Chair for Supervision of the Board of Governors must include details from the annual report in their testimony before relevant Senate and House committees, specifically:

• Senate Committee on Banking, Housing, and Urban Affairs
• House Committee on Financial Services

Overall, the act is designed to ensure that the U.S. banking system remains transparent by providing Congress with comprehensive insights into how the U.S. engages with international banking regulations and standards.

Relevant Companies

• JPM - JPMorgan Chase & Co.: As a major U.S. bank, it may be directly impacted by changes in regulations proposed by the Basel Committee.
• BAC - Bank of America Corporation: This bank will need to adapt to any changes in standards set forth by the Basel Committee as reported annually.
• GS - The Goldman Sachs Group, Inc.: Goldman Sachs, being a significant player in the financial industry, could be affected by new compliance requirements stemming from the Basel discussions.