Systemic Risk Authority Transparency Act

Floor Speech

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Mr. GREEN of Texas. Mr. Speaker, and still I rise.

Mr. Speaker, I thank Chairman Hill; the gentleman from Ohio (Mr. Davidson); and the ranking member for allowing me to carry and present the Systemic Risk Authority Transparency Act.

Mr. Speaker, following the failures of Silicon Valley Bank and Signature Bank in 2023, the Federal Deposit Insurance Corporation invoked the systemic risk exception to guarantee uninsured deposits at those banks. Before 2023, the systemic risk exception was invoked but five times, all occurring between September 2008 and March 2009.

Mr. Speaker, it is important to note at this point the importance of the knowledge of what has occurred in Congress. We call it institutional knowledge. Institutional knowledge is important because this legislation gives us the opportunity to explain why institutional knowledge can make a difference.

Because the Honorable Maxine Waters was present in 2008 and saw what occurred when banks were afraid to lend to each other, she was able to give the necessary input when we had the Silicon Valley and Signature Bank failures. She was able to give the necessary input to prevent a further run on banks in this country. Institutional knowledge should never be undervalued. We must maintain and keep our institutional knowledge.

To prevent further panic in the financial system following the collapse of Silicon Valley Bank and Signature Bank, the FDIC chose not to follow the typical resolution process for failed banks, in which a failed bank is immediately sold to a competitor.

The Systemic Risk Authority Transparency Act would continue this practice, requiring that for any use of a systemic risk exception, the Government Accountability Office would have to produce the same post- failure report within 60 days of invocation of a systemic risk exception and a more comprehensive report in 180 days.

We deserve transparency--we, the Members of Congress--but the people in this country deserve transparency also. It is this transparency that helps people to have the confidence in the system necessary to prevent runs on banks.

Again, I would want people to understand that institutional knowledge is a supreme exemplar of what can occur when we have these circumstances that require bold action, but you can't have bold action, Mr. Speaker, without bold people. I thank the ranking member for her bold action.

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