Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1910 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 1910
5	5	To amend the Financial Stability Act of 2010 to require certain large banking
6	6	institutions to have a Chief Risk Officer, and for other purposes.
7	7	IN THE HOUSE OF REPRESENTATIVES
8	8	MARCH6, 2025
9	9	Mr. C
10	10	ASTEN(for himself, Mr. SHERMAN, Mr. DAVIDSCOTTof Georgia, Mr.
11	11	G
12	12	REENof Texas, and Mr. TORRESof New York) introduced the following
13	13	bill; which was referred to the Committee on Financial Services
14	14	A BILL
15	15	To amend the Financial Stability Act of 2010 to require
16	16	certain large banking institutions to have a Chief Risk
17	17	Officer, and for other purposes.
18	18	Be it enacted by the Senate and House of Representa-1
19	19	tives of the United States of America in Congress assembled, 2
20	20	SECTION 1. SHORT TITLE. 3
21	21	This Act may be cited as the ‘‘Chief Risk Officer En-4
22	22	forcement and Accountability Act’’. 5
23	23	SEC. 2. CHIEF RISK OFFICER. 6
24	24	Section 165(h) of the Financial Stability Act of 2010 7
25	25	(12 U.S.C. 5365(h)) is amended— 8
26	26	(1) in paragraph (2)— 9
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29	29	•HR 1910 IH
30	30	(A) by striking ‘‘that is a publicly traded 1
31	31	company and’’ each place such term appears; 2
32	32	and 3
33	33	(B) by inserting ‘‘, and appoint a chief risk 4
34	34	officer, as set forth in paragraph (4)’’ after ‘‘as 5
35	35	set forth in paragraph (3)’’ each place such 6
36	36	term appears; 7
37	37	(2) by redesignating paragraph (4) as para-8
38	38	graph (7); and 9
39	39	(3) by inserting after paragraph (3) the fol-10
40	40	lowing: 11
41	41	‘‘(4) C
42	42	HIEF RISK OFFICER.— 12
43	43	‘‘(A) I
44	44	N GENERAL.—A chief risk officer re-13
45	45	quired by this subsection shall be appointed by 14
46	46	a company from among individuals with experi-15
47	47	ence in identifying, assessing, and managing 16
48	48	risk exposures of large, complex financial firms. 17
49	49	‘‘(B) R
50	50	ESPONSIBILITIES.—A chief risk of-18
51	51	ficer shall be responsible for overseeing the fol-19
52	52	lowing: 20
53	53	‘‘(i) The establishment of risk limits 21
54	54	on an enterprise-wide basis and the moni-22
55	55	toring of compliance with such limits. 23
56	56	‘‘(ii) The implementation of and ongo-24
57	57	ing compliance with the policies and proce-25
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60	60	•HR 1910 IH
61	61	dures establishing risk-management gov-1
62	62	ernance, risk-management procedures, and 2
63	63	risk-control infrastructure for the global 3
64	64	operations of the company. 4
65	65	‘‘(iii) The development and implemen-5
66	66	tation of the processes and systems for im-6
67	67	plementing and monitoring compliance 7
68	68	with the policies and procedures described 8
69	69	under clause (ii), including— 9
70	70	‘‘(I) processes and systems for 10
71	71	identifying and reporting risks and 11
72	72	risk-management deficiencies, includ-12
73	73	ing regarding emerging risks, and en-13
74	74	suring effective and timely implemen-14
75	75	tation of actions to address emerging 15
76	76	risks and risk-management defi-16
77	77	ciencies for the global operations of 17
78	78	the company; 18
79	79	‘‘(II) processes and systems for 19
80	80	establishing managerial and employee 20
81	81	responsibility for risk management; 21
82	82	‘‘(III) processes and systems for 22
83	83	ensuring the independence of the risk- 23
84	84	management function; and 24
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87	87	•HR 1910 IH
88	88	‘‘(IV) processes and systems to 1
89	89	integrate risk management and associ-2
90	90	ated controls with management goals 3
91	91	and the compensation structure of the 4
92	92	company for the global operations of 5
93	93	the company. 6
94	94	‘‘(iv) The management of risks and 7
95	95	risk controls within the parameters of the 8
96	96	company’s risk-control framework, and 9
97	97	monitoring and testing of the company’s 10
98	98	risk controls. 11
99	99	‘‘(C) R
100	100	EPORTING RESPONSIBILITIES .—A 12
101	101	chief risk officer shall— 13
102	102	‘‘(i) report directly to both the risk 14
103	103	committee described under paragraph (3) 15
104	104	and the chief executive officer of the com-16
105	105	pany; and 17
106	106	‘‘(ii) be responsible for reporting risk- 18
107	107	management deficiencies and emerging 19
108	108	risks to the risk committee described under 20
109	109	paragraph (3) and resolving risk-manage-21
110	110	ment deficiencies in a timely manner. 22
111	111	‘‘(D) V
112	112	ACANCIES.— 23
113	113	‘‘(i) N
114	114	OTIFICATION TO REGU -24
115	115	LATORS.—With respect to a chief risk offi-25
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118	118	•HR 1910 IH
119	119	cer required by this subsection, if the office 1
120	120	of a chief risk officer becomes vacant, the 2
121	121	company shall— 3
122	122	‘‘(I) not later than 24 hours after 4
123	123	such vacancy occurs, notify the pri-5
124	124	mary financial regulatory agency of 6
125	125	the company, the primary financial 7
126	126	regulatory agency of any depository 8
127	127	institution subsidiary of the company, 9
128	128	and any State agency with supervisory 10
129	129	authority over the company or any de-11
130	130	pository institution subsidiary of the 12
131	131	company of such vacancy; and 13
132	132	‘‘(II) not later than 7 days after 14
133	133	such vacancy occurs, submit a plan to 15
134	134	the primary financial regulatory agen-16
135	135	cy of the company, the primary finan-17
136	136	cial regulatory agency of any deposi-18
137	137	tory institution subsidiary of the com-19
138	138	pany, and any State agency with su-20
139	139	pervisory authority over the company 21
140	140	or any depository institution sub-22
141	141	sidiary of the company on how the 23
142	142	company will search for and promptly 24
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145	145	•HR 1910 IH
146	146	hire a well-qualified chief risk officer 1
147	147	to fill the vacancy. 2
148	148	‘‘(ii) F
149	149	AILURE TO FILL VACANCY .— 3
150	150	With respect to a vacancy described under 4
151	151	clause (i), if the company does not fill the 5
152	152	vacancy within 60 days of the vacancy oc-6
153	153	curring— 7
154	154	‘‘(I) the company shall notify the 8
155	155	public, including on the website of the 9
156	156	company, that the vacancy has existed 10
157	157	for more than 60 days; and 11
158	158	‘‘(II) the total assets of the com-12
159	159	pany may not exceed the total assets 13
160	160	of the company on the date the va-14
161	161	cancy occurred until such time as the 15
162	162	vacancy is filled. 16
163	163	‘‘(5) A
164	164	PPLICATION TO LARGE BANKS WITH NO 17
165	165	BANK HOLDING COMPANY .—The primary financial 18
166	166	regulatory agencies shall issue regulations requiring 19
167	167	each bank that does not have a bank holding com-20
168	168	pany and that has total consolidated assets of not 21
169	169	less than $50,000,000,000 to establish a risk com-22
170	170	mittee, as set forth in paragraph (3) and appoint a 23
171	171	chief risk officer, as set forth in paragraph (4). 24
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174	174	•HR 1910 IH
175	175	‘‘(6) PRIMARY FINANCIAL REGULATORY AGEN -1
176	176	CY FOR CERTAIN NONBANK FINANCIAL COMPA -2
177	177	NIES.—For purposes of this subsection, the primary 3
178	178	financial regulatory agency for a nonbank financial 4
179	179	company supervised by the Board of Governors shall 5
180	180	be the Board of Governors.’’. 6
181	181	Æ
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