FOR IMMEDIATE RELEASE: June 4, 2025

CONTACT: Carter Dougherty, carter@ourfinancialsecurity.org

Support the Systemic Risk Authority Transparency Act

Statement from Oscar Valdés Viera, Private Equity and Capital Markets Policy Analyst:

Americans for Financial Reform endorses Rep. Green’s “Systemic Risk Authority Transparency Act” that would require banking agencies to report any future uses of the systemic risk exception under the Federal Deposit Insurance Act.

The systemic risk exception is just another mechanism to reward too-big-to-fail banks that pursue highly risky business strategies that can lead to bank failures that harm depositors and the economy. The 2023 banking crisis—marked by the failures of large banks like Silicon Valley Bank, Signature Bank, and First Republic Bank—highlighted the urgent need for greater transparency when extraordinary measures are taken.

Codifying prompt and detailed reporting practices will strengthen macroprudential regulation by adding needed transparency to the resolution process of failed insured depository institutions, shedding light on the incentives and behaviors that led to the failures, and examining potential mismanagement by bank executives and boards.

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