H.R. 5993 — Introduced in House

I 118th CONGRESS 1st Session H. R. 5993 IN THE HOUSE OF REPRESENTATIVES October 19, 2023Mr. Hill introduced the following bill October 25, 2023Referred to the Committee on Financial Services A BILL To amend the Consumer Financial Protection Act of 2010 to clarify the funding of the Bureau of Consumer Financial Protection, and for other purposes. 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 and total capital using GAAP Section 7 of the Federal Reserve Act (12 U.S.C. 289 et seq.) is amended— (1) by redesignating the second subsection (b) (relating to the use of earnings transferred to the Secretary) and subsection (c) 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, net earnings and total capital shall be calculated in accordance with U.S. generally accepted accounting principles. .