Bill · H.R. 1910· House(119-HR-1910)
Chief Risk Officer Enforcement and Accountability Act
- Introduced
- 3/6/2025
- Last activity
- 3/6/2025 — Referred to the House Committee on Financial Services.
- Sponsored by
- Sean Casten
- Cosponsors
- - 5 - 0
- Introduced
- In Committee
What this bill would do
This bill, titled the "Chief Risk Officer Enforcement and Accountability Act," seeks to amend the Financial Stability Act of 2010. It would require certain large banking institutions to appoint a chief risk officer. These officers must have experience in identifying, assessing, and managing risks for large, complex financial firms. The bill outlines specific responsibilities for these officers, such as overseeing risk limits and implementing risk-management procedures. It also establishes strict rules for notifying regulators when a vacancy occurs in the position. Finally, it includes penalties and restrictions if a vacancy remains unfilled for more than 60 days.
Yes· 3 of 8
Does this make what the government does easier for the public to see?+5
The bill requires companies to notify the public via their website if a chief risk officer vacancy lasts more than 60 days.
Does this give people more protection from unfair business practices?+4
The bill enhances financial stability through stricter risk management oversight and mandatory reporting of deficiencies.
Would households on low incomes be better off under this?+3
Enhanced banking risk management may contribute to overall financial system stability which benefits all households.
The opposite
Would business owners be better off under this?-2
The new regulatory requirements and asset growth restrictions may create operational hurdles for large financial institutions.
Is this likely to create jobs?-2
The bill restricts asset growth for large banks if a chief risk officer vacancy is not filled within 60 days.
Is this likely to grow the economy?-2
The bill limits a company's ability to increase its total assets if a chief risk officer vacancy remains unfilled for more than 60 days.
Who it would affect, and how
Potential Positive Impacts for People
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Enhanced Risk Oversight: The bill requires the appointment of a chief risk officer with specific experience in managing risks for large, complex financial firms (Section 2, paragraph 4A). This could lead to better management of financial risks.
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Comprehensive Risk Management: The chief risk officer is tasked with overseeing risk limits, implementing risk-management governance, and developing processes for identifying and reporting risks (Section 2, paragraph 4B). This oversight aims to address emerging risks and management deficiencies.
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Increased Accountability and Transparency: The bill requires the chief risk officer to report directly to both the risk committee and the chief executive officer (Section 2, paragraph 4C). Additionally, if a vacancy in the position lasts more than 60 days, the company must notify the public (Section 2, paragraph 4D).
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Rapid Response to Leadership Changes: Companies must notify regulators within 24 hours of a vacancy and submit a hiring plan within 7 days (Section 2, paragraph 4D). This ensures that leadership gaps are addressed quickly.
Potential Negative Impacts for People
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Restrictions on Company Growth: If a chief risk officer vacancy is not filled within 60 days, the company's total assets may not exceed the total assets held on the date the vacancy occurred until the position is filled (Section 2, paragraph 4D). This could limit a company's ability to grow during a vacancy.
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Increased Regulatory Requirements: Large banks that do not have a bank holding company and have total consolidated assets of at least $50,000,000,000 must establish a risk committee and appoint a chief risk officer (Section 2, paragraph 5). This imposes specific organizational and regulatory requirements on these institutions.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+3Good For Middle Class Households+3Good For Billionaires+2Good For High Income Households+2Good For High Net Worth Individuals+2Good For Ultra High Net Worth Individuals+2Good For Business Owners-2
- Governance And Ideology
- Improves Government Transparency+5
- Economy And Finance
- Improves Consumer Protection+4Improves Economic Growth-2Increases Job Creation-2
- 9/18/2025
- 1 Cosponsor added.
- 3/6/2025
- Referred to the House Committee on Financial Services.
- 4 Cosponsors added.
- Introduced in House
Bill FosterDemocrat · Illinois
Al GreenDemocrat · Texas
Brad ShermanDemocrat · California
David ScottDemocrat · Georgia
Ritchie TorresDemocrat · New York