Section 1 Short title
This Act may be cited as the “Federal Reserve Loss Transparency Act”.
Federal Reserve Loss Transparency Act
A BILL
To amend the Consumer Financial Protection Act of 2010 to clarify the funding of the Bureau of Consumer Financial Protection.
Sec. 2 Bureau funding
Section 1017(a) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5497(a)) is amended—
by redesignating paragraphs (3) through (5) as paragraphs (4) through (6), respectively; and
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.”
Sec. 3 Calculation of net earnings using GAAP
Section 7 of the Federal Reserve Act is amended—
by redesignating the second subsection (b) (12 U.S.C. 290) (relating to the use of earnings transferred to the Secretary) and subsection (c) (12 U.S.C. 531) as subsections (c) and (d), respectively; and
by adding at the end the following:
“(e) Calculation of net earnings and total capital using GAAP—For purposes of this section, earnings and total capital shall be calculated in accordance with United States generally accepted accounting principles.”