U.S. Rep. Ritchie Torres announced on Friday that he is filing three new pieces of federal legislation: the “Critical Bank Review Act,” the “Financial Stability Mandate Act” and the “Emergency Liquidity Act.” These new pieces of legislation follow the failures of Silicon Valley Bank in California and Signature Bank in the representative’s home state of New York.
The “Critical Bank Review Act” requires the U.S. Treasury Department, in consultation with banking regulators, to take inventory of and designate certain financial institutions as “sectorially critical.” Those identified institutions, under the legislation, would receive a higher level of federal oversight and regulatory supervision to help safeguard and insulate America’s critical sectors from a potential future bank collapse.
