Close the Shadow Banking Loophole Act

Hozzl · 2024-01-26T18:15:17Z

Explore the details of Senate Bill 3538 Close the Shadow Banking Loophole Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Finance and Financial Sector. Stay informed on legislative developments.

1/26/2024, 6:15 PM

Summary of Bill S 3538

Bill 118 s 3538, also known as the Close the Shadow Banking Loophole Act, is a piece of legislation introduced in the US Congress aimed at addressing issues related to shadow banking. Shadow banking refers to financial activities conducted by non-bank financial institutions that are not subject to the same regulations as traditional banks.

The main purpose of this bill is to close loopholes in the current regulatory framework that allow shadow banking entities to engage in risky practices without proper oversight. The bill seeks to enhance transparency and accountability in the shadow banking sector by requiring these entities to adhere to stricter reporting requirements and regulatory standards.

Specifically, the Close the Shadow Banking Loophole Act would require shadow banking entities to register with the Securities and Exchange Commission (SEC) and provide detailed information about their activities, assets, and liabilities. This increased transparency is intended to help regulators identify and address potential risks to the financial system posed by shadow banking activities. Additionally, the bill includes provisions to strengthen the oversight of money market funds, which are a key component of the shadow banking sector. Money market funds are investment vehicles that invest in short-term, low-risk securities and are often used by investors as a cash equivalent. The bill aims to reduce the systemic risk posed by money market funds by requiring them to maintain a minimum level of capital and liquidity. Overall, the Close the Shadow Banking Loophole Act represents a bipartisan effort to address the regulatory gaps that have allowed shadow banking entities to operate outside the traditional banking system. By increasing transparency and accountability in the shadow banking sector, the bill aims to enhance the stability and resilience of the financial system.

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Current Status of Bill S 3538

Bill S 3538 is currently in the status of Bill Introduced since December 14, 2023. Bill S 3538 was introduced during Congress 118 and was introduced to the Senate on December 14, 2023. Bill S 3538's most recent activity was Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. as of December 14, 2023

Bipartisan Support of Bill S 3538

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill S 3538

Primary Policy Focus

Finance and Financial Sector

Alternate Title(s) of Bill S 3538

Close the Shadow Banking Loophole ActClose the Shadow Banking Loophole ActA bill to address applications for deposit insurance submitted by industrial banks to the Federal Deposit Insurance Corporation, and for other purposes.

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