Federal Reserve Loss Transparency Act

HR 5993, the Federal Reserve Loss Transparency Act, prohibits funding transfers to the Consumer Financial Protection Bureau (CFPB) if the Federal Reserve banks collectively incurred an operating loss in the prior quarter. The bill requires that such losses must first be offset by subsequent earnings before funding can resume. It also mandates that the Federal Reserve calculate its net earnings and capital using standard U.S. accounting rules (GAAP). This bill directly affects the CFPB's funding flow and the Federal Reserve's financial reporting practices.