Kustoff Applauds Unanimous Committee Passage of Bill to Prevent Government Leaks
Washington, D.C. – U.S. Representative David Kustoff (TN-08), a member of the House Financial Services Committee, today applauded unanimous committee passage of the Prevention of Private Information Dissemination Act of 2017 (H.R. 4294). This legislation, which was introduced by Congressman Kustoff, establishes criminal penalties for the unauthorized disclosure of living will and stress test determinations by federal officials.
“The leak of private financial information has disruptive, market-moving implications,” said Congressman Kustoff. “We must ensure that sensitive market information is properly protected and federal officials who improperly disclose confidential data are punished. I am proud that this important bill will move forward to crack down on government leaks and prevent potential insider trading.”
Following the enactment of the Dodd-Frank Act, bank holding and certain nonbank companies, designated as systemically important financial institutions (SIFI), are required to submit annual reports to the Federal Reserve and Federal Deposit Insurance Company. These reports outlined the company’s strategy for potential bankruptcy in times of market stress.
As part of the “living wills” and “stress test” process, banks submit detailed information about their business including assets, trade secrets and other sensitive information to the Federal Reserve and Federal Deposit Insurance Corporation (FDIC). Ultimately, this information has the potential to be leaked by employees at these institutions and can be used by individuals to invest or divest in particular stocks.
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Congressman Kustoff is a member of the House Financial Services Committee, serving on three subcommittees for the 115th Congress: Financial Institutions and Consumer Credit, Oversight and Investigation and Terrorism and Illicit Finance. He previously served as the U.S. Attorney for the Western District of Tennessee under President George W. Bush.