Bill Overview
Title: Tracking Bad Actors Act of 2022
Description: This bill requires federal financial regulators to jointly publish a database of persons convicted or held liable in criminal, civil, or administrative actions regarding financial services that are brought by federal financial regulators, the Department of Justice, certain self-regulating organizations, or state or local agencies that voluntarily submit such information. The Government Accountability Office must report on the database five years after the database is operational.
Sponsors: Sen. Kennedy, John [R-LA]
Target Audience
Population: Individuals involved in financial services industry convicted or held liable for misconduct
Estimated Size: 300000
- The bill focuses on creating a database for persons convicted or held liable in financial services-related crimes or sanctions.
- The legislation has a broad scope, covering actions brought by federal financial regulators, the Department of Justice, self-regulating organizations, or state or local agencies if they choose to contribute.
- The population directly affected includes individuals in the financial services industry, particularly those involved in or under investigation for crimes or misconduct.
- The indirect effect extends to the broader public and financial industry stakeholders who rely on this information for transparency and trust in financial markets.
- The database aims to support financial regulators, offering them a centralized resource to identify individuals with a history of misconduct.
Reasoning
- The policy is primarily targeted at those who have had legal action taken against them in financial services, estimated around 300,000 in the U.S.
- It will indirectly affect the larger population involved in the financial industry and the general public by improving transparency and trust.
- The initial years of policy implementation may have a heightened impact on those directly involved as the database becomes operational and integrated into regulatory practices.
- Considering the limited budget, the direct impacts may not extend significantly to those outside this immediate target population initially.
- Wellbeing changes will likely vary, with those who have been monitored potentially facing a decrease in wellbeing due to increased scrutiny.
Simulated Interviews
Investment Banker (New York, NY)
Age: 42 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I believe this policy will bring more transparency and restore some trust in the financial markets.
- It could be beneficial as it ensures accountability among financial professionals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Compliance Officer (Chicago, IL)
Age: 35 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- This database will become a resourceful tool for compliance-related work.
- The availability of such information would streamline auditing processes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Retired Hedge Fund Manager (San Francisco, CA)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- I think it might create unnecessary hurdles for those who have served their penalties.
- While it's wisely intended, its misuse could have a negative impact on reintegrating professionals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 6 | 5 |
Financial Analyst (Austin, TX)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- This database could help a lot in conducting due diligence quicker and more effectively.
- It's a step toward more ethical business practices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Regulatory Attorney (Miami, FL)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- While transparency is good, there needs to be safeguards against misuse of information within the database.
- It could complicate defenses for clients and extend legal battles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Small Business Owner (Denver, CO)
Age: 45 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- This doesn't directly impact my business as I'm not involved in any financial misconduct.
- However, the increased trust in financial statements could be indirectly beneficial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
IT Specialist in Financial Industry (Atlanta, GA)
Age: 38 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 7/20
Statement of Opinion:
- I'm intrigued by the policy, as it might create more jobs in database management.
- The financial industry needs robust tracking for bad actors, and tech will play a key role in this.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Reformed Financial Executive (Los Angeles, CA)
Age: 52 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- While aiming for positive change, this could put undue punishment on individuals trying to reform.
- Long-term impacts could include restricting career opportunities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Entrepreneur (Phoenix, AZ)
Age: 30 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- The potential for misuse of such databases concerns me as an entrepreneur.
- Still, it might help build a trustworthy environment for financial tech ventures.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Finance Student (Boston, MA)
Age: 27 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- A centralized database like this could be a fantastic tool for learning and training in the field of risk management.
- It might set new precedents for how financial histories are used in educational settings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Cost Estimates
Year 1: $20000000 (Low: $15000000, High: $25000000)
Year 2: $5000000 (Low: $4000000, High: $6000000)
Year 3: $5000000 (Low: $4000000, High: $6000000)
Year 5: $5000000 (Low: $4000000, High: $6000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Coordination among federal and state agencies is crucial for data accuracy and comprehensiveness.
- Ensuring data is up-to-date, reliable, and secure is essential for the database's success and credibility.
- Privacy concerns need addressing to protect individuals' data while achieving transparency objectives.
- Regular updates and maintenance of the database are necessary to accommodate new entries and technological advancements.