Bill Overview
Title: Financial Data Transparency Act of 2022
Description: This bill requires federal financial regulatory agencies to adopt specified data standards with respect to format, searchability, and transparency. The bill also decreases, beginning September 30, 2031, the cap on the surplus funds of the Federal Reserve banks. (Amounts exceeding this cap are deposited in the general fund of the Treasury.) The Government Accountability Office must report on the feasibility of applying the taxonomy established by this bill to the wider federal government.
Sponsors: Sen. Warner, Mark R. [D-VA]
Target Audience
Population: People impacted by federal financial regulations and monetary policy changes
Estimated Size: 334000000
- The bill impacts federal financial regulatory agencies as they must adopt new data standards for financial data, impacting the operations and technology used by these agencies.
- The cap reduction on Federal Reserve banks' surplus funds starting in 2031 affects the amount of funds available to these banks and could influence monetary policy and fiscal decisions affecting the economy.
- Entities and individuals that interact or comply with federal financial regulatory agencies, such as banks, investment firms, and large corporations, could be affected by the changes in how data is managed and reported.
- If the Government Accountability Office finds it feasible to apply the taxonomy more widely, other parts of the federal government and entities interacting with them may be affected in future legislation or regulations.
Reasoning
- The Financial Data Transparency Act primarily impacts agencies and financial institutions through regulatory compliance and data management changes, affecting IT systems and reporting processes rather than individual citizens directly.
- Because the policy involves adopting data standards, financial institutions may incur costs updating their systems. These costs could trickle down to consumers indirectly through changes in fees or service availability; however, the direct impact on individual wellbeing is likely limited.
- The surplus fund cap does not take effect until 2031, primarily affecting fiscal policy and Federal Reserve operations, which indirectly influences the macroeconomic environment. Thus, it may have little immediate impact on individual wellbeing scores.
- Financial institutions must comply with new standards, impacting their administrative processes. This may initially cause operational disruptions or changes but will enhance accountability and transparency in the long term.
Simulated Interviews
Financial Analyst (New York, NY)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- The policy is another compliance hurdle that banks need to clear, and it could result in added costs.
- Standardized data could ultimately make my job easier, if implemented well.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Small Business Owner (Chicago, IL)
Age: 55 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I don't see how this affects me directly, my bank takes care of all my reporting.
- Transparency in financial data is good but doesn't seem to impact my business operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Software Engineer (Austin, TX)
Age: 30 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- This is a great opportunity for our company to develop new software solutions.
- Increased demand for data transparency is something we anticipated and planned for.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Government Employee (Washington, D.C.)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This increases our workload, updating systems with new standards takes time.
- If successful, it could make oversight work more effective.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Data Scientist (San Francisco, CA)
Age: 25 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- This bill could lead to better data practices across the industry, improving accountability.
- While primarily affecting institutions, it could indirectly benefit consumers if transparency leads to better choices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Bank Manager (Miami, FL)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 9/20
Statement of Opinion:
- There will be initial challenges, but improved data transparency can help avoid compliance pitfalls.
- Increased transparency could enhance trust with clients over time.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Federal Reserve Economist (Philadelphia, PA)
Age: 50 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- The cap on surplus funds will need careful economic adjustment, but there's potential for better fiscal management.
- It's too early to see direct impacts, effects will be long-term.
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 | 9 | 8 |
Financial Consultant (Boston, MA)
Age: 35 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This presents a new area for advising businesses on compliance and transparency.
- I foresee some initial confusion, but ultimately positive changes in transparency.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 6 |
Retired (Seattle, WA)
Age: 70 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 14/20
Statement of Opinion:
- This doesn't impact my direct financial activities much, more transparency is always welcome.
- I expect gradual improvements in how financial information is reported.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Cryptocurrency Trader (Los Angeles, CA)
Age: 28 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- Any move towards standardized data that's compliant, including digital assets, is a positive step.
- Regulations will cause shifts in the market that need close watching but can offer better consistency.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 6 |
Cost Estimates
Year 1: $100000000 (Low: $80000000, High: $120000000)
Year 2: $90000000 (Low: $70000000, High: $110000000)
Year 3: $80000000 (Low: $60000000, High: $100000000)
Year 5: $70000000 (Low: $50000000, High: $90000000)
Year 10: $50000000 (Low: $30000000, High: $70000000)
Year 100: $10000000 (Low: $5000000, High: $20000000)
Key Considerations
- Consider the immediate fiscal impact of implementing new data standards versus the long-term benefits of increased transparency.
- Potential resistance from financial entities required to comply with new data standards could delay implementation.
- Monitoring and adjusting the surplus cap of the Federal Reserve could have broader implications on monetary policy.