Bailout Prevention Act of 2015

H.R. 2625, the Bailout Prevention Act of 2015, seeks to limit the Federal Reserve’s ability to provide emergency loans to failing financial institutions. The bill would require federal regulators to certify that a borrower is not insolvent before granting assistance and would mandate that these emergency loans carry a high interest rate—at least five percent above the cost of Treasury borrowing—to discourage their use. Additionally, the bill increases government transparency by requiring the Federal Reserve to publicly disclose details about its lending activities and borrowers within 60 days, significantly faster than the current one-year or two-year waiting periods.