[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 405 Introduced in House (IH)]

103d CONGRESS
  1st Session
                               H. R. 405

 To require public disclosure of examination reports of certain failed 
                        depository institutions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 5, 1993

  Mr. Stark introduced the following bill; which was referred to the 
            Committee on Banking, Finance and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To require public disclosure of examination reports of certain failed 
                        depository institutions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bank and Thrift Disclosure Act of 
1993''.

SEC. 2. PUBLIC AVAILABILITY OF EXAMINATION INFORMATION.

    (a) In General.--Each appropriate banking agency shall make 
available to the public copies of reports of all examinations of each 
failed depository institution that received funds, as defined in 
section 6, or of a holding company of such institution, that was 
performed by that banking agency or its predecessor, during the 5-year 
period preceding the transfer, failure, or receipt of funds. Each 
appropriate banking agency other than the National Credit Union 
Administration Board shall consult with the Federal Deposit Insurance 
Corporation or the Resolution Trust Corporation prior to making such 
reports available to the public.
    (b) Delay of Publication.--
            (1) Threats to safety or soundness of institution.--If the 
        appropriate banking agency makes a determination in writing 
        that release of an examination report would seriously threaten 
        the safety or soundness of an insured depository institution, 
        such agency may initially delay release of the examination 
        report for a reasonable period of time, not to exceed 12 months 
        from the date of the transfer, failure, or receipt of funds 
        described in section 6. Such determination may be renewed on an 
        annual basis.
            (2) Ongoing investigations.--If the appropriate banking 
        agency or the Resolution Trust Corporation determines in 
        writing that release of a portion of an examination report 
        would hinder an ongoing investigation of alleged negligence, or 
        of other activity that would give rise to either administrative 
        or civil proceedings, the portion of the examination report 
        directly pertaining to the alleged negligence or other 
        activity, may be withheld from release during the 
        investigation, until a notice of charges is issued, a complaint 
        is filed, or for a period not to exceed 24 months from the date 
        of the transfer, failure, or receipt of funds described in 
        section 6, whichever is earlier.
            (3) Delay pending criminal investigation.--If the 
        appropriate banking agency and the Attorney General of the 
        United States or the attorney general of a State, in the case 
        of a State-chartered depository institution, jointly determine 
        that release of a portion of an examination report would hinder 
        an ongoing investigation of alleged criminal activity, the 
        portion of the examination report directly pertaining to the 
        alleged crime may be withheld from release until the 
        termination of such investigation, the issuance of an 
        indictment, or for a period of not to exceed 5 years from the 
        date of the transfer, failure or receipt of funds described in 
        section 6, whichever is earlier. The Attorney General of the 
        United States or the attorney general of a State shall provide 
        the Comptroller General of the United States with access to 
        information regarding any such criminal investigation, and 
        shall identify any law enforcement agencies or resources 
        assigned to the investigation.
    (c) Exclusion of Open Institutions.--
            (1) Open institutions.--This section shall not apply to any 
        open insured depository institution and shall not be construed 
        to require disclosure to the public of any report of 
        examination of any open insured depository institution.
            (2) Affiliated solvent institutions.--In connection with 
        the release of an examination report of a holding company of a 
        failed institution, nothing in this section shall be construed 
        as requiring the release of any examination report information 
        regarding any solvent depository institution that is also a 
        subsidiary of such holding company.

SEC. 3. PROHIBITION OF CONFIDENTIAL SETTLEMENTS.

    Notwithstanding any other provision of law or any rule, regulation, 
or order issued thereunder, all agreements or settlements of claims 
between the Resolution Trust Corporation or the Federal Deposit 
Insurance Corporation and any other party, where such agreement or 
claim relates to an institution described in section 6 shall be made 
available to the public.

SEC. 4. APPLICABILITY.

    The requirements of section 2 shall apply--
            (1) to any insured depository institution that has had its 
        assets or liabilities, or any part thereof, transferred to the 
        FSLIC Resolution Fund or the Resolution Trust Corporation;
            (2) to any member of the Bank Insurance Fund that has 
        failed and received funds, if during either the fiscal year in 
        which the institution failed or the fiscal year in which the 
        institution received funds, as defined in section 6, the Bank 
        Insurance Fund--
                    (A) had outstanding loans, or had otherwise 
                received funds, from the Department of the Treasury, 
                the Federal Financing Bank, or any Federal Reserve 
                bank; or
                    (B) had a negative fund balance;
            (3) to any member of the Savings Association Insurance Fund 
        that has failed and received funds, if during either the fiscal 
        year in which the institution failed or the fiscal year in 
        which the institution received funds, as defined in section 6, 
        the Savings Association Insurance Fund--
                    (A) had outstanding loans, or had otherwise 
                received funds, from the Department of the Treasury, 
                the Federal Financing Bank, or any Federal Reserve 
                bank; or
                    (B) had a negative fund balance; and
            (4) to any insured credit union that has failed and 
        received funds, if during either the fiscal year in which the 
        credit union failed or the fiscal year in which the credit 
        union received funds, as defined in section 6, the National 
        Credit Union Share Insurance Fund--
                    (A) had outstanding loans, or had otherwise 
                received funds, from the Department of the Treasury, 
                the Federal Financing Bank, or any Federal Reserve 
                Bank; or
                    (B) had a negative fund balance.

SEC. 5. REMOVAL OF CUSTOMER INFORMATION FROM EXAMINATION REPORTS.

    In making available reports of examinations under section 2, the 
appropriate Federal banking agency shall excise the following 
information:
            (1) Noninstitution-affiliated parties.--The names and all 
        other identifying information for all persons who are not 
        institution-affiliated parties of an insured depository 
        institution.
            (2) Institution-affiliated parties.--The names and any 
        information related to an institution-affiliated party that is 
        not relevant to the relationship between the insured depository 
        institution and the institution-affiliated party.
            (3) Open institutions.--The names and all other identifying 
        information pertaining to open insured depository institutions.
            (4) Examiners.--Any reference to the examiners and other 
        banking agency employees involved in the examination of the 
        insured depository institution.
            (5) Whistleblowers.--All references to persons or entities 
        that have provided information in confidence to a banking 
        agency which may be utilized to pursue a civil or criminal 
        action.

SEC. 6. DEFINITIONS.

    For purposes of this section--
            (1) an insured depository institution has ``failed'' if the 
        Federal Deposit Insurance Corporation, Resolution Trust 
        Corporation, or National Credit Union Administration Board--
                    (A) has been appointed as receiver or liquidator 
                for such institution; or
                    (B) has exercised the power to provide assistance 
                under section 13(c)(2) of the Federal Deposit Insurance 
                Act or the analogous powers under section 21A of the 
                Federal Home Loan Bank Act.
            (2) an insured depository institution has ``received 
        funds'' if the institution, its holding company, or an 
        acquiring institution receives cash or other valuable 
        consideration from the National Credit Union Administration 
        Board, the Resolution Trust Corporation, the Federal Deposit 
        Insurance Corporation, or any Federal Reserve bank that lends 
        for more than 30 days while the insured depository institution 
        is critically undercapitalized within the 1-year period prior 
        to the failure of the insured depository institution whether in 
        the form of a loan, a payment to depositors or other creditors, 
        the assumption of liabilities, or otherwise;
            (3) the term ``insured depository institution'' has the 
        same meaning as in section 3 of the Federal Deposit Insurance 
        Act, except that such term includes an insured credit union, as 
        defined in section 101 of the Federal Credit Union Act; and
            (4) the term ``appropriate banking agency'' means the 
        Federal Deposit Insurance Corporation, the Board of Governors 
        of the Federal Reserve System, the Comptroller of the Currency, 
        the Office of Thrift Supervision, or the National Credit Union 
        Administration Board, and, in the case of a State-chartered 
        depository institution, the appropriate State depository 
        institution regulatory agency.

SEC. 7. ADDITIONAL DISCLOSURES BY FDIC, NCUA, AND RTC.

    (a) Borrowers.--Not later than 6 months after being appointed 
receiver or liquidator for any failed institution that received funds, 
as defined in section 6, the Federal Deposit Insurance Corporation, 
National Credit Union Administration, or the Resolution Trust 
Corporation, as appropriate, shall make available to the public the 
name and loan balance of any borrower who--
            (1) was an executive officer, director, or principal 
        shareholder of the institution, or a related interest of any 
        such person, as such terms are defined in section 22(h) of the 
        Federal Reserve Act; and
            (2) at the time that the receiver was appointed, was more 
        than 90 days delinquent on a loan.
    (b) Transactions.--Not later than 12 months after being appointed 
receiver or liquidator for any failed institution that received funds, 
as defined in section 6, the Federal Deposit Insurance Corporation, the 
National Credit Union Administration Board, or the Resolution Trust 
Corporation shall make available, and update periodically thereafter, a 
list of pending and settled lawsuits brought by such agency involving 
transactions (other than those listed in subsection (a)) that caused a 
material loss to such institution or to the deposit insurance fund.

SEC. 8. GAO AUDITS.

    The Comptroller General shall selectively audit examination reports 
made available to the public by the appropriate Federal banking 
agencies under section 2, and disclosures made by the Federal Deposit 
Insurance Corporation, National Credit Union Administration, and 
Resolution Trust Corporation under section 7, to assess compliance with 
the requirements of those sections. The Comptroller General shall 
determine the nature, scope, terms, and conditions of audits conducted 
under this section.

                                 <all>