[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3330 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3330
To amend the Federal Deposit Insurance Act and the Federal Credit Union
Act to provide more effective reviews of losses in the Deposit
Insurance Fund and the Share Insurance Fund by the Inspectors General
of the several Federal banking agencies and the National Credit Union
Administration Board, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 24, 2009
Mr. Driehaus (for himself, Mr. Moore of Kansas, Mrs. Biggert, and Mr.
Lee of New York) introduced the following bill; which was referred to
the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal Deposit Insurance Act and the Federal Credit Union
Act to provide more effective reviews of losses in the Deposit
Insurance Fund and the Share Insurance Fund by the Inspectors General
of the several Federal banking agencies and the National Credit Union
Administration Board, and for other purposes.
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 ``Improved Oversight by Financial
Inspectors General Act of 2009''.
SEC. 2. AMENDMENT TO DEFINITION OF MATERIAL LOSS AND NONMATERIAL LOSSES
TO THE DEPOSIT INSURANCE FUND FOR PURPOSES OF INSPECTORS
GENERAL REVIEWS.
(a) In General.--Section 38(k) of the Federal Deposit Insurance Act
(U.S.C. 1831o(k)) is amended--
(1) in paragraph (2), by striking subparagraph (B) and
inserting the following new subparagraph:
``(B) Material loss defined.--The term `material
loss' means any estimated loss in excess of
$200,000,000, occurring after March 31, 2009.'';
(2) in that portion of paragraph (4)(A) that precedes
clause (i), by striking ``the report'' and inserting ``any
reports under this subsection on losses'';
(3) by striking paragraph (6);
(4) by redesignating paragraph (5) as paragraph (6); and
(5) by inserting after paragraph (4) the following new
paragraph:
``(5) Losses that are not material.--
``(A) Semiannual report.--For the 6-month period
ending on September 30, 2009, and each 6-month period
thereafter, the Inspector General of each Federal
banking agency shall--
``(i) identify losses estimated to be
incurred by the Deposit Insurance Fund during
that 6-month period with respect to insured
depository institutions supervised by such
Federal banking agency;
``(ii) for each loss to the Deposit
Insurance Fund (as a loss to such Fund is
defined in paragraph (2)(A)) that is not a
material loss, determine the grounds identified
by the Federal banking agency or State bank
supervisor under section 11(c)(5) for
appointing the Corporation as receiver and
whether any unusual circumstances exist that
might warrant an in-depth review of the loss;
and
``(iii) prepare a written report to the
appropriate Federal banking agency and for the
Congress on the results of the Inspector
General's determinations, including--
``(I) the identity of any loss that
warrants an in-depth review and the
reasons why such review is warranted,
or if the Inspector General determines
that no review is warranted, an
explanation of such determination; and
``(II) for each loss identified in
subclause (I) that warrants an in-depth
review, a date by which such review,
and a report on the review prepared in
a manner consistent with reports under
paragraph (1)(A), will be completed.
``(B) Deadline for semiannual report.--The
Inspector General of each Federal banking agency
shall--
``(i) comply with the semiannual report
requirements of paragraph (A) expeditiously,
and in any event within 90 days after the end
of the 6-month period covered by the report;
and
``(ii) provide a copy of the report to any
Member of Congress upon request.''.
(b) Technical and Conforming Amendment.--The heading for subsection
(k) of section 38 of the Federal Deposit Insurance Act (U.S.C.
1831o(k)) is amended--
(1) by striking ``Review'' and inserting ``Reviews''; and
(2) by striking ``Material Loss'' and inserting ``Losses''.
SEC. 3. AMENDMENT TO DEFINITION OF MATERIAL LOSS AND NONMATERIAL LOSSES
TO THE NATIONAL CREDIT UNION SHARE INSURANCE FUND FOR
PURPOSES OF INSPECTORS GENERAL REVIEWS.
(a) In General.--Subsection (j) of section 216 of the Federal
Credit Union Act (12 U.S.C. 1790d(j)) is amended to read as follows:
``(j) Reviews Required When Share Insurance Fund Experiences
Losses.--
``(1) In general.--If the Fund incurs a material loss with
respect to an insured credit union, the inspector general of
the Board shall--
``(A) make a written report to the Board reviewing
the Administration's supervision of the credit union
(including the Administration's implementation of this
section), which shall--
``(i) ascertain why the credit union's
problems resulted in a material loss to the
Fund; and
``(ii) make recommendations for preventing
any such loss in the future; and
``(B) provide a copy of the report to--
``(i) the Comptroller General of the United
States; (ii) the Corporation (if the agency is
not the Corporation);
``(ii) in the case of a State credit union,
the appropriate State supervisor; and
``(iii) upon request by any Member of
Congress, to that Member.
``(2) Material loss defined.--For purposes of determining
whether the Fund has incurred a material loss with respect to
an insured credit union, a loss is material if it exceeds the
sum of--
``(A) $25,000,000; and
``(B) an amount equal to 10 percent of the total
assets of the credit union at the time at which the
Board initiated assistance under section 1788 of this
title or was appointed liquidating agent.
``(3) Public disclosure required.--
``(A) In general.--The Board shall disclose a
report under this subsection upon request under section
552 of title 5 without excising--
``(i) any portion under section 552(b)(5)
of that title; or
``(ii) any information about the insured
credit union (other than trade secrets) or
paragraph (8) of section 552(b) of that title.
``(B) Exception.--Subparagraph (A) shall not be
construed as requiring the agency to disclose the name
of any customer of the insured credit union (other than
an institution-affiliated party), or information from
which such a person's identity could reasonably be
ascertained.
``(4) Losses that are not material.--
``(A) Semiannual report.--For the 6-month period
ending on September 30, 2009, and each 6-month period
thereafter, the Inspector General of the Board shall--
``(i) identify losses estimated to be
incurred by the Fund during that 6-month period
with respect to insured credit unions;
``(ii) for each loss to the Fund that is
not a material loss, determine the grounds
identified by the Board or the State official
having jurisdiction over a State credit union
for appointing the Board the liquidating agent
for any Federal or State credit union and
whether any unusual circumstances exist that
might warrant an in-depth review of the loss;
and
``(iii) prepare a written report to the
Board and for the Congress on the results of
the Inspector General's determinations,
including--
``(I) the identity of any loss that
warrants an in-depth review and the
reasons why such review is warranted,
or if the Inspector General determines
that no review is warranted, an
explanation of such determination; and
``(II) for each loss identified in
subclause (I) that warrants an in-depth
review, a date by which such review,
and a report on the review prepared in
a manner consistent with reports under
paragraph (1)(A), will be completed.
``(B) Deadline for semiannual report.--The
Inspector General of the Board shall--
``(i) comply with the semiannual report
requirements of paragraph (A) expeditiously,
and in any event within 90 days after the end
of the 6-month period covered by the report;
and
``(ii) provide a copy of the report to any
Member of Congress upon request.
``(5) GAO review.--The Comptroller General of the United
States shall, under such conditions as the Comptroller General
determines to be appropriate, review reports made under
paragraph (1), including the extent to which the Inspector
General of the Board complied with section 8L of the Inspector
General Act of 1978 with respect to each such report, and
recommend improvements in the supervision of insured credit
unions (including the implementation of this section).''.
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