[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 386 Engrossed Amendment House (EAH)]

                In the House of Representatives, U. S.,

                                                           May 6, 2009.
    Resolved, That the bill from the Senate (S. 386) entitled ``An Act 
to improve enforcement of mortgage fraud, securities fraud, financial 
institution fraud, and other frauds related to federal assistance and 
relief programs, for the recovery of funds lost to these frauds, and 
for other purposes'', do pass with the following

                              AMENDMENTS:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fraud Enforcement and Recovery Act 
of 2009'' or ``FERA''.

SEC. 2. AMENDMENTS TO IMPROVE MORTGAGE, SECURITIES, COMMODITIES, AND 
              FINANCIAL FRAUD RECOVERY AND ENFORCEMENT.

    (a) Definition of Financial Institution Amended To Include Mortgage 
Lending Business.--Section 20 of title 18, United States Code, is 
amended--
            (1) in paragraph (8), by striking ``or'' after the 
        semicolon;
            (2) in paragraph (9), by striking the period and inserting 
        ``; or''; and
            (3) by inserting at the end the following:
            ``(10) a mortgage lending business (as defined in section 
        27 of this title) or any person or entity that makes in whole 
        or in part a federally related mortgage loan as defined in 
        section 3 of the Real Estate Settlement Procedures Act of 
        1974.''.
    (b) Mortgage Lending Business Defined.--
            (1) In general.--Chapter 1 of title 18, United States Code, 
        is amended by inserting after section 26 the following:
``Sec. 27. Mortgage lending business defined
    ``In this title, the term `mortgage lending business' means an 
organization which finances or refinances any debt secured by an 
interest in real estate, including private mortgage companies and any 
subsidiaries of such organizations, and whose activities affect 
interstate or foreign commerce.''.
            (2) Chapter analysis.--The chapter analysis for chapter 1 
        of title 18, United States Code, is amended by adding at the 
        end the following:

``27. Mortgage lending business defined.''.
    (c) False Statements in Mortgage Applications Amended To Include 
False Statements by Mortgage Brokers and Agents of Mortgage Lending 
Businesses.--Section 1014 of title 18, United States Code, is amended 
by--
            (1) striking ``or'' after ``the International Banking Act 
        of 1978),''; and
            (2) inserting after ``section 25(a) of the Federal Reserve 
        Act'' the following: ``, or a mortgage lending business, or any 
        person or entity that makes in whole or in part a federally 
        related mortgage loan as defined in section 3 of the Real 
        Estate Settlement Procedures Act of 1974''.
    (d) Major Fraud Against the Government Amended To Include Economic 
Relief and Troubled Asset Relief Program Funds.--Section 1031(a) of 
title 18, United States Code, is amended by--
            (1) inserting after ``or promises, in'' the following: 
        ``any grant, contract, subcontract, subsidy, loan, guarantee, 
        insurance, or other form of Federal assistance, including 
        through the Troubled Asset Relief Program, an economic 
        stimulus, recovery or rescue plan provided by the Government, 
        or the Government's purchase of any troubled asset as defined 
        in the Emergency Economic Stabilization Act of 2008, or in'';
            (2) striking ``the contract, subcontract'' and inserting 
        ``such grant, contract, subcontract, subsidy, loan, guarantee, 
        insurance, or other form of Federal assistance''; and
            (3) striking ``for such property or services''.
    (e) Securities Fraud Amended To Include Fraud Involving Options and 
Futures in Commodities.--
            (1) In general.--Section 1348 of title 18, United States 
        Code, is amended--
                    (A) in the caption, by inserting ``and 
                commodities'' after ``Securities'';
                    (B) in paragraph (1), by inserting ``any commodity 
                for future delivery, or any option on a commodity for 
                future delivery, or'' after ``any person in connection 
                with''; and
                    (C) in paragraph (2), by inserting ``any commodity 
                for future delivery, or any option on a commodity for 
                future delivery, or'' after ``in connection with the 
                purchase or sale of''.
            (2) Chapter analysis.--The item for section 1348 in the 
        chapter analysis for chapter 63 of title 18, United States 
        Code, is amended by inserting ``and commodities'' after 
        ``Securities''.
    (f) Money Laundering Amended To Define Proceeds of Specified 
Unlawful Activity.--
            (1) Money laundering.--Section 1956(c) of title 18, United 
        States Code, is amended--
                    (A) in paragraph (8), by striking the period and 
                inserting ``; and''; and
                    (B) by inserting at the end the following:
            ``(9) the term `proceeds' means any property derived from 
        or obtained or retained, directly or indirectly, through some 
        form of unlawful activity, including the gross receipts of such 
        activity.''.
            (2) Monetary transactions.--Section 1957(f) of title 18, 
        United States Code, is amended by striking paragraph (3) and 
        inserting the following:
            ``(3) the terms `specified unlawful activity' and 
        `proceeds' shall have the meaning given those terms in section 
        1956 of this title.''.
    (g) Sense of the Congress and Report Concerning Required Approval 
for Merger Cases.--
            (1) Sense of congress.--It is the sense of the Congress 
        that no prosecution of an offense under section 1956 or 1957 of 
        title 18, United States Code, should be undertaken in 
        combination with the prosecution of any other offense, without 
        prior approval of the Attorney General, the Deputy Attorney 
        General, the Assistant Attorney General in charge of the 
        Criminal Division, a Deputy Assistant Attorney General in the 
        Criminal Division, or the relevant United States Attorney, if 
        the conduct to be charged as ``specified unlawful activity'' in 
        connection with the offense under section 1956 or 1957 is so 
        closely connected with the conduct to be charged as the other 
        offense that there is no clear delineation between the two 
        offenses.
            (2) Report.--One year after the date of the enactment of 
        this Act, and at the end of each of the four succeeding one-
        year periods, the Attorney General shall report to the House 
        and Senate Committees on the Judiciary on efforts undertaken by 
        the Department of Justice to ensure that the review and 
        approval described in paragraph (1) takes place in all 
        appropriate cases. The report shall include the following:
                    (A) The number of prosecutions described in 
                paragraph (1) that were undertaken during the previous 
                one-year period after prior approval by an official 
                described in paragraph (1), classified by type of 
                offense and by the approving official.
                    (B) The number of prosecutions described in 
                paragraph (1) that were undertaken during the previous 
                one-year period without such prior approval, classified 
                by type of offense, and the reasons why such prior 
                approval was not obtained.
                    (C) The number of times during the previous year in 
                which an approval described in paragraph (1) was 
                denied.

SEC. 3. AUTHORIZATION OF ADDITIONAL FUNDING TO COMBAT MORTGAGE FRAUD, 
              SECURITIES AND COMMODITIES FRAUD, AND OTHER FRAUDS 
              INVOLVING FEDERAL ECONOMIC ASSISTANCE.

    (a) Authorization of Additional Appropriations for the Department 
of Justice.--
            (1) In general.--There is authorized to be appropriated to 
        the Attorney General, $165,000,000 for each of the fiscal years 
        2010 and 2011, for the purposes of investigations and 
        prosecutions and civil and administrative proceedings involving 
        Federal assistance programs and financial institutions, 
        including financial institutions to which this Act and 
        amendments made by this Act apply.
            (2) Allocations.--With respect to fiscal years 2010 and 
        2011, the amounts authorized to be appropriated under paragraph 
        (1) shall be allocated as follows:
                    (A) Federal Bureau of Investigation: $75,000,000 
                for fiscal year 2010 and $65,000,000 for fiscal year 
                2011, an appropriate percentage of which amounts shall 
                be used to investigate mortgage fraud.
                    (B) The offices of the United States Attorneys: 
                $50,000,000 for each fiscal year.
                    (C) The criminal division of the Department of 
                Justice: $20,000,000 for each fiscal year.
                    (D) The civil division of the Department of 
                Justice: $15,000,000 for each fiscal year.
                    (E) The tax division of the Department of Justice: 
                $5,000,000 for each fiscal year.
    (b) Authorization of Additional Appropriations for the Postal 
Inspection Service.--There is authorized to be appropriated to the 
Postal Inspection Service of the United States Postal Service, 
$30,000,000 for each of the fiscal years 2010 and 2011 for 
investigations involving Federal assistance programs and financial 
institutions, including financial institutions to which this Act and 
amendments made by this Act apply.
    (c) Authorization of Additional Appropriations for the Inspector 
General for the Department of Housing and Urban Development.--There is 
authorized to be appropriated to the Inspector General of the 
Department of Housing and Urban Development, $30,000,000 for each of 
the fiscal years 2010 and 2011 for investigations involving Federal 
assistance programs and financial institutions, including financial 
institutions to which this Act and amendments made by this Act apply.
    (d) Authorization of Additional Appropriations for the United 
States Secret Service.--There is authorized to be appropriated to the 
United States Secret Service of the Department of Homeland Security, 
$20,000,000 for each of the fiscal years 2010 and 2011 for 
investigations involving Federal assistance programs and financial 
institutions, including financial institutions to which this Act and 
amendments made by this Act apply.
    (e) Authorization of Additional Appropriations for the Securities 
and Exchange Commission.--
            (1) In general.--There is authorized to be appropriated to 
        the Securities and Exchange Commission, $20,000,000 for each of 
        the fiscal years 2010 and 2011 for investigations and 
        enforcement proceedings involving financial institutions, 
        including financial institutions to which this Act and 
        amendments made by this Act apply.
            (2) Inspector general.--There is authorized to be 
        appropriated to the Securities and Exchange Commission, 
        $1,000,000 for each of the fiscal years 2010 and 2011 for the 
        salaries and expenses of the Office of the Inspector General of 
        the Securities and Exchange Commission.
    (f) Use of Funds.--
            (1) In general.--The funds appropriated pursuant to 
        authorization under this section shall be limited to covering 
        the costs of each listed agency or department for investigating 
        possible criminal, civil, or administrative violations and for 
        criminal, civil, or administrative proceedings involving 
        financial crimes and crimes against Federal assistance 
        programs, including mortgage fraud, securities and commodities 
        fraud, financial institution fraud, and other frauds related to 
        Federal assistance and relief programs.
            (2) Funds for training and research.--Funds authorized to 
        be appropriated under this section may be used and expended for 
        programs for improving the detection, investigation, and 
        prosecution of economic crime including financial fraud and 
        mortgage fraud. Funds allocated under this section may be 
        allocated to programs which assist State and local criminal 
        justice agencies to develop, establish, and maintain 
        intelligence-focused policing strategies and related 
        information sharing; provide training and investigative support 
        services to State and local criminal justice agencies to 
        provide such agencies with skills and resources needed to 
        investigate and prosecute such criminal activities and related 
        criminal activities; provide research support, establish 
        partnerships, and provide other resources to aid State and 
        local criminal justice agencies to prevent, investigate, and 
        prosecute such criminal activities and related problems; 
        provide information and research to the general public to 
        facilitate the prevention of such criminal activities; and any 
        other programs specified by the Attorney General as furthering 
        the purposes of this Act.
    (g) Additional Nature of Authorizations; Availability.--The amounts 
authorized under this section are in addition to amounts otherwise 
authorized in other Acts and shall remain available until expended.
    (h) Report to Congress.--Following the final expenditure of all 
funds appropriated pursuant to authorization under this section, the 
Attorney General, in consultation with the United States Postal 
Inspection Service, the Inspector General for the Department of Housing 
and Urban Development, the Secretary of Homeland Security, and the 
Commissioner of the Securities and Exchange Commission, shall submit a 
report to Congress identifying--
            (1) the amounts expended under each of subsections (a), 
        (b), (c), (d), and (e) and a certification of compliance with 
        the requirements listed in subsection (f); and
            (2) the amounts recovered as a result of criminal or civil 
        restitution, fines, penalties, and other monetary recoveries 
        resulting from criminal, civil, or administrative proceedings 
        and settlements undertaken with funds authorized by this Act.

SEC. 4. CLARIFICATIONS TO THE FALSE CLAIMS ACT TO REFLECT THE ORIGINAL 
              INTENT OF THE LAW.

    (a) Clarification of the False Claims Act.--Section 3729 of title 
31, United States Code, is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Liability for Certain Acts.--
            ``(1) In general.--Subject to paragraph (2), any person 
        who--
                    ``(A) knowingly presents, or causes to be 
                presented, a false or fraudulent claim for payment or 
                approval;
                    ``(B) knowingly makes, uses, or causes to be made 
                or used, a false record or statement material to a 
                false or fraudulent claim;
                    ``(C) conspires to commit a violation of 
                subparagraph (A), (B), (D), (E), (F), or (G);
                    ``(D) has possession, custody, or control of 
                property or money used, or to be used, by the 
                Government and knowingly delivers, or causes to be 
                delivered, less than all of that money or property;
                    ``(E) is authorized to make or deliver a document 
                certifying receipt of property used, or to be used, by 
                the Government and, intending to defraud the 
                Government, makes or delivers the receipt without 
                completely knowing that the information on the receipt 
                is true;
                    ``(F) knowingly buys, or receives as a pledge of an 
                obligation or debt, public property from an officer or 
                employee of the Government, or a member of the Armed 
                Forces, who lawfully may not sell or pledge property; 
                or
                    ``(G) knowingly makes, uses, or causes to be made 
                or used, a false record or statement material to an 
                obligation to pay or transmit money or property to the 
                Government, or knowingly conceals or knowingly and 
                improperly avoids or decreases an obligation to pay or 
                transmit money or property to the Government,
        is liable to the United States Government for a civil penalty 
        of not less than $5,000 and not more than $10,000, as adjusted 
        by the Federal Civil Penalties Inflation Adjustment Act of 1990 
        (28 U.S.C. 2461 note; Public Law 104-410), plus 3 times the 
        amount of damages which the Government sustains because of the 
        act of that person.
            ``(2) Reduced damages.--If the court finds that--
                    ``(A) the person committing the violation of this 
                subsection furnished officials of the United States 
                responsible for investigating false claims violations 
                with all information known to such person about the 
                violation within 30 days after the date on which the 
                defendant first obtained the information;
                    ``(B) such person fully cooperated with any 
                Government investigation of such violation; and
                    ``(C) at the time such person furnished the United 
                States with the information about the violation, no 
                criminal prosecution, civil action, or administrative 
                action had commenced under this title with respect to 
                such violation, and the person did not have actual 
                knowledge of the existence of an investigation into 
                such violation,
        the court may assess not less than 2 times the amount of 
        damages which the Government sustains because of the act of 
        that person.
            ``(3) Costs of civil actions.--A person violating this 
        subsection shall also be liable to the United States Government 
        for the costs of a civil action brought to recover any such 
        penalty or damages.'';
            (2) by striking subsections (b) and (c) and inserting the 
        following:
    ``(b) Definitions.--For purposes of this section--
            ``(1) the terms `knowing' and `knowingly'--
                    ``(A) mean that a person, with respect to 
                information--
                            ``(i) has actual knowledge of the 
                        information;
                            ``(ii) acts in deliberate ignorance of the 
                        truth or falsity of the information; or
                            ``(iii) acts in reckless disregard of the 
                        truth or falsity of the information; and
                    ``(B) require no proof of specific intent to 
                defraud;
            ``(2) the term `claim'--
                    ``(A) means any request or demand, whether under a 
                contract or otherwise, for money or property and 
                whether or not the United States has title to the money 
                or property, that--
                            ``(i) is presented to an officer, employee, 
                        or agent of the United States; or
                            ``(ii) is made to a contractor, grantee, or 
                        other recipient, if the money or property is to 
                        be spent or used on the Government's behalf or 
                        to advance a Government program or interest, 
                        and if the United States Government--
                                    ``(I) provides or has provided any 
                                portion of the money or property 
                                requested or demanded; or
                                    ``(II) will reimburse such 
                                contractor, grantee, or other recipient 
                                for any portion of the money or 
                                property which is requested or 
                                demanded; and
                    ``(B) does not include requests or demands for 
                money or property that the Government has paid to an 
                individual as compensation for Federal employment or as 
                an income subsidy with no restrictions on that 
                individual's use of the money or property;
            ``(3) the term `obligation' means an established duty, 
        whether or not fixed, arising from an express or implied 
        contractual, grantor-grantee, or licensor-licensee 
        relationship, from a fee-based or similar relationship, from 
        statute or regulation, or from the retention of any 
        overpayment; and
            ``(4) the term `material' means having a natural tendency 
        to influence, or be capable of influencing, the payment or 
        receipt of money or property.'';
            (3) by redesignating subsections (d) and (e) as subsections 
        (c) and (d), respectively; and
            (4) in subsection (c), as redesignated, by striking 
        ``subparagraphs (A) through (C) of subsection (a)'' and 
        inserting ``subsection (a)(2)''.
    (b) Intervention by the Government.--Section 3731(b) of title 31, 
United States Code, is amended--
            (1) by redesignating subsection (c) as subsection (d);
            (2) by redesignating subsection (d) as subsection (e); and
            (3) by inserting the new subsection (c):
    ``(c) If the Government elects to intervene and proceed with an 
action brought under 3730(b), the Government may file its own complaint 
or amend the complaint of a person who has brought an action under 
section 3730(b) to clarify or add detail to the claims in which the 
Government is intervening and to add any additional claims with respect 
to which the Government contends it is entitled to relief. For statute 
of limitations purposes, any such Government pleading shall relate back 
to the filing date of the complaint of the person who originally 
brought the action, to the extent that the claim of the Government 
arises out of the conduct, transactions, or occurrences set forth, or 
attempted to be set forth, in the prior complaint of that person.''.
    (c) Civil Investigative Demands.--Section 3733 of title 31, United 
States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A)--
                                    (I) by inserting ``, or a designee 
                                (for purposes of this section),'' after 
                                ``Whenever the Attorney General''; and
                                    (II) by striking ``the Attorney 
                                General may, before commencing a civil 
                                proceeding under section 3730 or other 
                                false claims law,'' and inserting ``the 
                                Attorney General, or a designee, may, 
                                before commencing a civil proceeding 
                                under section 3730(a) or other false 
                                claims law, or making an election under 
                                section 3730(b),''; and
                            (ii) in the matter following subparagraph 
                        (D)--
                                    (I) by striking ``may not 
                                delegate'' and inserting ``may 
                                delegate''; and
                                    (II) by adding at the end the 
                                following: ``Any information obtained 
                                by the Attorney General or a designee 
                                of the Attorney General under this 
                                section may be shared with any qui tam 
                                relator if the Attorney General or 
                                designee determine it is necessary as 
                                part of any false claims act 
                                investigation.''; and
                    (B) in paragraph (2)(G), by striking the second 
                sentence;
            (2) in subsection (i)(2)--
                    (A) in subparagraph (B), by striking ``, who is 
                authorized for such use under regulations which the 
                Attorney General shall issue''; and
                    (B) in subparagraph (C), by striking ``Disclosure 
                of information to any such other agency shall be 
                allowed only upon application, made by the Attorney 
                General to a United States district court, showing 
                substantial need for the use of the information by such 
                agency in furtherance of its statutory 
                responsibilities.''; and
            (3) in subsection (l)--
                    (A) in paragraph (6), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (7), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(8) the term `official use' means any use that is 
        consistent with the law, and the regulations and policies of 
        the Department of Justice, including use in connection with 
        internal Department of Justice memoranda and reports; 
        communications between the Department of Justice and a Federal, 
        State, or local government agency, or a contractor of a 
        Federal, State, or local government agency, undertaken in 
        furtherance of a Department of Justice investigation or 
        prosecution of a case; interviews of any qui tam relator or 
        other witness; oral examinations; depositions; preparation for 
        and response to civil discovery requests; introduction into the 
        record of a case or proceeding; applications, motions, 
        memoranda and briefs submitted to a court or other tribunal; 
        and communications with Government investigators, auditors, 
        consultants and experts, the counsel of other parties, 
        arbitrators and mediators, concerning an investigation, case or 
        proceeding.''.
    (d) Relief From Retaliatory Actions.--Section 3730(h) of title 31, 
United States Code, is amended to read as follows:
    ``(h) Relief From Retaliatory Actions.--
            ``(1) In general.--Any employee, contractor, or agent shall 
        be entitled to all relief necessary to make that employee, 
        contractor, or agent whole, if that employee, contractor, or 
        agent is discharged, demoted, suspended, threatened, harassed, 
        or in any other manner discriminated against in the terms and 
        conditions of employment because of lawful acts done by the 
        employee, contractor, or agent on behalf of the employee, 
        contractor, or agent or associated others in furtherance of 
        other efforts to stop 1 or more violations of this subchapter.
            ``(2) Relief.--Relief under paragraph (1) shall include 
        reinstatement with the same seniority status that employee, 
        contractor, or agent would have had but for the discrimination, 
        2 times the amount of back pay, interest on the back pay, and 
        compensation for any special damages sustained as a result of 
        the discrimination, including litigation costs and reasonable 
        attorneys' fees. An action under this subsection may be brought 
        in the appropriate district court of the United States for the 
        relief provided in this subsection.''.
    (e) False Claims Jurisdiction.--Section 3732 of title 31, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(c) Service on State or Local Authorities.--With respect to any 
State or local government that is named as a co-plaintiff with the 
United States in an action brought under subsection (b), a seal on the 
action ordered by the court under section 3730(b) shall not preclude 
the Government or the person bringing the action from serving the 
complaint, any other pleadings, or the written disclosure of 
substantially all material evidence and information possessed by the 
person bringing the action on the law enforcement authorities that are 
authorized under the law of that State or local government to 
investigate and prosecute such actions on behalf of such governments, 
except that such seal applies to the law enforcement authorities so 
served to the same extent as the seal applies to other parties in the 
action.''.
    (f) Effective Date and Application.--The amendments made by this 
section shall take effect on the date of enactment of this Act and 
shall apply to conduct on or after the date of enactment, except that--
            (1) subparagraph (B) of section 3729(a)(1) of title 31, 
        United States Code, as added by subsection (a)(1), shall take 
        effect as if enacted on June 7, 2008, and apply to all claims 
        under the False Claims Act (31 U.S.C. 3729 et seq.) that are 
        pending on or after that date; and
            (2) section 3731(b) of title 31, as amended by subsection 
        (b); section 3733, of title 31, as amended by subsection (c); 
        and section 3732 of title 31, as amended by subsection (e); 
        shall apply to cases pending on the date of enactment.

SEC. 5. FINANCIAL CRISIS INQUIRY COMMISSION.

    (a) Establishment of Commission.--There is established in the 
legislative branch the Financial Crisis Inquiry Commission (in this 
section referred to as the ``Commission'') to examine the causes, 
domestic and global, of the current financial and economic crisis in 
the United States.
    (b) Composition of the Commission.--
            (1) Members.--The Commission shall be composed of 10 
        members, of whom--
                    (A) 3 members shall be appointed by the majority 
                leader of the Senate, in consultation with relevant 
                Committees;
                    (B) 3 members shall be appointed by the Speaker of 
                the House of Representatives, in consultation with 
                relevant Committees;
                    (C) 2 members shall be appointed by the minority 
                leader of the Senate, in consultation with relevant 
                Committees; and
                    (D) 2 members shall be appointed by the minority 
                leader of the House of Representatives, in consultation 
                with relevant Committees.
            (2) Qualifications; limitation.--
                    (A) In general.--It is the sense of the Congress 
                that individuals appointed to the Commission should be 
                prominent United States citizens with national 
                recognition and significant depth of experience in such 
                fields as banking, regulation of markets, taxation, 
                finance, economics, consumer protection, and housing.
                    (B) Limitation.--No person who is a member of 
                Congress or an officer or employee of the Federal 
                Government or any State or local government may serve 
                as a member of the Commission.
            (3) Chairperson; vice chairperson.--
                    (A) In general.--Subject to the requirements of 
                subparagraph (B), the Chairperson of the Commission 
                shall be selected jointly by the Majority Leader of the 
                Senate and the Speaker of the House of Representatives, 
                and the Vice Chairperson shall be selected jointly by 
                the Minority Leader of the Senate and the Minority 
                Leader of the House of Representatives.
                    (B) Political party affiliation.--The Chairperson 
                and Vice Chairperson of the Commission may not be from 
                the same political party.
            (4) Meetings, quorum; vacancies.--
                    (A) Meetings.--
                            (i) Initial meeting.--The initial meeting 
                        of the Commission shall be as soon as possible 
                        after a quorum of members have been appointed.
                            (ii) Subsequent meetings.--After the 
                        initial meeting of the Commission, the 
                        Commission shall meet upon the call of the 
                        Chairperson or a majority of its members.
                    (B) Quorum.--6 members of the Commission shall 
                constitute a quorum.
                    (C) Vacancies.--Any vacancy on the Commission 
                shall--
                            (i) not affect the powers of the 
                        Commission; and
                            (ii) be filled in the same manner in which 
                        the original appointment was made.
    (c) Functions of the Commission.--The functions of the Commission 
are--
            (1) to examine the causes of the current financial and 
        economic crisis in the United States, specifically the role 
        of--
                    (A) fraud and abuse in the financial sector, 
                including fraud and abuse towards consumers in the 
                mortgage sector;
                    (B) Federal and State financial regulators, 
                including the extent to which they enforced, or failed 
                to enforce statutory, regulatory, or supervisory 
                requirements;
                    (C) the global imbalance of savings, international 
                capital flows, and fiscal imbalances of various 
                governments;
                    (D) monetary policy and the availability and terms 
                of credit;
                    (E) accounting practices, including, mark-to-market 
                and fair value rules, and treatment of off-balance 
                sheet vehicles;
                    (F) tax treatment of financial products and 
                investments;
                    (G) capital requirements and regulations on 
                leverage and liquidity, including the capital 
                structures of regulated and non-regulated financial 
                entities;
                    (H) credit rating agencies in the financial system, 
                including, reliance on credit ratings by financial 
                institutions and Federal financial regulators, the use 
                of credit ratings in financial regulation, and the use 
                of credit ratings in the securitization markets;
                    (I) lending practices and securitization, including 
                the originate-to-distribute model for extending credit 
                and transferring risk;
                    (J) affiliations between insured depository 
                institutions and securities, insurance, and other types 
                of nonbanking companies;
                    (K) the concept that certain institutions are 
                ``too-big-to-fail'' and its impact on market 
                expectations;
                    (L) corporate governance, including the impact of 
                company conversions from partnerships to corporations;
                    (M) compensation structures;
                    (N) changes in compensation for employees of 
                financial companies, as compared to compensation for 
                others with similar skill sets in the labor market;
                    (O) the legal and regulatory structure of the 
                United States housing market;
                    (P) derivatives and unregulated financial products 
                and practices, including credit default swaps;
                    (Q) short-selling;
                    (R) financial institution reliance on numerical 
                models, including risk models and credit ratings;
                    (S) the legal and regulatory structure governing 
                financial institutions, including the extent to which 
                the structure creates the opportunity for financial 
                institutions to engage in regulatory arbitrage;
                    (T) the legal and regulatory structure governing 
                investor and mortrgagor protection;
                    (U) financial institutions and government-sponsored 
                enterprises; and
                    (V) the quality of due diligence undertaken by 
                financial institutions;
            (2) to examine the causes of the collapse of each major 
        financial institution that failed (including institutions that 
        were acquired to prevent their failure) or was likely to have 
        failed if not for the receipt of exceptional Government 
        assistance from the Secretary of the Treasury during the period 
        beginning in August 2007 through April 2009;
            (3) to submit a report under subsection (h);
            (4) to refer to the Attorney General of the United States 
        and any appropriate State attorney general any person that the 
        Commission finds may have violated the laws of the United 
        States in relation to such crisis; and
            (5) to build upon the work of other entities, and avoid 
        unnecessary duplication, by reviewing the record of the 
        Committee on Banking, Housing, and Urban Affairs of the Senate, 
        the Committee on Financial Services of the House of 
        Representatives, other congressional committees, the Government 
        Accountability Office, other legislative panels, and any other 
        department, agency, bureau, board, commission, office, 
        independent establishment, or instrumentality of the United 
        States (to the fullest extent permitted by law) with respect to 
        the current financial and economic crisis.
    (d) Powers of the Commission.--
            (1) Hearings and evidence.--The Commission may, for 
        purposes of carrying out this section--
                    (A) hold hearings, sit and act at times and places, 
                take testimony, receive evidence, and administer oaths; 
                and
                    (B) require, by subpoena or otherwise, the 
                attendance and testimony of witnesses and the 
                production of books, records, correspondence, 
                memoranda, papers, and documents.
            (2) Subpoenas.--
                    (A) Service.--Subpoenas issued under paragraph 
                (1)(B) may be served by any person designated by the 
                Commission.
                    (B) Enforcement.--
                            (i) In general.--In the case of contumacy 
                        or failure to obey a subpoena issued under 
                        paragraph (1)(B), the United States district 
                        court for the judicial district in which the 
                        subpoenaed person resides, is served, or may be 
                        found, or where the subpoena is returnable, may 
                        issue an order requiring such person to appear 
                        at any designated place to testify or to 
                        produce documentary or other evidence. Any 
                        failure to obey the order of the court may be 
                        punished by the court as a contempt of that 
                        court.
                            (ii) Additional enforcement.--Sections 102 
                        through 104 of the Revised Statutes of the 
                        United States (2 U.S.C. 192 through 194) shall 
                        apply in the case of any failure of any witness 
                        to comply with any subpoena or to testify when 
                        summoned under the authority of this section.
                            (iii) Issuance.--A subpoena may be issued 
                        under this subsection only--
                                    (I) by the agreement of the 
                                Chairperson and the Vice Chairperson; 
                                or
                                    (II) by the affirmative vote of a 
                                majority of the Commission, a majority 
                                being present.
            (3) Contracting.--The Commission may enter into contracts 
        to enable the Commission to discharge its duties under this 
        section.
            (4) Information from federal agencies and other entities.--
                    (A) In general.--The Commission may secure directly 
                from any department, agency, bureau, board, commission, 
                office, independent establishment, or instrumentality 
                of the United States any information related to any 
                inquiry of the Commission conducted under this section, 
                including information of a confidential nature (which 
                the Commission shall maintain in a secure manner). Each 
                such department, agency, bureau, board, commission, 
                office, independent establishment, or instrumentality 
                shall furnish such information directly to the 
                Commission upon request.
                    (B) Other entities.--It is the sense of the 
                Congress that the Commission should seek testimony or 
                information from principals and other representatives 
                of government agencies and private entities that were 
                significant participants in the United States and 
                global financial and housing markets during the time 
                period examined by the Commission.
            (5) Administrative support services.--Upon the request of 
        the Commission--
                    (A) the Administrator of General Services shall 
                provide to the Commission, on a reimbursable basis, the 
                administrative support services necessary for the 
                Commission to carry out its responsibilities under this 
                Act; and
                    (B) other Federal departments and agencies may 
                provide to the Commission any administrative support 
                services as may be determined by the head of such 
                department or agency to be advisable and authorized by 
                law.
            (6) Donations of goods and services.--The Commission may 
        accept, use, and dispose of gifts or donations of services or 
        property.
            (7) Postal services.--The Commission may use the United 
        States mails in the same manner and under the same conditions 
        as departments and agencies of the United States.
            (8) Powers of subcommittees, members, and agents.--Any 
        subcommittee, member, or agent of the Commission may, if 
        authorized by the Commission, take any action which the 
        Commission is authorized to take by this section.
    (e) Staff of the Commission.--
            (1) Director.--The Commission shall have a Director who 
        shall be appointed by the Chairperson and the Vice Chairperson, 
        acting jointly.
            (2) Staff.--The Chairperson and the Vice Chairperson may 
        jointly appoint additional personnel, as may be necessary, to 
        enable the Commission to carry out its functions.
            (3) Applicability of certain civil service laws.--The 
        Director and staff of the Commission may be appointed without 
        regard to the provisions of title 5, United States Code, 
        governing appointments in the competitive service, and may be 
        paid without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of such title relating to 
        classification and General Schedule pay rates, except that no 
        rate of pay fixed under this paragraph may exceed the 
        equivalent of that payable for a position at level V of the 
        Executive Schedule under section 5316 of title 5, United States 
        Code. Any individual appointed under paragraph (1) or (2) shall 
        be treated as an employee for purposes of chapters 63, 81, 83, 
        84, 85, 87, 89, 89A, 89B, and 90 of that title.
            (4) Detailees.--Any Federal Government employee may be 
        detailed to the Commission without reimbursement from the 
        Commission, and such detailee shall retain the rights, status, 
        and privileges of his or her regular employment without 
        interruption.
            (5) Consultant services.--The Commission is authorized to 
        procure the services of experts and consultants in accordance 
        with section 3109 of title 5, United States Code, but at rates 
        not to exceed the daily rate paid a person occupying a position 
        at level IV of the Executive Schedule under section 5315 of 
        title 5, United States Code.
    (f) Compensation and Travel Expenses.--
            (1) Compensation.--Each member of the Commission may be 
        compensated at a rate not to exceed the daily equivalent of the 
        annual rate of basic pay in effect for a position at level IV 
        of the Executive Schedule under section 5315 of title 5, United 
        States Code, for each day during which that member is engaged 
        in the actual performance of the duties of the Commission.
            (2) Travel expenses.--While away from their homes or 
        regular places of business in the performance of services for 
        the Commission, members of the Commission shall be allowed 
        travel expenses, including per diem in lieu of subsistence, in 
        the same manner as persons employed intermittently in the 
        Government service are allowed expenses under section 5703(b) 
        of title 5, United States Code.
    (g) Nonapplicability of Federal Advisory Committee Act.--The 
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
Commission.
    (h) Report of the Commission; Appearance Before and Consultations 
With Congress.--
            (1) Report.--On December 15, 2010, the Commission shall 
        submit to the President and to the Congress a report containing 
        the findings and conclusions of the Commission on the causes of 
        the current financial and economic crisis in the United States.
            (2) Institution-specific reports authorized.--At the 
        discretion of the chairperson of the Commission, the report 
        under paragraph (1) may include reports or specific findings on 
        any financial institution examined by the Commission under 
        subsection (c)(2).
            (3) Appearance before the congress.--The chairperson of the 
        Commission shall, not later than 120 days after the date of 
        submission of the final reports under paragraph (1), appear 
        before the Committee on Banking, Housing, and Urban Affairs of 
        the Senate and the Committee on Financial Services of the House 
        of Representatives regarding such reports and the findings of 
        the Commission.
            (4) Consultations with the congress.--The Commission shall 
        consult with the Committee on Banking, Housing, and Urban 
        Affairs of the Senate, the Committee on Financial Services of 
        the House of Representatives, and other relevant committees of 
        the Congress, for purposes of informing the Congress on the 
        work of the Commission.
    (i) Termination of Commission.--
            (1) In general.--The Commission, and all the authorities of 
        this section, shall terminate 60 days after the date on which 
        the final report is submitted under subsection (h).
            (2) Administrative activities before termination.--The 
        Commission may use the 60-day period referred to in paragraph 
        (1) for the purpose of concluding the activities of the 
        Commission, including providing testimony to committees of the 
        Congress concerning reports of the Commission and disseminating 
        the final report submitted under subsection (h).
    (j) Authorization of Appropriation.--There is authorized to be 
appropriated to the Secretary of the Treasury such sums as are 
necessary to cover the costs of the Commission.

            Amend the title so as to read: ``An Act to improve 
        enforcement of mortgage fraud, securities and commodities 
        fraud, financial institution fraud, and other frauds related to 
        Federal assistance and relief programs, for the recovery of 
        funds lost to these frauds, and for other purposes.''.

            Attest:

                                                                 Clerk.
111th CONGRESS

  1st Session

                                 S. 386

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                               AMENDMENTS