[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 386 Enrolled Bill (ENR)]
S.386
One Hundred Eleventh Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the sixth day of January, two thousand and nine
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.
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 ``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 mortgagor 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, including an affirmative vote of at least
one member appointed under subparagraph (C) or (D) of
subsection (b)(1), 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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.