[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.