II 111th CONGRESS 1st Session S. 400 IN THE SENATE OF THE UNITED STATES February 9, 2009 Mr. Sanders (for himself, Mr. Brown, and Mr. Begich) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To expand the authority and responsibilities of the Oversight Panel of the Troubled Asset Relief Program, and for other purposes.

1.

Short title

This Act may be cited as the Financial Crisis Investigation Act of 2009.

2.

Expanding the authority of the tarp congressional oversight panel

Section 125 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5233) is amended by adding at the end the following: (h)

Additional duties

The Oversight Panel shall— (1)investigate all causes, domestic and global, of the current financial and economic crisis in the United States, including the collapse of major financial and commercial firms and the deterioration of the credit and housing markets; (2)investigate the role in the financial and economic crisis, if any, of— (A)any financial or commercial corporation, partnership, hedge fund, private equity firm, or entity, including any of their employees; (B)the Securities and Exchange Commission; (C)nationally recognized statistical rating organizations, as that term is defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) including any of their employees; (D)the Commodity Futures Trading Commission; (E)the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation; (F)trading facilities for commodities, as those terms are defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a), and self-regulatory organizations, as that term is defined in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c); (G)the Federal banking agencies, as that term is defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and (H)any other governmental or nongovernmental entity including any of their employees; (3)conduct a top-to-bottom review of the Nation's existing financial regulatory structure and the contribution of the current structure to the stability or instability of financial markets, in order to develop a comprehensive framework for— (A)reforming the laws governing our Nation's financial markets; (B)strengthening regulatory agencies; and (C)improving transparency and oversight; (4)analyze— (A)the impact of the financial regulatory structure on the health and stability of the United States economy; (B)the sustainability of the Nation's financial institutions; and (C)the financial well-being of American taxpayers; (5)review and consider all aspects of financial regulation, including the regulation of— (A)bank holding companies, financial holding companies, commercial banks, investment banks, savings associations, credit unions, and industrial loan companies; (B)payment and settlement systems; (C)hedge funds, private equity funds, and the markets for alternative investments; (D)special purpose vehicles and off-balance sheet financing for financial companies; (E)the securitization of mortgages and other assets; (F)exchange-based, electronic, and over-the-counter markets for financial derivative products; (G)the mortgage finance industry, including mortgage brokers and mortgage lending institutions; (H)equity markets, including short-selling practices, and commodity futures markets; and (I)the insurance industry and its role in the financial markets; (6)submit reports required by subsection (b); and (7)refer to the Attorney General of the United States, any appropriate State attorney general, or any other appropriate law enforcement official any person that the Oversight Panel finds may have violated the laws of the United States in relation to such crisis. (i)

Hearings and evidence

(1)

In general

The Oversight Panel shall, for purposes of carrying out this section— (A)hold regular 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 other documents. (2)

Subpoenas

(A)

Service

Subpoenas issued under paragraph (1)(B) may be served by any person designated by the Oversight Panel. (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. (3)

Contracting

The Oversight Panel may enter into contracts to enable the Oversight Panel to discharge its duties under this section. (4)

Information from Federal agencies

The Oversight Panel may secure directly from any department, agency, or instrumentality of the United States any information related to any inquiry of the Oversight Panel conducted under this Act. Each such department, agency, or instrumentality shall, to the extent authorized by law, furnish such information directly to the Oversight Panel upon request, not later than 7 days after the date on which such request is made. (5)

Information from financial or commercial corporations, partnerships, hedge funds, private equity firms, or entities

The Oversight Panel may secure directly from any financial or commercial corporations, partnerships, hedge funds, private equity firms, or entities any information related to any inquiry of the Oversight Panel conducted under this section. Each shall, to the extent authorized by law, furnish such information directly to the Oversight Panel upon request not later than 7 days after the date on which such request is made. (6)

Assistance from Federal agencies

(A)

Department of the treasury

(i)

In general

The Secretary shall provide all amounts necessary to defray the costs and provide administrative support and other services to the Oversight Panel for the performance of the functions of the Oversight Panel. (ii)

Limitation

The value of the assistance required to be provided by the Secretary under this subparagraph may not exceed $4,000,000. (B)

Other departments and agencies

In addition to the assistance prescribed in subparagraph (A), departments and agencies of the United States are authorized to provide to the Oversight Panel such services, funds, facilities, staff, and other support services as they may determine advisable and as may be authorized by law. (7)

Gifts

The Oversight Panel may accept, use, and dispose of gifts or donations of services or property. (8)

Postal services

The Oversight Panel may use the United States mails in the same manner and under the same conditions as departments and agencies of the United States. (9)

Powers of subcommittees, members, and agents

Any subcommittee, member, or agent of the Oversight Panel may, if authorized by the Oversight Panel, take any action which the Oversight Panel is authorized to take by this section. .

3.

Reports of the oversight panel

Section 125(b) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5233(b)) is amended by adding at the end the following: (3)

Final report on financial crisis

Not later than 100 days after the date of enactment of this paragraph, the Oversight Panel shall submit to the President and Congress a report containing— (A)the findings and conclusions of the Oversight Panel on the causes of the current financial and economic crisis in the United States; and (B)such findings, conclusions, and recommendations for statutory and regulatory changes as a majority of Oversight Panel members finds are necessary to prevent a financial and economic crisis comparable to the current financial and economic crisis in the United States. (4)

Interim reports

At any time after the first meeting of the Oversight Panel, the Oversight Panel may submit to the President and Congress an interim report containing such findings, conclusions, and recommendations for corrective measures as have been agreed to by a majority of Oversight Panel members. .