[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8264 Introduced in House (IH)]

<DOC>






118th CONGRESS
  2d Session
                                H. R. 8264

To amend the Federal Deposit Insurance Act and the Federal Credit Union 
Act to improve the timeliness of examination reports and other guidance 
  and to establish panels to oversee appeals from insured depository 
    institutions and insured credit unions of material supervisory 
                determinations, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 7, 2024

   Mr. Barr introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Deposit Insurance Act and the Federal Credit Union 
Act to improve the timeliness of examination reports and other guidance 
  and to establish panels to oversee appeals from insured depository 
    institutions and insured credit unions of material supervisory 
                determinations, 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 ``Bank Supervision Appeals Improvement 
Act of 2024''.

SEC. 2. TIMELINESS OF EXAMINATIONS AND REQUIRED PERMISSION, REGULATORY, 
              AND REPORTING GUIDANCE.

    (a) Exit Interview Requirement; Timeliness of Examinations.--
            (1) Insured depository institutions.--Section 10(d) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended by 
        adding at the end the following:
            ``(11) Examination timeliness.--The appropriate Federal 
        banking agency shall complete any examination of an insured 
        depository institution within 270 days of commencing the 
        examination, except that such period may be extended by the 
        appropriate Federal banking agency by providing written notice 
        to the insured depository institution describing with 
        particularity the reasons that a longer period is needed.
            ``(12) Exit interview requirement.--Within 30 days of 
        completing an examination, the appropriate Federal banking 
        agency shall conduct an exit interview with the insured 
        depository institution's senior management and board of 
        directors.
            ``(13) Timeliness of examination reports.--
                    ``(A) Final examination report.--With respect to an 
                examination of an insured depository institution by an 
                appropriate Federal banking agency, the appropriate 
                Federal banking agency shall provide a final 
                examination report to the insured depository 
                institution not later than 60 days after the later of--
                            ``(i) the exit interview for the 
                        examination; or
                            ``(ii) the provision of additional 
                        information by the insured depository 
                        institution relating to the examination.
                    ``(B) Examination materials.--Upon the request of 
                an insured depository institution, the appropriate 
                Federal banking agency shall include with a final 
                examination report an appendix listing all materials 
                relied upon by the agency in support of all material 
                supervisory determinations.
                    ``(C) Material supervisory determination defined.--
                In this paragraph, the term `material supervisory 
                determination' has the meaning given such term in 
                section 309(i) of the Riegle Community Development and 
                Regulatory Improvement Act of 1994.''.
            (2) Insured credit unions.--Section 204 of the Federal 
        Credit Union Act (12 U.S.C. 1784) is amended by adding at the 
        end the following:
    ``(h) Exit Interview Requirement; Timeliness of Examinations.--
            ``(1) Examination timeliness.--The Board shall complete any 
        examination of an insured credit union within 270 days of 
        commencing the examination, except that such period may be 
        extended by the Board by providing written notice to the 
        insured credit union describing with particularity the reasons 
        that a longer period is needed.
            ``(2) Exit interview requirement.--Within 30 days of 
        completing an examination, the Board shall conduct an exit 
        interview with the insured credit union's senior management and 
        board of directors.
            ``(3) Timeliness of examination reports.--
                    ``(A) Final examination report.--With respect to an 
                examination of an insured credit union, the Board shall 
                provide a final examination report to the insured 
                credit union not later than 60 days after the later 
                of--
                            ``(i) the exit interview for the 
                        examination; or
                            ``(ii) the provision of additional 
                        information by the insured credit union 
                        relating to the examination.
                    ``(B) Examination materials.--Upon the request of 
                an insured credit union, the Board shall include with a 
                final examination report an appendix listing all 
                materials relied upon by the Board in support of all 
                material supervisory determinations.
                    ``(C) Material supervisory determination defined.--
                In this paragraph, the term `material supervisory 
                determination' has the meaning given such term in 
                section 309(i) of the Riegle Community Development and 
                Regulatory Improvement Act of 1994.''.
    (b) Timeliness of Required Permission, Regulatory, and Reporting 
Guidance.--
            (1) Insured depository institutions.--Section 10 of the 
        Federal Deposit Insurance Act (12 U.S.C. 1820) is amended by 
        adding at the end the following:
    ``(l) Timeliness of Required Permission, Regulatory, and Reporting 
Guidance.--
            ``(1) Request for permission or guidance.--An insured 
        depository institution may request a written determination by 
        the appropriate Federal banking agency of--
                    ``(A) the agency's permission to take an action 
                where permission is mandated by regulation;
                    ``(B) the agency's interpretation of a law or 
                regulation; and
                    ``(C) the agency's interpretation of generally 
                accepted accounting principles or accounting 
                objectives, standards, and requirements under section 
                37.
            ``(2) Contents of request.--A request made under paragraph 
        (1) shall be in writing and contain--
                    ``(A) the nature of the request;
                    ``(B) applicable facts relating to the matter;
                    ``(C) applicable law, regulation, or generally 
                accepted accounting principles relating to the matter; 
                and
                    ``(D) a summary of the request.
            ``(3) Response to request.--A Federal banking agency 
        receiving a request under paragraph (1) shall, not later than 
        30 days after receiving the request--
                    ``(A) provide the insured depository institution 
                making the request with written notification that the 
                agency received the request and stating whether the 
                request contains the information required under 
                paragraph (2); and
                    ``(B) if the request does not contain the 
                information required under paragraph (2), provide the 
                insured depository institution with an explanation of 
                what information is missing.
            ``(4) Providing missing information.--If a Federal banking 
        agency informs the insured depository institution under 
        paragraph (3) that the request does not contain all the 
        information required under paragraph (2), the insured 
        depository institution may provide the missing information to 
        the Federal banking agency during the 30-day period beginning 
        on the date the insured depository institution receives the 
        explanation of the missing information under paragraph (3).
            ``(5) Determination.--A Federal banking agency receiving a 
        request under paragraph (1) shall make a determination on the 
        request and provide the insured depository institution with a 
        written notice of such determination--
                    ``(A) if the initial request contains the 
                information required under paragraph (2), not later 
                than the end of the 60-day period beginning on the date 
                the Federal banking agency notifies the insured 
                depository institution of the receipt of the request 
                under paragraph (3); or
                    ``(B) if the initial request does not contain the 
                information required under paragraph (2)--
                            ``(i) not later than the end of the 60-day 
                        period beginning on the date that the insured 
                        depository institution provides the Federal 
                        banking agency with the missing information 
                        under paragraph (4); or
                            ``(ii) if the insured depository 
                        institution does not provide the Federal 
                        banking agency with the missing information 
                        within the 30-day period described under 
                        paragraph (4), not later than the end of the 
                        60-day period beginning on the end of such 30-
                        day period.
            ``(6) Reports and publication.--Each Federal banking agency 
        shall, within 120 days after making a determination under 
        paragraph (5), publish a summary of the determination. Each 
        Federal banking agency shall redact any confidential 
        supervisory information about the insured depository 
        institution, any identifying facts about the institution, and 
        any sensitive personally identifiable information.''.
            (2) Insured credit unions.--Section 209 of the Federal 
        Credit Union Act (12 U.S.C. 1789) is amended by adding at the 
        end the following:
    ``(c) Timeliness of Required Permission, Regulatory, and Reporting 
Guidance.--
            ``(1) Request for permission or guidance.--An insured 
        credit union may request a written determination by the Board 
        of--
                    ``(A) the Board's permission to take an action 
                where permission is mandated by regulation;
                    ``(B) the Board's interpretation of a law or 
                regulation; and
                    ``(C) the Board's interpretation of generally 
                accepted accounting principles or other accounting 
                objectives, standards, and requirements.
            ``(2) Contents of request.--A request made under paragraph 
        (1) shall be in writing and contain--
                    ``(A) the nature of the request;
                    ``(B) applicable facts relating to the matter;
                    ``(C) applicable law, regulation, or generally 
                accepted accounting principles relating to the matter; 
                and
                    ``(D) a summary of the request.
            ``(3) Response to request.--The Board, upon receiving a 
        request under paragraph (1) shall, not later than 30 days after 
        receiving the request--
                    ``(A) provide the insured credit union making the 
                request with written notification that the Board 
                received the request and stating whether the request 
                contains the information required under paragraph (2); 
                and
                    ``(B) if the request does not contain the 
                information required under paragraph (2), provide the 
                insured credit union with an explanation of what 
                information is missing.
            ``(4) Providing missing information.--If the Board informs 
        the insured credit union under paragraph (3) that the request 
        does not contain all the information required under paragraph 
        (2), the insured credit union may provide the missing 
        information to the Board during the 30-day period beginning on 
        the date the insured credit union receives the explanation of 
        the missing information under paragraph (3).
            ``(5) Determination.--The Board shall make a determination 
        on a request made under paragraph (1) and provide the insured 
        credit union with a written notice of such determination--
                    ``(A) if the initial request contains the 
                information required under paragraph (2), not later 
                than the end of the 60-day period beginning on the date 
                the Board notifies the insured credit union of the 
                receipt of the request under paragraph (3); or
                    ``(B) if the initial request does not contain the 
                information required under paragraph (2)--
                            ``(i) not later than the end of the 60-day 
                        period beginning on the date that the insured 
                        credit union provides the Board with the 
                        missing information under paragraph (4); or
                            ``(ii) if the insured credit union does not 
                        provide the Board with the missing information 
                        within the 30-day period described under 
                        paragraph (4), not later than the end of the 
                        60-day period beginning on the end of such 30-
                        day period.
            ``(6) Reports and publication.--The Board shall, within 120 
        days after making a determination under paragraph (5), publish 
        a summary of the determination. The Board shall redact any 
        confidential supervisory information about the insured credit 
        union, any identifying facts about the credit union, and any 
        sensitive personally identifiable information.''.

SEC. 3. UPDATE OF INDEPENDENT INTRA-AGENCY APPELLATE PROCESS FOR 
              REVIEWING MATERIAL SUPERVISORY DETERMINATIONS.

    (a) Update of Independent Intra-Agency Appellate Process.--Not 
later than 180 days after the date of enactment of this Act, the Board 
of Governors of the Federal Reserve System, the Comptroller of the 
Currency, the Federal Deposit Insurance Corporation Board, and the 
National Credit Union Administration Board shall revise the independent 
intra-agency appellate process required under section 309(a) of the 
Riegle Community Development and Regulatory Improvement Act of 1994 (12 
U.S.C. 4806(a)).
    (b) Office of Supervisory Appeals; Appeals Process.--Section 309 of 
the Riegle Community Development and Regulatory Improvement Act of 1994 
(12 U.S.C. 4806) is amended--
            (1) by redesignating subsection (f) as subsection (i); and
            (2) by inserting after subsection (e) the following:
    ``(f) Office of Supervisory Appeals.--The Federal banking agencies 
and the National Credit Union Administration shall each establish an 
Office of Supervisory Appeals to carry out the independent intra-agency 
appellate process required under this section.
    ``(g) Appeals Officials.--
            ``(1) Appointment.--The head of each of the Federal banking 
        agencies and the National Credit Union Administration shall 
        appoint appeals officials, in a number sufficient to fully 
        staff the panels described under subsection (h), from among the 
        following classes of individuals:
                    ``(A) Individuals who have financial institutions 
                regulatory agency experience.
                    ``(B) Individuals who--
                            ``(i) are a licensed attorney or a 
                        certified public accountant authorized to 
                        practice under the laws of a State, the 
                        District of Columbia, or a territory of the 
                        United States;
                            ``(ii) have either academic or private 
                        sector experience;
                            ``(iii) have relevant subject matter 
                        knowledge or work-related experience in the 
                        financial services sector, as determined by the 
                        agency making the appointment; and
                            ``(iv) are not, and were not during the 
                        previous 10-year period, employed by a Federal 
                        banking agency, a Federal reserve bank, or the 
                        National Credit Union Administration.
                    ``(C) Individuals--
                            ``(i) with at least 10 years private sector 
                        financial services senior management-level 
                        experience; and
                            ``(ii) recommended by--
                                    ``(I) an insured depository 
                                institution;
                                    ``(II) an insured credit union; or
                                    ``(III) a trade association for 
                                such institutions or credit unions.
            ``(2) Term.--
                    ``(A) In general.--Each appeals official appointed 
                under paragraph (1) shall serve for a term of 3 years.
                    ``(B) Term limitation.--No individual may be 
                appointed under paragraph (1) to serve more than 2 full 
                terms.
                    ``(C) Dismissal.--An appeals official appointed 
                under paragraph (1) may be removed at any time by the 
                appointing agency.
    ``(h) Appeals Process and Panel Hearing of Material Supervisory 
Determinations.--
            ``(1) Appeal to the head of supervision.--
                    ``(A) In general.--An institution seeking an appeal 
                of a material supervisory determination shall--
                            ``(i) file a written appeal to the head of 
                        supervision for the agency not later than 30 
                        days after receiving the material supervisory 
                        determination from the agency; and
                            ``(ii) include in the appeal--
                                    ``(I) a clear and complete 
                                statement of all relevant facts and 
                                issues;
                                    ``(II) all arguments that the 
                                institution wishes to present; and
                                    ``(III) all relevant and material 
                                documents that the institution wishes 
                                to be considered.
                    ``(B) Extension.--The institution may file a 
                written request with the head of supervision for an 
                extension of the 30-day time period described under 
                subparagraph (A)(i), which shall state good cause for 
                granting the extension. Such request shall be granted 
                in the sole discretion of the head of supervision.
                    ``(C) Information made available to institution.--
                An institution seeking an appeal of a material 
                supervisory determination may, not later than 7 days 
                after receiving the material supervisory determination, 
                request that the agency provide the institution with 
                any information relied upon by the agency in making the 
                material supervisory determination. The agency shall 
                provide that information to the institution not later 
                than 14 days after receiving the request.
            ``(2) Consideration of appeal by the head of supervision.--
                    ``(A) In general.--A head of supervision receiving 
                an appeal under paragraph (1) shall, after reviewing 
                the information provided by the institution in such 
                appeal--
                            ``(i) grant the appeal;
                            ``(ii) refer the appeal to a panel 
                        appointed under paragraph (3); or
                            ``(iii) deny the appeal.
                    ``(B) Notification.--A head of supervision shall 
                promptly inform the institution and the head of the 
                agency after granting, referring, or denying an appeal 
                under subparagraph (A).
                    ``(C) Right to appeal denial.--An institution that 
                has an appeal denied by the head of supervision under 
                subparagraph (A) may appeal such denial to a panel 
                appointed under paragraph (3).
            ``(3) Appointment of panel.--
                    ``(A) In general.--With respect to each appeal 
                referred by a head of supervision under paragraph 
                (2)(A)(ii) or appealed by an institution after a denial 
                under paragraph (2)(A)(iii), the agency shall appoint a 
                panel of 3 appeals officials to provide a 
                recommendation on such appeal, with 1 of the 3 appeals 
                officials being appointed to the panel from individuals 
                in each of the classes described under subparagraphs 
                (A), (B), and (C) of subsection (g)(1).
                    ``(B) Reporting prohibition.--An appeals official 
                may not be appointed to a panel under subparagraph (A) 
                if the appeals official is reporting, or has reported, 
                directly or indirectly, to the agency official who made 
                the material supervisory determination under review.
            ``(4) Panel hearings.--
                    ``(A) Request for hearing.--An institution may 
                request a hearing with the panel on the institution's 
                appeal by--
                            ``(i) making such request not later than 7 
                        days after the date on which the institution is 
                        informed the head of supervision referred an 
                        appeal to a panel under paragraph (2); or
                            ``(ii) making such request in the 
                        institution's appeal of a denial of the 
                        institution's appeal under paragraph (2).
                    ``(B) Timing of hearing.--If an institution 
                requests a hearing, as described under subparagraph 
                (A), the panel shall provide the institution with a 
                hearing on the institution's appeal not later than 30 
                days after the date the hearing is requested, except 
                the panel may, in the discretion of the panel or upon 
                good cause shown, extend such deadline by up to 15 
                days.
                    ``(C) Rulemaking.--The Federal banking agencies and 
                the National Credit Union Administration shall each 
                issue rules to establish procedures for panel hearings 
                described under this paragraph, including that--
                            ``(i) the institution may appear at the 
                        hearing personally or through counsel;
                            ``(ii) the institution may provide an oral 
                        and written presentation at the hearing;
                            ``(iii) the panel may ask questions of any 
                        person participating in the hearing;
                            ``(iv) the hearing may not involve--
                                    ``(I) taking testimony;
                                    ``(II) a cross-examination; and
                                    ``(III) discovery;
                            ``(v) the hearing shall not governed by 
                        formal rules of evidence; and
                            ``(vi) the panel shall have a verbatim 
                        transcript of the hearing prepared.
            ``(5) Recommendation by panel.--
                    ``(A) In general.--A panel making a recommendation 
                on an appeal under this subsection shall make the 
                recommendation not later than--
                            ``(i) 90 days after the date on which the 
                        appeal was referred by a head of supervision 
                        under paragraph (2)(A)(ii) or appealed by an 
                        institution after a denial under paragraph 
                        (2)(A); or
                            ``(ii) if the institution requested a 
                        hearing under paragraph (4), 60 days after the 
                        date on which the hearing concluded.
                    ``(B) Form of recommendation.--The panel may 
                recommend--
                            ``(i) that the material supervisory 
                        determination be continued, terminated, or 
                        otherwise modified; or
                            ``(ii) that the material supervisory 
                        determination be remanded to the examiners to 
                        allow the examiners to consider additional 
                        information presented in connection with the 
                        appeal.
                    ``(C) Notice.--After a recommendation is made under 
                subparagraph (A), the panel shall promptly notify the 
                institution, the head of supervision of the agency, and 
                the head of the agency of the recommendation, which 
                shall contain a statement of the basis for the panel's 
                recommendation and identify the information on which 
                the panel relied in reaching the recommendation.
                    ``(D) Publication.--A copy of each panel 
                recommendation shall be posted on the agency's public 
                website as soon as practicable, with exempt information 
                redacted. If the panel determines that redaction is 
                insufficient to prevent improper disclosure, the 
                recommendation may be presented in summary form.
                    ``(E) Standard of review.--A panel's review of a 
                material supervisory determination being appealed under 
                this subsection shall be de novo.
                    ``(F) No authority to delay or stay orders.--A 
                panel shall have no authority to delay or stay the 
                implementation of any formal order from the applicable 
                agency.
            ``(6) Review by the head of the agency.--
                    ``(A) Response by institution.--Not later than 15 
                days after receiving a notice of a recommendation under 
                paragraph (5)(C), the institution may submit to the 
                head of the agency written exceptions to the 
                recommended decision.
                    ``(B) Review by head of the agency.--Not later than 
                45 days after receiving a notice of a recommendation 
                under paragraph (5)(C), the head of an agency shall 
                review such decision and either ratify or reject the 
                panel's decision.
                    ``(C) Review may not be delegated.--A review by the 
                head of an agency under this paragraph may not be 
                delegated to any other employee of the agency and, in 
                the case of an agency that is headed by a body made up 
                of multiple individuals, all such individuals shall 
                participate in the review.
                    ``(D) Reports to congress.--The Federal banking 
                agencies and the National Credit Union Administration 
                shall each, not later than 90 days after the end of 
                each calendar year, issue a report to the Committee on 
                Financial Services of the House of Representatives and 
                the Committee on Banking, Housing, and Urban Affairs of 
                the Senate describing the actions taken by the agency 
                under this paragraph during such calendar year, 
                including information on each of the panel decisions 
                reviewed, after redacting any confidential supervisory 
                information.
                    ``(E) Publication.--A copy of each decision by the 
                head of the agency under this paragraph shall be posted 
                on the agency's public website as soon as practicable, 
                with exempt information redacted. If the head of the 
                agency determinates that redaction is insufficient to 
                prevent improper disclosure, the decision may be 
                presented in summary form.
            ``(7) Right to judicial review.--An institution shall have 
        the right to petition for review of an agency head's decision 
        under paragraph (6) by filing a petition for review not later 
        than 60 days after the date on which the decision was made in 
        the United States Court of Appeals for the District of Columbia 
        Circuit or the circuit in which the institution is located.
            ``(8) Retaliation prohibited.--The Federal banking agencies 
        and the National Credit Union Administration may not--
                    ``(A) retaliate against an insured depository 
                institution or insured credit union, or a service 
                provider or institution-affiliated party of an insured 
                depository institution or insured credit union, for 
                exercising rights under this subsection; or
                    ``(B) delay or deny any agency action that would 
                benefit an insured depository institution or insured 
                credit union, or a service provider or institution-
                affiliated party of an insured depository institution 
                or insured credit union, on the basis that a matter 
                under this section is pending under this section.
            ``(9) Definitions.--With respect to the appeal of a 
        material supervisory determination under this subsection:
                    ``(A) Agency.--The term `agency' means the Federal 
                agency, either a Federal banking agency or the National 
                Credit Union Administration, that made the material 
                supervisory determination.
                    ``(B) Institution.--The term `institution' means 
                the company, either an insured depository institution 
                or an insured credit union, with respect to which the 
                material supervisory determination was made.''.

SEC. 4. REVIEW OF RESOLUTION ACTIONS RESULTING IN A MATERIAL LOSS.

    Section 38(k) of the Federal Deposit Insurance Act (12 U.S.C. 
1831o(k)) is amended by adding at the end the following:
            ``(7) Review of resolution actions by corporation inspector 
        general.--
                    ``(A) In general.--If the Deposit Insurance Fund 
                incurs a material loss with respect to an insured 
                depository institution, the inspector general of the 
                Corporation shall--
                            ``(i) review the Corporation's resolution 
                        of the institution to determine whether the 
                        material loss to the Deposit Insurance Fund 
                        could have been avoided by the Corporation when 
                        resolving the institution; and
                            ``(ii) make a written report to the 
                        Corporation and the Congress containing the 
                        results of such review and any recommendations 
                        for preventing a material loss to the Deposit 
                        Insurance Fund in the future when resolving an 
                        institution.
                    ``(B) Testimony to congress.--If the inspector 
                general of the Corporation determines, in a review 
                carried out under subparagraph (A) that the 
                Corporation's resolution of an institution caused a 
                material loss to the Deposit Insurance Fund, but such 
                resolution could have been carried out in a manner to 
                avoid such a material loss, the Chairperson of the 
                Corporation shall testify before the Committee on 
                Financial Services of the House of Representatives and 
                the Committee on Banking, Housing, and Urban Affairs of 
                the Senate to explain why the material loss 
                occurred.''.
                                 <all>