Congressional Record, Volume 157 Issue 176 (Thursday, November 17, 2011)

[Congressional Record Volume 157, Number 176 (Thursday, November 17, 2011)]
[Senate]
[Page S7777]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

INSURED DEPOSITORY INSTITUTION FAILURES

Mr. LEVIN. Mr. President, I ask unanimous consent that the Banking
Committee be discharged and the Senate proceed to the immediate
consideration of H.R. 2056.
The PRESIDING OFFICER. Without objection, it is so ordered. The clerk
will report the bill by title.
The bill clerk read as follows:

A bill (H.R. 2056) to instruct the Inspector General of the
Federal Deposit Insurance Corporation to study the impact of
insured depository institution failures, and for other
purposes.

There being no objection, the Senate proceeded to consider the bill.
The PRESIDING OFFICER. I ask unanimous consent the Levin amendment at
the desk be agreed to, the bill as amended be read a third time and
passed, the motion to reconsider be laid upon the table, and any
statements be printed in the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment (No. 1221) was agreed to, as follows:

amendment no. 1221

(Purpose: To clarify the types of losses to be studied, to require
appearances before Congress, and for other purposes)

On page 2, line 10, insert ``and'' after the semicolon.
On page 2, line 14, strike the semicolon and all that
follows through line 19 and insert a period.
On page 4, strike line 14 and all that follows through page
5, line 5, and insert the following:
(2) Losses.--The significance of losses, including--
(A) the number of insured depository institutions that have
been placed into receivership or conservatorship due to
significant losses arising from loans for which all payments
of principal, interest, and fees were current, according to
the contractual terms of the loans;
(B) the impact of significant losses arising from loans for
which all payments of principal, interest, and fees were
current, according to the contractual terms of the loans, on
the ability of insured depository institutions to raise
additional capital;
(C) the effect of changes in the application of fair value
accounting rules and other accounting standards, including
the allowance for loan and lease loss methodology, on insured
depository institutions, specifically the degree to which
fair value accounting rules and other accounting standards
have led to regulatory action against banks, including
consent orders and closure of the institution; and
(D) whether field examiners are using appropriate appraisal
procedures with respect to losses arising from loans for
which all payments of principal, interest, and fees were
current, according to the contractual terms of the loans, and
whether the application of appraisals leads to immediate
write downs on the value of the underlying asset.
On page 9, strike lines 15 through 19, and insert the
following:

SEC. 2. CONGRESSIONAL TESTIMONY.

The Inspector General of the Federal Deposit Insurance
Corporation and the Comptroller General of the United States
shall appear before the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives, not later than 150
days after the date of publication of the study required
under this Act to discuss the outcomes and impact of Federal
regulations on bank examinations and failures.

The amendment was ordered to be engrossed and the bill to be read a
third time.
The bill (H.R. 2056), as amended, was read the third time and passed,
as follows:

Resolved, That the bill from the House of Representatives
(H.R. 2056) entitled ``An Act to instruct the Inspector
General of the Federal Deposit Insurance Corporation to study
the impact of insured depository institution failures, and
for other purposes.'', do pass with the following amendments:
(1)On page 2, line 10, insert ``and'' after the semicolon.

(2)On page 2, line 14, strike the semicolon and all that
follows through line 19 and insert a period.

(3)On page 4, strike line 14 and all that follows through
page 5, line 5, and insert the following:
(2) Losses.--The significance of losses, including--
(A) the number of insured depository institutions that have
been placed into receivership or conservatorship due to
significant losses arising from loans for which all payments
of principal, interest, and fees were current, according to
the contractual terms of the loans;
(B) the impact of significant losses arising from loans for
which all payments of principal, interest, and fees were
current, according to the contractual terms of the loans, on
the ability of insured depository institutions to raise
additional capital;
(C) the effect of changes in the application of fair value
accounting rules and other accounting standards, including
the allowance for loan and lease loss methodology, on insured
depository institutions, specifically the degree to which
fair value accounting rules and other accounting standards
have led to regulatory action against banks, including
consent orders and closure of the institution; and
(D) whether field examiners are using appropriate appraisal
procedures with respect to losses arising from loans for
which all payments of principal, interest, and fees were
current, according to the contractual terms of the loans, and
whether the application of appraisals leads to immediate
write downs on the value of the underlying asset.

(4)On page 9, strike lines 15 through 19, and insert the
following:

SEC. 2. CONGRESSIONAL TESTIMONY.

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