[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.

       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.

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