A bill to extend oversight, accountability, and transparency provisions of the Emergency Economic Assistance Act of 2008 to all Federal emergency economic assistance to private entities, to impose tough conditions for all recipients of such emergency economic assistance, to set up a Federal task force to investigate and prosecute criminal activities that contributed to our economic crisis, and to establish a bipartisan financial market investigation and reform commission, and for other purposes.

Summary: Taxpayer Protection Act - Makes a federal financial entity (the Secretary of the Treasury, members of the Financial Institutions Examination Council, and the Federal Housing Finance Agency) that provides emergency economic assistance to any private entity subject to oversight, reporting, accountability, and transparency provisions of the Emergency Economic Stabilization Act of 2008. Requires monthly reports to Congress on the recipients of such assistance and the collateral provided.

Requires the intended recipient of such assistance, before receiving funds, to agree in writing to specified conditions regarding: (1) monthly reports to Congress; (2) access by the financial entity to relevant personnel and data; (3) limits on executive compensation; (4) prohibitions on bonuses to the recipient's 25 most highly compensated employees; (5) prohibitions on the use of assistance for entertainment and lobbying expenditures; and (6) the sale or divestiture of passenger aircraft. Considers any violation of such agreement as a default on the recipient's obligation.

Directs the Attorney General to establish a Taxpayer Protection Prosecution Task Force to: (1) investigate and prosecute financial fraud that contributed to the collapse of our financial markets; (2) seek to recover any ill-gotten gains; and (3) make recommendations about extending the statute of limitation for complex financial fraud.

Establishes the Financial Market Investigation and Reform Commission to: (1) report on the causes of the collapse of the nation's financial system and credit crisis; (2) report on the extent to which federal entities had information on risky or reckless financial practices that posed a threat to the financial system's well-being; (3) build on any investigations by congressional committees and federal banking agencies to avoid duplication of effort; and (4) report to the President and Congress with recommendations to prevent a similar crisis in the future.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Taxpayer Protection Act''.

SEC. 2. INCREASED OVERSIGHT OVER FEDERAL EMERGENCY ECONOMIC ASSISTANCE.

    (a) In General.--Notwithstanding any other provision of law, a 
Federal financial entity that provides emergency economic assistance to 
any private entity or group of private entities shall be subject to the 
oversight, reporting, accountability, and transparency provisions of 
sections 104, 105, 108, 116, 121, and 125 of the Emergency Economic 
Stabilization Act of 2008 (12 U.S.C. 5214, 5215, 5218, 5226, 5231, 
5233), in the same manner as those sections apply with respect to 
assistance provided under that Act.
    (b) Monthly Reports to Congress.--Each Federal financial entity 
that provides emergency economic assistance to any private entity or 
group of entities shall make monthly reports to Congress that provide, 
among other relevant information, the names and other details about the 
private entities receiving such financial assistance, together with a 
full description of the collateral or other interests granted to the 
Federal financial entity to ensure that taxpayers are repaid, to the 
maximum extent possible.
    (c) Definition.--As used in this Act, the term ``Federal financial 
entity'' means--
            (1) the Secretary of the Treasury;
            (2) each member of the Financial Institutions Examination 
        Council established under section 1004 of the Federal Financial 
        Institutions Examination Council Act of 1978 (12 U.S.C. 3303); 
        and
            (3) the Federal Housing Finance Agency.

SEC. 3. ESTABLISH CONDITIONS FOR EMERGENCY ECONOMIC ASSISTANCE.

    (a) In General.--Notwithstanding any other provision of law, before 
receiving funds under any program by a Federal financial entity to 
provide emergency economic assistance to private entities or groups of 
entities (including assistance under the Emergency Economic 
Stabilization Act of 2008), the intended recipient of such assistance 
shall agree, in writing--
            (1) to provide a detailed monthly report to Congress about 
        how emergency economic assistance provided to such entity or 
        group of entities is being used to meet the intended objectives 
        and goals of such assistance;
            (2) to permit the Federal financial entity providing such 
        assistance access to personnel and any books, papers, records, 
        or other data that may be relevant to the assistance, including 
        compliance with the financial terms and conditions, and the 
        right to audit such activities;
            (3) to limit executive compensation and annual executive 
        compensation tax deductions, to prohibit golden parachutes for 
        officers and directors, and prohibit the payment of dividends 
        or other distributions, as provided, to the maximum extent 
        possible, in section 111 of the Emergency Economic 
        Stabilization Act of 2008 (12 U.S.C. 5221) and regulations and 
        notices issued thereunder;
            (4) to prohibit bonuses or incentive compensation awards to 
        the 25 most highly compensated employees of the recipient;
            (5) to prohibit any compensation plan that could encourage 
        manipulation of reported earnings to enhance the compensation 
        of any employee;
            (6) to prohibit the use of emergency economic assistance 
        for entertainment and lobbying expenditures;
            (7) to sell or divest itself of any privately owned 
        passenger aircraft or interest in such aircraft, and to 
        prohibit the leasing of any such aircraft by or on behalf of 
        any officer, director, or employee of the recipient; and
            (8) to such other appropriate standards for executive 
        compensation and corporate governance as the Federal financial 
        entity overseeing the provision of such assistance determines 
        appropriate.
    (b) Applicability.--Subsection (a) shall apply whether or not the 
recipient of emergency economic assistance from a Federal financial 
entity sells assets to the Federal financial entity.
    (c) Duration.--The provisions of subsection (a) shall apply, and 
the written agreement of the recipient of assistance described in 
subsection (a) shall remain in effect, until such time as all 
obligations to the Federal financial entity are repaid in full, and 
such entity ceases to own any equity securities, including warrants or 
collateral, acquired from the recipient of such assistance.
    (d) Violations.--A violation of any provision of an agreement 
described in subsection (a) by the recipient of emergency economic 
assistance from a Federal financial entity shall be considered a 
default on the obligation of the recipient to the Federal financial 
entity, and such obligation shall be immediately due and payable to the 
Federal financial entity. The Federal financial entity shall be 
entitled to any and all remedies pursuant to such agreement and 
otherwise available under applicable provisions of law.

SEC. 4. CREATION OF A TAXPAYER PROTECTION PROSECUTION TASK FORCE.

    (a) In General.--The Attorney General of the United States shall 
immediately establish a Taxpayer Protection Prosecution Task Force 
(referred to in this section as the ``Task Force'') .
    (b) Duties.--The Task Force shall--
            (1) investigate and prosecute financial fraud cases or any 
        other violation of law that contributed to the collapse of our 
        financial markets; and
            (2) seek to claw back any ill-gotten gains, particularly by 
        those who received billions of dollars in compensation creating 
        the real estate and financial bubble.
    (c) Membership.--The membership of the Task Force shall include--
            (1) Department of Justice attorneys acting as a team of 
        Federal prosecutors;
            (2) special agents from the Federal Bureau of 
        Investigation, the Internal Revenue Service, and United States 
        Postal Service; and
            (3) additional assistance from the Board of Governors of 
        the Federal Reserve System, the Securities and Exchange 
        Commission, and other Federal banking regulators or 
        investigators.
    (d) Staffing.--The Task Force shall be staffed by Department of 
Justice career attorneys, enforcement attorneys, and other private and 
public sector legal professionals and experts in the violations of law 
under investigation.
    (e) Director.--The Director of the Task Force shall be appointed by 
the President, subject to the advice and consent of the Senate.
    (f) Outside Employment.--The Director of the Task Force and all 
professional members of the staff shall for a period of 2 years after 
their employment with the Task Force be prohibited from directly or 
indirectly representing any client in or in connection with any 
investigation relating to any of the work of the Task Force.
    (g) Report.--The Task Force shall file--
            (1) a public report directly with Congress every 6 months 
        on its activities; and
            (2) if necessary, a classified annex to protect the 
        confidentiality of ongoing investigations or attorney-client 
        privilege or other non-public information.
    (h) Statute of Limitations Recommendation.--The Task Force shall 
make recommendations to Congress not later than 60 days after the date 
of the establishment of the Task Force about extending the statute of 
limitation for complex financial fraud and other similar cases.

SEC. 5. ESTABLISHMENT OF FINANCIAL MARKET INVESTIGATION AND REFORM 
              COMMISSION TO LEARN HOW THE ECONOMIC CRISIS HAPPENED.

    (a) Establishment of Commission.--There is established the 
Financial Market Investigation and Reform Commission (in this Act 
referred to as the ``Commission''), the purposes of which are--
            (1) to examine and report on the facts and causes of the 
        collapse of the Nation's financial system and credit crisis;
            (2) to ascertain, evaluate, and report on the extent to 
        which Federal entities had information on financial practices 
        that they knew or should have known were risky or reckless, and 
        posed a threat to the well being of the Nation's financial 
        system;
            (3) to build on any investigations by the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of 
        Representatives, by other congressional committees and the 
        Federal banking agencies (as that term is defined in section 3 
        of the Federal Deposit Insurance Act), and the Securities and 
        Exchange Commission) to avoid duplication of effort;
            (4) to make a full and complete report of the reasons for 
        the worst financial system collapse since the Great Depression; 
        and
            (5) to report to the President and the Congress on its 
        findings, conclusions, and legislative and regulatory 
        recommendations to prevent a similar financial crisis in the 
        future.
    (b) Membership.--The Commission shall be composed of 10 members, of 
whom--
            (1) 1 member shall be appointed by the President, who shall 
        serve as chairperson of the Commission;
            (2) 1 member shall be appointed by the minority leader of 
        the Senate, in consultation with the minority leader of the 
        House of Representatives, who shall serve as vice-chairperson 
        of the Commission;
            (3) 2 members shall be appointed by the majority leader of 
        the Senate;
            (4) 2 members shall be appointed by the minority leader of 
        the Senate;
            (5) 2 members shall be appointed by the Speaker of the 
        House of Representatives; and
            (6) 2 members shall be appointed by the minority leader of 
        the House of Representatives.
    (c) Qualifications; Initial Meeting.--
            (1) Conflicts of interest.--No member of the Commission may 
        be an employee, or an immediate family member of an employee, 
        of a private entity or group of private entities that has 
        received or applied for emergency economic assistance from any 
        Federal financial entity (as defined in section 2).
            (2) Criteria.--Members of the Commission shall be chosen 
        from among United States citizens with national recognition and 
        expertise in--
                    (A) the operations of United States and global 
                financial markets;
                    (B) the safety and soundness of United States 
                financial institutions;
                    (C) the use of complex derivatives and other 
                structured financial instruments; or
                    (D) the investigation and prosecution of fraud and 
                other intricate financial crimes.
            (3) Limitation on public service.--Not more than 2 members 
        of the Commission may be appointed from among Federal, State, 
        or local government employees.
            (4) Timing.--Members of the Commission shall be appointed 
        not later than 30 days after the date of enactment of this Act.
            (5) Meetings.--The Commission shall meet not later than 45 
        days after the date of enactment of this Act. After the initial 
        meeting, the Commission shall meet upon the call of the 
        chairperson or a majority of the members of the Commission.
            (6) Quorum; vacancies.--Six members of the Commission shall 
        constitute a quorum. Any vacancy in the Commission shall not 
        affect its powers, but shall be filled in the same manner in 
        which the original appointment was made.
            (7) Procedures.--To carry out this Act, the Commission may 
        establish, by majority vote, any other rules for the conduct of 
        the business of the Commission, if such rules are not 
        inconsistent with this Act or other applicable law.
    (d) Powers and Duties.--The Commission may--
            (1) hold hearings, take testimony, and collect evidence, by 
        subpoena or otherwise;
            (2) issue subpoenas, under the signature of the chairperson 
        or any member designated by a majority of the members of the 
        Commission, by agreement of the chairperson and vice-
        chairperson, or by the affirmative vote of 6 members of the 
        Commission, and may enforce the subpoena in the United States 
        district court for the judicial district in which the 
        subpoenaed person resides;
            (3) contract with appropriate entities to enable the 
        Commission to discharge its duties;
            (4) obtain information from Federal departments and 
        agencies;
            (5) obtain assistance from Federal agencies, including the 
        General Services Administration, for support services and other 
        agencies for services, funds, facilities, and staff, as needed;
            (6) accept, use, and dispose of gifts or donations of 
        services and property; and
            (7) use the United States mails, in the same manner as 
        Federal departments and agencies.
    (e) Conflicts of Interest.--The Commission shall issue rules to 
manage or prohibit conflicts of interest involving its members, staff, 
consultants, and any others providing assistance to the Commission.
    (f) Reports.--The Commission shall submit to Congress 2 interim 
reports to discuss the Commission's progress. The Commission's final 
report shall be submitted to Congress 12 months after the date of 
enactment of this Act.
    (g) Administrative Support.--Upon the request of the Commission, 
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, 
including human resource management, budget, leasing, accounting, and 
payroll services.
    (h) Pay.--
            (1) Nongovernment employees.--Each member of the Commission 
        who is not otherwise employed by a Federal, State, or local 
        government entity shall be entitled to receive the daily 
        equivalent of the annual rate of basic pay payable for level IV 
        of the Executive Schedule under section 5315 of title 5 United 
        States Code, as in effect from time to time, for each day 
        (including travel time) during which such member is engaged in 
        the actual performance of duties of the Commission.
            (2) Government employees.--A member of the Commission who 
        is an officer or employee of a Federal, State or local 
        government entity shall serve without additional pay (or 
        benefits in the nature of compensation) for service as a member 
        of the Commission.
    (i) Travel Expenses.--Members of the Commission shall receive 
travel expenses, including per diem in lieu of subsistence, in 
accordance with subchapter I of chapter 57 of title 5, United States 
Code 55.
    (j) Staff.--
            (1) Appointment and compensation.--The chairperson of the 
        Commission, in consultation with the vice-chairperson, in 
        accordance with rules agreed upon by the Commission, may 
        appoint and fix the compensation of a staff director and such 
        other personnel as may be necessary to enable the Commission to 
        carry out its functions, without regard to the provisions of 
        title 5, United States Code, governing appointments in the 
        competitive service, and without regard to the provisions of 
        chapter 51 and subchapter II of chapter 53 of such title 
        relating to classification and General Schedule pay rates, 
        except that no rate of pay fixed under this subsection 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.
            (2) Personnel as federal employees.--
                    (A) In general.--Any personnel of the Commission 
                shall be employees under section 2105 of title 5, 
                United States Code, for purposes of chapters 63, 81, 
                83, 84, 85, 87, 89, and 90 of that title.
                    (B) 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.
                    (C) 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 to a person occupying a position at 
                level IV of the Executive Schedule under section 5315 
                of title 5, United States Code.
    (k) Termination.--The Commission shall terminate 60 days after the 
date of submission of its final report under subsection (f).
    (l) Funding.--There are authorized to be appropriated to the 
Commission such sums as are necessary to carry out this Act, to remain 
available, without fiscal year limitation, until the termination of the 
Commission.