SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Outsourcing Banking Enforcement 
and Examination Act''.

SEC. 2. USE OF CONSULTANTS IN CONSENT ORDERS.

    The Federal Deposit Insurance Act (12 U.S.C. 1811) is amended by 
adding at the end the following:

``SEC. 51. USE OF CONSULTANTS IN CONSENT ORDERS.

    ``(a) In General.--An appropriate Federal banking agency that 
enters into a consent order with a person regulated by such agency may 
only use an independent consultant in carrying out such order if all of 
the following requirements are met:
            ``(1) Transparency.--No less than two weeks before any 
        activity under the consent order commences, the appropriate 
        Federal banking agency shall make the following information 
        available to the public:
                    ``(A) The full and unredacted consent agreement 
                resulting from the consent order.
                    ``(B) All material information related to any past 
                business relationships of the independent consultants, 
                regulators, financial institutions, and third party 
                service providers to the order, and their agents and 
                employees, regardless of their involvement in the 
                execution of the order.
                    ``(C) A detailed estimate of engagement costs.
                    ``(D) A detailed description of a well-defined 
                methodology for fulfilling the consent order.
            ``(2) Reporting.--The appropriate Federal banking agency 
        shall issue a report to the Congress, not less than once every 
        quarter until the consent order ends, detailing the progress in 
        fulfilling the consent order and the performance of the 
        independent consultant.
            ``(3) Restriction on participation.--No independent 
        consultant carrying out a consent order has prior or current 
        work that will be under review in such consent order or a 
        concurrent and substantially similar consent order.
            ``(4) Retention and payment of consultant.--The independent 
        consultant is hired, and paid, directly by the appropriate 
        Federal banking agency and the appropriate Federal banking 
        agency is to be reimbursed for such expenses by the entity 
        subject to the consent order.
            ``(5) Restriction on application of penalties to other 
        ongoing enforcement actions.--Any remediation or penalties 
        under the consent order will not apply to, or be settled in 
        conjunction with, any other consent order, settlement, or 
        enforcement action.
    ``(b) Private Right of Action.--If an independent consultant fails 
to comply with the contract under which the consultant is assisting the 
appropriate Federal banking agency in carrying out a consent order 
which requires financial remediation to a person or class of persons, 
any person or class of persons aggrieved by such failure may bring a 
civil action in a court of competent jurisdiction for damages resulting 
from such violation, and may obtain other appropriate relief, including 
equitable relief. If the plaintiff prevails in any such action, the 
court shall award the plaintiff any litigation costs reasonably 
incurred, together with reasonable attorneys' fees and reasonable 
expert witness fees, as determined by the court.
    ``(c) Clawback of Fees.--
            ``(1) In general.--If a court determines that an 
        independent consultant has violated the terms of the contract 
        with the appropriate Federal banking agency or has failed to 
        disclose required conflict of interest information, the 
        independent consultant shall repay the appropriate Federal 
        banking agency all fees received by the consultant during the 
        period of time such violation or failure was occurring.
            ``(2) Safe harbor.--If the independent consultant made all 
        reasonable efforts to uncover conflicts of interest among the 
        consultant's agents and employees, the consultant shall not be 
        subject to paragraph (1) with respect to a failure to disclose 
        required conflict of interest information.
    ``(d) Employment Restriction.--An employee of an appropriate 
Federal banking agency that was involved in approving an independent 
consultant to assist in carrying out a consent order may not seek 
employment with, or be employed by, such independent consultant during 
any period in which such consent order is in effect, any amendment to 
such consent order is in effect, or any subsequent consent order based 
on the original consent order is in effect.''.

SEC. 3. SIGTARP TO OVERSEE USE OF CONSULTANTS.

    (a) In General.--Section 121 of the Emergency Economic 
Stabilization Act of 2008 (12 U.S.C. 5231) is amended--
            (1) in subsection (c), by adding at the end the following:
            ``(5) In addition, the Special Inspector General shall also 
        have the duties and responsibilities of providing oversight 
        of--
                    ``(A) consent orders entered into by an appropriate 
                Federal banking agency; and
                    ``(B) the performance of independent consultants 
                hired by an appropriate Federal banking agency to 
                assist in carrying out such consent orders, as 
                described under section 51 of the Federal Deposit 
                Insurance Act.''; and
            (2) by amending subsection (k) to read as follows:
    ``(k) Oversight of Consent Orders.--
            ``(1) Right of action related to consent order 
        monitoring.--The Special Inspector General may bring a civil 
        action in any court of competent jurisdiction against an 
        independent consultant described under section 51(a) of the 
        Federal Deposit Insurance Act for damages and equitable relief 
        for any violations of the consultant's duties under the 
        contract under which the consultant is assisting an appropriate 
        Federal banking agency in carrying out a consent order.
            ``(2) Whistleblower incentives and protection related to 
        consent order monitoring.--
                    ``(A) In general.--The Special Inspector General 
                shall establish a whistleblower program under which--
                            ``(i) the Special Inspector General pays an 
                        award or awards to 1 or more whistleblowers who 
                        voluntarily provide original information to the 
                        Special Inspector General that leads to the 
                        successful enforcement of a judicial or 
                        administrative action brought by the Special 
                        Inspector General against an independent 
                        consultant described under section 51(a) of the 
                        Federal Deposit Insurance Act that results in 
                        monetary sanctions exceeding $1,000,000; and
                            ``(ii) the employer of a whistleblower may 
                        not discriminate against a whistleblower in the 
                        terms and conditions of employment of the 
                        whistleblower because of any lawful act done by 
                        the whistleblower.
                    ``(B) Form of program.--To the extent practicable, 
                the whistleblower program established under this 
                subsection shall be carried out in the same manner as 
                the whistleblower provision under section 21F of the 
                Securities Exchange Act of 1934 (15 U.S.C. 78u-6).''.
Stop Outsourcing Banking Enforcement and Examination Act - Amends the Federal Deposit Insurance Act to prescribe requirements with which a federal banking agency must comply in order to use an independent consultant in implementing a consent order with a person it regulates. Requires the agency to: (1) make specified information about the consent agreement and the independent consultant available to the public, (2) send Congress a quarterly status report, and (3) hire and pay the consultant directly (and receive reimbursement by the entity subject to the consent agreement). Declares that any remediation or penalties under the consent order will not apply to, or be settled in conjunction with, any other consent order, settlement, or enforcement action. Permits a private right of action by any person or class of persons aggrieved by the failure of an independent consultant to comply with the contract under which the consultant assists the agency if the consent order requires financial remediation to such person or class.  Requires a repayment (clawback) of fees to the agency from the independent consultant upon court determination that the consultant has violated either the terms of the contract or has failed to disclose required conflict of interest information.  Prohibits federal banking agency staff who were involved in approving an independent consultant from seeking employment with the consultant during any period in which the consent order is in effect. Amends the Emergency Economic Stabilization Act of 2008 to confer oversight duties upon the Special Inspector General (SIG) for the Troubled Asset Relief Program (TARP) regarding: (1) consent orders entered into by a federal banking agency, and (2) the performance of independent consultants hired by the agency to assist in implementing such consent orders. Repeals the SIG Office termination date. Authorizes the SIG to bring a civil action against an independent consultant for damages and equitable relief for violations of the consultant's duties under the contract. Directs the SIG to establish an whistleblower program which: (1) pays awards to whistleblowers who voluntarily provide original information leading to successful enforcement of a judicial or administrative action brought by the SIG against an independent consultant that results in monetary sanctions exceeding $1 million, and (2) prohibits a whistleblower's employer from discriminating against the whistleblower because of any lawful act the whistleblower performs.
Stop Outsourcing Banking Enforcement and Examination Act