To amend the Federal Deposit Insurance Act and the Federal Credit Union Act to provide more effective reviews of losses in the Deposit Insurance Fund and the Share Insurance Fund by the Inspectors General of the several Federal banking agencies and the National Credit Union Administration Board, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Improved Oversight by Financial 
Inspectors General Act of 2009''.

SEC. 2. AMENDMENT TO DEFINITION OF MATERIAL LOSS AND NONMATERIAL LOSSES 
              TO THE DEPOSIT INSURANCE FUND FOR PURPOSES OF INSPECTORS 
              GENERAL REVIEWS.

    (a) In General.--Section 38(k) of the Federal Deposit Insurance Act 
(U.S.C. 1831o(k)) is amended--
            (1) in paragraph (2), by striking subparagraph (B) and 
        inserting the following new subparagraph:
                    ``(B) Material loss defined.--The term `material 
                loss' means any estimated loss in excess of 
                $200,000,000, occurring after March 31, 2009.'';
            (2) in that portion of paragraph (4)(A) that precedes 
        clause (i), by striking ``the report'' and inserting ``any 
        reports under this subsection on losses'';
            (3) by striking paragraph (6);
            (4) by redesignating paragraph (5) as paragraph (6); and
            (5) by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) Losses that are not material.--
                    ``(A) Semiannual report.--For the 6-month period 
                ending on September 30, 2009, and each 6-month period 
                thereafter, the Inspector General of each Federal 
                banking agency shall--
                            ``(i) identify losses estimated to be 
                        incurred by the Deposit Insurance Fund during 
                        that 6-month period with respect to insured 
                        depository institutions supervised by such 
                        Federal banking agency;
                            ``(ii) for each loss to the Deposit 
                        Insurance Fund (as a loss to such Fund is 
                        defined in paragraph (2)(A)) that is not a 
                        material loss, determine the grounds identified 
                        by the Federal banking agency or State bank 
                        supervisor under section 11(c)(5) for 
                        appointing the Corporation as receiver and 
                        whether any unusual circumstances exist that 
                        might warrant an in-depth review of the loss; 
                        and
                            ``(iii) prepare a written report to the 
                        appropriate Federal banking agency and for the 
                        Congress on the results of the Inspector 
                        General's determinations, including--
                                    ``(I) the identity of any loss that 
                                warrants an in-depth review and the 
                                reasons why such review is warranted, 
                                or if the Inspector General determines 
                                that no review is warranted, an 
                                explanation of such determination; and
                                    ``(II) for each loss identified in 
                                subclause (I) that warrants an in-depth 
                                review, a date by which such review, 
                                and a report on the review prepared in 
                                a manner consistent with reports under 
                                paragraph (1)(A), will be completed.
                    ``(B) Deadline for semiannual report.--The 
                Inspector General of each Federal banking agency 
                shall--
                            ``(i) comply with the semiannual report 
                        requirements of paragraph (A) expeditiously, 
                        and in any event within 90 days after the end 
                        of the 6-month period covered by the report; 
                        and
                            ``(ii) provide a copy of the report to any 
                        Member of Congress upon request.''.
    (b) Technical and Conforming Amendment.--The heading for subsection 
(k) of section 38 of the Federal Deposit Insurance Act (U.S.C. 
1831o(k)) is amended--
            (1) by striking ``Review'' and inserting ``Reviews''; and
            (2) by striking ``Material Loss'' and inserting ``Losses''.

SEC. 3. AMENDMENT TO DEFINITION OF MATERIAL LOSS AND NONMATERIAL LOSSES 
              TO THE NATIONAL CREDIT UNION SHARE INSURANCE FUND FOR 
              PURPOSES OF INSPECTORS GENERAL REVIEWS.

    (a) In General.--Subsection (j) of section 216 of the Federal 
Credit Union Act (12 U.S.C. 1790d(j)) is amended to read as follows:
    ``(j) Reviews Required When Share Insurance Fund Experiences 
Losses.--
            ``(1) In general.--If the Fund incurs a material loss with 
        respect to an insured credit union, the inspector general of 
        the Board shall--
                    ``(A) make a written report to the Board reviewing 
                the Administration's supervision of the credit union 
                (including the Administration's implementation of this 
                section), which shall--
                            ``(i) ascertain why the credit union's 
                        problems resulted in a material loss to the 
                        Fund; and
                            ``(ii) make recommendations for preventing 
                        any such loss in the future; and
                    ``(B) provide a copy of the report to--
                            ``(i) the Comptroller General of the United 
                        States; (ii) the Corporation (if the agency is 
                        not the Corporation);
                            ``(ii) in the case of a State credit union, 
                        the appropriate State supervisor; and
                            ``(iii) upon request by any Member of 
                        Congress, to that Member.
            ``(2) Material loss defined.--For purposes of determining 
        whether the Fund has incurred a material loss with respect to 
        an insured credit union, a loss is material if it exceeds the 
        sum of--
                    ``(A) $25,000,000; and
                    ``(B) an amount equal to 10 percent of the total 
                assets of the credit union at the time at which the 
                Board initiated assistance under section 1788 of this 
                title or was appointed liquidating agent.
            ``(3) Public disclosure required.--
                    ``(A) In general.--The Board shall disclose a 
                report under this subsection upon request under section 
                552 of title 5 without excising--
                            ``(i) any portion under section 552(b)(5) 
                        of that title; or
                            ``(ii) any information about the insured 
                        credit union (other than trade secrets) or 
                        paragraph (8) of section 552(b) of that title.
                    ``(B) Exception.--Subparagraph (A) shall not be 
                construed as requiring the agency to disclose the name 
                of any customer of the insured credit union (other than 
                an institution-affiliated party), or information from 
                which such a person's identity could reasonably be 
                ascertained.
            ``(4) Losses that are not material.--
                    ``(A) Semiannual report.--For the 6-month period 
                ending on September 30, 2009, and each 6-month period 
                thereafter, the Inspector General of the Board shall--
                            ``(i) identify losses estimated to be 
                        incurred by the Fund during that 6-month period 
                        with respect to insured credit unions;
                            ``(ii) for each loss to the Fund that is 
                        not a material loss, determine the grounds 
                        identified by the Board or the State official 
                        having jurisdiction over a State credit union 
                        for appointing the Board the liquidating agent 
                        for any Federal or State credit union and 
                        whether any unusual circumstances exist that 
                        might warrant an in-depth review of the loss; 
                        and
                            ``(iii) prepare a written report to the 
                        Board and for the Congress on the results of 
                        the Inspector General's determinations, 
                        including--
                                    ``(I) the identity of any loss that 
                                warrants an in-depth review and the 
                                reasons why such review is warranted, 
                                or if the Inspector General determines 
                                that no review is warranted, an 
                                explanation of such determination; and
                                    ``(II) for each loss identified in 
                                subclause (I) that warrants an in-depth 
                                review, a date by which such review, 
                                and a report on the review prepared in 
                                a manner consistent with reports under 
                                paragraph (1)(A), will be completed.
                    ``(B) Deadline for semiannual report.--The 
                Inspector General of the Board shall--
                            ``(i) comply with the semiannual report 
                        requirements of paragraph (A) expeditiously, 
                        and in any event within 90 days after the end 
                        of the 6-month period covered by the report; 
                        and
                            ``(ii) provide a copy of the report to any 
                        Member of Congress upon request.
            ``(5) GAO review.--The Comptroller General of the United 
        States shall, under such conditions as the Comptroller General 
        determines to be appropriate, review reports made under 
        paragraph (1), including the extent to which the Inspector 
        General of the Board complied with section 8L of the Inspector 
        General Act of 1978 with respect to each such report, and 
        recommend improvements in the supervision of insured credit 
        unions (including the implementation of this section).''.

            Passed the House of Representatives July 29, 2009.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.

Summary: Improved Oversight by Financial Inspectors General Act of 2009 - Amends the Federal Deposit Insurance Act (FDIA) to revise the meaning of material loss to repeal its definition as an amount exceeding the greater of $25 million or 2 of the institution's total assets at the time the Federal Deposit Insurance Corporation (FDIC) initiated assistance or was appointed receiver. Counts as a material loss any estimated loss in excess of $200 million occurring after March 31, 2009. Requires the Inspector General (IG) of each federal banking agency to report semiannually to the appropriate federal agency and to Congress regarding: (1) losses estimated to be incurred by the Deposit Insurance Fund (DIF) with respect to insured depository institutions the agency supervises. (2) each loss that is not a material loss, the grounds for appointing the FDIC as receiver, and whether any unusual circumstances exist that might warrant an in-depth review of the loss. And (3) the results of the IG's determinations. Amends the Federal Credit Union Act (FCUA) to require the IG of the National Credit Union Administration (NCUA) to report to the NCUA Board about any material loss to the National Credit Union Share Insurance Fund (NCUSIF) with respect to an insured credit union regarding: (1) why the credit union's problems resulted in a material loss to the NCUSIF. And (2) how such loss may be prevented in the future. Revises the definition of material loss to the NCUSIF, currently an amount exceeding the sum of $10 million and 10 of the credit union's total assets at the time the NCUA Board initiated assistance or was appointed liquidating agent. Increases the $10 million to $25 million. Requires the IG of the NCUA Board to report semiannually to the Board and Congress regarding: (1) losses estimated to be incurred by the NCUSIF with respect to insured credit unions. (2) each loss that is not a material loss, the grounds for appointing the NCUA Board as liquidating agent for any federal or state credit union, and whether any unusual circumstances exist that might warrant an in-depth review of the loss. And (3) the results of the IG's determinations. Instructs the Comptroller General to: (1) review reports regarding material losses to the NCUSIF, and (2) make recommendations for improvements in the supervision of insured credit unions.