IB 

Union Calendar No. 441 

112TH CONGRESS 

2D SESSION H. R. 459 

[Report No. 112–607, Part I] 

To require a full audit of the Board of Governors of the Federal Reserve 

System and the Federal reserve banks by the Comptroller General of 

the United States before the end of 2012, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 26, 2011 

Mr. PAUL (for himself, Mr. COFFMAN of Colorado, Mr. THOMPSON of Pennsylvania, Mr. ALEXANDER, Mr. MCCLINTOCK, Mr. BILIRAKIS, Mr. BACHUS, Mr. CHAFFETZ, Mr. FORTENBERRY, Mr. LATOURETTE, Mr. BURTON

of Indiana, Mr. POSEY, Mr. JONES, Mr. REED, Mr. BROUN of Georgia, 

Mr. HELLER, Mr. BARTON of Texas, Mr. WOODALL, Mr. MCCAUL, Mr. 

ROHRABACHER, Mr. LANCE, Mrs. MCMORRIS RODGERS, Mr. SIMPSON, 

Mr. SMITH of Nebraska, Mr. LAMBORN, Mr. SMITH of Texas, Mr. REHBERG, Mrs. MYRICK, Mr. MCKEON, Mr. WITTMAN, Mrs. BLACKBURN, 

Mr. MARCHANT, Mr. GALLEGLY, Ms. KAPTUR, Ms. WOOLSEY, Mr. 

SCHOCK, Mr. BURGESS, Mr. ROSS of Florida, Mr. CALVERT, Mr. FLORES, Mr. GRAVES of Georgia, Mr. MCKINLEY, Mr. LOBIONDO, Mr. GARY

G. MILLER of California, Mr. MILLER of Florida, Mr. YOUNG of Florida, 

Mr. FORBES, Mr. GARRETT, Mr. GERLACH, Mr. GOHMERT, Mr. 

HUIZENGA of Michigan, Mr. KUCINICH, Mr. YOUNG of Alaska, Mr. 

CAMPBELL, Mr. PETRI, and Mr. BARTLETT) introduced the following bill; 

which was referred to the Committee on Oversight and Government Reform 

JULY 17, 2012 

Reported with amendments and referred to the Committee on Financial Services for a period ending not later than July 18, 2012, for consideration 

of such provisions of the bill and amendment as fall within the jurisdiction of that committee pursuant to clause 1(h) of rule X 

[Strike out all after the enacting clause and insert the part printed in italic] 

JULY 18, 2012 

Additional sponsors: Mr. DUNCAN of Tennessee, Mr. CANSECO, Mr. RIGELL, 


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Mr. NUGENT, Mr. MULVANEY, Mr. CARTER, Mr. DAVIS of Kentucky, Mr. 

ROSS of Arkansas, Mr. DREIER, Mr. BUCHANAN, Mr. AMASH, Mr. 

LUETKEMEYER, Mr. WESTMORELAND, Mr. SCHWEIKERT, Mr. 

LANKFORD, Mr. FINCHER, Mr. WALBERG, Mrs. ADAMS, Mr. SENSENBRENNER, Mr. BARLETTA, Ms. GRANGER, Mr. MACK, Mr. THORNBERRY, 

Mr. ALTMIRE, Mr. WALSH of Illinois, Mr. MCCOTTER, Mr. WILSON of 

South Carolina, Ms. BALDWIN, Mr. JOHNSON of Illinois, Mr. GOODLATTE, Mr. GIBSON, Mr. LATHAM, Mr. MARINO, Mr. TERRY, Mr. 

RIBBLE, Mr. STUTZMAN, Mr. SAM JOHNSON of Texas, Mr. SCHRADER, 

Mr. HARRIS, Mr. CRENSHAW, Mr. DEFAZIO, Mr. GRIFFITH of Virginia, 

Mr. KINGSTON, Mr. MANZULLO, Mr. MICHAUD, Mr. ROGERS of Michigan, Mr. YOUNG of Indiana, Mr. POLIS, Mr. MCINTYRE, Mr. HECK, Ms. 

HERRERA BEUTLER, Ms. FOXX, Mr. STEARNS, Mr. GOWDY, Mrs. LUMMIS, Mrs. BIGGERT, Ms. JENKINS, Mr. FLAKE, Mr. FARENTHOLD, Mr. 

CONYERS, Mr. VISCLOSKY, Mr. MURPHY of Pennsylvania, Mr. TIPTON, 

Mr. SCHILLING, Mr. KLINE, Mr. GRAVES of Missouri, Mr. GRIFFIN of 

Arkansas, Mrs. BACHMANN, Mr. AUSTRIA, Mr. SHIMKUS, Mr. NEUGEBAUER, Mr. FRELINGHUYSEN, Mr. HERGER, Mr. DUNCAN of South 

Carolina, Mr. PLATTS, Mr. GUINTA, Mr. CULBERSON, Mr. GARDNER, 

Mr. TIERNEY, Mr. YARMUTH, Mr. STARK, Mr. RUNYAN, Mr. 

HUELSKAMP, Mr. LATTA, Mr. WU, Mr. LABRADOR, Mr. ROGERS of Alabama, Mr. COLE, Mr. ROKITA, Mr. BENISHEK, Mr. KELLY, Mr. SHUSTER, Mr. MCCARTHY of California, Mr. BOUSTANY, Mr. HURT, Mr. 

ROTHMAN of New Jersey, Mr. TURNER of Ohio, Mr. TIBERI, Mr. 

HULTGREN, Mr. KISSELL, Mr. AKIN, Mr. SULLIVAN, Mr. WELCH, Mr. 

BONNER, Mr. BILBRAY, Mr. PRICE of Georgia, Mr. MCGOVERN, Mr. 

HINCHEY, Mr. MEEHAN, Mr. POMPEO, Mr. ROSKAM, Mr. GOSAR, Mr. 

YODER, Mrs. MILLER of Michigan, Mr. WOLF, Ms. ZOE LOFGREN of 

California, Mr. ROE of Tennessee, Mr. DUFFY, Mr. GINGREY of Georgia, 

Mr. AUSTIN SCOTT of Georgia, Mr. WOMACK, Mr. CAMP, Mr. GUTHRIE, 

Mr. ROONEY, Mr. SCOTT of South Carolina, Mrs. HARTZLER, Mr. 

FITZPATRICK, Mrs. NOEM, Mr. BARROW, Mr. SCALISE, Mr. LOEBSACK, 

Mr. WEST, Mr. GRIMM, Mr. LUCAS, Mr. GENE GREEN of Texas, Mr. 

WALDEN, Mr. CRAVAACK, Mr. LANDRY, Ms. SPEIER, Mr. PAULSEN, Mr. 

AMODEI, Mrs. BONO MACK, Mr. BERG, Mr. LEWIS of California, Mr. 

POE of Texas, Mr. QUAYLE, Mrs. SCHMIDT, Mr. BROOKS, Mrs. BLACK, 

Mr. BISHOP of Utah, Mr. UPTON, Mr. CRAWFORD, Mr. BISHOP of Georgia, Mr. CASSIDY, Mr. PEARCE, Mr. LIPINSKI, Mr. CONAWAY, Mr. HINOJOSA, Mr. NUNNELEE, Mr. MICA, Mr. GIBBS, Mr. STIVERS, Mr. BASS

of New Hampshire, Mr. MCDERMOTT, Mr. SMITH of New Jersey, Mr. 

KINZINGER of Illinois, Mr. COBLE, Mr. HALL, Mr. PETERSON, Mr. DANIEL E. LUNGREN of California, Mr. WEBSTER, Mr. JOHNSON of Ohio, 

Mr. PENCE, Mr. ROGERS of Kentucky, Mr. TONKO, Mr. FLEISCHMANN, 

Mrs. EMERSON, Mr. HARPER, Mrs. CAPITO, Mr. KING of Iowa, Mr. BOSWELL, Mr. DENT, Mr. CHANDLER, Mr. DIAZ-BALART, Mr. FLEMING, Mr. 

JORDAN, Mr. DESJARLAIS, Mr. LONG, Mrs. ELLMERS, Mr. WHITFIELD, 

Mr. HUNTER, Mr. MCHENRY, Mr. DENHAM, Mr. FRANKS of Arizona, 

Mr. CHABOT, Mr. HANNA, Ms. ROS-LEHTINEN, Mr. HENSARLING, Mr. 

SESSIONS, Mr. ADERHOLT, Mr. RENACCI, Mr. REYES, Mr. DOGGETT, 

Ms. BUERKLE, Mr. BRALEY of Iowa, Mr. PITTS, Mr. OLSON, Mr. SHERMAN, Mr. CLARKE of Michigan, Mr. GRIJALVA, Mr. BUCSHON, Mr. HASVerDate Mar 15 2010 03:52 Jul 19, 2012 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H459.RH H459

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•HR 459 RH

TINGS of Washington, Ms. PINGREE of Maine, Ms. BERKLEY, Mr. 

SCHIFF, Ms. HAYWORTH, Mr. ROYCE, Mr. PALAZZO, and Mr. OWENS

JULY 18, 2012 

The Committee on Financial Services discharged; committed to the Committee 

of the Whole House on the State of the Union and ordered to be printed 


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•HR 459 RH

A BILL 

To require a full audit of the Board of Governors of the 

Federal Reserve System and the Federal reserve banks 

by the Comptroller General of the United States before 

the end of 2012, and for other purposes. 


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•HR 459 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Reserve 

5 Transparency Act of 2011’’. 

6 SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE 

7 BOARD OF GOVERNORS OF THE FEDERAL RE8 SERVE SYSTEM. 

9 (a) IN GENERAL.—Notwithstanding section 714 of 

10 title 31, United States Code, or any other provision of law, 

11 an audit of the Board of Governors of the Federal Reserve 

12 System and the Federal reserve banks under subsection 

13 (b) of such section 714 shall be completed before the end 

14 of 2012. 

15 (b) REPORT.— 

16 (1) IN GENERAL.—A report on the audit re17 quired under subsection (a) shall be submitted by 

18 the Comptroller General to the Congress before the 

19 end of the 90-day period beginning on the date on 

20 which such audit is completed and made available to 

21 the Speaker of the House, the majority and minority 

22 leaders of the House of Representatives, the major23 ity and minority leaders of the Senate, the Chairman 

24 and Ranking Member of the committee and each 

25 subcommittee of jurisdiction in the House of RepVerDate Mar 15 2010 03:52 Jul 19, 2012 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6401 E:\BILLS\H459.RH H459

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1 resentatives and the Senate, and any other Member 

2 of Congress who requests it. 

3 (2) CONTENTS.—The report under paragraph 

4 (1) shall include a detailed description of the find5 ings and conclusion of the Comptroller General with 

6 respect to the audit that is the subject of the report, 

7 together with such recommendations for legislative 

8 or administrative action as the Comptroller General 

9 may determine to be appropriate. 

10 (c) REPEAL OF CERTAIN LIMITATIONS.—Subsection 

11 (b) of section 714 of title 31, United States Code, is 

12 amended by striking all after ‘‘in writing.’’. 

13 (d) TECHNICAL AND CONFORMING AMENDMENT.— 

14 Section 714 of title 31, United States Code, is amended 

15 by striking subsection (f). 

16 SECTION 1. SHORT TITLE. 

17 This Act may be cited as the ‘‘Federal Reserve Trans18 parency Act of 2012’’. 

19 SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE 

20 BOARD OF GOVERNORS OF THE FEDERAL RE21 SERVE SYSTEM. 

22 (a) IN GENERAL.—Notwithstanding section 714 of title 

23 31, United States Code, or any other provision of law, an 

24 audit of the Board of Governors of the Federal Reserve Sys25 tem and the Federal reserve banks under subsection (b) of 


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•HR 459 RH

1 such section 714 shall be completed within 12 months of 

2 the date of enactment of this Act. 

3 (b) REPORT.— 

4 (1) IN GENERAL.—A report on the audit re5 quired under subsection (a) shall be submitted by the 

6 Comptroller General to the Congress before the end of 

7 the 90-day period beginning on the date on which 

8 such audit is completed and made available to the 

9 Speaker of the House, the majority and minority 

10 leaders of the House of Representatives, the majority 

11 and minority leaders of the Senate, the Chairman 

12 and Ranking Member of the committee and each sub13 committee of jurisdiction in the House of Representa14 tives and the Senate, and any other Member of Con15 gress who requests it. 

16 (2) CONTENTS.—The report under paragraph (1) 

17 shall include a detailed description of the findings 

18 and conclusion of the Comptroller General with re19 spect to the audit that is the subject of the report, to20 gether with such recommendations for legislative or 

21 administrative action as the Comptroller General 

22 may determine to be appropriate. 

23 (c) REPEAL OF CERTAIN LIMITATIONS.—Subsection 

24 (b) of section 714 of title 31, United States Code, is amend25 ed by striking all after ‘‘in writing.’’. 


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•HR 459 RH

1 (d) TECHNICAL AND CONFORMING AMENDMENT.—Sec2 tion 714 of title 31, United States Code, is amended by 

3 striking subsection (f). 

4 SEC. 3. AUDIT OF LOAN FILE REVIEWS REQUIRED BY EN5 FORCEMENT ACTIONS. 

6 (a) IN GENERAL.—The Comptroller General of the 

7 United States shall conduct an audit of the review of loan 

8 files of homeowners in foreclosure in 2009 or 2010, required 

9 as part of the enforcement actions taken by the Board of 

10 Governors of the Federal Reserve System against supervised 

11 financial institutions. 

12 (b) CONTENT OF AUDIT.—The audit carried out pur13 suant to subsection (a) shall consider, at a minimum— 

14 (1) the guidance given by the Board of Governors 

15 of the Federal Reserve System to independent consult16 ants retained by the supervised financial institutions 

17 regarding the procedures to be followed in conducting 

18 the file reviews; 

19 (2) the factors considered by independent con20 sultants when evaluating loan files; 

21 (3) the results obtained by the independent con22 sultants pursuant to those reviews; 

23 (4) the determinations made by the independent 

24 consultants regarding the nature and extent of finan25 cial injury sustained by each homeowner as well as 


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1 the level and type of remediation offered to each 

2 homeowner; and 

3 (5) the specific measures taken by the inde4 pendent consultants to verify, confirm, or rebut the 

5 assertions and representations made by supervised fi6 nancial institutions regarding the contents of loan 

7 files and the extent of financial injury to homeowners. 

8 (c) REPORT.—Not later than the end of the 6-month 

9 period beginning on the date of the enactment of this Act, 

10 the Comptroller General shall issue a report to the Congress 

11 containing all findings and determinations made in car12 rying out the audit required under subsection (a). 

Amend the title so as to read: ‘‘A bill to require a 

full audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks by the 

Comptroller General of the United States, and for other 

purposes.’’. 


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Union Calendar No. 441 

112TH CONGRESS 

2D SESSION H. R. 459 

[Report No. 112–607, Part I] 

A BILL 

To require a full audit of the Board of Governors 

other purposes. United States before the end of 2012, and for reserve banks by the Comptroller General of the of the Federal Reserve System and the Federal 

JULY 18, 2012 

The Committee on Financial Services discharged; comState of the Union and ordered to be printed mitted to the Committee of the Whole House on the 


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