I 

111TH CONGRESS 

1ST SESSION H. R. 74 

To establish the Financial Oversight Commission, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 6, 2009 

Mr. ISSA introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To establish the Financial Oversight Commission, and for 

other purposes. 

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 ‘‘Financial Oversight 

5 Commission Act of 2009’’. 

6 SEC. 2. ESTABLISHMENT OF COMMISSION. 

7 There is established in the legislative branch the Fi8 nancial Oversight Commission (hereafter in this Act re9 ferred to as the ‘‘Commission’’). 

10 SEC. 3. PURPOSES. 

11 The purposes of the Commission are to— 


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1 (1) examine and report upon the facts and 

2 causes relating to the financial crisis of 2008; 

3 (2) ascertain, evaluate, and report on the evi4 dence developed by all relevant governmental agen5 cies regarding the facts and circumstances sur6 rounding the crisis; 

7 (3) build upon the investigations of other enti8 ties, and avoid unnecessary duplication, by reviewing 

9 the findings, conclusions, and recommendations of 

10 other executive branch, congressional, or inde11 pendent commission investigations into the financial 

12 crisis of 2008; 

13 (4) make a full and complete accounting of the 

14 circumstances surrounding the crisis, the private 

15 sector and government role in causing the crisis, and 

16 the extent of the United States preparedness for, 

17 and immediate response to, the crisis; and 

18 (5) investigate and report to the President and 

19 Congress on its findings, conclusions, and rec20 ommendations for corrective measures that can be 

21 taken to prevent further economic breakdown. 

22 SEC. 4. COMPOSITION OF COMMISSION. 

23 (a) MEMBERS.—The Commission shall be composed 

24 of 10 members, of whom— 


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1 (1) 1 member shall be appointed by the Presi2 dent, who shall serve as chairman of the Commis3 sion; 

4 (2) 1 member shall be appointed by the leader 

5 of the Senate (majority or minority leader, as the 

6 case may be) of the Democratic Party, in consulta7 tion with the leader of the House of Representatives 

8 (majority or minority leader, as the case may be) of 

9 the Democratic Party, who shall serve as vice chair10 man of the Commission; 

11 (3) 2 members shall be appointed by the senior 

12 member of the Senate leadership of the Democratic 

13 Party; 

14 (4) 2 members shall be appointed by the senior 

15 member of the leadership of the House of Represent16 atives of the Republican Party; 

17 (5) 2 members shall be appointed by the senior 

18 member of the Senate leadership of the Republican 

19 Party; and 

20 (6) 2 members shall be appointed by the senior 

21 member of the leadership of the House of Represent22 atives of the Democratic Party. 

23 (b) QUALIFICATIONS; INITIAL MEETING.— 


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1 (1) POLITICAL PARTY AFFILIATION.—Not more 

2 than 5 members of the Commission shall be from 

3 the same political party. 

4 (2) NONGOVERNMENTAL APPOINTEES.—An in5 dividual appointed to the Commission may not be an 

6 officer or employee of the Federal Government or 

7 any State or local government. 

8 (3) OTHER QUALIFICATIONS.—It is the sense of 

9 Congress that individuals appointed to the Commis10 sion should be prominent United States citizens, 

11 with national recognition and significant depth of ex12 perience in such professions as governmental service, 

13 financial services, economics, law, public administra14 tion, commerce, and foreign markets. 

15 (4) DEADLINE FOR APPOINTMENT.—All mem16 bers of the Commission shall be appointed before the 

17 end of the 60-day period beginning on the date of 

18 the enactment of this Act. 

19 (5) INITIAL MEETING.—The Commission shall 

20 meet and begin the operations of the Commission as 

21 soon as practicable. 

22 (c) QUORUM; VACANCIES.—After its initial meeting, 

23 the Commission shall meet upon the call of the chairman 

24 or a majority of its members. Six members of the Commis25 sion shall constitute a quorum. Any vacancy in the ComVerDate Nov 24 2008 00:03 Jan 09, 2009 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H74.IH H74

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1 mission shall not affect its powers, but shall be filled in 

2 the same manner in which the original appointment was 

3 made. 

4 SEC. 5. FUNCTIONS OF COMMISSION. 

5 (a) IN GENERAL.—The functions of the Commission 

6 are to— 

7 (1) conduct an investigation that— 

8 (A) investigates relevant facts and cir9 cumstances relating to the financial crisis of 

10 2008, including any relevant legislation, Execu11 tive order, regulation, plan, policy, practice, or 

12 procedure; and 

13 (B) may include relevant facts and cir14 cumstances relating to— 

15 (i) government sponsored enterprises 

16 (GSE), including the Federal National 

17 Mortgage Association (Fannie Mae), and 

18 the Federal Home Loan Mortgage Cor19 poration (Freddie Mac); 

20 (ii) the stock market; 

21 (iii) the housing market; 

22 (iv) credit rating agencies; 

23 (v) the financial services sector, in24 cluding hedge funds, private equity and the 

25 insurance industry; 


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1 (vi) the role of congressional oversight 

2 and resource allocation; and 

3 (vii) other areas of the public and pri4 vate sectors determined relevant by the 

5 Commission for its inquiry; 

6 (2) identify, review, and evaluate the lessons 

7 learned from the financial crisis of 2008, regarding 

8 the structure, coordination, management policies, 

9 and procedures of the Federal Government, and, if 

10 appropriate, State and local governments and non11 governmental entities, relative to detecting, pre12 venting, and responding to such financial crises; and 

13 (3) submit to the President and Congress such 

14 reports as are required by this Act containing such 

15 findings, conclusions, and recommendations as the 

16 Commission shall determine, including proposing or17 ganization, coordination, planning, management ar18 rangements, procedures, rules, and regulations, and 

19 reports of the on-going review by the Commission 

20 under section 11(c) after the submission of the final 

21 investigative report. 

22 SEC. 6. POWERS OF COMMISSION. 

23 (a) IN GENERAL.— 

24 (1) HEARINGS AND EVIDENCE.—The Commis25 sion or, on the authority of the Commission, any 


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1 subcommittee or member thereof, may, for the pur2 pose of carrying out this Act— 

3 (A) hold such hearings and sit and act at 

4 such times and places, take such testimony, re5 ceive such evidence, administer such oaths; and 

6 (B) subject to paragraph (2)(A), require, 

7 by subpoena or otherwise, the attendance and 

8 testimony of such witnesses and the production 

9 of such books, records, correspondence, memo10 randa, papers, and documents, as the Commis11 sion or such designated subcommittee or des12 ignated member may determine advisable. 

13 (2) SUBPOENAS.— 

14 (A) ISSUANCE.— 

15 (i) IN GENERAL.—A subpoena may be 

16 issued under this subsection only— 

17 (I) by the agreement of the 

18 chairman and the vice chairman; or 

19 (II) by the affirmative vote of 6 

20 members of the Commission. 

21 (ii) SIGNATURE.—Subject to clause 

22 (i), subpoenas issued under this subsection 

23 may be issued under the signature of the 

24 chairman or any member designated by a 

25 majority of the Commission, and may be 


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1 served by any person designated by the 

2 chairman or by a member designated by a 

3 majority of the Commission. 

4 (B) ENFORCEMENT.— 

5 (i) IN GENERAL.—In the case of con6 tumacy or failure to obey a subpoena 

7 issued under subsection (a), the United 

8 States district court for the judicial district 

9 in which the subpoenaed person resides, is 

10 served, or may be found, or where the sub11 poena is returnable, may issue an order re12 quiring such person to appear at any des13 ignated place to testify or to produce docu14 mentary or other evidence. Any failure to 

15 obey the order of the court may be pun16 ished by the court as a contempt of that 

17 court. 

18 (ii) ADDITIONAL ENFORCEMENT.—In 

19 the case of any failure of any witness to 

20 comply with any subpoena or to testify 

21 when summoned under authority of this 

22 section, the Commission may, by majority 

23 vote, certify a statement of fact consti24 tuting such failure to the appropriate 

25 United States attorney, who may bring the 


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1 matter before the grand jury for its action, 

2 under the same statutory authority and 

3 procedures as if the United States attorney 

4 had received a certification under sections 

5 102 through 104 of the Revised Statutes 

6 of the United States (2 U.S.C. 192 

7 through 194). 

8 (b) CONTRACTING.—The Commission may, to such 

9 extent and in such amounts as are provided in appropria10 tion Acts, enter into contracts to enable the Commission 

11 to discharge its duties under this Act. 

12 (c) INFORMATION FROM FEDERAL AGENCIES.— 

13 (1) IN GENERAL.—The Commission is author14 ized to secure directly from any executive depart15 ment, bureau, agency, board, commission, office, 

16 independent establishment, or instrumentality of the 

17 Government, information, suggestions, estimates, 

18 and statistics for the purposes of this Act. Each de19 partment, bureau, agency, board, commission, office, 

20 independent establishment, or instrumentality shall, 

21 to the extent authorized by law, furnish such infor22 mation, suggestions, estimates, and statistics di23 rectly to the Commission, upon request made by the 

24 chairman, the chairman of any subcommittee creVerDate Nov 24 2008 00:03 Jan 09, 2009 Jkt 079200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H74.IH H74

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1 ated by a majority of the Commission, or any mem2 ber designated by a majority of the Commission. 

3 (2) RECEIPT, HANDLING, STORAGE, AND DIS4 SEMINATION.—Information shall only be received, 

5 handled, stored, and disseminated by members of 

6 the Commission and its staff consistent with all ap7 plicable statutes, regulations, and Executive orders. 

8 (d) ASSISTANCE FROM FEDERAL AGENCIES.— 

9 (1) GENERAL SERVICES ADMINISTRATION.— 

10 The Administrator of General Services shall provide 

11 to the Commission on a reimbursable basis adminis12 trative support and other services for the perform13 ance of the Commission’s functions. 

14 (2) OTHER DEPARTMENTS AND AGENCIES.—In 

15 addition to the assistance prescribed in paragraph 

16 (1), departments and agencies of the United States 

17 may provide to the Commission such services, funds, 

18 facilities, staff, and other support services as they 

19 may determine advisable and as may be authorized 

20 by law. 

21 (e) GIFTS.—The Commission may accept, use, and 

22 dispose of gifts or donations of services or property. 

23 (f) POSTAL SERVICES.—The Commission may use 

24 the United States mails in the same manner and under 


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1 the same conditions as departments and agencies of the 

2 United States. 

3 SEC. 7. NONAPPLICABILITY OF FEDERAL ADVISORY COM4 MITTEE ACT. 

5 (a) IN GENERAL.—The Federal Advisory Committee 

6 Act (5 U.S.C. App.) shall not apply to the Commission. 

7 (b) PUBLIC MEETINGS AND RELEASE OF PUBLIC

8 VERSIONS OF REPORTS.—The Commission shall— 

9 (1) hold public hearings and meetings to the ex10 tent appropriate; and 

11 (2) release public versions of the reports re12 quired under subsections (a), (b), and (c) of section 

13 11. 

14 (c) PUBLIC HEARINGS.—Any public hearings of the 

15 Commission shall be conducted in a manner consistent 

16 with the protection of information provided to or developed 

17 for or by the Commission as required by any applicable 

18 statute, regulation, or Executive order. 

19 SEC. 8. STAFF OF COMMISSION. 

20 (a) IN GENERAL.— 

21 (1) APPOINTMENT AND COMPENSATION.—The 

22 chairman, in consultation with vice chairman, in ac23 cordance with rules agreed upon by the Commission, 

24 may appoint and fix the compensation of a staff di25 rector and such other personnel as may be necessary 


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1 to enable the Commission to carry out its functions, 

2 without regard to the provisions of title 5, United 

3 States Code, governing appointments in the competi4 tive service, and without regard to the provisions of 

5 chapter 51 and subchapter III of chapter 53 of such 

6 title relating to classification and General Schedule 

7 pay rates, except that no rate of pay fixed under this 

8 subsection may exceed the equivalent of that payable 

9 for a position at level V of the Executive Schedule 

10 under section 5316 of title 5, United States Code. 

11 (2) PERSONNEL AS FEDERAL EMPLOYEES.— 

12 (A) IN GENERAL.—The executive director 

13 and any personnel of the Commission who are 

14 employees shall be employees under section 

15 2105 of title 5, United States Code, for pur16 poses of chapters 63, 81, 83, 84, 85, 87, 89, 

17 and 90 of that title. 

18 (B) MEMBERS OF COMMISSION.—Subpara19 graph (A) shall not be construed to apply to 

20 members of the Commission. 

21 (b) DETAILEES.—Any Federal Government employee 

22 may be detailed to the Commission without reimbursement 

23 from the Commission, and such detailee shall retain the 

24 rights, status, and privileges of his or her regular employ25 ment without interruption. 


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1 (c) CONSULTANT SERVICES.—The Commission is au2 thorized to procure the services of experts and consultants 

3 in accordance with section 3109 of title 5, United States 

4 Code, but at rates not to exceed the daily rate paid a per5 son occupying a position at level IV of the Executive 

6 Schedule under section 5315 of title 5, United States 

7 Code. 

8 SEC. 9. COMPENSATION AND TRAVEL EXPENSES. 

9 (a) COMPENSATION.—Each member of the Commis10 sion may be compensated at not to exceed the daily equiva11 lent of the annual rate of basic pay in effect for a position 

12 at level IV of the Executive Schedule under section 5315 

13 of title 5, United States Code, for each day during which 

14 that member is engaged in the actual performance of the 

15 duties of the Commission. 

16 (b) TRAVEL EXPENSES.—While away from their 

17 homes or regular places of business in the performance 

18 of services for the Commission, members of the Commis19 sion shall be allowed travel expenses, including per diem 

20 in lieu of subsistence, in the same manner as persons em21 ployed intermittently in the Government service are al22 lowed expenses under section 5703(b) of title 5, United 

23 States Code. 


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1 SEC. 10. SECURITY CLEARANCES FOR COMMISSION MEM2 BERS AND STAFF. 

3 The appropriate Federal agencies or departments 

4 shall cooperate with the Commission in expeditiously pro5 viding to the Commission members and staff appropriate 

6 security clearances to the extent possible pursuant to ex7 isting procedures and requirements, except that no person 

8 shall be provided with access to classified information 

9 under this Act without the appropriate security clearances. 

10 SEC. 11. REPORTS OF COMMISSION; CONTINUED REVIEW; 

11 TERMINATION. 

12 (a) INTERIM INVESTIGATIVE REPORTS.—The Com13 mission may submit to the President and Congress interim 

14 investigative reports containing such findings, conclusions, 

15 and recommendations for corrective measures as have 

16 been agreed to by a majority of Commission members. 

17 (b) FINAL INVESTIGATIVE REPORT.—Not later than 

18 12 months after the date of the enactment of this Act, 

19 the Commission shall submit to the President and Con20 gress a final report containing such findings, conclusions, 

21 and recommendations for corrective measures as have 

22 been agreed to by a majority of Commission members. 

23 (c) CONTINUED REVIEW AND REPORTING.—During 

24 the 4-year period following the date of the submission of 

25 the final investigative report to the Congress pursuant to 

26 subsection (b), the Commission shall continue to review 


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1 the subjects investigated by the Commission under this 

2 Act, and the response of the Congress and the Executive 

3 branch to the final investigative report of the Commission 

4 as well as conditions in the marketplace, and submit such 

5 reports on the findings and recommendations of the Com6 mission as the Commission determines to be appropriate. 

7 (d) TERMINATION.—The Commission, and all the au8 thorities of this Act, shall terminate 4 years after the date 

9 on which the final investigative report is submitted under 

10 subsection (b). 

11 SEC. 12. FUNDING. 

12 (a) IN GENERAL.—There is hereby authorized to be 

13 appropriated to the Commission such sums as may be nec14 essary for purposes of the carrying out the activities of 

15 the Commission under this Act for fiscal years beginning 

16 before the termination of the Commission. 

17 (b) DURATION OF AVAILABILITY.—Amounts appro18 priated under subsection (a) are authorized to be made 

19 available until the termination of the Commission. 

Æ 


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