111TH CONGRESS 

1ST SESSION H. R. 3330 

AN ACT 

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. 
2 

•HR 3330 EH

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 ‘‘Improved Oversight 

5 by Financial Inspectors General Act of 2009’’. 

6 SEC. 2. AMENDMENT TO DEFINITION OF MATERIAL LOSS 

7 AND NONMATERIAL LOSSES TO THE DEPOSIT 

8 INSURANCE FUND FOR PURPOSES OF IN9 SPECTORS GENERAL REVIEWS. 

10 (a) IN GENERAL.—Section 38(k) of the Federal De11 posit Insurance Act (U.S.C. 1831o(k)) is amended— 

12 (1) in paragraph (2), by striking subparagraph 

13 (B) and inserting the following new subparagraph: 

14 ‘‘(B) MATERIAL LOSS DEFINED.—The 

15 term ‘material loss’ means any estimated loss in 

16 excess of $200,000,000, occurring after March 

17 31, 2009.’’; 

18 (2) in that portion of paragraph (4)(A) that 

19 precedes clause (i), by striking ‘‘the report’’ and in20 serting ‘‘any reports under this subsection on 

21 losses’’; 

22 (3) by striking paragraph (6); 

23 (4) by redesignating paragraph (5) as para24 graph (6); and 
3 

•HR 3330 EH

1 (5) by inserting after paragraph (4) the fol2 lowing new paragraph: 

3 ‘‘(5) LOSSES THAT ARE NOT MATERIAL.— 

4 ‘‘(A) SEMIANNUAL REPORT.—For the 6- 

5 month period ending on September 30, 2009, 

6 and each 6-month period thereafter, the Inspec7 tor General of each Federal banking agency 

8 shall— 

9 ‘‘(i) identify losses estimated to be in10 curred by the Deposit Insurance Fund 

11 during that 6-month period with respect to 

12 insured depository institutions supervised 

13 by such Federal banking agency; 

14 ‘‘(ii) for each loss to the Deposit In15 surance Fund (as a loss to such Fund is 

16 defined in paragraph (2)(A)) that is not a 

17 material loss, determine the grounds iden18 tified by the Federal banking agency or 

19 State bank supervisor under section 

20 11(c)(5) for appointing the Corporation as 

21 receiver and whether any unusual cir22 cumstances exist that might warrant an in23 depth review of the loss; and 

24 ‘‘(iii) prepare a written report to the 

25 appropriate Federal banking agency and 
4 

•HR 3330 EH

1 for the Congress on the results of the In2 spector General’s determinations, includ3 ing— 

4 ‘‘(I) the identity of any loss that 

5 warrants an in-depth review and the 

6 reasons why such review is warranted, 

7 or if the Inspector General determines 

8 that no review is warranted, an expla9 nation of such determination; and 

10 ‘‘(II) for each loss identified in 

11 subclause (I) that warrants an in12 depth review, a date by which such re13 view, and a report on the review pre14 pared in a manner consistent with re15 ports under paragraph (1)(A), will be 

16 completed. 

17 ‘‘(B) DEADLINE FOR SEMIANNUAL RE18 PORT.—The Inspector General of each Federal 

19 banking agency shall— 

20 ‘‘(i) comply with the semiannual re21 port requirements of paragraph (A) expedi22 tiously, and in any event within 90 days 

23 after the end of the 6-month period cov24 ered by the report; and 
5 

•HR 3330 EH

1 ‘‘(ii) provide a copy of the report to 

2 any Member of Congress upon request.’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

4 The heading for subsection (k) of section 38 of the Fed5 eral Deposit Insurance Act (U.S.C. 1831o(k)) is amend6 ed— 

7 (1) by striking ‘‘REVIEW’’ and inserting ‘‘RE8 VIEWS’’; and 

9 (2) by striking ‘‘MATERIAL LOSS’’ and inserting 

10 ‘‘LOSSES’’. 

11 SEC. 3. AMENDMENT TO DEFINITION OF MATERIAL LOSS 

12 AND NONMATERIAL LOSSES TO THE NA13 TIONAL CREDIT UNION SHARE INSURANCE 

14 FUND FOR PURPOSES OF INSPECTORS GEN15 ERAL REVIEWS. 

16 (a) IN GENERAL.—Subsection (j) of section 216 of 

17 the Federal Credit Union Act (12 U.S.C. 1790d(j)) is 

18 amended to read as follows: 

19 ‘‘(j) REVIEWS REQUIRED WHEN SHARE INSURANCE

20 FUND EXPERIENCES LOSSES.— 

21 ‘‘(1) IN GENERAL.—If the Fund incurs a mate22 rial loss with respect to an insured credit union, the 

23 inspector general of the Board shall— 

24 ‘‘(A) make a written report to the Board 

25 reviewing the Administration’s supervision of 
6 

•HR 3330 EH

1 the credit union (including the Administration’s 

2 implementation of this section), which shall— 

3 ‘‘(i) ascertain why the credit union’s 

4 problems resulted in a material loss to the 

5 Fund; and 

6 ‘‘(ii) make recommendations for pre7 venting any such loss in the future; and 

8 ‘‘(B) provide a copy of the report to— 

9 ‘‘(i) the Comptroller General of the 

10 United States; (ii) the Corporation (if the 

11 agency is not the Corporation); 

12 ‘‘(ii) in the case of a State credit 

13 union, the appropriate State supervisor; 

14 and 

15 ‘‘(iii) upon request by any Member of 

16 Congress, to that Member. 

17 ‘‘(2) MATERIAL LOSS DEFINED.—For purposes 

18 of determining whether the Fund has incurred a ma19 terial loss with respect to an insured credit union, a 

20 loss is material if it exceeds the sum of— 

21 ‘‘(A) $25,000,000; and 

22 ‘‘(B) an amount equal to 10 percent of the 

23 total assets of the credit union at the time at 

24 which the Board initiated assistance under sec-
7 

•HR 3330 EH

1 tion 1788 of this title or was appointed liqui2 dating agent. 

3 ‘‘(3) PUBLIC DISCLOSURE REQUIRED.— 

4 ‘‘(A) IN GENERAL.—The Board shall dis5 close a report under this subsection upon re6 quest under section 552 of title 5 without excis7 ing— 

8 ‘‘(i) any portion under section 

9 552(b)(5) of that title; or 

10 ‘‘(ii) any information about the in11 sured credit union (other than trade se12 crets) or paragraph (8) of section 552(b) 

13 of that title. 

14 ‘‘(B) EXCEPTION.—Subparagraph (A) 

15 shall not be construed as requiring the agency 

16 to disclose the name of any customer of the in17 sured credit union (other than an institution-af18 filiated party), or information from which such 

19 a person’s identity could reasonably be 

20 ascertained. 

21 ‘‘(4) LOSSES THAT ARE NOT MATERIAL.— 

22 ‘‘(A) SEMIANNUAL REPORT.—For the 6- 

23 month period ending on September 30, 2009, 

24 and each 6-month period thereafter, the Inspec25 tor General of the Board shall— 
8 

•HR 3330 EH

1 ‘‘(i) identify losses estimated to be in2 curred by the Fund during that 6-month 

3 period with respect to insured credit 

4 unions; 

5 ‘‘(ii) for each loss to the Fund that is 

6 not a material loss, determine the grounds 

7 identified by the Board or the State official 

8 having jurisdiction over a State credit 

9 union for appointing the Board the liqui10 dating agent for any Federal or State 

11 credit union and whether any unusual cir12 cumstances exist that might warrant an in13 depth review of the loss; and 

14 ‘‘(iii) prepare a written report to the 

15 Board and for the Congress on the results 

16 of the Inspector General’s determinations, 

17 including— 

18 ‘‘(I) the identity of any loss that 

19 warrants an in-depth review and the 

20 reasons why such review is warranted, 

21 or if the Inspector General determines 

22 that no review is warranted, an expla23 nation of such determination; and 

24 ‘‘(II) for each loss identified in 

25 subclause (I) that warrants an in- 
9 

•HR 3330 EH

1 depth review, a date by which such re2 view, and a report on the review pre3 pared in a manner consistent with re4 ports under paragraph (1)(A), will be 

5 completed. 

6 ‘‘(B) DEADLINE FOR SEMIANNUAL RE7 PORT.—The Inspector General of the Board 

8 shall— 

9 ‘‘(i) comply with the semiannual re10 port requirements of paragraph (A) expedi11 tiously, and in any event within 90 days 

12 after the end of the 6-month period cov13 ered by the report; and 

14 ‘‘(ii) provide a copy of the report to 

15 any Member of Congress upon request. 

16 ‘‘(5) GAO REVIEW.—The Comptroller General 

17 of the United States shall, under such conditions as 

18 the Comptroller General determines to be appro19 priate, review reports made under paragraph (1), in20 cluding the extent to which the Inspector General of 

21 the Board complied with section 8L of the Inspector 

22 General Act of 1978 with respect to each such re23 port, and recommend improvements in the super-
10 

•HR 3330 EH

1 vision of insured credit unions (including the imple2 mentation of this section).’’. 

Passed the House of Representatives July 29, 2009. 

Attest: 

Clerk. 

111TH CONGRESS 

1ST SESSION H. R. 3330 

AN ACT 

To amend the Federal Deposit Insurance Act and 

tration Board, and for other purposes. agencies and the National Credit Union Adminisspectors General of the several Federal banking Fund and the Share Insurance Fund by the Infective reviews of losses in the Deposit Insurance the Federal Credit Union Act to provide more ef-