I 

111TH CONGRESS 

1ST SESSION H. R. 3330 

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. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 24, 2009 

Mr. DRIEHAUS (for himself, Mr. MOORE of Kansas, Mrs. BIGGERT, and Mr. 

LEE of New York) introduced the following bill; which was referred to 

the Committee on Financial Services 

A BILL 

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. 

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’’. 


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1 SEC. 2. AMENDMENT TO DEFINITION OF MATERIAL LOSS 

2 AND NONMATERIAL LOSSES TO THE DEPOSIT 

3 INSURANCE FUND FOR PURPOSES OF IN4 SPECTORS GENERAL REVIEWS. 

5 (a) IN GENERAL.—Section 38(k) of the Federal De6 posit Insurance Act (U.S.C. 1831o(k)) is amended— 

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

8 (B) and inserting the following new subparagraph: 

9 ‘‘(B) MATERIAL LOSS DEFINED.—The 

10 term ‘material loss’ means any estimated loss in 

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

12 31, 2009.’’; 

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

14 precedes clause (i), by striking ‘‘the report’’ and in15 serting ‘‘any reports under this subsection on 

16 losses’’; 

17 (3) by striking paragraph (6); 

18 (4) by redesignating paragraph (5) as para19 graph (6); and 

20 (5) by inserting after paragraph (4) the fol21 lowing new paragraph: 

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

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

24 month period ending on September 30, 2009, 

25 and each 6-month period thereafter, the InspecVerDate Nov 24 2008 17:48 Jul 25, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3330.IH H3330

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1 tor General of each Federal banking agency 

2 shall— 

3 ‘‘(i) identify losses estimated to be in4 curred by the Deposit Insurance Fund 

5 during that 6-month period with respect to 

6 insured depository institutions supervised 

7 by such Federal banking agency; 

8 ‘‘(ii) for each loss to the Deposit In9 surance Fund (as a loss to such Fund is 

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

11 material loss, determine the grounds iden12 tified by the Federal banking agency or 

13 State bank supervisor under section 

14 11(c)(5) for appointing the Corporation as 

15 receiver and whether any unusual cir16 cumstances exist that might warrant an in17 depth review of the loss; and 

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

19 appropriate Federal banking agency and 

20 for the Congress on the results of the In21 spector General’s determinations, includ22 ing— 

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

24 warrants an in-depth review and the 

25 reasons why such review is warranted, 


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1 or if the Inspector General determines 

2 that no review is warranted, an expla3 nation of such determination; and 

4 ‘‘(II) for each loss identified in 

5 subclause (I) that warrants an in6 depth review, a date by which such re7 view, and a report on the review pre8 pared in a manner consistent with re9 ports under paragraph (1)(A), will be 

10 completed. 

11 ‘‘(B) DEADLINE FOR SEMIANNUAL RE12 PORT.—The Inspector General of each Federal 

13 banking agency shall— 

14 ‘‘(i) comply with the semiannual re15 port requirements of paragraph (A) expedi16 tiously, and in any event within 90 days 

17 after the end of the 6-month period cov18 ered by the report; and 

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

20 any Member of Congress upon request.’’. 

21 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

22 The heading for subsection (k) of section 38 of the Fed23 eral Deposit Insurance Act (U.S.C. 1831o(k)) is amend24 ed— 


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1 (1) by striking ‘‘REVIEW’’ and inserting ‘‘RE2 VIEWS’’; and 

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

4 ‘‘LOSSES’’. 

5 SEC. 3. AMENDMENT TO DEFINITION OF MATERIAL LOSS 

6 AND NONMATERIAL LOSSES TO THE NA7 TIONAL CREDIT UNION SHARE INSURANCE 

8 FUND FOR PURPOSES OF INSPECTORS GEN9 ERAL REVIEWS. 

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

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

12 amended to read as follows: 

13 ‘‘(j) REVIEWS REQUIRED WHEN SHARE INSURANCE

14 FUND EXPERIENCES LOSSES.— 

15 ‘‘(1) IN GENERAL.—If the Fund incurs a mate16 rial loss with respect to an insured credit union, the 

17 inspector general of the Board shall— 

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

19 reviewing the Administration’s supervision of 

20 the credit union (including the Administration’s 

21 implementation of this section), which shall— 

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

23 problems resulted in a material loss to the 

24 Fund; and 


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1 ‘‘(ii) make recommendations for pre2 venting any such loss in the future; and 

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

4 ‘‘(i) the Comptroller General of the 

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

6 agency is not the Corporation); 

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

8 union, the appropriate State supervisor; 

9 and 

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

11 Congress, to that Member. 

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

13 of determining whether the Fund has incurred a ma14 terial loss with respect to an insured credit union, a 

15 loss is material if it exceeds the sum of— 

16 ‘‘(A) $25,000,000; and 

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

18 total assets of the credit union at the time at 

19 which the Board initiated assistance under sec20 tion 1788 of this title or was appointed liqui21 dating agent. 

22 ‘‘(3) PUBLIC DISCLOSURE REQUIRED.— 

23 ‘‘(A) IN GENERAL.—The Board shall dis24 close a report under this subsection upon reVerDate Nov 24 2008 17:48 Jul 25, 2009 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3330.IH H3330

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1 quest under section 552 of title 5 without excis2 ing— 

3 ‘‘(i) any portion under section 

4 552(b)(5) of that title; or 

5 ‘‘(ii) any information about the in6 sured credit union (other than trade se7 crets) or paragraph (8) of section 552(b) 

8 of that title. 

9 ‘‘(B) EXCEPTION.—Subparagraph (A) 

10 shall not be construed as requiring the agency 

11 to disclose the name of any customer of the in12 sured credit union (other than an institution-af13 filiated party), or information from which such 

14 a person’s identity could reasonably be 

15 ascertained. 

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

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

18 month period ending on September 30, 2009, 

19 and each 6-month period thereafter, the Inspec20 tor General of the Board shall— 

21 ‘‘(i) identify losses estimated to be in22 curred by the Fund during that 6-month 

23 period with respect to insured credit 

24 unions; 


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

2 not a material loss, determine the grounds 

3 identified by the Board or the State official 

4 having jurisdiction over a State credit 

5 union for appointing the Board the liqui6 dating agent for any Federal or State 

7 credit union and whether any unusual cir8 cumstances exist that might warrant an in9 depth review of the loss; and 

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

11 Board and for the Congress on the results 

12 of the Inspector General’s determinations, 

13 including— 

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

15 warrants an in-depth review and the 

16 reasons why such review is warranted, 

17 or if the Inspector General determines 

18 that no review is warranted, an expla19 nation of such determination; and 

20 ‘‘(II) for each loss identified in 

21 subclause (I) that warrants an in22 depth review, a date by which such re23 view, and a report on the review pre24 pared in a manner consistent with reVerDate Nov 24 2008 17:48 Jul 25, 2009 Jkt 079200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3330.IH H3330

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1 ports under paragraph (1)(A), will be 

2 completed. 

3 ‘‘(B) DEADLINE FOR SEMIANNUAL RE4 PORT.—The Inspector General of the Board 

5 shall— 

6 ‘‘(i) comply with the semiannual re7 port requirements of paragraph (A) expedi8 tiously, and in any event within 90 days 

9 after the end of the 6-month period cov10 ered by the report; and 

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

12 any Member of Congress upon request. 

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

14 of the United States shall, under such conditions as 

15 the Comptroller General determines to be appro16 priate, review reports made under paragraph (1), in17 cluding the extent to which the Inspector General of 

18 the Board complied with section 8L of the Inspector 

19 General Act of 1978 with respect to each such re20 port, and recommend improvements in the super21 vision of insured credit unions (including the imple22 mentation of this section).’’. 

Æ 


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