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 Adminis-
tration 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 Fed-
eral 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Improved Oversight 
by Financial Inspectors General Act of 2009’’. 
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SEC. 2. AMENDMENT TO DEFINITION OF MATERIAL LOSS 
AND NONMATERIAL LOSSES TO THE DEPOSIT 
INSURANCE FUND FOR PURPOSES OF IN-
SPECTORS GENERAL REVIEWS. 
(a) IN GENERAL.—Section 38(k) of the Federal De-
posit 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 in-
serting ‘‘any reports under this subsection on 
losses’’; 
(3) by striking paragraph (6); 
(4) by redesignating paragraph (5) as para-
graph (6); and 
(5) by inserting after paragraph (4) the fol-
lowing 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 Inspec-
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tor General of each Federal banking agency 
shall— 
‘‘(i) identify losses estimated to be in-
curred 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 In-
surance Fund (as a loss to such Fund is 
defined in paragraph (2)(A)) that is not a 
material loss, determine the grounds iden-
tified by the Federal banking agency or 
State 
bank 
supervisor 
under 
section 
11(c)(5) for appointing the Corporation as 
receiver and whether any unusual cir-
cumstances 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 In-
spector General’s determinations, includ-
ing— 
‘‘(I) the identity of any loss that 
warrants an in-depth review and the 
reasons why such review is warranted, 
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or if the Inspector General determines 
that no review is warranted, an expla-
nation of such determination; and 
‘‘(II) for each loss identified in 
subclause (I) that warrants an in- 
depth review, a date by which such re-
view, and a report on the review pre-
pared in a manner consistent with re-
ports under paragraph (1)(A), will be 
completed. 
‘‘(B) DEADLINE
FOR
SEMIANNUAL
RE-
PORT.—The Inspector General of each Federal 
banking agency shall— 
‘‘(i) comply with the semiannual re-
port requirements of paragraph (A) expedi-
tiously, and in any event within 90 days 
after the end of the 6-month period cov-
ered 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 Fed-
eral Deposit Insurance Act (U.S.C. 1831o(k)) is amend-
ed— 
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(1) by striking ‘‘REVIEW’’ and inserting ‘‘RE-
VIEWS’’; and 
(2) by striking ‘‘MATERIAL LOSS’’ and inserting 
‘‘LOSSES’’. 
SEC. 3. AMENDMENT TO DEFINITION OF MATERIAL LOSS 
AND NONMATERIAL LOSSES TO THE NA-
TIONAL CREDIT UNION SHARE INSURANCE 
FUND FOR PURPOSES OF INSPECTORS GEN-
ERAL 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 mate-
rial 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 
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‘‘(ii) make recommendations for pre-
venting 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 ma-
terial 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 sec-
tion 1788 of this title or was appointed liqui-
dating agent. 
‘‘(3) PUBLIC DISCLOSURE REQUIRED.— 
‘‘(A) IN GENERAL.—The Board shall dis-
close a report under this subsection upon re-
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quest under section 552 of title 5 without excis-
ing— 
‘‘(i) 
any 
portion 
under 
section 
552(b)(5) of that title; or 
‘‘(ii) any information about the in-
sured credit union (other than trade se-
crets) 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 in-
sured credit union (other than an institution-af-
filiated 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 Inspec-
tor General of the Board shall— 
‘‘(i) identify losses estimated to be in-
curred by the Fund during that 6-month 
period with respect to insured credit 
unions; 
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‘‘(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 liqui-
dating agent for any Federal or State 
credit union and whether any unusual cir-
cumstances 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 expla-
nation of such determination; and 
‘‘(II) for each loss identified in 
subclause (I) that warrants an in- 
depth review, a date by which such re-
view, and a report on the review pre-
pared in a manner consistent with re-
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ports under paragraph (1)(A), will be 
completed. 
‘‘(B) DEADLINE
FOR
SEMIANNUAL
RE-
PORT.—The Inspector General of the Board 
shall— 
‘‘(i) comply with the semiannual re-
port requirements of paragraph (A) expedi-
tiously, and in any event within 90 days 
after the end of the 6-month period cov-
ered 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 appro-
priate, review reports made under paragraph (1), in-
cluding 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 re-
port, and recommend improvements in the super-
vision of insured credit unions (including the imple-
mentation of this section).’’. 
Æ 
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