I 
111TH CONGRESS 
1ST SESSION H. R. 3310 
To reform the financial regulatory system of the United States, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 23, 2009 
Mr. BACHUS (for himself, Mr. BOEHNER, Mr. CANTOR, Mr. PENCE, Mr. 
SMITH of Texas, Mr. FRANKS of Arizona, Mr. ISSA, Mr. NEUGEBAUER, 
Mr. GARRETT of New Jersey, Mr. HENSARLING, Mr. PRICE of Georgia, 
Mrs. BIGGERT, Mrs. CAPITO, Mr. JONES, Mr. POSEY, Mr. LANCE, Mr. 
MARCHANT, Mr. ROYCE, Mr. LEE of New York, Mr. LUCAS, Mr. 
ROSKAM, Mrs. BACHMANN, Ms. JENKINS, Mr. BARRETT of South Caro-
lina, Mr. SCALISE, Mr. GOODLATTE, Mr. GERLACH, and Mr. RYAN of 
Wisconsin) introduced the following bill; which was referred to the Com-
mittee on Financial Services, and in addition to the Committees on Edu-
cation and Labor, Transportation and Infrastructure, the Judiciary, Agri-
culture, Oversight and Government Reform, the Budget, Rules, and En-
ergy and Commerce, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To reform the financial regulatory system of the United 
States, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Consumer Protection 
and Regulatory Enhancement Act’’. 
SEC. 2. TABLE OF CONTENTS. 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—RESOLUTION OF NON-BANK FINANCIAL INSTITUTIONS 
Sec. 101. Amendments to title 28 of the United States Code. 
Sec. 102. Amendments to title 11 of the United States Code. 
Sec. 103. Effective date; application of amendments. 
TITLE II—MARKET STABILITY AND CAPITAL ADEQUACY 
Sec. 201. Establishment of Market Stability and Capital Adequacy Board. 
Sec. 202. Functions of Board. 
Sec. 203. Powers of Board. 
Sec. 204. Responsibilities of Federal functional regulators. 
Sec. 205. Staff of Board. 
Sec. 206. Compensation and travel expenses. 
TITLE III—REGULATORY CONSOLIDATION AND CONSUMER 
PROTECTION 
Sec. 301. Establishment. 
Sec. 302. Board of Directors. 
Sec. 303. Powers and duties of the FIR. 
Sec. 304. Allocation of responsibility among FIR divisions. 
Sec. 305. Technical and conforming amendments relating to transfers of func-
tions to the FIR. 
Sec. 306. Office of Comptroller of the Currency and position of Comptroller of 
the Currency abolished. 
Sec. 307. Office of Thrift Supervision and position of Director of the Office of 
Thrift Supervision abolished. 
Sec. 308. Savings provisions. 
Sec. 309. References in Federal law to Federal banking agencies. 
Sec. 310. National Credit Union Administration moved within the FIR. 
Sec. 311. Office of Consumer Protection. 
TITLE IV—FEDERAL RESERVE REFORM 
Sec. 401. GAO authority to audit the Federal Reserve System. 
Sec. 402. Monetary policy and inflation targets. 
Sec. 403. Reforms of section 13 emergency powers. 
TITLE V—GOVERNMENT-SPONSORED ENTERPRISES REFORM 
Sec. 501. Short title. 
Sec. 502. Definitions. 
Sec. 503. Termination of current conservatorship. 
Sec. 504. Limitation of enterprise authority upon emergence from conservator-
ship. 
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Sec. 505. Requirement to periodically renew charter until wind down and dis-
solution. 
Sec. 506. Required wind down of operations and dissolution of enterprise. 
TITLE VI—CREDIT RATING AGENCY REFORM 
Sec. 601. Clarification of designation. 
Sec. 602. Elimination of security credit rating requirements in Federal law. 
Sec. 603. Elimination of security credit rating requirements in regulations. 
TITLE VII—ANTI-FRAUD PROVISIONS 
Sec. 701. Authority to impose civil penalties in cease and desist proceedings. 
Sec. 702. Formerly associated persons. 
Sec. 703. Collateral bars. 
Sec. 704. Unlawful margin lending. 
Sec. 705. Nationwide service of subpoenas. 
Sec. 706. Reauthorization of the Financial Crimes Enforcement Network. 
Sec. 707. Fair fund improvements. 
Sec. 708. Authority to contract for collection of delinquent judgments and or-
ders. 
TITLE I—RESOLUTION OF NON- 
BANK FINANCIAL INSTITUTIONS 
SEC. 101. AMENDMENTS TO TITLE 28 OF THE UNITED 
STATES CODE. 
Title 28 of the United States Code is amended— 
(1) in section 1408 by striking ‘‘section 1409’’ 
and inserting ‘‘sections 1409 and 1409A’’, 
(2) by inserting after section 1409 the fol-
lowing: 
‘‘§ 1409A. Venue of cases involving non-bank financial 
institutions 
‘‘A case under chapter 14 may be commenced in the 
district court of the United States for the district— 
‘‘(1) in which the debtor has its principal place 
of business or principal assets in the United States 
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if a Federal Reserve Bank is located in that district, 
or 
‘‘(2) if venue does not exist under paragraph 
(1), in which there is a Federal Reserve Bank and 
in a Federal circuit in which the debtor has its prin-
cipal place of business or principal assets in the 
United States.’’, and 
(3) by amending the table of sections of chapter 
87 of such title to insert after the item relating to 
section 1408 the following: 
‘‘1409A. Venue of cases involving non-bank financial institutions.’’. 
SEC. 102. AMENDMENTS TO TITLE 11 OF THE UNITED 
STATES CODE. 
(a) DEFINITIONS.—Section 101 of title 11, United 
States Code, is amended— 
(1) by inserting after paragraph (26) the fol-
lowing: 
‘‘(26A) The term ‘functional regulator’ means 
the Federal regulatory agency with the primary Fed-
eral regulatory authority over the debtor, such as an 
agency listed in section 509 of the Gramm-Leach- 
Bliley Act.’’, 
(2) by redesignating paragraphs (38A) and 
(38B) as paragraphs (38B) and (38C), respectively, 
(3) by inserting after paragraph (38) the fol-
lowing: 
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‘‘(38A) the term ‘Market Stability and Capital 
Adequacy Board’ means the entity established in 
section 201 of the Consumer Protection and Regu-
lator Enhancement Act.’’, and 
(4) by inserting after paragraph (40) the fol-
lowing: 
‘‘(40A) The term ‘non-bank financial institu-
tion’ means an institution the business of which is 
engaging in financial activities that is not an insured 
depository institution.’’. 
(b) APPLICABILITY OF CHAPTERS.—Section 103 of 
title 11, United States Code, is amended— 
(1) in subsection (a) by striking ‘‘13’’ and in-
serting ‘‘13, and 14’’, 
(2) by redesignating subsection (k) as sub-
section (l), and 
(3) by inserting after subsection (j) the fol-
lowing: 
‘‘(k) Chapter 14 applies only in a case under such 
chapter.’’. 
(c) WHO MAY BE A DEBTOR.—Section 109 of title 
11, United States Code, is amended— 
(1) in subsection (b)— 
(A) in paragraph (2) by striking ‘‘or’’ at 
the end, 
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(B) in paragraph (3) by striking the period 
at the end and insert and inserting ‘‘; or’’, and 
(C) by adding at the end the following: 
‘‘(4) a non-bank financial institution that has 
not been a debtor under chapter 14 of this title.’’, 
(2) in subsection (d) by striking ‘‘or commodity 
broker’’ and inserting ‘‘, commodity broker, or a 
non-bank financial institution’’, and 
(3) by adding at the end the following: 
‘‘(i) Only a non-bank financial institution may be a 
debtor under chapter 14 of this title.’’. 
(d) INVOLUNTARY CASES.—Section 303 of title 11, 
the United States Code, is amended— 
(1) in subsection (a) by striking ‘‘or 11’’ and 
inserting ‘‘, 11, or 14’’, and 
(2) in subsection (b) by striking ‘‘or 11’’ and 
inserting ‘‘, 11, or 14’’. 
(e) OBTAINING CREDIT.—Section 364 of title 11, 
United States Code, is amended by adding at the end the 
following: 
‘‘(g) Notwithstanding any other provision of this sec-
tion, the trustee may not, and the court may not authorize 
the trustee to, obtain credit, if the source of that credit 
either directly or indirectly is the United States.’’. 
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(f) CHAPTER 14.—Title 11, United States Code, is 
amended— 
(1) by inserting the following after chapter 13: 
‘‘CHAPTER 
14—ADJUSTMENT 
TO 
THE 
DEBTS OF A NON-BANK FINANCIAL IN-
STITUTION 
‘‘1401. Inapplicability of other sections. 
‘‘1402. Applicability of chapter 11 to cases under this chapter. 
‘‘1403. Prepetition consultation. 
‘‘1404. Appointment of trustee. 
‘‘1405. Right to be heard. 
‘‘1406. Right to communicate. 
‘‘1407. Exemption with respect to certain contracts or agreements. 
‘‘1408. Conversion or dismissal. 
‘‘§ 1401. Inapplicability of other sections 
‘‘Except as provided in section 1408, sections 
362(b)(6), 362(b)(7), 559, 560, and 561 do not apply in 
a case under this chapter. 
‘‘§ 1402. Applicability of chapter 11 to cases under 
this chapter 
‘‘With the exception of sections 1104(d), 1109, 
1112(a), 1115, and 1116, subchapters I, II, and III of 
chapter 11 apply in a case under this chapter. 
‘‘§ 1403. Prepetition consultation 
‘‘(a) Subject to subsection (b)— 
‘‘(1) a non-bank financial institution may not 
be a debtor under this chapter unless that institu-
tion has, at least 10 days prior to the date of the 
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filing of the petition by such institution, taken part 
in the consultation described in subsection (c); and 
‘‘(2) a creditor may not commence an involun-
tary case under this chapter unless, at least 10 days 
prior to the date of the filing of the petition by such 
creditor, the creditor notifies the non-bank financial 
institution, the functional regulator, and the Market 
Stability and Capital Adequacy Board of its intent 
to file a petition and requests a consultation as de-
scribed in subsection (c). 
‘‘(b) If the non-bank financial institution, the func-
tional regulator, and the Market Stability and Capital 
Adequacy Board, in consultation with any agency charged 
with administering a nonbankruptcy insolvency regime for 
any component of the debtor, certify that the immediate 
filing of a petition under section 301 or 303 is necessary, 
or that an immediate filing would be in the interests of 
justice, a petition may be filed notwithstanding subsection 
(a). 
‘‘(c) The non-bank financial institution, the func-
tional regulator, the Market Stability and Capital Ade-
quacy Board, and any agency charged with administering 
a nonbankruptcy insolvency regime for any component of 
the debtor shall engage in prepetition consultation in order 
to attempt to avoid the need for the non-bank financial 
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institution’s liquidation or reorganization in bankruptcy, 
to make any liquidation or reorganization of the non-bank 
financial institution under this title more orderly, or to 
aid in the nonbankruptcy resolution of any of the non- 
bank financial institution’s components under its non-
bankruptcy insolvency regime. Such consultation shall spe-
cifically include the attempt to negotiate forbearance of 
claims between the non-bank financial institution and its 
creditors if such forbearance would likely help to avoid the 
commencement of a case under this title, would make any 
liquidation or reorganization under this title more orderly, 
or would aid in the nonbankruptcy resolution of any of 
the non-bank financial institution’s components under its 
nonbankruptcy insolvency regime. Additionally, the con-
sultation shall consider whether, if a petition is filed under 
section 301 or 303, the debtor should file a motion for 
an exemption authorized by section 1407. 
‘‘(d) The court may allow the consultation process to 
continue for 30 days after the petition, upon motion by 
the debtor or a creditor. Any post-petition consultation 
proceedings authorized should be facilitated by the court’s 
mediation services, under seal, and exclude ex parte com-
munications. 
‘‘(e) The Market Stability and Capital Adequacy 
Board and the functional regulator shall publish and 
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transmit to Congress a report documenting the course of 
any consultation. Such report shall be published and 
transmitted to Congress within 30 days of the conclusion 
of the consultation. 
‘‘(f) Nothing in this section shall be interpreted to 
set aside any of the limitations on the use of Federal funds 
set forth in the Consumer Protection and Regulator En-
hancement Act or the amendments made by such Act. 
‘‘§ 1404. Appointment of trustee 
‘‘In applying section 1104 to a case under this chap-
ter, if the court orders the appointment of a trustee or 
an examiner, if the trustee or an examiner dies or resigns 
during the case or is removed under section 324, or if a 
trustee fails to qualify under section 322, the functional 
regulator, in consultation with the Market Stability and 
Capital Adequacy Board, shall submit a list of five disin-
terested persons that are qualified and willing to serve as 
trustees in the case and the United States trustee shall 
appoint, subject to the court’s approval, one of such per-
sons to serve as trustee in the case. 
‘‘§ 1405. Right to be heard 
‘‘(a) The functional regulator, the Market Stability 
and Capital Adequacy Board, the Federal Reserve, the 
Department of the Treasury, the Securities and Exchange 
Commission, and any domestic or foreign agency charged 
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with administering a nonbankruptcy insolvency regime for 
any component of the debtor may raise and may appear 
and be heard on any issue in a case under this chapter, 
but may not appeal from any judgment, order, or decree 
entered in the case. 
‘‘(b) A party in interest, including the debtor, the 
trustee, a creditors’ committee, an equity security holders’ 
committee, a creditor, an equity security holder, or any 
indenture trustee may raise, and may appear and be heard 
on, any issue in a case under this chapter. 
‘‘§ 1406. Right to communicate 
‘‘The court is entitled to communicate directly with, 
or to request information or assistance directly from, the 
functional regulator, the Market Stability and Capital 
Adequacy Board, the Board of Governors of the Federal 
Reserve System, the Department of the Treasury, or any 
agency charged with administering a nonbankruptcy insol-
vency regime for any component of the debtor, subject to 
the rights of a party in interest to notice and participation. 
‘‘§ 1407. Exemption with respect to certain contracts 
or agreements 
‘‘(a) Subject to subsection (b)— 
‘‘(1) upon motion of the debtor, consented to by 
the Market Stability and Capital Adequacy Board— 
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‘‘(A) the debtor and the estate shall be ex-
empt from the operation of sections 362(b)(6), 
362(b)(7), 559, 560, and 561; 
‘‘(B) if the Market Stability and Capital 
Adequacy Board consents to the filing of such 
motion by the debtor, the Board shall inform 
the court of its reasons for consenting; and 
‘‘(C) the debtor may limit its motion, or 
the board may limit its consent, to exempt the 
debtor and the estate from the operation of sec-
tion 362(b)(6), 362(b)(7), 559, 560, or 561, or 
any combination thereof; and 
‘‘(2) if the Market Stability and Capital Ade-
quacy Board does not consent to the filing of a mo-
tion by the debtor under paragraph (1), the debtor 
may file a motion to exempt the debtor and the es-
tate from the operation of sections 362(b)(6), 
362(b)(7), 559, 560, and 561. 
‘‘(b) The court shall commence a hearing on a motion 
under subsection (a) not later than 5 days after the filing 
of the motion to determine whether to maintain, termi-
nate, annul, modify, or condition the exemption under sub-
section (a)(1) or, in the case of a motion under subsection 
(a)(2), grant the exemption. The court shall request that 
the functional regulator and the Market Stability and 
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Capital Adequacy Board file briefs on whether the court 
should maintain the exemption. The court shall decide the 
motion not later than 5 days after commencing such hear-
ing unless— 
‘‘(1) the parties in interest consent to a exten-
sion for a specific period of time; or 
‘‘(2) except with respect to an exemption from 
the operation of section 559, the court sua sponte 
extends for 5 additional days the period for decision 
if such extension would be in the interests of justice 
or is required by compelling circumstances. 
‘‘(c) The court shall maintain, terminate, annul, mod-
ify, or condition the exemption under subsection (a)(1), 
or, in the case of a motion under subsection (a)(2), grant 
the exemption only upon showing of good cause. In deter-
mining whether good cause has been shown, the court 
shall balance the interests of both debtor and creditors 
while attempting to preserve the debtor’s assets for repay-
ment and reorganization of the debtors obligations, or to 
provide for a more orderly liquidation. 
‘‘§ 1408. Conversion or dismissal 
‘‘In applying section 1112 to a case under this chap-
ter, the debtor may convert a case under this chapter to 
a case under chapter 7 of this title if the debtor may be 
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a debtor under such chapter unless the debtor is not a 
debtor in possession.’’, and 
(2) by amending the table of chapters of such 
title by adding at the end the following: 
‘‘14. Adjustment to the Debts of a Non-Bank Financial Institution ....... 1401’’. 
SEC. 103. EFFECTIVE DATE; APPLICATION OF AMEND-
MENTS. 
(a) EFFECTIVE DATE.—Except as provided in sub-
section (b), this Act and the amendments made by this 
Act shall take effect on the date of the enactment of this 
Act. 
(b) APPLICATION OF AMENDMENTS.—The amend-
ments made by this Act shall apply only with respect to 
cases commenced under title 11 of the United States Code 
on or after the date of the enactment of this Act. 
TITLE II—MARKET STABILITY 
AND CAPITAL ADEQUACY 
SEC. 201. ESTABLISHMENT OF MARKET STABILITY AND 
CAPITAL ADEQUACY BOARD. 
(a) IN GENERAL.—There is hereby established the 
Market Stability and Capital Adequacy Board (hereafter 
in this title referred to as the ‘‘Board’’) as an independent 
establishment in the Executive Branch. 
(b) CONSTITUTION
OF BOARD.—Subject to para-
graph (4), the Board shall have 11 members as follows: 
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(1) PUBLIC MEMBERS.—The following shall be 
members of the Board— 
(A) The Secretary of the Treasury. 
(B) The Chairman of the Board of Gov-
ernors of the Federal Reserve System. 
(C) The Chairman of the Securities and 
Exchange Commission. 
(D) The Chairperson of the Federal De-
posit Insurance Corporation. 
(E) The Chairman of the Commodity Fu-
tures Trading Commission. 
(F) The Chairperson of the Financial In-
stitutions Regulator. 
(2) PRIVATE MEMBERS.—The Board shall also 
have 5 members appointed by the President, by and 
with the advise and consent of the Senate, who shall 
be appointed from among individuals who— 
(A) are specially qualified to serve on the 
Board by virtue of their education, training, 
and experience; and 
(B) are not officers or employees of the 
Federal Government, including the Board of 
Governors of the Federal Reserve System. 
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(3) CHAIRPERSON.—The Secretary of the 
Treasury shall serve as the Chairperson of the 
Board. 
(4) DIRECTOR
OF
FHFA
AS
INTERIM
MEM-
BER.—Until such time as the charters of the Fed-
eral National Mortgage Association and the Federal 
Home Loan Mortgage Corporation are both repealed 
pursuant to section 506(d), the Board shall consist 
of 12 members with the Director of the Federal 
Housing Finance Agency serving as a public member 
under paragraph (1). 
(c) APPOINTMENTS.— 
(1) TERM.— 
(A) IN GENERAL.—Each appointed mem-
ber shall be appointed for a term of 5 years. 
(B) STAGGERED TERMS.—Of the members 
of the Board first appointed under subsection 
(b)(2), as designated by the President at the 
time of appointment— 
(i) 1 shall be appointed for a term of 
5 years; 
(ii) 1 shall be appointed for a term of 
4 years; 
(iii) 1 shall be appointed for a term of 
3 years; 
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(iv) 1 shall be appointed for a term of 
2 years; and 
(v) 1 shall be appointed for a term of 
1 year. 
(2) INTERIM APPOINTMENTS.—Any member ap-
pointed to fill a vacancy occurring before the expira-
tion of the term for which such member’s prede-
cessor was appointed shall be appointed only for the 
remainder of such term. 
(3) CONTINUATION
OF
SERVICE.—Each ap-
pointed member may continue to serve after the ex-
piration of the term of office to which such member 
was appointed until a successor has been appointed 
and qualified. 
(4) REAPPOINTMENT TO A 2ND TERM.—Each 
member appointed to a term on the Board under 
subsection (b)(2), including an interim appointment 
under paragraph (2), may be reappointed by the 
President to serve 1 additional term. 
(d) VACANCY.— 
(1) IN GENERAL.—Any vacancy on the Board 
shall be filled in the manner in which the original 
appointment was made. 
(2) ACTING
OFFICIALS
MAY
SERVE.—In the 
event of a vacancy in any position listed in sub-
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section (b)(1) and pending the appointment of a suc-
cessor, or during the absence or disability of the in-
dividual serving in such position, any acting official 
in such position shall be a member of the Board 
while such vacancy, absence or disability continues 
and the acting official continues acting in such posi-
tion. 
(e) INELIGIBILITY FOR OTHER OFFICES.— 
(1) POSTSERVICE
RESTRICTION.—No member 
of the Board may hold any office, position, or em-
ployment in any financial institution or affiliate of a 
financial institution during— 
(A) the time such member is in office; and 
(B) the 2-year period beginning on the 
date such member ceases to serve on the Board. 
(2) CERTIFICATION.—Upon taking office, each 
member of the Board shall certify under oath that 
such member has complied with this subsection and 
such certification shall be filed with the secretary of 
the Board. 
(f) QUALIFICATIONS; INITIAL MEETING.— 
(1) POLITICAL PARTY AFFILIATION.—Not more 
than 3 members of the Board appointed under sub-
section (b)(2) shall be from the same political party. 
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(2) QUALIFICATIONS
GENERALLY.—It is the 
sense of the Congress that individuals appointed to 
the Commission should be prominent United States 
citizens, with national recognition and significant 
depth of experience commensurate with the duties of 
the Board. 
(3) SPECIFIC
APPOINTMENT
QUALIFICATIONS 
FOR CERTAIN APPOINTED MEMBERS.— 
(A) STATE
BANK.—Of the members ap-
pointed to the Board under subsection (b)(2), 
at least 1 shall be appointed from among indi-
viduals who have had experience as a State 
bank supervisor or senior management execu-
tive with a State depository institution. 
(B) INSURANCE
COMMISSIONER.—Of the 
members appointed to the Board under sub-
section (b)(2), at least 1 shall be appointed 
from among individuals who have served as a 
State insurance commissioner or supervisor. 
(4) INITIAL MEETING.—The Board shall meet 
and begin the operations of the Board as soon as 
practicable but not later than the end of the 180-day 
period beginning the date of the enactment of this 
Act. 
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(g) QUORUM.—Four of the members of the Board 
designated under subsection (b)(1) and 3 members of the 
Board appointed under (b)(2) shall constitute a quorum. 
(h) QUARTERLY MEETINGS.—The Board shall meet 
upon the call of the chairperson or a majority of the mem-
bers at least once in each calendar quarter 
SEC. 202. FUNCTIONS OF BOARD. 
(a) PRINCIPAL FUNCTIONS.—The principal functions 
of the Board shall be to— 
(1) monitor the interactions of various sectors 
of the financial system; and 
(2) identify risks that could endanger the sta-
bility and soundness of the system. 
(b) SPECIFIC REVIEW FUNCTIONS INCLUDED.—In 
carrying out the functions described in subsection (a), the 
Board shall— 
(1) review financial industry data collected from 
the appropriate functional regulators; 
(2) review insurance industry data, in coordina-
tion with State insurance supervisors, for all lines of 
insurance other than health insurance; 
(3) monitor government policies and initiatives; 
(4) review risk management practices within fi-
nancial regulatory agencies; 
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(5) review capital standards set by the appro-
priate functional regulators and make recommenda-
tions to ensure capital and leverage ratios match 
risks regulated entities are taking on; 
(6) review transparency and regulatory under-
standing of risk exposures in the over-the-counter 
derivatives markets and make recommendations re-
garding the appropriate clearing of trades in those 
markets through central counterparties; 
(7) make recommendations regarding any gov-
ernment or industry policies and practices that are 
exacerbating systemic risk; and 
(8) take such other actions and make such 
other recommendations as the Board, in the discre-
tion of the Board, determines to be appropriate. 
(c) REPORTS
TO FEDERAL FUNCTIONAL REGU-
LATORS AND THE CONGRESS.—The Board shall periodi-
cally make a report to the Congress and the functional 
regulators on the findings, conclusions, and recommenda-
tions of the Board in a manner and within a time frame 
that allows the Congress and such regulators to act to con-
tain risks posed by specific firms, industry practices, ac-
tivities and interactions of entities under different regu-
latory regimes, or government policies. 
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(d) TESTIMONY TO CONGRESS.—Not later than Feb-
ruary 20 and July 20 of each year, the Chairperson of 
the Board shall testify to the Congress at semiannual 
hearings before the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Finan-
cial Services of the House of Representatives, about the 
state of systemic risk in the financial services industry and 
proposals or recommendations by the Board to address 
any undue risk. 
(e) RULE OF CONSTRUCTION.—No provision of this 
title shall be construed as giving the Board any enforce-
ment authority over any financial institution. 
SEC. 203. POWERS OF BOARD. 
(a) CONTRACTING.—The Board may, to such extent 
and in such amounts as are provided in appropriation 
Acts, enter into contracts to enable the Board to discharge 
its duties under this title. 
(b) INFORMATION FROM FEDERAL AGENCIES.— 
(1) IN GENERAL.—The Board may secure di-
rectly from any executive department, agency, or 
independent establishment, or any other instrumen-
tality of the United States information and rec-
ommendations for the purposes of this title. 
(2) DELIVERY OF REQUESTED INFORMATION.— 
Each executive department, agency, or independent 
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establishment, or any other instrumentality of the 
United States shall, to the extent authorized by law, 
furnish any information and recommendations re-
quested under paragraph (1) directly to the Board, 
upon request made by the chairperson or any mem-
ber designated by a majority of the Commission. 
(3) RECEIPT, HANDLING, STORAGE, AND DIS-
SEMINATION.—Information shall only be received, 
handled, stored, and disseminated by members of 
the Board and its staff consistent with all applicable 
statutes, regulations, and Executive orders. 
(c) ASSISTANCE FROM FEDERAL AGENCIES.— 
(1) GENERAL
SERVICES
ADMINISTRATION.— 
The Administrator of General Services shall provide 
to the Board on a reimbursable basis administrative 
support and other services for the performance of 
the Commission’s functions. 
(2) OTHER DEPARTMENTS AND AGENCIES.—In 
addition to the assistance prescribed in paragraph 
(1), departments and agencies of the United States 
may provide to the Commission such services, funds, 
facilities, staff, and other support services as they 
may determine advisable and as may be authorized 
by law, including agencies represented on the Board 
under section 201(b)(1). 
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SEC. 204. RESPONSIBILITIES OF FEDERAL FUNCTIONAL 
REGULATORS. 
(a) FEDERAL FUNCTIONAL REGULATOR DEFINED.— 
For purposes of this title, the term ‘‘Federal functional 
regulator’’ has the same meaning as in section 509(2) of 
the Gramm-Leach-Bliley Act, except that such term in-
cludes the Commodity Futures Trading Commission. 
(b) ASSESSMENTS AND REVIEWS.—In order to ad-
dress current regulatory gaps, each Federal functional 
regulator shall, before each quarterly meeting of the 
Board,— 
(1) assess the effects on macroeconomic sta-
bility of the activities of financial institutions that 
are subject to the jurisdiction of such agency; 
(2) review how such financial institutions inter-
act with entities outside the jurisdiction of such 
agency; and 
(3) report the results of such assessment and 
review to the Board, together with such rec-
ommendations for administrative action as the agen-
cy determines to be appropriate. 
SEC. 205. STAFF OF BOARD. 
(a) APPOINTMENT AND COMPENSATION.—The chair-
person, in accordance with rules agreed upon by the Board 
and title 5, United States Code, may appoint and fix the 
compensation of a staff director and such other personnel 
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as may be necessary to enable the Board to carry out its 
functions. 
(b) DETAILEES.—Any Federal Government employee 
may be detailed to the Board and such detailee shall retain 
the rights, status, and privileges of his or her regular em-
ployment without interruption. 
(c) CONSULTANT SERVICES.—The Board may pro-
cure the services of experts and consultants in accordance 
with section 3109 of title 5, United States Code, but at 
rates not to exceed the daily rate paid a person occupying 
a position at level IV of the Executive Schedule under sec-
tion 5315 of title 5, United States Code. 
SEC. 206. COMPENSATION AND TRAVEL EXPENSES. 
(a) COMPENSATION.—Each member of the Board ap-
pointed under section 201(b)(2) may be compensated at 
not to exceed the daily equivalent of the annual rate of 
basic pay in effect for a position at level IV of the Execu-
tive Schedule under section 5315 of title 5, United States 
Code, for each day during which that member is engaged 
in the actual performance of the duties of the Board. 
(b) TRAVEL EXPENSES.—While away from their 
homes or regular places of business in the performance 
of services for the Board, members of the Board shall be 
allowed travel expenses, including per diem in lieu of sub-
sistence, in the same manner as persons employed inter-
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mittently in the Government service are allowed expenses 
under section 5703(b) of title 5, United States Code. 
TITLE 
III—REGULATORY 
CON-
SOLIDATION AND CONSUMER 
PROTECTION 
SEC. 301. ESTABLISHMENT. 
(a) IN GENERAL.—There is hereby established in the 
executive branch of the Government an independent agen-
cy to be known as the Financial Institutions Regulator 
(hereafter in this title referred to as the ‘‘FIR’’). 
(b) DIVISIONS OF THE FIR.—There are hereby es-
tablished within the FIR— 
(1) a division to be known as the Federal Bank-
ing Division; and 
(2) a division to be known as the State Banking 
Division; 
(c) INSURED DEPOSITORY INSTITUTION DEFINED.— 
For purposes of this title, the term ‘‘insured depository 
institution’’ has the meaning given to such term in section 
3(c) of the Federal Deposit Insurance Act. 
SEC. 302. BOARD OF DIRECTORS. 
(a) IN GENERAL.—The management of the FIR shall 
be vested in a Board of Directors consisting of 5 mem-
bers— 
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(1) 1 of whom shall be the Chairman of the 
FIR and who shall be appointed by the President, 
by and with the advice and consent of the Senate; 
(2) 1 of whom shall be the head of the Federal 
Banking Division and who shall be appointed by the 
President, by and with the advice and consent of the 
Senate; 
(3) 1 of whom shall be the head of the State 
Banking Division and who shall be appointed by the 
President, by and with the advice and consent of the 
Senate; 
(4) 1 of whom shall be the Chairman of the Na-
tional Credit Union Administration; and 
(5) 1 of whom shall be the Chairperson of the 
Board of Directors of the Federal Deposit Insurance 
Corporation. 
(b) TERMS.— 
(1) 5–YEAR TERMS.—Each member appointed 
under paragraphs (1), (2), and (3) of subsection (a) 
shall be appointed for a term of 5 years. 
(2) INTERIM APPOINTMENTS.—Any member ap-
pointed to fill a vacancy occurring before the end of 
the term to which such member’s predecessor was 
appointed shall be appointed only for the remainder 
of such term. 
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(3) CONTINUATION OF SERVICE.—Any member 
may continue to serve after the expiration of the 
term of office to which such member was appointed 
until a successor has been appointed and confirmed. 
(c) VACANCY.—Any vacancy on the Board of Direc-
tors shall be filled in the manner in which the original 
appointment was made. 
(d) INELIGIBILITY FOR OTHER OFFICES.— 
(1) RESTRICTIONS ON EMPLOYMENT BY DEPOS-
ITORY INSTITUTIONS.—No member of the Board of 
Directors may hold any office, position, or employ-
ment in any insured depository institution or any af-
filiate (as defined in section 2(k) of the Bank Hold-
ing Company Act of 1956) of an insured depository 
institution during— 
(A) the time such member is in office; and 
(B) the 2-year period beginning on the 
date such member ceases to serve on the Board 
of Directors. 
(2) OTHER RESTRICTIONS DURING SERVICE AS 
MEMBER.—No member of the Board of Directors 
may— 
(A) be an officer or director of any Federal 
Reserve bank or Federal home loan bank; or 
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(B) hold any stock in any insured deposi-
tory institution or any affiliate (as defined in 
section 2(k) of the Bank Holding Company Act 
of 1956) of an insured depository institution. 
(3) CERTIFICATION.—Upon taking office, each 
member of the Board of Directors shall file a certifi-
cation under oath with the secretary of the Board of 
Directors that such member has complied with the 
requirements of this subsection. 
SEC. 303. POWERS AND DUTIES OF THE FIR. 
(a) REGULATION OF NATIONAL BANKS.— 
(1) TRANSFER TO THE FIR.—All functions of 
the Comptroller of the Currency are hereby trans-
ferred to the FIR. 
(2) FIR POWERS.—The FIR shall have all pow-
ers, duties, and authority which, before the date of 
the enactment of this Act, were vested in the Comp-
troller of the Currency under any provision of Fed-
eral law to the extent such provision applies to na-
tional banks or the office, officers, or employees of 
the Comptroller of the Currency. 
(b) REGULATION OF MEMBER BANKS, BANK HOLD-
ING COMPANIES AND AFFILIATES, AND VARIOUS INTER-
NATIONAL BANKING ENTITIES.— 
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(1) TRANSFER TO THE FIR.—All functions of 
the Board of Governors of the Federal Reserve Sys-
tem (and any Federal reserve bank) relating to— 
(A) the supervision and regulation of 
banks which are members of the Federal Re-
serve System, 
(B) the supervision and regulation of bank 
holding companies and any subsidiary or affil-
iate of a bank holding company which is not a 
depository institution, 
(C) the supervision and regulation of com-
panies operating under section 25 or 25A of the 
Federal Reserve Act or the International Bank-
ing Act of 1978, 
(D) the supervision and regulation of any 
company which is subject to supervision and 
regulation by the Board of Governors under any 
title of the Consumer Credit Protection Act, 
and 
(E) the supervision and regulation of any 
foreign bank, any branch or agency of a foreign 
bank, and any commercial lending company 
controlled by a foreign bank, 
are hereby transferred to the FIR. 
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(2) FIR POWERS.—The FIR shall have all pow-
ers, duties, and authority which, before the date of 
the enactment of this Act, were vested in the Board 
of Governors of the Federal Reserve System under 
any provision of Federal law to the extent such pro-
visions apply to banks or other companies described 
in any subparagraph of paragraph (1). 
(c) REGULATION
OF SAVINGS ASSOCIATIONS
AND 
SAVINGS AND LOAN HOLDING COMPANIES.— 
(1) TRANSFER TO THE FEDERAL BANKING DI-
VISION.—All functions of the Director of the Office 
of Thrift Supervision are hereby transferred to the 
FIR. 
(2) FIR POWERS.—The FIR shall have all pow-
ers, duties, and authority which, before the date of 
the enactment of this Act, were vested in the Direc-
tor of the Office of Thrift Supervision under any 
provision of Federal law to the extent such provision 
applies to savings associations, savings and loan 
holding companies, or the office, officers, or employ-
ees of the Director. 
(d) REGULATION OF STATE NONMEMBER BANKS.— 
(1) TRANSFER TO THE FIR.—All functions of 
the Federal Deposit Insurance Corporation relating 
to the supervision and regulation of State non-
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member banks, including savings banks, (other than 
insurance, conservatorship, or receivership functions) 
and foreign banks with insured branches (as defined 
in section 3(s)(3) of the Federal Deposit Insurance 
Act) are hereby transferred to the FIR. 
(2) FIR POWERS.—The FIR shall have all pow-
ers, duties, and authority which, before the date of 
the enactment of this Act, were vested in the Fed-
eral Deposit Insurance Corporation under any provi-
sion of Federal law to the extent such provisions 
apply to the supervision and regulation of State non-
member banks, including savings banks, (other than 
insurance, conservatorship, or receivership functions) 
and foreign banks with insured branches (as defined 
in section 3(s)(3) of the Federal Deposit Insurance 
Act). 
(e) REGULATIONS AND ORDERS.—In addition to any 
authority under any provision referred to in subsection 
(a), (b), (c), or (d), the FIR may prescribe such regula-
tions and issue such orders as the FIR may determine 
to be appropriate to carry out the purposes of this title 
and the powers and duties of the FIR under this title and 
any provision referred to in any such subsection. 
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(f) NO INTENDED IMPACT ON EXISTING RIGHTS AND 
JUDICIAL PRECEDENT.—Nothing in this section shall be 
construed— 
(1) to impact any existing right or obligation 
under any function or power transferred to the FIR, 
solely by reason of such transfer; or 
(2) to impact any judicial precedent established 
with respect to any function or power transferred to 
the FIR, solely by reason of such transfer. 
(g) EFFECTIVE DATE.—The provisions of this sec-
tion shall take effect after the end of the 90-day period 
beginning on the date of the enactment of this Act. 
SEC. 304. ALLOCATION OF RESPONSIBILITY AMONG FIR DI-
VISIONS. 
(a) FEDERAL BANKING DIVISION.—The Federal 
Banking Division shall have the primary responsibility for 
carrying out the FIR’s authority with respect to— 
(1) national banking associations; 
(2) foreign banks and Federal branches or 
agencies of a foreign bank; 
(3) bank holding companies and any subsidiary 
or affiliate of a bank holding company which is not 
a depository institution, other than a bank holding 
company, subsidiary, or affiliate that consists solely 
of State banks that are insured banks (as such 
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terms is defined in section 3(h) of the Federal De-
posit Insurance Act (12 U.S.C. 1813(h)); 
(4) companies operating under section 25 or 
25A of the Federal Reserve Act or the International 
Banking Act of 1978; 
(5) commercial lending companies, other than a 
Federal agency; 
(6) savings associations; 
(7) savings and loan holding companies; and 
(8) such additional areas as the Board of Direc-
tors may prescribe. 
(b) STATE BANKING DIVISION.—The State Banking 
Division shall have the primary responsibility for carrying 
out the FIR’s authority with respect to— 
(1) any State bank that is an insured bank (as 
such terms is defined in section 3(h) of the Federal 
Deposit Insurance Act (12 U.S.C. 1813(h))); 
(2) any bank holding company or subsidiary or 
affiliate of a bank holding company, if such bank 
holding company, subsidiary, or affiliate consists 
solely of State banks described in paragraph (1); 
and 
(3) such additional areas as the Board of Direc-
tors may prescribe. 
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SEC. 305. TECHNICAL AND CONFORMING AMENDMENTS RE-
LATING TO TRANSFERS OF FUNCTIONS TO 
THE FIR. 
(a) APPROPRIATE FEDERAL BANKING AGENCY RE-
DEFINED.—Section 3(q) of the Federal Deposit Insurance 
Act (12 U.S.C. 1813(q)) is amended to read as follows: 
‘‘(q) APPROPRIATE FEDERAL BANKING AGENCY.— 
The term ‘appropriate Federal banking agency’ means the 
Financial Institutions Regulator.’’. 
(b) MEMBERS OF FDIC BOARD.—Section 2(a)(1) of 
the Federal Deposit Insurance Act (12 U.S.C. 1812(a)(1)) 
is amended— 
(1) by striking subparagraph (A) and redesig-
nating subparagraphs (B) and (C) as subparagraphs 
(A) and (B), respectively; 
(2) in subparagraph (A) (as so redesignated by 
paragraph (1)), by striking ‘‘Director of the Office 
of Thrift Supervision’’ and inserting ‘‘Chairman of 
the Financial Institutions Regulator’’; and 
(3) in subparagraph (B) (as so redesignated by 
paragraph (1)), by striking ‘‘3’’ and inserting ‘‘4’’. 
(c) EFFECTIVE DATE.—The provisions of this section 
shall take effect after the end of the 90-day period begin-
ning on the date of the enactment of this Act. 
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SEC. 306. OFFICE OF COMPTROLLER OF THE CURRENCY 
AND POSITION OF COMPTROLLER OF THE 
CURRENCY ABOLISHED. 
(a) IN GENERAL.—Effective at the end of the 180- 
day period beginning on the date of the enactment of this 
Act, the Office of the Comptroller of the Currency and 
the position of Comptroller of the Currency are hereby 
abolished. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
Effective at the end of the 180-day period beginning on 
the date of the enactment of this Act: 
(1) Chapter nine of title VII of the Revised 
Statutes is amended by striking sections 324, 325, 
and 326. 
(2) Subchapter I of chapter 3 of title 31, 
United States Code, is amended by striking section 
307. 
SEC. 307. OFFICE OF THRIFT SUPERVISION AND POSITION 
OF DIRECTOR OF THE OFFICE OF THRIFT SU-
PERVISION ABOLISHED. 
(a) IN GENERAL.—Effective at the end of the 180- 
day period beginning on the date of the enactment of this 
Act, the Office of Thrift Supervision and the position of 
Director of the Office of Thrift Supervision are hereby 
abolished. 
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(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
Effective at the end of the 180-day period beginning on 
the date of the enactment of this Act: 
(1) Section 3 of the Home Owners’ Loan Act 
(12 U.S.C. 1462a) is amended by striking sub-
sections (a) and (b). 
(2) Subchapter I of chapter 3 of title 31, 
United States Code, is amended by striking section 
309. 
SEC. 308. SAVINGS PROVISIONS. 
(a) SAVINGS PROVISIONS RELATING TO THE COMP-
TROLLER OF THE CURRENCY.— 
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—Sections 303(a)(1) and 306 
shall not affect the validity of any right, duty, or ob-
ligation of the United States, the Comptroller of the 
Currency, the Office of the Comptroller of the Cur-
rency, or any other person, which— 
(A) arises under or pursuant to any provi-
sion of law referred to in section 303(a)(2); and 
(B) existed on the day before the date of 
the enactment of this Act. 
(2) CONTINUATION
OF
SUITS.—No action or 
other proceeding commenced by or against the 
Comptroller of the Currency or the Office of the 
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Comptroller of the Currency shall abate by reason of 
the enactment of this Act, except that the FIR shall 
be substituted for the Comptroller or Office as a 
party to any such action or proceeding. 
(b) SAVINGS PROVISIONS RELATING TO THE BOARD 
OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.— 
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—Section 303(b)(1) shall not 
affect the validity of any right, duty, or obligation of 
the United States, the Board of Governors of the 
Federal Reserve System, or any other person, 
which— 
(A) arises under or pursuant to any provi-
sion of law referred to in section 303(b)(2); and 
(B) existed on the day before the date of 
the enactment of this Act. 
(2) CONTINUATION
OF
SUITS.—No action or 
other proceeding commenced by or against the 
Board of Governors of the Federal Reserve System 
with respect to any function transferred to the FIR 
shall abate by reason of the enactment of this Act, 
except that the FIR shall be substituted for the 
Board of Governors as a party to any such action 
or proceeding. 
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(c) SAVINGS PROVISIONS RELATING TO THE DIREC-
TOR OF THE OFFICE OF THRIFT SUPERVISION.— 
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—Sections 303(c)(1) and 307 
shall not affect the validity of any right, duty, or ob-
ligation of the United States, the Director of the Of-
fice of Thrift Supervision, the Office of Thrift Su-
pervision, or any other person, which— 
(A) arises under or pursuant to any provi-
sion of law referred to in section 303(c)(2); and 
(B) existed on the day before the date of 
the enactment of this Act. 
(2) CONTINUATION
OF
SUITS.—No action or 
other proceeding commenced by or against the Di-
rector of the Office of Thrift Supervision or the Of-
fice of Thrift Supervision shall abate by reason of 
the enactment of this Act, except that the FIR shall 
be substituted for the Director or Office as a party 
to any such action or proceeding. 
(d) SAVINGS PROVISIONS RELATING TO THE FED-
ERAL DEPOSIT INSURANCE CORPORATION.— 
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—Section 303(d)(1) shall not 
affect the validity of any right, duty, or obligation of 
the United States, the Federal Deposit Insurance 
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Corporation, the Board of Directors of such Cor-
poration, or any other person, which— 
(A) arises under or pursuant to any provi-
sion of law referred to in section 303(d)(2); and 
(B) existed on the day before the date of 
the enactment of this Act. 
(2) CONTINUATION
OF
SUITS.—No action or 
other proceeding commenced by or against the Fed-
eral Deposit Insurance Corporation or the Board of 
Directors of such Corporation with respect to any 
function transferred to the FIR shall abate by rea-
son of the enactment of this Act, except that the 
FIR may be substituted for the Corporation or 
Board of Directors, as the case may be, as a party 
to any such action or proceeding. 
(e) CONTINUATION OF ORDERS, RESOLUTIONS, DE-
TERMINATIONS, AND REGULATIONS.—All orders, resolu-
tions, determinations, and regulations, which— 
(1) have been issued, made, prescribed, or al-
lowed to become effective by the Director of the Of-
fice of Thrift Supervision, the Comptroller of the 
Currency, the Federal Deposit Insurance Corpora-
tion, or the Board of Governors of the Federal Re-
serve System (including orders, resolutions, deter-
minations, and regulations which relate to the con-
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duct of conservatorships and receiverships), or by a 
court of competent jurisdiction, in the performance 
of functions which are transferred by this Act, and 
(2) are in effect on the date this Act takes ef-
fect (or become effective after such date pursuant to 
the terms of the order, resolution, determination or 
regulation, as in effect on such date), 
shall continue in effect according to the terms of such or-
ders, resolutions, determinations, and regulations and 
shall be enforceable by or against the FIR until modified, 
terminated, set aside, or superseded in accordance with 
applicable law by the FIR, by any court of competent ju-
risdiction, or by operation of law. 
(f) EFFECTIVE DATE.—The provisions of this section 
shall take effect after the end of the 90-day period begin-
ning on the date of the enactment of this Act. 
SEC. 309. REFERENCES IN FEDERAL LAW TO FEDERAL 
BANKING AGENCIES. 
(a) COMPTROLLER OF THE CURRENCY AND DIREC-
TOR OF THE OFFICE OF THRIFT SUPERVISION.—Any ref-
erence in any Federal law to the Comptroller of the Cur-
rency, the Office of the Comptroller of the Currency, the 
Director of the Office of Thrift Supervision, or the Office 
of Thrift Supervision shall be deemed to be a reference 
to the FIR. 
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(b) BOARD OF GOVERNORS OF THE FEDERAL RE-
SERVE SYSTEM.—Any reference in any Federal law to the 
Board of Governors of the Federal Reserve System in con-
nection with any function of the Board under any provi-
sion of law referred to in section 304(b)(2) shall be 
deemed to be a reference to the FIR. 
(c) FEDERAL DEPOSIT INSURANCE CORPORATION.— 
Any reference in any Federal law to the Federal Deposit 
Insurance Corporation or the Board of Directors of such 
Corporation in connection with any function of the Cor-
poration or Board of Directors under any provision of law 
referred to in section 303(d)(2) shall be deemed to be a 
reference to the FIR. 
(d) EFFECTIVE DATE.—The provisions of this sec-
tion shall take effect after the end of the 90-day period 
beginning on the date of the enactment of this Act. 
SEC. 310. NATIONAL CREDIT UNION ADMINISTRATION 
MOVED WITHIN THE FIR. 
(a) IN GENERAL.—The Nation Credit Union Admin-
istration is hereby moved within the FIR and shall be 
maintained as a distinct entity within the FIR. 
(b) EFFECTIVE DATE.—The provisions of this sec-
tion shall take effect after the end of the 90-day period 
beginning on the date of the enactment of this Act. 
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SEC. 311. OFFICE OF CONSUMER PROTECTION. 
(a) OFFICE OF CONSUMER PROTECTION.—There is 
hereby established within the FIR an Office of Consumer 
Protection (hereinafter in this section referred to as the 
‘‘Office’’). 
(b) DELEGATION OF AUTHORITY TO THE OFFICE.— 
The Office shall have the primary responsibility for car-
rying out the FIR’s authority with respect to laws and 
regulations relating to consumer protection, including the 
authority of the FIR under the Consumer Credit Protec-
tion Act. 
(c) RULEMAKING APPROVAL.—No rule or regulation 
issued by the Office shall take effect unless the Board of 
Directors of the FIR approves such rule or regulation. 
(d) 
CONSUMER
COMPLAINT
HOTLINE
AND 
WEBSITE.—The Office shall establish a toll-free hotline 
and a website for consumers to contact regarding inquiries 
or complaints related to insured depository institutions. 
Such hotline and website shall then refer such inquiries 
or complaints to the appropriate FIR division, which will 
then respond to the inquiry or complaint. 
(e) DISCLOSURE REVIEW.—Not less than once every 
7 years, the Office shall undertake a comprehensive review 
of all public disclosures (including policies, procedures, 
guidelines, standards, and regulatory filings) made by the 
FIR and each division of the FIR. In making such review 
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the Office shall perform a cost and benefit analysis of each 
such disclosure and determine if the policy of the FIR to-
wards such disclosure should remain the same or be re-
vised. 
(f) CONSUMER
TESTING
REQUIREMENT.—Before 
prescribing any regulation pursuant to the authority of the 
FIR under the Consumer Credit Protection Act, the Office 
shall carry out consumer testing with respect to such regu-
lation. 
(g) PERIODIC REVIEW OF REGULATIONS.— 
(1) REVIEW.—Not less than once every 7 years, 
the Office shall undertake a comprehensive review of 
all regulations issued by the Office, the FIR, or any 
entity preceding the FIR, with respect to the author-
ity of the FIR under the Consumer Credit Protec-
tion Act. In making such review, the Office shall 
perform a cost and benefit analysis of each regula-
tion and determine if such regulation should remain 
the same or if such regulation should be revised. 
(2) REPORT.—After performing a review re-
quired by paragraph (1), the Office shall issue a re-
port to the Congress describing the review process, 
any determinations made by the Office, and any re-
visions to regulations that the Office determined 
were needed. 
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TITLE IV—FEDERAL RESERVE 
REFORM 
SEC. 401. GAO AUTHORITY TO AUDIT THE FEDERAL RE-
SERVE SYSTEM. 
(a) IN GENERAL.—Subsection (b) of section 714 of 
title 31, United States Code, is amended by striking all 
after ‘‘shall audit an agency’’ and inserting a period. 
(b) AUDIT.—Section 714 of title 31, United States 
Code, is amended by adding at the end the following new 
subsection: 
‘‘(e) AUDIT AND REPORT OF THE FEDERAL RE-
SERVE SYSTEM.— 
‘‘(1) IN GENERAL.—The audit of the Board of 
Governors of the Federal Reserve System and the 
Federal reserve banks under subsection (b) shall be 
completed before the end of 2010. 
‘‘(2) REPORT.— 
‘‘(A) REQUIRED.—A report on the audit 
referred to in paragraph (1) shall be submitted 
by the Comptroller General to the Congress be-
fore the end of the 90-day period beginning on 
the date on which such audit is completed and 
made available to the Speaker of the House, the 
majority and minority leaders of the House of 
Representatives, the majority and minority 
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leaders of the Senate, the Chairman and Rank-
ing Member of the committee and each sub-
committee of jurisdiction in the House of Rep-
resentatives and the Senate, and any other 
Member of Congress who requests it. 
‘‘(B) CONTENTS.—The report under sub-
paragraph (A) shall include a detailed descrip-
tion of the findings and conclusion of the 
Comptroller General with respect to the audit 
that is the subject of the report, together with 
such recommendations for legislative or admin-
istrative action as the Comptroller General may 
determine to be appropriate.’’. 
SEC. 402. MONETARY POLICY AND INFLATION TARGETS. 
Section 2A of the Federal Reserve Act (12 U.S.C. 
225a) is amended to read as follows: 
‘‘SEC. 2A. MONETARY POLICY. 
‘‘(a) PRICE STABILITY.—The Board and the Federal 
Open Market Committee shall— 
‘‘(1) establish an explicit numerical definition of 
the term ‘price stability’; 
‘‘(2) implement such definition through infla-
tion targets; and 
‘‘(3) maintain a monetary policy that effectively 
promotes long-term price stability. 
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‘‘(b) MARKET STABILITY
AND LIQUIDITY.—Sub-
section (a) shall not be construed as a limitation on the 
authority or responsibility of the Board— 
‘‘(1) to provide liquidity to markets in the event 
of a disruption that threatens the smooth func-
tioning and stability of the financial sector; or 
‘‘(2) to serve as a lender of last resort under 
this Act when the Board determines such action is 
necessary.’’. 
SEC. 403. REFORMS OF SECTION 13 EMERGENCY POWERS. 
(a) RESTRICTIONS ON EMERGENCY POWERS.—The 
third undesignated paragraph of section 13 of the Federal 
Reserve Act is amended— 
(1) by striking ‘‘In unusual and exigent’’ and 
inserting the following: 
‘‘(3) EMERGENCY AUTHORITY.— 
‘‘(A) IN GENERAL.—In unusual and exi-
gent’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(B) REQUIREMENT
FOR
BROAD
AVAIL-
ABILITY OF DISCOUNTS.—Subject to the limita-
tions provided under subparagraph (A), any au-
thorization made pursuant to the authority pro-
vided under subparagraph (A) shall require dis-
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counts to be made broadly available to individ-
uals, partnerships, and corporations within the 
market sector for which such authorization is 
being made. 
‘‘(C) TRANSPARENCY AND OVERSIGHT.— 
‘‘(i) SECRETARY
OF
THE
TREASURY 
APPROVAL
REQUIRED; NOTICE
TO
THE 
CONGRESS.—No 
authorization 
may 
be 
made pursuant to the authority provided 
under subparagraph (A) unless— 
‘‘(I) such authorization is first 
approved by the Secretary of the 
Treasury; and 
‘‘(II) the Secretary of the Treas-
ury issues a notice to the Congress 
detailing what authorization the Sec-
retary has approved. 
‘‘(ii) PROGRAMS
MOVED
ON-BUDGET 
AFTER 90 DAYS.—On and after the date 
that is 90 days after the date on which any 
authorization is made pursuant to the au-
thority provided under subparagraph (A), 
all receipts and disbursements resulting 
from such authorization shall be counted 
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as new budget authority, outlays, receipts, 
or deficit or surplus for purposes of— 
‘‘(I) the budget of the United 
States Government as submitted by 
the President; 
‘‘(II) the congressional budget; 
and 
‘‘(III) the Balanced Budget and 
Emergency Deficit Control Act of 
1985. 
‘‘(D) 
JOINT
RESOLUTION
OF
DIS-
APPROVAL.— 
‘‘(i) IN GENERAL.—With respect to an 
authorization made pursuant to the au-
thority provided under subparagraph (A), 
if, during the 90-day period beginning on 
the date the Congress receives a notice de-
scribed under subparagraph (C)(i)(II) with 
respect to such authorization, there is en-
acted into law a joint resolution dis-
approving such authorization, any action 
taken under such authorization must be 
discontinued and unwound not later than 
the end of the 180-day period beginning on 
the date that such authorization was made. 
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‘‘(ii) CONTENTS
OF
JOINT
RESOLU-
TION.—For the purpose of this paragraph, 
the term ‘joint resolution’ means only a 
joint resolution— 
‘‘(I) that is introduced not later 
than 3 calendar days after the date on 
which the notice referred to in clause 
(i) is received by the Congress; 
‘‘(II) which does not have a pre-
amble; 
‘‘(III) the title of which is as fol-
lows: ‘Joint resolution relating to the 
disapproval of authorization under the 
emergency powers of the Federal Re-
serve Act’; and 
‘‘(IV) the matter after the resolv-
ing clause of which is as follows: 
‘That Congress disapproves the au-
thorization contained in the notice 
submitted to the Congress by the Sec-
retary of the Treasury on the date of 
lllllll 
relating 
to 
lllllll.’ (The blank spaces 
being appropriately filled in.). 
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‘‘(E) FAST
TRACK
CONSIDERATION
IN 
HOUSE OF REPRESENTATIVES.— 
‘‘(i) RECONVENING.—Upon receipt of 
a notice referred to in subparagraph 
(D)(i), the Speaker, if the House would 
otherwise be adjourned, shall notify the 
Members of the House that, pursuant to 
this section, the House shall convene not 
later than the second calendar day after 
receipt of such report. 
‘‘(ii) REPORTING AND DISCHARGE.— 
Any committee of the House of Represent-
atives to which a joint resolution is re-
ferred shall report it to the House not later 
than 5 calendar days after the date of re-
ceipt of the notice referred to in subpara-
graph (D)(i). If a committee fails to report 
the joint resolution within that period, the 
committee shall be discharged from further 
consideration of the joint resolution and 
the joint resolution shall be referred to the 
appropriate calendar. 
‘‘(iii) PROCEEDING
TO
CONSIDER-
ATION.—After each committee authorized 
to consider a joint resolution reports it to 
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the House or has been discharged from its 
consideration, it shall be in order, not later 
than the sixth day after Congress receives 
the notice referred to in subparagraph 
(D)(i), to move to proceed to consider the 
joint resolution in the House. All points of 
order against the motion are waived. Such 
a motion shall not be in order after the 
House has disposed of a motion to proceed 
on the joint resolution. The previous ques-
tion shall be considered as ordered on the 
motion to its adoption without intervening 
motion. The motion shall not be debatable. 
A motion to reconsider the vote by which 
the motion is disposed of shall not be in 
order. 
‘‘(iv) CONSIDERATION.—The joint res-
olution shall be considered as read. All 
points of order against the joint resolution 
and against its consideration are waived. 
The previous question shall be considered 
as ordered on the joint resolution to its 
passage without intervening motion except 
two hours of debate equally divided and 
controlled by the proponent and an oppo-
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nent. A motion to reconsider the vote on 
passage of the joint resolution shall not be 
in order. 
‘‘(F) FAST TRACK CONSIDERATION IN SEN-
ATE.— 
‘‘(i) RECONVENING.—Upon receipt of 
a notice referred to in subparagraph 
(D)(i), if the Senate has adjourned or re-
cessed for more than 2 days, the majority 
leader of the Senate, after consultation 
with the minority leader of the Senate, 
shall notify the Members of the Senate 
that, pursuant to this section, the Senate 
shall convene not later than the second cal-
endar day after receipt of such message. 
‘‘(ii) PLACEMENT
ON
CALENDAR.— 
Upon introduction in the Senate, the joint 
resolution shall be placed immediately on 
the calendar. 
‘‘(iii) FLOOR CONSIDERATION.— 
‘‘(I) 
IN
GENERAL.—Notwith-
standing Rule XXII of the Standing 
Rules of the Senate, it is in order at 
any time during the period beginning 
on the 4th day after the date on 
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which Congress receives a notice re-
ferred to in subparagraph (D)(i) and 
ending on the 6th day after the date 
on which Congress receives a notice 
referred to in subparagraph (D)(i) 
(even though a previous motion to the 
same effect has been disagreed to) to 
move to proceed to the consideration 
of the joint resolution, and all points 
of order against the joint resolution 
(and against consideration of the joint 
resolution) are waived. The motion to 
proceed is not debatable. The motion 
is not subject to a motion to postpone. 
A motion to reconsider the vote by 
which the motion is agreed to or dis-
agreed to shall not be in order. If a 
motion to proceed to the consideration 
of the resolution is agreed to, the joint 
resolution shall remain the unfinished 
business until disposed of. 
‘‘(II) DEBATE.—Debate on the 
joint resolution, and on all debatable 
motions and appeals in connection 
therewith, shall be limited to not more 
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than 10 hours, which shall be divided 
equally between the majority and mi-
nority leaders or their designees. A 
motion further to limit debate is in 
order and not debatable. An amend-
ment to, or a motion to postpone, or 
a motion to proceed to the consider-
ation of other business, or a motion to 
recommit the joint resolution is not in 
order. 
‘‘(III) VOTE ON PASSAGE.—The 
vote on passage shall occur imme-
diately following the conclusion of the 
debate on a joint resolution, and a 
single quorum call at the conclusion of 
the debate if requested in accordance 
with the rules of the Senate. 
‘‘(IV) RULINGS
OF
THE
CHAIR 
ON
PROCEDURE.—Appeals from the 
decisions of the Chair relating to the 
application of the rules of the Senate, 
as the case may be, to the procedure 
relating to a joint resolution shall be 
decided without debate. 
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‘‘(G) RULES RELATING TO SENATE AND 
HOUSE OF REPRESENTATIVES.— 
‘‘(i) COORDINATION WITH ACTION BY 
OTHER HOUSE.—If, before the passage by 
one House of a joint resolution of that 
House, that House receives from the other 
House a joint resolution, then the following 
procedures shall apply: 
‘‘(I) The joint resolution of the 
other House shall not be referred to a 
committee. 
‘‘(II) With respect to a joint res-
olution of the House receiving the res-
olution— 
‘‘(aa) the procedure in that 
House shall be the same as if no 
joint resolution had been received 
from the other House; but 
‘‘(bb) the vote on passage 
shall be on the joint resolution of 
the other House. 
‘‘(ii) TREATMENT OF JOINT RESOLU-
TION
OF
OTHER
HOUSE.—If one House 
fails to introduce or consider a joint resolu-
tion under this section, the joint resolution 
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of the other House shall be entitled to ex-
pedited floor procedures under this section. 
‘‘(iii) TREATMENT
OF
COMPANION 
MEASURES.—If, following passage of the 
joint resolution in the Senate, the Senate 
then receives the companion measure from 
the House of Representatives, the com-
panion measure shall not be debatable. 
‘‘(iv) VETOES.—If the President ve-
toes the joint resolution, debate on a veto 
message in the Senate under this section 
shall be 1 hour equally divided between the 
majority and minority leaders or their des-
ignees. 
‘‘(v) RULES
OF
HOUSE
OF
REP-
RESENTATIVES
AND
SENATE.—This sub-
paragraph and subparagraphs (D), (E), 
and (F) are enacted by Congress— 
‘‘(I) as an exercise of the rule-
making power of the Senate and 
House of Representatives, respec-
tively, and as such it is deemed a part 
of the rules of each House, respec-
tively, but applicable only with respect 
to the procedure to be followed in that 
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House in the case of a joint resolu-
tion, and it supersedes other rules 
only to the extent that it is incon-
sistent with such rules; and 
‘‘(II) with full recognition of the 
constitutional right of either House to 
change the rules (so far as relating to 
the procedure of that House) at any 
time, in the same manner, and to the 
same extent as in the case of any 
other rule of that House.’’. 
(b) CURRENT PROGRAMS MOVED ON-BUDGET.—Not 
later than 90 days after the date of the enactment of this 
Act, all receipts and disbursements resulting from any au-
thorization made before the date of the enactment of this 
Act pursuant to the authority granted by the third undes-
ignated paragraph of section 13 of the Federal Reserve 
Act shall be counted as new budget authority, outlays, re-
ceipts, or deficit or surplus for purposes of— 
(1) the budget of the United States Govern-
ment as submitted by the President; 
(2) the congressional budget; and 
(3) the Balanced Budget and Emergency Def-
icit Control Act of 1985. 
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TITLE 
V—GOVERNMENT-SPON-
SORED 
ENTERPRISES 
RE-
FORM 
SEC. 501. SHORT TITLE. 
This title may be cited as the ‘‘Government-Spon-
sored Enterprises Free Market Reform Act of 2009’’. 
SEC. 502. DEFINITIONS. 
For purposes of this title, the following definitions 
shall apply: 
(1) CHARTER.—The term ‘‘charter’’ means— 
(A) with respect to the Federal National 
Mortgage Association, the Federal National 
Mortgage Association Charter Act (12 U.S.C. 
1716 et seq.); and 
(B) with respect to the Federal Home 
Loan Mortgage Corporation, the Federal Home 
Loan Mortgage Corporation Act (12 U.S.C. 
1451 et seq.). 
(2) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Federal Housing Finance Agen-
cy. 
(3) 
ENTERPRISE.—The 
term 
‘‘enterprise’’ 
means— 
(A) the Federal National Mortgage Asso-
ciation; and 
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(B) the Federal Home Loan Mortgage 
Corporation. 
(4) 
GUARANTEE.—The 
term 
‘‘guarantee’’ 
means, with respect to an enterprise, the credit sup-
port of the enterprise that is provided by the Fed-
eral Government through its charter as a Govern-
ment-sponsored enterprise. 
SEC. 503. TERMINATION OF CURRENT CONSERVATORSHIP. 
(a) IN GENERAL.—Upon the expiration of the period 
referred to in subsection (b), the Director of the Federal 
Housing Finance Agency shall determine, with respect to 
each enterprise, if the enterprise is financially viable at 
that time and— 
(1) if the Director determines that the enter-
prise is financially viable, immediately take all ac-
tions necessary to terminate the conservatorship for 
each of the enterprises; or 
(2) if the Director determines that the enter-
prise is not financially viable, immediately appoint 
the Federal Housing Finance Agency as receiver 
under section 1367 of the Federal Housing Enter-
prises Financial Safety and Soundness Act of 1992 
and carry out such receivership under the authority 
of such section. 
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(b) TIMING.—The period referred to in this sub-
section is, with respect to an enterprise— 
(1) except as provided in paragraph (2), the 24- 
month period beginning upon the date of the enact-
ment of this Act; or 
(2) if the Director determines before the expira-
tion of the period referred to in paragraph (1) that 
the financial markets would be adversely affected 
without the extension of such period under this 
paragraph with respect to that enterprise, the 30- 
month period beginning upon the date of the enact-
ment of this Act. 
(c) FINANCIAL VIABILITY.—The Director may not 
determine that an enterprise is financially viable for pur-
poses of subsection (a) if the Director determines that any 
of the conditions for receivership set forth in paragraph 
(3) or (4) of section 1367(a) of the Federal Housing En-
terprises Financial Safety and Soundness Act of 1992 (12 
U.S.C. 4617(a)) exists at the time with respect to the en-
terprise. 
SEC. 504. LIMITATION OF ENTERPRISE AUTHORITY UPON 
EMERGENCE FROM CONSERVATORSHIP. 
(a) REVISED AUTHORITY.—Upon the expiration of 
the period referred to in section 503(b), if the Director 
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makes the determination under section 503(a)(1), the fol-
lowing provisions shall take effect: 
(1) PORTFOLIO
LIMITATIONS.—Subtitle B of 
title XIII of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4611 et seq.) is 
amended by adding at the end the following new sec-
tion: 
‘‘SEC. 1369E. RESTRICTION ON MORTGAGE ASSETS OF EN-
TERPRISES. 
‘‘(a) RESTRICTION.—No enterprise shall own, as of 
any applicable date in this subsection or thereafter, mort-
gage assets in excess of— 
‘‘(1) upon the expiration of the period referred 
to in section 503(b) of the Government-Sponsored 
Enterprises Free Market Reform Act of 2009, 
$850,000,000,000; or 
‘‘(2) on December 31 of each year thereafter, 
80.0 percent of the aggregate amount of mortgage 
assets of the enterprise as of December 31 of the 
immediately preceding calendar year; 
except that in no event shall an enterprise be required 
under this section to own less than $250,000,000,000 in 
mortgage assets. 
‘‘(b) DEFINITION OF MORTGAGE ASSETS.—For pur-
poses of this section, the term ‘mortgage assets’ means, 
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with respect to an enterprise, assets of such enterprise 
consisting of mortgages, mortgage loans, mortgage-related 
securities, participation certificates, mortgage-backed 
commercial paper, obligations of real estate mortgage in-
vestment conduits and similar assets, in each case to the 
extent such assets would appear on the balance sheet of 
such enterprise in accordance with generally accepted ac-
counting principles in effect in the United States as of 
September 7, 2008 (as set forth in the opinions and pro-
nouncements of the Accounting Principles Board and the 
American Institute of Certified Public Accountants and 
statements and pronouncements of the Financial Account-
ing Standards Board from time to time; and without giv-
ing any effect to any change that may be made after Sep-
tember 7, 2008, in respect of Statement of Financial Ac-
counting Standards No. 140 or any similar accounting 
standard).’’. 
(2) INCREASE IN MINIMUM CAPITAL REQUIRE-
MENT.—Section 1362 of the Federal Housing En-
terprises Financial Safety and Soundness Act of 
1992 (12 U.S.C. 4612), as amended by section 1111 
of the Housing and Economic Recovery Act of 2008 
(Public Law 110–289), is amended— 
(A) in subsection (a), by striking ‘‘For 
purposes of this subtitle, the minimum capital 
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level for each enterprise shall be’’ and inserting 
‘‘The minimum capital level established under 
subsection (g) for each enterprise may not be 
lower than’’; 
(B) in subsection (c)— 
(i) by striking ‘‘subsections (a) and’’ 
and inserting ‘‘subsection’’; 
(ii) by striking ‘‘regulated entities’’ 
the first place such term appears and in-
serting ‘‘Federal Home Loan Banks’’; 
(iii) by striking ‘‘for the enterprises,’’; 
(iv) by striking ‘‘, or for both the en-
terprises and the banks,’’; 
(v) by striking ‘‘the level specified in 
subsection (a) for the enterprises or’’; and 
(vi) by striking ‘‘the regulated entities 
operate’’ and inserting ‘‘such banks oper-
ate’’; 
(C) in subsection (d)(1)— 
(i) by striking ‘‘subsections (a) and’’ 
and inserting ‘‘subsection’’; and 
(ii) by striking ‘‘regulated entity’’ 
each place such term appears and inserting 
‘‘Federal home loan bank’’; 
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(D) in subsection (e), by striking ‘‘regu-
lated entity’’ each place such term appears and 
inserting ‘‘Federal home loan bank’’; 
(E) in subsection (f)— 
(i) by striking ‘‘the amount of core 
capital maintained by the enterprises,’’; 
and 
(ii) by striking ‘‘regulated entities’’ 
and inserting ‘‘banks’’; and 
(F) by adding at the end the following new 
subsection: 
‘‘(g) ESTABLISHMENT OF REVISED MINIMUM CAP-
ITAL LEVELS.— 
‘‘(1) IN GENERAL.—The Director shall cause 
the enterprises to achieve and maintain adequate 
capital by establishing minimum levels of capital for 
the enterprises and by using such other methods as 
the Director deems appropriate. 
‘‘(2) AUTHORITY.—The Director shall have the 
authority to establish such minimum level of capital 
for an enterprise in excess of the level specified 
under subsection (a) as the Director, in the Direc-
tor’s discretion, deems to be necessary or appro-
priate in light of the particular circumstances of the 
enterprise. 
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‘‘(h) FAILURE TO MAINTAIN REVISED MINIMUM 
CAPITAL LEVELS.— 
‘‘(1) UNSAFE AND UNSOUND PRACTICE OR CON-
DITION.—Failure of an enterprise to maintain cap-
ital at or above its minimum level as established 
pursuant to subsection (c) of this section may be 
deemed by the Director, in his discretion, to con-
stitute an unsafe and unsound practice or condition 
within the meaning of this title. 
‘‘(2) 
DIRECTIVE
TO
ACHIEVE
CAPITAL 
LEVEL.— 
‘‘(A) AUTHORITY.—In addition to, or in 
lieu of, any other action authorized by law, in-
cluding paragraph (1), the Director may issue 
a directive to an enterprise that fails to main-
tain capital at or above its required level as es-
tablished pursuant to subsection (c) of this sec-
tion. 
‘‘(B) PLAN.—Such directive may require 
the enterprise to submit and adhere to a plan 
acceptable to the Director describing the means 
and timing by which the enterprise shall achieve 
its required capital level. 
‘‘(C) ENFORCEMENT.—Any such directive 
issued pursuant to this paragraph, including 
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plans submitted pursuant thereto, shall be en-
forceable under the provisions of subtitle C of 
this title to the same extent as an effective and 
outstanding order issued pursuant to subtitle C 
of this title which has become final. 
‘‘(3) ADHERENCE TO PLAN.— 
‘‘(A) CONSIDERATION.—The Director may 
consider such enterprise’s progress in adhering 
to any plan required under this subsection 
whenever such enterprise seeks the requisite ap-
proval of the Director for any proposal which 
would divert earnings, diminish capital, or oth-
erwise impede such enterprise’s progress in 
achieving its minimum capital level. 
‘‘(B) DENIAL.—The Director may deny 
such approval where it determines that such 
proposal would adversely affect the ability of 
the enterprise to comply with such plan.’’. 
(3) REPEAL
OF
INCREASES
TO
CONFORMING 
LOAN LIMITS.— 
(A) REPEAL OF TEMPORARY INCREASES.— 
(i) ECONOMIC
STIMULUS
ACT
OF 
2008.—Section 201 of the Economic Stim-
ulus Act of 2008 (Public Law 110–185) is 
hereby repealed. 
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(ii) AMERICAN RECOVERY AND REIN-
VESTMENT ACT OF 2009.—Section 1203 of 
division A of the American Recovery and 
Reinvestment Act of 2009 (Public Law 
111–5; 123 Stat. 225) is hereby repealed. 
(B) REPEAL OF GENERAL LIMIT AND PER-
MANENT
HIGH-COST
AREA
INCREASE.—Para-
graph (2) of section 302(b) of the Federal Na-
tional Mortgage Association Charter Act (12 
U.S.C. 1717(b)(2)) and paragraph (2) of sec-
tion 305(a) of the Federal Home Loan Mort-
gage Corporation Act (12 U.S.C. 1454(a)(2)) 
are each amended to read as such sections were 
in effect immediately before the enactment of 
the Housing and Economic Recovery Act of 
2008 (Public Law 110–289). 
(C) REPEAL
OF
NEW
HOUSING
PRICE 
INDEX.—Section 1322 of the Federal Housing 
Enterprises Financial Safety and Soundness 
Act of 1992, as added by section 1124(d) of the 
Housing and Economic Recovery Act of 2008 
(Public Law 110–289), is hereby repealed. 
(D) REPEAL.—Section 1124 of the Hous-
ing and Economic Recovery Act of 2008 (Public 
Law 110–289) is hereby repealed. 
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(E) ESTABLISHMENT
OF
CONFORMING 
LOAN LIMIT.—For the year in which the expira-
tion of the period referred to in section 503(b) 
of this section occurs, the limitations governing 
the maximum original principal obligation of 
conventional mortgages that may be purchased 
by the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Cor-
poration, referred to in section 302(b)(2) of the 
Federal National Mortgage Association Charter 
Act (12 U.S.C. 1717(b)(2)) and section 
305(a)(2) of the Federal Home Loan Mortgage 
Corporation Act (12 U.S.C. 1454(a)(2)), re-
spectively, shall be considered to be— 
(i) $417,000 for a mortgage secured 
by a single-family residence, 
(ii) $533,850 for a mortgage secured 
by a 2-family residence, 
(iii) $645,300 for a mortgage secured 
by a 3-family residence, and 
(iv) $801,950 for a mortgage secured 
by a 4-family residence, 
and such limits shall be adjusted effective each 
January 1 thereafter in accordance with such 
sections 302(b)(2) and 305(a)(2). 
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(F) PROHIBITION OF PURCHASE OF MORT-
GAGES
EXCEEDING
MEDIAN
AREA
HOME 
PRICE.— 
(i) FANNIE MAE.—Section 302(b)(2) 
of the Federal National Mortgage Associa-
tion Charter Act (12 U.S.C. 1717(b)(2)) is 
amended by adding at the end the fol-
lowing new sentence: ‘‘Notwithstanding 
any other provision of this title, the cor-
poration may not purchase any mortgage 
for a property having a principal obligation 
that exceeds the median home price, for 
properties of the same size, for the area in 
which such property subject to the mort-
gage is located.’’. 
(ii) 
FREDDIE
MAC.—Section 
305(a)(2) of the Federal Home Loan 
Mortgage Corporation Act (12 U.S.C. 
1454(a)(2)) is amended by adding at the 
end the following new sentence: ‘‘Notwith-
standing any other provision of this title, 
the Corporation may not purchase any 
mortgage for a property having a principal 
obligation that exceeds the median home 
price, for properties of the same size, for 
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the area in which such property subject to 
the mortgage is located.’’. 
(4) REQUIREMENT TO PAY STATE AND LOCAL 
TAXES.— 
(A) FANNIE MAE.—Paragraph (2) of sec-
tion 309(c) of the Federal National Mortgage 
Association 
Charter 
Act 
(12 
U.S.C. 
1723a(c)(2)) is amended— 
(i) by striking ‘‘shall be exempt from’’ 
and inserting ‘‘shall be subject to’’; and 
(ii) by striking ‘‘except that any’’ and 
inserting ‘‘and any’’. 
(B) FREDDIE MAC.—Section 303(e) of the 
Federal Home Loan Mortgage Corporation Act 
(12 U.S.C. 1452(e)) is amended— 
(i) by striking ‘‘shall be exempt from’’ 
and inserting ‘‘shall be subject to’’; and 
(ii) by striking ‘‘except that any’’ and 
inserting ‘‘and any’’. 
(5) REPEALS RELATING TO REGISTRATION OF 
SECURITIES.— 
(A) FANNIE MAE.— 
(i) 
MORTGAGE-BACKED
SECURI-
TIES.—Section 304(d) of the Federal Na-
tional Mortgage Association Charter Act 
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(12 U.S.C. 1719(d)) is amended by strik-
ing the fourth sentence. 
(ii) SUBORDINATE
OBLIGATIONS.— 
Section 304(e) of the Federal National 
Mortgage Association Charter Act (12 
U.S.C. 1719(e)) is amended by striking the 
fourth sentence. 
(B) FREDDIE
MAC.—Section 306 of the 
Federal Home Loan Mortgage Corporation Act 
(12 U.S.C. 1455) is amended by striking sub-
section (g). 
(6) RECOUPMENT
OF
COSTS
FOR
FEDERAL 
GUARANTEE.— 
(A) ASSESSMENTS.—The Director of the 
Federal Housing Finance Agency shall establish 
and collect from each enterprise assessments in 
the amount determined under subparagraph 
(B). In determining the method and timing for 
making such assessments, the Director shall 
take into consideration the determinations and 
conclusions of the study under subsection (b) of 
this section. 
(B) DETERMINATION OF COSTS OF GUAR-
ANTEE.—Assessments under subparagraph (A) 
with respect to an enterprise shall be in such 
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amount as the Director determines necessary to 
recoup to the Federal Government the full value 
of the benefit the enterprise receives from the 
guarantee provided by the Federal Government 
for the obligations and financial viability of the 
enterprise, based upon the dollar value of such 
benefit in the market to such enterprise when 
not operating under conservatorship or receiver-
ship. To determine such amount, the Director 
shall establish a risk-based pricing mechanism 
as the Director considers appropriate, taking 
into consideration the determinations and con-
clusions of the study under subsection (b) of 
this section. 
(C) 
TREATMENT
OF
RECOUPED 
AMOUNTS.—The Director shall cover into the 
general fund of the Treasury any amounts re-
ceived from assessments made under this para-
graph. 
(b) GAO STUDY
REGARDING
RECOUPMENT
OF 
COSTS FOR FEDERAL GOVERNMENT GUARANTEE.—The 
Comptroller General of the United States shall conduct 
a study to determine a risk-based pricing mechanism to 
accurately determine the value of the benefit the enter-
prises receive from the guarantee provided by the Federal 
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Government for the obligations and financial viability of 
the enterprises. Such study shall establish a dollar value 
of such benefit in the market to each enterprise when not 
operating under conservatorship or receivership, shall ana-
lyze various methods of the Federal Government assessing 
a charge for such value received (including methods involv-
ing an annual fee or a fee for each mortgage purchased 
or securitized), and shall make a recommendation of the 
best such method for assessing such charge. Not later 
than 12 months after the date of the enactment of this 
Act, the Comptroller General shall submit to the Congress 
a report setting forth the determinations and conclusions 
of such study. 
SEC. 505. REQUIREMENT TO PERIODICALLY RENEW CHAR-
TER UNTIL WIND DOWN AND DISSOLUTION. 
(a) REQUIRED RENEWAL; WIND DOWN AND DIS-
SOLUTION UPON NON-RENEWAL.—Upon the expiration of 
the 3-year period that begins upon the expiration of the 
period referred to in section 503(b), unless the charter of 
an enterprise is renewed pursuant to subsection (b) of this 
section, section 506 (relating to wind down of operations 
and dissolution of enterprise) shall apply to the enterprise. 
(b) RENEWAL PROCEDURE.— 
(1) APPLICATION; TIMING.—The Director shall 
provide for each enterprise to apply to the Director, 
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before the expiration of the 3-year period under sub-
section (a), for renewal of the charter of the enter-
prise. 
(2) STANDARD.—The Director shall approve 
the application of an enterprise for the renewal of 
the charter of the enterprise if— 
(A) the application includes a certification 
by the enterprise that the enterprise is finan-
cially sound and is complying with all provisions 
of, and amendments made by, section 504 of 
this title applicable to such enterprise; and 
(B) the Director verifies that the certifi-
cation made pursuant to subparagraph (A) is 
accurate. 
(c) OPTION TO REAPPLY.—Nothing in this section 
may be construed to require an enterprise to apply under 
this section for renewal of the charter of the enterprise. 
SEC. 506. REQUIRED WIND DOWN OF OPERATIONS AND DIS-
SOLUTION OF ENTERPRISE. 
(a) APPLICABILITY.—This section shall apply to an 
enterprise— 
(1) upon the expiration of the 3-year period re-
ferred to in such section 505(a), to the extent pro-
vided in such section; and 
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(2) if this section has not previously applied to 
the enterprise, upon the expiration of the 6-year pe-
riod that begins upon the expiration of the period re-
ferred to in section 503(b). 
(b) WIND DOWN.—Upon the applicability of this sec-
tion to an enterprise, the Director and the Secretary of 
the Treasury shall jointly take such action, and may pre-
scribe such regulations and procedures, as may be nec-
essary to wind down the operations of an enterprise as 
an entity chartered by the United States Government over 
the duration of the 10-year period beginning upon the ap-
plicability of this section to the enterprise (pursuant to 
subsection (a)) in an orderly manner consistent with this 
title and the ongoing obligations of the enterprise. 
(c) DIVISION OF ASSETS AND LIABILITIES; AUTHOR-
ITY TO ESTABLISH HOLDING CORPORATION AND DIS-
SOLUTION TRUST FUND.—The action and procedures re-
quired under subsection (b)— 
(1) shall include the establishment and execu-
tion of plans to provide for an equitable division and 
distribution of assets and liabilities of the enterprise, 
including any liability of the enterprise to the United 
States Government or a Federal reserve bank that 
may continue after the end of the period described 
in subsection (b); and 
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(2) may provide for establishment of— 
(A) a holding corporation organized under 
the laws of any State of the United States or 
the District of Columbia for the purposes of the 
reorganization and restructuring of the enter-
prise; and 
(B) one or more trusts to which to trans-
fer— 
(i) remaining debt obligations of the 
enterprise, for the benefit of holders of 
such remaining obligations; or 
(ii) remaining mortgages held for the 
purpose of backing mortgage-backed secu-
rities, for the benefit of holders of such re-
maining securities. 
(d) REPEAL OF CHARTER.—Effective upon the expi-
ration of the 10-year period referred to in subsection (b) 
for an enterprise, the charter for the enterprise is re-
pealed, except that the provisions of such charter in effect 
immediately before such repeal shall continue to apply 
with respect to the rights and obligations of any holders 
of outstanding debt obligations and mortgage-backed secu-
rities of the enterprise. 
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TITLE VI—CREDIT RATING 
AGENCY REFORM 
SEC. 601. CLARIFICATION OF DESIGNATION. 
(a) IN GENERAL.— 
(1) SINGULAR.—Each applicable law is amend-
ed by striking ‘‘nationally recognized statistical rat-
ing organization’’ each place it appears and inserting 
‘‘nationally registered statistical rating organiza-
tion’’. 
(2) PLURAL.—Each applicable law is amended 
by striking ‘‘nationally recognized statistical rating 
organizations’’ each place it appears and inserting 
‘‘nationally registered statistical rating organiza-
tions’’. 
(b) APPLICABLE LAWS.—For purposes of this sec-
tion, the term ‘‘applicable laws’’ means— 
(1) the Securities Exchange Act of 1934; and 
(2) the Investment Advisers Act of 1940. 
SEC. 602. ELIMINATION OF SECURITY CREDIT RATING RE-
QUIREMENTS IN FEDERAL LAW. 
(a) SECURITIES EXCHANGE ACT OF 1934.—The Se-
curities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
is amended— 
(1) in section 3(a)(41), by striking ‘‘is rated in 
one of the two highest rating categories by at least 
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one nationally recognized statistical rating organiza-
tion, and’’; and 
(2) in section 3(a)(53)(A), by striking ‘‘is rated 
in 1 of the 4 highest rating categories by at least 1 
nationally recognized statistical rating organization, 
and’’. 
(b) INVESTMENT COMPANY ACT OF 1940.—Section 
6(a)(5)(A) of the Investment Company Act of 1940 (15 
U.S.C. 80a–6(a)(5)(A)) is amended— 
(1) in clause (ii), by adding ‘‘and’’ at the end; 
(2) in clause (iii), by striking ‘‘; and’’ and in-
serting a period; and 
(3) by striking clause (iv). 
(c) HIGHER EDUCATION ACT OF 1965.—Section 439 
of the Higher Education Act of 1965 (20 U.S.C. 1087– 
2) is amended— 
(1) by striking subsection (d)(5); and 
(2) in subsection (r), by striking paragraph 
(11) and inserting the following: 
‘‘(11) [Repealed]’’. 
(d) LAUNCHING OUR COMMUNITIES’ ACCESS
TO 
LOCAL
TELEVISION
ACT
OF
2000.—Section 
1004(d)(2)(D) of the Launching Our Communities’ Ac-
cess to Local Television Act of 2000 (47 U.S.C. 
1103(d)(2)(D)) is amended— 
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(1) in clause (i)(II), by striking ‘‘, if the Board 
determines that such nonprofit corporation has one 
or more issues of outstanding long-term debt that is 
rated within the highest three rating categories of a 
nationally recognized statistical rating organization’’; 
and 
(2) by striking clause (ii) (and redesignating 
succeeding clauses accordingly). 
(e) EMPLOYEE RETIREMENT INCOME SECURITY ACT 
OF 1974.—Section 4041(b)(5)(B) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 
1341(b)(5)(B)) is amended to read as follows: 
‘‘(B) 
LIMITATION.—Subparagraph 
(A) 
shall not apply to any transaction or series of 
transactions unless the employer maintaining 
the plan after the transaction or series of trans-
actions employs at least 20 percent of the em-
ployees located in the United States who were 
employed by such employer immediately before 
the transaction or series of transactions.’’. 
(f) CHAPTER 6 OF TITLE 23.—Chapter 6 of title 23, 
United States Code, is amended— 
(1) in section 601(a), by striking paragraph (3) 
and paragraph (10) and redesignating succeeding 
paragraphs accordingly; 
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(2) in section 602(b)(2), by amending subpara-
graph (B) to read as follows: 
‘‘(B) [Repealed]’’; 
(3) in section 603(a)(3)— 
(A) by striking ‘‘and each rating agency 
providing a preliminary rating opinion letter 
under section 602 (b)(2)(B)’’; and 
(B) by striking ‘‘, taking into account such 
letter’’; 
(4) in section 603(a), by striking paragraph 
(4); 
(5) in section 603(b)(2), by striking ‘‘ or, if the 
secured loan does not receive an investment grade 
rating, the amount of the senior project obligations’’; 
(6) in section 604(a)(3)— 
(A) by striking ‘‘and each rating agency 
providing a preliminary rating opinion letter 
under section 602 (b)(2)(B)’’; and 
(B) by striking ‘‘, taking into account such 
letter’’; 
(7) in section 604(a), by striking paragraph 
(4); and 
(8) by striking section 604(a)(4). 
(g) FEDERAL HOUSING ENTERPRISES FINANCIAL 
SAFETY AND SOUNDNESS ACT OF 1992.—Section 1319 
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of the Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4519) is amended by 
striking ‘‘that is a nationally recognized statistical rating 
organization, as such term is defined in section 3(a) of 
the Securities Exchange Act of 1934,’’. 
(h) REVISED STATUTES.—Section 5136A of title 
LXII of the Revised Statutes of the United States is 
amended— 
(1) in subsection (a)(2)(E), by striking ‘‘appli-
cable rating or other’’; 
(2) in the heading for subsection (a)(3) by 
striking ‘‘Rating or comparable requirement’’ and 
inserting ‘‘Requirement’’; 
(3) by amending subsection (a)(3)(A) to read as 
follows: 
‘‘(A) IN GENERAL.—A national bank meets 
the requirements of this paragraph if the bank 
is 1 of the second 50 largest insured banks and 
meets such criteria as the Secretary of the 
Treasury and the Board of Governors of the 
Federal Reserve System may jointly establish 
by regulation.’’; 
(4) in the heading for subsection (f), by striking 
‘‘maintain public rating or’’; and 
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(5) in subsection (f)(1), by striking ‘‘applicable 
rating or other’’. 
(i) FEDERAL DEPOSIT INSURANCE ACT.—Section 28 
of the Federal Deposit Insurance Act (12 U.S.C. 1831e) 
is amended by striking subsections (d) and (e) (and redes-
ignating succeeding subsections accordingly). 
SEC. 603. ELIMINATION OF SECURITY CREDIT RATING RE-
QUIREMENTS IN REGULATIONS. 
Not later than 3 months after the date of the enact-
ment of this Act, each Federal agency and department 
shall modify any regulation promulgated by such agency 
or department that requires the use of an assessment of 
the creditworthiness of a security or money market instru-
ment by removing such requirement from any such regula-
tion. 
TITLE VII—ANTI-FRAUD 
PROVISIONS 
SEC. 701. AUTHORITY TO IMPOSE CIVIL PENALTIES IN 
CEASE AND DESIST PROCEEDINGS. 
(a) UNDER THE SECURITIES ACT OF 1933.—Section 
8A of the Securities Act of 1933 (15 U.S.C. 77h–1) is 
amended by adding at the end the following new sub-
section: 
‘‘(g) AUTHORITY TO IMPOSE MONEY PENALTIES.— 
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‘‘(1) GROUNDS FOR IMPOSING.—In any cease- 
and-desist proceeding under subsection (a), the 
Commission may impose a civil penalty on a person 
if it finds, on the record after notice and opportunity 
for hearing, that— 
‘‘(A) such person— 
‘‘(i) is violating or has violated any 
provision of this title, or any rule or regu-
lation thereunder; or 
‘‘(ii) is or was a cause of the violation 
of any provision of this title, or any rule or 
regulation thereunder; and 
‘‘(B) such penalty is in the public interest. 
‘‘(2) MAXIMUM AMOUNT OF PENALTY.— 
‘‘(A) FIRST TIER.—The maximum amount 
of penalty for each act or omission described in 
paragraph (1) shall be $6,500 for a natural 
person or $65,000 for any other person. 
‘‘(B) 
SECOND
TIER.—Notwithstanding 
paragraph (A), the maximum amount of pen-
alty for each such act or omission shall be 
$65,000 for a natural person or $325,000 for 
any other person if the act or omission de-
scribed in paragraph (1) involved fraud, deceit, 
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manipulation, or deliberate or reckless dis-
regard of a regulatory requirement. 
‘‘(C) THIRD TIER.—Notwithstanding para-
graphs (A) and (B), the maximum amount of 
penalty for each such act or omission shall be 
$130,000 for a natural person or $650,000 for 
any other person if— 
‘‘(i) the act or omission described in 
paragraph (1) involved fraud, deceit, ma-
nipulation, or deliberate or reckless dis-
regard of a regulatory requirement; and 
‘‘(ii) such act or omission directly or 
indirectly resulted in substantial losses or 
created a significant risk of substantial 
losses to other persons or resulted in sub-
stantial pecuniary gain to the person who 
committed the act or omission. 
‘‘(3) EVIDENCE
CONCERNING
ABILITY
TO 
PAY.—In any proceeding in which the Commission 
may impose a penalty under this section, a respond-
ent may present evidence of the respondent’s ability 
to pay such penalty. The Commission may, in its 
discretion, consider such evidence in determining 
whether such penalty is in the public interest. Such 
evidence may relate to the extent of such person’s 
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ability to continue in business and the collectability 
of a penalty, taking into account any other claims of 
the United States or third parties upon such per-
son’s assets and the amount of such person’s as-
sets.’’. 
(b) UNDER THE SECURITIES EXCHANGE ACT OF 
1934.—Subsection (a) of section 21B of the Securities 
Exchange Act of 1934 (15 U.S.C. 78u–2(a)) is amend-
ed— 
(1) by striking ‘‘(a) COMMISSION AUTHORITY 
TO
ASSESS
MONEY
PENALTIES.—In any pro-
ceeding’’ and inserting the following: 
‘‘(a) COMMISSION AUTHORITY TO ASSESS MONEY 
PENALTIES.— 
‘‘(1) IN GENERAL.—In any proceeding’’; 
(2) by redesignating paragraphs (1) through 
(4) of such subsection as subparagraphs (A) through 
(D), respectively and moving such redesignated sub-
paragraphs and the matter following such subpara-
graphs 2 ems to the right; and 
(3) by adding at the end of such subsection the 
following new paragraph: 
‘‘(2) 
CEASE-AND-DESIST
PROCEEDINGS.—In 
any proceeding instituted pursuant to section 21C of 
this title against any person, the Commission may 
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impose a civil penalty if it finds, on the record after 
notice and opportunity for hearing, that such per-
son— 
‘‘(A) is violating or has violated any provi-
sion of this title, or any rule or regulation 
thereunder; or 
‘‘(B) is or was a cause of the violation of 
any provision of this title, or any rule or regula-
tion thereunder.’’. 
(c) UNDER
THE INVESTMENT COMPANY ACT
OF 
1940.—Paragraph (1) of section 9(d) of the Investment 
Company Act of 1940 (15 U.S.C. 80a–9(d)(1)) is amend-
ed— 
(1) by striking ‘‘(1) AUTHORITY OF COMMIS-
SION.—In any proceeding’’ and inserting the fol-
lowing: 
‘‘(1) AUTHORITY OF COMMISSION.— 
‘‘(A) IN GENERAL.—In any proceeding’’; 
(2) by redesignating subparagraphs (A) through 
(C) of such paragraph as clauses (i) through (iii), 
respectively and by moving such redesignated clauses 
and the matter following such subparagraphs 2 ems 
to the right; and 
(3) by adding at the end of such paragraph the 
following new subparagraph: 
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‘‘(B) CEASE-AND-DESIST PROCEEDINGS.— 
In any proceeding instituted pursuant to sub-
section (f) against any person, the Commission 
may impose a civil penalty if it finds, on the 
record after notice and opportunity for hearing, 
that such person— 
‘‘(i) is violating or has violated any 
provision of this title, or any rule or regu-
lation thereunder; or 
‘‘(ii) is or was a cause of the violation 
of any provision of this title, or any rule or 
regulation thereunder.’’. 
(d) UNDER THE INVESTMENT ADVISERS ACT OF 
1940.—Paragraph (1) of section 203(i) of the Investment 
Advisers Act of 1940 (15 U.S.C. 80b–3(i)(1)) is amend-
ed— 
(1) by striking ‘‘(1) AUTHORITY OF COMMIS-
SION.—In any proceeding’’ and inserting the fol-
lowing: 
‘‘(1) AUTHORITY OF COMMISSION.— 
‘‘(A) IN GENERAL.—In any proceeding’’; 
(2) by redesignating subparagraphs (A) through 
(D) of such paragraph as clauses (i) through (iv), 
respectively and moving such redesignated clauses 
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and the matter following such subparagraphs 2 ems 
to the right; and 
(3) by adding at the end of such paragraph the 
following new subparagraph: 
‘‘(B) CEASE-AND-DESIST PROCEEDINGS.— 
In any proceeding instituted pursuant to sub-
section (k) against any person, the Commission 
may impose a civil penalty if it finds, on the 
record after notice and opportunity for hearing, 
that such person— 
‘‘(i) is violating or has violated any 
provision of this title, or any rule or regu-
lation thereunder; or 
‘‘(ii) is or was a cause of the violation 
of any provision of this title, or any rule or 
regulation thereunder.’’. 
SEC. 702. FORMERLY ASSOCIATED PERSONS. 
(a) MEMBER OR EMPLOYEE OF THE MUNICIPAL SE-
CURITIES RULEMAKING BOARD.—Section 15B(c)(8) of 
the Securities Exchange Act of 1934 (15 U.S.C. 78o– 
4(c)(8)) is amended by striking ‘‘any member or em-
ployee’’ and inserting ‘‘any person who is, or at the time 
of the alleged misconduct was, a member or employee’’. 
(b) PERSON ASSOCIATED WITH A GOVERNMENT SE-
CURITIES BROKER OR DEALER.—Section 15C of the Se-
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curities Exchange Act of 1934 (15 U.S.C. 78o–5) is 
amended— 
(1) in subsection (c)(1)(C), by striking ‘‘or 
seeking to become associated,’’ and inserting ‘‘seek-
ing to become associated, or, at the time of the al-
leged misconduct, associated or seeking to become 
associated’’; 
(2) in subsection (c)(2)(A), by inserting ‘‘, seek-
ing to become associated, or, at the time of the al-
leged misconduct, associated or seeking to become 
associated’’ after ‘‘any person associated’’; and 
(3) in subsection (c)(2)(B), by inserting ‘‘, 
seeking to become associated, or, at the time of the 
alleged misconduct, associated or seeking to become 
associated’’ after ‘‘any person associated’’. 
(c) PERSON ASSOCIATED WITH A MEMBER OF A NA-
TIONAL SECURITIES EXCHANGE OR REGISTERED SECURI-
TIES ASSOCIATION.—Section 21(a)(1) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78u(a)(1)) is amended 
by inserting ‘‘, or, as to any act or practice, or omission 
to act, while associated with a member, formerly associ-
ated’’ after ‘‘member or a person associated’’. 
(d) PARTICIPANT
OF
A REGISTERED CLEARING 
AGENCY.—Section 21(a)(1) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78u(a)(1)) is amended by insert-
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ing ‘‘or, as to any act or practice, or omission to act, while 
a participant, was a participant,’’ after ‘‘in which such 
person is a participant,’’. 
(e) OFFICER OR DIRECTOR OF A SELF-REGULATORY 
ORGANIZATION.—Section 19(h)(4) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78s(h)(4)) is amended— 
(1) by striking ‘‘any officer or director’’ and in-
serting ‘‘any person who is, or at the time of the al-
leged misconduct was, an officer or director’’; and 
(2) by striking ‘‘such officer or director’’ and 
inserting ‘‘such person’’. 
(f) OFFICER OR DIRECTOR OF AN INVESTMENT COM-
PANY.—Section 36(a) of the Investment Company Act of 
1940 (15 U.S.C. 80a–35(a)) is amended— 
(1) by striking ‘‘a person serving or acting’’ and 
inserting ‘‘a person who is, or at the time of the al-
leged misconduct was, serving or acting’’; and 
(2) by striking ‘‘such person so serves or acts’’ 
and inserting ‘‘such person so serves or acts, or at 
the time of the alleged misconduct, so served or 
acted’’. 
SEC. 703. COLLATERAL BARS. 
(a) SECTION 15(b)(6)(A) OF THE SECURITIES EX-
CHANGE ACT OF 1934.—Section 15(b)(6)(A) of the Secu-
rities Exchange Act of 1934 (15 U.S.C. 78o(b)(6)(A)) is 
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amended by striking ‘‘12 months, or bar such person from 
being associated with a broker or dealer,’’ and inserting 
‘‘12 months, or bar any such person from being associated 
with a broker, dealer, investment adviser, municipal secu-
rities dealer, or transfer agent,’’. 
(b) SECTION 15B(c)(4) OF THE SECURITIES EX-
CHANGE ACT OF 1934.—Section 15B(c)(4) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78o–4(c)(4)) is 
amended by striking ‘‘twelve months or bar any such per-
son from being associated with a municipal securities deal-
er,’’ and inserting ‘‘twelve months or bar any such person 
from being associated with a broker, dealer, investment 
adviser, municipal securities dealer, or transfer agent,’’. 
(c) SECTION 17A(c)(4)(C) OF THE SECURITIES EX-
CHANGE ACT OF 1934.—Section 17A(c)(4)(C) of the Se-
curities Exchange Act of 1934 (15 U.S.C. 78q–1(c)(4)(C)) 
is amended by striking ‘‘twelve months or bar any such 
person from being associated with the transfer agent,’’ 
and inserting ‘‘twelve months or bar any such person from 
being associated with any transfer agent, broker, dealer, 
investment adviser, or municipal securities dealer,’’. 
(d) SECTION 203(f) OF THE INVESTMENT ADVISERS 
ACT OF 1940.—Section 203(f) of the Investment Advisers 
Act of 1940 (15 U.S.C. 80b–3(f)) is amended by striking 
‘‘twelve months or bar any such person from being associ-
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ated with an investment adviser,’’ and inserting ‘‘twelve 
months or bar any such person from being associated with 
an investment adviser, broker, dealer, municipal securities 
dealer, or transfer agent,’’. 
SEC. 704. UNLAWFUL MARGIN LENDING. 
Section 7(c)(1)(A) of the Securities Exchange Act of 
1934 (15 U.S.C. 78g(c)(1)(A)) is amended by striking ‘‘; 
and’’ and inserting ‘‘; or’’. 
SEC. 705. NATIONWIDE SERVICE OF SUBPOENAS. 
(a) SECURITIES ACT OF 1933.—Section 22(a) of the 
Securities Act of 1933 (15 U.S.C. 77v(a)) is amended by 
inserting after the second sentence the following: ‘‘In any 
action or proceeding instituted by the Commission under 
this title in a United States district court for any judicial 
district, subpoenas issued by or on behalf of such court 
to compel the attendance of witnesses or the production 
of documents or tangible things (or both) may be served 
in any other district. Such subpoenas may be served and 
enforced without application to the court or a showing of 
cause, notwithstanding the provisions of rule 45(b)(2), 
(c)(3)(A)(ii), and (c)(3)(B)(iii) of the Federal Rules of 
Civil Procedure.’’. 
(b) SECURITIES EXCHANGE ACT OF 1934.—Section 
27 of the Securities Exchange Act of 1934 (15 U.S.C. 
78aa) is amended by inserting after the third sentence the 
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following: ‘‘In any action or proceeding instituted by the 
Commission under this title in a United States district 
court for any judicial district, subpoenas issued by or on 
behalf of such court to compel the attendance of witnesses 
or the production of documents or tangible things (or 
both) may be served in any other district. Such subpoenas 
may be served and enforced without application to the 
court or a showing of cause, notwithstanding the provi-
sions of rule 45(b)(2), (c)(3)(A)(ii), and (c)(3)(B)(iii) of 
the Federal Rules of Civil Procedure.’’. 
(c) INVESTMENT COMPANY ACT OF 1940.—Section 
44 of the Investment Company Act of 1940 (15 U.S.C. 
80a–43) is amended by inserting after the fourth sentence 
the following: ‘‘In any action or proceeding instituted by 
the Commission under this title in a United States district 
court for any judicial district, subpoenas issued by or on 
behalf of such court to compel the attendance of witnesses 
or the production of documents or tangible things (or 
both) may be served in any other district. Such subpoenas 
may be served and enforced without application to the 
court or a showing of cause, notwithstanding the provi-
sions of rule 45(b)(2), (c)(3)(A)(ii), and (c)(3)(B)(iii) of 
the Federal Rules of Civil Procedure.’’. 
(d) INVESTMENT ADVISERS ACT OF 1940.—Section 
214 of the Investment Advisers Act of 1940 (15 U.S.C. 
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80b–14) is amended by inserting after the third sentence 
the following: ‘‘In any action or proceeding instituted by 
the Commission under this title in a United States district 
court for any judicial district, subpoenas issued by or on 
behalf of such court to compel the attendance of witnesses 
or the production of documents or tangible things (or 
both) may be served in any other district. Such subpoenas 
may be served and enforced without application to the 
court or a showing of cause, notwithstanding the provi-
sions of rule 45(b)(2), (c)(3)(A)(ii), and (c)(3)(B)(iii) of 
the Federal Rules of Civil Procedure.’’. 
SEC. 706. REAUTHORIZATION OF THE FINANCIAL CRIMES 
ENFORCEMENT NETWORK. 
(a) FINDINGS.— 
(1) The Congress finds as follows: 
(A) The work of the Financial Crimes En-
forcement Network (hereinafter in this section 
referred to as ‘‘FinCEN’’) is essential to safe-
guard the United States financial system and 
its international affiliates from the abuses of fi-
nancial crime, including terrorist financing, 
weapons of mass destruction proliferation, and 
money laundering. 
(B) All avenues of financial intermediation 
are vulnerable to abuse by illicit actors, and 
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FinCEN exercises the authorities of the Bank 
Secrecy Act over a broad range of financial in-
stitutions. 
(2) The Congress further finds and recognizes 
the recent establishment by FinCEN of an Inter-
national Programs Division to expand and enhance 
global financial intelligence sharing initiatives aimed 
at combating transnational crime threats facing 
United States financial markets, and takes note of 
FinCEN’s efforts to collaborate with foreign finan-
cial intelligence unit partners on analytical projects 
to identify and address emerging threats and 
vulnerabilities. 
(3) The Congress further finds and recognizes 
the role of FinCEN in discovering and investigating 
widespread fraud in the mortgage market and else-
where in the financial services industry. Alongside 
an effective licensing and registration system for all 
mortgage originators, a vigilant FinCEN is critical 
to the recovery of our housing markets and con-
sumer confidence in both the home buying process 
and the financial services industry as a whole. 
(b) REAUTHORIZATION.—Section 310(d)(1) of title 
31, United States Code, is amended by striking ‘‘such 
sums as may be necessary for fiscal years 2002, 2003, 
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2004, and 2005’’ and inserting ‘‘not more than 
$105,500,000 for fiscal year 2010, and such sums as may 
be necessary for fiscal years 2011, 2012, 2013, and 
2014’’. 
(c) ADDITIONAL FINANCIAL FRAUD AUTHORIZATION 
OF APPROPRIATIONS.—In addition to such other amounts 
otherwise made available or appropriated to FinCEN, 
there are authorized to be appropriated to FinCEN 
$15,000,000 to be used specifically for efforts to detect 
financial fraud. Such sums are authorized to remain avail-
able until expended. 
SEC. 707. FAIR FUND IMPROVEMENTS. 
(a) AMENDMENT.—Subsection (a) of section 308 of 
the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7246(a)) is 
amended to read as follows: 
‘‘(a) CIVIL PENALTIES TO BE USED FOR THE RE-
LIEF OF VICTIMS.—If in any judicial or administrative ac-
tion brought by the Commission under the securities laws 
(as such term is defined in section 3(a)(47) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78c(a)(47)), the 
Commission obtains a civil penalty against any person for 
a violation of such laws, the amount of such civil penalty 
shall, on the motion or at the direction of the Commission, 
be added to and become part of a disgorgement fund or 
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other fund established for the benefit of the victims of 
such violation.’’. 
(b) CONFORMING AMENDMENTS.—Section 308 of 
such Act is amended— 
(1) in subsection (b)— 
(A) by striking ‘‘for a disgorgement fund 
described in subsection (a)’’ and inserting ‘‘for 
a disgorgement fund or other fund described in 
subsection (a)’’; and 
(B) by striking ‘‘in the disgorgement fund’’ 
and inserting ‘‘in such fund’’; and 
(2) by striking subsection (e). 
SEC. 708. AUTHORITY TO CONTRACT FOR COLLECTION OF 
DELINQUENT JUDGMENTS AND ORDERS. 
Subsection (b) of section 4 of the Securities Exchange 
Act of 1934 (15 U.S.C. 78d(b)) is amended— 
(1) in the heading of such subsection, by strik-
ing ‘‘AND LEASING AUTHORITY’’ and inserting ‘‘, 
LEASING AUTHORITY, AND CONTRACTING AUTHOR-
ITY’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(4) CONTRACTING AUTHORITY.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of law, the Commission is au-
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thorized to enter into contracts to assist in the 
collection of any claim of indebtedness resulting 
from any judgment or order (either by litigation 
or settlement) obtained by the Commission in 
any judicial action or administrative proceeding 
brought by or on behalf of the Commission. 
This authority includes, but is not limited to, 
the retention of private legal counsel to furnish 
legal services, including representation in litiga-
tion, negotiation, compromise, and settlement. 
Private counsel retained under this paragraph 
may represent the Commission in such debt col-
lection matters to the same extent as the Com-
mission may represent itself. 
‘‘(B) TERMS
AND
CONDITIONS
OF
CON-
TRACT.—Each such contract shall include such 
terms and conditions as the Commission con-
siders necessary and appropriate, and shall in-
clude provisions specifying— 
‘‘(i) the amount of the fee to be paid 
under such contract or the method for cal-
culating that fee; 
‘‘(ii) that the Commission retains the 
authority to represent itself, resolve a dis-
pute, compromise a claim, end collection 
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100 
efforts, and refer a matter to other counsel 
or to the Attorney General; and 
‘‘(iii) that the Commission may termi-
nate either the contract or the private 
counsel’s representation of the Commission 
in particular cases for any reason, includ-
ing for the convenience of the Commission. 
‘‘(C) 
PAYMENT
OF
FEES.—Notwith-
standing section 3302(b) of title 31, United 
States Code, a contract under this paragraph 
may provide that fees and costs incurred by pri-
vate counsel under such contracts are payable 
from the amounts recovered. 
‘‘(D) COMPETITION
REQUIRED.—Nothing 
in this paragraph shall relieve the Commission 
of the competition requirements set forth in 
title III of the Federal Property and Adminis-
trative Services Act of 1949 (41 U.S.C. 251 et 
seq.). 
‘‘(E) COUNTERCLAIMS.—In any action to 
recover indebtedness which is brought on behalf 
of the Commission by private counsel retained 
under this paragraph, no counterclaim may be 
asserted against the Commission unless the 
counterclaim is served directly on the Commis-
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101 
sion. Such service shall be made in accordance 
with the rules of procedure of the court in 
which the action is brought.’’. 
Æ 
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