‘‘(2) TERM.— 
‘‘(A) IN GENERAL.—Each appeals official 
appointed under paragraph (1) shall serve for a 
term of 3 years. 
‘‘(B) TERM
LIMITATION.—No individual 
may be appointed under paragraph (1) to serve 
more than 2 full terms. 
‘‘(C) DISMISSAL.—An appeals official ap-
pointed under paragraph (1) may be removed 
at any time by the appointing agency. 
‘‘(h) APPEALS PROCESS AND PANEL HEARING OF 
MATERIAL SUPERVISORY DETERMINATIONS.— 
‘‘(1) APPEAL TO THE HEAD OF SUPERVISION.— 
‘‘(A) IN GENERAL.—An institution seeking 
an appeal of a material supervisory determina-
tion shall— 
‘‘(i) file a written appeal to the head 
of supervision for the agency not later than 
30 days after receiving the material super-
visory determination from the agency; and 
‘‘(ii) include in the appeal— 
‘‘(I) a clear and complete state-
ment of all relevant facts and issues; 
‘‘(II) all arguments that the in-
stitution wishes to present; and 
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‘‘(III) all relevant and material 
documents that the institution wishes 
to be considered. 
‘‘(B) EXTENSION.—The institution may 
file a written request with the head of super-
vision for an extension of the 30-day time pe-
riod described under subparagraph (A)(i), 
which shall state good cause for granting the 
extension. Such request shall be granted in the 
sole discretion of the head of supervision. 
‘‘(C) INFORMATION MADE AVAILABLE TO 
INSTITUTION.—An institution seeking an ap-
peal of a material supervisory determination 
may, not later than 7 days after receiving the 
material supervisory determination, request that 
the agency provide the institution with any in-
formation relied upon by the agency in making 
the material supervisory determination. The 
agency shall provide that information to the in-
stitution not later than 14 days after receiving 
the request. 
‘‘(2) CONSIDERATION OF APPEAL BY THE HEAD 
OF SUPERVISION.— 
‘‘(A) IN GENERAL.—A head of supervision 
receiving an appeal under paragraph (1) shall, 
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after reviewing the information provided by the 
institution in such appeal— 
‘‘(i) grant the appeal; 
‘‘(ii) refer the appeal to a panel ap-
pointed under paragraph (3); or 
‘‘(iii) deny the appeal. 
‘‘(B) NOTIFICATION.—A head of super-
vision shall promptly inform the institution and 
the head of the agency after granting, referring, 
or denying an appeal under subparagraph (A). 
‘‘(C) RIGHT TO APPEAL DENIAL.—An in-
stitution that has an appeal denied by the head 
of supervision under subparagraph (A) may ap-
peal such denial to a panel appointed under 
paragraph (3). 
‘‘(3) APPOINTMENT OF PANEL.— 
‘‘(A) IN GENERAL.—With respect to each 
appeal referred by a head of supervision under 
paragraph (2)(A)(ii) or appealed by an institu-
tion after a denial under paragraph (2)(A)(iii), 
the agency shall appoint a panel of 3 appeals 
officials to provide a recommendation on such 
appeal, with 1 of the 3 appeals officials being 
appointed to the panel from individuals in each 
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of the classes described under subparagraphs 
(A), (B), and (C) of subsection (g)(1). 
‘‘(B) REPORTING
PROHIBITION.—An ap-
peals official may not be appointed to a panel 
under subparagraph (A) if the appeals official 
is reporting, or has reported, directly or indi-
rectly, to the agency official who made the ma-
terial supervisory determination under review. 
‘‘(4) PANEL HEARINGS.— 
‘‘(A) REQUEST FOR HEARING.—An institu-
tion may request a hearing with the panel on 
the institution’s appeal by— 
‘‘(i) making such request not later 
than 7 days after the date on which the in-
stitution is informed the head of super-
vision referred an appeal to a panel under 
paragraph (2); or 
‘‘(ii) making such request in the insti-
tution’s appeal of a denial of the institu-
tion’s appeal under paragraph (2). 
‘‘(B) TIMING OF HEARING.—If an institu-
tion requests a hearing, as described under sub-
paragraph (A), the panel shall provide the insti-
tution with a hearing on the institution’s appeal 
not later than 30 days after the date the hear-
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ing is requested, except the panel may, in the 
discretion of the panel or upon good cause 
shown, extend such deadline by up to 15 days. 
‘‘(C) RULEMAKING.—The Federal banking 
agencies and the National Credit Union Admin-
istration shall each issue rules to establish pro-
cedures for panel hearings described under this 
paragraph, including that— 
‘‘(i) the institution may appear at the 
hearing personally or through counsel; 
‘‘(ii) the institution may provide an 
oral and written presentation at the hear-
ing; 
‘‘(iii) the panel may ask questions of 
any person participating in the hearing; 
‘‘(iv) the hearing may not involve— 
‘‘(I) taking testimony; 
‘‘(II) a cross-examination; and 
‘‘(III) discovery; 
‘‘(v) the hearing shall not governed by 
formal rules of evidence; and 
‘‘(vi) the panel shall have a verbatim 
transcript of the hearing prepared. 
‘‘(5) RECOMMENDATION BY PANEL.— 
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‘‘(A) IN GENERAL.—A panel making a rec-
ommendation on an appeal under this sub-
section shall make the recommendation not 
later than— 
‘‘(i) 90 days after the date on which 
the appeal was referred by a head of su-
pervision under paragraph (2)(A)(ii) or ap-
pealed by an institution after a denial 
under paragraph (2)(A); or 
‘‘(ii) if the institution requested a 
hearing under paragraph (4), 60 days after 
the date on which the hearing concluded. 
‘‘(B) FORM
OF
RECOMMENDATION.—The 
panel may recommend— 
‘‘(i) that the material supervisory de-
termination be continued, terminated, or 
otherwise modified; or 
‘‘(ii) that the material supervisory de-
termination be remanded to the examiners 
to allow the examiners to consider addi-
tional information presented in connection 
with the appeal. 
‘‘(C) NOTICE.—After a recommendation is 
made under subparagraph (A), the panel shall 
promptly notify the institution, the head of su-
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pervision of the agency, and the head of the 
agency of the recommendation, which shall con-
tain a statement of the basis for the panel’s 
recommendation and identify the information 
on which the panel relied in reaching the rec-
ommendation. 
‘‘(D) PUBLICATION.—A copy of each panel 
recommendation shall be posted on the agency’s 
public website as soon as practicable, with ex-
empt information redacted. If the panel deter-
mines that redaction is insufficient to prevent 
improper disclosure, the recommendation may 
be presented in summary form. 
‘‘(E) STANDARD
OF
REVIEW.—A panel’s 
review of a material supervisory determination 
being appealed under this subsection shall be de 
novo. 
‘‘(F) NO AUTHORITY TO DELAY OR STAY 
ORDERS.—A panel shall have no authority to 
delay or stay the implementation of any formal 
order from the applicable agency. 
‘‘(6) REVIEW BY THE HEAD OF THE AGENCY.— 
‘‘(A) RESPONSE
BY
INSTITUTION.—Not 
later than 15 days after receiving a notice of a 
recommendation under paragraph (5)(C), the 
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institution may submit to the head of the agen-
cy written exceptions to the recommended deci-
sion. 
‘‘(B) REVIEW
BY
HEAD
OF
THE
AGEN-
CY.—Not later than 45 days after receiving a 
notice of a recommendation under paragraph 
(5)(C), the head of an agency shall review such 
decision and either ratify or reject the panel’s 
decision. 
‘‘(C) REVIEW MAY NOT BE DELEGATED.— 
A review by the head of an agency under this 
paragraph may not be delegated to any other 
employee of the agency and, in the case of an 
agency that is headed by a body made up of 
multiple individuals, all such individuals shall 
participate in the review. 
‘‘(D) REPORTS TO CONGRESS.—The Fed-
eral banking agencies and the National Credit 
Union Administration shall each, not later than 
90 days after the end of each calendar year, 
issue a report to the Committee on Financial 
Services of the House of Representatives and 
the Committee on Banking, Housing, and 
Urban Affairs of the Senate describing the ac-
tions taken by the agency under this paragraph 
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during such calendar year, including informa-
tion on each of the panel decisions reviewed, 
after redacting any confidential supervisory in-
formation. 
‘‘(E) PUBLICATION.—A copy of each deci-
sion by the head of the agency under this para-
graph shall be posted on the agency’s public 
website as soon as practicable, with exempt in-
formation redacted. If the head of the agency 
determinates that redaction is insufficient to 
prevent improper disclosure, the decision may 
be presented in summary form. 
‘‘(7) RIGHT TO JUDICIAL REVIEW.—An institu-
tion shall have the right to petition for review of an 
agency head’s decision under paragraph (6) by filing 
a petition for review not later than 60 days after the 
date on which the decision was made in the United 
States Court of Appeals for the District of Columbia 
Circuit or the circuit in which the institution is lo-
cated. 
‘‘(8) RETALIATION PROHIBITED.—The Federal 
banking agencies and the National Credit Union Ad-
ministration may not— 
‘‘(A) retaliate against an insured deposi-
tory institution or insured credit union, or a 
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service provider or institution-affiliated party of 
an insured depository institution or insured 
credit union, for exercising rights under this 
subsection; or 
‘‘(B) delay or deny any agency action that 
would benefit an insured depository institution 
or insured credit union, or a service provider or 
institution-affiliated party of an insured deposi-
tory institution or insured credit union, on the 
basis that a matter under this section is pend-
ing under this section. 
‘‘(9) DEFINITIONS.—With respect to the appeal 
of a material supervisory determination under this 
subsection: 
‘‘(A) AGENCY.—The term ‘agency’ means 
the Federal agency, either a Federal banking 
agency or the National Credit Union Adminis-
tration, that made the material supervisory de-
termination. 
‘‘(B) INSTITUTION.—The term ‘institution’ 
means the company, either an insured deposi-
tory institution or an insured credit union, with 
respect to which the material supervisory deter-
mination was made.’’. 
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SEC. 4. REVIEW OF RESOLUTION ACTIONS RESULTING IN A 
MATERIAL LOSS. 
Section 38(k) of the Federal Deposit Insurance Act 
(12 U.S.C. 1831o(k)) is amended by adding at the end 
the following: 
‘‘(7) REVIEW OF RESOLUTION ACTIONS BY COR-
PORATION INSPECTOR GENERAL.— 
‘‘(A) IN GENERAL.—If the Deposit Insur-
ance Fund incurs a material loss with respect 
to an insured depository institution, the inspec-
tor general of the Corporation shall— 
‘‘(i) review the Corporation’s resolu-
tion of the institution to determine whether 
the material loss to the Deposit Insurance 
Fund could have been avoided by the Cor-
poration when resolving the institution; 
and 
‘‘(ii) make a written report to the 
Corporation and the Congress containing 
the results of such review and any rec-
ommendations for preventing a material 
loss to the Deposit Insurance Fund in the 
future when resolving an institution. 
‘‘(B) TESTIMONY
TO
CONGRESS.—If the 
inspector general of the Corporation deter-
mines, in a review carried out under subpara-
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graph (A) that the Corporation’s resolution of 
an institution caused a material loss to the De-
posit Insurance Fund, but such resolution could 
have been carried out in a manner to avoid 
such a material loss, the Chairperson of the 
Corporation shall testify before the Committee 
on Financial Services of the House of Rep-
resentatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate to 
explain why the material loss occurred.’’. 
Æ 
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