IIB 
111TH CONGRESS 
2D SESSION 
H. R. 4173 
IN THE SENATE OF THE UNITED STATES 
JANUARY 20, 2010 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To provide for financial regulatory reform, to protect con-
sumers and investors, to enhance Federal understanding 
of insurance issues, to regulate the over-the-counter de-
rivatives markets, 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 ‘‘Wall Street Reform 
and Consumer Protection Act of 2009’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—FINANCIAL STABILITY IMPROVEMENT ACT 
Sec. 1000. Short title; definitions. 
Sec. 1000A. Restrictions on the Federal Reserve System pending audit report. 
Subtitle A—The Financial Services Oversight Council 
Sec. 1001. Financial Services Oversight Council established. 
Sec. 1002. Resolution of disputes among Federal financial regulatory agencies. 
Sec. 1003. Technical and professional advisory committees. 
Sec. 1004. Financial Services Oversight Council meetings and council govern-
ance. 
Sec. 1005. Council staff and funding. 
Sec. 1006. Reports to the Congress. 
Sec. 1007. Applicability of certain Federal laws. 
Sec. 1008. Oversight by GAO. 
Subtitle B—Prudential Regulation of Companies and Activities for Financial 
Stability Purposes 
Sec. 1100. Federal Reserve Board authority that of agent acting on behalf of 
Council. 
Sec. 1101. Council and Board authority to obtain information. 
Sec. 1102. Council prudential regulation recommendations to Federal financial 
regulatory agencies; agency authority. 
Sec. 1103. Subjecting financial companies to stricter prudential standards for 
financial stability purposes. 
Sec. 1104. Stricter prudential standards for certain financial holding companies 
for financial stability purposes. 
Sec. 1105. Mitigation of systemic risk. 
Sec. 1106. Subjecting activities or practices to stricter prudential standards for 
financial stability purposes. 
Sec. 1107. Stricter regulation of activities and practices for financial stability 
purposes. 
Sec. 1108. Effect of rescission of identification. 
Sec. 1109. Emergency financial stabilization. 
Sec. 1110. Additional related amendments. 
Sec. 1111. Corporation may receive warrants when paying or risking taxpayer 
funds. 
Sec. 1112. Examinations and enforcement actions for insurance and resolutions 
purposes. 
Sec. 1113. Study of the effects of size and complexity of financial institutions 
on capital market efficiency and economic growth. 
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Sec. 1114. Exercise of Federal Reserve authority. 
Sec. 1115. Stress tests. 
Sec. 1116. Contingent Capital. 
Sec. 1117. Restriction on proprietary trading by designated financial holding 
companies. 
Sec. 1118. Rule of construction. 
Sec. 1119. Antitrust savings clause. 
Subtitle C—Improvements to Supervision and Regulation of Federal 
Depository Institutions 
Sec. 1201. Definitions. 
Sec. 1202. Amendments to the Home Owners’ Loan Act relating to transfer of 
functions. 
Sec. 1203. Amendments to the revised statutes. 
Sec. 1204. Power and duties transferred. 
Sec. 1205. Transfer date. 
Sec. 1206. Expiration of term of comptroller. 
Sec. 1207. Office of Thrift Supervision abolished. 
Sec. 1208. Savings provisions. 
Sec. 1209. Regulations and orders. 
Sec. 1210. Coordination of transition activities. 
Sec. 1211. Interim responsibilities of office of the comptroller of the currency 
and office of thrift supervision. 
Sec. 1212. Employees transferred. 
Sec. 1213. Property transferred. 
Sec. 1214. Funds transferred. 
Sec. 1215. Disposition of affairs. 
Sec. 1216. Continuation of services. 
Sec. 1217. Contracting and leasing authority. 
Sec. 1218. Treatment of savings and loan holding companies. 
Sec. 1219. Practices of certain mutual thrift holding companies preserved. 
Sec. 1220. Implementation plan and reports. 
Sec. 1221. Composition of board of directors of the Federal Deposit Insurance 
Corporation. 
Sec. 1222. Amendments to section 3. 
Sec. 1223. Amendments to section 7. 
Sec. 1224. Amendments to section 8. 
Sec. 1225. Amendments to section 11. 
Sec. 1226. Amendments to section 13. 
Sec. 1227. Amendments to section 18. 
Sec. 1228. Amendments to section 28. 
Sec. 1229. Amendments to the Alternative Mortgage Transaction Parity Act of 
1982. 
Sec. 1230. Amendments to the Bank Holding Company Act of 1956. 
Sec. 1231. Amendments to the Bank Protection Act of 1968. 
Sec. 1232. Amendments to the Bank Service Company Act. 
Sec. 1233. Amendments to the Community Reinvestment Act of 1977. 
Sec. 1234. Amendments to the Depository Institution Management Interlocks 
Act. 
Sec. 1235. Amendments to the Emergency Homeowners’ Relief Act. 
Sec. 1236. Amendments to the Equal Credit Opportunity Act. 
Sec. 1237. Amendments to the Federal Credit Union Act. 
Sec. 1238. Amendments to the Federal Financial Institutions Examination 
Council Act of 1978. 
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Sec. 1239. Amendments to the Federal Home Loan Bank Act. 
Sec. 1240. Amendments to the Federal Reserve Act. 
Sec. 1241. Amendments to the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989. 
Sec. 1242. Amendments to the Housing Act of 1948. 
Sec. 1243. Amendments to the Housing and Community Development Act of 
1992 and the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992. 
Sec. 1244. Amendment to the Housing and Urban-Rural Recovery Act of 1983. 
Sec. 1245. Amendments to the National Housing Act. 
Sec. 1246. Amendments to the Right to Financial Privacy Act of 1978. 
Sec. 1247. Amendments to the Balanced Budget and Emergency Deficit Con-
trol Act of 1985. 
Sec. 1248. Amendments to the Crime Control Act of 1990. 
Sec. 1249. Amendment to the Flood Disaster Protection Act of 1973. 
Sec. 1250. Amendment to the Investment Company Act of 1940. 
Sec. 1251. Amendment to the Neighborhood Reinvestment Corporation Act. 
Sec. 1252. Amendments to the Securities Exchange Act of 1934. 
Sec. 1253. Amendments to title 18, United States Code. 
Sec. 1254. Amendments to title 31, United States Code. 
Sec. 1255. Requirement for Countercyclical Capital Requirements. 
Sec. 1256. Transfer of authority to the Board with respect to savings and loan 
holding companies. 
Sec. 1257. Effective date. 
Subtitle D—Further Improvements to the Regulation of Bank Holding 
Companies and Depository Institutions 
Sec. 1301. Treatment of industrial loan companies, savings associations, and 
certain other companies under the bank holding company act. 
Sec. 1302. Registration of certain companies as bank holding companies. 
Sec. 1303. Reports and examinations of bank holding companies; regulation of 
functionally regulated subsidiaries. 
Sec. 1304. Requirements for financial holding companies to remain well capital-
ized and well managed. 
Sec. 1305. Standards for interstate acquisitions. 
Sec. 1306. Enhancing existing restrictions on bank transactions with affiliates. 
Sec. 1307. Eliminating exceptions for transactions with financial subsidiaries. 
Sec. 1308. Lending limits applicable to credit exposure on derivative trans-
actions, repurchase agreements, reverse repurchase agree-
ments, and securities lending and borrowing transactions. 
Sec. 1309. Restriction on conversions of troubled banks and thrifts. 
Sec. 1310. Lending limits to insiders. 
Sec. 1311. Limitations on purchases of assets from insiders. 
Sec. 1312. Rules regarding capital levels of bank holding companies. 
Sec. 1313. Enhancements to factors to be considered in certain acquisitions. 
Sec. 1314. Elimination of elective investment bank holding company frame-
work. 
Sec. 1315. Examination fees for large bank holding companies. 
Sec. 1316. Mutual national banks and Federal mutual bank holding companies 
authorized. 
Sec. 1317.
Nationwide Deposit Cap for Interstate Acquisitions. 
Sec. 1318. De novo branching into states. 
Subtitle E—Improvements to the Federal Deposit Insurance Fund 
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Sec. 1401. Accounting for actual risk to the Deposit Insurance Fund. 
Sec. 1402. Creating a risk-focused assessment base. 
Sec. 1403. Elimination of procyclical assessments. 
Sec. 1404. Enhanced access to information for deposit insurance purposes. 
Sec. 1405. Transition reserve ratio requirements to reflect new assessment 
base. 
Subtitle F—Improvements to the Asset-Backed Securitization Process 
Sec. 1501. Short title. 
Sec. 1502. Credit risk retention. 
Sec. 1503. Periodic and other reporting under the Securities Exchange Act of 
1934 for asset-backed securities. 
Sec. 1504. Representations and warranties in asset-backed offerings. 
Sec. 1505. Exempted transactions under the Securities Act of 1933. 
Sec. 1506. Study on the macroeconomic effects of risk retention requirements. 
Subtitle G—Enhanced Dissolution Authority 
Sec. 1601. Short title; Purpose. 
Sec. 1602. Definitions. 
Sec. 1603. Systemic risk determination. 
Sec. 1604. Dissolution; stabilization. 
Sec. 1605. Judicial review. 
Sec. 1606. Directors not liable for acquiescing in appointment of receiver. 
Sec. 1607. Termination and exclusion of other actions. 
Sec. 1608. Rulemaking. 
Sec. 1609. Powers and duties of corporation. 
Sec. 1610. Clarification of prohibition regarding concealment of assets from re-
ceiver or liquidating agent. 
Sec. 1611. Office of Dissolution. 
Sec. 1612. Miscellaneous provisions. 
Sec. 1613. Amendment to Federal Deposit Insurance Act. 
Sec. 1614. Application of executive compensation limitations. 
Sec. 1615. Study on the effect of safe harbor provisions in insolvency cases. 
Sec. 1616. Treasury study. 
Sec. 1617. Priority of claims in federal deposit insurance act. 
Subtitle H—Additional Improvements for Financial Crisis Management 
Sec. 1701. Additional improvements for financial crisis management. 
Sec. 1702. Certain restrictions related to foreign currency swap authority. 
Sec. 1703. Additional oversight of financial regulatory system. 
Subtitle I—Miscellaneous 
Sec. 1801. Inclusion of minorities and women; Diversity in agency workforce. 
Sec. 1802. Federal Housing Finance Agency advisory role in FIEC. 
Subtitle J—International Policy Coordination 
Sec. 1901. International policy coordination. 
Subtitle K—International Financial Provisions 
Sec. 1951. Access to United States financial market by foreign institutions. 
Sec. 1952. Reducing TARP funds to offset costs. 
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Subtitle L—Securities Holding Companies 
Sec. 1961. Securities holding companies. 
TITLE II—CORPORATE AND FINANCIAL INSTITUTION 
COMPENSATION FAIRNESS ACT 
Sec. 2001. Short title. 
Sec. 2002. Shareholder vote on executive compensation disclosures. 
Sec. 2003. Compensation committee independence. 
Sec. 2004. Enhanced compensation structure reporting to reduce perverse in-
centives. 
TITLE III—DERIVATIVE MARKETS TRANSPARENCY AND 
ACCOUNTABILITY ACT 
Sec. 3001. Short title. 
Sec. 3002. Review of regulatory authority. 
Sec. 3003. International harmonization. 
Sec. 3004. Prohibition against government assistance. 
Sec. 3005. Studies. 
Sec. 3006. Recommendations for changes to insolvency laws. 
Sec. 3007. Abusive swaps. 
Sec. 3008. Authority to prohibit participation in swap activities. 
Sec. 3009. Memorandum. 
Subtitle A—Regulation of Swap Markets 
Sec. 3101. Definitions. 
Sec. 3102. Jurisdiction. 
Sec. 3103. Clearing and execution transparency. 
Sec. 3104. Public reporting of aggregate swap data. 
Sec. 3105. Swap repositories. 
Sec. 3106. Reporting and recordkeeping. 
Sec. 3107. Registration and regulation of swap dealers and major swap partici-
pants. 
Sec. 3108. Conflicts of interest. 
Sec. 3109. Swap execution facilities. 
Sec. 3110. Derivatives transaction execution facilities and exempt boards of 
trade. 
Sec. 3111. Designated contract markets. 
Sec. 3112. Margin. 
Sec. 3113. Position limits. 
Sec. 3114. Enhanced authority over registered entities. 
Sec. 3115. Foreign boards of trade. 
Sec. 3116. Legal certainty for swaps. 
Sec. 3117. FDICIA amendments. 
Sec. 3118. Enforcement authority. 
Sec. 3119. Enforcement. 
Sec. 3120. Retail commodity transactions. 
Sec. 3121. Large swap trader reporting. 
Sec. 3122. Segregation of assets held as collateral in swap transactions. 
Sec. 3123. Other authority. 
Sec. 3124. Antitrust. 
Sec. 3125. Review of prior actions. 
Sec. 3126. Expedited process. 
Sec. 3127. Effective date. 
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Subtitle B—Regulation of Security-Based Swap Markets 
Sec. 3201. Definitions under the Securities Exchange Act of 1934. 
Sec. 3202. Repeal of prohibition on regulation of security-based swaps. 
Sec. 3203. Amendments to the Securities Exchange Act of 1934. 
Sec. 3204. Registration and regulation of swap dealers and major swap partici-
pants. 
Sec. 3205. Reporting and recordkeeping. 
Sec. 3206. State gaming and bucket shop laws. 
Sec. 3207. Amendments to the Securities Act of 1933; treatment of security- 
based swaps. 
Sec. 3208. Other authority. 
Sec. 3209. Jurisdiction. 
Sec. 3210. Effective date. 
Subtitle C—Improved Financial and Commodity Markets Oversight and 
Accountability 
Sec. 3301. Elevation of certain Inspectors General to appointment pursuant to 
section 3 of the Inspector General Act of 1978. 
Sec. 3302. Continuation of provisions relating to personnel. 
Sec. 3303. Corrective responses by heads of certain establishments to defi-
ciencies identified by Inspectors General. 
Sec. 3304. Effective date; transition rule. 
Sec. 3305. Authority of the Commodity Futures Trading Commission to define 
‘‘commercial risk’’, ‘‘operating risk’’, and ‘‘balance sheet risk’’. 
Sec. 3306. Conflicts of interest in clearing organizations. 
Sec. 3307. Definitions of major swap participant and major security-based 
swap participant. 
TITLE IV—CONSUMER FINANCIAL PROTECTION AGENCY ACT 
Sec. 4001. Short title. 
Sec. 4002. Definitions. 
Subtitle A—Establishment of the Agency 
Sec. 4101. Establishment of the Consumer Financial Protection Agency. 
Sec. 4102. Director. 
Sec. 4103. Establishment and composition of the commission. 
Sec. 4104. Consumer Financial Protection Oversight Board. 
Sec. 4105. Executive and administrative powers. 
Sec. 4106. Administration. 
Sec. 4107. Consumer Advisory Board. 
Sec. 4108. Coordination. 
Sec. 4109. Reports to the Congress. 
Sec. 4110. GAO small business studies. 
Sec. 4111. Funding; fees and assessments; penalties and fines. 
Sec. 4112. Amendments relating to other administrative provisions. 
Sec. 4113. Oversight by GAO. 
Sec. 4114. Effective date. 
Subtitle B—General Powers of the Director and Agency 
Sec. 4201. Mandate and objectives. 
Sec. 4202. Authorities. 
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Sec. 4203. Examination and enforcement for small banks, thrifts, and credit 
unions. 
Sec. 4204. Simultaneous and coordinated supervisory action. 
Sec. 4205. Limitations on authority of agency and director. 
Sec. 4206. Collection of information; confidentiality regulations. 
Sec. 4207. Monitoring; assessments of significant regulations; reports. 
Sec. 4208. Authority to restrict mandatory predispute arbitration. 
Sec. 4209. Registration and supervision of nondepository covered persons. 
Sec. 4210. Effective date. 
Subtitle C—Specific Authorities 
Sec. 4301. Prohibiting unfair, deceptive, or abusive acts or practices. 
Sec. 4302. Disclosures. 
Sec. 4303. Sales practices. 
Sec. 4304. Pilot disclosures. 
Sec. 4305. Adopting operational standards to deter unfair, deceptive, or abusive 
practices. 
Sec. 4306. Duties. 
Sec. 4307. Consumer rights to access information. 
Sec. 4308. Prohibited acts. 
Sec. 4309. Treatment of remittance transfers. 
Sec. 4310. Effective date. 
Sec. 4311. No authority to require the offering of financial products or services. 
Sec. 4312. Appraisal independence requirements. 
Sec. 4313. Overdraft protection notice requirements. 
Sec. 4314. Review, report, and program with respect to exchange facilitators. 
Sec. 4315. Regulation of person-to-person lending. 
Sec. 4316. Treatment of reverse mortgages. 
Subtitle D—Preservation of State Law 
Sec. 4401. Relation to State law. 
Sec. 4402. Preservation of enforcement powers of States. 
Sec. 4403. Preservation of existing contracts. 
Sec. 4404. State law preemption standards for national banks and subsidiaries 
clarified. 
Sec. 4405. Visitorial standards. 
Sec. 4406. Clarification of law applicable to nondepository institution subsidi-
aries. 
Sec. 4407. State law preemption standards for Federal savings associations and 
subsidiaries clarified. 
Sec. 4408. Visitorial standards. 
Sec. 4409. Clarification of law applicable to nondepository institution subsidi-
aries. 
Sec. 4410. Effective date. 
Subtitle E—Enforcement Powers 
Sec. 4501. Definitions. 
Sec. 4502. Investigations and administrative discovery. 
Sec. 4503. Hearings and adjudication proceedings. 
Sec. 4504. Litigation authority. 
Sec. 4505. Relief available. 
Sec. 4506. Referrals for criminal proceedings. 
Sec. 4507. Employee protection. 
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Sec. 4508. No private right of action. 
Sec. 4509. Effective date. 
Subtitle F—Transfer of Functions and Personnel; Transitional Provisions 
Sec. 4601. Transfer of certain functions. 
Sec. 4602. Designated transfer date. 
Sec. 4603. Savings provisions. 
Sec. 4604. Transfer of certain personnel. 
Sec. 4605. Incidental transfers. 
Sec. 4606. Interim authority of the Secretary. 
Subtitle G—Regulatory Improvements 
Sec. 4701. Collection of deposit account data. 
Sec. 4702. Small business data collection. 
Sec. 4703. Annual financial autopsy. 
Sec. 4704. Reporting of mortgage data by State. 
Subtitle H—Conforming Amendments 
Sec. 4801. Amendments to the Inspector General Act of 1978. 
Sec. 4802. Amendments to the Privacy Act of 1974. 
Sec. 4803. Amendments to the Alternative Mortgage Transaction Parity Act of 
1982. 
Sec. 4804. Amendments to the Consumer Credit Protection Act. 
Sec. 4805. Amendments to the Expedited Funds Availability Act. 
Sec. 4806. Amendments to the Federal Deposit Insurance Act. 
Sec. 4807. Amendments to the Gramm-Leach-Bliley Act. 
Sec. 4808. Amendments to the Home Mortgage Disclosure Act of 1975. 
Sec. 4809. Amendments to division D of the Omnibus Appropriations Act, 
2009. 
Sec. 4810. Amendments to the Homeowners Protection Act of 1998. 
Sec. 4811. Amendments to the Real Estate Settlement Procedures Act of 1974. 
Sec. 4812. Amendments to the Right to Financial Privacy Act of 1978. 
Sec. 4813. Amendments to the Secure and Fair Enforcement for Mortgage Li-
censing Act of 2008. 
Sec. 4814. Amendments to the Truth in Savings Act. 
Sec. 4815. Amendments to the Telemarketing and Consumer Fraud Abuse and 
Prevention Act. 
Sec. 4816. Membership in Financial Literacy and Education Commission. 
Sec. 4817. Effective date. 
Sec. 4818. Amendments to Truth in Lending Act. 
Subtitle I—Improvements to the Federal Trade Commission Act 
Sec. 4901. Amendments to the Federal Trade Commission Act. 
Subtitle J—Miscellaneous 
Sec. 4951. Requirements for State-licensed loan originators. 
TITLE V—CAPITAL MARKETS 
Subtitle A—Private Fund Investment Advisers Registration Act 
Sec. 5001. Short title. 
Sec. 5002. Definitions. 
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Sec. 5003. Elimination of private adviser exemption; Limited exemption for for-
eign private fund advisers; Limited intrastate exemption. 
Sec. 5004. Collection of data. 
Sec. 5005. Elimination of disclosure provision. 
Sec. 5006. Exemption of and reporting by venture capital fund advisers. 
Sec. 5007. Exemption of and reporting by certain private fund advisers. 
Sec. 5008. Clarification of rulemaking authority. 
Sec. 5009. GAO study. 
Sec. 5010. Effective date; Transition period. 
Sec. 5011. Qualified client standard. 
Subtitle B—Accountability and Transparency in Rating Agencies Act 
Sec. 6001. Short title. 
Sec. 6002. Enhanced regulation of nationally recognized statistical rating orga-
nizations. 
Sec. 6003. Standards for private actions. 
Sec. 6004. Issuer disclosure of preliminary ratings. 
Sec. 6005. Change to designation. 
Sec. 6006. Timeline for regulations. 
Sec. 6007. Elimination of exemption from fair disclosure rule. 
Sec. 6008. Advisory Board. 
Sec. 6009. Removal of statutory references to credit ratings. 
Sec. 6010. Review of reliance on ratings. 
Sec. 6011. Publication of rating histories on the EDGAR system. 
Sec. 6012. Effect of Rule 436(g). 
Sec. 6013. Studies. 
Subtitle C—Investor Protection Act 
Sec. 7001. Short title. 
PART 1—DISCLOSURE 
Sec. 7101. Investor Advisory Committee established. 
Sec. 7102. Clarification of the Commission’s authority to engage in consumer 
testing. 
Sec. 7103. Establishment of a fiduciary duty for brokers, dealers, and invest-
ment advisers, and harmonization of regulation. 
Sec. 7104. Commission study and rulemaking on disclosure to retail customers 
before purchase of products or services. 
Sec. 7105. Beneficial ownership and short-swing profit reporting. 
Sec. 7106. Revision to recordkeeping rules. 
Sec. 7107. Study on enhancing investment adviser examinations. 
Sec. 7108. GAO study of financial planning. 
PART 2—ENFORCEMENT AND REMEDIES 
Sec. 7201. Authority to restrict mandatory pre-dispute arbitration. 
Sec. 7202. Comptroller General study to review securities arbitration system. 
Sec. 7203. Whistleblower protection. 
Sec. 7204. Conforming amendments for whistleblower protection. 
Sec. 7205. Implementation and transition provisions for whistleblower protec-
tions. 
Sec. 7206. Collateral bars. 
Sec. 7207. Aiding and abetting authority under the Securities Act and the In-
vestment Company Act. 
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Sec. 7208. Authority to impose penalties for aiding and abetting violations of 
the Investment Advisers Act. 
Sec. 7209. Deadline for completing examinations, inspections and enforcement 
actions. 
Sec. 7210. Nationwide service of subpoenas. 
Sec. 7211. Authority to impose civil penalties in cease and desist proceedings. 
Sec. 7212. Formerly associated persons. 
Sec. 7213. Sharing privileged information with other authorities. 
Sec. 7214. Expanded access to grand jury information. 
Sec. 7215. Aiding and abetting standard of knowledge satisfied by recklessness. 
Sec. 7216. Extraterritorial jurisdiction of the antifraud provisions of the Fed-
eral securities laws. 
Sec. 7217. Fidelity bonding. 
Sec. 7218. Enhanced SEC authority to conduct surveillance and risk assess-
ment. 
Sec. 7219. Investment company examinations. 
Sec. 7220. Control person liability under the Securities Exchange Act. 
Sec. 7221. Enhanced application of anti-fraud provisions. 
Sec. 7222. SEC authority to issue rules on proxy access. 
PART 3—COMMISSION FUNDING AND ORGANIZATION 
Sec. 7301. Authorization of appropriations. 
Sec. 7302. Investment adviser regulation funding. 
Sec. 7303. Amendments to section 31 of the Securities Exchange Act of 1934. 
Sec. 7304. Commission organizational study and reform. 
Sec. 7305. Capital Markets Safety Board. 
Sec. 7306. Report on implementation of ‘‘post-Madoff reforms’’. 
Sec. 7307. Joint Advisory Committee. 
PART 4—ADDITIONAL COMMISSION REFORMS 
Sec. 7401. Regulation of securities lending. 
Sec. 7402. Lost and stolen securities. 
Sec. 7403. Fingerprinting. 
Sec. 7404. Equal treatment of self-regulatory organization rules. 
Sec. 7405. Clarification that section 205 of the Investment Advisers Act of 
1940 does not apply to State-registered advisers. 
Sec. 7406. Conforming amendments for the repeal of the Public Utility Holding 
Company Act of 1935. 
Sec. 7407. Promoting transparency in financial reporting. 
Sec. 7408. Unlawful margin lending. 
Sec. 7409. Protecting confidentiality of materials submitted to the Commission. 
Sec. 7410. Technical corrections. 
Sec. 7411. Municipal securities. 
Sec. 7412. Interested person definition. 
Sec. 7413. Rulemaking authority to protect redeeming investors. 
Sec. 7414. Study on SEC revolving door. 
Sec. 7415. Study on internal control evaluation and reporting cost burdens on 
smaller issuers. 
Sec. 7416. Analysis of rule regarding smaller reporting companies. 
Sec. 7417. Financial Reporting Forum. 
Sec. 7418. Investment advisers subject to State authorities. 
Sec. 7419. Custodial requirements. 
Sec. 7420. Ombudsman. 
Sec. 7421. Notice to missing security holders. 
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Sec. 7422. Short sale reforms. 
Sec. 7423. Streamlining of SEC filing procedures. 
PART 5—SECURITIES INVESTOR PROTECTION ACT AMENDMENTS 
Sec. 7501. Increasing the minimum assessment paid by SIPC members. 
Sec. 7502. Increasing the borrowing limit on treasury loans. 
Sec. 7503. Increasing the cash limit of protection. 
Sec. 7504. SIPC as trustee in SIPA liquidation proceedings. 
Sec. 7505. Insiders ineligible for SIPC advances. 
Sec. 7506. Eligibility for direct payment procedure. 
Sec. 7507. Increasing the fine for prohibited acts under SIPA. 
Sec. 7508. Penalty for misrepresentation of SIPC membership or protection. 
Sec. 7509. Futures held in a portfolio margin securities account protection. 
Sec. 7510. Study and report on the feasibility of risk-based assessments for 
SIPC members. 
PART 6—SARBANES-OXLEY ACT AMENDMENTS 
Sec. 7601. Public Company Accounting Oversight Board oversight of auditors 
of brokers and dealers. 
Sec. 7602. Foreign regulatory information sharing. 
Sec. 7603. Expansion of audit information to be produced and exchanged with 
foreign counterparts. 
Sec. 7604. Conforming amendment related to registration. 
Sec. 7605. Fair fund amendments. 
Sec. 7606. Exemption for nonaccelerated filers. 
Sec. 7607. Whistleblower protection against retaliation by a subsidiary of an 
issuer. 
Sec. 7608. Congressional access to information. 
Sec. 7609. Creation of ombudsman for the PCAOB. 
Sec. 7610. Auditing Oversight Board. 
PART 7—SENIOR INVESTMENT PROTECTION 
Sec. 7701. Findings. 
Sec. 7702. Definitions. 
Sec. 7703. Grants to States for enhanced protection of seniors from being mis-
led by false designations. 
Sec. 7704. Applications. 
Sec. 7705. Length of participation. 
Sec. 7706. Authorization of appropriations. 
PART 8—REGISTRATION OF MUNICIPAL FINANCIAL ADVISORS 
Sec. 7801. Municipal financial adviser registration requirement. 
Sec. 7802. Conforming amendments. 
Sec. 7803. Effective dates. 
TITLE VI—FEDERAL INSURANCE OFFICE 
Sec. 8001. Short title. 
Sec. 8002. Federal Insurance Office established. 
Sec. 8003. Report on global reinsurance market. 
Sec. 8004. Study on modernization and improvement of insurance regulation in 
the United States. 
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Sec. 8005. Sense of Congress regarding simplified mortgage contract sum-
maries. 
TITLE VII—MORTGAGE REFORM AND ANTI-PREDATORY LENDING 
ACT 
Sec. 9000. Short title; designation as enumerated consumer law. 
Subtitle A—Residential Mortgage Loan Origination Standards 
Sec. 9001. Definitions. 
Sec. 9002. Residential mortgage loan origination. 
Sec. 9003. Prohibition on steering incentives. 
Sec. 9004. Liability. 
Sec. 9005. Regulations. 
Sec. 9006. Study of shared appreciation mortgages. 
Subtitle B—Minimum Standards For Mortgages 
Sec. 9101. Ability to repay. 
Sec. 9102. Net tangible benefit for refinancing of residential mortgage loans. 
Sec. 9103. Safe harbor and rebuttable presumption. 
Sec. 9104. Liability. 
Sec. 9105. Defense to foreclosure. 
Sec. 9106. Additional standards and requirements. 
Sec. 9107. Rule of construction. 
Sec. 9108. Effect on State laws. 
Sec. 9109. Regulations. 
Sec. 9110. Amendments to civil liability provisions. 
Sec. 9111. Lender rights in the context of borrower deception. 
Sec. 9112. Six-month notice required before reset of hybrid adjustable rate 
mortgages. 
Sec. 9113. Required disclosures. 
Sec. 9114. Disclosures required in monthly statements for residential mortgage 
loans. 
Sec. 9115. Legal assistance for foreclosure-related issues. 
Sec. 9116. Effective date. 
Sec. 9117. Report by the GAO. 
Sec. 9118. State Attorney General enforcement authority. 
Subtitle C—High-Cost Mortgages 
Sec. 9201. Definitions relating to high-cost mortgages. 
Sec. 9202. Amendments to existing requirements for certain mortgages. 
Sec. 9203. Additional requirements for certain mortgages. 
Sec. 9204. Regulations. 
Sec. 9205. Effective date. 
Subtitle D—Office of Housing Counseling 
Sec. 9301. Short title. 
Sec. 9302. Establishment of Office of Housing Counseling. 
Sec. 9303. Counseling procedures. 
Sec. 9304. Grants for housing counseling assistance. 
Sec. 9305. Requirements to use HUD-certified counselors under HUD pro-
grams. 
Sec. 9306. Study of defaults and foreclosures. 
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Sec. 9307. Default and foreclosure database. 
Sec. 9308. Definitions for counseling-related programs. 
Sec. 9309. Accountability and transparency for grant recipients. 
Sec. 9310. Updating and simplification of mortgage information booklet. 
Sec. 9311. Home inspection counseling. 
Sec. 9312. Warnings to homeowners of foreclosure rescue scams. 
Subtitle E—Mortgage Servicing 
Sec. 9401. Escrow and impound accounts relating to certain consumer credit 
transactions. 
Sec. 9402. Disclosure notice required for consumers who waive escrow services. 
Sec. 9403. Real Estate Settlement Procedures Act of 1974 amendments. 
Sec. 9404. Truth in Lending Act amendments. 
Sec. 9405. Escrows included in repayment analysis. 
Subtitle F—Appraisal Activities 
Sec. 9501. Property appraisal requirements. 
Sec. 9502. Unfair and deceptive practices and acts relating to certain consumer 
credit transactions. 
Sec. 9503. Amendments relating to Appraisal Subcommittee of FIEC, Ap-
praiser Independence Monitoring, Approved Appraiser Edu-
cation, Appraisal Management Companies, Appraiser Com-
plaint Hotline, Automated Valuation Models, and Broker Price 
Opinions. 
Sec. 9504. Study required on improvements in appraisal process and compli-
ance programs. 
Sec. 9505. Equal Credit Opportunity Act amendment. 
Sec. 9506. Real Estate Settlement Procedures Act of 1974 amendment relating 
to certain appraisal fees. 
Subtitle G—Sense of Congress Regarding the Importance of Government 
Sponsored Enterprises Reform 
Sec. 9601. Sense of Congress regarding the importance of Government-spon-
sored enterprises reform to enhance the protection, limitation, 
and regulation of the terms of residential mortgage credit. 
Subtitle H—Reports and Data Collection 
Sec. 9701. GAO study report on government efforts to combat mortgage fore-
closure rescue scams and loan modification fraud. 
Sec. 9702. Reporting of mortgage data by State. 
Subtitle I—Multifamily Mortgage Resolution 
Sec. 9801. Multifamily mortgage resolution program. 
Subtitle J—Study of Effect of Drywall Presence on Foreclosures 
Sec. 9901. Study of effect of drywall presence on foreclosures. 
Subtitle K—Home Affordable Modification Program 
Sec. 9911. Home Affordable Modification Program guidelines. 
Subtitle L—Making Home Affordable Program 
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Sec. 9921. Public availability of information. 
TITLE VIII—FORECLOSURE AVOIDANCE AND AFFORDABLE 
HOUSING 
Sec. 10001. Emergency mortgage relief. 
Sec. 10002. Additional assistance for Neighborhood Stabilization Program. 
TITLE IX—NONADMITTED AND REINSURANCE REFORM ACT 
Sec. 10051. Short title. 
Sec. 10052. Effective date. 
Subtitle A—Nonadmitted Insurance 
Sec. 10101. Reporting, payment, and allocation of premium taxes. 
Sec. 10102. Regulation of nonadmitted insurance by insured’s home state. 
Sec. 10103. Participation in national producer database. 
Sec. 10104. Uniform standards for surplus lines eligibility. 
Sec. 10105. Streamlined application for commercial purchasers. 
Sec. 10106. GAO study of nonadmitted insurance market. 
Sec. 10107. Definitions. 
Subtitle B—Reinsurance 
Sec. 10201. Regulation of credit for reinsurance and reinsurance agreements. 
Sec. 10202. Regulation of reinsurer solvency. 
Sec. 10203. Definitions. 
Subtitle C—Rule of Construction 
Sec. 10301. Rule of construction. 
Sec. 10302. Severability. 
TITLE X—INTEREST-BEARING TRANSACTION ACCOUNTS 
AUTHORIZED 
Sec. 11001. Interest-bearing transaction accounts authorized. 
TITLE I—FINANCIAL STABILITY 
IMPROVEMENT ACT 
SEC. 1000. SHORT TITLE; DEFINITIONS. 
(a) SHORT TITLE.—This title may be cited as the 
‘‘Financial Stability Improvement Act of 2009’’. 
(b) DEFINITIONS.—For purposes of this title, the fol-
lowing definitions shall apply: 
(1) The term ‘‘Board’’ means the Board of 
Governors of the Federal Reserve System. 
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(2) The term ‘‘Council’’ means the Financial 
Services Oversight Council established under section 
1001. 
(3) The term ‘‘Federal financial regulatory 
agency’’ means any agency that has a voting mem-
ber of the Council as set forth in section 1001(b)(1). 
(4) The term ‘‘financial company’’ means a 
company or other entity— 
(A) that is— 
(i) incorporated or organized under 
the laws of the United States or any State, 
territory, or possession of the United 
States, the District of Columbia, Common-
wealth of Puerto Rico, Commonwealth of 
Northern Mariana Islands, Guam, Amer-
ican Samoa, or the United States Virgin 
Islands; or 
(ii) a company incorporated in or or-
ganized in a country other than the United 
States that has significant operations in 
the United States (hereafter in this title 
referred to as a ‘‘foreign financial parent’’) 
after through— 
(I) a Federal or State branch or 
agency of a foreign bank as such 
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terms are defined in the International 
Banking Act of 1978 (12 U.S.C. 3101 
et seq.); or 
(II) a United States affiliate or 
other United States operating entity; 
(B) that is, in whole or in part, directly or 
indirectly, engaged in financial activities; and 
(C) that is not a Farm Credit System in-
stitution chartered under and subject to the 
provisions of the Farm Credit Act of 1971, as 
amended (12 U.S.C. 2001 et seq.). 
(5) FINANCIAL HOLDING COMPANY SUBJECT TO 
STRICTER STANDARDS.—The term ‘‘financial holding 
company subject to stricter standards’’ means— 
(A) a financial company that has been sub-
jected to stricter prudential standards under 
subtitle B; or 
(B) in the case of a financial company de-
scribed in subparagraph (A) that is required to 
establish an intermediate holding company 
under section 6 of the Bank Holding Company 
Act, the section 6 holding company through 
which the financial company is required to con-
duct its financial activities. 
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scribed in any other subparagraph of this 
paragraph to the extent that the subsidiary 
is engaged in an activity described in such 
subparagraph; 
(iv) after the date on which the func-
tions of the Office of Thrift Supervision 
are transferred under subtitle C, any sav-
ings and loan holding company (as defined 
in section 10(a)(1)(D) of the Home Own-
ers’ Loan Act) and any subsidiary (as such 
term is defined in the Bank Holding Com-
pany Act of 1956) of such company, other 
than a subsidiary that is described in any 
other subparagraph of this paragraph, to 
the extent that the subsidiary is engaged 
in an activity described in such subpara-
graph; 
(v) any organization organized and 
operated under section 25 or 25A of the 
Federal Reserve Act (12 U.S.C. 601 et 
seq. or 611 et seq.); and 
(vi) any foreign bank or company that 
is treated as a bank holding company 
under subsection (a) of section 8 of the 
International Banking Act of 1978 and 
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pany Act of 1940 (15 U.S.C. 80a–1 et 
seq.); 
(iii) any investment adviser registered 
with the Securities and Exchange Commis-
sion under the Investment Advisers Act of 
1940 (15 U.S.C. 80b–1 et seq.) with re-
spect to the investment advisory activities 
of such company and activities incidental 
to such advisory activities; 
(iv) any clearing agency (as defined in 
section 3(a)(23) of the Securities Ex-
change Act of 1934); 
(v) a securities-based swap execution 
facility that is registered with the Securi-
ties and Exchange Commission under the 
Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.); 
(vi) any exchange registered as a na-
tional securities exchange with the Securi-
ties and Exchange Commission under the 
Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.); 
(vii) any credit rating agency reg-
istered with the Securities and Exchange 
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execution facility (as defined in the Com-
modity Exchange Act). 
(G) The Federal Housing Finance Agency 
with respect to the Federal National Mortgage 
Association, the Federal Home Loan Mortgage 
Corporation, and the Federal home loan banks. 
(H) The State insurance authority of the 
State in which an insurance company is domi-
ciled, with respect to the insurance activities 
and activities incidental to such insurance ac-
tivities of an insurance company that is subject 
to supervision by the State insurance authority 
under State insurance law. 
(I) The Office of Thrift Supervision, with 
respect to any Federal savings association, 
State savings association, or savings and loan 
holding company, until the date on which the 
functions of the Office of Thrift Supervision are 
transferred under subtitle C. 
(7) TERMS DEFINED IN OTHER LAWS.— 
(A) AFFILIATE.—The term ‘‘affiliate’’ has 
the meaning given such term in section 2(k) of 
the Bank Holding Company Act of 1956. 
(B) STATE MEMBER BANK, STATE NON-
MEMBER
BANK.—The terms ‘‘State member 
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bank’’ and ‘‘State nonmember bank’’ have the 
same meanings as in subsections (d)(2) and 
(e)(2), respectively, of section 3 of the Federal 
Deposit Insurance Act. 
SEC. 1000A. RESTRICTIONS ON THE FEDERAL RESERVE 
SYSTEM PENDING AUDIT REPORT. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Comptroller General of the United States 
shall perform an audit of all actions taken by the Board 
of Governors of the Federal Reserve System and the Fed-
eral reserve banks during the current economic crisis pur-
suant to the authority granted under section 13(c) of the 
Federal Reserve Act. Such audit shall be completed as ex-
peditiously as possible, but no later than 2 years, after 
the date of the enactment of the Financial Stability Im-
provement Act of 2009. 
(b) REPORT.— 
(1) REQUIRED.—Not later than the end of the 
90-day period beginning on the date the audit re-
ferred to in subsection (a) is completed, the Comp-
troller General of the United States shall submit a 
report to the Congress, and make such report avail-
able to the public. 
(2) CONTENTS.—The report under paragraph 
(1) shall include a detailed description of the find-
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ings 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 administrative action as the Comptroller General 
may determine to be appropriate. 
Subtitle A—The Financial Services 
Oversight Council 
SEC. 1001. FINANCIAL SERVICES OVERSIGHT COUNCIL ES-
TABLISHED. 
(a) ESTABLISHMENT.—Immediately upon enactment 
of this title, there is established a Financial Services Over-
sight Council. 
(b) MEMBERSHIP.—The Council shall consist of the 
following: 
(1) VOTING MEMBERS.—Voting members, who 
shall each have one vote on the Council, as follows: 
(A) The Secretary of the Treasury, who 
shall serve as the Chairman of the Council. 
(B) The Chairman of the Board of Gov-
ernors of the Federal Reserve System. 
(C) The Comptroller of the Currency. 
(D) The Director of the Office of Thrift 
Supervision, until the functions of the Director 
of the Office of Thrift Supervision are trans-
ferred pursuant to subtitle C. 
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(E) The Chairman of the Securities and 
Exchange Commission. 
(F) The Chairman of the Commodity Fu-
tures Trading Commission. 
(G) The Chairperson of the Federal De-
posit Insurance Corporation. 
(H) The Director of the Federal Housing 
Finance Agency. 
(I) The Chairman of the National Credit 
Union Administration. 
(J) The head of the Consumer Financial 
Protection Agency. 
(2) NONVOTING
MEMBERS.—Nonvoting mem-
bers, who shall serve in an advisory capacity and 
shall not be excluded from any of the Council’s pro-
ceedings, meetings, discussions, and deliberations: 
(A) The Director of the Federal Insurance 
Office. 
(B) A State insurance commissioner, to be 
designated by a selection process determined by 
the State insurance commissioners, provided 
that the term for which a State insurance com-
missioner may serve shall last no more than the 
2-year period beginning on the date that the 
commissioner is selected. 
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(C) A State banking supervisor, to be des-
ignated by a selection process determined by 
the State bank supervisors, provided that the 
term for which a State banking supervisor may 
serve shall last no more than the 2-year period 
beginning on the date that the supervisor is se-
lected. 
(D) A State securities commissioner (or an 
officer performing like functions), to be des-
ignated by a selection process determined by 
such State securities commissioners, provided 
that the term for which a State securities com-
missioner may serve shall last no more than the 
2-year period beginning on the date that the 
commissioner is selected. 
(c) DUTIES.—The Council shall have the following 
duties: 
(1) To advise the Congress on financial domes-
tic and international regulatory developments, in-
cluding insurance and accounting developments, and 
make recommendations that will enhance the integ-
rity, efficiency, competitiveness, and stability of the 
United States financial markets. 
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(2) To monitor the financial services market-
place to identify potential threats to the stability of 
the United States financial system. 
(3) To identify potential threats to the stability 
of the United States financial system that do not 
arise out of the financial services marketplace. 
(4) To develop strategies (and conduct exercises 
in furtherance of those strategies) to prepare for po-
tential threats identified under paragraphs (2) and 
(3). In doing so, the Council shall collaborate with 
participants in the financial sector, financial sector 
coordinating councils, and any other parties the 
Council determines to be appropriate. 
(5) To subject financial companies and financial 
activities to stricter prudential standards in order to 
promote financial stability and mitigate systemic 
risk in accordance with subtitle B. 
(6) To issue formal recommendations that a 
Council member agency adopt stricter prudential 
standards for firms it regulates to mitigate systemic 
risk in accordance with subtitle B of this title. 
(7) To monitor international regulatory develop-
ments, including both insurance and accounting de-
velopments, and to identify those developments that 
may conflict with the policies of the United States 
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