I 
113TH CONGRESS 
1ST SESSION H. R. 1483 
To amend the Federal Deposit Insurance Act to provide requirements for 
appropriate Federal banking agencies when using independent consult-
ants in carrying out a consent order, to grant SIGTARP authority 
to provide oversight of such consultants, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 11, 2013 
Ms. WATERS (for herself, Mr. CONYERS, Mr. AL GREEN of Texas, and Mr. 
CUMMINGS) introduced the following bill; which was referred to the Com-
mittee on Financial Services 
A BILL 
To amend the Federal Deposit Insurance Act to provide 
requirements for appropriate Federal banking agencies 
when using independent consultants in carrying out a 
consent order, to grant SIGTARP authority to provide 
oversight of such consultants, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Stop Outsourcing 
Banking Enforcement and Examination Act’’. 
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SEC. 2. USE OF CONSULTANTS IN CONSENT ORDERS. 
The Federal Deposit Insurance Act (12 U.S.C. 1811) 
is amended by adding at the end the following: 
‘‘SEC. 51. USE OF CONSULTANTS IN CONSENT ORDERS. 
‘‘(a) IN GENERAL.—An appropriate Federal banking 
agency that enters into a consent order with a person reg-
ulated by such agency may only use an independent con-
sultant in carrying out such order if all of the following 
requirements are met: 
‘‘(1) TRANSPARENCY.—No less than two weeks 
before any activity under the consent order com-
mences, the appropriate Federal banking agency 
shall make the following information available to the 
public: 
‘‘(A) The full and unredacted consent 
agreement resulting from the consent order. 
‘‘(B) All material information related to 
any past business relationships of the inde-
pendent consultants, regulators, financial insti-
tutions, and third party service providers to the 
order, and their agents and employees, regard-
less of their involvement in the execution of the 
order. 
‘‘(C) A detailed estimate of engagement 
costs. 
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‘‘(D) A detailed description of a well-de-
fined methodology for fulfilling the consent 
order. 
‘‘(2) REPORTING.—The appropriate Federal 
banking agency shall issue a report to the Congress, 
not less than once every quarter until the consent 
order ends, detailing the progress in fulfilling the 
consent order and the performance of the inde-
pendent consultant. 
‘‘(3) RESTRICTION
ON
PARTICIPATION.—No 
independent consultant carrying out a consent order 
has prior or current work that will be under review 
in such consent order or a concurrent and substan-
tially similar consent order. 
‘‘(4) RETENTION AND PAYMENT OF CONSULT-
ANT.—The independent consultant is hired, and 
paid, directly by the appropriate Federal banking 
agency and the appropriate Federal banking agency 
is to be reimbursed for such expenses by the entity 
subject to the consent order. 
‘‘(5) RESTRICTION ON APPLICATION OF PEN-
ALTIES
TO
OTHER
ONGOING
ENFORCEMENT
AC-
TIONS.—Any remediation or penalties under the con-
sent order will not apply to, or be settled in conjunc-
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tion with, any other consent order, settlement, or en-
forcement action. 
‘‘(b) PRIVATE RIGHT OF ACTION.—If an independent 
consultant fails to comply with the contract under which 
the consultant is assisting the appropriate Federal bank-
ing agency in carrying out a consent order which requires 
financial remediation to a person or class of persons, any 
person or class of persons aggrieved by such failure may 
bring a civil action in a court of competent jurisdiction 
for damages resulting from such violation, and may obtain 
other appropriate relief, including equitable relief. If the 
plaintiff prevails in any such action, the court shall award 
the plaintiff any litigation costs reasonably incurred, to-
gether with reasonable attorneys’ fees and reasonable ex-
pert witness fees, as determined by the court. 
‘‘(c) CLAWBACK OF FEES.— 
‘‘(1) IN GENERAL.—If a court determines that 
an independent consultant has violated the terms of 
the contract with the appropriate Federal banking 
agency or has failed to disclose required conflict of 
interest information, the independent consultant 
shall repay the appropriate Federal banking agency 
all fees received by the consultant during the period 
of time such violation or failure was occurring. 
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‘‘(2) SAFE HARBOR.—If the independent con-
sultant made all reasonable efforts to uncover con-
flicts of interest among the consultant’s agents and 
employees, the consultant shall not be subject to 
paragraph (1) with respect to a failure to disclose 
required conflict of interest information. 
‘‘(d) EMPLOYMENT RESTRICTION.—An employee of 
an appropriate Federal banking agency that was involved 
in approving an independent consultant to assist in car-
rying out a consent order may not seek employment with, 
or be employed by, such independent consultant during 
any period in which such consent order is in effect, any 
amendment to such consent order is in effect, or any sub-
sequent consent order based on the original consent order 
is in effect.’’. 
SEC. 3. SIGTARP TO OVERSEE USE OF CONSULTANTS. 
(a) IN GENERAL.—Section 121 of the Emergency 
Economic Stabilization Act of 2008 (12 U.S.C. 5231) is 
amended— 
(1) in subsection (c), by adding at the end the 
following: 
‘‘(5) In addition, the Special Inspector General 
shall also have the duties and responsibilities of pro-
viding oversight of— 
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‘‘(A) consent orders entered into by an ap-
propriate Federal banking agency; and 
‘‘(B) the performance of independent con-
sultants hired by an appropriate Federal bank-
ing agency to assist in carrying out such con-
sent orders, as described under section 51 of 
the Federal Deposit Insurance Act.’’; and 
(2) by amending subsection (k) to read as fol-
lows: 
‘‘(k) OVERSIGHT OF CONSENT ORDERS.— 
‘‘(1) RIGHT OF ACTION RELATED TO CONSENT 
ORDER MONITORING.—The Special Inspector Gen-
eral may bring a civil action in any court of com-
petent jurisdiction against an independent consult-
ant described under section 51(a) of the Federal De-
posit Insurance Act for damages and equitable relief 
for any violations of the consultant’s duties under 
the contract under which the consultant is assisting 
an appropriate Federal banking agency in carrying 
out a consent order. 
‘‘(2) WHISTLEBLOWER INCENTIVES AND PRO-
TECTION
RELATED
TO
CONSENT
ORDER
MONI-
TORING.— 
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‘‘(A) IN GENERAL.—The Special Inspector 
General shall establish a whistleblower program 
under which— 
‘‘(i) the Special Inspector General 
pays an award or awards to 1 or more 
whistleblowers who voluntarily provide 
original information to the Special Inspec-
tor General that leads to the successful en-
forcement of a judicial or administrative 
action brought by the Special Inspector 
General against an independent consultant 
described under section 51(a) of the Fed-
eral Deposit Insurance Act that results in 
monetary sanctions exceeding $1,000,000; 
and 
‘‘(ii) the employer of a whistleblower 
may not discriminate against a whistle-
blower in the terms and conditions of em-
ployment of the whistleblower because of 
any lawful act done by the whistleblower. 
‘‘(B) FORM OF PROGRAM.—To the extent 
practicable, the whistleblower program estab-
lished under this subsection shall be carried out 
in the same manner as the whistleblower provi-
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sion under section 21F of the Securities Ex-
change Act of 1934 (15 U.S.C. 78u–6).’’. 
Æ 
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