H. R. 1424—29 
(3) STAFF OF AGENCIES.—Upon request of the Oversight 
Panel, the head of any Federal department or agency may 
detail, on a reimbursable basis, any of the personnel of that 
department or agency to the Oversight Panel to assist it in 
carrying out its duties under this Act. 
(e) POWERS.— 
(1) HEARINGS AND SESSIONS.—The Oversight Panel may, 
for the purpose of carrying out this section, hold hearings, 
sit and act at times and places, take testimony, and receive 
evidence as the Panel considers appropriate and may admin-
ister oaths or affirmations to witnesses appearing before it. 
(2) POWERS OF MEMBERS AND AGENTS.—Any member or 
agent of the Oversight Panel may, if authorized by the Over-
sight Panel, take any action which the Oversight Panel is 
authorized to take by this section. 
(3) OBTAINING OFFICIAL DATA.—The Oversight Panel may 
secure directly from any department or agency of the United 
States information necessary to enable it to carry out this 
section. Upon request of the Chairperson of the Oversight 
Panel, the head of that department or agency shall furnish 
that information to the Oversight Panel. 
(4) REPORTS.—The Oversight Panel shall receive and con-
sider all reports required to be submitted to the Oversight 
Panel under this Act. 
(f) TERMINATION.—The Oversight Panel shall terminate 6 
months after the termination date specified in section 120. 
(g) FUNDING FOR EXPENSES.— 
(1) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated to the Oversight Panel such sums 
as may be necessary for any fiscal year, half of which shall 
be derived from the applicable account of the House of Rep-
resentatives, and half of which shall be derived from the contin-
gent fund of the Senate. 
(2) REIMBURSEMENT OF AMOUNTS.—An amount equal to 
the expenses of the Oversight Panel shall be promptly trans-
ferred by the Secretary, from time to time upon the presentment 
of a statement of such expenses by the Chairperson of the 
Oversight Panel, from funds made available to the Secretary 
under this Act to the applicable fund of the House of Represent-
atives and the contingent fund of the Senate, as appropriate, 
as reimbursement for amounts expended from such account 
and fund under paragraph (1). 
SEC. 126. FDIC AUTHORITY. 
(a) IN GENERAL.—Section 18(a) of the Federal Deposit Insurance 
Act (12 U.S.C. 1828(a)) is amended by adding at the end the 
following new paragraph: 
‘‘(4) FALSE ADVERTISING, MISUSE OF FDIC NAMES, AND MIS-
REPRESENTATION TO INDICATE INSURED STATUS.— 
‘‘(A) PROHIBITION ON FALSE ADVERTISING AND MISUSE 
OF FDIC NAMES.—No person may represent or imply that 
any deposit liability, obligation, certificate, or share is 
insured or guaranteed by the Corporation, if such deposit 
liability, obligation, certificate, or share is not insured or 
guaranteed by the Corporation—
H. R. 1424—30 
‘‘(i) by using the terms ‘Federal Deposit’, ‘Federal 
Deposit Insurance’, ‘Federal Deposit Insurance Cor-
poration’, any combination of such terms, or the abbre-
viation ‘FDIC’ as part of the business name or firm 
name of any person, including any corporation, part-
nership, business trust, association, or other business 
entity; or 
‘‘(ii) by using such terms or any other terms, sign, 
or symbol as part of an advertisement, solicitation, 
or other document. 
‘‘(B) PROHIBITION ON MISREPRESENTATIONS OF INSURED 
STATUS.—No person may knowingly misrepresent— 
‘‘(i) that any deposit liability, obligation, certificate, 
or share is insured, under this Act, if such deposit 
liability, obligation, certificate, or share is not so 
insured; or 
‘‘(ii) the extent to which or the manner in which 
any deposit liability, obligation, certificate, or share 
is insured under this Act, if such deposit liability, 
obligation, certificate, or share is not so insured, to 
the extent or in the manner represented. 
‘‘(C) AUTHORITY OF THE APPROPRIATE FEDERAL BANKING 
AGENCY.—The appropriate Federal banking agency shall 
have enforcement authority in the case of a violation of 
this paragraph by any person for which the agency is 
the appropriate Federal banking agency, or any institution- 
affiliated party thereof. 
‘‘(D) CORPORATION AUTHORITY IF THE APPROPRIATE FED-
ERAL
BANKING
AGENCY
FAILS
TO
FOLLOW
RECOMMENDA-
TION.— 
‘‘(i) RECOMMENDATION.—The Corporation may rec-
ommend in writing to the appropriate Federal banking 
agency that the agency take any enforcement action 
authorized under section 8 for purposes of enforcement 
of this paragraph with respect to any person for which 
the agency is the appropriate Federal banking agency 
or any institution-affiliated party thereof. 
‘‘(ii) AGENCY RESPONSE.—If the appropriate Fed-
eral banking agency does not, within 30 days of the 
date of receipt of a recommendation under clause (i), 
take the enforcement action with respect to this para-
graph recommended by the Corporation or provide a 
plan acceptable to the Corporation for responding to 
the situation presented, the Corporation may take the 
recommended enforcement action against such person 
or institution-affiliated party. 
‘‘(E) ADDITIONAL
AUTHORITY.—In addition to its 
authority under subparagraphs (C) and (D), for purposes 
of this paragraph, the Corporation shall have, in the same 
manner and to the same extent as with respect to a State 
nonmember insured bank— 
‘‘(i) jurisdiction over— 
‘‘(I) any person other than a person for which 
another agency is the appropriate Federal banking 
agency or any institution-affiliated party thereof; 
and
H. R. 1424—31 
‘‘(II) any person that aids or abets a violation 
of this paragraph by a person described in sub-
clause (I); and 
‘‘(ii) for purposes of enforcing the requirements 
of this paragraph, the authority of the Corporation 
under— 
‘‘(I) section 10(c) to conduct investigations; and 
‘‘(II) subsections (b), (c), (d) and (i) of section 
8 to conduct enforcement actions. 
‘‘(F) OTHER ACTIONS PRESERVED.—No provision of this 
paragraph shall be construed as barring any action other-
wise available, under the laws of the United States or 
any State, to any Federal or State agency or individual.’’. 
(b) ENFORCEMENT ORDERS.—Section 8(c) of the Federal Deposit 
Insurance Act (12 U.S.C. 1818(c)) is amended by adding at the 
end the following new paragraph: 
‘‘(4) FALSE ADVERTISING OR MISUSE OF NAMES TO INDICATE 
INSURED STATUS.— 
‘‘(A) TEMPORARY ORDER.— 
‘‘(i) IN
GENERAL.—If a notice of charges served 
under subsection (b)(1) specifies on the basis of par-
ticular facts that any person engaged or is engaging 
in conduct described in section 18(a)(4), the Corpora-
tion or other appropriate Federal banking agency may 
issue a temporary order requiring— 
‘‘(I) the immediate cessation of any activity 
or practice described, which gave rise to the notice 
of charges; and 
‘‘(II) affirmative action to prevent any further, 
or to remedy any existing, violation. 
‘‘(ii) EFFECT
OF
ORDER.—Any temporary order 
issued under this subparagraph shall take effect upon 
service. 
‘‘(B) EFFECTIVE PERIOD OF TEMPORARY ORDER.—A tem-
porary order issued under subparagraph (A) shall remain 
effective and enforceable, pending the completion of an 
administrative proceeding pursuant to subsection (b)(1) in 
connection with the notice of charges— 
‘‘(i) until such time as the Corporation or other 
appropriate Federal banking agency dismisses the 
charges specified in such notice; or 
‘‘(ii) if a cease-and-desist order is issued against 
such person, until the effective date of such order. 
‘‘(C) CIVIL MONEY PENALTIES.—Any violation of section 
18(a)(4) shall be subject to civil money penalties, as set 
forth in subsection (i), except that for any person other 
than an insured depository institution or an institution- 
affiliated party that is found to have violated this para-
graph, the Corporation or other appropriate Federal 
banking agency shall not be required to demonstrate any 
loss to an insured depository institution.’’. 
(c) UNENFORCEABILITY OF CERTAIN AGREEMENTS.—Section 13(c) 
of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)) is amended 
by adding at the end the following new paragraph: 
‘‘(11) UNENFORCEABILITY
OF
CERTAIN
AGREEMENTS.—No 
provision contained in any existing or future standstill, con-
fidentiality, or other agreement that, directly or indirectly—
H. R. 1424—32 
‘‘(A) affects, restricts, or limits the ability of any person 
to offer to acquire or acquire, 
‘‘(B) prohibits any person from offering to acquire or 
acquiring, or 
‘‘(C) prohibits any person from using any previously 
disclosed information in connection with any such offer 
to acquire or acquisition of, 
all or part of any insured depository institution, including any 
liabilities, assets, or interest therein, in connection with any 
transaction in which the Corporation exercises its authority 
under section 11 or 13, shall be enforceable against or impose 
any liability on such person, as such enforcement or liability 
shall be contrary to public policy.’’. 
(d) TECHNICAL AND CONFORMING AMENDMENTS.—Section 18 of 
the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended— 
(1) in subsection (a)(3)— 
(A) by striking ‘‘this subsection’’ the first place that 
term appears and inserting ‘‘paragraph (1)’’; and 
(B) by striking ‘‘this subsection’’ the second place that 
term appears and inserting ‘‘paragraph (2)’’; and 
(2) in the heading for subsection (a), by striking ‘‘INSURANCE 
LOGO.—’’ and inserting ‘‘REPRESENTATIONS OF DEPOSIT INSUR-
ANCE.—’’. 
SEC. 127. COOPERATION WITH THE FBI. 
Any Federal financial regulatory agency shall cooperate with 
the Federal Bureau of Investigation and other law enforcement 
agencies investigating fraud, misrepresentation, and malfeasance 
with respect to development, advertising, and sale of financial prod-
ucts. 
SEC. 128. ACCELERATION OF EFFECTIVE DATE. 
Section 203 of the Financial Services Regulatory Relief Act 
of 2006 (12 U.S.C. 461 note) is amended by striking ‘‘October 
1, 2011’’ and inserting ‘‘October 1, 2008’’. 
SEC. 129. DISCLOSURES ON EXERCISE OF LOAN AUTHORITY. 
(a) IN GENERAL.—Not later than 7 days after the date on 
which the Board exercises its authority under the third paragraph 
of section 13 of the Federal Reserve Act (12 U.S.C. 343; relating 
to discounts for individuals, partnerships, and corporations) the 
Board shall provide to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Financial Serv-
ices of the House of Representatives a report which includes— 
(1) the justification for exercising the authority; and 
(2) the specific terms of the actions of the Board, including 
the size and duration of the lending, available information 
concerning the value of any collateral held with respect to 
such a loan, the recipient of warrants or any other potential 
equity in exchange for the loan, and any expected cost to 
the taxpayers for such exercise. 
(b) PERIODIC UPDATES.—The Board shall provide updates to 
the Committees specified in subsection (a) not less frequently than 
once every 60 days while the subject loan is outstanding, including— 
(1) the status of the loan; 
(2) the value of the collateral held by the Federal reserve 
bank which initiated the loan; and 
(3) the projected cost to the taxpayers of the loan.
H. R. 1424—33 
(c) CONFIDENTIALITY.—The information submitted to the Con-
gress under this section shall be kept confidential, upon the written 
request of the Chairman of the Board, in which case it shall be 
made available only to the Chairpersons and Ranking Members 
of the Committees described in subsection (a). 
(d) APPLICABILITY.—The provisions of this section shall be in 
force for all uses of the authority provided under section 13 of 
the Federal Reserve Act occurring during the period beginning 
on March 1, 2008 and ending on the after the date of enactment 
of this Act, and reports described in subsection (a) shall be required 
beginning not later than 30 days after that date of enactment, 
with respect to any such exercise of authority. 
(e) SHARING OF INFORMATION.—Any reports required under this 
section shall also be submitted to the Congressional Oversight 
Panel established under section 125. 
SEC. 130. TECHNICAL CORRECTIONS. 
(a) IN GENERAL.—Section 128(b)(2) of the Truth in Lending 
Act (15 U.S.C. 1638(b)(2)), as amended by section 2502 of the 
Mortgage Disclosure Improvement Act of 2008 (Public Law 110– 
289), is amended— 
(1) in subparagraph (A), by striking ‘‘In the case’’ and 
inserting ‘‘Except as provided in subparagraph (G), in the case’’; 
and 
(2) by amending subparagraph (G) to read as follows: 
‘‘(G)(i) In the case of an extension of credit relating 
to a plan described in section 101(53D) of title 11, United 
States Code— 
‘‘(I) the requirements of subparagraphs (A) through 
(E) shall not apply; and 
‘‘(II) a good faith estimate of the disclosures 
required under subsection (a) shall be made in accord-
ance with regulations of the Board under section 121(c) 
before such credit is extended, or shall be delivered 
or placed in the mail not later than 3 business days 
after the date on which the creditor receives the writ-
ten application of the consumer for such credit, which-
ever is earlier. 
‘‘(ii) If a disclosure statement furnished within 3 busi-
ness days of the written application (as provided under 
clause (i)(II)) contains an annual percentage rate which 
is subsequently rendered inaccurate, within the meaning 
of section 107(c), the creditor shall furnish another disclo-
sure statement at the time of settlement or consummation 
of the transaction.’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect as if included in the amendments made by 
section 2502 of the Mortgage Disclosure Improvement Act of 2008 
(Public Law 110–289). 
SEC. 131. EXCHANGE STABILIZATION FUND REIMBURSEMENT. 
(a) REIMBURSEMENT.—The Secretary shall reimburse the 
Exchange Stabilization Fund established under section 5302 of title 
31, United States Code, for any funds that are used for the Treasury 
Money Market Funds Guaranty Program for the United States 
money market mutual fund industry, from funds under this Act. 
(b) LIMITS ON USE OF EXCHANGE STABILIZATION FUND.—The 
Secretary is prohibited from using the Exchange Stabilization Fund
H. R. 1424—34 
for the establishment of any future guaranty programs for the 
United States money market mutual fund industry. 
SEC. 132. AUTHORITY TO SUSPEND MARK-TO-MARKET ACCOUNTING. 
(a) AUTHORITY.—The Securities and Exchange Commission 
shall have the authority under the securities laws (as such term 
is defined in section 3(a)(47) of the Securities Exchange Act of 
1934 (15 U.S.C. 78c(a)(47)) to suspend, by rule, regulation, or order, 
the application of Statement Number 157 of the Financial 
Accounting Standards Board for any issuer (as such term is defined 
in section 3(a)(8) of such Act) or with respect to any class or 
category of transaction if the Commission determines that is nec-
essary or appropriate in the public interest and is consistent with 
the protection of investors. 
(b) SAVINGS PROVISION.—Nothing in subsection (a) shall be 
construed to restrict or limit any authority of the Securities and 
Exchange Commission under securities laws as in effect on the 
date of enactment of this Act. 
SEC. 133. STUDY ON MARK-TO-MARKET ACCOUNTING. 
(a) STUDY.—The Securities and Exchange Commission, in con-
sultation with the Board and the Secretary, shall conduct a study 
on mark-to-market accounting standards as provided in Statement 
Number 157 of the Financial Accounting Standards Board, as such 
standards are applicable to financial institutions, including deposi-
tory institutions. Such a study shall consider at a minimum— 
(1) the effects of such accounting standards on a financial 
institution’s balance sheet; 
(2) the impacts of such accounting on bank failures in 
2008; 
(3) the impact of such standards on the quality of financial 
information available to investors; 
(4) the process used by the Financial Accounting Standards 
Board in developing accounting standards; 
(5) the advisability and feasibility of modifications to such 
standards; and 
(6) alternative accounting standards to those provided in 
such Statement Number 157. 
(b) REPORT.—The Securities and Exchange Commission shall 
submit to Congress a report of such study before the end of the 
90-day period beginning on the date of the enactment of this Act 
containing the findings and determinations of the Commission, 
including such administrative and legislative recommendations as 
the Commission determines appropriate. 
SEC. 134. RECOUPMENT. 
Upon the expiration of the 5-year period beginning upon the 
date of the enactment of this Act, the Director of the Office of 
Management and Budget, in consultation with the Director of the 
Congressional Budget Office, shall submit a report to the Congress 
on the net amount within the Troubled Asset Relief Program under 
this Act. In any case where there is a shortfall, the President 
shall submit a legislative proposal that recoups from the financial 
industry an amount equal to the shortfall in order to ensure that 
the Troubled Asset Relief Program does not add to the deficit 
or national debt.
H. R. 1424—35 
SEC. 135. PRESERVATION OF AUTHORITY. 
With the exception of section 131, nothing in this Act may 
be construed to limit the authority of the Secretary or the Board 
under any other provision of law. 
SEC. 136. TEMPORARY INCREASE IN DEPOSIT AND SHARE INSURANCE 
COVERAGE. 
(a) FEDERAL DEPOSIT INSURANCE ACT; TEMPORARY INCREASE 
IN DEPOSIT INSURANCE.— 
(1) INCREASED AMOUNT.—Effective only during the period 
beginning on the date of enactment of this Act and ending 
on December 31, 2009, section 11(a)(1)(E) of the Federal Deposit 
Insurance Act (12 U.S.C. 1821(a)(1)(E)) shall apply with 
‘‘$250,000’’ substituted for ‘‘$100,000’’. 
(2) TEMPORARY INCREASE NOT TO BE CONSIDERED FOR SET-
TING ASSESSMENTS.—The temporary increase in the standard 
maximum deposit insurance amount made under paragraph 
(1) shall not be taken into account by the Board of Directors 
of the Corporation for purposes of setting assessments under 
section 7(b)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1817(b)(2)). 
(3) BORROWING LIMITS TEMPORARILY LIFTED.—During the 
period beginning on the date of enactment of this Act and 
ending on December 31, 2009, the Board of Directors of the 
Corporation may request from the Secretary, and the Secretary 
shall approve, a loan or loans in an amount or amounts nec-
essary to carry out this subsection, without regard to the limita-
tions on such borrowing under section 14(a) and 15(c) of the 
Federal Deposit Insurance Act (12 U.S.C. 1824(a), 1825(c)). 
(b) FEDERAL CREDIT UNION ACT; TEMPORARY INCREASE
IN 
SHARE INSURANCE.— 
(1) INCREASED AMOUNT.—Effective only during the period 
beginning on the date of enactment of this Act and ending 
on December 31, 2009, section 207(k)(5) of the Federal Credit 
Union Act (12 U.S.C. 1787(k)(5)) shall apply with ‘‘$250,000’’ 
substituted for ‘‘$100,000’’. 
(2) TEMPORARY INCREASE NOT TO BE CONSIDERED FOR SET-
TING INSURANCE PREMIUM CHARGES AND INSURANCE DEPOSIT 
ADJUSTMENTS.—The temporary increase in the standard max-
imum share insurance amount made under paragraph (1) shall 
not be taken into account by the National Credit Union 
Administration Board for purposes of setting insurance pre-
mium charges and share insurance deposit adjustments under 
section 202(c)(2) of the Federal Credit Union Act (12 U.S.C. 
1782(c)(2)). 
(3) BORROWING LIMITS TEMPORARILY LIFTED.—During the 
period beginning on the date of enactment of this Act and 
ending on December 31, 2009, the National Credit Union 
Administration Board may request from the Secretary, and 
the Secretary shall approve, a loan or loans in an amount 
or amounts necessary to carry out this subsection, without 
regard to the limitations on such borrowing under section 
203(d)(1) of the Federal Credit Union Act (12 U.S.C. 1783(d)(1)). 
(c) NOT FOR USE IN INFLATION ADJUSTMENTS.—The temporary 
increase in the standard maximum deposit insurance amount made 
under this section shall not be used to make any inflation adjust-
ment under section 11(a)(1)(F) of the Federal Deposit Insurance
H. R. 1424—36 
Act (12 U.S.C. 1821(a)(1)(F)) for purposes of that Act or the Federal 
Credit Union Act. 
TITLE II—BUDGET-RELATED 
PROVISIONS 
SEC. 201. INFORMATION FOR CONGRESSIONAL SUPPORT AGENCIES. 
Upon request, and to the extent otherwise consistent with 
law, all information used by the Secretary in connection with activi-
ties authorized under this Act (including the records to which 
the Comptroller General is entitled under this Act) shall be made 
available to congressional support agencies (in accordance with 
their obligations to support the Congress as set out in their author-
izing statutes) for the purposes of assisting the committees of Con-
gress with conducting oversight, monitoring, and analysis of the 
activities authorized under this Act. 
SEC. 202. REPORTS BY THE OFFICE OF MANAGEMENT AND BUDGET 
AND THE CONGRESSIONAL BUDGET OFFICE. 
(a) REPORTS BY THE OFFICE OF MANAGEMENT AND BUDGET.— 
Within 60 days of the first exercise of the authority granted in 
section 101(a), but in no case later than December 31, 2008, and 
semiannually thereafter, the Office of Management and Budget 
shall report to the President and the Congress— 
(1) the estimate, notwithstanding section 502(5)(F) of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(F)), as 
of the first business day that is at least 30 days prior to 
the issuance of the report, of the cost of the troubled assets, 
and guarantees of the troubled assets, determined in accordance 
with section 123; 
(2) the information used to derive the estimate, including 
assets purchased or guaranteed, prices paid, revenues received, 
the impact on the deficit and debt, and a description of any 
outstanding commitments to purchase troubled assets; and 
(3) a detailed analysis of how the estimate has changed 
from the previous report. 
Beginning with the second report under subsection (a), the Office 
of Management and Budget shall explain the differences between 
the Congressional Budget Office estimates delivered in accordance 
with subsection (b) and prior Office of Management and Budget 
estimates. 
(b) REPORTS BY THE CONGRESSIONAL BUDGET OFFICE.—Within 
45 days of receipt by the Congress of each report from the Office 
of Management and Budget under subsection (a), the Congressional 
Budget Office shall report to the Congress the Congressional Budget 
Office’s assessment of the report submitted by the Office of Manage-
ment and Budget, including— 
(1) the cost of the troubled assets and guarantees of the 
troubled assets, 
(2) the information and valuation methods used to calculate 
such cost, and 
(3) the impact on the deficit and the debt. 
(c) FINANCIAL EXPERTISE.—In carrying out the duties in this 
subsection or performing analyses of activities under this Act, the 
Director of the Congressional Budget Office may employ personnel 
and procure the services of experts and consultants.
H. R. 1424—37 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as may be necessary to produce 
reports required by this section. 
SEC. 203. ANALYSIS IN PRESIDENT’S BUDGET. 
(a) IN GENERAL.—Section 1105(a) of title 31, United States 
Code, is amended by adding at the end the following new paragraph: 
‘‘(35) as supplementary materials, a separate analysis of 
the budgetary effects for all prior fiscal years, the current 
fiscal year, the fiscal year for which the budget is submitted, 
and ensuing fiscal years of the actions the Secretary of the 
Treasury has taken or plans to take using any authority pro-
vided in the Emergency Economic Stabilization Act of 2008, 
including— 
‘‘(A) an estimate of the current value of all assets 
purchased, sold, and guaranteed under the authority pro-
vided in the Emergency Economic Stabilization Act of 2008 
using methodology required by the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661 et seq.) and section 123 of 
the Emergency Economic Stabilization Act of 2008; 
‘‘(B) an estimate of the deficit, the debt held by the 
public, and the gross Federal debt using methodology 
required by the Federal Credit Reform Act of 1990 and 
section 123 of the Emergency Economic Stabilization Act 
of 2008; 
‘‘(C) an estimate of the current value of all assets 
purchased, sold, and guaranteed under the authority pro-
vided in the Emergency Economic Stabilization Act of 2008 
calculated on a cash basis; 
‘‘(D) a revised estimate of the deficit, the debt held 
by the public, and the gross Federal debt, substituting 
the cash-based estimates in subparagraph (C) for the esti-
mates calculated under subparagraph (A) pursuant to the 
Federal Credit Reform Act of 1990 and section 123 of 
the Emergency Economic Stabilization Act of 2008; and 
‘‘(E) the portion of the deficit which can be attributed 
to any action taken by the Secretary using authority pro-
vided by the Emergency Economic Stabilization Act of 2008 
and the extent to which the change in the deficit since 
the most recent estimate is due to a reestimate using 
the methodology required by the Federal Credit Reform 
Act of 1990 and section 123 of the Emergency Economic 
Stabilization Act of 2008.’’ 
(b) CONSULTATION.—In implementing this section, the Director 
of Office of Management and Budget shall consult periodically, 
but at least annually, with the Committee on the Budget of the 
House of Representatives, the Committee on the Budget of the 
Senate, and the Director of the Congressional Budget Office. 
(c) EFFECTIVE DATE.—This section and the amendment made 
by this section shall apply beginning with respect to the fiscal 
year 2010 budget submission of the President. 
SEC. 204. EMERGENCY TREATMENT. 
All provisions of this Act are designated as an emergency 
requirement and necessary to meet emergency needs pursuant to 
section 204(a) of S. Con. Res 21 (110th Congress), the concurrent 
resolution on the budget for fiscal year 2008 and rescissions of
H. R. 1424—38 
any amounts provided in this Act shall not be counted for purposes 
of budget enforcement. 
TITLE III—TAX PROVISIONS 
SEC. 301. GAIN OR LOSS FROM SALE OR EXCHANGE OF CERTAIN PRE-
FERRED STOCK. 
(a) IN GENERAL.—For purposes of the Internal Revenue Code 
of 1986, gain or loss from the sale or exchange of any applicable 
preferred stock by any applicable financial institution shall be 
treated as ordinary income or loss. 
(b) APPLICABLE PREFERRED STOCK.—For purposes of this sec-
tion, the term ‘‘applicable preferred stock’’ means any stock— 
(1) which is preferred stock in— 
(A) the Federal National Mortgage Association, estab-
lished pursuant to the Federal National Mortgage Associa-
tion Charter Act (12 U.S.C. 1716 et seq.), or 
(B) the Federal Home Loan Mortgage Corporation, 
established pursuant to the Federal Home Loan Mortgage 
Corporation Act (12 U.S.C. 1451 et seq.), and 
(2) which— 
(A) was held by the applicable financial institution 
on September 6, 2008, or 
(B) was sold or exchanged by the applicable financial 
institution on or after January 1, 2008, and before Sep-
tember 7, 2008. 
(c) APPLICABLE FINANCIAL INSTITUTION.—For purposes of this 
section: 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
term ‘‘applicable financial institution’’ means— 
(A) a financial institution referred to in section 
582(c)(2) of the Internal Revenue Code of 1986, or 
(B) a depository institution holding company (as 
defined in section 3(w)(1) of the Federal Deposit Insurance 
Act (12 U.S.C. 1813(w)(1))). 
(2) SPECIAL RULES FOR CERTAIN SALES.—In the case of— 
(A) a sale or exchange described in subsection (b)(2)(B), 
an entity shall be treated as an applicable financial institu-
tion only if it was an entity described in subparagraph 
(A) or (B) of paragraph (1) at the time of the sale or 
exchange, and 
(B) a sale or exchange after September 6, 2008, of 
preferred stock described in subsection (b)(2)(A), an entity 
shall be treated as an applicable financial institution only 
if it was an entity described in subparagraph (A) or (B) 
of paragraph (1) at all times during the period beginning 
on September 6, 2008, and ending on the date of the 
sale or exchange of the preferred stock. 
(d) SPECIAL RULE FOR CERTAIN PROPERTY NOT HELD ON SEP-
TEMBER 6, 2008.—The Secretary of the Treasury or the Secretary’s 
delegate may extend the application of this section to all or a 
portion of the gain or loss from a sale or exchange in any case 
where— 
(1) an applicable financial institution sells or exchanges 
applicable preferred stock after September 6, 2008, which the 
applicable financial institution did not hold on such date, but
H. R. 1424—39 
the basis of which in the hands of the applicable financial 
institution at the time of the sale or exchange is the same 
as the basis in the hands of the person which held such stock 
on such date, or 
(2) the applicable financial institution is a partner in a 
partnership which— 
(A) held such stock on September 6, 2008, and later 
sold or exchanged such stock, or 
(B) sold or exchanged such stock during the period 
described in subsection (b)(2)(B). 
(e) REGULATORY AUTHORITY.—The Secretary of the Treasury 
or the Secretary’s delegate may prescribe such guidance, rules, 
or regulations as are necessary to carry out the purposes of this 
section. 
(f) EFFECTIVE DATE.—This section shall apply to sales or 
exchanges occurring after December 31, 2007, in taxable years 
ending after such date. 
SEC. 302. SPECIAL RULES FOR TAX TREATMENT OF EXECUTIVE COM-
PENSATION OF EMPLOYERS PARTICIPATING IN THE TROU-
BLED ASSETS RELIEF PROGRAM. 
(a) DENIAL OF DEDUCTION.—Subsection (m) of section 162 of 
the Internal Revenue Code of 1986 is amended by adding at the 
end the following new paragraph: 
‘‘(5) SPECIAL RULE FOR APPLICATION TO EMPLOYERS PARTICI-
PATING IN THE TROUBLED ASSETS RELIEF PROGRAM.— 
‘‘(A) IN
GENERAL.—In the case of an applicable 
employer, no deduction shall be allowed under this 
chapter— 
‘‘(i) in the case of executive remuneration for any 
applicable taxable year which is attributable to services 
performed by a covered executive during such 
applicable taxable year, to the extent that the amount 
of such remuneration exceeds $500,000, or 
‘‘(ii) in the case of deferred deduction executive 
remuneration for any taxable year for services per-
formed during any applicable taxable year by a covered 
executive, to the extent that the amount of such remu-
neration exceeds $500,000 reduced (but not below zero) 
by the sum of— 
‘‘(I) the executive remuneration for such 
applicable taxable year, plus 
‘‘(II) the portion of the deferred deduction 
executive remuneration for such services which 
was taken into account under this clause in a 
preceding taxable year. 
‘‘(B) APPLICABLE EMPLOYER.—For purposes of this para-
graph— 
‘‘(i) IN
GENERAL.—Except as provided in clause 
(ii), the term ‘applicable employer’ means any employer 
from whom 1 or more troubled assets are acquired 
under a program established by the Secretary under 
section 101(a) of the Emergency Economic Stabilization 
Act of 2008 if the aggregate amount of the assets 
so acquired for all taxable years exceeds $300,000,000. 
‘‘(ii) DISREGARD OF CERTAIN ASSETS SOLD THROUGH 
DIRECT PURCHASE.—If the only sales of troubled assets
H. R. 1424—40 
by an employer under the program described in clause 
(i) are through 1 or more direct purchases (within 
the meaning of section 113(c) of the Emergency Eco-
nomic Stabilization Act of 2008), such assets shall not 
be taken into account under clause (i) in determining 
whether the employer is an applicable employer for 
purposes of this paragraph. 
‘‘(iii) AGGREGATION RULES.—Two or more persons 
who are treated as a single employer under subsection 
(b) or (c) of section 414 shall be treated as a single 
employer, except that in applying section 1563(a) for 
purposes of either such subsection, paragraphs (2) and 
(3) thereof shall be disregarded. 
‘‘(C) APPLICABLE TAXABLE YEAR.—For purposes of this 
paragraph, the term ‘applicable taxable year’ means, with 
respect to any employer— 
‘‘(i) the first taxable year of the employer— 
‘‘(I) which includes any portion of the period 
during which the authorities under section 101(a) 
of the Emergency Economic Stabilization Act of 
2008 are in effect (determined under section 120 
thereof), and 
‘‘(II) in which the aggregate amount of trou-
bled assets acquired from the employer during the 
taxable year pursuant to such authorities (other 
than assets to which subparagraph (B)(ii) applies), 
when added to the aggregate amount so acquired 
for 
all 
preceding 
taxable 
years, 
exceeds 
$300,000,000, and 
‘‘(ii) any subsequent taxable year which includes 
any portion of such period. 
‘‘(D) COVERED EXECUTIVE.—For purposes of this para-
graph— 
‘‘(i) IN
GENERAL.—The term ‘covered executive’ 
means, with respect to any applicable taxable year, 
any employee— 
‘‘(I) who, at any time during the portion of 
the taxable year during which the authorities 
under section 101(a) of the Emergency Economic 
Stabilization Act of 2008 are in effect (determined 
under section 120 thereof), is the chief executive 
officer of the applicable employer or the chief finan-
cial officer of the applicable employer, or an indi-
vidual acting in either such capacity, or 
‘‘(II) who is described in clause (ii). 
‘‘(ii) 
HIGHEST
COMPENSATED
EMPLOYEES.—An 
employee is described in this clause if the employee 
is 1 of the 3 highest compensated officers of the 
applicable employer for the taxable year (other than 
an individual described in clause (i)(I)), determined— 
‘‘(I) on the basis of the shareholder disclosure 
rules for compensation under the Securities 
Exchange Act of 1934 (without regard to whether 
those rules apply to the employer), and 
‘‘(II) by only taking into account employees 
employed during the portion of the taxable year 
described in clause (i)(I).