FERA
PL 111-21 (S.386), enacted 05/20/2009

123 STAT. 1617 
PUBLIC LAW 111–21—MAY 20, 2009 
Public Law 111–21 
111th Congress 
An Act 
To improve enforcement of mortgage fraud, securities and commodities fraud, finan-
cial institution fraud, and other frauds related to Federal assistance and relief 
programs, for the recovery of funds lost to these frauds, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fraud Enforcement and Recovery 
Act of 2009’’ or ‘‘FERA’’. 
SEC. 
2. 
AMENDMENTS 
TO 
IMPROVE 
MORTGAGE, 
SECURITIES, 
COMMODITIES, AND FINANCIAL FRAUD RECOVERY AND 
ENFORCEMENT. 
(a) DEFINITION
OF
FINANCIAL
INSTITUTION
AMENDED
TO 
INCLUDE MORTGAGE LENDING BUSINESS.—Section 20 of title 18, 
United States Code, is amended— 
(1) in paragraph (8), by striking ‘‘or’’ after the semicolon; 
(2) in paragraph (9), by striking the period and inserting 
‘‘; or’’; and 
(3) by inserting at the end the following: 
‘‘(10) a mortgage lending business (as defined in section 
27 of this title) or any person or entity that makes in whole 
or in part a federally related mortgage loan as defined in 
section 3 of the Real Estate Settlement Procedures Act of 
1974.’’. 
(b) MORTGAGE LENDING BUSINESS DEFINED.— 
(1) IN GENERAL.—Chapter 1 of title 18, United States Code, 
is amended by inserting after section 26 the following: 
‘‘§ 27. Mortgage lending business defined 
‘‘In this title, the term ‘mortgage lending business’ means an 
organization which finances or refinances any debt secured by an 
interest in real estate, including private mortgage companies and 
any subsidiaries of such organizations, and whose activities affect 
interstate or foreign commerce.’’. 
(2) CHAPTER ANALYSIS.—The chapter analysis for chapter 
1 of title 18, United States Code, is amended by adding at 
the end the following: 
‘‘27. Mortgage lending business defined.’’. 
(c) FALSE STATEMENTS IN MORTGAGE APPLICATIONS AMENDED 
TO INCLUDE FALSE STATEMENTS
BY MORTGAGE BROKERS
AND 
AGENTS OF MORTGAGE LENDING BUSINESSES.—Section 1014 of title 
18, United States Code, is amended by— 
18 USC 1 note. 
Fraud 
Enforcement and 
Recovery Act of 
2009. 
May 20, 2009 
[S. 386] 
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123 STAT. 1618 
PUBLIC LAW 111–21—MAY 20, 2009 
(1) striking ‘‘or’’ after ‘‘the International Banking Act of 
1978),’’; and 
(2) inserting after ‘‘section 25(a) of the Federal Reserve 
Act’’ the following: ‘‘, or a mortgage lending business, or any 
person or entity that makes in whole or in part a federally 
related mortgage loan as defined in section 3 of the Real Estate 
Settlement Procedures Act of 1974’’. 
(d) MAJOR FRAUD AGAINST
THE GOVERNMENT AMENDED TO 
INCLUDE ECONOMIC RELIEF AND TROUBLED ASSET RELIEF PROGRAM 
FUNDS.—Section 1031(a) of title 18, United States Code, is amended 
by— 
(1) inserting after ‘‘or promises, in’’ the following: ‘‘any 
grant, contract, subcontract, subsidy, loan, guarantee, insur-
ance, or other form of Federal assistance, including through 
the Troubled Asset Relief Program, an economic stimulus, 
recovery or rescue plan provided by the Government, or the 
Government’s purchase of any troubled asset as defined in 
the Emergency Economic Stabilization Act of 2008, or in’’; 
(2) striking ‘‘the contract, subcontract’’ and inserting ‘‘such 
grant, contract, subcontract, subsidy, loan, guarantee, insur-
ance, or other form of Federal assistance’’; and 
(3) striking ‘‘for such property or services’’. 
(e) SECURITIES FRAUD AMENDED TO INCLUDE FRAUD INVOLVING 
OPTIONS AND FUTURES IN COMMODITIES.— 
(1) IN GENERAL.—Section 1348 of title 18, United States 
Code, is amended— 
(A) in the caption, by inserting ‘‘and commodities’’ 
after ‘‘Securities’’; 
(B) in paragraph (1), by inserting ‘‘any commodity for 
future delivery, or any option on a commodity for future 
delivery, or’’ after ‘‘any person in connection with’’; and 
(C) in paragraph (2), by inserting ‘‘any commodity for 
future delivery, or any option on a commodity for future 
delivery, or’’ after ‘‘in connection with the purchase or 
sale of’’. 
(2) CHAPTER ANALYSIS.—The item for section 1348 in the 
chapter analysis for chapter 63 of title 18, United States Code, 
is amended by inserting ‘‘and commodities’’ after ‘‘Securities’’. 
(f) MONEY LAUNDERING AMENDED TO DEFINE PROCEEDS OF 
SPECIFIED UNLAWFUL ACTIVITY.— 
(1) MONEY LAUNDERING.—Section 1956(c) of title 18, United 
States Code, is amended— 
(A) in paragraph (8), by striking the period and 
inserting ‘‘; and’’; and 
(B) by inserting at the end the following: 
‘‘(9) the term ‘proceeds’ means any property derived from 
or obtained or retained, directly or indirectly, through some 
form of unlawful activity, including the gross receipts of such 
activity.’’. 
(2) MONETARY TRANSACTIONS.—Section 1957(f) of title 18, 
United States Code, is amended by striking paragraph (3) and 
inserting the following: 
‘‘(3) the terms ‘specified unlawful activity’ and ‘proceeds’ 
shall have the meaning given those terms in section 1956 
of this title.’’. 
(g) SENSE
OF
THE
CONGRESS
AND
REPORT
CONCERNING 
REQUIRED APPROVAL FOR MERGER CASES.— 
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123 STAT. 1619 
PUBLIC LAW 111–21—MAY 20, 2009 
(1) SENSE OF CONGRESS.—It is the sense of the Congress 
that no prosecution of an offense under section 1956 or 1957 
of title 18, United States Code, should be undertaken in com-
bination with the prosecution of any other offense, without 
prior approval of the Attorney General, the Deputy Attorney 
General, the Assistant Attorney General in charge of the 
Criminal Division, a Deputy Assistant Attorney General in 
the Criminal Division, or the relevant United States Attorney, 
if the conduct to be charged as ‘‘specified unlawful activity’’ 
in connection with the offense under section 1956 or 1957 
is so closely connected with the conduct to be charged as the 
other offense that there is no clear delineation between the 
two offenses. 
(2) REPORT.—One year after the date of the enactment 
of this Act, and at the end of each of the four succeeding 
one-year periods, the Attorney General shall report to the House 
and Senate Committees on the Judiciary on efforts undertaken 
by the Department of Justice to ensure that the review and 
approval described in paragraph (1) takes place in all appro-
priate cases. The report shall include the following: 
(A) The number of prosecutions described in paragraph 
(1) that were undertaken during the previous one-year 
period after prior approval by an official described in para-
graph (1), classified by type of offense and by the approving 
official. 
(B) The number of prosecutions described in paragraph 
(1) that were undertaken during the previous one-year 
period without such prior approval, classified by type of 
offense, and the reasons why such prior approval was not 
obtained. 
(C) The number of times during the previous year 
in which an approval described in paragraph (1) was 
denied. 
SEC. 3. AUTHORIZATION OF ADDITIONAL FUNDING TO COMBAT MORT-
GAGE FRAUD, SECURITIES AND COMMODITIES FRAUD, AND 
OTHER FRAUDS INVOLVING FEDERAL ECONOMIC ASSIST-
ANCE. 
(a) AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR THE 
DEPARTMENT OF JUSTICE.— 
(1) IN GENERAL.—There is authorized to be appropriated 
to the Attorney General, $165,000,000 for each of the fiscal 
years 2010 and 2011, for the purposes of investigations and 
prosecutions and civil and administrative proceedings involving 
Federal 
assistance 
programs 
and 
financial 
institutions, 
including financial institutions to which this Act and amend-
ments made by this Act apply. 
(2) ALLOCATIONS.—With respect to fiscal years 2010 and 
2011, the amounts authorized to be appropriated under para-
graph (1) shall be allocated as follows: 
(A) Federal Bureau of Investigation: $75,000,000 for 
fiscal year 2010 and $65,000,000 for fiscal year 2011, an 
appropriate percentage of which amounts shall be used 
to investigate mortgage fraud. 
(B) The offices of the United States Attorneys: 
$50,000,000 for each fiscal year. 
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123 STAT. 1620 
PUBLIC LAW 111–21—MAY 20, 2009 
(C) The criminal division of the Department of Justice: 
$20,000,000 for each fiscal year. 
(D) The civil division of the Department of Justice: 
$15,000,000 for each fiscal year. 
(E) The tax division of the Department of Justice: 
$5,000,000 for each fiscal year. 
(b) AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR THE 
POSTAL INSPECTION SERVICE.—There is authorized to be appro-
priated to the Postal Inspection Service of the United States Postal 
Service, $30,000,000 for each of the fiscal years 2010 and 2011 
for investigations involving Federal assistance programs and finan-
cial institutions, including financial institutions to which this Act 
and amendments made by this Act apply. 
(c) AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR THE 
INSPECTOR GENERAL FOR THE DEPARTMENT OF HOUSING AND URBAN 
DEVELOPMENT.—There is authorized to be appropriated to the 
Inspector General of the Department of Housing and Urban 
Development, $30,000,000 for each of the fiscal years 2010 and 
2011 for investigations involving Federal assistance programs and 
financial institutions, including financial institutions to which this 
Act and amendments made by this Act apply. 
(d) AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR THE 
UNITED STATES SECRET SERVICE.—There is authorized to be appro-
priated to the United States Secret Service of the Department 
of Homeland Security, $20,000,000 for each of the fiscal years 
2010 and 2011 for investigations involving Federal assistance pro-
grams and financial institutions, including financial institutions 
to which this Act and amendments made by this Act apply. 
(e) AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR THE 
SECURITIES AND EXCHANGE COMMISSION.— 
(1) IN GENERAL.—There is authorized to be appropriated 
to the Securities and Exchange Commission, $20,000,000 for 
each of the fiscal years 2010 and 2011 for investigations and 
enforcement 
proceedings 
involving 
financial 
institutions, 
including financial institutions to which this Act and amend-
ments made by this Act apply. 
(2) INSPECTOR GENERAL.—There is authorized to be appro-
priated to the Securities and Exchange Commission, $1,000,000 
for each of the fiscal years 2010 and 2011 for the salaries 
and expenses of the Office of the Inspector General of the 
Securities and Exchange Commission. 
(f) USE OF FUNDS.— 
(1) IN
GENERAL.—The funds appropriated pursuant to 
authorization under this section shall be limited to covering 
the costs of each listed agency or department for investigating 
possible criminal, civil, or administrative violations and for 
criminal, civil, or administrative proceedings involving financial 
crimes and crimes against Federal assistance programs, 
including mortgage fraud, securities and commodities fraud, 
financial institution fraud, and other frauds related to Federal 
assistance and relief programs. 
(2) FUNDS FOR TRAINING AND RESEARCH.—Funds authorized 
to be appropriated under this section may be used and expended 
for programs for improving the detection, investigation, and 
prosecution of economic crime including financial fraud and 
mortgage fraud. Funds allocated under this section may be 
allocated to programs which assist State and local criminal 
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123 STAT. 1621 
PUBLIC LAW 111–21—MAY 20, 2009 
justice agencies to develop, establish, and maintain intelligence- 
focused policing strategies and related information sharing; 
provide training and investigative support services to State 
and local criminal justice agencies to provide such agencies 
with skills and resources needed to investigate and prosecute 
such criminal activities and related criminal activities; provide 
research support, establish partnerships, and provide other 
resources to aid State and local criminal justice agencies to 
prevent, investigate, and prosecute such criminal activities and 
related problems; provide information and research to the gen-
eral public to facilitate the prevention of such criminal activi-
ties; and any other programs specified by the Attorney General 
as furthering the purposes of this Act. 
(g) ADDITIONAL NATURE OF AUTHORIZATIONS; AVAILABILITY.— 
The amounts authorized under this section are in addition to 
amounts otherwise authorized in other Acts and shall remain avail-
able until expended. 
(h) REPORT TO CONGRESS.—Following the final expenditure of 
all funds appropriated pursuant to authorization under this section, 
the Attorney General, in consultation with the United States Postal 
Inspection Service, the Inspector General for the Department of 
Housing and Urban Development, the Secretary of Homeland Secu-
rity, and the Commissioner of the Securities and Exchange Commis-
sion, shall submit a report to Congress identifying— 
(1) the amounts expended under each of subsections (a), 
(b), (c), (d), and (e) and a certification of compliance with 
the requirements listed in subsection (f); and 
(2) the amounts recovered as a result of criminal or civil 
restitution, fines, penalties, and other monetary recoveries 
resulting from criminal, civil, or administrative proceedings 
and settlements undertaken with funds authorized by this Act. 
SEC. 4. CLARIFICATIONS TO THE FALSE CLAIMS ACT TO REFLECT 
THE ORIGINAL INTENT OF THE LAW. 
(a) CLARIFICATION OF THE FALSE CLAIMS ACT.—Section 3729 
of title 31, United States Code, is amended— 
(1) by striking subsection (a) and inserting the following: 
‘‘(a) LIABILITY FOR CERTAIN ACTS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), any person 
who— 
‘‘(A) knowingly presents, or causes to be presented, 
a false or fraudulent claim for payment or approval; 
‘‘(B) knowingly makes, uses, or causes to be made 
or used, a false record or statement material to a false 
or fraudulent claim; 
‘‘(C) conspires to commit a violation of subparagraph 
(A), (B), (D), (E), (F), or (G); 
‘‘(D) has possession, custody, or control of property 
or money used, or to be used, by the Government and 
knowingly delivers, or causes to be delivered, less than 
all of that money or property; 
‘‘(E) is authorized to make or deliver a document certi-
fying receipt of property used, or to be used, by the Govern-
ment and, intending to defraud the Government, makes 
or delivers the receipt without completely knowing that 
the information on the receipt is true; 
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123 STAT. 1622 
PUBLIC LAW 111–21—MAY 20, 2009 
‘‘(F) knowingly buys, or receives as a pledge of an 
obligation or debt, public property from an officer or 
employee of the Government, or a member of the Armed 
Forces, who lawfully may not sell or pledge property; or 
‘‘(G) knowingly makes, uses, or causes to be made 
or used, a false record or statement material to an obliga-
tion to pay or transmit money or property to the Govern-
ment, or knowingly conceals or knowingly and improperly 
avoids or decreases an obligation to pay or transmit money 
or property to the Government, 
is liable to the United States Government for a civil penalty 
of not less than $5,000 and not more than $10,000, as adjusted 
by the Federal Civil Penalties Inflation Adjustment Act of 
1990 (28 U.S.C. 2461 note; Public Law 104–410), plus 3 times 
the amount of damages which the Government sustains because 
of the act of that person. 
‘‘(2) REDUCED DAMAGES.—If the court finds that— 
‘‘(A) the person committing the violation of this sub-
section furnished officials of the United States responsible 
for investigating false claims violations with all information 
known to such person about the violation within 30 days 
after the date on which the defendant first obtained the 
information; 
‘‘(B) such person fully cooperated with any Government 
investigation of such violation; and 
‘‘(C) at the time such person furnished the United 
States with the information about the violation, no criminal 
prosecution, civil action, or administrative action had com-
menced under this title with respect to such violation, 
and the person did not have actual knowledge of the exist-
ence of an investigation into such violation, 
the court may assess not less than 2 times the amount of 
damages which the Government sustains because of the act 
of that person. 
‘‘(3) COSTS OF CIVIL ACTIONS.—A person violating this sub-
section shall also be liable to the United States Government 
for the costs of a civil action brought to recover any such 
penalty or damages.’’; 
(2) by striking subsections (b) and (c) and inserting the 
following: 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) the terms ‘knowing’ and ‘knowingly’— 
‘‘(A) mean that a person, with respect to information— 
‘‘(i) has actual knowledge of the information; 
‘‘(ii) acts in deliberate ignorance of the truth or 
falsity of the information; or 
‘‘(iii) acts in reckless disregard of the truth or 
falsity of the information; and 
‘‘(B) require no proof of specific intent to defraud; 
‘‘(2) the term ‘claim’— 
‘‘(A) means any request or demand, whether under 
a contract or otherwise, for money or property and whether 
or not the United States has title to the money or property, 
that— 
‘‘(i) is presented to an officer, employee, or agent 
of the United States; or 
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123 STAT. 1623 
PUBLIC LAW 111–21—MAY 20, 2009 
‘‘(ii) is made to a contractor, grantee, or other 
recipient, if the money or property is to be spent or 
used on the Government’s behalf or to advance a 
Government program or interest, and if the United 
States Government— 
‘‘(I) provides or has provided any portion of 
the money or property requested or demanded; 
or 
‘‘(II) will reimburse such contractor, grantee, 
or other recipient for any portion of the money 
or property which is requested or demanded; and 
‘‘(B) does not include requests or demands for money 
or property that the Government has paid to an individual 
as compensation for Federal employment or as an income 
subsidy with no restrictions on that individual’s use of 
the money or property; 
‘‘(3) the term ‘obligation’ means an established duty, 
whether or not fixed, arising from an express or implied contrac-
tual, grantor-grantee, or licensor-licensee relationship, from a 
fee-based or similar relationship, from statute or regulation, 
or from the retention of any overpayment; and 
‘‘(4) the term ‘material’ means having a natural tendency 
to influence, or be capable of influencing, the payment or receipt 
of money or property.’’; 
(3) by redesignating subsections (d) and (e) as subsections 
(c) and (d), respectively; and 
(4) in subsection (c), as redesignated, by striking ‘‘subpara-
graphs (A) through (C) of subsection (a)’’ and inserting ‘‘sub-
section (a)(2)’’. 
(b) INTERVENTION BY THE GOVERNMENT.—Section 3731(b) of 
title 31, United States Code, is amended— 
(1) by redesignating subsection (c) as subsection (d); 
(2) by redesignating subsection (d) as subsection (e); and 
(3) by inserting the new subsection (c): 
‘‘(c) If the Government elects to intervene and proceed with 
an action brought under 3730(b), the Government may file its 
own complaint or amend the complaint of a person who has brought 
an action under section 3730(b) to clarify or add detail to the 
claims in which the Government is intervening and to add any 
additional claims with respect to which the Government contends 
it is entitled to relief. For statute of limitations purposes, any 
such Government pleading shall relate back to the filing date of 
the complaint of the person who originally brought the action, 
to the extent that the claim of the Government arises out of the 
conduct, transactions, or occurrences set forth, or attempted to 
be set forth, in the prior complaint of that person.’’. 
(c) CIVIL INVESTIGATIVE DEMANDS.—Section 3733 of title 31, 
United States Code, is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) in the matter preceding subparagraph (A)— 
(I) by inserting ‘‘, or a designee (for purposes 
of this section),’’ after ‘‘Whenever the Attorney 
General’’; and 
(II) by striking ‘‘the Attorney General may, 
before commencing a civil proceeding under section 
3730 or other false claims law,’’ and inserting ‘‘the 
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123 STAT. 1624 
PUBLIC LAW 111–21—MAY 20, 2009 
Attorney General, or a designee, may, before com-
mencing a civil proceeding under section 3730(a) 
or other false claims law, or making an election 
under section 3730(b),’’; and 
(ii) in the matter following subparagraph (D)— 
(I) by striking ‘‘may not delegate’’ and 
inserting ‘‘may delegate’’; and 
(II) by adding at the end the following: ‘‘Any 
information obtained by the Attorney General or 
a designee of the Attorney General under this 
section may be shared with any qui tam relator 
if the Attorney General or designee determine it 
is necessary as part of any false claims act inves-
tigation.’’; and 
(B) in paragraph (2)(G), by striking the second sen-
tence; 
(2) in subsection (i)(2)— 
(A) in subparagraph (B), by striking ‘‘, who is author-
ized for such use under regulations which the Attorney 
General shall issue’’; and 
(B) in subparagraph (C), by striking ‘‘Disclosure of 
information to any such other agency shall be allowed 
only upon application, made by the Attorney General to 
a United States district court, showing substantial need 
for the use of the information by such agency in furtherance 
of its statutory responsibilities.’’; and 
(3) in subsection (l)— 
(A) in paragraph (6), by striking ‘‘and’’ after the semi-
colon; 
(B) in paragraph (7), by striking the period and 
inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(8) the term ‘official use’ means any use that is consistent 
with the law, and the regulations and policies of the Depart-
ment of Justice, including use in connection with internal 
Department of Justice memoranda and reports; communications 
between the Department of Justice and a Federal, State, or 
local government agency, or a contractor of a Federal, State, 
or local government agency, undertaken in furtherance of a 
Department of Justice investigation or prosecution of a case; 
interviews of any qui tam relator or other witness; oral 
examinations; depositions; preparation for and response to civil 
discovery requests; introduction into the record of a case or 
proceeding; applications, motions, memoranda and briefs sub-
mitted to a court or other tribunal; and communications with 
Government investigators, auditors, consultants and experts, 
the counsel of other parties, arbitrators and mediators, con-
cerning an investigation, case or proceeding.’’. 
(d) RELIEF FROM RETALIATORY ACTIONS.—Section 3730(h) of 
title 31, United States Code, is amended to read as follows: 
‘‘(h) RELIEF FROM RETALIATORY ACTIONS.— 
‘‘(1) IN GENERAL.—Any employee, contractor, or agent shall 
be entitled to all relief necessary to make that employee, con-
tractor, or agent whole, if that employee, contractor, or agent 
is discharged, demoted, suspended, threatened, harassed, or 
in any other manner discriminated against in the terms and 
conditions of employment because of lawful acts done by the 
Definition. 
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123 STAT. 1625 
PUBLIC LAW 111–21—MAY 20, 2009 
employee, contractor, or agent on behalf of the employee, con-
tractor, or agent or associated others in furtherance of other 
efforts to stop 1 or more violations of this subchapter. 
‘‘(2) RELIEF.—Relief under paragraph (1) shall include 
reinstatement with the same seniority status that employee, 
contractor, or agent would have had but for the discrimination, 
2 times the amount of back pay, interest on the back pay, 
and compensation for any special damages sustained as a result 
of the discrimination, including litigation costs and reasonable 
attorneys’ fees. An action under this subsection may be brought 
in the appropriate district court of the United States for the 
relief provided in this subsection.’’. 
(e) FALSE CLAIMS JURISDICTION.—Section 3732 of title 31, 
United States Code, is amended by adding at the end the following 
new subsection: 
‘‘(c) SERVICE ON STATE OR LOCAL AUTHORITIES.—With respect 
to any State or local government that is named as a co-plaintiff 
with the United States in an action brought under subsection 
(b), a seal on the action ordered by the court under section 3730(b) 
shall not preclude the Government or the person bringing the 
action from serving the complaint, any other pleadings, or the 
written disclosure of substantially all material evidence and 
information possessed by the person bringing the action on the 
law enforcement authorities that are authorized under the law 
of that State or local government to investigate and prosecute 
such actions on behalf of such governments, except that such seal 
applies to the law enforcement authorities so served to the same 
extent as the seal applies to other parties in the action.’’. 
(f) EFFECTIVE DATE AND APPLICATION.—The amendments made 
by this section shall take effect on the date of enactment of this 
Act and shall apply to conduct on or after the date of enactment, 
except that— 
(1) subparagraph (B) of section 3729(a)(1) of title 31, United 
States Code, as added by subsection (a)(1), shall take effect 
as if enacted on June 7, 2008, and apply to all claims under 
the False Claims Act (31 U.S.C. 3729 et seq.) that are pending 
on or after that date; and 
(2) section 3731(b) of title 31, as amended by subsection 
(b); section 3733, of title 31, as amended by subsection (c); 
and section 3732 of title 31, as amended by subsection (e); 
shall apply to cases pending on the date of enactment. 
SEC. 5. FINANCIAL CRISIS INQUIRY COMMISSION. 
(a) ESTABLISHMENT OF COMMISSION.—There is established in 
the legislative branch the Financial Crisis Inquiry Commission 
(in this section referred to as the ‘‘Commission’’) to examine the 
causes, domestic and global, of the current financial and economic 
crisis in the United States. 
(b) COMPOSITION OF THE COMMISSION.— 
(1) MEMBERS.—The Commission shall be composed of 10 
members, of whom— 
(A) 3 members shall be appointed by the majority 
leader of the Senate, in consultation with relevant Commit-
tees; 
(B) 3 members shall be appointed by the Speaker of 
the House of Representatives, in consultation with relevant 
Committees; 
31 USC 3729 
note. 
Applicability. 
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123 STAT. 1626 
PUBLIC LAW 111–21—MAY 20, 2009 
(C) 2 members shall be appointed by the minority 
leader of the Senate, in consultation with relevant Commit-
tees; and 
(D) 2 members shall be appointed by the minority 
leader of the House of Representatives, in consultation 
with relevant Committees. 
(2) QUALIFICATIONS; LIMITATION.— 
(A) IN GENERAL.—It is the sense of the Congress that 
individuals appointed to the Commission should be promi-
nent United States citizens with national recognition and 
significant depth of experience in such fields as banking, 
regulation of markets, taxation, finance, economics, con-
sumer protection, and housing. 
(B) LIMITATION.—No person who is a member of Con-
gress or an officer or employee of the Federal Government 
or any State or local government may serve as a member 
of the Commission. 
(3) CHAIRPERSON; VICE CHAIRPERSON.— 
(A) IN
GENERAL.—Subject to the requirements of 
subparagraph (B), the Chairperson of the Commission shall 
be selected jointly by the Majority Leader of the Senate 
and the Speaker of the House of Representatives, and 
the Vice Chairperson shall be selected jointly by the 
Minority Leader of the Senate and the Minority Leader 
of the House of Representatives. 
(B) POLITICAL
PARTY
AFFILIATION.—The Chairperson 
and Vice Chairperson of the Commission may not be from 
the same political party. 
(4) MEETINGS, QUORUM; VACANCIES.— 
(A) MEETINGS.— 
(i) INITIAL MEETING.—The initial meeting of the 
Commission shall be as soon as possible after a quorum 
of members have been appointed. 
(ii) SUBSEQUENT
MEETINGS.—After the initial 
meeting of the Commission, the Commission shall meet 
upon the call of the Chairperson or a majority of its 
members. 
(B) QUORUM.—6 members of the Commission shall con-
stitute a quorum. 
(C) VACANCIES.—Any vacancy on the Commission 
shall— 
(i) not affect the powers of the Commission; and 
(ii) be filled in the same manner in which the 
original appointment was made. 
(c) FUNCTIONS
OF
THE COMMISSION.—The functions of the 
Commission are— 
(1) to examine the causes of the current financial and 
economic crisis in the United States, specifically the role of— 
(A) fraud and abuse in the financial sector, including 
fraud and abuse towards consumers in the mortgage sector; 
(B) Federal and State financial regulators, including 
the extent to which they enforced, or failed to enforce 
statutory, regulatory, or supervisory requirements; 
(C) the global imbalance of savings, international cap-
ital flows, and fiscal imbalances of various governments; 
(D) monetary policy and the availability and terms 
of credit; 
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123 STAT. 1627 
PUBLIC LAW 111–21—MAY 20, 2009 
(E) accounting practices, including, mark-to-market 
and fair value rules, and treatment of off-balance sheet 
vehicles; 
(F) tax treatment of financial products and invest-
ments; 
(G) capital requirements and regulations on leverage 
and liquidity, including the capital structures of regulated 
and non-regulated financial entities; 
(H) credit rating agencies in the financial system, 
including, reliance on credit ratings by financial institu-
tions and Federal financial regulators, the use of credit 
ratings in financial regulation, and the use of credit ratings 
in the securitization markets; 
(I) lending practices and securitization, including the 
originate-to-distribute model for extending credit and 
transferring risk; 
(J) affiliations between insured depository institutions 
and securities, insurance, and other types of nonbanking 
companies; 
(K) the concept that certain institutions are ‘‘too-big- 
to-fail’’ and its impact on market expectations; 
(L) corporate governance, including the impact of com-
pany conversions from partnerships to corporations; 
(M) compensation structures; 
(N) changes in compensation for employees of financial 
companies, as compared to compensation for others with 
similar skill sets in the labor market; 
(O) the legal and regulatory structure of the United 
States housing market; 
(P) derivatives and unregulated financial products and 
practices, including credit default swaps; 
(Q) short-selling; 
(R) financial institution reliance on numerical models, 
including risk models and credit ratings; 
(S) the legal and regulatory structure governing finan-
cial institutions, including the extent to which the structure 
creates the opportunity for financial institutions to engage 
in regulatory arbitrage; 
(T) the legal and regulatory structure governing 
investor and mortgagor protection; 
(U) financial institutions and government-sponsored 
enterprises; and 
(V) the quality of due diligence undertaken by financial 
institutions; 
(2) to examine the causes of the collapse of each major 
financial institution that failed (including institutions that were 
acquired to prevent their failure) or was likely to have failed 
if not for the receipt of exceptional Government assistance 
from the Secretary of the Treasury during the period beginning 
in August 2007 through April 2009; 
(3) to submit a report under subsection (h); 
(4) to refer to the Attorney General of the United States 
and any appropriate State attorney general any person that 
the Commission finds may have violated the laws of the United 
States in relation to such crisis; and 
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123 STAT. 1628 
PUBLIC LAW 111–21—MAY 20, 2009 
(5) to build upon the work of other entities, and avoid 
unnecessary duplication, by reviewing the record of the Com-
mittee on Banking, Housing, and Urban Affairs of the Senate, 
the Committee on Financial Services of the House of Represent-
atives, other congressional committees, the Government 
Accountability Office, other legislative panels, and any other 
department, agency, bureau, board, commission, office, inde-
pendent establishment, or instrumentality of the United States 
(to the fullest extent permitted by law) with respect to the 
current financial and economic crisis. 
(d) POWERS OF THE COMMISSION.— 
(1) HEARINGS AND EVIDENCE.—The Commission may, for 
purposes of carrying out this section— 
(A) hold hearings, sit and act at times and places, 
take testimony, receive evidence, and administer oaths; 
and 
(B) require, by subpoena or otherwise, the attendance 
and testimony of witnesses and the production of books, 
records, correspondence, memoranda, papers, and docu-
ments. 
(2) SUBPOENAS.— 
(A) SERVICE.—Subpoenas issued under paragraph 
(1)(B) may be served by any person designated by the 
Commission. 
(B) ENFORCEMENT.— 
(i) IN
GENERAL.—In the case of contumacy or 
failure to obey a subpoena issued under paragraph 
(1)(B), the United States district court for the judicial 
district in which the subpoenaed person resides, is 
served, or may be found, or where the subpoena is 
returnable, may issue an order requiring such person 
to appear at any designated place to testify or to 
produce documentary or other evidence. Any failure 
to obey the order of the court may be punished by 
the court as a contempt of that court. 
(ii) 
ADDITIONAL
ENFORCEMENT.—Sections 
102 
through 104 of the Revised Statutes of the United 
States (2 U.S.C. 192 through 194) shall apply in the 
case of any failure of any witness to comply with 
any subpoena or to testify when summoned under the 
authority of this section. 
(iii) ISSUANCE.—A subpoena may be issued under 
this subsection only— 
(I) by the agreement of the Chairperson and 
the Vice Chairperson; or 
(II) by the affirmative vote of a majority of 
the Commission, including an affirmative vote of 
at least one member appointed under subpara-
graph (C) or (D) of subsection (b)(1), a majority 
being present. 
(3) CONTRACTING.—The Commission may enter into con-
tracts to enable the Commission to discharge its duties under 
this section. 
(4) INFORMATION FROM FEDERAL AGENCIES AND OTHER ENTI-
TIES.— 
(A) IN GENERAL.—The Commission may secure directly 
from any department, agency, bureau, board, commission, 
Applicability. 
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123 STAT. 1629 
PUBLIC LAW 111–21—MAY 20, 2009 
office, independent establishment, or instrumentality of the 
United States any information related to any inquiry of 
the Commission conducted under this section, including 
information of a confidential nature (which the Commission 
shall maintain in a secure manner). Each such department, 
agency, bureau, board, commission, office, independent 
establishment, or instrumentality shall furnish such 
information directly to the Commission upon request. 
(B) OTHER ENTITIES.—It is the sense of the Congress 
that the Commission should seek testimony or information 
from principals and other representatives of government 
agencies and private entities that were significant partici-
pants in the United States and global financial and housing 
markets during the time period examined by the Commis-
sion. 
(5) ADMINISTRATIVE SUPPORT SERVICES.—Upon the request 
of the Commission— 
(A) the Administrator of General Services shall provide 
to the Commission, on a reimbursable basis, the adminis-
trative support services necessary for the Commission to 
carry out its responsibilities under this Act; and 
(B) other Federal departments and agencies may pro-
vide to the Commission any administrative support services 
as may be determined by the head of such department 
or agency to be advisable and authorized by law. 
(6) DONATIONS OF GOODS AND SERVICES.—The Commission 
may accept, use, and dispose of gifts or donations of services 
or property. 
(7) POSTAL SERVICES.—The Commission may use the United 
States mails in the same manner and under the same conditions 
as departments and agencies of the United States. 
(8) POWERS OF SUBCOMMITTEES, MEMBERS, AND AGENTS.— 
Any subcommittee, member, or agent of the Commission may, 
if authorized by the Commission, take any action which the 
Commission is authorized to take by this section. 
(e) STAFF OF THE COMMISSION.— 
(1) DIRECTOR.—The Commission shall have a Director who 
shall be appointed by the Chairperson and the Vice Chair-
person, acting jointly. 
(2) STAFF.—The Chairperson and the Vice Chairperson may 
jointly appoint additional personnel, as may be necessary, to 
enable the Commission to carry out its functions. 
(3) APPLICABILITY OF CERTAIN CIVIL SERVICE LAWS.—The 
Director and staff of the Commission may be appointed without 
regard to the provisions of title 5, United States Code, governing 
appointments in the competitive service, and may be paid with-
out regard to the provisions of chapter 51 and subchapter 
III of chapter 53 of such title relating to classification and 
General Schedule pay rates, except that no rate of pay fixed 
under this paragraph may exceed the equivalent of that payable 
for a position at level V of the Executive Schedule under section 
5316 of title 5, United States Code. Any individual appointed 
under paragraph (1) or (2) shall be treated as an employee 
for purposes of chapters 63, 81, 83, 84, 85, 87, 89, 89A, 89B, 
and 90 of that title. 
(4) DETAILEES.—Any Federal Government employee may 
be detailed to the Commission without reimbursement from 
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123 STAT. 1630 
PUBLIC LAW 111–21—MAY 20, 2009 
the Commission, and such detailee shall retain the rights, 
status, and privileges of his or her regular employment without 
interruption. 
(5) CONSULTANT SERVICES.—The Commission is authorized 
to procure the services of experts and consultants in accordance 
with section 3109 of title 5, United States Code, but at rates 
not to exceed the daily rate paid a person occupying a position 
at level IV of the Executive Schedule under section 5315 of 
title 5, United States Code. 
(f) COMPENSATION AND TRAVEL EXPENSES.— 
(1) COMPENSATION.—Each member of the Commission may 
be compensated at a rate not to exceed the daily equivalent 
of the annual rate of basic pay in effect for a position at 
level IV of the Executive Schedule under section 5315 of title 
5, United States Code, for each day during which that member 
is engaged in the actual performance of the duties of the 
Commission. 
(2) TRAVEL EXPENSES.—While away from their homes or 
regular places of business in the performance of services for 
the Commission, members of the Commission shall be allowed 
travel expenses, including per diem in lieu of subsistence, in 
the same manner as persons employed intermittently in the 
Government service are allowed expenses under section 5703(b) 
of title 5, United States Code. 
(g) NONAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.— 
The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the Commission. 
(h) REPORT
OF
THE COMMISSION; APPEARANCE BEFORE
AND 
CONSULTATIONS WITH CONGRESS.— 
(1) REPORT.—On December 15, 2010, the Commission shall 
submit to the President and to the Congress a report containing 
the findings and conclusions of the Commission on the causes 
of the current financial and economic crisis in the United States. 
(2) INSTITUTION-SPECIFIC
REPORTS
AUTHORIZED.—At the 
discretion of the chairperson of the Commission, the report 
under paragraph (1) may include reports or specific findings 
on any financial institution examined by the Commission under 
subsection (c)(2). 
(3) APPEARANCE BEFORE THE CONGRESS.—The chairperson 
of the Commission shall, not later than 120 days after the 
date of submission of the final reports under paragraph (1), 
appear before the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Financial Services 
of the House of Representatives regarding such reports and 
the findings of the Commission. 
(4) CONSULTATIONS WITH THE CONGRESS.—The Commission 
shall consult with the Committee on Banking, Housing, and 
Urban Affairs of the Senate, the Committee on Financial Serv-
ices of the House of Representatives, and other relevant commit-
tees of the Congress, for purposes of informing the Congress 
on the work of the Commission. 
(i) TERMINATION OF COMMISSION.— 
(1) IN GENERAL.—The Commission, and all the authorities 
of this section, shall terminate 60 days after the date on which 
the final report is submitted under subsection (h). 
(2) ADMINISTRATIVE ACTIVITIES BEFORE TERMINATION.—The 
Commission may use the 60-day period referred to in paragraph 
Deadline. 
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123 STAT. 1631 
PUBLIC LAW 111–21—MAY 20, 2009 
LEGISLATIVE HISTORY—S. 386: 
SENATE REPORTS: No. 111–10 (Comm. on the Judiciary). 
CONGRESSIONAL RECORD, Vol. 155 (2009): 
Apr. 22, 23, 27, 28, considered and passed Senate. 
May 6, considered and passed House, amended. 
May 14, Senate concurred in House amendments with an amendment. 
May 19, House concurred in Senate amendment. 
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2009): 
May 20, Presidential remarks and statement. 
(1) for the purpose of concluding the activities of the Commis-
sion, including providing testimony to committees of the Con-
gress concerning reports of the Commission and disseminating 
the final report submitted under subsection (h). 
(j) AUTHORIZATION OF APPROPRIATION.—There is authorized to 
be appropriated to the Secretary of the Treasury such sums as 
are necessary to cover the costs of the Commission. 
Approved May 20, 2009. 
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