article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Improved Oversight by Financial Inspectors General Act of 2009''. SEC. 2. AMENDMENT TO DEFINITION OF MATERIAL LOSS AND NONMATERIAL LOSSES TO THE DEPOSIT INSURANCE FUND FOR PURPOSES OF INSPECTORS GENERAL REVIEWS. (a) In General.--Section 38(k) of the Federal Deposit Insurance Act (U.S.C. 1831o(k)) is amended-- (1) in paragraph (2), by striking subparagraph (B) and inserting the following new subparagraph: ``(B) Material loss defined.--The term `material loss' means any estimated loss in excess of $200,000,000, occurring after March 31, 2009.''; (2) in that portion of paragraph (4)(A) that precedes clause (i), by striking ``the report'' and inserting ``any reports under this subsection on losses''; (3) by striking paragraph (6); (4) by redesignating paragraph (5) as paragraph (6); and (5) by inserting after paragraph (4) the following new paragraph: ``(5) Losses that are not material.-- ``(A) Semiannual report.--For the 6-month period ending on September 30, 2009, and each 6-month period thereafter, the Inspector General of each Federal banking agency shall-- ``(i) identify losses estimated to be incurred by the Deposit Insurance Fund during that 6-month period with respect to insured depository institutions supervised by such Federal banking agency; ``(ii) for each loss to the Deposit Insurance Fund (as a loss to such Fund is defined in paragraph (2)(A)) that is not a material loss, determine the grounds identified by the Federal banking agency or State bank supervisor under section 11(c)(5) for appointing the Corporation as receiver and whether any unusual circumstances exist that might warrant an in-depth review of the loss; and ``(iii) prepare a written report to the appropriate Federal banking agency and for the Congress on the results of the Inspector General's determinations, including-- ``(I) the identity of any loss that warrants an in-depth review and the reasons why such review is warranted, or if the Inspector General determines that no review is warranted, an explanation of such determination; and ``(II) for each loss identified in subclause (I) that warrants an in-depth review, a date by which such review, and a report on the review prepared in a manner consistent with reports under paragraph (1)(A), will be completed. ``(B) Deadline for semiannual report.--The Inspector General of each Federal banking agency shall-- ``(i) comply with the semiannual report requirements of paragraph (A) expeditiously, and in any event within 90 days after the end of the 6-month period covered by the report; and ``(ii) provide a copy of the report to any Member of Congress upon request.''. (b) Technical and Conforming Amendment.--The heading for subsection (k) of section 38 of the Federal Deposit Insurance Act (U.S.C. 1831o(k)) is amended-- (1) by striking ``Review'' and inserting ``Reviews''; and (2) by striking ``Material Loss'' and inserting ``Losses''. SEC. 3. AMENDMENT TO DEFINITION OF MATERIAL LOSS AND NONMATERIAL LOSSES TO THE NATIONAL CREDIT UNION SHARE INSURANCE FUND FOR PURPOSES OF INSPECTORS GENERAL REVIEWS. (a) In General.--Subsection (j) of section 216 of the Federal Credit Union Act (12 U.S.C. 1790d(j)) is amended to read as follows: ``(j) Reviews Required When Share Insurance Fund Experiences Losses.-- ``(1) In general.--If the Fund incurs a material loss with respect to an insured credit union, the inspector general of the Board shall-- ``(A) make a written report to the Board reviewing the Administration's supervision of the credit union (including the Administration's implementation of this section), which shall-- ``(i) ascertain why the credit union's problems resulted in a material loss to the Fund; and ``(ii) make recommendations for preventing any such loss in the future; and ``(B) provide a copy of the report to-- ``(i) the Comptroller General of the United States; (ii) the Corporation (if the agency is not the Corporation); ``(ii) in the case of a State credit union, the appropriate State supervisor; and ``(iii) upon request by any Member of Congress, to that Member. ``(2) Material loss defined.--For purposes of determining whether the Fund has incurred a material loss with respect to an insured credit union, a loss is material if it exceeds the sum of-- ``(A) $25,000,000; and ``(B) an amount equal to 10 percent of the total assets of the credit union at the time at which the Board initiated assistance under section 1788 of this title or was appointed liquidating agent. ``(3) Public disclosure required.-- ``(A) In general.--The Board shall disclose a report under this subsection upon request under section 552 of title 5 without excising-- ``(i) any portion under section 552(b)(5) of that title; or ``(ii) any information about the insured credit union (other than trade secrets) or paragraph (8) of section 552(b) of that title. ``(B) Exception.--Subparagraph (A) shall not be construed as requiring the agency to disclose the name of any customer of the insured credit union (other than an institution-affiliated party), or information from which such a person's identity could reasonably be ascertained. ``(4) Losses that are not material.-- ``(A) Semiannual report.--For the 6-month period ending on September 30, 2009, and each 6-month period thereafter, the Inspector General of the Board shall-- ``(i) identify losses estimated to be incurred by the Fund during that 6-month period with respect to insured credit unions; ``(ii) for each loss to the Fund that is not a material loss, determine the grounds identified by the Board or the State official having jurisdiction over a State credit union for appointing the Board the liquidating agent for any Federal or State credit union and whether any unusual circumstances exist that might warrant an in-depth review of the loss; and ``(iii) prepare a written report to the Board and for the Congress on the results of the Inspector General's determinations, including-- ``(I) the identity of any loss that warrants an in-depth review and the reasons why such review is warranted, or if the Inspector General determines that no review is warranted, an explanation of such determination; and ``(II) for each loss identified in subclause (I) that warrants an in-depth review, a date by which such review, and a report on the review prepared in a manner consistent with reports under paragraph (1)(A), will be completed. ``(B) Deadline for semiannual report.--The Inspector General of the Board shall-- ``(i) comply with the semiannual report requirements of paragraph (A) expeditiously, and in any event within 90 days after the end of the 6-month period covered by the report; and ``(ii) provide a copy of the report to any Member of Congress upon request. ``(5) GAO review.--The Comptroller General of the United States shall, under such conditions as the Comptroller General determines to be appropriate, review reports made under paragraph (1), including the extent to which the Inspector General of the Board complied with section 8L of the Inspector General Act of 1978 with respect to each such report, and recommend improvements in the supervision of insured credit unions (including the implementation of this section).''. Passed the House of Representatives July 29, 2009. Attest: LORRAINE C. MILLER, Clerk.
summary: Improved Oversight by Financial Inspectors General Act of 2009 - (Sec. 2) Amends the Federal Deposit Insurance Act (FDIA) to revise the meaning of material loss to repeal its definition as an amount exceeding the greater of $25 million or 2% of the institution's total assets at the time the Federal Deposit Insurance Corporation (FDIC) initiated assistance or was appointed receiver. Counts as a material loss any estimated loss in excess of $200 million occurring after March 31, 2009. Requires the Inspector General (IG) of each federal banking agency to report semiannually to the appropriate federal agency and to Congress regarding: (1) losses estimated to be incurred by the Deposit Insurance Fund (DIF) with respect to insured depository institutions the agency supervises; (2) each loss that is not a material loss, the grounds for appointing the FDIC as receiver, and whether any unusual circumstances exist that might warrant an in-depth review of the loss; and (3) the results of the IG's determinations. (Sec. 3) Amends the Federal Credit Union Act (FCUA) to require the IG of the National Credit Union Administration (NCUA) to report to the NCUA Board about any material loss to the National Credit Union Share Insurance Fund (NCUSIF) with respect to an insured credit union regarding: (1) why the credit union's problems resulted in a material loss to the NCUSIF; and (2) how such loss may be prevented in the future. Revises the definition of material loss to the NCUSIF, currently an amount exceeding the sum of $10 million and 10% of the credit union's total assets at the time the NCUA Board initiated assistance or was appointed liquidating agent. Increases the $10 million to $25 million. Requires the IG of the NCUA Board to report semiannually to the Board and Congress regarding: (1) losses estimated to be incurred by the NCUSIF with respect to insured credit unions; (2) each loss that is not a material loss, the grounds for appointing the NCUA Board as liquidating agent for any federal or state credit union, and whether any unusual circumstances exist that might warrant an in-depth review of the loss; and (3) the results of the IG's determinations. Instructs the Comptroller General to: (1) review reports regarding material losses to the NCUSIF, and (2) make recommendations for improvements in the supervision of insured credit unions.