To provide for oversight of a Public-Private Investment Program, and to authorize monies for the Special Inspector General for the Troubled Asset Relief Program to audit and investigate recipients of non-recourse Federal loans under the Public Private Investment Program and the Term Asset Loan Facility.

SA 1038. Mrs. BOXER (for herself and Mr. Reid) submitted an amendment
intended to be proposed by her to the bill S. 896, to prevent mortgage
foreclosures and enhance mortgage credit availability; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. PUBLIC-PRIVATE INVESTMENT PROGRAM; ADDITIONAL
APPROPRIATIONS FOR THE SPECIAL INSPECTOR
GENERAL FOR THE TROUBLED ASSET RELIEF PROGRAM.

(a) Public-Private Investment Program.--
(1) In general.--Any program established by the Federal
Government to create a public-private investment fund shall--
(A) in consultation with the Special Inspector General of
the Trouble Asset Relief Program, impose strict conflict of
interest rules on managers of public-private investment funds
that specifically describe the extent, if any, to which such
managers may conduct transactions involving public-private
investment funds that affect the value of assets--
(i) that are not part of such public-private investment
funds; and
(ii) in which managers or significant investors in such
funds have a direct or indirect financial interest;
(B) require each public-private investment fund to make a
quarterly report to the Secretary of the Treasury that
discloses the 10 largest positions of such fund;
(C) require each manager of a public-private investment
fund to report to the Secretary of the Treasury any holding
or transaction by such manager or a client of such manager in
the same type of asset that is held by the public-private
investment fund;
(D) allow the Special Inspector General of the Troubled
Asset Relief Program, access to all books and records of a
public-private investment fund, including all records of
financial transactions in machine readable form;
(E) require each manager of a public-private investment
fund to retain all books, documents, and records relating to
such public-private investment fund, including electronic
messages;
(F) require each manager of a public-private investment
fund to acknowledge a fiduciary duty to both the public and
private investors in such fund;
(G) require each manager of a public-private investment
fund to develop a robust ethics policy that includes methods
to ensure compliance with such policy;
(H) require investor screening procedures for public-
private investment funds that include ``know your customer''
requirements at least as rigorous as those of a commercial
bank or retail brokerage operation; and
(I) require each manager of a public-private investment
fund to identify for the Secretary of the Treasury each
investor whose interest in the fund totals at least 10
percent, in the aggregate;
(2) Report.--Not later than 45 days after the date of the
establishment of a program described in paragraph (1), the
Special Inspector General of the Troubled Asset Relief
Program shall submit to Congress a report on the
implementation of this section.
(b) Additional Appropriations for the Special Inspector
General of the Troubled Asset Relief Program.--
(1) In general.--Of amounts made available under section
115(a) of the Emergency Economic Stabilization Act of 2008
(Public Law 110-343), $15,000,000 shall be made available to
the Special Inspector General of the Troubled Asset Relief
Program (in this section referred to as the ``Special
Inspector General''), which shall be in addition to amounts
otherwise made available to the Special Inspector General.
(2) Priorities.--In utilizing funds made available under
this section, the Special Inspector General shall prioritize
the performance of audits or investigations of recipients of
non-recourse Federal loans made under the Public Private
Investment Program established by the Secretary of the
Treasury or the Term Asset Loan Facility established by the
Board of Governors of the Federal Reserve System (including
any successor thereto or any other similar program
established by the Secretary or the Board), to the extent
that such priority is consistent with other aspects of the
mission of the Special Inspector General. Such audits or
investigations shall determine the existence of any collusion
between the loan recipient and the seller or originator of
the asset used as loan collateral, or any other conflict of
interest that may have led the loan recipient to deliberately
overstate the value of the asset used as loan collateral.
(c) Definition.--In this section, the term ``public-private
investment fund'' means a financial vehicle that is--
(1) established by the Federal Government to purchase pools
of loans, securities, or assets from a financial institution
described in section 101(a)(1) of the Emergency Economic
Stabilization Act of 2008 (12 U.S.C. 5211(a)(1)); and
(2) funded by a combination of cash or equity from private
investors and funds provided by the Secretary of the
Treasury, the Federal Deposit Insurance Corporation, or the
Board of Governors of the Federal Reserve System.
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