S.Amdt. 3806

TEXT OF AMENDMENTS

SA 3785. Mrs. HUTCHISON (for herself, Ms. Landrieu, Mr. DeMint, Mr.
Crapo, Mr. Bennett, and Mr. Brown of Massachusetts) submitted an
amendment intended to be proposed to amendment SA 3739 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217,
to promote the financial stability of the United States by improving
accountability and transparency in the financial system, to end ``too
big to fail,'' to protect the American taxpayer by ending bailouts, to
protect consumers from abusive financial services practices, and for
other purposes; which was ordered to lie on the table; as follows:

On page 1090, between lines 18 and 19, add the following:

SEC. 974. EXEMPTION FOR SMALLER ISSUERS UNDER THE SARBANES-
OXLEY ACT OF 2002.

(a) Exemption.--Section 404 of the Sarbanes-Oxley Act of
2002 (15 U.S.C. 7262) is amended--
(1) in subsection (b), by striking ``With respect'' and
inserting ``Except as provided in subsection (c), with
respect''; and
(2) by adding at the end the following:
``(c) Exemption for Smaller Issuers.--Subsection (b) shall
not apply with respect to any audit report prepared for an
issuer for which the aggregate worldwide market value of the
voting and nonvoting common equity held by persons that are
not affiliates of the issuer is less than $150,000,000.''.
(b) Study and Report.--
(1) Study.--The Chief Economist of the Commission shall
conduct a study to determine how the Commission could reduce
the burden of complying with section 404(b) of the Sarbanes-
Oxley Act of 2002 (15 U.S.C. 7262) for companies for which
the aggregate worldwide market value of the voting and
nonvoting common equity held by persons that are not
affiliates of the issuer is $150,000,000 or more, and not
more than $700,000,000, while maintaining investor
protections for such companies.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Chief Economist of the Commission
shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a report on the results of
the study conducted under paragraph (1) that includes--
(A) an analysis of the costs and benefits of complying with
section 404(b) of the Sarbanes-Oxley Act of 2002 (15 U.S.C.
7262);
(B) an analysis of whether reducing the compliance burden
for companies described in paragraph (1) or providing a
complete exemption from compliance with such section 404(b)
for such companies would encourage the companies to list on
exchanges in the United States in the initial public
offerings of such companies or otherwise facilitate capital
formation; and
(C) recommendations about whether the exemption under
section 404(c) Sarbanes-Oxley Act of 2002, a added by
subsection (a), should be extended to larger issuers.
______

SA 3786. Ms. CANTWELL (for herself, Mr. Whitehouse, and Mr. Sanders)
submitted an amendment intended to be proposed to amendment SA 3739
proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to
the bill S. 3217, to promote the financial stability of the United
States by improving accountability and transparency in the financial
system, to end ``too big to fail,'' to protect the American taxpayer by
ending bailouts, to protect consumers from abusive financial services
practices, and for other purposes; which was ordered to lie on the
table; as follows:

On page 762, between lines 5 and 6, insert the following:

SEC. ___. ANTIMARKET MANIPULATION AUTHORITY.

(a) Prohibition Regarding Manipulation and False
Information.--Subsection (c) of section 6 of the Commodity
Exchange Act (7 U.S.C. 9, 15) is amended to read as follows:
``(c) Prohibition Regarding Manipulation and False
Information.--
``(1) Prohibition against manipulation.--It shall be
unlawful for any person, directly or indirectly, to use or
employ, or attempt to use or employ, in connection with any
swap, or a contract of sale of any commodity in interstate
commerce, or for future delivery on or subject to the rules
of any registered entity, any manipulative or deceptive
device or contrivance, in contravention of such rules and
regulations as the Commission shall promulgate by not later
than 1 year after the date of enactment of the Restoring
American Financial Stability Act of 2010.
``(A) Special provision for manipulation by false
reporting.--Unlawful manipulation for purposes of this
paragraph shall include, but not be limited to, delivering,
or causing to be delivered for transmission through the mails
or interstate commerce, by any means of communication
whatsoever, a false or misleading or inaccurate report
concerning crop or market information or conditions that
affect or tend to affect the price of any commodity in
interstate commerce, knowing, or acting in reckless disregard
of the fact, that such report is false, misleading or
inaccurate.

[[Page S3101]]

``(B) Effect on other law.--Nothing in this paragraph shall
affect, or be construed to affect, the applicability of
section 9(a)(2).
``(2) Prohibition regarding false information.--It shall be
unlawful for any person to make any false or misleading
statement of a material fact to the Commission, including in
any registration application or any report filed with the
Commission under this Act, or any other information relating
to a swap, or a contract of sale of a commodity, in
interstate commerce, or for future delivery on or subject to
the rules of any registered entity, or to omit to state in
any such statement any material fact that is necessary to
make any statement of a material fact made not misleading in
any material respect, if the person knew, or reasonably
should have known, the statement to be false or misleading.
``(3) Enforcement.--
``(A) Authority of commission.--If the Commission has
reason to believe that any person (other than a registered
entity) is violating or has violated this subsection, or any
other provision of this Act (including any rule, regulation,
or order of the Commission promulgated in accordance with
this subsection or any other provision of this Act), the
Commission may serve upon the person a complaint.
``(B) Contents of complaint.--A complaint under
subparagraph (A) shall--
``(i) contain a description of the charges against the
person that is the subject of the complaint; and
``(ii) have attached or contain a notice of hearing that
specifies the date and location of the hearing regarding the
complaint.
``(C) Hearing.--A hearing described in subparagraph
(B)(ii)--
``(i) shall be held not later than 3 days after service of
the complaint described in subparagraph (A);
``(ii) shall require the person to show cause regarding
why--

``(I) an order should not be made--

``(aa) to prohibit the person from trading on, or subject
to the rules of, any registered entity; and
``(bb) to direct all registered entities to refuse all
privileges to the person until further notice of the
Commission; and

``(II) the registration of the person, if registered with
the Commission in any capacity, should not be suspended or
revoked; and

``(iii) may be held before--

``(I) the Commission; or
``(II) an administrative law judge designated by the
Commission, under which the administrative law judge shall
ensure that all evidence is recorded in written form and
submitted to the Commission.

``(4) Subpoena.--For the purpose of securing effective
enforcement of the provisions of this Act, for the purpose of
any investigation or proceeding under this Act, and for the
purpose of any action taken under section 12(f) of this Act,
any member of the Commission or any Administrative Law Judge
or other officer designated by the Commission (except as
provided in paragraph (6)) may administer oaths and
affirmations, subpoena witnesses, compel their attendance,
take evidence, and require the production of any books,
papers, correspondence, memoranda, or other records that the
Commission deems relevant or material to the inquiry.
``(5) Witnesses.--The attendance of witnesses and the
production of any such records may be required from any place
in the United States, any State, or any foreign country or
jurisdiction at any designated place of hearing.
``(6) Service.--A subpoena issued under this section may be
served upon any person who is not to be found within the
territorial jurisdiction of any court of the United States in
such manner as the Federal Rules of Civil Procedure prescribe
for service of process in a foreign country, except that a
subpoena to be served on a person who is not to be found
within the territorial jurisdiction of any court of the
United States may be issued only on the prior approval of the
Commission.
``(7) Refusal to obey.--In case of contumacy by, or refusal
to obey a subpoena issued to, any person, the Commission may
invoke the aid of any court of the United States within the
jurisdiction in which the investigation or proceeding is
conducted, or where such person resides or transacts
business, in requiring the attendance and testimony of
witnesses and the production of books, papers,
correspondence, memoranda, and other records. Such court may
issue an order requiring such person to appear before the
Commission or member or Administrative Law Judge or other
officer designated by the Commission, there to produce
records, if so ordered, or to give testimony touching the
matter under investigation or in question.
``(8) Failure to obey.--Any failure to obey such order of
the court may be punished by the court as a contempt thereof.
All process in any such case may be served in the judicial
district wherein such person is an inhabitant or transacts
business or wherever such person may be found.
``(9) Evidence.--On the receipt of evidence under paragraph
(3)(C)(iii), the Commission may--
``(A) prohibit the person that is the subject of the
hearing from trading on, or subject to the rules of, any
registered entity and require all registered entities to
refuse the person all privileges on the registered entities
for such period as the Commission may require in the order;
``(B) if the person is registered with the Commission in
any capacity, suspend, for a period not to exceed 180 days,
or revoke, the registration of the person;
``(C) assess such person--
``(i) a civil penalty of not more than an amount equal to
the greater of--

``(I) $140,000; or
``(II) triple the monetary gain to such person for each
such violation; or

``(ii) in any case of manipulation or attempted
manipulation in violation of this subsection or section
9(a)(2), a civil penalty of not more than an amount equal to
the greater of--

``(I) $1,000,000; or
``(II) triple the monetary gain to the person for each such
violation; and

``(D) require restitution to customers of damages
proximately caused by violations of the person.
``(10) Orders.--
``(A) Notice.--The Commission shall provide to a person
described in paragraph (9) and the appropriate governing
board of the registered entity notice of the order described
in paragraph (9) by--
``(i) registered mail;
``(ii) certified mail; or
``(iii) personal delivery.
``(B) Review.--
``(i) In general.--A person described in paragraph (9) may
obtain a review of the order or such other equitable relief
as determined to be appropriate by a court described in
clause (ii).
``(ii) Petition.--To obtain a review or other relief under
clause (i), a person may, not later than 15 days after notice
is given to the person under clause (i), file a written
petition to set aside the order with the United States Court
of Appeals--

``(I) for the circuit in which the petitioner carries out
the business of the petitioner; or
``(II) in the case of an order denying registration, the
circuit in which the principal place of business of the
petitioner is located, as listed on the application for
registration of the petitioner.

``(C) Procedure.--
``(i) Duty of clerk of appropriate court.--The clerk of the
appropriate court under subparagraph (B)(ii) shall transmit
to the Commission a copy of a petition filed under
subparagraph (B)(ii).
``(ii) Duty of commission.--In accordance with section 2112
of title 28, United States Code, the Commission shall file in
the appropriate court described in subparagraph (B)(ii) the
record theretofore made.
``(iii) Jurisdiction of appropriate court.--Upon the filing
of a petition under subparagraph (B)(ii), the appropriate
court described in subparagraph (B)(ii) shall have
jurisdiction to affirm, set aside, or modify the order of the
Commission, and the findings of the Commission as to the
facts, if supported by the weight of evidence, shall in like
manner be conclusive.''.
(b) Cease and Desist Orders, Fines.--Section 6(d) of the
Commodity Exchange Act (7 U.S.C. 13b) is amended to read as
follows:
``(d) If any person (other than a registered entity),
directly or indirectly, is using or employing, or attempting
to use or employ, in connection with a swap, or a contract of
sale of a commodity, in interstate commerce, or for future
delivery on or subject to the rules of any registered entity,
any manipulative or deceptive device or contrivance, in
contravention of such rules and regulations as the Commission
shall promulgate by not later than 1 year after the date of
enactment of the Restoring American Financial Stability Act
of 2010, is violating or has violated any of the provisions
of this Act or of the rules, regulations, or orders of the
Commission thereunder, the Commission may, upon notice and
hearing, and subject to appeal as in other cases provided for
in subsection (c), make and enter an order directing that
such person shall cease and desist therefrom and, if such
person thereafter and after the lapse of the period allowed
for appeal of such order or after the affirmance of such
order, shall fail or refuse to obey or comply with such
order, such person shall be guilty of a misdemeanor and, upon
conviction thereof, shall be fined not more than the higher
of $140,000 or triple the monetary gain to such person, or
imprisoned for not less than six months nor more than one
year, or both, except that if such failure or refusal to obey
or comply with such order involves any offense within
subsection (a) or (b) of section 9 of this Act, such person
shall be guilty of a felony and, upon conviction thereof,
shall be subject to the penalties of said subsection (a) or
(b): Provided, That any such cease and desist order under
this subsection against any respondent in any case of
manipulation shall be issued only in conjunction with an
order issued against such respondent under subsection (c).
Each day during which such failure or refusal to obey or
comply with such order continues shall be deemed a separate
offense.''.
(c) Manipulations; Private Rights of Action.--Section
22(a)(1) of the Commodity Exchange Act (7 U.S.C. 25(a)(1)) is
amended by striking subparagraph (D) and inserting the
following:
``(D) who purchased or sold a contract referred to in
subparagraph (B) hereof if the violation constitutes the use
or employment of, or an attempt to use or employ, in
connection with a swap, or a contract of sale of a commodity,
in interstate commerce, or for future delivery on or subject
to the rules of any registered entity, any manipulative
device or contrivance in contravention of such rules and
regulations as the Commission

[[Page S3102]]

shall promulgate by not later than 1 year after the date of
enactment of the Restoring American Financial Stability Act
of 2010.''.
(d) Effective Date.--The amendments made by this section
shall take effect on the date on which the final rule
promulgated by the Commodity Futures Trading Commission
pursuant to this Act takes effect.
______

SA 3787. Mr. BROWN of Ohio (for himself and Mr. Kaufman) submitted an
amendment intended to be proposed to amendment SA 3739 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217,
to promote the financial stability of the United States by improving
accountability and transparency in the financial system, to end ``too
big to fail'', to protect the American taxpayer by ending bailouts, to
protect consumers from abusive financial services practices, and for
other purposes; which was ordered to lie on the table; as follows:

On page 497, strike line 9 and all that follows through
page 500, line 15, and insert the following:

SEC. 620. CONCENTRATION LIMITS FOR BANK HOLDING COMPANIES AND
FINANCIAL COMPANIES.

(a) Deposit Concentration Limit.--
(1) Amendment.--Section 3 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1842) is amended by striking subsection
(f) and inserting the following:
``(f) Nationwide Concentration Limits.--
``(1) Concentration limit established.--No single bank
holding company may control more than 10 percent of the total
amount of deposits of all insured depository institutions in
the United States.
``(2) Sale or transfer required.--The Board shall require
any bank holding company that the Board determines is in
violation of paragraph (1) to sell or otherwise transfer
assets to an unaffiliated company, to the extent that the
Board determines is necessary to bring the company into
compliance with paragraph (1).''.
(2) Effective date.--The amendment made by this subsection
shall take effect 1 year after the date of enactment of this
Act.
(b) Size Requirements for Bank Holding Companies and
Financial Companies.--
(1) Amendment.--The Bank Holding Company Act of 1956 (12
U.S.C. 1841 et seq.) is amended by adding at the end the
following:

``SEC. 13. LIMITS ON NONDEPOSIT LIABILITIES FOR BANK HOLDING
COMPANIES AND FINANCIAL COMPANIES.

``(a) Definitions.--In this section, the following
definitions shall apply:
``(1) FDIC-assessed deposits.--The term `FDIC-assessed
deposits' means the assessment base of a bank holding
company, as calculated under part 327 of title 12 Code of
Federal Regulations, or any successor thereto.
``(2) Financial company.--The term `financial company'
means any nonbank financial company supervised by the Board.
``(3) Nonbank financial company definitions.--The terms
`foreign nonbank financial company', `nonbank financial
company', and `U.S. nonbank financial company' have the same
meanings as in section 102 of the Restoring American
Financial Stability Act of 2010.
``(4) Non-deposit liabilities.--The term `non-deposit
liabilities' means--
``(A) with respect to a bank holding company--
``(i) the total assets of the banking holding company;
minus
``(ii) the sum of--

``(I) the tier 1 capital of the bank holding company,
taking into account any off-balance-sheet liabilities; and
``(II) the FDIC-assessed deposits of the bank holding
company; and

``(B) with respect to a financial company--
``(i) the total assets of the financial company; minus
``(ii) the tier 1 capital of the financial company, taking
into account any off-balance-sheet liabilities.
``(5) Incorporated terms.--The terms `average total
consolidated assets' and `tier 1 capital' have the meanings
given those terms in part 225 of title 12, Code of Federal
Regulations, or any successor thereto.
``(b) Limit on Nondeposit Liabilities for Bank Holding
Companies.--
``(1) Limits for bank holding companies.--No bank holding
company may control nondeposit liabilities that exceed 2
percent of the annual gross domestic product of the United
States.
``(2) Limits for financial companies.--No financial company
may control nondeposit liabilities that exceed 3 percent of
the annual gross domestic product of the United States.
``(3) Determination of gross domestic product.--For
purposes of this subsection, the annual gross domestic
product of the United States shall be determined using the
average of the annual gross domestic product of the United
States, as calculated by the Bureau of Economic Analysis of
the Department of Commerce, during the 16 calendar quarters
most recently completed at the time of the determination
under paragraph (1).
``(4) Treatment of insurance companies.--
``(A) In general.--Notwithstanding the limits under
paragraphs (1) and (2), the Board may establish a separate
liability limit for a bank holding company or financial
company that the Board determines is primarily engaged in the
business of insurance, if the Board determines that such a
limit is necessary in order to provide for consistent and
equitable treatment of the bank holding company or financial
company.
``(B) Consultation.--In establishing a liability limit
under subparagraph (A), the Board shall consult with the
State insurance regulator for any bank holding company or
financial company described in subparagraph (A) having a
subsidiary that is regulated by a State insurance regulator.
``(5) Treatment of foreign deposits.--The Board may exclude
from the calculation of nondeposit liabilities under this
subsection any foreign or other deposits that are not FDIC-
assessed deposits, if the Board determines that such action
is necessary to ensure the consistent and equitable treatment
of institutions with international operations.
``(c) Prompt Corrective Action.--
``(1) Authorities.--The Board shall require a bank holding
company or financial company that violates subsection (a) to
comply with the limit under subsection (a) by--
``(A) selling or otherwise transferring assets or off-
balance-sheet items to unaffiliated firms;
``(B) terminating 1 or more activities of the bank holding
company or financial company; or
``(C) imposing conditions on the manner in which the bank
holding company or financial company conducts an activity of
the bank holding company or financial company.
``(2) Corrective action plan.--Not later than 60 days after
the Board determines that a bank holding company or financial
holding company has violated subsection (a), the Board shall
submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a plan detailing the manner
by which the bank holding company or financial company will
be brought into compliance with subsection (a).
``(3) Reports to congress.--
``(A) Written reports.--At the end of each 60-day period
following the date on which the Board submits a plan under
paragraph (1) during which a bank holding company or
financial company remains in violation of subsection (a), the
Board shall submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a report on the
compliance of the bank holding company or financial holding
company with the plan.
``(B) Testimony.--At the end of each 120-day period
following the date on which the Board submits a plan under
paragraph (1) during which a bank holding company or
financial company remains in violation of subsection (a), the
Board shall testify before the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives with
respect to the compliance of the bank holding company or
financial holding company with the plan.

``SEC. 14. CAPITAL ASSESSMENT PROGRAM.

``(a) Annual Capital Assessment Required.--Not later than 1
year after the date of enactment of the Restoring American
Financial Stability Act of 2010, and annually thereafter, the
Board shall conduct a capital assessment of each bank holding
company and financial company, to estimate the losses,
revenues, and reserve needs for the bank holding company or
financial company.
``(b) Report.--The Board shall submit an annual report on
the results of the capital assessments under subsection (a)
to the Secretary of the Treasury, the Committee on Banking,
Housing, and Urban Affairs of the Senate, and the Committee
on Financial Services of the House of Representatives.''.
(2) Effective date.--The amendment made by this subsection
shall take effect 3 years after the date of enactment of this
Act.
______

SA 3788. Mr. KOHL submitted an amendment intended to be proposed to
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability
of the United States by improving accountability and transparency in
the financial system, to end ``too big to fail,'' to protect the
American taxpayer by ending bailouts, to protect consumers from abusive
financial services practices, and for other purposes; which was ordered
to lie on the table; as follows:

At the end of the amendment, insert the following:

TITLE ___--DISCOUNT PRICING CONSUMER PROTECTION ACT

SEC. ___. DISCOUNT PRICING CONSUMER PROTECTION ACT.

(a) Short Title.--This section may be cited as the
``Discount Pricing Consumer Protection Act''.
(b) Prohibition on Vertical Price Fixing.--
(1) Amendment to the sherman act.--Section 1 of the Sherman
Act (15 U.S.C. 1) is amended by adding after the first
sentence the following: ``Any contract, combination,
conspiracy or agreement setting a minimum price below which a
product or service cannot be sold by a retailer, wholesaler,
or distributor shall violate this Act.''.

[[Page S3103]]

(2) Effective date.--The amendment made by paragraph (1)
shall take effect 90 days after the date of enactment of this
Act.
______

SA 3789. Mr. BROWNBACK (for himself and Mr. Bond) submitted an
amendment intended to be proposed to amendment SA 3739 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217,
to promote the financial stability of the United States by improving
accountability and transparency in the financial system, to end ``too
big to fail,'' to protect the American taxpayer by ending bailouts, to
protect consumers from abusive financial services practices, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle B of title X, add the following:

SEC. 1030. EXCLUSION FOR AUTO DEALERS.

(a) In General.--The Director and the Bureau may not
exercise any rulemaking, supervisory, enforcement, or any
other authority, including authority to order assessments
over a motor vehicle dealer that is primarily engaged in the
sale and servicing of motor vehicles, the leasing and
servicing of motor vehicles, or both.
(b) Certain Functions Excepted.--The provisions of
subsection (a) shall not apply to any person, to the extent
that such person--
(1) provides consumers with any services related to
residential mortgages; or
(2) operates a line of business that involves the extension
of retail credit or retail leases involving motor vehicles,
and in which--
(A) the extension of retail credit or retail leases is
routinely provided directly to consumers; and
(B) the contract governing such extension of retail credit
or retail leases is not routinely assigned to a third-party
finance or leasing source.
(c) No Impact on Prior Authority.--Nothing in this section
shall be construed to modify, limit, or supersede the
rulemaking or enforcement authority over motor vehicle
dealers that could be exercised by any Federal department or
agency on the day before the date of enactment of this Act.
(d) No Transfer of Certain Authority.--Notwithstanding any
other provision of law, the consumer financial protection
functions of the Board of Governors and the Federal Trade
Commission shall not be transferred to the Director or the
Bureau to the extent such functions are with respect to a
person described under subsection (a).
(e) Definitions.--For purposes of this section, the
following definitions shall apply:
(1) Motor vehicle.--The term ``motor vehicle'' means--
(A) any self-propelled vehicle designed for transporting
persons or property on a street, highway, or other road;
(B) recreational boats and marine equipment;
(C) motorcycles;
(D) motor homes, recreational vehicle trailers, and slide-
in campers, as those terms are defined in sections 571.3 and
575.103 (d) of title 49, Code of Federal Regulations, or any
successor thereto; and
(E) other vehicles that are titled and sold through
dealers.
(2) Motor vehicle dealer.--The term ``motor vehicle
dealer'' means any person or resident in the United States,
or any territory of the United States, who is licensed by a
State, a territory of the United States, or the District of
Columbia to engage in the sale of motor vehicles.
______

SA 3790. Mr. BROWNBACK (for himself and Mr. Bond) submitted an
amendment intended to be proposed to amendment SA 3739 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217,
to promote the financial stability of the United States by improving
accountability and transparency in the financial system, to end ``too
big to fail,'' to protect the American taxpayer by ending bailouts, to
protect consumers from abusive financial services practices, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle B of title X, add the following:

SEC. 1030. EXCLUSION FOR AUTO DEALERS.

(a) In General.--The Director and the Bureau may not
exercise any rulemaking, supervisory, enforcement, or any
other authority, including authority to order assessments
over a motor vehicle dealer that is primarily engaged in the
sale and servicing of motor vehicles, the leasing and
servicing of motor vehicles, or both.
(b) Certain Functions Excepted.--The provisions of
subsection (a) shall not apply to any person, to the extent
that such person--
(1) provides consumers with any services related to
residential mortgages; or
(2) operates a line of business that involves the extension
of retail credit or retail leases involving motor vehicles,
and in which--
(A) the extension of retail credit or retail leases is
routinely provided directly to consumers; and
(B) the contract governing such extension of retail credit
or retail leases is not routinely assigned to a third-party
finance or leasing source.
(c) No Impact on Prior Authority.--Nothing in this section
shall be construed to modify, limit, or supersede the
rulemaking or enforcement authority over motor vehicle
dealers that could be exercised by any Federal department or
agency on the day before the date of enactment of this Act.
(d) No Transfer of Certain Authority.--Notwithstanding any
other provision of law, the consumer financial protection
functions of the Board of Governors and the Federal Trade
Commission shall not be transferred to the Director or the
Bureau to the extent such functions are with respect to a
person described under subsection (a).
(e) Definitions.--For purposes of this section, the
following definitions shall apply:
(1) Motor vehicle.--The term ``motor vehicle'' means any
self-propelled vehicle designed for transporting persons or
property on a street, highway, or other road.
(2) Motor vehicle dealer.--The term ``motor vehicle
dealer'' means any person resident in the United States or
any territory of the United States, licensed by a State, a
territory of the United States, or the District of Columbia,
to engage in the sale of motor vehicles.
______

SA 3791. Mr. BROWNBACK (for himself, Mr. Feingold, Mr. Durbin, Mr.
Specter, and Mr. Brown of Ohio) submitted an amendment intended to be
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the
financial stability of the United States by improving accountability
and transparency in the financial system, to end ``too big to fail,''
to protect the American taxpayer by ending bailouts, to protect
consumers from abusive financial services practices, and for other
purposes; which was ordered to lie on the table; as follows:

On page 1565, after line 23, add the following:

TITLE XIII--CONGO CONFLICT MINERALS

SEC. 1301. DISCLOSURE TO SECURITIES AND EXCHANGE COMMISSION
RELATING TO COLUMBITE-TANTALITE, CASSITERITE,
GOLD, AND WOLFRAMITE ORIGINATING IN DEMOCRATIC
REPUBLIC OF CONGO.

Section 13 of the Securities Exchange Act of 1934 (15
U.S.C. 78m), as amended by section 763 of this Act, is
further amended by adding at the end the following new
subsection:
``(o) Disclosures to Commission Relating to Columbite-
Tantalite, Cassiterite, Gold, and Wolframite Originating in
Democratic Republic of Congo.--
``(1) In general.--Not later than 180 days after the date
of the enactment of this subsection, the Commission shall
promulgate rules requiring any person described in paragraph
(2)--
``(A) to disclose annually to the Commission in a report--
``(i) whether the columbite-tantalite, cassiterite, gold,
or wolframite that was necessary as described in paragraph
(2)(A)(ii) in the year for which such report is submitted
originated or may have originated in the Democratic Republic
of Congo or an adjoining country; and
``(ii) a description of the measures taken by the person,
which may include an independent audit, to exercise due
diligence on the source and chain of custody of such
columbite-tantalite, cassiterite, gold, or wolframite, or
derivatives of such minerals, in order to ensure that the
activities of such person that involve such minerals or
derivatives did not directly or indirectly finance or benefit
armed groups in the Democratic Republic of Congo or an
adjoining country; and
``(B) make the information disclosed under subparagraph (A)
available to the public on the Internet website of the
person.
``(2) Person described.--
``(A) In general.--A person is described in this paragraph
if--
``(i) the person is required to file reports to the
Commission under subsection (a)(2); and
``(ii) columbite-tantalite, cassiterite, gold, or
wolframite is necessary to the functionality or production of
a product of such person.
``(B) Derivatives.--For purposes of this paragraph, if a
derivative of a mineral is necessary to the functionality or
production of a product of a person, such mineral shall also
be considered material to the functionality or production of
a product of the person.
``(3) Revisions and waivers.--The Commission shall revise
or temporarily waive the requirements described in paragraph
(1) if the President determines that such revision or waiver
is in the public interest.
``(4) Termination of disclosure requirements.--
``(A) In general.--Except as provided in subparagraph (B),
the requirements of paragraph (1) shall terminate on the date
that is 5 years after the date of the enactment of this
subsection.
``(B) Extension by secretary of state.--The date described
in subparagraph (A) shall be extended by 1 year for each year
in which the Secretary of State certifies that armed parties
to the ongoing armed conflict in the Democratic Republic of
Congo or adjoining countries continue to be directly involved
and benefitting from commercial activity involving columbite-
tantalite, cassiterite, gold, or wolframite.

[[Page S3104]]

``(5) Adjoining country defined.--In this subsection, the
term `adjoining country', with respect to the Democratic
Republic of Congo, means a country that shares an
internationally recognized border with the Democratic
Republic of Congo.''.

SEC. 1302. REPORT.

Not later than 2 years after the date of the enactment of
this Act, the Comptroller General of the United States shall
submit to Congress a report that includes the following:
(1) An assessment of the effectiveness of section 13(o) of
the Securities Exchange Act of 1934, as added by section
1301, in promoting peace and security in the eastern
Democratic Republic of Congo.
(2) A description of the problems, if any, encountered by
the Securities and Exchange Commission in carrying out the
provisions of such section 13(o).
(3) A description of the adverse impacts of carrying out
the provisions of such section 13(o), if any, on communities
in the eastern Democratic Republic of Congo.
(4) Recommendations for legislative or regulatory actions
that can be taken--
(A) to improve the effectiveness of the provisions of such
section 13(o) to promote peace and security in the eastern
Democratic Republic of Congo;
(B) to resolve the problems described pursuant to paragraph
(2), if any; and
(C) to mitigate the adverse impacts described pursuant
paragraph (3), if any.
______

SA 3792. Mrs. BOXER submitted an amendment intended to be proposed to
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability
of the United States by improving accountability and transparency in
the financial system, to end ``too big to fail,'' to protect the
American taxpayer by ending bailouts, to protect consumers from abusive
financial services practices, and for other purposes; which was ordered
to lie on the table; as follows:

At the end of title VII, add the following:

Subtitle C--Fiduciary Duty

SEC. 781. SECURITIES EXCHANGE ACT.

The Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.), as amended by this Act, is further amended by
inserting after section 10D, the following:

``SEC. 10E. FIDUCIARY DUTY.

``(a) In General.--Each financial services provider shall
be subject to a fiduciary duty, the obligations of which
shall depend upon the particular facts and circumstances, to
any covered client with respect to any individualized advice
or individualized recommendation provided, directly or
indirectly, to such client in connection with any transaction
involving the purchase or sale of--
``(1) a security, as defined in section 2(a)(1) of the
Securities Act of 1933 (15 U.S.C. 77b(a)(1));
``(2) any CEA-regulated financial instrument; or
``(3) any financial instrument, the value of which is
derived from a security, CEA-regulated financial instrument,
or other financial instrument.
``(b) Enforcement.--This section shall be enforced--
``(1) as to persons who are subject to the jurisdiction of
a Federal functional regulator--
``(A) by that regulator in Federal courts;
``(B) by the office of the Attorney General of the United
States in Federal courts; or
``(C) by State attorneys general or State administrative
agencies in State courts; and
``(2) as to persons who are not described in paragraph
(1)--
``(A) by the Securities and Exchange Commission or the
Commodity Futures Trading Commission in Federal courts;
``(B) by the office of the Attorney General of the United
States in Federal courts; or
``(C) by State attorneys general or State administrative
agencies in State courts.
``(c) Authority to Define Duty.--As to persons who are
subject to the jurisdiction of a Federal functional
regulator, that regulator may, by rule, define and clarify
the fiduciary duty referred to in subsection (a) with respect
to such persons.
``(d) Limitation.--The fiduciary duty referred to in
subsection (a) shall not apply to advice that is subject to
the fiduciary duty under section 404(a) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)) in
connection with a relationship that is subject to that
section.
``(e) Definitions.--For purposes of this section--
``(1) the term `financial services provider' means any
person who, for compensation, is in the business of providing
advice regarding, creating, underwriting, buying, selling,
effecting transactions in or dealing in the financial
instruments described in subparagraphs (1), (2), or (3) of
subsection (a);
``(2) the term `individualized' means any advice or
recommendation that reflects the particular needs or
circumstances of the covered client to which it is provided;
``(3) the term `covered client' means--
``(A) any pension plan as defined in section 3(2)(A) of the
Employee Retirement and Income Security Act of 1974 (29
U.S.C. 1002(2)(A));
``(B) any employee benefit plan described under paragraph
(1) or (3) of section 4(b) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1003(b)(1), (3)); and
``(C) any State and any county, municipality, political
subdivision, agency or instrumentality of a State and any
Federal agency or instrumentality thereof;
``(4) the term `CEA-regulated financial instrument' means
any financial instrument regulated by the Commodity Futures
Trading Commission or under the Commodity Exchange Act (7
U.S.C. 1 et seq.); and
``(5) the term `Federal functional regulator' means--
``(A) the Board of Governors of the Federal Reserve System;
``(B) the Office of the Comptroller of the Currency;
``(C) the Board of Directors of the Federal Deposit
Insurance Corporation;
``(D) the National Credit Union Administration;
``(E) the Securities and Exchange Commission;
``(F) the Commodity Futures Trading Commission;
``(G) the Director of the Federal Housing Finance Agency;
and
``(H) the Bureau of Consumer Financial Protection.''.

SEC. 782. COMMODITY EXCHANGE ACT.

Section 6b of the Commodity Exchange Act (7 U.S.C. 6b) is
amended by adding at the end the following:
``(e) Fiduciary Duty.--
``(1) In general.--A financial services provider shall be
subject to a fiduciary duty, the obligations of which shall
depend upon the particular facts and circumstances, to any
covered client with respect to any individualized advice or
individualized recommendation provided, directly or
indirectly, to such client in connection with any transaction
involving the purchase or sale of--
``(A) a security, as defined in section 2(a)(1) of the
Securities Act of 1933 (15 U.S.C. 77b(a)(1));
``(B) any CEA-regulated financial instrument; or
``(C) any financial instrument the value of which is
derived from a security, CEA-regulated financial instrument,
or other financial instrument.
``(2) Enforcement.--This section shall be enforced--
``(A) as to persons who are subject to the jurisdiction of
a Federal functional regulator--
``(i) by that regulator in Federal courts;
``(ii) by the office the Attorney General of the United
States in Federal courts; or
``(iii) by State attorneys general or State administrative
agencies in State courts; and
``(B) as to other persons--
``(i) by the Securities and Exchange Commission or the
Commodity Futures Trading Commission in Federal courts;
``(ii) by the office the Attorney General of the United
State in Federal courts; or
``(iii) by State attorneys general or State administrative
agencies in State courts.
``(3) Authority to define duty.--As to persons who are
subject to the jurisdiction of a Federal functional
regulator, that regulator may, by rule, define and clarify
the fiduciary duty referred to in paragraph (1) with respect
to such persons.
``(4) Limitation.--The fiduciary duty referred to in
paragraph (1) shall not apply to advice that is subject to
the fiduciary duty under section 404(a) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)) in
connection with a relationship that is subject to that
section.
``(5) Definitions.--For purposes of this subsection--
``(A) the term `financial services provider' means any
person who, for compensation, engages in the business of
providing advice regarding, creating, underwriting, buying,
selling, effecting transactions in or dealing in the
financial instruments described in subparagraphs (A), (B), or
(C) of paragraph (1);
``(B) the term `individualized' means any advice or
recommendation that reflects the particular needs or
circumstances of the covered client to which it is provided;
``(C) the term `covered client' means--
``(i) any pension plan as defined in section 3(2)(A) of the
Employee Retirement and Income Security Act of 1974 (29
U.S.C. 1002(2)(A);
``(ii) any employee benefit plan described under paragraph
(1) or (3) of section 4(b) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1003(b)(1), (3)); and
``(iii) any State and any county, municipality, political
subdivision, agency or instrumentality of a State and any
Federal agency or instrumentality thereof;
``(D) the term `CEA-regulated financial instrument' means
any financial instrument regulated by the Commission or under
this Act; and
``(E) the term `Federal functional regulator' means--
``(i) the Board of Governors of the Federal Reserve System;
``(ii) the Office of the Comptroller of the Currency;
``(iii) the Board of Directors of the Federal Deposit
Insurance Corporation;
``(iv) the National Credit Union Administration;
``(v) the Securities and Exchange Commission;
``(vi) the Commodity Futures Trading Commission;
``(vii) the Director of the Federal Housing Finance Agency;
and
``(viii) the Bureau of Consumer Financial Protection.''.

[[Page S3105]]

______

SA 3793. Mrs. McCASKILL submitted an amendment intended to be
proposed by her to the bill S. 3217, to promote the financial stability
of the United States by improving accountability and transparency in
the financial system, to end ``too big to fail,'' to protect the
American taxpayer by ending bailouts, to protect consumers from abusive
financial services practices, and for other purposes; which was ordered
to lie on the table; as follows:

At the end of subtitle A of title I, insert the following:

SEC. 122. ADDITIONAL OVERSIGHT OF FINANCIAL REGULATORY
SYSTEM.

(a) Council of Inspectors General on Financial Oversight.--
(1) Establishment and membership.--There is established a
Council of Inspectors General on Financial Oversight (in this
section referred to as the ``Council of Inspectors General'')
chaired by the Inspector General of the Department of the
Treasury and composed of the inspectors general of the
following:
(A) The Board of Governors of the Federal Reserve System.
(B) The Commodity Futures Trading Commission.
(C) The Department of Housing and Urban Development.
(D) The Department of the Treasury.
(E) The Federal Deposit Insurance Corporation.
(F) The Federal Housing Finance Agency.
(G) The National Credit Union Administration.
(H) The Securities and Exchange Commission.
(I) The Troubled Asset Relief Program (until the
termination of the authority of the Special Inspector General
for such program under section 121(h) of the Emergency
Economic Stabilization Act of 2008 (12 U.S.C. 5231(h))).
(2) Duties.--
(A) Meetings.--The Council of Inspectors General shall meet
not less than once each quarter, or more frequently if the
chair considers it appropriate, to facilitate the sharing of
information among inspectors general and to discuss the
ongoing work of each inspector general who is a member of the
Council of Inspectors General, with a focus on concerns that
may apply to the broader financial sector and ways to improve
financial oversight.
(B) Annual report.--Each year the Council of Inspectors
General shall submit to the Council and to Congress a report
including--
(i) for each inspector general who is a member of the
Council of Inspectors General, a section within the exclusive
editorial control of such inspector general that highlights
the concerns and recommendations of such inspector general in
such inspector general's ongoing and completed work, with a
focus on issues that may apply to the broader financial
sector; and
(ii) a summary of the general observations of the Council
of Inspectors General based on the views expressed by each
inspector general as required by clause (i), with a focus on
measures that should be taken to improve financial oversight.
(3) Council of inspectors general working groups.--
(A) Working groups to evaluate council.--
(i) Convening a working group.--The Council of Inspectors
General may, by majority vote, convene a Council of
Inspectors General Working Group to evaluate the
effectiveness and internal operations of the Council.
(ii) Personnel and resources.--The inspectors general who
are members of the Council of Inspectors General may detail
staff and resources to a Council of Inspectors General
Working Group established under this subparagraph to enable
it to carry out its duties.
(iii) Reports.--A Council of Inspectors General Working
Group established under this subparagraph shall submit
regular reports to the Council and to Congress on its
evaluations pursuant to this subparagraph.
(B) Working groups for financial companies undergoing
resolution.--
(i) Convening a working group.--The Council of Inspectors
General shall convene a Council of Inspectors General Working
Group for each financial company for which the Federal
Deposit Insurance Corporation is appointed as receiver under
section 202.
(ii) Personnel and resources.--The inspectors general who
are members of the Council of Inspectors General may detail
staff and resources to a Council of Inspectors General
Working Group established under this subparagraph to enable
it to carry out its duties.
(iii) Reports.--Not later than 270 days after the
appointment of the Federal Deposit Insurance Corporation as
receiver for the financial company for which a Council of
Inspectors General Working Group is convened under clause
(i), such Working Group shall submit to the primary financial
regulatory agency and to Congress a report that includes--

(I) the reasons for such financial company's failure;
(II) the reasons for the appointment of the Federal Deposit
Insurance Corporation as receiver for such financial company;
and
(III) recommendations for preventing future failures of
financial companies.

(b) Response to Report by Council.--The Council shall
respond to the concerns raised in the report of the Council
of Inspectors General under subsection (a)(2)(B) for such
year.
______

SA 3794. Mr. LEAHY (for himself, Mr. Grassley, Mr. Specter, and Mr.
Kaufman) submitted an amendment intended to be proposed by him to the
bill S. 3217, to promote the financial stability of the United States
by improving accountability and transparency in the financial system,
to end ``too big to fail,'' to protect the American taxpayer by ending
bailouts, to protect consumers from abusive financial services
practices, and for other purposes; which was ordered to lie on the
table; as follows:

At the appropriate place, insert the following:

SEC. ___. FINANCIAL FRAUD PROVISIONS.

(a) Sentencing Guidelines.--
(1) Securities fraud.--
(A) Directive.--Pursuant to its authority under section 994
of title 28, United States Code, and in accordance with this
paragraph, the United States Sentencing Commission shall
review and amend the Federal Sentencing Guidelines and policy
statements applicable to persons convicted of offenses
relating to securities fraud or any other similar provision
of law, in order to reflect the intent of Congress that
penalties for the offenses be increased in comparison to
those provided on the date of enactment of this Act under the
guidelines and policy statements, and appropriately account
for the potential and actual harm to the public and the
financial markets from the offenses.
(B) Requirements.--In amending the Federal Sentencing
Guidelines and policy statements under subparagraph (A), the
United States Sentencing Commission shall--
(i) ensure that the guidelines and policy statements,
particularly section 2B1.1(b)(14) and section 2B1.1(b)(17)
(and any successors thereto), reflect--

(I) the serious nature of the offenses described in
subparagraph (A);
(II) the need for an effective deterrent and appropriate
punishment to prevent the offenses; and
(III) the effectiveness of incarceration in furthering the
objectives described in subclauses (I) and (II);

(ii) consider the extent to which the guidelines
appropriately account for the potential and actual harm to
the public and the financial markets resulting from the
offenses;
(iii) ensure reasonable consistency with other relevant
directives and guidelines and Federal statutes;
(iv) make any necessary conforming changes to guidelines;
and
(v) ensure that the guidelines adequately meet the purposes
of sentencing, as set forth in section 3553(a)(2) of title
18, United States Code.
(2) Financial institution fraud.--
(A) Directive.--Pursuant to its authority under section 994
of title 28, United States Code, and in accordance with this
paragraph, the United States Sentencing Commission shall
review and amend the Federal Sentencing Guidelines and policy
statements applicable to persons convicted of fraud offenses
relating to financial institutions or federally related
mortgage loans and any other similar provisions of law, to
reflect the intent of Congress that the penalties for the
offenses be increased in comparison to those provided on the
date of enactment of this Act under the guidelines and policy
statements and to ensure a term of imprisonment for offenders
involved in substantial bank frauds or other frauds relating
to financial institutions.
(B) Requirements.--In amending the Federal Sentencing
Guidelines and policy statements under subparagraph (A), the
United States Sentencing Commission shall--
(i) ensure that the guidelines and policy statements
reflect--

(I) the serious nature of the offenses described in
subparagraph (A);
(II) the need for an effective deterrent and appropriate
punishment to prevent the offenses; and
(III) the effectiveness of incarceration in furthering the
objectives described in subclauses (I) and (II);

(ii) consider the extent to which the guidelines
appropriately account for the potential and actual harm to
the public and the financial markets resulting from the
offenses;
(iii) ensure reasonable consistency with other relevant
directives and guidelines and Federal statutes;
(iv) make any necessary conforming changes to guidelines;
and
(v) ensure that the guidelines adequately meet the purposes
of sentencing, as set forth in section 3553(a)(2) of title
18, United States Code.
(b) Extension of Statute of Limitations for Securities
Fraud Violations.--
(1) In general.--Chapter 213 of title 18, United States
Code, is amended by adding at the end the following:

``Sec. 3301. Securities fraud offenses

``(a) Definition.--In this section, the term `securities
fraud offense' means a violation of, or a conspiracy or an
attempt to violate--
``(1) section 1348;
``(2) section 32(a) of the Securities Exchange Act of 1934
(15 U.S.C. 78ff(a));
``(3) section 24 of the Securities Act of 1933 (15 U.S.C.
77x);

[[Page S3106]]

``(4) section 217 of the Investment Advisers Act of 1940
(15 U.S.C. 80b-17);
``(5) section 49 of the Investment Company Act of 1940 (15
U.S.C. 80a-48); or
``(6) section 325 of the Trust Indenture Act of 1939 (15
U.S.C. 77yyy).
``(b) Limitation.--No person shall be prosecuted, tried, or
punished for a securities fraud offense, unless the
indictment is found or the information is instituted within 6
years after the commission of the offense.''.
(2) Technical and conforming amendment.--The table of
sections for chapter 213 of title 18, United States Code, is
amended by adding at the end the following:

``3301. Securities fraud offenses.''.

(c) False Claims and International Money Laundering.--
(1) Amendments to the false claims act relating to
limitations on actions.--Section 3730(h) of title 31, United
States Code, is amended--
(A) in paragraph (1), by striking ``or agent on behalf of
the employee, contractor, or agent or associated others in
furtherance of other efforts to stop 1 or more violations of
this subchapter'' and inserting ``agent or associated others
in furtherance of an action under this section or other
efforts to stop 1 or more violations of this subchapter'';
and
(B) by adding at the end the following:
``(3) Limitation on bringing civil action.--A civil action
under this subsection may not be brought more than 3 years
after the date when the retaliation occurred.''.
(2) Amendments to the false claims act relating to awards
to qui tam plaintiffs.--Section 3730(d)(1) of title 31,
United States Code, is amended, in the second sentence, by
striking ``in a criminal, civil, or administrative hearing,
in a congressional, administrative, or Government Accounting
Office report, hearing, audit, or investigation, or from the
news media,'' and inserting ``in a Federal criminal, civil or
administrative hearing in which the Government or its agent
is a party, in a congressional, Government Accountability
Office, or other Federal audit, report, hearing or
investigation, or in the news media,''.
(3) Application of the international money laundering
statute to tax evasion.--Section 1956(a)(2)(A) of title 18,
United States Code, is amended by--
(A) inserting ``(i)'' before ``with the intent to
promote''; and
(B) adding at the end the following:
``(ii) with the intent to engage in conduct constituting a
violation of section 7201 or 7206 of the Internal Revenue
Code of 1986; or''.
(d) Promoting Criminal Accountability.--
(1) Definitions.--In this subsection--
(A) the terms ``Bureau'' and ``Federal consumer financial
law'' have the meanings given those terms in section 1002;
and
(B) the term ``civil investigative demand'' has the meaning
given that term in section 1051.
(2) Review of civil investigative demands by attorney
general.--
(A) In general.--Notwithstanding any other provision of
this Act, the Bureau may not issue a civil investigative
demand unless--
(i) the Bureau consults with the Attorney General of the
United States regarding the civil investigative demand; and
(ii) the Attorney General determines that issuing the civil
investigative demand would be consistent with the guidelines
issued under subparagraph (C).
(B) Period for review.--If the Attorney General has not
made a determination described in subparagraph (A)(ii) as of
the date that is 45 days after the date on which the Attorney
General receives a request to issue a civil investigative
demand, the Attorney General shall be deemed to have
determined that issuing the civil investigative demand would
be consistent with the guidelines issued under subparagraph
(C).
(C) Guidelines.--
(i) In general.--Not later than 180 days after the date of
enactment of this Act, the Attorney General, in consultation
with the Bureau, shall promulgate guidelines for parallel
proceedings involving the Federal consumer financial laws.
(ii) Considerations.--In promulgating guidelines under this
subparagraph, the Attorney General and the Bureau shall
consider--

(I) the significant deterrent and punitive effects of
criminal sanctions;
(II) the ability to use a criminal conviction as collateral
estoppel in a subsequent civil case;
(III) the possibility that the imposition of civil
penalties might undermine a prosecution or the severity of a
subsequent criminal sentence;
(IV) preservation of the secrecy of a criminal
investigation, including the use of covert investigative
techniques;
(V) prevention of the premature discovery of evidence by a
defendant in a criminal case through the exploitation by the
defendant of the civil discovery process;
(VI) avoidance of unnecessary litigation issues, such as
unfounded defense claims of misuse of process in a civil or
criminal action; and
(VII) avoidance of duplicative interviews of witnesses and
subjects.

______

SA 3795. Mrs. FEINSTEIN submitted an amendment intended to be
proposed by her to the bill S. 3217, to promote the financial stability
of the United States by improving accountability and transparency in
the financial system, to end ``too big to fail,'' to protect the
American taxpayer by ending bailouts, to protect consumers from abusive
financial services practices, and for other purposes; which was ordered
to lie on the table; as follows:

At the end of subtitle G of title X, add the following:

SEC. 1077. USE OF CREDIT CHECKS PROHIBITED FOR EMPLOYMENT
PURPOSES.

(a) Prohibition for Employment and Adverse Action.--Section
604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is
amended--
(1) in subsection (a)(3)(B), by inserting ``within the
restrictions set forth in subsection (b)'' after
``purposes'';
(2) by redesignating subsections (b) through (g) as
subsections (c) through (h), respectively; and
(3) by inserting after subsection (a) the following new
subsection:
``(b) Use of Certain Consumer Report Prohibited for
Employment Purposes or Adverse Actions.--
``(1) General prohibition.--Except as provided in paragraph
(3), a person, including a prospective employer or current
employer, may not use a consumer report or investigative
consumer report, or cause a consumer report or investigative
consumer report to be procured, with respect to any consumer
where any information contained in the report bears on the
consumer's creditworthiness, credit standing, or credit
capacity--
``(A) for employment purposes; or
``(B) for making an adverse action, as described in section
603(k)(1)(B)(ii).
``(2) Source of consumer report irrelevant.--The
prohibition described in paragraph (1) shall apply even if
the consumer consents or otherwise authorizes the procurement
or use of a consumer report for employment purposes or in
connection with an adverse action with respect to such
consumer.
``(3) Exceptions.--Notwithstanding the prohibitions set
forth in this subsection, and consistent with the other
provisions of this title, an employer may use a consumer
report with respect to a consumer in any case in which --
``(A) the consumer applies for, or currently holds,
employment that requires national security or Federal Deposit
Insurance Corporation clearance;
``(B) the consumer applies for, or currently holds,
employment with a State or local government agency which
otherwise requires use of a consumer report;
``(C) the consumer applies for, or currently holds, any
management position or other position involving the handling
or supervision of, or access to, customer funds or accounts
at a financial institution (including any credit union); and
``(D) use of the consumer report with respect to the
consumer is otherwise required by law.
``(4) Effect on disclosure and notification requirements.--
The exceptions described in paragraph (3) shall have no
effect on the other requirements of this title, including
requirements in regards to disclosure and notification to a
consumer when permissibly using a consumer report for
employment purposes or for taking an adverse action with
respect to such consumer.''.
(b) Conforming Amendments and Cross References.--The Fair
Credit Reporting Act (15 U.S.C. 1681 et seq.) is amended--
(1) in section 603 (15 U.S.C. 1681a)--
(A) in subsection (d)(3), by striking ``604(g)(3)'' and
inserting ``604(h)(3)''; and
(B) in subsection (o), by striking ``A'' and inserting
``Subject to the restrictions set forth in section 604(b),
a'';
(2) in section 604 (15 U.S.C. 1681b)--
(A) in subsection (a), by striking ``subsection (c)'' and
inserting ``subsection (d)'';
(B) in subsection (c), as redesignated by subsection (a)(2)
of this section--
(i) in paragraph (2)(A), by inserting ``and subject to the
restrictions set forth in subsection (b)'' after
``subparagraph (B)''; and
(ii) in paragraph (3)(A), by inserting ``and subject to the
restrictions set forth in subsection (b)'' after
``subparagraph (B)'';
(C) in subsection (d)(1), as redesignated by subsection
(a)(2) of this section, by striking ``subsection (e)'' in
both places it appears and inserting ``subsection (f)'';
(D) in subsection (f), as redesignated by subsection (a)(2)
of this section--
(i) in paragraph (1), by striking ``subsection (c)(1)(B)''
and inserting ``subsection (d)(1)(B)''; and
(ii) in paragraph (5), by striking ``subsection (c)(1)(B)''
and inserting ``subsection (d)(1)(B)'';
(3) in section 607(e)(3)(A) (15 U.S.C. 1681e(e)(3)(A)), by
striking ``604(b)(4)(E)(i)'' and inserting
``604(c)(4)(E)(i)'';
(4) in section 609 (15 U.S.C. 1681g)--
(A) in subsection (a)(3)(C)(i), by striking
``604(b)(4)(E)(i)'' and inserting ``604(c)(4)(E)(i)''; and
(B) in subsection (a)(3)(C)(ii), by striking
``604(b)(4)(A)'' and inserting ``604(c)(4)(A)'';
(5) in section 613(a) (15 U.S.C. 1681k(a)), by striking
``section 604(b)(4)(A)'' and inserting ``section
604(c)(4)(A)''; and
(6) in section 615 (15 U.S.C. 1681m)--
(A) in subsection (d)(1), by striking ``section
604(c)(1)(B)'' and inserting ``section 604(d)(1)(B)'';
(B) in subsection (d)(1)(E), by striking ``section 604(e)''
and inserting ``section 604(f)''; and

[[Page S3107]]

(C) in subsection (d)(2)(A), by striking ``section 604(e)''
and inserting ``section 604(f)''.
______

SA 3796. Mrs. FEINSTEIN submitted an amendment intended to be
proposed by her to the bill S. 3217, to promote the financial stability
of the United States by improving accountability and transparency in
the financial system, to end ``too big to fail,'' to protect the
American taxpayer by ending bailouts, to protect consumers from abusive
financial services practices, and for other purposes; which was ordered
to lie on the table; as follows:

At the end of subtitle G of title X, add the following:

SEC. 1077. STUDY AND REPORT ON PAYDAY LENDING.

(a) Study Required.--The research unit established by the
director under section 1013 shall conduct a study on the
ability of the unemployed to access credit under reasonable
terms, including an analysis of--
(1) the effects of the practice of ``payday lending'' on
the unemployed;
(2) the potential impacts, both positive and negative, of
using Federal or State unemployment benefit checks as
collateral for obtaining a payday loan;
(3) alternative credit options for the unemployed,
including the accessibility and costs associated with such
options; and
(4) such other considerations as are determined to be
relevant.
(b) Report to the Bureau.--Not later than 1 year after the
date of enactment of this Act, the research unit established
under section 1013 shall--
(1) provide to the Bureau a report on the results of the
study conducted under subsection (a), together with
recommendations to help the unemployed to access credit on
reasonable terms; and
(2) shall make such report available to the public.
______

SA 3797. Mr. SCHUMER (for himself, Mr. Reed, and Mr. Akaka,)
submitted an amendment intended to be proposed to amendment SA 3739
proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to
the bill S. 3217, to promote the financial stability of the United
States by improving accountability and transparency in the financial
system, to end ``too big to fail,'' to protect the American taxpayer by
ending bailouts; to protect consumers from abusive financial services
practices, and for other purposes; which was ordered to lie on the
table; as follows:

On page 1248, strike line 22 and all that follows through
page 1249, line 10 and insert the following:
(1) Covered persons.--This section shall apply to any
covered person who is not a person described in section
1025(a) or 1026(a).
On page 1255, line 5, strike ``(A) In general.--The
Bureau'' and insert the following:
``(A) Notice.--If the Federal Trade Commission is
authorized to enforce any Federal consumer financial law
described in paragraph (1), either the Bureau or the Federal
Trade Commission shall serve written notice to the other of
the intent to take any enforcement action, prior to
initiating such an enforcement action, except that if the
Bureau or the Federal Trade Commission, in filing the action,
determines that prior notice is not feasible, the Bureau or
the Federal Trade Commission may provide notice immediately
upon initiating such enforcement action.
``(B) Coordination.--The Bureau''.
On page 1255, line 10, strike ``(1)(A)''.
On page 1255, line 19, strike ``(B)'' and insert ``(C)''.
On page 1256, line 15, strike ``(C)'' and insert ``(D)''.
On page 1256, line 19, strike ``(D)'' and insert ``(E)''.
On page 1255, line 10, strike ``(1)(A)''.
______

SA 3798. Mrs. HAGAN submitted an amendment intended to be proposed to
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability
of the United States by improving accountability and transparency in
the financial system, to end ``too big to fail,'' to protect the
American taxpayer by ending bailouts; to protect consumers from abusive
financial services practices, and for other purposes; which was ordered
to lie on the table; as follows:

On page 1235, line 12, strike ``or other'' and insert ``,
appropriate representatives of State banking regulators, as
such representatives are to be designated by a selection
process determined by the State banking regulators, and
other''.
On page 1249, line 13, after ``Commission'' insert ``and
appropriate representatives of State banking regulators, as
such representatives are to be designated by a selection
process determined by the State banking regulators,''.
On page 1251, line 17, after ``authorities,'' insert
``including any formal committee established by State
regulators to coordinate multi-state examinations or
enforcement efforts for a class of covered persons,''.
______

SA 3799. Mrs. HAGAN (for herself, Mrs. Hutchison, Mr. Carper, Mr.
Cornyn, and Mr. Brown of Massachusetts) submitted an amendment intended
to be proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd
(for himself and Mrs. Lincoln)) to the bill S. 3217, to promote the
financial stability of the United States by improving accountability
and transparency in the financial system, to end ``too big to fail,''
to protect the American taxpayer by ending bailouts; to protect
consumers from abusive financial services practices, and for other
purposes; which was ordered to lie on the table; as follows:

On page 485, line 14, strike ``and'' and all that follows
through line 25 and insert the following:
(B) subject to such restrictions as the Federal banking
agencies may determine, does not include purchasing or
selling, or otherwise acquiring or disposing of, stocks,
bonds, options, commodities, derivatives, or other financial
instruments on behalf of a customer, as part of market making
activities, or otherwise in connection with or in
facilitation of customer relationships, including risk-
mitigating hedging activities related to such a purchase,
sale, acquisition, or disposal; and
(C) does not include the investments of a regulated
insurance company, or a regulated insurance affiliate or
regulated insurance subsidiary thereof, if--
(i) such investments are in compliance with, and subject
to, the insurance company investment laws, regulations, and
written guidance of the State or jurisdiction in which each
such insurance company is domiciled; and
(ii) the Federal banking agencies, after consultation with
the Council and the relevant insurance commissioners of the
States and territories of the United States, have not jointly
determined, after notice and comment, that a law, a
regulation, or written guidance described in clause (i) is
insufficient to accomplish the purposes of this section; and
______

SA 3800. Mr. CORKER submitted an amendment intended to be proposed to
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability
of the United States by improving accountability and transparency in
the financial system, to end ``too big to fail,'' to protect the
American taxpayer by ending bailouts; to protect consumers from abusive
financial services practices, and for other purposes; which was ordered
to lie on the table; as follows:

On page 94, between lines 4 and 5, insert the following:
(4) Consultation.--Before imposing prudential standards or
any other requirements pursuant to this section, including
notices of deficiencies in resolution plans and more
stringent requirements or divestiture orders resulting from
such notices, that are likely to have a significant impact on
a functionally regulated subsidiary or depository institution
subsidiary of a nonbank financial company supervised by the
Board of Governors or a bank holding company described in
subsection (a), the Board of Governors shall consult with
each Council member that primarily supervises any such
subsidiary with respect to any such standard or requirement.
______

SA 3801. Mr. HATCH (for himself, Mr. Enzi, and Mr. Brown of
Massachusetts) submitted an amendment intended to be proposed to
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability
of the United States by improving accountability and transparency in
the financial system, to end ``too big to fail,'' to protect the
American taxpayer by ending bailouts; to protect consumers from abusive
financial services practices, and for other purposes; which was ordered
to lie on the table; as follows:

At the end of title XII, insert the following:

TITLE XIII--TREATMENT OF FANNIE MAE AND FREDDIE MAC

SEC. 1301. PLAN ON REFORMING FANNIE MAE AND FREDDIE MAC.

(a) In General.--Not later than 6 months after the date of
the enactment of this Act, the Secretary of the Treasury, the
Director of the Federal Housing Finance Agency, and the
Secretary of Housing and Urban Development shall propose and
submit to Congress a plan to end the conservatorship of the
Federal National Mortgage Association and the Federal Home
Loan Mortgage Corporation, and to reform such entities.
(b) Requirements.--The plan required under subsection (a)
shall be drafted so as to

[[Page S3108]]

have the least amount of impact as possible on--
(1) the provision of affordable housing to underserved
areas; and
(2) the cost to the taxpayer.
______

SA 3802. Mr. CORKER submitted an amendment intended to be proposed to
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability
of the United States by improving accountability and transparency in
the financial system, to end ``too big to fail'', to protect the
American taxpayer by ending bailouts, to protect consumers from abusive
financial services practices, and for other purposes; which was ordered
to lie on the table; as follows:

On page 124, line 9, insert after the semicolon, ``and''
``(ii) whether amendments should be made to the Bankruptcy
Code, the Federal Deposit Insurance Act, and other insolvency
laws to enhance their effectiveness in liquidating and
reorganizing financial companies, including whether
provisions relating to qualified financial contracts should
be modified.''
______

SA 3803. Mr. MENENDEZ submitted an amendment intended to be proposed
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial
stability of the United States by improving accountability and
transparency in the financial system, to end ``too big to fail'', to
protect the American taxpayer by ending bailouts, to protect consumers
from abusive financial services practices, and for other purposes;
which was ordered to lie on the table; as follows:

On page 278 line 23, strike ``$50,000,000,000'' and insert
``$150,000,000,000''.
On page 284, between lines 10 and 11, insert the following:
``(15) Limitation on use of fund.--Notwithstanding any
other provision of law, amounts in the Orderly Liquidation
Fund may not be used under any circumstances to `bail out' or
maintain the solvency of any covered institution.''.
______

SA 3804. Mr. MENENDEZ submitted an amendment intended to be proposed
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial
stability of the United States by improving accountability and
transparency in the financial system, to end ``too big to fail'', to
protect the American taxpayer by ending bailouts, to protect consumers
from abusive financial services practices, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of subtitle A of title I, add the following:

SEC. 122. ENHANCED DISCLOSURES.

Section 13 of the Securities Exchange Act of 1934 (15
U.S.C. 78m) is amended by adding at the end the following:
``(n) Enhanced Disclosures Required.--
``(1) In general.--The Commission shall, by rule, with
respect to each issuer that is subject to enhanced standards
under title I of the Restoring American Financial Stability
Act of 2010, and that is required to file periodic reports
with the Commission, and any other issuers that the
Commission determines appropriate--
``(A) require each such issuer to provide, together with
its annual reports to the Commission, a detailed written
description of all off balance sheet activities of the issuer
and a detailed justification for not putting each of those
activities on the balance sheet; and
``(B) pursuant to its authority under section 13 and 15(d),
require each such issuer to disclose in each quarterly and
annual filings required by the rules of the Commission--
``(i) the total liabilities of the issuer as of period end
and total assets as of period end;
``(ii) the average daily liabilities during the measured
period and average daily assets during the measured period;
``(iii) any short term borrowings, including separately
presenting securities sold under agreements to repurchase,
shown as of the end of the period and as a daily average
during the period;
``(iv) a period end leverage ratio, measured as total
equity capital as of period end, divided by total assets as
of period end;
``(v) an average daily leverage ratio, measured as average
daily equity capital during the measured period, divided by
average daily assets during the measured period; and
``(vi) any other leverage or liquidity ratios that the
Commission determines, by rule, to be appropriate.
``(2) Transactions affecting future liquidity.--The
Commission shall issue rules requiring the disclosure of
information on transactions that were accounted for as sales
by the issuer, but have implications for future liquidity.
``(3) Graphic representations authorized.--The disclosures
under this subsection may include a graphic representation of
the information required to be disclosed.''.
______

SA 3805. Mrs. BOXER submitted an amendment intended to be proposed to
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability
of the United States by improving accountability and transparency in
the financial system, to end ``too big to fail'', to protect the
American taxpayer by ending bailouts, to protect consumers from abusive
financial services practices, and for other purposes; which was ordered
to lie on the table; as follows:

On page 1435, line 19, strike ``(g)''and insert the
following:
``(g) Prohibition on Steering Incentives.--
``(1) In general.--For any loan secured by real property or
a dwelling, the total amount of direct and indirect
compensation from any source permitted to a mortgage
originator may not vary based on the terms or conditions of
the loan.
``(2) Limitations on financing of origination fees and
costs.--
``(A) In general.--For any loan secured by real property or
a dwelling, a mortgage originator may not arrange for a
consumer to finance through the rate any origination fee or
cost except bona fide third party settlement charges not
retained by the creditor or mortgage originator.
``(B) Exception.--Notwithstanding subparagraph (A), a
mortgage originator may arrange for a consumer to finance an
origination fee or cost through the rate, if--
``(i) the mortgage originator receives no other
compensation, however denominated, directly or indirectly,
from the consumer or any other person;
``(ii) the loan does not include discount points,
origination points, or rate reduction points, however
denominated, or any payment reduction fee, however
denominated;
``(iii) the loan does not contain a prepayment penalty;
``(iv) the total points and fees payable in connection with
the loan do not exceed 2 percent of the total loan amount,
where the term `points and fees' has the same meaning as in
section 103(aa)(4);
``(v) the loan does not allow a consumer to defer repayment
of principal or interest, or is not otherwise deemed a `non-
traditional mortgage' under guidance, advisories, or
regulations prescribed by the Federal banking agencies; and
``(vi) there is no other conflict of interest between the
mortgage originator and the consumer.
``(3) Mortgage originator.--As used in this subsection, the
term `mortgage originator'--
``(A) means any person who, for direct or indirect
compensation or gain, or in the expectation of direct or
indirect compensation or gain--
``(i) takes a residential mortgage loan application;
``(ii) assists a consumer in obtaining or applying to
obtain a residential mortgage loan; or
``(iii) offers or negotiates terms of a residential
mortgage loan;
``(B) includes any person who represents to the public,
through advertising or other means of communicating or
providing information (including the use of business cards,
stationery, brochures, signs, rate lists, or other
promotional items), that such person can or will provide any
of the services or perform any of the activities described in
subparagraph (A);
``(C) does not include any person who is--
``(i) not otherwise described in subparagraph (A) or (B),
and who performs purely administrative or clerical tasks on
behalf of a person who is described in any such subparagraph;
or
``(ii) an employee of a retailer of manufactured homes who
is not described in clause (i) or (iii) of subparagraph (A),
and who does not advise a consumer on loan terms (including
rates, fees, and other costs);
``(D) does not include a person or entity that only
performs real estate brokerage activities and is licensed or
registered in accordance with applicable State law, unless
such person or entity is compensated for performing such
brokerage activities by a lender, a mortgage broker, or other
mortgage originator or by any agent of such lender, mortgage
broker, or other mortgage originator;
``(E) does not include, with respect to a residential
mortgage loan, a person, estate, or trust that provides
mortgage financing for the sale of 1 property in any 36-month
period, provided that such loan--
``(i) is fully amortizing;
``(ii) is with respect to a sale for which the seller
determines in good faith and documents that the buyer has a
reasonable ability to repay the loan;
``(iii) has a fixed rate or an adjustable rate that is
adjustable after 5 or more years, subject to reasonable
annual and lifetime limitations on interest rate increases;
and
``(iv) meets any other criteria that the Federal banking
agencies may prescribe; and
``(F) does not include a servicer or servicer employees,
agents and contractors, including but not limited to those
who offer or negotiate terms of a residential mortgage loan

[[Page S3109]]

for purposes of renegotiating, modifying, replacing and
subordinating principal of existing mortgages where borrowers
are behind in their payments, in default or have a reasonable
likelihood of being in default or falling behind.
``(h)''.
______

SA 3806. Mr. SPECTER (for himself and Mr. Kaufman), submitted an
amendment intended to be proposed to amendment SA 3739 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217,
to promote the financial stability of the United States by improving
accountability and transparency in the financial system, to end ``too
big to fail'', to protect the American taxpayer by ending bailouts, to
protect consumers from abusive financial services practices, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of title IV, insert the following:

SEC. ___. FIDUCIARY STANDARD OF CARE FOR BROKER-DEALERS.

Section 15(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78o(a)) is amended by inserting at the end the
following:
``(3)(A)(i) A registered broker or dealer, or any agent,
employee or other person acting on behalf of such a broker or
dealer, that provides investment advice regarding the
purchase or sale of a security or a security based swap, or
solicits or offers to enter into, or enters into a purchase
or sale of a security or a security-based swap, shall have a
fiduciary duty to act in the best interests of the investor
and to disclose the specific facts relating to any actual or
reasonably anticipated conflict of interest relating to that
security or transaction or contemplated transaction.
``(ii) The Commission may adopt rules and regulations to
define the full scope and application of the duty referred to
in clause (i), to grant exceptions, and to adopt safe
harbors, if and to the extent the Commission finds that such
additional rules, regulations, exceptions, and safe harbors
are necessary or appropriate as in the public interest or for
the protection of investors.
``(B)(i) It shall be unlawful for any person subject to a
fiduciary duty under subparagraph (A) to effect, directly or
indirectly, by the use of any instrumentality of interstate
commerce or of the mails, or of any facility of any national
securities exchange, any transaction in, or to induce or
attempt to induce, the purchase or sale of any security or
security-based swap, if in connection with such purchase or
sale, or attempted purchase or sale, such person willfully
violates that duty or disclosure obligation.
``(ii) Any person who violates clause (i) shall be fined
under title 18, United States Code, or imprisoned not more
than 25 years, or both.''.
______

SA 3807. Mrs. HAGAN (for herself and Mr. Brown of Massachusetts)
submitted an amendment intended to be proposed to amendment SA 3739
proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to
the bill S. 3217, to promote the financial stability of the United
States by improving accountability and transparency in the financial
system, to end ``too big to fail,'' to protect the American taxpayer by
ending bailouts, to protect consumers from abusive financial services
practices, and for other purposes; which was ordered to lie on the
table; as follows:

On page 486, strike lines 1 through 12, and insert the
following:
(3) the term ``sponsoring or investing'', when used with
respect to a hedge fund or private equity fund--
(A) means--
(i) serving as a general partner, managing member, or
trustee of the fund;
(ii) in any manner selecting or controlling (or having
employees, officers, directors, or agents who constitute) a
majority of the directors, trustees, or management of the
fund; or
(iii) sharing with the fund, for corporate, marketing,
promotional, or other purposes, the same name or a variation
of the same name;
(B) includes any activity that would cause the aggregate
investment of an insured depository institution, a company
that controls, directly or indirectly, an insured depository
institution or is treated as a bank holding company for
purposes of the Bank Holding Company Act of 1956 (12 U.S.C.
1841 et seq.), or any subsidiary of such institution or
company, in hedge funds and private equity funds to exceed 10
percent of the total Tier 1 capital (as that term is defined
in section 2(o) of the Bank Holding Company Act of 1956 (12
U.S.C. 1841(o)) of the institution, company, or subsidiary;
and
(C) except as provided in subparagraph (B), does not
include any activity described under this paragraph--
(i) that is conducted in connection with, or in
facilitation of, customer relationships or on behalf of
unaffiliated customers;
(ii) that is related to investing a de minimis amount, as
determined by the Council, in any hedge fund or private
equity fund, not to exceed 10 percent of the total equity of
any such fund; and
(iii) for which the obligations of any hedge or private
equity funds are not guaranteed, directly or indirectly, by
any affiliate.
On page 490, strike line 9 and all that follows through
page 491, line 10.
______

SA 3808. Mr. FRANKEN (for himself, Mr. Schumer, Mr. Nelson of
Florida, Mr. Whitehouse, Mr. Brown of Ohio, and Mr. Murray) submitted
an amendment intended to be proposed to amendment SA 3739 proposed by
Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S.
3217, to promote the financial stability of the United States by
improving accountability and transparency in the financial system, to
end ``too big to fail'', to protect the American taxpayer by ending
bailouts, to protect consumers from abusive financial services
practices, and for other purposes; which was ordered to lie on the
table; as follows:

On page 1006, line 7, strike ``Such inaccuracy'' and all
that follows through line 9, and insert the following: ``Such
inaccuracy necessitates changes in the way initial credit
ratings are assigned.''.
On page 1042, strike lines 17 through 24, and insert the
following:
(a) Study.--Not later than 1 year after the Credit Rating
Agency Board, as established under section 15E(w) of the
Securities Exchange Act of 1934, begins to assign nationally
recognized statistical rating organizations to provide
initial credit ratings, the Comptroller General of the United
States shall conduct a study on the effectiveness of the
implementation of the changes made to that section by section
939D of this Act, including the selection method by which the
Credit Rating Agency Board assigns nationally recognized
statistical rating organizations to provide initial credit
ratings.
On page 1044, between lines 2 and 3, insert the following:

SEC. 939D. INITIAL CREDIT RATING ASSIGNMENTS.

Section 15E of the Securities Exchange Act of 1934 (15
U.S.C. 78o-7), as amended by this Act, is amended by adding
at the end the following:
``(w) Initial Credit Rating Assignments.--
``(1) Definitions.--In this subsection the following
definitions shall apply:
``(A) Board.--The term `Board' means the Credit Rating
Agency Board established under paragraph (2).
``(B) Qualified nationally recognized statistical rating
organization.--The term `qualified nationally recognized
statistical rating organization', with respect to a category
of structured finance products, means a nationally recognized
statistical rating organization that the Commission
determines, under paragraph (3)(B), to be qualified to issue
credit ratings with respect to such category.
``(C) Regulations.--
``(i) Category of structured finance products.--

``(I) In general.--The term `category of structured finance
products'--

``(aa) shall include any asset backed security and any
structured product based on an asset-backed security; and
``(bb) shall be further defined and expanded by the
Commission, by rule, as necessary.

``(II) Considerations.--In issuing the regulations required
subclause (I), the Commission shall consider--

``(aa) the types of issuers that issue structured finance
products;
``(bb) the types of investors who purchase structured
finance products;
``(cc) the different categories of structured finance
products according to--
``(AA) the types of capital flow and legal structure used;
``(BB) the types of underlying products used; and
``(CC) the types of terms used in debt securities;
``(dd) the different values of debt securities; and
``(ee) the different numbers of units of debt securities
that are issued together.
``(ii) Reasonable fee.--The Board shall issue regulations
to define the term `reasonable fee'.
``(2) Credit rating agency board.--
``(A) In general.--Not later than 180 days after the date
of enactment of the Restoring American Financial Stability
Act of 2010, the Commission shall--
``(i) establish the Credit Rating Agency Board, which shall
be a self-regulatory organization;
``(ii) subject to subparagraph (C), select the initial
members of the Board; and
``(iii) establish a schedule to ensure that the Board
begins assigning qualified nationally recognized statistical
rating organizations to provide initial ratings not later
than 1 year after the selection of the members of the Board.
``(B) Schedule.--The schedule established under
subparagraph (A)(iii) shall prescribe when--
``(i) the Board will conduct a study of the securitization
and ratings process and provide recommendations to the
Commission;
``(ii) the Commission will issue rules and regulations
under this section;
``(iii) the Board may issue rules under this subsection;
and
``(iv) the Board will--

[[Page S3110]]

``(I) begin accepting applications to select qualified
national recognized statistical rating organizations; and
``(II) begin assigning qualified national recognized
statistical rating organizations to provide initial ratings.

``(C) Membership.--
``(i) In general.--The Board shall initially be composed of
an odd number of members selected from the industry, with the
total numerical membership of the Board to be determined by
the Commission.
``(ii) Specifications.--Of the members initially selected
to serve on the Board--

``(I) not less than a majority of the members shall be
representatives of the investor industry, including both
institutional and retail investors who do not represent
issuers;
``(II) not less than 1 member should be a representative of
the issuer industry;
``(III) not less than 1 member should be a representative
of the credit rating agency industry; and
``(IV) not less than 1 member should be an independent
member.

``(iii) Terms.--Initial members shall be appointed by the
Commission for a term of 4 years.
``(iv) Nomination and election of members.--

``(I) In general.--Prior to the expiration of the terms of
office of the initial members, the Commission shall establish
fair procedures for the nomination and election of future
members of the Board.
``(II) Modifications of the board.--Prior to the expiration
of the terms of office of the initial members, the
Commission--

``(aa) may increase the size of the board to a larger odd
number and adjust the length of future terms; and
``(bb) shall retain the composition of members described in
clause (ii).
``(v) Responsibilities of members.--Members shall perform,
at a minimum, the duties described in this subsection.
``(vi) Rulemaking authority.--The Commission shall, if it
determines necessary and appropriate, issue further rules and
regulations on the composition of the membership of the Board
and the responsibilities of the members.
``(D) Other authorities of the board.--The Board shall have
the authority to levy fees from qualified nationally
recognized statistical rating organization applicants, and
periodically from qualified nationally recognized statistical
rating organizations as necessary to fund expenses of the
Board.
``(E) Regulation.--The Commission has the authority to
regulate the activities of the Board, and issue any further
regulations of the Board it deems necessary, not in
contravention with the intent of this section.
``(3) Board selection of qualified nationally recognized
statistical rating organization.--
``(A) Application.--
``(i) In general.--A nationally recognized statistical
rating organization may submit an application to the Board,
in such form and manner as the Board may require, to become a
qualified nationally recognized statistical rating
organization with respect to a category of structured
financial products.
``(ii) Contents.--An application submitted under clause (i)
shall contain--

``(I) information regarding the institutional and technical
capacity of the nationally recognized statistical rating
organization to issue credit ratings;
``(II) information on whether the nationally recognized
statistical rating organization has been exempted by the
Commission from any requirements under any other provision of
this section; and
``(III) any additional information the Board may require.

``(iii) Rejection of applications.--The Board may reject an
application submitted under this paragraph if the nationally
recognized statistical rating organization has been exempted
by the Commission from any requirements under any other
provision of this section.
``(B) Selection.--The Board shall select qualified national
recognized statistical rating organizations with respect to
each category of structured finance products from among
nationally recognized statistical rating organizations that
submit applications under subparagraph (A).
``(C) Retention of status and obligations after
selection.--An entity selected as a qualified nationally
recognized statistical rating organization shall retain its
status and obligations under the law as a nationally
recognized statistical rating organization, and nothing in
this subsection grants authority to the Commission or the
Board to exempt qualified nationally recognized statistical
rating organizations from obligations or requirements
otherwise imposed by Federal law on nationally recognized
statistical rating organizations
``(4) Requesting an initial credit rating.--An issuer that
seeks an initial credit rating for a structured finance
product--
``(A) may not request an initial credit rating from a
nationally recognized statistical rating organization; and
``(B) shall submit a request for an initial credit rating
to the Board, in such form and manner as the Board may
prescribe.
``(5) Assignment of rating duties.--
``(A) In general.--For each request received by the Board
under paragraph (4)(B), the Board shall select a qualified
nationally recognized statistical rating organization to
provide the initial credit rating to the issuer.
``(B) Method of selection.--
``(i) In general.--The Board shall--

``(I) evaluate a number of selection methods, including a
lottery or rotating assignment system, incorporating the
factors described in clause (ii), to reduce the conflicts of
interest that exist under the issuer-pays model; and
``(II) prescribe and publish the selection method to be
used under subparagraph (A).

``(ii) Consideration.--In evaluating a selection method
described in clause (i)(I), the Board shall consider--

``(I) the information submitted by the qualified nationally
recognized statistical rating organization under paragraph
(3)(A)(ii) regarding the institutional and technical capacity
of the qualified nationally recognized statistical rating
organization to issue credit ratings;
``(II) evaluations conducted under paragraph (6);
``(III) formal feedback from institutional and retail
investors; and
``(IV) information from subclauses (I) and (II) to
implement a mechanism which increases or decreases
assignments based on past performance.

``(iii) Prohibition.--The Board, in choosing a selection
method, may not use a method that would allow for the
solicitation or consideration of the preferred national
recognized statistical rating organizations of the issuer.
``(iv) Adjustment of process.--The Board shall issue rules
describing the process by which it can modify the assignment
process described in clause (i).
``(C) Right of refusal.--
``(i) Refusal.--A qualified nationally recognized
statistical rating organization selected under subparagraph
(A) may refuse to accept a selection for a particular request
by--

``(I) notifying the Board of such refusal; and
``(II) submitting to the Board a written explanation of the
refusal.

``(ii) Selection.--Upon receipt of a notification under
clause (i), the Board shall make an additional selection
under subparagraph (A).
``(iii) Inspection reports.--The Board shall annually
submit any explanations of refusals received under clause
(i)(II) to the Commission, and such explanatory submissions
shall be published in the annual inspection reports required
under subsection (p)(3)(C).
``(6) Evaluation of performance.--
``(A) In general.--The Board shall prescribe rules by which
the Board will evaluate the performance of each qualified
nationally recognized statistical rating organization,
including rules that require, at a minimum, an annual
evaluation of each qualified nationally recognized
statistical rating organization.
``(B) Considerations.--The Board, in conducting an
evaluation under subparagraph (A), shall consider--
``(i) the results of the annual examination conducted under
subsection (p)(3);
``(ii) surveillance of credit ratings conducted by the
qualified nationally recognized statistical rating
organization after the credit ratings are issued, including--

``(I) how the rated instruments perform;
``(II) the accuracy of the ratings provided by the
qualified nationally recognized statistical rating
organization as compared to the other nationally recognized
statistical rating organizations; and
``(III) the effectiveness of the methodologies used by the
qualified nationally recognized statistical rating
organization; and

``(iii) any additional factors the Board determines to be
relevant.
``(C) Request for reevaluation.--Subject to rules
prescribed by the Board, and not less frequently than once a
year, a qualified nationally recognized statistical rating
organization may request that the Board conduct an evaluation
under this paragraph.
``(D) Disclosure.--The Board shall make the evaluations
conducted under this paragraph available to Congress.
``(7) Rating fees charged to issuers.--
``(A) Limited to reasonable fees.--A qualified nationally
recognized statistical rating organization shall charge an
issuer a reasonable fee, as determined by the Commission, for
an initial credit rating provided under this section.
``(B) Fees.--Fees may be determined by the qualified
national recognized statistical rating organizations unless
the Board determines it is necessary to issue rules on fees.
``(8) No prohibition on additional ratings.--Nothing in
this section shall prohibit an issuer from requesting or
receiving additional credit ratings with respect to a debt
security, if the initial credit rating is provided in
accordance with this section.
``(9) No prohibition on independent ratings offered by
nationally recognized statistical rating organizations.--
``(A) In general.--Nothing in this section shall prohibit a
nationally recognized statistical rating organization from
independently providing a credit rating with respect to a
debt security, if--
``(i) the nationally recognized statistical rating
organization does not enter into a contract with the issuer
of the debt security to provide the initial credit rating;
and
``(ii) the nationally recognized statistical rating
organization is not paid by the issuer of the debt security
to provide the initial credit rating.
``(B) Rule of construction.--For purposes of this section,
a credit rating described in

[[Page S3111]]

subparagraph (A) may not be construed to be an initial credit
rating.
``(10) Public communications.--Any communications made with
the public by an issuer with respect to the credit rating of
a debt security shall clearly specify whether the credit
rating was made by--
``(A) a qualified nationally recognized statistical rating
organization selected under paragraph (5)(A) to provide the
initial credit rating for such debt security; or
``(B) a nationally recognized statistical rating
organization not selected under paragraph (5)(A).
``(11) Prohibition on misrepresentation.--With respect to a
debt security, it shall be unlawful for any person to
misrepresent any subsequent credit rating provided for such
debt security as an initial credit rating provided for such
debt security by a qualified nationally recognized
statistical rating organization selected under paragraph
(5)(A).
``(12) Initial credit rating revision after material change
in circumstance.--If the Board determines that it is
necessary or appropriate in the public interest or for the
protection of investors, the Board may issue regulations
requiring that an issuer that has received an initial credit
rating under this subsection request a revised initial credit
rating, using the same method as provided under paragraph
(4), each time the issuer experiences a material change in
circumstances, as defined by the Board.
``(13) Conflicts.--
``(A) Members or employees of the board.--
``(i) Loan of money or securities prohibited.--

``(I) In general.--A member or employee of the Board shall
not accept any loan of money or securities, or anything above
nominal value, from any nationally recognized statistical
rating organization, issuer, or investor.
``(II) Exception.--The prohibition in subclause (I) does
not apply to a loan made in the context of disclosed, routine
banking and brokerage agreements, or a loan that is clearly
motivated by a personal or family relationship.

``(ii) Employment negotiations prohibition.--A member or
employee of the Board shall not engage in employment
negotiations with any nationally recognized statistical
rating organization, issuer, or investor, unless the member
or employee--

``(I) discloses the negotiations immediately upon
initiation of the negotiations; and
``(II) recuses himself from all proceedings concerning the
entity involved in the negotiations until termination of
negotiations or until termination of his employment by the
Board, if an offer of employment is accepted.

``(B) Credit analysts.--
``(i) In general.--A credit analyst of a qualified
nationally recognized statistical rating organization shall
not accept any loan of money or securities, or anything above
nominal value, from any issuer or investor.
``(ii) Exception.--The prohibition described in clause (i)
does not apply to a loan made in the context of disclosed,
routine banking and brokerage agreements, or a loan that is
clearly motivated by a personal or family relationship.
``(14) Evaluation of credit rating agency board.--Not later
than 5 years after the date that the Board begins assigning
qualified nationally recognized statistical rating
organizations to provide initial ratings, the Commission
shall submit to Congress a report that provides
recommendations of--
``(A) the continuation of the Board;
``(B) any modification to the procedures of the Board; and
``(C) modifications to the provisions in this
subsection.''.
______

SA 3809. Mr. INOUYE (for himself, Mr. Cochran, Mr. Durbin, Ms.
Collins, Mr. Byrd, Mr. Harkin, and Mr. Voinovich) submitted an
amendment intended to be proposed to amendment SA 3739 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217,
to promote the financial stability of the United States by improving
accountability and transparency in the financial system, to end ``too
big to fail,'' to protect the American taxpayer by ending bailouts, to
protect consumers from abusive financial services practices, and for
other purposes; which was ordered to lie on the table; as follows:

On page 1171, strike line 6 and all that follows through
page 1187, line 9.
______

SA 3810. Mr. DORGAN (for himself and Mr. Grassley), submitted an
amendment intended to be proposed to amendment SA 3739 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217,
to promote the financial stability of the United States by improving
accountability and transparency in the financial system, to end ``too
big to fail,'' to protect the American taxpayer by ending bailouts, to
protect consumers from abusive financial services practices, and for
other purposes; which was ordered to lie on the table; as follows:

On page 1533, line 5, strike ``Section'' and insert the
following:
``(a) In General.--The Board of Governors shall disclose to
Congress and to the public, with respect to any emergency
financial assistance provided during the 5-year period
preceding the date of enactment of this Act under the
authority of the Board of Governors in the third undesignated
paragraph of section 13 of the Federal Reserve Act (12 U.S.C.
343)--
``(1) the name of each financial company that received such
assistance;
``(2) the value or amount and description of the emergency
assistance provided, including loans to investment banks from
the Federal Reserve discount lending program or special
purpose entities;
``(3) the date on which the financial assistance was
provided;
``(4) the terms and conditions for the emergency
assistance; and
``(5) a full description of any collateral required by the
Board of Governors and secured from the recipients of such
emergency assistance.
``(b) Public Disclosure.--Section''.
______

SA 3811. Mr. DORGAN (for himself, Mr. Feingold, and Mr. Kaufman)
submitted an amendment intended to be proposed by him to the bill S.
3217, to promote the financial stability of the United States by
improving accountability and transparency in the financial system, to
end ``too big to fail,'' to protect the American taxpayer by ending
bailouts, to protect consumers from abusive financial services
practices, and for other purposes; which was ordered to lie on the
table; as follows:

On page 29, line 14, strike ``and'' and all that follows
through ``annually report'' on line 15 and insert the
following:
``(M) identify all financial institutions that have
domestic or international (or both) operations or activities
of a significant size, scope, nature, scale, concentration,
volume, frequency of transactions, or in any other manner or
method, resulting or arising from stand alone operations or
activities individually, or as a mix or combination of such
international operations or activities that may pose a grave
threat to the financial stability of the United States; and
``(N) annually report''.
On page 33, strike line 3 and all that follows through page
61, line 12 and insert the following:

SEC. 113. AUTHORITY TO REQUIRE SUPERVISION AND REGULATION OF
CERTAIN NONBANK FINANCIAL COMPANIES.

(a) U.S. Nonbank Financial Companies Supervised by the
Board of Governors.--
(1) Determination.--The Council, on a nondelegable basis
and by a vote of 50 percent or more of the members then
serving, shall determine that a U.S. nonbank financial
company shall be supervised by the Board of Governors and
shall be subject to this Act, if the Council determines that
material financial distress at the U.S. nonbank financial
company would pose a threat to the financial stability of the
United States or such company has significant international
operations or activities.
(2) Considerations.--Each determination under paragraph (1)
shall be based on a consideration by the Council of--
(A) the degree of leverage of the company;
(B) the amount and nature of the financial assets of the
company;
(C) the amount and types of the liabilities of the company,
including the degree of reliance on short-term funding;
(D) the extent and types of the off-balance-sheet exposures
of the company;
(E) the extent and types of the transactions and
relationships of the company with other significant nonbank
financial companies and significant bank holding companies;
(F) the importance of the company as a source of credit for
households, businesses, and State and local governments and
as a source of liquidity for the United States financial
system;
(G) the recommendation, if any, of a member of the Council;
(H) the operation of, or ownership interest in, any
clearing, settlement, or payment business of the company;
(I) the extent to which--
(i) assets are managed rather than owned by the company;
and
(ii) ownership of assets under management is diffuse; and
(J) any other factors that the Council deems appropriate.
(b) Foreign Nonbank Financial Companies Supervised by the
Board of Governors.--
(1) Determination.--The Council, on a nondelegable basis
and by a vote of 50 percent of the members then serving,
shall determine that a foreign nonbank financial company that
has substantial assets or operations in the United States
shall be supervised by the Board of Governors and shall be
subject to this Act, if the Council determines that material
financial distress at the foreign nonbank financial company
would pose a threat to the financial stability of the United
States, or such company has significant international
operations or activities.
(2) Considerations.--Each determination under paragraph (1)
shall be based on a consideration by the Council of--
(A) the degree of leverage of the company;
(B) the amount and nature of the United States financial
assets of the company;
(C) the amount and types of the liabilities of the company
used to fund activities and

[[Page S3112]]

operations in the United States, including the degree of
reliance on short-term funding;
(D) the extent of the United States-related off-balance-
sheet exposure of the company;
(E) the extent and type of the transactions and
relationships of the company with other significant nonbank
financial companies and bank holding companies;
(F) the importance of the company as a source of credit for
United States households, businesses, and State and local
governments, and as a source of liquidity for the United
States financial system;
(G) the recommendation, if any, of a member of the Council;
(H) the extent to which--
(i) assets are managed rather than owned by the company;
and
(ii) ownership of assets under management is diffuse; and
(I) any other factors that the Council deems appropriate.
(c) Reevaluation and Rescission.--The Council shall--
(1) not less frequently than annually, reevaluate each
determination made under subsections (a) and (b) with respect
to each nonbank financial company supervised by the Board of
Governors; and
(2) rescind any such determination, if the Council, by a
vote of not fewer than \2/3\ of the members then serving,
including an affirmative vote by the Chairperson, determines
that the nonbank financial company no longer meets the
standards under subsection (a) or (b), as applicable.
(d) Notice and Opportunity for Hearing and Final
Determination.--
(1) In general.--The Council shall provide to a nonbank
financial company written notice of a proposed determination
of the Council, including an explanation of the basis of the
proposed determination of the Council, that such nonbank
financial company shall be supervised by the Board of
Governors and shall be subject to prudential standards in
accordance with this title.
(2) Hearing.--Not later than 30 days after the date of
receipt of any notice of a proposed determination under
paragraph (1), the nonbank financial company may request, in
writing, an opportunity for a written or oral hearing before
the Council to contest the proposed determination. Upon
receipt of a timely request, the Council shall fix a time
(not later than 30 days after the date of receipt of the
request) and place at which such company may appear,
personally or through counsel, to submit written materials
(or, at the sole discretion of the Council, oral testimony
and oral argument).
(3) Final determination.--Not later than 60 days after the
date of a hearing under paragraph (2), the Council shall
notify the nonbank financial company of the final
determination of the Council, which shall contain a statement
of the basis for the decision of the Council.
(4) No hearing requested.--If a nonbank financial company
does not make a timely request for a hearing, the Council
shall notify the nonbank financial company, in writing, of
the final determination of the Council under subsection (a)
or (b), as applicable, not later than 10 days after the date
by which the company may request a hearing under paragraph
(2).
(e) Emergency Exception.--
(1) In general.--The Council may waive or modify the
requirements of subsection (d) with respect to a nonbank
financial company, if the Council determines, by a vote of
not fewer than \2/3\ of the members then serving, including
an affirmative vote by the Chairperson, that such waiver or
modification is necessary or appropriate to prevent or
mitigate threats posed by the nonbank financial company to
the financial stability of the United States.
(2) Notice.--The Council shall provide notice of a waiver
or modification under this paragraph to the nonbank financial
company concerned as soon as practicable, but not later than
24 hours after the waiver or modification is granted.
(3) Opportunity for hearing.--The Council shall allow a
nonbank financial company to request, in writing, an
opportunity for a written or oral hearing before the Council
to contest a waiver or modification under this paragraph, not
later than 10 days after the date of receipt of notice of the
waiver or modification by the company. Upon receipt of a
timely request, the Council shall fix a time (not later than
15 days after the date of receipt of the request) and place
at which the nonbank financial company may appear, personally
or through counsel, to submit written materials (or, at the
sole discretion of the Council, oral testimony and oral
argument).
(4) Notice of final determination.--Not later than 30 days
after the date of any hearing under paragraph (3), the
Council shall notify the subject nonbank financial company of
the final determination of the Council under this paragraph,
which shall contain a statement of the basis for the decision
of the Council.
(f) Consultation.--The Council shall consult with the
primary financial regulatory agency, if any, for each nonbank
financial company or subsidiary of a nonbank financial
company that is being considered for supervision by the Board
of Governors under this section before the Council makes any
final determination with respect to such nonbank financial
company under subsection (a), (b), or (c).
(g) Judicial Review.--If the Council makes a final
determination under this section with respect to a nonbank
financial company, such nonbank financial company may, not
later than 30 days after the date of receipt of the notice of
final determination under subsection (d)(3) or (e)(4), bring
an action in the United States district court for the
judicial district in which the home office of such nonbank
financial company is located, or in the United States
District Court for the District of Columbia, for an order
requiring that the final determination be rescinded, and the
court shall, upon review, dismiss such action or direct the
final determination to be rescinded. Review of such an action
shall be limited to whether the final determination made
under this section was arbitrary and capricious.

SEC. 114. REGISTRATION OF NONBANK FINANCIAL COMPANIES
SUPERVISED BY THE BOARD OF GOVERNORS.

Not later than 180 days after the date of a final Council
determination under section 113 that a nonbank financial
company is to be supervised by the Board of Governors, such
company shall register with the Board of Governors, on forms
prescribed by the Board of Governors, which shall include
such information as the Board of Governors, in consultation
with the Council, may deem necessary or appropriate to carry
out this title.

SEC. 115. ENHANCED SUPERVISION AND PRUDENTIAL STANDARDS FOR
NONBANK FINANCIAL COMPANIES SUPERVISED BY THE
BOARD OF GOVERNORS AND CERTAIN BANK HOLDING
COMPANIES.

(a) In General.--
(1) Purpose.--In order to prevent or mitigate risks to the
financial stability of the United States that could arise
from the material financial distress or failure of large,
interconnected financial institutions, the Council may make
recommendations to the Board of Governors concerning the
establishment and refinement of prudential standards and
reporting and disclosure requirements applicable to nonbank
financial companies supervised by the Board of Governors and
large, interconnected bank holding companies, that--
(A) are more stringent than those applicable to other
nonbank financial companies and bank holding companies that
do not present similar risks to the financial stability of
the United States; and
(B) increase in stringency, based on the considerations
identified in subsection (b)(3).
(2) Limitation on bank holding companies.--Any standards
recommended under subsections (b) through (f) shall not apply
to any bank holding company with total consolidated assets of
less than $50,000,000,000. The Council may recommend an asset
threshold greater than $50,000,000,000 for the applicability
of any particular standard under those subsections.
(b) Development of Prudential Standards.--
(1) In general.--The recommendations of the Council under
subsection (a) may include--
(A) risk-based capital requirements;
(B) leverage limits;
(C) liquidity requirements;
(D) resolution plan and credit exposure report
requirements;
(E) concentration limits;
(F) a contingent capital requirement;
(G) enhanced public disclosures; and
(H) overall risk management requirements.
(2) Prudential standards for foreign financial companies.--
In making recommendations concerning the standards set forth
in paragraph (1) that would apply to foreign nonbank
financial companies supervised by the Board of Governors or
foreign-based bank holding companies, the Council shall give
due regard to the principle of national treatment and
competitive equity.
(3) Considerations.--In making recommendations concerning
prudential standards under paragraph (1), the Council shall--
(A) take into account differences among nonbank financial
companies supervised by the Board of Governors and bank
holding companies described in subsection (a), based on--
(i) the factors described in subsections (a) and (b) of
section 113;
(ii) whether the company owns an insured depository
institution;
(iii) nonfinancial activities and affiliations of the
company; and
(iv) any other factors that the Council determines
appropriate; and
(B) to the extent possible, ensure that small changes in
the factors listed in subsections (a) and (b) of section 113
would not result in sharp, discontinuous changes in the
prudential standards established under paragraph (1).
(c) Contingent Capital.--
(1) Study required.--The Council shall conduct a study of
the feasibility, benefits, costs, and structure of a
contingent capital requirement for nonbank financial
companies supervised by the Board of Governors and bank
holding companies described in subsection (a), which study
shall include--
(A) an evaluation of the degree to which such requirement
would enhance the safety and soundness of companies subject
to the requirement, promote the financial stability of the
United States, and reduce risks to United States taxpayers;
(B) an evaluation of the characteristics and amounts of
convertible debt that should be required;
(C) an analysis of potential prudential standards that
should be used to determine whether the contingent capital of
a company

[[Page S3113]]

would be converted to equity in times of financial stress;
(D) an evaluation of the costs to companies, the effects on
the structure and operation of credit and other financial
markets, and other economic effects of requiring contingent
capital;
(E) an evaluation of the effects of such requirement on the
international competitiveness of companies subject to the
requirement and the prospects for international coordination
in establishing such requirement; and
(F) recommendations for implementing regulations.
(2) Report.--The Council shall submit a report to Congress
regarding the study required by paragraph (1) not later than
2 years after the date of enactment of this Act.
(3) Recommendations.--
(A) In general.--Subsequent to submitting a report to
Congress under paragraph (2), the Council may make
recommendations to the Board of Governors to require any
nonbank financial company supervised by the Board of
Governors and any bank holding company described in
subsection (a) to maintain a minimum amount of long-term
hybrid debt that is convertible to equity in times of
financial stress.
(B) Factors to consider.--In making recommendations under
this subsection, the Council shall consider--
(i) an appropriate transition period for implementation of
a conversion under this subsection;
(ii) the factors described in subsection (b)(3);
(iii) capital requirements applicable to a nonbank
financial company supervised by the Board of Governors or a
bank holding company described in subsection (a), and
subsidiaries thereof;
(iv) results of the study required by paragraph (1); and
(v) any other factor that the Council deems appropriate.
(d) Resolution Plan and Credit Exposure Reports.--
(1) Resolution plan.--The Council may make recommendations
to the Board of Governors concerning the requirement that
each nonbank financial company supervised by the Board of
Governors and each bank holding company described in
subsection (a) report periodically to the Council, the Board
of Governors, and the Corporation, the plan of such company
for rapid and orderly resolution in the event of material
financial distress or failure.
(2) Credit exposure report.--The Council may make
recommendations to the Board of Governors concerning the
advisability of requiring each nonbank financial company
supervised by the Board of Governors and bank holding company
described in subsection (a) to report periodically to the
Council, the Board of Governors, and the Corporation on--
(A) the nature and extent to which the company has credit
exposure to other significant nonbank financial companies and
significant bank holding companies; and
(B) the nature and extent to which other such significant
nonbank financial companies and significant bank holding
companies have credit exposure to that company.
(e) Concentration Limits.--In order to limit the risks that
the failure of any individual company could pose to nonbank
financial companies supervised by the Board of Governors or
bank holding companies described in subsection (a), the
Council may make recommendations to the Board of Governors to
prescribe standards to limit such risks, as set forth in
section 165.
(f) Enhanced Public Disclosures.--The Council may make
recommendations to the Board of Governors to require periodic
public disclosures by bank holding companies described in
subsection (a) and by nonbank financial companies supervised
by the Board of Governors, in order to support market
evaluation of the risk profile, capital adequacy, and risk
management capabilities thereof.

SEC. 116. REPORTS.

(a) In General.--Subject to subsection (b), the Council,
acting through the Office of Financial Research, may require
a bank holding company with total consolidated assets of
$50,000,000,000 or greater or a nonbank financial company
supervised by the Board of Governors, and any subsidiary
thereof, to submit certified reports to keep the Council
informed as to--
(1) the financial condition of the company;
(2) systems for monitoring and controlling financial,
operating, and other risks;
(3) transactions with any subsidiary that is a depository
institution; and
(4) the extent to which the activities and operations of
the company and any subsidiary thereof, could, under adverse
circumstances, have the potential to disrupt financial
markets or affect the overall financial stability of the
United States.
(b) Use of Existing Reports.--
(1) In general.--For purposes of compliance with subsection
(a), the Council, acting through the Office of Financial
Research, shall, to the fullest extent possible, use--
(A) reports that a bank holding company, nonbank financial
company supervised by the Board of Governors, or any
functionally regulated subsidiary of such company has been
required to provide to other Federal or State regulatory
agencies;
(B) information that is otherwise required to be reported
publicly; and
(C) externally audited financial statements.
(2) Availability.--Each bank holding company described in
subsection (a) and nonbank financial company supervised by
the Board of Governors, and any subsidiary thereof, shall
provide to the Council, at the request of the Council, copies
of all reports referred to in paragraph (1).
(3) Confidentiality.--The Council shall maintain the
confidentiality of the reports obtained under subsection (a)
and paragraph (1)(A) of this subsection.

SEC. 117. TREATMENT OF CERTAIN COMPANIES THAT CEASE TO BE
BANK HOLDING COMPANIES.

(a) Applicability.--This section shall apply to any entity
or a successor entity that--
(1) was a bank holding company having total consolidated
assets equal to or greater than $50,000,000,000 as of January
1, 2010; and
(2) received financial assistance under or participated in
the Capital Purchase Program established under the Troubled
Asset Relief Program authorized by the Emergency Economic
Stabilization Act of 2008.
(b) Treatment.--If an entity described in subsection (a)
ceases to be a bank holding company at any time after January
1, 2010, then such entity shall be treated as a nonbank
financial company supervised by the Board of Governors, as if
the Council had made a determination under section 113 with
respect to that entity.
(c) Appeal.--
(1) Request for hearing.--An entity may request, in
writing, an opportunity for a written or oral hearing before
the Council to appeal its treatment as a nonbank financial
company supervised by the Board of Governors in accordance
with this section. Upon receipt of the request, the Council
shall fix a time (not later than 30 days after the date of
receipt of the request) and place at which such entity may
appear, personally or through counsel, to submit written
materials (or, at the sole discretion of the Council, oral
testimony and oral argument).
(2) Decision.--
(A) Proposed decision.--Not later than 60 days after the
date of a hearing under paragraph (1), the Council shall
submit a report to, and may testify before, the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives on the proposed decision of the Council
regarding an appeal under paragraph (1), which report shall
include a statement of the basis for the proposed decision of
the Council.
(B) Notice of final decision.--The Council shall notify the
subject entity of the final decision of the Council regarding
an appeal under paragraph (1), which notice shall contain a
statement of the basis for the final decision of the Council,
not later than 60 days after the later of--
(i) the date of the submission of the report under
subparagraph (A); or
(ii) if the Committee on Banking, Housing, and Urban
Affairs of the Senate or the Committee on Financial Services
of the House of Representatives holds one or more hearings
regarding such report, the date of the last such hearing.
(C) Considerations.--In making a decision regarding an
appeal under paragraph (1), the Council shall consider
whether the company meets the standards under section 113(a)
or 113(b), as applicable, and the definition of the term
``nonbank financial company'' under section 102. The decision
of the Council shall be final, subject to the review under
paragraph (3).
(3) Review.--If the Council denies an appeal under this
subsection, the Council shall, not less frequently than
annually, review and reevaluate the decision.

SEC. 118. COUNCIL FUNDING.

Any expenses of the Council shall be treated as expenses
of, and paid by, the Office of Financial Research.

SEC. 119. RESOLUTION OF SUPERVISORY JURISDICTIONAL DISPUTES
AMONG MEMBER AGENCIES.

(a) Request for Dispute Resolution.--The Council shall
resolve a dispute among 2 or more member agencies, if--
(1) a member agency has a dispute with another member
agency about the respective jurisdiction over a particular
bank holding company, nonbank financial company, or financial
activity or product (excluding matters for which another
dispute mechanism specifically has been provided under
Federal law);
(2) the Council determines that the disputing agencies
cannot, after a demonstrated good faith effort, resolve the
dispute without the intervention of the Council; and
(3) any of the member agencies involved in the dispute--
(A) provides all other disputants prior notice of the
intent to request dispute resolution by the Council; and
(B) requests in writing, not earlier than 14 days after
providing the notice described in subparagraph (A), that the
Council resolve the dispute.
(b) Council Decision.--The Council shall resolve each
dispute described in subsection (a)--
(1) within a reasonable time after receiving the dispute
resolution request;
(2) after consideration of relevant information provided by
each agency party to the dispute; and
(3) by agreeing with 1 of the disputants regarding the
entirety of the matter, or by determining a compromise
position.
(c) Form and Binding Effect.--A Council decision under this
section shall--

[[Page S3114]]

(1) be in writing;
(2) include an explanation of the reasons therefor; and
(3) be binding on all Federal agencies that are parties to
the dispute.

SEC. 120. ADDITIONAL STANDARDS APPLICABLE TO ACTIVITIES OR
PRACTICES FOR FINANCIAL STABILITY PURPOSES.

(a) In General.--The Council may issue recommendations to
the primary financial regulatory agencies to apply new or
heightened standards and safeguards, including standards
enumerated in section 115, for a financial activity or
practice conducted by bank holding companies or nonbank
financial companies under their respective jurisdictions, if
the Council determines that the conduct of such activity or
practice could create or increase the risk of significant
liquidity, credit, or other problems spreading among bank
holding companies and nonbank financial companies or the
financial markets of the United States.
(b) Procedure for Recommendations to Regulators.--
(1) Notice and opportunity for comment.--The Council shall
consult with the primary financial regulatory agencies and
provide notice to the public and opportunity for comment for
any proposed recommendation that the primary financial
regulatory agencies apply new or heightened standards and
safeguards for a financial activity or practice.
(2) Criteria.--The new or heightened standards and
safeguards for a financial activity or practice recommended
under paragraph (1)--
(A) shall take costs to long-term economic growth into
account; and
(B) may include prescribing the conduct of the activity or
practice in specific ways (such as by limiting its scope, or
applying particular capital or risk management requirements
to the conduct of the activity) or prohibiting the activity
or practice.
(c) Implementation of Recommended Standards.--
(1) Role of primary financial regulatory agency.--
(A) In general.--Each primary financial regulatory agency
may impose, require reports regarding, examine for compliance
with, and enforce standards in accordance with this section
with respect to those entities for which it is the primary
financial regulatory agency.
(B) Rule of construction.--The authority under this
paragraph is in addition to, and does not limit, any other
authority of a primary financial regulatory agency.
Compliance by an entity with actions taken by a primary
financial regulatory agency under this section shall be
enforceable in accordance with the statutes governing the
respective jurisdiction of the primary financial regulatory
agency over the entity, as if the agency action were taken
under those statutes.
(2) Imposition of standards.--The primary financial
regulatory agency shall impose the standards recommended by
the Council in accordance with subsection (a), or similar
standards that the Council deems acceptable, or shall explain
in writing to the Council, not later than 90 days after the
date on which the Council issues the recommendation, why the
agency has determined not to follow the recommendation of the
Council.
(d) Report to Congress.--The Council shall report to
Congress on--
(1) any recommendations issued by the Council under this
section;
(2) the implementation of, or failure to implement such
recommendation on the part of a primary financial regulatory
agency; and
(3) in any case in which no primary financial regulatory
agency exists for the nonbank financial company conducting
financial activities or practices referred to in subsection
(a), recommendations for legislation that would prevent such
activities or practices from threatening the stability of the
financial system of the United States.
(e) Effect of Rescission of Identification.--
(1) Notice.--The Council may recommend to the relevant
primary financial regulatory agency that a financial activity
or practice no longer requires any standards or safeguards
implemented under this section.
(2) Determination of primary financial regulatory agency to
continue.--
(A) In general.--Upon receipt of a recommendation under
paragraph (1), a primary financial regulatory agency that has
imposed standards under this section shall determine whether
standards that it has imposed under this section should
remain in effect.
(B) Appeal process.--Each primary financial regulatory
agency that has imposed standards under this section shall
promulgate regulations to establish a procedure under which
entities under its jurisdiction may appeal a determination by
such agency under this paragraph that standards imposed under
this section should remain in effect.

SEC. 121. MITIGATION OF RISKS TO FINANCIAL STABILITY.

(a) Mitigatory Actions for Companies Without Significant
International Operations.--
(1) In general.--If the Council determines that a bank
holding company with total consolidated assets of
$50,000,000,000 or more, or a nonbank financial company
supervised by the Board of Governors, that does not have
significant international operations or activities, may pose
a grave threat to the financial stability of the United
States, the Council, upon an affirmative vote of 50 percent
or more of the Council members then serving, shall require
the subject company to take one or more of the actions
described in paragraph (2), until such company does not pose
a grave threat to the financial stability of the United
States.
(2) Actions.--The Council may require an entity described
in paragraph (1)--
(A) to terminate one or more activities;
(B) to impose conditions on the manner in which the company
conducts one or more activities;
(C) to divest, sell or otherwise transfer assets,
operations or off balance sheet items or activities to
unaffiliated entities; or
(D) take any combination of the actions described in
subparagraphs (A) through (C).
(b) Mitigatory Actions for Companies With Significant
International Operations.--
(1) In general.--If the Council determines that a bank
holding company with total consolidated assets of
$50,000,000,000 or more, or a nonbank financial company
supervised by the Board of Governors, has significant
international operations or activities of a size, scope,
nature, scale, concentration, volume, frequency of
transactions, or in any other manner or method, and would
pose a grave threat to the financial stability of the United
States, and would, therefore, require international or cross-
border resolution in the event of failure, the Council, upon
an affirmative vote of 50 percent or more of the Council
members then serving, shall require the subject company to
take one or more of the actions described in subparagraph
(B), until such company's international operations or
activities no longer pose such a threat.
(2) Actions.--The Council may require an entity described
in paragraph (1)--
(A) to terminate one or more activities;
(B) to impose conditions on the manner in which the company
conducts one or more activities;
(C) to divest, sell or otherwise transfer assets,
operations or off balance sheet items or activities to
unaffiliated entities; or
(D) to take any combination of the actions described in
subparagraphs (A) through (C).
(3) International resolution mechanism.--Because only a
binding comprehensive international resolution mechanism will
mitigate the grave threat such a subject company poses to the
United States, this requirement shall remain in effect until
the Council, upon an affirmative vote of not fewer than \2/3\
of the Council members then serving, votes that there is a
binding, effective, and comprehensive international
resolution mechanism. At such time, all such companies shall
be transitioned to regulation under paragraph (1).
(4) International cooperation.--The Council shall work
promptly and urgently with all appropriate countries and
international authorities to establish a binding, effective,
and comprehensive international resolution mechanism, and
shall report to Congress not less than once every 6 months on
all activities taken in connection with such effort,
including actions taken or not taken by other countries and
international organizations. The Council shall designate a
Vice Chairperson with the sole responsibility for working
with international authorities to establish such a resolution
mechanism.
(c) The Council shall determine the appropriate time
periods for any actions pursuant to this subsection, but any
such time periods shall be as soon as prudently possible, and
in no event later than 2 years after such action is ordered.
(d) Notice and Hearing.--
(1) In general.--The Council, in consultation with the
Board of Governors, shall provide to a company described in
subsection (a) or (b) written notice that such company is
being considered for mitigatory action pursuant to this
section, including an explanation of the basis for, and
description of, the proposed mitigatory action.
(2) Hearing.--Not later than 30 days after the date of
receipt of notice under paragraph (1), the company may
request, in writing, an opportunity for a written or oral
hearing before the Council to contest the proposed mitigatory
action. Upon receipt of a timely request, the Council shall
fix a time (not later than 30 days after the date of receipt
of the request) and place at which such company may appear,
personally or through counsel, to submit written materials
(or, at the discretion of the Council, in consultation with
the Board of Governors, oral testimony and oral argument).
(3) Decision.--Not later than 60 days after the date of a
hearing under paragraph (2), or not later than 60 days after
the provision of a notice under paragraph (1) if no hearing
was held, the Council shall notify the company of the final
decision of the Council, including the results of the vote of
the Council, as described in subsection (a) or (b).
(e) Factors for Consideration.--The Council and the Board
of Governors shall take into consideration the factors set
forth in subsection (a) or (b) of section 113, as applicable,
in a determination described in subsection (a) and (b), and
in a decision described in subsection (d).
(f) Application to Foreign Financial Companies.--The
Council may prescribe regulations regarding the application
of this section to foreign nonbank financial companies
supervised by the Board of Governors and foreign-based bank
holding companies, giving due regard to the principle of
national treatment and competitive equity.

[[Page S3115]]

______

SA 3812. Mr. HARKIN (for himself, Mr. Schumer, and Mr. Sanders)
submitted an amendment intended to be proposed to amendment SA 3739
proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to
the bill S. 3217, to promote the financial stability of the United
States by improving accountability and transparency in the financial
system, to end ``too big to fail,'' to protect the American taxpayer by
ending bailouts, to protect consumers from abusive financial services
practices, and for other purposes; which was ordered to lie on the
table; as follows:

At the end of subtitle G of title X, add the following:

SEC. 1077. FAIR ATM FEES.

(a) Amendment to the Electronic Fund Transfer Act.--Section
904(d)(3) of the Electronic Fund Transfer Act (15 U.S.C.
1693b(d)(3)) is amended--
(1) in subparagraph (A), by striking the subparagraph
heading and inserting the following:
``(A) Fee disclosure.--'' ;
(2) by redesignating subparagraph (D) as subparagraph (E);
and
(3) by inserting after subparagraph (C) the following:
``(D) Regulation of fees.--The regulations prescribed under
paragraph (1) shall require any fee charged by an automated
teller machine operator for a transaction conducted at that
automated teller machine to bear a reasonable relation to the
cost of processing the transaction, and in no case shall any
such fee exceed $0.50.''.
(b) Effective Date.--The amendments made by this section
shall become effective not later than 6 months after the date
of enactment of this Act.
(c) Rulemaking.--The Bureau shall issue such rules as may
be necessary to carry out this section, not later than 6
months after the date of enactment of this Act.
______

SA 3813. Ms. KLOBUCHAR (for herself and Mr. Bennet), submitted an
amendment intended to be proposed to amendment SA 3739 proposed by Mr.
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217,
to promote the financial stability of the United States by improving
accountability and transparency in the financial system, to end ``too
big to fail,'' to protect the American taxpayer by ending bailouts, to
protect consumers from abusive financial services practices, and for
other purposes; which was ordered to lie on the table; as follows:

On page 1440, after line 21, insert the following:
(c) Requirements on Mortgage Originators.--Section 129 of
the Truth in Lending Act (15 U.S.C. 1639) is amended--
(1) by striking subsection (j) and inserting the following:
``(j) Consequence of Failure to Comply.--Any mortgage made
in violation of a provision of this section shall be deemed a
failure to deliver the material disclosures required under
this title, for the purpose of section 125.''; and
(2) by adding at the end the following:
``(n) Requirements for Mortgage Originators.--
``(1) Ability to pay.--
``(A) In general.--No creditor or mortgage broker may make,
provide, or arrange for any consumer credit transaction
secured by the principal dwelling of a consumer without first
verifying the reasonable ability of the consumer to pay the
scheduled payments of, as applicable--
``(i) principal;
``(ii) interest;
``(iii) real estate taxes; and
``(iv) homeowner insurance, assessments, and mortgage
insurance premiums.
``(B) Variable interest rate.--In the case of any consumer
credit transaction secured by the principal dwelling of a
consumer for which the applicable annual percentage rate may
vary over the life of the credit, the reasonable ability to
pay shall be determined, for purposes of this paragraph, on
the basis of a fully indexed rate plus 200 basis points and a
repayment schedule which achieves full amortization over the
life of the extension of credit.
``(C) Verification of consumer income and financial
resources.--
``(i) In general.--In the case of any consumer credit
transaction secured by the principal dwelling of a consumer,
the income and financial resources of the consumer shall be
verified for purposes of this paragraph by tax returns,
payroll receipts, bank records, or other similarly reliable
documents.
``(ii) Consumer statement insufficient.--A statement by a
consumer of income or financial resources shall not be
sufficient to establish the existence of any income or
financial resources when verifying the reasonable ability of
the consumer to repay any consumer credit transaction secured
by the principal dwelling of the consumer for purposes of
this paragraph.
``(D) Other criteria.--A creditor or mortgage broker may
rely on additional criteria other than income and financial
resources to establish the reasonable ability of a consumer
to repay any consumer credit transaction secured by the
principal dwelling of the consumer, to the extent such other
criteria are also verified through reasonably reliable
methods and documentation.
``(E) Equity in dwelling not to be taken into account.--The
consumer's equity in the principal dwelling that secures or
would secure the consumer credit transaction may not be used
to establish the ability to make the payments described in
subparagraph (A) with respect to such transaction.
``(2) Prohibition on steering.--
``(A) In general.--In connection with a credit transaction
secured by the principal dwelling, a mortgage broker or
creditor may not--
``(i) steer, counsel, or direct a consumer to rates,
charges, principal amount, or prepayment terms that are more
expensive for that which the consumer qualifies; or
``(ii) make, provide, or arrange for any consumer credit
transaction secured by the principal dwelling of a consumer
that is more expensive than that for which the consumer
qualifies.
``(B) Duties to consumers.--If unable to suggest, offer, or
recommend to a consumer a home loan that is not more
expensive than that for which the consumer qualifies, a
mortgage originator shall--
``(i) based on the information reasonably available and
using the skill, care, and diligence reasonably expected for
a mortgage originator, originate or otherwise facilitate a
suitable home mortgage loan by another creditor to a
consumer, if permitted by and in accordance with all
otherwise applicable law; or
``(ii) disclose to the consumer--

``(I) that the creditor does not offer a home mortgage loan
that is not more expensive than a loan for which the consumer
qualifies, but that other creditors may offer such a loan;
and
``(II) the reasons that the products and services offered
by the mortgage originator are not available to or reasonably
advantageous for the consumer.

``(C) Prohibited conduct.--In connection with a credit
transaction secured by the principal dwelling, a mortgage
originator may not--
``(i) mischaracterize the credit history of a consumer or
the home loans available to a consumer;
``(ii) mischaracterize or suborn the mischaracterization of
the appraised value of the property securing the extension of
credit; and
``(iii) if unable to suggest, offer, or recommend to a
consumer a loan that is not more expensive than a loan for
which the consumer qualifies, discourage a consumer from
seeking a home mortgage loan from another creditor or with
another mortgage originator.''.
______

SA 3814. Mr. GRASSLEY submitted an amendment intended to be proposed
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial
stability of the United States by improving accountability and
transparency in the financial system, to end ``too big to fail,'' to
protect the American taxpayer by ending bailouts, to protect consumers
from abusive financial services practices, and for other purposes;
which was ordered to lie on the table; as follows:

Strike 989B, insert the following:

SEC. 989B. DESIGNATED FEDERAL ENTITY INSPECTORS GENERAL
INDEPENDENCE.

Section 8G of the Inspector General Act of 1978 (5 U.S.C.
App.) is amended--
(1) in subsection (a)(4)--
(A) in the matter preceding subparagraph (A), by inserting
``the board or commission of the designated Federal entity,
or in the event the designated Federal entity does not have a
board or commission,'' after ``means'';
(B) in subparagraph (A), by striking ``and'' after the
semicolon; and
(C) by adding after subparagraph (B) the following:
``(C) with respect to the Federal Labor Relations
Authority, such term means the members of the Authority
(described under section 7104 of title 5, United States
Code);
``(D) with respect to the National Archives and Records
Administration, such term means the Archivist of the United
States;
``(E) with respect to the National Credit Union
Administration, such term means the National Credit Union
Administration Board (described under section 102 of the
Federal Credit Union Act (12 U.S.C. 1752a);
``(F) with respect to the National Endowment of the Arts,
such term means the National Council on the Arts;
``(G) with respect to the National Endowment for the
Humanities, such term means the National Council on the
Humanities; and
``(H) with respect to the Peace Corps, such term means the
Director of the Peace Corps;''; and
(2) in subsection (h), by inserting ``if the designated
Federal entity is not a board or commission, include'' after
``designated Federal entities and''.

SEC. 989C. STRENGTHENING INSPECTOR GENERAL ACCOUNTABILITY.

Section 5(a) of the Inspector General Act of 1978 (5 U.S.C.
App.) is amended--
(1) in paragraph (12), by striking ``and'' after the
semicolon;

[[Page S3116]]

(2) in paragraph (13), by striking the period and inserting
a semicolon; and
(3) by adding at the end the following:
``(14)(A) an appendix containing the results of any peer
review conducted by another Office of Inspector General
during the reporting period; or
``(B) if no peer review was conducted within that reporting
period, a statement identifying the date of the last peer
review conducted by another Office of Inspector General;
``(15) a list of any outstanding recommendations from any
peer review conducted by another Office of Inspector General
that have not been fully implemented, including a statement
describing the status of the implementation and why
implementation is not complete; and
``(16) a list of any peer reviews conducted by the
Inspector General of another Office of the Inspector General
during the reporting period, including a list of any
outstanding recommendations made from any previous peer
review (including any peer review conducted before the
reporting period) that remain outstanding or have not been
fully implemented.''.

SEC. 989D. REMOVAL OF INSPECTORS GENERAL OF DESIGNATED
FEDERAL ENTITIES.

Section 8G(e) of the Inspector General Act of 1978 (5
U.S.C. App.) is amended--
(1) by redesignating the sentences following ``(e)'' as
paragraph (2); and
(2) by striking ``(e)'' and inserting the following:
``(e)(1) Each Inspector General of a designated Federal
entity may at any time be removed, but only for cause. In the
case of a designated Federal entity for which a board or
commission is the head of the designated Federal entity, a
removal under this subsection may only be made upon the
written concurrence of a \2/3\ majority of the board or
commission.''.

____________________