To provide for the independence of Inspectors General of certain designated Federal entities, and for other purposes.

SA 4072. Mr. GRASSLEY (for himself and Mrs. McCaskill) 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; 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;
(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

[[Page S3919]]

``(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) 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.''.

SEC. 989E. 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(k) of the Emergency
Economic Stabilization Act of 2008 (12 U.S.C. 5231(k))).
(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) Working groups to evaluate council.--
(A) 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.
(B) 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 paragraph to enable it
to carry out its duties.
(C) Reports.--A Council of Inspectors General Working Group
established under this paragraph shall submit regular reports
to the Council and to Congress on its evaluations pursuant to
this paragraph.
(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.
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