S.Amdt. 2195

SA 2195. Mr. CASSIDY submitted an amendment intended to be proposed
by him to the bill S. 2155, to promote economic growth, provide
tailored regulatory relief, and enhance consumer protections, and for
other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ___. RESTORING MAIN STREET INVESTOR PROTECTION AND
CONFIDENCE.

(a) Securities Investor Protection Act of 1970
Amendments.--
(1) Appointment of trustees.--
(A) In general.--Section 5(b)(3) of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78eee(b)(3)) is amended to
read as follows:
``(3) Appointment of trustee and attorney.--
``(A) In general.--If the court issues a protective decree
under paragraph (1), such court shall forthwith appoint, as
trustee for the liquidation of the business of the debtor and
as attorney for the trustee, such persons as the court
determines best fit to serve as trustee and as attorney from
among the persons selected by the Commission pursuant to
subparagraph (B). The persons appointed as trustee and as
attorney for the trustee may be associated with the same
firm.
``(B) Commission candidates.--The Commission shall maintain
a list of candidates for the position of trustee and attorney
for the trustee for a debtor in a liquidation proceedings,
and shall periodically update the list, as appropriate. With
respect to a debtor and upon the court issuing a protective
decree under paragraph (1), the Commission shall forthwith
provide the court with such list.
``(C) Disinterest requirement.--No person may be appointed
to serve as trustee or attorney for the trustee if such
person is not disinterested within the meaning of paragraph
(6), except that for any specified purpose other than to
represent a trustee in conducting a liquidation proceeding,
the trustee may, with the approval of SIPC and the court,
employ an attorney who is not disinterested.
``(D) Qualification.--A trustee appointed under this
paragraph shall qualify by filing a bond in the manner
prescribed by section 322 of title 11, United States Code,
except that neither SIPC nor any employee of SIPC shall be
required to file a bond when appointed as trustee.
``(E) Prohibition on trustee serving in multiple
liquidations.--A trustee may not be appointed under this
paragraph if the trustee is currently serving as trustee for
the liquidation of the business of another debtor under this
Act.''.
(B) Compensation for trustee and attorney.--Section 5(b)(5)
of the Securities Investor Protection Act of 1970 (15 U.S.C.
78eee(b)(5)) is amended--
(i) in subparagraph (A), by adding at the end the
following: ``The court shall publicly disclose all such
allowances that are granted.'';
(ii) by amending subparagraph (C) to read as follows:
``(C) Awarding of allowances.--Whenever an application for
allowances is filed pursuant to subparagraph (B), the court
shall determine the amount of allowances, giving due
consideration to the nature, extent, and value of the
services rendered.''; and
(iii) by adding at the end the following:
``(F) SIPC disclosures.--SIPC shall issue quarterly public
reports on--
``(i) all payments made by SIPC to the trustee;
``(ii) all other costs in connection with the liquidation
proceeding, including legal and accounting costs; and
``(iii) all additional expenses incurred by SIPC, and the
nature of such expenses.''.
(C) Application.--The amendments made by this paragraph
shall apply with respect to trustees and attorneys appointed
after the date of enactment of this Act.
(2) Definition of customer status.--Section 16(2)(B) of the
Securities Investor Protection Act of 1970 (15 U.S.C.
78lll(2)(B)) is amended--
(A) in clause (ii), by striking ``; and'' and inserting a
semicolon;
(B) in clause (iii), by striking the period at the end and
inserting a semicolon; and
(C) by adding at the end the following:
``(iv) any person that had cash or securities that were
converted or otherwise misappropriated by the debtor (or any
person that controls, is controlled by, or is under common
control with the debtor, if such person was operating through
the debtor), irrespective of whether the debtor held or
otherwise had custody, possession, or control of such cash or
securities; and
``(v) any other person that the Commission, in its
discretion and without any need for court approval, deems a
customer of the debtor.''.
(3) Commission authority to require sipc action.--Section
11(b) of the Securities Investor Protection Act of 1970 (15
U.S.C. 78ggg(b)) is amended to read as follows:
``(b) Commission Authority To Require SIPC Action.--In the
event of the refusal of SIPC to commit its funds or otherwise
to act for the protection of customers of any member of SIPC,
the Commission may require SIPC to discharge its obligations
under this Act without court approval.''.
(b) Application.--Except as provided under subsection
(a)(1)(C), the amendments made by subsection (a) shall apply
with respect to a liquidation proceeding under the Securities
Investor Protection Act of 1970 (15 U.S.C. 78aaa et seq.)
that--
(1) was in progress on the date of enactment of this Act;
or
(2) is initiated after the date of enactment of this Act.
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