H.R. 4116 — what changed

changed “(iv) GAO Review—The Comptroller General of the United States shall, not later than later than 60 days after a determination is made under clause (i), and again 180 days thereafter, review and report to the Congress on the determination under clause (i), including—review

changed “(I) In general—The Comptroller General of the basis for United States shall, not later than later than 60 days after a determination is made under clause (i), and again 180 days thereafter, review and report to the determination;Congress on the determination under clause (i), including—

changed “(II) “(aa) the purpose basis for which any action was taken pursuant to such clause;the determination;

changed “(III) the likely effect of “(bb) the determination and such purpose for which any action on the incentives and conduct of insured depository institutions and uninsured depositors;was taken pursuant to such clause;

changed “(IV) any mismanagement by “(cc) the executives and board likely effect of the insured depository institution that contributed to determination and such action on the failure incentives and conduct of the insured depository institution;institutions and uninsured depositors;

changed “(V) a review “(dd) any mismanagement by the executives and board of the compensation practices insured depository institution that contributed to the failure of the insured depository institution;

changed “(VI) any supervisory or regulatory shortcomings with respect to “(ee) a review of the primary Federal banking regulators compensation practices of the insured depository institution;

changed “(VII) “(ff) any actions taken by supervisory or regulatory shortcomings with respect to the appropriate Federal banking regulators, Financial Stability Oversight Council, Treasury Department, and other relevant financial regulators in relation to agency of the bank’s failure; andinsured depository institution;

changed “(VIII) “(gg) any additional actions taken by the Federal banking regulators, Financial Stability Oversight Council, Treasury Department, and other relevant entities or activities that may have contributed financial regulators in relation to the failure of the insured depository institution, including with respect to auditing, accounting, credit rating agencies, investment bank underwriters, and emergency liquidity options such as loans from the Federal Reserve or advances through the Federal Home Loan Bank system.”institution; and

added “(hh) any additional relevant entities or activities that may have contributed to the failure of the insured depository institution, including with respect to auditing, accounting, credit rating agencies, investment bank underwriters, and emergency liquidity options such as loans from the Federal reserve banks or advances through the Federal Home Loan Bank system.

added “(II) Rule of construction—Nothing in this clause or a report issued pursuant to this clause may be construed to limit the authority of a Federal agency to enforce violations of Federal statutes, rules, or orders.”

changed “(12) Primary Federal Regulator report—The primary Federal regulator of an insured depository institution about which a determination is made under clause (i) shall, not later than 60 days after the date of such determination, and again 180 days thereafter, submit a report to the Congress that—Appropriate federal banking agency report

changed “(A) discloses all confidential supervisory information held by such primary In general—The appropriate Federal regulator that relates to the failed banking agency of an insured depository institution;institution about which a determination is made under paragraph (4)(G)(i) shall, not later than 90 days after the date of such determination, and again 210 days thereafter, submit a report to the Congress that discloses the following:

changed “(B) examines any mismanagement by the executives and board of the insured depository institution that contributed “(i) Subject to such redactions as the failure appropriate Federal banking agency determines appropriate of the insured depository institution;personally identifiable information about customers and other financial institutions (as such term is defined under section 11(e)(9)(D)), all—

changed “(C) discloses any supervisory or regulatory shortcomings by such primary Federal regulator with respect “(I) reports of examination and inspection that relate to the failed insured depository institution;institution in the previous 3-year period;

changed “(D) describes any dynamics that the primary Federal regulator determines may have contributed to the failure “(II) formal communications of a material supervisory determination conveyed to the failed insured depository institution; institution in the previous 3-year period; and

changed “(E) includes “(III) any supervisory, regulatory, additional exam reports and legislative recommendations such primary correspondence that the appropriate Federal regulator banking agency determines may have be relevant to improve the safety and soundness failure of similarly situated the insured depository institutions, the banking system, and financial stability.”institution.

added “(ii) An examination of any mismanagement by the executives and board of the insured depository institution that contributed to the failure of the insured depository institution.

added “(iii) Any supervisory or regulatory shortcomings by such appropriate Federal banking agency with respect to the insured depository institution.

added “(iv) Any dynamics that the appropriate Federal banking agency determines may have contributed to the failure of the insured depository institution.

added “(v) Any supervisory, regulatory, and legislative recommendations such appropriate Federal banking agency may have to improve the safety and soundness of similarly situated insured depository institutions, the banking system, and financial stability.

added “(B) Protection of sensitive information

added “(i) Effect on privilege—The provision of any information by a Federal banking agency under this paragraph may not be construed as—

added “(I) waiving, destroying, or otherwise affecting any privilege applicable to the information; or

added “(II) waiving any exemption applicable to the information under section 552 of title 5 United States Code (commonly known as the “Freedom of Information Act”).

added “(ii) Transparency

added “(I) In general—A Federal banking agency shall publish materials contained in a report required under subparagraph (A) to the fullest extent possible to promote transparency.

added “(II) Consultation on omitting materials—If a Federal banking agency determines particular materials described under subclause (I) should not be published, the Federal banking agency shall consult with the chair and ranking member of the Committee on Financial Services of the House of Representatives and the chair and ranking member of the Committee on Banking, Housing, and Urban Affairs of the Senate.

added “(III) Omitting materials—If, after the consultation required under subclause (II), the Federal banking agency determines there is a substantial public interest in not publishing such materials, the Federal banking agency shall provide those materials to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate with a written explanation describing the reasons for not publishing those materials.

added “(iii) Privilege—For purposes of this subparagraph, the term “privilege” includes any work-product, attorney-client, or other privilege recognized under Federal or State law.

added “(C) Report extension—A Federal banking agency may extend a deadline described under subparagraph (A) for an additional 60 days, if the Federal banking agency—

added “(i) faces ongoing circumstances that require the Federal banking agency to prioritize activities to promote stability of the U.S. banking system; and

added “(ii) notifies the Congress of such extension and the reasons for such extension.

added “(D) Consolidated reports—A Federal banking agency may consolidate multiple reports required under this paragraph so long as the individual reports being consolidated all meet the timing requirements under this paragraph.

added “(E) Rule of construction—Nothing in this paragraph or reports or materials provided pursuant to this paragraph may be construed to limit the authority of a Federal agency to enforce violations of Federal statutes, rules, or orders.”