House Report 111-41,sheading - SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF PROGRAM ACT OF 2009

[House Report 111-41, Part 1]
[From the U.S. Government Printing Office]

111th Congress Rept. 111-41
HOUSE OF REPRESENTATIVES
1st Session Part 1

======================================================================

SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF PROGRAM ACT OF
2009

_______

March 19, 2009.--Committed to the Whole House on the State of the Union
and ordered to be printed

_______

Mr. Frank of Massachusetts, from the Committee on Financial Services,
submitted the following

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany S. 383]

[Including cost estimate of the Congressional Budget Office]

The Committee on Financial Services, to whom was referred
the bill (S. 383) to amend the Emergency Economic Stabilization
Act of 2008 (division A of Public Law 110-343) to provide the
Special Inspector General with additional authorities and
responsibilities, and for other purposes, having considered the
same, report favorably thereon without amendment and recommend
that the bill do pass.

CONTENTS

Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Committee Consideration.......................................... 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 6
Performance Goals and Objectives................................. 6
New Budget Authority, Entitlement Authority, and Tax Expenditures 6
Committee Cost Estimate.......................................... 7
Congressional Budget Office Estimate............................. 7
Federal Mandates Statement....................................... 7
Advisory Committee Statement..................................... 8
Constitutional Authority Statement............................... 8
Applicability to Legislative Branch.............................. 8
Earmark Identification........................................... 8
Section-by-Section Analysis of the Legislation................... 8
Changes in Existing Law Made by the Bill, as Reported............ 9
Additional Views................................................. 13

Purpose and Summary

S. 383, the ``Special Inspector General for the Troubled
Asset Relief Program Act of 2009,'' would clarify the law
enforcement authority of the Special Inspector General and
provide additional hiring flexibility for the Office of the
Special Inspector General for the Troubled Asset Relief Program
(SIGTARP).
Specifically, S. 383 would amend the TARP provisions of the
Emergency Economic Stabilization Act of 2008 (EESA, P.L. 110-
343), by providing the SIG with more authority to examine
actions taken under TARP; clarifying the law enforcement
authority of the SIG; providing the SIG with temporary hiring
authority for six months; permitting the SIG the ability to
hire federal annuitants without the need for such hires to
offset their pension, and requiring the Treasury Department to
notify Congress of the reason for failing to follow any written
recommendations made by SIGTARP; requiring cooperation amongst
the Inspectors General that have oversight responsibility over
TARP; adding the SIGTARP to the council of Inspectors General;
and changing the timing of reporting requirements and the time
limit for release of funds to SIGTARP.

Background and Need for Legislation

Nearly five months ago, Congress enacted EESA, which
authorized the establishment of the Troubled Asset Relief
Program (TARP) within the Treasury Department, and created the
Office of Financial Stability within Treasury to implement
TARP. The Act also established the Office of the Special
Inspector General for the Troubled Asset Relief Program and
authorized $50 million for the office.
President Bush nominated Neil M. Barofsky on November 14,
2008, to serve as the Special Inspector General for TARP.
Subsequently, Mr. Barofsky was confirmed by the Senate on
December 8, 2008, and was sworn into office on December 15,
2008.
Senator Claire McCaskill introduced S. 383, the Special
Inspector General for the Troubled Asset Relief Program of
2009, on February 4, 2009. The Senate passed the bill by
unanimous consent on February 4, and the bill was subsequently
referred to the House Committees on Financial Services and
Oversight and Government Reform for consideration.
On February 24, 2009, the Subcommittee on Oversight and
Investigations held a hearing on TARP Oversight. At this
hearing, Mr. Barofsky testified that the additional hiring
flexibility provided by S. 383 is urgently needed to enable his
office to quickly hire experienced investigators to help
effectively and expeditiously carry out the congressional
mandate to ``conduct, supervise, and coordinate audits and
investigations of the purchase, management, and sale of assets
by the Secretary of the Treasury under any program established
by the Secretary'' under TARP.
On March 5, 2009, Subcommittee on Oversight and
Investigations Chairman Dennis Moore and Subcommittee Ranking
Member Judy Biggert introduced H.R. 1341, an identical version
of the Senate legislation. In introducing the companion
legislation, Chairman Moore and Ranking Member Biggert noted
that SIGTARP is the sole TARP oversight body charged with
criminal law enforcement authority, and given the scale of
government funds being quickly disbursed, the SIGTARP should
have every tool available to vigilantly monitor for any crimes
and waste, fraud or abuse related to the TARP program. Other
Members joining as co-sponsor include Representatives Bean,
Driehaus, Hinchey, Kilroy, Paulsen and Sherman.
The Committee is concerned about the inclusion and
utilization to the maximum extent possible of minority- and
women-owned businesses in all business and activities of the
Secretary and each assisted institution under TARP at all
levels, including in procurement, insurance, and all types of
contracts. As such, the Committee encourages the Special
Inspector General to closely monitor and provide ongoing
reports to the Congress on the ability of these groups to
participate under TARP, and any remedial actions that might
increase such participation. Furthermore, the Committee
encourages the Special Inspector General to consider examining
how TARP funding has been used to benefit smaller banks that
may be well-positioned to provide needed credit to families and
small businesses in their communities.

Hearings

The Subcommittee on Oversight and Investigations held a
hearing on February 24, 2009, on ``A Review of TARP Oversight,
Accountability and Transparency for U.S. Taxpayers.'' The
following witnesses testified:
Mr. Neil M. Barofsky, Special Inspector
General, Office of the Special Inspector General,
Troubled Asset Relief Program
Mr. Gene L. Dodaro, Acting Comptroller
General of the United States, Government Accountability
Office
Ms. Elizabeth Warren, Chair, Congressional
Oversight Panel & Leo Gottlieb Professor of Law,
Harvard University

Committee Consideration

The Committee on Financial Services met in open session on
March 11, 2009, and on March 12, 2009, ordered S. 383, the
``Special Inspector General for the Troubled Asset Relief
Program Act of 2009,'' favorably reported to the House by a
voice vote.

Committee Votes

Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. A
motion by Mr. Frank to report the bill to the House with a
favorable recommendation was agreed to by a voice vote.
During the consideration of the bill, the following
amendments were disposed of by record votes. The names of
Members voting for and against follow:
An amendment by Mr. Paulsen, No. 1, regarding a report on
assistance for smaller financial institutions, as amended, was
not agreed to by a record vote of 25 yeas, 35 nays and 1
present (FC-2):

RECORD VOTE NO. FC-2
----------------------------------------------------------------------------------------------------------------
Representative Aye Nay Present Representative Aye Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank....................... ....... X ......... Mr. Bachus........ X ........ ........
Mr. Kanjorski................... ....... X ......... Mr. Castle........ X ........ ........
Ms. Waters...................... ....... X ......... Mr. King (NY)..... X ........ ........
Mrs. Maloney.................... ....... X ......... Mr. Royce......... X ........ ........
Mr. Gutierrez................... ....... X ......... Mr. Lucas......... X ........ ........
Ms. Velazquez................... ....... X ......... Mr. Paul.......... X ........ ........
Mr. Watt........................ ....... X ......... Mr. Manzullo...... X ........ ........
Mr. Ackerman.................... ....... ........ ......... Mr. Jones......... X ........ ........
Mr. Sherman..................... ....... X ......... Mrs. Biggert...... X ........ ........
Mr. Meeks....................... ....... ........ ......... Mr. Miller (CA)... ........ ........ ........
Mr. Moore (KS).................. ....... X ......... Mrs. Capito....... X ........ ........
Mr. Capuano..................... ....... X ......... Mr. Hensarling.... X ........ ........
Mr. Hinojosa.................... ....... ........ ......... Mr. Garrett (NJ).. ........ ........ ........
Mr. Clay........................ ....... X ......... Mr. Barrett (SC).. X ........ ........
Mrs. McCarthy................... ....... X ......... Mr. Gerlach....... X ........ ........
Mr. Baca........................ ....... X ......... Mr. Neugebauer.... X ........ ........
Mr. Lynch....................... ....... X ......... Mr. Price (GA).... ........ ........ ........
Mr. Miller (NC)................. ....... X ......... Mr. McHenry....... X ........ ........
Mr. Scott....................... ....... X ......... Mr. Campbell...... ........ X ........
Mr. Green....................... ....... X ......... Mr. Putnam........ X ........ ........
Mr. Cleaver..................... ....... X ......... Mrs. Bachmann..... X ........ ........
Ms. Bean........................ ....... X ......... Mr. Marchant...... X ........ ........
Ms. Moore (WI).................. ....... X ......... Mr. McCotter...... X ........ ........
Mr. Hodes....................... ....... X ......... Mr. McCarthy...... X ........ ........
Mr. Ellison..................... ....... ........ X Mr. Posey......... X ........ ........
Mr. Klein....................... ....... X ......... Ms. Jenkins....... X ........ ........
Mr. Wilson...................... ....... X ......... Mr. Lee........... X ........ ........
Mr. Perlmutter.................. ....... X ......... Mr. Paulsen....... X ........ ........
Mr. Donnelly.................... ....... X ......... Mr. Lance......... X ........ ........
Mr. Foster...................... ....... ........ .........
Mr. Carson...................... ....... X .........
Mr. Speier...................... ....... ........ .........
Mr. Childers.................... ....... X .........
Mr. Minnick..................... ....... ........ .........
Mr. Adler....................... ....... X .........
Ms. Kilroy...................... ....... X .........
Mr. Driehaus.................... ....... X .........
Ms. Kosmas...................... ....... ........ .........
Mr. Grayson..................... ....... X .........
Mr. Himes....................... ....... X .........
Mr. Peters...................... ....... X .........
Mr. Maffei...................... ....... ........ .........
----------------------------------------------------------------------------------------------------------------

An amendment by Mr. Hensarling, No. 3, regarding minimizing
potential long-term negative impact on the taxpayer, was not
agreed to by a record vote of 26 yeas and 37 nays (FC-3):

RECORD VOTE NO. FC-3
----------------------------------------------------------------------------------------------------------------
Representative Aye Nay Present Representative Aye Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank....................... ....... X ........ Mr. Bachus......... X ........ ........
Mr. Kanjorski................... ....... X ........ Mr. Castle......... X ........ ........
Ms. Waters...................... ....... X ........ Mr. King (NY)...... X ........ ........
Mrs. Maloney.................... ....... X ........ Mr. Royce.......... X ........ ........
Mr. Gutierrez................... ....... X ........ Mr. Lucas.......... X ........ ........
Ms. Velazquez................... ....... X ........ Mr. Paul........... X ........ ........
Mr. Watt........................ ....... X ........ Mr. Manzullo....... X ........ ........
Mr. Ackerman.................... ....... ........ ........ Mr. Jones.......... X ........ ........
Mr. Sherman..................... ....... X ........ Mrs. Biggert....... X ........ ........
Mr. Meeks....................... ....... ........ ........ Mr. Miller (CA).... ........ ........ ........
Mr. Moore (KS).................. ....... X ........ Mrs. Capito........ X ........ ........
Mr. Capuano..................... ....... X ........ Mr. Hensarling..... X ........ ........
Mr. Hinojosa.................... ....... ........ ........ Mr. Garrett (NJ)... X ........ ........
Mr. Clay........................ ....... X ........ Mr. Barrett (SC)... X ........ ........
Mrs. McCarthy................... ....... X ........ Mr. Gerlach........ X ........ ........
Mr. Baca........................ ....... X ........ Mr. Neugebauer..... X ........ ........
Mr. Lynch....................... ....... X ........ Mr. Price (GA)..... ........ ........ ........
Mr. Miller (NC)................. ....... X ........ Mr. McHenry........ X ........ ........
Mr. Scott....................... ....... X ........ Mr. Campbell....... ........ X ........
Mr. Green....................... ....... X ........ Mr. Putnam......... X ........ ........
Mr. Cleaver..................... ....... X ........ Mrs. Bachmann...... X ........ ........
Ms. Bean........................ ....... X ........ Mr. Marchant....... X ........ ........
Ms. Moore (WI).................. ....... X ........ Mr. McCotter....... X ........ ........
Mr. Hodes....................... ....... X ........ Mr. McCarthy....... X ........ ........
Mr. Ellison..................... ....... X ........ Mr. Posey.......... X ........ ........
Mr. Klein....................... ....... X ........ Ms. Jenkins........ X ........ ........
Mr. Wilson...................... ....... X ........ Mr. Lee............ X ........ ........
Mr. Perlmutter.................. ....... X ........ Mr. Paulsen........ X ........ ........
Mr. Donnelly.................... ....... X ........ Mr. Lance.......... X ........ ........
Mr. Foster...................... ....... ........ ........
Mr. Carson...................... ....... X ........
Mr. Speier...................... ....... ........ ........
Mr. Childers.................... ....... X ........
Mr. Minnick..................... ....... X ........
Mr. Adler....................... ....... X ........
Ms. Kilroy...................... ....... X ........
Mr. Driehaus.................... ....... X ........
Ms. Kosmas...................... ....... ........ ........
Mr. Grayson..................... ....... X ........
Mr. Himes....................... ....... X ........
Mr. Peters...................... ....... X ........
Mr. Maffei...................... ....... X ........
----------------------------------------------------------------------------------------------------------------

An amendment by Mr. Lee, No. 5, regarding obtaining
auditors' services through private persons to the greatest
extent practicable, was not agreed to by a record vote of 27
yeas and 36 nays (FC-4):

RECORD VOTE NO. FC-4
----------------------------------------------------------------------------------------------------------------
Representative Aye Nay Present Representative Aye Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank........................ ....... X ........ Mr. Bachus......... X ....... ........
Mr. Kanjorski.................... ....... X ........ Mr. Castle......... X ....... ........
Ms. Waters....................... ....... X ........ Mr. King (NY)...... X ....... ........
Mrs. Maloney..................... ....... X ........ Mr. Royce.......... X ....... ........
Mr. Gutierrez.................... ....... X ........ Mr. Lucas.......... X ....... ........
Ms. Velazquez.................... ....... X ........ Mr. Paul........... X ....... ........
Mr. Watt......................... ....... X ........ Mr. Manzullo....... X ....... ........
Mr. Ackerman..................... ....... ........ ........ Mr. Jones.......... X ....... ........
Mr. Sherman...................... ....... X ........ Mrs. Biggert....... X ....... ........
Mr. Meeks........................ ....... ........ ........ Mr. Miller (CA).... ........ ....... ........
Mr. Moore (KS)................... ....... X ........ Mrs. Capito........ X ....... ........
Mr. Capuano...................... ....... X ........ Mr. Hensarling..... X ....... ........
Mr. Hinojosa..................... ....... ........ ........ Mr. Garrett (NJ)... X ....... ........
Mr. Clay......................... ....... X ........ Mr. Barrett (SC)... X ....... ........
Mrs. McCarthy.................... ....... X ........ Mr. Gerlach........ X ....... ........
Mr. Baca......................... ....... X ........ Mr. Neugebauer..... X ....... ........
Mr. Lynch........................ ....... X ........ Mr. Price (GA)..... ........ ....... ........
Mr. Miller (NC).................. ....... X ........ Mr. McHenry........ X ....... ........
Mr. Scott........................ ....... X ........ Mr. Campbell....... X ....... ........
Mr. Green........................ ....... X ........ Mr. Putnam......... X ....... ........
Mr. Cleaver...................... ....... X ........ Mrs. Bachmann...... X ....... ........
Ms. Bean......................... ....... X ........ Mr. Marchant....... X ....... ........
Ms. Moore (WI)................... ....... X ........ Mr. McCotter....... X ....... ........
Mr. Hodes........................ ....... X ........ Mr. McCarthy....... X ....... ........
Mr. Ellison...................... ....... X ........ Mr. Posey.......... X ....... ........
Mr. Klein........................ ....... X ........ Ms. Jenkins........ X ....... ........
Mr. Wilson....................... ....... X ........ Mr. Lee............ X ....... ........
Mr. Perlmutter................... ....... X ........ Mr. Paulsen........ X ....... ........
Mr. Donnelly..................... ....... X ........ Mr. Lance.......... X ....... ........
Mr. Foster....................... ....... ........ ........
Mr. Carson....................... ....... X ........
Mr. Speier....................... ....... ........ ........
Mr. Childers..................... ....... X ........
Mr. Minnick...................... ....... X ........
Mr. Adler........................ ....... X ........
Ms. Kilroy....................... ....... X ........
Mr. Driehaus..................... ....... X ........
Ms. Kosmas....................... ....... ........ ........
Mr. Grayson...................... ....... X ........
Mr. Himes........................ ....... X ........
Mr. Peters....................... ....... X ........
Mr. Maffei....................... ....... X ........
----------------------------------------------------------------------------------------------------------------

The following amendments were also considered:
An amendment by Mr. Watt (and Ms. Waters and Mr. Meeks),
No. 1a, to the amendment offered by Mr. Paulsen, regarding
reporting on inclusion and utilization of women and minorities,
was agreed to by a voice vote.
An amendment by Mr. Castle, No. 2, regarding authority to
follow the money, was offered and withdrawn.
An amendment by Mr. Barrett, No. 4, regarding the
nonapplicability of certain provisions, was ruled out of order
on a point of order.

Committee Oversight Findings

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee held a hearing and made
findings that are reflected in this report.

Performance Goals and Objectives

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee establishes the
following performance related goals and objectives for this
legislation:
S. 383 would clarify the law enforcement authority of the
Special Inspector General and provide additional hiring
flexibility for the Office of the Special Inspector General for
the Troubled Asset Relief Program (SIGTARP) in order to give
the SIGTARP every tool available to vigilantly monitor for any
crimes and waste, fraud or abuse related to the TARP program.

New Budget Authority, Entitlement Authority, and Tax Expenditures

In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.

Committee Cost Estimate

The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.

Congressional Budget Office Estimate

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:

U.S. Congress,
Congressional Budget Office,
Washington, DC, March 17, 2009.
Hon. Barney Frank,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 383, the Special
Inspector General for the Troubled Asset Relief Program Act of
2009.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Douglas W. Elmendorf,
Director.
Enclosure.

S. 383--Special Inspector General for the Troubled Asset Relief Program
Act of 2009

S. 383 would amend the Emergency Economic Stabilization Act
of 2008 to expand the authorities of the Special Inspector
General (SIG) for the Troubled Asset Relief Program. The
legislation would broaden the SIG's authority to carry out
audits and investigations, and would require the Department of
the Treasury to transfer to the SIG, within seven days of
enactment, whatever remains of the $50 million already
appropriated for the SIG's activities.
Under the act, about $40 million of amounts previously
appropriated would be transferred to the SIG. Based on
information provided by the SIG, CBO expects that this
provision would not affect the timing of the agency's
expenditures. We estimate that the other provisions of the
legislation also would have no significant effect on the
federal budget.
S. 383 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contacts for this estimate are Matthew
Pickford and Deborah Reis. The estimate was approved by Theresa
Gullo, Deputy Assistant Director for Budget Analysis.

Federal Mandates Statement

The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.

Advisory Committee Statement

No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.

Constitutional Authority Statement

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional Authority of Congress to enact this legislation
is provided by Article 1, section 8, clause 1 (relating to the
general welfare of the United States) and clause 3 (relating to
the power to regulate interstate commerce).

Applicability to Legislative Branch

The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.

Earmark Identification

S. 383 does not contain any congressional earmarks, limited
tax benefits, or limited tariff benefits as defined in clause 9
of rule XXI.

Section-by-Section Analysis of the Legislation

Section 1. Short title

This section establishes the short title of the bill, the
``Special Inspector General for the Troubled Asset Relief
Program Act of 2009.''

Section 2. Audit and investigations

Clarifies existing SIGTARP authority to conduct, supervise,
and coordinate audits or investigations of any action taken
under Title I of EESA (TARP Authorization).
Requires the SIGTARP to be treated the same as an office
under Section 6(e)(3) of the Inspector General Act of 1978, as
amended. This language is similar to that included in H.R. 384,
which passed the House earlier this year. Section 6(e)(3)
enumerates IGs that are exempt from an initial determination by
the AG regarding whether an IG, Assistant IG or agent
supervised by an assistant IG may (1) carry a firearm; (2) make
an arrest without a warrant while engaged in official duties as
authorized under this Act or other statute; or (3) seek and
execute warrants for arrest, search of a premises, or seizure
of evidence issued under the authority of the United States
upon probable cause to believe that a violation has been
committed.
Provides that in the event that the Office of the Special
Inspector General is terminated, the Inspector General of the
Department of the Treasury shall assume the responsibilities of
the Special Inspector General under this subsection.

Section 3. Personnel authorities

Provides SIGTARP the authority to exercise temporary hiring
authorities for a limited time (six months from the date of
enactment of the bill).
Also provides SIGTARP the authority to hire federal
annuitants without requiring that they offset their pension.
This authority would be limited to 25 employees at any one
time. SIGTARP estimates that 25 staff would be equivalent to
between 28 to 40 percent of SIGTARP's investigative and audit
staff.

Section 4. Response to audits and cooperation and coordination with
other entities

Requires Treasury to notify Congress of the reason for
failing to follow any written recommendations made by SIGTARP.
It also requires cooperation among the various Inspectors
General touched by the Relief Program to avoid duplication of
effort and to ensure comprehensive oversight of TARP.
Adds SIGTARP to the Council of the Inspectors General on
Integrity and Efficiency.

Section 5. Reporting requirements

Requires a report to Congress by September 1, 2009, on the
use of funds received by financial institutions. The general
quarterly reporting requirements for SIGTARP are changed so
that reports will be due 30 days after the end of each fiscal
quarter.

Section 6. Funding of the Office of the Special Inspector General

Adds a time limit of seven days after enactment of this
bill to the existing requirement of release of funds to SIGTARP
set forth in EESA.

Section 7. Council of the Inspectors General on Integrity and
Efficiency

Adds the Special Inspector General for Iraq Reconstruction
and the Special Inspector General for Afghanistan
Reconstruction as members of the Council of the Inspectors
General on Integrity and Efficiency established pursuant to the
Inspectors General Act of 1978, as amended.

Changes in Existing Law Made by the Bill, as Reported

In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):

EMERGENCY ECONOMIC STABILIZATION ACT OF 2008

DIVISION A--EMERGENCY ECONOMIC STABILIZATION

* * * * * * *

TITLE I--TROUBLED ASSETS RELIEF PROGRAM

* * * * * * *

SEC. 121. SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF
PROGRAM.

(a) * * *

* * * * * * *

(4)(A) Except as provided under subparagraph (B) and
in addition to the duties specified in paragraphs (1),
(2), and (3), the Special Inspector General shall have
the authority to conduct, supervise, and coordinate an
audit or investigation of any action taken under this
title as the Special Inspector General determines
appropriate.
(B) Subparagraph (A) shall not apply to any action
taken under section 115, 116, 117, or 125.
(d) Powers and Authorities.--(1) * * *
(2) The Special Inspector General shall carry out the duties
specified in [subsection (c)(1)] subsection (c)(1) and (4) in
accordance with section 4(b)(1) of the Inspector General Act of
1978.
(3) The Office of the Special Inspector General for
the Troubled Asset Relief Program shall be treated as
an office included under section 6(e)(3) of the
Inspector General Act of 1978 (5 U.S.C. App.) relating
to the exemption from the initial determination of
eligibility by the Attorney General.
(e) Personnel, Facilities, and Other Resources.--(1)(A) The
Special Inspector General may select, appoint, and employ such
officers and employees as may be necessary for carrying out the
duties of the Special Inspector General, subject to the
provisions of title 5, United States Code, governing
appointments in the competitive service, and the provisions of
chapter 51 and subchapter III of chapter 53 of such title,
relating to classification and General Schedule pay rates.
(B)(i) Subject to clause (ii), the Special Inspector General
may exercise the authorities of subsections (b) through (i) of
section 3161 of title 5, United States Code (without regard to
subsection (a) of that section).
(ii) In exercising the employment authorities under
subsection (b) of section 3161 of title 5, United States Code,
as provided under clause (i) of this subparagraph--
(I) the Special Inspector General may not make any
appointment on and after the date occurring 6 months
after the date of enactment of the Special Inspector
General for the Troubled Asset Relief Program Act of
2009;
(II) paragraph (2) of that subsection (relating to
periods of appointments) shall not apply; and
(III) no period of appointment may exceed the date on
which the Office of the Special Inspector General
terminates under subsection (k).

* * * * * * *

(5)(A) Except as provided under subparagraph (B), if an
annuitant receiving an annuity from the Civil Service
Retirement and Disability Fund becomes employed in a position
within the Office of the Special Inspector General for the
Troubled Asset Relief Program, his annuity shall continue. An
annuitant so reemployed shall not be considered an employee for
purposes of chapter 83 or 84.
(B) Subparagraph (A) shall apply to--
(i) not more than 25 employees at any time as
designated by the Special Inspector General; and
(ii) pay periods beginning after the date of
enactment of the Special Inspector General for the
Troubled Asset Relief Program Act of 2009.
(f) Corrective Responses to Audit Problems.--The Secretary
shall--
(1) take action to address deficiencies identified by a
report or investigation of the Special Inspector General or
other auditor engaged by the TARP; or
(2) certify to appropriate committees of Congress that no
action is necessary or appropriate.
(g) Cooperation and Coordination With Other Entities.--In
carrying out the duties, responsibilities, and authorities of
the Special Inspector General under this section, the Special
Inspector General shall work with each of the following
entities, with a view toward avoiding duplication of effort and
ensuring comprehensive oversight of the Troubled Asset Relief
Program through effective cooperation and coordination:
(1) The Inspector General of the Department of
Treasury.
(2) The Inspector General of the Federal Deposit
Insurance Corporation.
(3) The Inspector General of the Securities and
Exchange Commission.
(4) The Inspector General of the Federal Reserve
Board.
(5) The Inspector General of the Federal Housing
Finance Board.
(6) The Inspector General of any other entity as
appropriate.
(h) Council of the Inspectors General on Integrity and
Efficiency.--The Special Inspector General shall be a member of
the Council of the Inspectors General on Integrity and
Efficiency established under section 11 of the Inspector
General Act of 1978 (5 U.S.C. App.) until the date of
termination of the Office of the Special Inspector General for
the Troubled Asset Relief Program.
[(f)] (i) Reports.--(1) [Not later than 60 days after the
confirmation of the Special Inspector General, and every
calendar quarter thereafter, the Special Inspector General
shall submit to the appropriate committees of Congress a report
summarizing the activities of the Special Inspector General
during the 120-day period ending on the date of such report.]
Not later than 60 days after the confirmation of the Special
Inspector General, and not later than 30 days following the end
of each fiscal quarter, the Special Inspector General shall
submit to the appropriate committees of Congress a report
summarizing the activities of the Special Inspector General
during that fiscal quarter. Each report shall include, for the
period covered by such report, a detailed statement of all
purchases, obligations, expenditures, and revenues associated
with any program established by the Secretary of the Treasury
under sections 101 and 102, as well as the information
collected under subsection (c)(1).
(2) Not later than September 1, 2009, the Special Inspector
General shall submit a report to Congress assessing use of any
funds, to the extent practical, received by a financial
institution under the TARP and make the report available to the
public, including posting the report on the home page of the
website of the Special Inspector General within 24 hours after
the submission of the report.
[(2)] (3) Nothing in this subsection shall be construed to
authorize the public disclosure of information that is--
(A) * * *

* * * * * * *

[(3)] (4) Any reports required under this section shall also
be submitted to the Congressional Oversight Panel established
under section 125.
(5) Except as provided under paragraph (3), all reports
submitted under this subsection shall be available to the
public.
[(g)] (j) Funding.--(1) Of the amounts made available to the
Secretary of the Treasury under section 118, $50,000,000 shall
be available to the Special Inspector General to carry out this
section, not later than 7 days after the date of enactment of
the Special Inspector General for the Troubled Asset Relief
Program Act of 2009.

* * * * * * *

[(h)] (k) Termination.--The Office of the Special Inspector
General shall terminate on the later of--
(1) * * *

* * * * * * *

ADDITIONAL VIEWS

Republicans support giving the special Inspector general
for the Troubled Asset Relief Program (SIGTARP) the necessary
audit and investigative authority to ensure that taxpayers are
protected and that the program is free of waste, fraud and
abuse. S. 383 gives the SIGTARP authority to quickly hire
auditors by granting him temporary hiring authority, and
requires the Treasury Secretary to explain to Congress why any
specific SIGTARP recommendation is not implemented. While these
are useful provisions, Republican offered amendments during
Committee consideration of S. 383 to substantially improve the
bill by strengthening accountability in the TARP and enhancing
taxpayer protections. These amendments, summarized below, were
opposed by every Committee Democrat, largely on the ground that
making any changes to the Senate-passed versions of S. 383
would slow down the process. Because Republicans believe that
it is more important to get it right than to get it done
quickly, we urge the Majority to reconsider its opposition to
these common-sense amendments and allow them to be considered
in the full House.
Paulsen amendment. An Amendment offered by Mr. Paulsen of
Minnesota would have mandated that the SIGTARP include within
its required regular reports to Congress information on how the
TARP is being used to benefit small financial institutions,
such as community banks. (A second degree amendment to the
Paulsen amendment was adopted by voice vote that directed the
SIGTARP to report to Congress on efforts by recipients of TARP
funds to utilize women, minorities, and women and minority
owned businesses.)
Hensarling amendment. Mr. Hensarling of Texas offered an
amendment that would have explicitly required SIGTARP to review
the Treasury Department's efforts to ``minimize any potential
long-term negative impact on the taxpayer'' in its
implementation of TARP.
Lee amendment. Mr. Lee of New York offered an amendment to
improve oversight of TARP by requiring the SIGTARP to
immediately seek out and hire as subcontractors private
auditors who are knowledgeable in the operation of financial
institutions.

Spencer Bachus.
Jeb Hensarling.
Judy Biggert.
Christopher Lee.
Erik Paulsen.