[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 405 Introduced in House (IH)]
103d CONGRESS
1st Session
H. R. 405
To require public disclosure of examination reports of certain failed
depository institutions.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 5, 1993
Mr. Stark introduced the following bill; which was referred to the
Committee on Banking, Finance and Urban Affairs
_______________________________________________________________________
A BILL
To require public disclosure of examination reports of certain failed
depository institutions.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bank and Thrift Disclosure Act of
1993''.
SEC. 2. PUBLIC AVAILABILITY OF EXAMINATION INFORMATION.
(a) In General.--Each appropriate banking agency shall make
available to the public copies of reports of all examinations of each
failed depository institution that received funds, as defined in
section 6, or of a holding company of such institution, that was
performed by that banking agency or its predecessor, during the 5-year
period preceding the transfer, failure, or receipt of funds. Each
appropriate banking agency other than the National Credit Union
Administration Board shall consult with the Federal Deposit Insurance
Corporation or the Resolution Trust Corporation prior to making such
reports available to the public.
(b) Delay of Publication.--
(1) Threats to safety or soundness of institution.--If the
appropriate banking agency makes a determination in writing
that release of an examination report would seriously threaten
the safety or soundness of an insured depository institution,
such agency may initially delay release of the examination
report for a reasonable period of time, not to exceed 12 months
from the date of the transfer, failure, or receipt of funds
described in section 6. Such determination may be renewed on an
annual basis.
(2) Ongoing investigations.--If the appropriate banking
agency or the Resolution Trust Corporation determines in
writing that release of a portion of an examination report
would hinder an ongoing investigation of alleged negligence, or
of other activity that would give rise to either administrative
or civil proceedings, the portion of the examination report
directly pertaining to the alleged negligence or other
activity, may be withheld from release during the
investigation, until a notice of charges is issued, a complaint
is filed, or for a period not to exceed 24 months from the date
of the transfer, failure, or receipt of funds described in
section 6, whichever is earlier.
(3) Delay pending criminal investigation.--If the
appropriate banking agency and the Attorney General of the
United States or the attorney general of a State, in the case
of a State-chartered depository institution, jointly determine
that release of a portion of an examination report would hinder
an ongoing investigation of alleged criminal activity, the
portion of the examination report directly pertaining to the
alleged crime may be withheld from release until the
termination of such investigation, the issuance of an
indictment, or for a period of not to exceed 5 years from the
date of the transfer, failure or receipt of funds described in
section 6, whichever is earlier. The Attorney General of the
United States or the attorney general of a State shall provide
the Comptroller General of the United States with access to
information regarding any such criminal investigation, and
shall identify any law enforcement agencies or resources
assigned to the investigation.
(c) Exclusion of Open Institutions.--
(1) Open institutions.--This section shall not apply to any
open insured depository institution and shall not be construed
to require disclosure to the public of any report of
examination of any open insured depository institution.
(2) Affiliated solvent institutions.--In connection with
the release of an examination report of a holding company of a
failed institution, nothing in this section shall be construed
as requiring the release of any examination report information
regarding any solvent depository institution that is also a
subsidiary of such holding company.
SEC. 3. PROHIBITION OF CONFIDENTIAL SETTLEMENTS.
Notwithstanding any other provision of law or any rule, regulation,
or order issued thereunder, all agreements or settlements of claims
between the Resolution Trust Corporation or the Federal Deposit
Insurance Corporation and any other party, where such agreement or
claim relates to an institution described in section 6 shall be made
available to the public.
SEC. 4. APPLICABILITY.
The requirements of section 2 shall apply--
(1) to any insured depository institution that has had its
assets or liabilities, or any part thereof, transferred to the
FSLIC Resolution Fund or the Resolution Trust Corporation;
(2) to any member of the Bank Insurance Fund that has
failed and received funds, if during either the fiscal year in
which the institution failed or the fiscal year in which the
institution received funds, as defined in section 6, the Bank
Insurance Fund--
(A) had outstanding loans, or had otherwise
received funds, from the Department of the Treasury,
the Federal Financing Bank, or any Federal Reserve
bank; or
(B) had a negative fund balance;
(3) to any member of the Savings Association Insurance Fund
that has failed and received funds, if during either the fiscal
year in which the institution failed or the fiscal year in
which the institution received funds, as defined in section 6,
the Savings Association Insurance Fund--
(A) had outstanding loans, or had otherwise
received funds, from the Department of the Treasury,
the Federal Financing Bank, or any Federal Reserve
bank; or
(B) had a negative fund balance; and
(4) to any insured credit union that has failed and
received funds, if during either the fiscal year in which the
credit union failed or the fiscal year in which the credit
union received funds, as defined in section 6, the National
Credit Union Share Insurance Fund--
(A) had outstanding loans, or had otherwise
received funds, from the Department of the Treasury,
the Federal Financing Bank, or any Federal Reserve
Bank; or
(B) had a negative fund balance.
SEC. 5. REMOVAL OF CUSTOMER INFORMATION FROM EXAMINATION REPORTS.
In making available reports of examinations under section 2, the
appropriate Federal banking agency shall excise the following
information:
(1) Noninstitution-affiliated parties.--The names and all
other identifying information for all persons who are not
institution-affiliated parties of an insured depository
institution.
(2) Institution-affiliated parties.--The names and any
information related to an institution-affiliated party that is
not relevant to the relationship between the insured depository
institution and the institution-affiliated party.
(3) Open institutions.--The names and all other identifying
information pertaining to open insured depository institutions.
(4) Examiners.--Any reference to the examiners and other
banking agency employees involved in the examination of the
insured depository institution.
(5) Whistleblowers.--All references to persons or entities
that have provided information in confidence to a banking
agency which may be utilized to pursue a civil or criminal
action.
SEC. 6. DEFINITIONS.
For purposes of this section--
(1) an insured depository institution has ``failed'' if the
Federal Deposit Insurance Corporation, Resolution Trust
Corporation, or National Credit Union Administration Board--
(A) has been appointed as receiver or liquidator
for such institution; or
(B) has exercised the power to provide assistance
under section 13(c)(2) of the Federal Deposit Insurance
Act or the analogous powers under section 21A of the
Federal Home Loan Bank Act.
(2) an insured depository institution has ``received
funds'' if the institution, its holding company, or an
acquiring institution receives cash or other valuable
consideration from the National Credit Union Administration
Board, the Resolution Trust Corporation, the Federal Deposit
Insurance Corporation, or any Federal Reserve bank that lends
for more than 30 days while the insured depository institution
is critically undercapitalized within the 1-year period prior
to the failure of the insured depository institution whether in
the form of a loan, a payment to depositors or other creditors,
the assumption of liabilities, or otherwise;
(3) the term ``insured depository institution'' has the
same meaning as in section 3 of the Federal Deposit Insurance
Act, except that such term includes an insured credit union, as
defined in section 101 of the Federal Credit Union Act; and
(4) the term ``appropriate banking agency'' means the
Federal Deposit Insurance Corporation, the Board of Governors
of the Federal Reserve System, the Comptroller of the Currency,
the Office of Thrift Supervision, or the National Credit Union
Administration Board, and, in the case of a State-chartered
depository institution, the appropriate State depository
institution regulatory agency.
SEC. 7. ADDITIONAL DISCLOSURES BY FDIC, NCUA, AND RTC.
(a) Borrowers.--Not later than 6 months after being appointed
receiver or liquidator for any failed institution that received funds,
as defined in section 6, the Federal Deposit Insurance Corporation,
National Credit Union Administration, or the Resolution Trust
Corporation, as appropriate, shall make available to the public the
name and loan balance of any borrower who--
(1) was an executive officer, director, or principal
shareholder of the institution, or a related interest of any
such person, as such terms are defined in section 22(h) of the
Federal Reserve Act; and
(2) at the time that the receiver was appointed, was more
than 90 days delinquent on a loan.
(b) Transactions.--Not later than 12 months after being appointed
receiver or liquidator for any failed institution that received funds,
as defined in section 6, the Federal Deposit Insurance Corporation, the
National Credit Union Administration Board, or the Resolution Trust
Corporation shall make available, and update periodically thereafter, a
list of pending and settled lawsuits brought by such agency involving
transactions (other than those listed in subsection (a)) that caused a
material loss to such institution or to the deposit insurance fund.
SEC. 8. GAO AUDITS.
The Comptroller General shall selectively audit examination reports
made available to the public by the appropriate Federal banking
agencies under section 2, and disclosures made by the Federal Deposit
Insurance Corporation, National Credit Union Administration, and
Resolution Trust Corporation under section 7, to assess compliance with
the requirements of those sections. The Comptroller General shall
determine the nature, scope, terms, and conditions of audits conducted
under this section.
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