12 U.S.C. § 5391 — Inspector General reviews

Page 1911 TITLE 12—BANKS AND BANKING § 5391 1 See References in Text note below. For complete classification of this Act to the Code, see Short Title of 1999 Amendment note set out under sec- tion 1811 of this title and Tables. The Legal Certainty for Bank Products Act of 2000, referred to in subsec. (c)(15), is title IV of H.R. 5660, as enacted by Pub. L. 106–554, § 1(a)(5), Dec. 21, 2000, 114 Stat. 2763, 2763A–457, which is classified to sections 27 to 27f of Title 7, Agriculture. For complete classifica- tion of this Act to the Code, see Short Title of 2000 Amendment note set out under section 1 of Title 7 and Tables. The Commodity Exchange Act, referred to in subsec. (c)(15), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables. The Securities Exchange Act of 1934, referred to in subsec. (h)(2)(H)(i)(I), is act June 6, 1934, ch. 404, 48 Stat. 881, which is classified principally to chapter 2B (§ 78a et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 78a of Title 15 and Tables. This Act, referred to in subsec. (n)(8)(A)(i), is Pub. L. 111–203, July 21, 2010, 124 Stat. 1376, known as the Dodd- Frank Wall Street Reform and Consumer Protection Act, which enacted this chapter and chapters 108 (§ 8201 et seq.) and 109 (§ 8301 et seq.) of Title 15, Commerce and Trade, and enacted, amended, and repealed numerous other sections and notes in the Code. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of this title and Tables. The Internal Revenue Code of 1986, referred to in sub- sec. (q)(2), is classified generally to Title 26, Internal Revenue Code. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title. § 5391. Inspector General reviews (a) to (c) Omitted (d) FDIC Inspector General reviews (1) Scope The Inspector General of the Corporation shall conduct, supervise, and coordinate audits and investigations of the liquidation of any covered financial company by the Corporation as receiver under this subchapter, including collecting and summarizing— (A) a description of actions taken by the Corporation as receiver; (B) a description of any material sales, transfers, mergers, obligations, purchases, and other material transactions entered into by the Corporation; (C) an evaluation of the adequacy of the policies and procedures of the Corporation under section 5383(d) of this title and orderly liquidation plan under section 5390(n)(14) 1 of this title; (D) an evaluation of the utilization by the Corporation of the private sector in carrying out its functions, including the adequacy of any conflict-of-interest reviews; and (E) an evaluation of the overall perform- ance of the Corporation in liquidating the covered financial company, including admin- istrative costs, timeliness of liquidation process, and impact on the financial system. (2) Frequency Not later than 6 months after the date of ap- pointment of the Corporation as receiver under this subchapter and every 6 months thereafter, the Inspector General of the Cor- poration shall conduct the audit and inves- tigation described in paragraph (1). (3) Reports and testimony The Inspector General of the Corporation shall include in the semiannual reports re- quired by section 405(b) of title 5, a summary of the findings and evaluations under para- graph (1), and shall appear before the appro- priate committees of Congress, if requested, to present each such report. (4) Funding (A) Initial funding The expenses of the Inspector General of the Corporation in carrying out this sub- section shall be considered administrative expenses of the receivership. (B) Additional funding If the maximum amount available to the Corporation as receiver under this sub- chapter is insufficient to enable the Inspec- tor General of the Corporation to carry out the duties under this subsection, the Cor- poration shall pay such additional amounts from assessments imposed under section 5390 of this title. (5) Termination of responsibilities The duties and responsibilities of the Inspec- tor General of the Corporation under this sub- section shall terminate 1 year after the date of termination of the receivership under this sub- chapter. (e) Treasury Inspector General reviews (1) Scope The Inspector General of the Department of the Treasury shall conduct, supervise, and co- ordinate audits and investigations of actions taken by the Secretary related to the liquida- tion of any covered financial company under this subchapter, including collecting and sum- marizing— (A) a description of actions taken by the Secretary under this subchapter; (B) an analysis of the approval by the Sec- retary of the policies and procedures of the Corporation under section 5383 of this title and acceptance of the orderly liquidation plan of the Corporation under section 5390 of this title; and (C) an assessment of the terms and condi- tions underlying the purchase by the Sec- retary of obligations of the Corporation under section 5390 of this title. (2) Frequency Not later than 6 months after the date of ap- pointment of the Corporation as receiver under this subchapter and every 6 months thereafter, the Inspector General of the De- partment of the Treasury shall conduct the audit and investigation described in paragraph (1). (3) Reports and testimony The Inspector General of the Department of the Treasury shall include in the semiannual Page 1912 TITLE 12—BANKS AND BANKING § 5392 reports required by section 405(b) of title 5, a summary of the findings and assessments under paragraph (1), and shall appear before the appropriate committees of Congress, if re- quested, to present each such report. (4) Termination of responsibilities The duties and responsibilities of the Inspec- tor General of the Department of the Treasury under this subsection shall terminate 1 year after the date on which the obligations pur- chased by the Secretary from the Corporation under section 5390 of this title are fully re- deemed. (f) Primary financial regulatory agency Inspec- tor General reviews (1) Scope Upon the appointment of the Corporation as receiver for a covered financial company su- pervised by a Federal primary financial regu- latory agency or the Board of Governors under section 5365 of this title, the Inspector General of the agency or the Board of Governors shall make a written report reviewing the super- vision by the agency or the Board of Gov- ernors of the covered financial company, which shall— (A) evaluate the effectiveness of the agen- cy or the Board of Governors in carrying out its supervisory responsibilities with respect to the covered financial company; (B) identify any acts or omissions on the part of agency or Board of Governors offi- cials that contributed to the covered finan- cial company being in default or in danger of default; (C) identify any actions that could have been taken by the agency or the Board of Governors that would have prevented the company from being in default or in danger of default; and (D) recommend appropriate administrative or legislative action. (2) Reports and testimony Not later than 1 year after the date of ap- pointment of the Corporation as receiver under this subchapter, the Inspector General of the Federal primary financial regulatory agency or the Board of Governors shall pro- vide the report required by paragraph (1) to such agency or the Board of Governors, and along with such agency or the Board of Gov- ernors, as applicable, shall appear before the appropriate committees of Congress, if re- quested, to present the report required by paragraph (1). Not later than 90 days after the date of receipt of the report required by para- graph (1), such agency or the Board of Gov- ernors, as applicable, shall provide a written report to Congress describing any actions taken in response to the recommendations in the report, and if no such actions were taken, describing the reasons why no actions were taken. (Pub. L. 111–203, title II, § 211, July 21, 2010, 124 Stat. 1514; Pub. L. 117–286, § 4(b)(36), Dec. 27, 2022, 136 Stat. 4347.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in subsecs. (d)(1), (2), (4)(B), (5), (e)(1), (2), and (f)(2), was in the original ‘‘this title’’, meaning title II of Pub. L. 111–203, July 21, 2010, 124 Stat. 1442, which is classified principally to this subchapter. For complete classification of title II to the Code, see Tables. Section 5390(n)(14) of this title, referred to in subsec. (d)(1)(C), probably means section 5390(n)(9), because sec- tion 5390(n) of this title does not contain a par. (14) and section 5390(n)(9) of this title relates to orderly liquida- tion plans. CODIFICATION Section is comprised of section 211 of Pub. L. 111–203. Subsecs. (a) to (c) of section 211 of Pub. L. 111–203 amended section 4403 of this title and section 1032 of title 18, Crimes and Criminal Procedure. AMENDMENTS 2022—Subsec. (d)(3). Pub. L. 117–286, § 4(b)(36)(A), sub- stituted ‘‘section 405(b) of title 5,’’ for ‘‘section 5(a) of the Inspector General Act of 1978 (5 U.S.C. App.),’’. Subsec. (e)(3). Pub. L. 117–286, § 4(b)(36)(B), substituted ‘‘section 405(b) of title 5,’’ for ‘‘section 5(a) of the In- spector General Act of 1978 (5 U.S.C. App.),’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title. § 5392. Prohibition of circumvention and preven- tion of conflicts of interest (a) No other funding Funds for the orderly liquidation of any cov- ered financial company under this subchapter shall only be provided as specified under this subchapter. (b) Limit on governmental actions No governmental entity may take any action to circumvent the purposes of this subchapter. (c) Conflict of interest In the event that the Corporation is appointed receiver for more than 1 covered financial com- pany or is appointed receiver for a covered fi- nancial company and receiver for any insured depository institution that is an affiliate of such covered financial company, the Corporation shall take appropriate action, as necessary to avoid any conflicts of interest that may arise in connection with multiple receiverships. (Pub. L. 111–203, title II, § 212, July 21, 2010, 124 Stat. 1516.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in subsecs. (a) and (b), was in the original ‘‘this title’’, meaning title II of Pub. L. 111–203, July 21, 2010, 124 Stat. 1442, which is classi- fied principally to this subchapter. For complete classi- fication of title II to the Code, see Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title.