12 U.S.C. § 5226 — Oversight and audits

Page 1815 TITLE 12—BANKS AND BANKING § 5226 1 So in original. Probably should be ‘‘Troubled Asset Relief Program’’. (A) The joint resolution of the other House shall not be referred to a committee. (B) With respect to a joint resolution of the House receiving the resolution— (i) the procedure in that House shall be the same as if no joint resolution had been received from the other House; but (ii) the vote on passage shall be on the joint resolution of the other House. (2) Treatment of joint resolution of other House If one House fails to introduce or consider a joint resolution under this section, the joint resolution of the other House shall be entitled to expedited floor procedures under this sec- tion. (3) Treatment of companion measures If, following passage of the joint resolution in the Senate, the Senate then receives the companion measure from the House of Rep- resentatives, the companion measure shall not be debatable. (4) Consideration after passage (A) In general If Congress passes a joint resolution, the period beginning on the date the President is presented with the joint resolution and end- ing on the date the President takes action with respect to the joint resolution shall be disregarded in computing the 15-calendar day period described in subsection (a)(3). (B) Vetoes If the President vetoes the joint resolu- tion— (i) the period beginning on the date the President vetoes the joint resolution and ending on the date the Congress receives the veto message with respect to the joint resolution shall be disregarded in com- puting the 15-calendar day period de- scribed in subsection (a)(3), and (ii) debate on a veto message in the Sen- ate under this section shall be 1 hour equally divided between the majority and minority leaders or their designees. (5) Rules of House of Representatives and Sen- ate This subsection and subsections (c), (d), and (e) are enacted by Congress— (A) as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such it is deemed a part of the rules of each House, respectively, but applicable only with respect to the proce- dure to be followed in that House in the case of a joint resolution, and it supersedes other rules only to the extent that it is incon- sistent with such rules; and (B) with full recognition of the constitu- tional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same man- ner, and to the same extent as in the case of any other rule of that House. (Pub. L. 110–343, div. A, title I, § 115, Oct. 3, 2008, 122 Stat. 3780; Pub. L. 111–22, div. A, title II, § 202(b), title IV, § 402(f), May 20, 2009, 123 Stat. 1643, 1658; Pub. L. 111–203, title XIII, § 1302, July 21, 2010, 124 Stat. 2133.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a) and (c)(1), was in the original ‘‘this Act’’ and was translated as read- ing ‘‘this division’’, meaning div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765, known as the Emergency Economic Stabilization Act of 2008, to reflect the prob- able intent of Congress. For complete classification of division A to the Code, see Short Title note set out under section 5201 of this title and Tables. The Emergency Economic Stabilization Act of 2008, referred to in subsec. (c)(2)(C), (D), is div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765, which is classified principally to this chapter. Paragraphs (1) and (2) of section 115(a) of the Act are classified to paragraphs (1) and (2), respectively, of subsec. (a) of this section. For complete classification of this Act to the Code, see Short Title note set out under section 5201 of this title and Tables. AMENDMENTS 2010—Subsec. (a)(3). Pub. L. 111–203, § 1302(1)(B), struck out ‘‘outstanding at any one time’’ before the period at the end. Pub. L. 111–203, § 1302(1)(A), which directed substi- tution of ‘‘$475,000,000,000’’ for ‘‘, $700,000,000,000, as such amount is reduced by $1,259,000,000, as such amount is reduced by $1,244,000,000’’, was executed by making the substitution for ‘‘$700,000,000,000, as such amount is re- duced by $1,259,000,000,, as such amount is reduced by $1,244,000,000,’’, to reflect the probable intent of Con- gress. Subsec. (a)(4), (5). Pub. L. 111–203, § 1302(2), added pars. (4) and (5). 2009—Subsec. (a)(3). Pub. L. 111–22, § 402(f), inserted ‘‘, as such amount is reduced by $1,259,000,000,’’ after ‘‘$700,000,000,000’’. Pub. L. 111–22, § 202(b), inserted of ‘‘, as such amount is reduced by $1,244,000,000,’’ after ‘‘$700,000,000,000’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title. § 5226. Oversight and audits (a) Comptroller General oversight (1) Scope of oversight The Comptroller General of the United States shall, upon establishment of the trou- bled assets relief program 1 under this chapter (in this section referred to as the ‘‘TARP’’), commence ongoing oversight of the activities and performance of the TARP and of any agents and representatives of the TARP (as re- lated to the agent or representative’s activi- ties on behalf of or under the authority of the TARP), including vehicles established by the Secretary under this chapter. The subjects of such oversight shall include the following: (A) The performance of the TARP in meet- ing the purposes of this chapter, particularly those involving— (i) foreclosure mitigation; Page 1816 TITLE 12—BANKS AND BANKING § 5226 2 So in original. Probably should be preceded by ‘‘section’’. 3 See References in Text note below. (ii) cost reduction; (iii) whether it has provided stability or prevented disruption to the financial mar- kets or the banking system; (iv) whether it has protected taxpayers; and (v) public accountability for the exercise of such authority, including with respect to actions taken by those entities partici- pating in programs established under this chapter. (B) The financial condition and internal controls of the TARP, its representatives and agents. (C) Characteristics of transactions and commitments entered into, including trans- action type, frequency, size, prices paid, and all other relevant terms and conditions, and the timing, duration and terms of any future commitments to purchase assets. (D) Characteristics and disposition of ac- quired assets, including type, acquisition price, current market value, sale prices and terms, and use of proceeds from sales. (E) Efficiency of the operations of the TARP in the use of appropriated funds. (F) Compliance with all applicable laws and regulations by the TARP, its agents and representatives. (G) The efforts of the TARP to prevent, identify, and minimize conflicts of interest involving any agent or representative per- forming activities on behalf of or under the authority of the TARP. (H) The efficacy of contracting procedures pursuant to section 5217(b) of this title, in- cluding, as applicable, the efforts of the TARP in evaluating proposals for inclusion and contracting to the maximum extent pos- sible of minorities (as such term is defined in 1204(c) 2 of the Financial Institutions Re- form, Recovery, and Enhancement Act of 1989 3 (12 U.S.C. 1811 note), women, and minority- and women-owned businesses, in- cluding ascertaining and reporting the total amount of fees paid and other value deliv- ered by the TARP to all of its agents and representatives, and such amounts paid or delivered to such firms that are minority- and women-owned businesses (as such terms are defined in section 1441a 3 of this title). (2) Conduct and administration of oversight (A) Definition In this paragraph, the term ‘‘governmental unit’’ has the meaning given under section 101(27) of title 11, and does not include any insured depository institution as defined under section 1813 of this title. (B) GAO presence The Secretary shall provide the Comp- troller General with appropriate space and facilities in the Department of the Treasury as necessary to facilitate oversight of the TARP until the termination date estab- lished in section 5230 3 of this title. (C) Access to records (i) In general Notwithstanding any other provision of law, and for purposes of reviewing the per- formance of the TARP, the Comptroller General shall have access, upon request, to any information, data, schedules, books, accounts, financial records, reports, files, electronic communications, or other pa- pers, things, or property belonging to or in use by the TARP, any entity established by the Secretary under this chapter, any entity that is established by a Federal re- serve bank and receives funding from the TARP, or any entity (other than a govern- mental unit) participating in a program established under the authority of this chapter, and to the officers, employees, di- rectors, independent public accountants, financial advisors and any and all other agents and representatives thereof, at such time as the Comptroller General may re- quest. (ii) Verification The Comptroller General shall be af- forded full facilities for verifying trans- actions with the balances or securities held by, among others, depositories, fiscal agents, and custodians. (iii) Copies The Comptroller General may make and retain copies of such books, accounts, and other records as the Comptroller General determines appropriate. (D) Agreement by entities Each contract, term sheet, or other agree- ment between the Secretary or the TARP (or any TARP vehicle, officer, director, em- ployee, independent public accountant, fi- nancial advisor, or other TARP agent or rep- resentative) and an entity (other than a gov- ernmental unit) participating in a program established under this chapter shall provide for access by the Comptroller General in ac- cordance with this section. (E) Restriction on public disclosure (i) In general The Comptroller General may not pub- licly disclose proprietary or trade secret information obtained under this section. (ii) Exception for congressional committees This subparagraph does not limit disclo- sures to congressional committees or members thereof having jurisdiction over a private or public entity referred to under subparagraph (C). (iii) Rule of construction Nothing in this section shall be con- strued to alter or amend the prohibitions against the disclosure of trade secrets or other information prohibited by section 1905 of title 18, section 714(c) of title 31, or other applicable provisions of law. (F) Reimbursement of costs The Treasury shall reimburse the Govern- ment Accountability Office for the full cost Page 1817 TITLE 12—BANKS AND BANKING § 5226 of any such oversight activities as billed therefor by the Comptroller General of the United States. Such reimbursements shall be credited to the appropriation account ‘‘Salaries and Expenses, Government Ac- countability Office’’ current when the pay- ment is received and remain available until expended. (3) Reporting The Comptroller General shall submit re- ports of findings under this section annually to the appropriate committees of Congress, and the Special Inspector General for the Troubled Asset Relief Program established under this chapter on the activities and per- formance of the TARP. The Comptroller may also submit special reports under this sub- section as warranted by the findings of its oversight activities. (b) Comptroller General audits (1) Annual audit The TARP shall annually prepare and issue to the appropriate committees of Congress and the public audited financial statements pre- pared in accordance with generally accepted accounting principles, and the Comptroller General shall annually audit such statements in accordance with generally accepted audit- ing standards. The Treasury shall reimburse the Government Accountability Office for the full cost of any such audit as billed therefor by the Comptroller General. Such reimburse- ments shall be credited to the appropriation account ‘‘Salaries and Expenses, Government Accountability Office’’ current when the pay- ment is received and remain available until expended. The financial statements prepared under this paragraph shall be on the fiscal year basis prescribed under section 1102 of title 31. (2) Authority The Comptroller General may audit the pro- grams, activities, receipts, expenditures, and financial transactions of the TARP and any agents and representatives of the TARP (as re- lated to the agent or representative’s activi- ties on behalf of or under the authority of the TARP), including vehicles established by the Secretary under this chapter. (3) Corrective responses to audit problems The TARP shall— (A) take action to address deficiencies identified by the Comptroller General or other auditor engaged by the TARP; or (B) certify to appropriate committees of Congress that no action is necessary or ap- propriate. (c) Internal control (1) Establishment The TARP shall establish and maintain an effective system of internal control, con- sistent with the standards prescribed under section 3512(c) of title 31, that provides reason- able assurance of— (A) the effectiveness and efficiency of op- erations, including the use of the resources of the TARP; (B) the reliability of financial reporting, including financial statements and other re- ports for internal and external use; and (C) compliance with applicable laws and regulations. (2) Reporting In conjunction with each annual financial statement issued under this section, the TARP shall— (A) state the responsibility of management for establishing and maintaining adequate internal control over financial reporting; and (B) state its assessment, as of the end of the most recent year covered by such finan- cial statement of the TARP, of the effective- ness of the internal control over financial reporting. (d) Sharing of information Any report or audit required under this sec- tion shall also be submitted to the Congres- sional Oversight Panel established under section 5233 of this title. (e) Termination Any oversight, reporting, or audit requirement under this section shall terminate on the later of— (1) the date that the last troubled asset ac- quired by the Secretary under section 5211 of this title has been sold or transferred out of the ownership or control of the Federal Gov- ernment; or (2) the date of expiration of the last insur- ance contract issued under section 5212 of this title. (Pub. L. 110–343, div. A, title I, § 116, Oct. 3, 2008, 122 Stat. 3783; Pub. L. 111–22, div. A, title VI, § 601, May 20, 2009, 123 Stat. 1659; Pub. L. 114–301, § 3(a), Dec. 16, 2016, 130 Stat. 1514.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a) and (b)(2), was in the original ‘‘this Act’’ and was translated as read- ing ‘‘this division’’, meaning div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765, known as the Emergency Economic Stabilization Act of 2008, to reflect the prob- able intent of Congress. For complete classification of division A to the Code, see Short Title note set out under section 5201 of this title and Tables. Section 1204 of the Financial Institutions Reform, Re- covery, and Enhancement Act of 1989, referred to in subsec. (a)(1)(H), probably means section 1204 of the Fi- nancial Institutions Reform, Recovery, and Enforce- ment Act of 1989, Pub. L. 101–73, which is set out as a note under section 1811 of this title. Section 1441a of this title, referred to in subsec. (a)(1)(H), was repealed by Pub. L. 111–203, title III, § 364(b), July 21, 2010, 124 Stat. 1555. Section 5230 of this title, referred to in subsec. (a)(2)(B), was so in the original, but probably should have been a reference to section 120 of title I of div. A of Pub. L. 110–343, which is classified to section 5230 of this title. AMENDMENTS 2016—Subsec. (a)(3). Pub. L. 114–301 substituted ‘‘an- nually’’ for ‘‘, regularly and no less frequently than once every 60 days,’’. 2009—Subsec. (a)(1)(A)(v). Pub. L. 111–22, § 601(1), added cl. (v). Page 1818 TITLE 12—BANKS AND BANKING § 5227 1 So in original. Probably should be ‘‘sections’’. Subsec. (a)(2). Pub. L. 111–22, § 601(2), added subpars. (A) to (E), redesignated former subpar. (C) as (F), and struck out former subpars. (A) and (B) which related to GAO presence and access to records, respectively. § 5227. Study and report on margin authority (a) Study The Comptroller General shall undertake a study to determine the extent to which leverage and sudden deleveraging of financial institu- tions was a factor behind the current financial crisis. (b) Content The study required by this section shall in- clude— (1) an analysis of the roles and responsibil- ities of the Board, the Securities and Ex- change Commission, the Secretary, and other Federal banking agencies with respect to mon- itoring leverage and acting to curtail exces- sive leveraging; (2) an analysis of the authority of the Board to regulate leverage, including by setting mar- gin requirements, and what process the Board used to decide whether or not to use its au- thority; (3) an analysis of any usage of the margin authority by the Board; and (4) recommendations for the Board and ap- propriate committees of Congress with respect to the existing authority of the Board. (c) Report Not later than June 1, 2009, the Comptroller General shall complete and submit a report on the study required by this section to the Com- mittee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives. (d) Sharing of information Any reports required under this section shall also be submitted to the Congressional Over- sight Panel established under section 5233 of this title. (Pub. L. 110–343, div. A, title I, § 117, Oct. 3, 2008, 122 Stat. 3786.) § 5228. Funding For the purpose of the authorities granted in this chapter, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, and the purposes for which securities may be issued under chapter 31 of title 31 are extended to include actions au- thorized by this chapter, including the payment of administrative expenses. Any funds expended or obligated by the Secretary for actions au- thorized by this chapter, including the payment of administrative expenses, shall be deemed ap- propriated at the time of such expenditure or obligation. (Pub. L. 110–343, div. A, title I, § 118, Oct. 3, 2008, 122 Stat. 3786.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’ and was translated as reading ‘‘this divi- sion’’, meaning div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765, known as the Emergency Economic Sta- bilization Act of 2008, to reflect the probable intent of Congress. For complete classification of division A to the Code, see Short Title note set out under section 5201 of this title and Tables. § 5229. Judicial review and related matters (a) Judicial review (1) Standard Actions by the Secretary pursuant to the au- thority of this chapter shall be subject to chapter 7 of title 5, including that such final actions shall be held unlawful and set aside if found to be arbitrary, capricious, an abuse of discretion, or not in accordance with law. (2) Limitations on equitable relief (A) Injunction No injunction or other form of equitable relief shall be issued against the Secretary for actions pursuant to section 1 5211, 5212, 5216, and 5219 of this title, other than to rem- edy a violation of the Constitution. (B) Temporary restraining order Any request for a temporary restraining order against the Secretary for actions pur- suant to this chapter shall be considered and granted or denied by the court within 3 days of the date of the request. (C) Preliminary injunction Any request for a preliminary injunction against the Secretary for actions pursuant to this chapter shall be considered and granted or denied by the court on an expe- dited basis consistent with the provisions of rule 65(b)(3) of the Federal Rules of Civil Procedure, or any successor thereto. (D) Permanent injunction Any request for a permanent injunction against the Secretary for actions pursuant to this chapter shall be considered and granted or denied by the court on an expe- dited basis. Whenever possible, the court shall consolidate trial on the merits with any hearing on a request for a preliminary injunction, consistent with the provisions of rule 65(a)(2) of the Federal Rules of Civil Procedure, or any successor thereto. (3) Limitation on actions by participating com- panies No action or claims may be brought against the Secretary by any person that divests its assets with respect to its participation in a program under this chapter, except as pro- vided in paragraph (1), other than as expressly provided in a written contract with the Sec- retary. (4) Stays Any injunction or other form of equitable relief issued against the Secretary for actions pursuant to section 1 5211, 5212, 5216, and 5219 of this title, shall be automatically stayed. The stay shall be lifted unless the Secretary seeks a stay from a higher court within 3 calendar