12 U.S.C. § 5515 — Supervision of very large banks, savings

Page 1962 TITLE 12—BANKS AND BANKING § 5515 1 See References in Text note below. (f) Preservation of Farm Credit Administration authority No provision of this title 1 may be construed as modifying, limiting, or otherwise affecting the authority of the Farm Credit Administration. (Pub. L. 111–203, title X, § 1024, July 21, 2010, 124 Stat. 1987; Pub. L. 113–173, § 2, Sept. 26, 2014, 128 Stat. 1899.) Editorial Notes REFERENCES IN TEXT This title, where footnoted in subsecs. (a)(1), (b)(5), (c)(2), and (f), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Pro- tection Act of 2010, which enacted this subchapter and enacted, amended, and repealed numerous other sec- tions and notes in the Code. For complete classification of title X to the Code, see Short Title note set out under section 5301 of this title and Tables. AMENDMENTS 2014—Subsec. (b)(3). Pub. L. 113–173 substituted ‘‘regu- lators, the State bank regulatory authorities, and the State agencies that licence, supervise, or examine the offering of consumer financial products or services’’ for ‘‘regulators and the State bank regulatory authorities’’ and inserted at end ‘‘The sharing of information with such regulators, authorities, and agencies shall not be construed as waiving, destroying, or otherwise affect- ing any privilege or confidentiality such person may claim with respect to such information under Federal or State law as to any person or entity other than such Bureau, agency, supervisor, or authority.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective July 21, 2010, see section 1029A of Pub. L. 111–203, set out as a note under section 5511 of this title. § 5515. Supervision of very large banks, savings associations, and credit unions (a) Scope of coverage This section shall apply to any covered person that is— (1) an insured depository institution with total assets of more than $10,000,000,000 and any affiliate thereof; or (2) an insured credit union with total assets of more than $10,000,000,000 and any affiliate thereof. (b) Supervision (1) In general The Bureau shall have exclusive authority to require reports and conduct examinations on a periodic basis of persons described in sub- section (a) for purposes of— (A) assessing compliance with the require- ments of Federal consumer financial laws; (B) obtaining information about the ac- tivities subject to such laws and the associ- ated compliance systems or procedures of such persons; and (C) detecting and assessing associated risks to consumers and to markets for con- sumer financial products and services. (2) Coordination To minimize regulatory burden, the Bureau shall coordinate its supervisory activities with the supervisory activities conducted by pru- dential regulators and the State bank regu- latory authorities, including consultation re- garding their respective schedules for exam- ining such persons described in subsection (a) and requirements regarding reports to be sub- mitted by such persons. (3) Use of existing reports The Bureau shall, to the fullest extent pos- sible, use— (A) reports pertaining to a person de- scribed in subsection (a) that have been pro- vided or required to have been provided to a Federal or State agency; and (B) information that has been reported publicly. (4) Preservation of authority Nothing in this title 1 may be construed as limiting the authority of the Director to re- quire reports from a person described in sub- section (a), as permitted under paragraph (1), regarding information owned or under the con- trol of such person, regardless of whether such information is maintained, stored, or proc- essed by another person. (5) Reports of tax law noncompliance The Bureau shall provide the Commissioner of Internal Revenue with any report of exam- ination or related information identifying pos- sible tax law noncompliance. (c) Primary enforcement authority (1) The Bureau to have primary enforcement authority To the extent that the Bureau and another Federal agency are authorized to enforce a Federal consumer financial law, the Bureau shall have primary authority to enforce that Federal consumer financial law with respect to any person described in subsection (a). (2) Referral Any Federal agency, other than the Federal Trade Commission, that is authorized to en- force a Federal consumer financial law may recommend, in writing, to the Bureau that the Bureau initiate an enforcement proceeding with respect to a person described in sub- section (a), as the Bureau is authorized to do by that Federal consumer financial law. (3) Backup enforcement authority of other Federal agency If the Bureau does not, before the end of the 120-day period beginning on the date on which the Bureau receives a recommendation under paragraph (2), initiate an enforcement pro- ceeding, the other agency referred to in para- graph (2) may initiate an enforcement pro- ceeding, including performing follow up super- visory and support functions incidental there- to, to assure compliance with such proceeding. (d) Service providers A service provider to a person described in subsection (a) shall be subject to the authority of the Bureau under this section, to the same ex- tent as if the Bureau were an appropriate Fed- Page 1963 TITLE 12—BANKS AND BANKING § 5515 eral banking agency under section 1867(c) of this title. In conducting any examination or requir- ing any report from a service provider subject to this subsection, the Bureau shall coordinate with the appropriate prudential regulator. (e) Simultaneous and coordinated supervisory action (1) Examinations A prudential regulator and the Bureau shall, with respect to each insured depository insti- tution, insured credit union, or other covered person described in subsection (a) that is su- pervised by the prudential regulator and the Bureau, respectively— (A) coordinate the scheduling of examina- tions of the insured depository institution, insured credit union, or other covered person described in subsection (a); (B) conduct simultaneous examinations of each insured depository institution or in- sured credit union, unless such institution requests examinations to be conducted sepa- rately; (C) share each draft report of examination with the other agency and permit the receiv- ing agency a reasonable opportunity (which shall not be less than a period of 30 days after the date of receipt) to comment on the draft report before such report is made final; and (D) prior to issuing a final report of exam- ination or taking supervisory action, take into consideration concerns, if any, raised in the comments made by the other agency. (2) Coordination with State bank supervisors The Bureau shall pursue arrangements and agreements with State bank supervisors to co- ordinate examinations, consistent with para- graph (1). (3) Avoidance of conflict in supervision (A) Request If the proposed supervisory determinations of the Bureau and a prudential regulator (in this section referred to collectively as the ‘‘agencies’’) are conflicting, an insured de- pository institution, insured credit union, or other covered person described in subsection (a) may request the agencies to coordinate and present a joint statement of coordinated supervisory action. (B) Joint statement The agencies shall provide a joint state- ment under subparagraph (A), not later than 30 days after the date of receipt of the re- quest of the insured depository institution, credit union, or covered person described in subsection (a). (4) Appeals to governing panel (A) In general If the agencies do not resolve the conflict or issue a joint statement required by sub- paragraph (B), or if either of the agencies takes or attempts to take any supervisory action relating to the request for the joint statement without the consent of the other agency, an insured depository institution, insured credit union, or other covered person described in subsection (a) may institute an appeal to a governing panel, as provided in this subsection, not later than 30 days after the expiration of the period during which a joint statement is required to be filed under paragraph (3)(B). (B) Composition of governing panel The governing panel for an appeal under this paragraph shall be composed of— (i) a representative from the Bureau and a representative of the prudential regu- lator, both of whom— (I) have not participated in the mate- rial supervisory determinations under appeal; and (II) do not directly or indirectly report to the person who participated materi- ally in the supervisory determinations under appeal; and (ii) one individual representative, to be determined on a rotating basis, from among the Board of Governors, the Cor- poration, the National Credit Union Ad- ministration, and the Office of the Comp- troller of the Currency, other than any agency involved in the subject dispute. (C) Conduct of appeal In an appeal under this paragraph— (i) the insured depository institution, in- sured credit union, or other covered person described in subsection (a)— (I) shall include in its appeal all the facts and legal arguments pertaining to the matter; and (II) may, through counsel, employees, or representatives, appear before the governing panel in person or by tele- phone; and (ii) the governing panel— (I) may request the insured depository institution, insured credit union, or other covered person described in sub- section (a), the Bureau, or the prudential regulator to produce additional informa- tion relevant to the appeal; and (II) by a majority vote of its members, shall provide a final determination, in writing, not later than 30 days after the date of filing of an informationally com- plete appeal, or such longer period as the panel and the insured depository institu- tion, insured credit union, or other cov- ered person described in subsection (a) may jointly agree. (D) Public availability of determinations A governing panel shall publish all infor- mation contained in a determination by the governing panel, with appropriate redactions of information that would be subject to an exemption from disclosure under section 552 of title 5. (E) Prohibition against retaliation The Bureau and the prudential regulators shall prescribe rules to provide safeguards from retaliation against the insured deposi- tory institution, insured credit union, or other covered person described in subsection Page 1964 TITLE 12—BANKS AND BANKING § 5516 (a) instituting an appeal under this para- graph, as well as their officers and employ- ees. (F) Limitation The process provided in this paragraph shall not apply to a determination by a pru- dential regulator to appoint a conservator or receiver for an insured depository institu- tion or a liquidating agent for an insured credit union, as the case may be, or a deci- sion to take action pursuant to section 1831o of this title or section 1790a of this title, as applicable. (G) Effect on other authority Nothing in this section shall modify or limit the authority of the Bureau to inter- pret, or take enforcement action under, any Federal consumer financial law, or the au- thority of a prudential regulator to interpret or take enforcement action under any other provision of Federal law for safety and soundness purposes. (Pub. L. 111–203, title X, § 1025, July 21, 2010, 124 Stat. 1990.) Editorial Notes REFERENCES IN TEXT This title, referred to in subsec. (b)(4), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Protection Act of 2010, which enacted this subchapter and enacted, amended, and re- pealed numerous other sections and notes in the Code. For complete classification of title X to the Code, see Short Title note set out under section 5301 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the designated transfer date, ex- cept that subsec. (e) of this section is effective July 21, 2010, see section 1029A of Pub. L. 111–203, set out as a note under section 5511 of this title. § 5516. Other banks, savings associations, and credit unions (a) Scope of coverage This section shall apply to any covered person that is— (1) an insured depository institution with total assets of $10,000,000,000 or less; or (2) an insured credit union with total assets of $10,000,000,000 or less. (b) Reports The Director may require reports from a per- son described in subsection (a), as necessary to support the role of the Bureau in implementing Federal consumer financial law, to support its examination activities under subsection (c), and to assess and detect risks to consumers and con- sumer financial markets. (1) Use of existing reports The Bureau shall, to the fullest extent pos- sible, use— (A) reports pertaining to a person de- scribed in subsection (a) that have been pro- vided or required to have been provided to a Federal or State agency; and (B) information that has been reported publicly. (2) Preservation of authority Nothing in this subsection may be construed as limiting the authority of the Director from requiring from a person described in sub- section (a), as permitted under paragraph (1), information owned or under the control of such person, regardless of whether such infor- mation is maintained, stored, or processed by another person. (3) Reports of tax law noncompliance The Bureau shall provide the Commissioner of Internal Revenue with any report of exam- ination or related information identifying pos- sible tax law noncompliance. (c) Examinations (1) In general The Bureau may, at its discretion, include examiners on a sampling basis of the examina- tions performed by the prudential regulator to assess compliance with the requirements of Federal consumer financial law of persons de- scribed in subsection (a). (2) Agency coordination The prudential regulator shall— (A) provide all reports, records, and docu- mentation related to the examination proc- ess for any institution included in the sam- ple referred to in paragraph (1) to the Bureau on a timely and continual basis; (B) involve such Bureau examiner in the entire examination process for such person; and (C) consider input of the Bureau con- cerning the scope of an examination, con- duct of the examination, the contents of the examination report, the designation of mat- ters requiring attention, and examination ratings. (d) Enforcement (1) In general Except for requiring reports under sub- section (b), the prudential regulator is author- ized to enforce the requirements of Federal consumer financial laws and, with respect to a covered person described in subsection (a), shall have exclusive authority (relative to the Bureau) to enforce such laws. (2) Coordination with prudential regulator (A) Referral When the Bureau has reason to believe that a person described in subsection (a) has engaged in a material violation of a Federal consumer financial law, the Bureau shall no- tify the prudential regulator in writing and recommend appropriate action to respond. (B) Response Upon receiving a recommendation under subparagraph (A), the prudential regulator shall provide a written response to the Bu- reau not later than 60 days thereafter. (e) Service providers A service provider to a substantial number of persons described in subsection (a) shall be sub-