,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #adhc  ,,in ,,the ,,house ,,of  
,,representatives  ,april #aa1 #bjac    
,ms4 ,waters 7for herself1 ,mr4         
,conyers1 ,mr4 ,al ,green of ,texas1 and
 ,mr4 ,cummings7 introduced the         
following bill2 which was referred to   
the ,committee on ,financial ,services  
,a ,,bill  ,to amend the ,federal       
,deposit ,insurance ,act to provide     
requirements for appropriate ,federal   
banking agencies when using independent 
consultants in carrying out a consent   
order1 to grant ,,sigtarp authority to  
provide oversight of such consultants1  
and for other purposes4  #a4 ,short     
title ,this ,act may be cited as the    
,stop ,outsourcing ,banking ,enforcement
 and ,examination ,act4  #b4 ,use of    
consultants in consent orders ,the      
,federal ,deposit ,insurance ,act 7#ab  
,u4,s4,c4 #ahaa7 is amended by adding at
 the end the following3  #ea4 ,use of   
consultants in consent orders  7a7 ,in  
general ,an appropriate ,federal banking

 agency that enters into a consent order
 with a person regulated by such agency 
may only use an independent consultant  
in carrying out such order if all of the
 following requirements are met3  7#a7  
,transparency ,no less than two weeks   
before any activity under the consent   
order commences1 the appropriate        
,federal banking agency shall make the  
following information available to the  
public3  7,a7 ,the full and unredacted  
consent agreement resulting from the    
consent order4  7,b7 ,all material      
information related to any past business
 relationships of the independent       
consultants1 regulators1 financial      
institutions1 and third party service   
providers to the order1 and their agents
 and employees1 regardless of their     
involvement in the execution of the     
order4  7,c7 ,a detailed estimate of    
engagement costs4  7,d7 ,a detailed     
description of a well-defined           
methodology for fulfilling the consent  
order4  7#b7 ,reporting ,the appropriate

 ,federal banking agency shall issue a  
report to the ,congress1 not less than  
once every quarter until the consent    
order ends1 detailing the progress in   
fulfilling the consent order and the    
performance of the independent          
consultant4  7#c7 ,restriction on       
participation ,no independent consultant
 carrying out a consent order has prior 
or current work that will be under      
review in such consent order or a       
concurrent and substantially similar    
consent order4  7#d7 ,retention and     
payment of consultant ,the independent  
consultant is hired1 and paid1 directly 
by the appropriate ,federal banking     
agency and the appropriate ,federal     
banking agency is to be reimbursed for  
such expenses by the entity subject to  
the consent order4  7#e7 ,restriction on
 application of penalties to other      
ongoing enforcement actions ,any        
remediation or penalties under the      
consent order will not apply to1 or be  
settled in conjunction with1 any other  

consent order1 settlement1 or           
enforcement action4  7b7 ,private right 
of action ,if an independent consultant 
fails to comply with the contract under 
which the consultant is assisting the   
appropriate ,federal banking agency in  
carrying out a consent order which      
requires financial remediation to a     
person or class of persons1 any person  
or class of persons aggrieved by such   
failure may bring a civil action in a   
court of competent jurisdiction for     
damages resulting from such violation1  
and may obtain other appropriate relief1
 including equitable relief4 ,if the    
plaintiff prevails in any such action1  
the court shall award the plaintiff any 
litigation costs reasonably incurred1   
together with reasonable attorneys' fees
 and reasonable expert witness fees1 as 
determined by the court4  7c7 ,clawback 
of fees  7#a7 ,in general ,if a court   
determines that an independent          
consultant has violated the terms of the
 contract with the appropriate ,federal 

banking agency or has failed to disclose
 required conflict of interest          
information1 the independent consultant 
shall repay the appropriate ,federal    
banking agency all fees received by the 
consultant during the period of time    
such violation or failure was occurring4
  7#b7 ,safe harbor ,if the independent 
consultant made all reasonable efforts  
to uncover conflicts of interest among  
the consultant's agents and employees1  
the consultant shall not be subject to  
paragraph 7#a7 with respect to a failure
 to disclose required conflict of       
interest information4  7d7 ,employment  
restriction ,an employee of an          
appropriate ,federal banking agency that
 was involved in approving an           
independent consultant to assist in     
carrying out a consent order may not    
seek employment with1 or be employed by1
 such independent consultant during any 
period in which such consent order is in
 effect1 any amendment to such consent  
order is in effect1 or any subsequent   

consent order based on the original     
consent order is in effect4  4  #c4     
,,sigtarp to oversee use of consultants 
7a7 ,in general ,section #aba of the    
,emergency ,economic ,stabilization ,act
 of #bjjh 7#ab ,u4,s4,c4 #ebca7 is      
amended--  7#a7 in subsection 7c71 by   
adding at the end the following3  7#e7  
,in addition1 the ,special ,inspector   
,general shall also have the duties and 
responsibilities of providing oversight 
of--  7,a7 consent orders entered into  
by an appropriate ,federal banking      
agency2 and  7,b7 the performance of    
independent consultants hired by an     
appropriate ,federal banking agency to  
assist in carrying out such consent     
orders1 as described under section #ea  
of the ,federal ,deposit ,insurance     
,act4  2 and  7#b7 by amending          
subsection 7k7 to read as follows3  7k7 
,oversight of consent orders  7#a7      
,right of action related to consent     
order monitoring ,the ,special          
,inspector ,general may bring a civil   

action in any court of competent        
jurisdiction against an independent     
consultant described under section      
#ea7;a7 of the ,federal ,deposit        
,insurance ,act for damages and         
equitable relief for any violations of  
the consultant's duties under the       
contract under which the consultant is  
assisting an appropriate ,federal       
banking agency in carrying out a consent
 order4  7#b7 ,whistleblower incentives 
and protection related to consent order 
monitoring  7,a7 ,in general ,the       
,special ,inspector ,general shall      
establish a whistleblower program under 
which--  7i7 the ,special ,inspector    
,general pays an award or awards to #a  
or more whistleblowers who voluntarily  
provide original information to the     
,special ,inspector ,general that leads 
to the successful enforcement of a      
judicial or administrative action       
brought by the ,special ,inspector      
,general against an independent         
consultant described under section      

#ea7;a7 of the ,federal ,deposit        
,insurance ,act that results in monetary
 sanctions exceeding #a1jjj1jjj2 and    
7ii7 the employer of a whistleblower may
 not discriminate against a             
whistleblower in the terms and          
conditions of employment of the         
whistleblower because of any lawful act 
done by the whistleblower4  7,b7 ,form  
of program ,to the extent practicable1  
the whistleblower program established   
under this subsection shall be carried  
out in the same manner as the           
whistleblower provision under section   
#ba;,f of the ,securities ,exchange ,act
 of #aicd 7#ae ,u4,s4,c4 #ghu-#f74  4