,i #aaeth ,,congress #ast ,session ,h4 ,r4 #cicg ,,in ,,the ,,house ,,of ,,representatives ,october #d1 #bjag,ms4 ,maxine ,waters of ,california 7for herself1 ,mr4 ,capuano1 ,mr4 ,ellison1 ,mr4 ,al ,green of ,texas1 ,ms4 ,kaptur1 ,ms4 ,jayapal1 ,mr4 ,sarbanes1 ,mr4 ,raskin1 and ,ms4 ,schakowsky7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to require the ,federal prudential banking agencies to determine whether certain institutions they regulate engage in a pattern or practice of violations of ,federal banking and consumer protection laws and regulations1 to provide for the revocation of banking charters and ,federal deposit insurance for such institutions1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,megabank ,accountability and ,consequences ,act of #bjag4 #b4 ,findings ,congress finds the following3 7#a7 ,the ,federal prudential banking agencies and the ,bureau of ,consumer ,financial ,protection 7,consumer ,bureau7 are tasked with the responsibility for overseeing ,united ,states banking organizations and foreign banks operating in the ,united ,states4 ,prior to the enactment of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act in #bjaj 7,dodd-,frank ,act7 and the existence of the ,consumer ,bureau1 the ,federal prudential banking agencies were responsible for supervising banks for safety and soundness and compliance with ,federal consumer financial laws4 7#b7 ,following the #bjjg-bjji financial crisis1 ,congress conducted a series of hearings and concluded that in the years leading up to the crisis1 the ,federal prudential banking agencies were not adequately utilizing their rulemaking and supervisory functions1 nor enforcing ,federal consumer financial laws appropriately1 which led to widespread consumer abuses that in turn contributed to the crisis and led to the near collapse of the ,united ,states banking system4 ,to the extent ,federal prudential banking agencies took action to enforce consumer protection laws1 their actions were extremely limited and focused on small banks even though the majority of consumer complaints were tied to the largest banks4 ,in order to better protect consumers from many of the predatory acts and practices within the consumer financial marketplace that contributed to the financial crisis1 and to restore integrity to the country's financial system1 ,congress enacted the ,consumer ,financial ,protection ,act of #bjaj 7,,cfpa71 under title ,x of the ,dodd-,frank ,act4 ,the ,,cfpa established the ,consumer ,bureau to regulate the offering and provision of consumer financial products or services under the ,federal consumer financial law for certain covered entities4 ,the ,consumer ,bureau's enforcement powers with respect to very large banking organizations include investigative authority and the ability to-- 7,a7 conduct hearings and adjudication proceedings2 7,b7 commence civil action lawsuits and make referrals to the ,u4,s4 ,attorney ,general for criminal proceedings2 7,c7 issue consent orders1 under which restitution1 refunds1 rescission or reformation of contracts1 or claw-back of compensation1 is required2 and 7,d7 impose civil money penalties4 7#c7 ,in the years since ,congress enacted the ,dodd-,frank ,act1 some very large banking organizations operating in the ,united ,states have repeatedly violated ,federal banking and consumer protection laws by engaging in unethical business practices1 which have enabled them to maximize profits for shareholders at the expense of the interest of the public4 ,enforcement actions have been taken1 most notably by the ,consumer ,bureau1 but these banks continue to act with impunity and violate numerous laws designed to protect consumers4 7#d7 ,senior bank executives1 including the chief executive officer1 board of directors and other senior officers at the largest banking organizations have rarely been held personally accountable for ,federal consumer protection law violations and other illicit practices that occurred during their tenure4 ,in a report to ,congress from the ,office of the ,special ,inspector ,general for the ,troubled ,asset ,relief ,program 7,,sigtarp71 the ,,sigtarp wrote in #bjaf3 ,the ,american people have called for stronger reforms on ,wall ,street1 frustrated by the lack of senior executive accountability at the largest banks4 ,i have called for ,wall ,street reform based on the difficulties ,,sigtarp has faced as a law enforcement agency in proving criminal intent of senior executives at large institutions given how isolated they are from knowledge of fraud in their company4 ,this isolation is part of the culture at large institutions1 and is something that is unlikely to change absent reform44 7#e7 ,the ,consumer ,bureau has taken strides in fulfilling its statutory objectives and mission to ensure that all consumers have access to markets for consumer financial products and services and that these markets are fair1 transparent1 and competitive4 ,yet1 unlike the broad authority of ,federal prudential banking regulators over entire operations of its regulated entities1 the scope of and applicability of the ,consumer ,bureau's supervisory authority is limited4 ,the ,consumer ,bureau1 for example1 does not have the authority to revoke a bank's charter or terminate a bank's ,federal deposit insurance1 even when it has found a bank to have engaged in a pattern of recurring and egregious violations of ,federal consumer financial laws and regulations4 7#f7 ,the ,federal prudential banking agencies are authorized to not only license1 charter1 and approve the operations of banking organizations1 but also to supervise these institutions for compliance with ,federal banking laws and regulations4 ,additionally1 the ,federal prudential banking agencies have indicated1 and ,congress agrees1 that instances of consumer harm by a banking organization may be deemed an unsafe or unsound banking practice of an institution1 warranting additional enforcement actions beyond those that have also been issued by the ,consumer4 ,federal ,reserve ,board ,chair ,janet ,yellen said in #bjaf1 ,of course1 consumer issues and issues that involve harm of consumers can become safety and soundness issues4 ,and if there was--at least one of the lessons from the financial crisis1 ,i think1 is that abuses of consumers of the sort that we see--saw in subprime lending ultimately did become--become safety and soundness issues4 ,and so1 of course1 we need to have that concern1 and we'll focus there44 7#g7 ,formal and informal enforcement authorities afforded to the ,federal prudential banking agencies include consent orders1 cease and desist orders1 civil money penalties1 written agreements1 and the ability to place limitations on or remove institution-affiliated parties--such as a director or officer of an institution--for violations of laws or regulations4 ,for the most egregious cases1 when institutions commit illegal acts or repeatedly fail to comply with laws or regulations1 the ,federal prudential banking agencies also have the authority1 and duty1 to take more serious actions1 such as limit the activities or functions of a bank1 permanently bar culpable bank officials from working again in the banking industry1 terminate ,federal deposit insurance for a bank1 appoint a receiver to unwind the bank or revoke the bank's national charter4 7#h7 ,despite these important statutory powers1 the ,federal prudential banking agencies continue to rely on enforcement tools such as consent orders1 cease and desist orders1 and civil money penalties1 even in instances when an institution's violations have demonstrated unsafe or unsound business practices and past supervisory and enforcement actions have not sufficiently deterred illegal practices4 7#i7 ,the failure of the ,federal prudential banking agencies to exercise statutorily provided enforcement authorities--such as revoking a bank's national charter or terminating its ,federal deposit insurance--on institutions that have demonstrated a pattern or practice of unsafe or unsound banking practices related to repeat violations of ,federal consumer financial laws or regulations1 has resulted in insufficient regulatory oversight that has allowed institutions to continue to engage in inappropriate and illegal business practices harming millions of consumers4 7#aj7 ,unlike small community banks that serve consumers in their local communities1 megabanks 7as identified as global systemically important bank holding companies7 are comparatively extremely large and serve millions of consumers4 ,whereas ,federal prudential banking agencies have demonstrated an ability to take enforcement actions against small community banks1 including for violations of ,federal consumer financial law1 the same has not been demonstrated to be true of megabanks4 ,while the ,dodd-,frank ,act established a regulatory framework that has made significant progress in leveling the playing field between large and small banks1 including with respect to how the ,consumer ,bureau's authorities were designed and how the toughest rules apply to megabanks1 new laws should be enacted that build on the ,dodd-,frank ,act's tiered and tailored regulatory framework to mandate action in areas where ,federal prudential banking agencies have been reluctant to exercise their discretion to take appropriate action against megabanks that repeatedly violate laws and harm millions of consumers4 ,new laws should also be enacted to clarify repeated violations of ,federal consumer protection law are sufficient grounds to take certain enforcement actions4 7#aa7 ,to ensure market discipline and confidence in the ,u4,s4 financial system1 ,federal prudential banking regulators should exercise all statutorily mandated powers1 including revoking the charter or terminating ,federal deposit insurance of any large banking organization that has demonstrated a pattern of engaging in unsafe and unsound banking practices that extensively harms consumers4 7#ab7 ,any megabank1 either through its holding company1 depository institutions1 or affiliates1 that repeatedly harms consumers or violates ,federal consumer financial laws or regulations1 has demonstrated a pattern of unsafe or unsound banking practices that necessitates that ,federal prudential banking agencies immediately initiate proceedings1 under existing statutory authority1 to revoke the its national charter or terminate its ,federal deposit insurance1 and place the institution into receivership for sale or dissolution4 7#ac7 ,furthermore1 even if a banking organization's violations of ,federal consumer financial laws are deemed not to technically constitute unsafe or unsound banking practices1 it still may demonstrate a pattern of wrongdoing causing unacceptable harm to its customers1 such that continuing to enable it to engage in the business of banking distorts the regulatory purpose of providing national bank charters1 deposit insurance and other benefits1 and undermines the overarching mission of all ,federal prudential banking agencies to protect the interest of the public and the needs of consumers4 ,federal legislation is needed1 therefore1 to underscore the importance that ,federal prudential banking regulators should1 after consulting with the ,consumer ,bureau1 exercise all their available enforcement powers with respect to large banking organizations that repeatedly violate ,federal consumer financial laws1 including authority to restrict business lines1 revoke an institution's national banking charter1 terminate the institution's ,federal deposit insurance1 and hold the institution's board of directors and senior officers accountable4 #c4 ,definitions ,for purposes of this ,act3 7#a7 ,banking organization ,the term banking organization means any bank1 savings association1 bank holding company1 or savings and loan holding company1 and includes any subsidiary or affiliate of a bank holding company or savings and loan holding company4 7#b7 ,board of ,governors ,the term ,board of ,governors means the ,board of ,governors of the ,federal ,reserve ,system4 7#c7 ,comptroller ,the term ,comptroller means the ,comptroller of the ,currency4 7#d7 ,consumer ,bureau ,the term ,consumer ,bureau means the ,bureau of ,consumer ,financial ,protection4 7#e7 ,corporation ,the term ,corporation means the ,board of ,directors of the ,federal ,deposit ,insurance ,corporation4 7#f7 ,federal consumer financial law ,the term ,federal consumer financial law has the meaning given that term under section #ajjb of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #edha74 7#g7 ,federal consumer protection law ,the term ,federal consumer protection law means-- 7,a7 the ,federal consumer financial law2 7,b7 the ,fair ,housing ,act2 7,c7 the ,federal ,trade ,commission ,act2 7,d7 section #ihg of title #aj1 ,united ,states ,code 7commonly known as the ,military ,lending ,act72 7,e7 the ,servicemembers ,civil ,relief ,act2 and 7,f7 any regulation issued under a law described under subparagraph 7,a71 7,b71 7,c71 7,d71 or 7,e74 7#h7 ,federal prudential banking agencies ,the term ,federal prudential banking agencies means the ,board of ,governors1 the ,comptroller1 and the ,corporation4 7#i7 ,foreign bank ,the term foreign bank has the meaning given that term under section #a7;b7 of the ,international ,banking ,act of #aigh 7#ab ,u4,s4,c4 #caja7;b774 7#aj7 ,global systemically important bank holding company 7,a7 ,in general ,the term global systemically important bank holding company means-- 7i7 a bank holding company that has been identified by the ,board of ,governors as a global systemically important bank holding company pursuant to section #bag4djb of title #ab1 ,code of ,federal ,regulations2 and 7ii7 a global systemically important foreign banking organization1 as defined under section #beb4b of title #ab1 ,code of ,federal ,regulations4 7,b7 ,treatment of existing ,g,s,i,bs ,a company or organization described under clause 7i7 or 7ii7 of subparagraph 7,a7 on the date of the enactment of this ,act shall be deemed a global systemically important bank holding company for purposes of this ,act4 7#aa7 ,pattern or practice of unsafe or unsound banking practices and other violations related to consumer harm ,the term pattern or practice of unsafe or unsound banking practices and other violations related to consumer harm means engaging in all of the following activities1 to the extent each activity was discovered or occurred at least once in the #aj years preceding the date of the enactment of this ,act3 7,a7 ,having unsafe or unsound practices in the institution's risk management and oversight of the institution's sales practices1 as evidenced by-- 7i7 an institution lacking an enterprise-wide sales practices oversight program that enables the institution to adequately monitor sales practices to prevent and detect unsafe or unsound sales practices and mitigate risks that may result from such unsafe and unsound sales practices2 and 7ii7 an institution lacking a comprehensive customer complaint monitoring process that-- 7,i7 enables the institution to assess customer complaint activity across the bank2 7,,ii7 adequately monitors1 manages1 and reports on customer complaints2 and 7,,iii7 analyzes and understands the potential risks posed by the institution's sales practices4 7,b7 ,engaging in unsafe and unsound sales practices1 as evidenced by the institution-- 7i7 opening more than one million unauthorized deposit1 credit card1 or other accounts2 7ii7 performing unauthorized transfers of customer funds2 and 7iii7 performing unauthorized credit inquiries for purposes of the conduct described in clause 7i7 or 7ii74 7,c7 ,lacking adequate oversight of third-party vendors for purposes of risk-mitigation1 to prevent abusive and deceptive practices in the vendor's provision of consumer products or services4 7,d7 ,having deficient policies and procedures for sharing customers' personal identifiable information with third-party vendors for litigation purposes that led to inadvertent disclosure of such information to unintended parties4 7,e7 ,violating ,federal consumer financial laws with respect to mortgage loans1 including charges of hidden fees and unauthorized or improper disclosures tied to home mortgage loan modifications4 7,f7 ,engaging in unsafe or unsound banking practices related to residential mortgage loan servicing and foreclosure processing4 7,g7 ,violating the ,servicemembers ,civil ,relief ,act4 7#ab7 ,pattern or practice of violations of ,federal consumer protection laws 7,a7 ,in general ,the term pattern or practice of violations of ,federal consumer protection laws means-- 7i7 a pattern or practice of unsafe or unsound banking practices and other violations related to consumer harm2 and 7ii7 such other pattern or practice as the ,director of the ,consumer ,bureau shall1 in consultation with the ,comptroller1 the ,board of ,governors1 and the ,corporation1 establish by regulation4 7,b7 ,time period ,eligible activities that may be included in any pattern or practice described under subparagraph 7,a7 are those that were discovered or occurred in the #aj years preceding any determination made under section #aja or section #bja4 7,c7 ,rulemaking ,not later than the end of the #a-year period beginning on the date of the enactment of this ,act1 the ,director of the ,consumer ,bureau shall issue final regulations to carry out subparagraph 7,a77ii74 7#ac7 ,state ,the term ,state means the several ,states1 the ,district of ,columbia1 and any other territory or possession of the ,united ,states4 7#ad7 ,definitions related to subsidiaries and affiliates of foreign banks ,the terms agency1 branch1 commercial lending company1 and representative office have the meanings given those terms1 respectively1 under section #a7;b7 of the ,international ,banking ,act of #aigh 7#ab ,u4,s4,c4 #caja7;b774 7#ae7 ,other banking definitions ,the terms affiliate1 appropriate ,federal banking agency1 depository institution1 ,federal savings association1 insured depository institution1 national bank1 savings association1 subsidiary1 ,state depository institution1 and ,state member bank have the meaning given those terms1 respectively1 under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 #d4 ,agency authority 7a7 ,in general ,notwithstanding any other law and for the sole purpose of carrying out the requirements of this ,act1 in the event that the ,board of ,governors or the ,corporation lack a quorum1 a majority of the members of the ,board of ,governors and a majority of the members of the ,corporation shall have the full authority to act on behalf of their respective agency4 7b7 ,determination of certain violations ,in making any determination under this ,act with respect to whether an institution has violated a ,federal consumer protection law1 if a ,federal prudential banking agency does not have enforcement authority over the applicable ,federal consumer protection law1 the agency shall rely on publically available information with respect to such violations1 such as criminal convictions and enforcement actions1 and consult with any relevant ,government department or agency that took such actions against the institution4 7c7 ,rule of construction ,nothing in this ,act shall be construed to reduce or impair any existing authority with respect to enforcement actions taken by an appropriate ,federal banking agency4 ,furthermore1 a violation of ,federal consumer protection law or a pattern or practice of violations of ,federal consumer protection laws by an institution shall not be deemed insufficient grounds for the appropriate ,federal banking agency to take any enforcement action1 including those referenced in this ,act1 it deems necessary and is otherwise authorized to take4 ,i ,congressional ,mandate to ,review and ,wind ,down ,megabanks that ,continuously ,abuse ,consumers and ,repeatedly ,violate the ,law #aja4 ,initiate proceedings to revoke charter 7a7 ,in general 7#a7 ,revocation of charter ,the ,comptroller shall review and determine1 after consulting with the ,director of the ,consumer ,bureau1 within #ij days of enactment of this ,act whether a national bank or ,federal savings association affiliated with a global systemically important bank holding company1 or the branch1 representative office1 or agency of a foreign bank that is federally licensed and affiliated with a global systemically important bank holding company1 is engaging or has engaged in a pattern or practice of unsafe or unsound banking practices and other violations related to consumer harm4 ,not later than #abj days after the date of enactment of this ,act1 the ,comptroller shall provide written notice to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate describing the review1 listing any identified institution with a detailed basis for the determination1 and1 subject to subsection 7d71 immediately initiate proceedings to terminate the ,federal charter of any such institution or appoint a receiver for any such institution1 pursuant to title ,,lxii of the ,revised ,statutes of the ,united ,states1 the ,national ,bank ,receivership ,act 7#ab ,u4,s4,c4 #aia et seq471 or the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfa et seq474 7#b7 ,termination of ,federal deposit ,insurance ,the ,corporation shall review and determine1 after consulting with the ,director of the ,consumer ,bureau1 within #ij days of enactment of this ,act1 whether an insured depository institution affiliated with a global systemically important bank holding company has engaged or is engaging in a pattern or practice of unsafe or unsound banking practices and other violations related to consumer harm4 ,not later than #abj days after the date of enactment of this ,act1 the ,corporation shall provide written notice to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate describing the review1 listing any identified institution with a detailed basis for the determination and1 subject to subsection 7d71 immediately initiate an involuntary termination of the deposit insurance of the depository institution under and subject to the procedures set forth in section #h7;a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;a774 7#c7 ,termination of ,federal ,reserve membership of a ,state member bank ,the ,board of ,governors shall review and determine1 after consulting with the ,director of the ,consumer ,bureau1 within #ij days of enactment of this ,act1 whether a ,state member bank affiliated with a global systemically important bank holding company is engaging or has engaged in a pattern or practice of unsafe or unsound banking practices and other violations related to consumer harm4 ,not later than #abj days after the date of enactment of this ,act1 the ,board of ,governors shall provide written notice to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate describing the review1 listing any identified institution with a detailed basis for the determination and1 subject to subsection 7d71 immediately initiate proceedings to terminate such bank's membership in the ,federal ,reserve ,system pursuant to the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bba et seq474 7#d7 ,termination of ,u4,s4 activities by foreign bank ,the ,board of ,governors shall review and determine1 after consulting with the ,director of the ,consumer ,bureau1 within #ij days of enactment of this ,act whether-- 7,a7 a foreign bank affiliated with a global systemically important bank holding company that has a ,state-licensed branch1 agency1 commercial lending company1 or representative office is engaging or has engaged in a pattern or practice of unsafe or unsound banking practices and other violations related to consumer harm4 ,not later than #abj days after the date of enactment of this ,act1 the ,board of ,governors shall provide written notice to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate describing the review1 listing any identified foreign bank with a detailed basis for the determination and1 subject to subsection 7d71 immediately initiate proceedings to terminate the foreign bank's ability to operate in the ,united ,states pursuant to section #g7;e7 of the ,international ,banking ,act of #aigh 7#ab ,u4,s4,c4 #caje7;e772 or 7,b7 a ,federal branch or ,federal agency of a foreign bank affiliated with a global systemically important bank holding company that is engaging or has engaged in a pattern or practice of unsafe or unsound banking practices and other violations related to consumer harm4 ,not later than #abj days after the date of enactment of this ,act1 the ,board of ,governors shall provide written notice to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate describing the review1 listing any identified institution with a detailed basis for the determination and transmit within #bd hours to the ,comptroller a recommendation that the license of the ,federal branch or ,federal agency be terminated pursuant to section #d7;i7 of the ,international ,banking ,act of #aigh 7#ab ,u4,s4,c4 #cajb7;i774 7b7 ,mandatory testimony ,the ,federal prudential banking agencies shall testify before the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate regarding the review required by this section no later than #ahj days after the date of enactment of this ,act4 7c7 ,coordinated and unimpeded action ,each ,federal prudential banking agency shall coordinate and share all relevant information with other ,federal prudential banking agencies in carrying out this section4 ,to the extent the same institution is identified by multiple ,federal prudential banking agencies under this section1 the appropriate ,federal banking agency shall not delay or otherwise cease taking any action required by this ,act with respect to the institution4 7d7 ,judicial review ,a determination by the ,comptroller1 the ,board of ,governors1 or the ,corporation under subsection 7a7 shall be subject to review by a ,federal district court of competent jurisdiction under the procedures provided for under section #h7;h7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;h774 7e7 ,removal of directors and senior officers ,if the ,comptroller1 the ,board of ,governors1 or the ,corporation1 as applicable1 makes a determination to initiate proceedings to terminate a ,federal charter for a national bank1 ,federal savings association1 or branch1 agency1 commercial lending company1 or representative office of a foreign bank under this section1 or makes a determination to initiate an involuntary termination of the deposit insurance1 the ,comptroller1 the ,board the ,governors1 or the ,corporation1 as applicable1 shall notify the institution that removal is required of any director or senior officers responsible1 as determined by the appropriate ,federal banking agency1 for overseeing any division of the institution during the time that the institution was engaging in the identified pattern or practice of unsafe or unsound banking practices1 pursuant to section #h7;e7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;e774 ,any current and former directors and senior officers determined responsible by the appropriate ,federal banking agency for overseeing any division of an institution during the time that the institution was found to be engaging in the pattern or practice of unsafe or unsound banking practices under this title shall also be permanently banned from working as an employee1 officer1 or director of any other banking organization1 pursuant to section #h7;e7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;e774 #ajb4 ,receivership and limitation on transfer of assets 7a7 ,notice to ,,fdic ,the ,comptroller and the ,board of ,governors shall notify within #bd hours the ,corporation of any determination made under section #aja4 7b7 ,termination of ,federal deposit insurance based on revocation of ,federal banking charter ,for any insured depository institution identified by the ,corporation under section #aja1 or upon being notified of the termination of a national bank or ,federal savings association's ,federal charter or termination of a ,federal license for an insured branch or agency of a bank under subsection 7a71 the ,corporation shall-- 7#a7 initiate an involuntary termination of the deposit insurance of the institution under section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah72 and 7#b7 place the institution into receivership1 with the ,corporation acting as the receiver1 pursuant to the procedures provided under section #aa7;c7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahba7;c774 7c7 ,limitation on transfer of assets ,in its capacity as receiver of a national bank1 ,federal savings association1 or branch1 agency1 commercial lending company1 or representative office of a foreign bank under this section1 the ,corporation may transfer any assets of the institution only to banking organizations that were assigned a rating of satisfactory record of meeting community credit needs or better for complying with the ,community ,reinvestment ,act of #aigg in their most recent evaluation1 and may not transfer any assets of the institution to either-- 7#a7 a global systemically important bank holding company1 or any subsidiary of such a bank holding company2 or 7#b7 a banking organization that has exhibited substantial noncompliance with ,federal consumer protection laws as evidenced by any public enforcement actions1 targeted supervisory exams1 or a rating of less than satisfactory on its most recent consumer compliance examination4 7d7 ,consultation ,when acting in the capacity of a receiver pursuant to subsection 7b71 the ,corporation shall consult with the ,office of ,minority and ,women ,inclusion of the ,corporation4 ,,ii ,clarifying ,federal ,charters ,must be ,terminated for ,institutions that ,engage in a ,pattern or ,practice of ,violations of ,federal ,consumer ,protection ,laws or ,regulations #bja4 ,pattern or practice of violations of ,federal consumer protection laws 7a7 ,determination 7#a7 ,comptroller ,the ,comptroller shall regularly review and determine1 in consultation with the ,director of the ,consumer ,bureau1 whether a national bank or ,federal savings association affiliated with a global systemically important bank holding company1 or a federally licensed branch1 agency1 commercial lending company1 or representative office of any foreign bank affiliated with a global systemically important bank holding company is demonstrating a pattern or practice of violations of ,federal consumer protection laws4 ,upon such a determination1 the ,comptroller shall provide a written1 confidential notice within #g days to the other ,federal prudential banking agencies1 ,committee on ,financial ,services of the ,house of ,representatives1 and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate describing the review and any identified institution and1 in consultation with the ,director of the ,consumer ,bureau1 immediately initiate additional enforcement actions or proceedings to either appoint a receiver or terminate the ,federal charter of such institution1 pursuant to subsection 7c74 7#b7 ,board of ,governors ,the ,board of ,governors shall regularly review and determine1 in consultation with the ,director of the ,consumer ,bureau1 whether a ,state member bank affiliated with a global systemically important bank holding company or ,state-chartered branch1 agency1 or representative office of a foreign bank affiliated with a global systemically important bank holding company is demonstrating a pattern or practice of violations of ,federal consumer protection laws4 ,upon such a determination1 the ,board of ,governors shall provide a written1 confidential notice within #g days to the other ,federal prudential banking agencies1 to the ,committee on ,financial ,services of the ,house of ,representatives1 and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate describing the review and any identified institution and1 in consultation with the ,director of the ,consumer ,bureau1 immediately initiate additional enforcement actions or proceedings to terminate the bank's membership in the ,federal ,reserve ,system or the foreign bank's activities in the ,united ,states1 as applicable1 pursuant to subsection 7c74 7#c7 ,corporation ,the ,corporation shall regularly review and determine1 in consultation with the ,director of the ,consumer ,bureau1 whether an insured depository institution affiliated with a global systemically important bank holding company is demonstrating a pattern or practice of violations of ,federal consumer protection laws4 ,upon such a determination1 the ,corporation shall provide a written1 confidential notice within #g days to the other ,federal prudential banking agencies1 the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate describing the review and any identified institution and1 in consultation with the ,director of the ,consumer ,bureau1 immediately initiate additional enforcement actions or proceedings to terminate the deposit insurance of the institution1 pursuant to subsection 7c74 7b7 ,considerations 7#a7 ,in general ,in making a determination under subsection 7a7 or paragraph 7#b71 the ,comptroller1 the ,board of ,governors1 and the ,corporation1 as applicable1 shall consider whether the institution's continued operations1 activities1 and functions are in the public interest1 and whether the public benefits provided to consumers by the institution outweigh the harms posed by the institution1 as well as whether the institution is meeting the convenience and needs of the communities served by the institution4 7#b7 ,recommendation by ,director ,upon a finding by the ,director of the ,consumer ,bureau that a national bank1 ,state member bank1 or ,federal savings association affiliated with a global systemically important bank holding company1 or a federally licensed branch1 agency1 representative office1 or commercial lending company of a foreign bank affiliated with a global systemically important bank holding company is demonstrating a pattern or practice of violations of ,federal consumer protection laws1 the ,director of the ,consumer ,bureau shall1 within #g days1 recommend to the ,comptroller1 the ,board of ,governors1 or the ,corporation that determination should be made under subsection 7a74 ,the ,comptroller1 the ,board of ,governors1 or the ,corporation1 as applicable1 shall consider such recommendation and publicly respond in writing1 including a detailed basis for its decision1 within #ij days as to whether they will follow such recommendation4 7#c7 ,detailed ,explanation ,in making a determination under subsection 7a71 including in response to any recommendation made by the ,director of the ,consumer ,bureau and in any written notice to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate1 the ,comptroller1 the ,board of ,governors1 or the ,corporation1 as applicable1 shall include a detailed description of the review of the institution1 the basis for its determination1 and which of the enforcement actions or proceedings under subsection 7c7 that the agency has determined to take against the institution4 7#d7 ,public ,hearings ,the ,comptroller1 the ,board of ,governors1 or the ,corporation1 as applicable1 may convene public hearings to consider facts1 observations1 evidence1 and testimony provided by any institution subject to a determination under this title as well as affected stakeholders4 ,at least one public hearing must be granted if made at the written request of the institution subject to a determination under this title1 the ,director of the ,consumer ,bureau1 or by relevant ,state or local government agencies from at least five ,states4 7#e7 ,annual report and testimony ,each ,federal prudential banking agency shall annually submit a written report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate describing the actions the agency has taken to carry out the requirements of this ,act1 including the regular review required by this section1 and a list of each violation of ,federal law or regulation that was discovered or occurred in the previous #aj years for each global systemically important bank holding company1 and any affiliate thereof1 that is subject to the agency's supervision4 ,the ,federal prudential banking agencies shall annually testify before the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate on their respective annual report4 7c7 ,consequence of determination 7#a7 ,in general ,if a determination is made under subsection 7a7 with respect to an institution that is demonstrating a pattern or practice of violations of ,federal consumer protection laws1 the appropriate ,federal banking agency1 in consultation with the ,director of the ,consumer ,bureau1 shall take one or more of the following actions3 7,a7 ,remove responsible senior officers or directors of the institution1 and permanently ban them from working at another banking organization1 pursuant to section #h7;e7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;e774 7,b7 ,restrict certain lines of business of the institution1 pursuant to section #h7;b7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;b774 7,c7 ,initiate proceedings to terminate the ,federal charter of the institution1 terminate a foreign bank's ability to operate in the ,united ,states1 or appoint a receiver pursuant to either title ,,lxii of the ,revised ,statutes of the ,united ,states1 the ,national ,bank ,receivership ,act 7#ab ,u4,s4,c4 #aia et seq471 or the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfa et seq471 with the identified pattern or practice of violations of ,federal consumer protection laws deemed as grounds for appointing a conservator or receiver under the ,federal ,deposit ,insurance ,act or terminating deposit insurance pursuant to section #h7;a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;a774 7#b7 ,recommendation by ,director ,if a determination is made under subsection 7a7 with respect to a national bank1 ,federal savings association1 or federally licensed branch1 agency1 commercial lending company1 or representative office of a foreign bank-- 7,a7 the ,director of the ,consumer ,bureau may recommend to the ,comptroller1 the ,board of ,governors1 or the ,corporation what actions should be taken under this subsection2 and 7,b7 the ,comptroller1 the ,board of ,governors1 or the ,corporation1 as applicable1 shall consider such recommendation and publicly respond in writing within #cj days as to whether they will follow such recommendation4 7#c7 ,mandatory enforcement actions ,if a determination is made under subsection 7a71 the ,comptroller1 the ,board of ,governors1 or the ,corporation1 as applicable1 shall take at least one of the actions described under paragraph 7#a74 ,if a second determination is made under subsection 7a7 against the same institution after enforcement actions are taken under this section1 the ,comptroller1 the ,board of ,governors1 or the ,corporation1 as applicable1 shall immediately initiate proceedings to terminate a ,federal charter1 a ,state member bank's membership in the ,federal ,reserve ,system1 a foreign bank's ability to operate in the ,united ,states1 or terminate deposit insurance4 7#d7 ,judicial review ,a determination under subsection 7a7 shall be subject to review by a ,federal district court of competent jurisdiction under the procedures provided for under section #h7;h7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;h774 #bjb4 ,receivership and limitation on transfer of assets 7a7 ,notice to ,,fdic ,the ,comptroller and the ,board of ,governors shall notify within #bd hours the ,corporation of any determination made under section #bja4 7b7 ,termination of ,federal deposit insurance based on revocation of ,federal banking charter ,for any insured depository institution identified by the ,corporation under section #bja1 or upon being notified of the termination of a national bank or ,federal savings association's ,federal charter or termination of a ,federal license for an insured branch or agency of a bank under subsection 7a71 the ,corporation shall-- 7#a7 initiate an involuntary termination of the deposit insurance of the institution under section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah72 and 7#b7 place the institution into receivership1 with the ,corporation acting as the receiver1 pursuant to the procedures provided under section #aa7;c7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahba7;c774 7c7 ,limitation on transfer of assets ,in its capacity as receiver of a national bank1 ,federal savings association1 or branch1 agency1 commercial lending company1 or representative office of a foreign bank under this section1 the ,corporation may transfer any assets of the institution only to a banking organization that was assigned a rating of satisfactory record of meeting community credit needs or better for complying with the ,community ,reinvestment ,act of #aigg in the organization's most recent evaluation1 and may not transfer any assets of the institution to either-- 7#a7 a global systemically important bank holding company1 or any subsidiary of such a bank holding company2 or 7#b7 a banking organization that has exhibited substantial noncompliance with ,federal consumer protection laws as evidenced by any enforcement actions1 targeted supervisory exams1 or a rating of less than satisfactory on its most recent consumer compliance examination4 7d7 ,consultation ,when acting in the capacity of a receiver pursuant to subsection 7b71 the ,corporation shall consult with the ,office of ,minority and ,women ,inclusion of the ,corporation4 #bjc4 ,addressing petitions from ,state and local government agencies with respect to violations of ,federal consumer protection laws and regulations ,the ,comptroller1 the ,corporation1 and the ,board of ,governors shall-- 7#a7 consider petitions from relevant ,state and local government agencies1 including law enforcement and city and ,state attorney generals1 regarding a pattern or practice of violations of ,federal consumer protection laws by a national bank1 a ,state member bank1 or a ,federal savings association affiliated with a global systemically important bank holding company1 or a ,united ,states branch1 agency1 commercial lending company1 or representative office of a foreign bank affiliated with a global systemically important bank holding company1 or a ,state depository institution affiliated with a global systemically important bank holding company1 as applicable2 7#b7 for any petition from ,state or local government agencies from at least five ,states1 provide a written response within #ahj days after receiving such a petition whether or not a determination is made under this title1 including a detailed basis for the determination2 and 7#c7 for any written response under paragraph 7#b71 send a copy of the written response to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 ,,iii ,deterrence and executive accountability to curb consumer abuses #cja4 ,annual certification by executive officers and directors of the board 7a7 ,in general ,each executive officer and director of the board of a national bank or a ,federal savings association affiliated with a global systemically important bank holding company1 or the branch1 representative office1 or agency of a foreign bank that is federally licensed and affiliated with a global systemically important bank holding company shall certify and submit a written attestation1 at least on an annual basis to the appropriate ,federal banking agency1 the ,consumer ,bureau1 and any relevant ,federal law enforcement agency that they have regularly reviewed the institution's lines of business and conducted due diligence to ensure that-- 7#a7 the institution has established and maintained internal risk controls to identify significant deficiencies and weaknesses in its compliance with all applicable ,federal consumer protection laws2 7#b7 the institution has promptly disclosed all known violations of applicable ,federal consumer protection laws to the ,consumer ,bureau and the appropriate ,federal banking agency2 7#c7 the institution is taking all reasonable steps to correct any identified deficiencies and weaknesses in its compliance with all applicable ,federal consumer protection laws based on a review of all regulatory examination results received in prior years2 and 7#d7 the institution is in substantial compliance with all applicable ,federal consumer protection laws4 7b7 ,guidance ,the ,consumer ,bureau1 in consultation with the relevant ,federal and ,state regulator and law enforcement agencies1 shall issue final guidance on the content1 form1 and method of delivery of the annual certification required under subsection 7a7 within #f months of the date of the enactment of this ,act4 7c7 ,criminal penalties ,any individual who certifies and submits an attestation described under subsection 7a7 that contains a false statement-- 7#a7 if done knowingly1 shall be fined not more than #a1jjj1jjj or imprisoned not more than #aj years1 or both2 or 7#b7 if done intentionally1 shall be fined not more than #e1jjj1jjj or imprisoned not more than #bj years or both4 7d7 ,penalties for failure ,to comply ,any individual who fails to certify and submit a required attestation described under subsection 7a71 shall be fined not more than #a1jjj1jjj or imprisoned not more than #aj years or both4 #cjb4 ,personal liability of executive officers and directors of the board for ,federal consumer protection law violations 7a7 ,civil liability 7#a7 ,in general ,if an executive officer or director of the board of a national bank1 ,federal savings association1 or federally insured ,state depository institution affiliated with a global systemically important bank holding company1 or ,united ,states branch1 agency1 commercial lending company1 or representative office of a foreign bank affiliated with a global systemically important bank holding company1 knowingly violates any ,federal consumer protection law 7or directs any of the agents1 officers1 or directors of the institution to so violate or engage71 such executive officer or director shall be liable in their personal and individual capacity for damages which the institution or any other person shall have sustained in consequence of such violation or engagement4 ,any fines under this subsection shall not be deemed to limit the relevant ,federal regulator or law enforcement entity's authority to impose civil penalties1 fines1 or other appropriate consumer redress on the institution4 7#b7 ,limitation on actions ,except as otherwise provided by law1 a civil action arising under this section may not be commenced after the later of-- 7,a7 #b years after the discovery of the facts constituting the violation2 or 7,b7 #e years after such violation4 7b7 ,criminal liability ,any executive officer or director of the board who knowingly causes a national bank1 ,federal savings association1 or federally insured ,state depository institution affiliated with a global systemically important bank holding company1 or ,united ,states branch1 agency1 or representative office of a foreign bank affiliated with a global systemically important bank holding company to violate any ,federal consumer protection law 7or who directs another agent1 senior officer1 or director of the institution to commit such a violation or engage in such acts that result in the director or officer being personally unjustly enriched and the institution being conducted in an unsafe and unsound manner7 shall be-- 7#a7 fined in an amount not to exceed #ajj percent of the compensation 7including stock options awarded as compensation7 received by such officer or director from the institution-- 7,a7 during the time period in which the violations occurred2 or 7,b7 in the one to three year time period preceding the date on which the violations were discovered2 and 7#b7 imprisoned for not more than #e years4 7c7 ,termination of employment and lifetime ban ,if an executive officer or director of the board of a national bank1 ,federal savings association1 or federally insured ,state depository institution affiliated with a global systemically important bank holding company1 or ,united ,states branch1 agency1 commercial lending company1 or representative office of a foreign bank affiliated with a global systemically important bank holding company commits a violation or engages in an act described under subsection 7a7 or is convicted of a violation or of engaging in an act described under subsection 7b71 the ,comptroller1 the ,corporation1 or the ,board of ,governors1 as applicable1 shall notify within #bd hours the institution that such executive1 director1 or senior officer must be terminated from their position with the institution and be permanently prohibited from engaging in the operation and management of any other federally chartered or federally insured banking organization1 pursuant to section #h7;e7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;e774 ,,iv ,reports #dja4 ,reports to ,congress ,the ,board of ,governors1 the ,comptroller1 the ,consumer ,bureau1 and the ,corporation shall each submit an annual report to the ,congress containing a description of actions taken to carry out this ,act4 #djb4 ,reports by the ,offices of ,minority and ,women ,inclusion ,the ,office of ,minority and ,women ,inclusion of the ,board of ,governors1 the ,comptroller1 the ,consumer ,bureau1 and the ,corporation shall each include1 in the annual report required under section #cdb7;e7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #edeb7;e771 a description of-- 7#a7 how the duties of the ,office have been carried out with respect to the requirements of this ,act2 and 7#b7 with respect to the ,office of the ,corporation1 how the ,office has carried out the consultations required under this ,act4