,,ii #aafth ,,congress #ast ,session ,s4 #ajje ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #c1 #bjai,ms4 ,warren introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to stop financial institution crime1 require certain officers of companies to certify that they have conducted due diligence relating to criminal conduct or civil fraud1 create accountability in deferred prosecution agreements1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,ending ,too ,big to ,jail ,act4 #b4 ,stop financial institution crime 7a7 ,findings ,congress finds the following3 7#a7 ,history has shown that the ,office of the ,special ,inspector ,general for the ,troubled ,asset ,relief ,program 7referred to in this subsection as ,,sigtarp7 has-- 7,a7 served as an effective model for-- 7i7 recovering taxpayer dollars2 and 7ii7 bringing accountability by rooting out waste1 fraud1 and abuse2 and 7,b7 proven to be a leader in targeting crimes committed by insiders at financial institutions in order to protect the interests of the people of the ,united ,states4 7#b7 ,the financial crisis in #bjjh laid bare one of the biggest vulnerabilities of the ,united ,states1 which is fraud committed by financial institutions4 ,fraud committed by financial institutions continues as of the date of enactment of this ,act1 which demonstrates that such fraud does not disappear1 but evolves and grows over time1 which weakens financial institutions from the inside4 7#c7 ,there is a need for a permanent law enforcement agency dedicated solely to investigating fraud committed by financial institutions and insiders at financial institutions because that type of fraud-- 7,a7 wreaks havoc on the economy of the ,united ,states2 7,b7 puts the finances of the ,united ,states at risk2 and 7,c7 ruins the lives of individuals in the ,united ,states4 7#d7 ,investigations led by ,,sigtarp have resulted in criminal charges against more than #djj defendants1 including criminal charges against nearly #ajj bankers4 ,these criminal charges were related to more than #bj failed banks1 with a combined estimated loss to the deposit insurance fund of #g1jjj1jjj1jjj4 7#e7 ,,sigtarp's investigations led to the ,department of ,justice enforcement actions against #aj financial institutions1 with #h having total assets exceeding #ajj1jjj1jjj1jjj4 7#f7 ,,sigtarp has developed unique methods to search for crime by using industry1 financial1 and human intelligence1 including fraudulent conduct that contributed to the failure of financial institutions1 or that was either in1 or impacted1 financial institutions4 7#g7 ,rather than establishing an entirely new entity1 it makes the most sense for taxpayers to rely on ,,sigtarp's understanding of complex bank records and bank operations and use of intelligence to-- 7,a7 identify anomalies2 and 7,b7 investigate1 and root out fraud at1 financial institutions4 7#h7 ,the vast expertise of ,,sigtarp1 and the proven results of ,,sigtarp with respect to the investigation of crime at financial institutions1 should be used on a permanent basis to bring accountability and to deter fraud that jeopardizes financial institutions in the ,united ,states1 especially considering the extent to which the people of the ,united ,states rely on those institutions4 7b7 ,redesignation of the office of the special inspector general for the troubled asset relief program and the special inspector general for the troubled asset relief program 7#a7 ,in general ,the ,emergency ,economic ,stabilization ,act of #bjjh 7#ab ,u4,s4,c4 #ebaa et seq47 is amended-- 7,a7 by striking ,special ,inspector ,general for the ,troubled ,asset ,relief ,program each place the term appears and inserting ,special ,inspector ,general for ,financial ,institution ,crime1 except where the term is used to refer to the ,special ,inspector ,general for the ,troubled ,asset ,relief ,program ,act of #bjji2 7,b7 in section #aba 7#ab ,u4,s4,c4 #ebca71 in the section heading1 by striking ,special inspector general for the troubled asset relief program and inserting ,special inspector general for financial institution crime2 and 7,c7 in the table of contents1 by striking the item relating to section #aba and inserting the following3 ,sec4 #aba4 ,special ,inspector ,general for ,financial ,institution ,crime4 4 7#b7 ,technical and conforming amendments 7,a7 ,additional appropriations provision ,the ,helping ,families ,save ,their ,homes ,act of #bjji 7,public ,law #aaa-bb2 #abc ,stat4 #afcb7 is amended-- 7i7 in section #djb 7#ab ,u4,s4,c4 #ebca;a7-- 7,i7 in the section heading1 by striking ,special inspector general for the troubled asset relief program and inserting ,special inspector general for financial institution crime2 and 7,,ii7 in subsection 7b77#a77;,a71 by striking ,special ,inspector ,general of the ,trouble ,asset ,relief ,program and inserting ,special ,inspector ,general for ,financial ,institution ,crime2 and 7ii7 in the table of contents1 by striking the item relating to section #djb and inserting the following3 ,sec4 #djb4 ,special ,inspector ,general for ,financial ,institution ,crime4 4 7,b7 ,exemption from budget reduction ,section #bee7;i7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe 7#b ,u4,s4,c4 #ije7;i77 is amended by striking ,special ,inspector ,general for the ,troubled ,asset ,relief ,program and inserting ,special ,inspector ,general for ,financial ,institution ,crime4 7#c7 ,references 7,a7 ,office references ,any reference to the ,office of the ,special ,inspector ,general for the ,troubled ,asset ,relief ,program in any law1 rule1 regulation1 certificate1 directive1 instruction1 or other official paper in force on the date of enactment of this ,act shall be considered to refer and apply to the ,office of the ,special ,inspector ,general for ,financial ,institution ,crime4 7,b7 ,special inspector general references ,any reference to the ,special ,inspector ,general for the ,troubled ,asset ,relief ,program in any law1 rule1 regulation1 certificate1 directive1 instruction1 or other official paper in force on the date of enactment of this ,act shall be considered to refer and apply to the ,special ,inspector ,general for ,financial ,institution ,crime4 7c7 ,duties of ,special ,inspector ,general for ,financial ,institution ,crime 7#a7 ,in general ,section #aba of the ,emergency ,economic ,stabilization ,act of #bjjh 7#ab ,u4,s4,c4 #ebca7 is amended-- 7,a7 in subsection 7b7-- 7i7 by striking paragraph 7#c72 and 7ii7 by redesignating paragraphs 7#d71 7#e71 and 7#f7 as paragraphs 7#c71 7#d71 and 7#e71 respectively2 7,b7 by striking subsection 7c7 and inserting the following3 7c7 ,duties 7#a7 ,in general ,it shall be the duty of the ,special ,inspector ,general to conduct1 supervise and coordinate-- 7,a7 investigations of fraudulent conduct in1 or impacting-- 7i7 an entity described in any of subparagraphs 7,a7 through 7,f7 of section #ecab7;a77#b7 of title #ca1 ,united ,states ,code2 7ii7 a bank holding company1 as defined in section #b of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda72 or 7iii7 a savings and loan holding company1 as defined in section #aj7;a7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7a772 and 7,b7 audits and investigations of-- 7i7 the purchase1 management1 and sale of assets by the ,secretary under any program established by the ,secretary under section #aja2 and 7ii7 the management by the ,secretary of any program established under section #ajb1 including by collecting and summarizing the information described in paragraph 7#b74 7#b7 ,information required ,the information described in this paragraph is the following3 7,a7 ,a description of the categories of troubled assets purchased or otherwise procured by the ,secretary4 7,b7 ,a listing of the troubled assets purchased in each such category described in subparagraph 7,a74 7,c7 ,an explanation of the reasons the ,secretary deemed it necessary to purchase each such troubled asset4 7,d7 ,a listing of each financial institution from which those troubled assets were purchased4 7,e7 ,a listing of and detailed biographical information on each person or entity hired to manage such troubled assets4 7,f7 ,a current estimate of the total amount of troubled assets purchased pursuant to any program established under section #aja1 the amount of troubled assets on the books of the ,treasury1 the amount of troubled assets sold1 and the profit and loss incurred on each sale or disposition of each such troubled asset4 7,g7 ,a listing of the insurance contracts issued under section #ajb4 7#c7 ,additional duties ,the ,special ,inspector ,general shall-- 7,a7 establish1 maintain1 and oversee such systems1 procedures1 and controls as the ,special ,inspector ,general considers appropriate to discharge the duty under paragraph 7#a72 and 7,b7 have the duties and responsibilities of inspectors general under the ,inspector ,general ,act of #aigh 7#e ,u4,s4,c4 ,app474 7#d7 ,additional authority 7,a7 ,in general ,except as provided under subparagraph 7,b71 and in addition to the duties specified in paragraphs 7#a7 and 7#b71 the ,special ,inspector ,general shall have the authority to conduct1 supervise1 and coordinate an audit or investigation of any action taken under this title as the ,special ,inspector ,general determines appropriate4 7,b7 ,exception ,subparagraph 7,a7 shall not apply with respect to any action taken under section #aae1 #aaf1 #aag1 or #abe4 2 7,c7 in subsection 7e7-- 7i7 in paragraph 7#a71 by striking subparagraph 7,b7 and inserting the following3 7,b7 7i7 ,subject to clause 7ii71 notwithstanding the fact that the ,office of the ,special ,inspector ,general for ,financial ,institutions ,crime ,enforcement is not a temporary organization1 as defined in subsection 7a7 of section #cafa of title #e1 ,united ,states ,code1 the ,special ,inspector ,general may exercise the authorities of subsections 7b7 through 7i7 of that section4 7ii7 ,if the ,special ,inspector ,general exercises the authorities described in clause 7i7-- 7,i7 section #cafa7;b77#b7 of title #e1 ,united ,states ,code 7relating to periods of appointments71 shall not apply2 and 7,,ii7 with respect to an individual who is hired after the date of enactment of the ,ending ,too ,big to ,jail ,act1 section #cafa7;b77#c7 of title #e1 ,united ,states ,code1 shall not apply unless that individual is a reemployed annuitant described in paragraph 7#e74 2 and 7ii7 in paragraph 7#e7-- 7,i7 in subparagraph 7,a7-- 7aa7 by striking 7,a72 and 7bb7 in the first sentence1 by striking ,except as provided under subparagraph 7,b71 if and inserting ,if2 and 7,,ii7 by striking subparagraph 7,b72 7,d7 by striking subsection 7g7 and inserting the following3 7g7 ,cooperation and coordination with other entities 7#a7 ,definitions ,in this subsection-- 7,a7 the term bank holding company has the meaning given the term in section #b of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda72 7,b7 the term financial institutions means an entity described in any of subparagraphs 7,a7 through 7,f7 of section #ecab7;a77#b7 of title #ca1 ,united ,states ,code2 and 7,c7 the term savings and loan holding company has the meaning given the term in section #aj7;a7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7a774 7#b7 ,required coordination ,in carrying out the duties1 responsibilities1 and authorities of the ,special ,inspector ,general under this section1 the ,special ,inspector ,general shall work with the entities described in paragraph 7#c71 with a view toward avoiding duplication of effort and ensuring comprehensive oversight of-- 7,a7 financial institutions1 bank holding companies1 and savings and loan holding companies2 7,b7 any fraudulent conduct in1 or impacting1 an entity described in subparagraph 7,a72 and 7,c7 the ,troubled ,asset ,relief ,program4 7#c7 ,entities ,the entities described in this paragraph are the following3 7,a7 ,the ,inspector ,general of the ,department of the ,treasury4 7,b7 ,the ,inspector ,general of the ,federal ,deposit ,insurance ,corporation4 7,c7 ,the ,inspector ,general of the ,securities and ,exchange ,commission4 7,d7 ,the ,inspector ,general of the ,board of ,governors of the ,federal ,reserve ,system and the ,bureau of ,consumer ,financial ,protection4 7,e7 ,the ,inspector ,general of the ,federal ,housing ,finance ,agency4 7,f7 ,the ,inspector ,general of any other entity as appropriate4 2 7,e7 in subsection 7h71 by striking until the date of termination of the ,office of the ,special ,inspector ,general for the ,troubled ,asset ,relief ,program2 7,f7 by striking subsection 7i7 and inserting the following3 7i7 ,reports 7#a7 ,in general 7,a7 ,requirement ,subject to subparagraph 7,b71 not later than ,april #cj and ,october #ca of each year1 the ,special ,inspector ,general shall submit to the appropriate committees of ,congress a semiannual report with respect to the #f-month period that ends on ,march #ca and ,september #cj of that year1 respectively4 7,b7 ,initial report ,the first report submitted by the ,special ,inspector ,general under subparagraph 7,a7 after the date of enactment of the ,ending ,too ,big to ,jail ,act shall be with respect to the first full #f-month period that ends on ,march #ca or ,september #cj after that date of enactment1 whichever is earlier4 7#b7 ,contents ,each report submitted under paragraph 7#a7 shall include a summary of1 for the period covered by the report1 the relevant actions taken by the ,special ,inspector ,general4 7#c7 ,rule of construction ,nothing in this subsection may be construed to authorize the public disclosure of information that is-- 7,a7 specifically prohibited from disclosure by any other provision of law2 7,b7 specifically required by ,executive order to be protected from disclosure in the interest of national defense or national security or in the conduct of foreign affairs2 or 7,c7 a part of an ongoing criminal investigation4 7#d7 ,public availability ,except as provided under paragraph 7#c71 all reports submitted under this subsection shall be available to the public4 2 7,g7 in subsection 7j71 by adding at the end the following3 7#c7 the amounts made available under section #djb7;c7 of the ,public-,private ,investment ,program ,improvement and ,oversight ,act of #bjji 7#ab ,u4,s4,c4 #ebca;a7c77 shall remain available until expended for any purpose in furtherance of the mission of the ,office of the ,special ,inspector ,general for ,financial ,institution ,crime2 and 7#d7 the ,office of the ,special ,inspector ,general for ,financial ,institution ,crime shall receive annual appropriations from ,congress separate and apart from appropriations made to the ,u4,s4 ,department of the ,treasury4 2 and 7,h7 by striking subsection 7k74 7#b7 ,continuing service ,if the individual serving as the ,special ,inspector ,general for the ,troubled ,asset ,relief ,program on the day before the date of enactment of this ,act was appointed to that position by the ,president1 by and with the advice and consent of the ,senate1 that individual shall continue to serve as the ,special ,inspector ,general for ,financial ,institution ,crime4 7d7 ,authority of ,special ,inspector ,general ,section #aba of the ,emergency ,economic ,stabilization ,act of #bjjh 7#ab ,u4,s4,c4 #ebca7 is amended by adding at the end the following3 7l7 ,disclosure 7#a7 ,in general ,without approval of the ,special ,inspector ,general1 no person1 financial institution 7as defined in section #ecab7;a7 of title #ca1 ,united ,states ,code71 bank holding company 7as defined in section #b of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda771 savings and loan holding company 7as defined in section #aj7;a7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7a7771 or any other entity1 including an entity that lawfully possesses non-public information and records of the ,special ,inspector ,general1 may disclose information and records with respect to the duties of the ,special ,inspector ,general under this section unless-- 7,a7 the ,special ,inspector ,general has approved a request for that information or those records1 as applicable1 under procedures established by the ,special ,inspector ,general2 or 7,b7 7i7 an appropriate court of the ,united ,states has ordered that information or those records1 as applicable1 be released2 and 7ii7 the ,special ,inspector ,general had the opportunity to oppose the release of the material described in clause 7i7 in a proceeding before the court described in that clause4 7#b7 ,application of privilege ,no ,federal or ,state financial institutions regulatory agency1 including the ,office of the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal reserve banks1 the ,federal ,deposit ,insurance ,corporation1 the ,bureau of ,consumer ,financial ,protection1 the ,federal ,housing ,finance ,agency1 and any ,state banking agency1 may1 on the basis of any common law privilege1 including the bank examiner privilege1 deny the ,special ,inspector ,general access to information or records after the ,special ,inspector ,general has requested that information or those records1 as applicable4 4 #c4 ,certification 7a7 ,definitions ,in this section-- 7#a7 the term appropriate entity means-- 7,a7 the ,special ,inspector ,general for the ,troubled ,asset ,relief ,program or any successor entity2 or 7,b7 if the ,program or entity described in subparagraph 7,a7 does not exist1 the ,attorney ,general2 7#b7 the terms bank holding company and savings and loan holding company have the meanings given those terms in section #aj7;a7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7a772 and 7#c7 the term financial institution has the meaning given the term in section #ecab7;a7 of title #ca1 ,united ,states ,code4 7b7 ,certification ,the chief executive officer1 chief financial officer1 chief operating officer1 and chief compliance officer of a financial institution1 a bank holding company1 or a savings and loan holding company with assets greater than #aj1jjj1jjj1jjj1 shall submit to the appropriate entity1 subject to section #ajja of title #ah1 ,united ,states ,code1 an annual certification that the officers have conducted due diligence and found that there is no criminal conduct or civil fraud in the financial institution1 bank holding company1 or savings and loan holding company1 as applicable1 that has not been disclosed in full to the ,department of ,justice or the applicable regulator4 ,if a disclosure to the ,department of ,justice or the applicable regulator has been made1 the certification shall explicitly describe all of the details of the conduct that has been disclosed1 including but not limited to1 the date of disclosure1 and the person to whom the disclosure was made4 7c7 ,regulations ,not later than #a year after the date of enactment of this ,act1 the appropriate entity shall promulgate regulations on the process under which certifications made under subsection 7b7 shall be submitted4 7d7 ,website ,the appropriate entity shall1 on the website of the appropriate entity-- 7#a7 within #ij calendar days following the promulgation of regulations under subsection 7c71 and on an annual basis thereafter1 publish a list of all financial institutions1 bank holding companies1 and savings and loan holding companies subject to the upcoming year's annual certification requirement under subsection 7b72 and 7#b7 maintain on the homepage a direct link for the public to report alleged misconduct pertaining to any entity listed under paragraph 7#a74 7e7 ,effective date ,subsection 7b7 shall take effect on the effective date of the regulations promulgated under subsection 7c74 7f7 ,enforcement 7#a7 ,injunctions ,when the ,secretary of the ,treasury believes a person has violated1 is violating1 or will violate this section or a regulation prescribed under this section1 the ,secretary may bring a civil action in the appropriate district court of the ,united ,states or appropriate ,united ,states court of a territory or possession of the ,united ,states to enjoin the violation or to enforce compliance with the section or regulation4 ,an injunction or temporary restraining order shall be issued without bond4 7#b7 ,civil penalties 7,a7 ,in general ,a chief executive officer1 chief financial officer1 chief operating officer1 and chief compliance officer of a financial institution1 a bank holding company1 or a savings and loan holding company1 willfully violating this section or a regulation prescribed under this section is liable to the ,united ,states ,government for a civil penalty of not more than #be1jjj4 7,b7 ,negligence 7i7 ,in general ,the ,secretary of the ,treasury may impose a civil money penalty of not more than #ejj on any chief executive officer1 chief financial officer1 chief operating officer1 and chief compliance officer of a financial institution1 a bank holding company1 or a savings and loan holding company who negligently violates any provision of this section or any regulation prescribed under this section4 7ii7 ,pattern of negligent activity ,if any chief executive officer1 chief financial officer1 chief operating officer1 and chief compliance officer of a financial institution1 a bank holding company1 or a savings and loan holding company engages in a pattern of negligent violations of any provision of this section or any regulation prescribed under this section1 the ,secretary of the ,treasury may1 in addition to any penalty imposed under clause 7i7 with respect to any such violation1 impose a civil money penalty of not more than #ej1jjj on the chief executive officer1 chief financial officer1 chief operating officer1 and chief compliance officer of a financial institution1 a bank holding company1 or a savings and loan holding company4 7#c7 ,criminal penalties 7,a7 ,in general ,a chief executive officer1 chief financial officer1 chief operating officer1 and chief compliance officer of a financial institution1 a bank holding company1 or a savings and loan holding company willfully violating this section or a regulation prescribed under this section shall be fined not more than #bej1jjj1 or imprisoned for not more than #e years1 or both4 7,b7 ,other laws ,a chief executive officer1 chief financial officer1 chief operating officer1 and chief compliance officer of a financial institution1 a bank holding company1 or a savings and loan holding company willfully violating this section or a regulation prescribed under this section while violating another law of the ,united ,states or as part of a pattern of any illegal activity involving more than #ajj1jjj in a #ab-month period1 shall be fined not more than #ejj1jjj1 imprisoned for not more than #aj years1 or both4 #d4 ,accountability in deferred prosecution agreements ,section #cafa7;h77#b7 of title #ah1 ,united ,states ,code1 is amended-- 7#a7 by striking ,any and inserting 7,a7 ,any2 and 7#b7 by adding at the end the following3 7,b7 7i7 ,if the defendant described in subparagraph 7,a7 is a person other than an individual1 the court may not approve an agreement described in that subparagraph unless the court determines that the agreement is in the public interest1 including extending the term of such an agreement4 7ii7 ,in making the determination under clause 7i71 the court shall consider-- 7,i7 whether any reforms required under the agreement are likely to prevent similar unlawful behavior in the future2 7,,ii7 whether any penalties under the agreement are sufficient to compensate victims and deter future unlawful actions2 7,,iii7 if the defendant has previously been convicted or entered into a deferred prosecution agreement with the ,government in connection with related activity1 the court may not1 without good cause1 approve such an agreement4 7iii7 ,any period of delay during which the court is making the determination under this subparagraph shall be included in the period of delay described in subparagraph 7,a74 7,c7 7i7 ,the court may1 on its own or on motion of any party or of an independent monitor1 if one is appointed pursuant to an agreement described in subparagraph 7,a71 review the implementation or termination of the agreement1 and take any appropriate action1 to assure that the implementation or termination is in the public interest4 7ii7 ,the court may order a party or an independent monitor to file evidence with the court to aid the court in making the determination under clause 7i74 7,d7 7i7 ,except as provided in clause 7ii71 the ,attorney ,general shall make available on the public website of the ,department of ,justice-- 7,i7 the text of any agreement described in subparagraph 7,a7 between an attorney for the ,government and a defendant that is a person other than an individual2 and 7,,ii7 all the terms and conditions of any agreement or understanding between an independent monitor appointed pursuant to the agreement described in subclause 7,i7 and the defendant4 7ii7 ,the information described in clause 7i7 and subparagraph 7,c77ii7 shall not be made publicly available if1 upon petition by any interested party1 the court finds that there is good cause to not make such information public1 including that the information is proprietary1 confidential1 a trade secret1 or meets the requirements of rule #di4a of the ,federal ,rules of ,criminal ,procedure4 4