,,ii  #aahth ,,congress  #ast ,session  
,s4 #bcce  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #ah1     
#bjbc,mr4 ,vance 7for himself1 ,ms4     
,lummis1 and ,mr4 ,marshall7 introduced 
the following bill2 which was read twice
 and referred to the ,committee on      
,banking1 ,housing1 and ,urban ,affairs 
,a ,,bill  ,to establish within the     
,department of the ,treasury the ,office
 of the ,special ,inspector ,general for
 ,financial ,regulatory ,abuses and     
,misconduct1 and for other purposes4    
#a4 ,short title ,this ,act may be cited
 as the ,financial ,regulatory          
,accountability ,act of #bjbc4  #b4     
,special ,inspector ,general for        
,financial ,regulatory ,abuses and      
,misconduct  7a7 ,definitions ,in this  
section3 7#a7 ,appropriate committees of
 ,congress ,the term appropriate        
committees of ,congress means-- 7,a7 the
 ,committee on ,banking1 ,housing1 and  
,urban ,affairs of the ,senate2  7,b7   
the ,subcommittee on ,financial         

,services and ,general ,government of   
the ,committee on ,appropriations of the
 ,senate2  7,c7 the ,committee on       
,financial ,services of the ,house of   
,representatives2 and  7,d7 the         
,subcommittee on ,financial ,services   
and ,general ,government of the         
,committee on ,appropriations of the    
,house of ,representatives4  7#b7       
,covered agencies ,the term covered     
agencies means-- 7,a7 the ,securities   
and ,exchange ,commission2  7,b7 the    
,board of ,governors of the ,federal    
,reserve ,system2  7,c7 the ,office of  
the ,comptroller of the ,currency2  7,d7
 the ,federal ,deposit ,insurance       
,corporation2  7,e7 the ,commodity      
,futures ,trading ,commission2  7,f7 the
 ,federal ,housing ,finance ,agency2    
7,g7 the ,bureau of ,consumer ,financial
 ,protection2 and  7,h7 the ,national   
,credit ,union ,administration4  7b7    
,office of ,inspector ,general ,there is
 hereby established within the          
,department of the ,treasury the ,office

 of the ,special ,inspector ,general for
 ,financial ,regulatory ,abuses and     
,misconduct4  7c7 ,appointment of       
,inspector ,general2 removal2 basic pay 
7#a7 ,in general ,the head of the       
,office of the ,special ,inspector      
,general for ,financial ,regulatory     
,abuses and ,misconduct shall be the    
,special ,inspector ,general for        
,financial ,regulatory ,abuses and      
,misconduct 7referred to in this section
 as the ,special ,inspector ,general71  
who shall be appointed by the           
,president1 by and with the advice and  
consent of the ,senate4  7#b7           
,nomination ,the nomination of the      
,special ,inspector ,general shall be   
made on the basis of integrity and      
demonstrated familiarity with the       
financial sector and industry1 in       
addition to an ability in accounting1   
auditing1 financial analysis1 law1      
management analysis1 securities         
regulation1 prudential banking          
regulation1 derivatives regulation1     

public administration1 or               
investigations4  7#c7 ,removal ,the     
,special ,inspector ,general shall be   
removable from office in accordance with
 the provisions of section #djc7;b7 of  
title #e1 ,united ,states ,code4  7#d7  
,basic pay ,the annual rate of basic pay
 of the ,special ,inspector ,general    
shall be the annual rate of basic pay   
for an ,inspector ,general under section
 #djc7;e7 of title #e1 ,united ,states  
,code4  7d7 ,duties  7#a7 ,in general   
,it shall be the duty of the ,special   
,inspector ,general to1 in accordance   
with section #djd7;b77#a7 of title #e1  
,united ,states ,code-- 7,a7 receive1   
review1 and investigate allegations from
 entities regulated by the covered      
agencies regarding supervisory1         
regulatory1 and examination abuses and  
misconduct at any of the covered        
agencies with respect to the industry   
overseen by the applicable covered      
agency1 including any ideological bias  
demonstrated by the covered agency or   

any employee of the covered agency2 and 
7,b7 make recommendations to the        
applicable covered agency and to the    
appropriate committees of ,congress     
regarding-- 7i7 measures that the       
covered agency should take to remedy any
 abuses or misconduct described in      
subparagraph 7,a72 and  7ii7 any        
employee of the covered agency that the 
,special ,inspector ,general determines1
 after a review or investigation        
described in subparagraph 7,a71 should  
face disciplinary action 7including     
removal7 as a result of abuses or       
misconduct described in that            
subparagraph4  7#b7 ,maintenance of     
systems ,the ,special ,inspector        
,general shall establish1 maintain1 and 
oversee such systems1 procedures1 and   
controls as the ,special ,inspector     
,general considers appropriate to       
discharge the duties of the ,special    
,inspector ,general under paragraph     
7#a74  7#c7 ,additional duties and      
responsibilities ,in addition to the    

duties described in paragraphs 7#a7 and 
7#b71 the ,special ,inspector ,general  
shall also have the duties and          
responsibilities of inspectors general  
under chapter #d of title #e1 ,united   
,states ,code4  7#d7 ,confidentiality of
 information ,the ,special ,inspector   
,general shall maintain the             
confidentiality of the identity of any  
person1 employing entity1 or regulated  
entity submitting information to the    
,special ,inspector ,general for the    
purposes of carrying out the duties of  
the ,special ,inspector ,general under  
this section1 including in any report   
submitted under subsection 7g74  7e7    
,powers and authorities  7#a7 ,in       
general ,in carrying out the duties of  
the ,special ,inspector ,general under  
subsection 7d71 the ,special ,inspector 
,general shall have the authorities     
provided in section #djf of title #e1   
,united ,states ,code4  7#b7 ,treatment 
of ,office ,the ,office of the ,special 
,inspector ,general shall be considered 

to be an office described in section    
#djf7;f77#c7 of title #e1 ,united       
,states ,code1 and shall be exempt from 
an initial determination by the         
,attorney ,general under section        
#djf7;f77#b7 of that title4  7f7        
,personnel1 facilities1 and other       
resources  7#a7 ,appointment of officers
 and employees  7,a7 ,in general ,the   
,special ,inspector ,general may select1
 appoint1 and employ such officers and  
employees as may be necessary for       
carrying out the duties of the ,special 
,inspector ,general4  7,b7 ,status ,the 
positions to which officers and         
employees are appointed under           
subparagraph 7,a7 shall be positions in 
schedule ,c of subpart ,c of part #bac  
of title #e1 ,code of ,federal          
,regulations1 or any successor          
regulations4  7#b7 ,experts and         
consultants ,the ,special ,inspector    
,general may obtain services as         
authorized under section #caji of title 
#e1 ,united ,states ,code1 at daily     

rates not to exceed the equivalent rate 
prescribed for grade ,,gs-#ae of the    
,general ,schedule by section #eccb of  
that title4  7#c7 ,contracts ,the       
,special ,inspector ,general may enter  
into contracts and other arrangements   
for audits1 studies1 analyses1 and other
 services with public agencies and with 
private persons1 and make such payments 
as may be necessary to carry out the    
duties of the ,special ,inspector       
,general4  7#d7 ,requests for           
information  7,a7 ,in general ,upon     
request of the ,special ,inspector      
,general for information or assistance  
from any department1 agency1 or other   
entity of the ,federal ,government1     
including from any covered agency1 the  
head of that department1 agency1 or     
entity shall1 to the extent practicable 
and not in contravention of any existing
 law1 furnish that information or       
assistance to the ,special ,inspector   
,general1 or an authorized designee4    
7,b7 ,refusal to provide requested      

information ,whenever information or    
assistance requested by the ,special    
,inspector ,general is1 in the judgment 
of the ,special ,inspector ,general1    
unreasonably refused or not provided1   
the ,special ,inspector ,general shall  
report the circumstances to the         
appropriate committees of ,congress     
without delay4  7,c7 ,congressional     
access ,the ,special ,inspector ,general
 may provide any record or other piece  
of information obtained under this      
paragraph to the appropriate committees 
of ,congress4  7g7 ,reports  7#a7       
,quarterly reports  7,a7 ,in general    
,not later than #fj days after the date 
on which the ,special ,inspector        
,general is confirmed1 and once every   
calendar quarter thereafter1 the        
,special ,inspector ,general shall      
submit to the appropriate committees of 
,congress a report summarizing the      
activities of the ,special ,inspector   
,general during the #c-month period     
ending on the date on which the ,special

 ,inspector ,general submits the report4
  7,b7 ,contents ,each report submitted 
under subparagraph 7,a7 shall include1  
for the period covered by the report1   
the following3 7i7 ,a general           
description of the allegations received 
and reviewed by the ,special ,inspector 
,general under subsection 7d77#a77;,a74 
7ii7 ,recommendations of the ,special   
,inspector ,general regarding reforms   
that the ,special ,inspector ,general   
believes should be undertaken with      
respect to the authority of the ,special
 ,inspector ,general and matters within 
the authority of the ,special ,inspector
 ,general to review and investigate1    
including the authority described in    
subsection 7d77#a77;,b74  7iii7 ,for a  
covered agency with respect to which an 
allegation submitted under this section 
applies1 the steps that the covered     
agency has taken1 and has yet to take1  
to remedy the issues outlined in the    
allegation4  7iv7 ,data regarding the   
number of allegations received and      

reviewed by the ,special ,inspector     
,general under this section that        
document legitimate acts of abuse or    
misconduct1 as determined by the        
,special ,inspector ,general1 which     
shall-- 7,i7 be disaggregated by the    
number of acts of abuse or misconduct   
committed by each covered agency2 and   
7,,ii7 contain a separate provision     
listing the number of those acts that   
relate to ideological bias1 which shall 
be disaggregated as described in        
subclause 7,i74  7v7 ,commentary by the 
,special ,inspector ,general regarding  
the level of cooperation by each covered
 agency with respect to reviews and     
investigations performed by the ,special
 ,inspector ,general1 including1 with   
respect to each covered agency1 whether 
the covered agency has implemented      
recommendations made by the ,special    
,inspector ,general and whether the     
covered agency has provided information 
or access requested by the ,special     
,inspector ,general4  7#b7 ,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  7h7 ,funding ,there are 
authorized to be appropriated           
#be1jjj1jjj to carry out this section1  
which shall remain available until      
expended4  7i7 ,council of the          
,inspectors ,general on ,integrity and  
,efficiency ,the ,special ,inspector    
,general shall be a member of the       
,council of the ,inspectors ,general on 
,integrity and ,efficiency established  
under section #dbd of title #e1 ,united 
,states ,code4  7j7 ,corrective         
responses to audit problems ,a covered  
agency shall-- 7#a7 take action to      

address deficiencies identified by a    
report or investigation of the ,special 
,inspector ,general2 or  7#b7 with      
respect to a deficiency identified under
 paragraph 7#a71 certify to the         
appropriate committees of ,congress that
 no action is necessary or appropriate4 
7k7 ,rule of construction ,nothing in   
this section may be construed as        
limiting the authority of the ,inspector
 ,general of the ,federal ,deposit      
,insurance ,corporation1 the ,inspector 
,general of the ,federal ,housing       
,finance ,agency1 or the ,inspector     
,general of the ,national ,credit ,union
 ,administration4  #c4 ,limitation on   
regulatory authority  7a7 ,definitions  
,in this section3 7#a7 ,covered action  
,the term covered action means-- 7,a7   
the initiation by a covered agency of an
 enforcement action1 including the      
issuance of a cease and desist order2 or
  7,b7 the issuance by a covered agency 
of a matter requiring attention1 a      
matter requiring immediate attention1 or

 a matter requiring board attention with
 respect to a supervisory activity      
conducted by the covered agency4  7#b7  
,covered agencies ,the term covered     
agencies has the meaning given the term 
in section #b7;a74  7b7 ,prohibition    
,notwithstanding any other provision of 
law or regulation1 no covered agency may
 take any covered action against an     
entity supervised by the covered agency1
 or require such an entity to take any  
action1 based on considerations of      
reputational risk4