§5215 — Title 12 Banks and Banking | U.S. Code

Summary

The Secretary must send regular reports to the right Congressional committees. The first report is due within 60 days after the Secretary first uses the power in section 5211(a) or section 5212, whichever happens first. After that, the Secretary must report every 30 days. Each report must say what was done (including the related steps required by other sections), show actual and expected use of the administrative funds under section 5228, and give a clear financial statement. That statement must cover agreements and insurance contracts, the transactions and the types of parties involved, the assets bought, projected costs and liabilities, operating expenses (including pay for financial agents), how prices were set for each deal, and what special entities or vehicles were used. The Secretary also must send a written report within 7 days after commitments to buy troubled assets reach $50,000,000,000 and again within 7 days of each additional $50,000,000,000. Those reports must describe the transactions, the pricing method and why prices were fair, the effect on the financial system with supporting data if possible, remaining problems and benchmarks, and any likely extra actions needed. By April 30, 2009, the Secretary must submit a review of the regulatory system with recommendations (including whether some market participants should be regulated and how to improve clearing and settlement of over-the-counter swaps) and the reasons for those recommendations. Every report must also go to the Congressional Oversight Panel. The reporting duty ends on the later of the date the last troubled asset is no longer owned or controlled by the federal government or the date the last insurance contract under section 5212 expires.

Title 12, §5215

Banks and Banking — Source: USLM XML via OLRC

(a)Before the expiration of the 60-day period beginning on the date of the first exercise of the authority granted in section 5211(a) of this title, or of the first exercise of the authority granted in section 5212 of this title, whichever occurs first, and every 30-day period thereafter, the Secretary shall report to the appropriate committees of Congress, with respect to each such period—

(1)an overview of actions taken by the Secretary, including the considerations required by section 5213 of this title and the efforts under section 5219 of this title;

(2)the actual obligation and expenditure of the funds provided for administrative expenses by section 5228 of this title during such period and the expected expenditure of such funds in the subsequent period; and

(3)a detailed financial statement with respect to the exercise of authority under this chapter, including—

(A)all agreements made or renewed;

(B)all insurance contracts entered into pursuant to section 5212 of this title;

(C)all transactions occurring during such period, including the types of parties involved;

(D)the nature of the assets purchased;

(E)all projected costs and liabilities;

(F)operating expenses, including compensation for financial agents;

(G)the valuation or pricing method used for each transaction; and

(H)a description of the vehicles established to exercise such authority.

(b)(1)The Secretary shall provide to the appropriate committees of Congress, at the times specified in paragraph (2), a written report, including—

(A)a description of all of the transactions made during the reporting period;

(B)a description of the pricing mechanism for the transactions;

(C)a justification of the price paid for and other financial terms associated with the transactions;

(D)a description of the impact of the exercise of such authority on the financial system, supported, to the extent possible, by specific data;

(E)a description of challenges that remain in the financial system, including any benchmarks yet to be achieved; and

(F)an estimate of additional actions under the authority provided under this chapter that may be necessary to address such challenges.

(2)The report required by this subsection shall be submitted not later than 7 days after the date on which commitments to purchase troubled assets under the authorities provided in this chapter first reach an aggregate of $50,000,000,000 and not later than 7 days after each $50,000,000,000 interval of such commitments is reached thereafter.

(c)The Secretary shall review the current state of the financial markets and the regulatory system and submit a written report to the appropriate committees of Congress not later than April 30, 2009, analyzing the current state of the regulatory system and its effectiveness at overseeing the participants in the financial markets, including the over-the-counter swaps market and government-sponsored enterprises, and providing recommendations for improvement, including—

(1)recommendations regarding—

(A)whether any participants in the financial markets that are currently outside the regulatory system should become subject to the regulatory system; and

(B)enhancement of the clearing and settlement of over-the-counter swaps; and

(2)the rationale underlying such recommendations.

(d)Any report required under this section shall also be submitted to the Congressional Oversight Panel established under section 5233 of this title.

(e)The reporting requirements under this section shall terminate on the later of—

(1)the date that the last troubled asset acquired by the Secretary under section 5211 of this title has been sold or transferred out of the ownership or control of the Federal Government; or

(2)the date of expiration of the last insurance contract issued under section 5212 of this title.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsecs. (a)(3) and (b)(1)(F), (2), was in the original “this Act” and was translated as reading “this division”, meaning div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765, known as the Emergency Economic Stabilization Act of 2008, to reflect the probable intent of Congress. For complete classification of division A to the Code, see

Short Title

note set out under section 5201 of this title and Tables.

§5215 Reports