Title 12, Banks and BankingRelease 119-110

§5227 Study and Report on Margin Authority

Title 12 › CHAPTER 52 — EMERGENCY ECONOMIC STABILIZATION › SUBCHAPTER I — TROUBLED ASSETS RELIEF PROGRAM › § 5227

Last updated Sep 22, 2026|Official source

Summary

The Comptroller General must study how leverage and sudden deleveraging by financial institutions helped cause the financial crisis. The study must look at the roles of federal regulators (the Board, the Securities and Exchange Commission, the Secretary, and other Federal banking agencies), analyze the Board’s power to set margin requirements and any use of that power, and recommend actions for the Board and Congress. The report must be finished and sent by June 1, 2009, to the Committee on Banking, Housing, and Urban Affairs of the Senate, the Committee on Financial Services of the House of Representatives, and the Congressional Oversight Panel under section 5233.

Full Legal Text

Title 12, §5227

Banks and Banking, Source: USLM XML via OLRC

(a)Study

The Comptroller General shall undertake a study to determine the extent to which leverage and sudden deleveraging of financial institutions was a factor behind the current financial crisis.

(b)Content

The study required by this section shall include—

(1)an analysis of the roles and responsibilities of the Board, the Securities and Exchange Commission, the Secretary, and other Federal banking agencies with respect to monitoring leverage and acting to curtail excessive leveraging;

(2)an analysis of the authority of the Board to regulate leverage, including by setting margin requirements, and what process the Board used to decide whether or not to use its authority;

(3)an analysis of any usage of the margin authority by the Board; and

(4)recommendations for the Board and appropriate committees of Congress with respect to the existing authority of the Board.

(c)Report

Not later than June 1, 2009, the Comptroller General shall complete and submit a report on the study required by this section to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.

(d)Sharing of information

Any reports required under this section shall also be submitted to the Congressional Oversight Panel established under section 5233 of this title.

Reference

Citations & Metadata

Citation

12 U.S.C. § 5227

Title 12, Banks and Banking

Last Updated

Sep 22, 2026

Release point: 119-110