§5391 Inspector General Reviews

Summary

Requires three inspectors general to check and report on how a big failed financial firm is handled. The FDIC Inspector General must audit and investigate the Corporation acting as receiver. That review must describe what the Corporation did, list major sales or deals, check whether the Corporation’s rules and liquidation plan were adequate, look at how the private sector was used and any conflict-of-interest checks, and judge overall performance including costs, speed, and effects on the financial system. The FDIC Inspector General must do this within 6 months after the Corporation becomes receiver and every 6 months after that. The findings must be put into the inspector general’s twice‑yearly reports and may be presented to Congress if asked. The FDIC Inspector General’s costs are paid as receivership expenses, and if more money is needed the Corporation must cover it. Those duties end 1 year after the receivership ends. The Treasury Inspector General must do a similar twice‑yearly review of the Secretary’s actions, including what the Secretary approved and the terms of any purchases from the Corporation. The Treasury Inspector General reports and may testify to Congress on the same 6‑month schedule, and its duties end 1 year after the purchased obligations are fully redeemed. The Inspector General of the firm’s primary regulator must write a report within 1 year evaluating supervision, noting any acts or failures that helped cause the firm’s trouble, saying what could have been done to prevent it, and recommending fixes. The regulator must tell Congress, and must report back within 90 days about what it did in response.