§5611 Liquidity Event Determination

Summary

The Secretary can ask the Corporation and the Board of Governors to decide if a "liquidity event" is happening that needs use of the guarantee program under section 5612. Their decision must be written and explain three things: that a liquidity event exists, that not acting would seriously hurt U.S. financial stability or the economy, and that actions under section 5612 are needed to avoid or reduce those harms. If both the Corporation and the Board each vote with at least two‑thirds of their members then serving, and the Secretary gives written consent, the Corporation will act under section 5612(a) and the Secretary (after talking with the President) will act under section 5612(c). These steps can go forward even if other federal or state laws would say otherwise. The Secretary must keep the written determinations and give them to the Comptroller General (GAO). The GAO will review and report to Congress on why the decision was made and the likely effects of the actions. The Secretary must also notify the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services either when a submission under section 5612(c) is sent to Congress or within 30 days of the determination, whichever comes first, and explain the reasons for the decision.