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The Text of the Dodd-Frank Act
International Association of
Risk and Compliance Professionals (IARCP)
Dodd Frank Act Section 1109
SEC. 1109. GAO AUDIT OF THE FEDERAL RESERVE
FACILITIES; PUBLICATION OF BOARD ACTIONS.
(a) GAO AUDIT.—
(1) IN GENERAL.—Notwithstanding section 714(b) of title
31, United States Code, or any other provision of law, the
Comptroller General of the United States (in this subsection
referred to as the ‘‘Comptroller General’’) shall conduct a
onetime audit of all loans and other financial assistance provided
during the period beginning on December 1, 2007 and ending on the
date of enactment of this Act by the Board of Governors or a
Federal reserve bank under the Asset-Backed Commercial Paper Money
Market Mutual Fund Liquidity Facility, the Term Asset-Backed
Securities Loan Facility, the Primary Dealer Credit Facility, the
Commercial Paper Funding Facility, the Term Securities Lending
Facility, the Term Auction Facility, Maiden Lane, Maiden Lane II,
Maiden Lane III, the agency Mortgage-Backed Securities program,
foreign currency liquidity swap lines, and any other program
created as a result of section 13(3) of the Federal Reserve Act
(as so designated by this title).
(2)
ASSESSMENTS.—In conducting the audit under paragraph (1),
the Comptroller General shall assess—
(A) the operational
integrity, accounting, financial reporting, and internal controls
of the credit facility;
(B) the effectiveness of the
security and collateral policies established for the facility in
mitigating risk to the relevant Federal reserve bank and
taxpayers;
(C) whether the credit facility inappropriately
favors one or more specific participants over other institutions
eligible to utilize the facility;
(D) the policies
governing the use, selection, or payment of third-party
contractors by or for any credit facility; and
(E) whether
there were conflicts of interest with respect to the manner in
which such facility was established or operated.
(3)
TIMING.—The audit required by this
subsection shall be commenced not later than 30 days after the
date of enactment of this Act, and shall be completed not later
than 12 months after that date of enactment.
(4)
REPORT REQUIRED.—The Comptroller
General shall submit a report on the audit conducted under
paragraph (1) to the Congress not later than 12 months after the
date of enactment of this Act, and such report shall be made
available to—
(A) the Speaker of the House of
Representatives;
(B) the majority and minority leaders of
the House of Representatives;
(C) the majority and minority
leaders of the Senate;
(D) the Chairman and Ranking Member
of the Committee on Banking, Housing, and Urban Affairs of the
Senate and of the Committee on Financial Services of the House of
Representatives; and
(E) any member of Congress who
requests it.
(b) AUDIT OF FEDERAL
RESERVE BANK GOVERNANCE.—
(1) AUDIT.—
(A) IN
GENERAL.—Not later than 1 year after the date of enactment
of this Act, the Comptroller General shall complete an audit of
the governance of the Federal reserve bank system.
(B)
REQUIRED EXAMINATIONS.—The audit
required under subparagraph (A) shall—
(i) examine the
extent to which the current system of appointing Federal reserve
bank directors effectively represents ‘‘the public, without
discrimination on the basis of race, creed, color, sex or national
origin, and with due but not exclusive consideration to the
interests of agriculture, commerce, industry, services, labor, and
consumers’’ in the selection of bank directors, as such
requirement is set forth under section 4 of the Federal Reserve
Act;
(ii) examine whether there are actual or potential
conflicts of interest created when the directors of Federal
reserve banks, which execute the supervisory functions of the
Board of Governors of the Federal Reserve System, are elected by
member banks;
(iii) examine the establishment and
operations of each facility described in subsection (a)(1) and
each Federal reserve bank involved in the establishment and
operations thereof; and
(iv) identify changes to selection
procedures for Federal reserve bank directors, or to other aspects
of Federal reserve bank governance, that would—
(I) improve
how the public is represented;
(II) eliminate actual or
potential conflicts of interest in bank supervision;
(III)
increase the availability of information useful for the formation
and execution of monetary policy; or
(IV) in other ways
increase the effectiveness or efficiency of reserve banks.
(2) REPORT REQUIRED.—A report on the
audit conducted under paragraph (1) shall be submitted by the
Comptroller General to the Congress before the end of the 90-day
period beginning on the date on which such audit is completed, and
such report shall be made available to—
(A) the Speaker of
the House of Representatives;
(B) the majority and minority
leaders of the House of Representatives;
(C) the majority
and minority leaders of the Senate;
(D) the Chairman and
Ranking Member of the Committee on Banking, Housing, and Urban
Affairs of the Senate and of the Committee on Financial Services
of the House of Representatives; and
(E) any member of
Congress who requests it.
(c)
PUBLICATION OF BOARD ACTIONS.—Notwithstanding any other
provision of law, the Board of Governors shall publish on its
website, not later than December 1, 2010, with respect to all
loans and other financial assistance provided during the period
beginning on December 1, 2007 and ending on the date of enactment
of this Act under the Asset-Backed Commercial Paper Money Market
Mutual Fund Liquidity Facility, the Term Asset-Backed Securities
Loan Facility, the Primary Dealer Credit Facility, the Commercial
Paper Funding Facility, the Term Securities Lending Facility, the
Term Auction Facility, Maiden Lane, Maiden Lane II, Maiden Lane
III, the agency Mortgage-Backed Securities program, foreign
currency liquidity swap lines, and any other program created as a
result of section 13(3) of the Federal Reserve Act (as so
designated by this title)—
(1) the identity of each
business, individual, entity, or foreign central bank to which the
Board of Governors or a Federal
reserve bank has provided such
assistance;
(2) the type of financial assistance provided
to that business, individual, entity, or foreign central bank;
(3) the value or amount of that financial assistance;
(4) the date on which the financial assistance was provided;
(5) the specific terms of any repayment expected, including
the repayment time period, interest charges, collateral,
limitations on executive compensation or dividends, and other
material terms; and
(6) the specific rationale for each
such facility or program.
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