To instruct the Inspector General of the Federal Deposit Insurance Corporation to study the impact of insured depository institution failures, and for other purposes.
Public Law 112-88 · H.R. 2056 · 112th Congress · began in the House
Signed by Barack Obama (D) on Jan 3, 2012 · Finance and Financial Sector
Sponsor: Rep. Lynn Westmoreland (R-GA-3)
Cosponsors (13): Rep. David Scott, Rep. Paul Broun,
Passage votes
- HouseVoice vote
- SenateUnanimous consent
Data notes
The final version of the law, as each chamber passed it. A chamber that passed it by voice vote or unanimous consent has no count. “Method not stated” means the record does not say how the chamber voted. Where the record has a member-by-member vote, the “Who voted for it” section shows who voted yea.
Summary
The Congressional Research Service’s plain-language summary of what the law does.
(Sec. 1) Directs the Inspector General (IG) of the Federal Deposit Insurance Corporation (FDIC) to study the impact of the failure of insured depository institutions.
Prescribes study details, including: (1) the impact of loss-sharing agreements (LSAs) upon the insured depository institutions that survive and the borrowers of those insured depository institutions that fail; (2) FDIC policies and procedures for monitoring LSAs, including those designed to ensure that institutions are not imprudently selling assets at a depressed value; (3) FDIC policies and procedures for terminating LSAs and mitigating the risk of acquiring institutions having substantial assets remaining in their portfolio when the LSAs are due to expire; (4) methods of ensuring the orderly end of expiring LSAs to prevent adverse impacts upon either borrowing, the real estate industry, or the Depositors Insurance Fund; (5) the significance of losses; and (6) the number of insured depository institutions placed into either receivership or conservatorship due to significant losses arising from loans for which all payments of principal, interest, and fees (payments) were current, under the contract.
Requires the study to examine: (1) the impact of significant losses arising from loans for which all payments were current on the ability of insured depository institutions to raise additional capital; (2) the degree to which fair value accounting rules and other accounting standards have led to regulatory action against banks; and (3) whether field examiners use appropriate appraisal procedures with respect to losses arising from loans for which all payments were current and whether the application of appraisals leads to immediate write downs on the value of the underlying asset.
Requires the study also to cover: (1) the policies and procedures for evaluating the adequacy of an insured depository institution's allowance for loan and lease losses, (2) examiners' policies and procedures for evaluating appraised values of property securing real estate loans, (3) examiners' implementation of specified FDIC guidelines, (4) factors examiners use to assess the adequacy of capital at insured depository institutions, (5) the factors used by the FDIC in evaluating applications of private capital investors to acquire insured depository institutions in receivership, and (6) the extent to which policies and procedures associated with the evaluation of potential private investments in insured depository institutions are followed.
Requires such study also to address: (1) the success of FDIC field examiners in implementing specified FDIC guidelines governing workouts of commercial real estate loans, (2) the application and impact of consent orders and cease and desist orders, (3) the application and impact of FDIC policies, and (4) the FDIC's handling of potential investment from private equity companies in insured depository institutions.
Requires the Inspectors General of the U.S. Treasury and of the Federal Reserve System to provide any material requested by the IG order to implement this Act.
(Sec. 2) Directs the FDIC IG and the Comptroller General (GAO) to appear before certain congressional committees within 150 days after publication of the study required by this Act to discuss the outcomes and impact of federal regulations on bank examinations and failures.
(Sec. 3) Directs the GAO to study: (1) the causes of bank failures in states with 10 or more failures since 2008; (2) the procyclical impact of fair value accounting standards; (3) the causes and potential solutions for the "vicious cycle" of loan write downs, raising capital, and failures; (4) the impact of bank failures upon the community; and (5) the feasibility and overall impact of LSAs.
Committees
The committees the bill was sent to, and what each did with it.
Financial Services Committee · House · markup by, referred to, reported bySubcommittee: Consumer Protection and Financial Institutions Subcommittee
Data notes
A committee links to its page only where it exists in the current Congress; older and renamed committees are named without a link.
Related bills
The record lists no related bills.
Data notes
Related bills are identified by the Congressional Research Service, the House and the Senate: companion and identical bills, bills with similar text, bills that were folded into this law, and rules that brought it to the floor. A bill that is itself a public law in this site’s data links here; the others link to Congress.gov.
Timeline
From introduction to signing, newest first: the committees, the floor and the president. 32 actions.
- Jan 3, 2012Became lawBecame law · Became Public Law No: 112-88.
- Became lawBecame law · Signed by President.
- Dec 23, 2011FloorFloor · Presented to President.
- Dec 20, 2011Resolving differencesResolving differences · Motion to reconsider laid on the table Agreed to without objection.
- Resolving differencesResolving differences · On motion that the House suspend the rules and agree to the Senate amendments Agreed to by voice vote.
- FloorFloor · Considered as unfinished business.
- OtherOther · Resolving differences -- House actions: On motion that the House suspend the rules and agree to the Senate amendments Agreed to by voice vote.
- Dec 19, 2011Resolving differencesResolving differences · At the conclusion of debate, the chair put the question on the motion to suspend the rules. Mr. Westmoreland objected to the vote on the grounds that a quorum was not present. Further proceedings on the motion were postponed. The point of no quorum was withdrawn.
- Resolving differencesResolving differences · Mr. Westmoreland moved that the House suspend the rules and agree to the Senate amendments.
- FloorFloor · DEBATE - The House proceeded with forty minutes of debate on agreeing to the Senate amendments to H.R. 2056.
- Nov 18, 2011FloorFloor · Message on Senate action sent to the House.
- Nov 17, 2011FloorFloor · Passed Senate with amendments by Unanimous Consent.
- FloorFloor · Measure laid before Senate by unanimous consent.
- CommitteeCommittee · Senate Committee on Banking, Housing, and Urban Affairs discharged by Unanimous Consent.
- Jul 29, 2011CommitteeCommittee · Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Jul 28, 2011FloorFloor · Motion to reconsider laid on the table Agreed to without objection.
- FloorFloor · On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
- FloorFloor · Considered as unfinished business.
- Jul 26, 2011FloorFloor · At the conclusion of debate, the chair put the question on the motion to suspend the rules. Mr. Westmoreland objected to the vote on the grounds that a quorum was not present. Further proceedings on the motion were postponed. The point of no quorum was withdrawn.
- FloorFloor · DEBATE - The House proceeded with forty minutes of debate on H.R. 2056.
- FloorFloor · Mr. Westmoreland moved to suspend the rules and pass the bill, as amended.
- FloorFloor · Considered under suspension of the rules.
- CalendarCalendar · Placed on the Union Calendar, Calendar No. 120.
- CommitteeCommittee · Reported (Amended) by the Committee on Financial Services. H. Rept. 112-182.
- Jul 20, 2011CommitteeCommittee · Subcommittee on Financial Institutions and Consumer Credit Discharged.
- CommitteeCommittee · Ordered to be Reported (Amended) by Voice Vote.
- CommitteeCommittee · Committee Consideration and Mark-up Session Held.
- Jul 19, 2011CommitteeCommittee · Referred to the Subcommittee on Financial Institutions and Consumer Credit.
- Jul 8, 2011CommitteeCommittee · Hearings Held by the Subcommittee on Financial Institutions and Consumer Credit Prior to Referral.
- CommitteeCommittee · Hearings by Consumer Protection and Financial Institutions Subcommittee of the House Financial Services Committee
Data notes
Every action the Library of Congress lists for the bill, from introduction to signing, plus the dated committee hearings. The source lists many steps twice (the chamber’s own entry and the Library of Congress copy, or a presidential and a became-law entry with the same words); those are shown once. Amendments are listed in their own section.
Amendments
2 amendments offered to the bill, with the last recorded step of each.
- Agreed to
S.Amdt. 1221SenateSen. Carl LevinD-MI· offered Nov 17, 2011Agreed to
To clarify the types of losses to be studied, to require appearances before Congress, and for other purposes.
Nov 17, 2011: Amendment SA 1221 agreed to in Senate by Unanimous Consent.
- Other
S.Amdt. 1127SenateSen. Carl LevinD-MI· offered Nov 17, 2011Other
Nov 17, 2011: Referred to the Committee on Banking, Housing, and Urban Affairs.
Data notes
Amendments offered to this bill in either chamber, as the Library of Congress records them: each with a status read from its last recorded step: agreed to, rejected, withdrawn, ruled out of order, fell with another amendment, or offered with no vote recorded (most Senate amendments are only ever offered). The wording of each amendment is the source’s. Amendments to amendments and amendments to other bills are not listed.
Official record
The bill’s full text is on Congress.gov. Data through Oct 7, 2026.