This bill establishes new fairness and transparency procedures for how federal financial regulators examine banks and credit unions. It sets strict timelines for completing examinations (270 days) and delivering final examination reports (90 days), with regulators required to provide written explanations if they need more time. The bill creates a new "private letter ruling" process allowing financial institutions to request written guidance from regulators on specific activities within 60 days, with fees based on the cost of review.
The legislation establishes an independent Office of Independent Examination Review with a three-member board appointed by the President and confirmed by the Senate. This board will investigate complaints about examinations, hold regular meetings with financial institutions, review examination quality, and conduct independent reviews of major supervisory determinations. The bill also gives financial institutions a right to appeal supervisory determinations to this independent board within 30 days, with the option for a formal hearing conducted by the board using standards similar to federal court proceedings.
Additionally, the bill allows banks and credit unions to choose whether enforcement hearings are conducted by their regulator or in federal district court, giving institutions an option to pursue disputes in the regular court system. Financial institutions are protected from retaliation for exercising these new rights. The costs of the independent review office will be split equally among the four main federal banking agencies.
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