Text: H.R.5050 — 101st Congress (1989-1990)All Information (Except Text)

There is one version of the bill.

Text available as:

Shown Here:
Introduced in House

 
 
HR 5050 SC
101st CONGRESS
2d Session
 H. R. 5050
To enhance the ability of the Federal Government to successfully prosecute
financial crimes and gain increased recoveries at failed financial
institutions.
IN THE HOUSE OF REPRESENTATIVES
June 14, 1990
Mr. WYLIE (for himself, Mr. GONZALEZ, Mr. ANNUNZIO, Mr. BARNARD, Mr. HILER,
and Mr. MICHEL) introduced the following bill; which was referred jointly
to the Committees on Banking, Finance and Urban Affairs, the Judiciary,
and Ways and Means
July 30, 1990
Additional sponsors: Mr. PARRIS, Mr. RIDGE, Mrs. ROUKEMA, Mr. ROTH,
Mr. HUBBARD, Mr. LEACH of Iowa, Mr. MCCANDLESS, Mr. FLAKE, Mr. MFUME,
Mrs. MARTIN of Illinois, Mr. CARPER, Ms. OAKER, Mr. PRICE, Mr. DREIER of
California, Mrs. SAIKI, Mrs. PATTERSON, Mr. OWENS of New York, Mr. SAXTON,
Mr. SHARP, Mr. BURTON of Indiana, Mr. MCDADE, Mr. BUNNING, Mr. BROOMFIELD,
Mr. BEREUTER, Mr. SHUMWAY, Mr. MADIGAN, Mr. ERDREICH, Ms. KAPTUR, Mr. WALGREN,
Mr. STENHOLM, Mr. BAKER, Mr. DURBIN, Mrs. SCHROEDER, Mr. LEHMAN of Florida,
Mr. HYDE, Mr. WOLF, Mr. FLIPPO, Mr. MCDERMOTT, Mr. PACKARD, Mr. LIVINGSTON,
Mr. MCMILLAN of North Carolina, Mr. BRYANT, Mr. RITTER, Mr. VALENTINE,
Mr. LEWIS of Florida, Mr. SOLOMON, Mr. MCNULTY, Mr. LANCASTER, Mr. TRAXLER,
Mr. MARTIN of New York, Mr. MINETA, Mr. MCHUGH, Mr. SCHAEFER, Mr. KANJORSKI,
Mr. PEASE, Mr. BRUCE, Mr. LEHMAN of California, Mr. BILBRAY, Mr. DEFAZIO,
Mr. RHODES, Mr. HAMMERSCHMIDT, Mr. BROWN of Colorado, Mr. GRANDY, Mr. JONTZ,
Mr. KYL, Mrs. MEYERS of Kansas, Mrs. JOHNSON of Connecticut, Mr. STANGELAND,
Mrs. COLLINS, Mr. SERRANO, Mr. TORRES, Ms. SCHNEIDER, Mr. STEARNS,
Mr. HORTON, Mr. LEWIS of California, Mr. SIKORSKI, Mr. MILLER of Ohio,
Mr. JONES of Georgia, Mr. GALLEGLY, Mrs. MORELLA, Mr. DOUGLAS, Mr. TAUKE,
Mrs. VUCANOVICH, Mrs. SMITH of Nebraska, Mr. WELDON, Mr. BARTON of Texas,
Mr. GUNDERSON, Ms. PELOSI, Mr. EVANS, Mr. ROBERTS, Mr. ROWLAND of Connecticut,
Mr. PAXON, Mr. SCHEUER, Mr. HAWKINS, Mr. SUNDQUIST, Mr. EDWARDS of Oklahoma,
Mr. GINGRICH, Mr. CROCKETT, Mr. ENGEL, Mr. BOEHLERT, Mrs. UNSOELD,
Mr. BARTLETT, Mr. EMERSON, Mr. WALKER, Mr. HANCOCK, Mr. LAGOMARSINO,
Mr. DWYER of New Jersey, Mr. JOHNSON of South Dakota, Mr. BATES, Mr. MORRISON
of Connecticut, Mr. MCEWEN, Mr. PORTER, Mr. COBLE, Mr. CHANDLER, Mr. GALLO,
Mr. GRANT, Mr. DENNY SMITH, Mr. AUCOIN, Mr. INHOFE, Mr. SMITH of New Jersey,
Mr. GEREN of Texas, Mr. VISCLOSKY, Mr. MYERS of Indiana, Mr. MARTINEZ,
Mr. BROWN of California, Mr. BEVILL, Mr. HERGER, Mr. GILLMOR, Mr. MCCRERY,
Mr. SHAYS, Mr. ROGERS, Mr. REGULA, Mr. APPLEGATE, Mr. GOSS, Mr. FRENZEL,
Mr. HOLLOWAY, Mr. WALSH, Mr. STUMP, Mr. LANTOS, Mr. HOPKINS, Mr. BALLENGER,
Mr. SMITH of New Hampshire, and Mr. Dellums
A BILL
To enhance the ability of the Federal Government to successfully prosecute
financial crimes and gain increased recoveries at failed financial
institutions.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Financial Crimes Prosecution and Recovery
  Act of 1990'.
SEC. 2. DEFINITIONS.
  For purposes of this Act--
  (1) FINANCIAL CRIME- The term `financial crime' means any offense under title
  18, United States Code, relating to any insured depository institution
  (as defined in section 3(c)(2) of the Federal Deposit Insurance Act)
  or any affiliate of such institution.
  (2) APPROPRIATE FEDERAL BANKING AGENCY- The term `appropriate Federal
  banking agency' has the meaning given to such term in section 3(q) of the
  Federal Deposit Insurance Act.
TITLE I--NATIONAL COMMISSION ON FINANCIAL CRIMES
SEC. 101. ESTABLISHMENT OF COMMISSION.
  There is hereby established a commission to be known as the National
  Commission on Financial Crimes (hereafter in this title referred to as the
  `Commission').
SEC. 102. DUTIES OF COMMISSION.
  The Commission shall--
  (1) recommend methods and procedures for improving interagency cooperation
  in the investigation and prosecution of financial crimes;
  (2) investigate and develop recommendations for strategies and specific
  tactics for law enforcement officers for the successful investigation and
  prosecution of financial crimes;
  (3) investigate the causes of fraud and abuse in the financial services
  industry; and
  (4) recommend any other administrative or legislative actions which the
  Commission determines is necessary or appropriate to prevent financial
  crimes from occurring in the future.
SEC. 103. MEMBERSHIP.
  (a) NUMBER AND APPOINTMENT- The Commission shall be composed of 9 members
  appointed as follows:
  (1) 5 individuals appointed by the President, by and with the advice and
  consent of the Senate, 3 of whom shall be appointed from among citizens
  of the United States employed in the private sector and 2 of whom shall
  be appointed from among officers and employees of the United States.
  (2) 2 Members of the House of Representatives appointed by the Speaker
  of the House of Representatives 1 of whom shall be appointed upon the
  recommendation of the majority leader of the House of Representatives and
  1 of whom shall be appointed upon the recommendation of the minority leader
  of the House of Representatives.
  (3) 2 Members of the Senate appointed by the President pro tempore of
  the Senate 1 of whom shall be appointed upon the recommendation of the
  majority leader of the Senate and 1 of whom shall be appointed upon the
  recommendation of the minority leader of the Senate.
  (b) POLITICAL AFFILIATION- Not more than 3 members appointed under subsection
  (a)(1) may be of the same political party.
  (c) CONTINUATION OF MEMBERSHIP- If--
  (1) a member was appointed to the Commission as a Member of Congress or
  as an officer or employee of the United States and the member ceases to
  be a Member of Congress or an officer or employee of the United States; or
  (2) a member was appointed to the Commission because the member was not an
  officer or employee of any government and such member becomes an officer
  or employee of a government,
that member may continue as a member for not longer than the 30-day period
beginning on the date that member ceases to be a Member of Congress or an
officer or employee of the United States, or becomes such an officer or
employee, as the case may be.
  (d) TERMS-
  (1) IN GENERAL- Each member shall be appointed for the life of the
  Commission.
  (2) VACANCY- A vacancy in the Commission shall be filled in the manner in
  which the original appointment was made.
  (e) PROHIBITION ON COMPENSATION-
  (1) IN GENERAL- Except as provided in paragraph (2), members of the
  Commission shall serve without pay.
  (2) TRAVEL EXPENSES- Each member shall receive travel expenses, including
  per diem in lieu of subsistence, in accordance with sections 5702 and 5703
  of title 5, United States Code.
  (f) QUORUM- A majority of the members of the Commission shall constitute
  a quorum but a lesser number may hold hearings.
  (g) CHAIRPERSON- The Chairperson of the Commission shall be designated by
  the President at the time of the appointment from among the 3 individuals
  appointed by the President who are employed in the private sector.
  (h) MEETINGS- The Commission shall meet at the call of the Chairperson or
  a majority of the members.
SEC. 104. POWERS OF COMMISSION.
  (a) HEARINGS AND SESSIONS-
  (1) IN GENERAL- The Commission may, for the purpose of carrying out this
  title, hold hearings, sit and act at times and places, take testimony,
  and receive evidence as the Commission considers appropriate.
  (2) ADMINISTRATION OF OATHS- The Commission may administer oaths or
  affirmations to witnesses appearing before the Commission.
  (b) POWERS OF MEMBERS AND AGENTS- Any member or agent of the Commission may,
  if authorized by the Commission, take any action which the Commission is
  authorized to take by this section.
  (c) OBTAINING OFFICIAL DATA-
  (1) AUTHORITY TO OBTAIN- Notwithstanding any provision of section 552a, the
  Commission may secure directly from any department or agency of the United
  States information necessary to enable the Commission to carry out this Act.
  (2) PROCEDURE- Upon request of the Chairperson of the Commission, the head
  of that department or agency shall furnish the information requested to
  the Commission.
  (d) MAILS- The Commission may use the United States mails in the same
  manner and under the same conditions as other departments and agencies of
  the United States.
  (e) ADMINISTRATIVE SUPPORT SERVICES- Upon the request of the Commission,
  the Administrator of General Services shall provide to the Commission,
  on a reimbursable basis, the administrative support services necessary
  for the Commission to carry out its responsibilities under this title.
SEC. 105. STAFF OF COMMISSION; EXPERTS AND CONSULTANTS.
  (a) STAFF- Subject to such regulations as the Commission may prescribe,
  the Chairperson may appoint and fix the pay of such personnel as the
  Chairperson considers appropriate.
  (b) APPLICABILITY OF CERTAIN CIVIL SERVICE LAWS- The staff of the Commission
  may be appointed without regard to the provisions of title 5, United States
  Code, governing appointments in the competitive service, and may be paid
  without regard to the provisions of chapter 51 and subchapter III of chapter
  53 of that title relating to classification and General Schedule pay rates,
  except that an individual so appointed may not receive pay in excess of
  the annual rate of basic pay payable for GS-18 of the General Schedule.
  (c) EXPERTS AND CONSULTANTS- Subject to rules prescribed by the Commission,
  the Chairperson may procure temporary and intermittent services under section
  3109(b) of title 5, United States Code, but at rates for individuals not
  to exceed the annual rate of basic pay payable for GS-18 of the General
  Schedule.
  (d) STAFF OF FEDERAL AGENCIES- Upon request of the Chairperson, the head
  of any Federal department or agency may detail, on a reimbursable basis,
  any of the personnel of that department or agency to the Commission to
  assist it in carrying out its duties under this Act.
SEC. 106. REPORTS.
  (a) INTERIM REPORTS- The Commission may submit to the President and the
  Congress such interim reports as the Commission considers appropriate.
  (b) FINAL REPORT-
  (1) REQUIRED- The Commission shall submit a final report to the President
  and the Congress not later than March 1, 1991.
  (2) CONTENTS- The final report shall contain a detailed statement
  of the findings and conclusions of the Commission, together with such
  recommendations for legislation or administrative action as the Commission
  considers appropriate.
SEC. 107. TERMINATION.
  The Commission shall terminate on 30 days after submitting the final report
  pursuant to section 106(b)(1).
TITLE II--IMPROVEMENTS IN ADMINISTRATION OF THE DEPARTMENT OF JUSTICE
SEC. 201. ESTABLISHMENT OF LOCAL FINANCIAL CRIMES STRIKE FORCES REQUIRED.
  (a) IN GENERAL- The Attorney General shall establish a financial crimes
  strike force in each Federal judicial district which, with respect to the
  total number of criminal referrals filed with the Attorney General by the
  appropriate Federal banking agencies relating to residents of or persons
  located in such district, is in the top quartile of all Federal judicial
  districts with respect to the total number of such referrals relating to
  residents of or persons located in each such district.
  (b) LOCAL CONTROL- Except as otherwise provided by the Attorney General,
  any strike force established in any Federal judicial district pursuant
  to subsection (a) shall be under the direction and control of the United
  States Attorney for such district.
  (c) QUARTERLY REPORTS REQUIRED- The United States Attorney for each judicial
  district in which a financial crimes strike force is established pursuant
  to subsection (a) shall submit a quarterly report to the Attorney General,
  in addition to any other report submitted by the United States Attorney,
  on the activities of the strike force, the progress made in disposing of
  pending referrals from Federal banking agencies, and a description of the
  disposition of each such referral.
SEC. 202. DOJ EMPLOYMENT PROVISION RELATING TO ATTORNEYS ON FINANCIAL CRIMES
STRIKE FORCES.
  Notwithstanding any other provision of law, the rate of basic pay for any
  attorney employed by the Department of Justice, including any assistant
  United States attorney or any attorney appointed to assist any United States
  attorney, who is employed in connection with any local financial crimes
  strike force established pursuant to section 201 may be set and adjusted
  by the Attorney General without regard to the provisions of chapter 51 or
  subchapter III of chapter 53 of title 5, United States Code. The Attorney
  General may provide additional compensation and benefits to any such
  attorney if the same type of compensation or benefits are being provided,
  or are authorized to be provided, by any appropriate Federal banking
  agency to attorneys employed by such agency. In setting and adjusting
  the total amount of compensation and benefits for such attorneys, the
  Attorney General shall consult with, and seek to maintain comparability
  with, the appropriate Federal banking agencies.
SEC. 203. DOJ MERIT SYSTEM FOR EMPLOYEES INVOLVED IN THE INVESTIGATION AND
PROSECUTION OF FINANCIAL CRIMES.
  (a) IN GENERAL- The Attorney General shall establish a merit system to
  recognize and reward the outstanding efforts of individuals engaged in
  the investigation and prosecution of financial crimes.
  (b) BONUSES, AWARDS, AND OTHER INCENTIVES- Notwithstanding any other
  provision of law, the merit system established by the Attorney General
  pursuant to subsection (a) shall be administered so as to--
  (1) provide for a compensation system, including salaries, benefits,
  and incentives, and other conditions of employment designed to attract
  and retain highly competent professional employees; and
  (2) recognize exceptional accomplishment.
SEC. 204. CASE MANAGEMENT REQUIREMENTS WITH RESPECT TO FINANCIAL CRIMES.
  (a) PROHIBITION ON FINANCIAL CRIME MINIMUM LOSS REQUIREMENT- The Attorney
  General shall prohibit any United States attorney and any other attorney
  employed by the Department of Justice, including any assistant United
  States attorney or any attorney appointed to assist any United States
  attorney, from taking into account the dollar amount of any loss incurred
  in connection with any financial crime in making any determination with
  respect to the investigation or prosecution of such crime.
  (b) PRIORITY FOR FINANCIAL CRIME REFERRALS-
  (1) IN GENERAL- The Attorney General shall prescribe by a regulation that
  the investigation of any referral from any appropriate Federal banking
  agency relating to any financial crime involving any insured depository
  institution in default or in danger of default or any troubled institution
  shall be given priority in case management.
  (2) DEFINITIONS- For purposes of paragraph (1), the terms `default' and
  `in danger of default' have the meaning given to such terms in section 3(x)
  of the Federal Deposit Insurance Act and the term `troubled institution'
  has the meaning given to such term in section 29(g) of such Act.
SEC. 205. AVAILABILITY OF CERTAIN CIVIL MONEY PENALTIES TO THE ATTORNEY
GENERAL.
  Section 951 of the Financial Institutions Reform, Recovery, and Enforcement
  Act of 1989 (12 U.S.C. 1833a) is amended by adding at the end the following
  new subsection:
  `(g) DISBURSEMENT- All penalties collected under authority of this section
  shall be paid to the Attorney General and shall be available without
  fiscal year limitation to the Attorney General for any expenses incurred
  in carrying out his section or any other provision of law.'.
SEC. 206. ADMINISTRATIVE SUBPOENA AUTHORITY.
  (a) IN GENERAL- Part II of title 18, United States Code, is amended by
  adding at the end the following new chapter: inserting after section 537
  the following new chapter:
`CHAPTER 237--ADMINISTRATIVE PROVISIONS
`Sec.
`3771. Administrative subpoena authority.
`Sec. 3771. Administrative subpoena authority
  `(a) ISSUANCE-
  `(1) GENERALLY- Upon a determination that a person may possess, or have
  care, custody, or control of any books, records, papers, documents, or
  other objects, which may be relevant to an authorized law enforcement
  inquiry of alleged violation of--
  `(A) section 215, 371, 567, 656, 1005, 1006, 1007, 1008, 1014, or 1344 of
  this title; or
  `(B) section 1341 or 1343 affecting a financial institution, and any
  alleged conspiracies to commit violations of such sections under section
  371 of this title;
a Federal Bureau of Investigation official described in paragraph (3) may
issue in writing and cause to be served upon such person a summons requiring
such person to produce the objects at the place designated in the summons.
  `(2) CONTENTS OF SUMMONS-  The summons shall describe the objects required
  to be produced and prescribe a return date within a reasonable period of
  time within which the objects can be assembled and made available.
  `(3) OFFICIALS WHO MAY ISSUE- The Federal Bureau of Investigation officials
  referred to in paragraph (1) are--
  `(A) the Director;
  `(B) designees of the Director at Bureau headquarters;
  `(C) special agents in charge of Bureau divisions; and
  `(D) senior supervisory resident agents.
  `(b) SERVICE- A summons issued under this section shall be served--
  `(1) by any special agent of the Bureau; and
  `(2)(A) upon a natural person by delivering a copy to that person
  personally, and
  `(B) upon a corporation, a partnership, or other unincorporated association
  by delivering the summons to an officer, a managing or general agent, or
  to any other agent authorized by appointment or by law to receive service
  of process, or by certified or registered mail to any such person. The
  affidavit of the person serving the summons shall be proof of service.
  `(c) PLACE OF SERVICE- A summon issued under this section may be served
  at any place within the United States or any place subject to the laws or
  the jurisdiction of the United States.
  `(d) ENFORCEMENT-
  `(1) PREPARATION REQUIRED- Any person served with a summon issued pursuant
  to this section shall proceed to assemble the objects required to be produced
  and shall be prepared to produce them on the date and at the place specified
  in the summons, notwithstanding any petition filed under subsection (d)(3).
  `(2) COURT ORDER TO COMPEL COMPLIANCE- In the case of contumacy by, or
  refusal to obey a summons issued to, any person pursuant to this section,
  the Attorney General may seek an order to compel compliance of such a
  summons, from a district of the United States where--
  `(A) the investigation is pending;
  `(B) the summons was served; or
  `(C) the summoned person resides, carries on business, or may be found.
All process in any such court action may be served in any judicial district
in which such person may be found.
  `(3) PETITION FOR MODIFICATION- Within 10 days after the service of
  a summons upon such a person, or at any time before the return date
  specified in the summons, whichever period is less, such person may
  file, in the United States district court in the district where the
  investigation is pending, a petition for an order modifying or setting
  aside the summons. The petition shall specify each ground upon which the
  petition relies in seeking relief. The time allowed for initiation of
  formal criminal proceedings under any applicable statute of limitations
  shall be tolled while the petition is pending in court or on appeal.
  `(4) POWER OF COURTS- The court may enter such order as may be required to
  enforce this section. Any failure to obey any such order may be punished
  as a contempt thereof. Any petition filed, any such order entered shall
  be under seal.
  `(e) APPLICABLE STANDARDS GOVERNING PRODUCTION- The standards relating to
  production of books, records, papers, documents, or other objects, pursuant
  to a subpoena duces tecum issued by a district court of the United States
  in furtherance of a grand jury investigation, shall--
  `(1) apply to summons issued under this section; and
  `(2) govern any proceedings under subsection (d)(3).
Nothing in this subsection shall prevent the use of any summons pursuant
to this section issued in connection with locating fugitive felons for
alleged violations of those sections of this title set forth in subsection
(a) of this section.
  `(f) IMMUNITY FROM CIVIL LIABILITY- Notwithstanding any Federal, State,
  or local law, any person, including officers, agents, and employees,
  receiving a summons under this section, who complies in good faith with the
  summons and any orders issued under subsection (d)(3) and thus produces
  the materials sought, shall not be liable in any court of any State or
  the United States to any customer or other person for such production or
  for nondisclosure of that production to the customer.'.
  (b) CLERICAL AMENDMENT- The table of chapters for part II of title 18,
  United States Code, is amended by inserting after the item relating to
  chapter 235 the following new item:
3771'.
  (c) CONFORMING AMENDMENT- Section 1510(b)(3)(B) of title 18, United States
  Code, is amended by inserting `or a Federal Bureau of Investigation summons
  (issued under section 3771),' after `subpoena'.
TITLE III--IMPROVEMENTS IN THE ADMINISTRATION OF THE FDIC AND THE RTC
SEC. 301. SUBPOENA AUTHORITY FOR FDIC AND RTC ACTING AS CONSERVATOR OR
RECEIVER.
  Section 11(d)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1821(d)(2))
  is amended by redesignating subparagraph (I) as subparagraph (J) and by
  inserting after subparagraph (H) the following new subparagraph:
  `(I) SUMMONS AUTHORITY-
  `(i) IN GENERAL- The Corporation may, as conservator or receiver and for
  purposes of carrying out any power, authority, or duty with respect to the
  insured depository institution (including determining any claim against
  the institution and determining and realizing upon any asset of any person
  in the course of collecting money due the institution) exercise any power
  established under section 8(n) and the provisions of such section shall
  apply with respect to the exercise of any such power under this subparagraph
  in the same manner as such provisions apply under such section.
  `(ii) AUTHORITY LIMITED TO BOARD OF DIRECTORS- A summons may be issued under
  clause (i) only by, or with the written approval of, the Board of Directors
  (or, in the case of a summons issued by the Resolution Trust Corporation
  under this subparagraph and section 21A(b)(4), only by, or with the written
  approval of, the Board of Directors of such Corporation) and such authority
  to issue or approve may not be delegated by the Board of Directors.'.
SEC. 302. BANKING AGENCY AND RTC ACCESS TO CERTAIN IRS RECORDS.
  Section 6103(l) of the Internal Revenue Code of 1986 (relating to disclosure
  of returns and return information for purposes other than tax administration)
  is amended by adding at the end the following new paragraph:
  `(13) DISCLOSURE OF RETURN AND RETURN INFORMATION TO THE FEDERAL BANKING
  AGENCIES AND THE RESOLUTION TRUST CORPORATION-
  `(A) IN GENERAL- The Secretary may, upon written request, furnish returns
  and return information to the proper officers and employees of the Federal
  Deposit Insurance Corporation and the Resolution Trust Corporation for
  purposes of, but only to the extent necessary in, the administration of
  section 11 of the Federal Deposit Insurance Act and section 21A of the
  Federal Home Loan Bank Act.
  `(B) LIMITATION ON AUTHORITY TO REQUEST- The Secretary may furnish returns
  or return information under subparagraph (A) only if--
  `(i) the written request is made by the Board of Directors of the Corporation
  seeking such return or information; and
  `(ii) such Board of Directors certifies, in such request, that the
  corporation has a substantial need for the return or information.'.
SEC. 303. FOREIGN INVESTIGATIONS BY FEDERAL BANKING AGENCIES AND INVESTIGATIONS
ON BEHALF OF FOREIGN BANKING AGENCIES.
  (a) IN GENERAL- Section 8 of the Federal Deposit Insurance Act is amended
  by adding at the end the following new subsection:
  `(v) FOREIGN INVESTIGATIONS-
  `(1) REQUESTING ASSISTANCE FROM FOREIGN BANKING AGENCIES- In conducting
  any investigation, examination, or enforcement action under this Act,
  any appropriate Federal banking agency may--
  `(A) request the assistance of any foreign banking authority; and
  `(B) maintain an office outside the United States on a temporary or
  permanent basis for such purposes.
  `(2) PROVIDING ASSISTANCE TO FOREIGN BANKING AGENCIES-
  `(A) IN GENERAL- On request from a foreign banking authority, any
  appropriate Federal banking agency may provide assistance in accordance
  with this paragraph if the requesting authority states that the requesting
  authority is conducting an investigation which it deems necessary to
  determine whether any person has violated, is violating, or is about
  to violate any laws or regulations relating to banking matters that the
  requesting authority administers or enforces.
  `(B) INVESTIGATION BY BANKING AGENCY- The appropriate banking agency may,
  in its discretion, conduct such investigation as the agency deems necessary
  to collect information and evidence pertinent to the request for assistance
  and such assistance may be provided without regard to whether the facts
  stated in the request would also constitute a violation of the laws of
  the United States.
  `(C) FACTORS TO CONSIDER- In deciding whether to provide assistance under
  this paragraph, the appropriate Federal banking agency shall consider
  whether--
  `(i) the requesting authority has agreed to provide reciprocal assistance
  in banking matters within the jurisdiction of any appropriate Federal
  banking agency; and
  `(ii) compliance with request would prejudice the public interest of the
  United States.'.
  (b) FOREIGN INVESTIGATIONS BY FDIC AND RTC AS CONSERVATOR OR RECEIVER-
  Section 11 of the Federal Deposit Insurance Act (12 U.S.C. 1821) is amended
  by adding at the end the following new subsection:
  `(p) FOREIGN INVESTIGATIONS- The Corporation and the Resolution Trust
  Corporation, as conservator or receiver of any insured depository institution
  and for purposes of carrying out any power, authority, or duty with respect
  to the insured depository institution (including determining any claim
  against the institution and determining and realizing upon any asset of
  any person in the course of collecting money due the institution)--
  `(1) may request the assistance of any foreign banking authority and
  provide assistance to any foreign banking authority in accordance with
  section 8(v); and
  `(2) shall each maintain an office on a permanent basis to coordinate foreign
  investigations or investigations on behalf of foreign banking authorities.
SEC. 304. CLARIFICATION OF FDIC CORPORATE POWERS.
  Section 9(b) of the Federal Deposit Insurance Act (12 U.S.C. 1819(b))
  by adding at the end the following new paragraph:
  `(5) AUTHORITY OF BOARD OF DIRECTORS- In any action, suit, or proceeding in
  which the Corporation is a party is interested, whether in its corporate
  capacity or as conservator or receiver for any insured depository
  institution, the Board of Directors may act in its own name and through
  its own attorneys.'.
SEC. 305. PRIORITY OF CLAIMS.
  Section 11 of the Federal Deposit Insurance Act (12 U.S.C. 1821) is amended
  by inserting after subsection (p) (as added by section 303(b) of this title)
  the following new subsection:
  `(q) PRIORITY OF CERTAIN CLAIMS- In any proceeding related to any claim
  acquired under this section or section 13 against any institution-affiliated
  party of the insured depository institution, any suit, claim, or action
  brought by the Corporation shall have priority over any suit, claim,
  or action filed or begun against such party by depositors, creditors, or
  shareholders of the insured depository institution after the date of the
  enactment of the Financial Crimes Prosecution and Recovery Act of 1990,
  other than any claim of any Federal agency under section 6321 of the
  Internal Revenue Code of 1986 or section 3713 of title 31, United States
  Code. This priority shall apply to the prosecution of any suit, claim, or
  action and the execution of any subsequent judgment resulting from suit,
  claim, or action.'.
SEC. 306. FRAUDULENT CONVEYANCES AVOIDABLE BY RECEIVERS.
  Section 11(d) of the Federal Deposit Insurance Act (12 U.S.C. 1821(d))
  is amended by adding at the end the following new paragraph:
  `(17) FRAUDULENT TRANSFERS-
  `(A) IN GENERAL- The Corporation, as conservator or receiver for any
  insured depository institution, may avoid any transfer of any interest
  of any institution-affiliated party, or any person who the Corporation
  determines is a debtor of the institution, in property, or any obligation
  incurred by such party or person, that was made within 5 years of the
  date on which the Corporation was appointed conservator or receiver if
  such party or person voluntarily or involuntarily made such transfer or
  incurred such liability with actual intent to hinder, delay, or defraud
  the insured depository institution.
  `(B) RIGHT OF RECOVERY- To the extent a transfer is avoided under
  subparagraph (A), the Corporation may recover, for the benefit of the
  insured depository institution, the property transferred, or, if a court
  so orders, the value of such property from--
  `(i) the initial transferee of such transfer or the institution-affiliated
  party or person for whose benefit such transfer was made; or
  `(ii) any immediate or mediate transferee of any such initial transferee.
  `(C) RIGHTS OF TRANSFEREE OR OBLIGEE- The Corporation may not recover
  under subparagraph (B) from--
  `(i) any transferee that takes for value, including satisfaction or securing
  of a present or antecedent debt, in good faith, and without knowledge of
  the voidability of the transfer avoided; or
  `(ii) any immediate or mediate good faith transferee of such transferee.'.
SEC. 307. PREJUDGMENT ATTACHMENTS.
  Section 11(d) of the Federal Deposit Insurance Act (12 U.S.C. 1821(d))
  is amended by inserting after paragraph (17) (as added by section 306 of
  this title) the following new paragraph:
  `(18) PREJUDGMENT ATTACHMENT- Any court of competent jurisdiction may,
  at the request of the Corporation (in the Corporation's capacity as
  conservator or receiver for any insured depository institution), place
  the assets of any person designated by the Corporation under the control
  of the court and appoint a trustee to hold such assets if the Corporation
  demonstrates the likelihood that--
  `(A) such person is--
  `(i) an institution-affiliated party who is obligated to the institution
  or otherwise may be required to provide restitution to the institution; or
  `(ii) a debtor of the institution; and
  `(B) the assets of such person will be dissipated or otherwise placed
  beyond the jurisdiction of the court or Corporation before any recovery
  in favor of the institution may be completed unless a trustee is appointed.'.
SEC. 308. CONCEALMENT OF ASSETS FROM FDIC OR RTC ESTABLISHED AS CRIMINAL
OFFENSE.
  (a) IN GENERAL- Chapter 47 of title 18, United States Code, is amended by
  adding at the end the following new section:
`Sec. 1032. Concealment of assets from conservator or receiver of insured
financial institution
  `Whoever knowingly conceals from the Federal Deposit Insurance Corporation
  or the Resolution Trust Corporation, in any such corporation's capacity as
  conservator or receiver for any insured depository institution, any assets
  or property against which the corporation, as conservator or receiver,
  may have a claim shall be fined not more than $1,000,000, or imprisoned
  not more than 5 years, or both.'.
  (b) CLERICAL AMENDMENT- The table of sections for chapter 47 of title 18,
  United States Code is amended by inserting after the item relating to
  section 1031 the following new item:
`1032. Concealment of assets from conservator or receiver of insured financial
institution.'.
SEC. 309. MANDATORY EDUCATION FOR DIRECTORS OF DEPOSITORY INSTITUTIONS.
  Each appropriate Federal banking agency (as defined in section 3(q) of
  the Federal Deposit Insurance Act) shall establish a requirement that--
  (1) any individual who becomes a director of an insured depository
  institution (as defined in section 3(c)(2) of such Act) shall--
  (A) complete an educational course on the duties of directors of depository
  institutions within 6 months of assuming such position; and
  (B) file a certified statement of that fact with the institution; and
  (2) each director of any insured depository institution shall--
  (A) complete such educational course every 3 years while serving in such
  position; and
  (B) file a certified statement of that fact with the institution.
SEC. 310. GRAND JURY SECRECY.
  Section 3322(b) of title 18, United States Code, is amended to read
  as follows:
  `(b)(1) Upon the request of an attorney for the government (including, for
  purposes of subparagraph (A) of this paragraph, any financial institution
  regulatory agency), a court or the Attorney General may direct disclosures
  of matters occurring before a grand jury during an investigation of a
  banking law violation to identified personnel of such financial institution
  regulatory agency--
  `(A) for use in relation to any matter within the the jurisdiction of such
  regulatory agency; or
  `(B) to assist an attorney for the government to whom matters have been
  disclosed under subsection (a).
  `(2) The court or the Attorney General may direct a disclosure under
  paragraph (1) upon a finding of a substantial need.
  `(3) No disclosure may be made under this subsection pursuant to the
  direction of the Attorney General unless--
  `(A) the Attorney General has notified the court of the direction made by
  the Attorney General; and
  `(B) at least 2 business days have intervened between the date on which such
  notice was given to the court and the day on which such disclosure is made.'.
SEC. 311. EFFECT OF BANKRUPTCY PROCEEDINGS ON DUTY TO MAKE RESTITUTION.
  Title 11, United States Code, is amended--
  (1) in section 1328(a)(2), by inserting `or (a)(11)' after `section
  523(a)(5)'; and
  (2) in section 523(a)--
  (A) by striking `or' at the end of paragraph (9);
  (B) by striking the period at the end of paragraph (10) and inserting `;
  or'; and
  (C) by adding at the end the following new paragraph:
  `(11) for a restitution payment under section 3663 or 3664 of title 18,
  section 8 of the Federal Deposit Insurance Act, section 5239 of the Revised
  Statutes, or any similar State statute.'.
SEC. 312. AMENDMENTS RELATING TO CIVIL FORFEITURE.
  Section 981 of title 18, United States Code, is amended--
  (1) in subsection (a)(1)(C), by inserting `or a violation of section 1341
  or 1343 of such title affecting a financial institution' before the period;
  (2) in subsection (e)(3), by striking `(if the affected financial institution
  is in receivership or liquidation)'; and
  (3) in subsection (e)(4), by striking `(if the affected financial institution
  is not in receivership or liquidation)'.
SEC. 313. AMENDMENTS RELATING TO CIVIL PENALTIES.
  (a) FEDERAL DEPOSIT INSURANCE ACT-
  (1) Section 8(i)(2)(J) of the Federal Deposit Insurance Act (12
  U.S.C. 1818(i)(2)(J)) is amended by inserting `, except that an amount equal
  to the administrative costs incurred by the appropriate Federal banking
  agency shall be paid to such agency' after `deposited in the Treasury'.
  (2) Section 18(j)(4)(G) of the Federal Deposit Insurance Act (12
  U.S.C. 1828(j)(4)(G)) is amended by inserting `, except that an amount
  equal to the administrative costs incurred by the Corporation shall be
  paid to the Corporation' after `deposited in the Treasury'.
  (3) Section 7(j)(16)(G) of the Federal Deposit Insurance Act (12
  U.S.C. 1817(j)(16)(G)) is amended by inserting `, except that an amount
  equal to the administrative costs incurred by the appropriate Federal banking
  agency shall be paid to such agency' after `deposited in the Treasury'.
  (b) FEDERAL CREDIT UNION ACT- Section 206(k)(2)(J) of the Federal Credit
  Union Act (12 U.S.C. 1786(k)(2)(J)) is amended by inserting `, except that
  an amount equal to the administrative costs incurred by the Board shall
  be paid to the Board' after `deposited in the Treasury'.
  (c) REVISED STATUTES- Section 5239(b)(7) of the Revised Statutes (12
  U.S.C. 93(b)(7)) is amended by inserting `, except that an amount equal
  to the administrative costs incurred by the Comptroller shall be paid to
  the Comptroller' after `deposited in the Treasury'.
  (d) FEDERAL RESERVE ACT-
  (1) Section 29(g) of the Federal Reserve Act (12 U.S.C. 504(g)) is amended by
  inserting `, except that an amount equal to the administrative costs incurred
  by the Board shall be paid to the Board' after `deposited in the Treasury'.
  (2) Section 19(l)(7) of the Federal Reserve Act (12 U.S.C. 505(l)(7)) is
  amended by inserting `, except that an amount equal to the administrative
  costs incurred by the Board shall be paid to the Board' after `deposited
  in the Treasury'.
  (e) BANK HOLDING COMPANY ACT AMENDMENTS OF 1970- Section 106(b)(2)(F)(vii)
  of the Bank Holding Company Act of 1970 (12 U.S.C. 1972(2)(F)(vii)) is
  amended by inserting `, except that an amount equal to the administrative
  costs incurred by the agency that imposed such penalty shall be paid to
  such agency' after `deposited in the Treasury'.
  (f) BANK HOLDING COMPANY ACT OF 1956- Section 8(b)(4) of the Bank Holding
  Company Act of 1956 (12 U.S.C. 1847(b)(4)) is amended by inserting `,
  except that an amount equal to the administrative costs incurred by the
  Board shall be paid to the Board' after `deposited in the Treasury'.
  (g) HOME OWNERS' LOAN ACT- Section 10(i)(3)(D) of the Home Owners' Loan
  Act (12 U.S.C. 1467a(i)(3)(D)) is amended by inserting `, except that an
  amount equal to the administrative costs incurred by the Director shall
  be paid to the Director' after `deposited in the Treasury'.
TITLE IV--TAXPAYER RECOVERY ACT
SEC. 401. SHORT TITLE.
  This title may be cited as the `Taxpayer Recovery Act of 1990'.
SEC. 402. EXCEPTION TO DISCHARGES.
  (a) Subsection (a) of section 523 of title 11, United States Code,
  is amended--
  (1) by inserting `1328(a),' immediately before the phrase `or 1328(b)',
  (2) by striking out `or' at the end of paragraph (9),
  (3) by striking out the period at the end of paragraph (10) and inserting
  in lieu thereof a semicolon, and
  (4) by adding at the end thereof the following new paragraphs:
  `(11) for restitution that the debtor has been ordered to pay by any
  court of the United States, or of any State, in any criminal proceeding
  arising from any act that caused loss to any bank, savings association,
  or credit union; or
  `(12) for damage provided in any judgment, order, or consent decree entered
  in any court of the United States, or of any State, or in any settlement
  agreement entered into by the debtor, arising from any act involving fraud
  or reckless disregard for the law committed with respect to any bank,
  savings association, or credit union.'.
  (b) Section 523 of title 11, United States Code, is amended by adding at
  the end thereof the following new subsections:
  `(e) Any individual acting as a director, officer, or institution-affiliated
  party (as defined in section 3(u) of the Federal Deposit Insurance Act (12
  U.S.C. 1813(u))) of a bank, savings association, or credit union shall be
  considered to be acting in a fiduciary capacity with respect to the bank,
  savings association, or credit union for purposes of subsection (a)(4).
  `(f) Notwithstanding subsection (a)(2)(B)(ii) of this section, reliance
  by a creditor will not be required to establish an exception to discharge
  if the creditor is a financial regulatory agency that is a successor to
  a bank, savings association, or credit union.'.
  (c) Subsection (c) of section 523 of title 11, United States Code, is
  amended by--
  (1) striking out `Except as' and inserting in lieu thereof `(1) Except
  as', and
  (2) adding at the end thereof the following new paragraph:
  `(2) Notwithstanding any other provision of law, a complaint objecting to
  the discharge of any debt owed to--
  `(A) a bank, savings association, or credit union that is closed, is in
  receivership or conservatorship, or is sold to (or has its assets and
  liabilities assumed by) another bank, savings association, or credit union
  in a transaction assisted by a financial regulatory agency, or
  `(B) a financial regulatory agency,
may be filed on or before the date that is the later of 120 days after the
date of the debtor's first meeting of creditors or 120 days after the date
of the appointment of a conservator or receiver by a financial regulatory
agency for the bank, savings association, or credit union with respect to
which the debt arises.'.
  (d) Paragraph (2) of section 1328(a) of title 11, United States Code, is
  amended by striking out `section 523(a)(5)' and inserting in lieu thereof
  `section 532(a)'.
SEC. 403. EXEMPTIONS.
  (a) Section 522 of title 11, United States Code, is amended by adding at
  the end thereof the following new subsection:
  `(n) Notwithstanding subsections (b) and (l), or any other provision of State
  or Federal law, an individual debtor who has committed an act involving
  fraud or reckless disregard for the law, or is subsequently adjudicated
  to have committed an act involving fraud or reckless disregard for the law
  at any time during the pendency of his bankruptcy proceeding, with respect
  to any bank, savings association, or credit union that is in receivership
  or conservatorship, is sold (or has its assets and liabilities assumed
  by) another bank, savings association, or credit union in a transaction
  assisted by a financial regulatory agency, shall not exempt from property
  of the estate--
  `(1) more than $7,500 in value of the debtor's aggregate interest in any
  real property that the debtor, or a dependent of the debtor, uses as a
  residence or in a cooperative that owns property that the debtor, or a
  dependent of the debtor, uses as a residence, and
  `(2) the debtor's interest in any insurance policy or annuity.'.
  (b) Paragraph (1) of section 522(c) of title 11, United States Code, is
  amended by striking out `section 523(a)(1) or 523(a)(5)' and inserting in
  lieu thereof `paragraph (1), (5), (11), or (12) of section 523(a)'.
SEC. 404. EFFECTIVE DATE.
  The amendments made by this title shall take effect on the date of enactment
  of this Act.