AUDIT COSTS.

SEC. 2301. AUDIT COSTS. (a) Auditor Attestations.— Section 36 of the Federal Deposit Insurance Act (12 U.S.C. 1831m) is amended by striking subsection (e) and inserting the following: “(e) [Repealed]”. (b) Independent Audit Committees.— Section 36(g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1831m(g)(1)) is amended— (1) in subparagraph (A), by inserting “, except as provided in subparagraph (D)” after “management of the institution”; and (2) by adding at the end the following new subparagraph: “(D) Exemption authority.— “(i) In general.— An appropriate Federal banking agency may, by order or regulation, permit the independent audit committee of an insured depository institution to be made up of less than all, but no fewer than a majority of, outside directors, if the agency determines that the institution has encountered hardships in retaining and recruiting a sufficient number of competent outside directors to serve on the internal audit committee of the institution. 110 STAT. 3009–420 “(ii) Factors to be considered.— In determining whether an insured depository institution has encountered hardships referred to in clause (i), the appropriate Federal banking agency shall consider factors such as the size of the institution, and whether the institution has made a good faith effort to elect or name additional competent outside directors to the board of directors of the institution who may serve on the internal audit committee.”. (c) Public Availability.— Section 36(a)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1831m(a)(3)) is amended by adding at the end the following: “Notwithstanding the preceding sentence, the Corporation and the appropriate Federal banking agencies may designate certain information as privileged and confidential and not available to the public.”.