AMENDMENT TO DEFINITION OF MATERIAL LOSS AND NONMATERIAL LOSSES TO THE DEPOSIT INSURANCE FUND FOR PURPOSES OF INSPECTOR GENERAL REVIEWS.

SEC. 987. AMENDMENT TO DEFINITION OF MATERIAL LOSS AND NONMATERIAL LOSSES TO THE DEPOSIT INSURANCE FUND FOR PURPOSES OF INSPECTOR GENERAL REVIEWS.(a) In General.—Section 38(k) of the Federal Deposit Insurance Act (U.S.C. 1831o(k)) is amended—(1) in paragraph (2), by striking subparagraph (B) and inserting the following:“(B) Material loss defined.—The term ‘material loss’ means any estimated loss in excess of—“(i) $200,000,000, if the loss occurs during the period beginning on January 1, 2010, and ending on December 31, 2011;“(ii) $150,000,000, if the loss occurs during the period beginning on January 1, 2012, and ending on December 31, 2013; and“(iii) $50,000,000, if the loss occurs on or after January 1, 2014, provided that if the inspector general of a Federal banking agency certifies to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House 124 STAT. 1937 of Representatives that the number of projected failures of depository institutions that would require material loss reviews for the following 12 months will be greater than 30 and would hinder the effectiveness of its oversight functions, then the definition of ‘material loss’ shall be $75,000,000 for a duration of 1 year from the date of the certification.”;(2) in paragraph (4)(A) by striking “the report” and inserting “any report on losses required under this subsection,”;(3) by striking paragraph (6);(4) by redesignating paragraph (5) as paragraph (6); and(5) by inserting after paragraph (4) the following:“(5) Losses that are not material.—“(A) Semiannual report.—For the 6-month period ending on March 31, 2010, and each 6-month period thereafter, the Inspector General of each Federal banking agency shall—“(i) identify losses that the Inspector General estimates have been incurred by the Deposit Insurance Fund during that 6-month period, with respect to the insured depository institutions supervised by the Federal banking agency;“(ii) for each loss incurred by the Deposit Insurance Fund that is not a material loss, determine—“(I) the grounds identified by the Federal banking agency or State bank supervisor for appointing the Corporation as receiver under section 11(c)(5); and“(II) whether any unusual circumstances exist that might warrant an in-depth review of the loss; and“(iii) prepare and submit a written report to the appropriate Federal banking agency and to Congress on the results of any determination by the Inspector General, including—“(I) an identification of any loss that warrants an in-depth review, together with the reasons why such review is warranted, or, if the Inspector General determines that no review is warranted, an explanation of such determination; and“(II) for each loss identified under subclause (I) that warrants an in-depth review, the date by which such review, and a report on such review prepared in a manner consistent with reports under paragraph (1)(A), will be completed and submitted to the Federal banking agency and Congress.“(B) Deadline for semiannual report.—The Inspector General of each Federal banking agency shall—“(i) submit each report required under paragraph (A) expeditiously, and not later than 90 days after the end of the 6-month period covered by the report; and“(ii) provide a copy of the report required under paragraph (A) to any Member of Congress, upon request.”.124 STAT. 1938(b) Technical and Conforming Amendment.—The heading for subsection (k) of section 38 of the Federal Deposit Insurance Act (U.S.C. 1831o(k)) is amended to read as follows:“(k) Reviews Required When Deposit Insurance Fund Incurs Losses.—”.