SA 1038. Mrs. BOXER (for herself and Mr. Reid) submitted an amendment intended to be proposed by her to the bill S. 896, to prevent mortgage foreclosures and enhance mortgage credit availability; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:
SEC. __. PUBLIC-PRIVATE INVESTMENT PROGRAM; ADDITIONAL APPROPRIATIONS FOR THE SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF PROGRAM.
(a) Public-Private Investment Program.--
(1) IN GENERAL.--Any program established by the Federal Government to create a public-private investment fund shall--
(A) in consultation with the Special Inspector General of the Trouble Asset Relief Program, impose strict conflict of interest rules on managers of public-private investment funds that specifically describe the extent, if any, to which such managers may conduct transactions involving public-private investment funds that affect the value of assets--
(i) that are not part of such public-private investment funds; and
(ii) in which managers or significant investors in such funds have a direct or indirect financial interest;
(B) require each public-private investment fund to make a quarterly report to the Secretary of the Treasury that discloses the 10 largest positions of such fund;
(C) require each manager of a public-private investment fund to report to the Secretary of the Treasury any holding or transaction by such manager or a client of such manager in the same type of asset that is held by the public-private investment fund;
(D) allow the Special Inspector General of the Troubled Asset Relief Program, access to all books and records of a public-private investment fund, including all records of financial transactions in machine readable form;
(E) require each manager of a public-private investment fund to retain all books, documents, and records relating to such public-private investment fund, including electronic messages;
(F) require each manager of a public-private investment fund to acknowledge a fiduciary duty to both the public and private investors in such fund;
(G) require each manager of a public-private investment fund to develop a robust ethics policy that includes methods to ensure compliance with such policy;
(H) require investor screening procedures for public-private investment funds that include ``know your customer'' requirements at least as rigorous as those of a commercial bank or retail brokerage operation; and
(I) require each manager of a public-private investment fund to identify for the Secretary of the Treasury each investor whose interest in the fund totals at least 10 percent, in the aggregate;
(2) REPORT.--Not later than 45 days after the date of the establishment of a program described in paragraph (1), the Special Inspector General of the Troubled Asset Relief Program shall submit to Congress a report on the implementation of this section.
(b) Additional Appropriations for the Special Inspector General of the Troubled Asset Relief Program.--
(1) IN GENERAL.--Of amounts made available under section 115(a) of the Emergency Economic Stabilization Act of 2008 (Public Law 110-343), $15,000,000 shall be made available to the Special Inspector General of the Troubled Asset Relief Program (in this section referred to as the ``Special Inspector General''), which shall be in addition to amounts otherwise made available to the Special Inspector General.
(2) PRIORITIES.--In utilizing funds made available under this section, the Special Inspector General shall prioritize the performance of audits or investigations of recipients of non-recourse Federal loans made under the Public Private Investment Program established by the Secretary of the Treasury or the Term Asset Loan Facility established by the Board of Governors of the Federal Reserve System (including any successor thereto or any other similar program established by the Secretary
or the Board), to the extent that such priority is consistent with other aspects of the mission of the Special Inspector General. Such audits or investigations shall determine the existence of any collusion between the loan recipient and the seller or originator of the asset used as loan collateral, or any other conflict of interest that may have led the loan recipient to deliberately overstate the value of the asset used as loan collateral.
(c) Definition.--In this section, the term ``public-private investment fund'' means a financial vehicle that is--
(1) established by the Federal Government to purchase pools of loans, securities, or assets from a financial institution described in section 101(a)(1) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211(a)(1)); and
(2) funded by a combination of cash or equity from private investors and funds provided by the Secretary of the Treasury, the Federal Deposit Insurance Corporation, or the Board of Governors of the Federal Reserve System.


(As printed in the Congressional Record for the Senate on May 1, 2009.)