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Agenda for Financial Crisis Inquiry Commission Closed Session Meeting of
Tuesday, October 20, 2009
9:00am-3:30pm EDT
FCIC Offices
1717 Pennsylvania Avenue, NW, Suite 800
Washington, DC 20006
9:00-10:45am
10:45-12:30pm
12:30-1:30pm
1:30-3:15pm

FCIC Business Matters
Roundtable I
Lunch
Roundtable II

Agenda Item

Presentation

1) Call to Order

Chairman Angelides

2) Roll Call

Chairman Angelides

3) Approval of Minutes of Closed Session
Meeting of September 16, 2009 (Attached)

Chairman Angelides

4) Approval of Minutes of Public Meeting
of September 17, 2009 (Attached)

Chairman Angelides

5) Extension of Delegation of Authority
(Attached)

Chairman Angelides & Vice Chair Thomas

6) Report to Commission re: Legislative
Calendar and Schedule

Executive Director Tom Greene

7) Executive Director’s Report

Tom Greene

8) Review and Discussion of Preliminary
Draft Work Plan
(Materials forthcoming)

Tom Greene

9) Other Items of Business

All Commissioners

10) Roundtable I (10:45-12:30pm) with:
(Materials forthcoming)
a. Martin Baily, Senior Fellow in Economic Studies, Brookings Institution.
b. Simon Johnson, Ronald A. Kurtz Professor of Entrepreneurship, Sloan School of
Management, Massachusetts Institute of Technology.
c. Hal S. Scott, Harvard Law School, Nomura Professor and Director of the
Program on International Financial Systems at Harvard Law School.
11) Break for Lunch
Page 1 of 20

12) Roundtable II (1:30-3:15pm) with:
(Materials forthcoming)
a. Joseph Stiglitz, Professor, Columbia Business School, Graduate School of Arts &
and Sciences (Department of Economics) and the School of International and
Public Affairs.
b. John Taylor, Stanford University, Mary and Robert Raymond Professor of
Economics at Stanford University, and the Bowen H. and Janice Arthur McCoy
Senior Fellow, Hoover Institution.
c. Luigi Zingales, Robert C. McCormack Professor of Entrepreneurship and
Finance and the David G. Booth Faculty Fellow, University of Chicago Booth
School of Business
13) Adjournment

Chairman Angelides

Page 2 of 20

Financial Crisis Inquiry Commission
Agenda Item 3 for Closed Session Meeting of October 20, 2009
DRAFT Minutes of Closed Session Meeting
Wednesday, September 16, 2009

Agenda Item 1: Roll Call
Chairman Angelides asked Ms. Gretchen Newsom to call the roll of Commissioners: Present were
Phil Angelides, Bill Thomas, Brooksley Born, Byron Georgiou, Bob Graham, Doug Holtz-Eakin,
Heather Murren, John Thompson, and Peter Wallison. Keith Hennessey was absent.
Also participating in the meeting were: Irv Nathan, General Counsel to the House of Representatives,
Ariel Waldman, and other staff; Tim Blodgett, Chief Administrative Counsel, and Walt Edwards,
Deputy Chief Administrative Officer, of the House Chief Administrative Officer; Blake Chisam,
Staff Director and Chief Counsel, and Peg Perl, Stan Simpson, and Donald Sherman of the House
Committee on Standards of Official Conduct; Thomas Greene, Executive Director, FCIC; Gretchen
Newsom, assistant to Chairman Angelides; and Scott Ganz, assistant to Vice Chairman Thomas.
Chairman Angelides and Vice Chairman Bill Thomas made welcoming remarks, brief introductions,
and opening comments about the work of the Commission.
Agenda Item 2: Approval of Minutes of Meeting, August 19, 2009
Chairman Angelides introduced minutes from the FCIC meeting of August 19, 2009.
MOTION:

Thompson moved and Graham seconded a motion to adopt the meeting
minutes (attached).

APPROVED:

9-0.

Agenda Item 3: Ratification of Commission Rules and Procedures
Chairman Angelides proposed ratifying the rules and procedures (attached), which were tentatively
adopted at the August 19, 2009 meeting, with a proposed, technical amendment (attached). Mr.
Nathan explained the amendment to the Commissioners.
MOTION:

Holtz-Eakin moved and Georgiou seconded a motion to accept the proposed
rules with the amendment.

APPROVED:

9-0.

Agenda Item 4: Proposed Whistle Blower Protections
Chairman Angelides, at the request of Keith Hennessey, proposed rules for Whistle Blower
Protection (attached). Mr. Nathan explained the proposed rules to the Commissioners.

Page 3 of 20

MOTION:

Murren moved and Graham seconded the motion to accept the rules on Whistle
Blower Protection.

APPROVED:

9-0.

Agenda Item 5: Administrative and Personnel Update
Chairman Angelides and Vice Chairman Thomas provided an update on the FCIC Office location;
the organization of the Commission; and future FCIC meetings.
Chairman Angelides introduced Executive Director, Thomas Greene, to the Commissioners. Tom
Greene introduced himself and addressed the Commissioners and touched on his outlook for FCIC in
the next 30-90 days.
Agenda Item 6: Extension of Delegation Authority
Chairman Angelides asked for an extension of delegation authority through October 31, 2009.
MOTION:

Graham moved and Holtz-Eakin seconded to approve the extension of
delegation authority (attached).

APPROVED:

9-0.

Agenda Item 7: Donations of Goods and Services – Legal Opinion and Delegation of Authority
Chairman Angelides introduced Peg Perl of House Committee on Standards of Official Conduct and
Tim Blodgett who addressed the Commissioners on federal solicitation rules. Chairman Angelides
indicated that Mr. Greene would return with specific recommendations on this item once a General
Counsel was in place.
Agenda Item 8: Initial Discussion of Ethics Rules
Chairman Angelides and Commissioners continued their ethics discussion and will follow-up on this
topic in the future. Chairman Angelides indicated that Mr. Greene would return with specific
recommendations on this item once a General Counsel was in place.
Agenda Item 9: Other Items of Business
No other items of business were presented before the Commission.
Agenda Item 10: Recess until Dinner at 7PM
Chairman Angelides called for a recess of meeting, at 5:56PM, until the 7PM dinner.
Agenda Item 11: Dinner and Agenda Item 12: Discussion of Commission Scope of Work,
Work Plan, and Timeline
The Commission met over dinner and discussed the Commission’s scope of work, work plan, and
timeline.
Page 4 of 20

Agenda Item 13: Adjournment
Chairman Angelides adjourned the meeting without any dissent from the Commission.

Page 5 of 20

Financial Crisis Inquiry Commission
Agenda Item 3 for Closed Session Meeting of October 20, 2009
Minutes of Closed Session Meeting of September 16, 2009
ATTACHMENT
Minutes of Closed Meeting of Wednesday, August 19, 2009

Agenda Item 1: Call to Order
Chairman Angelides called the closed session meeting to order at 12:02pm EDT.
Agenda Item 2: Roll Call
Chairman Angelides called the roll of Commissioners: Present were Phil Angelides, Bill Thomas,
Brooksley Born, Byron Georgiou, Keith Hennessey, Doug Holtz-Eakin, Heather Murren, John W.
Thompson, and Peter Wallison. Bob Graham joined the call at the top of discussion of Agenda
Item 3.
Also participating on the call were: Irv Nathan, General Counsel to the House of Representatives,
Ariel Waldman, and other staff; Tim Blodgett, Chief Administrative Counsel, and Walt Edwards,
Deputy Chief Administrative Officer, of the House Chief Administrative Officer; Blake Chisam,
Staff Director and Chief Counsel of the House Committee on Standards of Official Conduct and his
staff; Gretchen Newsom, assistant to Chairman Angelides; and, Alex Brill and Scott Ganz, assistants
to Vice Chairman Thomas.
Chairman Angelides and Bill Thomas, Vice Chairman, made welcoming remarks, brief introductions,
and opening remarks about the work of the Commission.
Agenda Item 3: Consideration of Commission Rules
Chairman Angelides introduced draft Rules of Procedures for the Commission and Mr. Nathan
provided an overview and answered questions from Commissioners. The draft rules were reviewed
section by section and amendments were proposed.
MOTION:

Born moved and Wallison seconded a motion to adopt the proposed rules, as
amended (see attached); to have the rules be brought back at the September
meeting for purposes of confirming agreed upon language; and to request that
Mr. Nathan draft an amendment pertaining to whistle blowers and related
protections.

APPROVED:

Motion passed 10-0.

Agenda Item 4: Update on Administrative/Personnel Matters

Page 6 of 20

Chairman Angelides and Vice Chairman Thomas gave an update on administrative matters; including
the procurement of office space; the execution of the MOU with the General Services Administration
(GSA); and swearing-in procedures.
Chairman Angelides and Vice Chairman Thomas reported on the progress made thus far on the
selection of an executive director for FCIC. Chairman Angelides requested that Commissioners
forward resumes to himself and a copy to Ms. Newsom.
Agenda Item 5: Consideration of Delegation Authority
Chairman Angelides introduced the proposed delegation authority and gave an overview.
MOTION:

Holtz-Eakin moved and Graham seconded a motion to adopt the proposed
delegation authority (see attached).

APPROVED:

Motion passed 10-0.

Agenda Item 6: Briefing on Legal Matters, including Record Retention and Donations of Goods
and Services
Mr. Nathan briefed the Commission on current statutes that are and are not applicable to the
Commission. Mr. Nathan advised that Commission is not subject to FOIA or sunshine laws, but
advised Commissioners to keep all emails and correspondence pertaining to FCIC until such a time
that the Executive Director develops a record retention plan with the National Archivist. All official
documents of the Commission must be retained and archived.
For the September Commission meeting, Mr. Blodgett will prepare a memo on rules and parameters
for the acceptance of goods and services by the Commission
Agenda Item 7: Briefing on Financial Disclosure, Statutory Ethics Requirements, and
Commission Ethics Code
Chairman Angelides informed the Commission that at the conclusion of the FCIC meeting on
September 17th, Mr. Chisam will provide a voluntary workshop on ethics for interested
commissioners.
Mr. Chisam led a discussion on financial disclosure statements and the status of Commissioners as
special government employees (those who work 130 days or fewer in a 365 day period).
Although it is the opinion of the House Committee on Standards of Official Conduct that
Commissioners are not obligated to file financial disclosures, it was recommended by Mr. Chisam
that Commissioners do so. Mr. Chisam offered the assistance of his office in completing these
documents by pre-screening the documents for completeness; Stan Simpson will provide this
assistance and is reachable at 202-225-7103 or stan.simpson@mail.house.gov.
Chairman Angelides and Vice Chairman Thomas requested that Mr. Chisam create a working draft of
ethics rules to be discussed at the September 16th meeting.

Page 7 of 20

MOTION:

Born moved and Thompson seconded a motion to indicate that although the
House Committee on Standards of Official Conduct has advised
Commissioners that they are not required to file financial disclosures, the
Commission chooses to file disclosures voluntarily.

APPROVED:

Motion passed 10-0.

MOTION:

Graham moved and Holtz-Eakin seconded a motion as follows:
Whereas, the Commission estimates that no appointed Commissioners of this
Commission are expected to perform temporary duties for more than 130 days
during the next 365 calendar days; and
Whereas, the Commission expects to hire additional employees to serve as fulltime staff handling the daily operations of the Commission;
I move that all appointed Commissioners of this Commission are hereby
designated “special government employees” under 18 U.S.C. § 202(a) for the
period of August 19, 2009 to August 18, 2010, and to authorize the Chair and
Vice-Chair to notify the Committee on Standards of Official Conduct of such
designation in writing.

APPROVED:

Motion passed 10-0.

Agenda Item 8: Briefing on Travel Reimbursement, Per Diem, and Compensation
Chairman Angelides reviewed with Commissioners the briefing on travel, per diem, and
Commissioner compensation.
Agenda Item 9: Commission Meeting of September 16 and 17
Chairman Angelides and Vice Chairman Thomas reviewed logistics of the upcoming September
FCIC meetings and requested that each Commissioner prepare a brief opening statement. Chairman
Angelides welcomed input on the structure of the meeting and what matters should be covered during
the public meeting of September 17th.
Agenda Item 10: Future Commission Meetings for 2009
The Commission agreed to meet on Tuesday, October 20th and Tuesday, November 17th, and to meet
every third Tuesday of the month through June 2010, with the exception of December wherein two
Commissioners voiced conflicts with December 15th, and also where holidays prevent the normal
meeting schedule.
It was suggested that some future FCIC public meetings be located outside of Washington D.C.
Agenda Item 11: Other Items of Discussion or Business

Page 8 of 20

Hennessey requested that once the Commission staff is hired, a general email account be created for
the public to deliver feedback and input to the Commission.
Agenda Item 12: Adjournment
Chairman Angelides thanked the Commissioners for their participation; and thanked Mr. Blodgett,
Mr. Edwards, Mr. Nathan, Mr. Chisam and their staffs for their work; and adjourned the meeting at
2:06pm EDT.

APPROVED:

9-0, September 16, 2009

Page 9 of 20

Financial Crisis Inquiry Commission
Agenda Item 3 for Closed Session Meeting of October 20, 2009
Minutes of Closed Session Meeting of September 16, 2009
ATTACHMENT
FCIC Rules of Procedure and Technical Amendment

--Financial Crisis Inquiry Commission Rules of Procedure
I.

Authority Governing the Commission’s Operations

The FCIC was established by the Fraud Enforcement and Recovery Act of 2009 (“FERA”), P.L. 11121, 123 Stat. 1617. The FCIC’s operations shall comply with the FERA, as amended, and with these
FCIC Rules of Procedure (FCIC Rules), as adopted and amended. To the extent the FCIC Rules
conflict with the FERA or any provision of federal law, federal law controls. When the FCIC
encounters in an official meeting or hearing a situation for which specific rules are not provided for in
the FERA or in these FCIC Rules, the FCIC shall adhere to the provisions of Robert’s Rules of Order,
as applicable.
II.

Conducting Commission Business

At meetings or hearings of the Commission, there shall be a presiding Commissioner.
The
Chairman shall be the presiding Commissioner when he is present. In the Chairman’s absence, the
Vice-Chairman shall be the presiding Commissioner. If neither is present, then a member of the
Commission designated by the Chair will serve as the presiding Commissioner.
The presiding Commissioner has the authority to ensure the orderly conduct of the Commission’s
business. This power includes, without limitation, recognizing members of the public to speak,
imposing reasonable limitations on the length of time a speaker may hold the floor, determining the
order in which members of the Commission may speak or question witnesses, conducting votes of
members of the Commission, and designating Commissioners to conduct specified functions in
connection with meetings or hearings.
III.

Meetings
A.

Generally

The Commission may conduct either open or closed meetings, as the Chairman and Vice Chairman,
acting jointly, may determine at their discretion. For meetings designated as open, the Commission
may, in its discretion, elect to have all or a portion of the meeting be closed.
Under the FERA, the Commission is not subject to the Federal Advisory Committee Act. The
Commission is also not subject to the Freedom of Information Act or the Government in Sunshine
Act.

Page 10 of 20

B.

Notice to Commissioners

All meetings shall be noticed by email to each Commissioner by the Chairman or his designee.
Meetings held in the regular course must be noticed at least seven (7) days in advance. Meetings held
pursuant to exigent circumstances must be noticed at least forty-eight (48) hours in advance.
Whether exigent circumstances exist will be determined jointly by the Chairman and Vice Chairman.
Meeting notices shall provide the time and place of the meeting and an agenda. Meetings may
include sessions with selected individuals or groups, in addition to Commissioners.
C.

Revised Agenda

Commissioners wishing to add or delete items from a meeting agenda shall notify the Chairman and
Vice Chairman of the proposed change or changes to the agenda not less than forty-eight (48) hours
before the scheduled meeting (or for a meeting held pursuant to exigent circumstances not less than
twenty-four (24) hours before the scheduled meeting), and in any event should take good-faith steps
to provide such notice as soon as possible. The Chairman and Vice Chairman, acting jointly, shall
make an agreed-upon determination as to any additions or deletions to the agenda.
D.

Public Notice

If all or part of a regularly-scheduled meeting is to be open to the public, notice will be provided at
least seven (7) days in advance by publication in the Federal Register or the Congressional Record
and any other publications selected by the Commission, and shall include notice of agenda items open
to the public. Meetings held pursuant to exigent circumstances must be noticed at least forty-eight
(48) hours in advance.
E.

Minutes

Minutes of each meeting shall be prepared by the FCIC Director or the Director’s designee,
distributed to each Commissioner, and maintained with official records of the Commission. The
minutes will include a record of the persons present (including the names of Commission members,
staff and witnesses), and a description of the matters discussed and conclusions reached, and all
copies of reports received, issued or approved by the FCIC.
IV.

Hearings
A.

Generally

Hearings shall be open to the public except such portions as the Commission or the Chairman and the
Vice Chairman acting jointly determine to be closed.
B. Notice of Hearing
If all or part of a regularly-scheduled hearing is to be open to the public, notice shall be provided at
least seven (7) days in advance in the Congressional Record and other publications selected by the
Commission, and shall include a listing of the agenda items open to the public. Hearings held
pursuant to exigent circumstances must be noticed at least forty-eight (48) hours in advance.
C.

Witness Statements
Page 11 of 20

For the benefit of the members of the Commission and staff, witnesses who are to appear before the
FCIC who wish to provide an opening statement should endeavor to file with the Commission at least
three (3) business days in advance of their appearance (and in any event shall file with the
Commission no less than two (2) days in advance of their appearance, or 24 hours in advance of a
meeting scheduled under exigent circumstances) twenty (20) copies of a written statement of their
testimony and proposed exhibits. Witnesses’ opening statements and exhibits shall be kept nonpublic by the Commission until no earlier than the day of the witnesses’ testimony.
Witnesses’ oral testimony may be limited to a brief summary of their submission.
Testimony at hearings before the FCIC may be conducted under oath, at the direction of the Presiding
Commissioner. The FCIC may question witnesses, who may be represented by counsel at FCIC
hearings.
D.

Public Participation

Members of the public may attend any portion of a hearing that is not closed to the public. The
Chairman may decide to exclude oral comment periods during a hearing. Members of the public
may, at the discretion and direction of the Chairman or presiding Commissioner, offer oral comment.
Members of the public may submit written statements to the FCIC at any time.
E.

Transcripts

A transcript of each FCIC hearing shall be made and retained by the FCIC in the official Commission
records. The Director shall review and correct the transcript before distribution. Copies of transcripts
of open and closed meetings shall be provided to each Commissioner upon request. Copies of
transcripts of all open hearings or open portions of hearings shall be made available to the public
upon request.
V.

Commissioner Voting at Meetings and Hearings

To transact business at a meeting or hearing, as required by the FERA, § 5(b)(4)(B), a quorum of the
FCIC shall consist of six (6) Commissioners. Once a quorum is present, any motion at a meeting
shall require a majority of those present and voting, so long as the quorum remains; at a hearing,
procedural motions related to the Commission’s conduct of the hearing shall not require a quorum
and may be carried by a majority of the Commissioners present.
There shall be no proxy voting.
VI.

Eligibility to Vote

At a meeting or hearing of the Commission, when a decision or recommendation of the Commission
is required, the presiding Commissioner will request a motion for a vote. Any member, including the
presiding Commissioner, may make a motion for a vote. So long as a quorum is present,
Commission business shall be transacted by a majority vote of the members present, except for the
issuance of subpoenas under Section 5(d)(2)(B)(iii). Each Commissioner shall have a single vote
and, for votes requiring a majority vote as referenced above, his or her vote shall be entered by roll
call during meetings or by written document outside of ongoing meetings.
Page 12 of 20

VII.

Staff

All staff shall be appointed and terminated by the Chairman and Vice Chairman, acting jointly.
VIII. Subcommittees and Agents of the Commission
The FERA requires the Commission to address twenty-two (22) specific causes of the current
financial and economic crisis, § 5(c)(1)(A)-(V), and to address the causes of the collapse of each
major financial institution that failed or was likely to have failed if not for the receipt of government
assistance, id. § 5(c)(2). The statute further provides that any subcommittee, member, or agent of the
Commission may, if authorized by the Commission, take any action which the Commission is
authorized to take under § 5(d)(8) of the FERA. To address this complex set of assignments, at the
direction of the Chairman, any subcommittee on any topic may be formed by the FCIC.
The Chairman, in consultation with the Vice Chairman, shall propose the creation, charter, and
membership of subcommittees. The Commission shall promptly after such a proposal vote on the
existence, charter, and membership of the proposed subcommittee. Each subcommittee must have
two or more Commissioners, with staff as may be appropriate. Any Commissioner that is not a
member of a given subcommittee may participate in the business of that subcommittee as a member
ex officio and without voting rights.
At meetings or hearings of a subcommittee, the Chair of the given subcommittee shall preside. In the
absence of the Chair of the subcommittee, a designee of the subcommittee Chair shall preside.
FCIC subcommittees shall be subject to the FCIC Rules to the same extent as the full Commission,
except that subcommittees may pass any motion by a majority of the Commissioners present
regardless of whether a quorum of the Commission is present.
A subcommittee may not issue a subpoena. If a subcommittee wishes to have a subpoena issued, the
subcommittee shall request that the full Commission issue the subpoena and the Commission may in
its discretion issue the requested subpoena pursuant to Section 5(d)(2)(B)(iii) of the FERA.
IX.

Reporting to the President and Congress
A.

Submission of Report and Testimony

The report of the Commission and appearance before and consultations with Congress are governed
by FERA § 5(h), which provides that the FCIC’s report is due to the President and Congress on
December 15, 2010, and that the Chairperson shall, within 120 days after the date of the report’s
submission, appear before the Senate Banking, Housing and Urban Affairs Committee and the House
Financial Services Committee.
B.

Vote on Report

The full Commission shall vote on approval and submission to the President and Congress of the
Commission’s report. The Chairman shall set the time and date for a meeting of the Commission for
the purpose of voting on approval and submission of the report, which date shall be no later than 30
days before its due date. Notice of this meeting must be provided to all Commissioners no less than
one week prior to the date of the meeting. Commissioners who are unable to attend the meeting at
Page 13 of 20

which the vote on approval and submission is scheduled may vote telephonically or by email by
transmitting their vote in either manner to a staff member designated by the Chairman. Approval and
submission requires a majority of the votes of those Commissioners physically present and voting and
those who vote telephonically or by email.
C.

Additional or Dissenting Views

Commissioners may submit additional or dissenting views for publication in the report submitted to
the President and Congress. They may be submitted by one or more Commissioners. They are to be
provided to the staff member designated by the Chairman by a time designated by the Chairman (that
shall be prior to the final deadline for completion of all report material), and the staff member shall
promptly circulate to all Commissioners all additional and dissenting views that are received.
Additional or dissenting views not provided by the time specified by the Chairman will not be
included in the report submitted to the President and Congress.
X.

Budget

Under the FERA, § 5(j): “There is authorized to be appropriated to the Secretary of the Treasury such
sums as are necessary to cover the costs of the Commission.” The Commission’s fiscal year spending
plan approved by the Commission shall govern the Commission’s activities and expenditures.
Spending deviations exceeding $50,000, or reprogramming of more than $50,000 from one of the
plan's spending categories to another, shall be approved by the Chairman and Vice Chairman and
noticed to all Commissioners.
XI.

Non-staff Expenditures and Contracting

No consultants or other outside personnel, whether their services are obtained by contract, detail,
volunteering, or a remunerative agreement, may be hired by the Commission without the approval of
the Commission or approval of a person delegated by the Commission to exercise such authority, and
all such proposed arrangements shall be noticed to all Commissioners.
XII.

Record Keeping
A.

Governing Law

The FCIC is a “federal agency” for purposes of the federal records management provisions at 44
U.S.C. § 2901, et seq., and therefore is subject to certain record-keeping requirements. See 44 U.S.C.
§ 2901(14) (defining federal agency to include, among other things, “any establishment in the
legislative . . . branch” except the Senate or House of Representatives); FERA, § 5(a) (providing that
the FCIC is “established in the legislative branch”).
B.

Scope of Record-Keeping Obligations

The FCIC does not need to preserve every document; rather, the FCIC “shall make and preserve
records containing adequate and proper documentation of the organization, functions, policies,
decisions, procedures, and [its] essential transactions.” 44 U.S.C. § 3101.
C.

Record-Keeping Program Requirements
Page 14 of 20

The FCIC will “establish and maintain an active, continuing program for the economical and efficient
management of the records of the agency.” Id. § 3102. The program must provide for “effective
controls over the creation and over the maintenance and use of records in the conduct of current
business,” id. at § 3102(1); must establish safeguards against the removal or loss of records, including
making it known to FCIC officials and employees “that records in the custody of the agency are not
to be” destroyed except in accordance with 44 U.S.C. §§ 3301-3314 (and therefore should only be
destroyed after consultation with counsel), see id. § 3105(1); and must inform employees of penalties
provided by law for the unlawful removal or destruction of records, see id. § 3105(2).
D.

Cooperation with National Archivist

The National Archivist has certain oversight authority over the FCIC’s record-keeping, including but
not limited to, that the FCIC is required to notify the Archivist of “any actual, impending, or
threatened unlawful removal, defacing, alteration, or destruction of records in [the FCIC’s] custody,”
id. § 3106, and the Archivist may inspect the FCIC’s “records management programs and practices,”
id. §§ 2904(c)(7) & 2906, and may report to congressional committees and OMB on its evaluations of
the FCIC’s compliance in this regard, id. § 2904(c)(8). The FCIC will comply with federal law in its
record-keeping practices and interactions with the Archivist.
XIII. Modification of Existing Rules
These FCIC Rules may be amended by a majority vote of the Commissioners serving at the time.
Any changes proposed to these FCIC Rules shall be reviewed by counsel and staff as directed by the
Commission, for their legality, soundness, sufficiency, and appropriateness prior to their adoption or
approval unless a majority of Commissioners determines that such a review is not necessary.

APPROVED and RATIFIED with below technical amendment:

9-0, September 16, 2009

---

Pursuant to Rule XIII of the FCIC Rules of Procedure (FCIC Rules), the Commission amends Rule
III(D) of the FCIC Rules so as to replace the phrase “Congressional Record and“ with the phrase
“Federal Register or,” thus causing the as-amended Rule III(D) to read as follows:
D.

Public Notice

If all or part of a regularly-scheduled meeting is to be open to the public, notice will be provided at
least seven (7) days in advance by publication in the Federal Register or any other publications
selected by the Commission, and shall include notice of agenda items open to the public. Meetings
held pursuant to exigent circumstances must be noticed at least forty-eight (48) hours in advance.

Page 15 of 20

Financial Crisis Inquiry Commission
Agenda Item 3 for Closed Session Meeting of October 20, 2009
Minutes of Closed Session Meeting of September 16, 2009
ATTACHMENT
Proposed Whistleblower Protections

Pursuant to Rule XIII of the FCIC Rules of Procedure (FCIC Rules), the Commission amends the
FCIC Rules by adding the following after FCIC Rule XIII:
XIV. Policy of Encouraging Knowledgeable Individuals to Share Relevant Information with
the Commission.
In the interests of securing access to the most complete source of information on topics critical to the
work of the Commission, it shall be the Commission’s policy to encourage persons with relevant
information to provide such information to the Commission under terms and conditions which are
beneficial to the Commission and protective of such persons’ rights and interests. Accordingly, the
Commission shall accommodate, consistent with legal obligations, reasonable requests for anonymity
and confidentiality by those providing information (including but not limited to witness testimony) to
the Commission.
Further, the Commission shall take appropriate steps to help ensure that no corporation, partnership,
union, or other institution will retaliate or discriminate against any current or former employee or
agent thereof as a result of providing information to the Commission. It shall be the practice of the
Commission to cooperate fully with any law enforcement agency or other investigation, regulatory or
other, brought under applicable law against those who allegedly take retaliatory or other adverse
action against any persons for providing information to the Commission.

APPROVED:

9-0, September 16, 2009

Page 16 of 20

Financial Crisis Inquiry Commission
Agenda Item 3 for Closed Session Meeting of October 20, 2009
Minutes of Closed Session Meeting of September 16, 2009
ATTACHMENT
Extension of Delegation Authority

Delegation to execute agreements and contracts
on behalf of the Financial Crisis Inquiry Commission
Pursuant to the authority set forth in Public Law 110-21(d)(3) that allows the Financial Crisis Inquiry
Commission to enter into contracts to enable the Commission to conduct its business; and,
Now after a quorum of the Financial Crisis Inquiry Commission has been established; and,
After a vote of the Commissioners present and voting; it is
Hereby delegated to the Chairman of the Commission the authority to enter into agreements on behalf
of the Financial Crisis Inquiry Commission in order to facilitate the work of the Commission. This
delegation is effective until October 31, 2009, unless revoked earlier.
The Chairman may delegate this authority to the Vice-Chairman in order to expedite the business of
the Commission. If the Chairman does delegate to the Vice-Chairman, the delegation shall remain in
effect until October 31, 2009, unless revoked earlier.
In addition, any actions taken by the Chairman and the Vice-Chairman in order to establish the
Commission, and agreements signed by the Chairman or the Vice-Chairman, are hereby ratified by
the Commission.
APPROVED:

9-0, September 16, 2009

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Financial Crisis Inquiry Commission
Agenda Item 4 for Closed Session Meeting of October 20, 2009
Minutes of Public Meeting
Thursday, September 17, 2009
9:00-11:30am EDT
Longworth House Office Building, Hearing Room 1310, Washington, DC

Agenda Item 1: Roll Call
Chairman Angelides called the meeting to order. All Commissioners were present, including
Commissioners Born, Hennessey, Georgiou, Graham, Vice Chairman Thomas, Murren, Holtz-Eakin,
Thompson, and Wallison.
Agenda Item 2: Welcome and Introductions
Chairman Angelides gave opening remarks about the Commission’s work and mission, and
acknowledged Vice Chairman Thomas for his efforts to date.
Agenda Item 3: Announcements
Chairman Angelides announced the Commission’s appointment of Thomas Greene (present) as
Executive Director of the Commission.
Chairman Angelides stated that the Commission has adopted rules of procedures, which specifically
include whistleblower protections.
Agenda Item 4: Statements by Commissioners
Each commissioner gave individual opening remarks.
Agenda Item 5: Discussion of Commission Scope of Work, Work Plan, and Timeline
Chairman Angelides emphasized the urgency of the work, noting the importance of the commission’s
work for policy makers and the public.
Chairman Angelides noted that he and Vice Chairman Thomas have met with the chairs and ranking
members of the relevant committees of jurisdiction in the House and Senate.
Vice Chairman Thomas introduced Gretchen Newsom and Scott Ganz as members of the
commission’s staff. The Vice Chairman also stated that the commission’s office in Washington, DC
will soon be up and running with a website, contacts, and information.
Chairman Angelides and Vice Chairman Thomas expressed thanks to the staff of the Chief
Administrative Office of the House, the House Counsel, the House Committee on Standards of
Official Conduct, and the staff of the commission.

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Chairman Angelides outlined part of the commission’s schedule, highlighting the end of October as
the goal for having in place key leadership staff, and noting that in the next 30 days, the
commission’s staff will present the commission with a fuller timeline that, once complete, will be
presented to the public.
The Chairman stated that it is expected that, before the end of this year, the inquiry will be fully
underway, with public hearings to be held by December.
Agenda Item 6: Other Items of Business
There were no other items of business.
Agenda Item 7: Adjournment
Chairman Angelides requested a motion to adjourn the meeting.
MOTION:

Thomas moved and Wallison seconded a motion to adjourn the meeting.

APPROVED:

10-0.

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Financial Crisis Inquiry Commission
Agenda Item 5 for Closed Meeting of October 20, 2009
Extension of Delegation Authority

Delegation to execute agreements and contracts
on behalf of the Financial Crisis Inquiry Commission
Pursuant to the authority set forth in Public Law 110-21(d)(3) that allows the Financial Crisis Inquiry
Commission to enter into contracts to enable the Commission to conduct its business; and,
Now after a quorum of the Financial Crisis Inquiry Commission has been established; and,
After a vote of the Commissioners present and voting; it is
Hereby delegated to the Chairman of the Commission the authority to enter into agreements on behalf
of the Financial Crisis Inquiry Commission in order to facilitate the work of the Commission. This
delegation is effective until December 31, 2009, unless revoked earlier.
The Chairman may delegate this authority to the Vice-Chairman in order to expedite the business of
the Commission. If the Chairman does delegate to the Vice-Chairman, the delegation shall remain in
effect until December 31, unless revoked earlier.
In addition, any actions taken by the Chairman and the Vice-Chairman in order to establish the
Commission, and agreements signed by the Chairman or the Vice-Chairman, are hereby ratified by
the Commission.
Dated:

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Financial Crisis Inquiry Commission
Agenda Item 8 for Closed Session Meeting of October 20, 2009

Preliminary Draft Work Plan for
the Report of the Financial Crisis Inquiry Commission

I.

Principles
The following are the principles that should guide the work of the commission as
it undertakes its inquiry.
•
•
•

•
•

•

II.

The commission should provide the public, policy makers, regulators, and
market participants with a better understanding of the causes of the
financial crisis.
The work of the commission should be based on facts, not opinion, with a
rigorous process to ensure the validity and accuracy of facts and evidence.
The report of the commission should be an unbiased historical accounting
of the policies, events, and practices that contributed to the financial
crisis. It will be based on a thorough review and analysis of all known,
credible sources and work already done coupled with an aggressive
investigation which uncovers new, critical facts and evidence.
The commission will pursue facts and evidence as needed to conduct a full
and thorough inquiry through strategic investigative techniques, including
if necessary, the use of compulsory process.
The commission will present its work in a clear, understandable, and
compelling manner. That work will include a treatment of the larger forces
that drove the crisis as well as real and tangible examples of the practices
that existed in the marketplace that also helped bring about the crisis.
The products of the inquiry will include the final report, interim reports,
public hearings, and video materials. The commission will use traditional
media, new media, and the web to maximize the accessibility to its work.

Outline of the Commission’s Report
What follows is a working outline of the Commission’s report. This outline is
designed to provide a logical sequence of chapters and to logically categorize the
specific areas of examination called out in the statute. Specific examples of the
practices and actions taken by institutions and individuals at all levels of the
marketplace will be woven throughout the narrative.
It should be noted that while each specific statutory study area is listed once, a
number of areas of examination will in all probability be covered in more than
one section, given the interconnected nature of the issues to be examined. In
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addition, this outline is not meant to draw conclusions but rather attempts to
create an initial structure for the ultimate framework of the report. Further, as
indicated in Section III, while this outline suggests an initial conceptual approach
to the report, staff will move forward on the various “chapters” of this report
concurrently given the timeframe for completion of the Commission’s work.
Indeed, the commission’s hearings and interim reports may not proceed in the
same sequence as the outline. Finally, it is recognized that this work plan will
evolve as the inquiry proceeds and as investigative results warrant.
•

The Crisis. This section will describe the nature of the financial and
economic crisis - from the cataclysmic events of 2007 and 2008 to the
downward spiral in the financial sector to the economic and social
consequences of the crisis, in relation to both its impact on the
macroeconomy and on individual households. This includes widespread
housing defaults and foreclosures; failure and near failure of financial
institutions; impairment of credit markets; loss of asset values; and
dramatic increases in unemployment.
After describing the crisis, the report would go back to “trace the fuses
that set off the explosion.”

•

The Backdrop. This section would examine the underlying
macroeconomic, policy, and regulatory framework as it existed and
evolved over the past three decades, with a particular focus on the period
of ____ to _____. It would examine, among other things, the changing
contour of the U.S. and global economies, monetary policy, the changing
shape of the financial system, changes in financial market and business
practices and associated changes in financial incentives, and changes in
law and regulation affecting the financial sector. The statutory provisions
examined in this section would include:
i. “The global imbalance of savings, international capital flows, and
fiscal imbalances of various governments” (Public Law 111-21, §
5(c)(1)(c));
ii. “Monetary policy and the availability and terms of credit” (Public
Law 111-21, § 5(c)(1)(d));
iii. “Affiliations between insured depository institutions and securities,
insurance, and other types of nonbanking companies” (Public Law
111-21, § 5(c)(1)(j));
iv. “Tax treatment of financial products and investments” (Public Law
111-21, § 5(c)(1)(f)); and
v. “The concept that certain institutions are `too-big-to-fail' and its
impact on market expectations” (Public Law 111-21, § 5(c)(1)(k)).

•

Home Mortgages/Real Estate Lending. This section would examine the
development and evolution of the single family housing/mortgage market,
including but not limited to the dramatic explosion of subprime lending;
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the role of Fannie Mae, Freddie Mac, investment banks, and other home
mortgage lending entities; practices ranging from origination through
securitization; and fraud in this sector. For the purposes of this initial
outline, this section would also examine the commercial real estate sector,
although this subject would probably be treated separately in the final
report. This section would cover the following statutory sections:
i. “Fraud and abuse in the financial sector, including fraud and abuse
towards consumers in the mortgage sector” (Public Law 111-21, §
5(c)(1)(a));
ii. “Lending practices and securitization, including the originate-todistribute model for extending credit and transferring risk” (Public
Law 111-21, § 5(c)(1)(i));
iii. “The legal and regulatory structure of the United States housing
market” (Public Law 111-21, § 5(c)(1)(o)); and
iv. “Financial institutions and government-sponsored enterprises”
(Public Law 111-21, § 5(c)(1)(u)).
•

Financial Products and Practices This section will look at the financial
market practices and financial products, beyond those covered in the
section above, which may have driven, contributed to, or amplified the
financial crisis. This section will examine, among other things, derivatives
including credit default swaps, compensation practices, leverage, creation
of off-balance sheet entities, short selling, and fraud. This section will also
examine the breakdown of corporate risk management mechanisms and
practices and how they might have exacerbated the crisis. This section will
be closely related to the above section on housing and commercial real
estate given the interconnection between the subject matters. Statutory
provisions covered would include:
i. “Derivatives and unregulated financial products and practices,
including credit default swaps” (Public Law 111-21, § 5(c)(1)(p);
ii. “Financial institution reliance on numerical models, including risk
models and credit ratings” (Public Law 111-21, § 5(c)(1)(r));
iii. “Short-selling” (Public Law 111-21, § 5(c)(1)(q));
iv. “Compensation structures” (Public Law 111-21, § 5(c)(1)(m));
v. “Changes in compensation for employees of financial companies,
as compared to compensation for others with similar skill sets in
the labor market” (Public Law 111-21, § 5(c)(1)(n));
vi. “Corporate governance, including the impact of company
conversions from partnerships to corporations” (Public Law 11121, § 5(c)(1)(l)); and
vii. “The quality of due diligence undertaken by financial institutions”
(Public Law 111-21, § 5(c)(1)(v)).

•

The Backstops. This section will examine the role of regulators as the
crisis developed and gained steam. It will investigate the actions or
inactions of key public entities charged with regulating the marketplace
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including, but not limited to, the Federal Reserve, the SEC, the various
bank and thrift regulators, OFHEO/FHFA, and the CFTC – looking at how
such regulatory bodies may have failed or been derelict in their duties,
been constrained from fulfilling their responsibilities, or acted in a manner
that may have contributed to the crisis. It will analyze a range of matters
including the legal authority of such entities, the effectiveness and
independence of enforcement, the adequacy of resources, the structural
deficiencies in the regulatory regime, and the knowledge and actions of
the regulators as the crisis unfolded. Statutory areas of study would
include:
i. “Federal and State financial regulators, including the extent to
which they enforced, or failed to enforce statutory, regulatory, or
supervisory requirements” (Public Law 111-21, § 5(c)(1)(b));
ii. “Capital requirements and regulations on leverage and liquidity,
including the capital structures of regulated and non-regulated
financial entities” (Public Law 111-21, § 5(c)(1)(g));
iii. “The legal and regulatory structure governing financial institutions,
including the extent to which the structure creates the opportunity
for financial institutions to engage in regulatory arbitrage” (Public
Law 111-21, § 5(c)(1)(s)); and
iv. “The legal and regulatory structure governing investor and
mortgagor protection” (Public Law 111-21, § 5(c)(1)(t)).
In addition to the examination of regulatory bodies, this section will probe
the role of third party entities such as credit rating agencies,
accounting firms, and law firms with key marketplace responsibilities.
This would encompass the following statutory provisions:
i. “Credit rating agencies in the financial system, including reliance
on credit ratings by financial institutions and Federal financial
regulators, the use of credit ratings in financial regulation, and the
use of credit ratings in the securitization markets” (Public Law
111-21, § 5(c)(1)(h)); and
ii. “Accounting practices, including, mark-to-market and fair value
rules, and treatment of off-balance sheet vehicles” (Public Law
111-21, § 5(c)(1)(e)).
•

The Fate of Major Financial Institutions After tracing the course of the
financial crisis, the report will catalogue the fate of major financial
institutions in the context of the crisis. This examination is consistent with
the statutory mandate “to examine the causes of the collapse of each major
financial institution that failed (including institutions that were acquired to
prevent their failure) or was likely to have failed if not for the receipt of
exceptional Government assistance from the Secretary of the Treasury
during the period beginning in August 2007 through April 2009.”

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III.

•

The Aftermath. This section will provide an update, as of the final
writing of the report, on the status of the practices and policies identified
in the report as key contributors to the financial and economic crisis. For
example, this section would identify the change or lack of change in areas
such as regulations, compensation practices, risk management practices,
and financial products to the extent those items were identified as factors
in the crisis.

•

Conclusions and Recommendations. The commission is not required to
make recommendations. However, to the extent that the Commission
chooses to do so, we can conclude our report with a set of
recommendations.

Preliminary Work Plan
Below is a preliminary overview of the Commission’s work plan.
•

Strategy. The commission is charged with the obligation to review and
report on twenty-two specific issues that may have helped trigger or
accelerate the financial crisis. The commission is also obligated to
examine the “causes of the collapse of each major financial institution that
failed (including institutions that were acquired to prevent failure) or was
likely to have failed if not for the receipt of exceptional Government
assistance” (Public Law 111-21, § 5(c)(2)). This suggests that the
commission should pursue a parallel, two-track approach to its work.
Track one would focus on the larger trends and developments that drove
the crisis. Track two would focus on specific institutions that contributed
to the crisis.
Squaring these two approaches is possible by examining specific
institutions and their actions, while putting those actions in the broader
context of the factors that appear to have triggered and accelerated the
crisis. Although not without challenges, an institution-centric track has at
least four major advantages: (1) major questions about the causes of the
crisis will be examined in the real world of real companies, allowing the
commission to test common assumptions about the crisis; (2) the issues
will be dramatically illuminated by the actions and testimony of real actors
in the marketplace; (3) a series of case studies of specific institutions,
private and public, will allow the commission to uncover common threads
of causation; and (4) such an approach will illustrate how firms operated
in their regulatory environment.

•

Investigative Steps. Practically, the commission does not have enough
time to do full-blown examinations of a large number of entities that may
be within its purview so it should begin by profiling the most important
entities for examination. This should start with a searching profile of what
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is publicly known about each firm. As patterns emerge by firm or
regulatory entity, e.g., the effect of compensation practices on risk-taking
in the case of firms or potentially inadequate disclosures of risk in the case
of a regulator, further investigative steps can be implemented. These steps
may include, among other things, targeted document retention letters;
interviews of risk officers; interviews of current and former high-level
officials or executives; letter requests for documents and e-mails followed,
if necessary by subpoenas for these materials and testimony.
Against these profiles, we will want to lay information on what the
respective boards of selected companies were doing; what the accountants
were saying and doing; what the company was disclosing; and what
regulators were doing or not doing. Throughout this process, we will take
advantage of work that has already been done by, among others,
congressional committees, GAO, financial regulators, scholars and the
press.
•

Hearings. Based on the examinations above, the commission should
select firms and regulatory (or quasi-regulatory) entities for case studies in
public hearings. Once a specific firm or combination of firms has been
selected to illustrate activities in a particular part or multiple parts of the
market, we will want to put this firm in the context of its business and
regulatory environment.
This examination should include testimony on the nature of the business,
including suppliers and customers; rating agencies; accountants and
regulators. Although it is too early to forecast the contours of specific
hearings, possible examples include:
i.
ii.
iii.
iv.
v.

A mortgage originator/bundler and a securitizer;
A national bank or banks;
An investment bank or banks;
One or both major government-sponsored home lending
institutions ; and
A risk insurer.

In addition to examinations of firms at different levels of the financial
system, we also need to more deeply examine the “backstops” that had
independent obligations to protect the financial system. This suggests
additional hearings on:
i.
ii.
iii.

Rating agencies;
Accountants/Auditors; and
Regulators.

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This means that the commission will be conducting as many as eight
major hearings within approximately nine months. At the same time, our
writing staff, including our researchers, will be generating first drafts of
chapters for the report and supplying information to the public in the form
of interim reports and a robust Web presence.
This is ambitious but it does square the circle of our need to answer
specific questions and our need to examine specific firms. More
generally, our goal is to look at the broad drivers of the crisis but also
conduct a “deep dive” into specific institutions to determine the ground
truths of the crisis.
•

Schedule. This plan means that we will be conducting hearings every 4-6
weeks starting in December 2009. Our investigative teams and our
writers/editors will be concurrently preparing rough chapters. Hearings
would conclude by mid-August 2010.
The commission will conduct its inquiries, hearings and reports mindful of
the schedule of the Congress in addressing legislation related to the
financial crisis, subject to the commission’s own independent mandate and
a commitment to highest quality products.
A draft report would be presented to the commission by mid-September
2010. It is assumed that the Government Printing Office will need the
final version for printing by November 1, 2010 to make our statutory
deadline for presentation of our report.
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