S. 1627 — A bill to require Presidential appointment and Senate confirmation of the Inspector General of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.

This section requires the President to appoint, with Senate confirmation, the Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection (previously appointed by agency leadership). It removes the agencies' prior exemptions from standard Inspector General Act appointment and reporting requirements (5 U.S.C. §§ 401, 415); grants the Inspector General oversight authority over Federal Reserve Banks without their permission and treats the Bureau of Consumer Financial Protection as part of the Board of Governors for such purposes (new § 425(a)); and applies specified reporting provisions to the Inspector General and the Chairman of the Board of Governors analogously to the Inspector General and Secretary of the Treasury (§ 425(b)). (As background, Inspectors General independently audit and investigate agency operations to detect waste, fraud, and abuse.)