[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 703 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 703

 To refocus the mission of the Federal Reserve System on stabilization 
 of the currency and provide greater public scrutiny of the operations 
of the Board of Governors of the Federal Reserve System, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 12, 1997

 Mr. Bunning introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
 To refocus the mission of the Federal Reserve System on stabilization 
 of the currency and provide greater public scrutiny of the operations 
of the Board of Governors of the Federal Reserve System, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Reserve System 
Accountability Act of 1997''.

SEC. 2. FINANCIAL AND MANAGERIAL AUDITS OF THE FED ON AN ANNUAL BASIS.

    Section 714(b) of title 31, United States Code, is amended to read 
as follows:
    ``(b) In General.--
            ``(1) Audits.--Under regulations prescribed by the 
        Comptroller General, the Comptroller General shall audit each 
        agency.
            ``(2) Federal reserve system.--The audits of the Board of 
        Governors of the Federal Reserve System and the Federal reserve 
        banks--
                    ``(A) shall be conducted annually;
                    ``(B) shall include a full financial and managerial 
                audit; and
                    ``(C) may not include transactions for or with a 
                foreign central bank, government of a foreign country, 
                or nonprivate international financing organization or 
                any part of any discussion or communication among or 
                between members of the Board of Governors of the 
                Federal Reserve System or officers or employees of such 
                Board which is related to any such transaction.''.

SEC. 3. APPLICABILITY OF GOVERNMENT IN THE SUNSHINE ACT TO FED.

    Section 552b(a)(1) of title 5, United States Code, is amended by 
inserting ``including the Board of Governors of the Federal Reserve 
System,'' after ``advice and consent of the Senate,''.

SEC. 4. PRIMARY MISSION OF FED IS TO MAINTAIN STABLE CURRENCY WITH 
              MINIMAL FLUCTUATION IN INTEREST RATES.

    Section 10 of the Federal Reserve Act (12 U.S.C. 247a) is amended 
by adding at the end the following new subsection:
    ``(k) Primary Mission.--The primary mission of the Board is to 
regulate the money supply so as to maintain a stable currency with 
minimal fluctuation in interest rates.''.

SEC. 5. TRANSFER OF ADMINISTRATION OF BANK HOLDING COMPANY ACT OF 1956 
              FROM FED TO FDIC.

    (a) In General.--The Bank Holding Company Act of 1956 (12 U.S.C. 
1841 et seq.) is amended by striking ``Board'' each place such term 
appears and inserting ``Corporation''.
    (b) Technical and Conforming Amendments.--
            (1) Section 2(f) of the Bank Holding Company Act of 1956 
        (12 U.S.C. 1841(f)) is amended to read as follows:
    ``(f) Corporation.--The term `Corporation' means the Federal 
Deposit Insurance Corporation.''.
            (2) Section 3(q) of the Federal Deposit Insurance Act (12 
        U.S.C. 1813(q)) is amended--
                    (A) in paragraph (2)--
                            (i) by inserting ``and'' after the 
                        semicolon at the end of subparagraph (D);
                            (ii) by striking ``and'' at the end of 
                        subparagraph (E); and
                            (iii) by striking subparagraph (F); and
                    (B) in paragraph (3)--
                            (i) by striking ``or'' after ``District 
                        bank),''; and
                            (ii) by inserting ``, or any bank holding 
                        company and any subsidiary of any bank holding 
                        company (other than a bank)'' before the 
                        semicolon at the end.
            (3) Section 8(b)(3) of the Federal Deposit Insurance Act 
        (12 U.S.C. 1818(b)(3)) is amended by striking ``Board of 
        Governors of the Federal Reserve System'' and inserting 
        ``Corporation''.
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