[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1560 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1560

To require the Federal banking agencies to make certain certifications 
 to Congress regarding new accounting standards for derivatives before 
                         they become effective.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 13, 1997

 Mr. Faircloth introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To require the Federal banking agencies to make certain certifications 
 to Congress regarding new accounting standards for derivatives before 
                         they become effective.

    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 ``Accurate Accounting Standards 
Certification Act of 1997''.

SEC. 2. DEFINITIONS.

    In this Act, the terms ``depository institution'' and ``appropriate 
Federal banking agency'' have the same meanings as in section 3 of the 
Federal Deposit Insurance Act.

SEC. 3. CERTIFICATION BY FEDERAL BANKING AGENCIES.

    Notwithstanding any other provision of law, accounting standards 
regarding the accounting treatment of derivatives and similar 
instruments developed in final form by the Financial Accounting 
Standards Board on or after November 13, 1997, shall not be considered 
to be generally accepted accounting principles, and may not be employed 
by any depository institution (or affiliate thereof) for purpose of 
compliance with any Federal banking law, unless the appropriate Federal 
banking agency for such institution (or affiliate) certifies in writing 
to the Congress that the standards--
            (1) will more accurately reflect the assets, liabilities, 
        and earnings of the depository institution and its affiliates; 
        and
            (2) will not have the effect of diminishing the use of risk 
        management practices that would inhibit the safe and sound 
        operation of the depository institution and its affiliates.
                                 <all>