I 111th CONGRESS 1st Session H. R. 2727 IN THE HOUSE OF REPRESENTATIVES June 4, 2009 Mr. Jones introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To provide for the implementation of a system under which each financial institution will report on the financial condition of the institution to the public, and for other purposes.

1.

Short title

This Act may be cited as the Financial Transparency Restoration Act.

2.

Findings

The Congress finds as follows: (1)For approximately 70 years, national banks were required by an Act of Congress to publish statements of condition in newspapers where they did business. (2)In 1994, this requirement was repealed by an Act of Congress with no public hearing or explanation. (3)The public ought to have access to the statements of financial condition of all financial institutions.

3.

Restoration of financial transparency

(a)

Definitions

For purposes of this Act, the following definitions shall apply: (1)

Federal functional regulator

The term Federal functional regulator has the same meaning as in section 509(2) of the Gramm-Leach-Bliley Act, except that such term includes— (A)the Commodity Futures Trading Commission, with regard to any person or entity described in section 509(3)(B) of such Act; and (B)the Board of Governors of the Federal Reserve System, with regard to any financial institution which does not otherwise have a Federal functional regulator under section 509(2) of such Act. (2)

Financial institution

The term financial institution has the same meaning as in section 509(3) of the Gramm-Leach-Bliley Act, without regard to any exclusions under any subparagraph of such section. (b)

Publication of a statement of condition required

Within 30 days after the end of each fiscal quarter of any financial institution, the financial institution shall publish a statement of financial condition of the financial institution in a newspaper of general paid circulation published in a city or county within each market area in which the financial institution is located, or if no newspaper of general paid circulation is published in such city or county, then the newspaper of general paid circulation published nearest such city or county. (c)

Oath or affirmation of president or designated officer

Each publication by a financial institution of a statement of financial condition in accordance with subsection (b) shall include a written verification of the accuracy of the statement, under oath or by affirmation, by the president of the financial institution or another officer designated by the board of directors of such institution. (d)

Form

In accordance with the joint regulations prescribed under subsection (e), the Federal functional regulator for any type of financial institution shall prescribe the form and content of the statement of financial condition for such type of institution. (e)

Regulations

The Federal functional regulators shall jointly prescribe regulations appropriate to carry out the requirements of this section and ensure compliance with such requirements. (f)

Effective date

This section shall apply so as to require each financial institution to publish a written statement of financial condition after the end of each fiscal quarter of the institution that begins not less than 30 days after the date of the enactment of this Act.