[Congressional Record Volume 144, Number 140 (Thursday, October 8, 1998)]
[House]
[Pages H10208-H10218]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
DEPOSITORY INSTITUTION REGULATORY STREAMLINING ACT OF 1998
Mrs. ROUKEMA. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 4364) to streamline the regulation of depository
institutions, to safeguard confidential banking and credit union
supervisory information, and for other purposes, as amended.
The Clerk read as follows:
H.R. 4364
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Depository
Institution Regulatory Streamlining Act of 1998''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--IMPROVING MONETARY POLICY
Sec. 101. Payment of interest on reserve balances at Federal reserve
banks.
Sec. 102. Amendments relating to savings and demand deposit accounts at
depository institutions.
[[Page H10209]]
Sec. 103. Transfer of Federal reserve surpluses.
Sec. 104. Study of reserve ratios for deposit insurance funds.
TITLE II--IMPROVING DEPOSITORY INSTITUTION MANAGEMENT PRACTICES
Subtitle A--National Banks
Sec. 201. Authority to allow more than 25 directors.
Sec. 202. Loans on or purchases by institutions of their own stock.
Sec. 203. Expedited procedures for certain reorganizations.
Subtitle B--Savings Associations
Sec. 211. Noncontrolling investments by savings association holding
companies.
Sec. 212. Streamlining thrift service company investment requirements.
Sec. 213. Repeal of dividend notice requirement.
Sec. 214. Updating of authority for community development investments.
Subtitle C--Other Institutions
Sec. 221. Prohibition on accrual to insiders of economic benefits from
credit union conversions.
Sec. 222. Amendments relating to limited purpose banks.
Sec. 223. Business purpose credit extensions.
TITLE III--STREAMLINING FEDERAL BANKING AGENCY REQUIREMENTS AND
ELIMINATION OF UNNECESSARY OR OUTDATED REQUIREMENTS
Sec. 301. ``Plain English'' requirement for Federal banking agency
rules.
Sec. 302. Call report simplification.
Sec. 303. Purchased mortgage service rights.
Sec. 304. Judicial review of receivership appointment.
Sec. 305. Elimination of outdated statutory minimum capital
requirements.
Sec. 306. Elimination of individual branch capital requirements.
Sec. 307. Amendment to shareholder notice provisions relating to
consolidations and mergers.
Sec. 308. Payment of interest in receiverships with surplus funds.
Sec. 309. Repeal of deposit broker notification and recordkeeping
requirement.
Sec. 310. Allowances for certain extensions of credit to executive
officers.
Sec. 311. Federal Reserve Act lending limits.
Sec. 312. Repeal of Bank Holding Company Act provision limiting savings
bank life insurance.
Sec. 313. Amendment to section 5137 of the Revised Statutes of the
United States.
TITLE IV--DISCLOSURE SIMPLIFICATION
Sec. 401. Alternative disclosure for variable rate, open-ended home
secured credit.
TITLE V--BANK EXAMINATION REPORT PRIVILEGE ACT
Sec. 501. Amendment to the Federal Deposit Insurance Act.
Sec. 502. Amendment to Federal Credit Union Act.
TITLE VI--TECHNICAL CORRECTIONS
Sec. 601. Technical correction relating to deposit insurance funds.
Sec. 602. Rules for continuation of deposit insurance for member banks
converting charters.
Sec. 603. Waiver of citizenship requirement for national bank
directors.
Sec. 604. Technical amendment to prohibition on Comptroller interests
in national banks.
Sec. 605. Applicability of limitation to prior investments.
TITLE VII--SPECIAL RESERVE FUNDS
Sec. 701. Abolition of special reserve funds.
TITLE I--IMPROVING MONETARY POLICY
SEC. 101. PAYMENT OF INTEREST ON RESERVE BALANCES AT FEDERAL
RESERVE BANKS.
(a) In General.--Section 19(b) of the Federal Reserve Act
(12 U.S.C. 461(b)) is amended by adding at the end the
following new paragraph:
``(12) Earnings on reserves.--
``(A) In general.--Balances maintained at a Federal reserve
bank by or on behalf of a depository institution may receive
earnings to be paid by the Federal reserve bank at least once
each calendar quarter at a rate or rates not to exceed the
general level of short-term interest rates.
``(B) Regulations relating to payments and distribution.--
The Board may prescribe regulations concerning--
``(i) the payment of earnings in accordance with this
paragraph;
``(ii) the distribution of such earnings to the depository
institutions which maintain balances at such banks or on
whose behalf such balances are maintained; and
``(iii) the responsibilities of depository institutions,
Federal home loan banks, and the National Credit Union
Administration Central Liquidity Facility with respect to the
crediting and distribution of earnings attributable to
balances maintained, in accordance with subsection (c)(1)(B),
in a Federal reserve bank by any such entity on behalf of
depository institutions which are not member banks.''.
(b) Authorization for Pass Through Reserves for Member
Banks.--Section 19(c)(1)(B) of the Federal Reserve Act (12
U.S.C. 461(c)(1)(B)) is amended by striking ``which is not a
member bank''.
(c) Technical and Conforming Amendments.--Section 19 of the
Federal Reserve Act (12 U.S.C. 461) is amended--
(1) in subsection (b)(4) (12 U.S.C. 461(b)(4)), by striking
subparagraph (C) and redesignating subparagraphs (D) and (E)
as subparagraphs (C) and (D), respectively; and
(2) in subsection (c)(1)(A) (12 U.S.C. 461(c)(1)(A)), by
striking ``subsection (b)(4)(C)'' and inserting ``subsection
(b)''.
SEC. 102. AMENDMENTS RELATING TO SAVINGS AND DEMAND DEPOSIT
ACCOUNTS AT DEPOSITORY INSTITUTIONS.
(a) Immediate Increase in the Number of Interaccount
Transfers Allowed Each Month.--Section 2 of Public Law 93-100
(12 U.S.C. 1832) is amended--
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(2) by inserting after subsection (a) the following:
``(b) Interaccount Transfers.--
``(1) In general.--Notwithstanding any other provision of
law, any depository institution may permit the owner of any
deposit or account on which interest or dividends are paid to
make up to 24 transfers per month, for any purpose, to
another account of the owner in the same institution.
``(2) Rule of construction.--Nothing in this subsection
shall be construed to prevent an account offered pursuant to
this subsection from being considered a transaction account
(as defined in section 19(b) of the Federal Reserve Act (12
U.S.C. 461(b)) for purposes of such Act.''.
(b) Now Accounts Authorized for All Businesses After
2004.--
(1) In general.--Effective on the date provided in
paragraph (3), section 2 of Public Law 93-100 (12 U.S.C.
1832(a)(2)) (as amended by subsection (a) of this section) is
amended to read as follows:
``SEC. 2. WITHDRAWALS BY NEGOTIABLE OR TRANSFERABLE
INSTRUMENTS FOR TRANSFERS TO THIRD PARTIES.
``Notwithstanding any other provision of law, any
depository institution (as defined in section 3 of the
Federal Deposit Insurance Act) may permit the owner of any
deposit or account to make withdrawals from such deposit or
account by negotiable or transferable instruments for the
purpose of making payments to third parties.''.
(2) Repeal of prohibition on payment of interest on demand
deposits.--
(A) Federal reserve act.--Section 19 of the Federal Reserve
Act (12 U.S.C. 371a) is amended by striking subsection (i).
(B) Home owners' loan act.--The 1st sentence of section
5(b)(1)(B) of the Home Owners' Loan Act (12 U.S.C.
1464(b)(1)(B)) is amended by striking ``savings association
may not--'' and all that follows through ``(ii) permit any''
and inserting ``savings association may not permit any''.
(C) Federal deposit insurance act.--Section 18 of the
Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by
striking subsection (g).
(3) Effective date.--The amendments made by this subsection
shall take effect on October 1, 2004.
SEC. 103. TRANSFER OF FEDERAL RESERVE SURPLUSES.
(a) Payments From Dividends and Surplus of Federal Reserve
Banks.--Section 7(a)(3) of the Federal Reserve Act (12 U.S.C.
289(3)) is amended by striking ``fiscal years 1997 and 1998''
and inserting ``fiscal years 1998 through 2003''.
(b) Additional Transfers for Fiscal Years 1999 Through
2003.--
(1) In general.--In addition to the amounts required to be
transferred from the surplus funds of the Federal reserve
banks pursuant to section 7(a)(3) of the Federal Reserve Act
and section 3002(b) of the Omnibus Budget Reconciliation Act
of 1993, the Federal reserve banks shall transfer from such
surplus funds to the Board of Governors of the Federal
Reserve System for transfer to the Secretary of the Treasury
for deposit in the general fund of the Treasury, such sums as
are necessary to equal the net cost of section 101, as
estimated by the Office of Management and Budget.
(2) Allocation by fed.--Of the total amount required to be
paid by the Federal reserve banks under paragraph (1) for
fiscal years 1999 through 2003, the Board of Governors of the
Federal Reserve System shall determine the amount each such
bank shall pay in such fiscal year.
(3) Replenishment of surplus fund prohibited.--No Federal
reserve bank may replenish such bank's surplus fund by the
amount of any transfer by such bank under paragraph (1)
during the fiscal year for which such transfer is made.
SEC. 104. STUDY OF RESERVE RATIOS FOR DEPOSIT INSURANCE
FUNDS.
(a) Review and Recommendation.--The Board of Directors of
the Federal Deposit Insurance Corporation, in consultation
with the Board of Governors of the Federal Reserve System and
the Secretary of the Treasury, shall--
(1) conduct a study of the adequacy of the deposit
insurance funds, taking into account--
(A) expected operating expenses, case resolution
expenditures and income, and the effect of assessments on
members' earnings and capital;
(B) historical failure rates and loss experience;
(C) recent changes in the law, including statutory changes
requiring prompt corrective action, least-cost resolutions,
and risk-based assessment systems;
[[Page H10210]]
(D) the income of such funds from investments;
(E) the potential implication of the Year 2000 computer
problem (as defined in section 2(b)(5) of the Examination
Parity and Year 2000 Readiness for Financial Institutions
Act) and industry consolidation; and
(F) the historical experience of the Corporation in
providing rebates or credits from any deposit insurance fund;
and
(2) recommend to the Congress--
(A) an appropriate range of reserve ratios between the net
worth of any deposit insurance fund and the aggregate amount
of insured deposits insured by such fund; and
(B) an appropriate mechanism for rebating or providing
credit from any deposit insurance fund when the balance of
the fund exceeds any applicable reserve ratio.
(b) Report Required.--The Board of Directors of the Federal
Deposit Insurance Corporation, in consultation with the Board
of Governors of the Federal Reserve System and the Secretary
of the Treasury, shall submit a report to the Congress before
June 30, 1999, containing--
(1) the findings and conclusions of the study required
under subsection (a)(1); and
(2) the recommendations required under subsection (a)(2).
TITLE II--IMPROVING DEPOSITORY INSTITUTION MANAGEMENT PRACTICES
Subtitle A--National Banks
SEC. 201. AUTHORITY TO ALLOW MORE THAN 25 DIRECTORS.
Section 31 of the Banking Act of 1933 (12 U.S.C. 71a) is
amended in the first sentence, by inserting before the period
``, except that the Comptroller of the Currency may, by
regulation or order, exempt a national banking association
from the 25-member limit established by this section''.
SEC. 202. LOANS ON OR PURCHASES BY INSTITUTIONS OF THEIR OWN
STOCK.
(a) Amendment to Revised Statutes.--Section 5201 of the
Revised Statutes of the United States (12 U.S.C. 83) is
amended to read as follows:
``SEC. 5201. LOANS BY BANK ON ITS OWN STOCK.
``(a) General Prohibition.--No national banking association
shall make any loan or discount on the security of the shares
of its own capital stock.
``(b) Exclusion.--For purposes of this section, an
association shall not be deemed to be making a loan or
discount on the security of the shares of its own capital
stock if it acquires the stock to prevent loss upon a debt
contracted for in good faith.''.
(b) Amendment to Federal Deposit Insurance Act.--Section 18
of the Federal Deposit Insurance Act (12 U.S.C. 1828) is
amended by adding at the end the following new subsection:
``(t) Loans by Insured Institutions on Their Own Stock.--
``(1) General prohibition.--No insured depository
institution shall make any loan or discount on the security
of the shares of its own capital stock.
``(2) Exclusion.--For purposes of this subsection, an
insured depository institution shall not be deemed to be
making a loan or discount on the security of the shares of
its own capital stock if it acquires the stock to prevent
loss upon a debt contracted for in good faith.''.
SEC. 203. EXPEDITED PROCEDURES FOR CERTAIN REORGANIZATIONS.
The National Bank Consolidation and Merger Act (12 U.S.C.
215 et seq.) is amended--
(1) by redesignating section 5 as section 7; and
(2) by inserting after section 4 the following new section:
``SEC. 5. EXPEDITED PROCEDURES FOR CERTAIN REORGANIZATIONS.
``(a) In General.--A national bank may, with the approval
of the Comptroller, pursuant to regulations prescribed by the
Comptroller, and upon the affirmative vote of the
shareholders of such bank owning at least two-thirds of the
outstanding capital stock of such bank, reorganize so as to
become a subsidiary of a bank holding company or a company
that will, upon consummation of such reorganization, become a
bank holding company.
``(b) Reorganization Plan.--A reorganization authorized
under subsection (a) shall be carried out in accordance with
a reorganization plan that--
``(1) specifies the manner in which the reorganization
shall be carried out;
``(2) is approved by a majority of the entire board of
directors of the bank;
``(3) specifies--
``(A) the amount of cash or securities of the bank holding
company, or both, or other consideration, to be paid to the
shareholders of the reorganizing bank in exchange for their
shares of stock of the bank;
``(B) the date as of which the rights of each shareholder
to participate in such exchange will be determined; and
``(C) the manner in which the exchange will be carried out;
and
``(4) is submitted to the shareholders of the reorganizing
bank at a meeting to be held on the call of the directors in
accordance with the procedures prescribed in connection with
a merger of a national bank under section 3.
``(c) Applicability of Other Criteria.--In considering a
reorganization plan under this section, the Comptroller
shall--
``(1) require the national bank to provide notice to the
public in accordance with section 18(c)(3) of the Federal
Deposit Insurance Act; and
``(2) apply the same standards and the same criteria as are
applicable to a transaction under section 18(c) of the
Federal Deposit Insurance Act, other than the requirements of
paragraphs (4) and (6) of such section.
``(d) Rights of Dissenting Shareholders.--If, pursuant to
this section, a reorganization plan has been approved by the
shareholders and the Comptroller, any shareholder of the
national bank who has voted against the reorganization at the
meeting referred to in subsection (b)(4), or has given notice
in writing at or before that meeting to the presiding officer
that the shareholder dissents from the reorganization plan,
shall be entitled to receive the value of the shares of the
shareholder, as provided by section 3 for the merger of a
national bank.
``(e) Effect of Reorganization.--The corporate existence of
a national bank that reorganizes in accordance with this
section shall not be deemed to have been affected in any way
by reason of such reorganization.
``(f) Approval Under the Bank Holding Company Act of
1956.--Notwithstanding the preceding provisions of this
section, it shall be unlawful for any action to be taken that
causes any company to become a bank holding company or any
bank to become a subsidiary of a bank holding company, except
with the prior approval of the Board of Governors of the
Federal Reserve System pursuant to section 3 of the Bank
Holding Company Act of 1956 (12 U.S.C. 1842).''.
Subtitle B--Savings Associations
SEC. 211. NONCONTROLLING INVESTMENTS BY SAVINGS ASSOCIATION
HOLDING COMPANIES.
Section 10(e)(1)(A)(iii) of the Home Owners' Loan Act (12
U.S.C. 1467a(e)(1)(A)(iii) is amended--
(1) by inserting ``, except with the prior written approval
of the Director,'' after ``or to retain'';
(2) by striking ``subsidiary, or in'' and inserting
``subsidiary. In''; and
(3) by striking ``to so acquire or retain'' and inserting
``it shall be unlawful, and the Director may not authorize
such a company, to acquire or retain''.
SEC. 212. STREAMLINING SAVINGS ASSOCIATION SERVICE COMPANY
INVESTMENT REQUIREMENTS.
Section 5(c)(4)(B) of the Home Owners' Loan Act (12 U.S.C.
1464(c)(4)(B)) is amended--
(1) in the subparagraph heading, by striking
``corporations'' and inserting ``companies''; and
(2) in the first sentence, by striking ``corporation
organized'' and all that follows through ``such State.'' and
inserting ``company organized under the laws of any State, if
such company's entire capital stock is available for purchase
only by savings associations. For purposes of this
subparagraph, the term `company' includes any corporation and
any limited liability company (as defined in section 1(b)(7)
of the Bank Service Company Act).''.
SEC. 213. REPEAL OF DIVIDEND NOTICE REQUIREMENT.
Section 10(f) of the Home Owners' Loan Act (12 U.S.C.
1467a(f)) is amended to read as follows:
``(f) [Repealed].''.
SEC. 214. UPDATING OF AUTHORITY FOR COMMUNITY DEVELOPMENT
INVESTMENTS.
Section 5(c) of the Home Owners' Loan Act (12 U.S.C.
1464(c)) is amended--
(1) in paragraph (3), by striking subparagraph (A) and
redesignating subparagraphs (B) and (C) as subparagraphs (A)
and (B), respectively; and
(2) by adding at the end the following new paragraph:
``(7) Community development investments.--
``(A) In general.--Investments in real property and
obligations secured by liens on real property for the primary
purpose of promoting the public welfare, including the
welfare of low- and moderate-income communities or families
(including the provision of housing, services, or jobs), are
permitted, subject to subparagraph (B).
``(B) Limitations.--The aggregate amount of investments of
a savings association under subparagraph (A) shall not exceed
the sum of 5 percent of the savings association's capital
stock actually paid in and unimpaired and 5 percent of the
savings association's unimpaired surplus fund, unless the
Director determines by order that a higher amount will pose
no significant risk to the affected deposit insurance fund,
and that the savings association is adequately capitalized,
in which case the aggregate amount of such investments shall
not exceed an amount equal to the sum of 10 percent of the
savings association's capital stock actually paid in and
unimpaired and 10 percent of the savings association's
unimpaired surplus fund.''.
Subtitle C--Other Institutions
SEC. 221. PROHIBITION ON ACCRUAL TO INSIDERS OF ECONOMIC
BENEFITS FROM CREDIT UNION CONVERSIONS.
Section 18 of the Federal Deposit Insurance Act (12 U.S.C.
1828) is amended by adding at the end the following new
subsection:
``(t) Prohibition on Economic Benefit From Conversion for
Credit Union Officers, Directors, and Committee Members.--
``(1) In general.--An individual who is or, at any time
during the 5-year period preceding any conversion described
in paragraph (2), was a director, committee member, or senior
management official of an insured credit union described in
subparagraph (A) or (B) of such paragraph (in connection with
[[Page H10211]]
such conversion) may not receive any economic benefit as a
result of the conversion with regard to the shares or
interests of such director, member, or officer in the former
insured credit union or in any resulting insured depository
institution.
``(2) Covered conversions.--The following conversions are
described in this paragraph for purposes of paragraph (1):
``(A) The conversion of an insured credit union into an
insured depository institution.
``(B) The conversion from the mutual form to the stock form
of an insured depository institution which resulted from a
prior conversion of an insured credit union into such insured
depository institution.
``(3) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Insured credit union.--The term `insured credit
union' has the meaning given to such term in section 101(7)
of the Federal Credit Union Act.
``(B) Senior management official.--The term `senior
management official' means a chief executive officer, an
assistant chief executive officer, a chief financial officer,
and any other senior executive officer (as defined by the
appropriate Federal banking agency pursuant to section
32(f)).''.
SEC. 222. AMENDMENTS RELATING TO LIMITED PURPOSE BANKS.
Section 4(f) of the Bank Holding Company Act of 1956 (12
U.S.C. 1843(f)) is amended--
(1) in paragraph (2)(A)(ii)--
(A) by striking ``and'' at the end of subclause (IX);
(B) by inserting ``and'' after the semicolon at the end of
subclause (X); and
(C) by inserting after subclause (X) the following new
subclause:
``(XI) assets that are derived from, or are incidental to,
activities in which institutions described in section
2(c)(2)(F) are permitted to engage,'';
(2) in paragraph (2)--
(A) by striking ``Paragraph (1) shall cease to apply to any
company described in such paragraph if--'' and inserting ``A
company described in paragraph (1) shall no longer qualify
for the exemption provided under such paragraph if--''; and
(B) by striking subparagraph (B) and inserting the
following new subparagraphs:
``(B) any bank subsidiary of such company engages in any
activity in which the bank was not lawfully engaged as of
March 5, 1987, unless the bank is well managed and well
capitalized;
``(C) any bank subsidiary of such company both--
``(i) accepts demand deposits or deposits that the
depositor may withdraw by check or similar means for payment
to third parties; and
``(ii) engages in the business of making commercial loans;
or
``(D) after the date of the enactment of the Competitive
Equality Amendments of 1987, any bank subsidiary of such
company permits any overdraft (including any intraday
overdraft), or incurs any such overdraft in such bank's
account at a Federal reserve bank, on behalf of an affiliate,
other than an overdraft described in paragraph (3).''; and
(3) by striking paragraphs (3) and (4) and inserting the
following new paragraphs:
``(3) Permissible overdrafts described.--For purposes of
paragraph (2)(D), an overdraft is described in this paragraph
if--
``(A) such overdraft results from an inadvertent computer
or accounting error that is beyond the control of both the
bank and the affiliate; or
``(B) such overdraft--
``(i) is permitted or incurred on behalf of an affiliate
which is monitored by, reports to, and is recognized as a
primary dealer by the Federal Reserve Bank of New York; and
``(ii) is fully secured, as required by the Board, by
bonds, notes, or other obligations which are direct
obligations of the United States or on which the principal
and interest are fully guaranteed by the United States or by
securities and obligations eligible for settlement on the
Federal Reserve book entry system.
``(4) Divestiture in case of loss of exemption.--If any
company described in paragraph (1) fails to continue to
qualify for the exemption provided under such paragraph by
operation of paragraph (2), the company shall immediately
notify the Board that the company has failed to continue to
qualify for such exemption, and the company shall divest
control of each bank it controls before the end of the 180-
day period beginning on the date that the company receives
notice from the Board that the company has failed to continue
to qualify for such exemption, unless before the end of such
180-day period, the company has--
``(A) either--
``(i) corrected the condition or ceased the activity that
caused the company to fail to continue to qualify for the
exemption; or
``(ii) received approval from the Board of a plan to
correct the condition in a timely manner (which shall not
exceed 1 year); and
``(B) implemented procedures that are reasonably adapted to
avoid the reoccurrence of such condition or activity.''.
SEC. 223. BUSINESS PURPOSE CREDIT EXTENSIONS.
Section 4 of the Bank Holding Company Act of 1956 (12
U.S.C. 1843) is amended by adding at the end the following
new subsection:
``(k) Business Purpose Credit Extensions.--
``(1) In general.--An institution referred to in section
2(c)(2)(F) or 4(f)(3) which extends credit through credit
card accounts for qualified business purposes shall not be
treated as engaging in the business of making commercial
loans by reason of such extensions of credit.
``(2) Qualified business purpose.--
``(A) In general.--The Board shall prescribe regulations
defining the term `qualified business purposes' for purposes
of this subsection.
``(B) Certain business purposes excluded.--In defining the
term `qualified business purposes' under subparagraph (A),
the Board--
``(i) may not treat extensions of credit through a credit
card account for expenditures for capital improvements,
acquisitions of inventory, or other large acquisitions as a
qualified business purpose for credit card accounts; and
``(ii) may treat extensions of credit through a credit card
account for expenditures involving employee travel,
entertainment, and subsistence, purchases involving a small
number of items and low-dollar amounts, and other small
acquisitions as qualified business purposes for credit card
accounts.
``(3) Credit card defined.--For purposes of this
subsection, the term `credit card' has the same meaning as in
section 103 of the Truth In Lending Act.''.
TITLE III--STREAMLINING FEDERAL BANKING AGENCY REQUIREMENTS AND
ELIMINATION OF UNNECESSARY OR OUTDATED REQUIREMENTS
SEC. 301. ``PLAIN ENGLISH'' REQUIREMENT FOR FEDERAL BANKING
AGENCY RULES.
(a) In General.--Each Federal banking agency shall use
plain English in all proposed and final rulemakings published
by the agency in the Federal Register after January 1, 1999.
(b) Report.--Not later than June 1, 2000, each Federal
banking agency shall submit to the Congress a report that
describes how the agency has complied with subsection (a).
(c) Definitions.--For purposes of this section and section
302, the terms ``Federal banking agency'' and ``State bank
supervisor'' have the meanings given such terms in section 3
of the Federal Deposit Insurance Act.
SEC. 302. CALL REPORT SIMPLIFICATION.
(a) Modernization of Call Report Filing and Disclosure
System.--In order to reduce the administrative requirements
pertaining to bank reports of condition, savings association
financial reports, and bank holding company consolidated and
parent-only financial statements, and to improve the
timeliness of such reports and statements, the Federal
banking agencies (after consulting with State bank
supervisors) shall--
(1) work jointly to develop a system under which--
(A) insured depository institutions and their affiliates
may file such reports and statements electronically; and
(B) the Federal banking agencies may make such reports and
statements available to the public electronically; and
(2) not later than July 1, 2000, report to the Congress and
make recommendations for legislation that would enhance
efficiency for filers and users of such reports and
statements.
(b) Uniform Reports and Simplification of Instructions.--
The Federal banking agencies (after consulting with State
bank supervisors) shall, consistent with the principles of
safety and soundness, work jointly--
(1) to adopt a single form for the filing of core
information required to be submitted under Federal law to all
such agencies in the reports and statements referred to in
subsection (a); and
(2) to simplify instructions accompanying such reports and
statements and to provide an index to the instructions that
is adequate to meet the needs of both filers and users.
(c) Review of Call Report Schedule.--Each Federal banking
agency (after consulting with State bank supervisors) shall--
(1) review the information required by schedules
supplementing the core information referred to in subsection
(b); and
(2) eliminate requirements that are not warranted for
reasons of safety and soundness or other public purposes.
SEC. 303. PURCHASED MORTGAGE SERVICE RIGHTS.
Section 475 of the Federal Depository Insurance Corporation
Improvement Act of 1991 (12 U.S.C. 1828 note) is amended--
(1) in subsection (a)(1), by inserting ``(or such other
percentage exceeding 90 percent but not exceeding 100
percent, as may be determined under subsection (b))'' after
``90 percent''; and
(2) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively, and by inserting after subsection
(a) the following new subsection:
``(b) Authority to Determine Percentage by Which to
Discount Value of Servicing Rights.--
``(1) In general.--Notwithstanding subsection (a)(1), the
appropriate Federal banking agencies may allow readily
marketable purchased mortgage servicing rights to be valued
at more than 90 percent of their fair market value but at not
more than 100 percent of such value, if such agencies jointly
make a finding before the end of the 180-day period beginning
on the date of the enactment of the Depository Institution
Regulatory Streamlining Act of 1998 that such valuation would
not have an adverse affect on the deposit insurance funds or
the safety and soundness of insured depository institutions.
[[Page H10212]]
``(2) Joint rulemaking.--Any regulations prescribed
pursuant to paragraph (1) shall be prescribed jointly by the
Federal banking agencies.''.
SEC. 304. JUDICIAL REVIEW OF RECEIVERSHIP APPOINTMENTS.
(a) Appointment for National Bank.--Section 2 of the
National Bank Receivership Act (12 U.S.C. 191) is amended--
(1) by inserting ``(a) Appointment of Receiver.--'' before
``The Comptroller''; and
(2) by adding at the end the following new subsection:
``(b) Judicial Review.--Within 30 days after the
appointment under subsection (a) of a receiver for a national
bank, the national bank may bring an action in the United
States district court for the judicial district in which the
home office of the bank is located, or in the United States
District Court for the District of Columbia, for an order
requiring the Comptroller to remove the receiver, and the
court shall, on the merits, dismiss the action or direct the
Comptroller to remove the receiver.''.
(b) Appointment of Federal Deposit Insurance Corporation.--
Section 11(c)(7) of the Federal Deposit Insurance Act (12
U.S.C. 1811(c)(7)) is amended to read as follows:
``(7) Judicial review.--Within 30 days after the
Corporation is appointed as conservator or receiver for an
insured depository institution under paragraph (4), (9), or
(10), the institution may bring an action in the United
States district court for the judicial district in which the
home office of the institution is located, or in the United
States District Court for the District of Columbia, for an
order requiring the Corporation to be removed as the
conservator or receiver, and the court shall, on the merits,
dismiss the action or direct the Corporation to be removed as
the conservator or receiver.''.
SEC. 305. ELIMINATION OF OUTDATED STATUTORY MINIMUM CAPITAL
REQUIREMENTS.
Section 5138 of the Revised Statutes of the United States
(12 U.S.C. 51) is repealed.
SEC. 306. ELIMINATION OF INDIVIDUAL BRANCH CAPITAL
REQUIREMENTS.
Section 5155(c) of the Revised Statutes of the United
States (12 U.S.C. 36(c)) is amended--
(1) in the second sentence, by striking ``, without regard
to the capital requirements of this section,''; and
(2) by striking the third sentence.
SEC. 307. AMENDMENT TO SHAREHOLDER NOTICE PROVISIONS RELATING
TO CONSOLIDATIONS AND MERGERS.
(a) Section 2(a) of the Act of August 17, 1950, entitled
``An Act to provide for the conversion of national banking
associations into and their merger or consolidation with
State banks, and for other purposes.'' (12 U.S.C. 214a(a)) is
amended by striking ``registered mail or by certified''.
(b) Sections 2(a) and 3(a)(2) of the National Bank
Consolidation and Merger Act (12 U.S.C. 215(a) and
215a(a)(2)) are each amended by striking ``certified or
registered'' each place it appears.
SEC. 308. PAYMENT OF INTEREST IN RECEIVERSHIPS WITH SURPLUS
FUNDS.
Section 11(d)(10) of the Federal Deposit Insurance Act (12
U.S.C. 1821(d)(10)) is amended by adding at the end the
following new subparagraph:
``(C) Rulemaking authority of corporation.--The Corporation
may prescribe such rules, including definitions of terms, as
it deems appropriate to establish the interest rate for or to
make payments of postinsolvency interest to creditors holding
proven claims against the receivership estates of insured
Federal or State depository institutions following
satisfaction by the receiver of the principal amount of all
creditor claims.''.
SEC. 309. REPEAL OF DEPOSIT BROKER NOTIFICATION AND
RECORDKEEPING REQUIREMENT.
Section 29A of the Federal Deposit Insurance Act (12 U.S.C.
1831f-1) is repealed.
SEC. 310. ALLOWANCES FOR CERTAIN EXTENSIONS OF CREDIT TO
EXECUTIVE OFFICERS.
Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a)
is amended--
(1) by redesignating paragraphs (6) through (10) as
paragraphs (8) through (12), respectively;
(2) by inserting after paragraph (5) the following new
paragraphs:
``(6) A member bank may extend to any executive officer of
the bank a home equity line of credit which does not exceed
$100,000 and is secured by a lien on the primary residence of
the executive officer, to the extent that the aggregate
amount of such lien and all other outstanding extensions of
credit secured by liens on such primary residence does not
exceed the appraised value of such residence.
``(7) A member bank may extend credit to any executive
officer of the bank in an amount not to exceed the greater
of--
``(A) the amount which is the lesser of 2.5 percent of the
aggregate amount of capital and unimpaired surplus of the
bank or $100,000; or
``(B) $25,000,
if, at the time the credit is extended, the extension of
credit is secured by readily marketable assets that have a
fair market value of not less than twice the amount of credit
extended.''; and
(3) in paragraph (8) (as so redesignated by paragraph (1)
of this section), by striking ``(3) and (4)'' and inserting
``(3), (4), (6), and (7)''.
SEC. 311. FEDERAL RESERVE ACT LENDING LIMITS.
Section 11(m) of the Federal Reserve Act (12 U.S.C. 248(m))
is amended to read as follows:
``(m) [Repealed].''.
SEC. 312. REPEAL OF BANK HOLDING COMPANY ACT PROVISION
LIMITING SAVINGS BANK LIFE INSURANCE.
Section 3(f) of the Bank Holding Company Act of 1956 (12
U.S.C. 1842(f)) is amended to read as follows:
``(f) [Repealed].''.
SEC. 313. AMENDMENT TO SECTION 5137 OF THE REVISED STATUTES
OF THE UNITED STATES.
(a) In General.--Section 5137 of the Revised Statutes of
the United States (12 U.S.C. 29) is amended by adding at the
end the following new subsection:
``(d) Additional Extension for Passive Investments in
Subsurface Rights and Interests.--
``(1) In General.--With respect to subsurface rights of
real estate, and interests in such rights, which a national
bank holds pursuant to the prior approval of the Comptroller
of the Currency under subsection (b), the national bank may
apply for, and the Comptroller of the Currency may approve,
possession by the bank of such rights and interests for an
additional period not to exceed 5 years if--
``(A) the national bank acquired the property pursuant to
the paragraphs designated the `Second', `Third', and `Fourth'
of subsection (a);
``(B) the national bank--
``(i) holds the rights or interest passively; and
``(ii) is not engaged in production, extraction,
exploration, or other active use of the rights or interests;
``(C) the national bank--
``(i) values the subsurface rights and interests in such
rights on the books of the bank for no more than a nominal
amount; and
``(i) separately discloses the aggregate amount of earnings
from the rights and interests in the annual financial
statements of the bank; and
``(D) the Comptroller of the Currency determines that the
possession of such rights and interests is not inconsistent
with the safety and soundness of the national bank.
``(2) Authority of comptroller of the currency to require
divestiture.--The Comptroller of the Currency may order, at
any time, a national bank which holds subsurface rights of
real estate, and interests in such rights, pursuant to
paragraph (1) to divest such rights and interests if the
Comptroller determines that continued ownership of such
rights or interests is detrimental to the national bank.''.
(b) Technical Amendments to Redesignate Undesignated
Paragraphs as Subsections.--Section 5137 of the Revised
Statutes of the United States (12 U.S.C. 29) is amended--
(1) in the 1st undesignated paragraph by striking ``5137. A
national banking association may purchase'' and inserting the
following:
``SEC. 5137. POWER TO HOLD REAL ESTATE.
``(a) In General.--A national banking association may
purchase'';
(2) in the 3d undesignated paragraph, by striking ``For
real estate in the possession of a national banking
association upon application'' and inserting the following:
``(b) Extension of Divestment Period Authorized For
Ineligible Real Estate.--For real estate in the possession of
a national banking association upon application''; and
(3) in the 4th undesignated paragraph, by striking
``Notwithstanding the five-year holding limitation of this
section'' and inserting the following:
``(c) Extension of Holding Period Under Certain
Circumstances.--Notwithstanding the 5-year holding period
limitation contained in subsection (a)''.
TITLE IV--DISCLOSURE SIMPLIFICATION
SEC. 401. ALTERNATIVE DISCLOSURE FOR VARIABLE RATE, OPEN-
ENDED HOME SECURED CREDIT.
Section 127A(a)(2)(G) of the Truth in Lending Act (15
U.S.C. 1637a) is amended by inserting ``or, at the option of
the creditor, a statement that periodic payments may
substantially increase or decrease'' before the semicolon.
TITLE V--BANK EXAMINATION REPORT PRIVILEGE ACT
SEC. 501. AMENDMENT TO THE FEDERAL DEPOSIT INSURANCE ACT.
The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.)
is amended by adding at the end the following new section:
``SEC. 45. BANK SUPERVISORY PRIVILEGE.
``(a) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Depository institution.--The term `depository
institution' includes--
``(A) any institution which is treated in the same manner
as an insured depository institution under paragraph (3),
(4), (5), or (9) of section 8(b); and
``(B) any subsidiary or other affiliate of an insured
depository institution or an institution described in
subparagraph (A).
``(2) Supervisory process.--The term `supervisory process'
means any activity engaged in by a Federal banking agency to
carry out the official responsibilities of the agency with
regard to the regulation or supervision of depository
institutions.
``(3) Confidential supervisory information.--Subject to
paragraph (4), the term
[[Page H10213]]
`confidential supervisory information' means any of the
following information, or any portion of any such
information, which is treated as, or considered to be,
confidential information by a Federal banking agency,
regardless of the medium in which the information is conveyed
or stored:
``(A) Any report of examination, inspection, visitation, or
investigation, and information prepared or collected by a
Federal banking agency in connection with the supervisory
process, including any computer file, work paper, or similar
document.
``(B) Any correspondence of communication from a Federal
banking agency to a depository institution as part of an
examination, inspection, visitation, or investigation by a
Federal banking agency.
``(C) Any correspondence, communication, or document,
including any compliance and other reports, created by a
depository institution in response to any request, inquiry,
or directive from a Federal banking agency in connection with
any examination, inspection, visitation, or investigation and
provided to a Federal banking agency.
``(D) Any record of a Federal banking agency to the extent
it contains information derived from any report,
correspondence, communication or other information described
in subparagraph (A), (B), or (C).
(4) Ordinary business records excluded.--The term
`confidential supervisory information' shall not include any
book or record in the possession of the depository
institution routinely prepared by the depository institution
and maintained in the ordinary course of business or any
information required to be made publicly available by any
Federal law or regulation.
``(b) Bank Supervisory Privilege.--
``(1) Privilege established.--
``(A) In general.--All confidential supervisory information
shall be the property of the Federal banking agency that
created or requested the information and shall be privileged
from disclosure to any other person.
``(B) Prohibition on unauthorized disclosures.--No person
in possession of confidential supervisory information may
disclose such information, in whole or in part, without the
prior authorization of the Federal banking agency that
created or requested the information, except for a disclosure
made in published statistical material that does not
disclose, either directly or when used in conjunction with
publicly available information, the affairs of any person.
``(C) Agency waiver.--The Federal banking agency may waive,
in whole or in part, in the discretion of the agency, any
privilege established under this paragraph.
``(2) Exception.--No provision of paragraph (1) shall be
construed as preventing access to confidential supervisory
information by duly authorized committees of the United
States Congress or the Comptroller General of the United
States.
``(c) Treatment of State and Foreign Supervisory
Information.--In any proceeding before a court of the United
States, in which a person seeks to compel production or
disclosure by a State bank supervisor, foreign bank
regulatory or supervisory authority, Federal banking agency,
or other person, of information or a document prepared or
collected by a State bank supervisor or foreign bank
regulatory or supervisory authority that would, had they been
prepared or collected by a Federal banking agency, be
confidential supervisory information for purposes of this
section, the information or document shall be privileged to
the same extent that the information and documents of Federal
banking agencies are privileged under this Act.
``(d) Other Privileges Not Waived by Disclosure to Banking
Agency.--The submission by a depository institution of any
information to a Federal banking agency, a State bank
supervisor, or a foreign banking authority for any purpose in
the course of the supervisory process of such agency or
supervisor shall not be construed as waiving, destroying, or
otherwise affecting any privilege such institution may claim
with respect to such information under Federal or State law.
``(e) Discovery and Disclosure of Information.--
``(1) Information available only from banking agency.--
``(A) In general.--A person seeking discovery or
disclosure, in whole or in part, of confidential supervisory
information may not seek to obtain such information through
subpoena, discovery procedures, or other process from any
person, except that such information may be sought in
accordance with this section from the Federal banking agency
that created or requested the information.
``(B) Requests submitted to banking agency.--Any request
for discovery or disclosure of confidential supervisory
information shall be made to the Federal banking agency that
created or requested the information, which shall determine
within a reasonable time period whether to disclose such
information pursuant to procedures and criteria established
in regulations.
``(2) Exclusive federal court jurisdiction over disputes.--
``(A) In general.--Federal courts shall have exclusive
jurisdiction over actions or proceedings in which any party
seeks to compel disclosure of confidential supervisory
information.
``(B) Judicial review.--Judicial review of the final action
of a Federal banking agency with regard to the disposition of
a request for confidential supervisory information shall be
before a district court of the United States of competent
jurisdiction, subject to chapter 7 of part I of title 5,
United States Code.
``(C) Right to appeal.--Any court order that compels
production of confidential supervisory information may be
immediately appealed by the Federal banking agency and the
order compelling production shall be automatically stayed,
pending the outcome of such appeal.
``(f) Subpoenas.--
``(1) Authority to intervene.--In the case of any action or
proceeding to compel compliance with a subpoena, order,
discovery request, or other judicial or administrative
process with respect to any confidential supervisory
information relating to any depository institution, a Federal
banking agency and the depository institution may intervene
in such action or proceeding for the purpose of--
``(A) enforcing the limitations established in paragraph
(1) of subsections (b) and (e);
``(B) seeking the withdrawal of any compulsory process with
respect to such information; and
``(C) registering appropriate objections with respect to
the action or proceeding to the extent the action or
proceeding relates to or involves such information.
``(2) Right to appeal.--Any court order that compels
production of confidential supervisory information may be
immediately appealed by the Federal banking agency and the
order compelling production shall be automatically stayed,
pending the outcome of such appeal.
``(g) Regulations.--
``(1) Authority to prescribe.--Each Federal banking agency
may prescribe such regulations as the agency considers to be
appropriate, after consultation with the other Federal
banking agencies and the National Credit Union Administration
Board, to carry out the purposes of this section.
``(2) Authority to require notice.--Any regulations
prescribed by a Federal banking agency under paragraph (1)
may require any person in possession of confidential
supervisory information to notify the Federal banking agency
whenever the person is served with a subpoena, order,
discovery request, or other judicial or administrative
process requiring the personal attendance of such person as a
witness or requiring the production of such information in
any proceeding.
``(h) Access in Accordance With Regulations and Orders.--
Notwithstanding any other provision of this section, the
Federal banking agency may, without waiving any privilege,
authorize access to confidential supervisory information for
any appropriate governmental, law enforcement, or public
purpose in accordance with agency regulations or orders.''.
SEC. 502. AMENDMENT TO THE FEDERAL CREDIT UNION ACT.
Title II of the Federal Credit Union Act (12 U.S.C. 1781 et
seq.) is amended by adding at the end the following new
section:
``SEC. 215. CREDIT UNION SUPERVISORY PRIVILEGE.
``(a) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Supervisory process.--The term `supervisory process'
means any activity engaged in by the Administration to carry
out the official responsibilities of the Administration with
regard to the regulation or supervision of credit unions.
``(2) Confidential supervisory information.--The term
`confidential supervisory information' means any of the
following information, or any portion of any such
information, which is treated as, or considered to be,
confidential information by the Administration, regardless of
the medium in which the information is conveyed or stored:
``(A) Any report of examination, inspection, visitation, or
investigation, and information prepared or collected by the
Administration in connection with the supervisory process,
including any computer file, work paper, or similar document.
``(B) Any correspondence or communication from the
Administration to a credit union arising from or relating to
an examination, inspection, visitation, or investigation by
the Administration.
``(C) Any correspondence, communication, or document,
including any compliance and other reports, created by a
credit union in response to any request, inquiry, or
directive from the Administration in connection with any
examination, inspection, visitation, or investigation and
provided to the Administration, other than any book or record
in the possession of the credit union routinely prepared by
the credit union and maintained in the ordinary course of
business or any information required to be made publicly
available by any Federal law or regulation.
``(D) Any record of the Administration to the extent it
contains information derived from any report, correspondence,
communication or other information described in subparagraph
(A), (B), or (C).
``(b) Credit Union Supervisory Privilege.--
``(1) Privilege established.--
``(A) In general.--All confidential supervisory information
shall be the property of the Administration and shall be
privileged from disclosure to any other person.
``(B) Prohibition on unauthorized disclosures.--No person
in possession of confidential supervisory information may
disclose
[[Page H10214]]
such information, in whole or in part, without the prior
authorization of the Administration, except for a disclosure
made in published statistical material that does not
disclose, either directly or when used in conjunction with
publicly available information, the affairs of any person.
``(C) Agency waivers.--The Board may waive, in whole or in
part, in the discretion of the Board, any privilege
established under this paragraph.
``(2) Exception.--No provision of paragraph (1) shall be
construed as preventing access to confidential supervisory
information by duly authorized committees of the United
States Congress or the Comptroller General of the United
States.
``(c) Other Privileges Not Waived by Disclosure to
Administration.--The submission by a credit union of any
information to the Administration or a State credit union
supervisor for any purpose in the course of the supervisory
process of the Administration or such supervisor shall not be
construed as waiving, destroying, or otherwise affecting any
privilege such institution may claim with respect to such
information under Federal or State law.
``(d) Discovery and Disclosure of Information.--
``(1) Information available only from administration.--
``(A) In general.--A person seeking discovery or
disclosure, in whole or in part, of confidential supervisory
information may not seek to obtain such information through
subpoena, discovery procedures, or other process from any
person, except that such information may be sought in
accordance with this section from the Administration.
``(B) Request submitted to administration.--Any request for
discovery or disclosure of confidential supervisory
information shall be made in the Administration, which shall
determine within a reasonable time period whether to disclose
such information pursuant to procedures and criteria
established in regulations.
``(2) Exclusive federal court jurisdiction over disputes.--
``(A) In general.--Federal courts shall have exclusive
jurisdiction over actions or proceedings in which any party
seeks to compel disclosure of confidential supervisory
information.
``(B) Judicial review.--Judicial review of the final action
of the Administration with regard to the disposition of a
request for confidential supervisory information shall be
before a district court of the United States of competent
jurisdiction, subject to chapter 7 of part I of title 5,
United States Code.
``(C) Right to appeal.--Any court order that compels
production of confidential supervisory information may be
immediately appealed by the Administration and the order
compelling production shall be automatically stayed, pending
the outcome of such appeal.
``(e) Subpoenas.--
``(1) Authority to intervene.--In the case of any action or
proceeding to compel compliance with a subpoena, order,
discover request, or other judicial or administrative process
with respect to any confidential supervisory information
relating to any credit union, the Administration and the
credit union may intervene in such action or proceeding for
the purpose of--
``(A) enforcing the limitations established in paragraph
(1) of subsections (b) and (d);
``(B) seeking the withdrawal of any compulsory process with
respect to such information; and
``(C) registering appropriate objections with respect to
the action or proceeding to the extent the action or
proceeding relates to or involves such information.
``(2) Right to appeal.--Any court order that compels
production of confidential supervisory information may be
immediately appealed by the Administration and the order
compelling production shall be automatically stayed, pending
the outcome of such appeal.
``(f) Regulations.--
``(1) Authority to prescribe.--The Board may prescribe such
regulations as the Board considers to be appropriate, after
consultation with the Federal banking agencies (as defined in
section 3 of the Federal Deposit Insurance Act), to carry out
the purposes of this section.
``(2) Authority to require notice.--Any regulations
prescribed by the Administration under paragraph (1) may
require any person in possession of confidential supervisory
information to notify the Administration whenever the person
is served with a subpoena, order, discovery request, or other
judicial or administrative process requiring the personal
attendance of such person as a witness or requiring the
production of such information in any proceeding.
``(g) Access in Accordance With Regulations and Orders.--
Notwithstanding any other provision of this section, the
Administration may, without waiving any privilege, authorize
access to confidential supervisory information for any
appropriate governmental, law enforcement, or public purpose
in accordance with agency regulations or orders.''.
TITLE VI--TECHNICAL CORRECTIONS
SEC. 601. TECHNICAL CORRECTION RELATING TO DEPOSIT INSURANCE
FUNDS.
(a) In General.--Section 2707 of the Deposit Insurance
Funds Act of 1996 (12 U.S.C. 1821 note; Public Law 104-208;
110 Stat. 3009-496) is amended by striking ``7(b)(2)(C)'' and
inserting ``7(b)(2)(E)''.
(b) Effective Date.--The amendment made by subsection (a)
shall be deemed to have the same effective date as section
2707 of the Deposit Insurance Funds Act of 1996.
SEC. 602. RULES FOR CONTINUATION OF DEPOSIT INSURANCE FOR
MEMBER BANKS CONVERTING CHARTERS.
Section 8(o) of the Federal Deposit Insurance Act (12
U.S.C. 1818(o)) is amended in the second sentence, by
striking ``subsection (d) of section 4'' and inserting
``subsection (c) or (d) of section 4''.
SEC. 603. WAIVER OF CITIZENSHIP REQUIREMENT FOR NATIONAL BANK
DIRECTORS.
Section 5146 of the Revised Statutes of the United States
(12 U.S.C. 72) is amended in the 1st sentence, by inserting
before the period ``, and waive the requirement of
citizenship in the case of not more than a minority of the
total number of directors of a national bank which is an
affiliate (as defined in section 3(w)(6) of the Federal
Deposit Insurance Act) of a foreign bank''.
SEC. 604. TECHNICAL AMENDMENT TO PROHIBITION ON COMPTROLLER
INTERESTS IN NATIONAL BANKS.
Section 329 of the Revised Statutes of the United States
(12 U.S.C. 11) is amended by striking ``to be interested in
any association issuing national currency under the laws of
the United States'' and inserting ``to hold an interest in
any national bank''.
SEC. 605. APPLICABILITY OF LIMITATION TO PRIOR INVESTMENTS.
(a) In General.--Section 18(s) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(s)) is amended by adding at the
end the following new paragraph:
``(5) Certain investments.--Paragraph (1) shall not apply
to investments lawfully made before April 11, 1996, by a
depository institution in a Government-sponsored
enterprise.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply as if such amendment had been included in the
amendment made by section 2615(b) of the Economic Growth and
Regulatory Paperwork Reduction Act of 1996 as of the
effective date of such section.
TITLE VII--SPECIAL RESERVE FUNDS
SEC. 701. ABOLITION OF SPECIAL RESERVE FUNDS.
(a) SAIF Special Reserve.--Section 11(a)(6) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)(6)) is amended by
striking subparagraph (L).
(b) Special Reserve of the Deposit Insurance Fund.--Section
2704 of the Deposit Insurance Funds Act of 1996 is amended--
(1) by striking subsection (b);
(2) by striking paragraph (4) of subsection (d);
(3) in subsection (d)(6)(C)(i), by striking ``(6) and (7)''
and inserting ``(5), (6), and (7)''; and
(4) in subsection (d)(6)(C)(ii), by striking ``(6)'' and
inserting ``(5)''.
(c) Effective Date.--The amendments made by this section
shall apply as if such amendments had been included in the
Deposit Insurance Funds Act of 1996 as of the date of the
enactment of such Act.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
New Jersey (Mrs. Roukema) and the gentleman from New York (Mr. LaFalce)
each will control 20 minutes.
The Chair recognizes the gentlewoman from New Jersey (Mrs. Roukema).
Mrs. ROUKEMA. Mr. Speaker, I yield myself such time as I may consume.
(Mrs. ROUKEMA asked and was given permission to revise and extend her
remarks.)
Mrs. ROUKEMA. Mr. Speaker, at this hour of the night I want to thank
the Speaker and say to my colleagues here that we have a very important
bill here that is somewhat complex but nevertheless we have strong
bipartisan support for, and that is the reason we are here under
suspension of the rules. We are considering tonight what has become a
persistent issue with the Banking Committee and the Congress, namely
legislation to relieve the regulatory burden on financial institutions
and seeking ways to streamline the regulatory process. It is a very
important issue.
We talk a lot about deregulation but here is one way we can actually
take some substantive action to deal with it. This Depository
Institution Regulatory Streamlining Act of 1998 will provide important
regulatory relief for financial institutions. I certainly want to thank
the gentleman from Iowa (Mr. Leach) for his assistance. Without his
support and strong leadership, we would not be here this evening. Also
I want to acknowledge the work of the gentleman from New York (Mr.
LaFalce) the ranking member of the full committee who is with us
tonight, and also the ranking member of the subcommittee, the gentleman
from Minnesota (Mr. Vento). We have had, as I stated, strong bipartisan
support with significant reforms. The gentleman from Minnesota and I
worked very hard to produce this bill at the subcommittee level, and I
believe we have come
[[Page H10215]]
up with a good product. I regret that we do not have everything that we
would have liked in this bill, but it is a significant step forward.
Certainly the gentleman from Minnesota and I are intent on continuing
our work together, and that there are other agreements on changes that
we might be able to make in the future, namely at least in one respect
and probably in others as well, but the one that I would single out
here tonight is the debit card area, where next year I hope we can take
some action. Indeed, we have a letter here which we have agreed, on a
bipartisan basis, to send to the Federal Reserve regarding the customer
notification issue, and we hopefully will be able to solve that
problem.
I also should mention not only the interest of the gentleman from
Minnesota (Mr. Vento) the gentleman from New York (Mr. LaFalce), the
gentleman from Iowa (Mr. Leach) and mine but also the gentleman from
Wisconsin (Mr. Barrett), a strongly contributing member of our
committee.
I would like to point out that the subcommittee had the
responsibility to assure that Federal banking laws and regulations in
the supervisory system not only promote the safety and soundness of the
banking system but in so doing it is important to recognize that we
need to review on a regular basis the legal requirements that have been
imposed to assure ourselves the continuing efficacy and reliability of
the system. Clearly as we all know, and we see worldwide, financial
markets and the banking industry are evolving at a tremendous pace, and
as changes in the industry occur, old approaches may or may not be
appropriate and new ones need to be advanced. That is what this bill is
about.
Because of the time here and because of the unanimity of opinion, we
certainly do want to hear from our chairman the gentleman from Iowa
(Mr. Leach), other members of the committee and certainly the gentleman
from New York (Mr. LaFalce), I will only outline the major portions of
the bill. It has a wide ranging number of subjects, but the five most
important provisions or most singular provisions are as follows.
Interest on the sterile reserves is the first major issue that we
deal with. Without going into the details of it, the bill would
authorize the Federal Reserve Board to pay interest on reserve
balances, both required and excess reserve balances that are held at
Federal Reserve banks. This is a significant change in banking law with
very positive effects for both the banks and the Federal Reserve, and
it will make it far easier to manage the economy. Without going into
all the different aspects of it, I would simply point out that this
provision is strongly supported by the Federal Reserve Board as well as
by the banking industry.
Our colleagues on the committee, both the gentleman from Washington
(Mr. Metcalf), who is here this evening, we will be hearing from and
the gentlewoman from New York (Mrs. Kelly) have been the prime
advocates and leaders on this issue. I am sure we will be interested in
hearing the gentleman from Washington's perspective on this and other
portions of the bill.
{time} 0120
The second issue is the interest on business checking. It is a major
component of the bill. Financial institutions are currently prohibited
by Federal statute from paying interest on business transaction
accounts, and actually, as so often happens in these cases and other
business aspects of our economy, financial institutions have
circumvented the statutory provision in different ways and have
demonstrated that it is really not a current provision that we should
keep in place.
So we are changing this outdated prohibition of interest on business
checking and have provided a 6-year transition period for the
elimination of the interest on business checking prohibition so that
all parties can make adjustments to this proposal.
This has been somewhat controversial but we think we have reached an
accommodation that should satisfy all parties, and it should be noted
that the National Federation of Independent Business, the Treasury
Management Association and the U.S. Chamber of Commerce all support
repeal of that provision.
We also have in the bill the Bank Examination Report Privilege Act.
Now that sounds like a lot but it establishes a privilege for
correspondence, materials and information which regulators collect from
banks and it is a very essential modification that should be, as far as
we can tell and the way we have worked it out with all interested
parties, including the American Bar Association, that it will bring us
up to modern times and still not create a privilege for all documents
which are turned over to the regulators.
The gentleman from Florida (Mr. McCollum), a member of the committee,
was very instrumental in helping us reach this conclusion. The SAIF
special reserve fund, and the time is going on so I shall simply
mention the SAIF special reserve fund which now is possible to adjust
and repeal the special reserve fund because of the conditions, both in
the BIF and the SAIF and the sound economy that we have, and suffice it
to say that all parties are completely supportive of that provision.
Of course, we like to hear this: The CBO has scored this provision
and reported that there is no cost.
I am going to conclude now, without going into the details of the
CEBA banks, but suffice it to say that this makes an adjustment and a
reform from a 1987 law and one that is included in H.R. 10 but it has
the support of everyone on all sides. We think it is long overdue
reform.
Mr. Speaker, I reserve the balance of my time and would wait to hear
the other Members.
Mr. LaFALCE. Mr. Speaker, I yield myself such time as I may consume.
(Mr. LaFalce asked and was given permission to revise and extend his
remarks.)
Mr. LaFALCE. Mr. Speaker, I rise in support of H.R. 4364.
Mr. Speaker, I reserve the balance of my time.
Mrs. ROUKEMA. Mr. Speaker, I yield such time as he may consume to the
gentleman from Iowa (Mr. Leach), the chairman of the Committee on
Banking and Financial Services.
Mr. LEACH. Mr. Speaker, I thank the gentlewoman for yielding.
Mr. Speaker, the principal beneficiaries of the Depository
Institution Regulatory Streamlining Act are the Nation's small
businesses and their customers. The bill, so ably put together by the
Subcommittee on Financial Institutions and Consumer Credit, under the
leadership of the gentlewoman from New Jersey (Mrs. Roukema) and the
gentleman from Minnesota (Mr. Vento) will repeal overtime prohibitions
in current law that bar banks from paying interest on business checking
accounts.
In addition, the bill authorizes financial institutions to establish
on an interim basis 24-transaction-a-month money market accounts for
businesses. In effect, this means that small businesses, which have
fewer options in money management than their larger competitors, will
be able to have their money work for them.
The gentlewoman from New York (Mrs. Kelly) deserves special attention
for her contributions in helping craft this important provision.
Given the liquidity problems increasing in American banking, the
above provisions will enable the principal providers of credit, to
midsized American business, to more efficiently serve their customers.
I would like also to call attention to one other provision of the
bill and that involves the Federal Reserve Board being allowed for the
first time to pay interest to depository institutions on the money they
are required to keep on reserve with the Fed.
This would appear on its face to be only fair. Banks should be
treated as equitably as others and allowed to collect interest on their
savings. A critical upshot of advancing this commonsense precept is
that the Fed will be able to better manage monetary policy because
disincentives for holding funds at the Fed will be reduced.
This important provision has been advanced with great effectiveness
over the past several Congresses by the gentleman from Washington (Mr.
Metcalf) and he deserves enormous credit for introducing legislation in
this regard and keeping it before the Committee on Banking, Housing,
and Urban Affairs for such a long period of time.
In closing, I would like to thank or note again the hard work in
bringing this bill to the floor by our subcommittee chairman, the
gentlewoman from
[[Page H10216]]
New Jersey (Mrs. Roukema), the ranking member of the full committee,
the gentleman from New York (Mr. LaFalce), and the gentleman from
Minnesota (Mr. Vento), and, of course, particularly to the gentleman
from Washington (Mr. Metcalf), who has worked so tirelessly for the
principles that are in this bill.
Mrs. ROUKEMA. Mr. Speaker, I yield 4 minutes to the distinguished
gentleman from Washington (Mr. Metcalf), a member of the committee.
(Mr. METCALF asked and was given permission to revise and extend his
remarks.)
Mr. METCALF. Mr. Speaker, let me first thank the gentleman from Iowa
(Mr. Leach), the chairman of the Committee on Banking, Housing, and
Urban Affairs, the gentlewoman from New Jersey (Mrs. Roukema), the
Chair of the Subcommittee on Financial Institutions and Consumer
Credit, and the many members of the subcommittee.
I also thank the committee for adopting my bill, the Small Business
Banking Act of 1997, as a section of today's bill. This bill represents
a culmination of bipartisan effort that many have worked diligently to
achieve.
Many people are unaware that small businesses are prohibited, by an
outdated 60-year-old law that prevents them from earning interest on
their business checking accounts. To address these problems, I have in
both the 104th and 105th Congresses introduced legislation to simply
allow, not mandate but to allow, the paying of interest on business
checking accounts now prohibited under law.
I have heard from hundreds of banks across the Nation. Given the late
hour, I will just mention a few. A banker from Iowa wrote, ``There
seems to be little reason to continue to prohibit interest-bearing
checking accounts for businesses or corporations. Further, small
community banks such as ourselves must either spend additional dollars
to offer a sweep type of product or lose small business customers'
accounts.''
A banker from Wisconsin wrote, ``Small banks are now required to use
creative repurchasing agreement accounting in an attempt to compete.
Why are our customers being disadvantaged? Please level the playing
field.''
In expressing his support of this legislation, Federal Reserve
Chairman Alan Greenspan wrote, ``It would eliminate a significant
distortion in financial markets that places small businesses at a
particular disadvantage. Moreover, it would assist us in our
implementation of monetary policy. Permitting depository institutions
to pay interest on demand deposits would eliminate a constraint that
serves no purpose and imposes unnecessary costs on both businesses and
depository institutions.''
The U.S. Chamber of Commerce, the world's largest business
federation, wrote in support of the bill, ``By allowing for more open
competition, this legislation offers an important opportunity to small
business owners to establish a more complete relationship with their
financial service providers.''
{time} 0130
The list goes on and on of those who support this legislation,
including the National Federation of Independent Businesses, the Mutual
Fund Company, T. Rowe Price, and America's Community Bankers.
In conclusion, this is a chance to do something tangible to help
every small business in every congressional district. America's small
businesses cannot afford for Congress to further delay lifting this
outdated and anticompetitive prohibition. I encourage my colleagues to
support this legislation.
Mr. Speaker, I yield back the balance of my time.
Mr. LaFALCE. Mr. Speaker, how much time do I have remaining.
The SPEAKER pro tempore (Mr. Blunt). The gentleman from New York (Mr.
LaFalce) has 19\1/2\ minutes remaining.
Mr. LaFALCE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I would be remiss if I did not congratulate everyone
associated with this bill, most especially the chairman of the full
committee, the chairman of the subcommittee, and the distinguished
ranking member of the subcommittee the gentleman from Minnesota (Mr.
Vento) also.
I do want to single out that the chairman of the full committee, too.
There were provisions within the subcommittee bill that was reported
out of subcommittee that were ardently sought by Members of his own
party, very adamantly opposed by ours.
There were provisions in the bill, other provisions that were
vehemently opposed by ours and some provisions that Members from our
side wanted to add to the bill. I think he took a very judicious,
prudential approach in producing in a bipartisan fashion a bill that
everyone today could support and is deserving of passage, not only by
this House, but by the Senate, and deserving of signature by the
President of the United States. I hope that will come about.
I thank the gentleman from Iowa (Mr. Leach) and the gentlewoman from
New Jersey (Mrs. Roukema) for their cooperative attitude very much.
Mr. Speaker, I yield back the balance of my time.
Mrs. ROUKEMA. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I do thank the ranking member for those kind words. It
does show how we can be a standard for the rest of the Congress in our
bipartisan efforts here. I again congratulate the chairman of the full
committee. Mr. Speaker I have no further requests for time.
Mr. BEREUTER. Mr. Speaker, this Member rises today in support of H.R.
4364, the Financial Institution Regulatory Streamlining Act of 1998.
This Member has a long history of initiating and supporting regulatory
relief efforts and this bill is another substantial step toward this
end.
This Member would like to thank the distinguished gentlelady, [Mrs.
Roukema] the Chairperson of the Banking Subcommittee on Financial
Institutions Subcommittee from New Jersey, for introducing this bill
and for her efforts in bringing H.R. 4364 to the House Floor. This
Member would also like to express his appreciation to the distinguished
gentleman from Iowa [Mr. Leach], the Chairman of the full Banking
Committee, and the distinguished gentleman from New York [Mr. LaFalce],
the Ranking Minority Member of the full Banking Committee, for their
efforts in bringing this measure to the House Floor today.
Before going into specific provisions of H.R. 4364, this Member
believes that it is imperative to note that efforts directed toward
regulatory burden-relief benefits both financial institutions and
consumers. It allows financial institutions to conduct their business
more efficiently as well as reducing the costs of banking to the
consumer.
This Member is supportive of H.R. 4364 for the following three
reasons.
1. H.R. 4364 would allow the Federal Reserve to pay interest on
reserve balances maintained by depository institutions at Federal
Reserve Banks at a rate no greater than the general level of short-term
interest rates. This Member understands and appreciates the beneficial
effect of this provision since it enhances the liquidity of depository
institutions which in turn will positively impact the manner in which
depository institutions conduct their lending practices.
2. This measure also applauds the H.R. 4364 provision which would
allow for the payment of interest on business checking accounts
effective October 1, 2004. This provision, which is both pro-business
and pro-commerce, eliminates an undue and unnecessary regulation.
3. This Member would also like to highlight three under-recognized,
but important parts of H.R. 4364 which will decrease the everyday
regulatory burden on financial institutions.
For instance, provision in H.R. 4364 would require Federal Banking
Agencies to use plain English in all proposed and final rules published
after January 1, 1999. This measure will help all financial
institutions from confusing and perplexing rules.
Furthermor, H.R. 4364 permits the Comptroller of the Currency to
waive the current restriction on having no more than 25 directors serve
on the board of national banks. It appears to this Member that there
actually is no rationale to support the current regulatory limit of 25.
This measure appropriately enhances the flexibility and freedom of a
National Bank.
One additional small, but consequential, provision of regulatory
relief is the repeal of the Dividend Notice Requirement. Financial
institutions are many times inundated with regulatory paperwork. This
simple provision would eliminate the 30-day advance notice to the
Office of Thrift Supervision of a dividend payment by a savings
association to its savings and loan holding company.
In closing, because of the above reasons and others, this Member
would encourage the House to vote in support of H.R. 4364.
Mr. METCALF. Mr. Speaker, let me first thank the Chairman of the
Banking Committee
[[Page H10217]]
and also thanks to the Gentlelady from New Jersey, the Chair of the
Financial Institutions Subcommittee, and the many members of the
Subcommittee. I also thank the committee for adopting my bill--The
Small Business Banking Act of 1997, as a major section of today's
legislation. This Act now represents a culmination of bi-partisan
effort that many have worked diligently to perfect.
Many people are unaware that small businesses are prohibited by an
outdated 60 year-old law that prevents them from earning interest on
their business checking accounts. What's more ironic is that many banks
are actually clamoring to have the choice to serve their business
customers by offering interest on these accounts.
To address these problems, I have, in both the 104th and 105th
Congresses, introduced legislation to allow, not mandate, but to allow
banks and savings institutions to pay interest on business checking
accounts, which is now prohibited under law.
By lifting the current prohibition against banks offering interest,
the legislation would allow banks to give small businesses this
critically needed option. It would also allow banks the opportunity to
better address the business concerns of their local communities without
having to undergo costly, cumbersome procedures.
But don't take my word for it. Listen to some comments I have
received from community banks across the nation:
A banker from Iowa wrote: ``There seems little reason to continue to
prohibit interest bearing checking accounts for businesses or
corporations . . . Further, small community banks such as ourselves
must either spend additional dollars to offer a sweep type of product
or lose a small business customers' accounts.''
A banker from Wisconsin wrote: ``Small banks are now required to use
`creative repurchase agreement accounting' in an attempt to compete.
Why are our customers being disadvantaged? Please level the playing
field.''
In expressing his support for the legislation, Federal Reserve
Chairman Alan Greenspan wrote: ``It would eliminate a significant
distortion in financial markets that places small businesses at a
particular disadvantage. Moreover, it would assist us in our
implementation of monetary policy . . . Permitting depository
institutions to pay interest on demand deposits would eliminate a
constraint that serves no purpose and imposes unnecessary costs on both
businesses and depository institutions.''
The U.S. Chamber of Commerce--the world's largest business
federation--wrote in support of the bill: ``By allowing for more open
competition, your legislation offers an important opportunity to small
business owners to establish a more complete relationship with their
financial service providers.''
The list goes on of those who support this bill, including: The
National Federation of Independent Businesses; T. Rowe Price, the
mutual fund company; and America's Community Bankers.
In closing, this is a chance to do something tangible to help every
small business in every congressional district. America's small
businesses cannot afford for Congress to further delay lifting this
outdated and anti-competitive prohibition. I yield back the balance of
my time.
Mr. CASTLE. Mr. Speaker, I rise in support of H.R. 4364, which will
provide some fair and needed relief from unnecessary regulations for
many of our banks and other financial institutions. I want to thank
Chairman Roukema of the financial institutions subcommittee for putting
this bill together and to Chairman Leach of the full committee for
helping to bring it to the floor this year.
Balancing efforts to remove unnecessary regulations, improve
competition and protect consumers is never easy, but I think this bill
balances all those important goals and will contribute to strengthening
the financial services industry and promote new products for consumers.
I would like to comment in particular on sections 222 and 223 of the
bill which I believe will promote competition and increase the quality
of financial products available to consumers. These sections will lift
some outdated restrictions from limited-purpose banks and allow these
institutions to offer new products consistent with their charter;
cross-market the financial products of their affiliates; offer business
credit cards to their customers; and correct problems in a reasonable
period of time in consultation with the Federal Reserve. These changes
will increase the products available to consumers without unfairly
affecting other financial service providers. This is consistent with
the intent of the entire bill which seeks to help businesses and
consumers while maintaining sound regulation.
Again, I want to thank all the members involved for their cooperative
efforts on this legislation, and I urge the House to approve H.R. 4364.
Mrs. KELLY. Mr. Speaker, I thank the gentlewoman from New Jersey for
yielding me time. Mr. Chairman, I rise today in strong support of H.R.
4364, the Depository Institution Regulatory Streamlining Act. This
legislation represents the tireless efforts of many of my colleagues,
especially the gentleman from Washington, Mr. Metcalf.
H.R. 4364 is a well balanced legislative package of financial
services regulatory relief. I was pleased when provisions from my
legislation, H.R. 4082, were included in this bill and know that these
provisions will help banks better serve their customers.
One of these provisions will allow banks to conduct ``24 sweeps'' in
a given month for their commercial checking customers. Currently, banks
are prohibited from paying interest on commercial checking accounts.
These sweeps allow banks to move funds sitting in a commercial checking
account into an interest bearing account daily after all transactions
have occurred in the commercial account. The next morning the money
would then be ``swept'' back into the commercial accounts, with
interest. Currently, banks are only allowed to do this six times a
month. Operation of additional sweeps each month would not affect the
safety and soundness of banks and will allow banks to pay interest on
commercial checking accounts.
In my discussions with banks, I have found that complying with this
provision would take minimal effort since we will only be increasing
their ability to sweep from six times a month to 24. This initiative
represents a real ``win-win'' for banks and businesses.
I want to again thank the gentleman from Washington for his hard work
on this bill, as well as the gentlewoman from New Jersey, Mrs. Roukema,
the gentleman from Minnesota, Mr. Vento and the committee staff who
worked so hard to make this bill a reality.
Lastly, I am pleased with the bipartisan consensus we have achieved
with this legislation and I ask my colleagues from both sides of the
aisle to join me in support for House passage of H.R. 4364.
Mr. VENTO. Mr. Speaker, I rise in support of H.R. 4364, the
Depository Institution Regulatory Streamlining Act of 1998, legislation
that I have worked on for many months and which I cosponsored at
introduction.
I am pleased that the anti-CRA amendment that forced the opposition
of all the Democrats on the Financial Institutions Subcommittee has
been removed because it would effectively exempt over 80% of financial
institutions from CRA, I have remaining concerns.
I am uncomfortable with the extension of the delay in allowing
interest on business checking accounts, a sound public policy change
that should really be effective as soon as possible, from three years
to six years. However, because we were able to find an accommodation
for a very minor notification provision for consumers about the debit
cards they are now receiving as replacement cards for the ATM cards and
the response to the F.T.C. concerns on broadcast disclosure I'm for the
time supporting this process.
I do want to note for all the Members of the House, that at the
Financial Institutions Subcommittee, we worked well together to assure
that we would not be condemned to repeat history on regulatory burden
relief. I thank the gentlelady from New Jersey, Chairwoman Roukema, and
her staff, for their work with us on this legislation. We crafted a
balanced bill on which we held a comprehensive hearing. We worked with
Members, the regulators and consumer and industry interests to advance
a solid, yet basically non-controversial regulatory burden relief bill
that did not adversely affect consumers, nor undercut some of the very
laws that protect safety and soundness of our financial institutions.
That is not to say that this bill is completely without controversy.
Title I, which contains the provisions to allow interest on business
checking, a big plus for small-and medium-sized businesses which are
not sweep always able to take advantage of the so-called accounts, also
allows the Federal Reserve Board to pay interest on sterile reserves.
Obviously, that policy, path has a price and we chose in the bill to
pay for the scoring by using the Fed surplus. How far past this House
floor that these provisions will advance is not clear to me at this
time.
This bill provides for the elimination of the SAIF special reserves
which in pulling off funds and reserving them from the Savings
Association Insurance Fund could set up a differential premium and get
us back in the BIF-SAIF ``situation'' that engulfed us in the last
Congress. I support this provision that is supported by the FDIC.
H.R. 4364 also provides some housecleaning type provisions for the
banking regulators, bringing outdated statutes up to date, clarifying
the meaning of changes made in previous laws, and providing technical
corrections to many laws.
Let me be clear, this bill is not about consumer burden relief which
should have been in order. Indeed, our Financial Institutions
Subcommittee held hearings on some timely topics including privacy
issues, unsolicited loan checks and other provisions that could
[[Page H10218]]
have been added. Many Democratic Members, including myself, would have
liked to include positive proactive legislation for consumers. For
example, I would have like to increase the limit for the applicability
for non-mortgage Truth In Lending Act coverage from $25,000 to $50,000
so that consumers who buy a vehicle that costs more than $25,000 would
be protected by TILA. These kinds of provisions, however, were held off
in the spirit of pragmatism, trying to move a bill quickly and not to
bog it down in controversy.
Let me finally say, regulatory burden relief can generally be a good
premise, but not if it breaches consumer protection OR safety and
soundness boundaries. It cannot be an excuse for the lowest common
denominator with regards to consumers, communities and safety and
soundness. I supported working on this legislation so that we can
maintain a non-partisan, non-controversial stance on some needed
changes. There are unnecessarily changes, however, that were suggested.
For example, there are provisions in the regulatory relief bill that
has been pending in the other body and I do find very egregious. They
are absent in this bill and I appreciate the willingness to work
together on this bill without those sort of provisions. That is what
has made this bill a suspension bill today. Because of our less
controversial approach, we may well have facilitated the positive
consideration of this legislation in the very limited window we have
left.
Mrs. ROUKEMA. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from New Jersey (Mrs. Roukema) that the House suspend the
rules and pass the bill, H.R. 4364, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________