[Congressional Record Volume 145, Number 97 (Monday, July 12, 1999)]
[Extensions of Remarks]
[Page E1509]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

[[Page E1509]]



                     FINANCIAL SERVICES ACT OF 1999

                                 ______
                                 

                               speech of

                        HON. JOHN J. DUNCAN, JR.

                              of tennessee

                    in the house of representatives

                         Thursday, July 1, 1999

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 10) to 
     enhance competition in the financial services industry by 
     providing a prudential framework for the affiliation of 
     banks, securities firms, and other financial service 
     providers, and for other purposes:

  Mr. DUNCAN. Madam Chairman, I would like to thank the gentlelady from 
New Jersey for all of her hard work on this legislation and her efforts 
on this amendment. I would also like to discuss another accounting 
related matter.
  I have been informed by a constituent that the Federal Accounting 
Standards Board (FASB) may propose a rule eliminating an accounting 
practice known as ``pooling''.
  Pooling is an accounting method used when two companies merge to 
become one.
  In a pooling, the acquiring and acquired companies simply combine 
their financial statements.
  I believe it is important that this issue be discussed publicly 
before any final rule is implemented.
  In addition, it is my understanding that in the past the Federal 
Accounting Standards Board has not always sought adequate input from 
the accounting or banking communities on proposed changes in 
regulations.
  I would like to thank the chairwoman for her efforts on the pending 
amendment. I would also appreciate it if she would keep this in mind 
when the conference committee meets so that we include language either 
in this bill or future legislation to ensure that this process is an 
open and fair one.
  I thank the gentlelady for her time and attention to this matter.

                          ____________________