[Congressional Record Volume 155, Number 186 (Friday, December 11, 2009)]
[Extensions of Remarks]
[Page E2976]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         WALL STREET REFORM AND CONSUMER PROTECTION ACT OF 2009

                                 ______
                                 

                               speech of

                         HON. CAROLYN McCARTHY

                              of new york

                    in the house of representatives

                      Wednesday, December 9, 2009

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 4173) to 
     provide for financial regulatory reform, to protect consumers 
     and investors, to enhance Federal understanding of insurance 
     issues, to regulate the over-the-counter derivatives markets, 
     and for other purposes:

  Mrs. McCARTHY of New York. Madam Chair, I would like to thank 
Chairman Frank and his staff for working with me on a clarification 
included in the Manager's Amendment. The provision addresses how the 
Financial Services Oversight Council and the Federal Reserve should 
interact and supervise financial holding companies that do not own 
banks, but which are subject to stricter standards because the Council 
has found them to be systemically risky.
  The provision requires the Federal Reserve to be flexible when 
applying the standards to non-bank holding companies, rather than using 
a bank-centric approach that may not be appropriate for their 
structure. In addition, the Federal Reserve will have to consult with 
the Federal Insurance Office when determining how best to supervise 
insurance companies that are subject to stricter standards. For 
companies that are also foreign-based, the Federal Reserve and the 
Oversight Council must take into consideration if the company has 
comparable home-country supervision and decide how best to coordinate 
with that supervision. These minor clarifications help to ensure that 
institutions which are not banks will not be forced to comply with 
regulations that do not fit their business structure.
  The beauty of the U.S. financial system is diversity, both in 
products and in structure. It is important to preserve that diversity 
for the purpose of domestic and international competition. I thank 
Chairman Frank for his willingness to incorporate these changes into 
the manager's amendment.

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