[Congressional Record Volume 156, Number 41 (Friday, March 19, 2010)]
[Senate]
[Pages S1776-S1777]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        PETITIONS AND MEMORIALS

  The following petitions and memorials were laid before the Senate and 
were referred or ordered to lie on the table as indicated:

       POM-91. A resolution adopted by the Senate of the 
     Commonwealth of Puerto Rico urging the Federal Deposit 
     Insurance Corporation (FDIC) to show temperance in the 
     application of asset valuation rules to minority-owned banks 
     established in Puerto Rico, to establish effective measures 
     so as to expedite the granting of credit, and to help local 
     banks in their financial recovery and capitalization; to the 
     Committee on Banking, Housing, and Urban Affairs.

                       Senate Resolution No. 860

       During the last year, the finances of a significant number 
     of banking institutions around the world were severely 
     impacted as a result of the worldwide economic crisis. Puerto 
     Rico was not the exception in this serious and complex 
     financial problem. We see more often news reporting such 
     problems and governments assessing financial proposals and 
     alternatives to provide mechanisms so as to address and stop 
     the loss suffered by this sector, as well as strengthening 
     their economies by promoting and revitalizing banking 
     activities. Certainly, success in the recovery of the global 
     economy lies in achieving the delicate balance between the 
     needs and rules of the different economies, their 
     applicability to consumers, and their implementation by the 
     regulating bodies of such governments.
       The press in Puerto Rico recently published data furnished 
     by the Federal Deposit Insurance Corporation, known as the 
     FDIC, reporting that as of September 30, 2009, local banks 
     maintained a diminishing trend by reporting a reduction in 
     their total assets equal to 9%, and a net loss, as of such 
     date, of approximately $147 million. They also reported on 
     the efforts made by the Administration of Governor Luis 
     Fortuno to reach financing agreements that would allow the 
     Government of Puerto Rico to purchase assets from domestic 
     banks through the ``Troubled Asset Relief Program'' (TARP) in 
     order for them to lower their loan-in-default reserves and 
     grant new loans.
       The importance of the Banking Industry in the economy of 
     Puerto Rico is unquestionable. Banks in Puerto Rico generate 
     over 15,000 direct jobs and countless indirect jobs by 
     financing the business activity in Puerto Rico. Furthermore, 
     in the beginning of this decade, banks were major taxpayers 
     into the treasury of Puerto Rico, with taxes over $200 
     million. In light of the difficult financial situation faced 
     by banks, the FDIC has decided to establish stringent 
     regulatory examinations that contravene the public policy of 
     President Barack Obama and Governor Luis Fortuno of 
     reactivating and making regional and national economies 
     feasible. Specifically, in times requiring that temperance be 
     shown in the valuation of assets, the FDIC, through its 
     examiners, is suggesting proposals whose effect would be 
     detrimental to the value of assets used as collateral for 
     loans in the banks of Puerto Rico. This could entail 
     significant increases in the loan reserve of financial 
     institutions in Puerto Rico and a potential reduction on the 
     net worth of domestic banks. Therefore, this would cause a 
     reduction in the lending and economic activity in Puerto 
     Rico.
       It is necessary to mention that, according to FDIC data, 
     most banks in Puerto Rico are among the top twenty largest 
     minority-owned banks of the Nation. For example, Banco 
     Popular of Puerto Rico holds the first position; First Bank 
     of Puerto Rico holds the second position; Westernbank of 
     Puerto Rico holds the third position; R-G Premier Bank of 
     Puerto Rico holds the eight position; and Eurobank holds the 
     thirteenth position, respectively.
       As in Puerto Rico, this issue has been experienced at the 
     national level, as recently stated by Congressman Barney 
     Frank, Representative for the 4th congressional district of 
     the State of Massachusetts and Chairman of the House 
     Financial Services Committee, in a letter addressed to the 
     members of the Federal Reserve System, the Office of the 
     Comptroller of the Currency, the Office of the Thrift 
     Supervision, the Federal Deposit Insurance Corporation, and 
     the National Credit Union Administration. In said letter, 
     Congressman Frank calls on them to show temperance in the 
     application of the rules that govern national banks and urges 
     federal regulating entities to take into account safety and 
     soundness standards established by them.
       Said official also recognized that one of the challenges 
     currently faced by national banks is how to respond to the 
     call from the United States Congress to stimulate the 
     national economy by establishing measures so as to promote 
     lending activities and to work with troubled borrowers facing 
     foreclosure proceedings, while dealing with the directives 
     from federal government regulators. It has been proven on 
     different occasions that the construction and execution of 
     these regulatory standards do not allow for the expected 
     market stimulus, since the same are counter to the message of 
     Congress. Such has been the case when regulatory agencies 
     representatives have intervened with community banks, such as 
     those of Puerto Rico, requiring compliance with even more 
     stringent directives in the banking industry, which preclude 
     banks from recovering their assets promptly and efficiently.
       On the other hand, on October 30, 2009, federal regulators 
     established a new policy on commercial loan restructuring. 
     The new policy establishes, among other things, temperance 
     and prudence in the decision-making process regarding loan 
     restructuring, the timely identification of losses, and the 
     proper classification of loans. The new policy establishes 
     that the classification of a loan should not be based solely 
     on the fact that the value of the collateral has declined, in 
     absence of other adverse factors. Loan restructurings are 
     generally in the best interest of both the banking 
     institutions and the borrowers. Furthermore, the new policy 
     establishes that examiners should give a reasonable amount of 
     deference to collateral valuation assumptions when these are 
     made by qualified appraisers or banking institutions. This 
     practice by the FDIC is not consistent with the principles of 
     this new policy.

[[Page S1777]]

       For all of the above, the Senate of Puerto Rico concludes 
     that the application by the FDIC of stringent asset valuation 
     rules would have a severe impact on the participation of 
     minority-owned banks and would substantially reduce the 
     access of minority populations to credit and financial 
     sources. Thus, the FDIC is hereby urged to show temperance in 
     its practices with minority-owned banks established in Puerto 
     Rico; to establish effective measures so as to expedite the 
     granting of credit; and to help domestic banks in their 
     financial recovery and capitalization.
       Be it Resolved by the Senate of Puerto Rico:
       Section 1.--To urge the Federal Deposit Insurance 
     Corporation (FDIC) to show temperance in the application of 
     asset valuation rules to minority-owned banks established in 
     Puerto Rico, to establish effective measures so as to 
     expedite the granting of credit, and to help local banks in 
     their financial recovery and capitalization.
       Section 2.--This Resolution shall be officially notified, 
     in both official languages, to the Honorable Sheila C. Bair, 
     Chairman of the Federal Deposit Insurance Corporation, 
     Federal Deposit Insurance Corporation 550 17th Street NW, 
     Washington, D.C. 20429; to the Honorable Ben S. Bernanke, 
     Chairman of the Board of Governors of the Federal Reserve 
     System, Board of Governors of the Federal Reserve System 20th 
     Street and Constitution Avenue NW, Washington, D.C. 20220; 
     and to the Honorable Timothy F. Geithner, Secretary of the 
     United States Department of the Treasury, Department of the 
     Treasury 1500 Pennsylvania Avenue NW, Washington, D.C. 20220.
       Section 3.--Furthermore, the Office of the Secretary of the 
     Senate of Puerto Rico is hereby directed to remit a copy of 
     this Resolution, in both official languages, to: the 
     Honorable Barack H. Obama, President of the United States; to 
     the Honorable Joseph R. Biden, Vice President of the United 
     States; to the Honorable Barney Frank, Chairman of the 
     Committee on Financial Services of the United States House of 
     Representatives, U. S. House Financial Services Committee, 
     2129 Rayburn House Office Building, Washington, D.C. 20515; 
     to the Honorable Christopher J. Dodd, Chairman of the 
     Committee on Banking, Housing, and Urban Affairs of the 
     United States Senate, U.S. Senate Committee on Banking, 
     Housing and Urban Affairs, 534 Dirksen Senate Office 
     Building, Washington, D.C. 20510; and to all other members of 
     the United States Congress.
       Section 4.--This Resolution shall be made public by 
     forwarding a copy thereof to the state and national media.
       Section 5.--This Resolution shall take effect immediately 
     after its approval by the Senate of Puerto Rico.
                                  ____

       POM-92. A resolution adopted by the Senate of the General 
     Assembly of the State of Tennessee urging Congress to 
     stimulate markets for recycled materials, recycling, and 
     source reduction and the development of comprehensive solid 
     waste management plans; to the Committee on Environment and 
     Public Works.

                       Senate Resolution No. 176

       Whereas, recognizing the need to manage solid waste in an 
     environmentally, economically, and politically acceptable 
     manner, states are enacting comprehensive solid waste 
     management plans; and
       Whereas, in the long run, source reduction and recycling 
     offer the most economically and environmentally sound methods 
     for dealing with a significant percentage of the solid waste 
     stream; and
       Whereas, the Senate of the One Hundred Sixth General 
     Assembly of the State of Tennessee believes that properly 
     designed and operated landfills will continue to be a 
     component of any comprehensive solid waste management plan; 
     and
       Whereas, the volume of waste to be landfilled should be 
     reduced and minimized through environmentally sound methods 
     such as source separation to retrieve recyclable or reusable 
     materials; and
       Whereas, yard waste and some biodegradable materials should 
     be composted rather than landfilled, and source separation 
     should occur in all waste streams; and
       Whereas, solid waste incinerators without energy recovery 
     and landfilling should be limited, whenever practical, to 
     non-toxic and non-hazardous materials that cannot be treated 
     by any other economically and environmentally sound method; 
     and
       Whereas, with respect to waste-to-energy or resource 
     recovery facilities, their capacity should be designed for 
     the solid waste volume remaining after source separation, 
     toxic materials removal, recycling, and pollution prevention 
     measures have been implemented; and
       Whereas, the states are in need of the full cooperation and 
     assistance of the federal government to accomplish their 
     diverse solid waste management objectives: Now, therefore, be 
     it
       Resolved by the Senate of the One Hundred Sixth General 
     Assembly of the State of Tennessee, That recognizing the 
     importance of a state-federal partnership and in support of 
     the objectives of the Resource Conservation and Recovery Act 
     (RCRA), the Senate of the One Hundred Sixth General Assembly 
     of the State of Tennessee hereby urges the United States 
     Congress to stimulate markets for recycled materials, 
     recycling, and source reduction and the development of 
     comprehensive solid waste management plans. Be it further
       Resolved, That the Senate of the One Hundred Sixth General 
     Assembly of the State of Tennessee urges the federal 
     government to significantly increase technical assistance to 
     state and local governments in developing comprehensive 
     source reduction, source separation, reuse, and recycling 
     programs while fully recognizing the primacy of state and 
     local governments in solid waste management. The development 
     of solid waste management plans is a state and local 
     government responsibility and the federal government should 
     restrict its role to reviewing these plans by setting 
     performance standards. Be it further
       Resolved, That the Senate of the One Hundred Sixth General 
     Assembly of the State of Tennessee urges that regulation, 
     tariffs, and transportation policies be revised to remove 
     artificial price supports in order to create regulatory 
     parity between recyclable and reusable material and virgin 
     material. Be it further
       Resolved, That the Senate of the One Hundred Sixth General 
     Assembly of the State of Tennessee urges the full 
     implementation of the provisions of RCRA requiring the 
     federal government to promulgate regulations for federal 
     procurement of recycled products. The federal government 
     should give priority consideration to the purchase of 
     reusable and recycled products and allow a temporary price 
     differential, where applicable, for goods made from recycled 
     materials. Be it further
       Resolved, That the Senate of the One Hundred Sixth General 
     Assembly of the State of Tennessee urges Congress to provide 
     the states with the greatest authority possible to manage 
     solid waste. Such an authorization should allow states to 
     restrict imported waste and allow restrictions on the 
     exportation of waste, including the imposition of 
     differential fees. Be it further
       Resolved, That it is the sense of the Senate of the One 
     Hundred Sixth General Assembly of the State of Tennessee that 
     funds received from any permits authorized by federal law and 
     issued by states for purposes of management of solid waste 
     should be expended as determined by state legislatures. Be it 
     further
       Resolved, that an enrolled copy of this resolution be 
     transmitted to the Speaker and the Clerk of the U.S. House of 
     Representatives; the President and the Secretary of the U.S. 
     Senate; each member of Tennessee's Congressional delegation; 
     and the Honorable Barack Obama, President of the United 
     States.

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