[Congressional Record Volume 156, Number 71 (Wednesday, May 12, 2010)]
[Senate]
[Pages S3648-S3660]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3979. Mrs. McCaskill submitted an amendment intended to be 
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for 
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1552, beginning on line 16, strike ``the 
     President'' and all that follows through ``Senate,'' on line 
     19 and insert the following: ``the Class B directors of the 
     Federal Reserve Bank of New York shall be designated by the 
     Board of Governors,''.
       On page 1553, line 1, strike ``supervised by the Board'' 
     and insert ``subject to enhanced supervision and prudential 
     standards under section 115''.
                                 ______
                                 
  SA 3980. Mr. CARDIN (for himself, Mr. Lugar, Mr. Durbin, Mr. Schumer, 
Mr. Feingold, Mr. Merkley, and Mr. Johnson) submitted an amendment 
intended to be proposed to amendment SA 3739 proposed by Mr. Reid (for 
Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, to 
promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 1187, line 9, strike ``effective.'' insert the 
     following: ``effective.

                Subtitle K--Resource Extraction Issuers

     SEC. 995. FINDINGS.

       Congress finds the following:
       (1) It is in the interest of the United States to promote 
     good governance in the extractive industries sector. 
     Transparency in revenue payments benefits oil, gas, and 
     mining companies, because it improves the business climate in 
     which such companies work, increases the reliability of 
     commodity supplies upon which businesses and people in the 
     United States rely, and promotes greater energy security.
       (2) Companies in the extractive industries sector face 
     unique tax and reputational risks, in the form of country-
     specific taxes and regulations. Exposure to these risks is 
     heightened by the substantial capital employed in the 
     extractive industries, and the often opaque and unaccountable 
     management of natural resource revenues by foreign 
     governments, which in turn creates unstable and high-cost 
     operating environments for multinational companies. The 
     effects of these risks are material to investors.

     SEC. 996. DISCLOSURE OF PAYMENTS BY RESOURCE EXTRACTION 
                   ISSUERS.

       Section 13 of the Securities Exchange Act of 1934 (15 
     U.S.C. 78m), as amended by this Act, is amended by adding at 
     the end the following:
       ``(p) Disclosure of Payments by Resource Extraction 
     Issuers.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `commercial development of oil, natural gas, 
     or minerals' includes exploration, extraction, processing, 
     export, and other significant actions relating to oil, 
     natural gas, or minerals, or the acquisition of a license for 
     any such activity, as determined by the Commission;
       ``(B) the term `foreign government' means a foreign 
     government, a department, agency, or instrumentality of a 
     foreign government, an officer or employee of a foreign 
     government, an agent of a foreign government, or a company 
     owned by a foreign government, as determined by the 
     Commission;
       ``(C) the term `payment'--
       ``(i) means a payment that is--

       ``(I) made to further the commercial development of oil, 
     natural gas, or minerals; and
       ``(II) not de minimis; and

       ``(ii) includes taxes, royalties, fees (including license 
     fees), production entitlements, bonuses, and other material 
     benefits, that the Commission, consistent with the guidelines 
     of the Extractive Industries Transparency Initiative (to the 
     extent practicable), determines are part of the commonly 
     recognized revenue stream for the commercial development of 
     oil, natural gas, or minerals;
       ``(D) the term `resource extraction issuer' means an issuer 
     that--
       ``(i) is required to file an annual report with the 
     Commission; and
       ``(ii) engages in the commercial development of oil, 
     natural gas, or minerals;
       ``(E) the term `interactive data format' means an 
     electronic data format in which

[[Page S3649]]

     pieces of information are identified using an interactive 
     data standard; and
       ``(F) the term `interactive data standard' means 
     standardized list of electronic tags that mark information 
     included in the annual report of a resource extraction 
     issuer.
       ``(2) Disclosure.--
       ``(A) Information required.--Not later than 270 days after 
     the date of enactment of the Restoring American Financial 
     Stability Act of 2010, the Commission shall issue final rules 
     that require each resource extraction issuer to include in 
     the annual report of the resource extraction issuer 
     information relating to any payment made by the resource 
     extraction issuer, a subsidiary of the resource extraction 
     issuer, or an entity under the control of the resource 
     extraction issuer to a foreign government or the Federal 
     Government for the purpose of the commercial development of 
     oil, natural gas, or minerals, including--
       ``(i) the type and total amount of such payments made for 
     each project of the resource extraction issuer relating to 
     the commercial development of oil, natural gas, or minerals; 
     and
       ``(ii) the type and total amount of such payments made to 
     each government.
       ``(B) Interactive data format.--The rules issued under 
     subparagraph (A) shall require that the information included 
     in the annual report of a resource extraction issuer be 
     submitted in an interactive data format.
       ``(C) Interactive data standard.--
       ``(i) In general.--The rules issued under subparagraph (A) 
     shall establish an interactive data standard for the 
     information included in the annual report of a resource 
     extraction issuer.
       ``(ii) Electronic tags.--The interactive data standard 
     shall include electronic tags that identify, for any payments 
     made by a resource extraction issuer to a foreign government 
     or the Federal Government--

       ``(I) the total amounts of the payments, by category;
       ``(II) the currency used to make the payments;
       ``(III) the financial period in which the payments were 
     made;
       ``(IV) the business segment of the resource extraction 
     issuer that made the payments;
       ``(V) the government that received the payments, and the 
     country in which the government is located;
       ``(VI) the project of the resource extraction issuer to 
     which the payments relate; and
       ``(VII) such other information as the Commission may 
     determine is necessary or appropriate in the public interest 
     or for the protection of investors.

       ``(D) International transparency efforts.--To the extent 
     practicable, the rules issued under subparagraph (A) shall 
     support the commitment of the Federal Government to 
     international transparency promotion efforts relating to the 
     commercial development of oil, natural gas, or minerals.
       ``(E) Effective date.--With respect to each resource 
     extraction issuer, the final rules issued under subparagraph 
     (A) shall take effect on the date on which the resource 
     extraction issuer is required to submit an annual report 
     relating to the fiscal year of the resource extraction issuer 
     that ends not earlier than 1 year after the date on which the 
     Commission issues final rules under subparagraph (A).
       ``(3) Public availability of information.--
       ``(A) In general.--To the extent practicable, the 
     Commission shall make available online, to the public, a 
     compilation of the information required to be submitted under 
     the rules issued under paragraph (2)(A).
       ``(B) Other information.--Nothing in this paragraph shall 
     require the Commission to make available online information 
     other than the information required to be submitted under the 
     rules issued under paragraph (2)(A).
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated to the Commission such sums as 
     may be necessary to carry out this subsection.''.

     SEC. 997. SENSE OF CONGRESS.

       It is the sense of Congress that--
       (1) the President should work with foreign governments, 
     including members of the Group of 8 and the Group of 20, to 
     establish domestic requirements that companies under the 
     jurisdiction of each government publicly disclose any 
     payments made to a government relating to the commercial 
     development of oil, natural gas, and minerals; and
       (2) the President should commit the United States to become 
     a Candidate Country of the Extractive Industries Transparency 
     Initiative.
                                 ______
                                 
  SA 3981. Mr. CARDIN (for himself and Ms. Mikulski) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 43, between lines 6 and 7, insert the following:
       (3) Investment companies and advisers.--In the event that 
     an investment company required to be registered under the 
     Investment Company Act of 1940, or the registered investment 
     adviser to such a company, is subject to supervision by the 
     Board of Governors, the Council shall, in consultation with 
     the Commission and in lieu of the prudential standards 
     outlined in subsections (b) through (f), recommend to the 
     Board of Governors such alternative enhanced regulatory 
     requirements as are necessary to prevent or mitigate risks to 
     the financial stability of the United States that could arise 
     from the material financial distress of the investment 
     company or investment adviser. Such alternative requirements 
     shall consider any structural or legal limits on the ability 
     of the investment company or investment adviser to hold 
     capital.
       On page 91, between lines 23 and 24, insert the following:
       (3) Investment companies and advisers.--In the case of an 
     investment company required to be registered under the 
     Investment Company Act of 1940, or the registered investment 
     adviser to such a company, that is supervised by the Board of 
     Governors, the Board of Governors shall meet its obligations 
     under this section by adopting the alternative enhanced 
     regulatory requirements recommended by the Council under 
     section 115.
                                 ______
                                 
  SA 3982. Mr. WYDEN (for himself and Mr. Brown of Massachusetts) 
submitted an amendment intended to be proposed by him to the bill S. 
3217, to promote the financial stability of the United States by 
improving accountability and transparency in the financial system, to 
end ``too big to fail'', to protect the American taxpayer by ending 
bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of subtitle A of title I, add the following:

     SEC. 122. DISCLOSURE OF CONFLICTS OF INTERESTS.

       (a) Recommendation by Council.--The Council shall issue 
     recommendations to the primary financial regulatory agencies 
     to require, as applicable, bank holding companies or nonbank 
     financial companies under their respective jurisdictions to 
     make appropriate disclosures to any purchaser or prospective 
     purchaser of financial products from such companies, if such 
     companies have a direct financial interest that is in 
     material conflict with the interests of the purchaser or 
     prospective purchaser.
       (b) Procedures and Implementation.--The procedural and 
     implementation provisions of subsection (b) and (c) of 
     section 120 shall apply to recommendations of the Council 
     under this section.
                                 ______
                                 
  SA 3983. Mr. CORKER submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1052, line 3, strike ``SEC. 942,'' and insert the 
     following:

     SEC. 942. RESIDENTIAL MORTGAGE UNDERWRITING STANDARDS.

       (a) Standards Established.--Notwithstanding any other 
     provision of this Act or any other provision of Federal, 
     State, or local law, the Federal banking agencies, in 
     consultation with the Federal Housing Finance Agency and the 
     Department of Housing and Urban Development, shall jointly 
     establish specific minimum standards for mortgage 
     underwriting, including--
       (1) a requirement that the mortgagee verify and document 
     the income and assets relied upon to qualify the mortgagor on 
     the residential mortgage, including the previous employment 
     and credit history of the mortgagor;
       (2) a down payment requirement that--
       (A) is equal to not less than 5 percent of the purchase 
     price of the property securing the residential mortgage; and
       (B) in the case of a first lien residential mortgage loan 
     with an initial loan to value ratio that is more than 80 
     percent and not more than 95 percent, includes a requirement 
     for credit enhancements, as defined by the Federal banking 
     agencies, until the loan to value ratio of the residential 
     mortgage loan amortizes to a value that is less than 80 
     percent of the purchase price;
       (3) a method for determining the ability of the mortgagor 
     to repay the residential mortgage that is based on factors 
     including--
       (A) all terms of the residential mortgage, including 
     principal payments that fully amortize the balance of the 
     residential mortgage over the term of the residential 
     mortgage; and
       (B) the debt to income ratio of the mortgagor; and

[[Page S3650]]

       (4) any other specific standards the Federal banking 
     agencies jointly determine are appropriate to ensure prudent 
     underwriting of residential mortgages.
       (b) Updates to Standards.--The Federal banking agencies, in 
     consultation with the Federal Housing Finance Agency and the 
     Department of Housing and Urban Development--
       (1) shall review the standards established under this 
     section not less frequently than every 5 years; and
       (2) based on the review under paragraph (1), may revise the 
     standards established under this section, as the Federal 
     banking agencies, in consultation with the Federal Housing 
     Finance Agency and the Department of Housing and Urban 
     Development, determine to be necessary.
       (c) Compliance.--It shall be a violation of Federal law--
       (1) for any mortgage loan originator to fail to comply with 
     the minimum standards for mortgage underwriting established 
     under subsection (a) in originating a residential mortgage 
     loan;
       (2) for any company to maintain an extension of credit on a 
     revolving basis to any person to fund a residential mortgage 
     loan, unless the company reasonably determines that the 
     residential mortgage loan funded by such credit was subject 
     to underwriting standards no less stringent than the minimum 
     standards for mortgage underwriting established under 
     subsection (a); or
       (3) for any company to purchase, fund by assignment, or 
     guarantee a residential mortgage loan, unless the company 
     reasonably determines that the residential mortgage loan was 
     subject to underwriting standards no less stringent than the 
     minimum standards for mortgage underwriting established under 
     subsection (a).
       (d) Implementation.--
       (1) Regulations required.--The Federal banking agencies, in 
     consultation with the Federal Housing Finance Agency, shall 
     issue regulations to implement subsections (a) and (c), which 
     shall take effect not later than 270 days after the date of 
     enactment of this Act.
       (2) Report required.--If the Federal banking agencies have 
     not issued final regulations under subsections (a) and (c) 
     before the date that is 270 days after the date of enactment 
     of this Act, the Federal banking agencies shall jointly 
     submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives a report that--
       (A) explains why final regulations have not been issued 
     under subsections (a) and (c); and
       (B) provides a timeline for the issuance of final 
     regulations under subsections (a) and (c).
       (e) Enforcement.--Compliance with the rules issued under 
     this section shall be enforced by--
       (1) the primary financial regulatory agency of an entity, 
     with respect to an entity subject to the jurisdiction of a 
     primary financial regulatory agency, in accordance with the 
     statutes governing the jurisdiction of the primary financial 
     regulatory agency over the entity and as if the action of the 
     primary financial regulatory agency were taken under such 
     statutes; and
       (2) the Bureau, with respect to a company that is not 
     subject to the jurisdiction of a primary financial regulatory 
     agency.
       (f) Exemptions for Certain Nonprofit Mortgage Loan 
     Originators.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Federal banking agencies, in 
     consultation with the Secretary of Housing and Urban 
     Development and the Secretary of the Treasury, may jointly 
     issue rules to exempt from the requirements under subsection 
     (a)(2), mortgage loan originators that are exempt from 
     taxation under section 501(c)(3) of the Internal Revenue Code 
     of 1986.
       (2) Determining factors.--The Federal banking agencies 
     shall ensure that--
       (A) the lending activities of a mortgage loan originator 
     that receives an exemption under this subsection do not 
     threaten the safety and soundness of the banking system of 
     the United States; and
       (B) a mortgage loan originator that receives an exemption 
     under this subsection--
       (i) is not compensated based on the number or value of 
     residential mortgage loan applications accepted, offered, or 
     negotiated by the mortgage loan originator;
       (ii) does not offer residential mortgage loans that have an 
     interest rate greater than zero percent;
       (iii) does not gain a monetary profit from any residential 
     mortgage product or service provided;
       (iv) has the primary purpose of serving low income housing 
     needs;
       (v) has not been specifically prohibited, by statute, from 
     receiving Federal funding; and
       (vi) meets any other requirements that the Federal banking 
     agencies jointly determine are appropriate for ensuring that 
     a mortgage loan originator that receives an exemption under 
     this subsection does not threaten the safety and soundness of 
     the banking system of the United States.
       (3) Reports required.--Before the issuance of final rules 
     under subsection (a), and annually thereafter, the Federal 
     banking agencies shall jointly submit to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives a report that--
       (A) identifies the mortgage loan originators that receive 
     an exemption under this subsection; and
       (B) for each mortgage loan originator identified under 
     subparagraph (A), the rationale for providing an exemption.
       (4) Updates to exemptions.--The Federal banking agencies, 
     in consultation with the Secretary of Housing and Urban 
     Development and the Secretary of the Treasury--
       (A) shall review the exemptions established under this 
     subsection not less frequently than every 2 years; and
       (B) based on the review under subparagraph (A), may revise 
     the standards established under this subsection, as the 
     Federal banking agencies, in consultation with the Secretary 
     of Housing and Urban Development and the Secretary of the 
     Treasury, determine to be necessary.
       (g) Rules of Construction.--Nothing in this section may be 
     construed to permit--
       (1) the Federal National Mortgage Association or the 
     Federal Home Loan Mortgage Corporation to make or guarantee a 
     residential mortgage loan that does not meet the minimum 
     underwriting standards established under this section; or
       (2) the Federal banking agencies to issue an exemption 
     under subsection (f) that is not on a case-by-case basis.
       (h) Definitions.--In this section, the following 
     definitions shall apply:
       (1) Company.--The term ``company''--
       (A) has the same meaning as in section 2(b) of the Bank 
     Holding Company Act of 1956 (12 U.S.C. 1841(b)); and
       (B) includes a sole proprietorship.
       (2) Mortgage loan originator.--The term ``mortgage loan 
     originator'' means any company that takes residential 
     mortgage loan applications and offers or negotiates terms of 
     residential mortgage loans.
       (3) Residential mortgage loan.--The term ``residential 
     mortgage loan''--
       (A) means any extension of credit primarily for personal, 
     family, or household use that is secured by a mortgage, deed 
     of trust, or other equivalent security interest in a dwelling 
     or residential real estate upon which is constructed or 
     intended to be constructed a dwelling; and
       (B) does not include a mortgage loan for which mortgage 
     insurance is provided by the Department of Veterans Affairs, 
     or the Rural Housing Administration.
       (4) Extension of credit; dwelling.--The terms ``extension 
     of credit'' and ``dwelling'' shall have the same meaning as 
     in section 103 of the Truth in Lending Act (15 U.S.C. 1602).

     SEC. 943. STUDY ON FEDERAL HOUSING ADMINISTRATION 
                   UNDERWRITING STANDARDS.

       (a) Study.--
       (1) In general.--The Comptroller General of the United 
     States shall conduct a study evaluating whether the 
     underwriting criteria used by the Federal Housing 
     Administration are sufficient to ensure the solvency of the 
     Mutual Mortgage Insurance Fund of the Federal Housing 
     Administration and the safety and soundness of the banking 
     system of the United States.
       (2) Issues to be studied.--In conducting the study under 
     paragraph (1), the Comptroller General shall evaluate--
       (A) down payment requirements for Federal Housing 
     Administration borrowers;
       (B) default rates of mortgages insured by the Federal 
     Housing Administration;
       (C) characteristics of Federal Housing Administration 
     borrowers who are most likely to default;
       (D) taxpayer exposure to losses incurred by the Federal 
     Housing Administration;
       (E) the impact of the market share of the Federal Housing 
     Administration on efforts to sustain a viable private 
     mortgage market; and
       (F) any other factors that Comptroller General determines 
     are appropriate.
       (b) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report on the study conducted under subsection 
     (a) that includes recommendations for statutory improvements 
     to be made to the underwriting criteria used by the Federal 
     Housing Administration, to ensure the solvency of the Mutual 
     Mortgage Insurance Fund of the Federal Housing Administration 
     and the safety and soundness of the banking system of the 
     United States.

     SEC. 944.

                                 ______
                                 
  SA 3984. Mr. CORKER submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 293, line 11, strike ``(r)'' and insert the 
     following:
       (r) Additional Limitation.--Notwithstanding any other 
     provision of this section, or any other provision of law, the 
     Corporation, when acting as a receiver under this title, may 
     not reject or repudiate a real property lease under which a 
     covered financial company is a lessee unless--

[[Page S3651]]

       (1) the lessor consents to such rejection or repudiation; 
     or
       (2) the Corporation agrees to pay damages to the lessee, as 
     if the lease had been rejected under section 365 of title 11, 
     United States Code.
       (s)
                                 ______
                                 
  SA 3985. Mr. GRASSLEY submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       Strike 989B, insert the following:

     SEC. 989B. DESIGNATED FEDERAL ENTITY INSPECTORS GENERAL 
                   INDEPENDENCE.

       Section 8G of the Inspector General Act of 1978 (5 U.S.C. 
     App.) is amended--
       (1) in subsection (a)(4)--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``the board or commission of the designated Federal entity, 
     or in the event the designated Federal entity does not have a 
     board or commission,'' after ``means'';
       (B) in subparagraph (A), by striking ``and'' after the 
     semicolon; and
       (C) by adding after subparagraph (B) the following:
       ``(C) with respect to the Federal Labor Relations 
     Authority, such term means the members of the Authority 
     (described under section 7104 of title 5, United States 
     Code);
       ``(D) with respect to the National Archives and Records 
     Administration, such term means the Archivist of the United 
     States;
       ``(E) with respect to the National Credit Union 
     Administration, such term means the National Credit Union 
     Administration Board (described under section 102 of the 
     Federal Credit Union Act (12 U.S.C. 1752a);
       ``(F) with respect to the National Endowment of the Arts, 
     such term means the National Council on the Arts;
       ``(G) with respect to the National Endowment for the 
     Humanities, such term means the National Council on the 
     Humanities; and
       ``(H) with respect to the Peace Corps, such term means the 
     Director of the Peace Corps;''; and
       (2) in subsection (h), by inserting ``if the designated 
     Federal entity is not a board or commission, include'' after 
     ``designated Federal entities and''.

     SEC. 989C. STRENGTHENING INSPECTOR GENERAL ACCOUNTABILITY.

       Section 5(a) of the Inspector General Act of 1978 (5 U.S.C. 
     App.) is amended--
       (1) in paragraph (12), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (13), by striking the period and inserting 
     a semicolon; and
       (3) by adding at the end the following:
       ``(14)(A) an appendix containing the results of any peer 
     review conducted by another Office of Inspector General 
     during the reporting period; or
       ``(B) if no peer review was conducted within that reporting 
     period, a statement identifying the date of the last peer 
     review conducted by another Office of Inspector General;
       ``(15) a list of any outstanding recommendations from any 
     peer review conducted by another Office of Inspector General 
     that have not been fully implemented, including a statement 
     describing the status of the implementation and why 
     implementation is not complete; and
       ``(16) a list of any peer reviews conducted by the 
     Inspector General of another Office of the Inspector General 
     during the reporting period, including a list of any 
     outstanding recommendations made from any previous peer 
     review (including any peer review conducted before the 
     reporting period) that remain outstanding or have not been 
     fully implemented.''.

     SEC. 989D. REMOVAL OF INSPECTORS GENERAL OF DESIGNATED 
                   FEDERAL ENTITIES.

       Section 8G(e) of the Inspector General Act of 1978 (5 
     U.S.C. App.) is amended--
       (1) by redesignating the sentences following ``(e)'' as 
     paragraph (2); and
       (2) by striking ``(e)'' and inserting the following:
       In the case of a designated Federal entity for which a 
     board or commission is the head of the designated Federal 
     entity, a removal under this subsection may only be made upon 
     the written concurrence of a \2/3\ majority of the board or 
     commission.''.
                                 ______
                                 
  SA 3986. Mr. CORNYN (for himself and Mr. Vitter) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 1565, after line 23, add the following:

                       TITLE XIII--MISCELLANEOUS

     SEC. 1301. RESTRICTIONS ON USE OF FEDERAL FUNDS TO FINANCE 
                   BAILOUTS OF FOREIGN GOVERNMENTS.

       The Bretton Woods Agreements Act (22 U.S.C. 286 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 68. RESTRICTIONS ON USE OF FEDERAL FUNDS TO FINANCE 
                   BAILOUTS OF FOREIGN GOVERNMENTS.

       ``(a) In General.--The President shall direct the United 
     States Executive Director of the International Monetary 
     Fund--
       ``(1) to evaluate any proposed loan to a country by the 
     Fund if the amount of the public debt of the country exceeds 
     the gross domestic product of the country;
       ``(2) to determine whether or not the loan will be repaid 
     and certify that determination to Congress.
       ``(b) Opposition to Loans Unlikely to Be Repaid.--If the 
     Executive Director determines under subsection (a)(2) that a 
     loan by the International Monetary Fund to a country will not 
     be repaid, the President shall direct the Executive Director 
     to use the voice and vote of the United States to vote in 
     opposition to the proposed loan.''.
                                 ______
                                 
  SA 3987. Mr. THUNE submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1208, between lines 12 and 13, insert the 
     following:
       (f) Expiration.--Notwithstanding any other provision of 
     this Act, the Bureau, and the authority of the Bureau under 
     this title, shall terminate 4 years after the date of 
     enactment of this Act, unless extended by an Act of Congress.
                                 ______
                                 
  SA 3988. Mrs. GILLIBRAND submitted an amendment intended to be 
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for 
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1219, after line 25, insert the following:
       (7) Study and report on paper statement charges.--Not later 
     than 6 months after the date of enactment of this Act, the 
     Office of Financial Literacy shall conduct a study and submit 
     a report to Congress--
       (A) on the charging of fees for paper copies of statements 
     related to a consumer financial product or service by covered 
     persons under this title;
       (B) the charging of fees for the use of paper checks as 
     payment to covered persons under this title;
       (C) on the impact of the imposition of such fees on 
     financial literacy, particularly among--
       (i) the elderly;
       (ii) low-income individuals; and
       (iii) individuals that lack computer access; and
       (D) that includes recommendations on how to ensure that the 
     individuals described in subparagraph (C) are not negatively 
     impacted by the imposition of fees to receive paper 
     statements, including recommendations--
       (i) on whether covered persons under this title should be--

       (I) prohibited from charging fees for paper statements;
       (II) prohibited from automatically enrolling individuals in 
     e-statement or other electronic delivery programs without the 
     express consent of the individual, in the manner described in 
     the Electronic Signatures in Global and National Commerce Act 
     (15 U.S.C. 7001 et seq.); and
       (III) prevented from charging fees for the use of paper 
     checks as payment; and

       (ii) regarding alternative methods to ensure that such 
     individuals are able to access paper copies of financial 
     statements without fees or unnecessary hindrance.
       (8) Authority to bar fees on paper statements.--Not later 
     than 3 months after the submission of the report required 
     under paragraph (7), the Director shall issue rules 
     implementing the recommendations contained in such report.
       On page 1297, line 11, before the period, insert ``, or in 
     paper form at no additional cost upon request of the 
     consumer''.
                                 ______
                                 
  SA 3989. Mr. DURBIN submitted an amendment intended to be proposed by

[[Page S3652]]

him to the bill S. 3217, to promote the financial stability of the 
United States by improving accountability and transparency in the 
financial system, to end ``too big to fail'', to protect the American 
taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the end of subtitle G of title X, add the following:

     SEC. 1077. REASONABLE FEES AND RULES FOR PAYMENT CARD 
                   TRANSACTIONS.

       The Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.) 
     is amended--
       (1) by redesignating sections 920 and 921 as sections 921 
     and 922, respectively; and
       (2) by inserting after section 919 the following:

     ``SEC. 920. REASONABLE FEES AND RULES FOR PAYMENT CARD 
                   TRANSACTIONS.

       ``(a) Reasonable Interchange Transaction Fees for 
     Electronic Debit Transactions.--
       ``(1) Regulatory authority.--The Board shall have authority 
     to establish rules, pursuant to section 553 of title 5, 
     United States Code, regarding any interchange transaction fee 
     that an issuer or payment card network may charge with 
     respect to an electronic debit transaction.
       ``(2) Reasonable fees.--The amount of any interchange 
     transaction fee that an issuer or payment card network may 
     charge with respect to an electronic debit transaction shall 
     be reasonable and proportional to the actual cost incurred by 
     the issuer or payment card network with respect to the 
     transaction.
       ``(3) Rulemaking required.--The Board shall issue final 
     rules, not later than 9 months after the date of enactment of 
     the Consumer Financial Protection Act of 2010, to establish 
     standards for assessing whether the amount of any interchange 
     transaction fee described in paragraph (2) is reasonable and 
     proportional to the actual cost incurred by the issuer or 
     payment card network with respect to the transaction.
       ``(4) Considerations.--In issuing rules required by this 
     section, the Board shall--
       ``(A) consider the functional similarity between--
       ``(i) electronic debit transactions; and
       ``(ii) checking transactions that are required within the 
     Federal Reserve bank system to clear at par;
       ``(B) distinguish between--
       ``(i) the actual incremental cost incurred by an issuer or 
     payment card network for the role of the issuer or the 
     payment card network in the authorization, clearance, or 
     settlement of a particular electronic debit transaction, 
     which cost shall be considered under paragraph (2); and
       ``(ii) other costs incurred by an issuer or payment card 
     network which are not specific to a particular electronic 
     debit transaction, which costs shall not be considered under 
     paragraph (2); and
       ``(C) consult, as appropriate, with the Comptroller of the 
     Currency, the Board of Directors of the Federal Deposit 
     Insurance Corporation, the Director of the Office of Thrift 
     Supervision, the National Credit Union Administration Board, 
     the Administrator of the Small Business Administration, and 
     the Director of the Bureau of Consumer Financial Protection.
       ``(5) Exemption for small issuers.--This subsection shall 
     not apply to issuers that, together with affiliates, have 
     assets of less than $10,000,000,000, and the Board shall 
     exempt such issuers from rules issued under paragraph (3).
       ``(6) Effective date.--Paragraph (2) shall become effective 
     12 months after the date of enactment of the Consumer 
     Financial Protection Act of 2010.
       ``(b) Limitation on Anti-competitive Payment Card Network 
     Restrictions.--
       ``(1) No restrictions on offering discounts for use of a 
     competing payment card network.--A payment card network shall 
     not, directly or through any agent, processor, or licensed 
     member of the network, by contract, requirement, condition, 
     penalty, or otherwise, inhibit the ability of any person to 
     provide a discount or in-kind incentive for payment through 
     the use of a card or device of another payment card network.
       ``(2) No restrictions on offering discounts for use of a 
     form of payment.--A payment card network shall not, directly 
     or through any agent, processor, or licensed member of the 
     network, by contract, requirement, condition, penalty, or 
     otherwise, inhibit the ability of any person to provide a 
     discount or in-kind incentive for payment by the use of cash, 
     check, debit card, or credit card.
       ``(3) No restrictions on setting transaction minimums or 
     maximums.--A payment card network shall not, directly or 
     through any agent, processor, or licensed member of the 
     network, by contract, requirement, condition, penalty, or 
     otherwise, inhibit the ability of any person to set a minimum 
     or maximum dollar value for the acceptance by that person of 
     any form of payment.
       ``(c) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Debit card.--The term `debit card'--
       ``(A) means any card, or other payment code or device, 
     issued or approved for use through a payment card network to 
     debit an asset account for the purpose of transferring money 
     between accounts or obtaining goods or services, whether 
     authorization is based on signature, PIN, or other means;
       ``(B) includes general use prepaid cards, as that term is 
     defined in section 915(a)(2)(A) (15 U.S.C. 1693l-1(a)(2)(A)); 
     and
       ``(C) does not include paper checks.
       ``(2) Credit card.--The term `credit card' has the same 
     meaning as in section 103 of the Truth in Lending Act (15 
     U.S.C. 1602).
       ``(3) Discount.--The term `discount'--
       ``(A) means a reduction made from the price that customers 
     are informed is the regular price; and
       ``(B) does not include any means of increasing the price 
     that customers are informed is the regular price.
       ``(4) Electronic debit transaction.--The term `electronic 
     debit transaction' means a transaction in which a person uses 
     a debit card to debit an asset account.
       ``(5) Interchange transaction fee.--The term `interchange 
     transaction fee' means any fee established by a payment card 
     network that has been established for the purpose of 
     compensating an issuer or payment card network for its 
     involvement in an electronic debit transaction.
       ``(6) Issuer.--The term `issuer' means any person who 
     issues a debit card, or the agent of such person with respect 
     to such card.
       ``(7) Payment card network.--The term `payment card 
     network' means an entity that directly, or through licensed 
     members, processors, or agents, provides the proprietary 
     services, infrastructure, and software that route information 
     and data to conduct transaction authorization, clearance, and 
     settlement, and that a person uses in order to accept as a 
     form of payment a brand of debit card, credit card or other 
     device that may be used to carry out debit or credit 
     transactions.''.
                                 ______
                                 
  SA 3990. Mr. LIEBERMAN (for himself and Ms. Collins) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 27, strike lines 11 through 19 and insert the 
     following:
       (C) monitor the financial services marketplace in order to 
     identify potential threats to the financial stability of the 
     United States, including any threats posed by foreign 
     countries or non-state actors who may attempt to disrupt the 
     United States financial markets;
       (D) facilitate information sharing and coordination among 
     the member agencies and other Federal and State agencies 
     regarding domestic financial services policy development, 
     rulemaking, examinations, reporting requirements, enforcement 
     actions, and potential threats to the financial stability of 
     the United States;
                                 ______
                                 
  SA 3991. Mr. FRANKEN (for himself, Mr. Schumer, Mr. Nelson of 
Florida, Mr. Whitehouse, Mr. Brown of Ohio, Mrs. Murray, Mr. Merkley, 
Mr. Bingaman, Mr. Lautenberg, Mrs. Shaheen, Mr. Casey, Mr. Wicker, Mr. 
Sanders, Mr. Johnson, Mr. Kaufman, Mr. Grassley, Mr. Durbin, Mr. 
Harkin, and Ms. Klobuchar) submitted an amendment intended to be 
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for 
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; as follows:

       On page 1044, between lines 2 and 3, insert the following:

     SEC. 939D. INITIAL CREDIT RATING ASSIGNMENTS.

       Section 15E of the Securities Exchange Act of 1934 (15 
     U.S.C. 78o-7), as amended by this Act, is amended by adding 
     at the end the following:
       ``(w) Initial Credit Rating Assignments.--
       ``(1) Definitions.--In this subsection the following 
     definitions shall apply:
       ``(A) Board.--The term `Board' means the Credit Rating 
     Agency Board established under paragraph (2).
       ``(B) Qualified nationally recognized statistical rating 
     organization.--The term `qualified nationally recognized 
     statistical rating organization', with respect to a category 
     of structured finance products, means a nationally recognized 
     statistical rating organization that the Board determines, 
     under paragraph (3)(B), to be qualified to issue initial 
     credit ratings with respect to such category.
       ``(C) Regulations.--
       ``(i) Category of structured finance products.--

       ``(I) In general.--The term `category of structured finance 
     products'--

[[Page S3653]]

       ``(aa) shall include any asset backed security and any 
     structured product based on an asset-backed security; and
       ``(bb) shall be further defined and expanded by the 
     Commission, by rule, as necessary.

       ``(II) Considerations.--In issuing the regulations required 
     under subclause (I), the Commission shall consider--

       ``(aa) the types of issuers that issue structured finance 
     products;
       ``(bb) the types of investors who purchase structured 
     finance products;
       ``(cc) the different categories of structured finance 
     products according to--
       ``(AA) the types of capital flow and legal structure used;
       ``(BB) the types of underlying products used; and
       ``(CC) the types of terms used in debt securities;
       ``(dd) the different values of debt securities; and
       ``(ee) the different numbers of units of debt securities 
     that are issued together.
       ``(ii) Reasonable fee.--The Board shall issue regulations 
     to define the term `reasonable fee'.
       ``(2) Credit rating agency board.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of the Restoring American Financial Stability 
     Act of 2010, the Commission shall--
       ``(i) establish the Credit Rating Agency Board, which shall 
     be a self-regulatory organization;
       ``(ii) subject to subparagraph (C), select the initial 
     members of the Board; and
       ``(iii) establish a schedule to ensure that the Board 
     begins assigning qualified nationally recognized statistical 
     rating organizations to provide initial ratings not later 
     than 1 year after the selection of the members of the Board.
       ``(B) Schedule.--The schedule established under 
     subparagraph (A)(iii) shall prescribe when--
       ``(i) the Board will conduct a study of the securitization 
     and ratings process and provide recommendations to the 
     Commission;
       ``(ii) the Commission will issue rules and regulations 
     under this section;
       ``(iii) the Board may issue rules under this subsection; 
     and
       ``(iv) the Board will--

       ``(I) begin accepting applications to select qualified 
     national recognized statistical rating organizations; and
       ``(II) begin assigning qualified national recognized 
     statistical rating organizations to provide initial ratings.

       ``(C) Membership.--
       ``(i) In general.--The Board shall initially be composed of 
     an odd number of members selected from the industry, with the 
     total numerical membership of the Board to be determined by 
     the Commission.
       ``(ii) Specifications.--Of the members initially selected 
     to serve on the Board--

       ``(I) not less than a majority of the members shall be 
     representatives of the investor industry who do not represent 
     issuers;
       ``(II) not less than 1 member should be a representative of 
     the issuer industry;
       ``(III) not less than 1 member should be a representative 
     of the credit rating agency industry; and
       ``(IV) not less than 1 member should be an independent 
     member.

       ``(iii) Terms.--Initial members shall be appointed by the 
     Commission for a term of 4 years.
       ``(iv) Nomination and election of members.--

       ``(I) In general.--Prior to the expiration of the terms of 
     office of the initial members, the Commission shall establish 
     fair procedures for the nomination and election of future 
     members of the Board.
       ``(II) Modifications of the board.--Prior to the expiration 
     of the terms of office of the initial members, the 
     Commission--

       ``(aa) may increase the size of the board to a larger odd 
     number and adjust the length of future terms; and
       ``(bb) shall retain the composition of members described in 
     clause (ii).
       ``(v) Responsibilities of members.--Members shall perform, 
     at a minimum, the duties described in this subsection.
       ``(vi) Rulemaking authority.--The Commission shall, if it 
     determines necessary and appropriate, issue further rules and 
     regulations on the composition of the membership of the Board 
     and the responsibilities of the members.
       ``(D) Other authorities of the board.--The Board shall have 
     the authority to levy fees from qualified nationally 
     recognized statistical rating organization applicants, and 
     periodically from qualified nationally recognized statistical 
     rating organizations as necessary to fund expenses of the 
     Board.
       ``(E) Regulation.--The Commission has the authority to 
     regulate the activities of the Board, and issue any further 
     regulations of the Board it deems necessary, not in 
     contravention with the intent of this section.
       ``(3) Board selection of qualified nationally recognized 
     statistical rating organization.--
       ``(A) Application.--
       ``(i) In general.--A nationally recognized statistical 
     rating organization may submit an application to the Board, 
     in such form and manner as the Board may require, to become a 
     qualified nationally recognized statistical rating 
     organization with respect to a category of structured finance 
     products.
       ``(ii) Contents.--An application submitted under clause (i) 
     shall contain--

       ``(I) information regarding the institutional and technical 
     capacity of the nationally recognized statistical rating 
     organization to issue credit ratings;
       ``(II) information on whether the nationally recognized 
     statistical rating organization has been exempted by the 
     Commission from any requirements under any other provision of 
     this section; and
       ``(III) any additional information the Board may require.

       ``(iii) Rejection of applications.--The Board may reject an 
     application submitted under this paragraph if the nationally 
     recognized statistical rating organization has been exempted 
     by the Commission from any requirements under any other 
     provision of this section.
       ``(B) Selection.--The Board shall select qualified national 
     recognized statistical rating organizations with respect to 
     each category of structured finance products from among 
     nationally recognized statistical rating organizations that 
     submit applications under subparagraph (A).
       ``(C) Retention of status and obligations after 
     selection.--An entity selected as a qualified nationally 
     recognized statistical rating organization shall retain its 
     status and obligations under the law as a nationally 
     recognized statistical rating organization, and nothing in 
     this subsection grants authority to the Commission or the 
     Board to exempt qualified nationally recognized statistical 
     rating organizations from obligations or requirements 
     otherwise imposed by Federal law on nationally recognized 
     statistical rating organizations
       ``(4) Requesting an initial credit rating.--An issuer that 
     seeks an initial credit rating for a structured finance 
     product--
       ``(A) may not request an initial credit rating from a 
     nationally recognized statistical rating organization; and
       ``(B) shall submit a request for an initial credit rating 
     to the Board, in such form and manner as the Board may 
     prescribe.
       ``(5) Assignment of rating duties.--
       ``(A) In general.--For each request received by the Board 
     under paragraph (4)(B), the Board shall select a qualified 
     nationally recognized statistical rating organization to 
     provide the initial credit rating to the issuer.
       ``(B) Method of selection.--
       ``(i) In general.--The Board shall--

       ``(I) evaluate a number of selection methods, including a 
     lottery or rotating assignment system, incorporating the 
     factors described in clause (ii), to reduce the conflicts of 
     interest that exist under the issuer-pays model; and
       ``(II) prescribe and publish the selection method to be 
     used under subparagraph (A).

       ``(ii) Consideration.--In evaluating a selection method 
     described in clause (i)(I), the Board shall consider--

       ``(I) the information submitted by the qualified nationally 
     recognized statistical rating organization under paragraph 
     (3)(A)(ii) regarding the institutional and technical capacity 
     of the qualified nationally recognized statistical rating 
     organization to issue credit ratings;
       ``(II) evaluations conducted under paragraph (7);
       ``(III) formal feedback from institutional investors; and
       ``(IV) information from subclauses (I) and (II) to 
     implement a mechanism which increases or decreases 
     assignments based on past performance.

       ``(iii) Prohibition.--The Board, in choosing a selection 
     method, may not use a method that would allow for the 
     solicitation or consideration of the preferred national 
     recognized statistical rating organizations of the issuer.
       ``(iv) Adjustment of process.--The Board shall issue rules 
     describing the process by which it can modify the assignment 
     process described in clause (i).
       ``(C) Right of refusal.--
       ``(i) Refusal.--A qualified nationally recognized 
     statistical rating organization selected under subparagraph 
     (A) may refuse to accept a selection for a particular request 
     by--

       ``(I) notifying the Board of such refusal; and
       ``(II) submitting to the Board a written explanation of the 
     refusal.

       ``(ii) Selection.--Upon receipt of a notification under 
     clause (i), the Board shall make an additional selection 
     under subparagraph (A).
       ``(iii) Inspection reports.--The Board shall annually 
     submit any explanations of refusals received under clause 
     (i)(II) to the Commission, and such explanatory submissions 
     shall be published in the annual inspection reports required 
     under subsection (p)(3)(C).
       ``(6) Disclaimer required.--Each initial credit rating 
     issued under this subsection shall include, in writing, the 
     following disclaimer: `This initial rating has not been 
     evaluated, approved, or certified by the Government of the 
     United States or by a Federal agency.'.
       ``(7) Evaluation of performance.--
       ``(A) In general.--The Board shall prescribe rules by which 
     the Board will evaluate the performance of each qualified 
     nationally recognized statistical rating organization, 
     including rules that require, at a minimum, an annual 
     evaluation of each qualified nationally recognized 
     statistical rating organization.
       ``(B) Considerations.--The Board, in conducting an 
     evaluation under subparagraph (A), shall consider--

[[Page S3654]]

       ``(i) the results of the annual examination conducted under 
     subsection (p)(3);
       ``(ii) surveillance of credit ratings conducted by the 
     qualified nationally recognized statistical rating 
     organization after the credit ratings are issued, including--

       ``(I) how the rated instruments perform;
       ``(II) the accuracy of the ratings provided by the 
     qualified nationally recognized statistical rating 
     organization as compared to the other nationally recognized 
     statistical rating organizations; and
       ``(III) the effectiveness of the methodologies used by the 
     qualified nationally recognized statistical rating 
     organization; and

       ``(iii) any additional factors the Board determines to be 
     relevant.
       ``(C) Request for reevaluation.--Subject to rules 
     prescribed by the Board, and not less frequently than once a 
     year, a qualified nationally recognized statistical rating 
     organization may request that the Board conduct an evaluation 
     under this paragraph.
       ``(D) Disclosure.--The Board shall make the evaluations 
     conducted under this paragraph available to Congress.
       ``(8) Rating fees charged to issuers.--
       ``(A) Limited to reasonable fees.--A qualified nationally 
     recognized statistical rating organization shall charge an 
     issuer a reasonable fee, as determined by the Commission, for 
     an initial credit rating provided under this section.
       ``(B) Fees.--Fees may be determined by the qualified 
     national recognized statistical rating organizations unless 
     the Board determines it is necessary to issue rules on fees.
       ``(9) No prohibition on additional ratings.--Nothing in 
     this section shall prohibit an issuer from requesting or 
     receiving additional credit ratings with respect to a debt 
     security, if the initial credit rating is provided in 
     accordance with this section.
       ``(10) No prohibition on independent ratings offered by 
     nationally recognized statistical rating organizations.--
       ``(A) In general.--Nothing in this section shall prohibit a 
     nationally recognized statistical rating organization from 
     independently providing a credit rating with respect to a 
     debt security, if--
       ``(i) the nationally recognized statistical rating 
     organization does not enter into a contract with the issuer 
     of the debt security to provide the initial credit rating; 
     and
       ``(ii) the nationally recognized statistical rating 
     organization is not paid by the issuer of the debt security 
     to provide the initial credit rating.
       ``(B) Rule of construction.--For purposes of this section, 
     a credit rating described in subparagraph (A) may not be 
     construed to be an initial credit rating.
       ``(11) Public communications.--Any communications made with 
     the public by an issuer with respect to the credit rating of 
     a debt security shall clearly specify whether the credit 
     rating was made by--
       ``(A) a qualified nationally recognized statistical rating 
     organization selected under paragraph (5)(A) to provide the 
     initial credit rating for such debt security; or
       ``(B) a nationally recognized statistical rating 
     organization not selected under paragraph (5)(A).
       ``(12) Prohibition on misrepresentation.--With respect to a 
     debt security, it shall be unlawful for any person to 
     misrepresent any subsequent credit rating provided for such 
     debt security as an initial credit rating provided for such 
     debt security by a qualified nationally recognized 
     statistical rating organization selected under paragraph 
     (5)(A).
       ``(13) Initial credit rating revision after material change 
     in circumstance.--If the Board determines that it is 
     necessary or appropriate in the public interest or for the 
     protection of investors, the Board may issue regulations 
     requiring that an issuer that has received an initial credit 
     rating under this subsection request a revised initial credit 
     rating, using the same method as provided under paragraph 
     (4), each time the issuer experiences a material change in 
     circumstances, as defined by the Board.
       ``(14) Conflicts.--
       ``(A) Members or employees of the board.--
       ``(i) Loan of money or securities prohibited.--

       ``(I) In general.--A member or employee of the Board shall 
     not accept any loan of money or securities, or anything above 
     nominal value, from any nationally recognized statistical 
     rating organization, issuer, or investor.
       ``(II) Exception.--The prohibition in subclause (I) does 
     not apply to a loan made in the context of disclosed, routine 
     banking and brokerage agreements, or a loan that is clearly 
     motivated by a personal or family relationship.

       ``(ii) Employment negotiations prohibition.--A member or 
     employee of the Board shall not engage in employment 
     negotiations with any nationally recognized statistical 
     rating organization, issuer, or investor, unless the member 
     or employee--

       ``(I) discloses the negotiations immediately upon 
     initiation of the negotiations; and
       ``(II) recuses himself from all proceedings concerning the 
     entity involved in the negotiations until termination of 
     negotiations or until termination of his employment by the 
     Board, if an offer of employment is accepted.

       ``(B) Credit analysts.--
       ``(i) In general.--A credit analyst of a qualified 
     nationally recognized statistical rating organization shall 
     not accept any loan of money or securities, or anything above 
     nominal value, from any issuer or investor.
       ``(ii) Exception.--The prohibition described in clause (i) 
     does not apply to a loan made in the context of disclosed, 
     routine banking and brokerage agreements, or a loan that is 
     clearly motivated by a personal or family relationship.
       ``(15) Evaluation of credit rating agency board.--Not later 
     than 5 years after the date that the Board begins assigning 
     qualified nationally recognized statistical rating 
     organizations to provide initial ratings, the Commission 
     shall submit to Congress a report that provides 
     recommendations of--
       ``(A) the continuation of the Board;
       ``(B) any modification to the procedures of the Board; and
       ``(C) modifications to the provisions in this 
     subsection.''.
                                 ______
                                 
  SA 3992. Mr. CRAPO proposed an amendment to amendment SA 3956 
proposed by Ms. Landrieu (for herself, Mr. Isakson, Mrs. Hagan, Mr. 
Warner, and Mr. Menendez) to the amendment SA 3739 proposed by Mr. Reid 
(for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, to 
promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; as follows:

       On page 1 of the amendment, strike line 3 and all that 
     follows through page 3, line 7, and insert the following:
       ``(i) a portion of the credit risk for any asset that is 
     transferred, sold, or conveyed through the issuance of an 
     asset-backed security by the securitizer; or
       ``(ii) a reduced portion or no portion of the credit risk 
     for an asset described in clause (i), if the originator of 
     the asset meets the underwriting standards prescribed under 
     paragraph (2)(B) or subsection (e)(4);
       ``(C) specify--
       ``(i) the permissible types, forms, and amounts of risk 
     retention that would meet the requirements of subparagraph 
     (B), including--

       ``(I) retention of--

       ``(aa) a specified amount or percentage of the total credit 
     risk of the asset;
       ``(bb) the value of securities sold to investors; or
       ``(cc) the interest of the seller in revolving assets;

       ``(II) retention of the first-loss position by a third-
     party purchaser that specifically negotiates for the purchase 
     of such first-loss position and provides due diligence on all 
     individual assets in the pool before the issuance of the 
     asset-backed securities;
       ``(III) a determination by a Federal banking agency or the 
     Commission that the underwriting standards and controls of 
     the originator are adequate for risk retention purposes; and
       ``(IV) provision of adequate representations and warranties 
     and related enforcement mechanisms; and

       ``(ii) the minimum duration of the risk retention required 
     under this section;
                                 ______
                                 
  SA 3993. Ms. STABENOW (for herself and Mr. Brown of Ohio) submitted 
an amendment intended to be proposed to amendment SA 3739 proposed by 
Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 
3217, to promote the financial stability of the United States by 
improving accountability and transparency in the financial system, to 
end ``too big to fail'', to protect the American taxpayer by ending 
bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 580, line 20, insert ``and involved in hedging 
     activities related to'' after ``engaged in''.
       On page 580, lines 24 and 25, strike ``only if the 
     affiliate'' and insert ``as can affiliates''.
       On page 581, line 1, strike ``uses'' and insert ``using''.
       On page 582, between lines 6 and 7, insert the following:
       ``(iii) Transition rule.--

       ``(I) In general.--An affiliate or a wholly owned entity of 
     a commercial end user that is predominantly engaged in 
     providing financing for the purchase of merchandise or 
     manufactured goods of the commercial end user affiliate shall 
     be exempt from the margin requirement described in section 
     4s(e) and the clearing requirement described in paragraph (1) 
     with regard to swaps entered into to mitigate the risk of the 
     financing activities for not less than a 3-year period 
     beginning on the date of enactment of this clause.
       ``(II) Authority of commission.--On the date on which the 
     3-year period described in subclause (I) ends, the Commission 
     may extend the exemption described in that subclause for an 
     additional 1-year period if the Commission determines the 
     extension to be in the public interest and publishes in the 
     Federal Register the order granting the extension (including 
     each reason for the extension).''.

       On page 653, line 22, strike ``and such counterparty'' and 
     insert ``except if such counterparty''.

[[Page S3655]]

       On page 653, line 23, strike ``and'' and insert ``and is''.
                                 ______
                                 
  SA 3994. Mr. SPECTER submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 1004, line 11, strike the period at the end and 
     insert the following: ``.

     SEC. 929D. PRIVATE CIVIL ACTION FOR AIDING AND ABETTING.

       Section 20(e) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78t(e)) is amended--
       (1) in the subsection heading, by striking ``Prosecution 
     of'' and inserting ``Actions Against'';
       (2) by striking ``For purposes'' and inserting the 
     following:
       ``(1) Actions brought by commission.--For purposes''; and
       (3) by adding at the end the following:
       ``(2) Private civil actions.--For purposes of any private 
     civil action implied under this title, any person that 
     knowingly provides substantial assistance to another person 
     in violation of this title, or of any rule or regulation 
     issued under this title, shall be deemed to be in violation 
     of this title to the same extent as the person to whom such 
     assistance is provided. For purposes of this paragraph, a 
     person acts knowingly only if the person has actual knowledge 
     of the improper conduct underlying the violation described in 
     the preceding sentence and the role of the person in 
     assisting such conduct.''.
                                 ______
                                 
  SA 3995. Mr. BROWN of Ohio submitted an amendment intended to be 
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for 
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 1304, between lines 5 and 6, insert the following:
       (e) Study and Report on Private Education Loans and Private 
     Educational Lenders.--
       (1) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Director and the Secretary of 
     Education, in consultation with the Commissioners of the 
     Federal Trade Commission and the Attorney General, shall 
     submit a report to the Committee on Banking, Housing, and 
     Urban Affairs and the Committee on Health, Education, Labor, 
     and Pensions of the Senate and the Committee on Financial 
     Services and the Committee on Education and Labor of the 
     House of Representatives on private education loans and 
     private educational lenders (as that term is defined in 
     section 140 of the Truth in Lending Act (15 U.S.C. 1650)).
       (2) Content.--The report required by this subsection shall 
     examine, at a minimum, the following:
       (A) The growth and changes of the private education loan 
     market in the United States.
       (B) Factors influencing such growth and changes.
       (C) The extent to which students and parents of students 
     rely on private education loans to finance postsecondary 
     education and the private education loan indebtedness of 
     borrowers.
       (D) The characteristics of private education loan 
     borrowers, including--
       (i) the types of institutions of higher education such 
     borrowers attend;
       (ii) socioeconomic characteristics (including income and 
     education levels, racial characteristics, geographical 
     background, age, and gender);
       (iii) the other forms of financing borrowers use to pay for 
     education;
       (iv) whether borrowers exhaust their Federal loan options 
     before taking out a private education loan;
       (v) whether such borrowers are dependent or independent 
     students (as determined under part F of title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1087kk)) or parents 
     of such students;
       (vi) whether such borrowers are students enrolled in a 
     program leading to a certificate, license, or credential 
     other than a degree, an associate's degree, a baccalaureate 
     degree, or a graduate or professional degree; and
       (vii) if practicable, employment and repayment behaviors.
       (E) The characteristics of private educational lenders, 
     including whether such lenders are for-profit, nonprofit, or 
     institutions of higher education.
       (F) The underwriting criteria used by private educational 
     lenders, including the use of the cohort default rate (as 
     such term is defined in section 435(m) of the Higher 
     Education Act of 1965 (20 U.S.C. 1085(m)).
       (G) The terms, conditions, and pricing of private education 
     loans.
       (H) The consumer protections available to private education 
     loan borrowers, including the effectiveness of existing 
     disclosures and requirements and borrowers' awareness and 
     understanding about terms and conditions of various financial 
     products.
       (I) Whether Federal regulators and the public have access 
     to information--
       (i) sufficient to provide them with assurances that private 
     education loans are provided in accord with the fair lending 
     laws of the United States; and
       (ii) that allows public officials to determine lenders' 
     compliance with fair lending laws.
       (J) Any statutory or legislative recommendations necessary 
     to improve consumer protections for private education loan 
     borrowers and to better enable Federal regulators and the 
     public to ascertain private educational lender compliance 
     with fair lending laws.
                                 ______
                                 
  SA 3996. Mr. COBURN (for himself and Mrs. McCaskill) submitted an 
amendment intended to be proposed to amendment SA 3775 submitted by Mr. 
Wyden (for himself and Mr. Grassley) and intended to be proposed to the 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the end of the amendment, insert the following:

     SEC. ___. STOP SECRET SPENDING ACT.

       (a) Short Title.--This section may be cited as the ``Stop 
     Secret Spending Act''.
       (b) Notice Requirement.--In the Senate, legislation that 
     has been subject to a hotline notification may not pass by 
     unanimous consent unless the hotline notification has been 
     posted on the public website of the Senate for at least 3 
     calendar days as provided in subsection (c).
       (c) Posting on Senate Webpage.--At the same time as a 
     hotline notification occurs with respect to any legislation, 
     the Majority Leader shall post in a prominent place on the 
     public webpage of the Senate a notice that the legislation 
     has been hotlined and the legislation's number, title, link 
     to full text, and sponsor and the estimated cost to implement 
     and the number of new programs created by the legislation.
       (d) Legislative Calendar.--
       (1) In general.--The Secretary of the Senate shall 
     establish for both the Senate Calendar of Business and the 
     Senate Executive Calendar a separate section entitled 
     ``Notice of Intent To Pass by Unanimous Consent''.
       (2) Content.--The section required by paragraph (1) shall--
       (A) include any legislation posted as required by 
     subsection (c) and the date the hotline notification 
     occurred; and
       (B) be updated as appropriate.
       (3) Removal.--Items included on the calendar under this 
     subsection shall be removed from the calendar once passed by 
     the Senate.
       (e) Exceptions.--This section shall not apply--
       (1) if a quorum of the Senate is present at the time the 
     unanimous consent is propounded to pass the bill;
       (2) to any legislation relating to an imminent or ongoing 
     emergency, as jointly agreed to by the Majority and Minority 
     Leaders; and
       (3) to nominations.
       (f) Suspension.--The Presiding Officer shall not entertain 
     any request to suspend this section by unanimous consent.
       (g) Hotline Notification Defined.--In this section, the 
     term ``hotline notification'' means when the Majority Leader 
     in consultation with the Minority Leader, provides notice of 
     intent to pass legislation by unanimous consent by contacting 
     each Senate office with a message on a special alert line 
     (commonly referred to as the hotline) that provides 
     information on what bill or bills the Majority Leader is 
     seeking to pass through unanimous consent.
                                 ______
                                 
  SA 3997. Mr. BROWNBACK (for himself, Mr. Feingold, Mr. Durbin, Mr. 
Specter, Mr. Brown of Ohio, Mr. Johnson, Mr. Whitehouse, Mr. 
Lautenberg, Mrs. Boxer, and Mr. Merkley) submitted an amendment 
intended to be proposed to amendment SA 3739 proposed by Mr. Reid (for 
Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, to 
promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:


[[Page S3656]]


       On page 1565, after line 23, add the following:

                  TITLE XIII--CONGO CONFLICT MINERALS

     SEC. 1301. SENSE OF CONGRESS ON EXPLOITATION AND TRADE OF 
                   COLUMBITE-TANTALITE, CASSITERITE, GOLD, AND 
                   WOLFRAMITE ORIGINATING IN DEMOCRATIC REPUBLIC 
                   OF CONGO.

       It is the sense of Congress that the exploitation and trade 
     of columbite-tantalite, cassiterite, gold, and wolframite in 
     the eastern Democratic Republic of Congo is helping to 
     finance extreme levels of violence in the eastern Democratic 
     Republic of Congo, particularly sexual and gender-based 
     violence, and contributing to an emergency humanitarian 
     situation therein, warranting the provisions of section 13(o) 
     of the Securities Exchange Act of 1934, as added by section 
     1302.

     SEC. 1302. DISCLOSURE TO SECURITIES AND EXCHANGE COMMISSION 
                   RELATING TO COLUMBITE-TANTALITE, CASSITERITE, 
                   GOLD, AND WOLFRAMITE ORIGINATING IN DEMOCRATIC 
                   REPUBLIC OF CONGO.

       Section 13 of the Securities Exchange Act of 1934 (15 
     U.S.C. 78m), as amended by section 763 of this Act, is 
     further amended by adding at the end the following new 
     subsection:
       ``(o) Disclosures to Commission Relating to Columbite-
     tantalite, Cassiterite, Gold, and Wolframite Originating in 
     Democratic Republic of Congo.--
       ``(1) In general.--Not later than 180 days after the date 
     of the enactment of this subsection, the Commission shall 
     promulgate rules requiring any person described in paragraph 
     (2)--
       ``(A) to disclose annually to the Commission in a report--
       ``(i) whether the columbite-tantalite, cassiterite, gold, 
     or wolframite that was necessary as described in paragraph 
     (2)(A)(ii) in the year for which such report is submitted 
     originated or may have originated in the Democratic Republic 
     of Congo or an adjoining country; and
       ``(ii) a description of the measures taken by the person, 
     which may include an independent audit, to exercise due 
     diligence on the source and chain of custody of such 
     columbite-tantalite, cassiterite, gold, or wolframite, or 
     derivatives of such minerals, in order to ensure that the 
     activities of such person that involve such minerals or 
     derivatives did not directly or indirectly finance or benefit 
     armed groups in the Democratic Republic of Congo or an 
     adjoining country; and
       ``(B) make the information disclosed under subparagraph (A) 
     available to the public on the Internet website of the 
     person.
       ``(2) Person described.--
       ``(A) In general.--A person is described in this paragraph 
     if--
       ``(i) the person is required to file reports to the 
     Commission under subsection (a)(2); and
       ``(ii) columbite-tantalite, cassiterite, gold, or 
     wolframite is necessary to the functionality or production of 
     a product manufactured by such person.
       ``(B) Derivatives.--For purposes of this paragraph, if a 
     derivative of a mineral is necessary to the functionality or 
     production of a product manufactured by a person, such 
     mineral shall also be considered necessary to the 
     functionality or production of a product manufactured by the 
     person.
       ``(3) Revisions and waivers.--The Commission shall revise 
     or temporarily waive the requirements described in paragraph 
     (1) if the President determines that such revision or waiver 
     is in the public interest.
       ``(4) Termination of disclosure requirements.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the requirements of paragraph (1) shall terminate on the date 
     that is 5 years after the date of the enactment of this 
     subsection.
       ``(B) Extension by secretary of state.--The date described 
     in subparagraph (A) shall be extended by 1 year for each year 
     in which the Secretary of State certifies that armed parties 
     to the ongoing armed conflict in the Democratic Republic of 
     Congo or adjoining countries continue to be directly involved 
     and benefitting from commercial activity involving columbite-
     tantalite, cassiterite, gold, or wolframite.
       ``(5) Adjoining country defined.--In this subsection, the 
     term `adjoining country', with respect to the Democratic 
     Republic of Congo, means a country that shares an 
     internationally recognized border with the Democratic 
     Republic of Congo.''.

     SEC. 1303. REPORT.

       Not later than 2 years after the date of the enactment of 
     this Act, the Comptroller General of the United States shall 
     submit to Congress a report that includes the following:
       (1) An assessment of the effectiveness of section 13(o) of 
     the Securities Exchange Act of 1934, as added by section 
     1302, in promoting peace and security in the eastern 
     Democratic Republic of Congo.
       (2) A description of the problems, if any, encountered by 
     the Securities and Exchange Commission in carrying out the 
     provisions of such section 13(o).
       (3) A description of the adverse impacts of carrying out 
     the provisions of such section 13(o), if any, on communities 
     in the eastern Democratic Republic of Congo.
       (4) Recommendations for legislative or regulatory actions 
     that can be taken--
       (A) to improve the effectiveness of the provisions of such 
     section 13(o) to promote peace and security in the eastern 
     Democratic Republic of Congo;
       (B) to resolve the problems described pursuant to paragraph 
     (2), if any; and
       (C) to mitigate the adverse impacts described pursuant 
     paragraph (3), if any.
                                 ______
                                 
  SA 3998. Mr. BUNNING submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 1552, strike line 8 and all that follows through 
     page 1553, line 6, and insert the following:

     SEC. 1157. ACCOUNTABILITY, TRANSPARENCY, AND REFORMS.

       (a) Term Limits for the Chairman and Vice Chairmen.--The 
     third sentence of the second undesignated paragraph of 
     section 10 of the Federal Reserve Act (12 U.S.C. 242), as 
     amended by section 1158(a)(1) of this Act, is amended by 
     inserting before the period at the end the following: ``, 
     provided that no person shall be designated to serve as 
     Chairman of the Board more than twice and no person shall be 
     designated to serve as a Vice Chairman of the Board more than 
     twice''.
       (b) Federal Reserve Act Emergency Lending Authority.--The 
     third undesignated paragraph of section 13 of the Federal 
     Reserve Act (12 U.S.C. 343) (relating to emergency lending 
     authority), as amended by section 1151 of this Act, is 
     amended by inserting ``and the majority of the presidents or 
     first vice presidents of the Federal reserve banks'' after 
     ``not less than five members''.
       (c) Staff for Members of the Board of Governors.--Section 
     11(l) of the Federal Reserve Act (12 U.S.C. 248(l)) is 
     amended in the first sentence by inserting ``, including 
     independent staff for each member of the Board'' before the 
     period at the end.
       (d) Federal Open Market Committee.--Section 12A(a) of the 
     Federal Reserve Act (12 U.S.C. 263(a)) is amended by striking 
     ``five representatives'' and all that follows and inserting 
     ``the presidents or first vice presidents of the Federal 
     reserve banks. Any action of the Committee shall require 
     approval by a majority of the presidents or first vice 
     presidents of the Federal reserve banks and a majority of the 
     members of the Board of Governors of the Federal Reserve 
     System. The Chairman of the Board of Governors of the Federal 
     Reserve System shall not cast a vote except in the case of a 
     tie. Each member of the Committee shall have the right to 
     debate and be accompanied by staff. At the first meeting of 
     each calendar year, the Committee shall elect a Chairman and 
     Vice Chairman. The Chairman and Vice Chairman may not both be 
     members of the Board of Governors of the Federal Reserve 
     System and a member of the Committee may not be elected to 
     consecutive terms as Vice Chairman. The meetings of the 
     Committee shall be held at Washington, District of Columbia, 
     at least 4 times each year, upon the call of the chairman of 
     the Board of Governors of the Federal Reserve System or at 
     the request of any 3 members of the Committee.''.
       (e) Monetary Policy To Be Conducted by the Federal Open 
     Market Committee.--Section 19(b)(12)(A) of the Federal 
     Reserve Act (12 U.S.C. 461(b)(12)(A)) is amended by striking 
     ``not to exceed the general level of short-term interest 
     rates'' and inserting ``determined by the Federal Open Market 
     Committee''.
       (f) Transparency; Sunshine Act Applies to the Federal 
     Reserve.--Section 552b of title 5, United States Code, is 
     amended--
       (1) in subsection (a)(1), by inserting ``the Board of 
     Governors of the Federal Reserve System, the Federal Open 
     Market Committee, and'' after ``means'';
       (2) in subsection (f)--
       (A) in paragraph (1), by striking ``each meeting,'' and all 
     that follows and inserting ``each meeting.''; and
       (B) in paragraph (2)--
       (i) by striking ``transcript, electronic recording, or 
     minutes (as required by paragraph (1))'' and inserting 
     ``transcript or electronic recording'';
       (ii) by striking ``of such transcript, or minutes,'' and 
     inserting ``of such transcript'';
       (iii) by striking ``, a complete copy of the minutes,''; 
     and
       (iv) by adding before the period at the end ``, except that 
     the Board of Governors of the Federal Reserve System and the 
     Federal Open Market Committee shall maintain such transcript 
     or electronic recording permanently'';
       (3) in subsection (k)--
       (A) by striking ``transcripts, recordings, or minutes'' and 
     inserting ``transcripts or recordings''; and
       (B) by striking ``transcripts, recordings, and minutes'' 
     and inserting ``transcripts and recordings''; and
       (4) in subsection (m), by striking ``transcripts, 
     recordings, or minutes'' and inserting ``transcripts or 
     recordings''.
       (g) Public Access to Information.--Section 2B of the 
     Federal Reserve Act (12 U.S.C. 225b) is amended--
       (1) in subsection (c), as added by section 1153 of this 
     Act--
       (A) in the matter preceding paragraph (1), by striking 
     ``shall serve as a repository of information made available 
     to the public for a reasonable period of time, not less than 
     6

[[Page S3657]]

     months following the date of release of the relevant 
     information, including--'' and inserting ``shall serve as a 
     permanent repository of information made available to the 
     public, which shall be made available on the webpage not 
     later than 7 days after the date of release of the relevant 
     information, including--'';
       (B) in paragraph (3), by striking ``and'' at the end;
       (C) by redesignating paragraph (4) as paragraph (6); and
       (D) by adding at the end the following:
       ``(4) any audit of or report on the Board or the Federal 
     Open Market Committee prepared by the Comptroller General of 
     the United States;
       ``(5) the reports, minutes, transcripts, and other 
     disclosures required under subsection (c); and'';
       (2) by redesignating subsection (c) as subsection (d); and
       (3) by inserting after subsection (b) the following:
       ``(c) Additional Reports and Disclosures.--
       ``(1) Board.--
       ``(A) In general.--The Board shall make publicly 
     available--
       ``(i) an announcement of any actions taken by the Board at 
     any meeting, at the conclusion of such meeting, including the 
     votes of members of the Board;
       ``(ii) minutes of any meeting, not later than 30 days after 
     the date of such meeting;
       ``(iii) transcripts of any meeting, not later than 1 year 
     after the date of such meeting; and
       ``(iv) except as provided in subparagraph (B)--

       ``(I) not later than 1 year after providing any loan or 
     other financial assistance to any entity, a report that 
     includes--

       ``(aa) the justification for the exercise of authority to 
     provide such assistance;
       ``(bb) the identity of the recipients of such assistance;
       ``(cc) the date and amount of the assistance, and the form 
     in which the assistance was provided; and
       ``(dd) the material terms of the assistance, including--
       ``(AA) the duration;
       ``(BB) the collateral pledged and the value thereof;
       ``(CC) all interest, fees, and other revenue or items of 
     value to be received in exchange for the assistance;
       ``(DD) any requirements imposed on the recipient with 
     respect to employee compensation, distribution of dividends, 
     or any other corporate decision in exchange for the 
     assistance; and
       ``(EE) the expected costs to the United States of the 
     assistance; and

       ``(II) 30 days after the date on which a report is made 
     available under subclause (I), and every 30 days thereafter, 
     written updates on--

       ``(aa) the value of collateral;
       ``(bb) the amount of interest, fees, and other revenue or 
     items of value received in exchange for the assistance; and
       ``(cc) the expected or final cost to the United States of 
     the assistance.
       ``(B) Exception.--If the Board, by the affirmative vote of 
     not less than 5 members and the majority of the presidents or 
     first vice presidents of the Federal reserve banks, 
     determines that making the report required under subparagraph 
     (A)(iv) publicly available at that time would not be in the 
     public interest, public release of such report may be delayed 
     by the Board for not more than 180 days, and, following a 
     second such affirmative vote, for not more than 180 
     additional days, if the Board--
       ``(i) provides the report and any applicable updates 
     required in subparagraph (A)(iv) to the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives within the 
     time periods specified in subparagraph (A)(iv); and
       ``(ii) makes publicly available a statement--

       ``(I) describing the report withheld;
       ``(II) explaining the reasons for the determination that 
     release of such report is not in the public interest; and
       ``(III) including the votes of the members of the Board on 
     such determination.

       ``(2) FOMC.--The Federal Open Market Committee shall make 
     publicly available--
       ``(A) at the conclusion of any meeting an announcement of 
     any actions taken by the Committee at such meeting, including 
     the votes of members of the Committee;
       ``(B) minutes of any meeting, not later than 30 days after 
     the date of such meeting;
       ``(C) transcripts of any meeting, not later than 1 year 
     after the date of such meeting.''.
       (h) Age Discrimination.--Section 15(a) of the Age 
     Discrimination in Employment Act of 1967 (29 U.S.C. 633a(a)) 
     is amended by striking ``and the Library of Congress'' and 
     inserting ``the Library of Congress, the Board of Governors 
     of the Federal Reserve System, and the Federal reserve 
     banks''.
       (i) Reports.--
       (1) GAO report on monetary statistics.--
       (A) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to the Committee on Banking, Housing, and 
     Urban Affairs of the Senate and the Committee on Financial 
     Services of the House of Representatives a report on the use 
     of monetary statistics of the Board of Governors.
       (B) Contents.--The report under subparagraph (A) shall 
     examine the scientific validity of the measures used by the 
     Board of Governors, the usefulness of the measures, potential 
     changes to the measures, and potential alternatives and 
     additions to the measures.
       (C) Consultation.--In preparing the report under 
     subparagraph (A), the Comptroller General shall consult, at a 
     minimum, with--
       (i) current and former policy and economic experts of the 
     Board of Governors, the Federal Open Market Committee, and 
     the Federal reserve banks;
       (ii) economic and statistical staff of other Federal 
     agencies;
       (iii) academic economists and statisticians;
       (iv) economic and statistical practitioners; and
       (v) experts from other governments and international 
     organizations.
       (2) Federal open market committee report on adopting a 
     monetary policy rule.--
       (A) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Federal Open Market Committee 
     shall submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives a report on the feasibility 
     and desirability of setting a monetary policy rule or 
     guidelines.
       (B) Contents.--The report under subparagraph (A) shall 
     examine multiple methods of setting the rules or guidelines 
     described in subparagraph (A) and include an analysis of how 
     the rules or guidelines would provide for accountability in 
     fulfilling the mandate of the Committee and the Board of 
     Governors.
       (C) Participation.--All members of the Board of Governors 
     and each president of a Federal reserve bank, regardless of 
     voting status in the year in which the report is prepared, 
     shall be entitled to participate in and comment on the report 
     under subparagraph (A).
       (j) Effect on Other Laws.--Other than as expressly provided 
     in this Act, or an amendment made by this Act, nothing in 
     this Act or an amendment made by this Act shall be construed 
     to alter the public disclosure obligations of the Board of 
     Governors, the Federal Open Market Committee, or the Federal 
     reserve banks, including obligations under section 552 of 
     title 5, United States Code (commonly known as ``the Freedom 
     of Information Act''), or any other provision of law.
                                 ______
                                 
  SA 3999. Mr. BUNNING submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 1522, between lines 14 and 15, insert the 
     following:
       (2) by inserting ``and the majority of the presidents or 
     first vice presidents of the Federal reserve banks'' after 
     ``not less than five members'';
       On page 1522, line 15, strike ``(2)'' and insert ``(3)''.
       On page 1522, line 19, strike ``(3)'' and insert ``(4)''.
       On page 1522, line 22, strike ``(4)'' and insert ``(5)''.
       On page 1523, line 1, strike ``(5)'' and insert ``(6)''.
       On page 1523, line 4, strike ``(6)'' and insert ``(7)''.
       On page 1533, strike lines 7 through 13 and insert the 
     following:
       ``(c) Additional Reports and Disclosures.--
       ``(1) Board.--
       ``(A) In general.--The Board shall make publicly 
     available--
       ``(i) an announcement of any actions taken by the Board at 
     any meeting, at the conclusion of such meeting, including the 
     votes of members of the Board;
       ``(ii) minutes of any meeting, not later than 30 days after 
     the date of such meeting;
       ``(iii) transcripts of any meeting, not later than 1 year 
     after the date of such meeting; and
       ``(iv) except as provided in subparagraph (B)--

       ``(I) not later than 1 year after providing any loan or 
     other financial assistance to any entity, a report that 
     includes--

       ``(aa) the justification for the exercise of authority to 
     provide such assistance;
       ``(bb) the identity of the recipients of such assistance;
       ``(cc) the date and amount of the assistance, and the form 
     in which the assistance was provided; and
       ``(dd) the material terms of the assistance, including--
       ``(AA) the duration;
       ``(BB) the collateral pledged and the value thereof;
       ``(CC) all interest, fees, and other revenue or items of 
     value to be received in exchange for the assistance;
       ``(DD) any requirements imposed on the recipient with 
     respect to employee compensation, distribution of dividends, 
     or any other corporate decision in exchange for the 
     assistance; and

[[Page S3658]]

       ``(EE) the expected costs to the United States of the 
     assistance; and

       ``(II) 30 days after the date on which a report is made 
     available under subclause (I), and every 30 days thereafter, 
     written updates on--

       ``(aa) the value of collateral;
       ``(bb) the amount of interest, fees, and other revenue or 
     items of value received in exchange for the assistance; and
       ``(cc) the expected or final cost to the United States of 
     the assistance.
       ``(B) Exception.--If the Board, by the affirmative vote of 
     not less than 5 members and the majority of the presidents or 
     first vice presidents of the Federal reserve banks, 
     determines that making the report required under subparagraph 
     (A)(iv) publicly available at that time would not be in the 
     public interest, public release of such report may be delayed 
     by the Board for not more than 180 days, and, following a 
     second such affirmative vote, for not more than 180 
     additional days, if the Board--
       ``(i) provides the report and any applicable updates 
     required in subparagraph (A)(iv) to the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives within the 
     time periods specified in subparagraph (A)(iv); and
       ``(ii) makes publicly available a statement--

       ``(I) describing the report withheld;
       ``(II) explaining the reasons for the determination that 
     release of such report is not in the public interest; and
       ``(III) including the votes of the members of the Board on 
     such determination.

       ``(2) FOMC.--The Federal Open Market Committee shall make 
     publicly available--
       ``(A) at the conclusion of any meeting an announcement of 
     any actions taken by the Committee at such meeting, including 
     the votes of members of the Committee;
       ``(B) minutes of any meeting, not later than 30 days after 
     the date of such meeting;
       ``(C) transcripts of any meeting, not later than 1 year 
     after the date of such meeting.
       ``(d) Public Access to Information.--The Board shall place 
     on its home Internet website, a link entitled `Audit', which 
     shall link to a webpage that shall serve as a permanent 
     repository of information made available to the public, which 
     shall be made available on the webpage not later than 7 days 
     after the date of release of the relevant information, 
     including--
       On page 1533, line 23, strike ``and''.
       On page 1533, between lines 23 and 24, insert the 
     following:
       ``(4) any audit of or report on the Board or the Federal 
     Open Market Committee prepared by the Comptroller General of 
     the United States;
       ``(5) the reports, minutes, transcripts, and other 
     disclosures required under subsection (c); and
       On page 1533, line 24, strike ``(4)'' and insert ``(6)''.
       On page 1552, strike line 8 and all that follows through 
     page 1553, line 6, and insert the following:

     SEC. 1157. ACCOUNTABILITY, TRANSPARENCY, AND REFORMS.

       (a) Staff for Members of the Board of Governors.--Section 
     11(l) of the Federal Reserve Act (12 U.S.C. 248(l)) is 
     amended in the first sentence by inserting ``, including 
     independent staff for each member of the Board'' before the 
     period at the end.
       (b) Federal Open Market Committee.--Section 12A(a) of the 
     Federal Reserve Act (12 U.S.C. 263(a)) is amended by striking 
     ``five representatives'' and all that follows and inserting 
     ``the presidents or first vice presidents of the Federal 
     reserve banks. Any action of the Committee shall require 
     approval by a majority of the presidents or first vice 
     presidents of the Federal reserve banks and a majority of the 
     members of the Board of Governors of the Federal Reserve 
     System. The Chairman of the Board of Governors of the Federal 
     Reserve System shall not cast a vote except in the case of a 
     tie. Each member of the Committee shall have the right to 
     debate and be accompanied by staff. At the first meeting of 
     each calendar year, the Committee shall elect a Chairman and 
     Vice Chairman. The Chairman and Vice Chairman may not both be 
     members of the Board of Governors of the Federal Reserve 
     System and a member of the Committee may not be elected to 
     consecutive terms as Vice Chairman. The meetings of the 
     Committee shall be held at Washington, District of Columbia, 
     at least 4 times each year, upon the call of the chairman of 
     the Board of Governors of the Federal Reserve System or at 
     the request of any 3 members of the Committee.''.
       (c) Monetary Policy To Be Conducted by the Federal Open 
     Market Committee.--Section 19(b)(12)(A) of the Federal 
     Reserve Act (12 U.S.C. 461(b)(12)(A)) is amended by striking 
     ``not to exceed the general level of short-term interest 
     rates'' and inserting ``determined by the Federal Open Market 
     Committee''.
       (d) Transparency; Sunshine Act Applies to the Federal 
     Reserve.--Section 552b of title 5, United States Code, is 
     amended--
       (1) in subsection (a)(1), by inserting ``the Board of 
     Governors of the Federal Reserve System, the Federal Open 
     Market Committee, and'' after ``means'';
       (2) in subsection (f)--
       (A) in paragraph (1), by striking ``each meeting,'' and all 
     that follows and inserting ``each meeting.''; and
       (B) in paragraph (2)--
       (i) by striking ``transcript, electronic recording, or 
     minutes (as required by paragraph (1))'' and inserting 
     ``transcript or electronic recording'';
       (ii) by striking ``of such transcript, or minutes,'' and 
     inserting ``of such transcript'';
       (iii) by striking ``, a complete copy of the minutes,''; 
     and
       (iv) by adding before the period at the end ``, except that 
     the Board of Governors of the Federal Reserve System and the 
     Federal Open Market Committee shall maintain such transcript 
     or electronic recording permanently'';
       (3) in subsection (k)--
       (A) by striking ``transcripts, recordings, or minutes'' and 
     inserting ``transcripts or recordings''; and
       (B) by striking ``transcripts, recordings, and minutes'' 
     and inserting ``transcripts and recordings''; and
       (4) in subsection (m), by striking ``transcripts, 
     recordings, or minutes'' and inserting ``transcripts or 
     recordings''.
       (e) Age Discrimination.--Section 15(a) of the Age 
     Discrimination in Employment Act of 1967 (29 U.S.C. 633a(a)) 
     is amended by striking ``and the Library of Congress'' and 
     inserting ``the Library of Congress, the Board of Governors 
     of the Federal Reserve System, and the Federal reserve 
     banks''.
       (f) Reports.--
       (1) GAO report on monetary statistics.--
       (A) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to the Committee on Banking, Housing, and 
     Urban Affairs of the Senate and the Committee on Financial 
     Services of the House of Representatives a report on the use 
     of monetary statistics of the Board of Governors.
       (B) Contents.--The report under subparagraph (A) shall 
     examine the scientific validity of the measures used by the 
     Board of Governors, the usefulness of the measures, potential 
     changes to the measures, and potential alternatives and 
     additions to the measures.
       (C) Consultation.--In preparing the report under 
     subparagraph (A), the Comptroller General shall consult, at a 
     minimum, with--
       (i) current and former policy and economic experts of the 
     Board of Governors, the Federal Open Market Committee, and 
     the Federal reserve banks;
       (ii) economic and statistical staff of other Federal 
     agencies;
       (iii) academic economists and statisticians;
       (iv) economic and statistical practitioners; and
       (v) experts from other governments and international 
     organizations.
       (2) Federal open market committee report on adopting a 
     monetary policy rule.--
       (A) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Federal Open Market Committee 
     shall submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives a report on the feasibility 
     and desirability of setting a monetary policy rule or 
     guidelines.
       (B) Contents.--The report under subparagraph (A) shall 
     examine multiple methods of setting the rules or guidelines 
     described in subparagraph (A) and include an analysis of how 
     the rules or guidelines would provide for accountability in 
     fulfilling the mandate of the Committee and the Board of 
     Governors.
       (C) Participation.--All members of the Board of Governors 
     and each president of a Federal reserve bank, regardless of 
     voting status in the year in which the report is prepared, 
     shall be entitled to participate in and comment on the report 
     under subparagraph (A).
       (g) Effect on Other Laws.--Other than as expressly provided 
     in this Act, or an amendment made by this Act, nothing in 
     this Act or an amendment made by this Act shall be construed 
     to alter the public disclosure obligations of the Board of 
     Governors, the Federal Open Market Committee, or the Federal 
     reserve banks, including obligations under section 552 of 
     title 5, United States Code (commonly known as ``the Freedom 
     of Information Act''), or any other provision of law.
       On page 1554, line 2, after ``Supervision'' insert ``, 
     provided that no person shall be designated to serve as 
     Chairman of the Board more than twice and no person shall be 
     designated to serve as a Vice Chairman of the Board more than 
     twice''.
                                 ______
                                 
  SA 4000. Mr. KAUFMAN (for himself, Mr. Grassley, and Mr. Brown of 
Ohio) submitted an amendment intended to be proposed by him to the bill 
S. 3217, to promote the financial stability of the United States by 
improving accountability and transparency in the financial system, to 
end ``too big to fail'', to protect the American taxpayer by ending 
bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 728, between lines 3 and 4, insert the following:

     SEC. 760. IMPROVED TRANSPARENCY.

       (a) Securities.--Section 11A(a)(1) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78k-1(a)(1)) is amended by 
     adding at the end the following:
       ``(E) Promoting transparency of all markets for securities 
     through dissemination of quotations and orders to all 
     brokers, dealers,

[[Page S3659]]

     and investors, and minimizing, to the extent consistent with 
     other purposes of this Act, conditions under which quotations 
     and orders are hidden or selectively disseminated, will--
       ``(i) foster efficiency;
       ``(ii) enhance competition;
       ``(iii) increase the information available to brokers, 
     dealers, and investors;
       ``(iv) facilitate the offsetting of investors' orders; and
       ``(v) contribute to best execution of such orders.''.
       (b) Commodities.--Section 3(b) of the Commodity Exchange 
     Act (7 U.S.C. 5(b)) is amended--
       (1) by striking ``and'' following ``customer assets;'';
       (2) by striking the period at the end of the second 
     sentence; and
       (3) by adding at the end the following: ``; to promote 
     transparency of all markets through dissemination of 
     quotations and orders to all market participants and market 
     professionals; and to minimize, to the extent consistent with 
     other purposes of this Act, conditions under which quotations 
     and orders are hidden or selectively disseminated. Furthering 
     the purposes of this Act will foster efficiency, enhance 
     competition, increase the information available to market 
     participants, facilitate the offsetting of market 
     participants' orders, and contribute to best execution of 
     such orders.''.
                                 ______
                                 
  SA 4001. Ms. LANDRIEU (for herself and Mr. Isakson) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 1047, strike line 4 and all that follows through 
     page 1051, line 3, and insert the following:
       ``(i) not less than 5 percent of the credit risk for any 
     asset--

       ``(I) that is not a qualified residential mortgage that is 
     transferred, sold, or conveyed through the issuance of an 
     asset-backed security by the securitizer; or
       ``(II) that is a qualified residential mortgage that is 
     transferred, sold, or conveyed through the issuance of an 
     asset-backed security by the securitizer, if 1 or more of the 
     assets that collateralize the asset-backed security are not 
     qualified residential mortgages; or

       ``(ii) less than 5 percent of the credit risk for an asset 
     that is not a qualified residential mortgage that is 
     transferred, sold, or conveyed through the issuance of an 
     asset-backed security by the securitizer, if the originator 
     of the asset meets the underwriting standards prescribed 
     under paragraph (2)(B);
       ``(C) specify--
       ``(i) the permissible forms of risk retention for purposes 
     of this section;
       ``(ii) the minimum duration of the risk retention required 
     under this section; and
       ``(iii) that a securitizer is not required to retain any 
     part of the credit risk for an asset that is transferred, 
     sold or conveyed through the issuance of an asset-backed 
     security by the securitizer, if all of the assets that 
     collateralize the asset-backed security are qualified 
     residential mortgages;
       ``(D) apply, regardless of whether the securitizer is an 
     insured depository institution; and
       ``(E) provide for--
       ``(i) a total or partial exemption of any securitization, 
     as may be appropriate in the public interest and for the 
     protection of investors; and
       ``(ii) the allocation of risk retention obligations between 
     a securitizer and an originator in the case of a securitizer 
     that purchases assets from an originator, as the Federal 
     banking agencies and the Commission jointly determine 
     appropriate.
       ``(2) Asset classes.--
       ``(A) Asset classes.--The regulations prescribed under 
     subsection (b) shall establish asset classes with separate 
     rules for securitizers of different classes of assets, 
     including residential mortgages, commercial mortgages, 
     commercial loans, auto loans, and any other class of assets 
     that the Federal banking agencies and the Commission deem 
     appropriate.
       ``(B) Contents.--For each asset class established under 
     subparagraph (A), the regulations prescribed under subsection 
     (b) shall establish underwriting standards that specify the 
     terms, conditions, and characteristics of a loan within the 
     asset class that indicate a reduced credit risk with respect 
     to the loan.
       ``(d) Originators.--In determining how to allocate risk 
     retention obligations between a securitizer and an originator 
     under subsection (c)(1)(E)(ii), the Federal banking agencies 
     and the Commission shall--
       ``(1) reduce the percentage of risk retention obligations 
     required of the securitizer by the percentage of risk 
     retention obligations required of the originator; and
       ``(2) consider--
       ``(A) whether the assets sold to the securitizer have 
     terms, conditions, and characteristics that reflect reduced 
     credit risk;
       ``(B) whether the form or volume of transactions in 
     securitization markets creates incentives for imprudent 
     origination of the type of loan or asset to be sold to the 
     securitizer; and
       ``(C) the potential impact of the risk retention 
     obligations on the access of consumers and businesses to 
     credit on reasonable terms, which may not include the 
     transfer of credit risk to a third party.
       ``(e) Exemptions, Exceptions, and Adjustments.--
       ``(1) In general.--The Federal banking agencies and the 
     Commission may jointly adopt or issue exemptions, exceptions, 
     or adjustments to the rules issued under this section, 
     including exemptions, exceptions, or adjustments for classes 
     of institutions or assets relating to the risk retention 
     requirement and the prohibition on hedging under subsection 
     (c)(1).
       ``(2) Applicable standards.--Any exemption, exception, or 
     adjustment adopted or issued by the Federal banking agencies 
     and the Commission under this paragraph shall--
       ``(A) help ensure high quality underwriting standards for 
     the securitizers and originators of assets that are 
     securitized or available for securitization; and
       ``(B) encourage appropriate risk management practices by 
     the securitizers and originators of assets, improve the 
     access of consumers and businesses to credit on reasonable 
     terms, or otherwise be in the public interest and for the 
     protection of investors.
       ``(3) Farm credit system institutions.--A Farm Credit 
     System institution, including the Federal Agricultural 
     Mortgage Corporation, that is chartered and subject to the 
     provisions of the Farm Credit Act of 1971, as amended (12 
     U.S.C. 2001 et seq.), shall be exempt from the risk retention 
     provisions of this subsection.
       ``(4) Exemption for qualified residential mortgages.--
       ``(A) In general.--The Federal banking agencies, the 
     Commission, the Secretary of Housing and Urban Development, 
     and the Director of the Federal Housing Finance Agency shall 
     jointly issue regulations to exempt qualified residential 
     mortgages from the risk retention requirements of this 
     subsection.
       ``(B) Qualified residential mortgage.--The Federal banking 
     agencies, the Commission, the Secretary of Housing and Urban 
     Development, and the Director of the Federal Housing Finance 
     Agency shall jointly define the term `qualified residential 
     mortgage' for purposes of this subsection, taking into 
     consideration underwriting and product features that 
     historical loan performance data indicate result in a lower 
     risk of default, such as--
       ``(i) documentation and verification of the financial 
     resources relied upon to qualify the mortgagor;
       ``(ii) standards with respect to--

       ``(I) the residual income of the mortgagor after all 
     monthly obligations;
       ``(II) the ratio of the housing payments of the mortgagor 
     to the monthly income of the mortgagor;
       ``(III) the ratio of total monthly installment payments of 
     the mortgagor to the income of the mortgagor;

       ``(iii) mitigating the potential for payment shock on 
     adjustable rate mortgages through product features and 
     underwriting standards;
       ``(iv) mortgage guarantee insurance obtained at the time of 
     origination for loans with combined loan-to-value ratios of 
     greater than 80 percent; and
       ``(v) prohibiting or restricting the use of balloon 
     payments, negative amortization, prepayment penalties, 
     interest-only payments, and other features that have been 
     demonstrated to exhibit a higher risk of borrower default.
       ``(5) Condition for qualified residential mortgage 
     exemption.--The regulations issued under paragraph (4) shall 
     provide that an asset-backed security that is collateralized 
     by tranches of other asset-backed securities shall not be 
     exempt from the risk retention requirements of this 
     subsection.
       ``(6) Certification.--The Commission shall require an 
     issuer to certify, for each issuance of an asset-backed 
     security collateralized exclusively by qualified residential 
     mortgages, that the issuer has evaluated the effectiveness of 
     the internal supervisory controls of the issuer with respect 
     to the process for ensuring that all assets that 
     collateralize the asset-backed security are qualified 
     residential mortgages.
                                 ______
                                 
  SA 4002. Mr. LEVIN (for himself, Mr. Kaufman, and Mr. Reed) submitted 
an amendment intended to be proposed by him to the bill S. 3217, to 
promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ____. PROHIBITION ON NEGATIVELY AMORTIZING MORTGAGES.

       (a) Findings.--Congress finds the following:
       (1) The 2008 financial crisis was caused, in part, by poor 
     quality, high risk mortgages

[[Page S3660]]

     that were included in mortgage-backed securities, and that 
     incurred higher rates of delinquency and loss than 
     traditional mortgages, damaging thousands of financial 
     institutions holding the mortgages. Those poor quality, high 
     risk mortgages included billions of dollars in negatively 
     amortizing mortgages.
       (2) Negative amortization of mortgage loans leads to 
     increased monthly loan payments for borrowers, which, in 
     turn, increases the risk of loan default. During the recent 
     financial crisis, negatively amortized loans defaulted in 
     record numbers, damaging financial institutions and other 
     investors holding those assets.
       (3) Years ago, Federal banking regulators banned negatively 
     amortizing credit card loans as a threat to the safety and 
     soundness of banking institutions.
       (4) Federal financial regulators and Inspectors General 
     have testified before Congress that negatively amortizing 
     loans pose a threat to the safety and soundness of United 
     States banks, and to the financial markets where these high 
     risk mortgages are sold and securitized.
       (b) Prohibition on Negatively Amortizing Mortgages.--
     Section 129 of the Truth in Lending Act (15 U.S.C. 1639) is 
     amended by adding at the end following:
       ``(n) Prohibition on Negatively Amortizing Mortgages.--
       ``(1) In general.--Any person who sells, transfers, or 
     plans to sell or transfer at least 1,000 mortgages, mortgage-
     backed securities, or similar financial instruments within a 
     calendar year shall not include or reference in any of such 
     financial instruments any mortgage in which the loan balance 
     may negatively amortize.
       ``(2) Applicability.--This subsection does not apply to 
     home equity conversion mortgages, as defined under section 
     255 of the National Housing Act (commonly referred to as 
     `reverse mortgages') that are otherwise regulated by a 
     Federal or State agency.
       ``(3) Rule of construction.--As used in this section, the 
     term `mortgage' shall not be construed to be restricted or 
     limited only to mortgages referred to in section 103(aa).''.
       (c) Effective Date.--The requirements under subsection 
     (n)(1) of section 129 of the Truth in Lending Act (as added 
     by subsection (b)) shall take effect not later than 180 days 
     after the date of the enactment of this Act.
                                 ______
                                 
  SA 4003. Mr. VITTER submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 19, strike line 16 and all that follows through 
     page 21, line 22 and insert the following:
       (4) Nonbank financial company definitions.--
       (A) Foreign nonbank financial company.--The term ``foreign 
     nonbank financial company'' means a company (other than a 
     company that is, or is treated in the United States as, a 
     bank holding company or a subsidiary thereof), that is--
       (i) incorporated or organized in a country other than the 
     United States; and
       (ii) the consolidated revenues of which from activities 
     that are financial in nature (as defined in section 4(k) of 
     the Bank Holding Company Act of 1956) constitute 85 percent 
     or more of the total consolidated revenues of such company.
       (B) U.S. nonbank financial company.--The term ``U.S. 
     nonbank financial company'' means a company (other than a 
     bank holding company or a subsidiary thereof, or a Farm 
     Credit System institution chartered and subject to the 
     provisions of the Farm Credit Act of 1971 (12 U.S.C. 2001 et. 
     seq.)), that is--
       (i) incorporated or organized under the laws of the United 
     States or any State; and
       (ii) the consolidated revenues of which from activities 
     that are financial in nature (as defined in section 4(k) of 
     the Bank Holding Company Act of 1956) constitute 85 percent 
     or more of the total consolidated revenues of such company.
       (C) Inclusion of depository institution revenues.--In 
     determining whether a company is a financial company for 
     purposes of this title, the consolidated revenues derived 
     from the ownership or control of a depository institution 
     shall be included.
       (5) Office of financial research.--The term ``Office of 
     Financial Research'' means the office established under 
     section 152.
       (6) Significant institutions.--The terms ``significant 
     nonbank financial company'' and ``significant bank holding 
     company'' have the meanings given those terms by rule of the 
     Board of Governors.
       (b) Definitional Criteria.--The Board of Governors shall 
     establish, by regulation, the criteria to determine, 
     consistent with the requirements of subsection (a)(4), 
     whether a company is substantially engaged in activities in 
     the United States that are financial in nature (as defined in 
     section 4(k) of the Bank Holding Company Act of 1956) for 
     purposes of the definitions of the terms ``U.S. nonbank 
     financial company'' and `` `foreign nonbank financial 
     company'' under subsection (a)(4).
                                 ______
                                 
  SA 4004. Mr. LEVIN (for himself, Mr. Kaufman, and Mr. Reed) submitted 
an amendment intended to be proposed by him to the bill S. 3217, to 
promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ____. PROHIBITION ON NEGATIVELY AMORTIZING MORTGAGES.

       (a) Prohibition on Negatively Amortizing Mortgages.--
     Section 129 of the Truth in Lending Act (15 U.S.C. 1639) is 
     amended by adding at the end following:
       ``(n) Prohibition on Negatively Amortizing Mortgages.--
       ``(1) In general.--Any person who sells, transfers, or 
     plans to sell or transfer at least 1,000 mortgages, mortgage-
     backed securities, or similar financial instruments within a 
     calendar year shall not include or reference in any of such 
     financial instruments any mortgage in which the loan balance 
     may negatively amortize.
       ``(2) Applicability.--This subsection does not apply to 
     home equity conversion mortgages, as defined under section 
     255 of the National Housing Act (commonly referred to as 
     `reverse mortgages') that are otherwise regulated by a 
     Federal or State agency.
       ``(3) Rule of construction.--As used in this section, the 
     term `mortgage' shall not be construed to be restricted or 
     limited only to mortgages referred to in section 103(aa).''.
       (b) Effective Date.--The requirements under subsection 
     (n)(1) of section 129 of the Truth in Lending Act (as added 
     by subsection (b)) shall take effect not later than 180 days 
     after the date of the enactment of this Act.

                          ____________________