[Congressional Record Volume 156, Number 103 (Tuesday, July 13, 2010)]
[Extensions of Remarks]
[Page E1295]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   CONFERENCE REPORT ON H.R. 4173, DODD-FRANK WALL STREET REFORM AND 
                        CONSUMER PROTECTION ACT

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                               speech of

                           HON. ANNA G. ESHOO

                             of california

                    in the house of representatives

                        Wednesday, June 30, 2010

  Ms. ESHOO. Mr. Speaker, I rise to highlight the critical role of 
venture capital in creating jobs and growing companies. Specifically, I 
would like to raise the issue of the Volcker Rule and the unintended 
effect it may have on this type of investment.
  I strongly support and will vote for H.R. 4173, the Dodd-Frank Wall 
Street Reform and Consumer Protection Act and the inclusion of a strong 
and effective Volcker Rule.
  The purpose of the Volcker Rule is to eliminate risk-taking 
activities by banks and their affiliates while at the same time 
preserving safe, sound investment activities that serve the public 
interest. We have specifically barred bank investment in hedge funds 
and private equity for that reason.
  Venture capital funds do not pose the same risk to the health of the 
financial system. They promote the public interest by funding growing 
companies critical to spurring innovation, job creation, and economic 
competitiveness. The funds typically invest primarily or exclusively in 
private companies and are significantly smaller.
  I expect the regulators to use the broad authority in the Volcker 
Rule wisely and clarify that funds that invest in technology startup 
companies, such as venture capital funds, are not captured under the 
Volcker Rule and fall outside the definition of ``private equity 
funds''.
  This clarification will ensure the Dodd-Frank Wall Street Reform and 
Consumer Protection Act does not stop venture capital from providing a 
critical source of capital for startup technology companies.

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