[Congressional Record Volume 158, Number 166 (Friday, December 21, 2012)]
[Senate]
[Pages S8378-S8379]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
GOVERNMENT ACCOUNTABILITY OFFICE EXAMINATION OF CERTAIN TRANSACTIONS
Mr. REID. Mr. President, I ask unanimous consent that the Senate now
proceed to the consideration of S. 3709, which was reported earlier
today.
The PRESIDING OFFICER. The clerk will report the bill by title.
The legislative clerk read as follows:
A bill (S. 3709) to require a Government Accountability
Office examination of transactions between large financial
institutions and the Federal Government, and for other
purposes.
There being no objection, the Senate proceeded to consider the bill.
Mr. REID. Mr. President, I ask unanimous consent that the Vitter-
Brown of Ohio amendment, which is at the desk, be agreed to, and the
bill, as amended, be read a third time and passed, the motion to
reconsider be laid upon the table, and all statements relating to the
bill be printed in the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment (No. 3434) was agreed to, as follows:
(Purpose: In the nature of a substitute)
Strike all after the enacting clause and insert the
following:
SECTION 1. GOVERNMENT ACCOUNTABILITY OFFICE STUDY OF
TRANSACTIONS BETWEEN LARGE FINANCIAL COMPANIES
AND THE FEDERAL GOVERNMENT.
(a) Definitions.--For purposes of this Act--
(1) the term ``covered institution'' means any bank holding
company having more than $500,000,000,000 in consolidated
assets; and
(2) the term ``economic benefit'' means the difference
between actual loans terms offered, debt or equity prices, or
asset values and a reasonable estimate of what such terms,
prices, or values might have been, as determined by examining
actual values of comparable transaction in the private
markets or by estimating the values of comparable
transactions priced to properly reflect associated risk.
(b) GAO Study.--The Comptroller General of the United
States (in this section referred to as the ``Comptroller'')
shall conduct a study of covered institutions, such as--
(1) the favorable pricing of the debt of such institutions,
relative to their risk profile resulting from the perception
that such institutions will receive Government support in the
event of any financial stress;
(2) any favorable funding or economic treatment resulting
from an increase in the credit rating for covered
institutions, as a result of express, implied, or perceived
Government support;
(3) any economic benefit to covered institutions resulting
from the ownership of, or affiliation with, an insured
depository institution;
(4) any economic benefit resulting from the status of
covered institutions as a bank holding company, including
access to Federal deposit insurance and the discount window
of the Board of Governors of the Federal Reserve System
before the date of enactment of this Act;
(5) any economic benefit received through extraordinary
Government actions taken, such as--
(A) actions by the Department of the Treasury--
[[Page S8379]]
(i) under the Emergency Economic Stabilization Act, such
as--
(I) asset purchases by the United States Government;
(II) capital injections from the United States Government;
or
(III) housing programs; or
(ii) by the purchase of the mortgage backed securities of
the Federal National Mortgage Association and the Federal
Home Loan Mortgage Corporation (in this Act referred to as
``government-sponsored enterprises''), in order to lower
interest rates, and the value of such securities in the
absence of such purchases;
(B) actions by the Board of Governors of the Federal
Reserve System prior to the date of enactment of this Act,
such as--
(i) providing loans to financial institutions through the
Term Auction Facility; and
(ii) assistance through programs under section 13(3) of the
Federal Reserve Act prior to the date of enactment of this
Act, such as--
(I) lending through the Commercial Paper Funding Facility;
(II) securities lending to primary dealers through the
Primary Dealer Credit Facility and the Term Securities
Lending Facility;
(III) lending to institutions through the Term Asset-Backed
Securities Loan Facility; or
(IV) purchasing assets through the Maiden Lane facility;
and
(C) actions by the Federal Deposit Insurance Corporation,
such as--
(i) guaranteeing debt or deposits through the Temporary
Liquidity Guarantee Program; or
(ii) pricing of assessments related to any such guarantees;
and
(6) any extraordinary assistance provided to American
Insurance Group, but ultimately received by one of the
covered institutions; and
(7) any Government actions that resulted in the payment or
nonpayment of credit default swap contracts entered into by a
covered institution.
SEC. 2. REPORT TO CONGRESS.
Not later than 1 year after the date of enactment of this
Act, the Comptroller shall submit a report to Congress
detailing the findings of the Comptroller in the study
conducted under this Act. Such report shall be made
electronically available to the public, except that any
proprietary, sensitive, or confidential information shall be
redacted in any release to the public.
SEC. 3. RULE OF CONSTRUCTION.
Nothing in this Act may be construed to provide authority
inconsistent with, or to otherwise affect, section 714 of
title 31 United States Code.
The bill (S. 3709), as amended, was ordered to be engrossed for a
third reading, was read the third time, and passed.
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