[Congressional Record (Bound Edition), Volume 155 (2009), Part 23]
[House]
[Pages 31377-31421]
[From the U.S. Government Publishing Office, www.gpo.gov]




         WALL STREET REFORM AND CONSUMER PROTECTION ACT OF 2009

  The Committee resumed its sitting.


                    Announcement by the Acting Chair

  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, proceedings 
will now resume on those amendments printed in House Report 111-370 on 
which further proceedings were postponed, in the following order:
  Amendment No. 12 by Mr. Kanjorski of Pennsylvania.
  Amendment No. 14 by Mr. McCarthy of California.
  Amendment No. 16 by Mr. Peters of Michigan.
  The Chair will reduce to 5 minutes the time for any electronic vote 
after the first vote in this series.


               Amendment No. 12 Offered by Mr. Kanjorski

  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from 
Pennsylvania (Mr. Kanjorski) on which further proceedings were 
postponed and on which the ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The text of the amendment is as follows:

       Amendment No. 12 offered by Mr. Kanjorski:
       Page 11, in the item relating to section 7606, strike 
     ``Exemption for Nonaccelerated Filers'' and insert ``Study on 
     methods to reduce the burden of compliance on small 
     companies''.
       Page 1221, line 19, strike ``EXEMPTION FOR NONACCELERATED 
     FILERS'' and insert ``STUDY ON METHODS TO REDUCE THE BURDEN 
     OF COMPLIANCE ON SMALL COMPANIES''.
       Page 1221, strike lines 20 through 25.
       Page 1222. strike lines 1 through 2.
       Page 1222, on line 3, strike ``(b)
     STUDY.--'' and adjust the indentation appropriately.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 153, 
noes 271, not voting 16, as follows:

                             [Roll No. 960]

                               AYES--153

     Abercrombie
     Ackerman
     Andrews
     Becerra
     Berkley
     Berman
     Bishop (NY)
     Blumenauer
     Boswell
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Carson (IN)
     Castor (FL)
     Christensen
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Conaway
     Conyers
     Courtney
     Crowley
     Cummings
     Dahlkemper
     Davis (CA)
     Davis (IL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dingell
     Doggett
     Doyle
     Edwards (MD)
     Ellison
     Engel
     Eshoo
     Farr
     Fattah
     Frank (MA)
     Fudge
     Garamendi
     Giffords
     Gonzalez
     Grayson
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hare
     Harman
     Hastings (FL)
     Higgins
     Himes
     Hinchey
     Hirono
     Hodes
     Holt
     Hoyer
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson (GA)
     Johnson, E. B.
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick (MI)
     Kilroy
     Klein (FL)
     Kratovil
     Kucinich
     Langevin
     Larson (CT)
     Lee (CA)
     Levin
     Lewis (GA)
     Lipinski
     Loebsack
     Lowey
     Lynch
     Maloney
     Markey (MA)
     Massa
     Matsui
     McDermott
     McGovern
     Meek (FL)
     Michaud
     Miller (NC)
     Miller, George
     Moore (KS)
     Moore (WI)
     Murphy (CT)
     Murphy, Patrick
     Nadler (NY)
     Napolitano
     Norton
     Oberstar
     Obey
     Olver
     Pallone
     Pascrell
     Pastor (AZ)
     Payne
     Perlmutter
     Pingree (ME)
     Price (NC)
     Rahall
     Rangel
     Reyes
     Rodriguez
     Rothman (NJ)
     Roybal-Allard
     Sanchez, Linda T.
     Sarbanes
     Schakowsky
     Schiff
     Scott (GA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Sires
     Speier
     Stark
     Sutton
     Taylor
     Thompson (CA)
     Thompson (MS)
     Tierney
     Tonko
     Towns
     Tsongas
     Van Hollen
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Wilson (OH)
     Woolsey
     Wu
     Yarmuth

                               NOES--271

     Adler (NJ)
     Akin
     Alexander
     Altmire
     Arcuri
     Austria
     Baca
     Bachus
     Baird
     Barrow
     Bartlett
     Barton (TX)
     Bean
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (UT)
     Blackburn
     Blunt
     Boccieri
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boren
     Boucher
     Boustany
     Boyd
     Brady (TX)
     Bright
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Cardoza
     Carnahan
     Carney
     Carter
     Cassidy
     Castle
     Chaffetz
     Chandler
     Childers
     Coble
     Coffman (CO)
     Cole
     Connolly (VA)
     Cooper
     Costa
     Costello
     Crenshaw
     Cuellar
     Culberson
     Davis (AL)
     Davis (KY)
     Davis (TN)
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Donnelly (IN)
     Dreier
     Driehaus
     Duncan
     Edwards (TX)
     Ehlers
     Ellsworth
     Emerson
     Etheridge
     Fallin
     Flake
     Fleming
     Forbes
     Fortenberry
     Foster
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gingrey (GA)
     Gohmert
     Goodlatte
     Gordon (TN)
     Granger
     Graves
     Griffith
     Guthrie
     Hall (NY)
     Hall (TX)
     Halvorson
     Harper
     Hastings (WA)
     Heinrich
     Heller
     Hensarling
     Herger
     Herseth Sandlin
     Hill
     Hinojosa
     Hoekstra
     Holden
     Honda
     Hunter
     Inglis
     Inslee
     Issa
     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jones
     Jordan (OH)
     Kagen
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kirkpatrick (AZ)
     Kissell
     Kline (MN)
     Kosmas
     Lamborn
     Lance
     Larsen (WA)
     Latham
     LaTourette
     Latta
     Lee (NY)
     Lewis (CA)
     Linder
     LoBiondo
     Lucas
     Luetkemeyer
     Lujan
     Lummis
     Lungren, Daniel E.
     Mack
     Maffei
     Manzullo
     Marchant
     Markey (CO)
     Marshall
     Matheson
     McCarthy (CA)
     McCarthy (NY)
     McCaul
     McClintock
     McCollum
     McCotter
     McHenry
     McIntyre
     McKeon
     McMahon
     McMorris Rodgers
     McNerney
     Meeks (NY)
     Melancon
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Minnick
     Mitchell
     Mollohan
     Moran (KS)
     Murphy (NY)
     Murphy, Tim
     Myrick
     Neal (MA)
     Neugebauer
     Nunes
     Nye
     Olson
     Ortiz
     Owens
     Paul
     Paulsen
     Pence
     Perriello
     Peters
     Peterson
     Petri
     Pitts
     Platts
     Poe (TX)
     Polis (CO)
     Pomeroy
     Posey
     Price (GA)
     Putnam
     Quigley
     Rehberg
     Reichert
     Richardson
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Ross
     Royce
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Sablan
     Salazar
     Sanchez, Loretta
     Scalise
     Schauer
     Schmidt
     Schock
     Schrader
     Schwartz
     Scott (VA)
     Sensenbrenner
     Shadegg
     Shimkus
     Shuler
     Shuster
     Simpson
     Skelton
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Souder
     Space
     Spratt
     Stearns
     Stupak
     Sullivan
     Tanner
     Teague
     Terry
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Titus
     Turner
     Upton
     Velazquez
     Visclosky
     Walden
     Walz
     Wamp
     Westmoreland
     Whitfield
     Wilson (SC)
     Wittman
     Wolf
     Young (FL)

                             NOT VOTING--16

     Aderholt
     Bachmann
     Baldwin
     Barrett (SC)
     Bordallo
     Faleomavaega
     Filner
     Lofgren, Zoe
     Moran (VA)
     Murtha
     Pierluisi
     Radanovich
     Sessions
     Slaughter
     Wexler
     Young (AK)

                              {time}  1114

  Mr. OWENS, Ms. LORETTA T. SANCHEZ of California, Messrs. DICKS, 
KAGEN, NEAL of Massachusetts, Ms. RICHARDSON, Messrs. HINOJOSA,

[[Page 31378]]

MEEKS of New York, BACA, INSLEE, and HONDA changed their vote from 
``aye'' to ``no.''
  Messrs. KRATOVIL, RANGEL, LARSON of Connecticut, and BERMAN changed 
their vote from ``no'' to ``aye.''
  So the amendment was rejected.
  The result of the vote was announced as above recorded.


                          PERSONAL EXPLANATION

  Mr. FILNER. Madam Speaker, on rollcall 960, I was away from the 
Capitol. Had I been present, I would have voted ``aye.''


         Amendment No. 14 Offered by Mr. McCarthy of California

  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from California 
(Mr. McCarthy) on which further proceedings were postponed and on which 
the noes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The text of the amendment is as follows:

       Amendment No. 14 offered by Mr. McCarthy:
       The text of the amendment is as follows:
       Amendment No. 14 offered by Mr. McCarthy of California.
       Strike section 6012 (relating to ``Effect of Rule 
     436(G)'').


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The Acting CHAIR. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 166, 
noes 259, not voting 15, as follows:

                              Roll No. 961

                               AYES--166

     Aderholt
     Akin
     Alexander
     Austria
     Bachmann
     Bachus
     Bartlett
     Barton (TX)
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boustany
     Brady (TX)
     Broun (GA)
     Brown (SC)
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Carter
     Cassidy
     Castle
     Chaffetz
     Coble
     Coffman (CO)
     Cohen
     Cole
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Deal (GA)
     Dent
     Dreier
     Duncan
     Ehlers
     Emerson
     Fallin
     Flake
     Fleming
     Forbes
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gingrey (GA)
     Goodlatte
     Granger
     Graves
     Guthrie
     Hall (TX)
     Harper
     Hastings (WA)
     Heller
     Hensarling
     Herger
     Hoekstra
     Hunter
     Inglis
     Issa
     Jenkins
     Johnson, Sam
     Jordan (OH)
     King (IA)
     King (NY)
     Kingston
     Kline (MN)
     Lamborn
     Lance
     Latham
     LaTourette
     Latta
     Lee (NY)
     Lewis (CA)
     Linder
     LoBiondo
     Lucas
     Luetkemeyer
     Lummis
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     McCarthy (CA)
     McCaul
     McClintock
     McCotter
     McHenry
     McKeon
     McMahon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Moran (KS)
     Murphy, Tim
     Myrick
     Neugebauer
     Nunes
     Olson
     Paul
     Paulsen
     Pence
     Petri
     Pitts
     Platts
     Poe (TX)
     Posey
     Price (GA)
     Putnam
     Rehberg
     Reichert
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Royce
     Ryan (WI)
     Scalise
     Schmidt
     Schock
     Sensenbrenner
     Shadegg
     Shimkus
     Shuler
     Shuster
     Simpson
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Speier
     Sullivan
     Terry
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Walden
     Wamp
     Westmoreland
     Whitfield
     Wilson (SC)
     Wittman
     Wolf

                               NOES--259

     Abercrombie
     Ackerman
     Adler (NJ)
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Barrow
     Bean
     Becerra
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boccieri
     Boren
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Braley (IA)
     Bright
     Brown, Corrine
     Brown-Waite, Ginny
     Butterfield
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Castor (FL)
     Chandler
     Childers
     Christensen
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Connolly (VA)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Crowley
     Cuellar
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis (TN)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Donnelly (IN)
     Doyle
     Driehaus
     Edwards (MD)
     Edwards (TX)
     Ellison
     Ellsworth
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Fortenberry
     Foster
     Frank (MA)
     Fudge
     Garamendi
     Giffords
     Gohmert
     Gonzalez
     Gordon (TN)
     Grayson
     Green, Al
     Green, Gene
     Griffith
     Grijalva
     Gutierrez
     Hall (NY)
     Halvorson
     Hare
     Harman
     Hastings (FL)
     Heinrich
     Herseth Sandlin
     Hill
     Himes
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson (GA)
     Johnson (IL)
     Johnson, E. B.
     Jones
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick (MI)
     Kilroy
     Kind
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kosmas
     Kratovil
     Kucinich
     Langevin
     Larsen (WA)
     Larson (CT)
     Lee (CA)
     Levin
     Lewis (GA)
     Lipinski
     Loebsack
     Lowey
     Lujan
     Lynch
     Maffei
     Maloney
     Markey (CO)
     Markey (MA)
     Marshall
     Massa
     Matheson
     Matsui
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McIntyre
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Minnick
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Nadler (NY)
     Napolitano
     Neal (MA)
     Norton
     Nye
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Payne
     Perlmutter
     Perriello
     Peters
     Peterson
     Pingree (ME)
     Polis (CO)
     Pomeroy
     Price (NC)
     Quigley
     Rahall
     Rangel
     Reyes
     Richardson
     Rodriguez
     Ross
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sablan
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Sires
     Skelton
     Smith (WA)
     Snyder
     Souder
     Space
     Spratt
     Stark
     Stearns
     Stupak
     Sutton
     Tanner
     Taylor
     Teague
     Thompson (CA)
     Thompson (MS)
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Van Hollen
     Velazquez
     Visclosky
     Walz
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Wilson (OH)
     Woolsey
     Wu
     Yarmuth
     Young (FL)

                             NOT VOTING--15

     Baldwin
     Barrett (SC)
     Bordallo
     Faleomavaega
     Higgins
     Kirk
     Lofgren, Zoe
     Moran (VA)
     Murtha
     Pierluisi
     Radanovich
     Sessions
     Slaughter
     Wexler
     Young (AK)


                    Announcement by the Acting Chair

  The Acting CHAIR (during the vote). There are 2 minutes remaining on 
this vote.

                              {time}  1121

  Mr. LARSON of Connecticut changed his vote from ``aye'' to ``no.''
  So the amendment was rejected.
  The result of the vote was announced as above recorded.
  Stated against:
  Mr. KIRK. Madam Chair, on rollcall No. 961 I was unavoidably 
detained. Had I been present, I would have voted ``no.''
  Ms. SPEIER. Madam Chair, during rollcall vote No. 961 on H.R. 4173, I 
mistakenly recorded my vote as ``aye'' when I should have voted ``no.''


                 Amendment No. 16 Offered by Mr. Peters

  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from Michigan 
(Mr. Peters) on which further proceedings were postponed and on which 
the ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The Acting CHAIR. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 228, 
noes 198, not voting 14, as follows:

                             [Roll No. 962]

                               AYES--228

     Abercrombie
     Ackerman
     Adler (NJ)
     Altmire
     Andrews
     Baca
     Baird
     Bean
     Becerra
     Berkley
     Berman
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boccieri
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Braley (IA)
     Bright
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Carnahan
     Carney
     Carson (IN)
     Castor (FL)
     Chandler
     Childers
     Christensen
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Connolly (VA)
     Conyers
     Costello
     Courtney
     Crowley
     Cuellar
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (CA)
     Davis (IL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Donnelly (IN)
     Doyle
     Driehaus
     Edwards (MD)

[[Page 31379]]


     Edwards (TX)
     Ellison
     Ellsworth
     Engel
     Eshoo
     Farr
     Fattah
     Filner
     Foster
     Frank (MA)
     Fudge
     Garamendi
     Giffords
     Gonzalez
     Grayson
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Halvorson
     Hare
     Harman
     Hastings (FL)
     Heinrich
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson (GA)
     Johnson, E.B.
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick (MI)
     Kilroy
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kosmas
     Kucinich
     Langevin
     Larsen (WA)
     Larson (CT)
     Lee (CA)
     Levin
     Lewis (GA)
     Lipinski
     Loebsack
     Lowey
     Lujan
     Lynch
     Maloney
     Markey (CO)
     Markey (MA)
     Marshall
     Massa
     Matheson
     Matsui
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McIntyre
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Minnick
     Mitchell
     Mollohan
     Moore (KS)
     Murphy (CT)
     Murphy, Patrick
     Nadler (NY)
     Napolitano
     Neal (MA)
     Norton
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Payne
     Perlmutter
     Perriello
     Peters
     Pingree (ME)
     Pomeroy
     Price (NC)
     Quigley
     Rahall
     Rangel
     Reyes
     Richardson
     Rodriguez
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sablan
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Snyder
     Space
     Speier
     Stark
     Stupak
     Sutton
     Tanner
     Teague
     Thompson (CA)
     Thompson (MS)
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Van Hollen
     Velazquez
     Walz
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Wilson (OH)
     Woolsey
     Wu
     Yarmuth

                               NOES--198

     Aderholt
     Akin
     Alexander
     Arcuri
     Austria
     Bachmann
     Bachus
     Barrow
     Bartlett
     Barton (TX)
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boren
     Boustany
     Brady (TX)
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Cardoza
     Carter
     Cassidy
     Castle
     Chaffetz
     Coble
     Coffman (CO)
     Cole
     Conaway
     Cooper
     Costa
     Crenshaw
     Culberson
     Davis (KY)
     Davis (TN)
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dreier
     Duncan
     Ehlers
     Emerson
     Etheridge
     Fallin
     Flake
     Fleming
     Forbes
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gingrey (GA)
     Gohmert
     Goodlatte
     Gordon (TN)
     Granger
     Graves
     Griffith
     Guthrie
     Hall (TX)
     Harper
     Hastings (WA)
     Heller
     Hensarling
     Herger
     Hoekstra
     Hunter
     Inglis
     Issa
     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jones
     Jordan (OH)
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline (MN)
     Kratovil
     Lamborn
     Lance
     Latham
     LaTourette
     Latta
     Lee (NY)
     Lewis (CA)
     Linder
     LoBiondo
     Lucas
     Luetkemeyer
     Lummis
     Lungren, Daniel E.
     Mack
     Maffei
     Manzullo
     Marchant
     McCarthy (CA)
     McCaul
     McClintock
     McCotter
     McHenry
     McKeon
     McMahon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Moore (WI)
     Moran (KS)
     Murphy (NY)
     Murphy, Tim
     Myrick
     Neugebauer
     Nunes
     Nye
     Olson
     Paul
     Paulsen
     Pence
     Peterson
     Petri
     Pitts
     Platts
     Poe (TX)
     Polis (CO)
     Posey
     Price (GA)
     Putnam
     Rehberg
     Reichert
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Ross
     Royce
     Ryan (WI)
     Scalise
     Schmidt
     Schock
     Sensenbrenner
     Shadegg
     Shimkus
     Shuster
     Simpson
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Souder
     Spratt
     Stearns
     Sullivan
     Taylor
     Terry
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Visclosky
     Walden
     Wamp
     Westmoreland
     Whitfield
     Wilson (SC)
     Wittman
     Wolf
     Young (FL)

                             NOT VOTING--14

     Baldwin
     Barrett (SC)
     Bordallo
     Faleomavaega
     Green, Al
     Lofgren, Zoe
     Moran (VA)
     Murtha
     Pierluisi
     Radanovich
     Sessions
     Slaughter
     Wexler
     Young (AK)


                    announcement by the acting chair

  The Acting CHAIR (during the vote). There are 2 minutes remaining on 
this vote.

                              {time}  1129

  So the amendment was agreed to.
  The result of the vote was announced as above recorded.


                Amendment No. 35 Offered by Mr. Minnick

  The Acting CHAIR. It is now in order to consider amendment No. 35 
printed in House Report 111-370.
  Mr. MINNICK. I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 35 offered by Mr. Minnick:
       Strike title IV and insert the following:

              TITLE IV--CONSUMER FINANCIAL PROTECTION ACT

     SECTION 4001. SHORT TITLE.

       This title may be cited as the ``Consumer Financial 
     Protection Act of 2009''.

     SEC. 4002. CONSUMER FINANCIAL PROTECTION COUNCIL.

       (a) Establishment.--There is hereby established the 
     Consumer Financial Protection Council (hereinafter in this 
     title referred to as the ``Council'') as an independent 
     establishment of the executive branch, which shall consist 
     of--
       (1) the Chairman of the Board of Governors of the Federal 
     Reserve System;
       (2) the Comptroller of the Currency;
       (3) the Chairperson of the Board of Directors of the 
     Federal Deposit Insurance Corporation;
       (4) the Director of the Office of Thrift Supervision;
       (5) the Administrator of the National Credit Union 
     Administration;
       (6) the Secretary of the Department of Housing and Urban 
     Development;
       (7) the Secretary of the Treasury;
       (8) the Chairman of the Securities and Exchange Commission;
       (9) the Chairman of the Commodities Futures Trading 
     Commission;
       (10) the Chairman of the Federal Trade Commission; and
       (11) one individual selected by the State Advisory 
     Committee established under section 4005.
       (b) Staffing.--The Secretary of the Treasury shall provide 
     appropriate staffing for the Council.

     SEC. 4003. CONSUMER FINANCIAL PROTECTION SUBCOMMITTEE.

       (a) Establishment.--There is hereby established within the 
     Council the Consumer Financial Protection Subcommittee 
     (hereinafter in this title referred to as the ``CFPS''), 
     which shall consist of the members of the Council.
       (b) Purpose.--The purpose of the CFPS is to ensure that all 
     providers of a financial product or service to consumers are 
     subject to meaningful and uniform consumer protection 
     requirements, and that functionally equivalent products are 
     subject to equivalent consumer protection standards.
       (c) Chairmanship.--
       (1) Initial chairman.--The Chairman of the Federal Trade 
     Commission shall serve as the Chairman of the CFPS for the 2-
     year period beginning on the date of the enactment of this 
     title.
       (2) Subsequent selection.--After the 2-year period 
     described under paragraph (1), the President shall appoint 
     the Chairman of the CFPS from among the members of the CFPS. 
     The term of the Chairmanship shall be 2 years.
       (d) Voting.--Decisions of the CFPS shall be made by a 
     majority vote of the members of the CFPS.
       (e) Duties.--The CFPS shall review existing consumer 
     protection regulations and issue new or revised regulations 
     where needed to prevent unfair or deceptive practices.
       (f) Procedures for Proposing and Issuing Regulations.--
       (1) Proposal.--Any member of the CFPS may propose that the 
     CFPS consider the need for the modification of an existing 
     regulation or for the issuing of a new regulation with 
     respect to a particular consumer financial product or 
     service. After such proposal is made, the CFPS shall develop 
     an analysis of the proposal and prepare a report that 
     either--
       (A) recommends that no action be taken; or
       (B) recommends the modification of existing regulations or 
     the issuing of new regulations.
       (2) Publication.--With respect to a report prepared under 
     paragraph (1)--
       (A) if the CFPS recommends that no action be taken, the 
     CFPS shall make a copy of the report publicly available; and
       (B) if the CFPS recommends the modification of existing 
     regulations or the issuing of new regulations, the CFPS shall 
     publish such report in the Federal Register and solicit 
     public comments on such recommendation, pursuant to the 
     Administrative Procedure Act.
       (3) Modification or acceptance.--With respect to each 
     recommendation described under paragraph (2)(B) for the 
     modification of existing regulations or the issuing of new 
     regulations, after the CFPS has considered the public 
     comments on such recommendation, the CFPS shall vote on 
     whether such recommendations should be withdrawn, modified, 
     or published as a final regulation.
       (4) Regulations issued by cfps control.--Notwithstanding 
     any other provision of law,

[[Page 31380]]

     to the extent that any other regulation conflicts with a 
     regulation issued by the CFPS under this subsection, such 
     other regulation shall have no force or effect to the extent 
     of such conflict.
       (5) Proposals by state advisory committee.--
       (A) In general.--Any proposal made under paragraph (1) by 
     the member of the CFPS selected by the State Advisory 
     Committee shall be accompanied by a certification from such 
     member stating that more than half of the States support such 
     proposal.
       (B) Method of determination.--For purposes of this 
     paragraph, the State Advisory Committee shall determine the 
     method for determining if a State supports a proposal.
       (6) Report on approval or opposition.--Each member of the 
     CFPS shall issue an annual report to the Congress containing 
     a detailed explanation, for each proposal made under 
     paragraph (1), why such member supported or opposed such 
     proposal.
       (7) Procedures to be applied to all rulemakings.--The 
     procedures under this subsection shall be used by the CFPS 
     when issuing any regulation under the authority of this 
     title.
       (g) Consumer Financial Products or Services Expressly 
     Permitted by State or Federal Law.--
       (1) Voting requirements.--Any votes taken by the CFPS to 
     prevent the offering of any consumer financial product or 
     service that is expressly permitted by State or Federal law 
     shall only be agreed to by a two-thirds vote.
       (2) Recommendations to the congress.--If the CFPS 
     determines a need to prevent the offering of any consumer 
     financial product or service expressly permitted by State or 
     Federal law, the CFPS shall issue a report to the Congress 
     containing such determination and including--
       (A) a description of the specific financial product or 
     service that the CFPS is recommending the Congress should 
     prevent from being offered;
       (B) an estimate of the amount of credit provided by and the 
     number of consumers using any such financial product or 
     service;
       (C) a list of any States which have expressly permitted any 
     such financial product or service;
       (D) the identities of persons known by the CFPS to be 
     offering any such financial product or service;
       (E) an analysis of whether there are ample other 
     alternative reasonably priced financial products or services 
     available to meet consumers' credit needs, and a description 
     of such alternative financial products or services; and
       (F) the basis and reasoning on which the CFPS has based its 
     recommendation.
       (3) Definition.--For purposes of this subsection, the term 
     ``prevent the offering of any consumer financial product or 
     service'' shall mean taking any action that could reasonably 
     result in the direct or indirect prohibition of, or 
     materially interfere with the ability of any person to offer, 
     any consumer financial product or service.

     SEC. 4004. FINANCIAL INSTITUTIONS EXAMINATION COUNCIL.

       Section 1004(a) of the Federal Financial Institutions 
     Examination Council Act of 1978 (12 U.S.C. 3303(a)) is 
     amended by inserting after ``established'' the following: 
     ``as a subcommittee within the Consumer Financial Protection 
     Council''.

     SEC. 4005. STATE ADVISORY COMMITTEE.

       There is hereby established within the Council the State 
     Advisory Committee, which shall consist of one representative 
     from each of the following:
       (1) The Conference of State Bank Supervisors.
       (2) The American Council of State Savings Supervisors.
       (3) The National Association of State Credit Union 
     Supervisors.

     SEC. 4006. EQUALITY OF CONSUMER PROTECTION ENFORCEMENT 
                   RESPONSIBILITIES.

       With respect to each consumer protection agency, the 
     enforcement of the provisions of the consumer protection laws 
     under such agency's jurisdiction shall be of equal importance 
     to such agency as the enforcement of the provisions of other 
     laws under such agency's jurisdiction.

     SEC. 4007. DIRECTOR OF THE CONSUMER FINANCIAL PROTECTION 
                   DIVISION.

       (a) Establishment.--There is hereby established within each 
     consumer protection agency a position of Director of the 
     Consumer Financial Protection Division.
       (b) Compensation.--With respect to a consumer protection 
     agency, the Director of the Consumer Financial Protection 
     Division shall be compensated in an amount no less than the 
     amount of compensation provided to the head of other 
     subdivisions of such agency of a comparable size.
       (c) Direct Reporting.--Each Director of the Consumer 
     Financial Protection Division established under subsection 
     (a) shall report directly to the head of the agency within 
     which such Director is located.
       (d) Annual Report to the Congress.--Each consumer 
     protection agency shall issue an annual report to the 
     Congress detailing the activities of the Director of the 
     Consumer Financial Protection Division and how such 
     activities advanced the agency's consumer protection 
     functions.

     SEC. 4008. PROHIBITING UNFAIR OR DECEPTIVE ACTS OR PRACTICES.

       (a) In General.--Each consumer protection agency may 
     prevent a person from committing or engaging in an unfair or 
     deceptive act or practice in connection with any transaction 
     with a consumer for a consumer financial product or service 
     under such agency's jurisdiction.
       (b) Rulemaking.--Each consumer protection agency may 
     prescribe regulations identifying as unlawful, unfair, or 
     deceptive acts or practices in connection with any 
     transaction with a consumer for a consumer financial product 
     or service under such agency's jurisdiction.
       (c) Referral to CFPS.--With respect to each regulation 
     issued pursuant to subsection (b), the consumer protection 
     agency issuing such regulation shall propose such regulation 
     to the CFPS under section 4003(f), unless the CFPS already 
     has a substantially similar proposal under consideration.
       (d) Unfairness.--
       (1) In general.--A consumer protection agency shall have no 
     authority under this section to declare an act or practice in 
     connection with a transaction with a consumer for a consumer 
     financial product or service to be unlawful on the grounds 
     that such act or practice is unfair unless such agency has a 
     reasonable basis to conclude that the act or practice causes 
     or is likely to cause substantial injury to consumers which 
     is not reasonably avoidable by consumers and such substantial 
     injury is not outweighed by countervailing benefits to 
     consumers or to competition.
       (2) Existing published guidelines as factor.--In 
     determining whether an act or practice is unfair, a consumer 
     protection agency shall consider established public policies 
     and regulations, interpretations, guidance, and staff 
     commentaries issued by the consumer protection agencies under 
     the consumer protection laws they enforce.
       (e) Definitions.--For purposes of this section, the terms 
     ``unfair'' and ``deceptive'' shall have the meanings given 
     such terms under the Federal Trade Commission Act (15 U.S.C. 
     41 et seq.).

     SEC. 4009. ADOPTING OPERATIONAL STANDARDS TO DETER UNFAIR OR 
                   DECEPTIVE PRACTICES.

       (a) Authority To Prescribe Standards.--The consumer 
     protection agencies shall prescribe standards applicable to 
     covered persons to deter and detect unfair or deceptive acts 
     or practices in the provision of consumer financial products 
     or services under such agency's jurisdiction, including 
     standards for--
       (1) background checks for principals, officers, directors, 
     or key personnel of the covered person;
       (2) registration, licensing, or certification;
       (3) bond or other appropriate financial requirements to 
     provide reasonable assurance of the ability of the covered 
     person to perform its obligations to consumers;
       (4) creating and maintaining records of transactions or 
     accounts; and
       (5) procedures and operations of the covered person 
     relating to the provision of, or maintenance of accounts for, 
     consumer financial products or services.
       (b) CFPS Authority to Issue Regulations.--The CFPS may 
     issue regulations establishing minimum standards under this 
     section for any class of covered persons.
       (c) Exception for Enforcement of Gramm-Leach-Bliley Privacy 
     Laws Against Insurers.--Neither the consumer protection 
     agencies nor the CFPS shall have authority to issue or 
     enforce regulations with respect to authorities that are 
     granted to State insurance regulators under section 505(a)(6) 
     of the Gramm-Leach-Bliley Act.

     SEC. 4010. PRESUMPTION OF ABILITY TO REPAY.

       (a) Prohibition on Residential Mortgage Loans That Won't 
     Reasonably Be Repaid.--
       (1) In general.--No creditor shall make a residential 
     mortgage loan unless it has a reasonable basis for 
     determining that the consumer can repay the loan.
       (2) Basis for determination.--A determination under this 
     subsection of a consumer's ability to repay a residential 
     mortgage loan shall include consideration of the consumer's 
     credit history, current income, expected income the consumer 
     is reasonably assured of receiving, current obligations, 
     debt-to-income ratio, employment status, and other financial 
     resources other than the consumer's equity in the dwelling or 
     real property that secures repayment of the loan.
       (b) Exemption for Certain Model Terms and Conditions.--
     Subsection (a) shall not apply to residential mortgage loans 
     containing the model terms and conditions contained in 
     regulations issued by the Council under subsection (c).
       (c) Procedure for Adopting Model Terms and Conditions.--
       (1) In general.--Not later than 1 years after the date of 
     the enactment of this title, the Council shall issue 
     regulations containing model terms and conditions for 
     residential mortgage loans, for purposes of subsection (b).
       (2) Voting.--The Council may only issue a regulation under 
     paragraph (1)--
       (A) by a majority vote of the Council's members; and

[[Page 31381]]

       (B) in a vote where each member of the Council casts a 
     vote.
       (3) Revision of model terms and conditions.--The Council 
     shall update regulations issued under this subsection from 
     time to time as appropriate.
       (4) Rulemaking procedures.--In issuing any regulation under 
     this subsection, the Council shall, to the extent 
     practicable, follow the procedures set forth under section 
     4003(f) for the consideration of proposals by the CFPS.
       (d) Enforcement.--The prohibition under subsection (a) 
     shall be enforced by each member of the Council with 
     jurisdiction over the provision of residential mortgage 
     loans.

     SEC. 4011. EXAMINATIONS BY CONSUMER PROTECTION AGENCIES.

       (a) In General.--Each consumer protection agency shall 
     carry out regular examinations of covered persons regulated 
     by such agency.
       (b) Scope of Examinations.--Examinations carried out 
     pursuant to subsection (a) shall be comparable to those 
     examinations carried out by the Federal banking agencies of 
     insured depository institutions.

     SEC. 4012. CONSUMER RIGHTS TO ACCESS INFORMATION.

       (a) In General.--Subject to regulations prescribed by the 
     consumer protection agencies, a covered person shall make 
     available to a consumer, in an electronic form usable by the 
     consumer, information in the control or possession of the 
     covered person concerning the consumer financial product or 
     service that the consumer obtained from such covered person 
     including information relating to any transaction, series of 
     transactions, or to the account, including charges and usage 
     data.
       (b) Exceptions.--A covered person shall not be required by 
     this section to make available to the consumer--
       (1) any confidential commercial information, including an 
     algorithm used to derive credit scores or other risk scores 
     or predictors;
       (2) any information collected by the covered person for the 
     purpose of preventing fraud or money laundering, or 
     detecting, or making any report regarding other unlawful or 
     potentially unlawful conduct;
       (3) any information required to be kept confidential by any 
     other law; or
       (4) any information that the covered person cannot retrieve 
     in the ordinary course of its business with respect to that 
     information.
       (c) No Duty To Maintain Records.--No provision of this 
     section shall be construed as imposing any duty on a covered 
     person to maintain or keep any information about a consumer.
       (d) Standardized Formats for Data.--The consumer protection 
     agencies, by regulation, shall prescribe standards applicable 
     to covered persons to promote the development and use of 
     standardized formats for information, including through the 
     use of machine readable files, to be made available to 
     consumers under this section.

     SEC. 4013. PROHIBITED ACTS.

       It shall be unlawful for any person to--
       (1) advertise, market, offer, sell, enforce, or attempt to 
     enforce, any term, agreement, change in terms, fee or charge 
     in connection with a consumer financial product or service 
     that is not in conformity with this title and applicable 
     regulation prescribed or order issued by the consumer 
     protection agencies, the CFPS, or the Council;
       (2) fail or refuse to permit access to or copying of 
     records, or fail or refuse to establish or maintain records, 
     or fail or refuse to make reports or provide information to a 
     consumer protection agency, the CFPS, or the Council, as 
     required by this title, a consumer protection law or any 
     regulation prescribed or order issued by a consumer 
     protection agency, the CFPS, or the Council under this title 
     or pursuant to any such authority; or
       (3) knowingly or recklessly provide substantial assistance 
     to another person in violation of the provisions of section 
     4008, or any regulation prescribed or order issued under such 
     section, and any such person shall be deemed to be in 
     violation of that section to the same extent as the person to 
     whom such assistance is provided.

     SEC. 4014. STATE ATTORNEYS GENERAL RIGHT TO SUE.

       No provision of this title shall be construed to limit the 
     applicability or the effect of the decision of the Supreme 
     Court in Cuomo v. Clearing House Assn., L.L.C., 557 U.S. ___ 
     (2009).

     SEC. 4015. ENFORCEMENT.

       (a) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Civil investigative demand and demand.--The terms 
     ``civil investigative demand'' and ``demand'' mean any demand 
     issued by a consumer protection agency.
       (2) Consumer protection agency.--The term ``consumer 
     protection agency'' means--
       (A) the appropriate Federal banking agency (as such term is 
     defined in section 3(q) of the Federal Deposit Insurance 
     Act), with respect to entities regulated by the appropriate 
     Federal banking agencies;
       (B) the National Credit Union Administration, with respect 
     to a credit union;
       (C) the Securities and Exchange Commission, with respect to 
     an entity regulated by such Commission;
       (D) the Commodity Futures Trading Commission, with respect 
     to an entity regulated by such Commission; and
       (E) the Federal Trade Commission, with respect to any 
     entity not regulated by the appropriate Federal banking 
     agencies, the National Credit Union Administration, the 
     Securities and Exchange Commission, or the Commodity Futures 
     Trading Commission.
       (3) Consumer protection agency investigation.--The term 
     ``consumer protection agency investigation'' means any 
     inquiry conducted by a consumer protection agency 
     investigator for the purpose of ascertaining whether any 
     person is or has been engaged in any conduct that violates 
     this title, any consumer protection law, or any regulation 
     prescribed or order issued by the consumer protection 
     agencies, the CFPS, or the Council under this title.
       (4) Consumer protection agency investigator.--The term 
     ``consumer protection agency investigator'' means any 
     attorney or investigator employed by a consumer protection 
     agency who is charged with the duty of enforcing or carrying 
     into effect any provisions of this title, any consumer 
     protection law, or any regulation prescribed or order issued 
     under this title or pursuant to any such authority by the 
     consumer protection agency, the CFPS, or the Council.
       (5) Custodian.--The term ``custodian'' means the custodian 
     or any deputy custodian designated by a consumer protection 
     agency.
       (6) Documentary material.--The term ``documentary 
     material'' includes the original or any copy of any book, 
     record, report, memorandum, paper, communication, tabulation, 
     chart, or other document.
       (7) Violation.--The term ``violation'' means any act or 
     omission that, if proved, would constitute a violation of any 
     provision of this title, any consumer protection law, or of 
     any regulation prescribed or order issued by a consumer 
     protection agency, the CFPS, of the Council under this title 
     or pursuant to any such authority.
       (b) Investigations and Administrative Discovery.--
       (1) Subpoenas.--
       (A) In general.--A consumer protection agency or a consumer 
     protection agency investigator may issue subpoenas for the 
     attendance and testimony of witnesses and the production of 
     relevant papers, books, documents, or other material in 
     connection with hearings under this title.
       (B) Failure to obey.--In case of contumacy or refusal to 
     obey a subpoena issued pursuant to this paragraph and served 
     upon any person, the district court of the United States for 
     any district in which such person is found, resides, or 
     transacts business, upon application by a consumer protection 
     agency or a consumer protection agency investigator and after 
     notice to such person, shall have jurisdiction to issue an 
     order requiring such person to appear and give testimony or 
     to appear and produce documents or other material, or both.
       (C) Contempt.--Any failure to obey an order of the court 
     under this subsection may be punished by the court as a 
     contempt thereof.
       (2) Demands.--
       (A) In general.--Whenever a consumer protection agency has 
     reason to believe that any person may be in possession, 
     custody, or control of any documentary material or tangible 
     things, or may have any information, relevant to a violation, 
     a consumer protection agency may, before the institution of 
     any proceedings under this title or under any consumer 
     protection law, issue in writing, and cause to be served upon 
     such person, a civil investigative demand requiring such 
     person to--
       (i) produce such documentary material for inspection and 
     copying or reproduction;
       (ii) submit such tangible things;
       (iii) file written reports or answers to questions;
       (iv) give oral testimony concerning documentary material or 
     other information; or
       (v) furnish any combination of such material, answers, or 
     testimony.
       (B) Requirements.--Each civil investigative demand shall 
     state the nature of the conduct constituting the alleged 
     violation which is under investigation and the provision of 
     law applicable to such violation.
       (C) Production of documents.--Each civil investigative 
     demand for the production of documentary material shall--
       (i) describe each class of documentary material to be 
     produced under the demand with such definiteness and 
     certainty as to permit such material to be fairly identified;
       (ii) prescribe a return date or dates which will provide a 
     reasonable period of time within which the material so 
     demanded may be assembled and made available for inspection 
     and copying or reproduction; and
       (iii) identify the custodian to whom such material shall be 
     made available.
       (D) Production of things.--Each civil investigative demand 
     for the submission of tangible things shall--
       (i) describe each class of tangible things to be submitted 
     under the demand with such definiteness and certainty as to 
     permit such things to be fairly identified;
       (ii) prescribe a return date or dates which will provide a 
     reasonable period of time within which the things so demanded 
     may be assembled and submitted; and

[[Page 31382]]

       (iii) identify the custodian to whom such things shall be 
     submitted.
       (E) Demand for written reports or answers.--Each civil 
     investigative demand for written reports or answers to 
     questions shall--
       (i) propound with definiteness and certainty the reports to 
     be produced or the questions to be answered;
       (ii) prescribe a date or dates at which time written 
     reports or answers to questions shall be submitted; and
       (iii) identify the custodian to whom such reports or 
     answers shall be submitted.
       (F) Oral testimony.--Each civil investigative demand for 
     the giving of oral testimony shall--
       (i) prescribe a date, time, and place at which oral 
     testimony shall be commenced; and
       (ii) identify a consumer protection agency investigator who 
     shall conduct the investigation and the custodian to whom the 
     transcript of such investigation shall be submitted.
       (G) Service.--
       (i) Any civil investigative demand may be served by any 
     consumer protection agency investigator at any place within 
     the territorial jurisdiction of any court of the United 
     States.
       (ii) Any such demand or any enforcement petition filed 
     under this section may be served upon any person who is not 
     found within the territorial jurisdiction of any court of the 
     United States, in such manner as the Federal Rules of Civil 
     Procedure prescribe for service in a foreign nation.
       (iii) To the extent that the courts of the United States 
     have authority to assert jurisdiction over such person 
     consistent with due process, the United States District Court 
     for the District of Columbia shall have the same jurisdiction 
     to take any action respecting compliance with this section by 
     such person that such district court would have if such 
     person were personally within the jurisdiction of such 
     district court.
       (H) Method of service.--Service of any civil investigative 
     demand or any enforcement petition filed under this section 
     may be made upon a person, including any legal entity, by--
       (i) delivering a duly executed copy of such demand or 
     petition to the individual or to any partner, executive 
     officer, managing agent, or general agent of such person, or 
     to any agent of such person authorized by appointment or by 
     law to receive service of process on behalf of such person;
       (ii) delivering a duly executed copy of such demand or 
     petition to the principal office or place of business of the 
     person to be served; or
       (iii) depositing a duly executed copy in the United States 
     mails, by registered or certified mail, return receipt 
     requested, duly addressed to such person at its principal 
     office or place of business.
       (I) Proof of service.--
       (i) A verified return by the individual serving any civil 
     investigative demand or any enforcement petition filed under 
     this section setting forth the manner of such service shall 
     be proof of such service.
       (ii) In the case of service by registered or certified 
     mail, such return shall be accompanied by the return post 
     office receipt of delivery of such demand or enforcement 
     petition.
       (J) Production of documentary material.--The production of 
     documentary material in response to a civil investigative 
     demand shall be made under a sworn certificate, in such form 
     as the demand designates, by the person, if a natural person, 
     to whom the demand is directed or, if not a natural person, 
     by any person having knowledge of the facts and circumstances 
     relating to such production, to the effect that all of the 
     documentary material required by the demand and in the 
     possession, custody, or control of the person to whom the 
     demand is directed has been produced and made available to 
     the custodian.
       (K) Submission of tangible things.--The submission of 
     tangible things in response to a civil investigative demand 
     shall be made under a sworn certificate, in such form as the 
     demand designates, by the person to whom the demand is 
     directed or, if not a natural person, by any person having 
     knowledge of the facts and circumstances relating to such 
     production, to the effect that all of the tangible things 
     required by the demand and in the possession, custody, or 
     control of the person to whom the demand is directed have 
     been submitted to the custodian.
       (L) Separate answers.--Each reporting requirement or 
     question in a civil investigative demand shall be answered 
     separately and fully in writing under oath, unless it is 
     objected to, in which event the reasons for the objection 
     shall be stated in lieu of an answer, and it shall be 
     submitted under a sworn certificate, in such form as the 
     demand designates, by the person, if a natural person, to 
     whom the demand is directed or, if not a natural person, by 
     any person responsible for answering each reporting 
     requirement or question, to the effect that all information 
     required by the demand and in the possession, custody, 
     control, or knowledge of the person to whom the demand is 
     directed has been submitted.
       (M) Testimony.--
       (i) Procedure.--

       (I) Oath and recordation.--Any consumer protection agency 
     investigator before whom oral testimony is to be taken shall 
     put the witness on oath or affirmation and shall personally, 
     or by any individual acting under his direction and in his 
     presence, record the testimony of the witness.
       (II) Transcriptions.--The testimony shall be taken 
     stenographically and transcribed.
       (III) Copy to custodian.--After the testimony is fully 
     transcribed, the consumer protection agency investigator 
     before whom the testimony is taken shall promptly transmit a 
     copy of the transcript of the testimony to the custodian.

       (ii) Parties present.--Any consumer protection agency 
     investigator before whom oral testimony is to be taken shall 
     exclude from the place where the testimony is to be taken all 
     other persons except the person giving the testimony, his or 
     her attorney, the officer before whom the testimony is to be 
     taken, and any stenographer taking such testimony.
       (iii) Location.--The oral testimony of any person taken 
     pursuant to a civil investigative demand shall be taken in 
     the judicial district of the United States in which such 
     person resides, is found, or transacts business, or in such 
     other place as may be agreed upon by the consumer protection 
     agency investigator before whom the oral testimony of such 
     person is to be taken and such person.
       (iv) Attorney representation.--

       (I) In general.--Any person compelled to appear under a 
     civil investigative demand for oral testimony pursuant to 
     this section may be accompanied, represented, and advised by 
     an attorney.
       (II) Confidential advice.--The attorney may advise the 
     person summoned, in confidence, either upon the request of 
     such person or upon the initiative of the attorney, with 
     respect to any question asked of such person.
       (III) Objections.--The person summoned or the attorney may 
     object on the record to any question, in whole or in part, 
     and shall briefly state for the record the reason for the 
     objection.
       (IV) Refusal to answer.--An objection may properly be made, 
     received, and entered upon the record when it is claimed that 
     the person summoned is entitled to refuse to answer the 
     question on grounds of any constitutional or other legal 
     right or privilege, including the privilege against self-
     incrimination, but such person shall not otherwise object to 
     or refuse to answer any question, and shall not otherwise 
     interrupt the oral examination, directly or through such 
     person's attorney.
       (V) Petition for order.--If such person refuses to answer 
     any question, a consumer protection agency may petition the 
     district court of the United States pursuant to this section 
     for an order compelling such person to answer such question.
       (VI) Basis for compelling testimony.--If such person 
     refuses to answer any question on grounds of the privilege 
     against self-incrimination, the testimony of such person may 
     be compelled in accordance with the provisions of section 
     6004 of title 18, United States Code.

       (v) Transcripts.--

       (I) Right to examine.--After the testimony of any witness 
     is fully transcribed, the consumer protection agency 
     investigator shall afford the witness (who may be accompanied 
     by an attorney) a reasonable opportunity to examine the 
     transcript.
       (II) Reading the transcript.--The transcript shall be read 
     to or by the witness, unless such examination and reading are 
     waived by the witness.
       (III) Request for changes.--Any changes in form or 
     substance which the witness desires to make shall be entered 
     and identified upon the transcript by the consumer protection 
     agency investigator with a statement of the reasons given by 
     the witness for making such changes.
       (IV) Signature.--The transcript shall be signed by the 
     witness, unless the witness in writing waives the signing, is 
     ill, cannot be found, or refuses to sign.
       (V) Consumer protection agency action in lieu of 
     signature.--If the transcript is not signed by the witness 
     during the 30-day period following the date upon which the 
     witness is first afforded a reasonable opportunity to examine 
     it, the consumer protection agency investigator shall sign 
     the transcript and state on the record the fact of the 
     waiver, illness, absence of the witness, or the refusal to 
     sign, together with any reasons given for the failure to 
     sign.

       (vi) Certification by investigator.--The consumer 
     protection agency investigator shall certify on the 
     transcript that the witness was duly sworn by the 
     investigator and that the transcript is a true record of the 
     testimony given by the witness, and the consumer protection 
     agency investigator shall promptly deliver the transcript or 
     send it by registered or certified mail to the custodian.
       (vii) Copy of transcript.--The consumer protection agency 
     investigator shall furnish a copy of the transcript (upon 
     payment of reasonable charges for the transcript) to the 
     witness only, except that the consumer protection agency may 
     for good cause limit such witness to inspection of the 
     official transcript of his testimony.

[[Page 31383]]

       (viii) Witness fees.--Any witness appearing for the taking 
     of oral testimony pursuant to a civil investigative demand 
     shall be entitled to the same fees and mileage which are paid 
     to witnesses in the district courts of the United States.
       (3) Confidential treatment of demand material.--
       (A) In general.--Materials received as a result of a civil 
     investigative demand shall be subject to requirements and 
     procedures regarding confidentiality, in accordance with 
     regulations established by the consumer protection agency.
       (B) Disclosure to congress.--No regulation established by a 
     consumer protection agency regarding the confidentiality of 
     materials submitted to, or otherwise obtained by, the 
     consumer protection agency shall be intended to prevent 
     disclosure to either House of Congress or to an appropriate 
     committee of the Congress, except that the consumer 
     protection agency may prescribe regulations allowing prior 
     notice to any party that owns or otherwise provided the 
     material to the consumer protection agency and has designated 
     such material as confidential.
       (4) Petition for enforcement.--
       (A) In general.--Whenever any person fails to comply with 
     any civil investigative demand duly served upon such person 
     under this section, or whenever satisfactory copying or 
     reproduction of material requested pursuant to the demand 
     cannot be accomplished and such person refuses to surrender 
     such material, the consumer protection agency, through such 
     officers or attorneys as it may designate, may file, in the 
     district court of the United States for any judicial district 
     in which such person resides, is found, or transacts 
     business, and serve upon such person, a petition for an order 
     of such court for the enforcement of this section.
       (B) Service of process.--All process of any court to which 
     application may be made as provided in this subsection may be 
     served in any judicial district.
       (5) Petition for order modifying or setting aside demand.--
       (A) In general.--Not later than 20 days after the service 
     of any civil investigative demand upon any person under 
     subsection (b), or at any time before the return date 
     specified in the demand, whichever period is shorter, or 
     within such period exceeding 20 days after service or in 
     excess of such return date as may be prescribed in writing, 
     subsequent to service, by any consumer protection agency 
     investigator named in the demand, such person may file with 
     the consumer protection agency a petition for an order by the 
     consumer protection agency modifying or setting aside the 
     demand.
       (B) Compliance during pendency.--The time permitted for 
     compliance with the demand in whole or in part, as deemed 
     proper and ordered by the consumer protection agency, shall 
     not run during the pendency of such petition at the consumer 
     protection agency, except that such person shall comply with 
     any portions of the demand not sought to be modified or set 
     aside.
       (C) Specific grounds.--Such petition shall specify each 
     ground upon which the petitioner relies in seeking such 
     relief, and may be based upon any failure of the demand to 
     comply with the provisions of this section, or upon any 
     constitutional or other legal right or privilege of such 
     person.
       (6) Custodial control.--At any time during which any 
     custodian is in custody or control of any documentary 
     material, tangible things, reports, answers to questions, or 
     transcripts of oral testimony given by any person in 
     compliance with any civil investigative demand, such person 
     may file, in the district court of the United States for the 
     judicial district within which the office of such custodian 
     is situated, and serve upon such custodian, a petition for an 
     order of such court requiring the performance by such 
     custodian of any duty imposed upon such custodian by this 
     section or regulation prescribed by the consumer protection 
     agency.
       (7) Jurisdiction of court.--
       (A) In general.--Whenever any petition is filed in any 
     district court of the United States under this section, such 
     court shall have jurisdiction to hear and determine the 
     matter so presented, and to enter such order or orders as may 
     be required to carry into effect the provisions of this 
     section.
       (B) Appeal.--Any final order so entered shall be subject to 
     appeal pursuant to section 1291 of title 28, United States 
     Code.
       (c) Hearings and Adjudication Proceedings.--
       (1) In general.--A consumer protection agency may conduct 
     hearings and adjudication proceedings with respect to any 
     person in the manner prescribed by chapter 5 of title 5, 
     United States Code in order to ensure or enforce compliance 
     with--
       (A) the provisions of this title, including any regulations 
     prescribed by the consumer protection agency under this 
     title; and
       (B) any other Federal law that the consumer protection 
     agency is authorized to enforce, including a consumer 
     protection law, and any regulations or order prescribed 
     thereunder, unless such Federal law specifically limits the 
     consumer protection agency from conducting a hearing or 
     adjudication proceeding and only to the extent of such 
     limitation.
       (2) Special rules for cease-and-desist proceedings.--
       (A) Issuance.--
       (i) Notice of charges.--If, in the opinion of a consumer 
     protection agency, any covered person is engaging or has 
     engaged in an activity that violates a law, regulation, or 
     any condition imposed in writing on the person by the 
     consumer protection agency, the consumer protection agency 
     may issue and serve upon the person a notice of charges with 
     respect to such violation.
       (ii) Contents of notice.--The notice shall contain a 
     statement of the facts constituting any alleged violation and 
     shall fix a time and place at which a hearing will be held to 
     determine whether an order to cease-and-desist there from 
     should issue against the person.
       (iii) Time of hearing.--A hearing under this subsection 
     shall be fixed for a date not earlier than 30 days nor later 
     than 60 days after service of such notice unless an earlier 
     or a later date is set by the consumer protection agency at 
     the request of any party so served.
       (iv) Nonappearance deemed to be consent to order.--Unless 
     the party or parties so served shall appear at the hearing 
     personally or by a duly authorized representative, they shall 
     be deemed to have consented to the issuance of the cease-and-
     desist order.
       (v) Issuance of order.--In the event of such consent, or if 
     upon the record made at any such hearing, the consumer 
     protection agency shall find that any violation specified in 
     the notice of charges has been established, the consumer 
     protection agency may issue and serve upon the person an 
     order to cease-and-desist from any such violation or 
     practice.
       (vi) Includes requirement for corrective action.--Such 
     order may, by provisions which may be mandatory or otherwise, 
     require the person to cease-and-desist from the same, and, 
     further, to take affirmative action to correct the conditions 
     resulting from any such violation.
       (B) Effectiveness of order.--A cease-and-desist order shall 
     take effect at the end of the 30-day period beginning on the 
     date of the service of such order upon the covered person 
     concerned (except in the case of a cease-and-desist order 
     issued upon consent, which shall take effect at the time 
     specified therein), and shall remain effective and 
     enforceable as provided therein, except to such extent as it 
     is stayed, modified, terminated, or set aside by action of 
     the consumer protection agency or a reviewing court.
       (C) Decision and appeal.--
       (i) Place of and procedures for hearing.--Any hearing 
     provided for in this subsection shall be held in the Federal 
     judicial district or in the territory in which the residence 
     or home office of the person is located unless the person 
     consents to another place, and shall be conducted in 
     accordance with the provisions of chapter 5 of title 5 of the 
     United States Code.
       (ii) Time limit for decision.--After such hearing, and 
     within 90 days after the consumer protection agency has 
     notified the parties that the case has been submitted to it 
     for final decision, the consumer protection agency shall--

       (I) render its decision (which shall include findings of 
     fact upon which its decision is predicated) and shall issue; 
     and
       (II) serve upon each party to the proceeding an order or 
     orders consistent with the provisions of this section. 
     Judicial review of any such order shall be exclusively as 
     provided in this subsection.

       (iii) Modification of order generally.--Unless a petition 
     for review is timely filed in a court of appeals of the 
     United States, as hereinafter provided in subparagraph (D), 
     and thereafter until the record in the proceeding has been 
     filed as so provided, the consumer protection agency may at 
     any time, upon such notice and in such manner as it shall 
     deem proper, modify, terminate, or set aside any such order.
       (iv) Modification of order after filing record on appeal.--
     Upon such filing of the record, the consumer protection 
     agency may modify, terminate, or set aside any such order 
     with permission of the court.
       (D) Appeal to court of appeals.--
       (i) In general.--Any party to any proceeding under this 
     subsection may obtain a review of any order served pursuant 
     to this subsection (other than an order issued with the 
     consent of the person concerned) by the filing in the court 
     of appeals of the United States for the circuit in which the 
     principal office of the covered person is located, or in the 
     United States Court of Appeals for the District of Columbia 
     Circuit, within 30 days after the date of service of such 
     order, a written petition praying that the order of the 
     consumer protection agency be modified, terminated, or set 
     aside.
       (ii) Transmittal of copy to the consumer protection 
     agency.--A copy of such petition shall be forthwith 
     transmitted by the clerk of the court to the consumer 
     protection agency, and thereupon the consumer protection 
     agency shall file in the court the record in the proceeding, 
     as provided in section 2112 of title 28, United States Code.
       (iii) Jurisdiction of court.--Upon the filing of such 
     petition, such court shall have jurisdiction, which upon the 
     filing of the record shall except as otherwise provided be 
     exclusive, to affirm, modify, terminate, or

[[Page 31384]]

     set aside, in whole or in part, the order of the consumer 
     protection agency.
       (iv) Scope of review.--Review of such proceedings shall be 
     had as provided in chapter 7 of title 5, United States Code.
       (v) Finality.--The judgment and decree of the court shall 
     be final, except that the same shall be subject to review by 
     the Supreme Court upon certiorari, as provided in section 
     1254 of title 28, United States Code.
       (E) No stay.--The commencement of proceedings for judicial 
     review under subparagraph (D) shall not, unless specifically 
     ordered by the court, operate as a stay of any order issued 
     by the agency.
       (3) Special rules for temporary cease-and-desist 
     proceedings.--
       (A) Issuance.--
       (i) In general.--Whenever the consumer protection agency 
     determines that the violation specified in the notice of 
     charges served upon a person pursuant to paragraph (2), or 
     the continuation thereof, is likely to cause the person to be 
     insolvent or otherwise prejudice the interests of consumers 
     before the completion of the proceedings conducted pursuant 
     to paragraph (2), the consumer protection agency may issue a 
     temporary order requiring the covered person to cease-and-
     desist from any such violation or practice and to take 
     affirmative action to prevent or remedy such insolvency or 
     other condition pending completion of such proceedings.
       (ii) Other requirements.--Any temporary order issued under 
     this paragraph may include any requirement authorized under 
     this section.
       (iii) Effect date of order.--Any temporary order issued 
     under this paragraph shall take effect upon service upon the 
     person and, unless set aside, limited, or suspended by a 
     court in proceedings authorized by subparagraph (B), shall 
     remain effective and enforceable pending the completion of 
     the administrative proceedings pursuant to such notice and 
     until such time as the consumer protection agency shall 
     dismiss the charges specified in such notice, or if a cease-
     and-desist order is issued against the person, until the 
     effective date of such order.
       (B) Appeal.--Within 10 days after the person concerned has 
     been served with a temporary cease-and-desist order, the 
     person may apply to the United States district court for the 
     judicial district in which the home office of the covered 
     person is located, or the United States District Court for 
     the District of Columbia, for an injunction setting aside, 
     limiting, or suspending the enforcement, operation, or 
     effectiveness of such order pending the completion of the 
     administrative proceedings pursuant to the notice of charges 
     served upon the person under paragraph (2), and such court 
     shall have jurisdiction to issue such injunction.
       (C) Incomplete or inaccurate records.--
       (i) Temporary order.--If a notice of charges served under 
     paragraph (2) specifies, on the basis of particular facts and 
     circumstances, that a person's books and records are so 
     incomplete or inaccurate that the consumer protection agency 
     is unable to determine the financial condition of that person 
     or the details or purpose of any transaction or transactions 
     that may have a material effect on the financial condition of 
     that person, the consumer protection agency may issue a 
     temporary order requiring--

       (I) the cessation of any activity or practice which gave 
     rise, whether in whole or in part, to the incomplete or 
     inaccurate state of the books or records; or
       (II) affirmative action to restore such books or records to 
     a complete and accurate state, until the completion of the 
     proceedings under paragraph(2)(A).

       (ii) Effective period.--Any temporary order issued under 
     clause (i)--

       (I) shall take effect upon service; and
       (II) unless set aside, limited, or suspended by a court in 
     proceedings under subparagraph (B), shall remain in effect 
     and enforceable until the earlier of--

       (aa) the completion of the proceeding initiated under 
     paragraph (2) in connection with the notice of charges; or
       (bb) the date the consumer protection agency determines, by 
     examination or otherwise, that the person's books and records 
     are accurate and reflect the financial condition of the 
     person.
       (4) Special rules for enforcement of orders.--
       (A) In general.--The consumer protection agency may in its 
     discretion apply to the United States district court within 
     the jurisdiction of which the principal office of the covered 
     person is located, for the enforcement of any effective and 
     outstanding notice or order issued under this section, and 
     such court shall have jurisdiction and power to order and 
     require compliance herewith.
       (B) Exception.--Except as otherwise provided in this 
     subsection, no court shall have jurisdiction to affect by 
     injunction or otherwise the issuance or enforcement of any 
     notice or order or to review, modify, suspend, terminate, or 
     set aside any such notice or order.
       (5) Regulations.--The consumer protection agencies shall 
     prescribe regulations establishing such procedures as may be 
     necessary to carry out this section.
       (d) Litigation Authority.--
       (1) In general.--If any person violates a provision of this 
     title, any consumer protection law or any regulation 
     prescribed or order issued by a consumer protection agency, 
     the CFPS, or the Council under this title or pursuant to any 
     such authority, a consumer protection agency may commence a 
     civil action against such person to impose a civil penalty or 
     to seek all appropriate legal or equitable relief including a 
     permanent or temporary injunction as permitted by law.
       (2) Representation.--A consumer protection agency may act 
     in its own name and through its own attorneys in enforcing 
     any provision of this title, regulations under this title, or 
     any other law or regulation, or in any action, suit, or 
     proceeding to which the consumer protection agency is a 
     party.
       (3) Compromise of actions.--A consumer protection agency 
     may compromise or settle any action if such compromise is 
     approved by the court.
       (4) Notice to the attorney general.--When commencing a 
     civil action under this title, any consumer protection law or 
     any regulation thereunder, a consumer protection agency shall 
     notify the Attorney General.
       (5) Forum.--Any civil action brought under this title may 
     be brought in a United States district court or in any court 
     of competent jurisdiction of a State in a district in which 
     the defendant is located or resides or is doing business, and 
     such court shall have jurisdiction to enjoin such person and 
     to require compliance with this title, any consumer 
     protection law or any regulation prescribed or order issued 
     by a consumer protection agency, the CFPS, or the Council 
     under this title or pursuant to any such authority.
       (6) Time for bringing action.--
       (A) In general.--Except as otherwise permitted by law, no 
     action may be brought under this title more than 3 years 
     after the violation to which an action relates.
       (B) Limitations under other federal laws.--
       (i) For purposes of this subsection, an action arising 
     under this title shall not include claims arising solely 
     under consumer protection laws.
       (ii) In any action arising solely under a consumer 
     protection law, a consumer protection agency may commence, 
     defend, or intervene in the action in accordance with the 
     requirements of that law, as applicable.
       (e) Relief Available.--
       (1) Administrative proceedings or court actions.--
       (A) Jurisdiction.--The court (or consumer protection 
     agency, as the case may be) in an action or adjudication 
     proceeding brought under this title or any consumer 
     protection law shall have jurisdiction to grant any 
     appropriate legal or equitable relief with respect to a 
     violation of this title or any consumer protection law, 
     including a violation of a regulation prescribed or order 
     issued under this title or any consumer protection law.
       (B) Relief.--Such relief may include--
       (i) rescission or reformation of contracts;
       (ii) refund of moneys or return of real property;
       (iii) restitution;
       (iv) compensation for unjust enrichment;
       (v) payment of damages;
       (vi) public notification regarding the violation, including 
     the costs of notification;
       (vii) limits on the activities or functions of the person; 
     and
       (viii) civil money penalties, as set forth more fully in 
     paragraph (4).
       (C) No exemplary or punitive damages.--Nothing in this 
     paragraph shall be construed as authorizing the imposition of 
     exemplary or punitive damages.
       (2) Recovery of costs.--In any action brought by a consumer 
     protection agency to enforce any provision of this title, any 
     consumer protection law, or any regulation prescribed or 
     order issued by a consumer protection agency, the CFPS, or 
     the Council under this title or pursuant to any such 
     authority, a consumer protection agency may recover its costs 
     in connection with prosecuting such action if the consumer 
     protection agency is the prevailing party in the action.
       (3) Civil money penalty in court and administrative 
     actions.--
       (A) Any person that violates any provision of this title, 
     any consumer protection law, or any regulation prescribed or 
     order issued by a consumer protection agency, the CFPS, or 
     the Council under this title shall forfeit and pay a civil 
     penalty pursuant to this paragraph determined as follows:
       (i) First tier.--For any violation of a final order or 
     condition imposed in writing by a consumer protection agency, 
     a civil penalty shall not exceed $5,000 for each day during 
     which such violation continues.
       (ii) Second tier.--Notwithstanding clause (i), for any 
     person that knowingly violates this title, any consumer 
     protection law, or any regulation prescribed or order issued 
     by a consumer protection agency, the CFPS, or the Council 
     under this title, a civil penalty shall not exceed $1,000,000 
     for each day during which such violation continues.
       (B) Mitigating factors.--In determining the amount of any 
     penalty assessed under subparagraph (A), the consumer 
     protection agency or the court shall take into account the 
     appropriateness of the penalty with respect to--
       (i) the size of financial resources and good faith of the 
     person charged;
       (ii) the gravity of the violation;

[[Page 31385]]

       (iii) the severity of the risks to or losses of the 
     consumer, which may take into account the number of products 
     or services sold or provided;
       (iv) the history of previous violations; and
       (v) such other matters as justice may require.
       (C) Authority to modify or remit penalty.--The consumer 
     protection agency may compromise, modify, or remit any 
     penalty which may be assessed or had already been assessed 
     under subparagraph (A). The amount of such penalty, when 
     finally determined, shall be exclusive of any sums owed by 
     the person to the United States in connection with the costs 
     of the proceeding, and may be deducted from any sums owing by 
     the United States to the person charged.
       (D) Notice and hearing.--No civil penalty may be assessed 
     with respect to a violation of this title, any consumer 
     protection law, or any regulation prescribed or order issued 
     by a consumer protection agency, the CFPS, or the Council, 
     unless--
       (i) the consumer protection agency gives notice and an 
     opportunity for a hearing to the person accused of the 
     violation; or
       (ii) the appropriate court has ordered such assessment and 
     entered judgment in favor of the consumer protection agency.
       (f) Referrals for Criminal Proceedings.--Whenever a 
     consumer protection agency obtains evidence that any person, 
     either domestic or foreign, has engaged in conduct that may 
     constitute a violation of Federal criminal law, the consumer 
     protection agency shall have the power to transmit such 
     evidence to the Attorney General, who may institute criminal 
     proceedings under appropriate law. Nothing in this section 
     affects any other authority of the consumer protection agency 
     to disclose information.
       (g) Employee Protection.--
       (1) In general.--No person shall terminate or in any other 
     way discriminate against, or cause to be terminated or 
     discriminated against, any employee or any authorized 
     representative of employees by reason of the fact that such 
     employee or representative has provided information to a 
     consumer protection agency, the CFPS, or the Council, filed, 
     instituted or caused to be filed or instituted any proceeding 
     under this title, any consumer protection law, or has 
     testified or is about to testify in any proceeding resulting 
     from the administration or enforcement of the provisions of 
     this title.
       (2) Consumer protection agency review of termination.--
       (A) Application for review.--Any employee or representative 
     of employees who believes that he has been terminated or 
     otherwise discriminated against by any person in violation of 
     paragraph (1) may, within 45 days after such alleged violated 
     occurs, apply to a consumer protection agency for review of 
     such termination or alleged discrimination.
       (B) Copy to respondent.--A copy of the application shall be 
     sent to the person who is alleged to have terminated or 
     otherwise discriminated against an employee, and such person 
     shall be the respondent.
       (C) Investigation.--Upon receipt of such application, the 
     consumer protection agency shall cause such investigation to 
     be made as the consumer protection agency deems appropriate.
       (D) Hearing.--Any investigation under this paragraph shall 
     provide an opportunity for a public hearing at the request of 
     any party to such review to enable the parties to present 
     information relating to such alleged violation.
       (E) Notice of time and place for hearing.--The parties 
     shall be given written notice of the time and place of the 
     hearing at least 5 days prior to the hearing.
       (F) Procedure.--Any hearing under this paragraph shall be 
     of record and shall be subject to section 554 of title 5, 
     United States Code.
       (G) Determination.--
       (i) In general.--Upon receiving the report of such 
     investigation, the consumer protection agency shall make 
     findings of fact.
       (ii) Issuance of decision.--If the consumer protection 
     agency finds that there is sufficient evidence in the record 
     to conclude that such a violation did occur, the consumer 
     protection agency shall issue a decision, incorporating an 
     order therein and the consumer protection agency's findings, 
     requiring the party committing such violation to take such 
     affirmative action to abate the violation as the consumer 
     protection agency deems appropriate, including reinstating or 
     rehiring the employee or representative of employees to the 
     former position with compensation.
       (iii) Denial of application.--If the consumer protection 
     agency finds insufficient evidence to support the allegations 
     made in the application, the consumer protection agency shall 
     deny the application.
       (H) Judicial review.--An order issued by the consumer 
     protection agency under this paragraph (2) shall be subject 
     to judicial review in the same manner as orders and decisions 
     are subject to judicial review under this title or any 
     consumer protection law.
       (3) Costs and expenses.--Whenever an order is issued under 
     this subsection to abate such violation, at the request of 
     the applicant a sum equal to the aggregate amount of all 
     costs and expenses (including attorney's fees) determined by 
     the consumer protection agency to have been reasonably 
     incurred by the applicant for, or in connection with, the 
     application and prosecution of such proceedings shall be 
     assessed against the person committing such violation.
       (4) Exception.--This subsection shall not apply to any 
     employee who acting without discretion from the employer of 
     such employee (or the employer's agent) deliberately violates 
     any requirement of this title or any consumer protection law.
       (h) Exclusion for Persons Regulated by a State Insurance 
     Regulator.--
       (1) In general.--No provision of this title shall be 
     construed as altering, amending, or affecting the authority 
     of any State insurance regulator to adopt rules, initiate 
     enforcement proceedings, or take any other action with 
     respect to a person regulated by any State insurance 
     regulator. Except as provided in paragraphs (2) and (3), the 
     Council and the CFPS shall have no authority to exercise any 
     power to enforce this title with respect to a person 
     regulated by any State insurance regulator.
       (2) Description of activities.--Paragraph (1) shall not 
     apply to any person described in such paragraph to the extent 
     such person is engaged in any financial activity described in 
     any subparagraph of section 4018(15) or is otherwise subject 
     to any of the enumerated consumer laws or the authorities 
     transferred under section 4018(6).
       (3) Preservation of certain authorities.--Nothing in this 
     title shall be construed as limiting the authority of the 
     Council or the CFPS from exercising powers under this Act 
     with respect to a person, other than a person regulated by a 
     State insurance regulator, who provides a product or service 
     for or on behalf of a person regulated by a State insurance 
     regulator in connection with a financial activity.

     SEC. 4016. COLLECTION OF DEPOSIT ACCOUNT DATA.

       (a) Purpose.--The purpose of this section is to promote 
     awareness and understanding of the access of individuals and 
     communities to financial services, and to identify business 
     and community development needs and opportunities.
       (b) In General.--
       (1) Records required.--For each branch, automated teller 
     machine at which deposits are accepted, and other deposit 
     taking service facility with respect to any financial 
     institution, the financial institution shall maintain records 
     of the number and dollar amounts of deposit accounts of 
     customers.
       (2) Geo-coded addresses of depositors.--The customers' 
     addresses maintained pursuant to paragraph (1) shall be geo-
     coded so that data shall be collected regarding the census 
     tracts of the residence or business location of the 
     customers.
       (3) Identification of depositor type.--In maintaining 
     records on any deposit account under this section, the 
     financial institution shall also record whether the deposit 
     account is for a residential or commercial customer.
       (4) Public availability.--
       (A) In general.--The following information shall be 
     publicly available on an annual basis--
       (i) the address and census tracts of each branch, automated 
     teller machine at which deposits are accepted, and other 
     deposit taking service facility with respect to any financial 
     institution;
       (ii) the type of deposit account including whether the 
     account was a checking or savings account; and
       (iii) data on the number and dollar amounts of the 
     accounts, presented by census tract location of the 
     residential and commercial customers.
       (B) Protection of identity.--In the publicly available 
     data, any personally identifiable data element shall be 
     removed so as to protect the identities of the commercial and 
     residential customers.
       (c) Availability of Information.--
       (1) Submission to agencies.--The data required to be 
     compiled and maintained under this section by any financial 
     institution shall be submitted annually to the a Federal 
     banking agency, in accordance with rules prescribed by the 
     Federal banking agencies.
       (2) Availability of information.--Information compiled and 
     maintained under this section shall be retained for not less 
     than 3 years after the date of preparation and shall be made 
     available to the public, upon request, in the form required 
     under rules prescribed by the Federal banking agencies.
       (d) Federal Banking Agency Use.--The Federal banking 
     agencies--
       (1) shall assess the distribution of residential and 
     commercial accounts at such financial institution across 
     income and minority level of census tracts; and
       (2) may use the data for any other purpose as permitted by 
     law.
       (e) Regulations and Guidance.--
       (1) In general.--The Federal banking agencies shall 
     prescribe such regulations and issue guidance as may be 
     necessary to carry out, enforce, and compile data pursuant to 
     this section.
       (2) Data compilation regulations.--The Federal banking 
     agencies shall prescribe regulations regarding the provision 
     of data compiled under this section to such agencies to carry 
     out the purposes of this section and

[[Page 31386]]

     shall issue guidance to financial institutions regarding 
     measures to facilitate compliance with the this section and 
     the requirements of regulations prescribed under this 
     section.
       (f) Definitions.--For purposes of this section, and 
     notwithstanding section 4018, the following definitions shall 
     apply:
       (1) Credit union.--The term ``credit union'' means a 
     Federal credit union or a State-chartered credit union (as 
     such terms are defined in section 101 of the Federal Credit 
     Union Act).
       (2) Deposit account.--The term ``deposit account'' includes 
     any checking account, savings account, credit union share 
     account, and other type of account as defined by the consumer 
     protection agencies.
       (3) Federal banking agency.--The term ``Federal banking 
     agency'' means the Board of Governors of the Federal Reserve 
     System, the head of the agency responsible for chartering and 
     regulating national banks, the Director of the Office of 
     Thrift Supervision, the Federal Deposit Insurance 
     Corporation, and the National Credit Union Administration; 
     and the term ``Federal banking agencies'' means all of those 
     agencies.
       (4) Financial institution.--The term ``financial 
     institution''--
       (A) has the meaning given to the term ``insured depository 
     institution'' in section 3(c)(2) of the Federal Deposit 
     Insurance Act; and
       (B) includes any credit union.

     SEC. 4017. CONFIDENTIALITY.

       The Council, the Financial Institutions Examination 
     Council, the CFPS, and the consumer protection agencies shall 
     each issue regulations regarding the confidential treatment 
     of information obtained from persons in connection with the 
     exercise of such entity's authorities under this title. Such 
     regulations shall, to the extent practicable, mirror the 
     provisions provided for the confidential treatment of 
     financial records under the Right to Financial Privacy Act of 
     1978 (12 U.S.C. 3401).

     SEC. 4018. DEFINITIONS.

       For purposes of this title:
       (1) Affiliate.--The term ``affiliate'' means any person 
     that controls, is controlled by, or is under common control 
     with another person.
       (2) Board of governors.--The term ``Board of Governors'' 
     means the Board of Governors of the Federal Reserve System.
       (3) CFPS.--The term ``CFPS'' means the Consumer Financial 
     Protection Subcommittee established under section 4003.
       (4) Consumer.--The term ``consumer'' means an individual or 
     an agent, trustee, or representative acting on behalf of an 
     individual.
       (5) Consumer financial product or service.--The term 
     ``consumer financial product or service'' means any financial 
     product or service to be used by a consumer primarily for 
     personal, family, or household purposes.
       (6) Consumer protection laws.--The term ``consumer 
     protection laws'' means each of the following:
       (A) The Alternative Mortgage Transaction Parity Act (12 
     U.S.C. 3801 et seq.).
       (B) The Electronic Funds Transfer Act (15 U.S.C. 1693 et 
     seq.)
       (C) The Equal Credit Opportunity Act (15 U.S.C. 1691 et 
     seq.).
       (D) The Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), 
     except with respect to sections 615(e), 624, and 628.
       (E) The Fair Debt Collection Practices Act (15 U.S.C. 1692 
     et seq.).
       (F) Subsections (c), (d), (e), and (f) of section 43 of the 
     Federal Deposit Insurance Act (12 U.S.C. 1831t).
       (G) Sections 502, 503, 504, 505, 506, 507, 508, and 509 of 
     the Gramm-Leach-Bliley Act (15 U.S.C. 6802 et seq.).
       (H) The Home Mortgage Disclosure Act (12 U.S.C. 2801 et 
     seq.).
       (I) The Real Estate Settlement Procedures Act (12 U.S.C. 
     2601 et seq.).
       (J) The Secure and Fair Enforcement for Mortgage Licensing 
     Act (12 U.S.C. 5101 et seq.).
       (K) The Truth in Lending Act (15 U.S.C. 1601 et seq.).
       (L) The Truth in Savings Act (12 U.S.C. 4301 et seq.).
       (7) Consumer protection agency.--Except as provided in 
     section 4015, the term ``consumer protection agency'' means--
       (A) the Federal Reserve System;
       (B) the Office of the Comptroller of the Currency;
       (C) the Office of Thrift Supervision;
       (D) the Federal Deposit Insurance Corporation;
       (E) the Federal Trade Commission;
       (F) the National Credit Union Administration;
       (G) the Department of the Treasury;
       (H) the Department of Housing and Urban Development;
       (I) the Securities and Exchange Commission; and
       (J) the Commodity Futures Trading Commission.
       (8) Council.--The term ``council'' means the Consumer 
     Financial Protection Council established under section 2.
       (9) Covered person.--
       (A) In general.--The term ``covered person'' means--
       (i) any person who engages directly or indirectly in a 
     financial activity, in connection with the provision of a 
     consumer financial product or service; or
       (ii) any person who, in connection with the provision of a 
     consumer financial product or service, provides a material 
     service to, or processes a transaction on behalf of, a person 
     described in subparagraph (A).
       (B) Exception.--The term ``covered person'' does not 
     include a person regulated by a State insurance regulator.
       (10) Credit.--The term ``credit'' means the right granted 
     by a person to a consumer to defer payment of a debt, incur 
     debt and defer its payment, or purchase property or services 
     and defer payment for such purchase.
       (11) Credit union.--The term ``credit union'' means a 
     Federal credit union, State credit union, or State-chartered 
     credit union as defined in section 101 of the Federal Credit 
     Union Act (12 U.S.C. 1752).
       (12) Deposit.--The term ``deposit''--
       (A) has the same meaning as in section 3(l) of the Federal 
     Deposit Insurance Act; and
       (B) includes a share in a member account (as defined in 
     section 101(5) of the Federal Credit Union Act) at a credit 
     union.
       (13) Deposit-taking activity.--The term ``deposit-taking 
     activity'' means--
       (A) the acceptance of deposits, the provision of other 
     services related to the acceptance of deposits, or the 
     maintenance of deposit accounts;
       (B) the acceptance of money, the provision of other 
     services related to the acceptance of money, or the 
     maintenance of members' share accounts by a credit union; or
       (C) the receipt of money or its equivalent, as a consumer 
     protection agency may determine by regulation or order, 
     received or held by the covered person (or an agent for the 
     person) for the purpose of facilitating a payment or 
     transferring funds or value of funds by a consumer to a third 
     party.

     For the purposes of this title, the consumer protection 
     agencies may determine that the term ``deposit-taking 
     activity'' includes the receipt of money or its equivalent in 
     connection with the sale or issuance of any payment 
     instrument or stored value product or service.
       (14) Federal banking agency.--The term ``Federal banking 
     agency'' means the Board of Governors, the Comptroller of the 
     Currency, the Director of the Office of Thrift Supervision, 
     the Federal Deposit Insurance Corporation, or the National 
     Credit Union Administration and the term ``Federal banking 
     agencies'' means all of those agencies.
       (15) Financial activity.--The term ``financial activity'' 
     means any of the following activities:
       (A) Deposit-taking activities.
       (B) Extending credit and servicing loans, including--
       (i) acquiring, brokering, or servicing loans or other 
     extensions of credit;
       (ii) engaging in any other activity usual in connection 
     with extending credit or servicing loans, including 
     performing appraisals of real estate and personal property 
     and selling or servicing credit insurance or mortgage 
     insurance.
       (C) Check-guaranty services, including--
       (i) authorizing a subscribing merchant to accept personal 
     checks tendered by the merchant's customers in payment for 
     goods and services; and
       (ii) purchasing from a subscribing merchant validly 
     authorized checks that are subsequently dishonored.
       (D) Collecting, analyzing, maintaining, and providing 
     consumer report information or other account information by 
     covered persons, including information relating to the credit 
     history of consumers and providing the information to a 
     credit grantor who is considering a consumer application for 
     credit or who has extended credit to the borrower.
       (E) Collection of debt related to any consumer financial 
     product or service.
       (F) Providing real estate settlement services, including 
     providing title insurance.
       (G) Leasing personal or real property or acting as agent, 
     broker, or adviser in leasing such property if--
       (i) the lease is on a non-operating basis;
       (ii) the initial term of the lease is at least 90 days; and
       (iii) in the case of leases involving real property, at the 
     inception of the initial lease, the transaction is intended 
     to result in ownership of the leased property to be 
     transferred to the lessee, subject to standards prescribed by 
     the consumer protection agencies.
       (H) Acting as an investment adviser to any person (not 
     subject to regulation by or required to register with the 
     Commodity Futures Trading Commission or the Securities and 
     Exchange Commission).
       (I) Acting as financial adviser to any person, including--
       (i) providing financial and other related advisory 
     services;
       (ii) providing educational courses, and instructional 
     materials to consumers on individual financial management 
     matters; or
       (iii) providing credit counseling, tax-planning or tax-
     preparation services to any person.
       (J) Financial data processing, including providing data 
     processing and data transmission services, facilities 
     (including data processing and data transmission hardware, 
     software, documentation, or operating personnel), databases, 
     advice, and access to such services, facilities, or databases 
     by any technological means, if--

[[Page 31387]]

       (i) the data to be processed or furnished are financial, 
     banking, or economic; and
       (ii) the hardware provided in connection therewith is 
     offered only in conjunction with software designed and 
     marketed for the processing and transmission of financial, 
     banking, or economic data, and where the general purpose 
     hardware does not constitute more than 30 percent of the cost 
     of any packaged offering.
       (K) Money transmitting.
       (L) Sale or issuance of stored value.
       (M) Acting as a money services business.
       (N) Acting as a custodian of money or any financial 
     instrument.
       (O) Any other activity that the consumer protection 
     agencies define, by regulation, as a financial activity for 
     the purposes of this title.
       (P) Except that the term ``financial activity'' shall not 
     include the business of insurance.
       (16) Financial product or service.--The term ``financial 
     product or service'' means any product or service that, 
     directly or indirectly, results from or is related to 
     engaging in 1 or more financial activities.
       (17) Foreign exchange.--The term ``foreign exchange'' means 
     the exchange, for compensation, of currency of the United 
     States or of a foreign government for currency of another 
     government.
       (18) Insured depository institution.--The term ``insured 
     depository institution'' has the same meaning as in section 3 
     of the Federal Deposit Insurance Act.
       (19) Money services business.--The term ``money services 
     business'' means a covered person that--
       (A) receives currency, monetary value, or payment 
     instruments for the purpose of exchanging or transmitting the 
     same by any means, including transmission by wire, facsimile, 
     electronic transfer, courier, the Internet, or through bill 
     payment services, or other businesses that facilitate third-
     party transfers within the United States or to or from the 
     United States; or
       (B) issues payment instruments or stored value.
       (20) Money transmitting.--The term ``money transmitting'' 
     means the receipt by a covered person of currency, monetary 
     value, or payment instruments for the purpose of transmitting 
     the same to any third-party by any means, including 
     transmission by wire, facsimile, electronic transfer, 
     courier, the Internet, or through bill payment services.
       (21) Payment instrument.--The term ``payment instrument'' 
     means a check, draft, warrant, money order, traveler's check, 
     electronic instrument, or other instrument, payment of money, 
     or monetary value (other than currency).
       (22) Person.--The term ``person'' means an individual, 
     partnership, company, corporation, association (incorporated 
     or unincorporated), trust, estate, cooperative organization, 
     or other entity.
       (23) Person regulated by a state insurance regulator.--The 
     term ``person regulated by a State insurance regulator'' 
     means any person who is--
       (A) engaged in the business of insurance; and
       (B) subject to regulation by any State insurance regulator, 
     but only to the extent that such person acts in such 
     capacity.
       (24) Person regulated by the commodity futures trading 
     commission.--The term ``person regulated by the Commodity 
     Futures Trading Commission'' means any futures commission 
     merchant, commodity trading adviser, commodity pool operator, 
     or introducing broker that is subject to the jurisdiction of 
     the Commodity Futures Trading Commission under the Commodity 
     Exchange Act, but only to the extent that the person acts in 
     such capacity.
       (25) Person regulated by the securities and exchange 
     commission.--The term ``person regulated by the Securities 
     and Exchange Commission'' means--
       (A) a broker or dealer that is required to be registered 
     under the Securities Exchange Act of 1934;
       (B) an investment adviser that is required to be registered 
     under the Investment Advisers Act of 1940; or
       (C) an investment company that is required to be registered 
     under the Investment Company Act of 1940--

     but only to the extent that the person acts in a registered 
     capacity.
       (26) Provision of a consumer financial product or 
     service.--The term ``provision of (or providing) a consumer 
     financial product or service'' means the advertisement, 
     marketing, solicitation, sale, disclosure, delivery, or 
     account maintenance or servicing of a consumer financial 
     product or service.
       (27) Residential mortgage loan.--The term ``residential 
     mortgage loan'' shall have the meaning given such term in 
     section 1503(8) of the Secure and Fair Enforcement for 
     Mortgage Licensing Act of 2008.
       (28) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (29) State.--The term ``State'' means any State, territory, 
     or possession of the United States, the District of Columbia, 
     Commonwealth of Puerto Rico, Commonwealth of the Northern 
     Mariana Islands, Guam, American Samoa, or the United States 
     Virgin Islands.
       (30) Stored value.--The term ``stored value'' means funds 
     or monetary value represented in any electronic format, 
     whether or not specially encrypted, and stored or capable of 
     storage on electronic media in such a way as to be 
     retrievable and transferred electronically, and includes a 
     prepaid debit card or product, or any other similar product, 
     regardless of whether the amount of the funds or monetary 
     value may be increased or reloaded.

     SEC. 4019. AUTHORIZATION OF APPROPRIATIONS.

       There is hereby authorized to be appropriated such sums as 
     may be necessary to carry out this title.

  The Acting CHAIR. Pursuant to House Resolution 964, the gentleman 
from Idaho (Mr. Minnick) and a Member opposed each will control 10 
minutes.
  The Chair recognizes the gentleman from Idaho.
  Mr. MINNICK. Madam Chair, we all support the goal of stronger, more 
uniform consumer protection regulation, but you don't achieve that by 
splitting the responsibility between two regulators, in many cases 
thousands of miles apart, each with half the responsibility. And you 
compound that mistake by creating exemptions to the new regulation 
which create gaps and inconsistency.
  Every regulation has some impact on both the solvency of a financial 
institution and on its customers. To split the responsibility between 
two inherently feuding regulators will lead to conflict, inaction, 
failure, and frustration.
  My amendment is much superior. It creates a strong mandate for 
consumer protection in all of the existing regulators. Every regulator 
must have a division in charge of consumer protection reporting to a 
person with coequal responsibility for safety and soundness. The 
regulations themselves will be set by all of the major regulators, a 
council including regulators from the Secretary of the Treasury to the 
Federal Reserve to State Attorneys General. The staff for this council 
will be in the Treasury, and it will have rulemaking authority, but the 
existing regulators will have the responsibility for administration and 
enforcement.
  Before I yield, I would like to thank the gentleman from Illinois, 
Congressman Schock, and his legislative director, Mark Roman, for their 
leadership in forging a bipartisan coalition that yields this 
commonsense solution to this increasingly important problem.
  Madam Chair, I yield 2 minutes to the gentleman from Oklahoma (Mr. 
Boren).
  Mr. BOREN. I thank the gentleman from Idaho for yielding.
  I rise today in support of the Minnick-Schock-Boren-Bright-Childers-
Shuler amendment.
  Madam Chair, most everyone in this body agrees that following a 
period in American history where the Dow Jones Industrial Average lost 
almost 60 percent of its value, three of America's five major 
investment banks went broke, and the U.S. saw the largest number of 
commercial bank failures in four generations that the need to reform 
the way America's banking and financial regulatory system works is 
important. The question, though, is: Just how many new government 
agencies are necessary to accomplish this task? If we create a new 
Federal agency to regulate consumer credit, will it improve the current 
regulatory framework or will it end up costing American jobs? I think 
we need to be cautious in our approach, so today I rise in an effort to 
streamline this piece of legislation.
  The amendment currently before this House will do a few simple 
things:
  First, it will change the framework of the legislation by locating a 
newly created Consumer Financial Protection Council within the 
Department of the Treasury rather than creating an entirely new Federal 
agency to oversee the financial system.
  Second, it will amend the legislation to take the power of regulating 
trillions of dollars of financial transactions out of the hands of one 
politically appointed administrator and instead create a Consumer 
Financial Protection Council charged with promoting consumer protection 
for users of financial products and services. By consolidating the 
expansion of government created by this regulatory bill, we can 
properly get the financial and

[[Page 31388]]

banking system back on its feet without creating another new Federal 
agency designed to solve America's problems.
  In the interest of good government, this legislation must be focused 
and directed at what caused the problem and not about settling old 
scores over business practices.
  I urge my colleagues to support this bipartisan amendment.
  Mr. FRANK of Massachusetts. Madam Chair, I rise to claim the time in 
opposition.
  The Acting CHAIR. The gentleman from Massachusetts is recognized for 
10 minutes.
  Mr. FRANK of Massachusetts. I now yield 2 minutes to one of the most 
thoughtful members of the Financial Services Committee, whom we will 
greatly miss when he retires, the gentleman from Kansas (Mr. Moore).
  Mr. MOORE of Kansas. Madam Chair, I rise today to oppose the 
amendment offered by my colleague, Mr. Minnick. I know my friend and 
colleague offers this alternative to the Consumer Financial Protection 
Agency in the spirit of wanting to do all we can to better protect 
consumers. I certainly share that view, but I don't support this 
proposed Consumer Financial Protection Council as the best way to 
accomplish that objective.
  This amendment effectively eliminates 4 days of thoughtful markup for 
CFPA and nearly 50 amendments offered by Republicans and Democrats to 
improve the bill. I am concerned the amendment before us may be 
unconstitutional, empowering a three-member State panel to decide how 
States will take a position that affects their consumer protections. 
This amendment creates a bureaucratic nightmare. In committee, we 
worked to focus CFPA on the bad actors that created the financial 
crisis, not the responsible community banks and credit unions that were 
lending responsibly and doing what they were asked.
  The exceptions for merchants and nonfinancial institutions makes 
sense as well. CFPA, as currently drafted, will help level the playing 
field for all community banks and credit unions. The new Consumer 
Protection Agency will instead be focused on the big banks and 
nonbanks, like mortgage brokers, that evaded strong supervision and 
gave us the subprime mortgage crisis that led to the broader financial 
crisis.
  It's time to put an end to those greedy enough to lie, cheat, and 
steal to the detriment of their competitors, their customers, and our 
economy. Like our parents and grandparents who gave us Federal Deposit 
Insurance following the Great Depression, now is the time to give our 
children and grandchildren strong consumer protections and create the 
CFPA.
  I urge my colleagues to vote ``no'' on the Minnick amendment and vote 
``yes'' on the underlying bill.
  Mr. MINNICK. May I inquire as to how much time I have remaining?
  The Acting CHAIR. The gentleman from Idaho has 6 minutes remaining.
  Mr. MINNICK. I yield 2 minutes to the gentleman from Illinois (Mr. 
Schock).
  Mr. SCHOCK. Madam Chair, first, I wish to thank the thoughtful 
gentleman from Idaho for his work on this important amendment. Clearly, 
the fact that we are debating this amendment towards the end of this 
piece of legislation speaks to the support for it, and I truly hope 
that a majority of our colleagues join together in supporting this 
amendment.
  A couple of thoughts. Last week, the President hosted a job summit 
here. We go back home every weekend and the prevailing concern on the 
minds of our voters and our constituents is jobs. They're concerned 
about double-digit employment, they're upset with the greed and the 
lack of oversight that has been provided. And so, rightfully so, this 
body has tried to rein in some of that lack of regulation and tried to 
put forward a thoughtful program.
  I know that the chairman of this committee is doing what he believes 
is best. But the fact of the matter is we need to look to those who are 
hurting. We need to look to those who are the job creators in this 
economy and ask: How will this affect them in their effort to employ 
people? Well, the fact of the matter is this is going to hurt our 
economy. This is going to lead to fewer jobs.
  The goal of this CFPA is to lead to improvement in the marketplace 
for the American people. However, consolidating the power into one 
bureaucratic appointee, creating a $1 billion dollar agency, adding to 
our national debt, increasing taxes, restricting lending, and costing 
small businesses to shed millions of jobs hardly justifies itself.
  This agency would make it more difficult for lenders to offer 
services and products that are important to small businesses. At a time 
when the economy is still struggling to recover, the last thing 
Congress ought to consider is an additional layer of regulation that 
will discourage new job creation.
  The University of Chicago just this week released a study that they 
suggest the CFPA, as it stands, would increase consumer interest rates 
by more than 1.6 percentage points, consumer borrowing would be reduced 
by at least 2.1 percent, and net new job creation would fall 4 percent.
  Mr. FRANK of Massachusetts. Madam Chair, I now recognize a strong 
advocate of a responsible policy towards the business community, the 
gentlewoman from Illinois (Ms. Bean) for 2 minutes.
  Ms. BEAN. Madam Chair, I rise in opposition to the amendment and in 
support of the underlying bill.
  While I am opposed to the gentleman from Idaho's amendment, I want to 
commend him on his leadership on comprehensive financial regulatory 
reform. We have worked closely on many issues in committee, and I 
appreciate the expertise he brings to these complicated issues before 
us.
  Reforming our financial system is vitally important to creating a 
functional, sustainable financial system that American families and 
businesses can count on. We must not fail to enact adequate safeguards 
so that the mistakes of the past do not reoccur. Topping our to-do list 
should be the enactment of strong consumer financial protections that 
will keep our constituents safe as they rehabilitate their trust in our 
ability to effectively monitor America's financial health.
  In order to accomplish this goal, we need an independent agency whose 
sole purpose is to protect and empower consumers to make informed 
financial decisions. The new CFPA, or Consumer Financial Protection 
Agency, would go a long way towards that end, restoring vital 
protections that were absent and duly needed during the buildup to 
America's recent financial fallout.
  Since CFPA was introduced in July, the committee has made significant 
improvements to this bill. One of the initial concerns we heard was 
that companies who do not engage in consumer financial business would 
be regulated by the CFPA. We fixed that. Merchants, retailers, doctors, 
Realtors, and others--some suggested the butcher, the baker, the 
candlestick maker--let's be clear, they're exempt from CFPA as was 
intended and as they should be.
  We address concerns we heard from banks and credit unions. Small and 
mid-size banks and credit unions under $10 billion in assets will not 
be subject to direct CFPA examination. Instead, there is a requirement 
now for coordination with the CFPA and the prudential regulator for 
those who are subject to direct CFPA examination.
  After the manager's agreement reached this week, the ability of 
national banks and Federal savings associations to operate under a 
uniform national standard of rules, where appropriate, is preserved. 
But functional regulators failed to prioritize consumer protections and 
protect our constituents.
  The Acting CHAIR. The gentlewoman's time has expired.
  Mr. FRANK of Massachusetts. I yield the gentlewoman an additional 30 
seconds.
  Ms. BEAN. The CFPA will create a centralized and independent 
framework, reducing inefficiencies and bureaucracy across multiple 
agencies. They will have the expertise, resources, and mission to 
update consumer financial protection laws and protect our constituents 
from abusive and unfair financial products and services. Mr. Minnick's 
amendment takes a different

[[Page 31389]]

approach. What our consumers need is best-in-class protections for 
investors, and Americans deserve no less.
  I urge my colleagues to oppose this amendment and support this 
historic underlying legislation and the CFPA it creates.

                              {time}  1145

  Mr. MINNICK. I yield 1\1/2\ minutes to the gentleman from Delaware 
(Mr. Castle).
  Mr. CASTLE. I thank the gentleman from Idaho for yielding.
  Madam Chair, I rise in very strong support of this bipartisan 
amendment to create a Consumer Financial Protection Council which, of 
course, I am pleased to cosponsor. This amendment strikes the right 
balance in promoting strong consumer protections while ensuring the 
safety and soundness of our Nation's financial system.
  I am convinced that the current language in the bill threatens to 
expand the reach of the Federal Government, to limit innovation, to 
restrict choices of financial products, and to interfere with day-to-
day activities of small business. Utilizing a council of existing 
regulators is a cost-effective and responsible approach to achieving 
the same goals as intended by the Consumer Financial Protection Agency.
  Our amendment establishes a council of existing regulators, which we 
know as the Treasury, Fed, OCC, FDIC, et cetera, instead of an entirely 
new agency and bureaucracy with all of the costs and attendant 
bureaucracy that would be involved with that. Utilizing a council 
balances power instead of using a single politically appointed 
administrator.
  I would hope that everybody in the Chamber would support this change 
by the gentleman from Idaho. I think the underlying legislation has 
some problems. There are some cost issues, and there are probably some 
job issues and other things we have to worry about, but I think this 
particular change which is in this amendment is key to progressing in a 
way that would protect consumers but that would make sure that we are 
not distracting from the world of business in terms of commerce and 
banking in the United States of America.
  Mr. FRANK of Massachusetts. I yield myself 4\1/2\ minutes.
  Madam Chair, the author of the amendment, I thought, began--or it was 
one of the speakers. Maybe it was the gentleman from Oklahoma who said 
we don't need a new agency. Well, he apparently didn't get too far into 
the bill.
  On lines 7 through 10 of page 1, There is hereby established the 
Consumer Financial Protection Council as an independent establishment 
of the executive branch.
  So it creates a new agency--a monstrous one. It is a 12-headed 
council which will have its own staff assigned under this amendment by 
Treasury. Then within each of the 12 agencies, a new position is 
created--a director of consumer affairs. So you will have 12 new 
positions staffed by the Treasury, with no limitations on how that's 
done, and this new council. It is also unwieldy.
  One of the responsibilities of the consumer agency will be to issue 
rules to prevent the kind of abuse of mortgages that had such a 
contributing role to our crisis. This bill says, yes, there will be 
such rules. They will be adopted by the 12-member council. They will 
vote on those. The chairman of the Commodities Future Trading 
Commission will have a vote on setting mortgage rates. The chairman of 
the Securities and Exchange Commission will help set mortgage rates. 
Other agencies without any particular involvement there will help set 
mortgage rates.
  Now, the 12 agencies that make up this bureaucratic version of the 
Christmas song will include the agency that has more responsibility for 
consumer regulation today than any other--the Federal Reserve system. 
Those who have said, We don't like what the Federal Reserve does, 
should understand that the largest single loser of authority, by far, 
in the bill that the committee has brought forward is the Federal 
Reserve. The Federal Reserve has been the primary consumer regulator 
under this bill. It still will be under this amendment. The Federal 
Reserve will retain all of its powers because you have the council, but 
you also will have much of this done by the independent regulator.
  So, if you think the Federal Reserve has done a good job as a 
consumer regulator and if you don't want to diminish its powers, then 
you ought to vote for this bill.
  Our bill also doesn't just deal with the Federal powers. Frankly, we 
were respectful of the role of the community banks, which you have not 
heard from in large opposition over this. In fact, the independent 
community banks, until we get to bankruptcy, are going to be supportive 
of this bill. I understand they have a problem with that.
  Much of the problem we have today is with the nonbanks--with the 
mortgages issued outside of banks, with the payday lenders, with the 
check cashers, with the people who do remittances. Many of them are 
honorable, but it's a largely unregulated operation. We give specific 
authority to regulate. What this says is the status quo is fine with 
regard to that. Arguably, the FTC has some jurisdiction over it. It 
hasn't been exercised very well.
  So, if you want to do something about payday lenders and check 
cashers and remittances, then you'll want to vote for the committee 
version and not for this 12-member amendment. Maybe some of the new 
consumer directors in each of the 12 agencies will work this out, but 
you'll have to wait for this 12-member body to vote on these things.
  I do want to address one particular issue, which is: Well, what about 
safety and soundness? The notion that adequate consumer protection 
somehow detracts from safety and soundness is at the heart of some of 
our disagreement. In effect, what they are saying is, you know, we're 
going to have to water down consumer protection. If you get somebody 
who takes it seriously, it might impinge on safety and soundness. In 
fact, it has been the absence of consumer protection that has caused 
safety and soundness problems.
  It was the refusal of the Federal Reserve, whose authority is 
preserved in the amendment of the gentleman from Idaho--they were given 
authority by this Congress in 1994 to regulate mortgages with the 
Homeowners Equity Protection Act. They flatly refused to use it. 
Because they would not do consumer protection, safety and soundness 
suffered. It didn't thrive.
  There are other examples. The failure to adequately protect people in 
the credit card area contributes to problems. It does not diminish 
them. So the argument is very, very clear.
  Now, it is true, by the way, that the Federal Reserve began to do 
some consumer protection recently, which was only after we started 
talking about this bill. This is explicitly what is in the bill. 
Implicitly what they are saying is: Keep consumer protection 
subordinated to bank regulation, and you will perpetuate the current 
problem.
  Mr. MINNICK. Madam Chair, how much time do I have remaining?
  The Acting CHAIR. The gentleman has 2\1/2\ minutes remaining.
  Mr. MINNICK. I yield 30 seconds to the gentleman from California (Mr. 
Campbell).
  Mr. CAMPBELL. Madam Chair, we need to change some things so we don't 
face financial collapse. We can change those things without creating an 
entirely new agency--spending billions of new dollars, hiring thousands 
of new bureaucrats, housing them in a new building, and creating a 
conflict between the safety and soundness of banks and consumer 
protection.
  The underlying bill creates all of those problems. This amendment 
accomplishes consumer protection without all of that. Support this 
amendment.
  Mr. FRANK of Massachusetts. I have one remaining speaker, and since I 
have the right to close, I will reserve the balance of my time.
  Mr. MINNICK. I yield 30 seconds to the gentleman from New Jersey (Mr. 
Lance).
  Mr. LANCE. Madam Chair, the current regulatory structure is not 
lacking authority. The Federal Reserve and

[[Page 31390]]

the other banking agencies had all of the powers needed to address 
problems in consumer protection. What was lacking was coordination, 
improved disclosure, and an ability to fill the gaps in the system.
  This amendment solves those deficiencies without installing a new 
bureaucracy that would make rules with little or no input from the cops 
on the beat--the banking agencies. That is why I am strongly supportive 
of Mr. Minnick's amendment.
  Mr. FRANK of Massachusetts. Since I am the one and final speaker, I 
continue to reserve the balance of my time.
  Mr. MINNICK. I yield 30 seconds to the gentlewoman from Illinois 
(Mrs. Biggert).
  Mrs. BIGGERT. I thank the gentleman for yielding.
  Madam Chair, I rise in strong support of this amendment offered by my 
colleague from Idaho, which is similar to one that I offered during the 
Financial Services Committee markup. This amendment is a bipartisan, 
commonsense alternative to provisions in the underlying bill that would 
do a disservice to consumers.
  One of the lessons that we have learned throughout this process is 
that bigger, uncoordinated government does not work when it comes to 
protecting consumers and regulating financial institutions.
  Madam Chair, I rise in support of the amendment offered by my 
colleague from Idaho. Similar to one I offered during a Financial 
Services Committee markup, this amendment is a bipartisan, commonsense 
alternative to provisions in the underlying bill that would do a 
disservice to consumers.
  What's the answer to the financial meltdown? How do we prevent it 
from happening again? What's not the answer is to create another 
federal agency. We already have the OCC, the OTS, the NCUA, the FDIC, 
the FTC, the SEC, the Fed, and the list goes on. The underlying bill 
would layer on a new federal bureaucracy that would allow five D.C. 
bureaucrats to dictate what financial products and services can be 
offered to consumers by anyone--from the church offering a funeral 
payment plan to a plumber charging to fix the kitchen sink.
  The personalized services offered by your local 100-year-old 
community banks, churches, or plumber didn't create the financial 
crisis. Did our local 100-year-old community banks, churches, or your 
plumber create the mess? No. But all could fall under the burden of new 
regulations and taxes imposed by a new agency.
  One of the lessons we've learned throughout this process is that 
bigger, uncoordinated government does not work when it comes to 
protecting consumers and regulating financial institutions. Instead, it 
only creates more cracks, confusion, and costs for consumers.
  Americans are calling for stronger, smarter consumer protections. But 
that doesn't mean they want government to run their lives or the 
businesses in their communities. Nor do they want bigger government, 
more spending, and limited choice.
  Some Members of this body think the government knows best. Others of 
us believe that with the right information, proper transparency, and 
full disclosure, families can and do make their own financial 
decisions. They don't need Big Brother to do it for them.
  My colleague from Idaho offers a proposal today that answers the 
question: what about the consumer? His amendment codifies, expands, and 
energizes an existing body, a council of regulators, and charges it 
with a clear mission to better protect consumers. It establishes a 
mechanism for creating uniform consumer protection rules, maintains 
enforcement by prudential regulators, utilizes existing regulatory 
framework with no new bureaucracy or cost to taxpayers or small 
businesses, and it maintains national standards.
  I urge my colleagues to support this amendment.
  Mr. MINNICK. I yield 30 seconds to the gentleman from Washington (Mr. 
Reichert).
  Mr. REICHERT. I thank the gentleman.
  Madam Chair, the choice is simple here. We can create a new, massive 
government bureaucracy, empower yet another czar to oversee our entire 
financial system, which will cost taxpayers millions more of their 
hard-earned money, or we can pass this amendment so that experienced 
regulators can better enforce the laws to protect our consumers from 
abuse while using existing resources. The choice is clear. Support this 
bipartisan, commonsense amendment that modernizes our regulatory system 
and helps Americans thrive in the 21st century.
  Mr. MINNICK. Madam Chair, how much time is remaining?
  The Acting CHAIR. The gentleman has 30 seconds remaining.
  Mr. MINNICK. Madam Chair, the CBO has scored the total cost of my 
council and the components in the various agencies as less than $50 
million. That compares to a massive new Federal bureaucracy they have 
scored at $4.6 billion.
  How many times, Madam Chair, are we going to create a massive, new 
Federal bureaucracy to deal with an important priority? First, it was 
the expansion of the EPA and cap-and-trade to deal with climate change.
  The Acting CHAIR. The time of the gentleman has expired.
  Mr. FRANK of Massachusetts. I yield 1\1/2\ minutes to the gentleman 
from Maryland (Mr. Hoyer).
  Mr. HOYER. Ladies and gentlemen of the House, I want to, first of 
all, thank Mr. Minnick. Mr. Minnick is an extraordinarily able Member 
of this body, and he represents his district and our country well as a 
Member of the Congress of the United States.
  This amendment, I think, has brought up an important discussion on 
the perspectives that we all have. I am one of those who believes that 
previous administrations had two very deep failures:
  One was fiscal irresponsibility. We did not pay for what we bought, 
even at times when we said the economy was in good shape. We continued 
to borrow at record rates, taking a $5.6 trillion surplus and turning 
it into a $10 trillion deficit.
  The other major failure, I think, of the previous administration was 
regulatory neglect. It had the power, as Chairman Frank has just 
pointed out, in a 1994 bill, to intervene, to try to put a check on two 
things--number one, on subprime lending. It did not. Mr. Greenspan 
testified just a couple of years ago that he thought that it was a 
mistake. He thought people would not take risks beyond that which were 
appropriate, and therefore, did not step in to regulate the subprime 
market. As a result, we confronted crisis.
  The second big bipartisan mistake was with the Clinton administration 
and the Republican Congress. The Clinton administration was, obviously, 
led by President Clinton and Phil Gramm in the Senate. They said, We 
don't need to look at the derivatives market. The derivatives market 
will take care of itself. The head of the CFTC advised heavily and 
tried on her own authority, because she had the authority, to regulate 
the derivatives market.
  The Congress stepped in, and I think I probably voted for the bill. 
It was an extraordinary mistake on my part. Phil Gramm led the effort 
which said, No, we don't need to impede this robust market that was 
apparently making all of us so much money.
  Now, Mr. Frank advises me--and I, frankly, am not an expert on it--
that most of the employees of which we are talking are going to be 
transferred employees, not new employees.
  On regulatory neglect, I think the administration did this: They 
said, essentially, The free market left to its own devices will grow 
the economy and will create jobs, and we ought not to impede that 
growth and that expansion. As a result of taking the referee off the 
field, all the little guys got trampled on. That's not unusual. I 
guarantee you, if you take the referee off the football field, the 
split end is going to leave a second before the ball is hiked, not 
because the split end is a bad person but because the split end is in a 
competitive field and wants to take an advantage. We don't have to cast 
aspersions here, but people want to take advantage.
  The philosophy of the Bush administration was: Don't get in the way. 
Regulation is bad. It undermines business. It undermines growth. Your 
no-cost-jobs program at its heart says, Get out of the way. Reduce 
regulation. We have a real difference on this issue.
  Franklin Roosevelt came in and said, The reason we had a stock market

[[Page 31391]]

crash is because there were no referees. Under his leadership, we 
created a lot of referees. Very frankly, for 60 or 70 years, they kept 
this country pretty much on track, but we got way off track. My 
friends, when you wring your hands about the cost of this referee, 
which is called the Consumer Financial Protection Agency--and I don't 
accept the costs that you use, but let's say there is a significant 
cost. Let's say it's a couple of billion dollars. You say it's $4 
billion. Let's just say, for the sake of argument, that it's a couple 
of billion dollars.

                              {time}  1200

  It pales into insignificance in the $1.5 trillion that we have 
borrowed to get this country out of the deep, deep, deep hole caused by 
the failure to regulate properly. And it wasn't the rich guys on Wall 
Street that paid that price; it was every one of our taxpayers that 
paid that price.
  So when you talk about cost, the cost of doing nothing, the cost of 
not having a referee on the field, skews the game so badly that the 
little guys, the guys who sent us here, the guys who asked us to 
protect them from those over which they have no power to protect, they 
said, Protect us.
  That is what this debate is about. The administration has sent down 
and said, Look, the SEC has its responsibility, the FDIC has its 
responsibility, CFTC has its responsibility, all have responsibility to 
make sure that our economy can grow, that trading markets can be open, 
honest, transparent and fair.
  They look to the people who are in those markets. Most of the people 
are not in those markets. They are our people, the little people, the 
average guy who goes to work, works hard, who tries to pay his 
mortgage, keep his family fed and clothed and his kids educated.
  He doesn't know about what all these guys are doing in the 
derivatives market. Nobody knew what was going on. The people who were 
investing in the derivatives market didn't know what was going on. 
There was no oversight.
  Madam Chair, the distinguished lady from Prince George's County, 
Maryland; Montgomery County, Donna Edwards, as we know, one of the 
central causes of our economic crisis, as I have said, was abusive 
consumer lending, signing Americans up for loans that they had no way 
of paying back. Nobody said, Time out; you're offsides; penalty. Nobody 
said that.
  Why? Because if we did that, that would impede business. That would 
undermine the growth of this free market economy. That's why we have 
antitrust laws, so that we don't have some big guy ultimately take it 
all, because they can underprice and shove out. We saw that with, 
frankly, our friends in Microsoft who did an extraordinary job in 
building our economy, but at some point in time said, Time out, you've 
got to have competitors in this business.
  For years, that practice went ignored by Washington regulators. And 
for a financial sector that placed massive bets on subprime mortgages, 
the results were eventually and tragically, for our people, 
catastrophic. The same abusive practices are at work in payday lending, 
in money transfers, and in many credit card policies, as Chairman Frank 
has so ably pointed out.
  In each case, Americans can wind up trapped in debt. While we do 
expect responsibility from anyone taking out a loan, we also must 
ensure that those loans are fair, transparent and written in plain 
language.
  I'm a Georgetown lawyer. I think I'm reasonably bright. I've gone to 
real estate settlements and we have all gotten these forms and 
disclosures. I bet there is nobody here who has gone to a settlement 
who has read all those papers. Period. I think they are way too much 
paper, because I don't think, even if they read it they would 
understand it. Very frankly, if they read it, understood it and didn't 
like paragraph 5, called up their lender and said, I don't like 
paragraph 5, the lender would say, That's fine, you don't get the 
money. You sign it or else.
  They're counting on us. This is a time when they are counting on us. 
This is a time when we can respond. That is exactly what the Consumer 
Financial Protection Agency would do. That is its purpose, to protect 
them.
  I understand there are concerns about it, and I congratulate Mr. 
Minnick for raising this issue and I appreciate his perspective. I 
simply disagree. It would take up the oversight responsibility that I 
think has been abandoned. It would safeguard consumers from 
exploitation and it would protect our economy from another collapse.
  On the face of it, abandoning the CFPA and replacing it with a 
Consumer Financial Protection Council sounds like a superficial change, 
but in my opinion it is a very clear substantive change and not one 
that I would support. The council would be made up of 12 existing 
regulators who have already demonstrated, not the individuals, but the 
institutions, that they did not step up to the plate and say, you're 
offside; there's a penalty.
  Rather than concentrating a wide range of oversight functions in a 
single body as a CFPA would do, the council would be an unwieldy and 
slow-moving bureaucracy. We talk about bureaucracy, we want somebody to 
focus and have a singular responsibility of making sure people don't 
get offsides so the little guys get hurt. It would not enhance, in my 
opinion, national consumer protection laws. It would undo this bill's 
expanded protections over the abusive practices that endanger the 
economic security of millions. Those abusive practices did lasting 
damage to Americans' lives, and we cannot let them down by watering 
down this bill.
  I want to congratulate Chairman Frank. I want to congratulate the 
members of the committee on both sides of the aisle. This, I think, is 
a critical decision that we will make. Americans sent us here to, in 
effect, be their referee, to call time out, to say we want to make sure 
the game is fair. We want to make sure that the little guy doesn't get 
hurt, with all due respect to my friend, who I think does an 
extraordinary job. On this we disagree.
  I ask the Members of this House to reject the Minnick amendment.
  The Acting CHAIR. All time for debate has expired.
  The question is on the amendment offered by the gentleman from Idaho 
(Mr. Minnick).
  The question was taken; and the Acting Chair announced that the ayes 
appeared to have it.
  Mr. FRANK of Massachusetts. Madam Chair, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Idaho will 
be postponed.


          Amendment No. 36, as Modified, Offered by Mr. Bachus

  The Acting CHAIR. It is now in order to consider amendment No. 36 
printed in House Report 111-370, as modified by the order of the House 
of December 10, 2009.
  Mr. BACHUS. Madam Chair, I have an amendment at the desk made in 
order under the rule.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment in the nature of a substitute offered by Mr. 
     Bachus, as modified:
       Strike all after the enacting clause and insert the 
     following:

     SEC. 1. SHORT TITLE.

       This Act may be cited as the ``Consumer and Taxpayer 
     Protection Act of 2009''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

                     TITLE I--NO MORE BAILOUTS ACT

Sec. 1001. Short title.
Sec. 1002. Amendments to title 28 of the United States Code.
Sec. 1003. Amendments to title 11 of the United States Code.
Sec. 1004. Effective date; application of amendments.
Sec. 1005. Reforms of section 13 emergency powers.
Sec. 1006. Establishment of Market Stability and Capital Adequacy 
              Board.
Sec. 1007. Functions of Board.
Sec. 1008. Powers of Board.
Sec. 1009. Responsibilities of Federal functional regulators.

[[Page 31392]]

Sec. 1010. Staff of Board.
Sec. 1011. Compensation and travel expenses.

 TITLE II--FINANCIAL INSTITUTIONS CONSUMER PROTECTION AND EXAMINATION 
                                COUNCIL

Sec. 2001. Short title.
Sec. 2002. Definitions.
Sec. 2003. Financial Institutions Consumer Protection and Examination 
              Council.
Sec. 2004. Office of consumer protection.
Sec. 2005. State enforcement authority.
Sec. 2006. Unfair or deceptive acts or practices authority transferred.
Sec. 2007. Equality of consumer protection functions; Consumer 
              protection divisions.
Sec. 2008. Prohibition on charter conversions while under regulatory 
              sanction.

                    TITLE III--ANTI-FRAUD PROVISIONS

Sec. 3001. Authority to impose civil penalties in cease and desist 
              proceedings.
Sec. 3002. Formerly associated persons.
Sec. 3003. Collateral bars.
Sec. 3004. Unlawful margin lending.
Sec. 3005. Nationwide service of process.
Sec. 3006. Reauthorization of the Financial Crimes Enforcement Network.
Sec. 3007. Fair fund improvements.

             TITLE IV--OVER-THE-COUNTER DERIVATIVES MARKETS

Sec. 4001. Short title.

          Subtitle A--Amendments to the Commodity Exchange Act

Sec. 4100. Definitions.
Sec. 4101. Swap repositories.
Sec. 4102. Margin for swaps between swaps dealers and major swap 
              participants.
Sec. 4103. Segregation of assets held as collateral in swap 
              transactions.

     Subtitle B--Amendments to the Securities Exchange Act of 1934

Sec. 4201. Definitions.
Sec. 4202. Swap repositories.
Sec. 4203. Margin requirements.
Sec. 4204. Segregation of assets held as collateral in swap 
              transactions.

                     Subtitle C--Common Provisions

Sec. 4301. Report to the congress.
Sec. 4302. Capital requirements.
Sec. 4303. Centralized clearing.
Sec. 4304. Definitions.

   TITLE V--CORPORATE AND FINANCIAL INSTITUTION COMPENSATION FAIRNESS

Sec. 5001. Short title.
Sec. 5002. Shareholder vote on executive compensation.
Sec. 5003. Compensation committee independence.

                    TITLE VI--CREDIT RATING AGENCIES

Sec. 6001. Changes to designation.
Sec. 6002. Removal of statutory references to credit ratings.
Sec. 6003. Review of reliance on ratings.

           TITLE VII--GOVERNMENT-SPONSORED ENTERPRISES REFORM

Sec. 7001. Short title.
Sec. 7002. Definitions.
Sec. 7003. Termination of current conservatorship.
Sec. 7004. Limitation of enterprise authority upon emergence from 
              conservatorship.
Sec. 7005. Requirement to periodically renew charter until wind down 
              and dissolution.
Sec. 7006. Required wind down of operations and dissolution of 
              enterprise.

                  TITLE VIII--FEDERAL INSURANCE OFFICE

Sec. 8001. Short title.
Sec. 8002. Federal Insurance Office established.
Sec. 8003. Report on global reinsurance market.
Sec. 8004. Study on modernization and improvement of insurance 
              regulation in the United States.

                     TITLE I--NO MORE BAILOUTS ACT

     SEC. 1001. SHORT TITLE.

       This title may be cited as the ``No More Bailouts Act of 
     2009''.

     SEC. 1002. AMENDMENTS TO TITLE 28 OF THE UNITED STATES CODE.

       Title 28 of the United States Code is amended--
       (1) in section 1408 by striking ``section 1410'' and 
     inserting ``sections 1409A and 1410'',
       (2) by inserting after section 1409 the following:

     ``Sec. 1409A. Venue of cases involving non-bank financial 
       institutions

       ``A case under chapter 14 may be commenced in the district 
     court of the United States for the district--
       ``(1) in which the debtor has its principal place of 
     business in the United States, principal assets in the United 
     States, or in which there is pending a case under title 11 
     concerning the debtor's affiliate or subsidiary, if a Federal 
     Reserve Bank is located in that district;
       ``(2) if venue does not exist under paragraph (1), in which 
     there is a Federal Reserve Bank and in a Federal Reserve 
     district in which the debtor has its principal place of 
     business in the United States, principal assets in the United 
     States, or in which there is pending a case under title 11 
     concerning the debtor's affiliate or subsidiary; or
       ``(3) if venue does not exist under paragraph (1) or (2), 
     in which there is a Federal Reserve Bank and in a Federal 
     circuit adjacent to the Federal circuit in which the debtor 
     has its principal place of business or principal assets in 
     the United States.'', and
       (3) by amending the table of sections of chapter 87 of such 
     title to insert after the item relating to section 1408 the 
     following:

``1409A. Venue of cases involving non-bank financial institutions.''.

     SEC. 1003. AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE.

       (a) Definitions.--Section 101 of title 11, United States 
     Code, is amended--
       (1) by inserting after paragraph (26) the following:
       ``(26A) The term `functional regulator' means the Federal 
     regulatory agency with the primary Federal regulatory 
     authority over the debtor, such as an agency listed in 
     section 509 of the Gramm-Leach-Bliley Act.'',
       (2) by redesignating paragraphs (38A) and (38B) as 
     paragraphs (38B) and (38C), respectively,
       (3) by inserting after paragraph (38) the following:
       ``(38A) the term `Market Stability and Capital Adequacy 
     Board' means the entity established in section 1006 of the No 
     More Bailouts Act of 2009.'', and
       (4) by inserting after paragraph (40) the following:
       ``(40A) The term `non-bank financial institution' means an 
     institution the business of which is engaging in financial 
     activities that is not an insured depository institution.''.
       (b) Applicability of Chapters.--Section 103 of title 11, 
     United States Code, is amended--
       (1) in subsection (a) by striking ``13'' and inserting 
     ``13, and 14'',
       (2) by redesignating subsection (k) as subsection (l), and
       (3) by inserting after subsection (j) the following:
       ``(k) Chapter 14 applies only in a case under such 
     chapter.''.
       (c) Who May Be a Debtor.--Section 109 of title 11, United 
     States Code, is amended--
       (1) in subsection (b)--
       (A) in paragraph (2) by striking ``or'' at the end,
       (B) in paragraph (3) by striking the period at the end and 
     insert and inserting ``; or'', and
       (C) by adding at the end the following:
       ``(4) a non-bank financial institution that has not been a 
     debtor under chapter 14 of this title.'',
       (2) in subsection (d) by striking ``or commodity broker'' 
     and inserting ``, commodity broker, or a non-bank financial 
     institution'', and
       (3) by adding at the end the following:
       ``(i) Only a non-bank financial institution may be a debtor 
     under chapter 14 of this title.''.
       (d) Involuntary Cases.--Section 303 of title 11, the United 
     States Code, is amended--
       (1) in subsection (a) by striking ``or 11'' and inserting 
     ``, 11, or 14'', and
       (2) in subsection (b) by striking ``or 11'' and inserting 
     ``, 11, or 14''.
       (e) Obtaining Credit.--Section 364 of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(g) Notwithstanding any other provision of this section, 
     the trustee may not, and the court may not authorize the 
     trustee to, obtain credit, if the source of that credit 
     either directly or indirectly is the United States.''.
       (f) Chapter 14.--Title 11, United States Code, is amended--
       (1) by inserting the following after chapter 13:

     ``CHAPTER 14--ADJUSTMENT TO THE DEBTS OF A NON-BANK FINANCIAL 
                              INSTITUTION

``1401. Inapplicability of other sections.
``1402. Applicability of chapter 11 to cases under this chapter.
``1403. Prepetition consultation.
``1404. Appointment of trustee.
``1405. Right to be heard.
``1406. Right to communicate.
``1407. Exemption with respect to certain contracts or agreements.
``1408. Conversion or dismissal.

     ``Sec. 1401. Inapplicability of other sections

       ``Except as provided in section 1407, sections 362(b)(6), 
     362(b)(7), 362(b)(17), 546(e), 546(f), 546(g), 555, 556, 559, 
     560, and 561 do not apply in a case under this chapter.

     ``Sec. 1402. Applicability of chapter 11 to cases under this 
       chapter

       ``With the exception of sections 1104(d), 1109, 1112(a), 
     1115, and 1116, subchapters I, II, and III of chapter 11 
     apply in a case under this chapter.

     ``Sec. 1403. Prepetition consultation

       ``(a) Subject to subsection (b)--
       ``(1) a non-bank financial institution may not be a debtor 
     under this chapter unless that institution has, at least 10 
     days prior to the date of the filing of the petition by such 
     institution, taken part in the consultation described in 
     subsection (c); and
       ``(2) a creditor may not commence an involuntary case under 
     this chapter unless, at least 10 days prior to the date of 
     the filing of

[[Page 31393]]

     the petition by such creditor, the creditor notifies the non-
     bank financial institution, the functional regulator, and the 
     Market Stability and Capital Adequacy Board of its intent to 
     file a petition and requests a consultation as described in 
     subsection (c).
       ``(b) If the non-bank financial institution, the functional 
     regulator, and the Market Stability and Capital Adequacy 
     Board, in consultation with any agency charged with 
     administering a nonbankruptcy insolvency regime for any 
     component of the debtor, certify that the immediate filing of 
     a petition under section 301 or 303 is necessary, or that an 
     immediate filing would be in the interests of justice, a 
     petition may be filed notwithstanding subsection (a).
       ``(c) The non-bank financial institution, the functional 
     regulator, the Market Stability and Capital Adequacy Board, 
     and any agency charged with administering a nonbankruptcy 
     insolvency regime for any component of the debtor shall 
     engage in prepetition consultation in order to attempt to 
     avoid the need for the non-bank financial institution's 
     liquidation or reorganization in bankruptcy, to make any 
     liquidation or reorganization of the non-bank financial 
     institution under this title more orderly, or to aid in the 
     nonbankruptcy resolution of any of the non-bank financial 
     institution's components under its nonbankruptcy insolvency 
     regime. Such consultation shall specifically include the 
     attempt to negotiate forbearance of claims between the non-
     bank financial institution and its creditors if such 
     forbearance would likely help to avoid the commencement of a 
     case under this title, would make any liquidation or 
     reorganization under this title more orderly, or would aid in 
     the nonbankruptcy resolution of any of the non-bank financial 
     institution's components under its nonbankruptcy insolvency 
     regime. Additionally, the consultation shall consider 
     whether, if a petition is filed under section 301 or 303, the 
     debtor should file a motion for an exemption authorized by 
     section 1407.
       ``(d) The court may allow the consultation process to 
     continue for 30 days after the petition, upon motion by the 
     debtor or a creditor. Any post-petition consultation 
     proceedings authorized should be facilitated by the court's 
     mediation services, under seal, and exclude ex parte 
     communications.
       ``(e) The Market Stability and Capital Adequacy Board and 
     the functional regulator shall publish and transmit to 
     Congress a report documenting the course of any consultation. 
     Such report shall be published and transmitted to Congress 
     within 30 days of the conclusion of the consultation.
       ``(f) Nothing in this section shall be interpreted to set 
     aside any of the limitations on the use of Federal funds set 
     forth in the No More Bailouts Act of 2009 or the amendments 
     made by such Act.

     ``Sec. 1404. Appointment of trustee

       ``In applying section 1104 to a case under this chapter, if 
     the court orders the appointment of a trustee or an examiner, 
     if the trustee or an examiner dies or resigns during the case 
     or is removed under section 324, or if a trustee fails to 
     qualify under section 322, the functional regulator, in 
     consultation with the Market Stability and Capital Adequacy 
     Board, shall submit a list of five disinterested persons that 
     are qualified and willing to serve as trustees in the case 
     and the United States trustee shall appoint, subject to the 
     court's approval, one of such persons to serve as trustee in 
     the case.

     ``Sec. 1405. Right to be heard

       ``(a) The functional regulator, the Market Stability and 
     Capital Adequacy Board, the Federal Reserve, the Department 
     of the Treasury, the Securities and Exchange Commission, and 
     any domestic or foreign agency charged with administering a 
     nonbankruptcy insolvency regime for any component of the 
     debtor may raise and may appear and be heard on any issue in 
     a case under this chapter, but may not appeal from any 
     judgment, order, or decree entered in the case.
       ``(b) A party in interest, including the debtor, the 
     trustee, a creditors' committee, an equity security holders' 
     committee, a creditor, an equity security holder, or any 
     indenture trustee may raise, and may appear and be heard on, 
     any issue in a case under this chapter.

     ``Sec. 1406. Right to communicate

       ``The court is entitled to communicate directly with, or to 
     request information or assistance directly from, the 
     functional regulator, the Market Stability and Capital 
     Adequacy Board, the Board of Governors of the Federal Reserve 
     System, the Department of the Treasury, or any agency charged 
     with administering a nonbankruptcy insolvency regime for any 
     component of the debtor, subject to the rights of a party in 
     interest to notice and participation.

     ``Sec. 1407. Exemption with respect to certain contracts or 
       agreements

       ``(a) Subject to subsection (b)--
       ``(1) upon motion of the debtor, consented to by the Market 
     Stability and Capital Adequacy Board--
       ``(A) the debtor and the estate shall be exempt from the 
     operation of sections 362(b)(6), 362(b)(7), 362(b)(17), 
     546(e), 546(f), 546(g), 555, 556, 559, 560, and 561;
       ``(B) if the Market Stability and Capital Adequacy Board 
     consents to the filing of such motion by the debtor, the 
     Board shall inform the court of its reasons for consenting; 
     and
       ``(C) the debtor may limit its motion, or the board may 
     limit its consent, to exempt the debtor and the estate from 
     the operation of section 362(b)(6), 362(b)(7), 362(b)(17), 
     546(e), 546(f), 546(g), 555, 556, 559, 560, or 561, or any 
     combination thereof; and
       ``(2) if the Market Stability and Capital Adequacy Board 
     does not consent to the filing of a motion by the debtor 
     under paragraph (1), the debtor may file a motion to exempt 
     the debtor and the estate from the operation of sections 
     362(b)(6), 362(b)(7), 362(b)(17), 546(e), 546(f), 546(g), 
     555, 556, 559, 560, and 561, or any combination thereof.
       ``(b) The court shall commence a hearing on a motion under 
     subsection (a) not later than 5 days after the filing of the 
     motion to determine whether to maintain, terminate, annul, 
     modify, or condition the exemption under subsection (a)(1) 
     or, in the case of a motion under subsection (a)(2), grant 
     the exemption. The court shall request the filing or briefs 
     by the functional regulator and the Market Stability and 
     Capital Adequacy Board. The court shall decide the motion not 
     later than 5 days after commencing such hearing unless--
       ``(1) the parties in interest consent to a extension for a 
     specific period of time; or
       ``(2) except with respect to an exemption from the 
     operation of section 559, the court sua sponte extends for 5 
     additional days the period for decision if such extension 
     would be in the interests of justice or is required by 
     compelling circumstances.
       ``(c) The court shall maintain, terminate, annul, modify, 
     or condition the exemption under subsection (a)(1), or, in 
     the case of a motion under subsection (a)(2), grant the 
     exemption only upon showing of good cause. In determining 
     whether good cause has been shown, the court shall balance 
     the interests of both debtor and creditors while attempting 
     to preserve the debtor's assets for repayment and 
     reorganization of the debtors obligations, or to provide for 
     a more orderly liquidation.
       ``(d) For purposes of timing under section 562 of this 
     title, if a motion is filed under subsection (a)(1) or if a 
     motion is granted under subsection (a)(2), the date or dates 
     of liquidation, termination, or acceleration shall be 
     measured from the earlier of--
       ``(1) the actual date or dates of liquidation, termination, 
     or acceleration; or
       ``(2) the date on which a forward contract merchant, 
     stockbroker, financial institution, securities clearing 
     agency, repo participant, financial participant, master 
     netting agreement participant, or swap participant files a 
     notice with the court that it would have liquidated, 
     terminated, or accelerated a contract or agreement covered by 
     section 562 of this title had a stay under this section not 
     been in place.

     ``Sec. 1408. Conversion or dismissal

       ``In applying section 1112 to a case under this chapter, 
     the debtor may convert a case under this chapter to a case 
     under chapter 7 of this title if the debtor may be a debtor 
     under such chapter unless the debtor is not a debtor in 
     possession.'', and
       (2) by amending the table of chapters of such title by 
     adding at the end the following:

``14. Adjustment to the Debts of a Non-Bank Financial Instit1401''.....

     SEC. 1004. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

       (a) Effective Date.--Except as provided in subsection (b), 
     this title and the amendments made by this title shall take 
     effect on the date of the enactment of this title.
       (b) Application of Amendments.--The amendments made by this 
     title shall apply only with respect to cases commenced under 
     title 11 of the United States Code on or after the date of 
     the enactment of this title.

     SEC. 1005. REFORMS OF SECTION 13 EMERGENCY POWERS.

       (a) Restrictions on Emergency Powers.--The third 
     undesignated paragraph of section 13 of the Federal Reserve 
     Act is amended--
       (1) by striking ``In unusual and exigent'' and inserting 
     the following:
       ``(3) Emergency authority.--
       ``(A) In general.--In unusual and exigent''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) Requirement for broad availability of discounts.--
     Subject to the limitations provided under subparagraph (A), 
     any authorization made pursuant to the authority provided 
     under subparagraph (A) shall require discounts to be made 
     broadly available to individuals, partnerships, and 
     corporations within the market sector for which such 
     authorization is being made.
       ``(C) Transparency and oversight.--
       ``(i) Secretary of the treasury approval required; notice 
     to the congress.--No authorization may be made pursuant to 
     the authority provided under subparagraph (A) unless--

       ``(I) such authorization is first approved by the Secretary 
     of the Treasury; and
       ``(II) the Secretary of the Treasury issues a notice to the 
     Congress detailing what authorization the Secretary has 
     approved.

       ``(ii) Programs moved on-budget after 90 days.--On and 
     after the date that is 90 days after the date on which any 
     authorization is made pursuant to the authority provided

[[Page 31394]]

     under subparagraph (A), all receipts and disbursements 
     resulting from such authorization shall be counted as new 
     budget authority, outlays, receipts, or deficit or surplus 
     for purposes of--

       ``(I) the budget of the United States Government as 
     submitted by the President;
       ``(II) the congressional budget; and
       ``(III) the Balanced Budget and Emergency Deficit Control 
     Act of 1985.

       ``(D) Joint resolution of disapproval.--
       ``(i) In general.--With respect to an authorization made 
     pursuant to the authority provided under subparagraph (A), 
     if, during the 90-day period beginning on the date the 
     Congress receives a notice described under subparagraph 
     (C)(i)(II) with respect to such authorization, there is 
     enacted into law a joint resolution disapproving such 
     authorization, any action taken under such authorization must 
     be discontinued and unwound not later than the end of the 
     180-day period beginning on the date that such authorization 
     was made.
       ``(ii) Contents of joint resolution.--For the purpose of 
     this paragraph, the term `joint resolution' means only a 
     joint resolution--

       ``(I) that is introduced not later than 3 calendar days 
     after the date on which the notice referred to in clause (i) 
     is received by the Congress;
       ``(II) which does not have a preamble;
       ``(III) the title of which is as follows: `Joint resolution 
     relating to the disapproval of authorization under the 
     emergency powers of the Federal Reserve Act'; and
       ``(IV) the matter after the resolving clause of which is as 
     follows: `That Congress disapproves the authorization 
     contained in the notice submitted to the Congress by the 
     Secretary of the Treasury on the date of _______ relating to 
     _______.' (The blank spaces being appropriately filled in.).

       ``(E) Fast track consideration in house of 
     representatives.--
       ``(i) Reconvening.--Upon receipt of a notice referred to in 
     subparagraph (D)(i), the Speaker, if the House would 
     otherwise be adjourned, shall notify the Members of the House 
     that, pursuant to this section, the House shall convene not 
     later than the second calendar day after receipt of such 
     report.
       ``(ii) Reporting and discharge.--Any committee of the House 
     of Representatives to which a joint resolution is referred 
     shall report it to the House not later than 5 calendar days 
     after the date of receipt of the notice referred to in 
     subparagraph (D)(i). If a committee fails to report the joint 
     resolution within that period, the committee shall be 
     discharged from further consideration of the joint resolution 
     and the joint resolution shall be referred to the appropriate 
     calendar.
       ``(iii) Proceeding to consideration.--After each committee 
     authorized to consider a joint resolution reports it to the 
     House or has been discharged from its consideration, it shall 
     be in order, not later than the sixth day after Congress 
     receives the notice referred to in subparagraph (D)(i), to 
     move to proceed to consider the joint resolution in the 
     House. All points of order against the motion are waived. 
     Such a motion shall not be in order after the House has 
     disposed of a motion to proceed on the joint resolution. The 
     previous question shall be considered as ordered on the 
     motion to its adoption without intervening motion. The motion 
     shall not be debatable. A motion to reconsider the vote by 
     which the motion is disposed of shall not be in order.
       ``(iv) Consideration.--The joint resolution shall be 
     considered as read. All points of order against the joint 
     resolution and against its consideration are waived. The 
     previous question shall be considered as ordered on the joint 
     resolution to its passage without intervening motion except 
     two hours of debate equally divided and controlled by the 
     proponent and an opponent. A motion to reconsider the vote on 
     passage of the joint resolution shall not be in order.
       ``(F) Fast track consideration in senate.--
       ``(i) Reconvening.--Upon receipt of a notice referred to in 
     subparagraph (D)(i), if the Senate has adjourned or recessed 
     for more than 2 days, the majority leader of the Senate, 
     after consultation with the minority leader of the Senate, 
     shall notify the Members of the Senate that, pursuant to this 
     section, the Senate shall convene not later than the second 
     calendar day after receipt of such message.
       ``(ii) Placement on calendar.--Upon introduction in the 
     Senate, the joint resolution shall be placed immediately on 
     the calendar.
       ``(iii) Floor consideration.--

       ``(I) In general.--Notwithstanding Rule XXII of the 
     Standing Rules of the Senate, it is in order at any time 
     during the period beginning on the 4th day after the date on 
     which Congress receives a notice referred to in subparagraph 
     (D)(i) and ending on the 6th day after the date on which 
     Congress receives a notice referred to in subparagraph (D)(i) 
     (even though a previous motion to the same effect has been 
     disagreed to) to move to proceed to the consideration of the 
     joint resolution, and all points of order against the joint 
     resolution (and against consideration of the joint 
     resolution) are waived. The motion to proceed is not 
     debatable. The motion is not subject to a motion to postpone. 
     A motion to reconsider the vote by which the motion is agreed 
     to or disagreed to shall not be in order. If a motion to 
     proceed to the consideration of the resolution is agreed to, 
     the joint resolution shall remain the unfinished business 
     until disposed of.
       ``(II) Debate.--Debate on the joint resolution, and on all 
     debatable motions and appeals in connection therewith, shall 
     be limited to not more than 10 hours, which shall be divided 
     equally between the majority and minority leaders or their 
     designees. A motion further to limit debate is in order and 
     not debatable. An amendment to, or a motion to postpone, or a 
     motion to proceed to the consideration of other business, or 
     a motion to recommit the joint resolution is not in order.
       ``(III) Vote on passage.--The vote on passage shall occur 
     immediately following the conclusion of the debate on a joint 
     resolution, and a single quorum call at the conclusion of the 
     debate if requested in accordance with the rules of the 
     Senate.
       ``(IV) Rulings of the chair on procedure.--Appeals from the 
     decisions of the Chair relating to the application of the 
     rules of the Senate, as the case may be, to the procedure 
     relating to a joint resolution shall be decided without 
     debate.

       ``(G) Rules relating to senate and house of 
     representatives.--
       ``(i) Coordination with action by other house.--If, before 
     the passage by one House of a joint resolution of that House, 
     that House receives from the other House a joint resolution, 
     then the following procedures shall apply:

       ``(I) The joint resolution of the other House shall not be 
     referred to a committee.
       ``(II) With respect to a joint resolution of the House 
     receiving the resolution--

       ``(aa) the procedure in that House shall be the same as if 
     no joint resolution had been received from the other House; 
     but
       ``(bb) the vote on passage shall be on the joint resolution 
     of the other House.
       ``(ii) Treatment of joint resolution of other house.--If 
     one House fails to introduce or consider a joint resolution 
     under this section, the joint resolution of the other House 
     shall be entitled to expedited floor procedures under this 
     section.
       ``(iii) Treatment of companion measures.--If, following 
     passage of the joint resolution in the Senate, the Senate 
     then receives the companion measure from the House of 
     Representatives, the companion measure shall not be 
     debatable.
       ``(iv) Vetoes.--If the President vetoes the joint 
     resolution, debate on a veto message in the Senate under this 
     section shall be 1 hour equally divided between the majority 
     and minority leaders or their designees.
       ``(v) Rules of house of representatives and senate.--This 
     subparagraph and subparagraphs (D), (E), and (F) are enacted 
     by Congress--

       ``(I) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such it is 
     deemed a part of the rules of each House, respectively, but 
     applicable only with respect to the procedure to be followed 
     in that House in the case of a joint resolution, and it 
     supersedes other rules only to the extent that it is 
     inconsistent with such rules; and
       ``(II) with full recognition of the constitutional right of 
     either House to change the rules (so far as relating to the 
     procedure of that House) at any time, in the same manner, and 
     to the same extent as in the case of any other rule of that 
     House.''.

       (b) Current Programs Moved On-Budget.--Not later than 90 
     days after the date of the enactment of this title, all 
     receipts and disbursements resulting from any authorization 
     made before the date of the enactment of this title pursuant 
     to the authority granted by the third undesignated paragraph 
     of section 13 of the Federal Reserve Act shall be counted as 
     new budget authority, outlays, receipts, or deficit or 
     surplus for purposes of--
       (1) the budget of the United States Government as submitted 
     by the President;
       (2) the congressional budget; and
       (3) the Balanced Budget and Emergency Deficit Control Act 
     of 1985.

     SEC. 1006. ESTABLISHMENT OF MARKET STABILITY AND CAPITAL 
                   ADEQUACY BOARD.

       (a) In General.--There is hereby established the Market 
     Stability and Capital Adequacy Board (hereafter in this title 
     referred to as the ``Board'') as an independent establishment 
     in the Executive Branch.
       (b) Constitution of Board.--Subject to paragraph (4), the 
     Board shall have 12 members as follows:
       (1) Public members.--The following shall be members of the 
     Board--
       (A) The Secretary of the Treasury.
       (B) The Chairman of the Board of Governors of the Federal 
     Reserve System.
       (C) The Chairman of the Securities and Exchange Commission.
       (D) The Chairperson of the Federal Deposit Insurance 
     Corporation.
       (E) The Chairman of the Commodity Futures Trading 
     Commission.
       (F) The Comptroller of the Currency.
       (G) The Director of the Office of Thrift Supervision.
       (2) Private members.--The Board shall also have 5 members 
     appointed by the President, by and with the advice and 
     consent of

[[Page 31395]]

     the Senate, who shall be appointed from among individuals 
     who--
       (A) are specially qualified to serve on the Board by virtue 
     of their education, training, and experience; and
       (B) are not officers or employees of the Federal 
     Government, including the Board of Governors of the Federal 
     Reserve System.
       (3) Chairperson.--The Secretary of the Treasury shall serve 
     as the Chairperson of the Board.
       (4) Director of fhfa as interim member.--Until such time as 
     the charters of the Federal National Mortgage Association and 
     the Federal Home Loan Mortgage Corporation are both repealed 
     pursuant to section 7006(d), the Board shall consist of 13 
     members with the Director of the Federal Housing Finance 
     Agency serving as a public member under paragraph (1).
       (c) Appointments.--
       (1) Term.--
       (A) In general.--Each appointed member shall be appointed 
     for a term of 5 years.
       (B) Staggered terms.--Of the members of the Board first 
     appointed under subsection (b)(2), as designated by the 
     President at the time of appointment--
       (i) 1 shall be appointed for a term of 5 years;
       (ii) 1 shall be appointed for a term of 4 years;
       (iii) 1 shall be appointed for a term of 3 years;
       (iv) 1 shall be appointed for a term of 2 years; and
       (v) 1 shall be appointed for a term of 1 year.
       (2) Interim appointments.--Any member appointed to fill a 
     vacancy occurring before the expiration of the term for which 
     such member's predecessor was appointed shall be appointed 
     only for the remainder of such term.
       (3) Continuation of service.--Each appointed member may 
     continue to serve after the expiration of the term of office 
     to which such member was appointed until a successor has been 
     appointed and qualified.
       (4) Reappointment to a 2nd term.--Each member appointed to 
     a term on the Board under subsection (b)(2), including an 
     interim appointment under paragraph (2), may be reappointed 
     by the President to serve 1 additional term.
       (d) Vacancy.--
       (1) In general.--Any vacancy on the Board shall be filled 
     in the manner in which the original appointment was made.
       (2) Acting officials may serve.--In the event of a vacancy 
     in any position listed in subsection (b)(1) and pending the 
     appointment of a successor, or during the absence or 
     disability of the individual serving in such position, any 
     acting official in such position shall be a member of the 
     Board while such vacancy, absence or disability continues and 
     the acting official continues acting in such position.
       (e) Ineligibility for Other Offices.--
       (1) Postservice restriction.--No member of the Board may 
     hold any office, position, or employment in any financial 
     institution or affiliate of a financial institution during--
       (A) the time such member is in office; and
       (B) the 2-year period beginning on the date such member 
     ceases to serve on the Board.
       (2) Certification.--Upon taking office, each member of the 
     Board shall certify under oath that such member has complied 
     with this subsection and such certification shall be filed 
     with the secretary of the Board.
       (f) Qualifications; Initial Meeting.--
       (1) Political party affiliation.--Not more than 3 members 
     of the Board appointed under subsection (b)(2) shall be from 
     the same political party.
       (2) Qualifications generally.--It is the sense of the 
     Congress that individuals appointed to the Commission should 
     be prominent United States citizens, with national 
     recognition and significant depth of experience commensurate 
     with the duties of the Board.
       (3) Specific appointment qualifications for certain 
     appointed members.--
       (A) State bank.--Of the members appointed to the Board 
     under subsection (b)(2), at least 1 shall be appointed from 
     among individuals who have had experience as a State bank 
     supervisor or senior management executive with a State 
     depository institution.
       (B) Insurance commissioner.--Of the members appointed to 
     the Board under subsection (b)(2), at least 1 shall be 
     appointed from among individuals who have served as a State 
     insurance commissioner or supervisor.
       (4) Initial meeting.--The Board shall meet and begin the 
     operations of the Board as soon as practicable but not later 
     than the end of the 180-day period beginning the date of the 
     enactment of this title.
       (g) Quorum.--Four of the members of the Board designated 
     under subsection (b)(1) and 3 members of the Board appointed 
     under (b)(2) shall constitute a quorum.
       (h) Quarterly Meetings.--The Board shall meet upon the call 
     of the chairperson or a majority of the members at least once 
     in each calendar quarter

     SEC. 1007. FUNCTIONS OF BOARD.

       (a) Principal Functions.--The principal functions of the 
     Board shall be to--
       (1) monitor the interactions of various sectors of the 
     financial system; and
       (2) identify risks that could endanger the stability and 
     soundness of the system.
       (b) Specific Review Functions Included.--In carrying out 
     the functions described in subsection (a), the Board shall--
       (1) review financial industry data collected from the 
     appropriate functional regulators;
       (2) review insurance industry data, in coordination with 
     State insurance supervisors, for all lines of insurance other 
     than health insurance;
       (3) monitor government policies and initiatives;
       (4) review risk management practices within financial 
     regulatory agencies;
       (5) review capital standards set by the appropriate 
     functional regulators and make recommendations to ensure 
     capital and leverage ratios match risks regulated entities 
     are taking on;
       (6) review transparency and regulatory understanding of 
     risk exposures in the over-the-counter derivatives markets 
     and make recommendations regarding the appropriate clearing 
     of trades in those markets through central counterparties;
       (7) make recommendations regarding any government or 
     industry policies and practices that are exacerbating 
     systemic risk; and
       (8) take such other actions and make such other 
     recommendations as the Board, in the discretion of the Board, 
     determines to be appropriate.
       (c) Reports to Federal Functional Regulators and the 
     Congress.--The Board shall periodically make a report to the 
     Congress and the functional regulators on the findings, 
     conclusions, and recommendations of the Board in a manner and 
     within a time frame that allows the Congress and such 
     regulators to act to contain risks posed by specific firms, 
     industry practices, activities and interactions of entities 
     under different regulatory regimes, or government policies.
       (d) Testimony to Congress.--Not later than February 20 and 
     July 20 of each year, the Chairperson of the Board shall 
     testify to the Congress at semiannual hearings before the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives, about the state of systemic risk in the 
     financial services industry and proposals or recommendations 
     by the Board to address any undue risk.
       (e) Rule of Construction.--No provision of this title shall 
     be construed as giving the Board any enforcement authority 
     over any financial institution.

     SEC. 1008. POWERS OF BOARD.

       (a) Contracting.--The Board may, to such extent and in such 
     amounts as are provided in appropriation Acts, enter into 
     contracts to enable the Board to discharge its duties under 
     this title.
       (b)  Information From Federal Agencies.--
       (1) In general.--The Board may secure directly from any 
     executive department, agency, or independent establishment, 
     or any other instrumentality of the United States information 
     and recommendations for the purposes of this title.
       (2) Delivery of requested information.--Each executive 
     department, agency, or independent establishment, or any 
     other instrumentality of the United States shall, to the 
     extent authorized by law, furnish any information and 
     recommendations requested under paragraph (1) directly to the 
     Board, upon request made by the chairperson or any member 
     designated by a majority of the Commission.
       (3) Receipt, handling, storage, and dissemination.--
     Information shall only be received, handled, stored, and 
     disseminated by members of the Board and its staff consistent 
     with all applicable statutes, regulations, and Executive 
     orders.
       (c) Assistance From Federal Agencies.--
       (1) General services administration.--The Administrator of 
     General Services shall provide to the Board on a reimbursable 
     basis administrative support and other services for the 
     performance of the Commission's functions.
       (2) Other departments and agencies.--In addition to the 
     assistance prescribed in paragraph (1), departments and 
     agencies of the United States may provide to the Commission 
     such services, funds, facilities, staff, and other support 
     services as they may determine advisable and as may be 
     authorized by law, including agencies represented on the 
     Board under section 1006(b)(1).

     SEC. 1009. RESPONSIBILITIES OF FEDERAL FUNCTIONAL REGULATORS.

       (a) Federal Functional Regulator Defined.--For purposes of 
     this title, the term ``Federal functional regulator'' has the 
     same meaning as in section 509(2) of the Gramm-Leach-Bliley 
     Act, except that such term includes the Commodity Futures 
     Trading Commission.
       (b) Assessments and Reviews.--In order to address current 
     regulatory gaps, each Federal functional regulator shall, 
     before each quarterly meeting of the Board--
       (1) assess the effects on macroeconomic stability of the 
     activities of financial institutions that are subject to the 
     jurisdiction of such agency;
       (2) review how such financial institutions interact with 
     entities outside the jurisdiction of such agency; and
       (3) report the results of such assessment and review to the 
     Board, together with such recommendations for administrative 
     action as the agency determines to be appropriate.

[[Page 31396]]



     SEC. 1010. STAFF OF BOARD.

       (a) Appointment and Compensation.--The chairperson, in 
     accordance with rules agreed upon by the Board and title 5, 
     United States Code, may appoint and fix the compensation of a 
     staff director and such other personnel as may be necessary 
     to enable the Board to carry out its functions.
       (b) Detailees.--Any Federal Government employee may be 
     detailed to the Board and such detailee shall retain the 
     rights, status, and privileges of his or her regular 
     employment without interruption.
       (c) Consultant Services.--The Board may procure the 
     services of experts and consultants in accordance with 
     section 3109 of title 5, United States Code, but at rates not 
     to exceed the daily rate paid a person occupying a position 
     at level IV of the Executive Schedule under section 5315 of 
     title 5, United States Code.

     SEC. 1011. COMPENSATION AND TRAVEL EXPENSES.

       (a) Compensation.--Each member of the Board appointed under 
     section 1006(b)(2) may be compensated at not to exceed the 
     daily equivalent of the annual rate of basic pay in effect 
     for a position at level IV of the Executive Schedule under 
     section 5315 of title 5, United States Code, for each day 
     during which that member is engaged in the actual performance 
     of the duties of the Board.
       (b) Travel Expenses.--While away from their homes or 
     regular places of business in the performance of services for 
     the Board, members of the Board shall be allowed travel 
     expenses, including per diem in lieu of subsistence, in the 
     same manner as persons employed intermittently in the 
     Government service are allowed expenses under section 5703(b) 
     of title 5, United States Code.

 TITLE II--FINANCIAL INSTITUTIONS CONSUMER PROTECTION AND EXAMINATION 
                                COUNCIL

     SEC. 2001. SHORT TITLE.

       This title may be cited as the ``Financial Institutions 
     Consumer Protection and Examination Council Act of 2009''.

     SEC. 2002. DEFINITIONS.

       (a) Renaming Council.--The Federal Financial Institutions 
     Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is 
     amended by striking ``Financial Institutions Examination 
     Council'' each place it appears, except for in section 1001 
     of such Act, and inserting ``Financial Institutions Consumer 
     Protection and Examination Council''.
       (b) Definitions Relating to Consumer Protection.--Section 
     1003 of such Act (12 U.S.C. 3302) is amended--
       (1) in paragraph (2), by striking ``and''; and
       (2) by adding at the end the following new paragraphs:
       ``(4) the term `enumerated consumer laws' means--
       ``(A) the Alternative Mortgage Transaction Parity Act (12 
     U.S.C. 3801 et seq.);
       ``(B) the Community Reinvestment Act;
       ``(C) the Consumer Leasing Act;
       ``(D) the Electronic Funds Transfer Act (15 U.S.C. 1693 et 
     seq.);
       ``(E) the Equal Credit Opportunity Act (15 U.S.C. 1691 et 
     seq.);
       ``(F) the Fair Credit Billing Act;
       ``(G) the Fair Credit Reporting Act (15 U.S.C. 1681 et 
     seq.);
       ``(H) the Fair Debt Collection Practices Act (15 U.S.C. 
     1692 et seq.);
       ``(I) subsections (c), (d), (e), and (f) of section 43 of 
     the Federal Deposit Insurance Act (12 U.S.C. 1831t);
       ``(J) sections 502, 503, 504, 505, 506, 507, 508, and 509 
     of the Gramm-Leach-Bliley Act (15 U.S.C. 6802 et seq.);
       ``(K) the Home Mortgage Disclosure Act (12 U.S.C. 2801 et 
     seq.);
       ``(L) the Real Estate Settlement Procedures Act (12 U.S.C. 
     2601 et seq.);
       ``(M) the Secure and Fair Enforcement for Mortgage 
     Licensing Act (12 U.S.C. 5101 et seq.);
       ``(N) the Truth in Lending Act (15 U.S.C. 1601 et seq.);
       ``(O) the Truth in Savings Act (12 U.S.C. 4301 et seq.); 
     and
       ``(5) the term `expanded Board' means----
       ``(A) the members of the Council described under section 
     1004(a);
       ``(B) the Secretary of Housing and Urban Development;
       ``(C) the Chairman of the Securities and Exchange 
     Commission;
       ``(D) the Chairman of the Commodities Futures Trading 
     Commission;
       ``(E) the Chairman of the Federal Trade Commission;
       ``(F) the Director of the Federal Housing Finance Agency;
       ``(G) the Director of the Pension Benefit Guarantee 
     Corporation;
       ``(H) the Secretary of the Treasury;
       ``(I) the Secretary of Defense; and
       ``(J) the Secretary of Veterans' Affairs.''.
       (c) Definitions Related to the State Liaison Committee.--
     Section 1007 of such Act (12 U.S.C. 3306) is amended by 
     inserting after ``financial institutions'' the following: 
     ``and one representative of the National Association of 
     Insurance Commissioners''.

     SEC. 2003. FINANCIAL INSTITUTIONS CONSUMER PROTECTION AND 
                   EXAMINATION COUNCIL.

       (a) Consumer Protection Duties.--Section 1006 of the 
     Federal Financial Institutions Examination Council Act of 
     1978 (12 U.S.C. 3305) is amended by adding at the end the 
     following new subsection:
       ``(h) Consumer Protection Regulations.--
       ``(1) In general.--The Council shall study the need for 
     revised or new regulations for the protection of consumers 
     under the enumerated consumer laws and shall vote on 
     suggested model regulations that the Council determines 
     necessary for the protection of consumers under the 
     enumerated consumer laws.
       ``(2) Regulations issued by council members.--Not later 
     than the end of the 1-month period beginning on the date a 
     suggested model regulation is agreed to by the Council by a 
     majority vote of the members of the Council, the members of 
     the Council, other than the Chairman of the State Liaison 
     Committee, shall jointly issue regulations based on such 
     suggested model regulation, where applicable.
       ``(3) Expanded board required.--For purposes of any action 
     taken pursuant to this subsection and any reference to the 
     members of the Council under this subsection, the Council 
     shall consist of the expanded Board.
       ``(4) No council enforcement power.--No provision of this 
     subsection shall be construed as conferring any enforcement 
     authority to the Council.
       ``(5) Requirements for regulations proposed by the chairman 
     of the state liaison committee.--
       ``(A) In general.--The Chairman of the State Liaison 
     Committee may not propose any suggested model regulation for 
     the Council to vote on under this subsection unless such 
     proposed suggested model regulation is accompanied by a 
     certification from the Chairman of the State Liaison 
     Committee stating that more than half of the States support 
     such proposal.
       ``(B) Method of determination.--For purposes of this 
     paragraph, the Chairman of the State Liaison Committee shall 
     determine the method for determining if a State supports a 
     proposal.''.
       (b) Additional Staff.--Section 1008 of such Act (12 U.S.C. 
     3307) is amended by adding at the end the following new 
     subsection:
       ``(d) Consumer Protection Staff.--
       ``(1) In general.--At the request of the Council, any 
     member of the expanded Board, other than the Chairman of the 
     State Liaison Committee, may detail, on a reimbursable basis, 
     any of the personnel of that member's department or agency to 
     the Council to assist it in carrying out the Council's duties 
     under subsection (h).
       ``(2) Expanded board required.--When making any request 
     under this subsection, the Council shall consist of the 
     expanded Board.''.

     SEC. 2004. OFFICE OF CONSUMER PROTECTION.

       The Federal Financial Institutions Examination Council Act 
     of 1978 (12 U.S.C. 3301 et seq.) is amended by adding at the 
     end the following new section:

     ``SEC. 1012. OFFICE OF CONSUMER PROTECTION.

       ``(a) Office of Consumer Protection.--There is hereby 
     established within the Council an Office of Consumer 
     Protection (hereinafter in this section referred to as the 
     `Office').
       ``(b) Consumer Complaint Hotline and Website.--The Office 
     shall establish a toll-free hotline and a website for 
     consumers to contact regarding inquiries or complaints 
     related to consumer protection. Such hotline and website 
     shall then refer such inquiries or complaints to the 
     appropriate Council member, which will then respond to the 
     inquiry or complaint.
       ``(c) Disclosure Review.--Not less often than once every 7 
     years, the Office shall undertake a comprehensive review of 
     the rules and regulations regarding disclosures made by 
     entities under the jurisdiction of the members of the Council 
     to consumers. In making such review the Office shall perform 
     a cost and benefit analysis of each such disclosure and 
     determine if the policy of the members of the Council towards 
     such disclosure should remain the same or be revised.
       ``(d) Consumer Testing Requirement.--Before prescribing any 
     regulation pursuant to section 1006(h), the Council shall 
     have the Office carry out consumer testing with respect to 
     such proposed model regulation.
       ``(e) Periodic Review of Regulations.--
       ``(1) Review.--Not less than once every 7 years, the Office 
     shall undertake a comprehensive review of all regulations 
     issued by the members of the Council pursuant to section 
     1006(h)(2). In making such review, the Office shall perform a 
     cost and benefit analysis of each regulation and determine if 
     such regulation should remain the same or if such regulation 
     should be revised.
       ``(2) Report.--After performing a review required by 
     paragraph (1), the Office shall issue a report to the 
     Congress describing the review process, any determinations 
     made by the Office, and any revisions to regulations that the 
     Office determined were needed.''.

     SEC. 2005. STATE ENFORCEMENT AUTHORITY.

       (a) Enforcement of Council Regulations.--The Federal 
     Financial Institutions Examination Council Act of 1978 (12 
     U.S.C. 3301 et seq.), as amended by section 2004, is further 
     amended by adding at the end the following new section:

     ``SEC. 1013. STATE ENFORCEMENT AUTHORITY.

       ``The chief law enforcement officer of a State, or an 
     official or agency designated by a State, shall have the 
     authority to enforce any regulations issued by the members of

[[Page 31397]]

     the Council pursuant to section 1006(h)(2) against entities 
     regulated by such State.''.
       (b) Enforcement of State Consumer Protection Laws Against 
     National Banks and Thrifts.--Notwithstanding any other 
     provision of law, other than section 5240 of the Revised 
     Statutes and the comparable limitation on visitorial 
     authority applicable to federal savings associations, the 
     chief law enforcement officer of a State, or an official or 
     agency designated by a State, shall have the right to enforce 
     such State's non-preempted consumer protection laws against 
     national banks.

     SEC. 2006. UNFAIR OR DECEPTIVE ACTS OR PRACTICES AUTHORITY 
                   TRANSFERRED.

       Section 18(f)(1) of the Federal Trade Commission Act (15 
     U.S.C. 57a(f)(1)) is amended--
       (1) by striking ``(with respect to banks) and the Federal 
     Home Loan Bank Board (with respect to savings and loan 
     institutions described in paragraph (3))'' and inserting the 
     following: ``(with respect to entities described in paragraph 
     (2)(B)), the Comptroller of the Currency (with respect to 
     entities described in paragraph (2)(A)), the Board of 
     Directors of the Federal Deposit Insurance Corporation (with 
     respect to entities described under paragraph (2)(C)), the 
     Director of the Office of Thrift Supervision (with respect to 
     savings associations or any savings and loan institutions 
     described in paragraph (3)),'';
       (2) by striking ``each such Board'' and inserting ``each 
     such entity''; and
       (3) by striking ``any such Board'' and inserting ``any such 
     entity''.

     SEC. 2007. EQUALITY OF CONSUMER PROTECTION FUNCTIONS; 
                   CONSUMER PROTECTION DIVISIONS.

       (a) Equality of Consumer Protection Functions.--With 
     respect to each regulatory agency, the functions of such 
     agency related to consumer protection shall be of equal 
     importance to such agency as the other functions of such 
     agency.
       (b) Consumer Protection Divisions.--
       (1) In general.--There is hereby established within each 
     regulatory agency a consumer protection division.
       (2) Report.--The head of each consumer protection division 
     established under paragraph (1) shall submit an annual report 
     to the Congress detailing the performance of the regulatory 
     agency in which such division is located in enforcing the 
     consumer protection laws.
       (c) Regulatory Agency Defined.--For purposes of this 
     section, the term ``regulatory agency'' means the Office of 
     the Comptroller of the Currency, the Board of Governors of 
     the Federal Reserve System, the Federal Deposit Insurance 
     Corporation, the Office of Thrift Supervision, the National 
     Credit Union Administration, the Federal Trade Commission, 
     and the Department of Housing and Urban Development.

     SEC. 2008. PROHIBITION ON CHARTER CONVERSIONS WHILE UNDER 
                   REGULATORY SANCTION.

       With respect to an entity for which there is an appropriate 
     Federal banking agency, as such term is defined under section 
     3(q) of the Federal Deposit Insurance Act (12 U.S.C. 
     1813(q)), such agency shall issue regulations prohibiting 
     such an entity from converting the type of such entity's 
     charter during any time in which such entity is under a 
     regulatory sanction by such agency.

                    TITLE III--ANTI-FRAUD PROVISIONS

     SEC. 3001. AUTHORITY TO IMPOSE CIVIL PENALTIES IN CEASE AND 
                   DESIST PROCEEDINGS.

       (a) Under the Securities Act of 1933.--Section 8A of the 
     Securities Act of 1933 (15 U.S.C. 77h-1) is amended by adding 
     at the end the following new subsection:
       ``(g) Authority To Impose Money Penalties.--
       ``(1) Grounds for imposing.--In any cease-and-desist 
     proceeding under subsection (a), the Commission may impose a 
     civil penalty on a person if it finds, on the record after 
     notice and opportunity for hearing, that--
       ``(A) such person--
       ``(i) is violating or has violated any provision of this 
     title, or any rule or regulation thereunder; or
       ``(ii) is or was a cause of the violation of any provision 
     of this title, or any rule or regulation thereunder; and
       ``(B) such penalty is in the public interest.
       ``(2) Maximum amount of penalty.--
       ``(A) First tier.--The maximum amount of penalty for each 
     act or omission described in paragraph (1) shall be $6,500 
     for a natural person or $65,000 for any other person.
       ``(B) Second tier.--Notwithstanding paragraph (A), the 
     maximum amount of penalty for each such act or omission shall 
     be $65,000 for a natural person or $325,000 for any other 
     person if the act or omission described in paragraph (1) 
     involved fraud, deceit, manipulation, or deliberate or 
     reckless disregard of a regulatory requirement.
       ``(C) Third tier.--Notwithstanding paragraphs (A) and (B), 
     the maximum amount of penalty for each such act or omission 
     shall be $130,000 for a natural person or $650,000 for any 
     other person if--
       ``(i) the act or omission described in paragraph (1) 
     involved fraud, deceit, manipulation, or deliberate or 
     reckless disregard of a regulatory requirement; and
       ``(ii) such act or omission directly or indirectly resulted 
     in substantial losses or created a significant risk of 
     substantial losses to other persons or resulted in 
     substantial pecuniary gain to the person who committed the 
     act or omission.
       ``(3) Evidence concerning ability to pay.--In any 
     proceeding in which the Commission may impose a penalty under 
     this section, a respondent may present evidence of the 
     respondent's ability to pay such penalty. The Commission may, 
     in its discretion, consider such evidence in determining 
     whether such penalty is in the public interest. Such evidence 
     may relate to the extent of such person's ability to continue 
     in business and the collectability of a penalty, taking into 
     account any other claims of the United States or third 
     parties upon such person's assets and the amount of such 
     person's assets.''.
       (b) Under the Securities Exchange Act of 1934.--Subsection 
     (a) of section 21B of the Securities Exchange Act of 1934 (15 
     U.S.C. 78u-2(a)) is amended--
       (1) by striking ``(a) Commission Authority To Assess Money 
     Penalties.--In any proceeding'' and inserting the following:
       ``(a) Commission Authority To Assess Money Penalties.--
       ``(1) In general.--In any proceeding'';
       (2) by redesignating paragraphs (1) through (4) of such 
     subsection as subparagraphs (A) through (D), respectively and 
     moving such redesignated subparagraphs and the matter 
     following such subparagraphs 2 ems to the right; and
       (3) by adding at the end of such subsection the following 
     new paragraph:
       ``(2) Cease-and-desist proceedings.--In any proceeding 
     instituted pursuant to section 21C of this title against any 
     person, the Commission may impose a civil penalty if it 
     finds, on the record after notice and opportunity for 
     hearing, that such person--
       ``(A) is violating or has violated any provision of this 
     title, or any rule or regulation thereunder; or
       ``(B) is or was a cause of the violation of any provision 
     of this title, or any rule or regulation thereunder.''.
       (c) Under the Investment Company Act of 1940.--Paragraph 
     (1) of section 9(d) of the Investment Company Act of 1940 (15 
     U.S.C. 80a-9(d)(1)) is amended--
       (1) by striking ``(1) Authority of commission.--In any 
     proceeding'' and inserting the following:
       ``(1) Authority of commission.--
       ``(A) In general.--In any proceeding'';
       (2) by redesignating subparagraphs (A) through (C) of such 
     paragraph as clauses (i) through (iii), respectively and by 
     moving such redesignated clauses and the matter following 
     such subparagraphs 2 ems to the right; and
       (3) by adding at the end of such paragraph the following 
     new subparagraph:
       ``(B) Cease-and-desist proceedings.--In any proceeding 
     instituted pursuant to subsection (f) against any person, the 
     Commission may impose a civil penalty if it finds, on the 
     record after notice and opportunity for hearing, that such 
     person--
       ``(i) is violating or has violated any provision of this 
     title, or any rule or regulation thereunder; or
       ``(ii) is or was a cause of the violation of any provision 
     of this title, or any rule or regulation thereunder.''.
       (d) Under the Investment Advisers Act of 1940.--Paragraph 
     (1) of section 203(i) of the Investment Advisers Act of 1940 
     (15 U.S.C. 80b-3(i)(1)) is amended--
       (1) by striking ``(1) Authority of commission.--In any 
     proceeding'' and inserting the following:
       ``(1) Authority of commission.--
       ``(A) In general.--In any proceeding'';
       (2) by redesignating subparagraphs (A) through (D) of such 
     paragraph as clauses (i) through (iv), respectively and 
     moving such redesignated clauses and the matter following 
     such subparagraphs 2 ems to the right; and
       (3) by adding at the end of such paragraph the following 
     new subparagraph:
       ``(B) Cease-and-desist proceedings.--In any proceeding 
     instituted pursuant to subsection (k) against any person, the 
     Commission may impose a civil penalty if it finds, on the 
     record after notice and opportunity for hearing, that such 
     person--
       ``(i) is violating or has violated any provision of this 
     title, or any rule or regulation thereunder; or
       ``(ii) is or was a cause of the violation of any provision 
     of this title, or any rule or regulation thereunder.''.

     SEC. 3002. FORMERLY ASSOCIATED PERSONS.

       (a) Member or Employee of the Municipal Securities 
     Rulemaking Board.--Section 15B(c)(8) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78o-4(c)(8)) is amended by 
     striking ``any member or employee'' and inserting ``any 
     person who is, or at the time of the alleged misconduct was, 
     a member or employee''.
       (b) Person Associated With a Government Securities Broker 
     or Dealer.--Section 15C of the Securities Exchange Act of 
     1934 (15 U.S.C. 78o-5) is amended--
       (1) in subsection (c)(1)(C), by striking ``or seeking to 
     become associated,'' and inserting ``seeking to become 
     associated, or, at the time of the alleged misconduct, 
     associated or seeking to become associated'';
       (2) in subsection (c)(2)(A), by inserting ``, seeking to 
     become associated, or, at the time

[[Page 31398]]

     of the alleged misconduct, associated or seeking to become 
     associated'' after ``any person associated''; and
       (3) in subsection (c)(2)(B), by inserting ``, seeking to 
     become associated, or, at the time of the alleged misconduct, 
     associated or seeking to become associated'' after ``any 
     person associated''.
       (c) Person Associated With a Member of a National 
     Securities Exchange or Registered Securities Association.--
     Section 21(a)(1) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78u(a)(1)) is amended by inserting ``, or, as to any 
     act or practice, or omission to act, while associated with a 
     member, formerly associated'' after ``member or a person 
     associated''.
       (d) Participant of a Registered Clearing Agency.--Section 
     21(a)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78u(a)(1)) is amended by inserting ``or, as to any act or 
     practice, or omission to act, while a participant, was a 
     participant,'' after ``in which such person is a 
     participant,''.
       (e) Officer or Director of a Self-regulatory 
     Organization.--Section 19(h)(4) of the Securities Exchange 
     Act of 1934 (15 U.S.C. 78s(h)(4)) is amended--
       (1) by striking ``any officer or director'' and inserting 
     ``any person who is, or at the time of the alleged misconduct 
     was, an officer or director''; and
       (2) by striking ``such officer or director'' and inserting 
     ``such person''.
       (f) Officer or Director of an Investment Company.--Section 
     36(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-
     35(a)) is amended--
       (1) by striking ``a person serving or acting'' and 
     inserting ``a person who is, or at the time of the alleged 
     misconduct was, serving or acting''; and
       (2) by striking ``such person so serves or acts'' and 
     inserting ``such person so serves or acts, or at the time of 
     the alleged misconduct, so served or acted''.
       (g) Person Associated With a Public Accounting Firm.--
       (1) Sarbanes-oxley act of 2002 amendment.--Section 2(a)(9) 
     of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(9)) is 
     amended by adding at the end the following new subparagraph:
       ``(C) Investigative and enforcement authority.--For 
     purposes of the provisions of sections 3(c), 101(c), 105, and 
     107(c) and Board or Commission rules thereunder, except to 
     the extent specifically excepted by such rules, the terms 
     defined in subparagraph (A) shall include any person 
     associated, seeking to become associated, or formerly 
     associated with a public accounting firm, except--
       ``(i) the authority to conduct an investigation of such 
     person under section 105(b) shall apply only with respect to 
     any act or practice, or omission to act, while such person 
     was associated or seeking to become associated with a 
     registered public accounting firm; and
       ``(ii) the authority to commence a proceeding under section 
     105(c)(1), or impose disciplinary sanctions under section 
     105(c)(4), against such person shall apply only on--

       ``(I) the basis of conduct occurring while such person was 
     associated or seeking to become associated with a registered 
     public accounting firm; or
       ``(II) non-cooperation as described in section 105(b)(3) 
     with respect to a demand in a Board investigation for 
     testimony, documents, or other information relating to a 
     period when such person was associated or seeking to become 
     associated with a registered public accounting firm.''.

       (2) Securities exchange act of 1934 amendment.--Section 
     21(a)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78u(a)(1)) is amended by striking ``or a person associated 
     with such a firm'' and inserting ``, a person associated with 
     such a firm, or, as to any act, practice, or omission to act 
     while associated with such firm, a person formerly associated 
     with such a firm''.
       (h) Supervisory Personnel of an Audit Firm.--Section 
     105(c)(6) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 
     7215(c)(6)) is amended--
       (1) in subparagraph (A), by striking ``the supervisory 
     personnel'' and inserting ``any person who is, or at the time 
     of the alleged failure reasonably to supervise was, a 
     supervisory person''; and
       (2) in subparagraph (B)--
       (A) by striking ``No associated person'' and inserting ``No 
     current or former supervisory person''; and
       (B) by striking ``any other person'' and inserting ``any 
     associated person''.
       (i) Member of the Public Company Accounting Oversight 
     Board.--Section 107(d)(3) of the Sarbanes-Oxley Act of 2002 
     (15 U.S.C. 7217(d)(3)) is amended by striking ``any member'' 
     and inserting ``any person who is, or at the time of the 
     alleged misconduct was, a member''.

     SEC. 3003. COLLATERAL BARS.

       (a) Section 15(b)(6)(A) of the Securities Exchange Act of 
     1934.--Section 15(b)(6)(A) of the Securities Exchange Act of 
     1934 (15 U.S.C. 78o(b)(6)(A)) is amended by striking ``12 
     months, or bar such person from being associated with a 
     broker or dealer,'' and inserting ``12 months, or bar any 
     such person from being associated with a broker, dealer, 
     investment adviser, municipal securities dealer, or transfer 
     agent,''.
       (b) Section 15B(c)(4) of the Securities Exchange Act of 
     1934.--Section 15B(c)(4) of the Securities Exchange Act of 
     1934 (15 U.S.C. 78o-4(c)(4)) is amended by striking ``twelve 
     months or bar any such person from being associated with a 
     municipal securities dealer,'' and inserting ``twelve months 
     or bar any such person from being associated with a broker, 
     dealer, investment adviser, municipal securities dealer, or 
     transfer agent,''.
       (c) Section 17A(c)(4)(C) of the Securities Exchange Act of 
     1934.--Section 17A(c)(4)(C) of the Securities Exchange Act of 
     1934 (15 U.S.C. 78q-1(c)(4)(C)) is amended by striking 
     ``twelve months or bar any such person from being associated 
     with the transfer agent,'' and inserting ``twelve months or 
     bar any such person from being associated with any transfer 
     agent, broker, dealer, investment adviser, or municipal 
     securities dealer,''.
       (d) Section 203(f) of the Investment Advisers Act of 
     1940.--Section 203(f) of the Investment Advisers Act of 1940 
     (15 U.S.C. 80b-3(f)) is amended by striking ``twelve months 
     or bar any such person from being associated with an 
     investment adviser,'' and inserting ``twelve months or bar 
     any such person from being associated with an investment 
     adviser, broker, dealer, municipal securities dealer, or 
     transfer agent,''.

     SEC. 3004. UNLAWFUL MARGIN LENDING.

       Section 7(c)(1)(A) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78g(c)(1)(A)) is amended by striking ``; and'' and 
     inserting ``; or''.

     SEC. 3005. NATIONWIDE SERVICE OF PROCESS.

       (a) Securities Act of 1933.--Section 22(a) of the 
     Securities Act of 1933 (15 U.S.C. 77v(a)) is amended by 
     inserting after the second sentence the following: ``In any 
     civil action instituted by the Commission under this title in 
     a United States district court for any judicial district, 
     subpoenas issued to compel the attendance of witnesses or the 
     production of documents or tangible things (or both) at any 
     hearing or trial may be served at any place within the United 
     States. Rule 45(c)(3)(A)(ii) of the Federal Rules of Civil 
     Procedure does not apply to a subpoena so issued.''.
       (b) Securities Exchange Act of 1934.--Section 27 of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78aa) is amended 
     by inserting after the third sentence the following: ``In any 
     civil action instituted by the Commission under this title in 
     a United States district court for any judicial district, 
     subpoenas issued to compel the attendance of witnesses or the 
     production of documents or tangible things (or both) at any 
     hearing or trial may be served at any place within the United 
     States. Rule 45(c)(3)(A)(ii) of the Federal Rules of Civil 
     Procedure does not apply to a subpoena so issued.''.
       (c) Investment Company Act of 1940.--Section 44 of the 
     Investment Company Act of 1940 (15 U.S.C. 80a-43) is amended 
     by inserting after the fourth sentence the following: ``In 
     any civil action instituted by the Commission under this 
     title in a United States district court for any judicial 
     district, subpoenas issued to compel the attendance of 
     witnesses or the production of documents or tangible things 
     (or both) at any hearing or trial may be served at any place 
     within the United States. Rule 45(c)(3)(A)(ii) of the Federal 
     Rules of Civil Procedure does not apply to a subpoena so 
     issued.''.
       (d) Investment Advisers Act of 1940.--Section 214 of the 
     Investment Advisers Act of 1940 (15 U.S.C. 80b-14) is amended 
     by inserting after the third sentence the following: ``In any 
     civil action instituted by the Commission under this title in 
     a United States district court for any judicial district, 
     subpoenas issued to compel the attendance of witnesses or the 
     production of documents or tangible things (or both) at any 
     hearing or trial may be served at any place within the United 
     States. Rule 45(c)(3)(A)(ii) of the Federal Rules of Civil 
     Procedure does not apply to a subpoena so issued.''.

     SEC. 3006. REAUTHORIZATION OF THE FINANCIAL CRIMES 
                   ENFORCEMENT NETWORK.

       (a) Findings.--
       (1) The Congress finds as follows:
       (A) The work of the Financial Crimes Enforcement Network 
     (hereinafter in this section referred to as ``FinCEN'') is 
     essential to safeguard the United States financial system and 
     its international affiliates from the abuses of financial 
     crime, including terrorist financing, weapons of mass 
     destruction proliferation, and money laundering.
       (B) All avenues of financial intermediation are vulnerable 
     to abuse by illicit actors, and FinCEN exercises the 
     authorities of the Bank Secrecy Act over a broad range of 
     financial institutions.
       (2) The Congress further finds and recognizes the recent 
     establishment by FinCEN of an International Programs Division 
     to expand and enhance global financial intelligence sharing 
     initiatives aimed at combating transnational crime threats 
     facing United States financial markets, and takes note of 
     FinCEN's efforts to collaborate with foreign financial 
     intelligence unit partners on analytical projects to identify 
     and address emerging threats and vulnerabilities.
       (3) The Congress further finds and recognizes the role of 
     FinCEN in discovering and investigating widespread fraud in 
     the mortgage market and elsewhere in the financial

[[Page 31399]]

     services industry. Alongside an effective licensing and 
     registration system for all mortgage originators, a vigilant 
     FinCEN is critical to the recovery of our housing markets and 
     consumer confidence in both the home buying process and the 
     financial services industry as a whole.
       (b) Reauthorization.--Section 310(d)(1) of title 31, United 
     States Code, is amended by striking ``such sums as may be 
     necessary for fiscal years 2002, 2003, 2004, and 2005'' and 
     inserting ``not more than $105,500,000 for fiscal year 2010, 
     and such sums as may be necessary for fiscal years 2011, 
     2012, 2013, and 2014''.
       (c) Additional Financial Fraud Authorization of 
     Appropriations.--In addition to such other amounts otherwise 
     made available or appropriated to FinCEN, there are 
     authorized to be appropriated to FinCEN $15,000,000 to be 
     used specifically for efforts to detect financial fraud. Such 
     sums are authorized to remain available until expended.

     SEC. 3007. FAIR FUND IMPROVEMENTS.

       (a) Amendment.--Subsection (a) of section 308 of the 
     Sarbanes-Oxley Act of 2002 (15 U.S.C. 7246(a)) is amended to 
     read as follows:
       ``(a) Civil Penalties To Be Used for the Relief of 
     Victims.--If in any judicial or administrative action brought 
     by the Commission under the securities laws (as such term is 
     defined in section 3(a)(47) of the Securities Exchange Act of 
     1934 (15 U.S.C. 78c(a)(47)), the Commission obtains a civil 
     penalty against any person for a violation of such laws, the 
     amount of such civil penalty shall, on the motion or at the 
     direction of the Commission, be added to and become part of a 
     disgorgement fund or other fund established for the benefit 
     of the victims of such violation.''.
       (b) Conforming Amendments.--Section 308 of such Act is 
     amended--
       (1) in subsection (b)--
       (A) by striking ``for a disgorgement fund described in 
     subsection (a)'' and inserting ``for a disgorgement fund or 
     other fund described in subsection (a)''; and
       (B) by striking ``in the disgorgement fund'' and inserting 
     ``in such fund''; and
       (2) by striking subsection (e).

             TITLE IV--OVER-THE-COUNTER DERIVATIVES MARKETS

     SECTION 4001. SHORT TITLE.

       This title may be cited as the ``Over-the-Counter 
     Derivatives Markets Act of 2009''.

          Subtitle A--Amendments to the Commodity Exchange Act

     SEC. 4100. DEFINITIONS.

       Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is 
     amended by adding at the end the following:
       ``(35) Swap.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `swap' means any agreement, contract, or transaction 
     that--
       ``(i) is a put, call, cap, floor, collar, or similar option 
     of any kind for the purchase or sale of, or based on the 
     value of, one or more interest or other rates, currencies, 
     commodities, securities, instruments of indebtedness, 
     indices, quantitative measures, or other financial or 
     economic interests or property of any kind;
       ``(ii) provides for any purchase, sale, payment, or 
     delivery (other than a dividend on an equity security) that 
     is dependent on the occurrence, non-occurrence, or the extent 
     of the occurrence of an event or contingency associated with 
     a potential financial, economic, or commercial consequence;
       ``(iii) provides on an executory basis for the exchange, on 
     a fixed or contingent basis, of one or more payments based on 
     the value or level of one or more interest or other rates, 
     currencies, commodities, securities, instruments of 
     indebtedness, indices, quantitative measures, or other 
     financial or economic interests or property of any kind, or 
     any interest therein or based on the value thereof, and that 
     transfers, as between the parties to the transaction, in 
     whole or in part, the financial risk associated with a future 
     change in any such value or level without also conveying a 
     current or future direct or indirect ownership interest in an 
     asset (including any enterprise or investment pool) or 
     liability that incorporates the financial risk so 
     transferred, including any agreement, contract, or 
     transaction commonly known as an interest rate swap, a rate 
     floor, rate cap, rate collar, cross-currency rate swap, basis 
     swap, currency swap, total return swap, equity index swap, 
     equity swap, debt index swap, debt swap, credit spread, 
     credit default swap, credit swap, weather swap, energy swap, 
     metal swap, agricultural swap, emissions swap, or commodity 
     swap;
       ``(iv) is an agreement, contract, or transaction that is, 
     or in the future becomes, commonly known to the trade as a 
     swap; or
       ``(v) is any combination or permutation of, or option on, 
     any agreement, contract, or transaction described in any of 
     clauses (i) through (iv).
       ``(B) Exclusions.--The term `swap' does not include:
       ``(i) any contract of sale of a commodity for future 
     delivery or security futures product traded on or subject to 
     the rules of any board of trade designated as a contract 
     market under section 5 or 5f;
       ``(ii) any sale of a nonfinancial commodity for deferred 
     shipment or delivery, so long as such transaction is 
     physically settled;
       ``(iii) any put, call, straddle, option, or privilege on 
     any security, certificate of deposit, or group or index of 
     securities, including any interest therein or based on the 
     value thereof, that is subject to the Securities Act of 1933 
     (15 U.S.C. 77a et seq.) and the Securities Exchange Act of 
     1934 (15 U.S.C. 78a et seq.);
       ``(iv) any put, call, straddle, option, or privilege 
     relating to foreign currency entered into on a national 
     securities exchange registered pursuant to section 6(a) of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78f(a));
       ``(v) any agreement, contract, or transaction providing for 
     the purchase or sale of one or more securities on a fixed 
     basis that is subject to the Securities Act of 1933 (15 
     U.S.C. 77a et seq.) and the Securities Exchange Act of 1934 
     (15 U.S.C. 78a et seq.);
       ``(vi) any agreement, contract, or transaction providing 
     for the purchase or sale of one or more securities on a 
     contingent basis that is subject to the Securities Act of 
     1933 (15 U.S.C. 77a et seq.) and the Securities Exchange Act 
     of 1934 (15 U.S.C. 78a et seq.), unless such agreement, 
     contract, or transaction predicates such purchase or sale on 
     the occurrence of a bona fide contingency that might 
     reasonably be expected to affect or be affected by the 
     creditworthiness of a party other than a party to the 
     agreement, contract, or transaction;
       ``(vii) any note, bond, or evidence of indebtedness that is 
     a security as defined in section 2(a)(1) of the Securities 
     Act of 1933 (15 U.S.C. 77b(a)(1));
       ``(viii) any agreement, contract, or transaction that is--

       ``(I) based on a security; and
       ``(II) entered into directly or through an underwriter (as 
     defined in section 2(a)(11) of the Securities Act of 1933) 
     (15 U.S.C. 77b(a)(11)) by the issuer of such security for the 
     purposes of raising capital, unless such agreement, contract, 
     or transaction is entered into to manage a risk associated 
     with capital raising;

       ``(ix) any foreign exchange swap;
       ``(x) any foreign exchange forward;
       ``(xi) any agreement, contract, or transaction a 
     counterparty of which is a Federal Reserve bank or the United 
     States Government, or an agency of the United States 
     Government that is expressly backed by the full faith and 
     credit of the United States; and
       ``(xii) any security-based swap, other than a security-
     based swap as described in paragraph (36](C).
       ``(C) Rule of construction regarding master agreements.--
     The term `swap' shall be construed to include a master 
     agreement that provides for an agreement, contract, or 
     transaction that is a swap pursuant to subparagraph (A), 
     together with all supplements to any such master agreement, 
     without regard to whether the master agreement contains an 
     agreement, contract, or transaction that is not a swap 
     pursuant to subparagraph (A), except that the master 
     agreement shall be considered to be a swap only with respect 
     to each agreement, contract, or transaction under the master 
     agreement that is a swap pursuant to subparagraph (A).
       ``(36) Security-based swap.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `security-based swap' means any agreement, contract, 
     or transaction that would be a swap under paragraph (35) 
     (without regard to paragraph (35)(B)(xii)), and that--
       ``(i) is based on an index that is a narrow-based security 
     index, including any interest therein or based on the value 
     thereof;
       ``(ii) is based on a single security or loan, including any 
     interest therein or based on the value thereof; or
       ``(iii) is based on the occurrence, non-occurrence, or 
     extent of the occurrence of an event relating to a single 
     issuer of a security or the issuers of securities in a 
     narrow-based security index, provided that such event must 
     directly affect the financial statements, financial 
     condition, or financial obligations of the issuer.
       ``(B) Exclusion.--The term `security-based swap' does not 
     include any agreement, contract, or transaction that meets 
     the definition of security-based swap only because it 
     references or is based upon a government security.
       ``(C) Mixed swap.--The term `security-based swap' includes 
     any agreement, contract, or transaction that is as described 
     in subparagraph (A) and also is based on the value of one or 
     more interest or other rates, currencies, commodities, 
     instruments of indebtedness, indices, quantitative measures, 
     other financial or economic interest or property of any kind 
     (other than a single security or a narrow-based security 
     index), or the occurrence, non-occurrence, or the extent of 
     the occurrence of an event or contingency associated with a 
     potential financial, economic, or commercial consequence 
     (other than an event described in subparagraph (A)(iii)).
       ``(D) Rule of construction regarding master agreements.--
     The term `security-based swap' shall be construed to include 
     a master agreement that provides for an agreement, contract, 
     or transaction that is a security-based swap pursuant to 
     subparagraph (A), together with all supplements to any such 
     master agreement, without regard to whether the master 
     agreement contains an agreement, contract, or transaction 
     that is

[[Page 31400]]

     not a security-based swap pursuant to subparagraph (A), 
     except that the master agreement shall be considered to be a 
     security-based swap only with respect to each agreement, 
     contract, or transaction under the master agreement that is a 
     security-based swap pursuant to subparagraph (A).
       ``(37) Swap dealer.--
       ``(A) In general.--The term `swap dealer' means any person 
     engaged in the business of buying and selling swaps for such 
     person's own account, through a broker or otherwise, that is 
     regulated by a Prudential Regulator.
       ``(B) Exception.--The term `swap dealer' does not include a 
     person that buys or sells swaps for such person's own 
     account, either individually or in a fiduciary capacity, but 
     not as a part of a regular business.
       ``(38) Security-based swap dealer.--
       ``(A) In general.--The term `security-based swap dealer' 
     means any person engaged in the business of buying and 
     selling security-based swaps for such person's own account, 
     through a broker or otherwise, that is regulated by a 
     Prudential Regulator.
       ``(B) Exception.--The term `security-based swap dealer' 
     does not include a person that buys or sells security-based 
     swaps for such person's own account, either individually or 
     in a fiduciary capacity, but not as a part of a regular 
     business.
       ``(39) Major swap participant.--
       ``(A) In general.--The term `major swap participant' means 
     any person who is not a swap dealer, who maintains a 
     substantial net position in outstanding swaps, excluding 
     positions held primarily for hedging (including balance sheet 
     hedging) or risk management purposes, and who is regulated by 
     a Prudential Regulator. A person may be designated as a major 
     swap participant for 1 or more individual types of swaps.
       ``(B) Definition of `substantial net position'.-- The 
     Commission and the Securities and Exchange Commission shall 
     jointly define by rule or regulation the term `substantial 
     net position' at a threshold that the regulators determine 
     prudent for the effective monitoring, management and 
     oversight of the financial system.
       ``(40) Major security-based swap participant.--
       ``(A) In general.--The term `major security-based swap 
     participant' means any person who is not a security-based 
     swap dealer, who maintains a substantial net position in 
     outstanding security-based swaps, excluding positions held 
     primarily for commercial hedging (including balance sheet 
     hedging) or financial risk management purposes, and who is 
     regulated by a Prudential Regulator. A person may be 
     designated as a major security-based swap participant for 1 
     or more individual types of security-based swaps.
       ``(B) Definition of `substantial net position'.--The 
     Commission and the Securities and Exchange Commission shall 
     jointly define by rule or regulation the term `substantial 
     net position' at a threshold that the regulators determine 
     prudent for the effective monitoring, management and 
     oversight of the financial system.
       ``(41) Appropriate federal banking agency.--The term 
     `appropriate Federal banking agency' has the same meaning as 
     in section 3(q) of the Federal Deposit Insurance Act (12 
     U.S.C. 1813(q)).
       ``(42) Board.--The term `Board' means the Board of 
     Governors of the Federal Reserve System.
       ``(43) Prudential regulator.--The term `Prudential 
     Regulator' means--
       ``(A) the Board, in the case of a swap dealer, major swap 
     participant, security-based swap dealer or major security-
     based swap participant that is--
       ``(i) a State-chartered bank that is a member of the 
     Federal Reserve System;
       ``(ii) a State-chartered branch or agency of a foreign 
     bank; or
       ``(iii) a bank holding company (as defined in section 2 of 
     the Bank Holding Company Act of 1956);
       ``(B) the Office of the Comptroller of the Currency, in the 
     case of a swap dealer, major swap participant, security-based 
     swap dealer or major security-based swap participant that 
     is--
       ``(i) a national bank; or
       ``(ii) a federally chartered branch or agency of a foreign 
     bank;
       ``(C) the Federal Deposit Insurance Corporation, in the 
     case of a swap dealer, major swap participant, security-based 
     swap dealer or major security-based swap participant that is 
     a State-chartered bank that is not a member of the Federal 
     Reserve System; or
       ``(D) the Office of Thrift Supervision, in the case of a 
     savings association (as defined in section 2 of the Home 
     Owners' Loan Act) or a savings and loan holding company (as 
     defined in section 10 of such Act).
       ``(44) Swap repository.--The term `swap repository' means 
     an entity that collects and maintains the records of the 
     terms and conditions of swaps or security-based swaps entered 
     into by third parties.''.

     SEC. 4101. SWAP REPOSITORIES.

       (a) Swap Repositories.--The Commodity Exchange Act (7 
     U.S.C. 1 et seq.) is amended by inserting after section 20 
     the following:

     ``SEC. 21. SWAP REPOSITORIES.

       ``(a) Required Reporting.--
       ``(1) In general.--
       ``(A) In general.--Any swap that is not accepted for 
     clearing by a derivatives clearing organization shall be 
     reported to either a swap repository registered pursuant to 
     subsection (b) or, if there is no repository that would 
     accept the swap, to the Commission in accordance with section 
     4r within such time period as the Commission may by rule 
     prescribe.
       ``(B) Authority of swap dealer to report.--Counterparties 
     to a swap may agree as to which counterparty will report such 
     swap as required by subparagraph (A). In any swap where only 
     one counterparty is a swap dealer, the swap dealer shall 
     report the swap.
       ``(2) Transition rules.--Rules adopted by the Commission 
     under this section shall provide for the reporting of data, 
     as follows:
       ``(A) Swaps that were entered into before the date of 
     enactment of the Over-the-Counter Derivatives Markets Act of 
     2009 shall be reported to a registered swap repository or the 
     Commission no later than 270 days after the effective date of 
     such Act.
       ``(B) Swaps that were entered into on or after the date of 
     enactment of the Over-the-Counter Derivatives Markets Act of 
     2009 shall be reported to a registered swap repository or the 
     Commission no later than the later of--
       ``(i) 180 days after the effective date of such Act; or
       ``(ii) such other time after entering into the swap as the 
     Commission may prescribe by rule or regulation.
       ``(b) Swap Repositories.--
       ``(1) Registration requirement.--
       ``(A) In general.--It shall be unlawful for a swap 
     repository, unless registered with the Commission, directly 
     or indirectly to make use of the mails or any means or 
     instrumentality of interstate commerce to perform the 
     functions of a swap repository.
       ``(B) Inspection and examination.--Registered swap 
     repositories shall be subject to inspection and examination 
     by any representatives of the Commission.
       ``(2) Standard setting.--
       ``(A) Data identification.--The Commission shall prescribe 
     standards that specify the data elements for each swap that 
     shall be collected and maintained by each swap repository.
       ``(B) Data collection and maintenance.--The Commission 
     shall prescribe data collection and data maintenance 
     standards for swap repositories.
       ``(C) Comparability.--The standards prescribed by the 
     Commission under this subsection shall be comparable to the 
     data standards imposed by the Commission on derivatives 
     clearing organizations that clear swaps.
       ``(3) Duties.--A swap repository shall--
       ``(A) accept data prescribed by the Commission for each 
     swap under paragraph (2);
       ``(B) maintain such data in such form and manner and for 
     such period as may be required by the Commission;
       ``(C) provide to the Commission, or its designee, such 
     information as is required by, and in a form and at a 
     frequency to be determined by, the Commission, in order to 
     comply with the public reporting requirements contained in 
     section 8(j); and
       ``(D) make available, on a confidential basis, all data 
     obtained by the swap repository, including individual 
     counterparty trade and position data, to the Commission, the 
     appropriate Federal banking agencies, the Commodity Futures 
     Trading Commission, the Financial Services Oversight Council, 
     and the Department of Justice or to other persons the 
     Commission deems appropriate, including foreign financial 
     supervisors (including foreign futures authorities), foreign 
     central banks, and foreign ministries.
       ``(4) Required registration for swap repositories.--Any 
     person that is required to be registered as a swap repository 
     under this subsection shall register with the Commission, 
     regardless of whether that person also is registered with the 
     Securities and Exchange Commission as a security-based swap 
     repository.
       ``(5) Harmonization of rules.--Not later than 270 days 
     after the date of enactment of the Over-the-Counter 
     Derivatives Markets Act of 2009, the Commission and the 
     Securities and Exchange Commission shall jointly adopt 
     uniform rules governing persons that are registered under 
     this section and persons that are registered as security-
     based swap repositories under the Securities Exchange Act of 
     1934 (15 U.S.C. 78a et seq.), including uniform rules that 
     specify the data elements that shall be collected and 
     maintained by each repository.
       ``(6) Exemptions.--The Commission may exempt, conditionally 
     or unconditionally, a swap repository from the requirements 
     of this section if the Commission finds that such swap 
     repository is subject to comparable, comprehensive 
     supervision or regulation on a consolidated basis by the 
     Securities and Exchange Commission, a Prudential Regulator or 
     the appropriate governmental authorities in the 
     organization's home country, or as necessary or appropriate 
     in the public interest and consistent with the purposes of 
     this Act.''.
       (b) Reporting and Recordkeeping.--The Commodity Exchange 
     Act (7 U.S.C. 1 et seq.) is amended by inserting after 
     section 4q the following:

     ``SEC. 4R. REPORTING AND RECORDKEEPING FOR CERTAIN SWAPS.

       ``(a) In General.--Any person who enters into a swap that 
     is not accepted for clearing

[[Page 31401]]

     by a derivatives clearing organization and is not reported to 
     a swap repository registered pursuant to section 21 shall 
     meet the requirements in subsection (b).
       ``(b) Reports.--Any person described in subsection (a) 
     shall--
       ``(1) make such reports in such form and manner and for 
     such period as the Commission shall prescribe by rule or 
     regulation regarding the swaps held by the person; and
       ``(2) keep books and records pertaining to the security-
     based swaps held by the person in such form and manner and 
     for such period as may be required by the Commission, which 
     books and records shall be open to inspection by any 
     representative of the Commission, an appropriate Federal 
     banking agency, the Securities and Exchange Commission, the 
     Financial Services Oversight Council, and the Department of 
     Justice.
       ``(c) Identical Data.--In adopting rules under this 
     section, the Commission shall require persons described in 
     subsection (a) to report the same or more comprehensive data 
     than the Commission requires repositories to collect.''.
       (c) Public Reporting of Aggregate Swap Data.--Section 8 of 
     such Act (7 U.S.C. 12) is amended by adding at the end the 
     following:
       ``(j) Public Reporting of Aggregate Swap Data.--
       ``(1) In general.--The Commission, or a person designated 
     by the Commission pursuant to paragraph (2), shall make 
     available to the public, in a manner that does not disclose 
     the business transactions and market positions of any person, 
     aggregate data on swap trading volumes and positions from the 
     sources set forth in paragraph (3).
       ``(2) Designee of the commission.--The Commission may 
     designate a derivatives clearing organization or a swap 
     repository to carry out the public reporting described in 
     paragraph (1).
       ``(3) Sources of information.--The sources of the 
     information to be publicly reported as described in paragraph 
     (1) are--
       ``(A) derivatives clearing organizations;
       ``(B) swap repositories pursuant to section 21(c)(3); and
       ``(C) reports received by the Commission pursuant to 
     section 4r.''.

     SEC. 4102. MARGIN FOR SWAPS BETWEEN SWAPS DEALERS AND MAJOR 
                   SWAP PARTICIPANTS.

        The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended 
     by inserting after section 4r (as added by section 4101(b) of 
     this title) the following:

     ``SEC. 4S. MARGIN FOR SWAPS BETWEEN CERTAIN SWAPS DEALERS AND 
                   CERTAIN MAJOR SWAP PARTICIPANTS.

       ``Each Prudential Regulator shall impose both initial and 
     variation margin requirements on all swaps between swap 
     dealers and major swap participants subject to regulation by 
     the Regulator, that are not cleared by a derivatives clearing 
     organization.''.

     SEC. 4103. SEGREGATION OF ASSETS HELD AS COLLATERAL IN SWAP 
                   TRANSACTIONS.

       The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended 
     by inserting after section 4s (as added by section 4102 of 
     this title) the following:

     ``SEC. 4T. SEGREGATION OF ASSETS HELD AS COLLATERAL IN SWAP 
                   TRANSACTIONS.

       ``(a) Cleared Swaps.--A swap dealer, futures commission 
     merchant, or derivatives clearing organization by or through 
     which funds or other property are held as margin or 
     collateral to secure the obligations of a counterparty under 
     a swap to be cleared by or through a derivatives clearing 
     organization shall segregate, maintain, and use the funds or 
     other property for the benefit of the counterparty, in 
     accordance with such rules and relations as the Commission or 
     Prudential Regulator shall prescribe. Any such funds or other 
     property shall be treated as customer property under this 
     Act.
       ``(b) Over-the-counter Swaps.--At the request of a swap 
     counterparty who provides funds or other property to a swap 
     dealer as margin or collateral to secure the obligations of 
     the counterparty under a swap entered into using the mails or 
     any other means or instrumentalities of interstate commerce 
     between the counterparty and the swap dealer that is not 
     submitted for clearing to a derivatives clearing 
     organization, the swap dealer shall segregate the funds or 
     other property for the benefit of the counterparty, and 
     maintain the funds or other property in an account which is 
     carried by a third-party custodian and designated as a 
     segregated account for the counterparty, in accordance with 
     such rules and regulations as the Commission or Prudential 
     Regulator may prescribe. Any such funds and property may, 
     with the agreement of the customer, be commingled with the 
     funds and property of other swap counterparties and customers 
     and shall be eligible for treatment as customer property 
     under this Act. This subsection shall not be interpreted to 
     preclude commercial arrangements regarding the investment of 
     the segregated funds or other property and the related 
     allocation of gains and losses resulting from any such 
     investment or regarding the allocation of the costs of 
     segregation.
       ``(c) Mark-to-market Margin.--Nothing in this section shall 
     be construed to obligate any person to segregate variation or 
     mark-to-market margin.''.

     Subtitle B--Amendments to the Securities Exchange Act of 1934

     SEC. 4201. DEFINITIONS.

       Section 3(a) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78c(a)) is amended by adding at the end the following:
       ``(65) Appropriate federal banking agency.--The term 
     `appropriate Federal banking agency' has the same meaning as 
     in section 3(q) of the Federal Deposit Insurance Act (12 
     U.S.C. 1813(q)).
       ``(66) Major swap participant.--The term `major swap 
     participant' has the same meaning as in section 1a(40) of the 
     Commodity Exchange Act (7 U.S.C. 1a(40)).
       ``(67) Major security-based swap participant.--The term 
     `major security-based swap participant' has the same meaning 
     as in section 1a(41) of the Commodity Exchange Act (7 U.S.C. 
     1a(41)).
       ``(68) Prudential regulator.--The term `Prudential 
     Regulator' has the same meaning as in section 1a(43) of the 
     Commodity Exchange Act (7 U.S.C. 1a(43)).
       ``(69) Swap.--The term `swap' has the same meaning as in 
     section 1a(35) of the Commodity Exchange Act (7 U.S.C. 
     1a(35)).
       ``(70) Swap dealer.--The term `swap dealer' has the same 
     meaning as in section 1a(39) of the Commodity Exchange Act (7 
     U.S.C. 1a(39)).
       ``(71) Security-based swap.--The term `security-based swap' 
     has the same meaning as in section 1a(38) of the Commodity 
     Exchange Act (7 U.S.C. 1a(38)).
       ``(72) Security-based swap dealer.--The term `security-
     based swap dealer' has the same meaning as in section 1a(44) 
     of the Commodity Exchange Act (7 U.S.C. 1a(44)).''.

     SEC. 4202. SWAP REPOSITORIES.

       (a) In General.--The Securities Exchange Act of 1934 (15 
     U.S.C. 78a, et seq.) is amended by adding the following 
     section after section 3A:

     ``SEC. 3B. SWAP REPOSITORIES.

       ``(a) Required Reporting.--
       ``(1) In general.--
       ``(A) In general.--Any security-based swap that is not 
     accepted for clearing by any clearing agency shall be 
     reported to either a security-based swap repository 
     registered pursuant to subsection (b) or, if there is no 
     repository that would accept the security-based swap, to the 
     Commission in accordance with section 13A within such time 
     period as the Commission may by rule prescribe.
       ``(B) Authority of swap dealer to report.--Counterparties 
     to a security-based swap may agree as to which counterparty 
     will report such swap as required by subparagraph (A). In any 
     security-based swap where only one counterparty is a swap 
     dealer, the swap dealer shall report the swap.
       ``(2) Transition rules.--Rules adopted by the Commission 
     under this section shall provide for the reporting of data, 
     as follows:
       ``(A) Security-based swaps that were entered into before 
     the date of enactment of the Over-the-Counter Derivatives 
     Markets Act of 2009 shall be reported to a registered 
     security-based swap repository or the Commission no later 
     than 270 days after the effective date of such Act.
       ``(B) Security-based swaps that were entered into on or 
     after the date of enactment of the Over-the-Counter 
     Derivatives Markets Act of 2009 shall be reported to a 
     registered security-based swap repository or the Commission 
     no later than the later of--
       ``(i) 180 days after the effective date of such Act; or
       ``(ii) such other time after entering into the swap as the 
     Commission may prescribe by rule or regulation.
       ``(b) Security-based Swap Repositories.--
       ``(1) Registration requirement.--
       ``(A) In general.--It shall be unlawful for a security-
     based swap repository, unless registered with the Commission, 
     directly or indirectly to make use of the mails or any means 
     or instrumentality of interstate commerce to perform the 
     functions of a security-based swap repository.
       ``(B) Inspection and examination.--Registered security-
     based swap repositories shall be subject to inspection and 
     examination by any representatives of the Commission.
       ``(2) Standard setting.--
       ``(A) Data identification.--The Commission shall prescribe 
     standards that specify the data elements for each security-
     based swap that shall be collected and maintained by each 
     security-based swap repository.
       ``(B) Data collection and maintenance.--The Commission 
     shall prescribe data collection and data maintenance 
     standards for security-based swap repositories.
       ``(C) Comparability.--The standards prescribed by the 
     Commission under this subsection shall be comparable to the 
     data standards imposed by the Commission on clearing agencies 
     that clear security-based swaps.
       ``(3) Duties.--A security-based swap repository shall--
       ``(A) accept data prescribed by the Commission for each 
     security-based swap under this paragraph (2);
       ``(B) maintain such data in such form and manner and for 
     such period as may be required by the Commission;
       ``(C) provide to the Commission, or its designee, such 
     information as is required by,

[[Page 31402]]

     and in a form and at a frequency to be determined by, the 
     Commission, in order to comply with the public reporting 
     requirements contained in section 13(m); and
       ``(D) make available, on a confidential basis, all data 
     obtained by the security-based swap repository, including 
     individual counterparty trade and position data, to the 
     Commission, the appropriate Federal banking agencies, the 
     Commodity Futures Trading Commission, the Financial Services 
     Oversight Council, and the Department of Justice or to other 
     persons the Commission deems appropriate, including foreign 
     financial supervisors (including foreign futures 
     authorities), foreign central banks, and foreign ministries.
       ``(4) Required registration for security-based swap 
     repositories.--Any person that is required to be registered 
     as a securities-based swap repository under this subsection 
     shall register with the Commission, regardless of whether 
     that person also is registered with the Commodity Futures 
     Trading Commission as a swap repository.
       ``(5) Harmonization of rules.--Not later than 270 days 
     after the date of enactment of the Over-the-Counter 
     Derivatives Markets Act of 2009, the Commission and the 
     Commodity Futures Trading Commission shall jointly adopt 
     uniform rules governing persons that are registered under 
     this section and persons that are registered as swap 
     repositories under the Commodity Exchange Act (7 U.S.C. 1, et 
     seq.), including uniform rules that specify the data elements 
     that shall be collected and maintained by each repository.
       ``(6) Exemptions.--The Commission may exempt, conditionally 
     or unconditionally, a security-based swap repository from the 
     requirements of this section if the Commission finds that 
     such security-based swap repository is subject to comparable, 
     comprehensive supervision or regulation on a consolidated 
     basis by the Commodity Futures Trading Commission, a 
     Prudential Regulator or the appropriate governmental 
     authorities in the organization's home country, or as 
     necessary or appropriate in the public interest and 
     consistent with the purposes of this Act.''.
       (b) Reporting and Recordkeeping.--The Securities Exchange 
     Act of 1934 (15 U.S.C. 78a, et seq.) is amended by inserting 
     after section 13 the following section:

     ``SEC. 13A. REPORTING AND RECORDKEEPING FOR CERTAIN SECURITY-
                   BASED SWAPS.

       ``(a) In General.--Any person who enters into a security-
     based swap that is not accepted for clearing by any clearing 
     agency and is not reported to a security-based swap 
     repository registered pursuant to section 3B(b) shall meet 
     the requirements in subsection (b).
       ``(b) Reports.--Any person described in subsection (a) 
     shall--
       ``(1) make such reports in such form and manner and for 
     such period as the Commission shall prescribe by rule or 
     regulation regarding the security-based swaps held by the 
     person; and
       ``(2) keep books and records pertaining to the security-
     based swaps held by the person in such form and manner and 
     for such period as may be required by the Commission, which 
     books and records shall be open to inspection by any 
     representative of the Commission, an appropriate Federal 
     banking agency, the Commodity Futures Trading Commission, the 
     Financial Services Oversight Council, and the Department of 
     Justice.
       ``(c) Identical Data.--In adopting rules under this 
     section, the Commission shall require persons described in 
     subsection (a) to report the same or more comprehensive data 
     than the Commission requires security-based swap repositories 
     to collect.''.
       (c) Public Reporting and Repositories for Security-based 
     Swap Agreements.--Section 13 of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78m) is amended by adding at the end the 
     following:
       ``(m) Public Reporting of Aggregate Security-based Swap 
     Data.--
       ``(1) In general.--The Commission, or a person designated 
     by the Commission pursuant to paragraph (2), shall make 
     available to the public, in a manner that does not disclose 
     the business transactions and market positions of any person, 
     aggregate data on security-based swap trading volumes and 
     positions from the sources set forth in paragraph (3).
       ``(2) Designee of the commission.--The Commission may 
     designate a clearing agency or a security-based swap 
     repository to carry out the public reporting described in 
     paragraph (1).
       ``(3) Sources of information.--The sources of the 
     information to be publicly reported as described in paragraph 
     (1) are--
       ``(A) clearing agencies;
       ``(B) security-based swap repositories registered pursuant 
     to section 3B(b); and
       ``(C) reports received by the Commission pursuant to 
     section 13A.''.

     SEC. 4203. MARGIN REQUIREMENTS.

       The Securities Exchange Act of 1934 (15 U.S.C. 78a, et 
     seq.) is amended by adding the following section after 
     section 3B:

     ``SEC. 3C. MARGIN REQUIREMENTS FOR SECURITY-BASED SWAP 
                   DEALERS AND MAJOR SECURITY-BASED SWAP 
                   PARTICIPANTS.

       ``Each Prudential Regulator shall impose both initial and 
     variation margin requirements on all security-based swaps 
     between security-based swap dealers and major security-based 
     swap participants subject to regulation by the Regulator, 
     that are not cleared by a clearing agency.''.

     SEC. 4204. SEGREGATION OF ASSETS HELD AS COLLATERAL IN SWAP 
                   TRANSACTIONS.

       The Securities Exchange Act of 1934 (15 U.S.C. 78a, et 
     seq.) is further amended by adding after section 3C (as added 
     by section 4203) the following:

     ``SEC. 3D. SEGREGATION OF ASSETS HELD AS COLLATERAL IN SWAP 
                   TRANSACTIONS.

       ``(a) Cleared Swaps.--A security-based swap dealer or 
     clearing agency by or through which funds or other property 
     are held as margin or collateral to secure the obligations of 
     a counterparty under a security-based swap to be cleared by 
     or through a derivatives clearing agency shall segregate, 
     maintain, and use the funds or other property for the benefit 
     of the counterparty, in accordance with such rules and 
     regulations as the Commission or Prudential Regulator shall 
     prescribe. Any such funds or other property shall be treated 
     as customer property under this Act.
       ``(b) Over-the-counter Swaps.--At the request of a 
     counterparty to a security-based swap who provides funds or 
     other property to a swap dealer as margin or collateral to 
     secure the obligations of the counterparty under a security-
     based swap entered into using the mails or any other means or 
     instrumentalities of interstate commerce between the 
     counterparty and the swap dealer that is not submitted for 
     clearing to a derivatives clearing agency, the swap dealer 
     shall segregate the funds or other property for the benefit 
     of the counterparty, and maintain the funds or other property 
     in an account which is carried by a third-party custodian and 
     designated as a segregated account for the counterparty, in 
     accordance with such rules and regulations as the Commission 
     or Prudential Regulator may prescribe. This subsection shall 
     not be interpreted to preclude commercial arrangements 
     regarding the investment of the segregated funds or other 
     property and the related allocation of gains and losses 
     resulting from any such investment or regarding the 
     allocation of the costs of segregation.
       ``(c) Mark-to-market Margin.--Nothing in this section shall 
     be construed to obligate any person to segregate variation or 
     mark-to-market margin.''.

                     Subtitle C--Common Provisions

     SEC. 4301. REPORT TO THE CONGRESS.

       Within 1 year after the date of the enactment of this 
     title, and not less frequently than annually thereafter, the 
     Commodity Futures Trading Commission, the Securities and 
     Exchange Commission, and the Prudential Regulators shall 
     review data from swap repositories, security-based swap 
     repositories, derivative clearing organizations, and clearing 
     agencies, and if the Commodity Futures Trading Commission, 
     the Securities and Exchange Commission, and the Prudential 
     Regulators jointly find that the activities of swaps dealers, 
     securities-based swaps dealers, major swap participants, or 
     major security-based swap participants not subject to 
     regulation by the Commodity Futures Trading Commission, the 
     Securities and Exchange Commission, or a Prudential 
     Regulator, in relation to swaps or security-based swaps that 
     are not submitted to a derivatives clearing organization or 
     clearing agency for clearing, have become so substantial or 
     imprudent as to potentially threaten the stability of 
     financial markets or the economy, the Commodity Futures 
     Trading Commission, the Securities and Exchange Commission, 
     and the Prudential Regulators shall jointly submit to the 
     Congress a report on the situation, including recommendations 
     as to whether the activities should be subject to further 
     regulation.

     SEC. 4302. CAPITAL REQUIREMENTS.

       Each Prudential Regulator shall take into account the swaps 
     and security-based swaps activities of the entities subject 
     to regulation by the Regulator in establishing capital 
     requirements for the entities.

     SEC. 4303. CENTRALIZED CLEARING.

       (a) In General.--The Board, in consultation and 
     coordination with the Securities and Exchange Commission and 
     the Commodity Futures Trading Commission, shall implement 
     policies and procedures designed to increase the use of 
     central counterparties for clearing of over-the-counter swaps 
     transactions by swap dealers, security-based swap dealers, 
     major swap participants, and major security-based swap 
     participants, with the goal of significantly reducing the 
     risk profile of the market in which the transactions occur.
       (b) Firm Targets.--
       (1) In general.--Pursuant to subsection (a), the Board 
     shall establish the following firm goals for swap dealers, 
     security-based swap dealers, major swap participants, and 
     major security-based swap participants, with respect to the 
     clearing of certain swaps:

[[Page 31403]]

       (A) Interest rate swaps.--In the case of interest rate 
     swaps, each swap dealer, security-based swap dealer, major 
     swap participant, and major security-based swap participant 
     shall commit to a goal, beginning December 2009, of 
     submitting for clearing to a derivatives clearing 
     organization or clearing agency--
       (i) 90 percent of new eligible trades (calculated on a 
     notional basis);
       (ii) 70 percent of new eligible trades (calculated on a 
     weighted average notional basis); and
       (iii) 60 percent of historical eligible trades (calculated 
     on a weighted average notional basis).
       (B) Credit default swaps.--In the case of credit default 
     swaps, each swap dealer, security-based swap dealer, major 
     swap participant, and major security-based swap participant 
     shall commit to a goal, beginning December 2009, of 
     submitting for clearing to a derivatives clearing 
     organization or clearing agency--
       (i) 95 percent of new eligible trades (calculated on a 
     notional basis); and
       (ii) 80 percent of all eligible trades (calculated on a 
     weighted average notional basis).
       (2) Definitions.--In paragraph (1):
       (A) Eligible trade.--The term ``eligible trade'' means a 
     trade on an eligible product between counterparties each of 
     whom--
       (i) is a swap dealer, security-based swap dealer, major 
     swap participant, or major security-based swap participant; 
     and
       (ii) has a clearing relationship in place with 1 or more 
     common derivative clearing organizations or clearing 
     agencies) for the eligible product.
       (B) Eligible product.--The term ``eligible product'' means 
     a product eligible for clearing by a derivative clearing 
     organization or clearing agency.
       (c) Other Contracts and Counterparties.--The Board, in 
     consultation with the Securities and Exchange Commission and 
     the Commodity Futures Trading Commission, shall actively 
     engage central counterparties and regulators globally to--
       (1) broaden the set of derivative products eligible for 
     clearing by swap dealers, security-based swap dealers, major 
     swap participants, and major security-based swap 
     participants, taking into account risk, liquidity, default 
     management and other processes; and
       (2) expand the set of counterparties eligible to clear at 
     each eligible central counterparty taking into account 
     appropriate counterparty risk management considerations, 
     including the development of buy-side clearing.

     SEC. 4304. DEFINITIONS.

       The terms used in this subtitle shall have the meanings 
     given the terms in section 1a of the Commodity Exchange Act.

   TITLE V--CORPORATE AND FINANCIAL INSTITUTION COMPENSATION FAIRNESS

     SEC. 5001. SHORT TITLE.

       This title may be cited as the ``Corporate and Financial 
     Institution Compensation Fairness Act of 2009''.

     SEC. 5002. SHAREHOLDER VOTE ON EXECUTIVE COMPENSATION.

       (a) Amendment to the Securities Exchange Act of 1934.--
     Section 14 of the Securities Exchange Act of 1934 (15 U.S.C. 
     78n) is amended by adding at the end the following new 
     subsection:
       ``(i) Triennial Advisory Shareholder Vote on Executive 
     Compensation.--
       ``(1) In general.--A proxy or consent or authorization for 
     an annual meeting of the shareholders (or a special meeting 
     in lieu of the annual meeting) occurring on or after the date 
     that is 6 months after the date on which final rules are 
     issued under paragraph (4), shall provide for a separate 
     shareholder advisory vote, at least once every three years, 
     to approve the registrant's executive compensation policies 
     and practices as set forth pursuant to the Commission's 
     disclosure rules. The shareholder vote shall be advisory in 
     nature and shall not be binding on the issuer or its board of 
     directors and shall not be construed as overruling a decision 
     by such board, nor to create or imply any additional 
     fiduciary duty by such board, nor shall such vote be 
     construed to restrict or limit the ability of shareholders to 
     make proposals for inclusion in proxy materials related to 
     executive compensation for meetings of shareholders at which 
     such an advisory vote on executive compensation is not to be 
     conducted.
       ``(2) Opt out.--If not less than \2/3\ of votes cast at a 
     meeting of shareholders on a proposal to opt out of the 
     triennial shareholder advisory vote on executive compensation 
     required under paragraph (1) are cast in favor of such a 
     proposal, then such shareholder advisory vote required under 
     such paragraph shall not be required to take place for a 
     period of 5 years following the vote approving such proposal.
       ``(3) Shareholder approval of golden parachute 
     compensation.--
       ``(A) Disclosure.--In any proxy or consent solicitation 
     material for an annual meeting of the shareholders (or a 
     special meeting in lieu of the annual meeting) occurring on 
     or after the date that is 6 months after the date on which 
     final rules are issued under paragraph (4), that concerns an 
     acquisition, merger, consolidations, or proposed sale or 
     other disposition of all or substantially all the assets of 
     an issuer, the person making such solicitation shall disclose 
     in the proxy or consent solicitation material, in a clear and 
     simple tabular form in accordance with regulations to be 
     promulgated by the Commission, any agreements or 
     understandings that such person has with the named executive 
     officers (as such term is defined in the rules promulgated by 
     the Commission) of such issuer (or of the acquiring issuer, 
     if such issuer is not the acquiring issuer) concerning any 
     type of compensation (whether present, deferred, or 
     contingent) that is based on or otherwise relates to the 
     acquisition, merger, consolidation, sale, or other 
     dispositions of all or substantially all of the assets of the 
     issuer, and the aggregate total of all such compensation that 
     may (and the conditions upon which it may) be paid or become 
     payable to or on behalf of such named executive officer.
       ``(B) Shareholder approval.--Any proxy or consent or 
     authorization relating to the proxy or consent solicitation 
     material containing the disclosure required by subparagraph 
     (A) shall provide for a separate shareholder vote to approve 
     such agreements or understandings and compensation as 
     disclosed. A vote by the shareholders shall not be binding on 
     the corporation or the board of directors of the issuer or 
     the person making the solicitation and shall not be construed 
     as overruling a decision by such board, nor to create or 
     imply any additional fiduciary duty by such board.''
       ``(4) Rulemaking.--Not later than 1 year after the date of 
     the enactment of the Corporate and Financial Institution 
     Compensation Fairness Act of 2009, the Commission shall issue 
     rules and regulations to implement this subsection.''.
       (b) Study and Report.--The Securities and Exchange 
     Commission shall conduct a study and review of the results of 
     shareholder advisory votes on executive compensation held 
     pursuant to this section and the effects of such votes. Not 
     later than 5 years after the date of enactment of this title, 
     the Securities and Exchange Commission shall submit a report 
     to the Congress on the results of the study and review 
     required by this subsection.

     SEC. 5003. COMPENSATION COMMITTEE INDEPENDENCE.

       (a) Standards Relating to Compensation Committees.--The 
     Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended by 
     inserting after section 10A the following new section:

     ``SEC. 10B. STANDARDS RELATING TO COMPENSATION COMMITTEES.

       ``(a) Commission Rules.--
       ``(1) In general.--Effective not later than 270 days after 
     the date of enactment of the Corporate and Financial 
     Institution Compensation Fairness Act of 2009, the Commission 
     shall, by rule, direct the national securities exchanges and 
     national securities associations to prohibit the listing of 
     any security of an issuer that is not in compliance with the 
     requirements of any portion of subsections (b) through (f).
       ``(2) Opportunity to cure defects.--The rules of the 
     Commission under paragraph (1) shall provide for appropriate 
     procedures for an issuer to have an opportunity to cure any 
     defects that would be the basis for a prohibition under 
     paragraph (1) before the imposition of such prohibition.
       ``(3) Exemption authority.--The Commission may exempt 
     certain categories of issuers from the requirements of 
     subsections (b) through (f), where appropriate in view of the 
     purpose of this section. In determining appropriate 
     exemptions, the Commission shall take into account, among 
     other considerations, the potential impact on smaller 
     reporting issuers.
       ``(4) No federal preemption.--If the law of the State under 
     which an issuer is incorporated provides for a procedure for 
     the board of directors to establish an independent 
     compensation committee, then such State law shall be 
     controlling and nothing in this section shall preempt such 
     State law.
       ``(b) Independence of Compensation Committees.--
       ``(1) In general.--Each member of the compensation 
     committee of the board of directors of the issuer shall be a 
     member of the board of directors of the issuer, and shall 
     otherwise be independent.
       ``(2) Criteria.--The Commission shall, by rule, establish 
     the criteria for determining whether a director is 
     independent for purposes of this subsection. Such rules shall 
     require that a member of a compensation committee of an 
     issuer may not, other than in his or her capacity as a member 
     of the compensation committee, the board of directors, or any 
     other board committee--
       ``(A) accept any consulting, advisory, or other 
     compensatory fee from the issuer; or
       ``(B) be an affiliated person of the issuer or any 
     subsidiary thereof.
       ``(3) Exemptive authority.--The Commission may exempt from 
     the requirements of paragraph (2) a particular relationship 
     with respect to compensation committee members, where 
     appropriate in view of the purpose of this section.
       ``(4) Definition.--As used in this section, the term 
     `compensation committee' means--

[[Page 31404]]

       ``(A) a committee (or equivalent body) established by and 
     amongst the board of directors of an issuer for the purpose 
     of determining and approving the compensation arrangements 
     for the executive officers of the issuer; and
       ``(B) if no such committee exists with respect to an 
     issuer, the independent members of the entire board of 
     directors.
       ``(c) Independence Standards for Compensation Consultants 
     and Other Committee Advisors.--The charter of the 
     compensation committee of the board of directors of an issuer 
     shall set forth that any outside compensation consultant 
     formally engaged or retained by the compensation committee 
     shall meet standards for independence to be promulgated by 
     the Commission.
       ``(d) Compensation Committee Authority Relating to 
     Compensation Consultants.--
       ``(1) In general.--The compensation committee of each 
     issuer, in its capacity as a committee of the board of 
     directors, shall have the authority, in its sole discretion, 
     to retain and obtain the advice of a compensation consultant 
     meeting the standards for independence promulgated pursuant 
     to subsection (c), and the compensation committee shall be 
     directly responsible for the appointment, compensation, and 
     oversight of the work of such independent compensation 
     consultant. This provision shall not be construed to require 
     the compensation committee to implement or act consistently 
     with the advice or recommendations of the compensation 
     consultant, and shall not otherwise affect the compensation 
     committee's ability or obligation to exercise its own 
     judgment in fulfillment of its duties.
       ``(2) Disclosure.--In any proxy or consent solicitation 
     material for an annual meeting of the shareholders (or a 
     special meeting in lieu of the annual meeting) occurring on 
     or after the date that is 1 year after the date of enactment 
     of the Corporate and Financial Institution Compensation 
     Fairness Act of 2009, each issuer shall disclose in the proxy 
     or consent material, in accordance with regulations to be 
     promulgated by the Commission whether the compensation 
     committee of the issuer retained and obtained the advice of a 
     compensation consultant meeting the standards for 
     independence promulgated pursuant to subsection (c).
       ``(e) Authority To Engage Independent Counsel and Other 
     Advisors.--The compensation committee of each issuer, in its 
     capacity as a committee of the board of directors, shall have 
     the authority, in its sole discretion, to retain and obtain 
     the advice of independent counsel and other advisers meeting 
     the standards for independence promulgated pursuant to 
     subsection (c), and the compensation committee shall be 
     directly responsible for the appointment, compensation, and 
     oversight of the work of such independent counsel and other 
     advisers. This provision shall not be construed to require 
     the compensation committee to implement or act consistently 
     with the advice or recommendations of such independent 
     counsel and other advisers, and shall not otherwise affect 
     the compensation committee's ability or obligation to 
     exercise its own judgment in fulfillment of its duties.
       ``(f) Funding.--Each issuer shall provide for appropriate 
     funding, as determined by the compensation committee, in its 
     capacity as a committee of the board of directors, for 
     payment of compensation--
       ``(1) to any compensation consultant to the compensation 
     committee that meets the standards for independence 
     promulgated pursuant to subsection (c); and
       ``(2) to any independent counsel or other adviser to the 
     compensation committee.''.
       (b) Study and Review Required.--
       (1) In general.--The Securities Exchange Commission shall 
     conduct a study and review of the use of compensation 
     consultants meeting the standards for independence 
     promulgated pursuant to section 10B(c) of the Security 
     Exchange Act of 1934 (as added by subsection (a)), and the 
     effects of such use.
       (2) Report to congress.--Not later than 3 years after the 
     date of enactment of this title, the Commission shall submit 
     a report to the Congress on the results of the study and 
     review required by this paragraph.

                    TITLE VI--CREDIT RATING AGENCIES

     SEC. 6001. CHANGES TO DESIGNATION.

       The Securities Act of 1933 and the Securities Exchange Act 
     of 1934 are each amended by striking ``nationally recognized 
     statistical rating'' each place it appears and inserting 
     ``nationally registered statistical rating''.

     SEC. 6002. REMOVAL OF STATUTORY REFERENCES TO CREDIT RATINGS.

       (a) Federal Deposit Insurance Act.--The Federal Deposit 
     Insurance Act (12 U.S.C. 1811 et seq.) is amended--
       (1) in section 28(d)--
       (A) in the subsection heading, by striking ``not of 
     investment grade'';
       (B) in paragraph (1), by striking ``not of investment 
     grade'' and inserting ``that does not meet standards of 
     credit-worthiness as established by the Corporation'';
       (C) in paragraph (2), by striking ``not of investment 
     grade'';
       (D) by striking paragraph (3) and redesignating paragraph 
     (4) as paragraph (3); and
       (E) in paragraph (3) (as so redesignated)--
       (i) by striking subparagraph (A) and redesignating 
     subparagraphs (B) and (C) as subparagraphs (A) and (B), 
     respectively; and
       (ii) in subparagraph (B) (as so redesignated), by striking 
     ``not of investment grade'' and inserting ``that does not 
     meet standards of credit-worthiness as established by the 
     Corporation'';
       (2) in section 28(e)--
       (A) in the subsection heading, by striking ``not of 
     investment grade'';
       (B) in paragraph (1), by striking ``not of investment 
     grade'' and inserting ``that does not meet standards of 
     credit-worthiness as established by the Corporation''; and
       (C) in paragraphs (2) and (3), by striking ``not of 
     investment grade'' each place that it appears and inserting 
     ``that does not meet standards of credit-worthiness 
     established by the Corporation''; and
       (3) in section 7(b)(1)(E)(i), by striking ``credit rating 
     entities, and other private economic'' and inserting 
     ``private economic, credit,''.
       (b) Federal Housing Enterprises Financial Safety and 
     Soundness Act of 1992.--Section 1319 of the Federal Housing 
     Enterprises Financial Safety and Soundness Act of 1992 (12 
     U.S.C. 4519) is amended--
       (1) in the section heading, by striking ``by rating 
     organization''; and
       (2) by striking ``that is a nationally recognized 
     statistical rating organization, as such term is defined in 
     section 3(a) of the Securities Exchange Act of 1934,''.
       (c) Investment Company Act of 1940.--Section 
     6(a)(5)(A)(iv)(I) of the Investment Company Act of 1940 (15 
     U.S.C. 80a-6(a)(5)(A)(iv)(I)) is amended by striking ``is 
     rated investment grade by not less than 1 nationally 
     recognized statistical rating organization'' and inserting 
     ``meets such standards of credit-worthiness that the 
     Commission shall adopt''.
       (d) Revised Statutes.--Section 5136A of title LXII of the 
     Revised Statutes of the United States (12 U.S.C. 24a) is 
     amended--
       (1) in subsection (a)(2)(E), by striking ``any applicable 
     rating'' and inserting ``standards of credit worthiness 
     established by the Comptroller of the Currency'';
       (2) in the heading for subsection (a)(3) by striking 
     ``rating or comparable requirement'' and inserting 
     ``requirement'';
       (3) in subsection (a)(3), by amending subparagraph (A) to 
     read as follows:
       ``(A) In general.--A national bank meets the requirements 
     of this paragraph if the bank is one of the 100 largest 
     insured banks and has not fewer than 1 issue of outstanding 
     debt that meets standards of credit-worthiness or other 
     criteria as the Secretary of the Treasury and the Board of 
     Governors of the Federal Reserve System may jointly 
     establish.'';
       (4) in the heading for subsection (f), by striking 
     ``maintain public rating or'' and inserting ``meet standards 
     of credit-worthiness''; and
       (5) in subsection (f)(1), by striking ``any applicable 
     rating'' and inserting ``standards of credit-worthiness 
     established by the Comptroller of the Currency''.
       (e) Securities Exchange Act of 1934.--Section 3(a) 
     Securities Exchange Act of 1934 (15 U.S.C. 78a(3)(a)) is 
     amended--
       (1) in paragraph (41), by striking ``is rated in one of the 
     two highest rating categories by at least one nationally 
     recognized statistical rating organization'' and inserting 
     ``meets standards of credit-worthiness as defined by the 
     Commission''; and
       (2) in paragraph (53)(A), by striking ``is rated in 1 of 
     the 4 highest rating categories by at least 1 nationally 
     recognized statistical rating organization'' and inserting 
     ``meets standards of credit-worthiness as defined by the 
     Commission''.
       (f) World Bank Discussions.--Section 3(a)(6) of the 
     amendment in the nature of a substitute to the text of H.R. 
     4645, as ordered reported from the Committee on Banking, 
     Finance and Urban Affairs on September 22, 1988, as enacted 
     into law by section 555 of Public Law 100-461, (22 U.S.C. 
     286hh(a)(6)), is amended by striking ``rating'' and inserting 
     ``worthiness''.
       (g) Effective Date.--The amendments made by this section 
     shall take effect after the end of the 6-month period 
     beginning on the date of the enactment of this title.

     SEC. 6003. REVIEW OF RELIANCE ON RATINGS.

       (a) Agency Review.--
       (1) Review.--Not later than 1 year after the date of the 
     enactment of this title, each Federal agency listed in 
     paragraph (4) shall, to the extent applicable, review--
       (A) any regulation issued by such agency that requires the 
     use of an assessment of the credit-worthiness of a security 
     or money market instrument; and
       (B) any references to or requirements in such regulations 
     regarding credit ratings.
       (2) Modifications required.--Each such agency shall modify 
     any such regulations identified by the review conducted under 
     paragraph (1) to remove any reference to or requirement of 
     reliance on credit ratings and to substitute in such 
     regulations such standard of credit-worthiness as each 
     respective agency shall determine as appropriate for such 
     regulations. In making such determination, such agencies 
     shall seek to establish, to the extent feasible, uniform 
     standards of credit-worthiness for use by each such agency, 
     taking into account the entities regulated by each such 
     agency and the purposes for which such entities would rely on 
     such standards of credit-worthiness.

[[Page 31405]]

       (3) Report.--Upon conclusion of the review required under 
     paragraph (1), each Federal agency listed in paragraph (4) 
     shall transmit a report to the Congress containing a 
     description of any modification of any regulation such agency 
     made pursuant to paragraph (2).
       (4) Applicable agencies.--The agencies required to conduct 
     the review and report required by this subsection are--
       (A) the Securities and Exchange Commission;
       (B) the Federal Deposit Insurance Corporation;
       (C) the Office of Thrift Supervision;
       (D) the Office of the Comptroller of the Currency;
       (E) the Board of Governors of the Federal Reserve;
       (F) the National Credit Union Administration; and
       (G) the Federal Housing Finance Agency.
       (b) GAO Review of Other Agencies.--
       (1) Review.--The Comptroller General of the United States 
     shall conduct a comprehensive review of the use of credit 
     ratings by Federal agencies other than those listed in 
     subsection (a)(4), including an analysis of the provisions of 
     law or regulation applicable to each such agency that refer 
     to and require the use of credit ratings by the agency, and 
     the policies and practices of each agency with respect to 
     credit ratings.
       (2) Report.--Not later than 1 year after the date of the 
     enactment of this title, the Comptroller General shall 
     transmit to the Congress a report on the findings of the 
     study conducted pursuant to paragraph (1), including 
     recommendations for any legislation or rulemaking necessary 
     or appropriate in order for such agencies to reduce their 
     reliance on credit ratings.

           TITLE VII--GOVERNMENT-SPONSORED ENTERPRISES REFORM

     SEC. 7001. SHORT TITLE.

       This title may be cited as the ``Government-Sponsored 
     Enterprises Free Market Reform Act of 2009''.

     SEC. 7002. DEFINITIONS.

       For purposes of this title, the following definitions shall 
     apply:
       (1) Charter.--The term ``charter'' means--
       (A) with respect to the Federal National Mortgage 
     Association, the Federal National Mortgage Association 
     Charter Act (12 U.S.C. 1716 et seq.); and
       (B) with respect to the Federal Home Loan Mortgage 
     Corporation, the Federal Home Loan Mortgage Corporation Act 
     (12 U.S.C. 1451 et seq.).
       (2) Director.--The term ``Director'' means the Director of 
     the Federal Housing Finance Agency.
       (3) Enterprise.--The term ``enterprise'' means--
       (A) the Federal National Mortgage Association; and
       (B) the Federal Home Loan Mortgage Corporation.
       (4) Guarantee.--The term ``guarantee'' means, with respect 
     to an enterprise, the credit support of the enterprise that 
     is provided by the Federal Government through its charter as 
     a Government-sponsored enterprise.

     SEC. 7003. TERMINATION OF CURRENT CONSERVATORSHIP.

       (a) In General.--Upon the expiration of the period referred 
     to in subsection (b), the Director of the Federal Housing 
     Finance Agency shall determine, with respect to each 
     enterprise, if the enterprise is financially viable at that 
     time and--
       (1) if the Director determines that the enterprise is 
     financially viable, immediately take all actions necessary to 
     terminate the conservatorship for each of the enterprises; or
       (2) if the Director determines that the enterprise is not 
     financially viable, immediately appoint the Federal Housing 
     Finance Agency as receiver under section 1367 of the Federal 
     Housing Enterprises Financial Safety and Soundness Act of 
     1992 and carry out such receivership under the authority of 
     such section.
       (b) Timing.--The period referred to in this subsection is, 
     with respect to an enterprise--
       (1) except as provided in paragraph (2), the 24-month 
     period beginning upon the date of the enactment of this 
     title; or
       (2) if the Director determines before the expiration of the 
     period referred to in paragraph (1) that the financial 
     markets would be adversely affected without the extension of 
     such period under this paragraph with respect to that 
     enterprise, the 30-month period beginning upon the date of 
     the enactment of this title.
       (c) Financial Viability.--The Director may not determine 
     that an enterprise is financially viable for purposes of 
     subsection (a) if the Director determines that any of the 
     conditions for receivership set forth in paragraph (3) or (4) 
     of section 1367(a) of the Federal Housing Enterprises 
     Financial Safety and Soundness Act of 1992 (12 U.S.C. 
     4617(a)) exists at the time with respect to the enterprise.

     SEC. 7004. LIMITATION OF ENTERPRISE AUTHORITY UPON EMERGENCE 
                   FROM CONSERVATORSHIP.

       (a) Revised Authority.--Upon the expiration of the period 
     referred to in section 7003(b), if the Director makes the 
     determination under section 7003(a)(1), the following 
     provisions shall take effect:
       (1) Portfolio limitations.--Subtitle B of title XIII of the 
     Housing and Community Development Act of 1992 (12 U.S.C. 4611 
     et seq.) is amended by adding at the end the following new 
     section:

     ``SEC. 1369E. RESTRICTION ON MORTGAGE ASSETS OF ENTERPRISES.

       ``(a) Restriction.--No enterprise shall own, as of any 
     applicable date in this subsection or thereafter, mortgage 
     assets in excess of--
       ``(1) upon the expiration of the period referred to in 
     section 7003(b) of the Government-Sponsored Enterprises Free 
     Market Reform Act of 2009, $850,000,000,000; or
       ``(2) on December 31 of each year thereafter, 80.0 percent 
     of the aggregate amount of mortgage assets of the enterprise 
     as of December 31 of the immediately preceding calendar year;

     except that in no event shall an enterprise be required under 
     this section to own less than $250,000,000,000 in mortgage 
     assets.
       ``(b) Definition of Mortgage Assets.--For purposes of this 
     section, the term `mortgage assets' means, with respect to an 
     enterprise, assets of such enterprise consisting of 
     mortgages, mortgage loans, mortgage-related securities, 
     participation certificates, mortgage-backed commercial paper, 
     obligations of real estate mortgage investment conduits and 
     similar assets, in each case to the extent such assets would 
     appear on the balance sheet of such enterprise in accordance 
     with generally accepted accounting principles in effect in 
     the United States as of September 7, 2008 (as set forth in 
     the opinions and pronouncements of the Accounting Principles 
     Board and the American Institute of Certified Public 
     Accountants and statements and pronouncements of the 
     Financial Accounting Standards Board from time to time; and 
     without giving any effect to any change that may be made 
     after September 7, 2008, in respect of Statement of Financial 
     Accounting Standards No. 140 or any similar accounting 
     standard).''.
       (2) Increase in minimum capital requirement.--Section 1362 
     of the Federal Housing Enterprises Financial Safety and 
     Soundness Act of 1992 (12 U.S.C. 4612), as amended by section 
     1111 of the Housing and Economic Recovery Act of 2008 (Public 
     Law 110-289), is amended--
       (A) in subsection (a), by striking ``For purposes of this 
     subtitle, the minimum capital level for each enterprise shall 
     be'' and inserting ``The minimum capital level established 
     under subsection (g) for each enterprise may not be lower 
     than'';
       (B) in subsection (c)--
       (i) by striking ``subsections (a) and'' and inserting 
     ``subsection'';
       (ii) by striking ``regulated entities'' the first place 
     such term appears and inserting ``Federal Home Loan Banks'';
       (iii) by striking ``for the enterprises,'';
       (iv) by striking ``, or for both the enterprises and the 
     banks,'';
       (v) by striking ``the level specified in subsection (a) for 
     the enterprises or''; and
       (vi) by striking ``the regulated entities operate'' and 
     inserting ``such banks operate'';
       (C) in subsection (d)(1)--
       (i) by striking ``subsections (a) and'' and inserting 
     ``subsection''; and
       (ii) by striking ``regulated entity'' each place such term 
     appears and inserting ``Federal home loan bank'';
       (D) in subsection (e), by striking ``regulated entity'' 
     each place such term appears and inserting ``Federal home 
     loan bank'';
       (E) in subsection (f)--
       (i) by striking ``the amount of core capital maintained by 
     the enterprises,''; and
       (ii) by striking ``regulated entities'' and inserting 
     ``banks''; and
       (F) by adding at the end the following new subsection:
       ``(g) Establishment of Revised Minimum Capital Levels.--
       ``(1) In general.--The Director shall cause the enterprises 
     to achieve and maintain adequate capital by establishing 
     minimum levels of capital for the enterprises and by using 
     such other methods as the Director deems appropriate.
       ``(2) Authority.--The Director shall have the authority to 
     establish such minimum level of capital for an enterprise in 
     excess of the level specified under subsection (a) as the 
     Director, in the Director's discretion, deems to be necessary 
     or appropriate in light of the particular circumstances of 
     the enterprise.
       ``(h) Failure To Maintain Revised Minimum Capital Levels.--
       ``(1) Unsafe and unsound practice or condition.--Failure of 
     an enterprise to maintain capital at or above its minimum 
     level as established pursuant to subsection (c) of this 
     section may be deemed by the Director, in his discretion, to 
     constitute an unsafe and unsound practice or condition within 
     the meaning of this title.
       ``(2) Directive to achieve capital level.--
       ``(A) Authority.--In addition to, or in lieu of, any other 
     action authorized by law, including paragraph (1), the 
     Director may issue a directive to an enterprise that fails to 
     maintain capital at or above its required level as 
     established pursuant to subsection (c) of this section.

[[Page 31406]]

       ``(B) Plan.--Such directive may require the enterprise to 
     submit and adhere to a plan acceptable to the Director 
     describing the means and timing by which the enterprise shall 
     achieve its required capital level.
       ``(C) Enforcement.--Any such directive issued pursuant to 
     this paragraph, including plans submitted pursuant thereto, 
     shall be enforceable under the provisions of subtitle C of 
     this title to the same extent as an effective and outstanding 
     order issued pursuant to subtitle C of this title which has 
     become final.
       ``(3) Adherence to plan.--
       ``(A) Consideration.--The Director may consider such 
     enterprise's progress in adhering to any plan required under 
     this subsection whenever such enterprise seeks the requisite 
     approval of the Director for any proposal which would divert 
     earnings, diminish capital, or otherwise impede such 
     enterprise's progress in achieving its minimum capital level.
       ``(B) Denial.--The Director may deny such approval where it 
     determines that such proposal would adversely affect the 
     ability of the enterprise to comply with such plan.''.
       (3) Repeal of increases to conforming loan limits.--
       (A) Repeal of temporary increases.--
       (i) Economic stimulus act of 2008.--Section 201 of the 
     Economic Stimulus Act of 2008 (Public Law 110-185) is hereby 
     repealed.
       (ii) American recovery and reinvestment act of 2009.--
     Section 1203 of division A of the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 225) is 
     hereby repealed.
       (B) Repeal of general limit and permanent high-cost area 
     increase.--Paragraph (2) of section 302(b) of the Federal 
     National Mortgage Association Charter Act (12 U.S.C. 
     1717(b)(2)) and paragraph (2) of section 305(a) of the 
     Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
     1454(a)(2)) are each amended to read as such sections were in 
     effect immediately before the enactment of the Housing and 
     Economic Recovery Act of 2008 (Public Law 110-289).
       (C) Repeal of new housing price index.--Section 1322 of the 
     Federal Housing Enterprises Financial Safety and Soundness 
     Act of 1992, as added by section 1124(d) of the Housing and 
     Economic Recovery Act of 2008 (Public Law 110-289), is hereby 
     repealed.
       (D) Repeal.--Section 1124 of the Housing and Economic 
     Recovery Act of 2008 (Public Law 110-289) is hereby repealed.
       (E) Establishment of conforming loan limit.--For the year 
     in which the expiration of the period referred to in section 
     7003(b) of this section occurs, the limitations governing the 
     maximum original principal obligation of conventional 
     mortgages that may be purchased by the Federal National 
     Mortgage Association and the Federal Home Loan Mortgage 
     Corporation, referred to in section 302(b)(2) of the Federal 
     National Mortgage Association Charter Act (12 U.S.C. 
     1717(b)(2)) and section 305(a)(2) of the Federal Home Loan 
     Mortgage Corporation Act (12 U.S.C. 1454(a)(2)), 
     respectively, shall be considered to be--
       (i) $417,000 for a mortgage secured by a single-family 
     residence,
       (ii) $533,850 for a mortgage secured by a 2-family 
     residence,
       (iii) $645,300 for a mortgage secured by a 3-family 
     residence, and
       (iv) $801,950 for a mortgage secured by a 4-family 
     residence,

     and such limits shall be adjusted effective each January 1 
     thereafter in accordance with such sections 302(b)(2) and 
     305(a)(2).
       (F) Prohibition of purchase of mortgages exceeding median 
     area home price.--
       (i) Fannie mae.--Section 302(b)(2) of the Federal National 
     Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)) is 
     amended by adding at the end the following new sentence: 
     ``Notwithstanding any other provision of this title, the 
     corporation may not purchase any mortgage for a property 
     having a principal obligation that exceeds the median home 
     price, for properties of the same size, for the area in which 
     such property subject to the mortgage is located.''.
       (ii) Freddie mac.--Section 305(a)(2) of the Federal Home 
     Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) is 
     amended by adding at the end the following new sentence: 
     ``Notwithstanding any other provision of this title, the 
     Corporation may not purchase any mortgage for a property 
     having a principal obligation that exceeds the median home 
     price, for properties of the same size, for the area in which 
     such property subject to the mortgage is located.''.
       (4) Requirement to pay state and local taxes.--
       (A) Fannie mae.--Paragraph (2) of section 309(c) of the 
     Federal National Mortgage Association Charter Act (12 U.S.C. 
     1723a(c)(2)) is amended--
       (i) by striking ``shall be exempt from'' and inserting 
     ``shall be subject to''; and
       (ii) by striking ``except that any'' and inserting ``and 
     any''.
       (B) Freddie mac.--Section 303(e) of the Federal Home Loan 
     Mortgage Corporation Act (12 U.S.C. 1452(e)) is amended--
       (i) by striking ``shall be exempt from'' and inserting 
     ``shall be subject to''; and
       (ii) by striking ``except that any'' and inserting ``and 
     any''.
       (5) Repeals relating to registration of securities.--
       (A) Fannie mae.--
       (i) Mortgage-backed securities.--Section 304(d) of the 
     Federal National Mortgage Association Charter Act (12 U.S.C. 
     1719(d)) is amended by striking the fourth sentence.
       (ii) Subordinate obligations.--Section 304(e) of the 
     Federal National Mortgage Association Charter Act (12 U.S.C. 
     1719(e)) is amended by striking the fourth sentence.
       (B) Freddie mac.--Section 306 of the Federal Home Loan 
     Mortgage Corporation Act (12 U.S.C. 1455) is amended by 
     striking subsection (g).
       (6) Recoupment of costs for federal guarantee.--
       (A) Assessments.--The Director of the Federal Housing 
     Finance Agency shall establish and collect from each 
     enterprise assessments in the amount determined under 
     subparagraph (B). In determining the method and timing for 
     making such assessments, the Director shall take into 
     consideration the determinations and conclusions of the study 
     under subsection (b) of this section.
       (B) Determination of costs of guarantee.--Assessments under 
     subparagraph (A) with respect to an enterprise shall be in 
     such amount as the Director determines necessary to recoup to 
     the Federal Government the full value of the benefit the 
     enterprise receives from the guarantee provided by the 
     Federal Government for the obligations and financial 
     viability of the enterprise, based upon the dollar value of 
     such benefit in the market to such enterprise when not 
     operating under conservatorship or receivership. To determine 
     such amount, the Director shall establish a risk-based 
     pricing mechanism as the Director considers appropriate, 
     taking into consideration the determinations and conclusions 
     of the study under subsection (b) of this section.
       (C) Treatment of recouped amounts.--The Director shall 
     cover into the general fund of the Treasury any amounts 
     received from assessments made under this paragraph.
       (b) GAO Study Regarding Recoupment of Costs for Federal 
     Government Guarantee.--The Comptroller General of the United 
     States shall conduct a study to determine a risk-based 
     pricing mechanism to accurately determine the value of the 
     benefit the enterprises receive from the guarantee provided 
     by the Federal Government for the obligations and financial 
     viability of the enterprises. Such study shall establish a 
     dollar value of such benefit in the market to each enterprise 
     when not operating under conservatorship or receivership, 
     shall analyze various methods of the Federal Government 
     assessing a charge for such value received (including methods 
     involving an annual fee or a fee for each mortgage purchased 
     or securitized), and shall make a recommendation of the best 
     such method for assessing such charge. Not later than 12 
     months after the date of the enactment of this title, the 
     Comptroller General shall submit to the Congress a report 
     setting forth the determinations and conclusions of such 
     study.

     SEC. 7005. REQUIREMENT TO PERIODICALLY RENEW CHARTER UNTIL 
                   WIND DOWN AND DISSOLUTION.

       (a) Required Renewal; Wind Down and Dissolution Upon Non-
     Renewal.--Upon the expiration of the 3-year period that 
     begins upon the expiration of the period referred to in 
     section 7003(b), unless the charter of an enterprise is 
     renewed pursuant to subsection (b) of this section, section 
     7006 (relating to wind down of operations and dissolution of 
     enterprise) shall apply to the enterprise.
       (b) Renewal Procedure.--
       (1) Application; timing.--The Director shall provide for 
     each enterprise to apply to the Director, before the 
     expiration of the 3-year period under subsection (a), for 
     renewal of the charter of the enterprise.
       (2) Standard.--The Director shall approve the application 
     of an enterprise for the renewal of the charter of the 
     enterprise if--
       (A) the application includes a certification by the 
     enterprise that the enterprise is financially sound and is 
     complying with all provisions of, and amendments made by, 
     section 7004 of this title applicable to such enterprise; and
       (B) the Director verifies that the certification made 
     pursuant to subparagraph (A) is accurate.
       (c) Option To Reapply.--Nothing in this section may be 
     construed to require an enterprise to apply under this 
     section for renewal of the charter of the enterprise.

     SEC. 7006. REQUIRED WIND DOWN OF OPERATIONS AND DISSOLUTION 
                   OF ENTERPRISE.

       (a) Applicability.--This section shall apply to an 
     enterprise--
       (1) upon the expiration of the 3-year period referred to in 
     such section 7005(a), to the extent provided in such section; 
     and
       (2) if this section has not previously applied to the 
     enterprise, upon the expiration of the 6-year period that 
     begins upon the expiration of the period referred to in 
     section 7003(b).
       (b) Wind Down.--Upon the applicability of this section to 
     an enterprise, the Director and the Secretary of the Treasury 
     shall jointly take such action, and may prescribe such 
     regulations and procedures, as may be necessary to wind down 
     the operations of an enterprise as an entity chartered by the 
     United States Government over the duration

[[Page 31407]]

     of the 10-year period beginning upon the applicability of 
     this section to the enterprise (pursuant to subsection (a)) 
     in an orderly manner consistent with this title and the 
     ongoing obligations of the enterprise.
       (c) Division of Assets and Liabilities; Authority To 
     Establish Holding Corporation and Dissolution Trust Fund.--
     The action and procedures required under subsection (b)--
       (1) shall include the establishment and execution of plans 
     to provide for an equitable division and distribution of 
     assets and liabilities of the enterprise, including any 
     liability of the enterprise to the United States Government 
     or a Federal reserve bank that may continue after the end of 
     the period described in subsection (b); and
       (2) may provide for establishment of--
       (A) a holding corporation organized under the laws of any 
     State of the United States or the District of Columbia for 
     the purposes of the reorganization and restructuring of the 
     enterprise; and
       (B) one or more trusts to which to transfer--
       (i) remaining debt obligations of the enterprise, for the 
     benefit of holders of such remaining obligations; or
       (ii) remaining mortgages held for the purpose of backing 
     mortgage-backed securities, for the benefit of holders of 
     such remaining securities.
       (d) Repeal of Charter.--Effective upon the expiration of 
     the 10-year period referred to in subsection (b) for an 
     enterprise, the charter for the enterprise is repealed, 
     except that the provisions of such charter in effect 
     immediately before such repeal shall continue to apply with 
     respect to the rights and obligations of any holders of 
     outstanding debt obligations and mortgage-backed securities 
     of the enterprise.

                  TITLE VIII--FEDERAL INSURANCE OFFICE

     SEC. 8001. SHORT TITLE.

       This title may be cited as the ``Federal Insurance Office 
     Act of 2009''.

     SEC. 8002. FEDERAL INSURANCE OFFICE ESTABLISHED.

       (a) Establishment of Office.--Subchapter I of chapter 3 of 
     title 31, United States Code, is amended--
       (1) by transferring and inserting section 312 after section 
     313;
       (2) by redesignating sections 313 and 312 (as so 
     transferred) as sections 312 and 315, respectively; and
       (3) by inserting after section 312 (as so redesignated) the 
     following new sections:

     ``SEC. 313. FEDERAL INSURANCE OFFICE.

       ``(a) Establishment of Office.--There is established the 
     Federal Insurance Office as an office in the Department of 
     the Treasury.
       ``(b) Leadership.--The Office shall be headed by a 
     Director, who shall be appointed by the Secretary of the 
     Treasury. The position of such Director shall be a career 
     reserved position in the Senior Executive Service.
       ``(c) Functions.--
       ``(1) Authority pursuant to direction of secretary.--The 
     Office shall have the authority, pursuant to the direction of 
     the Secretary, as follows:
       ``(A) To monitor the insurance industry to gain expertise.
       ``(B) To identify issues or gaps in the regulation of 
     insurers that could contribute to a systemic crisis in the 
     insurance industry or the United States financial system.
       ``(C) To recommend for review by the Market Stability and 
     Capital Adequacy Board any activities or practices by 
     insurers or their affiliates that may be exacerbating 
     systemic risk.
       ``(D) To assist the Secretary in administering the 
     Terrorism Insurance Program established in the Department of 
     the Treasury under the Terrorism Risk Insurance Act of 2002 
     (15 U.S.C. 6701 note).
       ``(E) To coordinate Federal efforts and develop Federal 
     policy on prudential aspects of international insurance 
     matters, including representing the United States as 
     appropriate in the International Association of Insurance 
     Supervisors or any successor organization and assisting the 
     Secretary in negotiating covered agreements.
       ``(F) To determine, in accordance with subsection (f), 
     whether State insurance measures are preempted by covered 
     agreements.
       ``(G) To consult with the States regarding insurance 
     matters of national importance and prudential insurance 
     matters of international importance.
       ``(H) To perform such other related duties and authorities 
     as may be assigned to it by the Secretary.
       ``(2) Advisory functions.--The Office shall advise the 
     Secretary on major domestic and prudential international 
     insurance policy issues.
       ``(d) Scope.--The authority of the Office shall extend to 
     all lines of insurance except health insurance, as determined 
     by the Secretary based on section 2791 of the Public Health 
     Service Act (42 U.S.C. 300gg-91).
       ``(e) Gathering of Information.--
       ``(1) General.--In carrying out its functions under 
     subsection (c), the Office may request, receive, and collect 
     data and information on and from the insurance industry and 
     insurers, enter into information-sharing agreements, analyze 
     and disseminate data and information, and issue reports 
     regarding all lines of insurance except health insurance.
       ``(2) Collection of information from insurers and 
     affiliates.--Except as provided in paragraph (3) and subject 
     to paragraph (4), the Office may require an insurer, or 
     affiliate of an insurer, to submit such data or information 
     that the Office may reasonably require in carrying out its 
     functions under subsection (c). Notwithstanding subsection 
     (p) and for the purposes of this paragraph only, the term 
     `insurer' means any entity that is authorized to write 
     insurance or reinsure risks and issue contracts or policies 
     in one or more States.
       ``(3) Exception for small insurers.--Paragraph (2) shall 
     not apply with respect to any insurer or affiliate thereof 
     that meets a minimum size threshold that may be established 
     by the Office by order or rule. Such threshold shall be 
     appropriate to the particular request and need for the data 
     or information.
       ``(4) Advance coordination.--Before collecting any data or 
     information under paragraph (2) from an insurer, or affiliate 
     of an insurer, the Office shall coordinate with each relevant 
     Federal agency and State insurance regulator (or other 
     relevant Federal or State regulatory agency, if any, in the 
     case of an affiliate of an insurer) and any publicly 
     available sources to determine if the information to be 
     collected is available from, or may be obtained in a timely 
     manner by, such Federal agency or State insurance regulator, 
     individually or collectively, other regulatory agency, or 
     publicly available sources. If the Director determines that 
     such data or information is available, or may be obtained in 
     a timely manner, from such an agency, regulator, regulatory 
     agency, or source, the Director shall obtain the data or 
     information from such agency, regulator, regulatory agency, 
     or source. If the Director determines that such data or 
     information is not so available, the Director may collect 
     such data or information from an insurer (or affiliate) only 
     if the Director complies with the requirements of subchapter 
     I of chapter 35 of title 44, United States Code (relating to 
     Federal information policy; commonly known as the Paperwork 
     Reduction Act) in collecting such data or information. 
     Notwithstanding any other provision of law, each such 
     relevant Federal agency and State insurance regulator or 
     other Federal or State regulatory agency is authorized to 
     provide to the Office such data or information.
       ``(5) Confidentiality.--
       ``(A) The submission of any non-publicly available data and 
     information to the Office under this subsection shall not 
     constitute a waiver of, or otherwise affect, any privilege 
     arising under Federal or State law (including the rules of 
     any Federal or State Court) to which the data or information 
     is otherwise subject.
       ``(B) Any requirement under Federal or State law to the 
     extent otherwise applicable, or any requirement pursuant to a 
     written agreement in effect between the original source of 
     any non-publicly available data or information and the source 
     of such data or information to the Office, regarding the 
     privacy or confidentiality of any data or information in the 
     possession of the source to the Office, shall continue to 
     apply to such data or information after the data or 
     information has been provided pursuant to this subsection to 
     the Office.
       ``(C) Any data or information obtained by the Office may be 
     made available to State insurance regulators individually or 
     collectively through an information sharing agreement that 
     shall comply with applicable Federal law and that shall not 
     constitute a waiver of, or otherwise affect, any privilege 
     under Federal or State law (including the rules of any 
     Federal or State Court) to which the data or information is 
     otherwise subject.
       ``(D) Section 552 of title 5, United States Code, shall 
     apply to any data or information submitted by an insurer or 
     affiliate of an insurer.
       ``(f) Preemption of State Insurance Measures.--
       ``(1) Standard.--A State insurance measure shall be 
     preempted pursuant to this section or section 314 if, and 
     only to the extent that the Director determines, in 
     accordance with this subsection, that the measure--
       ``(A) directly results in less favorable treatment of a 
     non-United States insurer domiciled in a foreign jurisdiction 
     that is subject to a covered agreement than a United States 
     insurer domiciled, licensed, admitted, or otherwise 
     authorized in that State; and
       ``(B) is inconsistent with a covered agreement that is 
     entered into on a date after the date of the enactment of 
     this Act.
       ``(2) Determination.--
       ``(A) Notice of potential inconsistency.--Before making any 
     determination of inconsistency, the Director shall--
       ``(i) notify and consult with the appropriate State 
     regarding any potential inconsistency or preemption;
       ``(ii) notify and consult with the United States Trade 
     Representative regarding any potential inconsistency or 
     preemption;
       ``(iii) cause to be published in the Federal Register 
     notice of the issue regarding the potential inconsistency or 
     preemption, including a description of each State insurance 
     measure at issue and any applicable covered agreement;

[[Page 31408]]

       ``(iv) provide interested parties a reasonable opportunity 
     to submit written comments to the Office;
       ``(v) consider the effect of preemption on--

       ``(I) the protection of policyholders and policy claimants;
       ``(II) the maintenance of the safety, soundness, integrity, 
     and financial responsibility of any entity involved in the 
     business of insurance or insurance operations;
       ``(III) ensuring the integrity and stability of the United 
     States financial system; and
       ``(IV) the creation of a gap or void in financial or market 
     conduct regulation of any entity involved in the business of 
     insurance or insurance operations in the United States; and

       ``(vi) consider any comments received.
     The Director shall provide the notifications required under 
     clauses (i), (ii), and (iii) contemporaneously.
       ``(B) Scope of review.--For purposes of this section, the 
     Director's determination of State insurance measures shall be 
     limited to the subject matter of the prudential measures 
     applicable to the business of insurance contained within the 
     covered agreement involved.
       ``(C) Notice of determination of inconsistency.--Upon 
     making any determination of inconsistency, the Director 
     shall--
       ``(i) notify the appropriate State of the determination and 
     the extent of the inconsistency;
       ``(ii) establish a reasonable period of time, which shall 
     not be shorter than 90 days, before the determination shall 
     become effective; and
       ``(iii) notify the Committee on Financial Services of the 
     House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate of the 
     inconsistency.
       ``(3) Notice of effectiveness.--Upon the conclusion of the 
     period referred to in paragraph (2)(C)(ii), if the basis for 
     the determination of inconsistency still exists, the 
     determination shall become effective and the Director shall--
       ``(A) cause to be published notice in the Federal Register 
     that the preemption has become effective, as well as the 
     effective date; and
       ``(B) notify the appropriate State.
       ``(4) Limitation.--No State may enforce a State insurance 
     measure to the extent that it has been preempted under this 
     subsection.
       ``(g) Applicability of Administrative Procedure Act.--
     Determinations of inconsistency pursuant to subsection (f)(2) 
     shall be subject to the applicable provisions of subchapter 
     II of chapter 5 of title 5, United States Code (relating to 
     administrative procedure), and chapter 7 of such title 
     (relating to judicial review), except that in any action for 
     judicial review of a determination of inconsistency, the 
     court shall determine the matter de novo.
       ``(h) Regulations, Policies, and Procedures.--The Secretary 
     may issue orders, regulations, policies and procedures to 
     implement this section.
       ``(i) Consultation.--The Director shall consult with State 
     insurance regulators, individually and collectively, to the 
     extent the Director determines appropriate, in carrying out 
     the functions of the Office.
       ``(j) Savings Provisions.--Nothing in this section shall--
       ``(1) preempt any State insurance measure that governs any 
     insurer's rates, premiums, underwriting or sales practices, 
     or State coverage requirements for insurance, or to the 
     application of the antitrust laws of any State to the 
     business of insurance;
       ``(2) preempt any State insurance measure governing the 
     capital or solvency of an insurer, except to the extent that 
     such State insurance measure directly results in less 
     favorable treatment of a non-United States insurer than a 
     United States insurer;
       ``(3) be construed to alter, amend, or limit the 
     responsibility of any department or agency of the Federal 
     Government to issue regulations under the Truth in Lending 
     Act (15 U.S.C. 1601 et seq.) or any other Federal law 
     regulating the provision of consumer financial products or 
     services;
       ``(4) preempt any State insurance measure because of 
     inconsistency with any agreement that is not a covered 
     agreement (as such term in defined in subsection (p)); or
       ``(5) affect the preemption of any State insurance measure 
     otherwise inconsistent with and preempted by Federal law.
       ``(k) Retention of Existing State Regulatory Authority.--
     Nothing in this section or section 314 shall be construed to 
     establish a general supervisory or regulatory authority of 
     the Office or the Department of the Treasury over the 
     business of insurance.
       ``(l) Retention of Authority of Federal Financial 
     Regulatory Agencies.--Nothing in this section or section 314 
     shall be construed to limit the authority of any Federal 
     financial regulatory agency, including the authority to 
     develop and coordinate policy, negotiate, and enter into 
     agreements with foreign governments, authorities, regulators, 
     and multi-national regulatory committees and to preempt State 
     measures to affect uniformity with international regulatory 
     agreements.
       ``(m) Retention of Authority of United States Trade 
     Representative.--Nothing in this section or section 314 shall 
     be construed to affect the authority of the Office of the 
     United States Trade Representative pursuant to section 141 of 
     the Trade Act of 1974 (19 U.S.C. 2171) or any other provision 
     of law, including authority over the development and 
     coordination of United States international trade policy and 
     the administration of the United States trade agreements 
     program.
       ``(n) Reports to Congress.--
       ``(1) Annual report.--Beginning September 30, 2011, the 
     Director shall submit a report on or before September 30 of 
     each calendar year to the President and to the Committees on 
     Financial Services and Ways and Means of the House of 
     Representatives and the Committees on Banking, Housing, and 
     Urban Affairs and Finance of the Senate on the insurance 
     industry, any actions taken by the office pursuant to 
     subsection (f) (regarding preemption of inconsistent State 
     insurance measures).
       ``(2) Other reports.--The Director shall submit to the 
     President and the Committees referred to in paragraph (1) any 
     other information or reports as deemed relevant by the 
     Director or as requested by the Chairman or Ranking Member of 
     any of such Committees.
       ``(o) Use of Existing Resources.--To carry out this 
     section, the Office may employ personnel, facilities, and 
     other Department of the Treasury resources available to the 
     Secretary and the Secretary shall dedicate specific personnel 
     to the Office.
       ``(p) Definitions.--For purposes of this section and 
     section 314, the following definitions shall apply:
       ``(1) Affiliate.--The term `affiliate' means, with respect 
     to an insurer, any person that controls, is controlled by, or 
     is under common control with the insurer.
       ``(2) Covered agreement.--The term `covered agreement' 
     means a written bilateral or multilateral recognition 
     agreement that--
       ``(A) is entered into between the United States and one or 
     more foreign governments, authorities, or regulatory 
     entities; and
       ``(B) provides for recognition of prudential measures with 
     respect to the business of insurance or reinsurance that 
     achieves a level of protection for insurance or reinsurance 
     consumers that is substantially equivalent to the level of 
     protection achieved under State insurance or reinsurance 
     regulation.
       ``(3) Determination of inconsistency.--The term 
     `determination of inconsistency' means a determination that a 
     State insurance measure is preempted under subsection (f).
       ``(4) Federal financial regulatory agency.--The term 
     `Federal financial regulatory agency' means the Department of 
     the Treasury, the Board of Governors of the Federal Reserve 
     System, the Office of the Comptroller of the Currency, the 
     Office of Thrift Supervision, the Securities and Exchange 
     Commission, the Commodity Futures Trading Commission, the 
     Federal Deposit Insurance Corporation, the Federal Housing 
     Finance Agency, or the National Credit Union Administration.
       ``(5) Insurer.--The term `insurer' means any person engaged 
     in the business of insurance, including reinsurance.
       ``(6) Non-united states insurer.--The term `non-United 
     States insurer' means an insurer that is organized under the 
     laws of a jurisdiction other than a State, but does not 
     include any United States branch of such an insurer.
       ``(7) Office.--The term `Office' means the Federal 
     Insurance Office established by this section.
       ``(8) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(9) State.--The term `State' means any State, 
     commonwealth, territory, or possession of the United States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the Commonwealth of the Northern Mariana Islands, American 
     Samoa, Guam, or the United States Virgin Islands.
       ``(10) State insurance measure.--The term `State insurance 
     measure' means any State law, regulation, administrative 
     ruling, bulletin, guideline, or practice relating to or 
     affecting prudential measures applicable to insurance or 
     reinsurance.
       ``(11) State insurance regulator.--The term `State 
     insurance regulator' means any State regulatory authority 
     responsible for the supervision of insurers.
       ``(12) United states insurer.--The term `United States 
     insurer' means--
       ``(A) an insurer that is organized under the laws of a 
     State; or
       ``(B) a United States branch of a non-United States 
     insurer.
       ``(q) Authorization of Appropriations.--There are 
     authorized to be appropriated for the Office such sums as may 
     be necessary for each fiscal year.

     ``SEC. 314. COVERED AGREEMENTS.

       ``(a) Authority.--The Secretary and the United States Trade 
     Representative are authorized, jointly, to negotiate and 
     enter into covered agreements on behalf of the United States.
       ``(b) Requirements for Consultation With Congress.--
       ``(1) In general.--Before initiating negotiations to enter 
     into a covered agreement under subsection (a), during such 
     negotiations, and before entering into any such agreement, 
     the Secretary and the United States Trade Representative 
     shall jointly consult with the Committee on Financial 
     Services and the Committee on Ways and

[[Page 31409]]

     Means of the House of Representatives and the Committee on 
     Banking, Housing, and Urban Affairs and the Committee on 
     Finance of the Senate.
       ``(2) Scope.--The consultation described in paragraph (1) 
     shall include consultation with respect to--
       ``(A) the nature of the agreement;
       ``(B) how and to what extent the agreement will achieve the 
     applicable purposes, policies, priorities, and objectives of 
     section 313 and this section; and
       ``(C) the implementation of the agreement, including the 
     general effect of the agreement on existing State laws.
       ``(c) Submission and Layover Provisions.--A covered 
     agreement under subsection (a) may enter into force with 
     respect to the United States only if--
       ``(1) the Secretary and the United States Trade 
     Representative jointly submit to the congressional committees 
     specified in subsection (b)(1), on a day on which both Houses 
     of Congress are in session, a copy of the final legal text of 
     the agreement; and
       ``(2) a period of 90 calendar days beginning on the date on 
     which the copy of the final legal text of the agreement is 
     submitted to the congressional committees under paragraph (1) 
     has expired.''.
       (b) Duties of Secretary.--Section 321(a) of title 31, 
     United States Code, is amended--
       (1) in paragraph (7), by striking ``and'' at the end;
       (2) in paragraph (8)(C), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(9) advise the President on major domestic and 
     international prudential policy issues in connection with all 
     lines of insurance except health insurance.''.
       (c) Clerical Amendment.--The table of sections for 
     subchapter I of chapter 3 of title 31, United States Code, is 
     amended by striking the item relating to section 312 and 
     inserting the following new items:

``Sec. 312. Terrorism and Financial Intelligence.
``Sec. 313. Federal Insurance Office.
``Sec. 314. Covered agreements.
``Sec. 315. Continuing in office.''.

     SEC. 8003. REPORT ON GLOBAL REINSURANCE MARKET.

       Not later than September 30, 2011, the Director of the 
     Federal Insurance Office appointed under section 313(b) of 
     title 31, United States Code (as amended by section 
     8002(a)(3) of this title) shall submit to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate a report describing the breadth and scope of the 
     global reinsurance market and the critical role such market 
     plays in supporting insurance in the United States.

     SEC. 8004. STUDY ON MODERNIZATION AND IMPROVEMENT OF 
                   INSURANCE REGULATION IN THE UNITED STATES.

       (a) Study.--The Director of the Federal Insurance Office 
     appointed under section 313(b) of title 31, United States 
     Code (as amended by section 8002(a)(3) of this title) shall 
     conduct a study on how to modernize and improve the system of 
     insurance regulation in the United States. Such study shall 
     include consideration of the following:
       (1) Effective systemic risk regulation with respect to 
     insurance.
       (2) Strong capital standards and an appropriate match 
     between capital allocation and liabilities for all risk.
       (3) Meaningful and consistent consumer protection for 
     insurance products and practices.
       (4) Increased national uniformity through either a Federal 
     charter or effective action by the States.
       (5) Improved and broadened regulation of insurance 
     companies and affiliates on a consolidated basis, including 
     affiliates outside of the traditional insurance business.
       (6) International coordination.
       (b) Report.--Not later than one year after the date of the 
     enactment of this Act, the Director shall submit to the 
     Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate a report containing--
       (1) the results of the study conducted under subsection 
     (a); and
       (2) any legislative, administrative, or regulatory 
     recommendations that the Director considers appropriate to 
     modernize and improve the system of insurance regulation in 
     the United States.
       (c) Consultation.--In carrying out subsections (a) and (b), 
     the Director shall consult with State insurance 
     commissioners, consumer organizations, representatives of the 
     insurance industry, policyholders, and other persons, as the 
     Director considers appropriate.

  The Acting CHAIR. Pursuant to House Resolution 964, the gentleman 
from Alabama (Mr. Bachus) and a Member opposed each will control 15 
minutes.
  The Chair recognizes the gentleman from Alabama.
  Mr. BACHUS. Madam Chairman, I yield myself 3 minutes.
  Madam Chair, the gentleman from Maryland (Mr. Hoyer) just talked 
about we're not going to call time out. But, ladies and gentlemen, the 
American people are calling time out. They are ready to put this 
Congress and this administration and the Federal Reserve into timeout. 
The time has expired on bailouts. That's the message we are hearing all 
over America. Americans are saying no more bailouts, and they are 
saying no more bailout funds.
  That's the primary difference between the Democratic plan and the 
Republican plan. Once and for all, we say no more bailouts.
  The American people, quite frankly, don't care about the mechanics. 
They don't care about the details. What they do care is that they be 
treated fairly, and they not be obligated for a risk that they didn't 
take. That's our plan. It's that simple. If bankruptcy is good enough 
for American citizens, if it's good enough for small businesses, if 
it's good enough for 999 of America's corporations, it ought to be good 
enough for the largest ``too big to fail'' institutions, and that's the 
last thing we put to death with our plan. There won't be any more ``too 
big to fail.'' You take risk or you loan or allow people to take risk 
with your money, you lose; not the American people.
  No more bailouts. No more bailouts. Vote for the Republican 
substitute.
  I reserve the balance of my time.
  Mr. FRANK of Massachusetts. I claim the time in opposition.
  The Acting CHAIR. The gentleman is recognized for 15 minutes.
  Mr. FRANK of Massachusetts. I first yield myself 1 minute to say, we 
agree, no more bailouts. The Republicans cannot accept the fact that we 
have a bill that bans them. It specifically does not allow what 
happened.
  Last year, Bush administration officials decided to use section 13(3) 
of the Federal Reserve to provide funds for the creditors of Bear 
Stearns and for AIG itself. That would not be legally possible under 
the bill we put forward.
  Similarly, we have funds that come not from the taxpayers, but from 
an assessment on large financial institutions which can be used 
explicitly, not for any failed institution, but can be used when that 
institution is being put out of business in case it is necessary to 
prevent that failure from having negative destabilizing effects. The 
Republicans don't want to do that.
  He said that the major difference is--another difference--we have a 
number of provisions in here to make it less likely that that will 
happen. Yes, if a big institution gets overly indebted and fails, it 
ought to be allowed to fail and we will have to deal with the 
consequences. But it would also be better not cavalierly to say, Let 
'em fail. Let's try to stop it.
  I now yield 2 minutes to the gentleman from Illinois (Mr. Gutierrez).
  Mr. GUTIERREZ. Madam Chair, I would like to take that time to enter 
into a colloquy with the chairman.
  Chairman Frank, while I continue to strongly support the amendment 
that I offered during the Financial Services Committee markup changing 
the assessment base for FDIC deposit insurance funds payments from 
domestic deposits to total assets less tangible equity, it has come to 
my attention that the change adopted by the committee may result in 
disproportionate impacts on certain types of specialized banks, 
including custodians and bankers' banks.
  A provision you included in the manager's amendment would address 
this issue and require the FDIC to make appropriate adjustments to the 
assessment base for custodians and bankers' banks. The FDIC has advised 
my staff that the revised version of this provision will give the 
agency sufficient flexibility.
  I appreciate your willingness to accept this change to address the 
legitimate issues raised by the specialized business models of 
custodians and bankers' banks.
  Mr. FRANK of Massachusetts. If the gentleman would yield, I would 
say, yes, this is another example of the superiority over this bill to 
the Republican substitute, because the gentleman from Illinois took the 
lead in addressing the unfairness of having smaller banks have to 
contribute, we believe, disproportionately, to the insurance fund, 
because of the risky problems of big banks. He has got in

[[Page 31410]]

here language that addresses that. It's one reason why the independent 
community bankers like our bill.
  Yes, I will continue to work with him. I did want to do that now to 
stress that in this bill, as opposed to the Republican substitute, 
there is some redress. Big banks will have to pay more and smaller 
banks less because of the riskiness of what they do.
  I thank the gentleman.
  Mr. GUTIERREZ. Thank you.
  I was hoping to bring up with you a very important subject that is 
vital to the health of our community banks. With the changes that this 
legislation makes to the DIF assessments, any funds from the Federal 
Home Loan Banks that banks have on their books would be doubly assessed 
by the FDIC. I understand the FDIC's reasoning behind the premiums on 
FHLB funds, but since these funds are now taken into account in the new 
assessment base, I believe these premiums to be duplicative. I am 
hoping that you will work with me and the FDIC to address my concerns 
about these premiums.
  Mr. FRANK of Massachusetts. Yes. Again, if the gentleman would yield, 
this illustrates one other area where the legislation we have is far 
better and more responsive to the needs of small banks than the 
Republican bill. This improves on it, and I agree with him.
  Mr. BACHUS. Madam Chair, I yield 2 minutes to the gentleman from 
California (Mr. Royce).
  Mr. ROYCE. Madam Chair, the Democratic bill is silent on the root 
cause of the financial collapse. It was the government-sponsored 
enterprises, Fannie and Freddie, that were at the heart of the housing 
market and largely responsible for the proliferation of subprime and 
Alt-A mortgages throughout the financial system. Over the years, they 
loaded up on over $1 trillion worth of these junk loans.
  Frankly, Fannie and Freddie also infected capital markets and spread 
through every sector of our banking system. Before the bursting of the 
housing bubble, GSE securities constituted more than 150 percent of 
core capital for insured banks. More than 40 percent of money market 
mutual fund holdings were in the form of GSE securities. That is why 
Senator Chuck Hagel offered legislation for stronger regulation which 
passed the Senate Banking Committee on a party-line vote but was 
blocked by the Senate Democrats from coming to the floor. My amendment 
was also defeated.
  The affordable housing goals were put in by the Democratic-controlled 
Congress. They mandated it in 1992. These affordable housing goals led 
the GSEs into the subprime and Alt-A market, and ultimately led to 
their collapse.

                              {time}  1215

  Former President Bill Clinton understands this epic blunder. He said, 
``I think the responsibility that the Democrats have may rest more in 
resisting any efforts by Republicans in the Congress, or by me when I 
was President, to put some standards and tighten up a little on Fannie 
Mae and Freddie Mac.''
  Let it be clear: This is the main reason why our economy is where it 
is today, and this is why we must reform the GSEs. Instead, the 
Democrats keep them in conservatorship, bail them out forever in their 
legislation. The Republicans, on the other hand, end bailouts, and the 
Republicans also reform the GSEs.
  Mr. FRANK of Massachusetts. Madam Chair, I yield myself 1 minute.
  From 1995 through 2006, when the Republicans controlled this House 
and the Senate, they did no legislation on Fannie Mae and Freddie Mac. 
It was the Republicans who didn't do it. The Republican House in 2005 
passed a bill which the Republican Senate and the Republican President 
opposed. The chairman of the committee, Mr. Oxley, blamed them for 
doing it. In 2007, we did pass such a bill. And in 2004, it was 
President Bush unilaterally that pushed up substantially the affordable 
housing goals, including significantly for people under median income, 
which I opposed at the time.
  Madam Chair, I yield 2 minutes to the gentleman from New York (Mr. 
Meeks).
  Mr. MEEKS of New York. Madam Chair, I rise in strong opposition to 
the Republican substitute. In fact, when you look at it, it's nowhere 
near H.R. 4173.
  Let me tell you what H.R. 4173 does. It strengthens protections for 
consumers and updates the regulatory structure, brings transparency to 
the previously unregulated derivatives market, and ensures that no one 
would be permitted to survive simply because they're ``too big to 
fail.'' That's what 4173 does.
  Now, we all agree that the financial industry is, in fact, the 
lifeblood of America's economy and is a global leader in size, 
innovation, and employment. And I believe it is essential to sustain 
this industry while making it accountable for its actions, and that is 
exactly what H.R. 4173 accomplishes. For the sake of restoring 
America's economy, we must restore a strong and accountable financial 
sector.
  Therefore, I am against the Republican substitute and for H.R. 4173 
because it will ensure that the financial industry will get back on 
solid footing and back to the business of lending to American families 
and industries, while guaranteeing that financial firms will bear the 
risks that they take without recourse to the taxpayer.
  I support H.R. 4173 because of the impact the financial crisis has 
had on middle America. Our small businesses cannot access credit. 
Retirees are forced to go back to work because their pensions are 
depleted and they have upside-down mortgages. And in my community, we 
have an astronomical unemployment rate.
  Finally, let me emphasize that these reforms that are in H.R. 4173 
strengthen our system of capitalism and free enterprise.
  To those who criticize this legislation as antimarkets, I would 
counter that this legislation is good for consumers and good for 
businesses because investors are staying out of the market right now 
and companies across the Nation are struggling to stay in business, let 
alone creating desperately needed jobs.
  By strengthening protections for consumers and investors and bringing 
transparency and accountability to the marketplace, we are restoring 
the cornerstone of a healthy and sustainable economy of the free world.
  Mr. BACHUS. Madam Chair, would you give the time remaining on each 
side.
  The Acting CHAIR. The gentleman from Alabama (Mr. Bachus) has 11 
minutes remaining, and the gentleman from Massachusetts (Mr. Frank) has 
9\1/2\ minutes remaining.
  Mr. BACHUS. Madam Chair, I yield 30 seconds to the gentleman from 
California (Mr. Royce).
  Mr. ROYCE. Madam Chair, again, in 1992, it was the Democrats that put 
in place the legislation that led Fannie Mae and Freddie Mac into the 
subprime and Alt-A loans. And every time there was an amendment up, and 
I remember specifically my amendment up on this House floor that tried 
to do what was requested by the Federal Reserve to stop the systemic 
risk, there was opposition to it.
  Now, the legislation before us today, to compound this problem, 
exempts Fannie Mae and Freddie Mac again from this reform. And every 
time there was legislation that was actually backed by the Federal 
Reserve, the chairman opposed that legislation.
  Mr. FRANK of Massachusetts. I yield myself 30 seconds.
  I want to point out that the gentleman conveniently forgets to say 
that the opposition came from his own Republican leadership. Yes, he 
offered an amendment in 2005, the only time that the Republicans let a 
bill come up, and he was defeated with the overwhelming vote of the 
Republicans as well as the Democrats. I wanted some reform that 
preserved rental housing.
  Finally, in 2007, we in the majority passed a bill that was 
recommended. And in 2004, President Bush--and, yes, the affordable 
goals came in 1992--President Bush raised them from 42 to 54 percent 
over my objection. I thought it was imprudent and said so at the time.
  Madam Chair, I yield 3 minutes to the gentleman from Pennsylvania 
(Mr. Kanjorski).

[[Page 31411]]


  Mr. KANJORSKI. Madam Chair, before I address the merits of the 
Republican substitute, I want to note that I had hoped we could have 
achieved bipartisanship during this debate on regulatory reform. As 
such, I hosted about a dozen gatherings, inviting Members from both 
sides of the aisle to hear diverse viewpoints from some of the 
brightest economic minds and business leaders in the country. I was 
also pleased that three of the four capital markets legislative 
proposals in this bill, the Democratic bill, gained bipartisan support 
during markup.
  The Republicans also incorporated one of those bills, to create the 
Federal Insurance Office, into their substitute. Ultimately, however, 
the Republicans opted against supporting strong reform of financial 
regulation. Their substitute is inadequate and seems designed to 
protect Wall Street rather than to reform it.
  Regulation of hedge funds and private pools of capital is a very 
important piece of the Democratic bill. In committee, this provision 
passed 67-1, and yet the Republican substitute ignores this issue.
  As the rating agencies were reformed, which many Republicans voted 
for in the committee markup, the GOP substitute does absolutely nothing 
to address the issue of liability. And without liability, the 
Republican plan provides no accountability for the rating agencies. 
Because the status quo is not an option, rating agency reform is an 
essential part of the Democratic plan.
  The Republican plan also does little to improve investor protections. 
Just this week, the Capital Markets Subcommittee held a hearing on the 
largest Ponzi scheme in U.S. history. The colossal failure of the 
Securities and Exchange Commission to detect and investigate this 
massive fraud after numerous leads demonstrates that we need reform. 
And yet under the Republican alternative it appears that nothing ever 
happened.
  We double the funding of the commission and push for comprehensive 
organizational reform. They give the agency very little and do little 
to change the agency.
  The GOP plan additionally chooses bankruptcy for systemically 
significant firms. Well, Lehman Brothers went through bankruptcy and is 
still in bankruptcy, which resulted in credit markets freezing up 
around the world. This is not a real solution.
  In sum, H.R. 4173 reforms Wall Street for the protection of the 
consumer and the investor on Main Street. The Republican alternative, 
in contrast, represents business as usual for Wall Street.
  We don't need more of the same contained in their plan. We need 
substantial reform found in H.R. 4173. Vote ``no'' on the Republican 
substitute.
  Mr. BACHUS. Madam Chair, I yield 2 minutes to the gentlewoman from 
Illinois (Mrs. Biggert).
  Mrs. BIGGERT. I thank the gentleman for yielding.
  Madam Chair, I rise in support of the Republican alternative.
  It seems like every time we come down to debate this issue, we begin 
to focus on past history. History is good because we can learn from 
that, but I think we need to hear more about what the substantive 
issues are in this bill, what is happening, rather than to look at the 
past. We need to get it right, and I think the Republican alternative 
does that.
  There's no question that we have a need to reform the financial 
industry, but for consumers, for the health of our financial services 
and the economy, we must get it right. But this bill isn't the answer. 
There are a few good bipartisan provisions in the underlying bill, but 
the good doesn't outweigh the bad.
  America needs a financial recovery and reform bill, not a permanent 
Big Brother government bailout program. We need reforms that will 
facilitate competition in the marketplace and generate more choices for 
consumers. We need reform that will equip consumers with the 
information that they need to shop around and make the financial 
decisions that are best for their families.
  We need a stronger regulatory regime to quickly expose, stop, and put 
behind bars any Wall Street crooks that break the law. And financial 
firms that fail should do just that: fail through a new, orderly 
bankruptcy process.
  We also need greater transparency and improved regulation for over-
the-counter derivatives. We must close the gaps in communication among 
regulators and give them the tools to be efficient and effective.
  We need to get credit flowing again so that small businesses like 
those in my congressional district can get the financing to expand and 
create the jobs that American families need so desperately.
  That's responsible financial reform, and our Republican alternative 
aims to get us there.
  Mr. FRANK of Massachusetts. Madam Chair, I reserve the balance of my 
time.
  Mr. BACHUS. Madam Chair, I yield 2 minutes to the gentlewoman from 
West Virginia (Mrs. Capito).
  Mrs. CAPITO. I want to thank the ranking member, my good friend from 
Alabama, for yielding me the time. I would also like to thank him for 
his leadership on our committee over the past year.
  I rise today in support of the Republican substitute.
  My colleagues have a choice today: Do they want to perpetuate 
bailouts and continue to put taxpayers at risk or will they support the 
Republican substitute that ends bailouts?
  There are two features of this bill I'm going to address.
  The substitute creates a new chapter of the bankruptcy code. This new 
section, chapter 14, will allow for an expedient resolution of failing 
firms as there will be trained personnel who have the necessary skills 
to ensure an efficient resolution. This is not chapter 7 or chapter 11, 
as in the discussion we had in the committee, as my friends on the 
other side of the aisle have asserted; although, the bill does not 
prohibit a nonbank financial firm from pursuing these chapters if they 
so wish.
  There is no taxpayer-funded bailout fund in our amendment. It is 
straightforward for all market participants. If you take on too much 
risk and fail, then you go through an expedited bankruptcy. The 
taxpayers will not pick up the tab. This is fair to all market 
participants and it's fair to the taxpayers, and I urge my colleagues 
to join us in ending the bailouts.
  Another important section of the Republican substitute is that we 
address reforms to the GSEs, Fannie and Freddie. While there may not be 
consensus on the reforms proposed, this body must have an honest 
discussion about the future of these two entities and what role, if 
any, government should play. After all, a major component of the 
financial crisis was the failure of these two entities. To ignore their 
reform in a financial reform package is irresponsible.
  I would urge support for the Republican substitute. This is the 
financial reform package that we need.
  Mr. KANJORSKI. Madam Chair, I continue to reserve the balance of my 
time.
  Mr. BACHUS. Madam Chair, I yield 2 minutes to the gentleman from 
Texas (Mr. Hensarling).
  Mr. HENSARLING. Madam Chair, the American people want more jobs and 
fewer bailouts. The Democratic majority will bring them fewer jobs and 
more bailouts. Their bill creates a permanent Wall Street bailout fund. 
The only reason to have a bailout fund is to bail people out.
  The Republican bill says we're tired of the bailouts. No more 
bailouts. You cannot have a system where you privatize your profits and 
socialize your losses. That's what ``bailout nation'' is all about. The 
big get bigger, the small get smaller, the taxpayer gets poorer, and 
the economy becomes more political.
  Jobs. The Democratic bill still believes that if we have an unelected 
czar who can ban credit products, who can ration credit products, that 
somehow we will have bliss in our economy. If you raise the price of 
capital, you get less capital. You cannot have capitalism without 
capital. Our small businesses are starving. We need more capital. This 
will simply cost the economy more jobs.

[[Page 31412]]



                              {time}  1230

  The Democratic bill fundamentally assaults the economic liberty of 
the American citizen. It says now you have to go on bended knee to 
Washington before you can put a credit card in your wallet or get a 
mortgage for your home. The Republican bill respects the liberties of 
the American citizen. It says we want to make sure that you have open 
and transparent information, but we respect your freedom, we respect 
your choices. We respect the freedom that this Nation represents.
  Let's have more jobs, fewer bailouts. Let's respect the freedom of 
every American citizen. Reject the Democrats' bailout bill and support 
the Republican bill.
  Mr. BACHUS. Madam Chairman, as I understand it, the chairman has one 
more speaker on his side so at this time I yield 2 minutes to the 
gentleman from New Jersey (Mr. Garrett).
  Mr. GARRETT of New Jersey. Madam Chair, the American people have 
spoken loud and clear. They have spoken that they are opposed to more 
taxpayer-funded bailouts. The American people have said they are 
opposed to job-destroying legislation. The American people have said 
they are opposed to growing and expanding and increasing the size and 
spending of the Federal Government.
  The majority bill that we had before us earlier is a bill that fails 
on all counts to listen to the American public. There is no one on the 
other side of the aisle who can deny that their bill will continue 
taxpayer-funded bailouts. There is no one on the other side of the 
aisle who can deny that their bill will continue the destruction of 
jobs in this country.
  And, finally, there is no one on the other side of the aisle who can 
honestly deny that their bill will not create a more expensive, 
expanding government. Their bill will create bailouts, destroy jobs, 
and create a bigger government.
  Earlier the majority leader was on the floor and he was speaking in 
an amusing if not illuminating manner when he used a football analogy 
when he talked about the refs on the field. Under their bill, we will 
end up with a stadium with only refs on the field, maybe highly paid 
and highly charged with authority, bureaucrats and refs, but no 
players. There will be no players in the game any more. And, quite 
frankly, the American public will not be able to pay the ticket to 
admission to the stadium under their legislation.
  I also found it somewhat amusing that the only example of 
deregulation that the majority leader could think to was a piece of 
legislation that he actually voted for. And in fact that of course was 
not deregulation at all.
  So we have presented now a Republican substitute, a Republican 
substitute that listens to the American people, that provides the 
appropriate level of regulation. The Republican substitute will 
actually end taxpayer-funded bailouts. The Republican substitute will 
actually do so by making sure the responsible parties pay. The 
Republican substitute will end job-destroying legislation and practices 
and instead create a facility that will expand liquidity and credit in 
the marketplace so that we can create new and expansive number of jobs 
in this country. The Republican substitute will end the practice of 
growing and expanding the government as we have seen time and time 
again. Instead, the Republican substitute will make sure that we have a 
government that lives within its means. I stand here in support of the 
Republican substitute.
  Mr. BACHUS. Madam Chair, at this time I yield 2 minutes to the 
gentleman from Texas (Mr. Neugebauer).
  Mr. NEUGEBAUER. Madam Chairman, the Republican alternative actually 
brings real reform to the regulatory process and not big government. 
The first thing that the Republican alternative does is it ends 
bailouts. The American people are tired of bailouts; and particularly 
they are tired of bailouts when they come at their expense. The other 
thing that the Republican substitute does is it gets the government out 
of picking winners and losers. If companies make bad decisions, they 
fail. If they make good decisions, they succeed.
  The other part of the Republican plan is we say, you know what, if 
you are taking risky behavior, you are involved in businesses that 
cause more risk to the system, you have to have more capital. The other 
thing that the Republican plan does is it actually protects consumers 
and doesn't limit their choices. I think that is the big difference in 
this piece of legislation; this piece of legislation that the Democrats 
want to do, they want somebody else to make the choices for you. They 
have a credit czar, and that credit czar is going to tell you what kind 
of car loan, what kinds of student loan, and what kind of house loan 
you can get. I have said all along that I think the American people 
have enough sense to make their own decisions.
  In fact, I just recently came back from Afghanistan where we have 
young men and women who are deployed, and they are over there trying to 
protect the American people's ability to make their own choices. I hope 
they are not going to be disappointed when they find out that back here 
in the good old U.S. of A., where they have been defending our freedom 
and liberty, we are over here trying to pass legislation that will 
limit their choices, limit their choices to be able to have the kind of 
house loan or car loan or student loan. Or maybe they want to come back 
from serving this great country and this great Nation after their 
distinguished service, they want a small business loan, only to find 
out that the United States Congress is limiting the ability of banks 
and credit unions to provide new business loans for these men and 
women. I don't think that is what they are fighting for.
  I urge Members to vote for the Republican substitute and vote against 
the underlying bill.
  Mr. BACHUS. Madam Chair, I would like unanimous consent at this time 
to recognize our troops who are in the gallery today.
  The Acting CHAIR. Under clause 7 of rule XVII, the Chair cannot 
entertain that request.
  Mr. BACHUS. Madam Chair, at this time I yield the balance of my time 
to the gentleman from Ohio (Mr. Boehner).
  Mr. BOEHNER. Madam Chair, my colleagues, it has been quite a year. 
This House has been on a spending spree and a regulatory spree and a 
bailout spree that I could never have imagined in any of my prior 18 
years here in Congress.
  You know, it was a trillion-dollar spending plan, stimulus plan, that 
was supposed to be about creating jobs, and it turned into nothing more 
than a lot of big government spending; a budget that had trillion-
dollar deficits on average for as far as the eye can see; and a 
trillion-dollar national energy tax that was going to create this giant 
bureaucracy and tax Americans over their gasoline, their electricity, 
and everything else that moves in America. Then we have the nearly 
trillion-dollar government takeover of our health care system. And 
people wonder why employers are frozen, why they are not hiring more 
employees when all of this is coming down the pike.
  And if all of that wasn't bad enough, we have no idea what is going 
to happen to tax rates. There have been suggestions to increase taxes 
in many of the bills that have passed this House this year. And now we 
come to the granddaddy of all of them: the financial regulatory bill 
that is in front of us today.
  All of us recognize there are shortcomings in our financial 
regulatory system; but I do believe that the overreach by my Democrat 
colleagues on this bill is really beyond imagination. It is going to 
have more bailouts for banks in this bill; nothing that will reform 
Fannie Mae and Freddie Mac, the real culprits at the beginning of this 
whole financial meltdown, but there is no reform in this bill when it 
comes to those two entities.
  And if all of that isn't bad enough, to put more money in here to 
bail out bad actors is exactly what the American people don't want.
  And so I rise in support of a commonsense regulatory approach offered 
by my Republican colleagues. I am going

[[Page 31413]]

to congratulate Spencer Bachus and all of the members of his committee 
for the work they have done to put this commonsense alternative 
together that will fix the regulatory gaps that we have without 
bailouts, without tens of thousands of new Federal employees that we 
see in the underlying bill. I would hope that my colleagues would 
support it.
  But if my colleagues don't support the alternative that is on the 
floor at this moment, when that vote comes, Republicans will offer a 
motion to recommit, a motion to recommit that will scrap the entire 
underlying bill. It will also say TARP ends on December 31 this year, 
and all of the funds that come back from TARP should be used to repay 
the Federal deficit. And, thirdly, we will bring down the debt limit 
commensurate with those repayments.
  TARP was there for an emergency. Everyone involved in TARP over a 
year ago understood that when that money came back, it was to go back 
to the Treasury to reduce the Federal budget deficit. It wasn't to 
become a political slush fund that we have heard bandied about here 
over the last couple of weeks, all kinds of ideas about how to take 
TARP and use it for more bailouts and more spending from here in 
Washington.
  And so I am going to ask my colleagues, if you've had enough of the 
bailouts, enough of TARP, let's do the right thing for the American 
people. They are already saying enough is enough. Let's end TARP, let's 
pay down the deficit, and if this substitute does pass, you will have a 
chance to put an end to this entire process.
  Mr. FRANK of Massachusetts. Madam Chair, I yield myself the balance 
of my time.
  An example of the wildly excessive hyperbole that just came from the 
gentleman from New Jersey: increased regulation of derivatives; require 
overextended financial companies to have more capital; don't let people 
sell mortgages that will get people in trouble; and there will be no 
players on the field, there will be only refs. The cynical feeling that 
Republicans have toward regulation leads them to talk crazy.
  My friend, the gentleman from Texas (Mr. Neugebauer) said you will 
need permission to get a car loan. No sane person, including Mr. 
Neugebauer, thinks that is true. As a matter of fact, over the 
objection of many of us, car loans are exempted from the bill he is 
widely exaggerating. So it is an inaccuracy built on an exaggeration.
  What we have also is their great fear of not having in this bill the 
bailout that they want to attack. But before I get to that, let me take 
directly one of their arguments. The American people have said no more 
expansion of government. Not in the area certainly of financial 
regulation. Their view that the American people want no more restraints 
on Wall Street is wrong. Their view that the American people want 
nothing to be done about the form of executive compensation that is not 
only obscenely excessive, but destabilizing because of the way in which 
it is structured--so that is true, they do nothing effectively about 
executive compensation.
  They say that the American people like derivatives to be spread out 
with no capital to back them up so when there are failures, you have 
trouble. And they carry through; they are right. I disagree vehemently 
that the American people think that the status quo with the financial 
industry was a good one.
  One gentleman said, Well, you will increase the cost of capital. Yes, 
in some cases. I want to increase the cost of speculation. The problem 
with the way capital has been employed is it has been employed for 
useful purposes to gather up funds that could be used to produce goods 
and services; but for some, the means became the end. And yes, if we 
were to increase the cost of capital for some of the speculative 
trading that goes on, that would be a good thing. Less of that would be 
a good thing.
  So let's put to the American people: Do you prefer the Republican 
position of doing literally nothing to rein in these abuses, or should 
we try to rein them in? And that leads to a difference in the bill. We 
are not simply in our bill saying let's deal with what happens when 
there is a failure. They say here in their bill, if there is a failure, 
let them go bankrupt and that's it.
  We also say if there is an institution that is overextended, we let 
it fail and we have specific language that says no money can go to that 
institution or its shareholder or its board of directors. But unlike 
them, we don't think that you should wait until then. We don't think 
that it is responsible for society to say, Go ahead and fail; we don't 
care. We do care. We are not going to go to their aid the way it was 
done last year under section 13(3), which we have amended so it can't 
happen again, and you cannot have what the Bush administration did with 
13(3) and the AIG. I don't think that they were wrong necessarily, but 
that is what they did. We stop that. But we think that you should step 
in and don't let them get to that point.
  It is not healthy for society where you don't do anything about 
compensation, you don't do anything about derivatives, you don't 
regulate them at all, and you let them crash; but when they do crash, 
here is the argument: You have a permanent bailout fund.

                              {time}  1245

  Madam Chair, in their heads is the only place that permanent bailout 
fund exists. Well, maybe in their hearts, because it pains them to 
recognize that we have curtailed it.
  Here's what the legislation actually says in a binding way and why 
their analogies to last year are so directly wrong.
  Here is on page 397--I know it's a big bill, and maybe they couldn't 
get all the way through it. I apologize. We would have given them a 
reading guide if they had asked for it:
  ``There is established in the Treasury a separate fund to be known as 
the Systemic Dissolution Fund''--that's what they call the bailout 
fund--``to facilitate and provide for the orderly and complete 
dissolution of any failed financial company or companies that pose a 
systemic threat to the financial markets.'' And it pays the expenses of 
putting them out of business not from the taxpayers, but from an 
assessment on large financial companies; and that pains them.
  They really do sympathize with Goldman Sachs, with JPMorgan Chase, 
with Morgan Stanley, with Bank of America, CitiCorp, yes, and hedge 
funds above $10 billion. We subject them to an assessment, and they 
say, Oh, we're so unfair. These wonderful, healthy companies, why 
should they have to pay for the bailouts? Because they have all been 
part of the system and they benefit from that safety net.
  We go on to say, ``The Fund shall be available for use with respect 
to the dissolution of a covered financial company to cover the costs 
incurred by the receiver and to cover the costs of systematic 
stabilization actions. The Fund shall not be used in any manner to 
benefit any officer or director of such company.''
  And it says earlier on when we talk about the establishment of that 
fund, on page 288, it can only be used, the money that comes from 
Morgan Stanley and Goldman Sachs and JPMorgan Chase, the objects of 
Republican sympathy. The poor dears; they won't have enough money to 
speculate and we won't have anybody to come and play football because 
they have been told not to speculate.
  It says that they can only do this if such action is necessary for 
the purpose of financial stability and not for the purpose of 
preserving the covered financial company. And if there is a loan from 
taxpayers, it makes it very clear: Any funds from taxpayers shall be 
repaid--that's a loan--shall be repaid by a fixed assessment from these 
big companies; that the shareholders do not receive payment until other 
claims have been fully paid; and no payments are made to creditors 
until the taxpayers get their money back.
  We ask that the substitute be rejected.
  Mr. SMITH of Texas. Madam Chair, the Administration's and this 
Democratic majority's

[[Page 31414]]

legislation is a massive, politically driven, government intervention 
in America's economic life.
  Americans see this in the health care legislation that threatens 
government control over their lives. They see it in the cap-and-tax 
legislation that sacrifices the economy to the uncertain science of 
climate change. They see it in the Stimulus Bill and the federal budget 
that increases deficits and burdens our economy for generations.
  And they see it in the legislation before us today.
  This bill's giving so-called ``resolution authority'' to the federal 
government is a perfect example.
  ``Resolution authority'' is intended to address how to handle 
collapsing institutions that allegedly are ``too big to fail.'' 
Economists and legal experts point to the ``too big to fail'' mentality 
as the culprit that laid the groundwork for the September 2008 
financial panic.
  A key feature of the ``too big to fail'' approach is the provision of 
bailouts for failing firms. But bailouts only encourage risky behavior. 
If Congress authorizes the bail out of Wall Street every time a gamble 
doesn't pay off, what will deter bad business decisions in the future?
  Rather than end billion dollar bailouts, today's legislation turns 
the ``too big to fail'' mentality into a cornerstone of Democrats' 
proposed reforms.
  The bill gives special treatment to big firms; encourages risk; and 
gives government agencies the power to determine which firms live or 
die. In other words, the bill institutionalizes the mistakes that led 
to the 2008 financial collapse.
  And consistent with the Democratic agenda, it empowers the federal 
government to intervene in the lives of our largest financial 
institutions.
  The Republican substitute amendment rejects this big government 
ticket back to financial ruin. It slams the door shut on the bailout 
era and ``too big to fail.'' It renounces the power grab that lets 
federal agencies and government employees determine who lives and dies 
in our economy. It embraces the way the experts point to as the better 
path towards a healthier financial future.
  With respect to failing financial institutions, the better way is 
bankruptcy reform.
  The Republican substitute establishes a new chapter of the Bankruptcy 
Code to resolve failed non-bank financial institutions. It puts 
responsibility into the hands of non-partisan, transparent bankruptcy 
courts. It adds new provisions to help courts better handle these 
bankruptcies so that future crises may be better avoided.
  The amendment creates one set of fair, predictable rules for all non-
bank institutions. It rests on a long-standing body of precedent well 
understood by firms, investors, government and the public.
  And the Republican substitute guarantees that not a single taxpayer 
dime will ever again be paid for a Wall Street bailout.
  America's economy--and taxpayers' wallets--will not be safe until 
billion dollar bailouts and the notion that Wall Street firms are ``too 
big to fail'' rest in the dustbin of history.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Alabama (Mr. Bachus), as modified by the order of the 
House of December 10, 2009.
  The question was taken; and the Acting Chair announced that the noes 
appeared to have it.
  Mr. BACHUS. Madam Chair, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Alabama will 
be postponed.


                    Announcement by the Acting Chair

  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, proceedings 
will now resume on those amendments printed in House Report 111-370 on 
which further proceedings were postponed, in the following order:
  Amendment No. 19 by Mr. Marshall of Georgia.
  Amendment No. 32 by Ms. Schakowsky of Illinois.
  Amendment No. 35 by Mr. Minnick of Idaho.
  Amendment No. 36 by Mr. Bachus of Alabama.
  The Chair will reduce to 5 minutes the time for the second and fourth 
vote in this series.


                Amendment No. 19 Offered by Mr. Marshall

  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from Georgia 
(Mr. Marshall) on which further proceedings were postponed and on which 
the ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been requested.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 188, 
noes 241, not voting 11, as follows:

                             [Roll No. 963]

                               AYES--188

     Abercrombie
     Ackerman
     Adler (NJ)
     Andrews
     Baca
     Baird
     Barrow
     Bean
     Becerra
     Berkley
     Berman
     Bishop (NY)
     Blumenauer
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardoza
     Carnahan
     Carson (IN)
     Castor (FL)
     Christensen
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Conyers
     Cooper
     Courtney
     Crowley
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Doyle
     Edwards (MD)
     Ellison
     Engel
     Eshoo
     Etheridge
     Faleomavaega
     Farr
     Fattah
     Filner
     Foster
     Frank (MA)
     Fudge
     Garamendi
     Giffords
     Gonzalez
     Grayson
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hare
     Hastings (FL)
     Heinrich
     Higgins
     Himes
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holt
     Honda
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson (GA)
     Johnson, E. B.
     Jones
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick (MI)
     Kilroy
     Kirkpatrick (AZ)
     Klein (FL)
     Kucinich
     Langevin
     Larson (CT)
     Lee (CA)
     Levin
     Lewis (GA)
     Loebsack
     Lowey
     Lujan
     Lynch
     Maffei
     Maloney
     Markey (MA)
     Marshall
     Matsui
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McNerney
     Meek (FL)
     Meeks (NY)
     Michaud
     Miller (NC)
     Miller, George
     Moore (KS)
     Moore (WI)
     Murphy (CT)
     Murphy, Patrick
     Nadler (NY)
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Pallone
     Pascrell
     Pastor (AZ)
     Paul
     Payne
     Perlmutter
     Peters
     Pingree (ME)
     Price (NC)
     Rangel
     Richardson
     Ros-Lehtinen
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Ryan (OH)
     Sablan
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schwartz
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Sires
     Snyder
     Speier
     Stark
     Sutton
     Taylor
     Thompson (CA)
     Thompson (MS)
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Turner
     Van Hollen
     Velazquez
     Visclosky
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Wexler
     Woolsey
     Wu
     Yarmuth

                               NOES--241

     Aderholt
     Akin
     Alexander
     Altmire
     Arcuri
     Austria
     Bachmann
     Bachus
     Barrett (SC)
     Bartlett
     Barton (TX)
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (UT)
     Blackburn
     Blunt
     Boccieri
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boren
     Boswell
     Boucher
     Boustany
     Boyd
     Brady (TX)
     Bright
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Carney
     Carter
     Cassidy
     Castle
     Chaffetz
     Chandler
     Childers
     Coble
     Coffman (CO)
     Cole
     Conaway
     Connolly (VA)
     Costa
     Costello
     Crenshaw
     Cuellar
     Culberson
     Dahlkemper
     Davis (KY)
     Davis (TN)
     Deal (GA)
     Dent
     Diaz-Balart, M.
     Donnelly (IN)
     Dreier
     Driehaus
     Duncan
     Edwards (TX)
     Ehlers
     Ellsworth
     Emerson
     Fallin
     Flake
     Fleming
     Forbes
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gingrey (GA)
     Gohmert
     Goodlatte
     Gordon (TN)
     Granger
     Graves
     Griffith
     Guthrie
     Hall (TX)
     Halvorson
     Harman
     Harper
     Hastings (WA)
     Heller
     Hensarling
     Herger
     Herseth Sandlin
     Hill
     Hoekstra
     Holden
     Hunter
     Inglis
     Issa
     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jordan (OH)
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kissell
     Kline (MN)
     Kosmas
     Kratovil
     Lamborn
     Lance
     Larsen (WA)
     Latham
     LaTourette
     Latta
     Lee (NY)
     Lewis (CA)
     Linder
     Lipinski
     LoBiondo
     Lucas
     Luetkemeyer
     Lummis
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     Markey (CO)
     Massa
     Matheson
     McCarthy (CA)
     McCaul
     McClintock
     McCotter
     McHenry
     McIntyre
     McKeon
     McMahon
     McMorris Rodgers
     Melancon
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Minnick
     Mitchell
     Mollohan
     Moran (KS)
     Murphy (NY)
     Murphy, Tim
     Myrick
     Neugebauer

[[Page 31415]]


     Nunes
     Nye
     Olson
     Ortiz
     Owens
     Paulsen
     Pence
     Perriello
     Peterson
     Petri
     Pitts
     Platts
     Poe (TX)
     Polis (CO)
     Pomeroy
     Posey
     Price (GA)
     Putnam
     Quigley
     Radanovich
     Rahall
     Rehberg
     Reichert
     Reyes
     Rodriguez
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Roskam
     Ross
     Royce
     Rush
     Ryan (WI)
     Scalise
     Schmidt
     Schock
     Schrader
     Scott (GA)
     Sensenbrenner
     Shadegg
     Shimkus
     Shuler
     Shuster
     Simpson
     Skelton
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Souder
     Space
     Spratt
     Stearns
     Stupak
     Sullivan
     Tanner
     Teague
     Terry
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Upton
     Walden
     Walz
     Wamp
     Westmoreland
     Whitfield
     Wilson (OH)
     Wilson (SC)
     Wittman
     Wolf
     Young (FL)

                             NOT VOTING--11

     Baldwin
     Bordallo
     Diaz-Balart, L.
     Lofgren, Zoe
     Moran (VA)
     Murtha
     Norton
     Pierluisi
     Sessions
     Slaughter
     Young (AK)

                              {time}  1317

  Messrs. COBLE, SULLIVAN, ROGERS of Alabama, LUETKEMEYER, KINGSTON, 
ALTMIRE, BURGESS, COSTELLO, COSTA and RUSH changed their vote from 
``aye'' to ``no.''
  Messrs. PAUL, BAIRD, GUTIERREZ, JOHNSON of Georgia, LYNCH, ACKERMAN, 
Ms. DeGETTE and Mrs. NAPOLITANO changed their vote from ``no'' to 
``aye.''
  So the amendment was rejected.
  The result of the vote was announced as above recorded.


                          personal explanation

  Mr. LARSEN of Washington. Madam Chair, during rollcall vote No. 963 
on H.R. 4173, I mistakenly recorded my vote as ``nay'' when I should 
have voted ``aye.''
  (By unanimous consent, Mr. Hoyer was allowed to speak out of order.)


                       Welcoming Our Armed Forces

  Mr. HOYER. Ladies and gentlemen of the House, we here like to refer 
to ourselves as the House of the people, the ``People's House'' as Bill 
Natcher used to refer to it. We exercise what our Founding Fathers set 
up as a free democracy, where the people can speak through freely 
elected Representatives. And very frankly, we are that because we have 
brave men and women who are willing to serve us in the Armed Forces of 
the United States.
  From time to time, they have an opportunity to visit with us. It is 
not, under the rules, appropriate to directly address people who are in 
our gallery, but it is always in order to pay honor to those who serve 
us and serve us so well.


                    Announcement by the acting chair

  The SPEAKER pro tempore. Without objection, 5-minute voting will 
continue.
  There was no objection.


               Amendment No. 32 Offered by Ms. Schakowsky

  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentlewoman from Illinois 
(Ms. Schakowsky) on which further proceedings were postponed and on 
which the ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The Acting CHAIR. This is a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 277, 
noes 149, not voting 14, as follows:

                             [Roll No. 964]

                               AYES--277

     Abercrombie
     Ackerman
     Adler (NJ)
     Akin
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Barrow
     Bean
     Becerra
     Berkley
     Berman
     Berry
     Biggert
     Bilbray
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boccieri
     Boren
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Braley (IA)
     Bright
     Brown, Corrine
     Brown-Waite, Ginny
     Butterfield
     Cao
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Castle
     Castor (FL)
     Chandler
     Childers
     Christensen
     Chu
     Clarke
     Clay
     Cleaver
     Cohen
     Connolly (VA)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Crowley
     Cuellar
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis (TN)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Donnelly (IN)
     Doyle
     Driehaus
     Edwards (MD)
     Edwards (TX)
     Ellison
     Ellsworth
     Emerson
     Engel
     Eshoo
     Etheridge
     Faleomavaega
     Farr
     Fattah
     Filner
     Fortenberry
     Foster
     Frank (MA)
     Fudge
     Garamendi
     Gerlach
     Giffords
     Gonzalez
     Gordon (TN)
     Grayson
     Green, Al
     Green, Gene
     Griffith
     Grijalva
     Gutierrez
     Hall (NY)
     Halvorson
     Hare
     Harman
     Hastings (FL)
     Heinrich
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson (GA)
     Johnson, E. B.
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilroy
     Kind
     Kirk
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kosmas
     Kratovil
     Kucinich
     Lance
     Langevin
     Larsen (WA)
     Larson (CT)
     Latham
     Lee (CA)
     Levin
     Lewis (GA)
     Lipinski
     LoBiondo
     Loebsack
     Lowey
     Lujan
     Lynch
     Maffei
     Maloney
     Markey (CO)
     Markey (MA)
     Marshall
     Massa
     Matheson
     Matsui
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McIntyre
     McMahon
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Minnick
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Murphy, Tim
     Nadler (NY)
     Napolitano
     Neal (MA)
     Nye
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Paulsen
     Payne
     Perlmutter
     Perriello
     Peters
     Peterson
     Petri
     Pingree (ME)
     Platts
     Polis (CO)
     Pomeroy
     Price (NC)
     Quigley
     Rahall
     Reyes
     Richardson
     Rodriguez
     Rogers (MI)
     Ros-Lehtinen
     Ross
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sablan
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Smith (NJ)
     Smith (WA)
     Snyder
     Space
     Speier
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Taylor
     Teague
     Thompson (CA)
     Thompson (MS)
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walz
     Wamp
     Wasserman Schultz
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Wexler
     Wilson (OH)
     Woolsey
     Wu
     Yarmuth

                               NOES--149

     Aderholt
     Alexander
     Austria
     Bachmann
     Bachus
     Barrett (SC)
     Bartlett
     Barton (TX)
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boustany
     Brady (TX)
     Broun (GA)
     Brown (SC)
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp
     Campbell
     Cantor
     Carter
     Cassidy
     Chaffetz
     Coble
     Coffman (CO)
     Cole
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Deal (GA)
     Dreier
     Duncan
     Ehlers
     Fallin
     Flake
     Fleming
     Forbes
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gingrey (GA)
     Gohmert
     Goodlatte
     Granger
     Graves
     Guthrie
     Hall (TX)
     Harper
     Hastings (WA)
     Heller
     Hensarling
     Herger
     Hoekstra
     Hunter
     Inglis
     Issa
     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jones
     Jordan (OH)
     King (IA)
     King (NY)
     Kingston
     Kline (MN)
     Lamborn
     LaTourette
     Latta
     Lee (NY)
     Lewis (CA)
     Linder
     Lucas
     Luetkemeyer
     Lummis
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     McCarthy (CA)
     McCaul
     McClintock
     McCotter
     McHenry
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Moran (KS)
     Myrick
     Neugebauer
     Nunes
     Olson
     Paul
     Pence
     Pitts
     Poe (TX)
     Posey
     Price (GA)
     Putnam
     Radanovich
     Rehberg
     Reichert
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rohrabacher
     Rooney
     Roskam
     Royce
     Ryan (WI)
     Scalise
     Schmidt
     Schock
     Sensenbrenner
     Shadegg
     Shimkus
     Shuster
     Simpson
     Smith (NE)
     Smith (TX)
     Souder
     Stearns
     Sullivan
     Terry
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Walden
     Westmoreland
     Whitfield
     Wilson (SC)
     Wittman
     Wolf
     Young (FL)

                             NOT VOTING--14

     Baldwin
     Bordallo
     Clyburn
     Kilpatrick (MI)
     Lofgren, Zoe
     Moran (VA)
     Murtha
     Norton
     Pierluisi
     Rangel
     Sessions
     Slaughter
     Waters
     Young (AK)


                    Announcement by the Acting Chair

  The Acting CHAIR (during the vote). There are 2 minutes remaining on 
this vote.

                              {time}  1327

  So the amendment was agreed to.

[[Page 31416]]

  The result of the vote was announced as above recorded.


                Amendment No. 35 Offered by Mr. Minnick

  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from Idaho (Mr. 
Minnick) on which further proceedings were postponed and on which the 
ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 208, 
noes 223, not voting 10, as follows:

                             [Roll No. 965]

                               AYES--208

     Aderholt
     Akin
     Alexander
     Austria
     Bachmann
     Bachus
     Barrett (SC)
     Barrow
     Bartlett
     Barton (TX)
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boren
     Boucher
     Boustany
     Boyd
     Brady (TX)
     Bright
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Carter
     Cassidy
     Castle
     Chaffetz
     Chandler
     Childers
     Coble
     Coffman (CO)
     Cole
     Conaway
     Costa
     Crenshaw
     Cuellar
     Culberson
     Davis (KY)
     Davis (TN)
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dreier
     Duncan
     Ehlers
     Emerson
     Fallin
     Flake
     Fleming
     Forbes
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gingrey (GA)
     Gohmert
     Goodlatte
     Granger
     Graves
     Griffith
     Guthrie
     Hall (TX)
     Harper
     Hastings (WA)
     Heller
     Hensarling
     Herger
     Herseth Sandlin
     Hill
     Hoekstra
     Hunter
     Inglis
     Issa
     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jones
     Jordan (OH)
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kirkpatrick (AZ)
     Kline (MN)
     Kratovil
     Lamborn
     Lance
     Latham
     LaTourette
     Latta
     Lee (NY)
     Lewis (CA)
     Linder
     LoBiondo
     Lucas
     Luetkemeyer
     Lummis
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     Markey (CO)
     Marshall
     Massa
     Matheson
     McCarthy (CA)
     McCaul
     McClintock
     McCotter
     McHenry
     McIntyre
     McKeon
     McMorris Rodgers
     Melancon
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Minnick
     Mitchell
     Moran (KS)
     Murphy, Tim
     Myrick
     Neugebauer
     Nunes
     Olson
     Ortiz
     Paul
     Paulsen
     Pence
     Petri
     Pitts
     Platts
     Poe (TX)
     Posey
     Price (GA)
     Putnam
     Radanovich
     Rehberg
     Reichert
     Rodriguez
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Ross
     Royce
     Ryan (WI)
     Scalise
     Schmidt
     Schock
     Sensenbrenner
     Shadegg
     Shimkus
     Shuler
     Shuster
     Simpson
     Skelton
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Souder
     Space
     Stearns
     Sullivan
     Taylor
     Teague
     Terry
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Walden
     Wamp
     Westmoreland
     Whitfield
     Wilson (SC)
     Wittman
     Wolf
     Young (FL)

                               NOES--223

     Abercrombie
     Ackerman
     Adler (NJ)
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Bean
     Becerra
     Berkley
     Berman
     Bishop (NY)
     Blumenauer
     Boccieri
     Boswell
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Castor (FL)
     Christensen
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Connolly (VA)
     Conyers
     Cooper
     Costello
     Courtney
     Crowley
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (CA)
     Davis (IL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Donnelly (IN)
     Doyle
     Driehaus
     Edwards (MD)
     Edwards (TX)
     Ellison
     Ellsworth
     Engel
     Eshoo
     Etheridge
     Faleomavaega
     Farr
     Fattah
     Filner
     Foster
     Frank (MA)
     Fudge
     Garamendi
     Giffords
     Gonzalez
     Gordon (TN)
     Grayson
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Halvorson
     Hare
     Harman
     Hastings (FL)
     Heinrich
     Higgins
     Himes
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson (GA)
     Johnson, E. B.
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick (MI)
     Kilroy
     Kind
     Kissell
     Klein (FL)
     Kosmas
     Kucinich
     Langevin
     Larsen (WA)
     Larson (CT)
     Lee (CA)
     Levin
     Lewis (GA)
     Lipinski
     Loebsack
     Lowey
     Lujan
     Lynch
     Maffei
     Maloney
     Markey (MA)
     Matsui
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McMahon
     McNerney
     Meek (FL)
     Meeks (NY)
     Michaud
     Miller (NC)
     Miller, George
     Mollohan
     Moore (KS)
     Moore (WI)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Nadler (NY)
     Napolitano
     Neal (MA)
     Nye
     Oberstar
     Obey
     Olver
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Payne
     Pelosi
     Perlmutter
     Perriello
     Peters
     Peterson
     Pingree (ME)
     Polis (CO)
     Pomeroy
     Price (NC)
     Quigley
     Rahall
     Rangel
     Reyes
     Richardson
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sablan
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Sires
     Smith (WA)
     Snyder
     Speier
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Thompson (CA)
     Thompson (MS)
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Van Hollen
     Velazquez
     Visclosky
     Walz
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Wexler
     Wilson (OH)
     Woolsey
     Wu
     Yarmuth

                             NOT VOTING--10

     Baldwin
     Bordallo
     Lofgren, Zoe
     Moran (VA)
     Murtha
     Norton
     Pierluisi
     Sessions
     Slaughter
     Young (AK)


                    Announcement by the Acting Chair

  The Acting CHAIR (during the vote). There are 2 minutes remaining.

                              {time}  1343

  Mr. LINDER and Ms. MARKEY of Colorado changed their vote from ``no'' 
to ``aye.''
  So the amendment was rejected.
  The result of the vote was announced as above recorded.


          Amendment No. 36, as Modified, Offered by Mr. Bachus

  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from Alabama 
(Mr. Bachus) on which further proceedings were postponed and on which 
the noes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The Acting CHAIR. This is a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 175, 
noes 251, not voting 14, as follows:

                             [Roll No. 966]

                               AYES--175

     Ackerman
     Aderholt
     Akin
     Alexander
     Austria
     Bachmann
     Bachus
     Barrett (SC)
     Bartlett
     Barton (TX)
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boustany
     Brady (TX)
     Bright
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Carter
     Cassidy
     Castle
     Chaffetz
     Coble
     Coffman (CO)
     Cole
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dreier
     Duncan
     Ehlers
     Emerson
     Fallin
     Flake
     Fleming
     Forbes
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Garrett (NJ)
     Gerlach
     Gingrey (GA)
     Gohmert
     Goodlatte
     Granger
     Graves
     Griffith
     Guthrie
     Hall (TX)
     Harper
     Hastings (WA)
     Heller
     Hensarling
     Herger
     Hoekstra
     Hunter
     Inglis
     Issa
     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jones
     Jordan (OH)
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline (MN)
     Lamborn
     Lance
     Latham
     LaTourette
     Latta
     Lee (NY)
     Lewis (CA)
     Linder
     LoBiondo
     Lucas
     Luetkemeyer
     Lummis
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     McCarthy (CA)
     McCaul
     McClintock
     McCotter
     McHenry
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller (MI)
     Moran (KS)
     Murphy, Tim
     Myrick
     Neugebauer
     Nunes
     Olson
     Paul
     Paulsen
     Pence
     Petri
     Pitts
     Platts
     Poe (TX)
     Posey
     Price (GA)
     Putnam
     Radanovich
     Rehberg
     Reichert
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Royce
     Ryan (WI)
     Scalise
     Schmidt
     Schock
     Sensenbrenner
     Shadegg
     Shimkus
     Shuster
     Simpson
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Souder
     Stearns

[[Page 31417]]


     Sullivan
     Terry
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Walden
     Wamp
     Westmoreland
     Whitfield
     Wilson (SC)
     Wittman
     Wolf
     Young (FL)

                               NOES--251

     Abercrombie
     Adler (NJ)
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Barrow
     Bean
     Becerra
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boccieri
     Boren
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Calvert
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Castor (FL)
     Chandler
     Childers
     Christensen
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Connolly (VA)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Crowley
     Cuellar
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis (TN)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Donnelly (IN)
     Doyle
     Driehaus
     Edwards (MD)
     Edwards (TX)
     Ellison
     Ellsworth
     Engel
     Eshoo
     Etheridge
     Faleomavaega
     Farr
     Fattah
     Filner
     Foster
     Frank (MA)
     Fudge
     Gallegly
     Garamendi
     Giffords
     Gonzalez
     Gordon (TN)
     Grayson
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Halvorson
     Hare
     Harman
     Hastings (FL)
     Heinrich
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson (GA)
     Johnson, E. B.
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick (MI)
     Kilroy
     Kind
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kosmas
     Kratovil
     Kucinich
     Langevin
     Larsen (WA)
     Larson (CT)
     Lee (CA)
     Levin
     Lewis (GA)
     Lipinski
     Loebsack
     Lowey
     Lujan
     Lynch
     Maffei
     Maloney
     Markey (CO)
     Markey (MA)
     Marshall
     Massa
     Matheson
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McMahon
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, Gary
     Miller, George
     Minnick
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Murphy (NY)
     Murphy, Patrick
     Nadler (NY)
     Napolitano
     Neal (MA)
     Nye
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Payne
     Perlmutter
     Perriello
     Peters
     Peterson
     Pingree (ME)
     Polis (CO)
     Pomeroy
     Price (NC)
     Quigley
     Rahall
     Rangel
     Reyes
     Richardson
     Rodriguez
     Ross
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sablan
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Smith (WA)
     Snyder
     Space
     Speier
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Taylor
     Teague
     Thompson (CA)
     Thompson (MS)
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Van Hollen
     Velazquez
     Visclosky
     Walz
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Wexler
     Wilson (OH)
     Woolsey
     Wu
     Yarmuth

                             NOT VOTING--14

     Baldwin
     Bordallo
     Lofgren, Zoe
     Matsui
     McIntyre
     Moran (VA)
     Murphy (CT)
     Murtha
     Norton
     Oberstar
     Pierluisi
     Sessions
     Slaughter
     Young (AK)


                    Announcement by the Acting Chair

  The Acting CHAIR (during the vote). There are 2 minutes remaining in 
this vote.

                              {time}  1350

  So the amendment was rejected.
  The result of the vote was announced as above recorded.
  Stated against:
  Mr. McINTYRE. Madam Chair, during rollcall vote No. 966, I was 
unavoidably detained. Had I been present, I would have voted ``no.''


                          PERSONAL EXPLANATION

  Ms. BORDALLO. Madam Chair, yesterday and today I have been granted an 
official leave of absence by the House of Representatives and am in my 
district attending to official business. As such, I am unable to cast 
my votes in the Committee of the Whole House on the State of the Union 
on amendments to H.R. 4173, the Wall Street Reform and Consumer 
Protection Act of 2009. If I was present for these votes, I would vote 
as follows and ask that the Record reflects these positions: ``yes'' on 
Mr. Frank's amendment (rollcall vote 953); Mr. Lynch's amendment 
(rollcall vote 955); Mr. Murphy's amendment (rollcall vote 956); Mr. 
Frank's amendment (rollcall vote 957); Mr. Stupak's amendment (rollcall 
vote 958); Mr. Stupak's amendment (rollcall vote 959); Mr. Kanjorski's 
amendment (rollcall vote 960); Mr. Peter's amendment (rollcall vote 
962); Mr. Marshall's amendment (rollcall vote 963); Ms. Schakowsky's 
amendment (rollcall vote 964); and ``no'' on Mr. Session's amendment 
(rollcall vote 954); Mr. McCarthy's amendment (rollcall vote 961); Mr. 
Minnick's (rollcall vote 965); and Mr. Bachus's amendment (rollcall 
vote 966).
  The Acting CHAIR. There being no further amendments, the Committee 
rises.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
Pastor of Arizona) having assumed the chair, Ms. Edwards of Maryland, 
Acting Chair of the Committee of the Whole House on the State of the 
Union, reported that that Committee, having had under consideration the 
bill (H.R. 4173) to provide for financial regulatory reform, to protect 
consumers and investors, to enhance Federal understanding of insurance 
issues, to regulate the over-the-counter derivatives markets, and for 
other purposes, pursuant to House Resolution 964, she reported the 
bill, as amended pursuant to House Resolution 956, back to the House 
with sundry further amendments adopted by the Committee of the Whole.
  The SPEAKER pro tempore. Under the rule, the previous question is 
ordered.
  Pursuant to House Resolution 964, the question on adoption of the 
amendments will be put en gros.
  The question is on the amendments.
  The amendments were agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.


                           Motion to Recommit

  Mr. DENT. Mr. Speaker, I have a motion to recommit at the desk.
  The SPEAKER pro tempore. Is the gentleman opposed to the bill?
  Mr. DENT. In its current form.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:

       Mr. Dent moves to recommit the bill, H.R. 4173, to the 
     Committee on Financial Services, and in addition to the 
     Committees on Agriculture, Energy and Commerce, the 
     Judiciary, Rules, the Budget, Oversight and Government 
     Reform, and Ways and Means, with instructions to report the 
     same back to the House forthwith with the following 
     amendment:

       Strike all after the enacting clause and insert the 
     following:

     SEC. 1. REPEAL OF THE TROUBLED ASSET RELIEF PROGRAM.

       (a) In General.--Notwithstanding any other provision of 
     law, the authorities provided under section 101(a) of the 
     Emergency Economic Stabilization Act of 2008 (excluding 
     section 101(a)(3)) and under section 102 of such Act shall 
     terminate on December 31, 2009.
       (b) Returned TARP Money to Be Used for Deficit Reduction.--
     Notwithstanding any other provision of law, all assistance 
     received under title I of the Emergency Economic 
     Stabilization Act of 2008 that is repaid on or after the date 
     of the enactment of this Act, along with any dividends, 
     profits, or other funds paid to the Government based on such 
     assistance on or after December 31, 2009, shall be deposited 
     in the Treasury to reduce the deficit.
       (c) Lowering of National Debt Limit to Correspond to TARP 
     Repayments.--Section 3101 of title 31, United States Code, is 
     amended--
       (1) in subsection (b), by inserting after the dollar 
     limitation contained in such subsection the following: ``, as 
     such amount is reduced by the amount described under 
     subsection (d)''; and
       (2) by adding at the end the following new subsection:
       ``(d) The amount described under this subsection is the 
     amount that equals the amount of all assistance received 
     under title I of the Emergency Economic Stabilization Act of 
     2008 that is repaid on or after December 31, 2009, along with 
     any dividends, profits, or other funds paid to the Government 
     based on such assistance on or after December 31, 2009.''.

  Mr. DENT (during the reading). I ask unanimous consent to dispense 
with the reading.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Pennsylvania?
  There was no objection.
  The SPEAKER pro tempore. The gentleman from Pennsylvania is 
recognized for 5 minutes.
  Mr. DENT. Mr. Speaker, this motion to recommit will immediately end 
the

[[Page 31418]]

Troubled Asset Relief Program, otherwise known as TARP, and require 
that all TARP funds that are repaid to the Treasury--including 
interest, dividends, the sale value of stock and the sale of warrants--
be used to reduce our national burgeoning deficits. It will also reduce 
the debt limit by the same amount saved by ending TARP. I call this 
motion to recommit the ``troubled taxpayer relief program act'' because 
it takes an important step towards getting government out of the 
bailout business and curbing excessive Washington spending. TARP was 
originally enacted as a temporary plan to address an extraordinary 
crisis in our financial markets as a result of the collapse of 
financial firms that the government said were just ``too big to fail.'' 
Those who voted for the Emergency Economic Stabilization Act, which 
created TARP, did so with the assurance that the money would be 
returned to taxpayers. That was the assurance given at the time.
  It is unfortunate that the President chose to extend the TARP program 
to October 3, 2010. In doing so, he has opened the door to efforts by 
Democrats in Congress to begin spending unallocated and repaid TARP 
funds for programs unrelated to the financial emergency. In fact, the 
underlying bill diverts $4 billion from TARP to a number of foreclosure 
mitigation and neighborhood stabilization programs. It also diverts a 
total of $23.625 billion to pay for the massive expansion of government 
bureaucracy that will result from the enactment of this legislation.
  And just yesterday, we heard from Treasury Secretary Tim Geithner 
that the administration is developing an initiative to tackle our 
economic problems and unemployment by using TARP funds for small 
businesses. Elizabeth Warren, appointed to lead the panel that oversees 
the use of TARP funds, responded to the Secretary saying, ``It's not 
news to anyone that small business lending is important. Small 
businesses are closing every day. But Treasury has announced three 
plans and has not gotten the job done.''
  The President has said that we need to ``spend our way out of this 
recession.'' The majority already tried that in passing the $787 
billion stimulus. It has not worked. Now they want to spend more TARP 
money. Haven't we learned that if we want to create jobs and grow our 
economy, we must support the private sector and invest Federal dollars 
sparingly and wisely.
  Unfortunately, this bill not only fails to end the TARP now that the 
emergency in the financial markets has abated, it also turns TARP into 
a revolving slush fund to pay for the majority's political, economic 
and social agenda. Failing to honor the original intent of TARP and 
repay the taxpayers is an irresponsible breach of trust that we are 
committed to stopping.
  Americans are struggling under the weight of high unemployment, 
sluggish economic growth and unsustainable Federal deficits. This 
Congress has piled on with a so-called stimulus bill that borrows too 
much, spends too much and delivers too few jobs, and a budget that 
doubles the national debt in 5 years and triples it in 10 years. They 
are piling on with a misguided national energy tax called cap-and-trade 
that will cost thousands of jobs in my State of Pennsylvania and 
increase energy costs for families and businesses alike; an 
undemocratic card check bill that will deny secret ballots and impose 
binding arbitration; and a controversial health care bill that imperils 
innovation, raises taxes, cuts Medicare and endangers jobs.
  Now they are piling on with this 1,300-page bill that keeps taxpayers 
on the hook for permanent bailouts, allows unelected bureaucrats to 
pick winners and losers in our economy and adds an array of new job-
killing taxes and mandates on consumers, investors and small 
businesses.
  Raiding TARP to fund more government programs that don't create jobs 
verges on the reckless. The best way to bring about economic growth and 
job creation is to avoid the massive deficits and to lessen the massive 
increase in the national debt. These misguided policies, advanced by 
the majority, are a road to higher inflation and record tax increases. 
Today, we can begin the process of putting our fiscal house in order, 
and inspiring confidence in the private sector, by shutting down TARP, 
returning the unused funds to the taxpayers, and lowering the national 
debt limit.
  At this time I would like to yield the balance of my time to Mr. 
Hensarling of Texas.
  The SPEAKER pro tempore. The gentleman from Texas will be recognized 
for 30 seconds.
  Mr. HENSARLING. Mr. Speaker, TARP was passed as emergency legislation 
to bring about financial stability. TARP has morphed into a $700 
billion revolving bailout fund to advance the administration's 
political, social and economic agenda. TARP has helped bring about our 
Nation's first trillion-dollar deficit, the highest unemployment rate 
in a generation, and helped turn us into a bailout nation. The American 
people want more jobs, not more bailouts and, oh, they want their money 
back, and they want their nation back.
  It's time to terminate TARP.
  The SPEAKER pro tempore. The time of the gentleman has expired.


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore. Members are reminded not to traffic the well 
while another is under recognition.
  Mr. FRANK of Massachusetts. I rise to speak in opposition to the 
motion to recommit.
  The SPEAKER pro tempore. The gentleman is recognized for 5 minutes.
  Mr. FRANK of Massachusetts. First, for those who might have believed 
that when the Republicans supported the Minnick amendment, or when they 
offered a substitute, that they said that was a better way to regulate, 
for those who might have believed that somebody meant that, here's the 
proof that it was all a sham.
  The Republicans have the right to offer a recommit motion. They could 
have put anything they wanted in it. Here's what it says about consumer 
protection of our Minnick or about their way of dealing with other 
issues: ``Strike all after the enacting cause.''
  The Republican motion now embodies their approach to protecting 
consumers and regulating derivatives and restricting leverage and 
letting companies go out of business. It consists of ``strike all after 
the enacting clause.'' They could have taken the Minnick amendment and 
made it part of the recommit. They could have taken their substitute 
and made it part of the recommit.
  What the recommit does, what the gentleman from Pennsylvania I think 
forgot to mention, I understand there is a lot of pressure when you are 
reading the script here, but he forgot to mention that the recommit 
motion kills all regulatory reform--dead; gone. There's no regulatory 
reform.

                              {time}  1400

  I see my friend from Texas there. He's kind of rubbing his head. His 
amendment is gone. There's no Paul amendment. If they wanted to help 
Mr. Paul and they wanted to look into the Fed, why isn't that in here? 
``Strike all after the enacting clause,'' that's what Mr. Paul gets 
from them.
  So let's be clear that it is, first of all, a cover. They use anger 
over the TARP to frankly make sure we'll need another one because they 
kill all regulation.
  Secondly, even as to the TARP, here's my difference: The minority 
leader came to the well and said TARP was passed to be an emergency 
bill and the emergency is over. You cannot directly address a Member, 
so let me say, Mr. Speaker, will someone tell the minority leader it 
ain't over until it's over on Main Street all throughout America. Maybe 
when the Republicans had that meeting with a group of financial 
lobbyists, they took some time out to celebrate the ending of an 
emergency, but most of us know the emergency is not over. I didn't say 
``ain't'' again. The emergency continues.
  And here's what the administration has proposed: Under the Bush 
administration--and I voted for TARP. I thought that the lack of 
regulation

[[Page 31419]]

created a crisis. But the big banks got the first TARP money. We are 
now finally succeeding in getting TARP money for smaller banks who can 
do community lending and small business lending. We voted today to take 
$3 billion and give it as loans to people who can't pay their mortgages 
because they're unemployed. Not people who got mortgages they shouldn't 
have gotten. Not subprime mortgages. Hardworking people who can't pay a 
mortgage. The $3 billion would go for that to help them avoid 
foreclosure, and they can pay it back when they get the job. That's 
gone. So the antisocial parts of TARP are okay and now they want to get 
rid of the other parts.
  By the way, who are they saving money for here? Their friends, the 
big banks. The original TARP legislation said at the end of the day, 
any TARP shortfall will be made up by an assessment on the financial 
community. We've gone further than that. The amendment we adopted, over 
Republican opposition, by the gentleman from Michigan (Mr. Peters) 
instructs the FDIC, in this bill that they want to kill, not 
surprisingly, to assess the financial institutions to make up any 
shortfall from the TARP. They kill that. They complained before about 
our assessment. They are very upset that we might levy on JPMorgan 
Chase and Morgan Stanley and Goldman Sachs and the others some 
responsibility financially for what's gone on.
  So here's what they do: First of all, they kill all reform, and their 
pretense that they are for a different form of it, they deliberately 
left it out of their bill. They were just playing it.
  They, secondly, say now that TARP money has gone to the big banks--
and they don't have to pay it back, by the way, under this bill 
necessarily--and we are trying to use it socially to encourage lending, 
to give it to community banks with some requirement they lend to help 
people who are unemployed avoid having foreclosure until they get their 
jobs back. Now they want to get rid of it, and to whose benefit? The 
big banks.
  The question is, should we use TARP money to give to the small banks 
for community banking? Should we use TARP money to help people avoid 
unemployment? Or should we do what they want to do and give it back so 
that the big financial institutions aren't assessed? That's what's at 
risk here. Not the taxpayers. The taxpayers are not on the hook for 
this TARP money. The large financial institutions are.
  And I know what they say: It will be a restriction in capital. Well, 
I think capital's a good thing. But to the extent that capital was 
misused for speculation, that it was misused for unleveraged credit 
default swaps, then a little reining in is a good thing.
  But, once again, here's what you have: a bill, a motion, that says 
let's not do anything to change the financial system. Let's let 
companies go bankrupt and not worry about them. Let's not have anything 
about derivatives. Let's just do nothing and instead let's save the big 
banks from having to pay their fair share when the TARP is repaid.
  Mr. STEARNS. Mr. Speaker, our current financial crisis, which is now 
global in scope, was triggered by the bursting of the U.S. housing 
bubble and particularly by the deteriorating quality of subprime 
mortgages that were bundled into toxic securities and sold all over the 
country and around the world. It was the housing crisis and mortgage 
meltdown that led us to the worst financial crisis our country has 
faced since the Great Depression.
  In examining the root causes of the housing crisis, particularly the 
policies that led to the creation of the housing bubble that would 
inevitably burst at the seams, it is important to focus on the facts 
instead of the partisan blame game that often ensues here on our House 
floor.
  To be fair, blame can be placed on both Democrats and Republicans for 
either supporting or simply going along with some of the bad housing 
policies that led to the implosion of government sponsored enterprises, 
GSEs, Fannie Mae and Freddie Mac and the subsequent collapse of our 
housing market. Democrats blame 8 years of inaction and deregulation by 
the Bush Administration, and Republicans blame the vigorous enforcement 
of the Community Reinvestment Act and the affordable housing mandate 
placed on Fannie Mae and Freddie Mac by Democrats.
  However, one of the most ardent critics of the Bush Administration 
and Republican policies in general is the Chairman of the House 
Financial Services Committee, Representative Barney Frank. Mr. Frank 
has spent two days this week on the House floor blaming Republicans and 
President Bush for the recession and for every problem our economy is 
currently facing, including the mortgage meltdown.
  However, in examining the causes of the mortgage meltdown and ensuing 
financial crisis, it is worthwhile to take a look at the facts and what 
has actually been said and advocated by certain members of this House. 
Given Representative Frank's leading role in harshly criticizing 
Republican policies, we must do our due diligence and recall Mr. 
Frank's role as a member and Chairman of the House Financial Services 
Committee and an advocate and supporter of failed GSEs Fannie Mae and 
Freddie Mac.
  Mr. Speaker, here are some interesting facts.
  In 2000, Representative Frank stated that Republican concerns about 
the stability of government sponsored enterprises Fannie Mae and 
Freddie Mac were ``overblown'' and that there was ``no federal 
liability there whatsoever.''
  Two years later, Mr. Frank went even further stating, ``I do not 
regard Fannie Mae and Freddie Mac as problems. I regard them as great 
assets.''
  Looking back, these statements are nothing short of ironic. In 2007, 
Mr. Frank became Chairman of Financial Services and he apparently 
changed his rhetoric, arguing that he had long been in favor of 
reforming Fannie and Freddie and blamed the lack of reform on 
Republicans and President George W. Bush.
  This isn't a fair argument, Mr. Speaker.
  Democrats in general have been longstanding and ardent defenders of 
out-of-control GSEs Fannie Mae and Freddie Mac, whose liberal mortgage 
lending policies and flawed structure of privatized gains and 
socialized losses greatly contributed to our current housing crisis and 
subsequent economic crisis.
  Last year, American taxpayers were forced to bailout Fannie Mae and 
Freddie Mac to the tune of almost $200 billion and are on the hook for 
the GSEs $5.4 trillion in debt and other liabilities. Let us recall 
that it was Chairman Frank who encouraged Fannie and Freddie to 
guarantee more ``affordable'' mortgages, which we all now know led to 
the mortgage market being inundated with dangerous subprime and Alt-A 
loans.
  The Democrats also pushed for an increase in the conforming-loan 
limits in order to allow Fannie and Freddie to guarantee and securitize 
larger mortgages, and Democrats pressured regulators to ease up on 
their more stringent requirements for capital. All of these factors 
contributed to the bursting of the housing bubble.
  The Democrats also played an additional role in pushing the risky 
housing policies that led to the housing crisis. The Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992, also known as 
the GSE Act, contained an ``affordable housing'' requirement which is 
what ultimately led Fannie and Freddie to acquiring over $5 trillion in 
home loans over a 16-year period. Let's recall that in 1992, Democrats 
were in control of both the House and Senate, and the GSE Act was a 
Democratic priority.
  Aggressive enforcement of the Community Reinvestment Act, CRA, of 
1977, created under a Democrat Congress and President, was also a major 
contributing factor of the mortgage meltdown and ensuing financial 
crisis. From 1977 to 1991, the CRA was responsible for $9 billion in 
local lending commitments, and following the implementation of the 
Democrat's ``affordable housing'' mandate, CRA lending skyrocketed. In 
2001, the director of the federal Office of Thrift Supervision candidly 
said, ``Our record home ownership rate, I'm convinced, would not have 
been reached without CRA and its close relative, the Fannie/Freddie 
requirements.''
  So Mr. Speaker, it is clear that aggressive enforcement of Community 
Reinvestment Act as long advocated by the Democrats, coupled with the 
Democrat's affordable housing mandate on Fannie Mae and Freddie Mac 
certainly played a major role in fueling the housing bubble. These are 
facts.
  Additionally, between 1993 and 2007, just before the near collapse of 
Fannie and Freddie, the government-backed GSEs acquired $1.2 trillion 
of loans from banks and other lenders, and from 1997 to 2007, Fannie 
and Freddie acquired $2.2 trillion in subprime loans and securities 
backed by toxic subprime loans. Altogether, 50 percent of the GSEs 
high-risk loans are estimated to be Community Reinvestment Act loans.

[[Page 31420]]

  The Democratic Party has been the torchbearer of the Community 
Reinvestment Act and the affordable housing mandate on Fannie Mae and 
Freddie Mac, which led to our housing crisis.
  Today, the House of Representatives will take a vote on a broad 
financial regulatory reform bill sponsored by Chairman Barney Frank. 
This bill seeks to change almost every aspect of our economy and 
financial markets, and yet ironically it does nothing to reform Fannie 
Mae and Freddie Mac, which were placed into government conservatorship 
last year and are being propped up by American taxpayer dollars.
  Unfortunately, the Frank financial regulatory reform bill perpetuates 
the failed policies of the past and fundamentally restructures the 
Nation's free market system, placing it firmly in the hands of big 
government. This legislation will expose taxpayers to further 
exploitation by making permanent the policies used to bailout 
politically connected firms like Fannie Mae, Freddie Mac and AIG, while 
restricting access to credit and increasing the costs of credit 
products used by small businesses on main street.
  The Frank legislation expands the powers of the very agencies that 
failed to catch the problems that created the financial crisis and 
rewards a Federal Reserve that pursued irresponsible credit policies 
and that ineffectively conducted its regulatory supervision. This bill 
also blunts market discipline through government guarantees that 
protect creditors against loss and authorizes the taxation of business 
without the approval of Congress.
  The Republican Substitute to Mr. Frank's bill phases out taxpayer 
subsidies of Fannie Mae and Freddie Mac over a number of years and ends 
the current model of privatized profits and socialized losses. I have 
long advocated winding down and privatizing Fannie and Freddie, and I 
am proud to support these reforms.
  Additionally, the Republican Financial Regulatory Reform Plan puts an 
end to the TARP program and prevents future bailouts of financial 
institutions by creating a new chapter in the bankruptcy code for non-
bank financial institutions. This protects taxpayers from covering the 
greed and excesses of failing firms. The Republican alternative also 
increases civil and criminal penalties for fraud, establishes a council 
to issue uniformed consumer protection rules, and reforms the over- 
the-counter derivatives markets.
  Given Mr. Frank's harsh and constant criticism of Republican policies 
and his eagerness to blame the Bush Administration for the financial 
and housing crises, I find it shocking that his financial regulatory 
reform bill contains no reform of GSEs Fannie Mae and Freddie Mac--the 
entities that are at the epicenter of the Nation's financial crisis.
  While Barney Frank and the Democrats regard Fannie and Freddie as 
great assets, Republicans regard them as great liabilities, and today 
we are on record supporting much needed reforms to these troubled 
government entities while also supporting commonsense reforms to our 
financial system.
  Mr. Speaker, facts always speak louder than a partisan blame game. I 
wanted to share these comments with my colleagues in reply to those 
critics who want to shift the blame for political reasons.
  The SPEAKER pro tempore. The time of the gentleman from Massachusetts 
has expired.
  Without objection, the previous question is ordered on the motion to 
recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.


                             Recorded Vote

  Mr. DENT. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 and clause 9 of rule 
XX, this 15-minute vote on the motion to recommit will be followed by 
5-minute votes on passage of the bill, if ordered, and agreeing to the 
Speaker's approval of the Journal, if ordered.
  The vote was taken by electronic device, and there were--ayes 190, 
noes 232, not voting 12, as follows:

                             [Roll No. 967]

                               AYES--190

     Aderholt
     Akin
     Alexander
     Austria
     Bachmann
     Bachus
     Barrett (SC)
     Bartlett
     Barton (TX)
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boren
     Boustany
     Brady (TX)
     Bright
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp
     Campbell
     Cantor
     Capito
     Carter
     Cassidy
     Castle
     Chaffetz
     Chandler
     Childers
     Coble
     Coffman (CO)
     Cole
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dreier
     Duncan
     Ehlers
     Emerson
     Fallin
     Flake
     Fleming
     Forbes
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Giffords
     Gingrey (GA)
     Gohmert
     Goodlatte
     Granger
     Graves
     Griffith
     Guthrie
     Hall (TX)
     Halvorson
     Harper
     Hastings (WA)
     Heller
     Hensarling
     Herger
     Hoekstra
     Hunter
     Inglis
     Issa
     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jones
     Jordan (OH)
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kirkpatrick (AZ)
     Kline (MN)
     Kosmas
     Kratovil
     Lamborn
     Lance
     Latham
     LaTourette
     Latta
     Lee (NY)
     Lewis (CA)
     Linder
     LoBiondo
     Lucas
     Luetkemeyer
     Lummis
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     Massa
     McCarthy (CA)
     McCaul
     McClintock
     McCotter
     McHenry
     McIntyre
     McKeon
     McMorris Rodgers
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Minnick
     Mitchell
     Moran (KS)
     Murphy, Tim
     Neugebauer
     Nunes
     Nye
     Olson
     Paul
     Paulsen
     Pence
     Petri
     Pitts
     Platts
     Poe (TX)
     Posey
     Price (GA)
     Putnam
     Radanovich
     Rehberg
     Reichert
     Rodriguez
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Royce
     Ryan (WI)
     Scalise
     Schmidt
     Schock
     Sensenbrenner
     Shadegg
     Shimkus
     Shuster
     Simpson
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Stearns
     Sullivan
     Taylor
     Teague
     Terry
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Walden
     Wamp
     Westmoreland
     Whitfield
     Wilson (SC)
     Wittman
     Wolf
     Young (FL)

                               NOES--232

     Abercrombie
     Ackerman
     Adler (NJ)
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Barrow
     Bean
     Becerra
     Berkley
     Berman
     Berry
     Bishop (NY)
     Blumenauer
     Boccieri
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Castor (FL)
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Connolly (VA)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Crowley
     Cuellar
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis (TN)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Donnelly (IN)
     Doyle
     Driehaus
     Edwards (MD)
     Edwards (TX)
     Ellison
     Ellsworth
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Foster
     Frank (MA)
     Fudge
     Garamendi
     Gonzalez
     Gordon (TN)
     Grayson
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Hastings (FL)
     Heinrich
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson (GA)
     Johnson, E. B.
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick (MI)
     Kilroy
     Kind
     Kissell
     Klein (FL)
     Kucinich
     Langevin
     Larsen (WA)
     Larson (CT)
     Lee (CA)
     Levin
     Lewis (GA)
     Lipinski
     Loebsack
     Lowey
     Lujan
     Lynch
     Maffei
     Maloney
     Markey (CO)
     Markey (MA)
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McMahon
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Mollohan
     Moore (KS)
     Moore (WI)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Murtha
     Nadler (NY)
     Napolitano
     Neal (MA)
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Payne
     Perlmutter
     Perriello
     Peters
     Peterson
     Pingree (ME)
     Polis (CO)
     Pomeroy
     Price (NC)
     Quigley
     Rahall
     Rangel
     Reyes
     Richardson
     Ross
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Smith (WA)
     Snyder
     Space
     Speier
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Thompson (CA)
     Thompson (MS)
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Van Hollen
     Velazquez
     Visclosky
     Walz
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Welch
     Wexler
     Wilson (OH)
     Woolsey
     Wu
     Yarmuth

                             NOT VOTING--12

     Baldwin
     Cao
     Lofgren, Zoe
     Mica
     Moran (VA)
     Myrick

[[Page 31421]]


     Oberstar
     Sessions
     Slaughter
     Souder
     Weiner
     Young (AK)


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). There are 2 minutes 
remaining.

                              {time}  1420

  So the motion to recommit was rejected.
  The result of the vote was announced as above recorded.
  Stated for:
  Mr. MICA. Mr. Speaker, on rollcall No. 967 I was unavoidably 
detained. Had I been present, I would have voted ``aye.''
  Ms. MYRICK. Mr. Speaker, I was unable to participate in the following 
vote. If I had been present, I would have voted as follows: Rollcall 
vote 967, On Motion to Recommit with Instructions--H.R. 4173, The Wall 
Street Reform and Consumer Protection Act of 2009--I would have voted 
``aye.''
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.


                             Recorded Vote

  Mr. BACHUS. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 223, 
noes 202, not voting 9, as follows:

                             [Roll No. 968]

                               AYES--223

     Abercrombie
     Ackerman
     Adler (NJ)
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Barrow
     Bean
     Becerra
     Berkley
     Berman
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boccieri
     Boswell
     Boyd
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Castor (FL)
     Childers
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Connolly (VA)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Crowley
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (CA)
     Davis (IL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Donnelly (IN)
     Doyle
     Driehaus
     Edwards (MD)
     Ellison
     Ellsworth
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Foster
     Frank (MA)
     Fudge
     Garamendi
     Giffords
     Gonzalez
     Gordon (TN)
     Grayson
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Hastings (FL)
     Heinrich
     Herseth Sandlin
     Higgins
     Himes
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson (GA)
     Johnson, E. B.
     Kagen
     Kanjorski
     Kennedy
     Kildee
     Kilpatrick (MI)
     Kilroy
     Kind
     Kissell
     Klein (FL)
     Kosmas
     Kratovil
     Langevin
     Larsen (WA)
     Larson (CT)
     Lee (CA)
     Levin
     Lewis (GA)
     Lipinski
     Loebsack
     Lowey
     Lujan
     Maffei
     Maloney
     Markey (CO)
     Markey (MA)
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McMahon
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Minnick
     Mollohan
     Moore (KS)
     Moore (WI)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Murtha
     Nadler (NY)
     Napolitano
     Neal (MA)
     Nye
     Obey
     Olver
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Payne
     Perlmutter
     Peters
     Peterson
     Pingree (ME)
     Polis (CO)
     Pomeroy
     Price (NC)
     Quigley
     Rahall
     Reyes
     Richardson
     Rodriguez
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shuler
     Sires
     Smith (WA)
     Snyder
     Speier
     Spratt
     Stark
     Sutton
     Tanner
     Thompson (CA)
     Thompson (MS)
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Van Hollen
     Velazquez
     Walz
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Wexler
     Wilson (OH)
     Woolsey
     Wu
     Yarmuth

                               NOES--202

     Aderholt
     Akin
     Alexander
     Austria
     Bachmann
     Bachus
     Barrett (SC)
     Bartlett
     Barton (TX)
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boren
     Boucher
     Boustany
     Brady (TX)
     Bright
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Carter
     Cassidy
     Castle
     Chaffetz
     Chandler
     Coble
     Coffman (CO)
     Cole
     Conaway
     Crenshaw
     Cuellar
     Culberson
     Davis (KY)
     Davis (TN)
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dreier
     Duncan
     Edwards (TX)
     Ehlers
     Emerson
     Fallin
     Flake
     Fleming
     Forbes
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gingrey (GA)
     Gohmert
     Goodlatte
     Granger
     Graves
     Griffith
     Guthrie
     Hall (TX)
     Halvorson
     Harper
     Hastings (WA)
     Heller
     Hensarling
     Herger
     Hill
     Hoekstra
     Hunter
     Inglis
     Issa
     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jones
     Jordan (OH)
     Kaptur
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kirkpatrick (AZ)
     Kline (MN)
     Kucinich
     Lamborn
     Lance
     Latham
     LaTourette
     Latta
     Lee (NY)
     Lewis (CA)
     Linder
     LoBiondo
     Lucas
     Luetkemeyer
     Lummis
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     Massa
     McCarthy (CA)
     McCaul
     McClintock
     McCotter
     McHenry
     McIntyre
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Mitchell
     Moran (KS)
     Murphy, Tim
     Myrick
     Neugebauer
     Nunes
     Olson
     Ortiz
     Paul
     Paulsen
     Pence
     Perriello
     Petri
     Pitts
     Platts
     Poe (TX)
     Posey
     Price (GA)
     Putnam
     Radanovich
     Rehberg
     Reichert
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Ross
     Royce
     Ryan (WI)
     Scalise
     Schmidt
     Schock
     Schrader
     Sensenbrenner
     Shadegg
     Shimkus
     Shuster
     Simpson
     Skelton
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Souder
     Space
     Stearns
     Stupak
     Sullivan
     Taylor
     Teague
     Terry
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Visclosky
     Walden
     Wamp
     Westmoreland
     Whitfield
     Wilson (SC)
     Wittman
     Wolf
     Young (FL)

                             NOT VOTING--9

     Baldwin
     Lofgren, Zoe
     Lynch
     Moran (VA)
     Oberstar
     Rangel
     Sessions
     Slaughter
     Young (AK)


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). Two minutes remain in the 
vote.

                              {time}  1428

  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

                          ____________________