[Congressional Record (Bound Edition), Volume 156 (2010), Part 15]
[Extensions of Remarks]
[Pages 22268-22269]
[From the U.S. Government Publishing Office, www.gpo.gov]




 H.R. 4173, THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION 
        ACT--CLARIFICATION OF INTENT WITH RESPECT TO SECTION 625

                                 ______
                                 

                           HON. DENNIS MOORE

                               of kansas

                    in the house of representatives

                      Wednesday, December 15, 2010

  Mr. MOORE of Kansas. Madam Speaker, as a House conferee for H.R. 
4173, the Dodd-

[[Page 22269]]

Frank Wall Street Reform and Consumer Protection Act (``Dodd-Frank 
Act''), I rise to reaffirm the intent of section 625 of the Dodd-Frank 
Act, which the President signed into law earlier this year (P.L. 111-
203).
  For years, many federal mutual holding companies have waived receipt 
of dividends in reliance on current Office of Thrift Supervision 
(``OTS'') regulations which permit waivers of such dividends. These 
regulations also provide that such dividend waivers would not affect 
the exchange ratio in the event of a full conversion to stock form.
  Section 625 of the Dodd-Frank Act seeks to maintain the current OTS 
regulation regarding dividend waivers for federal mutual holding 
companies which, prior to December 1, 2009, had waived the receipt of 
dividends pursuant to current OTS regulations permitting such dividend 
waivers. Section 625 authorizes that these mutual holding companies may 
continue to do so as long as they provide proper notice beforehand and 
no finding is made that such dividend waivers constitute a safety and 
soundness violation. Section 625 also provides that such dividend 
waivers shall not affect the exchange ratio in the event of a later 
full conversion by the mutual holding company to stock form. The OTS's 
regulations (which remain unaltered from when the Dodd-Frank Act was 
being debated and became law) define a mutual holding company as the 
top-tier company and includes any mid-tier stock holding company. 
Therefore, regardless of what level of the federal mutual holding 
company had or continues to waive the receipt of dividends, the clear 
intent behind Section 625 is to preserve the current OTS regulations 
with respect to these institutions.
  I commend Chairman Frank for his leadership in drafting the Dodd-
Frank Act, as well as his assistance in working with me to fully 
preserve and protect the thrift charter, including the dividend 
treatment of federal mutual holding companies. I also urge the Congress 
to carefully oversee the implementation of the Dodd-Frank Act, 
including provisions like Section 625, to ensure the regulators 
implement them in such a way as Congress intended.

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