[Congressional Record (Bound Edition), Volume 156 (2010), Part 6]
[Senate]
[Pages 7688-7698]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3922. Mr. MERKLEY (for himself, Mr. Brown of Ohio, Mrs. Boxer, Mr.

[[Page 7689]]

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

       On page 392, strike line 6 and all that follows through the 
     matter following line 2 on page 409, and insert the 
     following:
       ``(D) 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 a successor entity) and assisting the 
     Secretary in negotiating Covered Agreements;
       ``(E) to determine, in accordance with subsection (f), 
     whether State insurance measures are preempted by Covered 
     Agreements;
       ``(F) to consult with the States (including State insurance 
     regulators) regarding insurance matters of national 
     importance and prudential insurance matters of international 
     importance; and
       ``(G) to perform such other related duties and authorities 
     as may be assigned to the Office 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 such 
     insurance is determined by the Secretary based on section 
     2791 of the Public Health Service Act (42 U.S.C. 300gg-91), 
     and crop insurance, as established by the Federal Crop 
     Insurance Act (7 U.S.C. 1501 et seq.).
       ``(e) Gathering of Information.--
       ``(1) In general.--In carrying out the functions required 
     under subsection (c), the Office may--
       ``(A) receive and collect data and information on and from 
     the insurance industry and insurers;
       ``(B) enter into information-sharing agreements;
       ``(C) analyze and disseminate data and information; and
       ``(D) issue reports regarding all lines of insurance except 
     health insurance.
       ``(2) Collection of information from insurers and 
     affiliates.--
       ``(A) In general.--Except as provided in paragraph (3), the 
     Office may require an insurer, or any affiliate of an 
     insurer, to submit such data or information as the Office may 
     reasonably require in carrying out the functions described 
     under subsection (c).
       ``(B) Rule of construction.--Notwithstanding any other 
     provision of this section, for purposes of subparagraph (A), 
     the term `insurer' means any person that is authorized to 
     write insurance or reinsure risks and issue contracts or 
     policies in 1 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 the Office may 
     establish, whether by order or rule.
       ``(4) Advance coordination.--Before collecting any data or 
     information under paragraph (2) from an insurer, or any 
     affiliate of an insurer, the Office shall coordinate with 
     each relevant State insurance regulator (or other relevant 
     Federal or State regulatory agency, if any, in the case of an 
     affiliate of an insurer) to determine if the information to 
     be collected is available from, or may be obtained in a 
     timely manner by, such State insurance regulator, 
     individually or collectively, another regulatory agency, or 
     publicly available sources. Notwithstanding any other 
     provision of law, each such relevant State insurance 
     regulator or other Federal or State regulatory agency is 
     authorized to provide to the Office such data or information.
       ``(5) Confidentiality.--
       ``(A) Retention of privilege.--The submission of any 
     nonpublicly 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) Continued application of prior confidentiality 
     agreements.--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 nonpublicly 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) Information sharing agreement.--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--
       ``(i) shall comply with applicable Federal law; and
       ``(ii) 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) Agency disclosure requirements.--Section 552 of title 
     5, United States Code, shall apply to any data or information 
     submitted to the Office by an insurer or an affiliate of an 
     insurer.
       ``(6) Subpoenas and enforcement.--The Director shall have 
     the power to require by subpoena the production of the data 
     or information requested under paragraph (2), but only upon a 
     written finding by the Director that such data or information 
     is required to carry out the functions described under 
     subsection (c) and that the Office has coordinated with such 
     regulator or agency as required under paragraph (4). 
     Subpoenas shall bear the signature of the Director and shall 
     be served by any person or class of persons designated by the 
     Director for that purpose. In the case of contumacy or 
     failure to obey a subpoena, the subpoena shall be enforceable 
     by order of any appropriate district court of the United 
     States. Any failure to obey the order of the court may be 
     punished by the court as a contempt of court.
       ``(f) Preemption of State Insurance Measures.--
       ``(1) Standard.--A State insurance measure shall be 
     preempted if, and only to the extent that the Director 
     determines, in accordance with this subsection, that the 
     measure--
       ``(A) directly treats less favorably a non-United States 
     insurer domiciled in a foreign jurisdiction that is subject 
     to a Covered Agreement than a United States insurer 
     domiciled, licensed, or otherwise admitted in that State; and
       ``(B) is inconsistent with a Covered Agreement.
       ``(2) Determination.--
       ``(A) Notice of potential inconsistency.--Before making any 
     determination under paragraph (1), the Director shall--
       ``(i) notify and consult with the appropriate State 
     regarding any potential inconsistency or preemption;
       ``(ii) 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 Agreements;
       ``(iii) provide interested parties a reasonable opportunity 
     to submit written comments to the Office;
       ``(iv) consider any comments received; and
       ``(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

       ``(B) Scope of review.--For purposes of this subsection, 
     the determination of the Director regarding State insurance 
     measures shall be limited to the subject matter contained 
     within the Covered Agreement involved.
       ``(C) Notice of determination of inconsistency.--Upon 
     making any determination under paragraph (1), 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 less than 90 days, before the determination shall 
     become effective;
       ``(iii) notify the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives of the inconsistency; and
       ``(iv) cause to be published in the Federal Register notice 
     of the determination and the extent of the inconsistency.
       ``(3) Notice of effectiveness.--Upon the conclusion of the 
     period referred to in paragraph (2)(C)(ii), if the basis for 
     such determination still exists, the determination shall 
     become effective and the Director shall--
       ``(A) cause to be published a 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 such measure has been preempted 
     under this subsection.
       ``(g) Applicability of Administrative Procedures Act.--
     Determinations of inconsistency made pursuant to subsection 
     (f)(2) shall be subject to the applicable provisions of 
     subchapter II of chapter 5 of title 5, United

[[Page 7690]]

     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 or 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--
       ``(A) any State insurance measure that governs any 
     insurer's rates, premiums, underwriting, or sales practices;
       ``(B) any State coverage requirements for insurance;
       ``(C) the application of the antitrust laws of any State to 
     the business of insurance; or
       ``(D) any State insurance measure governing the capital or 
     solvency of an insurer, except to the extent that such State 
     insurance measure directly treats a non-United States insurer 
     less favorably than a United States insurer and in that case 
     only to the extent of the less favorable treatment of the 
     non-United States insurer domiciled in a foreign jurisdiction 
     that is subject to a Covered Agreement;
       ``(2) be construed to alter, amend, or limit any provision 
     of the Consumer Financial Protection Agency Act of 2010; or
       ``(3) 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 or provide the Office or the Department of the 
     Treasury with general supervisory or regulatory authority 
     over the business of insurance.
       ``(l) Annual Report to Congress.--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 Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives on the insurance industry, any actions 
     taken by the Office pursuant to subsection (f) (regarding 
     preemption of inconsistent State insurance measures), the 
     status of international insurance prudential matters and 
     negotiations, including on standard-setting, and any other 
     information as deemed relevant by the Director or as 
     requested by such Committees.
       ``(m) Study and Report on Regulation of Insurance.--
       ``(1) In general.--Not later than 18 months after the date 
     of enactment of this section, the Government Accountability 
     Office shall conduct a study and submit a report to Congress 
     on how to modernize and improve the system of insurance 
     regulation in the United States.
       ``(2) Considerations.--The study and report required under 
     paragraph (1) shall be based on and guided by the following 
     considerations:
       ``(A) Systemic risk regulation with respect to insurance.
       ``(B) Capital standards and the relationship between 
     capital allocation and liabilities, including standards 
     relating to liquidity and duration risk.
       ``(C) Consumer protection for insurance products and 
     practices, including gaps in state regulation.
       ``(D) The degree of national uniformity of State insurance 
     regulation, including the feasability and costs and benefits 
     of alternative Federal or State actions, such as interstate 
     compacts, that would encourage the States to accomplish the 
     regulatory goal of uniformity that may be identified as being 
     achieved through any proposed Federal regulation of 
     insurance.
       ``(E) The regulation of insurance companies and affiliates 
     on a consolidated basis.
       ``(F) International coordination of insurance regulation.
       ``(3) Additional factors.--The study and report required 
     under paragraph (1) shall also examine the following factors:
       ``(A) The costs and benefits of potential Federal 
     regulation of insurance across various lines of insurance 
     (except health insurance).
       ``(B) The feasibility of regulating only certain lines of 
     insurance at the Federal level, while leaving other lines of 
     insurance to be regulated at the State level.
       ``(C) The ability of any potential Federal regulation or 
     Federal regulators to eliminate or minimize regulatory 
     arbitrage.
       ``(D) The impact that developments in the regulation of 
     insurance in foreign jurisdictions might have on the 
     potential Federal regulation of insurance.
       ``(E) The ability of any potential Federal regulation or 
     Federal regulator to provide robust consumer protection for 
     policyholders.
       ``(F) The potential consequences of subjecting insurance 
     companies to a Federal resolution authority, including the 
     effects of any Federal resolution authority--
       ``(i) on the operation of State insurance guaranty fund 
     systems, including the loss of guaranty fund coverage if an 
     insurance company is subject to a Federal resolution 
     authority;
       ``(ii) on policyholder protection, including the loss of 
     the priority status of policyholder claims over other 
     unsecured general creditor claims;
       ``(iii) in the case of life insurance companies, the loss 
     of the special status of separate account assets and separate 
     account liabilities; and
       ``(iv) on the international competitiveness of insurance 
     companies.
       ``(G) Such other factors as the Government Accountability 
     Office determines necessary or appropriate, consistent with 
     the principles set forth in paragraph (2).
       ``(4) Required recommendations.--The study and report 
     required under paragraph (1) shall also contain any 
     legislative, administrative, or regulatory recommendations, 
     as the Government Accountability Office determines 
     appropriate, to carry out or effectuate the findings set 
     forth in such report.
       ``(5) Consultation.--With respect to the study and report 
     required under paragraph (1), the Government Accountability 
     Office shall consult with the National Association of 
     Insurance Commissioners, consumer organizations, 
     representatives of the insurance industry and policyholders, 
     and other organizations and experts, as appropriate.
       ``(n) Definitions.--In this section and section 314, the 
     following definitions shall apply:
       ``(1) Affiliate.--The term `affiliate' means, with respect 
     to an insurer, any person who controls, is controlled by, or 
     is under common control with the insurer.
       ``(2) Insurer.--The term `insurer' means any person engaged 
     in the business of insurance, including reinsurance.
       ``(3) Covered agreements.--The term `Covered Agreements' 
     means a written bilateral or multilateral agreement entered 
     into between the United States and a foreign government, 
     authority, or regulatory entity after the date of the 
     enactment of the Restoring American Financial Stability Act 
     of 2010 regarding prudential measures applicable to the 
     business of insurance or reinsurance that--
       ``(A) provides for recognition of other countries' 
     prudential measures with respect to the business of insurance 
     or reinsurance;
       ``(B) protects insurance consumers in the United States;
       ``(C) promotes the integrity and stability of the financial 
     system; and
       ``(D) meets the regulatory goals of the States with respect 
     to the comparable subject matter.
       ``(4) 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.
       ``(5) Office.--The term `Office' means the Office of 
     National Insurance established by this section.
       ``(6) 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.
       ``(7) State insurance regulator.--The term `State insurance 
     regulator' means any State regulatory authority responsible 
     for the supervision of insurers.
       ``(8) 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.
       ``(o) Authorization of Appropriations.--There are 
     authorized to be appropriated for the Office for each fiscal 
     year such sums as may be necessary.

     ``SEC. 314. COVERED AGREEMENTS.

       ``(a) In General.--The Secretary of the Treasury is 
     authorized to negotiate and enter into Covered Agreements on 
     behalf of the United States.
       ``(b) Savings Provision.--Nothing in this section or 
     section 313 shall be construed to affect the development and 
     coordination of United States international trade policy or 
     the administration of the United States trade agreements 
     program. It is to be understood that the negotiation of 
     Covered Agreements under such sections is consistent with the 
     requirement of this subsection.
       ``(c) Requirements for Consultation.--
       ``(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 shall consult with the United States Trade 
     Representative, the relevant Congressional committees, and 
     the insurance commissioners of the States and territories of 
     the United States.
       ``(2) Application of apa.--The initiation of negotiations 
     to enter into a Covered Agreement under subsection (a) and 
     the decision to enter into any such Covered Agreement shall 
     be subject to notice and comment rulemaking under the 
     Administrative Procedures Act.
       ``(d) Entry Into Force.--A Covered Agreement under 
     subsection (a) may enter into force with respect to the 
     United States only if--

[[Page 7691]]

       ``(1) the Secretary has made available for public review by 
     posting in the Federal Register a copy of the final legal 
     text of the Covered Agreement; and
       ``(2) a period of 90 calendar days beginning on the date on 
     which the copy of the final legal text of the Covered 
     Agreement is made available for public review 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'' and inserting a 
     semicolon;
       (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. Office of National Insurance.
``Sec. 314. Covered Agreements.
``Sec. 315. Continuing in office.''.
                                 ______
                                 
  SA 3923. Mr. SCHUMER (for himself, Mr. Reed, Mr. Akaka, and Mr. 
Menendez), submitted an amendment intended to be proposed to amendment 
SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. 
Lincoln)) to the bill S. 3217, to promote the financial stability of 
the United States by improving accountability and transparency in the 
financial system, to end ``too big to fail'', to protect the American 
taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1248, strike line 22 and all that follows through 
     page 1249, line 10 and insert the following:
       (1) Covered persons.--This section shall apply to any 
     covered person who is not a person described in section 
     1025(a) or 1026(a).
       On page 1255, line 5, strike ``(A) In general.--The 
     Bureau'' and insert the following:
       ``(A) Notice.--If the Federal Trade Commission is 
     authorized to enforce any Federal consumer financial law 
     described in paragraph (1), either the Bureau or the Federal 
     Trade Commission shall serve written notice to the other of 
     the intent to take any enforcement action, prior to 
     initiating such an enforcement action, except that if the 
     Bureau or the Federal Trade Commission, in filing the action, 
     determines that prior notice is not feasible, the Bureau or 
     the Federal Trade Commission may provide notice immediately 
     upon initiating such enforcement action.
       ``(B) Coordination.--The Bureau''.
       On page 1255, line 10, strike ``(1)(A)''.
       On page 1255, line 19, strike ``(B)'' and insert ``(C)''.
       On page 1256, line 15, strike ``(C)'' and insert ``(D)''.
       On page 1256, line 19, strike ``(D)'' and insert ``(E)''.
       On page 1255, line 10, strike ``(1)(A)''.
                                 ______
                                 
  SA 3924. Mr. SCHUMER submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 1522, line 6, strike ``date.'' and insert the 
     following: ``date.

     SEC. 1105. FHA MORTGAGE INSURANCE PROGRAMS.

       (a) FHA Mortgage Amount Limits for Elevator-type 
     Structures.--
       (1) Amendments.--Title II of the National Housing Act (12 
     U.S.C. 1707 et seq.) is amended--
       (A) in section 207(c)(3)(A) (12 U.S.C. 1713(c)(3)(A))--
       (i) by inserting ``with sound standards of construction and 
     design'' after ``elevator-type structures''; and
       (ii) by striking ``to not to exceed'' and all that follows 
     through the semicolon at the end and inserting ``by not more 
     than 50 percent of the amounts specified in this subparagraph 
     for each unit size;'';
       (B) in section 213(b)(2)(A) (12 U.S.C. 1715e(b)(2)(A))--
       (i) by inserting ``with sound standards of construction and 
     design'' after ``consist of elevator-type structures''; and
       (ii) by striking ``to not to exceed'' and all that follows 
     through ``; (B)(i)'' and inserting ``by not more than 50 
     percent of the amounts specified in this subparagraph for 
     each applicable family unit size; (B)(i)'';
       (C) in section 220(d)(3)(B)(iii)(I) (12 U.S.C. 
     1715k(d)(3)(B)(iii)(I))--
       (i) by inserting ``with sound standards of construction and 
     design'' after ``consist of elevator-type structures''; and
       (ii) by striking ``family unit not to exceed'' and all that 
     follows through ``design; and'' and inserting ``family unit 
     by not more than 50 percent of the amounts specified in this 
     subclause for each applicable family unit size; and'';
       (D) in section 221(d) (12 U.S.C. 1715l(d))--
       (i) in paragraph (3)(ii)(I)--

       (I) by inserting ``with sound standards of construction and 
     design'' after ``consist of elevator-type structures''; and
       (II) by striking ``to not to exceed'' and all that follows 
     through ``design;'' and inserting ``by not more than 50 
     percent of the amounts specified in this subclause for each 
     applicable family unit size;''; and

       (ii) in paragraph (4)(ii)(I)--

       (I) by inserting ``with sound standards of construction and 
     design'' after ``consist of elevator-type structures''; and
       (II) by striking ``to not to exceed'' and all that follows 
     through ``design;'' and inserting ``by not more than 50 
     percent of the amounts specified in this subclause for each 
     applicable family unit size;'';

       (E) in section 231(c)(2)(A) (12 U.S.C. 1715v(c)(2)(A))--
       (i) by inserting ``with sound standards of construction and 
     design'' after ``consist of elevator-type structures''; and
       (ii) by striking ``to not to exceed'' and all that follows 
     through ``design;'' and inserting ``by not more than 50 
     percent of the amounts specified in this subparagraph for 
     each applicable family unit size;''; and
       (F) in section 234(e)(3)(A) (12 U.S.C. 1715y(e)(3)(A))--
       (i) by inserting ``with sound standards of construction and 
     design'' after ``consist of elevator-type structures''; and
       (ii) by striking ``to not to exceed'' and all that follows 
     through ``sound standards of construction and design;'' and 
     inserting ``by not more than 50 percent of the amounts 
     specified in this subparagraph for each applicable family 
     unit size;''.
       (b) FHA Mortgage Amount Limits for Extremely High-cost 
     Areas.--Section 214 of the National Housing Act (12 U.S.C. 
     1715d) is amended--
       (1) in the first sentence--
       (A) by inserting ``or with respect to projects consisting 
     of more than four dwelling units located in an extremely 
     high-cost area, as determined by the Secretary'' after ``or 
     the Virgin Islands,'';
       (B) by striking ``or the Virgin Islands without sacrifice'' 
     and inserting ``or the Virgin Islands, or to construct 
     projects consisting of more than four dwelling units on 
     property located in an extremely high-cost area, as 
     determined by the Secretary, without sacrifice''; and
       (C) by striking ``or the Virgin Islands in such'' and 
     inserting ``or the Virgin Islands, or with respect to 
     projects consisting of more than four dwelling units located 
     in an extremely high-cost area, as determined by the 
     Secretary, in such'';
       (2) in the second sentence--
       (A) by striking ``the Virgin Islands shall'' and inserting 
     ``the Virgin Islands, or with respect to a project consisting 
     of more than four dwelling units located in an extremely 
     high-cost area, as determined by the Secretary, shall''; and
       (B) by striking ``Virgin Islands:'' and inserting ``Virgin 
     Islands, or in the case of a project consisting of more than 
     four dwelling units in an extremely high-cost area as 
     determined by the Secretary, in such extremely high-cost 
     area:''; and
       (3) in the section heading, by striking ``and the virgin 
     islands'' and inserting ``the virgin islands, and extremely 
     high-cost areas''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to mortgages insured under title II of the 
     National Housing Act on and after the date of enactment of 
     this Act.
                                 ______
                                 
  SA 3925. Mr. SHELBY submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1004, strike line 15 and all that follows through 
     page 1044, line 2, and insert the following:

     SEC. 931. REMOVAL OF REFERENCES TO CREDIT RATINGS IN FEDERAL 
                   LAW.

       (a) Covered Federal Agency.--In this section, the term 
     ``covered Federal agency'' means--
       (1) the Commission;
       (2) the Corporation;

[[Page 7692]]

       (3) the Board of Governors;
       (4) the National Credit Union Administration;
       (5) the Federal Housing Finance Agency; and
       (6) the Office of the Comptroller of the Currency.
       (b) Review by Covered Federal Agencies.--Not later than 2 
     years after the date of enactment of this Act, each covered 
     Federal agency shall--
       (1) review all statutes, rules, regulations, forms, and 
     interpretive guidance administered or issued by the covered 
     Federal agency to identify references to the term 
     ``nationally recognized statistical rating organization'';
       (2) amend the rules, regulations, forms, and interpretive 
     guidance that the covered Federal agency has identified under 
     paragraph (1) to ensure that the rules, regulations, forms, 
     and interpretive guidance neither require nor promote 
     reliance by persons regulated by the covered Federal agency 
     on credit ratings issued by a nationally recognized 
     statistical rating organization; and
       (3) submit to the Committee on Banking, Housing and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives a report that contains 
     recommendations for amendments to any statute that the 
     covered Federal agency has identified under paragraph (1) to 
     ensure that the statute neither requires nor promotes 
     reliance on credit ratings issued by a nationally recognized 
     statistical rating organization.
       (c) Review by Comptroller General.--
       (1) Review required.--Not later than 1 year after the date 
     of enactment of this Act, the Comptroller General of the 
     United States shall--
       (A) review all statutes, rules, regulations, forms, and 
     interpretive guidance administered or issued by each Federal 
     agency that is not a covered Federal agency to identify 
     references to the term ``nationally recognized statistical 
     rating organization'';
       (B) recommend to each Federal agency that is not a covered 
     Federal agency, and for which the Comptroller General has 
     identified rules, regulations, forms, and interpretive 
     guidance under subparagraph (A), amendments to the relevant 
     rules, regulations, forms, and interpretive guidance to 
     ensure that the rules, regulations, forms, and interpretive 
     guidance neither require nor promote reliance by persons 
     regulated by the Federal agency on credit ratings issued by a 
     nationally recognized statistical rating organization; and
       (C) submit to Congress a report that contains 
     recommendations for amendments to any statute that the 
     Comptroller General has identified under subparagraph (A) to 
     ensure that the statute neither requires nor promotes 
     reliance on credit ratings issued by a nationally recognized 
     statistical rating organization.
       (2) Amendments.--Not later than 2 years after the date of 
     enactment of this Act, any Federal agency to which the 
     Comptroller General has made a recommendation under paragraph 
     (1)(B) shall amend any rules, regulations, forms, or 
     interpretive guidance identified by the Comptroller General 
     to ensure that the rules, regulations, forms, or interpretive 
     guidance neither require nor promote reliance by persons 
     regulated by the Federal agency on credit ratings issued by a 
     nationally recognized credit rating organization.
                                 ______
                                 
  SA 3926. Ms. STABENOW (for herself, Mr. Bennett, Mr. Hatch, and Mr. 
Levin) submitted an amendment intended to be proposed to amendment SA 
3739 proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) 
to the bill S. 3217, to promote the financial stability of the United 
States by improving accountability and transparency in the financial 
system, to end ``too big to fail'', to protect the American taxpayer by 
ending bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 431, strike lines 14 through 20 and insert the 
     following:
       (ii) results from--

       (I) the merger or whole acquisition of a commercial firm 
     that directly or indirectly controls the industrial bank, 
     credit card bank, or trust bank in a bona fide merger with or 
     acquisition by another commercial firm, as determined by the 
     appropriate Federal banking agency;
       (II) an acquisition of voting shares in a publicly traded 
     holding company of a industrial bank if, after the 
     acquisition, the acquiring shareholder (or group of 
     shareholders acting in concert)--

       (aa) holds less than 25 percent of the voting shares of the 
     company; and
       (bb) has obtained all regulatory approvals required for 
     such change of control under section 7(j) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1817(j)) and any applicable 
     State law; or

       (III) an internal reorganization of affiliated entities in 
     which the ownership of the industrial bank, credit card bank, 
     or trust bank is transferred from one affiliate to another 
     after receiving all regulatory approvals required for such 
     change of control under section 7(j) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1817(j)) and any applicable State 
     law.

                                 ______
                                 
  SA 3927. Mr. LEAHY submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 749, line 17 strike all through page 752, line 11, 
     and insert the following:
       ``(2) Prohibition of disclosure of identity.--
       ``(A) In general.--Except as provided in paragraph (B) of 
     this subsection, or with the written consent of the 
     whistleblower, the Commission may not disclose the name, 
     identity or identifying information about the whistleblower 
     who has provided information to the Commission.
       ``(B) Notice and applicability to other government agencies 
     and foreign authorities.--Whenever the Commission makes a 
     disclosure to other agencies and foreign authorities, it 
     shall provide reasonable advance notice to the whistleblower 
     if disclosure of that person's identity or identifying 
     information is to occur. Any entity that receives such as 
     disclosure shall protect the whistleblower's confidentiality 
     in accordance with this subsection.
       On page 990, line 7, strike all through page 993, line 7, 
     and insert the following:
       ``(2) Prohibition of disclosure of identity.--
       ``(A) In general.--Except as provided in paragraph (B), or 
     with the written consent of the whistleblower, the Commission 
     may not disclose the name, identity or identifying 
     information about the whistleblower who has provided 
     information to the Commission.
       ``(B) Notice and applicability to other government agencies 
     and foreign authorities.--Whenever the Commission makes a 
     disclosure to other agencies and foreign authorities, it 
     shall provide reasonable advance notice to the whistleblower 
     if disclosure of that person's identity or identifying 
     information is to occur. Any entity that receives such as 
     disclosure shall protect the whistleblower's confidentiality 
     in accordance with this subsection.
                                 ______
                                 
  SA 3928. Mr. BENNET (for himself, Mr. Tester Mr. Isakson, Ms. 
Klobuchar, Mr. Begich, Mr. Udall of Colorado, and Mr. LeMieux) 
submitted an amendment intended to be proposed by him to the bill S. 
3217, to promote the financial stability of the United States by 
improving accountability and transparency in the financial system, to 
end ``too big to fail'', to protect the American taxpayer by ending 
bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of the bill, insert the following:

                      TITLE XIII--PAY IT BACK ACT

     SEC. 1301. SHORT TITLE.

       This title may be cited as the ``Pay It Back Act''.

     SEC. 1302. AMENDMENT TO REDUCE TARP AUTHORIZATION.

       Section 115(a) of the Emergency Economic Stabilization Act 
     of 2008 (12 U.S.C. 5225(a)) is amended--
       (1) in paragraph (3)--
       (A) by striking ``If'' and inserting ``Except as provided 
     in paragraph (4), if'';
       (B) by striking ``, $700,000,000,000, as such amount is 
     reduced by $1,259,000,000, as such amount is reduced by 
     $1,244,000,000'' and inserting ``$550,000,000,000''; and
       (C) by striking ``outstanding at any one time''; and
       (2) by adding at the end the following:
       ``(4) If the Secretary, with the concurrence of the 
     Chairman of the Board of Governors of the Federal Reserve 
     System, determines that there is an immediate and substantial 
     threat to the economy arising from financial instability, the 
     Secretary is authorized to purchase troubled assets under 
     this Act in an amount equal to amounts received by the 
     Secretary before, on, or after the date of enactment of the 
     Pay It Back Act for repayment of the principal of financial 
     assistance by an entity that has received financial 
     assistance under the TARP or any other program enacted by the 
     Secretary under the authorities granted to the Secretary 
     under this Act, but only--
       ``(A) to the extent necessary to address the threat; and
       ``(B) upon transmittal of such determination, in writing, 
     to the appropriate committees of Congress.''.

[[Page 7693]]



     SEC. 1303. REPORT.

       Section 106 of the Emergency Economic Stabilization Act of 
     2008 (12 U.S.C. 5216) is amended by inserting at the end the 
     following:
       ``(f) Report.--The Secretary of the Treasury shall report 
     to Congress every 6 months on amounts received and 
     transferred to the general fund under subsection (d).''.

     SEC. 1304. AMENDMENTS TO HOUSING AND ECONOMIC RECOVERY ACT OF 
                   2008.

       (a) Sale of Fannie Mae Obligations and Securities by the 
     Treasury; Deficit Reduction.--Section 304(g)(2) of the 
     Federal National Mortgage Association Charter Act (12 U.S.C. 
     1719(g)(2)) is amended--
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by inserting after subparagraph (B) the following:
       ``(C) Deficit reduction.--The Secretary of the Treasury 
     shall deposit in the General Fund of the Treasury any amounts 
     received by the Secretary from the sale of any obligation 
     acquired by the Secretary under this subsection, where such 
     amounts shall be--
       ``(i) dedicated for the sole purpose of deficit reduction; 
     and
       ``(ii) prohibited from use as an offset for other spending 
     increases or revenue reductions.''.
       (b) Sale of Freddie Mac Obligations and Securities by the 
     Treasury; Deficit Reduction.--Section 306(l)(2) of the 
     Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
     1455(l)(2)) is amended--
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by inserting after subparagraph (B) the following:
       ``(C) Deficit reduction.--The Secretary of the Treasury 
     shall deposit in the General Fund of the Treasury any amounts 
     received by the Secretary from the sale of any obligation 
     acquired by the Secretary under this subsection, where such 
     amounts shall be--
       ``(i) dedicated for the sole purpose of deficit reduction; 
     and
       ``(ii) prohibited from use as an offset for other spending 
     increases or revenue reductions.''.
       (c) Sale of Federal Home Loan Banks Obligations by the 
     Treasury; Deficit Reduction.--Section 11(l)(2) of the Federal 
     Home Loan Bank Act (12 U.S.C. 1431(l)(2)) is amended--
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by inserting after subparagraph (B) the following:
       ``(C) Deficit reduction.--The Secretary of the Treasury 
     shall deposit in the General Fund of the Treasury any amounts 
     received by the Secretary from the sale of any obligation 
     acquired by the Secretary under this subsection, where such 
     amounts shall be--
       ``(i) dedicated for the sole purpose of deficit reduction; 
     and
       ``(ii) prohibited from use as an offset for other spending 
     increases or revenue reductions.''.
       (d) Repayment of Fees.--Any periodic commitment fee or any 
     other fee or assessment paid by the Federal National Mortgage 
     Association or Federal Home Loan Mortgage Corporation to the 
     Secretary of the Treasury as a result of any preferred stock 
     purchase agreement, mortgage-backed security purchase 
     program, or any other program or activity authorized or 
     carried out pursuant to the authorities granted to the 
     Secretary of the Treasury under section 1117 of the Housing 
     and Economic Recovery Act of 2008 (Public Law 110-289; 122 
     Stat. 2683), including any fee agreed to by contract between 
     the Secretary and the Association or Corporation, shall be 
     deposited in the General Fund of the Treasury where such 
     amounts shall be--
       (1) dedicated for the sole purpose of deficit reduction; 
     and
       (2) prohibited from use as an offset for other spending 
     increases or revenue reductions.

     SEC. 1305. FEDERAL HOUSING FINANCE AGENCY REPORT.

       The Director of the Federal Housing Finance Agency shall 
     submit to Congress a report on the plans of the Agency to 
     continue to support and maintain the Nation's vital housing 
     industry, while at the same time guaranteeing that the 
     American taxpayer will not suffer unnecessary losses.

     SEC. 1306. REPAYMENT OF UNOBLIGATED ARRA FUNDS.

       (a) Rejection of ARRA Funds by State.--Section 1607 of the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5; 123 Stat. 305) is amended by adding at the end the 
     following:
       ``(d) Statewide Rejection of Funds.--If funds provided to 
     any State in any division of this Act are not accepted for 
     use by the Governor of the State pursuant to subsection (a) 
     or by the State legislature pursuant to subsection (b), then 
     all such funds shall be--
       ``(1) rescinded; and
       ``(2) deposited in the General Fund of the Treasury where 
     such amounts shall be--
       ``(A) dedicated for the sole purpose of deficit reduction; 
     and
       ``(B) prohibited from use as an offset for other spending 
     increases or revenue reductions.''.
       (b) Withdrawal or Recapture of Unobligated Funds.--Title 
     XVI of the American Recovery and Reinvestment Act of 2009 
     (Public Law 111-5; 123 Stat. 302) is amended by adding at the 
     end the following:

     ``SEC. 1613. WITHDRAWAL OR RECAPTURE OF UNOBLIGATED FUNDS.

       ``Notwithstanding any other provision of this Act, if the 
     head of any executive agency withdraws or recaptures for any 
     reason funds appropriated or otherwise made available under 
     this division, and such funds have not been obligated by a 
     State to a local government or for a specific project, such 
     recaptured funds shall be--
       ``(1) rescinded; and
       ``(2) deposited in the General Fund of the Treasury where 
     such amounts shall be--
       ``(A) dedicated for the sole purpose of deficit reduction; 
     and
       ``(B) prohibited from use as an offset for other spending 
     increases or revenue reductions.''.
       (c) Return of Unobligated Funds by End of 2012.--Section 
     1603 of the American Recovery and Reinvestment Act of 2009 
     (Public Law 111-5; 123 Stat. 302) is amended by--
       (1) striking ``All funds'' and inserting ``(a) In 
     General.--All funds''; and
       (2) adding at the end the following:
       ``(b) Repayment of Unobligated Funds.--Any discretionary 
     appropriations made available in this division that have not 
     been obligated as of December 31, 2012, are hereby rescinded, 
     and such amounts shall be deposited in the General Fund of 
     the Treasury where such amounts shall be--
       ``(1) dedicated for the sole purpose of deficit reduction; 
     and
       ``(2) prohibited from use as an offset for other spending 
     increases or revenue reductions.
       ``(c) Presidential Waiver Authority.--
       ``(1) In general.--The President may waive the requirements 
     under subsection (b), if the President determines that it is 
     not in the best interest of the Nation to rescind a specific 
     unobligated amount after December 31, 2012.
       ``(2) Requests.--The head of an executive agency may also 
     apply to the President for a waiver from the requirements 
     under subsection (b).''.
                                 ______
                                 
  SA 3929. Mr. CORKER submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1223, line 8, strike Sec. 1017, and insert the 
     following:

     SEC. 1017. FUNDING; PENALTIES AND FINES.

       (a) Overall Operating Budget.--
       (1) In general.--Eighteen months after the designated 
     transfer date, and annually thereafter, the Director shall 
     prepare an operating budget for the Bureau. The Director 
     shall submit the budget to the Board of Governors for 
     approval.
       (2) Budget itemization required.--The Director shall 
     include in each budget submitted pursuant to paragraph (1) an 
     itemization of the amount of funds necessary to carry out the 
     functions of the Bureau, including any expenditures necessary 
     to address recommendations or findings of material 
     deficiencies by the Comptroller General of the United States.
       (b) Fees and Assessments.--
       (1) In general.--The Bureau shall establish, by rule, 
     assessment schedules, including the assessment base and 
     rates, applicable to nondepository covered persons described 
     in section 1024(a).
       (2) Nondepository covered persons.--The assessments imposed 
     by the Bureau by rules established pursuant to paragraph (1) 
     shall, with respect to covered persons described in section 
     1024(a), be set to recover the costs of the Bureau in 
     carrying out its supervisory and enforcement responsibilities 
     described in section 1024.
       (3) Transfer of funds from board of governors.--To the 
     extent that assessments do not provide funding sufficient to 
     meet the amount subject to the limitation in paragraph (4), 
     funds shall be transferred from the Board of Governors.
       (4) Limitation.--The assessments imposed by the Bureau by 
     rules established pursuant to paragraph (1) and any funds 
     transferred from the Board of Governors collectively shall 
     not exceed 5 percent of the total operating expenses of the 
     Federal Reserve System, as reported in the Annual Report of 
     the Board of Governors for fiscal year 2006.
       (c) Fund Established.--
       (1) In general.--The Secretary shall establish in the 
     Treasury of the United States, a separate account, to be 
     known as the ``Consumer Financial Protection Fund'' (referred 
     to in this title as the ``CFP Fund''). Fees and assessments 
     collected under this section shall be deposited into the CFP 
     Fund.
       (2) Rule of construction.--Any amounts deposited into the 
     CFP Fund may not be construed to be Government funds or 
     appropriated monies.

[[Page 7694]]

       (3) No apportionment.--Any amounts deposited into the CFP 
     Fund shall not be subject to apportionment for the purpose of 
     chapter 15 of title 31, United States Code, or under any 
     other authority.
       (4) Availability.--Funds in the CFP Fund shall be 
     immediately available to the Bureau and under the control of 
     the Bureau, and shall remain available until expended, to pay 
     the expenses of the Bureau in carrying out its duties and 
     responsibilities.
       (d) Financial, Operating Plans and Forecasts.--
       (1) Operating plans and forecasts.--The Director shall 
     provide to the Director of the Office of Management and 
     Budget copies of the financial operating plans and forecasts 
     of the Director, as prepared by the Director in the ordinary 
     course of the operations of the Bureau, and copies of the 
     quarterly reports of the financial condition and results of 
     operations of the Bureau, as prepared by the Director in the 
     ordinary course of the operations of the Bureau.
       (2) Financial statements.--The Bureau shall prepare 
     annually a statement of--
       (A) assets and liabilities and surplus or deficit;
       (B) income and expenses; and
       (C) sources and application of funds.
       (3) Financial management systems.--The Bureau shall 
     implement and maintain financial management systems that 
     comply with Federal financial management systems requirements 
     and applicable Federal accounting standards.
       (4) Assertion of internal controls.--The Director shall 
     provide to the Comptroller General of the United States an 
     assertion as to the effectiveness of the internal controls 
     that apply to financial reporting by the Bureau, using the 
     standards established under section 3512(c) of title 31, 
     United States Code.
       (5) Rule of construction.--This subsection may not be 
     construed as implying any obligation on the part of the 
     Director to consult with or obtain the consent or approval of 
     the Director of the Office of Management and Budget with 
     respect to any report, plan, forecast, or other information 
     referred to in this subsection or any jurisdiction or 
     oversight over the affairs or operations of the Bureau.
       (e) Audit of the Bureau.--
       (1) In general.--The Comptroller General of the United 
     States shall annually audit the financial transactions of the 
     Bureau in accordance with the United States generally 
     accepted government auditing standards, as may be prescribed 
     by the Comptroller General. The audit shall be conducted at 
     the place or places where accounts of the Bureau are normally 
     kept. The representatives of the Government Accountability 
     Office shall have access to the personnel and to all books, 
     accounts, documents, papers, records (including electronic 
     records), reports, files, and all other papers, automated 
     data, things, or property belonging to or under the control 
     of or used or employed by the Bureau pertaining to its 
     financial transactions and necessary to facilitate the audit, 
     and such representatives shall be afforded full facilities 
     for verifying transactions with the balances or securities 
     held by depositories, fiscal agents, and custodians. All such 
     books, accounts, documents, records, reports, files, papers, 
     and property of the Bureau shall remain in possession and 
     custody of the Bureau. The Comptroller General may obtain and 
     duplicate any such books, accounts, documents, records, 
     working papers, automated data and files, or other 
     information relevant to such audit without cost to the 
     Comptroller General, and the right of the Comptroller General 
     to access to such information shall be enforceable pursuant 
     to section 716(c) of title 31, United States Code.
       (2) Report.--
       (A) Report on annual audit.--The Comptroller General shall 
     submit to the Congress a report of each annual audit 
     conducted under this subsection, which report shall--
       (i) set forth the scope of the audit;
       (ii) include the statement of--

       (I) assets and liabilities and surplus or deficit;
       (II) income and expenses; and
       (III) sources and application of funds;

       (iii) include any detailed findings of material 
     deficiencies;
       (iv) include such comments and information as may be deemed 
     necessary to inform Congress of the financial operations and 
     condition of the Bureau; and
       (v) be presented, together with recommendations with 
     respect thereto, as the Comptroller General may deem 
     necessary and advisable to improve the business practices of 
     the Bureau or correct any material deficiencies.
       (B) Copies.--A copy of each report submitted under 
     subparagraph (A) shall be furnished to the President and to 
     the Bureau at the time such report is submitted to Congress.
       (C) Follow-up report.--The Bureau shall submit to Congress 
     a report following each annual audit conducted under this 
     subsection that includes a detailed explanation of any 
     recommendations or findings of material deficiencies, 
     together with a corrective action plan, including a timeline, 
     for addressing the findings and recommendations of the 
     Comptroller General.
       (3) Assistance and costs.--For the purpose of conducting an 
     audit under this subsection, the Comptroller General may, in 
     the discretion of the Comptroller General, employ by 
     contract, without regard to section 3709 of the Revised 
     Statutes of the United States (41 U.S.C. 5), professional 
     services of firms and organizations of certified public 
     accountants for temporary periods or for special purposes. 
     Upon the request of the Comptroller General, the Director of 
     the Bureau shall transfer to the Government Accountability 
     Office from funds available, the amount requested by the 
     Comptroller General to cover the full costs of any audit and 
     report conducted by the Comptroller General under this 
     subsection. The Comptroller General shall credit funds 
     transferred to the account established for salaries and 
     expenses of the Government Accountability Office, and such 
     amount shall be available upon receipt and without fiscal 
     year limitation to cover the full costs of the audit and 
     report.
       (f) Transition.--Until such time as an assessment schedule 
     has been established pursuant to this section and the 
     necessary contributions have been deposited into the CFP 
     Fund, the functions assigned under this section to the Bureau 
     shall be funded in accordance with section 1066(c).
       (g) Limitation on Distribution of Funds.--
       (1) In general.--None of the funds made available under 
     this title shall be used for or to support private litigation 
     or to fund political activities, nor be provided to any--
       (A) organization which has been indicted for a violation 
     under Federal law relating to an election for Federal office; 
     and
       (B) organization which employs any applicable individual.
       (2) Applicable individuals defined.--In this subsection, 
     the term ``applicable individual'' means an individual who--
       (A) is--
       (i) employed by the organization in a permanent or 
     temporary capacity;
       (ii) contracted or retained by the organization; or
       (iii) acting on behalf of, or with the express or apparent 
     authority of, the organization; and
       (B) has been indicted for a violation under Federal law 
     relating to an election for Federal office.
       (h) Appearances Before Congress.--The Director of the 
     Bureau shall appear before the Committee on Banking, Housing, 
     and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives at semi-
     annual hearings regarding the reports required under 
     subsection (i).
       (i) Reports Required.--The Director shall, concurrent with 
     each semi-annual hearing referred to in subsection (a), 
     prepare and submit to the President and to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services.
       On page 1210, strike line 1 and all that follows through 
     page 1211, line 19.
                                 ______
                                 
  SA 3930. Mr. CORKER submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1290, between lines 4 and 5, insert the following:
       (s) No Authority Over Underwriting Standards for 
     Residential Mortgage Loans.--
       (1) Rule of construction.--Nothing in this title may be 
     construed as conferring authority on the Bureau to exercise 
     any rulemaking or other authority for matters pertaining to 
     underwriting standards with respect to residential mortgage 
     loans, except as otherwise authorized under section 1024.
       (2) Definitions.--For purposes of this subsection--
       (A) the term `residential mortgage loan' means any 
     extension of credit primarily for personal, family, or 
     household use that is secured by a mortgage, deed of trust, 
     or other equivalent security interest in a dwelling or 
     residential real estate upon which is constructed or intended 
     to be constructed a dwelling; and
       (B) the terms ``credit'' and ``dwelling'' have the same 
     meanings as in section 103 of the Truth in Lending Act (15 
     U.S.C. 1602).
       On page 1430, strike line 8 and all that follows through 
     page 1440, line 21.
                                 ______
                                 
  SA 3931. Mr. MERKLEY (for himself, Mr. Levin, Mr. Brown of Ohio, Mr. 
Kaufman, Mrs. Shaheen, Mrs. Feinstein, Mr. Casey, Mr. Nelson of 
Florida, Mr. Burris, Mr. Begich, Mr. Inouye, Mr. Whitehouse, Mrs. 
McCaskill, Mr. Udall of Colorado, Ms. Mikulski, Mr. Sanders, Mr. Udall 
of New Mexico, and Mr. Reed) submitted

[[Page 7695]]

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

       On page 484, strike line 16 and all that follows through 
     page 497, line 8, and insert the following:

     SEC. 619. PROHIBITIONS ON PROPRIETARY TRADING AND CERTAIN 
                   RELATIONSHIPS WITH HEDGE FUNDS AND PRIVATE 
                   EQUITY FUNDS.

       The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 13. PROHIBITIONS ON PROPRIETARY TRADING AND CERTAIN 
                   RELATIONSHIPS WITH HEDGE FUNDS AND PRIVATE 
                   EQUITY FUNDS.

       ``(a) In General.--
       ``(1) Prohibition.--Unless otherwise provided in this 
     section, a banking entity shall not--
       ``(A) engage in proprietary trading; or
       ``(B) acquire or retain any equity, partnership, or other 
     ownership interest in or sponsor a hedge fund or a private 
     equity fund.
       ``(2) Nonbank financial companies.--Any nonbank financial 
     company supervised by the Board that engages in proprietary 
     trading or takes or retains any equity, partnership, or other 
     ownership interest in or sponsors a hedge fund or a private 
     equity fund shall be subject by the Board, in consultation 
     with the Securities and Exchange Commission and the Commodity 
     Futures Trading Commission, to additional capital 
     requirements for and additional quantitative limits with 
     regards to such proprietary trading and taking or retaining 
     any equity, partnership, or other ownership interest in or 
     sponsorship of a hedge fund or a private equity fund, except 
     that permitted activities as described in subsection (d) 
     shall be subject to additional capital and additional 
     quantitative limits as prescribed pursuant to subsection 
     (d)(3).
       ``(b) Study and Rulemaking.--
       ``(1) Study.--
       ``(A) In general.--Not later than 6 months after the date 
     of enactment of this section, the Financial Stability 
     Oversight Council shall study and make recommendations on 
     implementing the provisions of this section.
       ``(B) Contents of study.--Not later than 6 months after the 
     date of enactment of this Act, the Council shall study and 
     make recommendations on implementing the provisions of this 
     section so as to--
       ``(i) promote and enhance the safety and soundness of 
     banking entities;
       ``(ii) protect taxpayers and enhance financial stability by 
     minimizing the risk that depository institutions and the 
     affiliates of depository institutions will engage in unsafe 
     and unsound activities;
       ``(iii) limit the inappropriate transfer of Federal 
     subsidies from institutions that benefit from deposit 
     insurance and liquidity facilities of the Federal Government 
     to unregulated entities;
       ``(iv) reduce conflicts of interest between the self-
     interest of banking entities and nonbank financial companies, 
     and the interests of the customers of such entities and 
     companies;
       ``(v) not unreasonably raise the cost of credit or other 
     financial services, reduce the availability of credit or 
     other financial services, or impose other costs on households 
     and businesses in the United States;
       ``(vi) limit activities that have caused undue risk or loss 
     in banking entities and nonbank financial companies, or that 
     might reasonably be expected to create undue risk or loss in 
     such banking entities and nonbank financial companies; and
       ``(vii) appropriately accommodate the business of insurance 
     within an insurance company subject to regulation in 
     accordance with the relevant insurance company investment 
     laws while protecting the safety and soundness of an 
     affiliated insured depository institution and the United 
     States financial system.
       ``(2) Rulemaking.--
       ``(A) In general.--Not later than 9 months after the 
     completion of the study under paragraph (1), the appropriate 
     Federal banking agencies, in consultation with the Securities 
     and Exchange Commission and the Commodity Futures Trading 
     Commission, (unless otherwise provided in this section) shall 
     consider the findings of the study under paragraph (1) and 
     adopt rules to carry out this section.
       ``(B) Coordinated rulemaking.--
       ``(i) Coordination, consistency, and comparability.--In 
     developing and issuing regulations pursuant to this section, 
     the agencies shall consult and coordinate with each other for 
     the purposes of assuring, to the extent possible, that such 
     regulations are comparable and provide for consistent 
     application and implementation of the applicable provisions 
     of this section to avoid providing advantages or imposing 
     disadvantages to the companies affected by this subsection 
     and to protect the safety and soundness of the banking 
     entities and nonbank financial companies supervised by the 
     Board.
       ``(ii) Council role.--The chairperson of the Council shall 
     be responsible for coordination of the regulations issued 
     under this section.
       ``(c) Effective Date.--The provisions of this section shall 
     take effect 18 months after the date of adoption of final 
     rules under subsection (b)(2), but not later than 3 years 
     after the date of enactment of this section.
       ``(d) Permitted Activities.--
       ``(1) In general.--Notwithstanding the restrictions in 
     subsection (a), to the extent permitted by other laws or 
     regulations, and subject to the limitations under paragraph 
     (2) and any restrictions or limitations that the appropriate 
     Federal banking agencies, in consultation with the Securities 
     and Exchange Commission and the Commodity Futures Trading 
     Commission, may jointly determine, the following activities 
     (in this section referred to as `permitted activities') are 
     permitted:
       ``(A) The purchase, sale, acquisition, or disposition of 
     obligations of the United States or any agency thereof; 
     obligations, participations, or other instruments of or 
     issued by the Government National Mortgage Association, the 
     Federal National Mortgage Association, the Federal Home Loan 
     Mortgage Corporation, a Federal Home Loan Bank, the Federal 
     Agricultural Mortgage Corporation, or a Farm Credit System 
     institution chartered under and subject to the provisions of 
     the Farm Credit Act of 1971 (12 U.S.C. 2001 et. seq.), and 
     obligations of any State or of any political subdivision 
     thereof.
       ``(B) The purchase, sale, acquisition, or disposition of 
     securities and other instruments described in subsection 
     (i)(4) in connection with underwriting, market-making, or in 
     facilitation of customer relationships, to the extent that 
     any such activities permitted by this subparagraph are 
     designed to not exceed the reasonably expected near term 
     demands of clients, customers, or counterparties.
       ``(C) Risk-mitigating hedging activities designed to reduce 
     risks to the banking entity or nonbank financial company.
       ``(D) The purchase, sale, acquisition, or disposition of 
     securities and other instruments described in subsection 
     (i)(4) on behalf of customers.
       ``(E) Investments in one or more small business investment 
     companies or investments designed primarily to promote the 
     public welfare, as provided in paragraph (11) of section 5136 
     of the Revised Statutes of the United States (12 U.S.C. 24).
       ``(F) The purchase, sale, acquisition, or disposition of 
     securities and other instruments described in subsection 
     (i)(4) by a regulated insurance company directly engaged in 
     the business of insurance for the general account of the 
     company and by any affiliate of such regulated insurance 
     company provided such activities are solely for the general 
     account of the regulated insurance company, if--
       ``(i) the purchase, sale, acquisition, or disposition is 
     conducted in compliance with, and subject to, the insurance 
     company investment laws, regulations, and written guidance of 
     the State or jurisdiction in which each such insurance 
     company is domiciled; and
       ``(ii) the appropriate Federal banking agencies, after 
     consultation with the Financial Stability Oversight Council 
     and the relevant insurance commissioners of the States and 
     territories of the United States, have not jointly 
     determined, after notice and comment, that a particular law, 
     regulation, or written guidance described in clause (i) is 
     insufficient to protect the safety and soundness of the 
     company or the banking entity or the financial stability of 
     the United States.
       ``(G) Proprietary trading conducted by a company pursuant 
     to paragraph (9) or (13) of section 4(c), provided that the 
     trading occurs solely outside of the United States and that 
     the company is not directly or indirectly controlled by a 
     United States person.
       ``(H) The acquisition or retention of any equity, 
     partnership, or other ownership interest in or the 
     sponsorship of a hedge fund or a private equity fund by a 
     company pursuant to section 4(c) (9) or (13) solely outside 
     of the United States, provided that no ownership interest in 
     the hedge fund or private equity fund is offered for sale or 
     sold to a resident of the United States and that the company 
     is not directly or indirectly controlled by a company that is 
     organized in the United States.
       ``(I) Such other activity as the appropriate Federal 
     banking agencies, in consultation with the Securities and 
     Exchange Commission and the Commodity Futures Trading 
     Commission, jointly determine through regulation, as provided 
     for in subsection (c), would promote and protect the safety 
     and soundness of the banking entity or nonbank financial 
     company and the financial stability of the United States.
       ``(2) Limitation on permitted activities.--
       ``(A) In general.--No transaction, class of transactions, 
     or activity may be deemed a permitted activity under 
     paragraph (1) if it--
       ``(i) would involve or result in a material conflict of 
     interest (as such term shall be defined jointly by rule) 
     between the banking entity or the nonbank financial company 
     and its clients, customers, or counterparties;
       ``(ii) would result, directly or indirectly, in an unsafe 
     and unsound exposure by the banking entity or nonbank 
     financial company to

[[Page 7696]]

     high-risk assets or high-risk trading strategies (as such 
     terms shall be defined jointly by rule);
       ``(iii) would pose a threat to the safety and soundness of 
     such banking entity or nonbank financial company; or
       ``(iv) would pose a threat to the financial stability of 
     the United States.
       ``(B) Rulemaking.--The appropriate Federal banking 
     agencies, in consultation with the Securities and Exchange 
     Commission and the Commodity Futures Trading Commission, 
     shall issue regulations to implement subparagraph (A) as part 
     of the regulations provided for under subsection (b)(2).
       ``(3) Capital and quantitative limitations.--The Board, in 
     consultation with the Securities and Exchange Commission and 
     the Commodity Futures Trading Commission, shall adopt rules 
     imposing additional capital requirements and quantitative 
     limitations regarding the activities permitted under this 
     section if the Board determines that additional capital and 
     quantitative limitations are appropriate to protect the 
     safety and soundness of the banking entities and nonbank 
     financial companies engaged in such activities.
       ``(e) Anti-evasion.--
       ``(1) Rulemaking.--The appropriate Federal banking 
     agencies, in consultation with the Securities and Exchange 
     Commission and the Commodity Futures Trading Commission, 
     shall jointly issue regulations as part of the rulemaking 
     provided for in subsection (c) regarding internal controls 
     and recordkeeping in order to insure compliance with this 
     section.
       ``(2) Termination of activities or investment.--
     Notwithstanding any other provision of law, whenever an 
     appropriate Federal banking agency or the Securities and 
     Exchange Commission or Commodity Futures Trading Commission, 
     as appropriate, has reasonable cause to believe that a 
     banking entity or nonbank financial company under the 
     respective agency's jurisdiction has made an investment or 
     engaged in an activity in a manner that is intended to evade 
     the requirements of this section (including through an abuse 
     of any permitted activity), the appropriate Federal banking 
     agency or the Securities and Exchange Commission or Commodity 
     Futures Trading Commission, as appropriate, shall order, 
     after due notice and opportunity for hearing, the banking 
     entity or nonbank financial company to terminate the activity 
     and, as relevant, dispose of the investment; provided that 
     nothing in this subparagraph shall be construed to limit the 
     inherent authority of any Federal agency or state regulatory 
     authority to further restrict any investments or activities 
     under otherwise applicable provisions of law.
       ``(f) Limitations on Relationships With Hedge Funds and 
     Private Equity Funds.--
       ``(1) In general.--No banking entity that serves, directly 
     or indirectly, as the investment manager or investment 
     adviser to a hedge fund or private equity fund may enter into 
     a covered transaction, as defined in section 23A of the 
     Federal Reserve Act (12 U.S.C. 371c) with the hedge fund or 
     private equity fund.
       ``(2) Treatment as member bank.--A banking entity that 
     serves, directly or indirectly, as the investment manager or 
     investment adviser to a hedge fund or private equity fund 
     shall be subject to section 23B of the Federal Reserve Act 
     (12 U.S.C. 371c-1), as if such person were a member bank and 
     such hedge fund or private equity fund were an affiliate 
     thereof.
       ``(g) Limitation on Contrary Authority.--No activity that 
     is authorized for a banking entity or a nonbank financial 
     company supervised by the Board under any other provision of 
     law may be engaged in, directly or indirectly, by a banking 
     entity or a nonbank financial company supervised by the Board 
     under such authority or under any other provision of law, if 
     such activity is prohibited or restricted under this section.
       ``(h) Rule of Construction.--Nothing in this section may be 
     construed to limit the inherent authority of any Federal 
     agency or state regulatory authority under otherwise 
     applicable provisions of law.
       ``(i) Definitions.--In this section, the following 
     definitions shall apply:
       ``(1) Banking entity.--The term `banking entity' means any 
     insured depository institution (as defined in section 3 of 
     the Federal Deposit Insurance Act (12 U.S.C. 1813)), any 
     company that controls an insured depository institution, or 
     that is treated as a bank holding company for purposes of 
     section 8 of the International Banking Act, and any affiliate 
     or subsidiary of any such entity.
       ``(2) Hedge fund; private equity fund.--The terms `hedge 
     fund' and `private equity fund' mean a company or other 
     entity that is exempt from registration as an investment 
     company pursuant to section 3(c)(1) or 3(c)(7) of the 
     Investment Company Act of 1940 (15 U.S.C. 80a-3(c)(1) or 80a-
     3(c)(7)), or such similar funds as jointly determined 
     appropriate by the appropriate Federal banking agencies, the 
     Securities and Exchange Commission, and the Commodity Futures 
     Trading Commission.
       ``(3) Nonbank financial company.--The terms `nonbank 
     financial company supervised by the Board' and `nonbank 
     financial company' mean any United States nonbank financial 
     company or foreign nonbank financial company supervised by 
     the Board under section 113 of the Financial Stability Act of 
     2010.
       ``(4) Proprietary trading.--The term `proprietary trading' 
     means engaging as a principal for its own trading account in 
     any transaction to purchase or sell, or otherwise acquire or 
     dispose of, any security, contract of sale of a commodity for 
     future delivery, any option on any such contract, swap, 
     security-based swap, or any other security or financial 
     instrument that the appropriate Federal banking agencies, in 
     consultation with the Securities and Exchange Commission and 
     the Commodity Futures Trading Commission, may jointly, by 
     rule, determine.
       ``(5) Trading account.--For all banking entities and 
     nonbank financial companies covered by this section, the term 
     `trading account' shall be defined consistent with guidance 
     issued by the Board with regard to financial statements of 
     bank holding companies and shall include any account used for 
     acquiring or taking positions in such items principally for 
     the purpose of selling in the near term (or otherwise with 
     the intent to resell in order to profit from short-term price 
     movements), and any such other accounts as the appropriate 
     Federal banking agencies, in consultation with the Securities 
     and Exchange Commission and the Commodity Futures Trading 
     Commission, may jointly, by rule, determine.
       ``(6) Sponsor.--The term to `sponsor' a fund means to--
       ``(A) serve as a general partner, managing member, or 
     trustee of a fund;
       ``(B) in any manner select or control (or having employees, 
     officers, or directors, or agents who constitute) a majority 
     of the directors, trustees, or management of a fund; or
       ``(C) share with a fund, for corporate, marketing, 
     promotional, or other purposes, the same name or a variation 
     of the same name.''.

     SEC. 619A. STUDY OF BANK ACTIVITIES.

       (a) Study.--Not later than 18 months after the date of 
     enactment of this Act, the appropriate Federal banking 
     agencies shall jointly review and prepare a report on 
     activities permitted as part of the business of banking under 
     Federal and State law including activities authorized by 
     statute and by order, interpretation and guidance and shall 
     as part of the report review and consider--
       (1) the type of activities or investment;
       (2) any financial, operational, managerial or reputation 
     risks associated with or presented as a result of the banking 
     entity engaged in the activity or making the investment; and,
       (3) risk mitigation activities undertaken by the banking 
     entity with regard to the risks.
       (b) Report and Recommendations to the Council and to 
     Congress.--The appropriate Federal banking agencies shall 
     submit to the Council, the Committee on Financial Services of 
     the House of Representatives, and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate the study conducted 
     pursuant to subsection (a) no later than two months after its 
     completion. In addition to the information described in 
     subsection (a), the report shall include recommendations 
     regarding--
       (1) whether each activity or investment has or could have a 
     negative effect on the safety and soundness of the banking 
     entity or the United States financial system;
       (2) the appropriateness of the conduct of each activity or 
     type of investment by banking entities; and,
       (3) additional restrictions as may be necessary to address 
     risks to safety and soundness.

     SEC. 619B. CONFLICTS OF INTEREST.

       The Securities Act of 1933 (15 U.S.C. 77a et seq.) is 
     amended by inserting after section 27A the following:

     ``SEC. 27B. CONFLICTS OF INTEREST RELATING TO CERTAIN 
                   SECURITIZATIONS.

       ``(a) In General.--An underwriter, placement agent, initial 
     purchaser, or sponsor, or any affiliate or subsidiary of any 
     such entity, of an asset-backed security (as such term is 
     defined in section 3 of the Securities and Exchange Act of 
     1934 (15 U.S.C. 78c), which for the purposes of this section 
     shall include a synthetic asset-backed security), shall not, 
     during such period as the asset-backed security is 
     outstanding or such lesser period as the Commission 
     determines is appropriate, engage in any transaction that 
     would involve or result in any material conflict of interest 
     with respect to any investor in a transaction arising out of 
     such activity.
       ``(b) Rulemaking.--Not later than 180 days after the date 
     of enactment of this section, The Commission shall issue 
     rules for the purpose of implementing subsection (a) 
     including any appropriate disclosures or other measures.
       ``(c) Exception.--The prohibitions of subsection (a) shall 
     not apply to risk-mitigating hedging activities necessary to 
     conduct the underwriting, placement, initial purchase, or 
     sponsorship, provided that this subparagraph shall not 
     otherwise limit the application of section 15(G) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).''.
                                 ______
                                 
  SA 3932. Mr. DURBIN submitted an amendment intended to be proposed by 
him to the bill S. 3217, to promote the

[[Page 7697]]

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

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

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

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

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

       ``(a) Reasonable Interchange Transaction Fees for 
     Electronic Debit Transactions.--
       ``(1) Regulatory authority.--The Board shall have authority 
     to establish rules, pursuant to section 553 of title 5, 
     United States Code, regarding any interchange transaction fee 
     that an issuer or payment card network may charge with 
     respect to an electronic debit transaction.
       ``(2) Reasonable fees.--The amount of any interchange 
     transaction fee that an issuer or payment card network may 
     charge with respect to an electronic debit transaction shall 
     be reasonable and proportional to the actual cost incurred by 
     the issuer or payment card network with respect to the 
     transaction.
       ``(3) Rulemaking required.--The Board shall issue final 
     rules, not later than 9 months after the date of enactment of 
     the Consumer Financial Protection Act of 2010, to establish 
     standards for assessing whether the amount of any interchange 
     transaction fee described in paragraph (2) is reasonable and 
     proportional to the actual cost incurred by the issuer or 
     payment card network with respect to the transaction.
       ``(4) Considerations.--In issuing rules required by this 
     section, the Board shall--
       ``(A) consider the functional similarity between--
       ``(i) electronic debit transactions; and
       ``(ii) checking transactions that are required within the 
     Federal Reserve bank system to clear at par;
       ``(B) distinguish between--
       ``(i) the actual incremental cost incurred by an issuer or 
     payment card network for the role of the issuer or the 
     payment card network in the authorization, clearance, or 
     settlement of a particular electronic debit transaction, 
     which cost shall be considered under paragraph (2); and
       ``(ii) other costs incurred by an issuer or payment card 
     network which are not specific to a particular electronic 
     debit transaction, which costs shall not be considered under 
     paragraph (2); and
       ``(C) consult, as appropriate, with the Comptroller of the 
     Currency, the Board of Directors of the Federal Deposit 
     Insurance Corporation, the Director of the Office of Thrift 
     Supervision, the National Credit Union Administration Board, 
     the Administrator of the Small Business Administration, and 
     the Director of the Bureau of Consumer Financial Protection.
       ``(5) Exemption for small issuers.--This subsection shall 
     not apply to issuers that, together with affiliates, have 
     assets of less than $1,000,000,000, and the Board shall 
     exempt such issuers from rules issued under paragraph (3).
       ``(6) Effective date.--Paragraph (2) shall become effective 
     12 months after the date of enactment of the Consumer 
     Financial Protection Act of 2010.
       ``(b) Limitation on Anti-competitive Payment Card Network 
     Restrictions.--
       ``(1) No restrictions on offering discounts for use of a 
     competing payment card network.--A payment card network shall 
     not, directly or through any agent, processor, or licensed 
     member of the network, by contract, requirement, condition, 
     penalty, or otherwise, inhibit the ability of any person to 
     provide a discount or in-kind incentive for payment through 
     the use of a card or device of another payment card network.
       ``(2) No restrictions on offering discounts for use of a 
     form of payment.--A payment card network shall not, directly 
     or through any agent, processor, or licensed member of the 
     network, by contract, requirement, condition, penalty, or 
     otherwise, inhibit the ability of any person to provide a 
     discount or in-kind incentive for payment by the use of cash, 
     check, debit card, or credit card.
       ``(3) No restrictions on setting transaction minimums or 
     maximums.--A payment card network shall not, directly or 
     through any agent, processor, or licensed member of the 
     network, by contract, requirement, condition, penalty, or 
     otherwise, inhibit the ability of any person to set a minimum 
     or maximum dollar value for the acceptance by that person of 
     any form of payment.
       ``(c) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Debit card.--The term `debit card'--
       ``(A) means any card, or other payment code or device, 
     issued or approved for use through a payment card network to 
     debit an asset account for the purpose of transferring money 
     between accounts or obtaining goods or services, whether 
     authorization is based on signature, PIN, or other means;
       ``(B) includes general use prepaid cards, as that term is 
     defined in section 915(a)(2)(A) (15 U.S.C. 1693l-1(a)(2)(A)); 
     and
       ``(C) does not include paper checks.
       ``(2) Credit card.--The term `credit card' has the same 
     meaning as in section 103 of the Truth in Lending Act (15 
     U.S.C. 1602).
       ``(3) Discount.--The term `discount'--
       ``(A) means a reduction made from the price that customers 
     are informed is the regular price; and
       ``(B) does not include any means of increasing the price 
     that customers are informed is the regular price.
       ``(4) Electronic debit transaction.--The term `electronic 
     debit transaction' means a transaction in which a person uses 
     a debit card to debit an asset account.
       ``(5) Interchange transaction fee.--The term `interchange 
     transaction fee' means any fee established by a payment card 
     network that has been established for the purpose of 
     compensating an issuer or payment card network for its 
     involvement in an electronic debit transaction.
       ``(6) Issuer.--The term `issuer' means any person who 
     issues a debit card, or the agent of such person with respect 
     to such card.
       ``(7) Payment card network.--The term `payment card 
     network' means an entity that directly, or through licensed 
     members, processors, or agents, provides the proprietary 
     services, infrastructure, and software that route information 
     and data to conduct transaction authorization, clearance, and 
     settlement, and that a person uses in order to accept as a 
     form of payment a brand of debit card, credit card or other 
     device that may be used to carry out debit or credit 
     transactions.''.
                                 ______
                                 
  SA 3933. Mr. CORKER submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1291, line 15 strike ``, DECEPTIVE, OR ABUSIVE'' 
     and insert ``OR DECEPTIVE''.
       On page 1291, line 20, strike ``, deceptive, or abusive'' 
     and insert ``or deceptive''.
       On page 1292, line 1, strike ``, deceptive, or abusive'' 
     and insert ``or deceptive''.
       On page 1293, strike lines 3 through 20.
       On page 1293, line 21, strike ``(e)'' and insert ``(d)''.
                                 ______
                                 
  SA 3934. Mr. SCHUMER (for himself and Mrs. Gillibrand) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 567, lines 7 and 8, strike ``, subject to the 
     requirements of section 5(b)''.
       On page 727, after line 25, insert the following:
       (C) Prior approval required.--Notwithstanding any other 
     provision of this section, a derivatives clearing 
     organization shall submit to the Commission for prior 
     approval each proposed new rule, or amendment or 
     interpretation of an existing rule, that materially changes 
     the terms and conditions, as determined by the Commission, 
     of--
       (i) admission and continuing eligibility standards for 
     members of and participants in the derivatives clearing 
     organization, including the financial resources required for 
     a member of a derivatives clearing organization;
       (ii) management of the risks associated with discharging 
     the responsibilities of a derivatives clearing organization; 
     and
       (iii) management of events when members or participants 
     become insolvent or otherwise default on their obligations to 
     a derivatives clearing organization.
       On page 728, line 1, strike ``(C)'' and insert ``(D)''.
       On page 783, lines 5 and 6, strike ``, subject to the 
     requirements of section 5(b)''.
       On page 881, between lines 6 and 7, insert the following:
       (c) Prior Approval Required.--Notwithstanding any other 
     provision of this title or of the Securities Exchange Act of 
     1934, and for purposes of clarification, each proposed new 
     rule, or amendment or interpretation of

[[Page 7698]]

     an existing rule, of a registered clearing agency, as that 
     term is defined in section 3(a)(23) of the Securities 
     Exchange Act of 1934, shall be filed with the Securities and 
     Exchange Commission for approval in accordance with section 
     19(b) of such Act, and shall not become effective unless such 
     approval is obtained, to the extent such proposal, amendment, 
     or interpretation would change, in a manner not provided for 
     under section 19(b)(3)(A) of such Act, as determined by the 
     Commission, the terms and conditions of--
       (1) admission and continuing eligibility standards for 
     members of and participants in a registered clearing agency, 
     including the financial obligations of a member of a 
     registered clearing agency;
       (2) management of the risks associated with the discharge 
     of the responsibilities of a registered clearing agency; or
       (3) management of events when members or participants 
     become insolvent or otherwise default on their obligations to 
     a registered clearing agency.
                                 ______
                                 
  SA 3935. Mrs. GILLIBRAND submitted an amendment intended to be 
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for 
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 632, between lines 4 and 5, insert the following:
       ``(e) Applicability of Certain Requirements.--The 
     requirements set forth in subsection (c)(7) and subsection 
     (d)(2) shall only apply to entities from jurisdictions in 
     which a swap data repository is located and only if the 
     Commission determines that such swap data repository does not 
     make all data obtained by such swap data repository available 
     on terms and conditions comparable to those on which a swap 
     data repository registered with the Commission makes data 
     available.''.
       On page 632, line 5, strike ``(e)'' and insert ``(f)''.
       On page 632, line 16, strike ``(f)'' and insert ``(g)''.
       On page 633, line 17, strike ``(f)'' and insert ``(g)''.
       On page 634, line 18, strike ``(g)'' and insert ``(h)''.
       On page 634, line 24, strike ``(h)'' and insert ``(i)''.
       On page 844, between lines 2 and 3, insert the following:
       ``(6) Applicability of certain requirements.--The 
     requirements set forth in subparagraph (G) and subparagraph 
     (H)(ii) shall only apply to entities from jurisdictions in 
     which a security-based swap data repository is located and 
     only if the Commission determines that such security-based 
     swap data repository does not make all data obtained by such 
     security-based swap data repository available on terms and 
     conditions comparable to those on which a security-based swap 
     data repository registered with the Commission makes data 
     available.''.
       On page 844, line 3, strike ``(6)'' and insert ``(7)''.
       On page 844, line 18, strike ``(7)'' and insert ``(8)''.
       On page 847, line 1, strike ``(7)'' and insert ``(8)''.
       On page 848, line 6, strike ``(8)'' and insert ``(9)''.
       On page 848, line 13, strike ``(9)'' and insert ``(10)''.
                                 ______
                                 
  SA 3936. Mrs. GILLIBRAND submitted an amendment intended to be 
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for 
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 541, strike line 24 and insert the following:

     as a major swap participant.
       ``(E) Consultation; coordination.--In making a 
     determination under subparagraph (B), the Commission shall 
     consult with the members of the Council, and shall seek to 
     establish standards consistent with standards established by 
     the Securities and Exchange Commission, in determining 
     substantial positions for security-based major swap 
     participants.''.
       On page 767, between lines 10 and 11, insert the following:
       ``(E) Consultation; coordination.--In making a 
     determination under subparagraph (B), the Commission shall 
     consult with the members of the Council, and shall seek to 
     establish standards consistent with standards established by 
     the Commodity Futures Trading Commission, in determining 
     substantial positions for major swap participants.
                                 ______
                                 
  SA 3937. Mrs. LANDRIEU (for herself, Mr. Chambliss, and Mr. Isakson) 
submitted an amendment intended to be proposed to amendment SA 3739 
proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to 
the bill S. 3217, to promote the financial stability of the United 
States by improving accountability and transparency in the financial 
system, to end ``too big to fail'', to protect the American taxpayer by 
ending bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 1273, line 6, insert ``significantly'' after 
     ``extended''.

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