[House Report 107-798]
[From the U.S. Government Publishing Office]



                                                 Union Calendar No. 499
107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-798
======================================================================
 
 REPORT ON THE ACTIVITY OF THE COMMITTEE ON FINANCIAL SERVICES FOR THE 
                             107TH CONGRESS

                                _______
                                

January 2, 2003.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Oxley, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

    Clause 1(d) of rule XI of the Rules of the House of 
Representatives requires each standing Committee, not later 
than January 2 of each odd-numbered year, submit to the House a 
report on the activities of that committee, including separate 
sections summarizing the legislative and oversight activities 
of that committee during that Congress.

                                CONTENTS

                                                                   Page
Letter of Transmittal............................................     2
Jurisdiction.....................................................     3
Rules of the Committee...........................................     7
Membership and Organization......................................    19
Legislative and Oversight Activities.............................    27
  Full Committee.................................................    29
  Subcommittee on Capital Markets, Insurance, and Government 
    Sponsored Enterprises........................................    41
  Subcommittee on Domestic Monetary Policy, Technology, and 
    Economic Growth..............................................    53
  Subcommittee on Financial Institutions and Consumer Credit.....    59
  Subcommittee on Housing and Community Opportunity..............    69
  Subcommittee on International Monetary Policy and Trade........    83
  Subcommittee on Oversight and Investigations...................    93
Oversight Plan for the 107th Congress............................   103
Implementation of the Oversight Plan for the 107th Congress......   119
Appendix I--Measures Reported and Public Laws....................   131
Appendix II--Committee Publications..............................   133

                         LETTER OF TRANSMITTAL

                              ----------                              

                          House of Representatives,
                           Committee on Financial Services,
                                   Washington, DC, January 2, 2003.
Hon. Jeff Trandahl
Clerk, United States House of Representatives, Washington, D.C.
    Dear Mr. Trandahl: Pursuant to clause 1(d) of rule XI of 
the Rules of the House of Representatives for the 107th 
Congress, I present herewith a report on the activity of the 
Committee on Financial Services for the 107th Congress, 
including the Committee's review and study of legislation 
within its jurisdiction, and the oversight activities 
undertaken by the Committee.
        Sincerely,
                                  Michael G. Oxley,
                                                  Chairman.
                              JURISDICTION

                           Rules of the House

    Clause 1(g) of rule X of the Rules of the House of 
Representatives sets forth the jurisdiction of the Committee on 
Financial Services as follows--
          (1) Banks and banking, including deposit insurance 
        and Federal monetary policy.
          (2) Economic stabilization, defense production, 
        renegotiation, and control of the price of commodities, 
        rents, and services.
          (3) Financial aid to commerce and industry (other 
        than transportation).
          (4) Insurance generally.
          (5) International finance.
          (6) International financial and monetary 
        organization.
          (7) Money and credit, including currency and the 
        issuance of notes and redemption thereof; gold and 
        silver, including the coinage thereof; valuation and 
        revaluation of the dollar.
          (8) Public and private housing.
          (9) Securities and exchanges.
          (10) Urban development.

                      Memorandum of Understanding

    The Committee on Financial Services was established when 
the House agreed to H. Res. 5, establishing the Rules of the 
House of Representatives for the 107th Congress, on January 3, 
2001. The jurisdiction of the Committee on Financial Services 
consists of the jurisdiction granted the Committee on Banking 
and Financial Services in the 106th Congress, along with 
jurisdiction over insurance generally and securities and 
exchanges, matters which had previously been within the 
jurisdiction of the Committee on Commerce in the 106th and 
previous congresses. On January 20, 2001,\1\ the Speaker 
inserted the following memorandum of understanding between the 
chairmen of the Committee on Financial Services and the 
Committee on Energy and Commerce further clarifying these 
jurisdictional changes--
---------------------------------------------------------------------------
    \1\ The version of the memorandum printed in the January 20, 2001 
Congressional Record contained a typographic error. A corrected version 
of the memorandum, which appears below, was printed in the January 30, 
2001 edition of the Congressional Record.

                                   January 20, 2001
    On January 3, 2001, the House agreed to H. Res. 5, 
establishing the rules of the House for the 107th Congress. 
Section 2(d) of H. Res. 5 contained a provision renaming the 
Banking Committee as the Financial Services Committee and 
transferring jurisdiction over securities and exchanges and 
insurance from the Commerce Committee to the Financial Services 
Committee. The Commerce Committee was also renamed the Energy 
and Commerce Committee.
    The Committee on Energy and Commerce and the Committee on 
Financial Services jointly acknowledge as the authoritative 
source of legislative history concerning section 2(d) of H. 
Res. 5 the following statement of Rules Committee Chairman 
David Dreier during floor consideration of the resolution:
    ``In what is obviously one of our most significant changes, 
Mr. Speaker, section 2(d) of the resolution establishes a new 
Committee on Financial Services, which will have jurisdiction 
over the following matters:
    ``(1) banks and banking, including deposit insurance and 
Federal monetary policy;
    ``(2) economic stabilization, defense production, 
renegotiation, and control of the price of commodities, rents, 
and services;
    ``(3) financial aid to commerce and industry (other than 
transportation);
    ``(4) insurance generally;
    ``(5) international finance;
    ``(6) international financial and monetary organizations;
    ``(7) money and credit, including currency and the issuance 
of notes and redemption thereof; gold and silver, including the 
coinage thereof; valuation and revaluation of the dollar;
    ``(8) public and private housing;
    ``(9) securities and exchanges; and
    ``(10) urban development.
    ``Mr. Speaker, jurisdiction over matters relating to 
securities and exchanges is transferred in its entirety from 
the Committee on Commerce, which will be redesignated under 
this rules change to the Committee on Energy and Commerce, and 
it will now be transferred from the new Committee on Energy and 
Commerce to this new Committee on Financial Services. This 
transfer is not intended to convey to the Committee on 
Financial Services jurisdiction currently in the Committee on 
Agriculture regarding commodity exchanges.
    ``Furthermore, this change is not intended to convey to the 
Committee on Financial Services jurisdiction over matters 
relating to regulation and SEC oversight of multi-State public 
utility holding companies and their subsidiaries, which remain 
essentially matters of energy policy.
    ``Mr. Speaker, as a result of the transfer of jurisdiction 
over matters relating to securities and exchanges, redundant 
jurisdiction over matters relating to bank capital markets 
activities generally and depository institutions securities 
activities, which were formerly matters in the jurisdiction of 
the Committee on Banking and Financial Services, have been 
removed from clause 1 of rule X.
    ``Matters relating to insurance generally, formerly within 
the jurisdiction of the redesignated Committee on Energy and 
Commerce, are transferred to the jurisdiction of the Committee 
on Financial Services.
    ``The transfer of any jurisdiction to the Committee on 
Financial Services is not intended to limit the Committee on 
Energy and Commerce's jurisdiction over consumer affairs and 
consumer protection matters.
    ``Likewise, existing health insurance jurisdiction is not 
transferred as a result of this change.
    ``Furthermore, the existing jurisdictions of other 
committees with respect to matters relating to crop insurance, 
Workers' Compensation, insurance anti-trust matters, disaster 
insurance, veterans' life and health insurance, and national 
social security policy are not affected by this change.
    ``Finally, Mr. Speaker, the changes and legislative history 
involving the Committee on Financial Services and the Committee 
on Energy and Commerce do not preclude future memorandum of 
understanding between the chairmen of these respective 
committees.''
    By this memorandum the two committees undertake to record 
their further mutual understandings in this matter, which will 
supplement the statement quoted above.
    It is agreed that the Committee on Energy and Commerce will 
retain jurisdiction over bills dealing broadly with electronic 
commerce, including electronic communications networks (ECNs). 
However, a bill amending the securities laws to address the 
specific type of electronic securities transaction currently 
governed by a special SEC regulation as an Alternative Trading 
System (ATS) would be referred to the Committee on Financial 
Services.
    While it is agreed that the jurisdiction of the Committee 
on Financial Services over securities and exchanges includes 
anti-fraud authorities under the securities laws, the Committee 
on Energy and Commerce will retain jurisdiction only over the 
issue of setting of accounting standards by the Financial 
Accounting Standards Board.

                             W.J. ``Billy'' Tauzin,
                Chairman, Committee on Energy and Commerce,
                                  Michael G. Oxley,
                 Chairman, Committee on Financial Services.

   RULES OF THE COMMITTEE ON FINANCIAL SERVICES FOR THE ONE HUNDRED 
                            SEVENTH CONGRESS

                                 rule 1

                           general provisions

    (a) The rules of the House are the rules of the Committee 
on Financial Services (hereinafter in these rules referred to 
as the ``Committee'') and its subcommittees so far as 
applicable, except that a motion to recess from day to day, and 
a motion to dispense with the first reading (in full) of a bill 
or resolution, if printed copies are available, are privileged 
motions in the Committee and shall be considered without 
debate. A proposed investigative or oversight report shall be 
considered as read if it has been available to the members of 
the Committee for at least 24 hours (excluding Saturdays, 
Sundays, or legal holidays except when the House is in session 
on such day).
    (b) Each subcommittee is a part of the Committee, and is 
subject to the authority and direction of the Committee and to 
its rules so far as applicable.
    (c) The provisions of clause 2 of rule XI of the Rules of 
the House are incorporated by reference as the rules of the 
Committee to the extent applicable.

                                 rule 2

                                meetings

                          Calling of Meetings

    (a)(1) The Committee shall regularly meet on the first 
Tuesday of each month when the House is in session.
          (2) A regular meeting of the Committee may be 
        dispensed with if, in the judgment of the Chairman of 
        the Committee (hereinafter in these rules referred to 
        as the ``Chair''), there is no need for the meeting.
          (3) Additional regular meetings and hearings of the 
        Committee may be called by the Chair, in accordance 
        with clause 2(g)(3) of rule XI of the rules of the 
        House.
          (4) Special meetings shall be called and convened by 
        the Chair as provided in clause 2(c)(2) of rule XI of 
        the Rules of the House.

                          Notice for Meetings.

    (b)(1) The Chair shall notify each member of the Committee 
of the agenda of each regular meeting of the Committee at least 
two calendar days before the time of the meeting.
          (2) The Chair shall provide to each member of the 
        Committee, at least two calendar days before the time 
        of each regular meeting for each measure or matter on 
        the agenda a copy of--
                  (A) the measure or materials relating to the 
                matter in question; and
                  (B) an explanation of the measure or matter 
                to be considered, which, in the case of an 
                explanation of a bill, resolution, or similar 
                measure, shall include a summary of the major 
                provisions of the legislation, an explanation 
                of the relationship of the measure to present 
                law, and a summary of the need for the 
                legislation.
          (3) The agenda and materials required under this 
        subsection shall be provided to each member of the 
        Committee at least three calendar days before the time 
        of the meeting where the measure or matter to be 
        considered was not approved for full Committee 
        consideration by a subcommittee of jurisdiction.
          (4) The provisions of this subsection may be waived 
        by a two-thirds vote of the Committee, or by the Chair 
        with the concurrence of the ranking minority member.

                                 rule 3

                     meeting and hearing procedures

                               In General

    (a)(1) Meetings and hearings of the Committee shall be 
called to order and presided over by the Chair or, in the 
Chair's absence, by the member designated by the Chair as the 
Vice Chair of the Committee, or by the ranking majority member 
of the Committee present as Acting Chair.
          (2) Meetings and hearings of the Committee shall be 
        open to the public unless closed in accordance with 
        clause 2(g) of rule XI of the Rules of the House.
          (3) Any meeting or hearing of the Committee that is 
        open to the public shall be open to coverage by 
        television broadcast, radio broadcast, and still 
        photography in accordance with the provisions of clause 
        4 of rule XI of the Rules of the House (which are 
        incorporated by reference as part of these rules). 
        Operation and use of any Committee operated broadcast 
        system shall be fair and nonpartisan and in accordance 
        with clause 4(b) of rule XI and all other applicable 
        rules of the Committee and the House.
          (4) Opening statements by members at the beginning of 
        any hearing or meeting of the Committee shall be 
        limited to 5 minutes each for the Chair or ranking 
        minority member, or their respective designee, and 3 
        minutes each for all other members.
          (5) No person, other than a Member of Congress, 
        Committee staff, or an employee of a Member when that 
        Member has an amendment under consideration, may stand 
        in or be seated at the rostrum area of the Committee 
        rooms unless the Chair determines otherwise.

                                 Quorum

    (b)(1) For the purpose of taking testimony and receiving 
evidence, two members of the Committee shall constitute a 
quorum.
          (2) A majority of the members of the Committee shall 
        constitute a quorum for the purposes of reporting any 
        measure or matter, of authorizing a subpoena, of 
        closing a meeting or hearing pursuant to clause 2(g) of 
        rule XI of the rules of the House (except as provided 
        in clause 2(g)(2)(A) and (B)) or of releasing executive 
        session material pursuant to clause 2(k)(7) of rule XI 
        of the rules of the House.
          (3) For the purpose of taking any action other than 
        those specified in paragraph (2) one-third of the 
        members of the Committee shall constitute a quorum.

                                 Voting

    (c)(1) No vote may be conducted on any measure or matter 
pending before the Committee unless the requisite number of 
members of the Committee is actually present for such purpose.
          (2) A record vote of the Committee shall be provided 
        on any question before the Committee upon the request 
        of one-fifth of the members present.
          (3) No vote by any member of the Committee on any 
        measure or matter may be cast by proxy.
          (4) In accordance with clause 2(e)(1)(B) of rule XI, 
        a record of the vote of each member of the Committee on 
        each record vote on any measure or matter before the 
        Committee shall be available for public inspection at 
        the offices of the Committee, and, with respect to any 
        record vote on any motion to report or on any 
        amendment, shall be included in the report of the 
        Committee showing the total number of votes cast for 
        and against and the names of those members voting for 
        and against.

                           Hearing Procedures

    (d)(1)(A) The Chair shall make public announcement of the 
date, place, and subject matter of any committee hearing at 
least one week before the commencement of the hearing, unless 
the Chair, with the concurrence of the ranking minority member, 
or the Committee by majority vote with a quorum present for the 
transaction of business, determines there is good cause to 
begin the hearing sooner, in which case the Chair shall make 
the announcement at the earliest possible date.
                  (B) Not less than three days before the 
                commencement of a hearing announced under this 
                paragraph, the Chair shall provide to the 
                members of the Committee a concise summary of 
                the subject of the hearing, or, in the case of 
                a hearing on a measure or matter, a copy of the 
                measure or materials relating to the matter in 
                question and a concise explanation of the 
                measure or matter to be considered.
          (2) To the greatest extent practicable--
                  (A) each witness who is to appear before the 
                Committee shall file with the Committee two 
                business days in advance of the appearance 
                sufficient copies (including a copy in 
                electronic form), as determined by the Chair, 
                of a written statement of proposed testimony 
                and shall limit the oral presentation to the 
                Committee to brief summary thereof; and
                  (B) each witness appearing in a non-
                governmental capacity shall include with the 
                written statement of proposed testimony a 
                curriculum vitae and a disclosure of the amount 
                and source (by agency and program) of any 
                Federal grant (or subgrant thereof) or contract 
                (or subcontract thereof) received during the 
                current fiscal year or either of the two 
                preceding fiscal years.
          (3) The requirements of paragraph (2)(A) may be 
        modified or waived by the Chair when the Chair 
        determines it to be in the best interest of the 
        Committee.
          (4) The five-minute rule shall be observed in the 
        interrogation of witnesses before the Committee until 
        each member of the Committee has had an opportunity to 
        question the witnesses. No member shall be recognized 
        for a second period of 5 minutes to interrogate 
        witnesses until each member of the Committee present 
        has been recognized once for that purpose.
          (5) Whenever any hearing is conducted by the 
        Committee on any measure or matter, the minority party 
        members of the Committee shall be entitled, upon the 
        request of a majority of them before the completion of 
        the hearing, to call witnesses with respect to that 
        measure or matter during at least one day of hearing 
        thereon.

                          Subpoenas and Oaths

    (e)(1) Pursuant to clause 2(m) of rule XI of the Rules of 
the House, a subpoena may be authorized and issued by the 
Committee or a subcommittee in the conduct of any investigation 
or series of investigations or activities, only when authorized 
by a majority of the members voting, a majority being present, 
or pursuant to paragraph (2).
          (2) The Chair, with the concurrence of the ranking 
        minority member, may authorize and issue subpoenas 
        under such clause during any period for which the House 
        has adjourned for a period in excess of 3 days when, in 
        the opinion of the Chair, authorization and issuance of 
        the subpoena is necessary to obtain the material or 
        testimony set forth in the subpoena. The Chair shall 
        report to the members of the Committee on the 
        authorization and issuance of a subpoena during the 
        recess period as soon as practicable, but in no event 
        later than one week after service of such subpoena.
          (3) Authorized subpoenas shall be signed by the Chair 
        or by any member designated by the Committee, and may 
        be served by any person designated by the Chair or such 
        member.
          (4) The Chair, or any member of the Committee 
        designated by the Chair, may administer oaths to 
        witnesses before the Committee.

                           Special Procedures

    (f)(1)(A) Commemorative medals and coins.--It shall not be 
in order for the Subcommittee on Domestic Monetary Policy, 
Technology, and Economic Growth to hold a hearing on any 
commemorative medal or commemorative coin legislation unless 
the legislation is cosponsored by at least two-thirds of the 
members of the House and has been recommended by the U.S. 
Mint's Citizens Commemorative Coin Advisory Committee in the 
case of a commemorative coin.
                  (B) It shall not be in order for the 
                subcommittee to approve a bill or measure 
                authorizing commemorative coins for 
                consideration by the full Committee which does 
                not conform with the mintage restrictions 
                established by section 5112 of title 31, United 
                States Code.
                  (C) In considering legislation authorizing 
                Congressional gold medals, the subcommittee 
                shall apply the following standards--
                          (i) the recipient shall be a natural 
                        person;
                          (ii) the recipient shall have 
                        performed an achievement that has an 
                        impact on American history and culture 
                        that is likely to be recognized as a 
                        major achievement in the recipient's 
                        field long after the achievement;
                          (iii) the recipient shall not have 
                        received a medal previously for the 
                        same or substantially the same 
                        achievement;
                          (iv) the recipient shall be living 
                        or, if deceased, shall have been 
                        deceased for not less than 5 years and 
                        not more than 25 years;
                          (v) the achievements were performed 
                        in the recipient's field of endeavor, 
                        and represent either a lifetime of 
                        continuous superior achievements or a 
                        single achievement so significant that 
                        the recipient is recognized and 
                        acclaimed by others in the same field, 
                        as evidenced by the recipient having 
                        received the highest honors in the 
                        field.
          (2) Testimony of certain officials.--
                  (A) Notwithstanding subsection (a)(4), when 
                the Chair announces a hearing of the Committee 
                for the purpose of receiving--
                          (i) testimony from the Chairman of 
                        the Federal Reserve Board pursuant to 
                        section 2B of the Federal Reserve Act 
                        (12 U.S.C. 221 et seq.), or
                          (ii) testimony from the Chairman of 
                        the Federal Reserve Board or a member 
                        of the President's cabinet at the 
                        invitation of the Chair,the Chair may, 
                        in consultation with the ranking 
                        minority member, limit the number and 
                        duration of opening statements to be 
                        delivered at such hearing. The 
                        limitation shall be included in the 
                        announcement made pursuant to 
                        subsection (d)(1)(A), and shall provide 
                        that the opening statements of all 
                        members of the Committee shall be made 
                        a part of the hearing record.

                                 rule 4

              procedures for reporting measures or matters

    (a) No measure or matter shall be reported from the 
Committee unless a majority of the Committee is actually 
present.
    (b) The Chair of the Committee shall report or cause to be 
reported promptly to the House any measure approved by the 
Committee and take necessary steps to bring a matter to a vote.
    (c) The report of the Committee on a measure which has been 
approved by the Committee shall be filed within 7 calendar days 
(exclusive of days on which the House is not in session) after 
the day on which there has been filed with the clerk of the 
Committee a written request, signed by a majority of the 
members of the Committee, for the reporting of that measure 
pursuant to the provisions of clause 2(b)(2) of rule XIII of 
the Rules of the House.
    (d) All reports printed by the Committee pursuant to a 
legislative study or investigation and not approved by a 
majority vote of the Committee shall contain the following 
disclaimer on the cover of such report: ``This report has not 
been officially adopted by the Committee on Financial Services 
and may not necessarily reflect the views of its Members.''

                                 rule 5

                             subcommittees

          Establishment and Responsibilities of Subcommittees

    (a)(1) There shall be 6 subcommittees of the Committee as 
follows:
                  (A) Subcommittee on capital markets, 
                insurance, and government sponsored 
                enterprises.--The jurisdiction of the 
                Subcommittee on Capital Markets, Insurance, and 
                Government Sponsored Enterprises includes--
                          (i) securities, exchanges, and 
                        finance;
                          (ii) capital markets activities;
                          (iii) activities involving futures, 
                        forwards, options, and other types of 
                        derivative instruments;
                          (iv) secondary market organizations 
                        for home mortgages including the 
                        Federal National Mortgage Association, 
                        the Federal Home Loan Mortgage 
                        Corporation, and the Federal 
                        Agricultural Mortgage Corporation;
                          (v) the Office of Federal Housing 
                        Enterprise Oversight;
                          (vi) the Federal Home Loan Banks; and
                          (vii) insurance generally.
                  (B) Subcommittee on domestic monetary policy, 
                technology, and economic growth.--The 
                jurisdiction of the Subcommittee on Domestic 
                Monetary Policy, Technology, and Economic 
                Growth includes--
                          (i) financial aid to all sectors and 
                        elements within the economy;
                          (ii) economic growth and 
                        stabilization;
                          (iii) defense production matters as 
                        contained in the Defense Production Act 
                        of 1950, as amended;
                          (iv) domestic monetary policy, and 
                        agencies which directly or indirectly 
                        affect domestic monetary policy, 
                        including the effect of such policy and 
                        other financial actions on interest 
                        rates, the allocation of credit, and 
                        the structure and functioning of 
                        domestic financial institutions;
                          (v) coins, coinage, currency, and 
                        medals, including commemorative coins 
                        and medals, proof and mint sets and 
                        other special coins, the Coinage Act of 
                        1965, gold and silver, including the 
                        coinage thereof (but not the par value 
                        of gold), gold medals, counterfeiting, 
                        currency denominations and design, the 
                        distribution of coins, and the 
                        operations of the Bureau of the Mint 
                        and the Bureau of Engraving and 
                        Printing; and
                          (vi) development of new or 
                        alternative forms of currency.
                  (C) Subcommittee on financial institutions 
                and consumer credit.--The jurisdiction of the 
                Subcommittee on Financial Institutions and 
                Consumer Credit includes--
                          (i) all agencies, including the 
                        Office of the Comptroller of the 
                        Currency, the Federal Deposit Insurance 
                        Corporation, the Board of Governors of 
                        the Federal Reserve System and the 
                        Federal Reserve System, the Office of 
                        Thrift Supervision, and the National 
                        Credit Union Administration, which 
                        directly or indirectly exercise 
                        supervisory or regulatory authority in 
                        connection with, or provide deposit 
                        insurance for, financial institutions, 
                        and the establishment of interest rate 
                        ceilings on deposits;
                          (ii) the chartering, branching, 
                        merger, acquisition, consolidation, or 
                        conversion of financial institutions;
                          (iii) consumer credit, including the 
                        provision of consumer credit by 
                        insurance companies, and further 
                        including those matters in the Consumer 
                        Credit Protection Act dealing with 
                        truth in lending, extortionate credit 
                        transactions, restrictions on 
                        garnishments, fair credit reporting and 
                        the use of credit information by credit 
                        bureaus and credit providers, equal 
                        credit opportunity, debt collection 
                        practices, and electronic funds 
                        transfers;
                          (iv) creditor remedies and debtor 
                        defenses, Federal aspects of the 
                        Uniform Consumer Credit Code, credit 
                        and debit cards, and the preemption of 
                        State usury laws;
                          (v) consumer access to financial 
                        services, including the Home Mortgage 
                        Disclosure Act and the Community 
                        Reinvestment Act;
                          (vi) the terms and rules of 
                        disclosure of financial services, 
                        including the advertisement, promotion 
                        and pricing of financial services, and 
                        availability of government check 
                        cashing services;
                          (vii) deposit insurance; and
                          (viii) consumer access to savings 
                        accounts and checking accounts in 
                        financial institutions, including 
                        lifeline banking and other consumer 
                        accounts.
                  (D) Subcommittee on housing and community 
                opportunity.--The jurisdiction of the 
                Subcommittee on Housing and Community 
                Opportunity includes--
                          (i) housing (except programs 
                        administered by the Department of 
                        Veterans Affairs), including mortgage 
                        and loan insurance pursuant to the 
                        National Housing Act; rural housing; 
                        housing and homeless assistance 
                        programs; all activities of the 
                        Government National Mortgage 
                        Association; private mortgage 
                        insurance; housing construction and 
                        design and safety standards; housing-
                        related energy conservation; housing 
                        research and demonstration programs; 
                        financial and technical assistance for 
                        nonprofit housing sponsors; housing 
                        counseling and technical assistance; 
                        regulation of the housing industry 
                        (including landlord/tenant relations); 
                        and real estate lending including 
                        regulation of settlement procedures;
                          (ii) community development and 
                        community and neighborhood planning, 
                        training and research; national urban 
                        growth policies; urban/rural research 
                        and technologies; and regulation of 
                        interstate land sales;
                          (iii) government sponsored insurance 
                        programs, including those offering 
                        protection against crime, fire, flood 
                        (and related land use controls), 
                        earthquake and other natural hazards; 
                        and
                          (iv) the qualifications for and 
                        designation of Empowerment Zones and 
                        Enterprise Communities (other than 
                        matters relating to tax benefits).
                  (E) Subcommittee on international monetary 
                policy and trade.--The jurisdiction of the 
                Subcommittee on International Monetary Policy 
                and Trade includes--
                          (i) multilateral development lending 
                        institutions, including activities of 
                        the National Advisory Council on 
                        International Monetary and Financial 
                        Policies as related thereto, and 
                        monetary and financial developments as 
                        they relate to the activities and 
                        objectives of such institutions;
                          (ii) international trade, including 
                        but not limited to the activities of 
                        the Export-Import Bank;
                          (iii) the International Monetary 
                        Fund, its permanent and temporary 
                        agencies, and all matters related 
                        thereto; and
                          (iv) international investment 
                        policies, both as they relate to United 
                        States investments for trade purposes 
                        by citizens of the United States and 
                        investments made by all foreign 
                        entities in the United States;
                  (F) Subcommittee on oversight and 
                investigations.--The jurisdiction of the 
                Subcommittee on Oversight and Investigations 
                includes--
                          (i) the oversight of all agencies, 
                        departments, programs, and matters 
                        within the jurisdiction of the 
                        Committee, including the development of 
                        recommendations with regard to the 
                        necessity or desirability of enacting, 
                        changing, or repealing any legislation 
                        within the jurisdiction of the 
                        Committee, and for conducting 
                        investigations within such 
                        jurisdiction; and
                          (ii) research and analysis regarding 
                        matters within the jurisdiction of the 
                        Committee, including the impact or 
                        probable impact of tax policies 
                        affecting matters within the 
                        jurisdiction of the Committee.
                  (2) In addition, each such subcommittee shall 
                have specific responsibility for such other 
                measures or matters as the Chair refers to it.
                  (3) Each subcommittee of the Committee shall 
                review and study, on a continuing basis, the 
                application, administration, execution, and 
                effectiveness of those laws, or parts of laws, 
                the subject matter of which is within its 
                general responsibility.

           Referral of Measures and Matters to Subcommittees

    (b)(1)The Chair shall regularly refer to one or more 
subcommittees such measures and matters as the Chair deems 
appropriate given its jurisdiction and responsibilities. In 
making such a referral, the Chair may designate a subcommittee 
of primary jurisdiction and subcommittees of additional or 
sequential jurisdiction.
          (2) All other measures or matters shall be subject to 
        consideration by the full Committee.
          (3) In referring any measure or matter to a 
        subcommittee, the Chair may specify a date by which the 
        subcommittee shall report thereon to the Committee.
          (4) The Committee by motion may discharge a 
        subcommittee from consideration of any measure or 
        matter referred to a subcommittee of the Committee.

                      Composition of Subcommittees

    (c)(1) Members shall be elected to each subcommittee and to 
the positions of Chair and ranking minority member thereof, in 
accordance with the rules of the respective party caucuses. The 
Chair of the Committee shall designate a member of the majority 
party on each subcommittee as its vice chair.
          (2) The Chair and ranking minority member of the 
        Committee shall be ex officio members with voting 
        privileges of each subcommittee of which they are not 
        assigned as members and may be counted for purposes of 
        establishing a quorum in such subcommittees.
          (3) The subcommittees shall be comprised as follows:
                  (A) The Subcommittee on Capital Markets, 
                Insurance, and Government Sponsored Enterprises 
                shall be comprised of 47 members, 25 elected by 
                the majority caucus and 22 elected by the 
                minority caucus.
                  (B) The Subcommittee on Domestic Monetary 
                Policy, Technology, and Economic Growth shall 
                be comprised of 26 members, 14 elected by the 
                majority caucus and 12 elected by the minority 
                caucus.
                  (C) The Subcommittee on Financial 
                Institutions and Commercial Credit shall be 
                comprised of 47 members, 25 elected by the 
                majority caucus and 22 elected by the minority 
                caucus.
                  (D) The Subcommittee on Housing and Community 
                Opportunity shall be comprised of 26 members, 
                14 elected by the majority caucus and 12 
                elected by the minority caucus.
                  (E) The Subcommittee on International 
                Monetary Policy and Trade shall be comprised of 
                26 members, 14 elected by the majority caucus 
                and 12 elected by the minority caucus.
                  (F) The Subcommittee on Oversight and 
                Investigations shall be comprised of 20 
                members, 11 elected by the majority caucus and 
                9 elected by the minority caucus.

                   Subcommittee Meetings and Hearings

    (d)(1) Each subcommittee of the Committee is authorized to 
meet, hold hearings, receive testimony, mark up legislation, 
and report to the full Committee on any measure or matter 
referred to it, consistent with subsection (a).
          (2) No subcommittee of the Committee may meet or hold 
        a hearing at the same time as a meeting or hearing of 
        the Committee.
          (3) The Chair of each subcommittee shall set hearing 
        and meeting dates only with the approval of the Chair 
        with a view toward assuring the availability of meeting 
        rooms and avoiding simultaneous scheduling of Committee 
        and subcommittee meetings or hearings.

                          Effect of a Vacancy

    (e) Any vacancy in the membership of a subcommittee shall 
not affect the power of the remaining members to execute the 
functions of the subcommittee as long as the required quorum is 
present.

                                Records

    (f) Each subcommittee of the Committee shall provide the 
full Committee with copies of such records of votes taken in 
the subcommittee and such other records with respect to the 
subcommittee as the Chair deems necessary for the Committee to 
comply with all rules and regulations of the House.

                                 rule 6

                                 staff

                               In General

    (a)(1) Except as provided in paragraph (2), the 
professional and other staff of the Committee shall be 
appointed, and may be removed by the Chair, and shall work 
under the general supervision and direction of the Chair.
          (2) All professional and other staff provided to the 
        minority party members of the Committee shall be 
        appointed, and may be removed, by the ranking minority 
        member of the Committee, and shall work under the 
        general supervision and direction of such member.
          (3) It is intended that the skills and experience of 
        all members of the Committee staff be available to all 
        Members of the Committee.

                           Subcommittee Staff

    (b) From funds made available for the appointment of staff, 
the Chair of the Committee shall, pursuant to clause 6(d) of 
rule X of the Rules of the House, ensure that sufficient staff 
is made available so that each subcommittee can carry out its 
responsibilities under the rules of the Committee and that the 
minority party is treated fairly in the appointment of such 
staff.

                         Compensation of Staff

    (c)(1) Except as provided in paragraph (2), the Chair shall 
fix the compensation of all professional and other staff of the 
Committee.
          (2) The ranking minority Member shall fix the 
        compensation of all professional and other staff 
        provided to the minority party members of the 
        Committee.

                                 rule 7

                           budget and travel

                                 Budget

    (a)(1) The Chair, in consultation with other members of the 
Committee, shall prepare for each Congress a budget providing 
amounts for staff, necessary travel, investigation, and other 
expenses of the Committee and its subcommittees.
          (2) From the amount provided to the Committee in the 
        primary expense resolution adopted by the House of 
        Representatives, the Chair, after consultation with the 
        ranking minority Member, shall designate an amount to 
        be under the direction of the ranking minority Member 
        for the compensation of the minority staff, travel 
        expenses of minority members and staff, and minority 
        office expenses. All expenses of minority Members and 
        staff shall be paid for out of the amount so set aside.

                                 Travel

    (b)(1) The Chair may authorize travel for any member and 
any staff member of the Committee in connection with activities 
or subject matters under the general jurisdiction of the 
Committee. Before such authorization is granted, there shall be 
submitted to the Chair in writing the following:
                  (A) The purpose of the travel.
                  (B) The dates during which the travel is to 
                occur.
                  (C) The names of the States or countries to 
                be visited and the length of time to be spent 
                in each.
                  (D)The names of members and staff of the 
                Committee for whom the authorization is sought.
          (2) Members and staff of the Committee shall make a 
        written report to the Chair on any travel they have 
        conducted under this subsection, including a 
        description of their itinerary, expenses, and 
        activities, and of pertinent information gained as a 
        result of such travel.
          (3) Members and staff of the Committee performing 
        authorized travel on official business shall be 
        governed by applicable laws, resolutions, and 
        regulations of the House and of the Committee on House 
        Administration.

                                 rule 8

                        committee administration

                                Records

    (a)(1) There shall be a transcript made of each regular 
meeting and hearing of the Committee, and the transcript may be 
printed if the Chair decides it is appropriate or if a majority 
of the members of the Committee requests such printing. Any 
such transcripts shall be a substantially verbatim account of 
remarks actually made during the proceedings, subject only to 
technical, grammatical, and typographical corrections 
authorized by the person making the remarks. Nothing in this 
paragraph shall be construed to require that all such 
transcripts be subject to correction and publication.
          (2) The Committee shall keep a record of all actions 
        of the Committee and of its subcommittees. The record 
        shall contain all information required by clause 
        2(e)(1) of rule XI of the Rules of the House and shall 
        be available for public inspection at reasonable times 
        in the offices of the Committee.
          (3) All Committee hearings, records, data, charts, 
        and files shall be kept separate and distinct from the 
        congressional office records of the Chair, shall be the 
        property of the House, and all Members of the House 
        shall have access thereto as provided in clause 2(e)(2) 
        of rule XI of the Rules of the House.
          (4) The records of the Committee at the National 
        Archives and Records Administration shall be made 
        available for public use in accordance with rule VII of 
        the Rules of the House of Representatives. The Chair 
        shall notify the ranking minority member of any 
        decision, pursuant to clause 3(b)(3) or clause 4(b) of 
        the rule, to withhold a record otherwise available, and 
        the matter shall be presented to the Committee for a 
        determination on written request of any member of the 
        Committee.

                 Committee Publications on the Internet

    (b) To the maximum extent feasible, the Committee shall 
make its publications available in electronic form.
   MEMBERSHIP AND ORGANIZATION OF THE COMMITTEE ON FINANCIAL SERVICES

                      ONE HUNDRED SEVENTH CONGRESS

                            (Ratio: 37-32-1)

                    COMMITTEE ON FINANCIAL SERVICES

                    MICHAEL G. OXLEY, Ohio, Chairman

JAMES A. LEACH, Iowa                 JOHN J. LAFALCE, New York
MARGE ROUKEMA, New Jersey            BARNEY FRANK, Massachusetts
  Vice Chair                         PAUL E. KANJORSKI, Pennsylvania
DOUG BEREUTER, Nebraska      MAXINE WATERS, California
RICHARD H. BAKER, Louisiana  CAROLYN B. MALONEY, New York
SPENCER BACHUS, Alabama              LUIS V. GUTIERREZ, Illinois
MICHAEL N. CASTLE, Deleware          NYDIA M. VELAZQUEZ, New York
PETER T. KING, New York              MELVIN L. WATT, North Carolina
EDWARD R. ROYCE, California          GARY L. ACKERMAN, New York
FRANK D. LUCAS, Oklahoma             KEN BENTSEN, Texas
ROBERT W. NEY, Ohio                  JAMES H. MALONEY, Connecticut
BOB BARR, Georgia                    DARLENE HOOLEY, Oregon
SUE W. KELLY, New York               JULIA CARSON, Indiana
RON PAUL, Texas              BRAD SHERMAN, California
PAUL E. GILLMOR, Ohio                MAX SANDLIN, Texas
CHRISTOPHER COX, California          GREGORY W. MEEKS, New York
DAVE WELDON, Florida                 BARBARA LEE, California
JIM RYUN, Kansas                     FRANK MASCARA, Pennsylvania
BOB RILEY, Alabama           JAY INSLEE, Washington
STEVEN C. LATOURETTE, Ohio           JANICE D. SCHAKOWSKY, Illinois
DONALD A. MANZULLO, Illinois         DENNIS MOORE, Kansas
WALTER B. JONES, North Carolina      CHARLES A. GONZALEZ, Texas
DOUG OSE, California                 STEPHANIE TUBBS JONES, Ohio
JUDY BIGGERT, Illinois               MICHAEL E. CAPUANO, Massachusetts
MARK GREEN, Wisconsin                HAROLD E. FORD, Jr., Tennesee
PATRICK J. TOOMEY, Pennsylvania      RUBEN HINOJOSA, Texas
CHRISTOPHER SHAYS, Connecticut       KEN LUCAS, Kentucky
JOHN B. SHADEGG, Arizona             RONNIE SHOWS, Mississippi
VITO FOSSELLA, New York              JOSEPH CROWLEY, New York
GARY G. MILLER, California           WILLIAM LACY CLAY, Missouri
ERIC CANTOR, Virginia                STEVE ISRAEL, New York
FELIX J. GRUCCI, Jr., New York       MIKE ROSS, Arkansas
MELISSA A. HART, Pennsylvania        BERNARD SANDERS, Vermont*
SHELLEY MOORE CAPITO, West Virginia
MIKE FERGUSON, New Jersey
MIKE ROGERS, Michigan
PATRICK J. TIBERI, Ohio
---------------------------------------------------------------------------
    * Mr. Sanders is an independent, but caucuses with the Democratic 
Caucus.
     The following members are on leave from the Committee on 
Financial Services: Mr. Dreier, ranking immediately after Mr. Bereuter; 
Ms. Pryce and Mr. Linder, ranking immediately after Mr. Baker; Ms. 
Myrick, ranking immediately after Mr. Paul; and Mr. Sessions, ranking 
immediately after Mr. Riley.
---------------------------------------------------------------------------

                        SUBCOMMITTEE MEMBERSHIPS

  Subcommittee on Capital Markets, Insurance and Government Sponsored 
                              Enterprises

                             (Ratio: 25-22)

                 RICHARD H. BAKER, Louisiana, Chairman

ROBERT W. NEY, Ohio                  PAUL E. KANJORSKI, Pennsylvania
  Vice Chairman                      GARY L. ACKERMAN, New York
CHRISTOPHER SHAYS, Connecticut       NYDIA M. VELAZQUEZ, New York
CHRISTOPHER COX, California          KEN BENTSEN, Texas
PAUL GILLMOR, Ohio                   MAX SANDLIN, Texas
RON PAUL, Texas                      JAMES H. MALONEY, Connecticut
SPENCER BACHUS, Alabama              DARLENE HOOLEY, Oregon
MICHAEL N. CASTLE, Deleware          FRANK R. MASCARA, Pennsylvania
EDWARD R. ROYCE, California          STEPHANIE TUBBS JONES, Ohio
FRANK D. LUCAS, Oklahoma             MICHAEL CAPUANO, Massachusetts
BOB BARR, Georgia                    BRAD SHERMAN, California
WALTER B. JONES, Jr., North          GREGORY MEEKS, New York
Carolina                             JAY INSLEE, Washington
STEVEN C. LATOURETTE, Ohio           DENNIS MOORE, Kansas
JOHN B. SHADEGG, Arizona             CHARLIE GONZALEZ, Texas
DAVE WELDON, Florida                 HAROLD E. FORD, Jr., Tennesee
JIM RYUN, Kansas                     RUBEN HINOJOSA, Texas
BOB RILEY, Alabama                   KEN LUCAS, Kentucky
VITO FOSSELLA, New York              RONNIE SHOWS, Mississippi
JUDY BIGGERT, Illinois               JOSEPH CROWLEY, New York
GARY C. MILLER, California           STEVE ISRAEL, New York
DOUG OSE, California                 MIKE ROSS, Arkansas
PATRICK J. TOOMEY, Pennsylvania      JOHN J. LAFALCE, New York
MIKE FERGUSON, New Jersey              Ex Officio
MELISSA A. HART, Pennsylvania
MIKE ROGERS, Michigan
MICHAEL G. OXLEY, Ohio
  Ex Officio

  Subcommittee on Domestic Monetary Policy, Technology, and Economic 
                                 Growth

                             (Ratio: 14-12)

                   PETER T. KING, New York, Chairman

JAMES A. LEACH, Iowa                 CAROLYN B. MALONEY, New York
  Vice Chairman                      BARNEY FRANK, Massachusetts
EDWARD R. ROYCE, California          GREGORY MEEKS, New York
FRANK D. LUCAS, Oklahoma             BERNIE SANDERS, Vermont
RON PAUL, Texas                      JAMES H. MALONEY, Connecticut
STEVEN C. LATOURETTE, Ohio           DARLENE HOOLEY, Oregon
DOUG OSE, California                 MAX SANDLIN, Texas
MARK GREEN, Wisconsin                CHARLIE GONZALEZ, Texas
CHRISTOPHER SHAYS, Connecticut       MICHAEL CAPUANO, Massachusetts
JOHN B. SHADEGG, Arizona             RUBEN HINOJOSA, Texas
VITO FOSSELLA, New York              WILLIAM LACY CLAY, Missouri
FELIX J. GRUCCI, Jr., New York       MIKE ROSS, Arkansas
MELISSA A. HART, Pennsylvania        JOHN J. LAFALCE, New York
SHELLEY MOORE CAPITO, West Virginia    Ex Officio
MICHAEL G. OXLEY, Ohio
  Ex Officio

       Subcommittee on Financial Institutions and Consumer Credit

                             (Ratio: 25-22)

                   SPENCER BACHUS, Alabama, Chairman

DAVE WELDON, Florida                 MAXINE WATERS, California
  Vice Chairman                      CAROLYN MALONEY, New York
MARGE ROUKEMA, New Jersey            MELVIN WATT, North Carolina
DOUG BEREUTER, Nebraska              GARY ACKERMAN, New York
RICHARD H. BAKER, Louisiana          KEN BENTSEN, Texas
MICHAEL N. CASTLE, Deleware          BRAD SHERMAN, California
EDWARD R. ROYCE, California          MAX SANDLIN, Texas
FRANK D. LUCAS, Oklahoma             GREGORY MEEKS, New York
BOB BARR, Georgia                    LUIS GUTIERREZ, Illinois
SUE W. KELLY, New York               FRANK MASCARA, Pennsylvania
PAUL E. GILLMOR, Ohio                DENNIS MOORE, Kansas
JIM RYUN, Kansas                     CHARLES A. GONZALEZ, Texas
BOB RILEY, Alabama                   PAUL KANJORSKI, Pennsylvania
STEVEN C. LATOURETTE, Ohio           NYDIA M. VELAZQUEZ, New York\5\
DONALD A. MANZULLO, Illinois         JAMES H. MALONEY, Connecticut
WALTER B. JONES, North Carolina      DARLENE HOOLEY, Oregon
JUDY BIGGERT, Illinois               JULIA CARSON, Indiana
PATRICK J. TOOMEY, Pennsylvania      HAROLD E. FORD, JR., Tennesee
ERIC CANTOR, Virginia                RUBEN HINOJOSA, Texas
FELIX J. GRUCCI, JR., New York       KEN LUCAS, Kentucky
MELISSA A. HART, Pennsylvania        RONNIE SHOWS, Mississippi
SHELLEY MOORE CAPITO, West Virginia  JOSEPH CROWLEY, New York
MIKE FERGUSON, New Jersey            JOHN J. LAFALCE, New York
MIKE ROGERS, Michigan                  Ex Officio
PATRICK J. TIBERI, Ohio
MICHAEL G. OXLEY, Ohio
  Ex Officio
---------------------------------------------------------------------------
    \5\ Ms. Velazquez was added to the Subcommittee on Financial 
Institutions and Consumer Credit on May 9, 2001, replacing Ms. Lee, who 
was removed by unanimous consent.
---------------------------------------------------------------------------

           Subcommittee on Housing and Community Opportunity

                             (Ratio: 14-12)

                    MARGE ROUKEMA, New Jersey, Chair

MARK GREEN, Wisconsin                BARNEY FRANK, Massachusetts
  Vice Chairman                      NYDIA VELAZQUEZ, New York
DOUG BEREUTER, Nebraska              JULIA CARSON, Indiana
SPENCER BACHUS, Alabama              BARBARA LEE, California
PETER T. KING, New York              JAN SCHAKOWSKY, Illinois
ROBERT W. NEY, Ohio                  STEPHANIE TUBBS JONES, Ohio
BOB BARR, Georgia                    MICHAEL CAPUANO, Massachusetts
SUE W. KELLY, New York               MAXINE WATERS, California
BOB RILEY, Alabama                   BERNARD SANDERS, Vermont*
GARY G. MILLER, California           MELVIN WATT, North Carolina
ERIC CANTOR, Virginia                WILLIAM LACY CLAY, Missouri
FELIX J. GRUCCI, JR., New York       STEVE ISRAEL, New York
MIKE ROGERS, Michigan                JOHN J. LAFALCE, New York
PATRICK J. TIBERI, Ohio                Ex Officio
MICHAEL G. OXLEY, Ohio
  Ex Officio

        Subcommittee on International Monetary Policy and Trade

                             (Ratio: 14-12)

                   DOUG BEREUTER, Nebraska, Chairman

DOUG OSE, California                 BERNARD SANDERS, Vermont*
  Vice Chairman                      MAXINE WATERS, California
MARGE ROUKEMA, New Jersey            BARNEY FRANK, Massachusetts
RICHARD H. BAKER, Louisiana          MELVIN L. WATT, North Carolina
MICHAEL N. CASTLE, Deleware          JULIA CARSON, Indiana
JIM RYUN, Kansas                     BARBARA LEE, California\6\
DONALD A. MANZULLO, Illinois         PAUL E. KANJORSKI, Pennsylvania
JUDY BIGGERT, Illinois               BRAD SHERMAN, California
MARK GREEN, Wisconsin                JANICE D. SCHAKOWSKY, Illinois
PATRICK J. TOOMEY, Pennsylvania      CAROLYN B. MALONEY, New York
CHRISTOPHER SHAYS, Connecticut       LUIS V. GUTIERREZ, Illinois
GARY G. MILLER, California           KEN BENTSEN, Texas
SHELLEY MOORE CAPITO, West Virginia  JOHN J. LAFALCE, New York
MIKE FERGUSON, New Jersey              Ex Officio
MICHAEL G. OXLEY, Ohio
  Ex Officio
---------------------------------------------------------------------------
    * Mr. Sanders is an independent, but caucuses with the Democratic 
Caucus.
    \6\ Ms. Lee was added to the Subcommittee on International Monetary 
Policy and Trade on May 9, 2001, replacing Ms. Velazquez who was 
removed by unanimous consent.
---------------------------------------------------------------------------

              Subcommittee on Oversight and Investigations

                             (Ratio: 11-9)

                       SUE KELLY, New York, Chair

RON PAUL, Texas                      LUIS V. GUTIERREZ, Illinois
  Vice Chairman                      JAY INSLEE, Washington
PETER T. KING, New York              JANICE D. SCHAKOWSKY, Illinois
ROBERT W. NEY, Ohio                  DENNIS MOORE, Kansas
CHRISTOPHER COX, California          STEPHANIE TUBBS JONES, Ohio\7\
DAVE WELDON, Florida                 MICHAEL E. CAPUANO, Massachusetts
WALTER B. JONES, North Carolina      RONNIE SHOWS, Mississippi
JOHN B. SHADEGG, Arizona             JOSEPH CROWLEY, New York
VITO FOSSELLA, New York              WILLIAM LACY CLAY, Missouri
ERIC CANTOR, Virginia                JOHN J. LAFALCE, New York
PATRICK J. TIBERI, Ohio                Ex Officio
MICHAEL G. OXLEY, OH
  Ex Officio
---------------------------------------------------------------------------
    \7\ Ms. Jones of Ohio was added to the Subcommittee on Oversight 
and Investigations on May 9, 2001, replacing Mr. Bentsen who was 
removed by unanimous consent.
---------------------------------------------------------------------------

                            Committee Staff

                             majority staff

                               ----------

                             minority staff

                              ------------
                   LEGISLATIVE AND OVERSIGHT ACTIVITY

    During the 107th Congress, 368 bills were referred to the 
Committee on Financial Services. The Full Committee reported to 
the House or was discharged from the further consideration of 
33 measures (not including conference reports). Nineteen 
measures regarding issues within the Committee's jurisdiction 
were enacted into law.
    The following is a summary of the legislative and oversight 
activities of the Committee on Financial Services during the 
107th Congress, including a summary of the activities taken by 
the Committee to implement its Oversight Plan for the 107th 
Congress.
                    COMMITTEE ON FINANCIAL SERVICES

                             full committee

                            (Ratio: 37-32-1)

                    MICHAEL G. OXLEY, Ohio, Chairman

JAMES A. LEACH, Iowa                 JOHN J. LAFALCE, New York
MARGE ROUKEMA, New Jersey            BARNEY FRANK, Massachusetts
  Vice Chair                         PAUL E. KANJORSKI, Pennsylvania
DOUG BEREUTER, Nebraska              MAXINE WATERS, California
RICHARD H. BAKER, Louisiana          CAROLYN B. MALONEY, New York
SPENCER BACHUS, Alabama              LUIS V. GUTIERREZ, Illinois
MICHAEL N. CASTLE, Deleware          NYDIA M. VELAZQUEZ, New York
PETER T. KING, New York              MELVIN L. WATT, North Carolina
EDWARD R. ROYCE, California          GARY L. ACKERMAN, New York
FRANK D. LUCAS, Oklahoma             KEN BENTSEN, Texas
ROBERT W. NEY, Ohio                  JAMES H. MALONEY, Connecticut
BOB BARR, Georgia                    DARLENE HOOLEY, Oregon
SUE W. KELLY, New York               JULIA CARSON, Indiana
RON PAUL, Texas                      BRAD SHERMAN, California
PAUL E. GILLMOR, Ohio                MAX SANDLIN, Texas
CHRISTOPHER COX, California          GREGORY W. MEEKS, New York
DAVE WELDON, Florida                 BARBARA LEE, California
JIM RYUN, Kansas                     FRANK MASCARA, Pennsylvania
BOB RILEY, Alabama                   JAY INSLEE, Washington
STEVEN C. LATOURETTE, Ohio           JANICE D. SCHAKOWSKY, Illinois
DONALD A. MANZULLO, Illinois         DENNIS MOORE, Kansas
WALTER B. JONES, North Carolina      CHARLES A. GONZALEZ, Texas
DOUG OSE, California                 STEPHANIE TUBBS JONES, Ohio
JUDY BIGGERT, Illinois               MICHAEL E. CAPUANO, Massachusetts
MARK GREEN, Wisconsin                HAROLD E. FORD, Jr., Tennesee
PATRICK J. TOOMEY, Pennsylvania      RUBEN HINOJOSA, Texas
CHRISTOPHER SHAYS, Connecticut       KEN LUCAS, Kentucky
JOHN B. SHADEGG, Arizona             RONNIE SHOWS, Mississippi
VITO FOSSELLA, New York              JOSEPH CROWLEY, New York
GARY G. MILLER, California           WILLIAM LACY CLAY, Missouri
ERIC CANTOR, Virginia                STEVE ISRAEL, New York
FELIX J. GRUCCI, Jr., New York       MIKE ROSS, Arkansas
MELISSA A. HART, Pennsylvania        BERNARD SANDERS, Vermont*
SHELLEY MOORE CAPITO, West Virginia
MIKE FERGUSON, New Jersey
MIKE ROGERS, Michigan
PATRICK J. TIBERI, Ohio
---------------------------------------------------------------------------
    * Mr. Sanders is an independent, but caucuses with the Democratic 
Caucus.
---------------------------------------------------------------------------

                         Legislative Activities

                      financial anti-terrorism act

                Public Law 107-56 (H.R. 3162; H.R. 3004)

    To combat the financing of terrorism and other financial 
crimes, and for other purposes.
Summary
    Title III of H.R. 3162 contained many of the provisions of 
H.R. 3004, the Financial Anti-Terrorism Act. The legislation 
contains provisions to strengthen law enforcement authorities, 
as well as enhance public-private cooperation between 
government and industry in disrupting terrorist funding.
    The legislation (1) makes it a crime to smuggle over 
$10,000 into or out of the United States, and to transport more 
than $10,000 in criminal proceeds across State lines; (2) gives 
the Justice Department new prosecutorial tools to combat 
terrorist-related and other money laundering through U.S. 
financial institutions; (3) provides statutory authorization 
for the Financial Crimes Enforcement Network (FinCEN), which 
analyzes reports filed by financial institutions on currency 
transactions and suspicious financial activity; (4) sets up a 
unit in FinCEN directed at oversight and analysis of hawalas 
and other underground black market banking systems; (5) directs 
the Treasury to develop regulations to guide financial 
institutions in verifying the identity of customers who open 
accounts at the institution; (6) directs the Treasury 
Department to establish a secure web site to receive electronic 
filings of Suspicious Activity Reports (SARs) and provide 
financial institutions with alerts and other information 
regarding patterns of terrorist or other suspicious activity 
that warrant enhanced scrutiny; (7) requires the Secretary of 
the Treasury to report quarterly to industry on how SARs are 
used to assist law enforcement in combating terrorism and other 
crimes; (8) authorizes intelligence agency access to reports 
filed by financial institutions and expands government access 
to consumer financial records and credit histories; (9) sets a 
December 31, 2001, deadline for proposed regulations on SAR 
reporting requirements for broker-dealers and authorizes the 
Department of the Treasury to require SARs of certain commodity 
futures traders; (11) authorizes the Secretary of the Treasury 
to impose `special measures' if a foreign country, financial 
institution, transaction, or account is deemed to be a `primary 
money laundering concern'; (12) prohibits U.S. financial 
institutions from providing banking services to `shell' banks 
that have no physical presence in any country nor any 
affiliation with a financial institution; (13) requires greater 
due diligence for certain correspondent and private banking 
accounts; (14) authorizes Treasury to regulate concentration 
accounts; (15) requires financial institutions to have anti-
money laundering programs; and (16) updates U.S. anti-
counterfeiting laws.
Legislative History
    H.R. 3004, the Financial Anti-Terrorism Act, was introduced 
by Mr. Oxley and 17 original cosponsors on October 3, 2001, and 
referred to the Committee on Financial Services, and 
additionally to the Committees on the Judiciary, and Ways and 
Means. On October 11, 2001, the Committee on Financial Services 
met in open session and ordered the bill reported by a record 
vote of 62 yeas and 1 nay.
    On October 17, 2001, the Committee on Financial Services 
reported the bill to the House (H. Rept. 107-250, Part I) and 
the Committees on Judiciary and Ways and Means were discharged 
from the further consideration of the bill. On October 17, 
2001, the House considered H.R. 3004 under suspension of the 
rules and passed the bill by a record vote of 412 yeas and 1 
nay. The bill was received in the Senate and referred to the 
Senate Committee on Banking, Housing, and Urban Affairs.
    The provisions of H.R. 3004, as negotiated with the Senate, 
were incorporated into title III of H.R. 3162, the Uniting and 
Strengthening America by Providing Appropriate Tools Required 
to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 
2001. H.R. 3162 was introduced by Mr. Sensenbrenner and one 
original cosponsor of on October 23, 2001 and referred to the 
Committee on the Judiciary and additionally to the Committees 
on Intelligence (Permanent Select), Financial Services, 
International Relations, Energy and Commerce, Education and the 
Workforce, Transportation and Infrastructure, and Armed 
Services.
    On October 23, 2001, the House considered H.R. 3162 under 
suspension of the rules and passed the bill on October 24, 2001 
by a record vote of 357 yeas and 66 nays. The bill was received 
in the Senate on October 24, 2001 and passed by unanimous 
consent on October 25, 2001, clearing the bill for the White 
House.
    H.R. 3162 was presented to the President on October 25, 
2001, and signed into law on October 26, 2001, becoming public 
law 107-56.

                the terrorism risk insurance act of 2002

                Public Law 107-297 (H.R. 3210; S. 2600)

    To ensure the continued financial capacity of insurers to 
provide coverage for risks from terrorism.
Summary
    The Act establishes the Terrorism Insurance Program in the 
Department of the Treasury under which the Federal government 
will share the risk of loss from future terrorist attacks with 
the commercial property and casualty insurance marketplace, for 
a temporary period of time. The Secretary of the Treasury will 
administer the Program and pay the Federal share of 
compensation for insured losses. The Federal government pays 90 
percent of insured losses in excess of an insurer's deductible, 
while the insurer pays 10 percent. Insurers may reinsure their 
insurer deductibles and 10 percent co-shares. Losses covered by 
the Program will be capped at $100 billion per year; above this 
amount, Congress will determine the procedures for and the 
source of any payments.
    Before receiving Federal assistance under this Act, an 
insurer must certify its claim for payment of insured losses, 
that a policyholder (or person acting on the policyholder's 
behalf) has filed a claim for such loss, and the insurer's 
compliance with the Act. The Secretary may not reimburse an 
insurer for such losses unless the insurer has provided clear 
and conspicuous disclosure to the policyholder of the premium 
charged for terrorism coverage and the Federal share of 
compensation. This disclosure to the policyholder must occur at 
the time of offer, purchase, and renewal of the policy for 
policies issued after the date of enactment, and must be made 
on a separate line item in the policy with respect to policies 
issued more than 90 days after enactment. For policies issued 
before the date of enactment, the disclosure must be made 
within 90 days of such date. Insurers must submit premium and 
claims information to the Secretary who may investigate and 
audit all claims under the Program.
    Each entity meeting the definition of insurer under this 
legislation is required to participate in the Program. During 
the first two years of the Program each such insurer must make 
available in all of its property and casualty insurance 
policies coverage for insured losses, and shall make such 
coverage available on terms that do not differ materially from 
the terms, amounts, and other coverage limitations applicable 
to losses arising from events other than acts of terrorism. The 
Secretary has discretion to extend this requirement to the 
third year of the Program, to preserve this important option 
for policyholders.
    The Secretary can require full repayment of any Federal 
assistance by the industry, with mandatory repayment for any 
Federal assistance provided for non-catastrophic losses under 
the established retention levels. This insurance marketplace 
retention is set at $10 billion in Program year 1 (including 
any remainder of 2002), $12.5 billion in Program year 2, and 
$15 billion in Program year 3. Federal assistance within the 
retention above the insurer deductibles and 10 percent co-
shares must be recouped while additional amounts of Federal 
assistance may be recouped based on economic factors in the 
judgment of the Secretary. Mandatory recoupment within the 
insurance marketplace retention is through terrorism loss risk-
spreading premiums (surcharges) paid by all commercial property 
and casualty policyholders based on premium rates with any 
year's surcharge (mandatory and discretionary combined) capped 
at 3 percent of the premium charged for property and casualty 
insurance coverage under the policy in each such year. The 
Secretary has discretion over the timing of recoupment, and to 
adjust amounts for urban, smaller commercial, and rural areas, 
as well as for different lines of insurance, so long as the 
mandatory amounts are ultimately recouped. The Secretary may 
assess civil penalties on insurers for submission of false or 
misleading information or failure to repay the Secretary for 
any amount required to be repaid, or for other failure to 
comply with the provisions of this title.
    The Secretary is also directed to conduct an expedited 
study to determine whether adequate and affordable catastrophe 
reinsurance for acts of terrorism is available to group life 
insurers and whether the threat of terrorism is reducing the 
availability of group life insurance for consumers. Should the 
Secretary determine that terrorism coverage is not or will not 
be reasonably available to insurers and consumers, the 
Secretary would be required to include group life insurance in 
the Terrorism Insurance Program. In so doing, the Secretary 
would have discretion to determine the most appropriate way to 
include group life insurance in the Program.
    The Secretary, after consultation with the NAIC, is also 
directed to conduct a study of the potential effects of acts of 
terrorism on the availability of life insurance generally and 
other lines of insurance coverage, including personal lines, to 
be submitted to Congress not later than 9 months from the date 
of enactment.
    Commercial property and casualty terrorism insurance 
exclusions that are in force on the date of the enactment of 
this legislation are voided to the extent that they exclude 
losses that would otherwise be insured losses. Any State 
approval of any commercial property and casualty terrorism 
insurance exclusion in force on the date of enactment is also 
void to the extent that it excludes losses that would otherwise 
be insured losses.
    Until the end of 2003, States will be required to allow 
rate and form changes to take effect immediately but retain 
authority to disapprove any rates as excessive, inadequate, or 
unfairly discriminatory and, where a State has prior approval 
authority for forms, subsequent review of such forms is 
permitted.
    The Program creates an exclusive Federal action to address 
claims arising from terrorist attacks, preempting corollary 
State actions and jurisdiction (although State substantive law 
would continue to apply). Claims can be consolidated in the 
appropriate Federal courts by the Judicial Panel on 
Multidistrict Litigation. The Program does not provide payments 
for punitive damages from the Federal government.
    The Program backstop lasts for slightly over 3 years, 
terminating on December 31, 2005. Title II allows victims of 
terrorism to obtain satisfaction of judgments from blocked 
assets of terrorists. Title III creates certain emergency 
authority of the Board of Governors of the Federal Reserve 
System.
Legislative History
    H.R. 3210 was introduced in the House on November 1, 2001, 
by Mr. Oxley and 30 original cosponsors. The bill was referred 
to the Committee on Financial Services and in addition to the 
Committee on Ways and Means and the Committee on the Budget.
    The House Committee on Financial Services held two hearings 
and a roundtable discussion prior to introduction of the bill 
On September 26, 2001, the Full Committee held a hearing 
entitled, ``America's Insurance Industry: Keeping the 
Promise.'' The Subcommittee on Capital Markets, Insurance and 
Government Sponsored Enterprises held a hearing October 24, 
2001, entitled, ``Protecting Policymakers from Terrorism: 
Private Sector Solutions.'' Finally, the Subcommittee on 
Capital Markets, Insurance and Government Sponsored Enterprises 
held a roundtable Discussion on Terrorism Risk Insurance on 
October 31, 2001.
    The Committee on Financial Services met in open session on 
November 7, 2001, and ordered H.R. 3210 reported to the House 
with a favorable recommendation, with an amendment, by a voice 
vote. On November 19, 2001 the Committee on Ways and Means met 
in open session and ordered H.R. 3210 reported to the House, 
with an amendment, by a voice vote. On November 26, 2001, the 
Committees on the Budget and Judiciary were discharged from the 
further consideration of the bill.
    On November 28, 2001 the Committee on Rules met and 
reported a rule providing for consideration of H.R. 3210 with 
one hour of general debate (H. Res. 297) and making a specified 
amendment in order.
    On November 29, H.Res. 297 was agreed to by a record vote 
of 216 yeas and 202 nays. The House then considered and passed 
H.R. 3210 by a record vote of 227 yeas and 193 nays.
    On November 30, 2001, H.R. 3210 was received in the Senate, 
read the first time and placed on the Senate Legislative 
Calendar under Read the First Time. On December 3, 2001, H.R. 
3210 was read the second time and placed on the Senate 
Legislative Calendar under General Orders.
    On November July 25, 2002, H.R. 3210 was laid before Senate 
by unanimous consent, the Senate struck all after the Enacting 
Clause and substituted the language of S. 2600 as amended, and 
H.R. 3210 passed the Senate with an amendment by Unanimous 
Consent. A Conference was requested and conferees were 
appointed.
    On September 10, 2002, the House instructed conferees with 
respect to a provision regarding satisfaction of judgments by 
terrorist victims of blocked assets of terrorists, by a vote of 
373-0.
    On November 13, 2002, the conference report to accompany 
H.R. 3210 (H. Rept. 107-779) was filed in the House.
    On November 13, 2002, the Committee on Rules reported a 
rule providing for the consideration of the conference report 
(H.Res. 607), which was agreed to on November 14, 2002, by a 
voice vote. On November 14, 2002, the conference report was 
agreed to in the House by voice vote.
    On November 19, 2002, the conference report was agreed to 
in the Senate by a roll call vote of 86 yeas and 11 nays, 
clearing the bill for the White House. The bill was presented 
to the President on November 22, 2002, and signed into law on 
November 26, 2002, becoming public law number 107-297.

                  second export-import bank extension

                     Public Law 107-186 (H.R. 4782)

    To extend the authority of the Export-Import Bank until 
June 14, 2002.
Summary
    The bill extended the authority of the Export-Import Bank 
through June 14, 2002.
Legislative History
    On May 21, 2002, H.R. 4782 was introduced in the House by 
Mr. Oxley and referred to the Committee on Financial Services. 
On May 21, 2002, the House considered H.R. 4782 under 
suspension of the rules and passed the bill by a voice vote.
    On May 22, 2002, the bill was received in the Senate, and 
passed by unanimous consent, clearing it for the White House. 
H.R. 4782 was presented to the President on May 29, 2002, and 
signed into law on May 30, 2002, becoming public law 107-186.

               defense production amendments act of 2001

                     Public Law 107-47 (H.R. 2510)

    To extend the expiration date of the Defense Production Act 
of 1950, and for other purposes.
Summary
    H.R. 2510 authorized the extension of the Defense 
Production Act of 1950 (DPA) for two years beyond its September 
30, 2001 expiration. The legislation also makes technical 
corrections to the DPA. The underlying act itself uses economic 
tools to provide prompt, adequate and uninterrupted supplies of 
industrial resources to satisfy both national security needs 
and needs arising from civil emergencies.
Legislative History
    H.R. 2510 was introduced on July 17, 2001 by Mr. King (by 
request), with one original cosponsor. The Committee on 
Financial Services met in open session on July 25, 2001 and 
ordered H.R. 2510 reported to the House with a favorable 
recommendation, by a voice vote. The Committee reported the 
bill to the House on July 30, 2001 (H. Rept. 107-173).
     On September 5, 2001, the House considered the bill under 
suspension of the rules and agreed to by voice vote.
    On September 6, 2001, the bill was received in the Senate 
and referred to the Committee on Banking, Housing, and Urban 
Affairs. The committee discharged the legislation by Unanimous 
Consent on September 21, 2001 and the measure was laid before 
the Senate by unanimous consent. On September 21, 2001, the 
Senate passed the bill with an amendment by unanimous consent.
    On September 25, 2001, the House concurred in the Senate 
amendment with further amendments by unanimous consent. On 
September 26, 2001, the Senate agreed to the House amendments 
to the Senate Amendments by unanimous consent and clearing the 
bill for the White House.
    On October 1, 2001, the legislation was presented to the 
President, and signed on October 5, 2001 becoming public law 
number 107-47.

                      mark-to-market extension act

               Public Law 107-116 (H.R. 2589; H.R. 3061)

    To amend the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 to reauthorize the Office of 
Multifamily Housing Assistance Restructuring, and for other 
purposes.
Summary
    H.R. 2589, the Mark-to-Market Extension Act of 2001, 
extends the Office of Multifamily Housing Assistance 
Restructuring through October 1, 2004, and reauthorizes the 
mark-to-market program through October 1, 2006. In addition, 
H.R. 2589 simplifies issues of jurisdiction and coordination by 
requiring the Program Director to report directly to the 
Federal Housing Commissioner and eliminates the need for Senate 
confirmation of the Director.
Legislative History
    H.R. 2589 was introduced by Mrs. Roukema and one original 
cosponsor on July 23, 2001 and referred to the Committee on 
Financial Services.
    The Committee met in open session on July 25, 2001 to 
consider H.R. 2589 and ordered the bill reported to the House 
with a favorable recommendation by a voice vote. The Committee 
reported the bill to the House on September 5, 2001 (H. Rept. 
107-196).
    On September 24, 2001, the House considered H.R. 2589 under 
suspension of the rules and passed the bill by a voice vote. 
The bill was received in the Senate on September 25, 2001 and 
placed on the Senate legislative calendar. No further action 
was taken on this measure in the 107th Congress.
    The text of the measure was included in title VI of H.R. 
3061, the Departments of Labor, Health and Human Services, and 
Education, and Related Agencies Appropriations Act, 2002. The 
conference report to accompany H.R. 3061 (H. Rept. 107-342) was 
considered by the House on December 19, 2001, and agreed to by 
a record vote of 393 yeas and 30 nays. The Senate considered 
the conference report by unanimous consent on December 20, 2001 
and agreed to the conference report by a record vote of 90 yeas 
and 7 nays, clearing the bill for the White House.
    The bill was presented to the President on January 4, 2002, 
and signed into law on January 10, 2001, becoming public law 
107-116.

               emergency securities response act of 2001

                              (H.R. 3060)

    To provide the Securities and Exchange Commission (SEC) 
with enhanced authority to respond to extraordinary market 
disturbances.
Summary
    H.R. 3060, the Emergency Securities Response Act of 2001, 
extends the duration of a SEC emergency order issued pursuant 
to section 12(k)(2) of the Securities Exchange Act of 1934 (15 
U.S.C. 78l(k)(2)) from ten to 30 business days, and under 
certain circumstances, up to a total of 90 calendar days.
Legislative History
    On September 26, 2001, the Committee held a hearing on the 
state of the nation's financial markets in the wake of the 
terrorist attacks of September 11, at which SEC Chairman Harvey 
Pitt testified with respect to the Nation's securities markets. 
Pursuant to requests by Members of the Committee at that 
hearing, Chairman Pitt submitted a request for expanded 
emergency authority under section 12(k)(2).
    H.R. 3060 was introduced in the House by Mr. Oxley and 4 
original cosponsors on October 9, 2001 and was referred to the 
Committee on Financial Services.
    On November 11, 2001, the Committee met in open session and 
ordered H.R. 3060 reported with a favorable recommendation to 
the House, without amendment, by a voice vote. The Committee 
reported the bill to the House on November 13, 2001 (H.Rept. 
107-283).
    H.R. 3060 was considered by the House under suspension of 
the rules on November 13, 2001 and passed the House by a voice 
vote. On November 14, 2001, the bill was received in the Senate 
and referred to the Senate Committee on Banking, Housing, and 
Urban Affairs.
    No further action was taken on H.R. 3060 in the 107th 
Congress.

                    north american development bank

                              (H.R. 5400)

    To authorize the President of the United States to agree to 
certain amendments to the Agreement between the Government of 
the United States of America and the Government of the United 
Mexican States concerning the establishment of a Border 
Environment Cooperation Commission and a North American 
Development Bank, and for other purposes.
Summary
    H.R. 5400 authorizes the President to agree to the 
amendments to the North American Development Bank (NADBank) 
Cooperation Agreement that do the following: enable the NADBank 
to make grants and non-market rate loans out of its paid-in 
capital resources with the approval of its Board; and amend the 
definition of the NADBank ``border region'' to include the area 
in the United States that is within 100 kilometers of the 
international boundary between the United States and Mexico, 
and the area in Mexico that is within 300 kilometers of the 
international boundary line between the Mexico and the United 
States. H.R. 5400 requires Treasury to submit an annual report 
to Congress on the NADBank. H.R. 5400 also contains a series of 
sense of Congresses which address the water conservation fund 
of the NADBank.
Legislative History
    On September 18, 2002, Mr. Bereuter introduced H.R. 5400 
with 3 original cosponsors, and the bill was referred to the 
Committee on Financial Services. On September 26, 2002, the 
Committee on Financial Services met in open session and ordered 
H.R. 5400 reported to the House, with an amendment, by a voice 
vote. The Committee on Financial Services reported the bill to 
the House on October 3, 2002 (H. Rept. 107-720). The Committee 
filed a supplemental report containing the cost estimate of the 
Congressional Budget Office on October 7, 2002 (H. Rept. 107-
720, Part II).
    On October 10, 2002, the House passed H.R. 5400 by 
unanimous consent. The bill was received in the Senate on 
October 15, 2002. No further action was taken on this measure 
in the 107th Congress.

                          Oversight Activities

               reports on the conduct of monetary policy

    On February 28 and July 18, 2001, and February 27 and July 
17, 2002, the Committee received testimony from the Chairman of 
the Federal Reserve Board, Alan Greenspan, on the conduct of 
monetary policy. The report continued a tradition of twice-
yearly reports by the Fed Chairman to the committees of 
jurisdiction in the House and Senate that formerly were 
referred to as ``Humphrey-Hawkins'' hearings after the act that 
required the testimony.

                          terrorism insurance

    On September 26, 2001, the Committee on Financial Services 
held a Full Committee hearing entitled America's Insurance 
Industry: Keeping the Promise. The hearing focused on the 
insurance industry's response to the September 11th terrorist 
attacks. The hearing began with an update on the Nation's 
financial markets from Securities and Exchange Chairman Harvey 
Pitt. The New York Insurance Department, National Association 
of Insurance Commissioners, and several insurance industry CEOs 
then discussed how the immediate human needs of the victims of 
the September 11th tragedy were being met by insurers, and 
confirmed the financial strength of the U.S. insurance 
industry. An analyst from A.M. Best Company also spoke to the 
strength of the industry and its ability to pay claims in 
response to the tragedy. Also raised at the hearing was the 
possible need for the Federal government to create a backstop 
for terrorism insurance for any future terrorist events.

                           the worldcom fraud

    On July 8, 2002 the Committee on Financial Services held a 
hearing entitled, ``Wrong Numbers: the Accounting Problems at 
WorldCom.'' On June 25, 2002, WorldCom announced that an 
internal audit found transfers of expenses from expense 
accounts to capital expenditure accounts (thereby deferring and 
not immediately recognizing the costs), in violation of 
generally accepted accounting principles (GAAP). The amount of 
the transfers was $3.055 billion for 2001 and $797 million for 
first quarter 2002. Without these transfers, the company would 
have reported a net loss for 2001 and for the first quarter of 
2002. The purpose of the hearing was to gain further insight 
into the scope and nature of the fraudulent transactions and 
the individuals involved at WorldCom.

  terrorist financing: a progress report on implementation of the usa 
                              patriot act

    On September 19, 2002, the full Committee held a hearing to 
review the government's implementation of the terrorist finance 
and anti-money laundering provisions of the USA PATRIOT Act, 
enacted into law on October 26, 2001. The hearing highlighted 
the Bush administration's efforts to identify and disrupt the 
channels used to finance global terrorism, including informal 
or underground financial networks, charitable organizations, 
and the precious metals trade. The hearing also examined the 
Treasury Department's progress in developing regulations 
implementing specific provisions of the PATRIOT Act, as well as 
the administration's diplomatic initiatives to enlist the 
cooperation of other countries in combating terrorist 
financing. Testifying were Robert S. Mueller, Director of the 
Federal Bureau of Investigation; Deputy Secretary of Treasury 
Kenneth W. Dam; and Alan Larson, Under Secretary of State for 
Economic, Business and Agricultural Affairs.

                            hud respa reform

    On July 29, 2002, HUD published its proposed rule to reform 
the Real Estate Settlement Procedures Act RESPA in the Federal 
Register (67 Fed. Reg. 49134) for a 90-day public comment 
period which ended on October 28, 2002.
    The proposal addresses the issue of loan originator 
compensation. It improves HUD's Good Faith Estimate (GFE) 
settlement cost disclosures and HUD's related RESPA 
regulations. Also, the rule promotes competition by removing 
regulatory barriers to allow guaranteed packages of settlement 
services and mortgages to be made available to consumers.
    The Committee on Financial Services held a hearing on 
October 3, 2002, entitled ``Reforming the Real Estate 
Settlement Procedure: Review of HUD's proposed RESPA Rule''. 
The Honorable Mel Martinez, Secretary of the Department of 
Housing and Urban Development, was the only witness to testify.

                             Hearings Held

    Conduct of Monetary Policy. Hearing to receive the 
testimony of the Chairman of the Federal Reserve Board of 
Governors on monetary policy and the state of the economy. 
February 28, 2001. PRINTED, serial no. 107-1.
    State of the International Financial System and IMF Reform. 
Hearing to receive the testimony of the Secretary of the 
Treasury on the state of the international financial system and 
IMF reform. May 22, 2001. PRINTED, serial no. 107-19.
    The California Energy Crisis: Causes, Impacts, and 
Remedies. Hearing entitled ``The California Energy Crisis: 
Causes, Impacts, and Remedies.'' June 20, 2001. PRINTED, serial 
no. 107-26.
    Conduct of Monetary Policy. Hearing to receive the 
testimony of the Chairman of the Federal Reserve Board of 
Governors on monetary policy and the state of the economy. July 
18, 2001. PRINTED, serial no. 107-35.
    America's Insurance Industry: Keeping the Promise. Hearing 
entitled ``America's Insurance Industry: Keeping the Promise.'' 
September 26, 2001. PRINTED, serial no. 107-45.
    Dismantling the Financial Infrastructure of Global 
Terrorism. Hearing entitled ``Dismantling the Financial 
Infrastructure of Global Terrorism.'' October 3, 2001. PRINTED, 
serial no. 107-46.
    Conduct of Monetary Policy. Hearing to receive the 
testimony of the Chairman of the Federal Reserve Board of 
Governors on monetary policy and the state of the economy. 
February 27, 2002. PRINTED, serial no. 107-56.
    State of the International Financial System and IMF Reform. 
Hearing to receive the testimony of the Secretary of the 
Treasury on the state of the international financial system and 
IMF reform. February 28, 2002. PRINTED, serial no. 107-58.
    Corporate and Auditing Accountability, Responsibility, and 
Transparency Act of 2002. Legislative hearing on H.R. 3763, the 
Corporate and Auditing Accountability, Responsibility, and 
Transparency Act of 2002. March 13 and 20, and April 9, 2002. 
PRINTED, serial no. 107-60.
    European Union's Financial Services Action Plan and its 
Implications for the American Financial Services Industry. 
Hearing on the European Union's Financial Services Action Plan 
and its implications for the American financial services 
industry. May 22, 2002. Serial no. 107-70.
    Wrong Numbers: The Accounting Problems at WorldCom. Hearing 
entitled ``Wrong Numbers: The Accounting Problems at WorldCom. 
July 8, 2002. Serial no. 107-74.
    Conduct of Monetary Policy. Hearing to receive the 
testimony of the Chairman of the Federal Reserve Board of 
Governors on monetary policy and the state of the economy. July 
17, 2002. Serial no. 107-76.
    Terrorist Financing: A Progress Report on the 
Implementation of the USA PATRIOT Act. Hearing entitled 
``Terrorist Financing: A Progress Report on the Implementation 
of the USA PATRIOT Act. September 19, 2002. Serial no. 107-83.
    Reforming the Real Estate Settlement Procedure: Review of 
HUD's Proposed RESPA Rule. Hearing entitled ``Reforming the 
Real Estate Settlement Procedure: Review of HUD's Proposed 
RESPA Rule.'' October 3, 2002. Serial no. 107-85.
 SUBCOMMITTEE ON CAPITAL MARKETS, INSURANCE, AND GOVERNMENT SPONSORED 
                              ENTERPRISES

                             (Ratio: 25-22)

                 RICHARD H. BAKER, Louisiana, Chairman

ROBERT W. NEY, Ohio                  PAUL E. KANJORSKI, Pennsylvania
  Vice Chairman                      GARY L. ACKERMAN, New York
CHRISTOPHER SHAYS, Connecticut       NYDIA M. VELAZQUEZ, New York
CHRISTOPHER COX, California          KEN BENTSEN, Texas
PAUL GILLMOR, Ohio                   MAX SANDLIN, Texas
RON PAUL, Texas                      JAMES H. MALONEY, Connecticut
SPENCER BACHUS, Alabama              DARLENE HOOLEY, Oregon
MICHAEL N. CASTLE, Deleware          FRANK R. MASCARA, Pennsylvania
EDWARD R. ROYCE, California          STEPHANIE TUBBS JONES, Ohio
FRANK D. LUCAS, Oklahoma             MICHAEL CAPUANO, Massachusetts
BOB BARR, Georgia                    BRAD SHERMAN, California
WALTER B. JONES, Jr., North          GREGORY MEEKS, New York
Carolina                             JAY INSLEE, Washington
STEVEN C. LATOURETTE, Ohio           DENNIS MOORE, Kansas
JOHN B. SHADEGG, Arizona             CHARLIE GONZALEZ, Texas
DAVE WELDON, Florida                 HAROLD E. FORD, Jr., Tennesee
JIM RYUN, Kansas                     RUBEN HINOJOSA, Texas
BOB RILEY, Alabama                   KEN LUCAS, Kentucky
VITO FOSSELLA, New York              RONNIE SHOWS, Mississippi
JUDY BIGGERT, Illinois               JOSEPH CROWLEY, New York
GARY C. MILLER, California           STEVE ISRAEL, New York
DOUG OSE, California                 MIKE ROSS, Arkansas
PATRICK J. TOOMEY, Pennsylvania      JOHN J. LAFALCE, New York
MIKE FERGUSON, New Jersey              Ex Officio
MELISSA A. HART, Pennsylvania
MIKE ROGERS, Michigan
MICHAEL G. OXLEY, Ohio
  Ex Officio

                         Legislative Activities

              investor and capital markets fee relief act

                 Public Law 107-123 (H.R. 1088, S. 143)

    To amend the Securities Exchange Act of 1934 to reduce fees 
collected by the Securities and Exchange Commission, and for 
other purposes.
Summary
    H.R. 1088, the Investor and Capital Markets Fee Relief Act, 
addresses the excessive fees paid by participants in the 
capital markets, which had generated revenues exceeding the 
budget of the Securities and Exchange Commission (SEC) by over 
600 percent. The Act reduces all SEC fees, including 
transaction fees, registration fees, merger/tender fees, and 
single stock future transaction fees. In addition, the Act 
addresses the problem of the difficulty of the SEC to retain 
top professional staff at current pay levels, especially in 
light of the disparate pay that SEC staff received as compared 
with the staff at the Federal banking regulatory agencies. 
Accordingly, the Act provides for pay parity for SEC staff, in 
order to bring their pay up to the level of comparable 
employees at those other financial regulatory agencies.
Legislative History
    H.R. 1088 was introduced in the House by Mr. Fossella and 3 
original cosponsors on March 19, 2001. The bill was referred 
solely to the Committee on Financial Services. On March 20, 
2001, the bill was referred to the Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises.
    The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises held a hearing entitled 
``Saving Investors Money: Reducing Excessive SEC fees'' on 
March 7, 2001. The Subcommittee received testimony from the 
Securities and Exchange Commission, the Senate sponsors of a 
similar measure, S. 143, and various market participants.
    The Subcommittee met in open session on March 21, 2001 and 
approved the bill for full Committee consideration by a voice 
vote. The full Committee met on March 28, 2001 and ordered the 
bill reported to the House, with an amendment, with a favorable 
recommendation by a voice vote. The Committee reported the bill 
to the House on May 1, 2001 (H.Rept. 107-52, Part I) and the 
bill was sequentially referred to the House Committee on 
Government Reform. The Committee on Government Reform was 
discharged of the further consideration of the bill on May 25, 
2001.
    On June 12, 2001, the Committee on Rules reported a 
modified closed rule providing for the consideration of H.R. 
1088 (H.Res. 161) which was agreed to on June 14, 2001 by a 
record vote of 408 yeas and 12 nays. The House considered and 
passed the bill on June 14, 2001 by a record vote of 404 yeas 
and 22 nays.
    The bill was received in the Senate on June 14, 2001 and 
placed on the Senate legislative calendar. On December 20, 
2001, the Senate passed the bill by unanimous consent, clearing 
the bill for the White House.
    H.R. 1088 was presented to the President on January 4, 2002 
and signed into law on January 16, 2002, becoming public law 
number 107-123.

                       sarbanes-oxley act of 2002

           Public Law 107-204 (H.R. 3763; H.R. 3764; S. 2673)

    To protect investors by improving the accuracy and 
reliability of corporate disclosures made pursuant to the 
securities laws, and for other purposes.
Summary
    The legislation provides for new controls and monitoring 
mechanisms over the accounting and investment banking 
industries, and establishes new rules on corporate governance. 
The Act's major provisions include: creation of the Public 
Company Accounting Oversight Board, an independent oversight 
body to oversee public accountants; requiring companies to 
disclose, on a rapid and current basis, material changes in 
their financial condition or operations; increased criminal 
penalties for white collar crime; enhanced SEC review of 
corporate disclosures; prevention of sales of securities by 
insiders during blackout periods that apply to employees' stock 
holdings in retirement plans; prohibitions of loans to 
executives; authorization for the SEC to direct funds it 
collects in connection with civil penalties against securities 
law violators to be included in disgorgement funds for 
investors; requirement that CEO and CFO certify financial 
statements; restrictions on non-audit services to audit 
clients; mandatory audit partner rotation; and enhanced 
firewalls at investment banks between securities research 
analysts and investment bankers.
Legislative History
    H.R. 3763, the Corporate and Auditing Accountability, 
Responsibility, and Transparency Act of 2002, was introduced on 
February 14, 2002 by Mr. Oxley and 26 cosponsors and referred 
to the Committee on Financial Services. H.R. 3764, the 
Securities and Exchange Commission Authorization Act of 2002, 
was also introduced on February 14, 2002 with 22 original 
cosponsors. On March 4, 2002, both bills were referred to the 
Subcommittee on Capital Markets, Insurance, and Government 
Sponsored Enterprises.
    The full Committee held 3 days of a legislative hearing on 
H.R. 3764 on March 13, 20, and April 9, 2002, and heard from a 
number of public and private witnesses regarding the merits of 
the legislation. On April 11, the Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises was 
discharged from the further consideration of the bill by 
unanimous consent, and the full Committee met in open session 
to consider H.R. 3763 and H.R. 3764. H.R. 3764 was ordered 
reported to the House with a favorable recommendation, with an 
amendment, by a voice vote. The Committee continued its 
consideration of H.R. 3763 on April 16, 2002, when the bill was 
ordered reported to the House with a favorable recommendation, 
with an amendment, by a voice vote.
    Both H.R. 3763 and H.R. 3764 were reported to the House on 
April 22, 2002 (H.Rept. 107-414 and H.Rept. 107-415, 
respectively). A supplemental report on H.R. 3764, containing 
the cost estimate of the Congressional Budget Office, was filed 
with the House on April 24, 2002 (H.Rept. 107-415, Part II).
    On April 23, 2002, the Committee on Rules reported a 
modified closed rule to the House (H.Res. 395). The House 
agreed to H.Res. 395 on April 24, 2002 by a voice vote. The 
House considered and passed H.R. 3763 by a record vote of 334 
yeas and 90 nays on April 24, 2002.
    The bill was received in the Senate and referred to the 
Senate Committee on Banking, Housing, and Urban Affairs on 
April 25, 2002.
    On June 25, 2002, the House considered H.R. 3764 under 
suspension of the rules, and the House passed the bill on June 
26, 2002 by a record vote of 422 yeas and 4 nays. H.R. 3764 was 
received in the Senate and referred to the Senate Committee on 
Banking, Housing, and Urban Affairs.
    On July 15, 2002, the Senate Committee on Banking, Housing, 
and Urban Affairs was discharged from the further consideration 
of H.R. 3763 by unanimous consent. The measure was laid before 
the Senate, amended with the text of S. 2673 as amended, and 
passed by unanimous consent. The Senate insisted on its 
amendment, and appointed conferees on July 17, 2002.
    On July 17, 2002, the House disagreed to the Senate 
amendment and agreed to the conference requested by the Senate 
by unanimous consent. A motion to instruct conferees offered by 
Mr. Conyers was not agreed to by a record vote of 207 yeas and 
218 nays. Conferees were appointed from the Committee on 
Financial Services, the Committee on Education and the 
Workforce, the Committee on Energy and Commerce, the Committee 
on the Judiciary, and the Committee on Ways and Means.
    The provisions of H.R. 3764 were included in the conference 
report to accompany H.R. 3763.
    The Conferees met on July 19, 2002, the House chairing, and 
the conference report was filed in the House on July 24, 2002 
(H.Rept. 107-610). The Conference report was considered 
pursuant to a unanimous consent agreement on July 25, 2002, and 
agreed to by a record vote of 423 yeas and 3 nays.
    On July 25, 2002, the Senate agreed to the conference 
report by a record vote of 99 yeas and no nays, clearing the 
measure for the White House. The bill was presented to the 
President on July 26, 2002 and signed on July 30, 2002, 
becoming public law number 107-204.

                financial services antifraud network act

                              (H.R. 1408)

    To safeguard the public from fraud in the financial 
services industry, to streamline and facilitate the antifraud 
information-sharing efforts of Federal and State regulators, 
and for other purposes.
Summary
    H.R. 1408, the Financial Services Antifraud Network Act of 
2001, directs Federal and State financial regulators, to the 
extent practicable and appropriate, to develop procedures to 
provide for a network for the sharing of antifraud information. 
In addition to coordinating the different regulators' computer 
systems, H.R. 1408 establishes the first industry-wide 
comprehensive protections for confidentiality, privacy, and 
security, of government information shared through the network 
on regulated entities. It also directs the regulators to 
provide certain minimum due process rights where adverse 
actions are taken against a person. To further protect 
information shared between regulators, H.R. 1408 establishes 
certain limited legal privileges and confidentiality and 
liability protections for regulatory and supervisory 
information.
    H.R. 1408 also allows State insurance regulators to perform 
FBI fingerprint background checks on insurance applicants to 
obtain relevant criminal records, subject to certain 
limitations and protections against misuse. Finally, H.R. 1408 
limits the ability of persons to work in the securities 
industry if they have been disciplined by banking, thrift, 
credit union, or insurance regulators.
Legislative History
    H.R. 1408 was introduced in the House on April 4, 2001, by 
Mr. Rogers from Michigan and 4 original cosponsors. The bill 
was referred to the Committee on Financial Services in addition 
to the Committee on the Judiciary and the Committee on 
Agriculture. Within the Committee on Financial Services, the 
bill was referred to the Subcommittee on Financial Institutions 
and Consumer Credit and the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises.
    The Subcommittee on Financial Institutions and Consumer 
Credit met in open session on May 9 and June 13, 2001. On June 
13, the Subcommittee approved H.R. 1408 for full Committee 
consideration, with an amendment, by a record vote of 20 yeas 
and 1 nay. On June 22, 2001, the Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises was 
discharged from the further consideration of the bill.
    On June 27, 2001, the Committee on Financial Services met 
in open session and ordered H.R. 1408 reported to the House, 
with an amendment, with a favorable recommendation by a voice 
vote.
    On August 2, 2001, the Committee on Financial Services 
reported H.R. 1408 to the House (H.Rept. 107-192, Part I) and 
the Committee on the Agriculture was discharged from the 
further consideration of the bill pursuant to an exchange of 
correspondence between the committees. On October 10, 2001, the 
Committee on the Judiciary met in open session and ordered H.R. 
1408 reported to the House, with an amendment, with a favorable 
recommendation by voice vote. The Committee on the Judiciary 
reported the bill to the House on October 16, 2001 (H.Rept. 
107-192, Part II).
    The House considered H.R. 1408 on November 6, 2001, under 
suspension of the rules. H.R. 1408 passed by a record vote of 
392 yeas and 4 nays.
    On November 7, 2001, H.R. 1408 was received in the Senate, 
read twice, and referred to the Senate Committee on Banking, 
Housing, and Urban Affairs. No further action was taken on this 
legislation in the 107th Congress.

    secondary mortgage market enterprises regulatory improvement act

                              (H.R. 1409)

    To reform the regulation of certain housing-related 
Government-sponsored enterprises.
Summary
    H.R. 1409, the Secondary Mortgage Market Enterprises 
Regulatory Improvement Act, transfers the regulation of Fannie 
Mae and Freddie Mac to the Federal Reserve Board. Under the 
bill, the Board takes over the safety and soundness 
responsibilities of the Office of Federal Housing Enterprise 
Oversight (OFHEO) and the mission setting responsibilities of 
the Secretary of Housing and Urban Development (HUD), except 
that the Secretary would keep his responsibility for affordable 
housing goals and Fair Housing Act compliance. The Board has 
the authority to approve new activities and to review on-going 
activities of an enterprise to ensure legal compliance. Prompt 
corrective action and enforcement powers are provided to the 
Board.
Legislative History
    H.R. 1409 was introduced in the House by Mr. Baker on April 
4, 2001 and was referred to the Committee on Financial 
Services. The bill was referred to the Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises on May 
11, 2001.
    On July 11, 2001, the Subcommittee on Capital Markets held 
a legislative hearing on reform of the housing Government 
Sponsored Enterprises, including H.R. 1409 and the report by 
the Congressional Budget Office entitled ``Federal Subsidies 
and the Housing GSEs'' (May 2001). Witnesses giving testimony 
included senior corporate officers from Fannie Mae and Freddie 
Mac and representatives from trade associations, consulting 
firms, and academia.
    No further action was taken on this legislation in the 
107th Congress.

                          Oversight Activities

                          insurance regulation

    On May 16, 2001, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held an 
oversight hearing entitled ``NARAB & Beyond: Achieving 
Nationwide Uniformity in Agent Licensing.'' The hearing 
reviewed the status of State reforms implementing reciprocity 
and the longer-term goal of uniformity and explored what 
Congress could do to keep the process moving forward. The 
Subcommittee received testimony from The Honorable Sue Kelly, 
one of the chief sponsors of the NARAB provisions in the Gramm-
Leach-Bliley Act, the National Association of Insurance 
Commissioners (NAIC), and various insurance agent/broker 
groups. Ms. Kelly spoke to the history of agent licensing 
reform and the passage of the NARAB provisions. The NAIC 
discussed the current status of reform and described NAIC 
initiatives to achieve nationwide reciprocity and uniformity. 
The insurance agent/broker groups gave their differing views on 
the status of producer licensing reform and what additional 
legislation or oversight Congress should consider.
    On June 21, 2001, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held an 
oversight hearing entitled ``Insurance Product Approval: The 
Need for Modernization.'' The hearing continued the Committee's 
oversight of insurance regulatory improvements. The hearing 
examined the status of insurance product regulation and the 
need for uniformity, efficiency, and timeliness in the 
regulatory review of insurance rates and forms. The 
Subcommittee received testimony from the NAIC and the National 
Conference of Insurance Legislators (NCOIL), numerous insurance 
industry associations, as well as a consumer representative and 
a former State insurance commissioner. The NAIC and NCOIL 
discussed the status of State-based regulation and reform 
initiatives. The American Council of Life Insurers focused 
mainly on the need for uniform policy standards and a single 
point of filing mechanism for life insurance policies. 
Property/casualty trade associations focused on problems in the 
approval of forms and rates and discussed the need for a 
market-oriented regulatory structure. The Consumer Federation 
of America and the former Illinois insurance director discussed 
the academic research on rate regulation including the 
experience of different States with their regulatory reform 
efforts.
    The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises held a hearing over several 
days in June, 2002 on insurance regulation entitled ``Insurance 
Regulation and Competition for the 21st Century''. The purpose 
of the hearing was to discuss the numerous issues the Committee 
will need to consider in analyzing proposals to increase the 
efficiency and uniformity of insurance regulation. At each day 
of the hearing, witnesses assessed these issues in light of the 
current regulatory structure and under various reform proposals 
for the future.
    On June 4, 2002, the Subcommittee focused on the history of 
insurance regulation (including the role of the State regulator 
associations and various modeling and rating entities), the 
economics of the industry (including how industry regulation is 
funded), and the role of alternative markets, State residual 
markets/disaster pools, risk retention groups, captives, and 
surplus lines providers. On June 11, 2002, the Subcommittee 
reviewed the insurance product approval process, efforts by the 
States to coordinate financial exams and the evolution of the 
NAIC's accreditation program, the importance of uniform U.S. 
insurance regulation in maintaining U.S. competitiveness in 
world trade and strengthening our negotiating position with the 
E.U. and other international markets, the various E.U. models 
for financial regulation, and international issues facing the 
reinsurance industry. On June 18, 2002, the Subcommittee 
analyzed regulatory models used in other financial services 
sectors and different reform philosophies, as well as market 
conduct regulation and consumer protection issues. In addition 
to addressing individual issues panelists discussed their 
support for or opposition to various reform proposals. 
Witnesses included State insurance regulators, consumers, 
agents and brokers, banks, financial services firms, and 
insurance companies.
    The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises continued its review of 
proposals to improve insurance regulation with a ``roundtable 
discussion'' on Insurance Regulatory Reform on September 17, 
2002. The Roundtable examined the entire gamut of reform 
philosophies and proposals including: State by State reforms, 
coordination of State regulation through the National 
Association of Insurance Commissioners, Federal promotion of 
State uniformity, and an optional Federal charter.

                          terrorism insurance

    The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises held a hearing on October 24, 
2001, entitled ``Protecting Policyholders from Terrorism: 
Private Sector Solutions.'' The hearing examined whether there 
was an impending availability crisis for terrorism insurance 
following September 11th and provided a forum to discuss 
possible solutions to any crisis. Witnesses testifying included 
Secretary of the Treasury Paul O'Neill and Glenn Hubbard, 
Chairman of the Council of Economic Advisers on the presence of 
a potential availability and affordability crisis for terrorism 
insurance; representatives from an airport which spoke to their 
inability to obtain affordable terrorism insurance at pre-
September 11 levels and the effect on the airport's business; 
an insurance broker, who analyzed the terrorism coverage 
market; and the General Accounting Office, which summarized a 
number of domestic and international approaches that have been 
used to address difficult-to-insure risks. Also testifying were 
academic experts, consumer groups, and insurance company 
executives who spoke to the pros and cons of various approaches 
that could be used to ensure terrorism insurance coverage for 
America's consumers and businesses.
    The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises continued a review of the 
various approaches that could be used to ensure terrorism 
insurance coverage on October 31, 2001, when it held a 
``roundtable discussion'' on Terrorism Risk Insurance. 
Participating in this event were representatives from Federal 
and State government, primary and reinsurance company 
representatives, academics, consumer groups, and commercial 
policyholders.

        risk based capital for government sponsored enterprises

    On Wednesday, August 1, 2001, the Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held a 
hearing to consider the Office of Federal Housing Enterprise 
Oversight (OFHEO) final rule on risk-based capital standards 
for Fannie Mae and Freddie Mac. The hearing was conducted 
pursuant to the Subcommittee's responsibilities under the 
Congressional Review Act for major rules. OFHEO's rule 
specifies the stress test to be used in determining the risk-
based capital requirement and, along with the minimum capital 
requirement, the capital classification for purposes of 
possible supervisory action. OFHEO's stress test will determine 
the amount of total capital each enterprise needs to survive a 
ten-year period of severe economic stress in the housing and 
credit markets. OFHEO's Director testified before the 
Subcommittee.

         subsidies for housing government sponsored enterprises

    On Wednesday, May 23, 2001, the Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held a 
hearing on Federal subsidies for the housing government 
sponsored enterprises (GSEs)--Fannie Mae, Freddie Mac, and the 
Federal Home Loan Banks. The purpose of the hearing was to 
receive an update from the Congressional Budget Office (CBO) of 
its 1996 estimate of the value of the subsidies provided by 
Congress to the housing GSEs. The GSEs benefit from their 
government ties through a funding advantage and tax and 
regulatory exemptions. CBO found that the housing GSEs receive 
a substantial Federal subsidy as a result of their special 
status, estimated to be $13.6 billion in 2000. CBO also found 
that the GSEs pass through some but not all of that subsidy to 
mortgage borrowers, about $7 billion in 2000. CBO's Director 
testified before the Subcommittee.
    On Wednesday, July 11, 2001, the Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held a 
second hearing on the CBO report on subsidies for the housing 
GSEs. Testifying before the Subcommittee were senior corporate 
officers from Fannie Mae and Freddie Mac and representatives 
from trade associations, consulting firms, and academia.

                   international accounting standards

    On Thursday, June 7, 2001, the Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held a 
hearing on promotion of international capital flow through 
accounting standards. The purpose of the hearing was to 
consider the issue of convergence in international financial 
reporting requirements and the impact of the establishment of 
international accounting standards on the world's capital 
markets and investors. The Subcommittee reviewed the work of 
international and domestic accounting standard setters to 
ensure that those standards promote fair and efficient capital 
flows, and to ensure that the standards facilitate investor 
access to the highest quality information about the capital 
markets and their participants. Testifying before the 
Subcommittee were representatives from an international 
accounting standards body, a corporation, and an accounting 
firm.

      review of voluntary agreement by fannie mae and freddie mac

    On Tuesday, March 27, 2001, the Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held a 
hearing to review the voluntary agreement by Fannie Mae and 
Freddie Mac on to improve their capitalization, information 
disclosure, and market discipline. The purpose of the hearing 
was to review the commitments made, the progress that Fannie 
Mae and Freddie Mac made to date, and plans for further 
implementation. Fannie Mae and Freddie Mac are privately owned, 
Federally chartered companies, created by Congress to 
supplement the flow of housing credit. Witnesses testifying 
before the Subcommittee were senior corporate officers from 
Fannie Mae and Freddie Mac.

                      market data and transparency

    On March 14th, 2001, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``Public Access to Market Data--Improving Transparency 
and Competition.'' The purpose of the hearing was to examine 
how current regulations could be changed to take advantage of 
modern technology to provide investors with more efficient and 
accurate information flows. The subcommittee examined how 
market data is disseminated, the transparency of information 
about the costs and revenues associated with market data 
dissemination, and the need for modernization of the regulatory 
structure governing the production and dissemination of market 
data.
    On July 26th, 2001, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``Market Data II: Implications to Investors and Market 
Transparency of Granting Ownership Rights over Stock Quotes.'' 
This hearing focused on the debate surrounding the regulations 
governing market data: the issue of whether market data 
consolidators, which have government-granted exclusive rights 
over market data distribution, need, or should receive, a new 
legal ownership right over the stock quotes that make up stock 
market data.

                   fair disclosure and regulation fd

    On May 17, 2001, The Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``Fair Disclosure or Flawed Disclosure: Is Reg FD 
helping or hurting investors.'' On August 10, 2000 the SEC 
adopted Regulation Fair Disclosure (Reg FD), a rule governing 
the disclosure of information by publicly traded companies. Reg 
FD requires companies to disclose all material nonpublic 
information at once. The purpose of the hearing was to examine 
whether Reg FD had been successful in reaching its objective to 
provide a level playing field regarding information access for 
all investors.

             wall street analysts and conflicts of interest

    On June 14th and July 31st, 2001 the Subcommittee on 
Capital Markets, Insurance, and Government Sponsored 
Enterprises held a hearing over two days entitled ``Analyzing 
the Analysts.'' The purpose of the hearings was to examine Wall 
St. research practices. On the first day, the Subcommittee 
heard from a broad range of witnesses assessing the question of 
whether conflicts of interest facing securities analysts 
preclude research that is objective and free of bias. On the 
second day, the subcommittee broadened the scope of its inquiry 
to examine the role of other participants in Wall Street 
research beyond analysts, such as institutional investors, 
corporate issuers, and the medial.

                           the enron collapse

    The Subcommittee on Capital Market, Insurance, and 
Government Sponsored Enterprises held 2 hearings entitled ``The 
Enron Collapse: Impact on Investors and Financial Markets'' to 
examine the implications of the Enron bankruptcy, the largest 
corporate bankruptcy in history at that time. The 
Subcommittee's investigation included such matters as: whether 
the current financial reporting and disclosure model is 
outdated and needs to be modernized so that investors can 
receive more transparent, useful, and timely information; 
whether the accounting profession requires greater oversight; 
why equity analysts failed to warn investors about Enron's 
decline; and whether credit rating agencies failed to downgrade 
Enron in a timely manner. The Subcommittee held a joint hearing 
with the Subcommittee on Oversight and Investigations on 
December 12, 2001, and a further hearing on February 4, 2002, 
and February 5, 2002.

               accounting reform and corporate governance

    On May 1 and 14, 2002, the Subcommittee held a hearing to 
review the generally accepted accounting principles and 
discretionary accounting practices that American companies use 
every day to report on their operations. Among those under 
critical review by regulators, Congress, and the press included 
principles and practices for reporting revenue from the sale of 
a business; changes to accounts receivable; company loans to 
corporate insiders; special accounting mechanisms designed to 
minimize taxes; and pension fund transactions. The Subcommittee 
also examined the adequacy of the current regulatory system to 
appropriately and timely assess the accuracy of financial 
reporting statements based on historical cost. Witnesses during 
the two hearings addressed the costs to investors and employees 
of reliance on GAAP-based financial statements; the theories 
behind many of the most controversial transactions and 
structures; and the potential impact of alternatives, including 
``value reporting,'' to the current GAAP-based model. Witnesses 
included the chief accountant of the SEC; the chairman of the 
Financial Accounting Standards Board; and other experts from 
academia, a financial analysis firm, a public interest group, 
and the Attorney General of the State of Ohio.

                             Hearings Held

    Saving Investors Money: Reducing Excessive SEC Fees. 
Hearing on saving investors money: reducing excessive SEC fees. 
March 7, 2001. PRINTED, serial no. 107-3.
    Public Access to Stock Market Data: Improving Transparency 
and Competition. Hearing entitled ``Public Access to Stock 
Market Data: Improving Transparency and Competition.'' March 
14, 2001. PRINTED, serial no. 107-5.
    Review of the Voluntary Agreement by Fannie Mae and Freddie 
Mac. Hearing on the review of the voluntary agreement by Fannie 
Mae and Freddie Mac. March 27, 2001. PRINTED, serial no. 107-7.
    Promotion of Capital Availability to American Businesses. 
Joint hearing with the Subcommittee on Financial Institutions 
and Consumer Credit on the promotion of capital availability to 
American businesses. April 4, 2001. PRINTED, serial no. 107-9.
    NARAB & Beyond. Hearing entitled ``NARAB & Beyond.'' May 
16, 2001. May 16, 2001. PRINTED, serial no. 107-17.
    Fair Disclosure or Flawed Disclsoure: Is Reg FD Helping or 
Hurting Investors? Hearing entitled ``Fair Disclosure or Flawed 
Disclsoure: Is Reg FD Helping or Hurting Investors?'' May 17, 
2001. PRINTED, serial no. 107-18.
    CBO Report on Federal Subsidies for the Housing GSEs. 
Hearing on the CBO report on Federal subsidies for the Housing 
GSEs. May 23, 2001. PRINTED, serial no. 107-20.
    Promotion of International Capital Flow through Accounting 
Standards. Hearing entitled ``Promotion of International 
Capital Flow through Accounting Standards.'' June 7, 2001. 
PRINTED, serial no. 107-22.
    Analyzing the Analysts. Hearing entitled ``Analyzing the 
Analysts.'' June 14 and July 31, 2001. PRINTED, serial no. 107-
25.
    Insurance Product Approval: The Need for Modernization. 
Hearing entitled ``Insurance Product Approval: The Need for 
Modernization.'' June 21, 2001. PRINTED, serial no. 107-28.
    Reforming Fannie Mae and Freddie Mac. Hearing on reforming 
Fannie Mae and Freddie Mac. July 11, 2001. PRINTED, serial no. 
107-32.
    Market Data: Implications to Investors. Hearing entitled 
``Market Data: Implications to Investors.'' July 26, 2001. 
PRINTED, serial no. 107-40.
    OFHEO Risk-Based Capital Rule. Hearing on the OFHEO risk-
based capital rule. August 1, 2001. PRINTED, serial no. 107-41.
    Pushing Back the Pushouts: The SEC's Broker-Dealer Rules. 
Joint hearing with the Subcommittee on Financial Institutions 
and Consumer Credit entitled ``Pushing Back the Pushouts: The 
SEC's Broker-Dealer Rules.'' August 2, 2001. PRINTED, serial 
no. 107-43.
    Protecting Policyholders from Terrorism: Private Sector 
Solutions. Hearing entitled ``Protecting Policyholders from 
Terrorism: Private Sector Solutions.'' October 24, 2001. 
PRINTED, serial no. 107-48.
    The Enron Collapse: Impact on Investors and Financial 
Markets. Joint hearing with the Subcommittee on Oversight and 
Investigations entitled ``The Enron Collapse: Impact on 
Investors and Financial Markets.'' December 12, 2001. PRINTED, 
serial no. 107-51, Part I.
    The Enron Collapse: Impact on Investors and Financial 
Markets. Hearing entitled ``The Enron Collapse: Impact on 
Investors and Financial Markets.'' February 4 and 5, 2002. 
PRINTED, serial no. 107-51, Part II.
    Corporate Accounting Practices: Is there a Credibility 
GAAP? Hearing entitled ``Corporate Accounting Practices: Is 
there a Credibility GAAP?'' May 1 and 14, 2002. PRINTED, serial 
no. 107-67.
    Insurance Regulation and Competition for the 21st Century. 
Hearing entitled ``Insurance Regulation and Competition for the 
21st Century.'' June 4, 11, and 18, 2002. Serial no. 107-72.
    Treasury's Policy on Housing Government Sponsored 
Enterprises. Hearing on the Department of the Treasury's policy 
on housing government sponsored enterprises. July 16, 2002. 
PRINTED, serial no. 107-75.
    OFHEO's Risk-Based Capital Stress Test for Fannie Mae and 
Freddie Mac. Hearing on the Office of Federal Housing 
Enterprise Oversight's risk-based capital stress test for 
Fannie Mae and Freddie Mac. July 23, 2001. PRINTED, serial no. 
107-79.
  SUBCOMMITTEE ON DOMESTIC MONETARY POLICY, TECHNOLOGY, AND ECONOMIC 
                                 GROWTH

                             (Ratio: 14-12)

                   PETER T. KING, New York, Chairman

JAMES A. LEACH, Iowa                 CAROLYN B. MALONEY, New York
  Vice Chairman                      BARNEY FRANK, Massachusetts
EDWARD R. ROYCE, California          GREGORY MEEKS, New York
FRANK D. LUCAS, Oklahoma             BERNIE SANDERS, Vermont
RON PAUL, Texas                      JAMES H. MALONEY, Connecticut
STEVEN C. LATOURETTE, Ohio           DARLENE HOOLEY, Oregon
DOUG OSE, California                 MAX SANDLIN, Texas
MARK GREEN, Wisconsin                CHARLIE GONZALEZ, Texas
CHRISTOPHER SHAYS, Connecticut       MICHAEL CAPUANO, Massachusetts
JOHN B. SHADEGG, Arizona             RUBEN HINOJOSA, Texas
VITO FOSSELLA, New York              WILLIAM LACY CLAY, Missouri
FELIX J. GRUCCI, Jr., New York       MIKE ROSS, Arkansas
MELISSA A. HART, Pennsylvania        JOHN J. LAFALCE, New York
SHELLEY MOORE CAPITO, West Virginia    Ex Officio
MICHAEL G. OXLEY, Ohio
  Ex Officio

                         Legislative Activities

                     general shelton gold medal act

                     Public Law 107-127 (H.R. 2751)

    To authorize the President to award a gold medal on behalf 
of the Congress to General Henry H. Shelton and to provide for 
the production of bronze duplicates of such medals for sale to 
the public.
Summary
    H.R. 2751, the General Shelton Gold Medal Act, authorizes 
the President to present, on behalf of the Congress, to General 
Henry H. Shelton a gold medal of appropriate design in 
recognition of his performance as a military leader in 
coordinating the planning, strategy, and execution of the 
United States and NATO combat action and his invaluable 
contributions to the United States and to the successful return 
to peace in the Balkans as Chairman of the Joint Chiefs of 
Staff.
Legislative History
    H.R. 2751 was introduced by Mr. Etheridge on August 2, 2001 
with 11 original cosponsors and referred to the House Committee 
on Financial Services. On August 24, 2001 the bill was referred 
to the Subcommittee on Domestic Monetary Policy, Technology and 
Economic Growth.
    On December 19, 2001, the House considered the bill under 
suspension of the rules and passed H.R. 2751 by a voice vote, 
with an amendment.
    On December 20, 2001 H.R. 2751 was received in the Senate, 
read twice, considered, read the third time, and passed without 
amendment by unanimous consent, clearing the bill for the White 
House. The bill was presented to the President on January 1, 
2002, and signed into law on January 16, 2002, becoming public 
law number 107-127.

   bureau of engraving and printing security printing amendments act

                         (H.R. 2509; H.R. 3004)

    To authorize the Secretary of the Treasury to produce 
currency, postage stamps, and other security documents at the 
request of foreign governments on a reimbursable basis.
Summary
    H.R. 2509 would authorize the Secretary of the Treasury to 
produce currency, postage stamps, and other security documents 
for foreign governments (subject to a determination by the 
Secretary of State that such production is consistent with U.S. 
foreign policy) on a reimbursable basis.
Legislative History
    H.R. 2509 was introduced by Mr. King on July 17, 2001 (by 
request), with one original cosponsor, and referred to the 
Committee on Financial Services. The bill was referred to the 
Subcommittee on Domestic Monetary Policy, Technology, and 
Economic Growth on July 31, 2001.
    The text of H.R. 2509 was included in H.R. 3004, the 
Financial Antiterrorism Act of 2001. While provisions of H.R. 
3004 were included in H.R. 3162, the USA PATRIOT Act, the 
specific provisions of H.R. 2509 were not. For further action 
on H.R. 3004, please see the entry for H.R. 3004 in the full 
Committee section.
    The bill was considered under suspension of the rules on 
March 19, 2002 and passed the House by a record vote of 403 
yeas and 11 nays. On March 20, 2002, H.R. 2509 was received in 
the Senate and read twice and referred to the Committee on 
Banking, Housing, and Urban Affairs. No further action was 
taken on this measure in the 107th Congress.

                        true american heroes act

                         (H.R. 3054; H.R. 5138)

    To award Congressional gold medals on behalf of government 
workers who responded to the attacks on the World Trade Center 
and perished and on behalf of people aboard United Airlines 
Flight 93 who helped resist the hijackers and caused the plane 
to crash.
Summary
    H.R. 3054, the True American Heroes Act, authorizes the 
President to present on behalf of Congress a gold medal to the 
next of kin or other representative of each officer, emergency 
worker, or employee of a State and local government agency, 
including the Port Authority of New York and New Jersey, and of 
the Federal Government, who responded to the attacks on the 
World Trade Center in New York City, and perished in the tragic 
events of September 11, 2001 (including those who are missing 
and presumed dead). The bill also authorizes the President to 
award posthumously, on behalf of Congress and in recognition of 
heroic service to the Nation, gold medals to any passengers or 
crew members on board United Airlines Flight 93 who are 
identified by the Attorney General as having aided in the 
effort to resist the hijackers on board the plane.
    Further, H.R. 3054 expresses the sense of Congress that the 
medals: (1) should be designed, struck, and presented within 90 
days after enactment of this Act; and (2) be struck at the U.S. 
Mint at West Point, New York, to the greatest extent possible. 
The bill also authorizes the Secretary of the Treasury to 
strike and sell bronze duplicates and requires that the 
proceeds from such sale to be deposited in a fund to be used to 
erect a memorial for the fallen emergency responders.
Legislative History
    H.R. 3054 was introduced on October 5, 2001 by Mr. King and 
one original cosponsor and referred to the Committee on 
Financial Services. The bill was referred to the Subcommittee 
on Domestic Monetary Policy, Technology and Economic Growth on 
November 2, 2001.
    On December 18, 2001, the House considered the bill under 
suspension of the rules and passed H.R. 3054 by a record vote 
of 392 yeas and 2 nays.
    On December 19, 2001 H.R. 3054 was received in the Senate 
and referred to the Committee on Banking, Housing, and Urban 
Affairs.
    On July 16, 2002, Mr. King introduced H.R. 5138, the True 
American Heroes Act of 2002, with 6 original cosponsors, and 
the bill was referred to the Committee on Financial Services. 
The text of the bill was similar to H.R. 3054, but included 
provisions intended to respond to certain concerns raised by 
members of the Senate. On July 22, 2002, the House considered 
the bill under suspension of the rules and the bill passed by a 
voice vote. H.R. 5138 was received in the Senate and referred 
to the Senate Committee on Banking, Housing, and Urban Affairs 
on July 23, 2002.
    No further action was taken on either measure in the 107th 
Congress.

                      code talkers recognition act

                              (H.R. 3250)

    To authorize the presentation of gold medals on behalf of 
Congress to Native Americans who served as Code Talkers during 
foreign conflicts in which the United States was involved 
during the 20th Century in recognition of their service to the 
nation.
Summary
    H.R. 3250 declares that the purposes of the medals 
authorized by this Act are to express recognition by the United 
States and its citizens and to honor the Native American Code 
Talkers who distinguished themselves in performing highly 
successful communications operations that greatly assisted in 
saving countless lives and in hastening the end of World War I 
and World War II.
    The bill provides for the award on behalf of Congress 
(where appropriate, posthumously) of a congressional gold medal 
to named Sioux Indians who served as Sioux Code Talkers during 
World War II, to named Comanche Code Talkers of World War II in 
recognition of their contributions to the Nation, and to the 
Choctaw Code Talkers who transmitted information in their 
native language which was highly successful in saving men and 
munitions during World War I.
    Further, H.R. 3250 authorizes the Secretary of the Treasury 
to strike and sell duplicates in bronze of the gold medals 
struck under this Act and to deposit the proceeds in the United 
States Mint Public Enterprise Fund to pay for the costs of the 
medals awarded under the legislation.
Legislative History
    H.R. 3250 was introduced by Mr. Thune on November 7, 2001 
and referred to the House Committee on Financial Services. On 
November 19, 2001, the bill was referred to the Subcommittee on 
Domestic Monetary Policy, Technology, and Economic Growth.
    On June 18, 2002, the House considered the bill under 
suspension of the rules and passed the bill, with an amendment, 
by a voice vote.
    The bill was received in the Senate and referred to the 
Committee on Banking, Housing, and Urban Affairs. No further 
action was taken on this measure in the 107th Congress.

                          Oversight Activities

         reauthorization of the defense production act of 1950

    On June 13, 2001, the Subcommittee on Domestic Monetary 
Policy, Technology and Economic Growth held a hearing on the 
reauthorization of the Defense Production Act of 1950. As part 
of its economic development portfolio, the Committee has sole 
jurisdiction over the DPA, which uses economic tools to provide 
prompt, adequate and uninterrupted supplies of industrial 
resources, including transportation, to satisfy both national 
security needs and needs arising from civil emergencies. The 
Act would have expired at the end of fiscal year 2001.

                    design and security of currency

    On July 24,, 2001, the Subcommittee on Domestic Monetary 
Policy, Technology and Economic Growth held a hearing on the 
Design and Security of Currency. The hearing focused on efforts 
to make United States currency as resistant to counterfeiting 
as possible and on the impending introduction in 2003 of a new 
series of American currency with anti-counterfeiting features, 
including colored inks not before seen on U.S. currency. 
Witnesses also testified on the merits of H.R. 2509, the Bureau 
of Engraving and Printing Security Printing Amendments Act of 
2001, and on H.R. 1021, the Liberty Bill Act.

              beyond the tax cuts: unleashing the economy

    On March 29, 2001, the Subcommittee on Domestic Monetary 
Policy, Technology and Economic Growth held a hearing entitled 
``Beyond the Tax Cuts: Unleashing the Economy.'' The hearing 
focused on additional economic stimuli needed--in addition to 
the Administration's then-proposed tax-relief package--to 
restore confidence in and ensure the long-term health of the 
economy. Witnesses included the Majority Leader of the House, 
Mr. Armey; E. Floyd Kvamme, Co-Chairman of the President's 
Council of Advisors for Science and Technology; Lawrence 
Kudlow, CEO of Kudlow & Co., LLP; James Glassman, resident 
fellow at the American Enterprise Institute; and Dr. Martin 
Baily, senior fellow at the International Institute for 
Economics.

      encouraging capital formation in key sectors of the economy

    On April 18, 2002, the Subcommittee on Domestic Monetary 
Policy, Technology and Economic Growth held a hearing on 
``Encouraging Capital Formation in Key Sectors of the 
Economy.'' The hearing focused on what measures Congress can 
undertake to promote economic growth and foster competition in 
two key areas vital to American competitiveness. The hearing 
examined ongoing Federal efforts in areas related to the energy 
and telecommunications industries that have profound impacts on 
the ability--or lack thereof--of market participants to attract 
capital, and the failure of Congress to be responsive to new 
developments in these sectors.

 encouraging the use of electronic signatures in the financial industry

    On June 28, 2001 the Subcommittee on Domestic Monetary 
Policy, Technology and Economic Growth heard testimony on a 
joint report by the Federal Trade Commission and the Department 
of Commerce that had been mandated by section 105(b) of the 
ESIGN Act (Public Law 106-229). The study focused on the 
``reasonable demonstration'' requirements of the consumer 
consent provisions in the ESIGN Act. The FTC testified that it 
was too soon to make an affirmative determination of the effect 
the ``reasonable demonstration'' requirements had on the usage 
of electronic signatures. Witnesses included representatives of 
the Federal Trade Commission, the American Insurance 
Association, Alston & Bird LLC, the Electronic Financial 
Services Council, the Financial Services Roundtable and 
Consumers Union.

                             Hearings Held

    Beyond the Tax Cut: Unleashing the Economy. Hearing 
entitled ``Beyond the Tax Cut: Unleashing the Economy.'' March 
29, 2001. PRINTED, serial no. 107-8.
    Reauthorization of the Defense Production Act. Hearing on 
the reauthorization of the Defense Production Act of 1950. June 
13, 2001. PRINTED, serial no. 107-24.
    ESIGN--Encouraging the Use of Electronic Signatures in the 
Financial Services Industry. Hearing entitled ``ESIGN--
Encouraging the Use of Electronic Signatures in the Financial 
Services Industry.'' June 28, 2001. PRINTED, serial no. 107-31.
    Design and Security of Currency. Hearing on the design and 
security of currency. July 24, 2001. PRINTED, 107-38.
    Encouraging Capital Formation in Key Sectors of the 
Economy. Hearing entitled ``Encouraging Capital Formation in 
Key Sectors of the Economy.'' April 18, 2002. PRINTED, serial 
no. 107-66
       SUBCOMMITTEE ON FINANCIAL INSTITUTIONS AND CONSUMER CREDIT

                             (Ratio: 25-22)

                   SPENCER BACHUS, Alabama, Chairman

DAVE WELDON, Florida                 MAXINE WATERS, California
  Vice Chairman                      CAROLYN MALONEY, New York
MARGE ROUKEMA, New Jersey            MELVIN WATT, North Carolina
DOUG BEREUTER, Nebraska              GARY ACKERMAN, New York
RICHARD H. BAKER, Louisiana          KEN BENTSEN, Texas
MICHAEL N. CASTLE, Deleware          BRAD SHERMAN, California
EDWARD R. ROYCE, California          MAX SANDLIN, Texas
FRANK D. LUCAS, Oklahoma             GREGORY MEEKS, New York
BOB BARR, Georgia                    LUIS GUTIERREZ, Illinois
SUE W. KELLY, New York               FRANK MASCARA, Pennsylvania
PAUL E. GILLMOR, Ohio                DENNIS MOORE, Kansas
JIM RYUN, Kansas                     CHARLES A. GONZALEZ, Texas
BOB RILEY, Alabama                   PAUL KANJORSKI, Pennsylvania
STEVEN C. LATOURETTE, Ohio           NYDIA M. VELAZQUEZ, New York
DONALD A. MANZULLO, Illinois         JAMES H. MALONEY, Connecticut
WALTER B. JONES, North Carolina      DARLENE HOOLEY, Oregon
JUDY BIGGERT, Illinois               JULIA CARSON, Indiana
PATRICK J. TOOMEY, Pennsylvania      HAROLD E. FORD, JR., Tennesee
ERIC CANTOR, Virginia                RUBEN HINOJOSA, Texas
FELIX J. GRUCCI, JR., New York       KEN LUCAS, Kentucky
MELISSA A. HART, Pennsylvania        RONNIE SHOWS, Mississippi
SHELLEY MOORE CAPITO, West Virginia  JOSEPH CROWLEY, New York
MIKE FERGUSON, New Jersey            JOHN J. LAFALCE, New York
MIKE ROGERS, Michigan                  Ex Officio
PATRICK J. TIBERI, Ohio
MICHAEL G. OXLEY, Ohio
  Ex Officio

                         Legislative Activities

           unlawful internet gambling funding prohibition act

                               (H.R. 556)

    To prevent the use of certain bank instruments for unlawful 
Internet gambling, and for other purposes.
Summary
    H.R. 556, the Unlawful Internet Gambling Funding 
Prohibition Act, prohibits the acceptance of any bank 
instrument for unlawful Internet gambling. It defines certain 
terms for purposes of the Act; establishes civil remedies, 
criminal penalties, and regulatory enforcement authorities; 
encourages cooperation by foreign governments in the 
enforcement of the Act; and requires the Secretary of the 
Treasury to report annually to Congress on deliberations 
between the United States and other countries on issues 
relating to Internet gambling. Its primary purpose is to give 
U.S. law enforcement a new, more effective, tool for combating 
offshore Internet gambling sites that illegally extend their 
services to U.S. citizens via the Internet.
Legislative History
    H.R. 556 was introduced by Mr. Leach on February 12, 2001, 
and referred to the Committee on Financial Services, and was 
additionally referred to the Committee on the Judiciary.
    The Financial Services Committee's Subcommittee on 
Financial Institutions and Consumer Credit held a hearing on 
July 24, 2001 on H.R. 556 and other Internet gambling 
proposals.
    On October 31, 2001, the Subcommittee on Financial 
Institutions and Consumer Credit was discharged from the 
further consideration of H.R. 556 by unanimous consent and the 
Committee on Financial Services met in open session and ordered 
H.R. 556 reported to the House with a favorable recommendation, 
with an amendment, by a record vote of 34 yeas and 18 nays. The 
bill was reported to the House by the Committee on Financial 
Services on December 13, 2001 (H. Rept. 107-339, Part I).
    The Judiciary Committee's Subcommittee on Crime held a 
hearing on November 29, 2001 on H.R. 556 and on H.R. 3215, the 
Combating Illegal Gambling Reform and Modernization Act, a bill 
on the same topic.
    On December 13, 2001, the Committee on Judiciary was 
granted an extension for further consideration of H.R. 556 
ending not later than December 21, 2001. On December 20, 2001, 
the Committee on Judiciary was granted an extension for further 
consideration of H.R. 556 ending not later than March 29, 2002. 
The Committee on the Judiciary was discharged from the further 
consideration of the bill on March 29, 2002.
    On March 21, 2002, the House considered H.R. 556 under 
suspension of the rules and passed the bill by a voice vote. On 
October 2, 2002, the bill was received in the Senate and 
referred to the Committee on the Judiciary. No further action 
was taken on this measure in the 107th Congress.

                 consumer rental purchase agreement act

                              (H.R. 1701)

    To amend the Consumer Credit Protection Act to assure 
meaningful disclosures of the terms of rental-purchase 
agreements, including disclosures of all costs to consumers 
under such agreements, to provide certain substantive rights to 
consumers under such agreements, and for other purposes.
Summary
    H.R. 1701, the Consumer Rental Purchase Agreement Act, 
establishes certain minimum standards governing rental-purchase 
transactions, in which consumers rent merchandise on a week-to-
week or month-to-month basis, usually with no down payment 
required, and are free to terminate the arrangement at the end 
of any rental period. H.R. 1701 requires the merchant in a 
rent-to-own transaction to make a comprehensive set of 
disclosures regarding the total cost of the transaction to the 
consumer. The bill sets a Federal floor of protections in 
rental-purchase transactions, while leaving undisturbed those 
State laws that are determined by Federal regulators to offer 
greater protections to consumers. H.R. 1701 establishes as a 
matter of Federal law that rental-purchase transactions are 
leases rather than credit sales, consistent with their 
treatment under the laws of 46 of the 50 States. The treatment 
of these transactions as credit sales by 4 States would be 
preempted.
Legislative History
    H.R. 1701 was introduced in the House on May 3, 2001, by 
Mr. Jones of North Carolina and 12 original cosponsors. The 
bill was referred to the Committee on Financial Services. On 
May 14, 2001, the bill was referred to the Subcommittee on 
Financial Institutions and Consumer Credit.
    On July 12, 2001, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing on H.R. 1701.
    The Subcommittee on Financial Institutions and Consumer 
Credit met in open session on September 6 and November 28, 
2001, and approved H.R. 1701 for full Committee consideration, 
as amended, by a record vote of 24 yeas and 4 nays.
    The Committee on Financial Services met in open session on 
June 26 and 27, 2002, and ordered H.R. 1701 reported to the 
House with a favorable recommendation, with an amendment, by a 
record vote of 29 yeas and 9 nays. The Committee on Financial 
Services reported the bill to the House on July 18, 2002 (H. 
Rept. 107-590, Part I).
    H.R. 1701 was sequentially referred to the Committee on the 
Judiciary which met in open session on September 5, 2002, and 
ordered H.R. 1701 reported to the House with a favorable 
recommendation by a record vote of 14 yeas and 12 nays. The 
Committee on the Judiciary reported the bill to the House on 
September 9, 2002 (H. Rept. 107-590, Part II).
    On September 17, 2002, the Committee on Rules reported a 
modified closed rule providing for the consideration of H.R. 
1701 (H. Res. 528). On September 18, 2002, H. Res. 528 passed 
the House by a record vote of 213 yeas and 178 nays. The House 
considered H.R. 1701 pursuant to the rule, and passed the bill 
by a record vote of 215 yeas and 201 nays.
    On September 19, 2002, H.R. 556 was received in the Senate 
and referred to the Senate Committee on Banking, Housing, and 
Urban Affairs. No further action was taken on this measure in 
the 107th Congress.

                  community choice in real estate act

                              (H.R. 3424)

    To amend the Bank Holding Company Act of 1956 and the 
Revised Statutes of the United States to prohibit financial 
holding companies and national banks from engaging, directly or 
indirectly, in real estate brokerage or real estate management 
activities, and for other purposes.
Summary
    H.R. 3424, the Community Choice in Real Estate Act, amends 
the Bank Holding Company Act of 1956 and the Revised Statutes 
of the United States to prohibit the Board of Governors of the 
Federal Reserve System and the Secretary of the Treasury, 
respectively, from making a determination that real estate 
brokerage activity or real estate management activity is an 
activity that is either financial in nature or incidental to 
any financial activity, or is complementary to a financial 
activity.
Legislative History
    H.R. 3424 was introduced in the House on December 6, 2001, 
by Mr. Calvert and 32 original cosponsors and referred to the 
Committee on Financial Services. On December 27, 2001, the bill 
was referred to the Subcommittee on Financial Institutions and 
Consumer Credit.
    On July 24, 2002, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing on H.R. 3424. 
No further action was taken on this measure during the 107th 
Congress.

            financial services regulatory relief act of 2002

                              (H.R. 3951)

    To provide regulatory relief and improve productivity for 
insured depository institutions, and for other purposes.
Summary
    H.R. 3951 will alter or eliminate statutory banking 
provisions in order to lessen the regulatory compliance burden 
on insured depository institutions and improve their 
productivity, as well as to make needed technical corrections 
to current statutes. It is also intended to counterbalance the 
additional regulatory burden placed on insured depository 
institutions in the USA PATRIOT Act to focus their compliance 
efforts on combating money laundering and terrorist financing. 
H.R. 3951 would allow financial institutions to devote more 
resources to the business of lending to consumers and less to 
compliance with outdated and unneeded regulations.
Legislative History
    H.R. 3951, the Financial Services Regulatory Relief Act of 
2002, was introduced by Ms. Capito and 3 original cosponsors on 
March 13, 2002, and was referred to the Committee on Financial 
Services. The bill was referred to the Subcommittee on 
Financial Institutions and Consumer Credit on March 14, 2002.
    The Subcommittee on Financial Institutions and Consumer 
Credit held a legislative hearing on H.R. 3951 on March 14 and 
April 25, 2002.
    On May 8, 2002, the Subcommittee on Financial Institutions 
and Consumer Credit met in open session and approved H.R. 3951 
for full Committee consideration, as amended, by a voice vote.
    On June 6, 2002, the Committee on Financial Services met in 
open session and ordered H.R. 3951 reported to the House with a 
favorable recommendation, with an amendment, by a voice vote. 
The Committee reported the bill to the House on June 18, 2002 
(H. Rept. 107-516, Part I).
    H.R. 3951 was sequentially referred to the Committee on the 
Judiciary and, on July 17, 2002, that committee met in open 
session and ordered H.R. 3951 reported to the House with a 
favorable recommendation, with an amendment, by a voice vote. 
The Committee on the Judiciary reported the bill to the House 
on July 22, 2002 (H. Rept. 107-516, Part II).
    No further action was taken on this measure in the 107th 
Congress.

                check clearing for the 21st century act

                              (H.R. 5414)

    To facilitate check truncation by authorizing substitute 
checks, to foster innovation in the check collection system 
without mandating receipt of checks in electronic form, and to 
improve the overall efficiency of the Nation's payments system, 
and for other purposes.
Summary
    H.R. 5414, the Check Clearing for the 21st Century Act, 
will promote greater efficiency in the overall payments system 
and reduce the system's current reliance on the nation's 
transportation grid. H.R. 5414 is a proposal to modernize the 
check clearing process by removing legal impediments to 
electronic check processing. After the September 11, 2001, 
terrorist attacks on America, when the air traffic system was 
brought to a standstill for several days, the check collection 
process experienced significant disruptions.
Legislative History
    H.R. 5414 was introduced on September 19, 2002 by Mr. 
Ferguson and one original cosponsor, and was referred to the 
Committee on Financial Services. On September 23, 2002 the bill 
was referred to the Subcommittee on Financial Institutions and 
Consumer Credit.
    On September 25, 2002, the Subcommittee on Financial 
Institutions and Consumer Credit held a legislative hearing on 
H.R. 5414, the Check Clearing for the 21st Century Act.
    No further action was taken on this measure in the 107th 
Congress.

              federal deposit insurance reform act of 2002

                              (H.R. 3717)

    To reform the Federal deposit insurance system, and for 
other purposes.
Summary
    H.R. 3717, the Federal Deposit Insurance Reform Act of 
2002, will preserve the value of insured deposits at insured 
depository institutions, advance the national priority of 
enhancing retirement security for all Americans, and ensure 
that the value, benefit and costs of deposit insurance are 
allocated equitably and fairly. The bill merges the Bank 
Insurance Fund (BIF) and the Savings Association Insurance Fund 
(SAIF); increases the standard maximum deposit insurance limit 
from $100,000 to $130,000, and indexes it every 5 years for 
inflation; doubles the new coverage level for certain 
retirement accounts; and increases the coverage amount for in-
State municipal deposits. Federally chartered credit unions are 
provided with parity in general standard maximum deposit 
insurance coverage, coverage for retirement accounts and 
municipal deposits.
    H.R. 3717 removes legal constraints on the authority of the 
Federal Deposit Insurance Corporation (FDIC) to charge risk-
based premium assessments, so that all insured depository 
institutions pay for the value and benefit of deposit insurance 
fairly and equitably. The legislation authorizes the FDIC to 
set the ratio of reserves to estimated insured deposits within 
a range of 1.15-1.40 percent, replacing the 1.25 percent ''hard 
target'' mandated by current law. The bill also returns 
assessments in the form of refunds, credits, and dividends to 
insured depository institutions for overpayments they have made 
and/or whenever the fund's level is considered strong and the 
financial and economic outlook is considered favorable. 
Dividends are provided to qualified insured depository 
institutions whenever the upper limits of the designated 
reserve ratio (DRR) are exceeded.
    Finally, the legislation directs the FDIC to study its 
administrative and managerial processes and alternative means 
for administering the deposit insurance system. These studies 
will ensure that the deposit insurance fund and the overall 
deposit insurance system are managed and operated as 
efficiently and as effectively as possible.
Legislative History
    H.R. 3717, the Federal Deposit Insurance Reform Act of 
2002, was introduced on February 12, 2002 by Mr. Bachus and 15 
original cosponsors and referred to the Committee on Financial 
Services. The bill was referred to the Subcommittee on 
Financial Institutions and Consumer Credit on March 1, 2002.
    The Subcommittee on Financial Institutions and Consumer 
Credit met in open session on March 7, 2002 and approved H.R. 
3717 for full Committee consideration, as amended, by a voice 
vote.
    The Committee on Financial Services met in open session on 
April 17, 2002 and ordered H.R. 3717 reported to the House with 
an amendment by a record vote of 52 yeas and 2 nays.
    The House considered H.R. 3717 under suspension of the 
rules and passed the bill by a record vote of 408 yeas and 18 
nays. H.R. 3717 was received in the Senate on May 23, 2002 and 
referred to the Committee on Banking, Housing, and Urban 
Affairs. No further action was taken on this measure in the 
107th Congress.

                     business freedom checking act

                              (H.R. 1009)

    To repeal the prohibition on the payment of interest on 
demand deposits.
Summary
    H.R. 1009, the Business Checking Freedom Act of 2002, 
permits the payment of interest on business checking accounts 
held by businesses, and allow up to 24 transfers per month 
between accounts by any account holder. Current law forbids 
such accounts from drawing interest. The legislation also 
authorizes the Federal Reserve to pay interest on deposits with 
a Federal Reserve Bank that a bank is required by law to hold 
as reserves against customer deposits. The legislation directs 
the Federal Reserve to conduct a survey of bank fees and 
services. The legislation would also require the Federal 
Reserve to transfer surplus funds to the general fund of the 
Treasury.
Legislative History
    H.R. 1009 was introduced in the House on March 13, 2001 by 
Mr. Toomey with 6 original cosponsors and referred to the 
Committee on Financial Services. The bill was referred to the 
Subcommittee on Financial Institutions and Consumer Credit on 
March 21, 2001.
    The Subcommittee on Financial Institutions and Consumer 
Credit met in open session on March 21, 2001, and approved H.R. 
1009 for full Committee consideration by a voice vote. On March 
28, 2001, the Committee on Financial Services met in open 
markup session and approved an amendment to H.R. 974, the Small 
Business Interest Checking Act of 2001, containing the text of 
H.R. 1009. Accordingly, the Committee laid H.R. 1009 upon the 
table by unanimous consent.
    Due to Senate inaction on H.R. 974, on April 9, 2002 the 
House considered H.R. 1009 under suspension of the rules and 
passed the bill by a voice vote. No further action was taken on 
the measure in the 107th Congress.

                  small business interest checking act

                               (H.R. 974)

    To increase the number of interaccount transfers which may 
be made from business accounts at depository institutions, to 
authorize the Board of Governors of the Federal Reserve System 
to pay interest on reserves, and for other purposes.
Summary
    H.R. 974, the Small Business Interest Checking Act of 2001, 
permits the payment of interest on business checking accounts 
held. Current law forbids such accounts from drawing interest. 
The legislation also authorizes the Federal Reserve to pay 
interest on deposits with a Federal Reserve Bank that a bank is 
required by law to hold as reserves against customer deposits. 
Current law does not provide for interest payments on such 
deposits, leading to the characterization of such deposits as 
``sterile reserves''. By allowing the Federal Reserve to pay 
interest on such deposits, H.R. 974 would create an incentive 
for banks to avoid circumventing the reserve deposit 
requirement, and would help the Federal Reserve conduct 
monetary policy. The legislation would also require the Federal 
Reserve to transfer surplus funds to the general fund of the 
Treasury.
Legislative History
    H.R. 974 was introduced on March 13, 2001 by Ms. Kelly and 
2 original cosponsors, and was referred to the Committee on 
Financial Services. On March 20, 2002, the bill was referred to 
the Subcommittee on Financial Institutions and Consumer Credit.
    The Subcommittee on Financial Institutions and Consumer 
Credit met in open session on March 21, 2001, and approved H.R. 
974 for full Committee consideration by a voice vote. On March 
28, 2001, the Committee on Financial Services met in open 
markup session and ordered H.R. 974 reported to the House with 
an amendment consisting of the text of H.R. 1009, the Small 
Business Interest Checking Act of 2001. The Committee on 
Financial Services reported the measure to the House on April 
3, 2001 (H. Rept. 107-38). On April 3, 2001 the House 
considered the bill under suspension of the rules and passed 
H.R. 974 by a voice vote. No further action was taken on this 
measure in the 107th Congress.

                          Oversight Activities

 giving consumers credit: how is the credit card industry treating its 
                               customers?

    On November 1, 2001, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing on credit card 
industry practices. Among the issues addressed were how the 
credit card industry sets interest rates and how these rates 
compare to the cost of other forms of consumer credit; the 
processing practices of the industry, including the posting of 
payments and the handling of customer complaints; industry 
compliance with Federal consumer protection laws; and the 
credit card industry's treatment of customers whose mail 
service was disrupted by the terrorist attacks of September 11, 
2001, and subsequent episodes of bioterrorism. Witnesses 
testifying at the hearing included officials from the Federal 
Reserve Board and the Federal Trade Commission, as well as 
representatives of various consumer groups and major credit 
card associations, including MasterCard International and VISA 
U.S.A.

                     recovering dictators' plunder

    On May 9, 2002, the Subcommittee on Financial Institutions 
and Consumer Credit held a hearing on international efforts to 
facilitate the recovery of assets looted from countries by 
corrupt foreign officials. Official corruption has had a 
debilitating impact in many parts of the developing world, 
exacerbating poverty, disease, and malnutrition, as well as 
creating the conditions of despair and resentment in which 
terrorism is more likely to breed. The hearing focused on 
strategies for tracing and repatriating the proceeds of 
corruption, including the successful efforts of the Swiss 
government to arrange the return to Nigeria of nearly a billion 
dollars allegedly stolen by that country's former military 
ruler Sani Abacha. The hearing featured testimony by private 
sector experts on corruption, financial crime, and asset 
recovery.

                             Hearings Held

    Protecting Consumers: What Can Congress Do to Help 
Financial Regulators Coordinate Efforts to Fight Fraud? Joint 
hearing with the Subcommittee on Oversight and Investigations. 
March 6, 2001. PRINTED, serial no. 107-2.
    Proposals to Permit Payment of Interest on Business 
Checking Accounts and Sterile Reserves Maintained at Federal 
Reserve Banks. Hearing on proposals to permit payment of 
interest on business checking accounts and sterile reserves 
maintained at Federal reserve banks. March 13, 2001. PRINTED, 
serial no. 107-4.
    Promotion of Capital Availability to American Businesses. 
Joint hearing with the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises on the 
promotion of capital availability to American businesses. April 
4, 2001. PRINTED, serial no. 107-9.
    Federal Reserve Board and Treasury Department Rule 
Proposal. Hearing on the rule proposal of the Federal Reserve 
Board and the Treasury Department. May 2, 2001. PRINTED, serial 
no. 107-12.
    Deposit Insurance Reform. Hearing on deposit insurance 
reform. May 16, 2001. PRINTED, serial no. 107-16.
    Consumer Rental Purchase Agreement Act. Legislative hearing 
on H.R. 1701, the Consumer Rental Purchase Agreement Act. July 
12, 2001. PRINTED, serial no. 107-33.
    Unlawful Internet Gambling Funding Prohibition Act. 
Legislative hearing on H.R. 556, the Unlawful Internet Gambling 
Funding Prohibition Act and other Internet gambling proposals. 
July 24, 2001. PRINTED, serial no. 107-37.
    Viewpoints of Select Regulators on Deposit Insurance 
Reform. Hearing entitled ``Viewpoints of Select Regulators of 
Deposit Insurance Reform.'' July 26, 2001. PRINTED, serial no. 
107-39.
    Pushing Back the Pushouts: the SEC's Broker Dealer Rules. 
Joint hearing with the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises entitled 
``Pushing Back the Pushouts: the SEC's Broker Dealer Rules.'' 
August 2, 2001. PRINTED, serial no. 107-43.
    Viewpoints of the FDIC and Select Industry Experts on 
Deposit Insurance Reform. Hearing entitled ``Viewpoints of the 
FDIC and Select Industry Experts on Deposit Insurance Reform. 
October 17, 2001. PRINTED, serial no. 107-47.
    Giving Consumers Credit: How is the Credit Card Industry 
Treating its Customers? Hearing entitled ``Giving Consumers 
Credit: How is the Credit Card Industry Treating its 
Customers?'' November 1, 2001. PRINTED, serial no. 107-49.
    Financial Services Regulatory Relief Act. Legislative 
hearing on H.R. 3951, the Financial Services Regulatory Relief 
Act of 2002. March 14 and April 25, 2002. PRINTED, serial no. 
107-62.
    Recovering Dictators' Plunder Hearing on recovering 
dictator's plunder. May 9, 2002. PRINTED, serial no. 107-69.
    Community Choice in Real Estate Act. Legislative hearing on 
H.R. 3424, the Community Choice in Real Estate Act. July 24, 
2002. Serial no. 107-80.
    Check Clearing for the 21st Century Act Legislative hearing 
on H.R. 5414, the Check Clearing for the 21st Century Act. 
September 25, 2002. Serial no. 107-84.
           SUBCOMMITTEE ON HOUSING AND COMMUNITY OPPORTUNITY

                             (Ratio: 14-12)

                    MARGE ROUKEMA, New Jersey, Chair

MARK GREEN, Wisconsin                BARNEY FRANK, Massachusetts
  Vice Chairman                      NYDIA VELAZQUEZ, New York
DOUG BEREUTER, Nebraska              JULIA CARSON, Indiana
SPENCER BACHUS, Alabama              BARBARA LEE, California
PETER T. KING, New York              JAN SCHAKOWSKY, Illinois
ROBERT W. NEY, Ohio                  STEPHANIE TUBBS JONES, Ohio
BOB BARR, Georgia                    MICHAEL CAPUANO, Massachusetts
SUE W. KELLY, New York               MAXINE WATERS, California
BOB RILEY, Alabama                   BERNARD SANDERS, Vermont*
GARY G. MILLER, California           MELVIN WATT, North Carolina
ERIC CANTOR, Virginia                WILLIAM LACY CLAY, Missouri
FELIX J. GRUCCI, JR., New York       STEVE ISRAEL, New York
MIKE ROGERS, Michigan                JOHN J. LAFALCE, New York
PATRICK J. TIBERI, Ohio                Ex Officio
MICHAEL G. OXLEY, Ohio
  Ex Officio
---------------------------------------------------------------------------
    * Mr. Sanders is an independent, but caucuses with the Democratic 
Caucus.
---------------------------------------------------------------------------

                         Legislative Activities

                       manufactured housing fees

                      Public Law 107-18 (S. 1029)

    A bill to clarify the authority of the Department of 
Housing and Urban Development with respect to the use of fees 
during fiscal year 2001 for the manufactured housing program.
Summary
    S. 1029 clarifies the authority of the Department of 
Housing and Urban Development on the use of fees during FY 2001 
for the manufactured housing program.
Legislative History
    On June 13, 2001, Mr. Sarbanes introduced S. 1029 in the 
Senate with 10 original cosponsors and the Senate passed the 
bill by unanimous consent. On June 14, the bill was received in 
the House.
    On June 20, 2001, the House considered the bill under 
suspension of the rules and passed the bill by a voice vote, 
clearing S. 1029 for the White House. The bill was presented to 
the President on June 26, 2001 and signed into law on July 5, 
2001, becoming public law number 107-18.

       fha multifamily housing mortgage loan limit adjustment act

                Public Law 107-73 (H.R. 1629; H.R. 2620)

    To increase the mortgage loan limits under the National 
Housing Act for multifamily housing mortgage insurance.
Summary
    H.R. 1629, the FHA Multifamily Housing Mortgage Loan Limit 
Adjustment Act of 2001, amends the National Housing Act to 
increase the mortgage loan limits for housing mortgage 
insurance.
Legislative History
    H.R. 1629, the FHA Multifamily Housing Mortgage Loan Limit 
Adjustment Act of 2001, was introduced by Mrs. Roukema and one 
original cosponsor on April 26, 2001 and referred to the 
Committee on Financial Services. The bill was referred to the 
Subcommittee on Housing and Community Opportunity on May 10, 
2001.
    The text of the measure was included in section 213 of H.R. 
2620, the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 2002. 
The conference report to accompany H.R. 2620 was considered by 
the House on November 8, 2001, and agreed to by a record vote 
of 401 yeas and 18 nays. The Senate considered the conference 
report by unanimous consent on November 8, 2001 and agreed to 
the conference report by a record vote of 87 yeas and 7 nays, 
clearing the bill for the White House.
    The bill was presented to the President on November 15, 
2001, and signed into law on November 26, 2001, becoming public 
law 107-73.

                    seniors commission extension act

                Public Law 108-73 (H.R. 1850; H.R. 2620)

    To extend the Commission on Affordable Housing and Health 
Facility Needs for Seniors in the 21st Century and to make 
technical corrections to the law governing the Commission.
Summary
    H.R. 1850, the Senior Housing Commission Extension Act of 
2001 would make a technical correction to extend the dates 
authorizing the Commission's reporting date from December 21, 
2001 to December 31, 2002; extend the Commission termination 
date from June 30, 2002, to March 31, 2003. In addition, H.R. 
1850 gives the Commission the authority to use employees from 
any agency to assist in its completion of the report on a non-
reimbursable nature.
Legislative History
    H.R. 1850, the Senior Housing Commission Extension Act of 
2001, was introduced by Mrs. Roukema and one original cosponsor 
on May 15, 2001 and referred to the Committee on Financial 
Services. The bill was referred to the Subcommittee on Housing 
and Community Opportunity on May 29, 2001.
    On June 27, 2001, the Subcommittee on Housing and Community 
Opportunity was discharged from the further consideration of 
H.R. 1850 by unanimous consent and the full Committee met in 
open session to consider H.R. 1850. The Committee ordered H.R. 
1850 reported to the House with a favorable recommendation by a 
voice vote. The Committee reported the bill to the House on 
July 19, 2001 (H. Rept. 107-147).
    On September 24, 2001, the House considered H.R. 1850 under 
suspension of the rules and passed the bill by a voice vote. 
The bill was received in the Senate on September 25, 2001 and 
referred to the Senate Committee on Banking, Housing, and Urban 
Affairs. No further action was taken on this measure in the 
107th Congress.
    A modified version of the text of the measure was included 
in H.R. 2620, the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations 
Act, 2002. The conference report to accompany H.R. 2620 was 
considered by the House on November 8, 2001, and agreed to by a 
record vote of 401 yeas and 18 nays. The Senate considered the 
conference report by unanimous consent on November 8, 2001 and 
agreed to the conference report by a record vote of 87 yeas and 
7 nays, clearing the bill for the White House.
    The bill was presented to the President on November 15, 
2001, and signed into law on November 26, 2001, becoming public 
law 107-73.

   technical correction for jacksonville, florida continuum of care 
                homeless assistance program application

                     Public Law 107-151 (H.R. 3699)

    To revise certain grants for continuum of care assistance 
for homeless individual and families.
Summary
    The bill directs the Secretary of Housing and Urban 
Development to limit the amount of a grant (pursuant to the 
Notice of Funding Availability for Continuum of Care Homeless 
Assistance Programs for FY 2001) to the Liberty Center for the 
Homeless Incorporated. States that if an award has been made in 
excess of such amount prior to enactment of this Act, the 
Secretary shall modify the award and distribute such excess to 
other applicants from the Jacksonville, Florida, Continuum of 
Care in the order listed in the project priority list.
Legislative History
    H.R. 3699 was introduced by Mr. Crenshaw and one original 
cosponsor on February 7, 2002 and referred to the Committee on 
Financial Services. On March 4, 2002, the bill was referred to 
the Subcommittee on Housing and Community Opportunity.
    On February 12, 2002, the House considered the bill under 
suspension of the rules and passed H.R. 3699 by a record vote 
of 421 yeas and no nays.
    The bill was received in the Senate on February 13, 2002 
and referred to the Senate Committee on Banking, Housing, and 
Urban Affairs. On February 25, 2002, the Senate Committee on 
Banking, Housing, and Urban Affairs was discharged from the 
further consideration of the bill and the Senate passed the 
bill by unanimous consent, clearing the bill for the White 
House.
    The bill was presented to the President on March 1, 2002 
and signed into law on March 13, 2002, becoming public law 
number 107-151.

                  fha down payment simplification act

                Public Law 107-326 (S. 2239; H.R. 3995)

    A bill to amend the National Housing Act to simplify the 
down payment requirements for FHA mortgage insurance for single 
family home buyers, repeal the increase of the GNMA guarantee 
fee, and index FHA multifamily loan limits.
Summary
    The bill amended the National Housing Act to make permanent 
a down payment formula used in FHA mortgage insurance 
transactions that determines what is calculated as the 3 
percent down payment requirement. The simplified formula was 
used in a demonstration and was scheduled to expire on December 
30, 2002. This bill made the simplification demonstration 
permanent. Additionally, the FHA multifamily loan limits were 
indexed to reflect future increases in costs, such as 
construction and land as measured by the Consumer Price Index 
for All Urban Consumers (CPI-U), applied by the Federal Reserve 
Board. Finally, the bill repealed a provision included in the 
1998 Higher Education Act Amendments (Public Law 105-244) to 
increase by 50 percent (to nine basis points) the annual fee 
charged beginning in FY 2005.
Legislative History
    S. 2239 was introduced in the Senate on April 24, 2002 by 
Mr. Sarbanes. The Senate Committee on Banking, Housing, and 
Urban Affairs approved the bill on October 15, 2002 with 
amendments and the Senate passed the bill by unanimous consent 
on October 17, 2002.
    The provisions included in S. 2239 were included in H.R. 
3995, the Housing Affordability Act for America approved by the 
Committee on Financial Services on July 10, 2002.
    S. 2239 was received in the House on October 21, 2002 and 
referred to the House Committee on Financial Services. The bill 
was referred to the Subcommittee on Housing and Community 
Opportunity on October 25, 2002.
    On November 15, 2002, the Committee on Financial Services 
was discharged from the further consideration of S. 2239 and 
the House passed the bill by unanimous consent, clearing S. 
2239 for the White House.
    The bill was presented to the President on November 22, 
2002, and signed by the President on December 4, 2002, becoming 
public law number 107-326.

       native american housing assistance and self-determination 
                          reauthorization act

                Public Law 107-292 (S. 1210; H.R. 3995)

    A bill to reauthorize the Native American Housing 
Assistance and Self-Determination Act of 1996.
Summary
    S. 1210, the Native American Housing Assistance and Self-
Determination Reauthorization Act of 2001, The bill 
reauthorized the housing and community development block grant 
for Native American tribes recognized by the Federal 
government, and to a limited extent, some tribes recognized by 
their state governments. The bill also provides for 
comprehensive planning and clarifies that the creation of the 
Land Titles Commission does not need a specific advance 
appropriation in order for the HUD Secretary to appoint 
Commission members.
Legislative History
    S. 1210 was introduced in the Senate on April 24, 2002 by 
Mr. Campbell and referred to the Senate Committee on Indian 
Affairs. The Senate Committee on Indian Affairs reported the 
bill to the Senate with an amendment on August 28, 2002 (S. 
Rept. 107-246) and the bill was sequentially referred to the 
Senate Committee on Banking, Housing, and Urban Affairs for a 
period not to exceed 60 days. The Senate Committee on Banking, 
Housing, and Urban Affairs reported the bill to the Senate on 
September 17, 2002 without a written report.
    The Senate passed the bill by unanimous consent on October 
7, 2002 and the bill was received in the House on the same day. 
The bill was referred to the Committee on Financial Services 
and, on October 15, 2002, the bill was referred to the 
Subcommittee on Housing and Community Opportunity.
    The provisions included in S. 1210 were included in H.R. 
3995, the Housing Affordability Act for America approved by the 
Committee on Financial Services on July 10, 2002.
    On October 16, 2002, the Committee on Financial Services 
was discharged from the further consideration of S. 1210 and 
the House passed the bill by unanimous consent, clearing S. 
1210 for the White House.
    The bill was presented to the President on November 4, 
2002, and signed by the President on November 13, 2002, 
becoming public law number 107-292.

                          tornado shelters act

                               (H.R. 247)

    To amend the Housing and Community Development Act of 1974 
to authorize communities to use community development block 
grant funds for construction of tornado-safe shelters in 
manufactured home parks.
Summary
    The Tornado Shelters Act would authorize, as an eligible 
activity, funds from the Community Development Block Grant 
program to be used toward construction of community tornado 
shelters in manufactured home parks.
Legislative History
    H.R. 247, the Tornado Shelters Act, was introduced by Mr. 
Bachus on January 30, 2001 and referred to the Committee on 
Financial Services. On March 2, 2001, the bill was referred to 
the Subcommittee on Housing and Community Opportunity.
    On March 20, 2001, the Committee on Rules reported a 
modified-open rule providing for the consideration of the bill 
(H. Res. 93). On March 22, 2001, H. Res. 93 was agreed to by a 
record vote of 246 yeas and 169 nays. The House considered and 
passed H.R. 247, as amended, by a record vote of 401 yeas and 6 
nays.
    On March 22, 2001, the bill was received in the Senate and 
referred to the Senate Committee on Banking, Housing, and Urban 
Affairs. No further action was taken on this measure in the 
107th Congress.

             housing affordability for america act of 2002

                              (H.R. 3995)

    To amend and extend certain laws relating to housing and 
community opportunity, and for other purposes.
Summary
    H.R. 3995, the Housing Affordability for America Act made 
reforms to existing housing programs to increase flexibility 
for local governments and programs, increase the availability 
of affordable housing and expand home ownership opportunities 
across the country.
    Section 101, as introduced, amended the HOME program to 
provide specific funding and targeted HOME funds for 
multifamily production and rehabilitation of units primarily 
for very-low income and extremely-low income families and 
individuals. The Committee, during markup, approved an 
amendment replacing section 101 with a matching grant program 
to State and local housing trust funds. Of the total money 
available for matching funds, 40 percent would go to 
participating States and 60 percent to participating 
jurisdictions. These grants would be administered through the 
HOME investment partnership program. States and localities 
would be required to use these grants for the production, 
preservation or rehabilitation of affordable housing for very 
low and extremely low-income families. H.R. 3995 authorized a 
down payment assistance initiative under the HOME program to 
provide low income families with down payment assistance in 
order to achieve the goal of home ownership. Additional changes 
to increase flexibility and improve the efficiency and 
effectiveness of the HOME program were included.
    H.R. 3995 provided new and more efficient ways to assist 
first-time home buyers, including helping low-income buyers 
purchase their first home is the FHA program, encouraging home 
ownership opportunities, and increasing the supply of 
affordable rental housing nationwide.
    In the FHA Multifamily Housing program, H.R. 3995 indexed 
FHA mortgage multifamily limits to reflect building, land and 
impact fee cost increases in the future; and, increased the 
maximum high-cost percentage allowing for production in 
extremely expensive markets. Moreover, the bill included 
provisions to modernize the thirty-year old healthcare mortgage 
insurance programs of sections 232 and 242 of the National 
Housing Act to make them more consistent with today's method of 
delivering healthcare and assisted living services for the 
elderly, sick, injured and disabled.
    Regarding the FHA Single Family Housing program, H.R. 3995 
made permanent the FHA down payment simplification calculation; 
modified the cap on FHA adjustable-rate mortgages; and 
established a uniform national loan limit for HECM. H.R. 3995 
also made changes to the FHA program to tighten requirements 
and administration of the 203(k) FHA--the single family 
rehabilitation loan program.
    For the elderly, H.R. 3995 provided ways to rehabilitate 
and preserve existing elderly housing by establishing a 
demonstration program for elderly housing for multigenerational 
families and for grandparent-headed households; authorized 
grants for the repair of Federally assisted housing for the 
elderly; and set uniform loan limits for reverse mortgages used 
by senior homeowners.
    To better meet the housing needs of low income families, 
H.R. 3995 included provisions to increase payment standards and 
to allow Public Housing Authorities to use up to 2 percent of 
funds to house ``hard to house families.'' It also included 
several administrative changes to the Public Housing programs 
designed to improve the efficiency and success of Public 
Housing Authorities. Under the HOPE VI program, which was 
designed to rehabilitate, demolish and/or reconstruct public 
housing for the most severely distressed developments, H.R. 
3995 provided incentives for PHAs and private entities to form 
partnerships and create mixed-finance and mixed-income 
affordable housing; allowed smaller communities to participate 
in the program; and ensured that recipients used the money in a 
timely and cost-effective manner.
    Regarding homelessness, H.R. 3995 reauthorized HUD's 
homeless programs through FY 2004 and funded renewals of 
contracts through the Housing Certificate Fund. In addition, 
the legislation set a national goal to end homelessness within 
10 years. Moreover, H.R. 3995 reauthorized HOPWA (Housing 
Opportunities for Persons with AIDS), which houses individuals 
diagnosed with HIV/AIDS and their families through 2004.
    H.R. 3995 reauthorized The Native American Housing 
Assistance and Self-Determination Act of 1996 (NAHASDA), which 
expired on September 30, 2002. The block grant program was 
established to provide housing assistance to eligible Indian 
Tribes or their tribally designated housing entities (TDHEs). 
Eligible tribes include both Federally recognized and, to a 
limited degree, certain State-recognized Indian tribes formerly 
eligible under the 1937 Act.
    Title VIII of H.R. 3995 was designed to heighten public 
awareness of the costs to housing affordability of certain 
regulations when there is a significant adverse impact on 
housing affordability. H.R. 3995 required a housing impact 
analysis of any new rule of a Federal agency that has an 
economic housing impact of $100,000,000 or more.
Legislative History
    On March 19, 2002, Mrs. Roukema and 22 cosponsors 
introduced H.R. 3995, the Housing Affordability for America Act 
of 2002, and the bill was referred to the Committee on 
Financial Services, and additionally to the Committee on the 
Judiciary. On April 10, 2002, the bill was referred to the 
Subcommittee on Housing and Community Opportunity.
    The Subcommittee on Housing and Community Opportunity held 
a 3-day legislative hearing on H.R. 3995 on April 10, 23, and 
24, 2002. On June 18, 2002, the Subcommittee met in open 
session and approved H.R. 3995 for full Committee 
consideration, with an amendment.
    The Committee on Financial Services met in open markup 
session on June 20 and July 10, 2002, and ordered H.R. 3995 
reported to the House with a favorable recommendation, with an 
amendment. The Committee on Financial Services reported the 
bill to the House on September 17, 2002 (H. Rept. 107-640, Part 
II).
    The Committee on the Judiciary referred H.R. 3995 to the 
Subcommittee on Commercial and Administrative Law on May 6, 
2002. The Subcommittee on Commercial and Administrative Law met 
in open session on July 16, 2002 and approved the bill for full 
committee consideration. The Committee on the Judiciary met in 
open session on July 23, 2002 and ordered H.R. 3995 reported to 
the House, with a favorable recommendation. The Committee on 
the Judiciary reported the bill to the House on September 4, 
2002 (H. Rept. 107-640, Part I).
    No further action was taken on this measure in the 107th 
Congress.

               brownfields redevelopment enhancement act

                              (H.R. 2941)

    To facilitate the provision of assistance by the Department 
of Housing and Urban Development for the cleanup and economic 
redevelopment of brownfields.
Summary
    H.R. 2941, the Brownfields Redevelopment Enhancement Act, 
increased access to brownfields redevelopment funds for 
America's small communities by de-linking Section 108 loan 
guarantees from HUD's Brownfields Economic Development 
Initiative (BEDI) grants. The bill focused on providing access 
to capital for local entities that traditionally have had 
trouble obtaining financing for brownfields redevelopment 
activities. The bill also authorized HUD to establish a pilot 
program for a common brownfields redevelopment loan pool.
Legislative History
    H.R. 2941 was introduced on September 21, 2001 by Mr. Gary 
G. Miller of California and three original cosponsors. The bill 
was referred to the Committee on Financial Services and to the 
Subcommittee on Housing and Community Opportunity on October 4, 
2001. A hearing in the Subcommittee was held on March 6, 2002. 
Immediately following the hearing the Subcommittee met in open 
session and approved H.R. 2941 for full Committee 
consideration, as amended. On April 11, 2002, the Committee met 
in open session and ordered H.R. 2941 reported to the House 
with a favorable recommendation, with an amendment, by a voice 
vote. The Committee reported the bill to the House on May 8, 
2002 (H. Rept. 107-448).
    On June 4, 2002, the House considered the bill under 
suspension of the rules and passed the bill by a voice vote. On 
June 5, 2002, the bill was received in the Senate and referred 
to the Committee on Banking, Housing, and Urban Affairs.
    No further action was taken on this measure in the 107th 
Congress.

                          Oversight Activities

                          fha financial health

    On March 20, 2001, the Subcommittee on Housing and 
Community Opportunity held a hearing entitled ``The Financial 
Health of the Federal Housing Administration's (FHA) Single-
Family Mutual Mortgage Insurance Fund.'' The impetus for the 
hearing were a GAO report, a HUD IG audit, and a CBO October 
23, 2000 letter related to the Mutual Mortgage Insurance Fund 
(MMI). The first report represented the results of a GAO review 
of the adequacy of the statutorily required capital ratio 
standards. The second report presented the results of an annual 
audit of FHA's financial statements by the HUD Inspector 
General. The third document is an October 23, 2000 response to 
the Senate Housing Subcommittee regarding a MMI surplus. GAO, 
HUD IG, and CBO provided different perspectives on the health 
of the MMI and to what extent policymakers can make judgments. 
The health of the MMI is directly related to potential new home 
ownership initiatives that may require, for example, lower FHA 
premiums, targeted programs to vulnerable/selected populations, 
or the creation of a new housing production program.

                hud proposed budget for fiscal year 2002

    On April 26, 2001, the Subcommittee held a hearing on the 
HUD FY 2002 proposed budget where Secretary of Housing and 
Urban Development Mel Martinez outlined the Administration's 
proposed a budget for the Department of Housing and Urban 
Development (HUD) of approximately $30.4 billion. The HUD 
budget maintained funding for the Department's core programs, 
including CDBG and HOME, and requested 34,000 additional 
(incremental) section 8 vouchers. The Administration's budget 
also contained a number of new initiatives, including a ``Down 
Payment Assistance Initiative'' that would allow $200 million 
for matching downpayment assistance provided to families by 
third parties, up to $1,500 per family (set aside from the HOME 
program funds). The funds would be administered by State 
housing finance agencies and each year would help over 130,000 
first-time low-income homebuyers.
    In addition, the Administration proposed a new hybrid 
adjustable-rate mortgage that would work with tax incentives 
for savings, and proposed tax credits for rehabilitation and 
construction, to expand homeownership. Other initiatives 
provided in the Administration's HUD budget, included the 
``Community Technology Centers Initiative'', which enhanced the 
Department's Neighborhood Networks program by providing $80 
million in competitive grants to help communities create or 
expand technology centers in high poverty urban communities. 
Community Development Block Grant funding of $20 million would 
also be designated for use in the ``Improving Access 
Initiative'', to help religious and civic organizations, with 
limited resources, make their facilities accessible to the 
disabled.

                         housing affordability

    On May 3, 2001, the Subcommittee held the first in a series 
of hearings to outline the parameters of the problem of a lack 
of affordable housing and the complexity of the issues 
involved, as well as beginning discussions as to possible 
approaches to solutions. The witnesses in this hearing 
identified certain problems including, among others: 
inefficiencies in the HUD section 8 program that lead to low 
utilization rates, in various areas, of section 8 vouchers; 
income-targeting levels that are too low in the HOME and CDBG 
programs so that families that require assistance in high-cost 
areas are unassisted; burdensome and unnecessary local 
regulations that increase the cost of producing housing (such 
as ``no-growth ordinances''); and multifamily loan limits on 
FHA multifamily loans that are too low to be effective in 
certain markets.
    The second hearing, held on May 22, 2001, highlighted 
private activity and public/private partnerships that address 
affordable housing among various income sectors, as well as 
community development experts representing State and local 
governments specifically working with the Community Development 
Block Grant (CDBG) and HOME Investment Partnerships (HOME) 
programs.
    The third hearing, held on June 21, 2001, focused on the 
under-utilization of section 8 vouchers, as well as the 
specific problems faced by the homeless and disabled 
populations in finding affordable housing. In certain 
communities, voucher under-utilization is a significant 
problem. Under-utilization of vouchers was attributed to 
various causes including the tight rental market, poor 
performance by PHAs, targeting of a large percentage of 
vouchers to very low-income individuals, low fair market rents 
and rent caps of 40 percent of adjusted monthly income. While 
approximately 2.3 to 3 million people are homeless some part of 
the year, there are 150,000-200,000 people who are 
``chronically homeless.'' These individuals are not only poor, 
but also suffer from some sort of chronic health problem such 
as mental illness, alcoholism, drug abuse or HIV/AIDS. Under 
the Clinton Administration, HUD's strategy was to combine 
housing with services, known as ``continuum of care,'' where 
HUD provided social services in addition to housing. Secretary 
Martinez has signaled an interest in shifting responsibility 
for care of the homeless with mental health or substance abuse 
problems to HHS.
    The fourth hearing, held on July 17, 2001, focused on 
elderly housing programs and the difficult problems faced by 
the elderly in finding suitable affordable housing, as well as 
the coordination of housing and services. The Federal 
government operates several programs that provide housing for 
large numbers of elderly residents. For the past 40 years, the 
primary housing program for the elderly has been the Section 
202 program. Since its inception, this program has produced 
approximately 350,000 housing units for occupancy by the 
elderly. Witnesses discussed the special needs of elderly 
residents and the integration of services with housing, as well 
as planning for aging-in-place. They also addressed the current 
supply of elderly housing, the prospects for maintaining the 
units within the various Federal programs, and suggestions for 
better operation of the existing programs.

                    national flood insurance program

    On Thursday, July 19, 2001, the Subcommittee held a hearing 
regarding the National Flood Insurance Program (NFIP) and 
repetitive flood losses. The hearing addressed the flood 
program proposal contained in the Administration's FY 2002 
budget proposal as well as two legislative proposals: H.R. 
1428, the Two Floods and You are Out of the Taxpayer's Pocket 
Act of 2001, and H.R. 1551, the Repetitive Flood Loss Reduction 
Act of 2001. The National Flood Insurance Program was created 
as part of the National Flood Insurance Act of 1968. Prior to 
that time, insurance companies generally did not offer coverage 
for flood disasters because of the high risks involved. The 
legislation as amended in 1973 and 1994 authorizes the Federal 
Insurance Administration (FIA) and Mitigation Directorate to 
administer the NFIP as part of FEMA.

                hud proposed budget for fiscal year 2003

    On February 13, 2002, the Subcommittee held a hearing on 
the proposed budget of the Department of Housing and Urban 
Development for fiscal year 2003 where the Honorable Mel 
Martinez, Secretary of Housing and Urban Development, was the 
only witness. The Administration proposed a total HUD budget of 
$31.497 billion, which is a $2.1 billion increase from the 
enacted FY 2002 budget, representing close to a seven percent 
increase from $29.471 billion. This increase would account for 
several new initiatives to expand home ownership, increase 
rental vouchers for non-elderly disabled, provide flexible 
financing for public housing modernization, redirect community 
development resources to the Colonias as well as make housing 
counseling a separate program for coordination and targeting.

        review of the community development block grant program

    On March 14, 2002, the Subcommittee held a hearing entitled 
``Review of the Community Development Black Grant Program''. 
The Community Development Block Grant (CDBG) program is the 
largest source of Federal community development assistance to 
State and local governments. Communities may undertake eligible 
housing, community development, economic development, and 
public services activities. Funded activities must principally 
benefit low-and moderate-income persons, or eliminate or 
prevent slums and blight, or address a need that poses a threat 
to the health or safety of a community. Several witnesses 
provided testimony regarding proposals for improving the 
program. Specifically, witnesses addressed H.R. 1191, 
introduced by Ms. Meeks, which aims to restore the original 
intent of the CDBG program, to ``principally'' benefit lower 
income people.

          review of empowerment zones and renewal communities

    On April 10, 2002, the Subcommittee held a hearing entitled 
``Review of the Empowerment Zone/Enterprise Community 
program''. The hearing examined the EZ/EC program generally and 
focused on the discrepancy in funding between the Round I, II, 
and III zones. Witnesses addressed the progress of EZs in their 
respective States. Hearing testimony also addressed H.R. 2637, 
the Round II EZ/EC Flexibility Act of 2001, which authorizes 
appropriations to the Secretaries of Housing and Urban 
Development and Agriculture for specified urban and rural 
empowerment zones and permits the use of those funds for zone 
or community strategic plan implementation. The legislation 
also provided for the use of Federal funds to pay matching fund 
requirements and prevents an empowerment zone or enterprise 
community from losing Federal funding because of 
reclassification as a renewal community.

     leaking underground storage tanks and its affect on housing & 
                             neighborhoods

    On Thursday, September 12, 2002, the Subcommittee on 
Housing and Community Opportunity held a hearing entitled ``The 
Erosion of Communities and Home Values by Leaking Underground 
Storage Tanks''. To address a nationwide problem of leaking 
underground storage tanks (LUSTs), Congress established a 
prevention, detection, and corrective action program in 1984. 
In 1986, Congress subsequently created the Leaking Underground 
Storage Tank Trust Fund to help the Environmental Protection 
Agency (EPA) and states cover the costs of responding to 
petroleum LUSTs where owners fail to do so, and to oversee LUST 
cleanup activities. Witnesses testified about the public health 
and economic problems associated with leaking underground 
storage tanks and initiatives being undertaken to deal with 
them on the local, State and national levels. The witnesses 
also highlighted the impact that LUSTs have in the areas of 
environmental remediation, community and economic development, 
and safe housing.

         non-profit capacity building and technical assistance

    On Tuesday, September 17, 2002, the Subcommittee held a 
hearing on technical assistance and capacity building programs 
to promote housing and economic development. Over the past 
fifteen years, the nation's 3,600 community-based development 
corporations (CDCs) have built 550,000 homes and apartments, 
produced 71 million square feet of commercial and industrial 
space, loaned $1.9 billion to 59,000 businesses, and created 
247,000 private sector jobs. ``Technical assistance'' is any 
measure designed to build the capacity of a CDC to carry out 
initiatives in its community. Witnesses testified about local 
needs and on the need to ensure that community development 
groups are able to secure the resources needed to continue the 
important work of revitalizing communities.

                        mold: a growing problem

    On Thursday, July 18, 2002, the Subcommittees on Housing 
and Community Opportunity and on Oversight and Investigations 
held a joint hearing to examine the extent of problems in the 
insurance and housing industry over mold. Mold-related claims 
by homeowners rose to over a billion dollars last year in just 
one State, approximately a five-fold increase over the previous 
year's nationwide total. Across the U.S., homeowners' insurers 
paid out $1.18 in losses and expenses for every $1 earned in 
premiums. Members of the scientific community testified on the 
current understanding of mold issues, and discussed the 
literature review by the Centers for Disease Control (CDC) now 
underway and due out this spring. Other witnesses discussed the 
sudden spike in mold litigation and remediation claims, and how 
these lawsuits are affecting the home building industry, 
unions, small businesses, and the insurance industry. In 
particular, the witnesses talked about the lack of scientific 
standards for measuring mold and determining the extent of any 
mold dangers, and the need for better guidance or proactive 
statements by Federal agencies.

                             Hearings Held

    Financial Health of the Federal Housing Administration's 
Single-Family Mutual Mortgage Insurance Fund.--Hearing entitled 
``Financial Health of the Federal Housing Administration's 
Single-Family Mutual Mortgage Insurance Fund.'' March 20, 2001. 
PRINTED, serial no. 107-6.
    Proposed Budget of the Department of Housing and Urban 
Development for Fiscal Year 2002.--Hearing on the proposed 
budget of the Department of Housing and Urban Development for 
fiscal year 2002. April 26, 2001. PRINTED, serial no. 107-11.
    Housing Affordability Issues.--Hearing on housing 
affordability issues. May 3, 22, June 21, and July 17, 2001. 
PRINTED, serial no. 107-14.
    The National Flood Insurance Program and Repetitive Loss 
Properties.--Hearing on the National Flood Insurance Program 
and repetitive loss properties. July 19, 2001. PRINTED, serial 
no. 107-36.
    Proposed Budget of the Department of Housing and Urban 
Development for Fiscal Year 2003.--Hearing on the proposed 
budget of the Department of Housing and Urban Development for 
fiscal year 2003. February 13, 2002. PRINTED, serial no. 107-
54.
    Brownfields Redevelopment Enhancement Act.--Legislative 
hearing on H.R. 2941, the Brownfields Redevelopment Enhancement 
Act. March 6, 2002. PRINTED, serial no. 107-59.
    Review of the Community Development Block Grant Program.--
Hearing entitled ``Review of the Community Development Block 
Grant Program.'' March 14, 2002. PRINTED, serial no. 107-61.
    Housing Affordability for America Act.--Legislative hearing 
on H.R. 3995, the Housing Affordability for America Act of 
2002. April 10, 23, and 24, 2002. PRINTED, serial no. 107-64.
    Review of the Current Status of Empowerment Zones and 
Renewal Communities.--Hearing entitled ``Review of the Current 
Status of Empowerment Zones and Renewal Communities.'' April 
10, 2002. PRINTED, serial no. 107-65.
    Fighting Discrimination against the Disabled and Minorities 
through Fair Housing Enforcement.--Joint hearing with the 
Subcommittee on Oversight and Investigations entitled 
``Fighting Discrimination against the Disabled and Minorities 
through Fair Housing Enforcement.'' June 25, 2002. PRINTED, 
serial no. 107-73.
    Mold: A Growing Problem.--Joint hearing with the 
Subcommittee on Oversight and Investigations entitled ``Mold: A 
Growing Problem.'' July 18, 2002. PRINTED, serial no. 107-77.
    Erosion of Communities and Home Values by Leaking 
Underground Storage Tanks.--Hearing entitled ``Erosion of 
Communities and Home Values by Leaking Underground Storage 
Tanks.'' September 12, 2002. Serial no. 107-81.
    Technical Assistance and Capacity Building Programs to 
Promote Housing and Economic Development--Hearing on technical 
assistance and capacity building programs to promote housing 
and economic development. September 17, 2002. Serial no. 107-
82.
        SUBCOMMITTEE ON INTERNATIONAL MONETARY POLICY AND TRADE

                             (Ratio: 14-12)

                   DOUG BEREUTER, Nebraska, Chairman

DOUG OSE, California                 BERNARD SANDERS, Vermont*
  Vice Chairman                      MAXINE WATERS, California
MARGE ROUKEMA, New Jersey            BARNEY FRANK, Massachusetts
RICHARD H. BAKER, Louisiana          MELVIN L. WATT, North Carolina
MICHAEL N. CASTLE, Deleware          JULIA CARSON, Indiana
JIM RYUN, Kansas                     BARBARA LEE, California
DONALD A. MANZULLO, Illinois         PAUL E. KANJORSKI, Pennsylvania
JUDY BIGGERT, Illinois               BRAD SHERMAN, California
MARK GREEN, Wisconsin                JANICE D. SCHAKOWSKY, Illinois
PATRICK J. TOOMEY, Pennsylvania      CAROLYN B. MALONEY, New York
CHRISTOPHER SHAYS, Connecticut       LUIS V. GUTIERREZ, Illinois
GARY G. MILLER, California           KEN BENTSEN, Texas
SHELLEY MOORE CAPITO, West Virginia  JOHN J. LAFALCE, New York
MIKE FERGUSON, New Jersey              Ex Officio
MICHAEL G. OXLEY, Ohio
  Ex Officio
---------------------------------------------------------------------------
    * Mr. Sanders is an independent, but caucuses with the Democratic 
Caucus.
---------------------------------------------------------------------------

                         Legislative Activities

                 export-import bank reauthorization act

                Public Law 107-189 (H.R. 2871; S. 1372)

    To reauthorize the Export-Import Bank of the United States, 
and for other purposes.
Summary
    The Export-Import Bank Reauthorization Act of 2002 extends 
the charter of the U.S. Export-Import Bank for 4 years and 
creates offices on Small Business Exporters and on Africa 
within the Bank. The legislation also improves the operation of 
the Tied Aid Credit Program, increases the value of 
transactions that the Bank can hold in its portfolio at any 
time, and raises the percentage of small business transactions 
the Bank must pursue. This measure further mandates that the 
Bank take into consideration U.S. trade laws, corrupt practices 
of a recipient company and a country's efforts to combat 
terrorism when considering a transaction.
Legislative History
    H.R. 2871 was introduced in the House by Mr. Bereuter on 
September 10, 2001 and referred to the Committee on Financial 
Services. The bill was referred to the Subcommittee on 
International Monetary Policy and Trade on September 14, 2002.
    On September 21, 2001, the Subcommittee on International 
Monetary Policy and Trade met in open session and approved H.R. 
2871, as amended, for full Committee consideration by a voice 
vote. On October 31, 2001, the Committee met in open session 
and ordered H.R. 2871 reported to the House with a favorable 
recommendation, with an amendment, by a voice vote. The 
Committee on Financial Services reported H.R. 2871 to the House 
on November 15, 2001 (H. Rept. 107-292).
    On August 3, 2001, the Senate Committee on Banking, 
Housing, and Urban Affairs reported an original measure, S. 
1372, the Export Import Bank Reauthorization Act of 2001, to 
the Senate (S. Rept. 107-52). On March 14, 2002, the Senate 
laid S. 1372 before the Senate and passed the bill with an 
amendment by unanimous consent. The bill was received in the 
House on March 18, 2002 and held at the desk.
    On April 30, 2002, the Committee on Rules reported a 
modified-closed rule providing for the consideration of H.R. 
2871 (H.Res. 402). On May 1, 2002, H. Res. 402 was agreed to by 
a voice vote. The House considered and passed H.R. 2871 by a 
voice vote. Pursuant to the provisions of H.Res. 402, H.R. 2871 
was laid upon the table, and the House amended S. 1372 with the 
text of H.R. 2871 and requested a conference. The Speaker 
appointed conferees from the Committee on Financial Services, 
and from the Committee on Government Reform for consideration 
of section 7 of the Senate bill and modifications committed to 
conference.
    On May 9, the Senate disagreed from the House amendment, 
agreed to the conference requested by the House, and appointed 
conferees. On May 21, the conference met (the Senate chairing), 
and agreed to the conference report to accompany S. 1372. On 
May 24, 2002, the conference report to accompany S.1372 was 
filed in the House (H. Rept. 107-487).
    On June 4, 2002, the Committee on Rules reported a rule 
providing for the consideration of the conference report to 
accompany S. 1372 (H. Res. 433). On June 5, 2002, the House 
considered and passed H. Res. 433 by a voice vote. On June 5, 
2002, the House agreed to the conference report to accompany S. 
1372, by a record vote of 344 yeas and 78 nays.
    On June 6, 2002, the Senate approved the conference report 
to accompany S.1372 by unanimous consent, clearing the bill for 
the White House. The bill was presented to the President on 
June 11, 2002, and signed into law on June 14, 2002, becoming 
public law number 107-189.

                      export-import bank extension

                Public Law 107-156 (H.R. 3987; S. 2019)

    To extend the authority of the Export-Import Bank through 
April 30, 2002.
Summary
    The bill extended the authority of the Export-Import Bank 
through April 30, 2002.
Legislative History
    H.R. 3987 was introduced on March 18, 2002, by Mr. Bereuter 
and referred to the Committee on Financial Services. The bill 
was referred to the Subcommittee on International Monetary 
Policy and Trade on April 15, 2002.
    The Senate's companion legislation, S. 2019, was introduced 
by Mr. Sarbanes on March 14, 2002 and passed by unanimous 
consent.
    On March 18, 2002, the bill was received in the House and 
referred to the Committee on Financial Services. On March 19, 
2002, S. 2019 was considered under suspension of the rules and 
passed by a voice vote, clearing the bill for the White House. 
On March 20, 2002, the bill was presented to the President and 
signed into law on March 31, 2002, becoming public law 107-156.

              zimbabwe democracy and economic recovery act

                       Public Law 107-99 (S. 494)

    To provide for a transition to democracy and to promote 
economic recovery in Zimbabwe.
Summary
    S. 494, the Zimbabwe Democracy and Economic Recovery Act of 
2001, establishes that it is U.S. policy to support the people 
of Zimbabwe in their current struggles to effect peaceful, 
democratic change and achieve economic growth. It supports 
those goals by requiring the Secretary of the Treasury to 
review the feasibility of bilateral debt relief upon 
Presidential certification that certain conditions relating to 
democratic elections and the rule of law have been fulfilled. 
It expresses the sense of the Congress that if such a 
certification is made, the U.S. should propose a review of the 
feasibility of multilateral debt relief. Until such time as a 
Presidential certification is made, it instructs U.S. executive 
directors to the relevant international financial institutions 
to oppose financial assistance to Zimbabwe, except for basic 
human needs. The bill also authorizes bilateral assistance for 
land reform and democratic governance and expresses the sense 
of Congress that the President should consult with foreign 
governments on possible action against individuals responsible 
for the breakdown of the rule of law in Zimbabwe and the 
identification of overseas assets of those individuals.
Legislative History
    S. 494 was introduced by Senator Frist on March 8, 2001. On 
July 12, 2001, the bill, as amended by a substitute, was 
ordered reported by the Committee on Foreign Relations without 
a written report. The legislation passed the Senate by 
unanimous consent on August 1, 2001.
    S. 494, as amended, was received in the House on August 2, 
2001, at which time it was referred to the Committee on 
Financial Services, and additionally to the Committee on 
International Relations.
    On August 24, 2001, the bill was referred to the House 
Financial Services Committee's Subcommittee on International 
Monetary Policy and Trade.
    On November 28, 2001, the House Committee on International 
Relations met in open session and ordered S. 494, as amended, 
reported. During the markup, amendments were adopted that 
addressed those portions of the bill which fell within the 
jurisdiction of the Committee on Financial Services and were 
acceptable to the Committee on Financial Services. The bill, as 
amended, was reported on December 4, 2001 (H. Rept. 107-312, 
Part I).
    On December 4, the Committee on Financial Services was 
discharged from the further consideration of S. 494 pursuant to 
an exchange of correspondence between the Committees.
     On December 4, 2001, the bill was considered under 
suspension of the rules. On December 5, the House passed S. 494 
by a record vote of 396 yeas and 11 nays.
    On December 5, the bill was received in the Senate and on 
December 11, the Senate agreed to the House amendment, clearing 
the bill for the White House. S. 494 was presented to the 
President on On December 14 and the bill was signed into law by 
the President, becoming public law 107-99.

                            sudan peace act

      Public Law 107-245 (H.R. 5531; H.R. 931; H.R. 2052; S. 180)

    To facilitate famine relief efforts and a comprehensive 
solution to the war in Sudan.
Summary
    The Sudan Peace Act states that Congress condemns 
violations of human rights on all sides of the conflict in 
Sudan (including actions by the Sudanese Government) and 
recognizes the need for continued leadership by the United 
States in that country. The bill authorizes the President to 
provide increased assistance to the areas of Sudan that are not 
controlled by the Government of Sudan to prepare the population 
for peace and democratic governance. To this end, 
appropriations are authorized for each of the fiscal years 
2003, 2004, and 2005. The bill also expresses the sense of the 
Congress that the United Nations should help facilitate peace 
and recovery in Sudan and mandates annual reports by the 
Secretary of State on oil exploitation by the Government of 
Sudan as well as the status of humanitarian relief in Sudan.
Legislative History
    H.R. 931, the Sudan Peace Act, was introduced in the House 
on March 7, 2001, by Mr. Tancredo and 23 original cosponsors 
and referred to the Committee on International Relations. On 
May 16, 2001, the Subcommittee on Africa met in open session 
and approved H.R. 931 for full Committee consideration, as 
amended, by a voice vote.
    H.R. 2052, legislation similar to H.R. 931 as amended, was 
introduced in the House on June 5, 2001 by Mr. Tancredo and 21 
original cosponsors and referred to the Committee on 
International Relations, and additionally to the Committee on 
Financial Services.
    On June 6, 2001, the Committee on International Relations 
met in open session and ordered H.R. 2052 reported to the House 
by a voice vote. The Committee on International Relations 
reported the bill to the House on June 8, 2001 (H. Rept. 107-
92, Part I) and the Committee on Financial Services was 
discharged from the further consideration of the bill pursuant 
to an exchange of correspondence between the committees of 
jurisdiction.
    On June 12, 2001, the Committee on Rules reported an open 
rule providing for the consideration of H.R. 2052 (H. Res. 
162). On June 13, 2001, H. Res. 162 passed the House by a voice 
vote. The House considered H.R. 2052 and passed the bill by a 
record vote of 422 yeas and 2 nays on June 13, 2001.
    The bill was received in the Senate on June 14, 2001 and 
referred to the Committee on Foreign Relations on June 21, 
2001.
    S. 180, the Sudan Peace Act, was introduced in the Senate 
on January 25, 2001 and referred to the Senate Committee on 
Foreign Relations. On July 12, the Senate Committee on Foreign 
Relations met in open session and ordered the bill reported 
favorably with an amendment. S. 180 was reported to the Senate 
without written report on July 16, 2001. On July 19, 2001, the 
Senate passed the bill with an amendment by unanimous consent.
    On July 20, 2001, S. 180 was received in the House and 
referred to the House Committee on International Relations. On 
November 15, 2001, the Committee on International Relations was 
discharged from the further consideration of the bill, and the 
House passed S. 180 with an amendment consisting of the text of 
H.R. 2052 as passed by the House by unanimous consent. The 
House insisted on its amendment, and requested a conference 
with the Senate on S. 180 by unanimous consent. The Speaker 
appointed conferees from the Committee on International 
Relations, and from the Committee on Financial Services for 
consideration of sections 8 and 9 of the House amendment.
    H.R. 5531 was introduced in the House on October 2, 2002 by 
Mr. Tancredo and four original cosponsors. The bill was 
referred to the Committee on International Relations and to the 
Committee on Financial Services.
    On October 7, 2002, the House considered the bill under 
suspension of the rules and passed H.R. 5531 by a record vote 
of 359 yeas and 8 nays. The bill was received in the Senate on 
October 8, 2002.
    On October 9, 2002, the bill was approved in the Senate 
without amendment by unanimous consent, clearing the bill for 
the White House. The bill was presented to the President on 
October 11, 2002 and signed into law on October 21, becoming 
public law 107-245.

    global access to hiv/aids prevention, awareness, education and 
                         treatment act of 2001

                    (H.R. 2069; H.R. 2209; S. 2525)

    To amend the Foreign Assistance Act of 1961 and the Global 
AIDS and Tuberculosis Relief Act of 2000 to authorize 
assistance to prevent, treat, and monitor HIV/AIDS in sub-
Saharan Africa and other developing countries.
Summary
    H.R. 2069, the Global Access to HIV/AIDS Prevention, 
Awareness, Education and Treatment Act of 2001, as passed by 
the House, authorizes bilateral and multilateral assistance to 
combat the HIV/AIDS pandemic in countries in sub-Saharan Africa 
and other developing countries, and reinforces U.S. policy 
input into the negotiation of an international HIV/AIDS trust 
fund and the role of the World Bank as fiduciary for the fund.
    H.R. 2209, the World Bank AIDS Trust Fund Amendments Act of 
2001, amends the Global AIDS and Tuberculosis Relief Act of 
2000 (Public Law 106-264) to increase the authorization for the 
AIDS trust fund, expand the focus of the fund to include 
malaria, as well as make clear that tuberculosis is also 
covered by the legislation. The bill also extends the deadline 
for a General Accounting Office (GAO) report on the 
effectiveness of the fund. The introduction of the bill 
followed Subcommittee hearings on May 15, 2001 and June 12, 
2001, at which witnesses from the Treasury Department, UNAIDS, 
and the private sector testified regarding the development of 
an international HIV/AIDS trust fund.
Legislative History
    H.R. 2069 was introduced by Mr. Hyde and referred to the 
Committee on International Relations. On June 27, 2001, the 
Committee on International Relations, meeting in open session, 
ordered H.R. 2069 reported, as amended. The bill was reported 
to the House on July 12, 2001 (H. Rept. 107-137).
    On June 18, 2001, Mr. Bereuter introduced H.R. 2209, the 
World Bank AIDS Trust Fund Amendments Act of 2001. The bill was 
referred to the Committee on Financial Services on June 18, 
2001, and on June 25, 2001 was referred to the Subcommittee on 
International Monetary Policy and Trade.
    On December 11, 2001, H.R. 2069, with amendments, was 
considered under suspension of the rules. These amendments 
included section 4 of H.R. 2209 as well as additional 
references to the Global AIDS and Tuberculosis Relief Act 
(Public Law 106-264) and the role of the World Bank in the AIDS 
trust fund. H.R. 2069 was passed by voice vote on December 11, 
2001.
    Thereafter, the Senate passed similar legislation, S. 2525, 
the United States Leadership Against HIV/AIDS, Tuberculosis, 
and Malaria Act of 2002, on July 12, 2002. Title III of the 
Senate bill expands the Highly Indebted Poor Country (HIPC) 
program by establishing an additional revenue-based criterion 
for debt relief. The House version of H.R. 2069 does not 
address multilateral debt relief.
    The Senate amended H.R. 2069 with the text of S. 2525 as 
amended on July 12, 2002. The bill was received in the House on 
July 15, 2002. No further action was taken on this measure in 
the 107th Congress.

         regional multilateral development bank authorizations

                              (H.R. 2604)

    To authorize the United States to participate in and 
contribute to the seventh replenishment of the resources of the 
Asian Development Fund and the fifth replenishment of the 
resources of the International Fund for Agricultural 
Development, and to set forth additional policies of the United 
States towards the African Development Bank, the African 
Development Fund, the Asian Development Bank, the Inter-
American Development Bank, and the European Bank for 
Reconstruction and Development.
Summary
    H.R. 2604 authorizes U.S. contributions of $412 million to 
the Asian Development Fund (AsDF) and $30 million to the 
International Fund for Agricultural Development (IFAD) for the 
replenishment of these two institutions. Additionally, this 
measure directs the U.S. Executive Directors of the regional 
multilateral development banks (Asian Development Bank/Fund; 
the African Development Bank/Fund; the Inter-American 
Development Bank; the European Bank for Reconstruction and 
Development); and IFAD to use their voice and votes to address 
issues relating to transparency, user fees, HIV/AIDS, projects 
that include dams, international terrorism, privatization of 
government-held industries, opposition to reducing minimum 
wages below internationally recognized poverty levels, and 
arsenic in drinking water in South Asia.
Legislative History
    H.R. 2604 was introduced by Mr. Bereuter and 6 original 
cosponsors on July 24, 2001, and was referred to the Committee 
on Financial Services. On August 8, 2001, the bill was referred 
to the Subcommittee on International Monetary Policy and Trade.
    On September 21, 2001, the Subcommittee on International 
Monetary Policy and Trade met in open session and approved H.R. 
2604 for full Committee consideration, as amended, by a voice 
vote. On October 31, 2001, the Committee met in open session 
and ordered H.R. 2604 reported to the House with a favorable 
recommendation, with an amendment, by a voice vote.
    The Committee on Financial Services reported H.R. 2604 to 
the House on November 15, 2001 (H. Rept. 107-291). On May 1, 
2002, the House considered H.R. 2604 under suspension of the 
rules and passed the bill by a voice vote. On May 2, 2002, H.R. 
2604 was received in the Senate and referred to the Committee 
on Foreign Relations. No further action was taken on H.R. 2604 
in the 107th Congress.

                          Oversight Activities

       state of the international financial system and imf reform

    On May 22, 2001 The Full Committee on Financial Services 
heard testimony from Treasury Secretary Paul O'Neill on the 
state of the international financial system and International 
Monetary Fund (IMF) reform. This hearing is required to occur 
annually by the FY 1999 Foreign Operations Appropriations 
legislation, which also granted an $18 billion increase in U.S. 
contributions to the IMF. Secretary O'Neill highlighted the 
need to carefully review the operations of the IMF and the 
multilateral development banks (MDBs). Specifically, Secretary 
O'Neill called for increased transparency in these 
institutions, clear and essential goals for the MDBs, a 
movement from loans to grants and a focus on results-based 
performance indicators.
    On February 28, 2002, the Full Committee on Financial 
Services held the second hearing of the 107th Congress on the 
state of the international financial system and IMF reform. The 
Committee again heard testimony from Secretary of the Treasury 
Paul O'Neill in which he called for the need to strengthen 
international cooperation to achieve economic growth and 
stability. Additionally, Secretary O'Neill outlined efforts to 
combat the financing of terrorist activities and to promote 
global free trade. Specifically, Secretary O'Neill discussed in 
detail the Administration's proposal to shift some of the 
financial aid provided by the World Bank from loans to grants.

                world bank and imf activities in africa

    On May 15, 2001, the Subcommittee on International Monetary 
Policy and Trade held an oversight hearing on the activities of 
the World Bank and the International Monetary Fund (IMF) in 
Africa. At the hearing witnesses from the General Accounting 
Office, a representative from the Carnegie Endowment for Peace, 
the Joint United Nations Program on HIV/AIDS, the staff for the 
World Health Organization's Commission on Macroeconomics and 
Health, and a representative of a non-governmental organization 
provided testimony on the activities of the World Bank and the 
IMF in Africa. Concerns were raised relating to the HIV/AIDS 
pandemic and user fees attached to loans from the World Bank 
and the IMF.

                      trade in financial services

    On June 26, 2001, the Subcommittee on International 
Monetary Policy and Trade conducted a hearing on current issues 
and future developments in trade in financial services. 
Witnesses on behalf of the American Insurance Association, the 
Bankers' Association for Trade and Finance, the Securities 
Industry Association, and the Center for Economic and Policy 
Research testified on the current state of trade in financial 
services and the outlook for expansion of this trade. 
Specifically, several members of the panel called for passage 
of Trade Promotion Authority, which many of the witnesses 
testified would strengthen the ability of U.S. negotiators to 
gain access to foreign markets for financial services.

                     argentina's economic meltdown

    On February 6, 2002, the Subcommittee on International 
Monetary Policy and Trade held a hearing on the economic crisis 
facing Argentina. Undersecretary of the Treasury John Taylor 
testified, and outlined the economic dilemmas facing Argentina 
and the U.S. policy relating to this issue. Undersecretary 
Taylor stated that the Administration would not support 
additional funds for Argentina from the IMF until Argentina 
implements significant economic and institutional changes.
    On March 5, 2002, the Subcommittee held a second hearing on 
the economic crisis in Argentina. Witnesses on behalf of 
Carnegie Mellon University, Johns Hopkins University, the 
Institute for International Economics, and the Center for 
Economic Policy and Research testified before the Subcommittee, 
and outlined the causes and their proposed solutions to the 
dilemmas facing Argentina. Several witnesses called for a 
continued halt in financial aid until economic reforms are 
undertaken.

          changes to the international development association

    The Subcommittee on International Monetary Policy and Trade 
held three hearings on issues related to the International 
Development Association (IDA). On May 2, 2002, the Subcommittee 
received testimony from the Director of International Affairs 
and Trade at the General Accounting Office (GAO). At this 
hearing, the GAO outlined proposals to move from loans to 
developing countries to grants to qualified countries.
    On July 19, 2002, the Subcommittee received testimony from 
representatives of the Bretton Woods Committee, Bread for the 
World, OXFAM America and the AFL-CIO on proposed changes to the 
IDA. Witnesses voiced support for a movement from loans to 
grants and called for additional debt relief through the HIPC 
Trust Fund.
    On July 25, 2002, the Subcommittee received testimony from 
Undersecretary of the Treasury John Taylor on the 
Administration's authorization request for the IDA. 
Additionally, the Undersecretary discussed the authorization of 
the African Development Fund.

 the european union's financial services action plan and implications 
              for the american financial services industry

    On May 22, 2002, the Full Committee on Financial Services 
conducted a hearing on The European Union's Financial Services 
Action Plan (FSAP) and implications for the American financial 
services industry. In an effort to become the most competitive 
and dynamic knowledge-based economy in the world by 2010, the 
EU has embarked upon an ambitious plan to overhaul its 
financial services sector. Witnesses on behalf of the Federal 
Reserve Board, Treasury, the Securities and Exchange 
Commission, the Securities Industry Association and academia 
testified on the FSAP and its short- and long-term effects. 
According to many of the witnesses, the EU's actions will 
generally have positive benefits for American financial 
services firms, and the U.S. government agencies represented at 
the hearing are working closely with their European 
counterparts. The Committee will continue to follow the FSAP as 
its provisions are implemented in the coming years.

                    north american development bank

    The Subcommittee on International Monetary Policy and Trade 
conducted two hearings which addressed the North American 
Development Bank (NADBank). On May 2, 2002, the Subcommittee 
conducted a hearing where private sector witnesses testified on 
the need to reform the NADBank. At this hearing, the 
Subcommittee heard testimony from the following witnesses: a 
mayor and city manager of two communities along the Texas/
Mexico border; the former chief executive officer of the 
NADBank; and a mortgage banker who uses the NADBank. 
Furthermore, on July 25, Undersecretary John Taylor of the 
Department of Treasury testified, among other things, on the 
Administration's request to reform the NADBank.

                             Hearings Held

    Reauthorization of the Export-Import Bank--Hearing on the 
activities of the Export-Import Bank and its reauthorization. 
Hearing held on May 2 and 8, 2001. PRINTED, serial number 107-
13.
    U.S. Policy Towards the African Development Bank and the 
African Development Fund--Hearing examining U.S. policy in the 
African Development Bank and Fund. Hearing held on April 25, 
2001. PRINTED, serial number 107-10.
    World Bank and IMF Activities in Africa--Oversight hearing 
on the activities of the World Bank and the IMF in Africa. 
Hearing held on May 15, 2001. PRINTED, serial number 107-15.
    FY 2002 Authorization Requests for International Financial 
Institutions, and Activities of the African Development Bank, 
the World Bank, and the IMF in Africa--Hearing on the 
Administration's FY 2002 authorization requests. PRINTED, 
serial Number 107-23.
    Trade in Financial Services--Current Issues and Future 
Developments--Hearing on U.S. trade in financial services. 
Hearing held on June 26, 2001. PRINTED, serial Number 107-30.
    Argentina's Economic Meltdown: Causes and Remedies--Two 
hearings on the economic crisis facing Argentina featuring 
witnesses from the Treasury Department and private sector 
economists. February 6 and March 5, 2002. PRINTED, serial 
Number 107-52.
    Proposed Changes to Both the World Bank--International 
Development Association and the North American Development 
Bank--Hearing on Administration requests for the World Bank and 
North American Development Bank. PRINTED, serial Number 107-68.
    Expected Authorization Request on the U.S. Participation in 
the World Bank--International Development Association (IDA)--
Hearing on the expected authorization requests for the IDA 
featuring witnesses from nongovernmental organizations. Hearing 
held on July 19, 2002.
    Expected Authorization Request on the U.S. Participation in 
the World Bank--International Development Association (IDA) and 
the African Development Fund--Hearing on authorization requests 
featuring John Taylor, Undersecretary of the Treasury. Hearing 
held on July 25, 2002.
              SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS

                             (Ratio: 11-9)

                       SUE KELLY, New York, Chair

RON PAUL, Texas                      LUIS V. GUTIERREZ, Illinois
  Vice Chairman                      JAY INSLEE, Washington
PETER T. KING, New York              JANICE D. SCHAKOWSKY, Illinois
ROBERT W. NEY, Ohio                  DENNIS MOORE, Kansas
CHRISTOPHER COX, California          STEPHANIE TUBBS JONES, Ohio
DAVE WELDON, Florida                 MICHAEL E. CAPUANO, Massachusetts
WALTER B. JONES, North Carolina      RONNIE SHOWS, Mississippi
JOHN B. SHADEGG, Arizona             JOSEPH CROWLEY, New York
VITO FOSSELLA, New York              WILLIAM LACY CLAY, Missouri
ERIC CANTOR, Virginia                JOHN J. LAFALCE, New York
PATRICK J. TIBERI, Ohio                Ex Officio
MICHAEL G. OXLEY, OH
  Ex Officio

                          Oversight Activities

  efforts by financial regulators to fight fraud and protect consumers

    On March 6, 2001, the Subcommittee on Oversight and 
Investigations and the Subcommittee on Financial Institutions 
and Consumer Credit held a joint hearing to examine ways in 
which financial regulators of the insurance, banking, and 
securities sectors are working together to protect consumers, 
as is required under the Gramm-Leach-Bliley Act. The need to do 
so was highlighted by Martin Frankel, who migrated to the 
insurance industry after being barred from the securities 
industry. Frankel stole over $200 million from insurance 
companies before being captured. Witnesses included senior 
officials of the Treasury Department, FBI, SEC, insurance and 
business associations, and the General Accounting Office.

                    housing authority of new orleans

    On June 4, 2001, the Subcommittee held a field hearing in 
New Orleans on the report issued by the HUD Inspector General 
on the lack of decent, safe, and sanitary housing provided by 
the Housing Authority of New Orleans (HANO). The report 
disclosed a lack of progress in providing quality housing since 
HUD and the City of New Orleans signed a 1996 Cooperative 
Endeavor Agreement. The report stated that after spending over 
$139 million of the $243 million it received just for 
modernization activities in the previous eight years, HANO had 
not revitalized even one of its conventional housing sites. HUD 
had spent, in total, over $800 million on HANO since 1992, 
without an improvement in housing for residents. The hearing 
also examined ways in which a judicial receivership could 
result in long-term improvements to the housing managed by 
HANO. Witnesses included the Mayor of New Orleans, the Regional 
Inspector General from HUD, a senior HUD official, and long-
time residents of HANO. Committee and other New Orleans-area 
Members continued to discuss HANO's future with the HUD 
Secretary throughout the year.

 implementation of eft requirements of the debt collection improvement 
                    act of 1996 and the use of etas

    On June 20, 2001, the Subcommittee held a hearing to 
examine the status of the Electronic Funds Transfer 
requirements of the Debt Collection Improvement Act of 1996, 
known as the EFT 99 program, and to discuss the use Electronic 
Transfer Accounts, or ETAs. The purpose of the hearing was to 
determine the progress made towards a checkless system for 
paying Federal salaries, pensions, vendor payments, and Social 
Security benefits, whether the change has reduced costs, and 
whether low- and middle-income Federal payment recipients who 
do not have bank accounts are receiving their funds 
electronically through ETAs. Witnesses included the Treasury 
Department Assistant Secretary with responsibility over the 
program, the CEO of Banco Popular, which is heavily involved in 
the ETA program, and the Managing Attorney of the National 
Consumer Law Center. At the hearing, Chairwoman of the 
Subcommittee and its ranking minority member released a letter 
to GAO requesting a study of the EFT and ETA programs and 
recommendations for improvements.

                  the sec's role in capital formation

    On June 26, 2001, the Subcommittee held a hearing to 
examine the SEC's role in capital formation. Capital formation 
has been an implicit responsibility of the SEC since it was 
first created. In 1996, securities laws were amended by the 
National Securities Markets Improvement Act to explicitly 
provide that capital formation is an important responsibility 
of the SEC. In that act, the SEC was given general exemptive 
authority to allow them to waive specific requirements on a 
case-by-case basis, in order to give the SEC additional 
flexibility in assisting businesses access to the capital 
markets. The hearing reviewed the progress the SEC has made in 
furtherance of its statutory responsibilities to assist capital 
formation and explored suggestions as to how the SEC's could 
make greater progress. Witnesses included representatives of 
venture capital firms and the Vice Chairman of the American 
Conservative Union.

                 financial aspects of internet gambling

    On July 12, 2001, the Subcommittee held a hearing to 
examine whether to take legislative action against internet 
gambling. In a few short years, the Internet gambling industry 
has exploded. According to an Internet gambling committee of 
the National Association of Attorneys General, there were less 
than 25 such sites on the Web in the mid-1990s. Today, one of 
the Nation's leading securities firms estimates that there are 
between 1,200 and 1,400 e-gaming Web sites. In 2000, the House 
Banking Committee approved legislation that would have tackled 
prohibited gambling operations from accepting credit cards, 
checks, or other bank instruments in connection with illegal 
Internet gambling. The 106th Congress adjourned without 
enacting that or any other legislation. The hearing examined 
the changes in the industry since the previous Congress and the 
possible impacts of legislation. Witnesses included officials 
from gaming associations, law enforcement agencies, State 
lotteries, the NCAA, and addiction treatment organizations.

                over-regulation of automobile insurance

    On August 1, 2001, the Subcommittee held a hearing on the 
effects of State over-regulation of auto insurance on consumer 
choice. In New Jersey, over one-half of the 15 largest auto 
insurers in the country have either left or will leave in the 
near future, claiming excessive rate regulation as the reason. 
Over one million people in New Jersey will lose their 
automobile insurance, with a dwindling supply of alternative 
companies willing to do business in the State. In 
Massachusetts, two-thirds of those same 15 largest insurers 
either write little or no business or refuse to do business at 
all in the State, for the same reason as in New Jersey. 
Conversely, in Illinois and South Carolina, there are numerous 
auto insurance companies providing consumers with real choices 
at competitive prices without subsidizing risky drivers with 
bad records. In South Carolina, the number of insurers 
accessible to consumers has doubled since the State eliminated 
artificial price controls. Witnesses included representatives 
from three major insurance associations, a Vice President of 
the Brookings Institution, and the Director of Insurance from 
the Consumer Federation of America.

           problems in the hud section 203(k) housing program

    On September 10, 2001, the Subcommittee held a field 
hearing in Harlem, New York, on the fraud and severe management 
problems in the Section 203(k) housing program, under which HUD 
guarantees loans made to purchase and renovate single-family 
housing. Reports by the GAO and HUD OIG, and news organizations 
disclosed massive fraud in Harlem, Brooklyn, and the Bronx by 
speculators who took advantage of poor HUD oversight to bilk 
HUD and individual homebuyers out of tens of millions of 
dollars from 1995-2000. The HD OIG has obtained convictions 
against several dozen people involved in the schemes. The 
hearing examined the extent of the fraud and the impacts on 
individual homebuyers and community development. Witnesses 
included the HUD Assistant Secretary with responsibility for 
the program, senior officials from GAO and the HUD OIG, local 
development leaders, the Commissioner of the New York City 
housing authority, and victims. The HUD Assistant Secretary 
announced HUD's intention to work with the New York City 
housing authority towards a solution to the problems. Late in 
December, 2001, HUD Secretary Martinez and New York City Mayor 
Giuliani announced a program under which HUD would contribute 
significantly to the completion of work on hundreds of units.

                     identity theft of the deceased

    On November 8, 2001, the Subcommittee held a joint hearing 
with the Subcommittee on Social Security of the Committee on 
Ways and Means on preventing identity theft of the deceased by 
terrorists and criminals. The purpose of the hearing was to 
seek ways to ensure that the Death Master File (DMF) is 
transmitted more quickly from the Social Security 
Administration to the financial services industry, in order to 
protect families of the deceased from theft and financial 
fraud. The issue arose when a man detained in Great Britain, 
and suspected of training four of the terrorists who hijacked 
the airliners on September 11, was found to have used the 
Social Security number of a New Jersey woman who died in 1991. 
Witnesses included senior officials from the Social Security 
Administration and Commerce Department, GAO analysts who 
testified on the transmission and use of the DMF, attorneys 
representing the financial services industry, a special counsel 
with expertise in identity theft, and privacy advocates.
    The Chairwoman of the Subcommittee, Ms. Kelly, secured the 
commitments of the parties towards a more rapid distribution of 
the DMF. Thereafter, the Social Security Administration and 
Commerce Department announced that beginning in February 2002, 
they would jointly reduce the amount of time needed to release 
the DMF from over 35 days to approximately 10 days.

      impacts of enron collapse on investors and financial markets

    On December 12, 2001, the Subcommittee held a joint hearing 
with the Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises on the impacts of the collapse 
of Enron, Inc., the biggest bankruptcy in American history. The 
hearing examined the causes of the collapse as known at that 
time, including the use of special purpose entities and other 
accounting techniques by Enron that were reviewed and ratified 
by Arthur Andersen, Enron's auditor. The hearing also touched 
upon the SEC's oversight of the financial statements certified 
by accountants; the accounting rules that permitted Enron to 
not report billions of dollars in debt; and the actions of 
securities analysts following Enron, who failed to warn 
investors of its weakness. Witnesses included the Chief 
Accountant of the SEC, the Chief Executive Officer of Arthur 
Andersen, the Secretary-Treasurer of the AFL-CIO, and an expert 
on securities analysts.

    the patriot act oversight: investigating patterns of terrorist 
                               financing

    On February 12, 2002, the Subcommittee held a hearing to 
examine the initial progress under title III of the USA PATRIOT 
Act (Public Law 107-56), signed by President Bush on October 
26, 2001. The Act provided new tools to law enforcement to 
identify the patterns of financing used by terrorists and hence 
stop them before any future acts could occur. The Act also 
contained a number of provisions that seek to combat 
underground ``Hawala'' networks, and the hearing examined the 
investigative efforts have brought us closer to closing illegal 
Hawalas. Witnesses from the Treasury and Justice Department, 
the FBI, and private industry discussed the multilateral 
efforts to gather, disseminate, and use information about 
monetary flows in new ways to detect and prevent terrorism. 
Recent cases against suspected terrorist financiers were 
highlighted, and the witnesses discussed the balancing between 
investigatory requirements and the protection of civil 
liberties.

      retirement protections: fighting fraud in the sale of death

    On February 26, 2002, the Subcommittee held a hearing on 
the use and potential abuse of viatical settlements. Viatical 
settlements involve companies paying cash to purchase life 
insurance policies from terminally ill people at a fraction of 
the policy value and then reselling the policies to investors. 
The terminally ill individual gets immediate up-front cash, and 
the investors can get a significant return when the individual 
dies. Additional commissions go to the broker who negotiates 
the deal, the agent who finds the investors, the evaluators who 
review the individual's medical files, and the settlement 
company and escrow service. The hearing witnesses from the 
industry and State regulators talked about the importance of 
fighting viatical fraud and educating consumers about these 
investments, and in particular, the need to promote better 
consumer education for retirement planning by the elderly. The 
witnesses also discussed the critical need for coordination 
among Federal and State agencies, and the ongoing desirability 
of expanded coordination and access to criminal and 
disciplinary databases, such as through the Financial Services 
Antifraud Network Act of 2001.

    how much are americans at risk until congress passes terrorism 
                         insurance protection?

    On February 27, 2002, the Subcommittee held the first 
Congressional hearing to examine the implications of a lack of 
terrorism insurance. In the five months since September 11, the 
risk for terrorism-related losses had been shifted from 
reinsurers to primary insurers and then to the insured. 
Reinsurers and insurers had begun shedding their exposure to 
terrorism risk as insurance contracts came up for renewal, 
leaving policy holders increasingly exposed to losses from a 
terrorist attack. Numerous officials for the insurance and 
construction industries, the Treasury Department, State 
regulators, the GAO, and other interested parties testified or 
submitted statements for the record on the negative impacts 
that the lack of insurance was having on major construction 
projects and employment.

 the effects of the global crossing bankruptcy on investors, markets, 
                             and employees

    On March 21, 2002, the Subcommittee held the first 
Congressional hearing on the impacts and causes of the 
bankruptcy of Global Crossing, Ltd., then the fourth biggest 
bankruptcy in the history of the United States. The hearing 
examined the impacts and propriety of the accounting model for 
the recognition of income from trades, or ``swaps,'' of high-
speed fiber-optic telecom cable capacity. Each telecom company 
reports expected income from such swaps, or ``pro forma'' 
results, differently, since such future earnings need not be 
reported for in accordance with generally accepted accounting 
principles. Witnesses included the Chief Executive Officer and 
the Chief Financial Officer of Global Crossing; senior 
executives from Qwest Communications International, WorldCom, 
Inc., and Cable & Wireless Global; a representative from the 
SEC; and two telecom analysts. After the hearing, the Committee 
continued to investigate the bankruptcy, the sale of the 
company to foreign interests, and the company's ties to stock 
analysts and investment banking firms (see below). In August, 
Qwest officials clarified and corrected its testimony after 
investigations revealed discrepancies in its accounting for 
swaps, resulting in sizable restatements in earnings for prior 
periods.

   one broker gone bad: punishing the criminal, making victims whole

    On May 23, 2002, the Subcommittee held the first 
Congressional hearing to examine the activities of indicted 
former Cleveland stockbroker, Frank Gruttadauria. Gruttadauria 
was the manager of the Cleveland branch of Lehman Brothers, and 
at the time of the hearing was alleged to have stood accused of 
having defrauded his clients of as much as $300 million over a 
15-year period. The goals of the hearing were to determine the 
extent of the losses suffered by his clients, and whether 
control systems in the industry and the SEC failed to detect 
and thwart his activity. Committee reviews of SEC documents 
prior to the hearing revealed that the SEC missed 1993 evidence 
of ``account-churning'' that could have prevented years of 
fraud and millions of dollars in victim losses. The Speaker of 
the House introduced his constituent, who suffered major losses 
due to Gruttadauria's activities. The SEC and witnesses from 
Lehman Brothers, SG Cowen and CO., the NYSE, the NASD, and 
NASAA pledged their cooperation in strengthening compliance 
departments and placing more emphasis on tougher enforcement. 
The hearings made it clear that appropriate efforts need to be 
undertaken by the SEC and the Self-Regulatory Agencies (SROs) 
to ensure improvements in information sharing and revisions in 
relevant rules, regulations and guidelines against nefarious 
activities by broker/dealers. The NYSE and NASD thereafter 
proposed new rules for the SEC's approval. On November 14, 
2002, Gruttadauria was sentenced to seven years in prison for 
his illegal acts.

  fighting discrimination against the disabled and minorities through 
                        fair housing enforcement

    On June 25, 2002, the Subcommittees on Housing and 
Community Opportunity and on Oversight and Investigations held 
a joint hearing on the extent of discrimination against the 
disabled and minorities and HUD's efforts to fight such 
discrimination. Past leadership at HUD failed to process fair 
housing cases in a timely manner. At the end of FY 2000, the 
percentage of fair housing cases remaining open past the 
statutory deadline of 100 days was over 80 percent. At the end 
of the first fiscal year of the Bush Administration, FY 2001, 
the aged-case inventory had been reduced to 37.1 percent, the 
first time since the passage of Fair Housing Act Amendments of 
1988 that HUD's aged-case backlog has dropped below 50 percent. 
Housing consultants and a senior HUD official testified about 
the past lack of attention to the caseload and current HUD 
leadership's efforts to reduce the caseload.

                        mold: a growing problem

    On Thursday, July 18, 2002, the Subcommittees on Housing 
and Community Opportunity and on Oversight and Investigations 
held a joint hearing to examine the extent of problems in the 
insurance and housing industry over mold. Mold-related claims 
by homeowners rose to over a billion dollars last year in just 
one State, approximately a five-fold increase over the previous 
year's nationwide total. Across the U.S., homeowners' insurers 
paid out $1.18 in losses and expenses for every $1 earned in 
premiums. Members of the scientific community testified on the 
current understanding of mold issues, and discussed the 
literature review by the Centers for Disease Control (CDC) now 
underway and due out this spring. Other witnesses discussed the 
sudden spike in mold litigation and remediation claims, and how 
these lawsuits are affecting the home building industry, 
unions, small businesses, and the insurance industry. In 
particular, the witnesses talked about the lack of scientific 
standards for measuring mold and determining the extent of any 
mold dangers, and the need for better guidance or proactive 
statements by Federal agencies.

                   catastrophic bonds: spreading risk

    On October 8, 2002, the Subcommittee held a hearing on the 
role of risk-linked securities-in particular, ``cat'' bonds-to 
facilitate greater capacity in traditional catastrophic 
insurance markets. The General Accounting Office presented a 
report, requested by the House Financial Services Committee, 
examining the role of these securities and current factors 
affecting their use. The report findings were categorized into 
four regulatory, accounting, tax, and investor areas: (1) 
regulatory--the regulatory accounting treatment of 
securitization, and how risk transfer from non-indemnity based 
coverage (securitization compensation based on the size of an 
event) can be adjusted to allow credit similar to traditional 
indemnity based reinsurance (compensation based on an insurer's 
losses); (2) accounting--the effect of a proposed 
capitalization requirement interpretation on SPRV's as put 
forward by FASB, and whether increasing the equity requirements 
in these vehicles would prohibitively increase the costs of 
securitization; (3) tax--allowing for ``pass-through'' tax 
treatment of these instruments at the SPRV level (whether 
there's a double taxation of the investment); and (4) 
investment--the difficulty of assessing and disclosing the 
risks of these instruments by fund managers and other 
institutional investors. The Subcommittee received additional 
testimony and from the National Association of Insurance 
Commissioners regarding their activities to facilitate and 
reduce regulatory barriers to the catastrophic financial 
market, as well as the bond market industry, a reinsurance 
company, and one of the largest bond placement companies in the 
United States.

                             Hearings Held

    Protecting Consumers: What Can Congress Do to Help 
Financial Regulators Coordinate Efforts to Fight Fraud. Joint 
hearing with the Subcommittee on Financial Institutions and 
Consumer Credit entitled ``Protecting Consumers: What Can 
Congress Do to Help Financial Regulators Coordinate Efforts to 
Fight Fraud.'' March 6, 2001. March 6, 2001. PRINTED, serial 
no. 107-2.
    Inspector General's Report on the Housing Authority of New 
Orleans. Field hearing in New Orleans, Louisiana on the 
Inspector General's report on the Housing Authority of New 
Orleans. June 4, 2001. PRINTED, serial no. 107-21.
    Implementation of EFT Requirements. Hearing on the 
implementation of EFT requirements. June 20, 2001. PRINTED, 
serial no. 107-27.
    The SEC's Role in Capital Formation: Help or Hinderance? 
Hearing entitled ``The SEC's Role in Capital Formation: Help or 
Hinderance?'' June 26, 2001. PRINTED, serial no. 107-29.
    Financial Aspects of Internet Gaming: Good Gamble or Bad 
Bet? Hearing entitled ``Financial Aspects of Internet Gaming: 
Good Gamble or Bad Bet?'' July 12, 2001. PRINTED, serial no. 
107-34.
    Over-Regulation of Automobile Insurance: A Lack of Consumer 
Choice. Hearing entitled ``Over-Regulation of Automobile 
Insurance: A Lack of Consumer Choice.'' August 1, 2001. 
PRINTED, serial no. 107-42.
    Section 203(k) Housing Program. Field hearing in New York, 
New York, on the section 203(k) housing program. September 10, 
2001. PRINTED, serial no. 107-44.
    Preventing Identity Theft by Terrorists and Criminals. 
Joint hearing with the Committee on Ways and Means Subcommittee 
on Social Security on preventing identity theft by terrorists 
and criminals. November 8, 2001. PRINTED, serial no. 107-50.
    The Enron Collapse: Impact on Investors and Financial 
Markets. Joint hearing with the Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises 
entitled ``The Enron Collapse: Impact on Investors and 
Financial Markets.'' December 12, 2001. PRINTED, serial no. 
107-51, Part I.
    PATRIOT Act Oversight: Investigating Patterns of Terrorist 
Financing. Hearing entitled ``PATRIOT Act Oversight: 
Investigating Patterns of Terrorist Financing.'' February 12, 
2001. PRINTED, serial no. 107-53.
    Retirement Protection: Fighting Fraud in the Sale of Death. 
Hearing entitled ``Retirement Protection: Fighting Fraud in the 
Sale of Death.'' February 26, 2002. PRINTED, serial no. 107-55.
    How Much are Americans at Risk Until Congress Passes 
Terrorism Insurance Protection? Hearing entitled ``How Much are 
Americans at Risk Until Congress Passes Terrorism Insurance 
Protection?'' February 27, 2002. PRINTED, serial no. 107-57.
    The Effects of the Global Crossing Bankruptcy on Investors, 
Markets, and Employees. Hearing entitled ``The Effects of the 
Global Crossing Bankruptcy on Investors, Markets, and 
Employees.'' March 21, 2001. PRINTED, serial no. 107-63.
    One Broker Gone Bad: Punishing the Criminal, Making Victims 
Whole. Hearing entitled ``One Broker Gone Bad: Punishing the 
Criminal, Making Victims Whole.'' May 23, 2001. PRINTED, serial 
no. 107-71.
    Fighting Discrimination Against the Disabled and Minorities 
through Fair Housing Enforcement. Joint hearing with the 
Subcommittee on Housing and Community Opportunity entitled 
``Fighting Discrimination Against the Disabled and Minorities 
through Fair Housing Enforcement.'' June 25, 2002. Serial no. 
107-73.
    Mold: A Growing Problem Joint hearing with the Subcommittee 
on Housing and Community Opportunity entitled ``Mold: A Growing 
Problem.'' July 18, 2002. PRINTED, serial no. 107-77.
    Catastrophe Bonds: Spreading Risk. Hearing entitled 
``Catastrophe Bonds: Spreading Risk.'' October 8, 2002. Serial 
no. 107-86.
                 OVERSIGHT PLAN FOR THE 107TH CONGRESS

    Clause 2(d) of rule X of the Rules of the House of 
Representatives for the 107th Congress requires that each 
standing committee in the first session of a congress adopt an 
oversight plan for the two-year period of the Congress and 
submit the plan to the Committee on Government Reform and the 
Committee on House Administration.
    Clause 1(d)(1) of rule XI requires each committee to submit 
to the House not later than January 2 of each odd-numbered 
year, a report on the activities of that committee under rules 
X and XI during the Congress ending on January 3 of such year. 
Clause 1(d)(3) of rule XI also requires that the report include 
a summary of the oversight plans submitted pursuant to clause 
2(d) of rule X; a summary of the actions taken and 
recommendations made with respect to each such plan; and a 
summary of any additional oversight activities undertaken by 
the committee and any recommendations made or actions taken 
thereon.
    Part A of this section contains the Oversight Plan of the 
Committee on Financial Services for the One Hundred Seventh 
Congress., which the Committee considered and adopted on 
February 14, 2001.
    Part B of this section contains a summary of the actions 
taken to implement that plan and the recommendations made with 
respect to the plan. Additional oversight activities undertaken 
by the Committee, and the recommendations made or actions taken 
thereon, are contained in the specific sections relating to the 
acitivites of the full Committee and each of the subcommittees.
                                 Part A

  OVERSIGHT PLAN FOR THE COMMITTEE ON FINANCIAL SERVICES FOR THE ONE 
                        HUNDRED SEVENTH CONGRESS

                              ----------                              


      February 14, 2001.--Approved by the Committee on Financial 
                                Services

                              ----------                              

    Clause 2(d)(1) of rule X of the Rules of the House requires 
each standing Committee, not later than February 15 of the 
first session, to adopt an oversight plan for the 107th 
Congress. The oversight plan must be submitted simultaneously 
to the Committee on Government Reform and the Committee on 
House Administration.
    The following agenda constitutes the oversight plan of the 
Committee on Financial Services for the 107th Congress. It 
includes areas in which the Committee and its subcommittees 
expect to conduct oversight during this Congress but does not 
preclude oversight or investigation of additional matters or 
programs as they arise. The Committee will consult, as 
appropriate, with other committees of the House that may share 
jurisdiction on any of the subjects listed below.

                         monetary policy issues

    Federal Reserve's Conduct of Monetary Policy. The Committee 
will hold hearings on the Federal Reserve Board's (Fed's) semi-
annual reports on the conduct of U.S. monetary policy. The 
Chairman of the Board of Governors will appear regularly before 
the Committee to address issues associated with monetary policy 
and the state of the economy, such as past and prospective 
developments in employment, productivity, and investment.

                     International Financial Issues

    Annual report and testimony by the Secretary of the 
Treasury on International Monetary Fund (IMF) Reform and the 
State of the International Financial System. The Committee will 
review and hold hearings on the annual reports to Congress from 
the Secretary of the Treasury on the IMF and the state of the 
international financial system. Pursuant to Section 613 of 
Public Law 105-277, the Committee will hear annual testimony 
from the Secretary of the Treasury on: (1) progress made in 
reforming the IMF; (2) the status of efforts to reform the 
international financial system; and (3) compliance by borrower 
countries with the terms and conditions of IMF assistance.
    Reauthorization of the Export-Import Bank of the United 
States. With the authority of the Export-Import Bank of the 
United States set to expire at the end of FY 2001, the 
Committee will review the merits of extending and revising the 
charter of the Bank. In particular, the Committee will examine 
the extent to which the Bank's competitiveness has been eroded 
through the use of ``untied aid'' arrangements by foreign 
export credit agencies, as well as the development of so-called 
``market window'' lending institutions by several trade 
competitors. In addition, the Committee will assess the 
appropriateness of current guidelines under which the President 
(acting through the Secretary of State) may block Exim 
financing because of foreign policy considerations.
    U.S. Contributions to the International Financial 
Institutions. The Committee will review U.S. participation in, 
and the effectiveness of U.S. policy toward, the IMF, the World 
Bank Group, and the regional development banks.
    Trade in Financial Services. The Committee will review the 
International Fund for Agricultural Development (IFAD) 
organization, the Administration's efforts in the World Trade 
Organization (WTO) Services Negotiations, and through bilateral 
agreements (such as the proposed free trade agreements with 
Chile and Singapore, and the secret memorandum developed as 
part of the United States - Japan bilateral insurance 
agreement) to achieve market-opening liberalization in 
financial services. The Committee will include in its review 
current efforts to open foreign insurance markets and maintain 
transparency in insurance regulation and negotiation.
    International Financial Services Privacy. The Committee 
will review the implementation and negotiation of international 
privacy standards, and the application of those standards to 
American companies. The review will be conducted in 
coordination with the Committee's oversight of the financial 
privacy provisions of the Gramm-Leach-Bliley Act (GLB) 
discussed below.
    Coordination of International Financial Services Programs. 
The Committee will review the coordination among various 
Executive branch agencies in promoting financial services 
trade, including the priority and rank of such programs and 
program officials.
    World Bank AIDS Trust Fund. The Committee will monitor and 
conduct necessary oversight activities regarding the 
implementation of legislation passed by the 106th Congress 
(Public Law 106-264) to authorize an international trust fund, 
led by the U.S. and other donors, to address the AIDS crisis 
through support of HIV/AIDS prevention, education and treatment 
efforts in sub-Saharan Africa and other hard-hit regions.
    Holocaust Claims. The Committee will actively review 
efforts to ensure that restitution is made to Holocaust victims 
and heirs for confiscated bank accounts or payable insurance 
claims.
    Basel Capital Rules. The Committee will review new rules 
for bank capital under consideration by the Basel Commission.
    International Debt Relief. The Committee will monitor and 
conduct necessary oversight activities regarding the 
implementation of legislation passed by the 106th Congress to 
authorize U.S. funding for the Enhanced Heavily Indebted Poor 
Country (HIPC) Initiative. The Committee will assess progress 
made by the IMF and World Bank in granting multilateral debt 
relief to qualified HIPC countries. The Committee will also 
monitor the development and adoption of poverty reduction 
strategies by the HIPC countries, and will assess compliance 
with other conditions on U.S. funding specified in the 
authorizing legislation.

                            Economic Growth

    Capital Formation. The Committee recognizes that capital 
formation is a crucial economic issue, particularly in the 
global information economy. New businesses must be able to 
attract capital to enter the marketplace. Established 
businesses must be able to attract capital to expand and 
compete. The Committee will closely examine all laws, policies, 
and regulations within its jurisdiction to encourage capital 
formation and eliminate barriers to it, including barriers with 
respect to underserved communities.
    Investment Company Act of 1940 and New Economy Businesses. 
The Committee will review the impact of the Investment Company 
Act of 1940 on ``incubator funds'' and other capital formation 
vehicles that have been important to new economy businesses.
    Development of Economic Opportunities. The Committee will 
review economic development programs under the Committee's 
jurisdiction, including programs administered by the 
Appalachian Regional Commission, the Economic Development 
Administration, and the newly created Delta Regional Authority.
    Community Development Financial Institutions (CDFI) Fund. 
In reviewing the expired authorization of the CDFI Fund, 
created in 1994 to promote economic revitalization and 
community development, the Committee will examine the record of 
the Fund in implementing reforms pledged in 1997 to eliminate 
irregularities in the grant making process identified during 
the course of an investigation by the Subcommittee on General 
Oversight. The Committee will monitor the CDFI Fund's 
implementation of the New Markets Tax Credits program, which 
was part of the Renewable Communities and New Markets 
initiative enacted into law during the 106th Congress.
    PRIME. The Committee will examine the implementation of a 
new microenterprise lending program--the Program for Investment 
in Microentrepeneurs Act, otherwise known as the PRIME Act--
that was included in GLB.
    Reauthorization of the Defense Production Act. The 
Committee will review the performance of the Defense Production 
Act in preparation for its possible reauthorization.

            Financial Services Industry/Consumer Protection

                         financial institutions

    Implementation of Gramm-Leach-Bliley Act (GLB). The 
Committee will undertake a comprehensive review of 
implementation of the Gramm-Leach-Bliley Act (Public Law 106-
102), the landmark financial modernization legislation enacted 
in the 106th Congress. Among the issues that may be examined 
are regulatory and industry implementation of the Act's 
provisions governing financial privacy, merchant banking, 
financial holding company requirements, the implementation of 
GLB consumer protections governing the sale of insurance, 
securities, and banking products, and Community Reinvestment 
Act (CRA) sunshine provisions. The review may also identify 
potential changes to GLB to facilitate innovation in the 
financial services sector while protecting the safety and 
soundness of financial institutions.
    Financial Privacy and Consumers. In addition to reviewing 
implementation of the privacy provisions of GLB, the Committee 
will hold hearings to identify and address existing and 
emerging threats to the privacy of financial information and 
assess the adequacy of governmental and industry efforts to 
combat such threats. The Committee will consider whether 
further reforms may be needed to protect consumer identities 
and to allocate further responsibility for protecting and 
fixing consumer credit after an identity theft occurs. The 
Committee will consult, as appropriate, with other relevant 
Committees in addressing these issues.
    Electronic Signatures Legislation: Effect on Financial 
Services Industry. In light of the recent enactment of the 
Electronic Signatures in Global and National Commerce Act 
(Public Law 106-229), the Committee will monitor the financial 
services industry to ensure that it is able to provide new 
services to consumers without the potentially anti-competitive 
obstacles of outdated statutes, and that consumers continue to 
receive appropriate disclosures as required by law.
    Money Laundering. The Committee will review enforcement of 
anti-money laundering laws and regulations, including the 
annual National Money Laundering Strategy submitted by the 
administration pursuant to 31 U.S.C. 5341 (Public Law 105-310), 
and the money laundering vulnerabilities associated with so-
called ``offshore secrecy havens''.
    Contract Netting Improvement. The Committee will review 
banking and bankruptcy insolvency laws with respect to the 
termination and netting of financial contracts. Legislation 
which would have ensured the orderly disposition of financial 
contracts held by bankrupt counterparties passed the House 
three times in the 106th Congress, and passed the Senate as 
part of a comprehensive bankruptcy reform package which was 
vetoed by the previous Administration.
    Deposit Insurance Reform. The Committee will conduct a 
comprehensive analysis of all aspects of Federal deposit 
insurance to determine whether any changes to the system are 
necessary. The Committee seeks to ensure the continued safety 
and soundness of the financial system and reduce the 
possibility of a crisis similar to the savings and loan debacle 
of the late 1980's and early 1990's. The review will encompass 
issues relating to the banking, thrift, and credit union 
industries. Some of the specific issues that may be included in 
this analysis are: (1) merger of the Bank Insurance Fund (BIF) 
and the Savings Association Insurance Fund (SAIF) to reduce the 
risk of fund insolvency; (2) options regarding deposit 
insurance pricing and coverage; (3) the appropriateness of the 
current minimum ratio of the funds to insured deposits and the 
effect of changes in the deposit insurance system on the 
reserve ratio and potential taxpayer liability; anc (4) 
examination of whether any cost savings to banks and thrifts 
resulting from deposit insurance reform are passed on to 
customers.
    First Accounts/ETAs. The Consolidated Appropriations Act 
for 2001, H.R. 4490, included $2 million in funding for a pilot 
program of the Administration's First Accounts Initiative. This 
initiative is intended to extend traditional banking services 
to Americans who, for various reasons, do not now have checking 
or savings accounts or any other relationship with a bank or 
other financial services firm, and rely upon usually higher-
cost alternatives to cash checks or make payments. In addition 
to monitoring the First Accounts Initiative, the Committee will 
continue to monitor the Administration's implementation of EFT 
99-which required most social security, veterans benefits, and 
other Federal payments to be made by electronic funds transfer 
rather than paper check-and review the implementation, 
including the costs and benefits, of the new electronic 
transfer accounts (ETAs).
    Benefits and Risks of Industry Consolidation. The Committee 
will review the benefits derived from consolidation in the 
financial services industry as well as the findings of a G-10 
report on potential systemic risks associated with 
consolidation. Potential issues for oversight include financial 
institution examinations, market discipline, taxpayer 
liability, and global implications.
    State of the Industry. The Committee will require the 
Federal regulators to report periodically on the state of the 
banking, thrift, and credit union industries in order to alert 
Congress to any emerging weaknesses in the financial sector and 
supervisory measures being taken to counter such weaknesses. 
Recent reports on weaknesses in credit quality and decreased 
earnings performance highlight the need to exercise 
Congressional oversight. Conflicting issues, such as tightened 
underwriting standards versus the potential for a credit 
crunch, illustrate the complexity and importance of such 
oversight. Additionally, recent warnings on credit quality 
underscore the importance of ensuring that bank regulators and 
bank management have sufficient flexibility to set appropriate 
levels of loan loss reserves. Finally, the Committee will 
continue to monitor proposed changes to accounting standards 
relating to loan loss reserves.
    The Riegle-Neal Interstate Banking and Branching Efficiency 
Act of 1994. This statute updated Federal law to provide a 
framework for mergers and acquisitions of banks across State 
lines. The Committee will review whether the widespread use of 
the Internet and the evolution of the financial services 
industry since enactment of this law have made its provisions 
obsolete. Additionally, the Committee will review redundant 
geographic restrictions under the Home Owners' Loan Act (HOLA), 
national and State caps on deposit concentrations, and issues 
relating to preemption of State laws by the Office of Thrift 
Supervision (OTS) and the Office of Comptroller of the Currency 
(OCC).
    Credit Unions. The Committee will continue its oversight of 
the implementation of the Credit Union Membership Access Act of 
1998 by the National Credit Union Administration (NCUA). Other 
issues relating to the credit union industry will also be 
reviewed, including powers of Federally-chartered credit unions 
versus State-chartered institutions.
    Fair Credit Reporting Act (FCRA). The Committee will 
conduct a comprehensive review of the FCRA, with a focus on 
such issues as legislation pertaining to the Federal Trade 
Commission staff opinion letter (the so-called ``Vail letter'') 
relating to employer investigations of employee misconduct, the 
accuracy of consumer credit reports, and the disclosure of 
credit scores.
    Fair Debt Collection Practices Act (FDCPA). The Committee 
will review this statute, particularly in view of the growth of 
routine bundling and selling of loans by the loan originator.
    Brokered Certificates of Deposit. The Committee will review 
whether adequate protections and disclosures exist for 
purchasers of brokered CDs.
    Regulatory Burden Reduction. The Committee will continue to 
analyze measures to reduce unnecessary burdens resulting from 
outdated and unnecessary laws and regulations. Included in this 
area are proposals to end the prohibition on banks paying 
interest on business checking accounts and to permit the 
Federal Reserve to pay interest on reserves of depository 
institutions held at Federal Reserve Banks. The Committee will 
review whether cost savings achieved through regulatory burden 
reduction are passed on to customers.
    ``Know-Your-Customer'' Rules. In light of the controversy 
over the ``Know Your Customer'' anti-money laundering 
regulation proposed and later withdrawn by Federal banking 
regulators, the Committee will review recent regulatory and 
industry initiatives to promote enhanced scrutiny of so-called 
``high-risk'' accounts or transactions.
    Ergonomics Rule and the Financial Services Industry. The 
Committee will review the regulatory impact, including 
potential costs and benefits, of the new Federal ergonomics 
rule on the financial services industry.
    Consumer Protections. In addition to consumer issues 
addressed elsewhere in this oversight plan, the Committee will 
consider other issues concerning protections for consumers of 
financial services, such as recent financial literacy 
initiatives; the effect on consumers of industry consolidation, 
including acquisitions of commercial lending operations by 
insured depository institutions; the growth of alternatives to 
traditional banking branches and services; enforcement of the 
provisions of the Consumer Leasing Act; and the scheduled 
sunset of the Truth in Savings Act's civil liability 
provisions.

                               Securities

    Securities Market Structure. The Committee will initiate a 
comprehensive review of the regulatory structure of the 
National Market System, including international considerations, 
with an eye toward overhauling the Securities Exchange Act of 
1934 to promote greater competition, efficiency and 
transparency in the securities markets.
    Improving Market Interconnection and Competition. The 
Committee will review the intermarket trading system, including 
its present and emerging international features, which connects 
various market centers and consider how that system can be 
improved to take better advantage of modern technologies and 
thereby promote greater competition and efficiency in the 
marketplace.
    Regulatory Conflicts Arising From Increasing Convergence of 
Financial Services Firms. The Committee will examine the 
implications of increasing affiliations among financial 
services firms in the wake of GLB. Included in this review will 
be the implications for investors of certain restrictions under 
section 17 of the Investment Company Act of 1940.
    Accessibility of Market Data. The Committee will review the 
regulations governing securities market data and other 
financial market databases, and consider proposals to improve 
the content and accessibility of market data, as well as to 
promote competition and efficiency in the provision of that 
data. This review will include consideration of legislative 
proposals affecting the rights of users and publishers of 
financial market databases.
    Securities and Exchange Commission (SEC) Reauthorization 
and Review. The Committee will review the budget request by the 
SEC and consider reauthorization of the Commission. In 
addition, the Committee will review the organizational 
structure of the Commission, including the functioning of each 
division, as well as the Office of Economic Analysis, to ensure 
the Commission is efficiently and effectively carrying out its 
mission to promote capital formation and protect investors.
    SEC Fees. The Committee will consider proposals to reduce 
fees charged to securities markets participants. These fees, 
originally imposed to finance the SEC, have generated revenues 
exceeding the cost of running the agency by several times, 
effectively resulting in a tax on capital and a significant 
burden on investors.
    Social Security and Investor-Directed Retirement Accounts. 
The Committee will examine proposals to reform Social Security 
by providing for investor-directed retirement accounts, and 
consider these proposals' impact on the capital markets and 
their implications for investors. The Committee will consider 
changes to the Federal securities laws to promote competition 
and ensure investor protection in connection with the creation 
of such investor-directed retirement accounts.
    Stock Options. The Committee will examine the regulations 
governing the use of, and accounting for, stock options, and 
consider what improvements might be needed to enhance their 
utility for public companies and their investors and employees. 
In conducting this review, the Committee will consult, as 
appropriate, with other Committees.
    Investor Access to Initial Public Offerings. The Committee 
will consider the allocation of IPOs and the efficiency and 
fairness of their allocation, including public access to IPOs 
as well as how IPO allocation affects the efficient promotion 
of capital formation.
    Technology in the Securities Markets. The Committee will 
review the extent to which SEC regulations promote the 
efficient use of the Internet to provide investors access to 
information about investments, including prospectus delivery. 
The Committee will also review practices by, and regulations 
governing, on-line brokerage firms as well as questions raised 
by the use of the Internet and other new technologies in 
connection with securities transactions.
    New Investment Products. The Committee will monitor 
developments in new mechanisms allowing investors to access the 
securities markets online to ensure robust competition and 
continued investor protection.
    Decimal Trading. The Committee will closely monitor and 
review the implementation of decimal pricing in the securities 
markets to ensure speedy and efficient implementation of 
decimal pricing throughout the securities marketplace, 
consistent with the goal of the Common Cents Stock Pricing Act 
of 1997.
    Mutual Fund Disclosure. The Committee will monitor the 
implementation of new rules regarding disclosure of after-tax 
returns to mutual fund investors, as well as other disclosure 
requirements, to ensure these requirements maximize useful 
information for investors, consistent with efficiency and 
competition in the mutual fund marketplace.
    Bond Market. The Committee will monitor the implementation 
of the Trade Reporting and Comparison Entry Service (TRACE) and 
consider methods to improve transparency and competition in the 
bond market.
    Self-Regulatory Organizations. The Committee will examine 
the implications for competition in the marketplace of the 
existing SRO structures, in light of imminent public offerings 
by several SROs, as well as the implications to competition in 
the marketplace of SRO regulations, and the role of the SEC in 
overseeing those regulations.
    SEC Exemptive Authority. The National Securities Markets 
Improvement Act of 1996 provided new exemptive authority to the 
SEC. The Committee will monitor the Commission's use of this 
authority to promote more efficient regulation and greater 
competition in the marketplace, and to eliminate burdensome 
regulation.
    Commodity Futures Modernization Act Implementation. The 
Committee will review the implementation of the Commodity 
Futures Modernization Act of 2000 to ensure the continued 
success of the U.S. derivatives markets and prevent unnecessary 
regulatory burdens on those markets. The Committee will monitor 
the actions of the SEC and the Commodities Futures Trading 
Commission (CFTC) to ensure the agencies' actions are 
consistent with the deregulatory spirit of the Act. In 
addition, the Committee will review disclosure and other 
requirements for the accounting of derivatives by financial 
institutions to ensure antifraud protections in place are 
consistent with investor protection, capital formation, 
competition, and efficiency in the securities markets.
    Accounting Standards: Protection Against Fraud and 
International Harmonization. The Committee will review 
accounting standards and interpretations set forth by the 
Financial Accounting Standards Board as they pertain to anti-
fraud provisions under the Federal securities laws, including 
the accounting standards used for mergers and acquisitions. The 
Committee will also consider initiatives by the SEC and others 
to harmonize international accounting standards.
    Organized Crime and Securities Markets. The Committee will 
examine issues relating to the integrity of the securities 
exchanges, including recent allegations of organized crime 
involvement in manipulating markets and defrauding individual 
investors.
    Investment Company Act of 1940 and the Employee Retirement 
Income Security Act (ERISA). The Committee will examine 
regulatory inconsistencies between the Investment Company Act 
of 1940 and ERISA to determine what legislative or other 
changes are necessary to improve the effectiveness of each of 
those Acts for mutual fund investors. In conducting this 
review, the Committee will consult, as appropriate, with other 
Committees.
    Securities Investor Protection Corporation. The Committee 
will review the operations of the Securities Investor 
Protection Corporation and proposals to improve its 
effectiveness.
    Timely stock trade execution. The Committee will review 
industry practices with respect to t+3 stock execution to 
ensure stock executions are not delayed and to enhance the 
ability of market participants to move to t+1 execution.

                               Insurance

    Workers Compensation Insurance. The Committee will examine 
the current state of workers compensation insurance to 
determine the reasonableness of the types of claims and charges 
being made, and to consider whether further efficiencies or 
anti-fraud mechanisms can be developed.
    Insurance Marketing. The Committee will examine a number of 
consumer protection issues concerning the marketing of 
insurance products, potentially including the churning of life 
insurance, sales and marketing representations, coercion and 
pressure tactics, product bundling, excessive premium charges 
for credit insurance and mortgage insurance, and Internet 
marketing of insurance products.
    Insurance Solvency Regulation. The Committee will examine 
the current accreditation program of the National Association 
of Insurance Commissioners (NAIC) that judges the adequacy of 
State insurance regulatory systems.
    Insurance Fraud. The Committee will examine the efforts by 
the States, the NAIC, and other entities, to locate and fight 
insurance fraud, particularly in implementing reforms developed 
after the Martin Frankel scandal.
    NARAB Implementation. The Committee will determine whether 
a sufficient number of States are implementing uniform or 
reciprocal insurance agency licensing rules as required under 
the National Association of Registered Agents and Brokers Title 
of GLB, and what further measures are necessary to promote 
uniformity in insurance licensing.
    Preemption of State Insurance Law. The Committee will 
review any efforts by Federal agencies to preempt State laws 
governing insurance activities, and will also examine any 
controversial State insurance laws to ensure that they do not 
significantly interfere with Federally authorized powers of 
financial institutions.
    Insurance Product Approval. The Committee will review the 
50 State approval process for allowing new insurance products 
and forms to be admitted into the insurance markets.
    National Insurance Uniformity. The Committee will review 
various alternatives for modernizing the regulation of 
insurance, including reform efforts by the NAIC, development of 
interstate and regional regulatory compacts, facilitation of 
nationwide State-run insurance regulation programs, proposals 
for an optional Federal insurance charter, and other reforms 
for improving the efficiency and effectiveness of insurance 
regulation.
    Insurance Consumer Protections. The Committee will examine 
the regulatory systems established by the States to protect 
consumers' insurance interests, such as efforts to prevent 
discrimination against victims of domestic violence, to ensure 
adequacy of reimbursement of overpayments that are the result 
of racial or gender discrimination, and to ensure that consumer 
policy rights and recovery procedures are fully protected. The 
Committee will also examine how consumer inquiries are recorded 
as part of consumer claim records.
    Seniors' Retirement Needs. The Committee will review the 
insurance needs particular to those contemplating or currently 
in retirement, including the use of annuities and other 
insurance pension programs, as well as nursing care insurance 
and other old age insurance programs.
    Class Action Insurance Litigation. The Committee will 
review issues surrounding class action suits filed in the name 
of insurance policy holders, examining the reasonableness of 
fees and compensation awarded and determining to what degree 
the settlements serve the parties' interests. The Committee 
will also examine the effect of large awards on costs for 
consumers as well as the impact on State regulation of 
insurance. As appropriate, the Committee will consult with 
other Committees in reviewing these issues.

                 Federal Agencies/Agency Program Issues

    Government Sponsored Enterprises (GSEs). The Committee will 
continue its comprehensive review of the three housing GSEs--
Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. Areas 
to be covered include: (1) review of implementation by Fannie 
Mae and Freddie Mac of their October 2000 voluntary agreement 
to enhance market discipline and transparency; (2) the 
governmental structure and authorities for conducting safety 
and soundness and mission regulation; (3) new leverage and 
risk-based capital rules; and (4) compliance with HUD's 
recently announced increases in affordable housing goals.
    Management/Reform of the Federal Reserve System. The 
Committee will conduct oversight of the operations of the 
Federal Reserve System, such as the System's role in providing 
financial services as well as its management structure and 
consolidation of operations, use of technology, control and 
oversight mechanisms, budget processes, pay and benefit levels, 
and systemwide strategic planning.
    Corrections Recommended by the Federal Deposit Insurance 
Corporation (FDIC), the Office of the Comptroller of the 
Currency (OCC), and Office of Thrift Supervision (OTS). The 
Committee will consider a number of technical and other 
corrective changes recommended by the FDIC, OCC, and OTS to the 
Federal Deposit Insurance Act (FDIA), the International Banking 
Act of 1978, the National Bank Act, the Home Owners' Loan Act 
(HOLA), and other banking laws relating to FDIC, OCC, and OTS 
authorities in the area of contracting, foreign banks, 
resolution of insured depository institutions, and other 
issues.
    Management of the Nation's Money: Activities of the Bureau 
of the Mint and the Bureau of Engraving and Printing (BEP). The 
Committee will oversee the activities of these Treasury bureaus 
as they relate to the printing and production of U.S. currency 
and the financing and minting of circulating and commemorative 
coins. The Committee will review the efficiency and 
productivity of Mint and BEP manufacturing operations, as well 
as the Numismatic Public Enterprise Fund. Technical changes to 
the authorizing statute for the latter will also be considered.
    Anti-Fraud Agency Coordination Efforts. The Committee will 
examine the efforts of the financial services regulators to 
coordinate their anti-fraud efforts, including disciplinary 
records and other consumer protection records.
    Central Liquidity Facility. The Central Liquidity Facility 
(CLF), a government corporation managed by the NCUA, is a 
valuable source of loans for meeting the seasonal and emergency 
liquidity needs of credit unions. The CLF borrows from the 
Treasury Department's Federal Financing Bank, though Congress 
has imposed borrowing and lending caps. Last year, the General 
Accounting Office (GAO) audited CLF operations and raised some 
questions. Subsequently, the conference report accompanying the 
FY 2001 VA-HUD appropriations bill directed the NCUA to develop 
policies and procedures to clarify credit union access to the 
CLF. The Committee may conduct an oversight hearing or other 
activities relating to the CLF in preparation for advising the 
Appropriations Committee on CLF-related decisions.
    Farm Credit Administration's National Charter Initiative. 
In consultation with other Committees, the Financial Services 
Committee will continue to monitor the GSE-related issues 
involved in the Farm Credit Administration's national charter 
initiative.
    Reports of Inspectors General or Other Investigative 
Agencies. The Committee will review and, where appropriate, 
hold hearings on the findings of investigations and audits 
conducted by the GAO and the Inspectors General of the agencies 
that fall within the Committee's jurisdiction.
    Government Performance and Results Act. The Committee will 
continue to review the strategic plans, annual performance 
plans, and annual performance reports of departments and 
agencies under its jurisdiction.

                             Housing Issues

    Mortgage Finance Reform/Real Estate Settlement Procedures 
Act/Truth-in-Lending Act/Predatory Lending. The Committee may 
conduct hearings on comprehensive mortgage finance reform to 
address the evolution of mortgage finance for the 21st century 
and to assess what regulatory and statutory changes are 
necessary to curb predatory lending practices. As the financial 
services industry and mortgage markets adapt to technological 
changes, the Committee will review the Real Estate Settlement 
Procedures Act and the Truth-in-Lending Act. In the area of 
predatory lending, the Committee will review regulatory 
initiatives and the application of laws, such as the Home 
Ownership and Equity Protection Act, in order to distinguish 
between subprime lending activity, which provides needed 
capital for many historically underserved consumers, and the 
abusive practices associated with predatory lending.
    HUD Management Reform and Staffing. The Committee will 
conduct a comprehensive review of the management reform 
initiatives implemented in the past five years. Between 1994 
and 2001, all programs of the Department of Housing and Urban 
Development (HUD) were designated by GAO as being at ``high 
risk'' for waste, fraud, and abuse. However, on January 17, 
2001, GAO reported a reduction in the number of HUD programs 
deemed to be high-risk due to HUD's improvement in Community 
Development Block Grant (CDBG) management controls. Yet GAO 
cited continuing, significant weaknesses in two of the 
department's major programs--the single-family mortgage 
insurance and the rental housing assistance programs. The 
report also noted management challenges related to information 
and financial management data systems and staffing. The 
significant weaknesses cover approximately 70 percent of HUD's 
programs and involve potential liabilities up to $454 billion 
in the single-family portfolio and excess subsidy rental 
payments up to $3.1 billion over the last four years.
    HUD Related Reauthorizations. The Committee will review, 
for appropriate action, expired--and expiring--authorizations 
relating to HUD.
    HUD Federal Housing Administration (FHA) Mutual Mortgage 
Insurance Fund Capital Ratio Standards. The Committee will 
review the Mutual Mortgage Insurance Fund capital ratio 
standards to assess whether current ratio requirements are 
appropriate. In 1990, Congress enacted legislation requiring a 
capital ratio of 2 percent by 2000. The fund reached the 2 
percent goal by 1995, aided by an economic expansion, and 
currently has a reserve fund in excess of $16 billion. In the 
106th Congress, the Subcommittee on Housing and Community 
Opportunity asked GAO to review the adequacy of the capital 
ratio standards. GAO is scheduled to report to the Committee by 
late February and the Committee will evaluate the report at 
that time.
    Private Mortgage Insurance (PMI). The Committee will review 
the effectiveness of laws requiring cancellation of private 
mortgage insurance once certain equity thresholds are achieved. 
The Committee will also review the ability of the Federal 
Housing Administration to grant similar consumer rights and 
will consider whether further consumer disclosures are 
appropriate.
    Real Estate Activities. The Committee will review the 
benefits and concerns relating to the entrance of financial 
services firms and Internet firms into the real estate agency 
markets.
    Minorities and Homeownership. The Committee will conduct 
hearings to review homeownership rates, particularly for 
underserved markets, e.g., minorities, inner-city 
neighborhoods, and women. The overall homeownership rate is 
approximately 68 percent; however, the average homeownership 
rate for African Americans is in the 40th percentile and 
Hispanics register as low as the 20th. The Committee will focus 
on homeownership disparity in order to fine-tune government 
policies, practices, and incentives that may preclude 
successful lending and ownership.
    Flood Insurance. The Committee will review the National 
Flood Insurance Program (NFIP) and the implementation of 
reforms initiated by the Riegle Community Development and 
Regulatory Improvement Act of 1994 (Public Law 103-325). The 
Committee will also review the recently submitted Federal 
Emergency Management Agency reports addressing subsidy 
reductions and repetitive losses.
    Catastrophic Insurance Protection. The Committee will 
review the current and projected future ability of the 
insurance industry to survive a catastrophic natural disaster, 
and will examine the solvency of various State disaster pools 
and other disaster solvency programs.
    Rural Housing Prepayment. The Committee will review the 
rural multifamily rental program and specific housing laws 
prohibiting prepayment of the debt of government-financed 
mortgage loans.
    CDBG/HOME Oversight. The Committee will review the CDBG 
program and the Home Investments Partnerships Act (HOME) to 
assess the impact of funds in low- and very-low income 
neighborhoods. Given GAO's assessment that these programs are 
not at high risk for waste, fraud, and abuse, the Committee 
will focus on management and operation of the programs, 
including the timely expenditure of CDBG funds. As of February 
2000, according to GAO, 239 of the over 950 entitlement 
grantees had unexpended balances that were excessive and 
represented approximately $1.6 billion. These two programs will 
be reviewed in connection with consideration of their 
reauthorization.
    Oversight of the Puerto Rico Public Housing Authority. The 
Committee will review measures taken by HUD to correct 
widespread abuse in contracting and program management 
uncovered at the Puerto Rico Public Housing Authority, the 
second-largest public housing authority in the country. In July 
2000, HUD's Inspector General wrote to Congress and expressed 
serious concern with the adequacy of the measures HUD had taken 
to address the waste and loss of Federal funds by the Puerto 
Rico Public Housing Authority.
    Oversight of HUD's Real Estate Assessment Center (REAC) and 
Public Housing Assessment System (PHAS). The Committee will 
review the functions of HUD's REAC and PHAS assessment 
programs. REAC and PHAS have been severely criticized for being 
unduly complex and unworkable from a management perspective. In 
2000, the Department maintained that initial barriers to the 
implementation of REAC and PHAS were adequately addressed. 
However, the Committee continues to be concerned about 
complaints received from public housing authorities.

                   Currency and Payment System Issues

    Electronic Commerce and Payment Systems. The Committee will 
continue to assess the domestic and international implications 
of new innovations in electronic money and electronic payment 
systems. Among the issues the Committee may examine are 
soundness, security, privacy, access to new electronic payment 
methods, eligibility criteria for issuing new payment methods, 
competing government regulation, and threats posed to critical 
infrastructures such as the payments system.
    Counterfeiting. The Committee will continue its review of 
efforts to detect and combat the counterfeiting of U.S. 
currency in the United States and abroad.
    Dollar Coin. The Committee will examine issues relating to 
the introduction in 2000 of the new one-dollar coin, including 
U.S. Mint production-allocation decisions, a true unit cost of 
production, management of the program throughout its life to 
date, the type and nature of fees paid for the design of the 
coin, and the Mint's expenditures on outside advertising and 
public relations firms for this and other initiatives.
                                 PART B

 IMPLEMENTATION OF THE COMMITTEE ON FINANCIAL SERVICES OVERSIGHT PLAN 
                         FOR THE 107TH CONGRESS

                              ----------                              


                         Monetary Policy Issues

    Federal Reserve's Conduct of Monetary Policy. The Committee 
held statutorily required hearings on the Chairman of the 
Federal Reserve Board of Governors' semi-annual reports on 
monetary policy on February 28, 2001, July 18, 2001, February 
27, 2002, and July 17, 2002. The Chairman of the Board of 
Governors testified at each hearing.

                     International Financial Issues

    Annual report and testimony by the Secretary of the 
Treasury on International Monetary Fund (IMF) Reform and the 
State of the International Financial System. The Committee held 
hearings on the annual report on May 22, 2001 and February 28, 
2002. The Secretary of the Treasury testified at each hearing.
    Reauthorization of the Export-Import Bank of the United 
States. The Subcommittee on International Monetary Policy and 
Trade held hearings on the reauthorization of the Export-Import 
Bank on May 2 and 8, 2001. On October 31, 2001, the Committee 
passed H.R. 2871, the Export-Import Bank Reauthorization Act of 
2001. The House passed the bill, as amended, on May 1, 2002. 
After passage of S 1372 by the Senate, the House passed the 
conference report on June 5, 2002. The Senate passed the 
conference report on June 6, 2002, and the President signed the 
Act (Public Law 107-189) on June 14, 2002.
    U.S. Contributions to the International Financial 
Institutions. The Subcommittee on International Monetary Policy 
and Trade held hearings on the African Development Bank and 
African Development Fund on April 25, 2001; on World Bank and 
IMF activities in Africa on May 15, 2001; and on fiscal year 
2002 authorization requests for international programs on June 
12, 2001.
    On October 31, 2001, the Committee passed H.R. 2604, a bill 
replenishing the resources of the Asian Development Fund and 
the International Fund for Agricultural Development, and 
setting forth additional policies of the United States towards 
the African Development Bank, the African Development Fund, the 
Asian Development Bank, the Inter-American Development Bank, 
and the European Bank for Reconstruction and Development. The 
House passed H.R. 2604 on May 2, 2002. The Subcommittee on 
International Monetary Policy and Trade held a hearing on the 
causes of the meltdown in the Argentinean economy, including 
the IMF's role, on February 26, 2002.
    The Subcommittee on International Monetary Policy and Trade 
held hearings on proposed changes to the authorizations for the 
World Bank-International Development Association and the North 
American Development Bank on May 2, 2002; July 19, 2002; and 
July 25, 2002. The Committee referred H.R. 5400, a bill to 
authorize the establishment of a Border Environment Cooperation 
Commission and a North American Development Bank, and for other 
purposes, to the House floor, and it passed the House by voice 
vote on October 10, 2002. No further action was taken on these 
measures during the 107th Congress.
    Trade in Financial Services. The Subcommittee on 
International Monetary Policy and Trade held a hearing on 
current international insurance, banking, and securities trade 
issues and recent developments on June 26, 2001. The Committee 
held a hearing on the European Union's Financial Services 
Action Plan and its implications for the American financial 
services industry on May 22, 2002.
    International Financial Services Privacy. On May 11, 2002, 
the Chairman of the full Committee and the chairs of all of the 
subcommittees wrote a letter to the Secretary of the Treasury, 
requesting that he consult with the Committee during 
negotiations with the European Union (EU) on its privacy 
policy. This issue was then discussed during the Committee's 
hearing on May 22, 2002, on the European Union's Financial 
Services Action Plan.
    Coordination of International Financial Services Programs. 
Although the Committee took no direct oversight action on this 
topic, the Committee monitored the developments in this area 
throughout the 107th Congress.
    World Bank AIDS Trust Fund. The Subcommittee on 
International Monetary Policy and Trade held a hearing on World 
Bank and IMF activities in Africa, including those focused on 
the HIV/AIDS pandemic, on May 15, 2001. Provisions addressing 
these matters were included in H.R. 2604, referred to above.
    Holocaust Claims. The Committee monitored the efforts by 
the International Holocaust Commission to ensure that 
restitution is made to Holocaust victims and heirs of 
confiscated accounts.
    Basel Capital Rules. Although the Committee took no direct 
oversight action on this topic, the Committee monitored the 
developments in this area throughout the 107th Congress.
    International Debt Relief. This issue was considered during 
hearings on the World Bank and Africa cited above.

                            Economic Growth

    Capital Formation. The Subcommittee on Domestic Monetary 
Policy, Technology, and Economic Growth held a hearing on 
measures needed to stimulate capital formation on March 29, 
2001. The Subcommittee on Oversight and Investigations held a 
hearing on the SEC's role in capital formation on June 26, 
2001.
    Investment Company Act of 1940 and New Economy Businesses. 
The Committee took no direct oversight action on these matters 
in the 107th Congress, but continued to monitor the activities 
of these companies.
    Development of Economic Opportunities. Although the 
Committee took no direct oversight action on this topic, the 
Committee monitored the developments in this area throughout 
the 107th Congress.
    Community Development Financial Institutions (CDFI) Fund. 
Although the Committee took no direct oversight action on this 
topic, the Committee monitored the developments in this area 
throughout the 107th Congress.
    PRIME. Although the Committee took no direct oversight 
action on this topic, the Committee monitored the developments 
in this area throughout the 107th Congress.
    Reauthorization of the Defense Production Act. The 
Subcommittee on Domestic Monetary Policy, Technonogy, and 
Economic Growth held a hearing on the reauthorization on June 
13, 2001. The Committee passed H.R. 2510, the Defense 
Production Act Amendments of 2001, on July 25, 2001. The House 
passed the bill on September 5, 2001. The President signed the 
Act (Public Law 107-47) on October 5, 2001.

            Financial Services Industry/Consumer Protection

                         financial institutions

    Implementation of Gramm-Leach-Bliley Act (GLB). On April 4, 
2001, the Subcommittee on Financial Institutions and Consumer 
Credit and the Subcommittee on Capital Markets, Insurance, and 
Government-Sponsored Enterprises held a joint hearing on the 
use of the authority granted by GLB for financial holding 
companies (FHCs) and bank holding companies (BHCs) to conduct 
merchant banking investment activities.
    On July 19, 2001, Chairman Oxley and the six subcommittee 
chairman sent a letter to the acting Chairwoman of the 
Securities and Exchange Commission, expressing concerns about a 
draft SEC ruling applying new SEC regulatory requirements to 
bank brokerage activities governed by GLB. On August 2, 2001, 
the Financial Institutions and Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a joint 
hearing to address the SEC ruling.
    Financial Privacy and Consumers. The Subcommittee on 
Oversight and Investigations held a hearing jointly with the 
Social Security Subcommittee of the Committee on Ways and Means 
on identity theft of the deceased on November 8, 2001. The 
Chairwoman of the Subcommittee on Oversight and Investigations 
convened a task force to address the issue. On November 15, she 
sent a letter to the Treasury requesting that they support a 
death verification system that was undergoing testing by the 
Social Security Administration.
    Electronic Signatures Legislation: Effect on Financial 
Services Industry. The Subcommittee on Domestic Monetary 
Policy, Technology, and Economic Growth held a hearing on June 
28, 2001 on this issue.
    Money Laundering. The Committee held a hearing on the 
financial infrastructure of global terrorism on October 3, 
2001. The Committee passed H.R. 3004, the Financial Anti-
Terrorism Act of 2001, on October 11, 2001. It was incorporated 
into the USA PATRIOT Act, H.R. 3162, which was signed into law 
on October 26, 2001. The Subcommittee on Oversight and 
Investigations held a hearing on patterns of terrorist 
financing on February 12, 2002. The Committee held a hearing on 
the implementation of the USA PATRIOT Act on September 19, 
2002.
    Contract Netting Improvement. Although the Committee took 
no direct oversight action on this topic, the Committee 
monitored the developments in this area throughout the 107th 
Congress. Further, provisions of H.R. 333, the Bankruptcy Abuse 
Prevention and Consumer Protection Act of 2001, addressed this 
matter and the Committee participated in their development.
    Deposit Insurance Reform. The Subcommittee on Financial 
Institutions and Consumer Credit held hearings on aspects of 
deposit insurance reform on July 26 and October 17, 2001. On 
March 7, 2002, the Subcommittee on Financial Institutions and 
Consumer Credit approved H.R. 3717, Federal Deposit Insurance 
Reform Act of 2002 for full Committee consideration. The full 
Committee passed H.R. 3717 on April 17, 2002, and the House 
passed it on May 22, 2002. No further action was taken on this 
legislation in the 107th Congress.
    First Accounts/ETAs. The Subcommittee on Oversight and 
Investigations held a hearing on EFT requirements and the use 
of ETAs on June 20, 2001. The Chairman and Ranking Member asked 
GAO to conduct a study on the issue, which was completed and 
released in October 2002.
    Benefits and Risks of Industry Consolidation. Although the 
Committee took no direct oversight action on this topic, the 
Committee monitored the developments in this area throughout 
the 107th Congress.
    State of the Industry. In the wake of the terrorist attacks 
of September 11, 2001, the Committee reviewed the state of the 
financial services industry and the ability to recover. On 
September 13, senior regulatory officials briefed Committee 
members about the restoration of full operations. The Committee 
met on September 26 to receive an update on recovery operations 
from securities and insurance regulators and industry leaders. 
On October 11, 2001, the Committee asked GAO to monitor the 
recovery process and report to us on its implications for the 
U.S. financial markets and their participants.
    The Riegle-Neal Interstate Banking and Branching Efficiency 
Act of 1994. Although the Committee took no direct oversight 
action on this topic, the Committee monitored the developments 
in this area throughout the 107th Congress.
    Credit Unions. A number of regulatory provisions affecting 
credit unions were included in H.R. 3951, the Financial 
Services Regulatory Relief Act of 2001 and the Subcommittee on 
Financial Institutions and Consumer Credit conducted oversight 
of these financial institutions during the course of the 
development of that legislation.
    Fair Credit Reporting Act (FCRA). Although the Committee 
took no direct oversight action on this topic, the Committee 
monitored the developments in this area throughout the 107th 
Congress.
    Fair Debt Collection Practices Act (FDCPA). Although the 
Committee took no direct oversight action on this topic, the 
Committee monitored the developments in this area throughout 
the 107th Congress.
    Brokered Certificates of Deposit. Although the Committee 
took no direct oversight action on this topic, the Committee 
monitored the developments in this area throughout the 107th 
Congress.
    Regulatory Burden Reduction. The Subcommittee on Financial 
Institutions and Consumer Credit held a legislative hearing on 
H.R. 3951, the Financial Services Regulatory Relief Act of 
2002, on March 14, 2002. The Subcommittee on Financial 
Institutions and Consumer Credit passed the bill on May 8, 
2002. No further action was taken on this measure during the 
107th Congress.
    ``Know-Your-Customer'' Rules. This issue was considered by 
the Committee during the course of deliberations on H.R. 3004, 
the Financial Anti-Terrorism Act of 2001. New provisions 
requiring financial institutions to gather information about 
customers were incorporated into H.R. 3162, the USA PATRIOT 
Act.
    Ergonomics Rule and the Financial Services Industry. This 
issue was considered during the course of deliberations on H. 
Res. 79 and S.J.Res. 6, a joint resolution providing for 
congressional disapproval of the rule submitted by the 
Department of Labor relating to ergonomics. The resolution was 
enacted as public law 107-5 on March 20, 2001.
    Consumer Protections. The Subcommittee on Financial 
Institutions and Consumer Credit held a hearing on November 1, 
2001, to address the credit card industry's practice of issuing 
credit to worthy customers without saturating the market with 
uncollectible debt. On December 11, 2001, Chairman Oxley, with 
representatives from the credit card industry and the U.S. 
Postal Service, announced an agreement intended to protect 
consumers in the event of a mail disruption caused by 
biological, chemical, or radiological attack.

                               securities

    Securities Market Structure. Although the Committee took no 
direct oversight action on this topic, the Committee monitored 
the developments in this area throughout the 107th Congress.
    Improving Market Interconnection and Competition. Although 
the Committee took no direct oversight action on this topic, 
the Committee monitored the developments in this area 
throughout the 107th Congress.
    Regulatory Conflicts Arising from Increasing Convergence of 
Financial Services Firms. On April 4, 2001, the Subcommittee on 
Financial Institutions and Consumer Credit and the Subcommittee 
on Capital Markets, Insurance, and Government Sponsored 
Enterprises held a joint hearing on the use of the authority 
granted by GLB to the Federal Reserve Board, the Office of the 
Comptroller of the Currency, Department of the Treasury, and 
Federal Deposit Insurance Corporation to enable financial 
holding companies (FHCs) and bank holding companies (BHCs) to 
conduct merchant banking investment activities.
    Accessibility of Market Data. The Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held 
hearings on the collection, ownership, and distribution of 
market data on March 14 and July 26, 2001.
    Securities and Exchange Commission Reauthorization and 
Review. The Committee passed H.R. 3764, a bill to authorize 
appropriations for the SEC, on April 11, 2002. The House passed 
H.R. 3764 on June 26, 2002. The provisions of H.R. 3764 were 
included in the conference report to accompany H.R. 3763. 
Additionally, in the wake of the September 11 attacks, the 
Committee passed H.R. 3060, the Emergency Securities Response 
Act, to allow the SEC to extend emergency orders for up to 30 
business days and in some cases for up to 90 calendar days, 
from the current 10 days. The bill would also widen the SEC's 
emergency relief scope to include all Federal securities laws. 
The House passed H.R. 3060 on November 11, 2001. The Senate did 
not consider the bill before the end of the session.
    SEC Fees. The Subcommittee on Capital Markets, Insurance, 
and Government Sponsored Enterprises held a hearing entitled 
``Saving Investors Money: Reducing Excessive SEC Fees'' on 
March 7, 2001. The Subcommittee passed H.R. 1088, the Investor 
and Capital Markets Fee Relief Act, on March 21, 2001. The 
Committee passed H.R. 1088 on March 28, 2001. The House passed 
the bill on June 14, 2001, and the Senate passed the bill on 
December 20, 2001. The President signed the Act, on January 16, 
2002, becoming public law number 107-123,.
    Social Security and Investor-Directed Retirement Accounts. 
Although the Committee took no direct oversight action on this 
topic, the Committee monitored the developments in this area 
throughout the 107th Congress.
    Stock Options. Although the Committee took no direct 
oversight action on this topic, the Committee monitored the 
developments in this area throughout the 107th Congress.
    Investor Access to Initial Public Offerings. The Committee 
considered these issues during its investigation of links 
between investment banking business and issuance of shares in 
initial public offerings described above.
    Technology in the Securities Markets. Although the 
Committee took no direct oversight action on this topic, the 
Committee monitored the developments in this area throughout 
the 107th Congress.
    New Investment Products. Although the Committee took no 
direct oversight action on this topic, the Committee monitored 
the developments in this area throughout the 107th Congress.
    Decimal Trading. Although the Committee took no direct 
oversight action on this topic, the Committee monitored the 
developments in this area throughout the 107th Congress.
    Mutual Fund Disclosure. Although the Committee took no 
direct oversight action on this topic, the Committee monitored 
the developments in this area throughout the 107th Congress.
    Bond Market. Although the Committee took no direct 
oversight action on this topic, the Committee monitored the 
developments in this area throughout the 107th Congress.
    Self-Regulatory Organizations. Although the Committee took 
no direct oversight action on this topic, the Committee 
monitored the developments in this area throughout the 107th 
Congress.
    SEC Exemptive Authority. Although the Committee took no 
direct oversight action on this topic, the Committee monitored 
the developments in this area throughout the 107th Congress.
    Commodity Futures Modernization Act Implementation. On July 
27, 2001, Chairman Oxley wrote to the acting SEC chairwoman, 
the chairman of the Commodity Futures Trading Commission, and 
the commissioner of the Internal Revenue Service (IRS), to 
request a progress report on their agencies' implantation of 
the Commodities Futures Modernization Act (CFMA). On October 
15, 2001, Chairman Oxley and Agriculture Committee Chairman 
Combest sent a letter to the chairmen of the SEC and CFTC, 
supporting the extension of the comment period on rules for the 
trading of security futures products after December 21, 2001, 
as a result of the terrorist attacks on September 11.
    Accounting Standards: Protection Against Fraud and 
International Harmonization. The Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held a 
hearing on June 7, 2001 on the promotion of international 
capital flows through harmonization of international accounting 
standards. The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises held hearings on May 1 and May 
14, 2002, on the credibility of GAAP in light of corporate 
accounting scandals and the collapse of major companies. This 
issue was also raised during the Committee's hearing on May 22, 
2002, on the EU's Financial Services Financial Services Action 
Plan, and in the consideration of the Sarbanes-Oxley Act of 
2002.
    Organized Crime and Securities Markets. Although the 
Committee took no direct oversight action on this topic, the 
Committee monitored the developments in this area throughout 
the 107th Congress.
    Investment Company Act of 1940 and the Employee Retirement 
Income Security Act (ERISA). Although the Committee took no 
direct oversight action on this topic, the Committee monitored 
the developments in this area throughout the 107th Congress.
    Securities Investor Protection Corporation. Although the 
Committee took no direct oversight action on this topic, the 
Committee monitored the developments in this area throughout 
the 107th Congress.
    Timely stock trade execution. Although the Committee took 
no direct oversight action on this topic, the Committee 
monitored the developments in this area throughout the 107th 
Congress.

investigation of links between investment banking business and issuance 
                 of shares in initial public offerings

    Following the July 8, 2002 WorldCom hearing, the Committee 
began the first Congressional investigation of Wall Street 
practices for the issuance of shares in initial public 
offerings to investment banking clients. Based on information 
developed in connection with that hearing, the Committee 
requested and subpoenaed thousands of pages of documents from 
Citigroup, Goldman Sachs, and Credit Suisse First Boston. The 
documents revealed that preferred investors involved in over 30 
companies (including Enron, Global Crossing, and WorldCom) 
reaped profits from initial public offering shares and ``spun'' 
investment banking business back to the firms. For instance, 
subpoenaed documents revealed that former WorldCom CEO Bernie 
Ebbers made $11 million in personal gains from initial public 
offering shares. Additionally, evidence indicates that ratings 
of stock analysts, such as Jack Grubman, were influenced by the 
prospect for investment banking business, despite previous 
denials by the analysts and firm management. Analysts' 
compensation appears to have been tied, in part, to the volume 
of such business. The SEC initiated investigations to determine 
whether securities laws were violated, and also initiated 
regulatory actions to prevent future direct linkages.

                               insurance

    Workers Compensation Insurance. Although the Committee took 
no direct oversight action on this topic, the Committee 
monitored the developments in this area throughout the 107th 
Congress.
    Insurance Marketing. The Subcommittee on Oversight and 
Investigations held a hearing on February 26, 2002 entitled 
``Retirement Protections: Fighting Fraud in the Sale of Death'' 
which addressed the marketing of viatical policies. For more 
information on this hearing, see the appropriate portion of the 
Subcommittee on Oversight and Investigations section.
    Insurance Solvency Regulation. The Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held 
hearings on this issue on June 4, 11, and 18, 2002.
    Insurance Fraud. The Subcommittee on Oversight and 
Investigations held a hearing on February 26, 2002, on fraud in 
the sale of viatical insurance products. For more information 
on this hearing, see the appropriate portion of the 
Subcommittee on Oversight and Investigations section.
    NARAB Implementation. The Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
on the NARAB provisions of GLB on May 16, 2001.
    Preemption of State Insurance Law. Although the Committee 
took no direct oversight action on this topic, the Committee 
monitored the developments in this area throughout the 107th 
Congress.
    Insurance Product Approval. The Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held a 
hearing on this issue on June 21, 2001.
    National Insurance Uniformity. The Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held 
hearings on this issue on June 4, 11, and 18, 2002.
    Insurance Consumer Protections. Although the Committee took 
no direct oversight action on this topic, the Committee 
monitored the developments in this area throughout the 107th 
Congress.
    Seniors' Retirement Needs. Although the Committee took no 
direct oversight action on this topic, the Committee monitored 
the developments in this area throughout the 107th Congress.
    Class Action Insurance Litigation. Although the Committee 
took no direct oversight action on this topic, the Committee 
monitored the developments in this area throughout the 107th 
Congress.

                 Federal Agencies/Agency Program Issues

    Government-Sponsored Enterprises (GSEs). The Subcommittee 
on Capital Markets, Insurance, and Government Sponsored 
Enterprises held hearings on various aspects of this issue on 
May 23 and July 11, 2001, and on July 16 and July 23, 2002. For 
more information regarding the Committee's activities, please 
see the Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises section.
    Management/Reform of the Federal Reserve System. Although 
the Committee took no direct oversight action on this topic, 
the Committee monitored the developments in this area 
throughout the 107th Congress.
    Corrections Recommended by the Federal Deposit Insurance 
Corporation (FDIC), the Office of the Comptroller of the 
Currency (OCC), and Office of Thrift Supervision (OTS). During 
the Committee's consideration of H.R. 3951, the Financial 
Services Regulatory Relief Act of 2001, the Committee 
considered a variety of suggestions from the regulators of 
banks, thrifts, and credit unions.
    Management of the Nation's Money: Activities of the Bureau 
of the Mint and the Bureau of Engraving and Printing (BEP). 
Although the Committee took no direct oversight action on this 
topic, the Committee closely monitored the activities of this 
agency, and undertook numerous informal efforts to improve the 
management and operations of the Mint and Bureau of Engraving 
and Printing. The Committee did consider H.R. 2509, the Bureau 
of Engraving and Printing Security Printing Amendments Act. For 
more information on these activities, please see the 
appropriate entries in the Subcommittee on Domestic Monetary 
Policy, Technology, and Economic Growth section.
    Anti-Fraud Agency Coordination Efforts. The Subcommittee on 
Oversight and Investigations and the Subcommittee on Financial 
Institutions and Consumer Credit held a joint hearing on March 
6, 2001 on potential actions by financial regulators and 
Congress to protect consumers from financial fraud. The 
Subcommittee on Financial Institutions and Consumer Credit 
passed H.R. 1408, the Financial Services Antifraud Network Act 
of 2001, on June 13, 2001. The Committee passed the bill on 
June 27, 2001. The House passed the bill on November 6, 2001. 
The Senate did not consider the bill before the end of the 
session.
    Central Liquidity Facility. Although the Committee took no 
direct oversight action on this topic, the Committee closely 
monitored the developments in this area throughout the 107th 
Congress and in particular after the events of September 11, 
2001.
    Farm Credit Administration's National Charter Initiative. 
Although the Committee took no direct oversight action on this 
topic, the Committee monitored the developments in this area 
throughout the 107th Congress.
    Reports of Inspectors General or Other Investigative 
Agencies. The Subcommittee on Oversight and Investigations 
cited reports from the HUD Inspector General in two hearings, 
discussed in more detail below.

                             Housing Issues

    Mortgage Finance Reform/Real Estate Settlement Procedures 
Act /Truth-in-Lending Act/Predatory Lending. The Committee held 
a hearing on HUD's proposed RESPA rule on October 3, 2002.
    HUD Management Reform and Staffing. The Subcommittee on 
Housing and Community Development held a hearing on HUD's 
proposed FY 2001 budget on April 26, 2001. The Subcommittee on 
Oversight and Investigations held a hearing on September 10, 
2001 on fraud in the single-family mortgage program. On 
December 4, 2001, members of the Committee wrote to the 
chairman and ranking member of the Appropriations Committee in 
support of additional appropriations of $20 million to cure 
deficiencies in HUD's Office of Multifamily Housing Assistance 
and Restructuring Technical Assistance. The Subcommittee on 
Housing and Community Opportunity held a hearing on HUD's 
proposed FY 2002 budget on February 13, 2002.
    HUD-Related Reauthorizations. The Committee passed H.R. 
2589, the Office of Multifamily Housing Assistance 
Restructuring Extension Act of 2001, on July 25, 2001. The 
House passed the bill on September 24, 2001. The Senate did not 
consider the bill before the end of the session. Other HUD-
related authorizations were incorporated into H.R. 3995, the 
Housing Affordability for America Act of 2002, which the 
Committee passed on July 10, 2002. No further action was taken 
on this measure in the 107th Congress.
    HUD Federal Housing Administration (FHA) Mutual Mortgage 
Insurance Fund Capital Ratio Standards. The Subcommittee on 
Housing and Community Opportunity held a hearing on this issue 
on March 20, 2001.
    Private Mortgage Insurance (PMI). Although the Committee 
took no direct oversight action on this topic, the Committee 
monitored the developments in this area throughout the 107th 
Congress.
    Real Estate Activities. The Subcommittee on Financial 
Institutions and Consumer Credit held a hearing on May 2, 2001, 
on the Federal Reserve Board and Treasury Department proposal 
to permit banks to offer certain real estate services. The 
Subcommittee held a hearing on July 24, 2002, on the Community 
Choice in Real Estate Act, H.R. 3424, which would have 
prohibited financial holding companies and national banks from 
engaging, directly or indirectly, in real estate brokerage or 
management services. The Committee took no action with respect 
to the bill before the end of the session.
    Minorities and Homeownership. This issue was considered 
during hearings on housing affordability on May 3, May 22, June 
21, and July 17, 2001, and during hearings on H.R. 3995, the 
Housing Affordability for America Act of 2002, on April 10, 23, 
and 24, 2002.
    Flood Insurance. The Subcommittee on Housing and Community 
Opportunity held a hearing on the National Flood Insurance 
Program and repetitive loss properties on July 19, 2001. 
Further, the Committee considered the future of the program in 
connection with its consideration of H.R. 5005, the Homeland 
Security Act of 2002, which transferred the Federal Emergency 
Management Agency from its status as an independent executive-
branch agency to an entity within the Department of Homeland 
Security.
    Catastrophic Insurance Protection. This issue was 
incorporated into hearings on the need for terrorism insurance 
on September 26 and October 24, 2001, and on February 27, 2002. 
On January 16, 2002, the Chairman asked GAO to conduct a review 
of the need for terrorism insurance, the findings of which were 
presented on February 27. H.R. 3210, the Terrorism Risk 
Insurance Act of 2002, was adopted by the Committee on November 
7, 2001, passed the House on November 29, 2001, passed the 
Senate as S. 2600 on July 25, 2002, and was signed into law as 
P.L. 107-297 on November 26, 2002.
    Rural Housing Prepayment. Although the Committee took no 
direct oversight action on this topic, the Committee monitored 
the developments in this area throughout the 107th Congress.
    CDBG/HOME Oversight. The Subcommittee on Housing and 
Community Opportunity held a hearing on the CDBG program on 
March 14, 2002. The HOME program was an issue considered during 
the hearings on housing affordability in 2001 and 2002.
    Oversight of the Puerto Rico Public Housing Authority. 
Although the Committee took no direct oversight action on this 
topic, the Committee monitored the developments in this area 
throughout the 107th Congress.
    Oversight of HUD's Real Estate Assessment Center (REAC) and 
Public Housing Assessment System (PHAS). This issue was 
considered during hearings on HUD's management and proposed 
budgets in 2001 and 2002.

                   Currency and Payment System Issues

    Electronic Commerce and Payment Systems. Although the 
Committee took no direct oversight action on this topic, the 
Committee monitored the developments in this area throughout 
the 107th Congress.
    Counterfeiting. The Subcommittee on Domestic Monetary 
Policy, Technonogy, and Economic Growth held a hearing on July 
24, 2001, on the design and security of currency. On March 19, 
2002, the House passed H.R. 2509, The Bureau of Engraving and 
Printing Security Printing Amendments Act of 2002, sponsored by 
the Subcommittee on Domestic Monetary Policy, Technonogy, and 
Economic Growth Chairman. The legislation would have allowed 
the United States to produce currency, postage stamps, and 
other security documents at the request of foreign governments 
on a reimbursable basis. The Senate did not consider the bill 
before the end of the session.
    Dollar Coin. This issue was considered during the 
Subcommittee on Domestic Monetary Policy, Technonogy, and 
Economic Growth hearing on July 24, 2001.
                   Appendix I--Committee Legislation

    This list includes: (1) bills reported by the Committee on 
Financial Services, (2) bills referred to, but not acted upon 
by, the Committee and enacted into law, and (3) bills refered 
to, but not acted upon by, the Committee and reported by 
another committee of jurisdiction.

                    Public laws and measures reported
------------------------------------------------------------------------
           Public Law             Rept. No.    Bill          Title
------------------------------------------------------------------------
                                  H. Rept.   H.R. 333  Bankruptcy Abuse
                                   107-3*               Prevention and
                                                        Consumer
                                                        Protection Act
                                                        of 2002
                                  H. Rept.   H.R. 556  Leach-LaFalce
                                   107-339              Internet
                                                        Gambling
                                                        Enforcement Act
                                  H. Rept.   H.R. 974  Small Business
                                   107-38               Interest
                                                        Checking Act of
                                                        2001
P.L. 107-123                      H. Rept.   H.R.      Investment and
                                   107-52     1088      Capital Markets
                                                        Fee Relief Act
                                  H. Rept.   H.R.      Financial
                                   107-192    1408      Services
                                                        Antifraud
                                                        Network Act of
                                                        2001
                                  H. Rept.   H.R.      Consumer Rental
                                   107-590    1701      Purchase
                                                        Agreement Act
                                  H. Rept.   H.R.      Senior Housing
                                   107-147    1850      Commission
                                                        Extension Act of
                                                        2001
P.L. 107-24                       H. Rept.   H.R.      ILSA Extension
                                   107-107*   1954      Act of 2001
P.L. 107-245                      H. Rept.   H.R.      Sudan Peace Act
                                   107-92*    5531;
                                              H.R.
                                              2052
                                  H. Rept.   H.R.      Vietnam Human
                                   107-199*   2368      Rights Act
P.L. 107-47                       H. Rept.   H.R.      Defense
                                   107-173    2510      Production Act
                                                        Amendments of
                                                        2001
                                  H. Rept.   H.R.      Office of
                                   107-196    2589      Multifamily
                                                        Housing
                                                        Assistance
                                                        Restructuring
                                                        Extension Act of
                                                        2001
                                  H. Rept.   H.R.      To authorize the
                                   107-291    2604      United States to
                                                        participate in
                                                        and contribute
                                                        to the seventh
                                                        replenishment of
                                                        the resources of
                                                        the Asian
                                                        Development Fund
                                                        and the fifth
                                                        replenishment of
                                                        the resources of
                                                        the
                                                        International
                                                        Fund for
                                                        Agricultural
                                                        Development, and
                                                        to set forth
                                                        additional
                                                        policies of the
                                                        United States
                                                        towards the
                                                        African
                                                        Development
                                                        Bank, the
                                                        African
                                                        Development
                                                        Fund, the Asian
                                                        Development
                                                        Bank, the Inter-
                                                        American
                                                        Development
                                                        Bank, and the
                                                        European Bank
                                                        for
                                                        Reconstruction
                                                        and Development.
P.L. 107-73                           *      H.R.      FHA Multifamily
                                              2620;     Mortgage Loan
                                              H.R.      Limit Adjustment
                                              1629;     Act of 2001;
                                              H.R.      Senior Housing
                                              1850      Commission
                                                        Extension Act of
                                                        2001
P.L. 107-95                       H. Rept.   H.R.      Homeless Veterans
                                   107-241*   2716      Comprehensive
                                                        Assistance Act
                                                        of 2001
P.L. 107-127                      .........  H.R.      General Shelton
                                              2751      Congressional
                                                        Gold Medal Act
P.L. 107-189 \1\                  H. Rept.   H.R.      Export-Import
                                   107-292    2871      Bank
                                                        Reauthorization
                                                        Act of 2001
                                  H. Rept.   H.R.      Brownfields
                                   107-448    2941      Redevelopment
                                                        Enhancement Act
P.L. 107-56                       H. Rept.   H.R.      Financial Anti-
                                   107-250    3162;     Terrorism Act of
                                              H.R.      2001 (USA
                                              3004      PATRIOT Act)
                                  H. Rept.   H.R.      Emergency
                                   107-283    3060      Securities
                                                        Response Act of
                                                        2001
P.L. 107-297                      H. Rept.   H.R.      Terrorism Risk
                                   107-300    3210      Protection Act
                                  H. Rept.   H.R.      General Aviation
                                   107-406*   3347      Industry
                                                        Reparations Act
                                                        of 2002
P.L. 107-151                          *      H.R.      To revise certain
                                              3699      grants for
                                                        continuum of
                                                        care assistance
                                                        for homeless
                                                        individual and
                                                        families
                                  H. Rept.   H.R.      Federal Deposit
                                   107-467    3717      Insurance Reform
                                                        Act of 2002
                                  H. Rept.   H.R.      Pension Security
                                   107-383*   3762      Act of 2002
P.L. 107-204                      H. Rept.   H.R.      Sarbanes-Oxley
                                   107-414    3763      Act of 2002
                                  H. Rept.   H.R.      Securities and
                                   107-415    3764      Exchange
                                                        Commission
                                                        Authorization
                                                        Act of 2002
                                  H. Rept.   H.R.      Financial
                                   107-516    3951      Services
                                                        Regulatory
                                                        Relief Act of
                                                        2001
P.L. 107-156                          *      S. 2019;  To extend the
                                              H.R.      authority of the
                                              3987      Export-Import
                                                        Bank through
                                                        April 30, 2002.
                                  H. Rept.   H.R.      Housing
                                   107-640    3995      Affordability
                                                        For America Act
                                                        of 2002
P.L. 107-186                      .........  H.R.      To extend the
                                              4782      authority of the
                                                        Export-Import
                                                        Bank until June
                                                        14, 2002
                                  H. Rept.   H.R.      Homeland Security
                                   107-609*   5005      Act of 2002
                                  H. Rept.   H.R.      To authorize the
                                   107-720    5400      President of the
                                                        United States to
                                                        agree to certain
                                                        amendments to
                                                        the Agreement
                                                        between the
                                                        Government of
                                                        the United
                                                        States of
                                                        America and the
                                                        Government of
                                                        the United
                                                        Mexican States
                                                        concerning the
                                                        establishment of
                                                        a Border
                                                        Environment
                                                        Cooperation
                                                        Commission and a
                                                        North American
                                                        Development
                                                        Bank, and for
                                                        other purposes
P.L. 107-245                      H. Rept.   H.R.      Sudan Peace Act
                                   107-92*    5531;
                                              H.R.
                                              2052
P.L. 107-99                       H. Rept.   S. 494    Zimbabwe
                                   107-312*             Democracy and
                                                        Economic
                                                        Recovery Act of
                                                        2001
P.L. 107-18                           *      S. 1029   To clarify the
                                                        authority of the
                                                        Department of
                                                        Housing and
                                                        Urban
                                                        Development with
                                                        respect to the
                                                        use of fees
                                                        during fiscal
                                                        year 2001 for
                                                        the manufactured
                                                        housing program
P.L. 107-156                          *      S. 2019;  To extend the
                                              H.R.      authority of the
                                              3987      Export-Import
                                                        Bank through
                                                        April 30, 2002.
P.L. 107-201                          *      S. 2594   Support of Eagle
                                              \2\       Silver Bullion
                                                        Program Act
                                      *      S. 1210   Native American
                                                        Housing
                                                        Assistance and
                                                        Self-
                                                        Determination
                                                        Reauthroization
                                                        Act of 2002
                                      *      S. 2239   FHA Downpayment
                                                        Simplification
                                                        Act of 2002
------------------------------------------------------------------------
* Measure not reported by the Committee on Financial Services.
\1\ Enacted bill was S. 1372.
\2\ For prior House action, see H.R. 4971.

                              Appendix II

                                 part a

             Hearings of the Committee on Financial Services
------------------------------------------------------------------------
                                                               Hearing
           Serial No.                   Hearing Title          Date(s)
------------------------------------------------------------------------
107-1                             Conduct of Monetary        February
                                   Policy (Full Committee)    28, 2001
107-2                             Protecting Consumers:      March 6,
                                   What Can Congress Do to    2001
                                   Help Financial
                                   Regulators Coordinate
                                   Efforts to Fight Fraud?
                                   (Subcommittee on
                                   Oversight and
                                   Investigations and
                                   Subcommittee on
                                   Financial Institutions
                                   and Consumer Credit)
107-3                             Saving Investors Money:    March 7,
                                   Reducing Excessive SEC     2001
                                   Fees (Subcommittee on
                                   Capital Markets,
                                   Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-4                             Proposals to Permit        March 13,
                                   Payment of Interest on     2001
                                   Business Checking
                                   Accounts and Sterile
                                   Reserves Maintained at
                                   Federal Reserve Banks
                                   (Subcommittee on
                                   Financial Institutions
                                   and Consumer Credit)
107-5                             Public Access to Market    March 14,
                                   Data: Improving            2001
                                   Transparency and
                                   Competition
                                   (Subcommittee on Capital
                                   Markets, Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-6                             The Financial Health of    March 20,
                                   the Federal Housing        2001
                                   Administration (FHA)
                                   Single Family Mutual
                                   Mortgage Insurance Fund
                                   (Subcommittee on Housing
                                   and Community
                                   Opportuntity)
107-7                             Review of the Voluntary    March 27,
                                   Agreement by Fannie Mae    2001
                                   and Freddie Mac
                                   (Subcommittee on Capital
                                   Markets, Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-8                             Beyond the Tax Cut:        March 29,
                                   Unleashing the Economy     2001
                                   (Subcommittee on
                                   Domesitic Monetary
                                   Policy, Technology, and
                                   Economic Growth)
107-9                             Promotion of Capital       April 4,
                                   Availability to American   2001
                                   Businesses (Subcommittee
                                   on Capital Markets,
                                   Insurance, and
                                   Government Sponsored
                                   Enterprises and the
                                   Subcommittee on
                                   Financial Institutions
                                   and Consumer Credit)
107-10                            U.S. Policy Towards the    April 25,
                                   African Development Bank   2001
                                   and the African
                                   Development Fund
                                   (Subcommittee on
                                   International Monetary
                                   Policy and Trade)
107-11                            The Budget of the          April 26,
                                   Department of Housing      2001
                                   and Urban Development
                                   (HUD) (Subcommittee on
                                   Housing and Community
                                   Opportunity)
107-12                            Federal Reserve Board and  May 2, 2001
                                   Treasury Department Rule
                                   Proposal (Subcommittee
                                   on Financial
                                   Institutions and
                                   Consumer Credit)
107-13                            Reauthorization of the     May 2 and
                                   Export-Import Bank         8, 2001
                                   (Subcommittee on
                                   International Monetary
                                   Policy and Trade)
107-14                            Housing Affordability      May 3, May
                                   Issues (Subcommittee on    22, June
                                   Housing and Community      21, and
                                   Opportunity)               July 17,
                                                              2001
107-15                            World Bank and IMF         May 15,
                                   Activities in Africa       2001
                                   (Subcommittee on
                                   International Monetary
                                   Policy and Trade)
107-16                            Deposit Insurance Reform   May 16,
                                   (Subcommittee on           2001
                                   Financial Institutions
                                   and Consumer Credit)
107-17                            NARAB & Beyond             May 16,
                                   (Subcommittee on Capital   2001
                                   Markets, Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-18                            Fair Disclosure or Flawed  May 17,
                                   Disclosure: Is Reg FD      2001
                                   Helping or Hurting
                                   Investors? (Subcommittee
                                   on Capital Markets,
                                   Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-19                            The State of the           May 22,
                                   International Financial    2001
                                   System and IMF Reform
                                   (Full Committee)
107-20                            CBO Report on Federal      May 23,
                                   Subsidies for the          2001
                                   Housing GSEs
                                   (Subcommittee on Capital
                                   Markets, Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-21                            Inspector General's        June 4,
                                   Report on the Housing      2001
                                   Authority of New Orleans
                                   (Subcommittee on
                                   Oversight and
                                   Investigations)
107-22                            Promotion of               June 7,
                                   International Capital      2001
                                   Flow through Accounting
                                   Standards (Subcommittee
                                   on Capital Markets,
                                   Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-23                            FY 2002 Authorization      June 12,
                                   Requests for               2001
                                   International Programs
                                   (Subcommittee on
                                   International Monetary
                                   Policy and Trade)
107-24                            Reauthorization of the     June 13,
                                   Defense Production Act     2001
                                   of 1950 (Subcommittee on
                                   Domesitic Monetary
                                   Policy, Technology, and
                                   Economic Growth)
107-25                            Analyzing the Analysts      June 14
                                   (Subcommittee on Capital   and July
                                   Markets, Insurance, and    31, 2001
                                   Government Sponsored
                                   Enterprises)
107-26                            The California Energy      June 20,
                                   Crisis: Causes, Impacts,   2001
                                   and Remedies (Full
                                   Committee)
107-27                            Implementation of EFT      June 20,
                                   Requirements               2001
                                   (Subcommittee on
                                   Oversight and
                                   Investigations)
107-28                            Insurance Product          June 21,
                                   Approval: The Need for     2001
                                   Modernization
                                   (Subcommittee on Capital
                                   Markets, Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-29                            The SEC's Role in Capital  June 26,
                                   Formation: Help or         2001
                                   Hinderance?
                                   (Subcommittee on
                                   Oversight and
                                   Investigations)
107-30                            Trade in Financial         June 26,
                                   Services: Current Issues   2001
                                   and Future Developments
                                   (Subcommittee on
                                   International Monetary
                                   Policy and Trade)
107-31                            ESIGN: Encouraging the     June 28,
                                   Use of Electronic          2001
                                   Signatures in the
                                   Financial Services
                                   Industry (Subcommittee
                                   on Domestic Monetary
                                   Policy, Technology, and
                                   Economic Growth)
107-32                            Reforming Fannie Mae and   July 11,
                                   Freddie Mac                2001
                                   (Subcommittee on Capital
                                   Markets, Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-33                            H.R. 1701, the Consumer    July 12,
                                   Rental Purchase            2001
                                   Agreement Act
                                   (Subcommittee on
                                   Financial Institutions
                                   and Consumer Credit)
107-34                            Financial Aspects of       July 12,
                                   Internet Gaming: Good      2001
                                   Gamble or Bad Bet?
                                   (Subcommittee on
                                   Oversight and
                                   Investigations)
107-35                            Conduct of Monetary        July 18,
                                   Policy (Full Committee)    2001
107-36                            The National Flood         July 19,
                                   Insurance Program and      2001
                                   Repetitive Loss
                                   Properties (Subcommittee
                                   on Housing and Community
                                   Opportunity)
107-37                            H.R. 556, the Unlawful     July 24,
                                   Internet Gambling          2001
                                   Fundraising Prohibition
                                   Act and Other Internet
                                   Gambling Proposals
                                   (Subcommittee on
                                   Financial Institutions
                                   and Consumer Credit)
107-38                            Design and Security of     July 24,
                                   Currency (Subcommittee     2001
                                   on Domestic Monetary
                                   Policy, Technology, and
                                   Economic Growth)
107-39                            Viewpoints of Select       July 26,
                                   Regulators on Deposit      2001
                                   Insurance Reform
                                   (Subcommittee on
                                   Financial Institutions
                                   and Consumer Credit)
107-40                            Market Data: Implications  July 26,
                                   to Investors               2001
                                   (Subcommittee on Capital
                                   Markets, Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-41                            OFHEO Risk-Based Capital   August 1,
                                   Rule (Subcommittee on      2001
                                   Capital Markets,
                                   Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-42                            Over-Regulation of         August 1,
                                   Automobile Insurance: A    2001
                                   Lack of Consumer Choice
                                   (Subcommittee on
                                   Oversight and
                                   Investigations)
107-43                            Pushing Back the           August 2,
                                   Pushouts: the SEC's        2001
                                   Broker-Dealer Rules
                                   (Subcommittee on Capital
                                   Markets, Insurance, and
                                   Government Sponsored
                                   Enterprises and the
                                   Subcommittee on
                                   Financial Institutions
                                   and Consumer Credit)
107-44                            The Section 203(k)         September
                                   Housing Program            10, 2001
                                   (Subcommittee on
                                   Oversight and
                                   Investigations)
107-45                            America's Insurance        September
                                   Industry: Keeping the      26, 2001
                                   Promise (Full Committee)
107-46                            Dismantling the Financial  October 3,
                                   Infrastructure of Global   2001
                                   Terrorism (Full
                                   Committee)
107-47                            Viewpoints of the FDIC     October 17,
                                   and Select Industry        2001
                                   Experts on Deposit
                                   Insurance Reform
                                   (Subcommittee on
                                   Financial Institutions
                                   and Consumer Credit)
107-48                            Protecting Policyholders   October 24,
                                   from Terrorism: Private    2001
                                   Sector Solutions
                                   (Subcommittee on Capital
                                   Markets, Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-49                            Giving Consumers Credit:   November 1,
                                   How is the Credit Card     2001
                                   Industry Treating its
                                   Customers? (Subcommittee
                                   on Financial
                                   Institutions and
                                   Consumer Credit)
107-50                            Preventing Identity Theft  November 8,
                                   by Terrorists and          2001
                                   Criminals (Subcommittee
                                   on Oversight and
                                   Investigations and
                                   Committee on Ways and
                                   Means Subcommittee on
                                   Social Security)
107-51 Part 1                     The Enron Collapse:        December
                                   Impact on Investors and    12, 2001
                                   Financial Markets
                                   (Subcommittee on Capital
                                   Markets, Insurance, and
                                   Government Sponsored
                                   Enterprises and the
                                   Subcommittee on
                                   Oversight and
                                   Investigations)
107-51 Part 2                     The Enron Collapse:        February 4
                                   Impact on Investors and    and 5,
                                   Financial Markets          2002
                                   (Subcommittee on Capital
                                   Markets, Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-52                            Argentina's Economic       February 6
                                   Meltdown: Causes and       and March
                                   Remedies (Subcommittee     5, 2002
                                   on International
                                   Monetary Policy and
                                   Trade)
107-53                            The PATRIOT Act            February
                                   Oversight:                 12, 2002
                                   Investigationg Patterns
                                   of Terrorist Financing
                                   (Subcommittee on
                                   Oversight and
                                   Investigations)
107-54                            The Proposed Budget of     February
                                   the Department of          13, 2002
                                   Housing and Urban
                                   Development
                                   (Subcommittee on Housing
                                   and Community
                                   Opportunity)
107-55                            Retirement Protections:    February
                                   Fighting Fraud in the      26, 2002
                                   Sale of Death
                                   (Subcommittee on
                                   Oversight and
                                   Investigations)
107-56                            Conduct of Monetary        February
                                   Policy (Full Committee)    27, 2002
107-57                            How Much are Americans at  February
                                   Risk Until Congress        27, 2002
                                   Passes Terrorism
                                   Insurance Protection?
                                   (Subcommittee on
                                   Oversight and
                                   Investigations)
107-58                            The State of the           February
                                   International Financial    28, 2002
                                   System and IMF Reform
                                   (Full Committee)
107-59                            H.R. 2941, the             March 6,
                                   Brownfields                2002
                                   Redevelopment
                                   Enhancement Act
                                   (Subcommittee on Housing
                                   and Community
                                   Opportunity)
107-60                            H.R. 3763, the Corporate   March 13,
                                   and Auditing               20, and
                                   Accountability,            April 9,
                                   Responsibility, and        2002
                                   Transparency Act of 2002
                                   (Full Committee)
107-61                            Review of the Community    March 14,
                                   Development Block Grant    2002
                                   Program (Subcommittee on
                                   Housing and Community
                                   Opportunity)
107-62                            H.R. 3951--The Financial   March 14
                                   Services Regulatory        and April
                                   Relief Act of 2002         25, 2002
                                   (Subcommittee on
                                   Financial Institutions
                                   and Consumer Credit)
107-63                            The Effects of the Global  March 21,
                                   Crossing Bankruptcy on     2002
                                   Investors, Markets, and
                                   Employees (Subcommittee
                                   on Oversight and
                                   Investigations)
107-64                            H.R. 3995, the Housing     April 10,
                                   Affordability for          23, and
                                   America Act of 2002        24, 2002
                                   (Subcommittee on Housing
                                   and Community
                                   Opportunity)
107-65                            Review of the Current      April 10,
                                   Status of Empowerment      2002
                                   Zones and Renewal
                                   Communities
                                   (Subcommittee on Housing
                                   and Community
                                   Opportunity)
107-66                            Encouraging Capital        April 18,
                                   Formation in Key Sectors   2002
                                   of the Economy
                                   (Subcommittee on
                                   Domestic Monetary
                                   Policy, Technology, and
                                   Economic Growth)
107-67                            Corporate Accounting       May 1 and
                                   Practices: Is There a      14, 2002
                                   Credibility GAAP?
                                   (Subcommittee on Capital
                                   Markets, Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-68                            Proposed Changes to Both   May 2, 2002
                                   the World Bank-
                                   International
                                   Development Association
                                   and the North American
                                   Development Bank
                                   (Subcommittee on
                                   International Monetary
                                   Policy and Trade)
107-69                            Recovering Dictators'      May 9, 2002
                                   Plunder (Subcommittee on
                                   Financial Institutions
                                   and Consumer Credit)
107-70                            European Union's           May 22,
                                   Financial Services         2002
                                   Action Plan and its
                                   Implications for the
                                   American Financial
                                   Services Industry (Full
                                   Committe)
107-71                            One Broker Gone Bad:       May 23,
                                   Punishing the Criminal,    2002
                                   Making Victims Whole
                                   (Subcommittee on
                                   Oversight and
                                   Investigations)
107-72*                           Insurance Regulation and   June 4, 11,
                                   Competition for the 21st   and 18,
                                   Century (Subcommittee on   2002
                                   Capital Markets,
                                   Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-73                            Fighting Discrimination    June 25,
                                   Against the Disabled and   2002
                                   Minorities Through Fair
                                   Housing Enforcement
                                   (Subcommittee on
                                   Financial Institutions
                                   and Consumer Credit and
                                   the Subcommittee on
                                   Overisght and
                                   Investigations)
107-74*                           Wrong Numbers: the         July 8,
                                   Accounting Problems at     2002
                                   WorldCom (Full
                                   Committee)
107-75                            Treasury's Policy on       July 16,
                                   Housing GSEs               2002
                                   (Subcommittee on Capital
                                   Markets, Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-76*                           Conduct of Monetary        July 17,
                                   Policy (Full Committee)    2002
107-77                            Mold: A Growing Problem    July 18,
                                   (Subcommittee on           2002
                                   Oversight and
                                   Investigations and the
                                   Subcommittee on Housing
                                   and Community
                                   Opportunity)
107-78*                           Expected Authorization     July 19 and
                                   Requests on the U.S.       25, 2002
                                   Participartion in the
                                   International
                                   Development Association
                                   and the African
                                   Development Fund
                                   (Subcommittee on
                                   International Monetary
                                   Policy and Trade)
107-79                            OFHEO Risk-Based Capital   July 23,
                                   Stress Test for Fannie     2002
                                   Mae and Freddie Mac
                                   (Subcommittee on Capital
                                   Markets, Insurance, and
                                   Government Sponsored
                                   Enterprises)
107-80*                           H.R. 3424, the Community   July 24,
                                   Choice in Real Estate      2002
                                   Act (Subcommittee on
                                   Financial Institutions
                                   and Consumer Credit)
107-81*                           Erosion of Communities     September
                                   and Home Values by         12, 2002
                                   Leaking Underground
                                   Storage Tanks
                                   (Subcommittee on Housing
                                   and Community
                                   Opportunity)
107-82*                           Technical Assistance and   September
                                   Capacity Building          17, 2002
                                   Programs to Promote
                                   Housing and Economic
                                   Development
                                   (Subcommittee on Housing
                                   and Community
                                   Opportunity)
107-83*                           Terrorist Financing: A     September
                                   Progress Report on         19, 2002
                                   Implementation of the
                                   USA PATRIOT Act (Full
                                   Committee)
107-84*                           H.R. 5414, the Check       September
                                   Clearing for the 21st      25, 2002
                                   Century Act
                                   (Subcommittee on
                                   Financial Institutions
                                   and Consumer Credit)
107-85*                           Reforming the Real Estate  October 3,
                                   Settlement Procedure:      2002
                                   Review of HUD's Proposed
                                   RESPA Rule (Full
                                   Committee)
107-86*                           Catastrophe Bonds:         October 8,
                                   Spreading Risk             2002
                                   (Subcommittee on
                                   Oversight and
                                   Investigations)
------------------------------------------------------------------------
* Not yet in print.

                                 part b

                            Committee Prints
------------------------------------------------------------------------
             Serial No.                              Title
------------------------------------------------------------------------
107-A                                 Rules of the Committee on
                                       Financial Services--Feburary
                                       2001. (Full Committee.)
107-B                                 Compilation of Securities Laws--
                                       March 2001. (Full Committee.)
107-C                                 Compilation of Basic Banking Laws--
                                       May 2001. (Full Committee.)
------------------------------------------------------------------------

                                
