[House Report 108-802]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-802
_______________________________________________________________________

                                     

                                                 Union Calendar No. 487


                         REPORT ON THE ACTIVITY

                                 of the

                    COMMITTEE ON FINANCIAL SERVICES

                                for the

                      ONE HUNDRED EIGHTH CONGRESS




January 3, 2005.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed


                         LETTER OF TRANSMITTAL

                              ----------                              

                          House of Representatives,
                           Committee on Financial Services,
                                   Washington, DC, January 3, 2005.
Hon. Jeff Trandahl,
Clerk, United States House of Representatives,
Washington, DC.
    Dear Mr. Trandahl: Pursuant to clause 1(d) of rule XI of 
the Rules of the House of Representatives for the 108th 
Congress, I present herewith a report on the activity of the 
Committee on Financial Services for the 108th 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.


                            C O N T E N T S

                              ----------                              
                                                                   Page
Letter of Transmittal............................................   III
Jurisdiction.....................................................     1
Rules of the Committee...........................................     4
Membership and Organization......................................    17
Legislative and Oversight Activities.............................    23
Full Committee...................................................    25
Subcommittee on Capital Markets, Insurance, and Government 
  Sponsored Enterprises..........................................    49
Subcommittee on Domestic and International Monetary Policy, 
  Technology, and Economic Growth................................    69
Subcommittee on Financial Institutions and Consumer Credit.......    87
Subcommittee on Housing and Community Opportunity................   101
Subcommittee on Oversight and Investigations.....................   121
Oversight Plan for the 108th Congress............................   129
Implementation of the Oversight Plan for the 108th Congress......   149
Appendix I--Committee Legislation................................   175
Appendix II--Committee Publications..............................   179


                                                 Union Calendar No. 487
108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-802

======================================================================



 
 REPORT ON THE ACTIVITY OF THE COMMITTEE ON FINANCIAL SERVICES FOR THE 
                             108TH CONGRESS

                                _______
                                

January 3, 2005.--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 for the 108th Congress requires that 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.

                              JURISDICTION


                           Rules of the House

    Clause 1(g) of rule X of the Rules of the House of 
Representatives for the 108th Congress 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 EIGHTH 
                                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.
    (5) Postponed record votes.--(A) Subject to subparagraph 
(B), the Chairman may postpone further proceedings when a 
record vote is ordered on the question of approving any measure 
or matter or adopting an amendment. The Chairman may resume 
proceedings on a postponed request at any time, but no later 
than the next meeting day.
    (B) In exercising postponement authority under subparagraph 
(A), the Chairman shall take all reasonable steps necessary to 
notify members on the resumption of proceedings on any 
postponed record vote;
    (C) When proceedings resume on a postponed question, not-
withstanding any intervening order for the previous question, 
an underlying proposition shall remain subject to further 
debate or amendment to the same extent as when the question was 
postponed.

                           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 and International 
Monetary Policy, Trade, and Technology 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 seven 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 5 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 and international 
        monetary policy, trade, and technology.--The 
        jurisdiction of the Subcommittee on Domestic and 
        International Monetary Policy, Trade, and Technology 
        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;
                  (vi) development of new or alternative forms 
                of currency;
                  (vii) 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;
                  (viii) international trade, including but not 
                limited to the activities of the Export-Import 
                Bank;
                  (ix) the International Monetary Fund, its 
                permanent and temporary agencies, and all 
                matters related thereto; and
                  (x) 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.
          (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 orindirectly 
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 land-lord/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 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 49 members, 26 elected by the majority caucus and 23 
        elected by the minority caucus.
          (B) The Subcommittee on Domestic and International 
        Monetary Policy, Trade, and Technology 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 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 EIGHTH CONGRESS

  COMMITTEE ON FINANCIAL SERVICES

         (Ratio: 37-32-1)

 MICHAEL G. OXLEY, Ohio, Chairman

BARNEY FRANK, Massachusetts          JAMES A. LEACH, Iowa 
PAUL E. KANJORSKI, Pennsylvania      RICHARD H. BAKER, Louisiana 
MAXINE WATERS, California            SPENCER BACHUS, Alabama
CAROLYN B. MALONEY, New York         MICHAEL N. CASTLE, Delaware
LUIS V. GUTIERREZ, Illinois          PETER T. KING, New York
NYDIA M. VELAZQUEZ, New York         EDWARD R. ROYCE, California
MELVIN L. WATT, North Carolina       FRANK D. LUCAS, Oklahoma
GARY L. ACKERMAN, New York           ROBERT W. NEY, Ohio
DARLENE HOOLEY, Oregon               SUE W. KELLY, New York
JULIA CARSON, Indiana                  Vice Chair
BRAD SHERMAN, California             RON PAUL, Texas 
GREGORY W. MEEKS, New York           PAUL E. GILLMOR, Ohio
BARBARA LEE, California              JIM RYUN, Kansas 
JAY INSLEE, Washington               STEVEN C. LaTOURETTE, Ohio
DENNIS MOORE, Kansas                 DONALD A. MANZULLO, Illinois
MICHAEL E. CAPUANO, Massachusetts    WALTER B. JONES, Jr., North 
HAROLD E. FORD, Jr., Tennessee       Carolina
RUBEN HINOJOSA, Texas                DOUG OSE, California
KEN LUCAS, Kentucky                  JUDY BIGGERT, Illinois
JOSEPH CROWLEY, New York             MARK GREEN, Wisconsin
WM. LACY CLAY, Missouri              PATRICK J. TOOMEY, Pennsylvania
STEVE ISRAEL, New York               CHRISTOPHER SHAYS, Connecticut
MIKE ROSS, Arkansas                  JOHN B. SHADEGG, Arizona
CAROLYN McCARTHY, New York           VITO FOSSELLA, New York
JOE BACA, California                 GARY G. MILLER, California
JIM MATHESON, Utah                   MELISSA A. HART, Pennsylvania
STEPHEN F. LYNCH, Massachusetts      SHELLEY MOORE CAPITO, West 
BRAD MILLER, North Carolina          Virginia
RAHM EMANUEL, Illinois               PATRICK J. TIBERI, Ohio
DAVID SCOTT, Georgia                 MARK R. KENNEDY, Minnesota
ARTUR DAVIS, Alabama                 TOM FEENEY, Florida
CHRIS BELL, Texas \1\                JEB HENSARLING, Texas
BERNARD SANDERS, Vermont*            SCOTT GARRETT, New Jersey
                                     TIM MURPHY, Pennsylvania
                                     GINNY BROWN-WAITE, Florida
                                     J. GRESHAM BARRETT, South Carolina
                                     KATHERINE HARRIS, Florida
                                     RICK RENZI, Arizona
                                     JIM GERLACH, Pennsylvania \4\

*Mr. Sanders is an independent, but caucuses with the Democratic 
Caucus.
                        SUBCOMMITTEE MEMBERSHIPS


 Subcommittee on Capital Markets, Insurance, and Government Sponsored 
                              Enterprises

          (Ratio: 26-23)

   RICHARD H. BAKER, Louisiana, 
             Chairman

PAUL E. KANJORSKI, Pennsylvania      DOUG OSE, California
GARY L. ACKERMAN, New York             Vice Chairman
DARLENE HOOLEY, Oregon               CHRISTOPHER SHAYS, Connecticut
BRAD SHERMAN, California             PAUL E. GILLMOR, Ohio
GREGORY W. MEEKS, New York           SPENCER BACHUS, Alabama
JAY INSLEE, Washington               MICHAEL N. CASTLE, Delaware
DENNIS MOORE, Kansas                 PETER T. KING, New York
MICHAEL E. CAPUANO, Massachusetts    FRANK D. LUCAS, Oklahoma
HAROLD E. FORD, Jr., Tennessee       EDWARD R. ROYCE, California
RUBEN HINOJOSA, Texas                DONALD A. MANZULLO, Illinois
KEN LUCAS, Kentucky                  SUE W. KELLY, New York
JOSEPH CROWLEY, New York             ROBERT W. NEY, Ohio
STEVE ISRAEL, New York               JOHN B. SHADEGG, Arizona
MIKE ROSS, Arkansas                  JIM RYUN, Kansas
WM. LACY CLAY, Missouri              VITO FOSSELLA, New York
CAROLYN McCARTHY, New York           JUDY BIGGERT, Illinois
JOE BACA, California                 MARK GREEN, Wisconsin
JIM MATHESON, Utah                   GARY G. MILLER, California
STEPHEN F. LYNCH, Massachusetts      PATRICK J. TOOMEY, Pennsylvania
BRAD MILLER, North Carolina          SHELLEY MOORE CAPITO, West 
RAHM EMANUEL, Illinois               Virginia
DAVID SCOTT, Georgia                 MELISSA A. HART, Pennsylvania
NYDIA M. VELAZQUEZ, New York \3\     MARK R. KENNEDY, Minnesota
BARNEY FRANK, Massachusetts          PATRICK J. TIBERI, Ohio
  ex officio                         GINNY BROWN-WAITE, Florida
                                     KATHERINE HARRIS, Florida
                                     RICK RENZI, Arizona
                                     MICHAEL G. OXLEY, Ohio
                                       ex officio

Subcommittee on Domestic and International Monetary Policy, Trade, and 
                               Technology

          (Ratio: 14-12)

 PETER T. KING, New York, Chairman

CAROLYN B. MALONEY, New York         JUDY BIGGERT, Illinois
BERNARD SANDERS, Vermont*              Vice Chair
MELVIN L. WATT, North Carolina       JAMES A. LEACH, Iowa
MAXINE WATERS, California            MICHAEL N. CASTLE, Delaware
BARBARA LEE, California              RON PAUL, Texas
PAUL E. KANJORSKI, Pennsylvania      DONALD A. MANZULLO, Illinois
BRAD SHERMAN, California             DOUG OSE, California
DARLENE HOOLEY, Oregon               JOHN B. SHADEGG, Arizona
LUIS V. GUTIERREZ, Illinois          MARK R. KENNEDY, Minnesota
NYDIA M. VELAZQUEZ, New York \3\     TOM FEENEY, Florida
RAHM EMANUEL, Illinois               JEB HENSARLING, Texas
CHRIS BELL, Texas \1\                TIM MURPHY, Pennsylvania
BARNEY FRANK, Massachusetts          J. GRESHAM BARRETT, South Carolina
  ex officio                         KATHERINE HARRIS, Florida
                                     MICHAEL G. OXLEY, Ohio
                                       ex officio

*Mr. Sanders is an independent, but caucuses with the Democratic 
Caucus.
       Subcommittee on Financial Institutions and Consumer Credit

          (Ratio: 25-22)

 SPENCER BACHUS, Alabama, Chairman

BERNARD SANDERS, Vermont*            STEVEN C. LaTOURETTE, Ohio
CAROLYN B. MALONEY, New York           Vice Chairman
MELVIN L. WATT, North Carolina       RICHARD H. BAKER, Louisiana
GARY L. ACKERMAN, New York           MICHAEL N. CASTLE, Delaware
BRAD SHERMAN, California             EDWARD R. ROYCE, California
GREGORY W. MEEKS, New York           FRANK D. LUCAS, Oklahoma
LUIS V. GUTIERREZ, Illinois          SUE W. KELLY, New York
DENNIS MOORE, Kansas                 PAUL E. GILLMOR, Ohio
PAUL E. KANJORSKI, Pennsylvania      JIM RYUN, Kansas
MAXINE WATERS, California \3\        WALTER B. JONES, North Carolina
DARLENE HOOLEY, Oregon               JUDY BIGGERT, Illinois
JULIA CARSON, Indiana                PATRICK J. TOOMEY, Pennsylvania
HAROLD E. FORD, Jr., Tennessee       VITO FOSSELLA, New York
RUBEN HINOJOSA, Texas                MELISSA A. HART, Pennsylvania
KEN LUCAS, Kentucky                  SHELLEY MOORE CAPITO, West 
JOSEPH CROWLEY, New York             Virginia
STEVE ISRAEL, New York               PATRICK J. TIBERI, Ohio
MIKE ROSS, Arkansas                  MARK R. KENNEDY, Minnesota
CAROLYN McCARTHY, New York           TOM FEENEY, Florida
ARTUR DAVIS, Alabama                 JEB HENSARLING, Texas
JOE BACA, California \3\             SCOTT GARRETT, New Jersey
CHRIS BELL, Texas \1\                TIM MURPHY, Pennsylvania
BARNEY FRANK, Massachusetts          GINNY BROWN-WAITE, Florida
  ex officio                         J. GRESHAM BARRETT, South Carolina
                                     RICK RENZI, Arizona
                                     (Vacancy) \4\
                                     MICHAEL G. OXLEY, Ohio
                                       ex officio

*Mr. Sanders is an independent, but caucuses with the Democratic 
Caucus.

           Subcommittee on Housing and Community Opportunity

          (Ratio: 14-12)

   ROBERT W. NEY, Ohio, Chairman

MAXINE WATERS, California            MARK GREEN, Wisconsin
NYDIA M. VELAZQUEZ, New York           Vice Chairman
JULIA CARSON, Indiana                RICHARD H. BAKER, Louisiana
BARBARA LEE, California              PETER T. KING, New York
MICHAEL E. CAPUANO, Massachusetts    WALTER B. JONES, Jr. North 
BERNARD SANDERS, Vermont*            Carolina
MELVIN L. WATT, North Carolina       DOUG OSE, California
WM. LACY CLAY, Missouri              PATRICK J. TOOMEY, Pennsylvania
STEPHEN F. LYNCH, Massachusetts      CHRISTOPHER SHAYS, Connecticut
BRAD MILLER, North Carolina          GARY G. MILLER, California
DAVID SCOTT, Georgia                 MELISSA A. HART, Pennsylvania
ARTUR DAVIS, Alabama                 PATRICK J. TIBERI, Ohio
BARNEY FRANK, Massachusetts          KATHERINE HARRIS, Florida
  ex officio                         RICK RENZI, Arizona
                                     (Vacancy) \4\
                                     MICHAEL G. OXLEY, Ohio
                                       ex officio

*Mr. Sanders is an independent, but caucuses with the Democratic 
Caucus.
              Subcommittee on Oversight and Investigations

           (Ratio: 11-9)

   SUE W. KELLY, New York, Chair

LUIS V. GUTIERREZ, Illinois          RON PAUL, Texas
JAY INSLEE, Washington                 Vice Chairman
DENNIS MOORE, Kansas                 STEVEN C. LaTOURETTE, Ohio
JOSEPH CROWLEY, New York             MARK GREEN, Wisconsin
CAROLYN B. MALONEY, New York         JOHN B. SHADEGG, Arizona
JIM MATHESON, Utah                   VITO FOSSELLA, New York
STEPHEN F. LYNCH, Massachusetts      JEB HENSARLING, Texas
ARTUR DAVIS, Alabama \2\             SCOTT GARRETT, New Jersey
CHRIS BELL, Texas \1\                TIM MURPHY, Pennsylvania
BARNEY FRANK, Massachusetts          GINNY BROWN-WAITE, Florida
  ex officio                         J. GRESHAM BARRETT, South Carolina
                                     MICHAEL G. OXLEY, Ohio
                                       ex officio

                            Membership Notes

                                 ------                                

 The following members are on leave from the Committee on Financial 
Services: Mr. Dreier, ranking immediately after Mr. Leach; Ms. Pryce 
and Mr. Linder, ranking immediately after Mr. Baker; Ms. Myrick, 
ranking immediately after Mr. Paul; and Mr. Sessions, ranking 
immediately after Mr. Ryun.
\1\ Mr. Bell was elected to the Committee on January 28, 2004, filling 
a vacancy created by the resignation of Mr. Gonzalez on January 20, 
2004, who ranked immediately after Mr. Moore. On February 25, 2004, Mr. 
Bell was elected to the Subcommittees on Domestic and International 
Monetary Policy, Trade, and Technology; Financial Institutions and 
Consumer Credit; and Oversight and Investigations to fill vacancies on 
those subcommittees.
\2\ Mr. Hinojosa was elected to the Subcommittee on Oversight and 
Investigations on February 5, 2003, and ranked immediately after Mr. 
Gonzalez (who at that time ranked immediately after Mrs. Maloney). On 
May 5, 2003, Mr. Hinojosa resigned from the Subcommittee on Oversight 
and Investigations. Mr. Davis of Alabama was elected to fill the 
vacancy on May 20, 2003.
\3\ Ms. Velazquez resigned her seat on the Subcommittee on Financial 
Institutions and Consumer Credit (where she ranked immediately after 
Ms. Waters), and Mr. Baca resigned his seat on the Subcommittee on 
Domestic and International Monetary Policy, Trade, and Technology 
(where he ranked immediately after Ms. Velazquez), both effective 
February 18, 2004. On February 25, 2004, Ms. Velazquez was elected to 
fill the vacancy on the Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises created by the resignation of Mr. 
Gonzalez, and Mr. Baca was elected to fill the vacancy on the 
Subcommittee on Financial Institutions and Consumer Credit created by 
the resignation of Ms. Velazquez.
\4\ Mr. Bereuter (who ranked immediately after Mr. Leach) resigned from 
Congress effective September 1, 2004. Mr. Gerlach was elected to the 
Committee on Financial Services to fill the vacancy created by Mr. 
Bereuter's resignation on September 23, 2004. The vacancies on the 
Subcommittee on Financial Institutions and Consumer Credit and the 
Subcommittee on Housing and Community Opportunity created by Mr. 
Bereuter's resignation remained unfilled for the duration of the 108th 
Congress.
                            COMMITTEE STAFF


                             Majority Staff

       Robert U. Foster, III
          Staff Director
         Peggy A. Peterson
Communications Director and Deputy 
          Staff Director
        Carter K. McDowell
           Chief Counsel
      Hugh Nathanial Halpern
          General Counsel
        James K. Conzelman
     Counselor to the Chairman

                                 ------                                

      Peter Barrett, Counsel
Dirk Bartlett, Professional Staff 
              Member
   Sindey J. Blackmer, Special 
              Counsel
   Cindy Vosper Chetti, Senior 
     Professional Staff Member
 James H. Clinger, Senior Counsel
  Justin D. Daly, Senior Counsel
   Dale Michele Dorr, Executive 
            Assisstant
    David M. Eppstein, Counsel
    Dina Ellis, Senior Counsel
 George M. Foote, Staff Assistant
 Angela S. Gambo, Administrative 
             Assistant
   Robert Gordon, Senior Counsel
      Kristen Jaconi, Counsel
  Tallman Johnson, Professional 
           Staff Member
   Clinton Columbus Jones, III, 
          Senior Counsel
      Paul M. Kangas, Senior 
     Professional Staff Member
    Rosemary Elizabeth Keech, 
     Executive Staff Assistant
  Kevin MacMillan, Senior Counsel
 Barbara Matthews, Senior Counsel
     Sarah Morgan, Assistant 
      Communications Director
   David Oxner, Staff Assistant
 Joe Pinder, Senior Professional 
               Staff
 Beverly B. Price, Staff Assistant
Brendan Reilly, Professional Staff 
              Member
       Lois Richerson, Clerk
Christopher Rosello, Professional 
           Staff Member
Frank A. Tillotson, Senior Counsel
   Howard Traul, Staff Assistant
Kim Trimble, Calendar, Documents, 
     and Systems Administrator
      Glenn Westrick, Counsel
    Heather C. Wheeler, Staff 
             Assistant
  W. Scott Wilber, Senior Counsel
   Earnestine B. Worelds, Staff 
             Assistant
 Janice Marie Zanardi, Executive 
          Staff Assistant
                             Minority Staff

        Jeanne Roslanowick
Staff Director and General Counsel

                                 ------                                

 Eleni Constantine, Professional 
           Staff Member
   Todd Cranford, Senior Counsel
      Ricardo Delfin, Counsel
   S. Kay Gibbs, Communications 
             Director
Gary Goldberg, Professional Staff 
              Member
Warren Gunnels, Professional Staff 
              Member
   Jennifer Porter Gore, Press 
             Secretary
 Todd Harper, Professional Staff 
              Member
      Erika Jeffers, Counsel
Kellie Larkin, Professional Staff 
              Member
    Jaime E. Lizarraga, Senior 
     Professional Staff Member
  Patty Lord, Professional Staff 
              Member
     Dominique McCoy, Counsel
Dan McGlinchey, Professional Staff 
              Member
   Scott Morris, Chief Economist
    Jonathan Obee, Legislative 
             Assistant
 Scott Olson, Professional Staff 
              Member
        Jeff Riley, Counsel
 Dean Sagar, Senior Policy Analyst
 Lawranne Stewart, Senior Counsel
         Ken Swab, Counsel
                  LEGISLATIVE AND OVERSIGHT ACTIVITIES

    During the 108th Congress, 362 bills were referred to the 
Committee on Financial Services. The full Committee reported to 
the House or was discharged from the further consideration of 
45 measures, not including conference reports. Thirty-two 
measures regarding matters 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 
108th Congress, including a summary of the activities taken by 
the Committee to implement its Oversight Plan for the 108th 
Congress.
                    Committee on Financial Services

         (Ratio: 37-32-1)

 MICHAEL G. OXLEY, Ohio, Chairman

BARNEY FRANK, Massachusetts          JAMES A. LEACH, Iowa 
PAUL E. KANJORSKI, Pennsylvania      RICHARD H. BAKER, Louisiana 
MAXINE WATERS, California            SPENCER BACHUS, Alabama
CAROLYN B. MALONEY, New York         MICHAEL N. CASTLE, Delaware
LUIS V. GUTIERREZ, Illinois          PETER T. KING, New York
NYDIA M. VELAZQUEZ, New York         EDWARD R. ROYCE, California
MELVIN L. WATT, North Carolina       FRANK D. LUCAS, Oklahoma
GARY L. ACKERMAN, New York           ROBERT W. NEY, Ohio
DARLENE HOOLEY, Oregon               SUE W. KELLY, New York
JULIA CARSON, Indiana                  Vice Chair
BRAD SHERMAN, California             RON PAUL, Texas 
GREGORY W. MEEKS, New York           PAUL E. GILLMOR, Ohio
BARBARA LEE, California              JIM RYUN, Kansas 
JAY INSLEE, Washington               STEVEN C. LaTOURETTE, Ohio
DENNIS MOORE, Kansas                 DONALD A. MANZULLO, Illinois
MICHAEL E. CAPUANO, Massachusetts    WALTER B. JONES, Jr. North 
HAROLD E. FORD, Jr., Tennessee       Carolina
RUBEN HINOJOSA, Texas                DOUG OSE, California
KEN LUCAS, Kentucky                  JUDY BIGGERT, Illinois
JOSEPH CROWLEY, New York             MARK GREEN, Wisconsin
WM. LACY CLAY, Missouri              PATRICK J. TOOMEY, Pennsylvania
STEVE ISRAEL, New York               CHRISTOPHER SHAYS, Connecticut
MIKE ROSS, Arkansas                  JOHN B. SHADEGG, Arizona
CAROLYN McCARTHY, New York           VITO FOSSELLA, New York
JOE BACA, California                 GARY G. MILLER, California
JIM MATHESON, Utah                   MELISSA A. HART, Pennsylvania
STEPHEN F. LYNCH, Massachusetts      SHELLEY MOORE CAPITO, West 
BRAD MILLER, North Carolina          Virginia
RAHM EMANUEL, Illinois               PATRICK J. TIBERI, Ohio
DAVID SCOTT, Georgia                 MARK R. KENNEDY, Minnesota
ARTUR DAVIS, Alabama                 TOM FEENEY, Florida
CHRIS BELL, Texas                   JEB HENSARLING, Texas
BERNARD SANDERS, Vermont *           SCOTT GARRETT, New Jersey
                                     TIM MURPHY, Pennsylvania
                                     GINNY BROWN-WAITE, Florida
                                     J. GRESHAM BARRETT, South Carolina
                                     KATHERINE HARRIS, Florida
                                     RICK RENZI, Arizona
                                     JIM GERLACH, Pennsylvania

* Mr. Sanders is an independent, but caucuses with the Democratic 
Caucus.

                         Legislative Activities


           UNLAWFUL INTERNET GAMBLING FUNDING PROHIBITION ACT

                 (H.R. 21; H.R. 2143; H.R. 10; S. 627) 

    To prevent the use of certain bank instruments for unlawful 
Internet gambling, and for other purposes.

Summary

    H.R. 2143, the Unlawful Internet Gambling Funding 
Prohibition Act, directs the Federal functional regulators to 
prescribe regulations limiting the acceptance of any bank 
instrument for unlawful Internet gambling. It defines certain 
terms and establishes regulatory enforcement authorities. Its 
primary purpose is to give the Federal functional regulators a 
new, more effective tool for combating offshore Internet 
gambling sites that illegally extend their services to U.S. 
residents.

Legislative History

    On January 7, 2003, Mr. Leach introduced H.R. 21, the 
Unlawful Internet Gambling Funding Prohibition Act, with 13 
original cosponsors. H.R. 21 was referred to the Committee on 
Financial Services, and in addition to the Committee on the 
Judiciary. On March 13, 2003, the Committee on Financial 
Services met in open session and ordered H.R. 21 favorably 
reported to the House by a voice vote. On March 27, 2003, the 
Committee on Financial Services reported H.R. 21 to the House 
(H. Rept. 108-51, Part I).
    On April 29, 2003, the Subcommittee on Crime, Terrorism and 
Homeland Security of the Committee on the Judiciary held a 
hearing on H.R. 21. On May 6, 2003, the Subcommittee met in 
open session and approved H.R. 21 for consideration by the 
Committee on the Judiciary by a voice vote. On May 14, 2003, 
the Committee on the Judiciary met in open session and ordered 
H.R. 21 reported to the House, as amended, by a record vote of 
16 yeas and 15 nays. On May 22, 2003, the Committee on the 
Judiciary reported H.R. 21 to the House with an amendment (H. 
Rept. 108-51, Part II).
    On May 19, 2003, Mr. Bachus introduced similar legislation, 
H.R. 2143, the Unlawful Internet Gambling Funding Prohibition 
Act, with two original cosponsors. H.R. 2143 was referred to 
the Committee on Financial Services, which met in open session 
on May 21, 2003, and ordered the bill reported to the House by 
a voice vote. On June 2, 2003, the Committee on Financial 
Services reported H.R. 2143 to the House (H. Rept. 108-133, 
Part I). On June 3, 2003, the Committee on Financial Services 
filed a supplemental report to the House on H.R. 2143 (H. Rept. 
108-133, Part II), correcting an error in the original report.
    On June 9, 2003, the Committee on Rules met and reported a 
structured rule providing for consideration of H.R. 2143 (H. 
Res. 263). Therule provided for one hour of general debate and 
consideration of three specified amendments. On June 10, 2003, H. Res. 
263 passed the House. The House then considered and approved H.R. 2143 
by a record vote of 319 yeas and 104 nays. On June 11, 2003, H.R. 2143 
was received in the Senate, read twice, and referred to the Committee 
on Banking, Housing, and Urban Affairs.
    On March 13, 2003, Senator Kyl introduced S. 627, companion 
legislation to H.R. 2143. On July 31, 2003, the Senate 
Committee on Banking, Housing, and Urban Affairs met in open 
session and ordered S. 627, as amended, reported to the Senate. 
On October 27, 2003, the Senate Committee on Banking, Housing, 
and Urban Affairs reported S. 627 to the Senate (S. Rept. 108-
173). S. 627 was placed on the Senate Legislative Calendar 
under General Orders on October 27, 2003.
    The text of H.R. 2143, as passed by the House, was also 
included in the Committee's amendment to H.R. 10, the 9/11 
Recommendations Implementation Act, although it was not 
included in the text ultimately considered by the House.
    No further action was taken on this measure during the 
108th Congress.

           FINANCIAL CONTRACTS BANKRUPTCY REFORM ACT OF 2003

                         (H.R. 2120; H.R. 10) 

    To revise the banking and bankruptcy insolvency laws with 
respect to the termination and netting of financial contracts, 
and for other purposes.

Summary

    H.R. 2120, the Financial Contracts Bankruptcy Reform Act of 
2003, amends the banking and bankruptcy insolvency laws with 
respect to the netting of financial contracts. Specifically, 
the bill amends the U.S. Bankruptcy Code, the Federal Deposit 
Insurance Act (FDIA), as amended by the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (FIRREA), the 
payment system risk reduction and netting provisions of the 
Federal Deposit Insurance Corporation Improvement Act of 1991 
(FDICIA), and the Securities Investor Protection Act of 1970 
(SIPA). These amendments address the treatment of certain 
financial transactions following the insolvency of a party to 
those transactions. The amendments are designed to clarify and 
improve the consistency between the applicable statutes and to 
minimize the risk of a disruption within or between financial 
markets upon the insolvency of a market participant.

Legislative History

    H.R. 2120 was introduced by Mr. Toomey on May 15, 2003, 
with 19 original cosponsors, and was referred to the Committee 
on Financial Services, and in addition to the Committee on the 
Judiciary. On May 21, 2003, the Committee on Financial Services 
met in open session and ordered H.R. 2120 reported to the House 
by a voice vote. On September 18, 2003, the Committee on 
Financial Services reported H.R. 2120 to the House (H. Rept. 
108-277, Part I). The Committee on the Judiciary was granted a 
series of extensions for further consideration of matters 
within its jurisdiction through June 21, 2004, after which it 
was discharged from the further consideration of the bill.
    The text of H.R. 2120 as reported by the Committee was 
included in the Committee's amendment to H.R. 10, the 9/11 
Recommendations Implementation Act, although it was not 
included in the text ultimately considered by the House.
    No further action was taken on this measure during the 
108th Congress.

           COMPACT OF FREE ASSOCIATION AMENDMENTS ACT OF 2003

                   Public Law 108-188 (H.J. Res. 63) 

    A joint resolution to approve the Compact of Free 
Association, as amended, between the Government of the United 
States of America and the Government of the Federated States of 
Micronesia, and the Compact of Free Association, as amended, 
between the Government of the United States of America and the 
Government of the Republic of the Marshall Islands, and to 
appropriate funds to carry out the amended Compacts.

Summary

    H.J. Res. 63, the Compact of Free Association Amendments 
Act of 2003, is the authorizing and implementing legislation 
for the amended Compacts of Free Association that the United 
States recently has renegotiated with the Federated States of 
Micronesia (FSM) and the Republic of the Marshall Islands 
(RMI). The Committee has jurisdiction over section 108 of H.J. 
Res. 63, as reported by the Committee on Resources, which 
contained language addressing the eligibility of banks 
chartered in the Republic of the Marshall Islands and the 
Federated States of Micronesia for Federal deposit insurance.

Legislative History

    H.J. Res. 63 was introduced by Mr. Leach (by request) on 
July 8, 2003, with 5 original cosponsors, and was referred to 
the Committee on International Relations, and in addition to 
the Committee onResources. On July 23, 2003, the Committee on 
International Relations met in open session to consider H.J. Res. 63, 
and ordered the resolution reported, as amended, to the House by a 
voice vote. On September 4, 2003, the Committee on Resources met in 
open session to consider H.J. Res. 63, and ordered the resolution 
reported, as amended, to the House by a voice vote. On September 4, 
2003, the Committee on International Relations reported H.J. Res. 63 to 
the House (H. Rept. 108-262, Part I).
    On September 4, 2003, H.J. Res. 63 was sequentially 
referred to the Committee on the Judiciary, which met in open 
session on September 10, 2003, to consider the resolution, and 
ordered it reported to the House, as amended, by a voice vote. 
On September 15, 2003, the Committee on the Judiciary reported 
H.J. Res. 63 to the House (H. Rept. 108-262, Part III).
    On September 15, 2003, the Committee on Resources reported 
H.J. Res. 63 to the House (H. Rept. 108-262, Part II). Pursuant 
to an exchange of letters between the Committee on Resources 
and the Committee on Financial Services, this provision was not 
included in the legislation considered by the House.
    On October 28, 2003, the House considered H.J. Res. 63 
under suspension of the rules, and passed the resolution, as 
amended, by a voice vote. On October 29, 2003, H.J. Res. 63 was 
received in the Senate, read twice, and placed on the Senate 
Legislative Calendar under General Orders. On November 6, 2003, 
the Senate passed the resolution with amendments by unanimous 
consent. On November 20, 2003, the House considered the Senate 
amendments under suspension of the rules, and voted to agree to 
the Senate amendments by a record vote of 417 yeas and 2 nays, 
clearing the resolution for the White House.
    H.J. Res. 63 was presented to the White House on December 
5, 2003, and signed into law by the President on December 17, 
2003, becoming Public Law 108-188.

              BANKRUPTCY ABUSE AND PREVENTION ACT OF 2003

                               (H.R. 975)

    To amend title 11 of the United States Code, and for other 
purposes.

Summary

    H.R. 975, the Bankruptcy Abuse Prevention and Consumer 
Protection Act of 2003, is a comprehensive package of reform 
measures pertaining to both consumer and business bankruptcy 
cases. The purpose of the bill is to improve bankruptcy law and 
practice by restoring personal responsibility and integrity in 
the bankruptcy system and by ensuring that the system is fair 
for both debtors and creditors.

Legislative History

    H.R. 975 was introduced by Mr. Sensenbrenner on February 
27, 2003, with 50 original cosponsors, and referred to the 
Committee on the Judiciary, and in addition, to the Committee 
on Financial Services. On February 28, 2003, H.R. 975 was 
referred to the Judiciary Subcommittee on Commercial and 
Administrative Law. On March 12, 2003, the Committee on the 
Judiciary met in open session and ordered H.R. 975 reported to 
the House, as amended, by a record vote of 18 yeas and 11 nays. 
On March 18, 2003, the Committee on the Judiciary reported H.R. 
975 to the House (H. Rept. 108-40, Part I). On March 18, 2003, 
the Committee on Financial Services was discharged from the 
further consideration of H.R. 975, pursuant to an exchange of 
letters.
    On March 18, 2003, the Committee on Rules met and reported 
a rule providing for consideration of H.R. 975 (H. Res. 147). 
On March 19, 2003, the House agreed to H. Res. 147, and then 
considered and passed H.R. 975 by a record vote of 315 yeas and 
113 nays, with one Member voting present.
    On March 20, 2003, H.R. 975 was received in the Senate, 
read the first time, and placed on the Senate Legislative 
Calendar. On March 21, 2003, H.R. 975 was read the second time, 
and placed on the Senate Legislative Calendar under General 
Orders.
    No further action was taken on this measure in the 108th 
Congress.

                SERVICEMEMBERS CIVIL RELIEF ACT OF 2003

                     Public Law 108-189 (H.R. 100)

    To restate, clarify, and revise the Soldiers' and Sailors' 
Civil Relief Act of 1940.

Summary

    H.R. 100, the Servicemembers Civil Relief Act, is a 
comprehensive restatement of the Soldiers' and Sailors' Civil 
Relief Act of 1940 that would clarify and strengthen the rights 
and protections it provides to persons in military service. The 
legislation covers service members' financial obligations and 
liabilities, such as rent, mortgages, installment contracts and 
leases; civil (but not criminal) legal proceedings; life 
insurance; taxes; and rights in public lands.

Legislative History

    H.R. 100 was introduced in the House on January 7, 2003, by 
Mr. Smith and one original cosponsor, and was referred to the 
House Committee on Veterans' Affairs. On February 20, 2003, the 
bill was referred to the Subcommittee on Benefits. On April 3, 
2003, the Committee on Veterans' Affairs met in open session 
and ordered H.R. 100 to be reported to the House, as amended, 
by a voice vote. On April 30, 2003, the Committee on Veterans' 
Affairs reported H.R. 100 to the House (H. Rept. 108-81).
    As reported by the Committee on Veterans' Affairs, H.R. 100 
included provisions that fell within the jurisdiction of the 
Committee on Financial Services. Pursuant to an exchange of 
correspondence, the Committee on Veterans' Affairs agreed to 
make substantive changes to the relevant provisions sought by 
the Committee on Financial Services, and the Committee on 
Financial Services agreed not to seek a sequential referral of 
H.R. 100.
    On May 7, 2003, the House considered H.R. 100 under 
suspension of the rules, and passed the bill by a record vote 
of 425 yeas and no nays.
    The bill was received in the Senate on May 8, 2003, read 
twice and referred to the Committee on Veterans' Affairs. On 
November 21, 2003, the Senate Committee on Veterans' Affairs 
was discharged from further consideration of H.R. 100 by 
unanimous consent, and the bill was laid before the Senate. The 
Senate struck all after the enacting clause and substituted the 
text of S. 1136. On November 21, 2003, the bill passed the 
Senate with an amendment by unanimous consent.
    On December 8, 2003, the House agreed to the Senate 
amendment by unanimous consent, clearing the bill for the White 
House. On December 12, 2003, the bill was presented to the 
President. The bill was signed into law on December 19, 2003, 
becoming Public Law 108-189.

          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2004

                 Public Law 108-77 (H.R. 2417; S. 1025)

    To authorize appropriations for fiscal year 2004 for 
intelligence and intelligence-related activities of the United 
States Government, the Community Management Account, and the 
Central Intelligence Agency Retirement and Disability System, 
and for other purposes.

Summary

    H.R. 2417, the Intelligence Authorization Act for Fiscal 
Year 2004, authorized activities of the intelligence services 
for fiscal year 2004. Several of the provisions of the bill 
contained matters which fell within the jurisdiction of the 
Committee on Financial Services. Section 105 authorizes the 
establishment of an Office of Intelligence and Analysis within 
the Department of the Treasury to be headed by a presidentially 
appointed and Senate-confirmed Assistant Secretary. Section 374 
provides enhanced authority for authorized intelligence 
community collection activities designed to prevent, deter, and 
disrupt terrorism and espionage directed against the U.S., by 
expanding the definition of ``financial institution'' for 
purposes of section 1114 of the Right to Financial Privacy Act 
(12 U.S.C. 3414 (RFPA)). Section 376 amends a provision of the 
USA PATRIOT Act (31 U.S.C. 5318A) to authorize the Secretary of 
the Treasury, in judicial proceedings related to a finding that 
a country, financial institution, transaction, or type of 
account is of ``primary money laundering concern,'' to submit 
any classified information on which such a finding is based to 
the court ex parte and in camera.

Legislative History

    H.R. 2417 was introduced by Mr. Goss on June 11, 2003, and 
referred to the Permanent Select Committee on Intelligence. On 
June 18, 2003, the Permanent Select Committee on Intelligence 
reported H.R. 2417, as amended, to the House (H. Rept. 108-
163).
    On June 24, 2003, the Committee on Rules reported a 
modified closed rule providing for the consideration of H.R. 
2417 (H. Res. 295). The House passed H. Res. 295 on June 25, 
2003. The House considered H.R. 2417 on June 25, 26, and 27, 
and passed the bill on June 27, 2003, by a record vote of 410 
yeas and 9 nays.
    On June 27, 2003, H.R. 2417 was received in the Senate, 
read twice, and placed on the Senate Legislative Calendar under 
General Orders. The measure was laid before the Senate, amended 
with the text of S. 1025, as amended, and passed by unanimous 
consent on July 31, 2003. The Senate insisted on its amendment 
and appointed conferees from the Select Committee on 
Intelligence and the Senate Committee on Armed Services on 
August 1, 2003.
    On November 18, 2003, the House disagreed to the Senate 
amendment and agreed to the conference requested by the Senate 
by a voice vote. A motion to instruct the conferees by Ms. 
Harman was agreed to by a record vote of 404 yeas and 12 nays. 
The Speaker appointed conferees from the Permanent Select 
Committee on Intelligence and the House Committee on Armed 
Services. As memorialized in a series of letters between the 
Chairman of the Permanent Select Committee on Intelligence and 
the Chairman of the Committee on Financial Services, the 
Committee on Financial Services did not insist on 
representation on the conference committee based upon an 
agreement by thePermanent Select Committee on Intelligence to 
make changes to the provisions within the Financial Services 
Committee's jurisdiction.
    On November 19, 2003, the conference report to accompany 
H.R. 2417 (H. Rept. 108-381) was filed in the House, and the 
Committee on Rules reported a modified closed rule providing 
for the consideration of the conference report by the House (H. 
Res. 451). On November 20, 2003, H. Res. 451 passed the House, 
and the House then passed the Conference Report by a record 
vote of 264 yeas and 163 nays.
    On November 21, 2003, the Senate agreed to the conference 
report by a voice vote, clearing the measure for the White 
House. The bill was presented to the President on December 2, 
2003, and signed on December 13, 2003, becoming Public Law 108-
177.

   TEMPORARY REAUTHORIZATION OF THE NATIONAL FLOOD INSURANCE PROGRAM

Public Law Nos. 108-3, 108-171, and 108-199 (H.R. 11, H.R. 2673, and S. 
                                 1768)

    To extend the National Flood Insurance Program through 
2003.

Summary

    H.R. 11 reauthorized the NFIP retroactively from January 1, 
2003, through December 31, 2003. S. 1768 extended the 
authorization of the National Flood Insurance Program from 
December 31, 2003, to March 31, 2004, and section 136 of H.R. 
2673 further extended the program through June 30, 2004. For 
further information regarding the permanent reauthorization, 
see H.R. 253 in the legislative activities of the Subcommittee 
on Housing and Community Opportunity.

Legislative History

    On January 7, 2003, Chairman Oxley introduced H.R. 11 to 
extend the National Flood Insurance Program. The bill was 
referred to the House Committee on Financial Services and 
considered and passed by the House under suspension of the 
rules on January 8, 2003, by a voice vote. The bill was 
received in the Senate and read three times. The Senate 
considered and passed the bill without amendment by unanimous 
consent on January 9, 2003, clearing the bill for the White 
House. The bill was signed into law on January 13, 2003, 
becoming Public Law 108-3.
    S. 1768 was introduced by Senator Bunning on October 21, 
2003, and referred to the Senate Committee on Banking, Housing, 
and Urban Affairs. On October 27, 2003, the Senate Banking 
Committee was discharged from the further consideration of the 
bill and the Senate passed the bill without amendment by 
unanimous consent. On October 28, 2003, the bill was referred 
to the House Committee on Financial Services. On November 21, 
2003, the Committee on Financial Services was discharged from 
the further consideration of the bill, and the House passed the 
bill with an amendment by unanimous consent. On November 24, 
2003, the Senate agreed to the House amendment by unanimous 
consent, clearing the bill for the White House. On November 25, 
2003, S. 1768 was presented to the President and signed into 
law on December 6, 2003, becoming Public Law 108-171.
    H.R. 2673, the Consolidated Appropriations Act, 2004, was 
reported as an original measure by the Committee on 
Appropriations on July 9, 2003, as the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2004. During the conference on that 
legislation, the conferees added section 136, extending the 
effective date of the National Flood Insurance Program through 
June 30, 2004. The conference report was filed in the House on 
November 25, 2003 (H. Rept. 108-401). The House agreed to the 
conference report to accompany H.R. 2673 on December 8, 2003, 
by a record vote of 242 yeas and 176 nays. On January 22, 2004, 
the Senate agreed to the conference report by a roll call vote 
of 65 yeas and 28 nays, clearing the bill for the White House. 
It was presented to the President on the same day, and signed 
into law on January 23, 2004, becoming Public Law 108-199.

                      HOSPITAL MORTGAGE INSURANCE

                      Public Law 108-91 (H.R. 659)

    To amend section 242 of the National Housing Act (12 U.S.C. 
1715z-7) to ensure that hospitals will not be automatically 
prevented from applying for FHA mortgage insurance.

Summary

    H.R. 659, the Hospital Mortgage Insurance Act of 2003, 
amends section 242 of the National Housing Act to revise 
hospital need and feasibility standards for purposes of 
hospital mortgage insurance eligibility. The law directs the 
Secretary of the Department of Housing and Urban Development to 
(1) require satisfactory evidence that the hospital will be 
located in a State or political subdivision with reasonable 
minimum licensure and operating standards, and (2) establish 
the means for determining hospital need and feasibility, 
including following State procedures in States that have such 
official procedures and (3) eliminates the State certificate of 
need or feasibility study requirement.

Legislative History

    H.R. 659 was introduced on February 11, 2003, by Mr. Ney 
and two original cosponsors and the bill was referred to the 
Committee on Financial Services. On February 13, 2003, the 
Committee ordered the bill reported to the House by a voice 
vote. On March 6, 2003, the Committee reported the bill to the 
House, without amendment (H. Rept. 108-27).
    On March 12, 2003, the House considered H.R. 659 under 
suspension of the rules, and passed the bill by a record vote 
of 419 yeas and no nays. On March 13, 2003, H.R. 659 was 
received in the Senate, read twice, and referred to the 
Committee on Banking, Housing, and Urban Affairs.
    The bill was referred to the Senate Banking, Housing, and 
Urban Affairs Committee on March 13, 2003. On July 31, 2003, 
the Senate Banking Committee favorably reported the bill with 
an amendment in the nature of a substitute. The bill was 
considered and passed with an amendment by the Senate on 
September 2, 2003, by unanimous consent.
    On September 17, 2003, the House concurred with the Senate 
amendment under suspension of the rules by a voice vote, 
clearing the bill for the White House. On September 22, 2003, 
this bill was presented to the President for his signature and 
signed into law on October 3, 2003, becoming Public Law 108-91.

               BROWNFIELDS REDEVELOPMENT ENHANCEMENT ACT

                               (H.R. 239)

    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. 239, 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. 239 was introduced by Mr. Gary G. Miller of California 
with 10 original co-sponsors and referred to the Committee on 
Financial Services on January 8, 2003. On February 13, 2003, 
the Committee met in open session and ordered H.R. 239 to be 
reported to the House, by a voice vote. On March 5, 2003, the 
Committee reported H.R. 239 to the House (H. Rept. 108-22).
    No further action was taken on the bill in the 108th 
Congress.

               EMERGENCY SECURITIES RESPONSE ACT OF 2003

                          (H.R. 657; H.R. 10)

    To amend the Securities and Exchange Act of 1934 to augment 
the emergency authority of the Securities and Exchange 
Commission.

Summary

    H.R. 657, the Emergency Securities Response Act of 2003, 
provides the Securities and Exchange Commission (SEC) with 
enhanced authority to respond to extraordinary market 
disturbances. The bill extends the duration of an SEC emergency 
order from ten to thirty business days, and under certain 
circumstances, up to a total of ninety calendar days.

                          Legislative History

    H.R. 657 was introduced in the House by Mr. Garrett and 
five original cosponsors on February 11, 2003. The bill was 
referred to the Committee on Financial Services. The Committee 
met in open session on February 13, 2003 and ordered H.R. 657 
reported to the House with a favorable recommendation, with an 
amendment, by a voice vote.
    On February 25, 2003, the Committee on Financial Services 
reported H.R. 657 to the House (H. Rept. 108-19). On February 
26, 2003, the House considered the bill under suspension of the 
rules, and the House passed H.R. 657, with an amendment, by a 
voice vote.
    On February 27, 2003, the bill was received in the Senate, 
read twice, and referred to the Senate Committee on Banking, 
Housing, and Urban Affairs.
    The legislation was also included as sections 5084-5086 of 
H.R. 10, the 9/11 Recommendations Implementation Act, as passed 
by the House. For further information regarding action on this 
measure, please see H.R. 10 in this report.

           AMERICAN 5-CENT COIN DESIGN CONTINUITY ACT OF 2003

                      Public Law 108-15 (H.R. 258)

    To ensure continuity for the design of the 5-cent coin, 
establish the Citizens Coinage Advisory Committee, and for 
other purposes.

Summary

    The American 5-Cent Coin Design Continuity Act of 2003 
authorizes the Secretary of the Treasury to change the design 
on the obverse and reverse sides of five-cent coins issued in 
2003, 2004, and 2005, in recognition of the bicentennial of the 
Louisiana Purchase and the expedition of Meriwether Lewis and 
William Clark.
    The bill also establishes a Citizens Coinage Advisory 
Committee to advise the Secretary on coin designs proposed by 
the U.S. Mint. The panel membership is to include several 
different specialties to ensure that the advice to the 
Secretary is given independently of design input from the Mint. 
Further, it abolishes the Citizens Commemorative Coin Advisory 
Committee and provides for an orderly transition.
    Finally, the bill clarifies the requirements for payment of 
commemorative coin surcharge revenues to beneficiary 
organizations.

Legislative History

    H.R. 258 was introduced by Mr. Cantor on January 8, 2003, 
with 10 original cosponsors and referred to the House Committee 
on Financial Services. On February 13, 2003, the Committee met 
to consider the bill and ordered the bill to be favorably 
reported, with an amendment, by a voice vote. On February 26, 
2003, the Committee reported the bill to the House (H. Rept. 
108-20) and the House passed the bill under suspension of the 
rules by a record vote of 412 yeas and 5 nays.
    On February 27, 2003, H.R. 258 was received in the Senate 
and read twice and referred to the Committee on Banking, 
Housing, and Urban Affairs. On April 11, 2003, the Committee 
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.
    H.R. 258 was presented to the President on April 15, 2003, 
and signed into law on April 23, 2003, becoming Public Law 108-
15.

         DEPOSITARY SERVICES EFFICIENCY AND COST REDUCTION ACT

               Public Law 108-100 (H.R. 3183; H.R. 1474)

    To provide for direct and accurate compensation to 
financial institutions for providing various critical 
depositary and financial agency services for or on behalf of 
the United States, and for other purposes.

Summary

    H.R. 3183, the Depositary Services Efficiency and Cost 
Reduction Act, virtually eliminates the Department of 
Treasury's program to place Federal funds on deposit with 
certain financial institutions, in order to allow the imputed 
interest to offset fees that otherwise would be charged for 
depositary services rendered to the Federal government. The 
result is to provide a more cost effective and transparent 
system for compensating financial institutions for their 
services. This legislation provides for an orderly transition 
between the old method and the new and provides for the return 
to the old method only in extraordinary circumstances. Further, 
the bill also makes technical changes in the way the Federal 
Reserve collateralizes currency put into circulation, a move 
designed to allow more liquidity in the case of another terror 
attack or disaster.

Legislative History

    Mr. Oxley introduced H.R. 3183 on September 25, 2003, with 
one original cosponsor, and it was referred to the House 
Committee on Financial Services. The text of the measure was 
included as section 19 of the conference report to accompany 
H.R. 1474. For further action on this measure, see the entry 
for H.R. 1474 in the Financial Institutions Subcommittee 
section of this report.

                    NORTH AMERICAN DEVELOPMENT BANK

                     Public Law 108-215 (H.R. 254)

    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. 254 makes two changes to the congressional charter of 
the North American Development Bank (NADBank). First, it 
authorizes the NADBank to make grants and non-market rate loans 
out of its paid-in capital resources with the approval of its 
Board of Directors, rather than only the market rate loans 
permitted under current law. Second, the bill expands the 
region that the NADBank serves on only the Mexican side from 
100 kilometers of the international boundary line to within 300 
kilometers of the international boundary line.
    H.R. 254 also requires the Department of the Treasury to 
submit an annual report on certain enumerated issues relating 
to the NADBank.Currently, no annual report is required from the 
Department of the Treasury on these subjects. Finally, the bill 
expresses the sense of Congress on four items related to the equitable 
distribution of the Water Conservation Fund.

Legislative History

    On January 8, 2003, Mr. Bereuter introduced H.R. 254 with 
nine original cosponsors. On February 13, 2003, the Committee 
on Financial Services met in open session to consider H.R. 254 
and ordered it reported to the House with a favorable 
recommendation, by a voice vote. The Committee on Financial 
Services reported H.R. 254 to the House on February 25, 2003 
(H. Rept. 108-17).
    On February 26, 2003, the House considered H.R. 254 under 
suspension of the rules, passing the bill by a voice vote. On 
February 27, 2003, H.R. 254 was received in the Senate and read 
twice and referred to the Senate Committee on Foreign 
Relations.
    On March 12, 2004, the Senate Committee on Foreign 
Relations was discharged and the bill passed, with an 
amendment, by unanimous consent. On March 24, 2004, the House 
considered the Senate amendment under suspension of the rules. 
On March 25, 2004, the House concurred in the Senate amendment 
by a record vote of 377 yeas and 48 nays, clearing the bill for 
the White House.
    The bill was presented to the President on March 30, 2004, 
and signed into law on April 5, 2004, becoming Public Law 108-
215.

          2004 DISTRICT OF COLUMBIA OMNIBUS AUTHORIZATION ACT

                     Public Law 108-386 (H.R. 3797)

    To authorize improvements in the operations of the 
government of the District of Columbia, and for other purposes.

Summary

    H.R. 3797, the first annual omnibus authorization bill for 
the District of Columbia, authorizes improvements in the 
operations of the government of the District of Columbia. 
Section 8 of the bill, transferring oversight of banks 
chartered by the District of Columbia from the Office of the 
Comptroller of the Currency to the Federal Deposit Insurance 
Corporation, is a matter within the jurisdiction of the 
Committee on Financial Services.

Legislative History

    H.R. 3797 was introduced by Mr. Davis of Virginia on 
February 11, 2004, with one original cosponsor, and was 
referred to the Committee on Government Reform and, in 
addition, to the Committees on Financial Services and Education 
and the Workforce. On June 17, 2004, the Committee on 
Government Reform reported H.R. 3797, as amended, to the House 
(H. Rept. 108-551), and the Committee on Financial Services and 
the Committee on Education and the Workforce were discharged 
from further consideration of H.R. 3797.
    In exchange for the Committee on Government Reform's 
agreement to make technical changes to section 8 requested by 
the Committee on Financial Services, the Committee agreed to 
waive consideration of H.R. 3797 in a March 9, 2004, exchange 
of letters between the Chairman of the Committee on Financial 
Services and the Chairman of the Committee on Government 
Reform. On June 21, 2004, the House considered H.R. 3797 under 
suspension of the rules, and passed the bill by a voice vote.
    The bill was received in the Senate on June 22, 2004, read 
twice, and referred to the Senate Committee on Governmental 
Affairs. On July 21, 2004, the Senate Committee on Governmental 
Affairs ordered the bill to be reported favorably, without 
amendment.
    On October 11, 2004, the Senate Committee on Governmental 
Affairs was discharged from the further consideration of H.R. 
3797 by unanimous consent, and on that same date, the bill 
passed the Senate without amendment by unanimous consent. The 
bill was presented to the President on October 19, 2004, and 
signed into law on October 30, 2004, becoming Public Law 108-
386.

                 CONSOLIDATED APPROPRIATIONS ACT, 2005

                     Public Law 108-447 (H.R. 4818)


Summary

    The following legislative provisions within the 
jurisdiction of the Committee on Financial Services were 
included in H.R. 4818, the Consolidated Appropriations Act, 
2005:
    In division B, section 124 (relating to a 9/11 Medal of 
Valor), and a provisio under the Securities and Exchange 
Commission paragraph in title V (relating to a report on the 
final rule requiring an independent chairman for mutual funds);
    In division E, section 138 (relating to the eligibility of 
certain property for flood insurance), section 531 (relating to 
opposition to aid from the international financial institutions 
to Burma), section 565 (relating to the authority of the 
President to reduce certain debt), and section 593 (relating to 
certain administrative provisions related to the multilateral 
development banks); and,
    In division H, section 223 (relating to the Office of 
Terrorism and Financial Intelligence).

Legislative History

    On July 13, 2004, the Committee on Appropriations reported 
H.R. 4818, the Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 2005, to the House as an 
original measure (H. Rept. 108-599). The House passed the 
measure on July 15, 2004, by a record vote of 365 yeas and 41 
nays.
    On September 23, 2004, the Senate passed H.R. 4818 with an 
amendment by a voice vote. The conference report to accompany 
H.R. 4818 (H. Rept. 108-792), which was the vehicle for the 
Consolidated Appropriations Act, 2005, was filed in the House 
on November 20, 2004, and agreed to on the same day by a record 
vote of 344 yeas and 51 nays, 1 Member voting present.
    On November 20, 2004, the Senate agreed to the conference 
report by a roll call vote of 65 yeas and 30 nays.
    Pursuant to the provisions of H. Res. 866, the House was 
considered to have passed H. Con. Res. 528, correcting the 
enrollment of H.R. 4818 on November 20, 2004. That same day, 
the Senate passed H. Con. Res. 528, with an amendment by 
unanimous consent.
    On December 6, 2004, the House concurred in the Senate 
amendment to H. Con. Res. 528 by a record vote of 381 yeas and 
no nays, clearing H.R. 4818 for the White House.
    H.R. 4818 was presented to the President on December 7, 
2004, and signed into law on December 8, 2004, becoming Public 
Law 108-447.

                        COMMUNITY BANKING MONTH

                             (H. Res. 591)

    Expressing the gratitude of the House of Representatives 
for the contributions made by America's community banks to the 
Nation's economic well-being and prosperity and the sense of 
the House of Representatives that a month should be designated 
as ``Community Banking Month''.

Summary

    H. Res. 591 expresses the House of Representatives' 
gratitude for the contributions made by America's community 
banks to the Nation's economic well-being and prosperity, and 
expresses the sense of the House that a ``Community Banking 
Month'' should be designated to raise public awareness of, and 
public appreciation for, the contributions of the helpful 
institutions that are our Nation's community banks.

Legislative History

    H. Res. 591 was introduced by Mr. Bachus on March 31, 2004, 
and was referred to the Committee on Financial Services. 
Pursuant to an exchange of letters between the Chairman of the 
Committee on Financial Services and the Chairman of the 
Committee on Government Reform and Oversight, the Chairman of 
the Committee on Government Reform and Oversight agreed not to 
seek a sequential referral of the resolution. On June 21, 2004, 
the House considered H. Res. 591 under suspension of the rules, 
and agreed to the resolution by a record vote of 364 yeas and 
no nays.

                  MORTGAGE SERVICING CLARIFICATION ACT

                               (H.R. 314)

    To amend the Fair Debt Collection Practices Act to exempt 
mortgage servicers from certain requirements of the Act with 
respect to Federally related mortgage loans secured by a first 
lien, and for other purposes.

Summary

    H.R. 314, the Mortgage Servicing Clarification Act, amends 
the Fair Debt Collection Practices Act to exempt servicers of 
Federally related first lien mortgages from certain notice 
requirements that apply to third-party debt collectors.

Legislative History

    H.R. 314 was introduced on January 8, 2003, by Mr. Royce 
and seven original cosponsors, and referred to the Committee on 
Financial Services. On February 27, 2003, H.R. 314 was referred 
to the Subcommittee on Financial Institutions and Consumer 
Credit.
    On March 18, 2003, the House considered H.R. 314 under 
suspension of the rules. On March 19, 2003, the House passed 
the bill by a record vote of 424 yeas and no nays. On March 20, 
2003, H.R. 314 was received in the Senate, read twice, and 
referred to the Committee on Banking, Housing, and Urban 
Affairs.
    No further action was taken on this measure in the 108th 
Congress.

    SECONDARY MORTGAGE MARKET ENTERPRISES REGULATORY IMPROVEMENT ACT

                              (H.R. 2575)

    To reform the regulation of certain housing-related 
Government-sponsored enterprises, and for other purposes.

Summary

    H.R. 2575 creates a new regulatory agency charged with 
oversight of government sponsored enterprises (GSEs), Fannie 
Mae and Freddie Mac. The bill abolishes the current GSE 
regulator, the Office of Federal Housing Enterprise Oversight, 
and merges its duties with those of the Office of Thrift 
Supervision. The newly formed agency is renamed the Office of 
Housing Finance Supervision. H.R. 2575 grants the new GSE 
regulator authorities similar to banking regulators. These 
authorities include: the ability to set minimum and risk based 
capital levels; the power to take prompt corrective action 
against a troubled enterprise; and the ability to bring both 
civil and criminal penalties against the enterprises for 
violations of the law. The Secretary of HUD is granted prior 
approval of new activities as well as the ability to set and 
adjust the GSE housing goals.

Legislative History

    On June 24, 2003, Mr. Baker introduced H.R. 2575 with 
twenty original cosponsors. On September 25, 2003, the full 
Committee held a hearing on the bill and on the 
Administration's proposal for improved GSE regulation. No 
further action was taken on this measure during the 108th 
Congress.

                9/11 RECOMMENDATIONS IMPLEMENTATION ACT

                           (H.R. 10; S. 2845)

    To provide for reform of the intelligence community, 
terrorism prevention and prosecution, border security, and 
international cooperation and coordination, and for other 
purposes.

Summary

    The portions of H.R. 10 within the jurisdiction of the 
Committee on Financial Services authorize new funding for the 
fight against the financing of terror, give the government new 
tools to fight the funding of terrorism, take steps both to 
help prevent an attack on the financial system and to make the 
system and markets more resilient in case of another attack, 
and establish tools to improve international cooperation in the 
fight against terror funding. Among the major elements of the 
legislation are: additional authorizations for the Treasury 
Department's Financial Crimes Enforcement Network (FinCEN), to 
reduce the Bank Secrecy Act compliance burden on financial 
institutions while significantly increasing the usefulness of 
FinCEN's data to law enforcement; a reauthorization of 
apporiations for 2 additional fiscal years of the Money 
Laundering and Financial Crimes Strategy Act of 1998, as well 
as a two-year reauthorization of the National Strategy required 
under that Act; a series of purely technical corrections to the 
anti-terror finance title of the USA PATRIOT Act; authority for 
the Treasury Department to help countries strengthen their own 
currencies against counterfeiting; provisions providing for 
post-employment restrictions for certain bank, thrift, and 
credit union examiners to avoid conflicts of interests in the 
event these examiners are subsequently employed by a financial 
institution they oversaw as examiners; and language aimed at 
improving international cooperation to combat the financing of 
terror, including a requirement for the Treasury Secretary to 
report annually on anti-terrorist financing initiatives and 
language supporting codification of interagency cooperation 
before international sessions held to set standards for anti-
terrorist financing.

Legislative History

    On September 24, 2004, the Speaker introduced H.R. 10, with 
16 original cosponsors. The bill was referred to the House 
Permanent Select Committee on Intelligence, and in addition to 
the Committees on Armed Services, Education and the Workforce, 
Energy and Commerce, Financial Services, Government Reform, 
International Relations, the Judiciary, Rules, Science, 
Transportation and Infrastructure, Ways and Means, and the 
Select Committee on Homeland Security.
    On September 22, 2004, the Committee on Financial Services 
held a legislative hearing on proposals to implement those 
recommendations of the National Commission on Terrorist Attacks 
Upon the United States that fell within the Committee's 
jurisdiction. On September 29, 2004, the Committee on Financial 
Services met in open session, and ordered H.R. 10 reported to 
the House, with an amendment, by a voice vote.
    On October 4, 2004, the Committee on Financial Services 
reported H.R. 10 to the House (H. Rept. 108-724, Part III), as 
did the House Permanent Select Committee on Intelligence (H. 
Rept. 108-724, Part I) and the Committee on Armed Services (H. 
Rept. 108-724, Part II). On October 5, 2004, reports on H.R. 10 
were filed by the Committee on Government Reform (H. Rept. 108-
724, Part IV) and the Committee on the Judiciary (H. Rept. 108-
724, Part V). On the same date, the Committees on Education and 
the Workforce, Energy and Commerce, International Relations, 
Rules, Science, Transportation andInfrastructure, Ways and 
Means, and Homeland Security (Select) were discharged from further 
consideration of H.R. 10.
    On October 7, 2004, the Committee on Rules reported a rule 
providing for the consideration of H.R. 10 (H. Res. 827). The 
House agreed to H. Res. 827 on October 7, 2004, by a voice 
vote. On October 7 and 8, 2004, the House considered H.R. 10 
pursuant to the provisions of H. Res. 827. The legislation 
passed the House on October 8, 2004, by a record vote of 282 
yeas and 134 nays.
    S. 2845, the National Intelligence Reform Act of 2004, was 
introduced by Senator Collins on September 23, 2004, and 
considered by the Senate on September 27 through October 4, 
2004. The Senate agreed to invoke cloture on the measure on 
October 5, 2004, by a roll call vote of 85 yeas and 10 nays. On 
October 6, 2004, the Senate passed S. 2845 by a roll call vote 
of 95 yeas and 2 nays.
    On October 16, 2004, S. 2845 was received in the House, and 
pursuant to H. Res. 287, the House was considered to have 
passed S. 2845 with an amendment in the nature of a substitute 
consisting of the text of H.R. 10 as passed by the House, 
insisted on its amendment, and asked for a conference. The 
Speaker appointed Messrs. Hoekstra, Dreier, Hyde, Hunter, 
Sensenbrenner, Harman, Menendez, and Skelton as conferees on 
the part of the House. That day the Senate disagreed to House 
amendment, agreed to the request for a conference, and 
appointed conferees: Senators Collins, Lott, DeWine, Roberts, 
Voinovich, Sununu, Coleman, Lieberman, Levin, Durbin, 
Rockefeller, Graham of Florida, and Lautenberg.
    On October 17, 2004 the conferees met, the House chairing.
    On December 7, 2004, the conference report to accompany S. 
2845 was received in the House (H. Rept. 108-796). That day, 
the House passed H. Res. 870, a rule providing for the 
consideration of the conference report, by a voice vote. The 
House agreed to the conference report to accompany S. 2845 by a 
record vote of 336 yeas and 75 nays. On December 8, 2004, the 
conference report was agreed to by the Senate by a record vote 
of 89 yeas and 2 nays, clearing S. 2845 for the White House.
    On December 15, 2004, the bill was presented to the 
President, and signed into law on December 17, 2004, becoming 
Public Law 108-458.

                  Full Committee Oversight Activities


                      MONETARY AND ECONOMIC POLICY

    On February 12 and July 15, 2003, and February 11 and July 
21, 2004, the Committee received testimony from the Chairman of 
the Federal Reserve Board, the Honorable 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.
    Additionally, on April 30, 2003, the Committee held an 
additional hearing to hear Chairman Greenspan's testimony on 
United States' monetary and economic policy. In addition to 
Chairman Greenspan's testimony, the Committee heard testimony 
from several other economists regarding the state of the 
economy.

  REMITTANCES: REDUCING COSTS, INCREASING COMPETITION, AND BROADENING 
                          ACCESS TO THE MARKET

    On October 1, 2003, the Committee on Financial Services 
held a hearing to review developments in the market for 
international remittances. The United States has become the 
largest source of remittances in the world, with over $28 
billion in payments originating within its borders annually. 
This hearing examined the trends toward greater competition and 
lower costs for consumers in the remittances market, and 
highlighted innovative products that may help to expand 
consumers' access to low-cost remittance services. The hearing 
featured testimony from a senior Treasury Department official, 
and representatives of financial institutions and organizations 
dedicated to promoting stronger U.S.-Latin American ties.

                HUD PROPOSED BUDGET FOR FISCAL YEAR 2004

    The Committee on Financial Services held a hearing on 
Wednesday, March 5, 2003, to review housing programs under its 
jurisdiction, which includes the Department of Housing and 
Urban Development (HUD), the National Flood Insurance Program, 
the Rural Housing Service, and the Neighborhood Reinvestment 
Corporation.
    The Administration proposed $31.3 billion in FY 2004 budget 
authority for the Department of Housing and Urban Development 
(HUD). In releasing the President's budget, the Secretary of 
Housing and Urban Development stated that the budget request 
builds upon the Administration's commitment to address the 
minority homeownership gap, the availability and affordability 
of housing, and the need of the homeless. The Secretary of 
Housing and Urban Development was the only witness.

              STATE OF THE INTERNATIONAL FINANCIAL SYSTEM

    On May 13, 2003, the House Financial Services Committee 
held a hearing on the annual report by the Secretary of the 
Treasury on the International Monetary Fund Reform and the 
state of theInternational Financial System. The Secretary of 
the Treasury was the only witness.
    At this hearing, the Committee heard testimony from 
Secretary Snow on the following issues, among others: (1) the 
importance of promoting global growth through trade 
liberalization; (2) rebuilding Iraq and Afghanistan; (3) 
progress made in reforming the IMF; (4) the President's 
proposed Millennium Challenge Account; (5) the requests to 
authorize the U.S. participation of the United States in the 
thirteenth replenishment of the IDA, the seventh replenishment 
of the Asian Development Fund and the ninth replenishment of 
the African Development Fund; (6) the request to authorize 
additional funds to the Highly Indebted Poor Country Trust 
Fund; and (7) the current Department of the Treasury 
legislative mandates and reports.
    On Thursday, March 24, 2003, the Committee on Financial 
Services held a hearing titled ``The State of the International 
Financial System.'' It focused on progress in reforming the 
International Monetary Fund (IMF) and the broader international 
financial system. The only hearing witness was the Secretary of 
the Treasury.
    Pursuant to Public Law 105-277, the Secretary of Treasury 
appears annually before the Committee to report on progress in 
reforming the International Monetary Fund (IMF) and the broader 
international financial system, as well as country compliance 
with IMF conditions for assistance. During the hearing, the 
Secretary stressed the Treasury Department's efforts to promote 
economic growth and international trade. He noted that U.S. 
leadership of the G-7 has accelerated efforts to spur 
structural reforms and global economic growth through the 
``Agenda for Growth.'' This is the first time that G-7 
countries will identify specific initiatives to spur growth and 
then report on progress made on these initiatives.

                     U.S.-E.U. REGULATORY DIALOGUE

    On Thursday, May 13, 2004, the Committee on Financial 
Services held a full Committee hearing entitled, ``The U.S.-
E.U. Regulatory Dialogue and Its Future.'' The Committee heard 
testimony from representatives from the Department of the 
Treasury, the European Union, and the functional regulators. 
Building on the Committee's May 2002 hearing on the European 
Union's Financial Services Action Plan (FSAP), the hearing 
focused on how the regulatory dialogue is evolving.

       OVERSIGHT OF THE OFFICE OF THE COMPTROLLER OF THE CURRENCY

    On April 1, 2004, the Committee on Financial Services held 
an oversight hearing on the operations of the Office of the 
Comptroller of the Currency (OCC). The hearing focused on the 
state of the national banking industry; the effects of industry 
consolidation on the OCC's regulatory oversight of national 
banks; the OCC's efforts to maintain a qualified examination 
force; regulations issued by the OCC governing the extent to 
which State laws apply to the activities of banks chartered by 
the Federal government; and concerns about the impact of the 
proposed Basel capital accord on the U.S. banking system. The 
Comptroller of the Currency, was the sole witness.

                     SARBANES-OXLEY IMPLEMENTATION

    On September 17, 2003, the Committee on Financial Services 
held a hearing entitled ``Accounting under Sarbanes-Oxley: Are 
Financial Statements More Reliable?'' The hearing focused on 
the Public Company Accounting Oversight Board (PCAOB), created 
under Sarbanes-Oxley to serve as the primary regulator for 
auditors of public companies. Under Sarbanes-Oxley, the PCAOB 
is required to (1) register public accounting firms; (2) 
establish auditing, quality control and ethics standards 
proposed by a designated professional group of accountants; (3) 
inspect registered accounting firms; and (4) conduct 
investigations and disciplinary proceedings and impose 
sanctions upon registered firms and accountants.
    The Securities and Exchange Commission (SEC) has oversight 
and enforcement authority over the PCAOB. No rule of the PCAOB 
can take effect until approved by the SEC. Providing testimony 
to the Committee on the role and operations of the PCAOB were 
SEC Chairman William H. Donaldson and PCAOB Chairman William J. 
McDonough.
    On July 22, 2004, the Committee on Financial Services held 
a hearing entitled ``Sarbanes-Oxley: Two Years of Market and 
Investor Recovery.'' The focus of the hearing was on the impact 
of Sarbanes-Oxley upon public companies and auditing firms. 
Testimony revealed that companies are taking much more care in 
preparing their financial statements and that the audit, much 
neglected in the 1990s, has regained its place as the central 
focus for accounting firms. In addition, corporate directors, 
particularly those on the audit, nominating, and governance 
committees, are now more engaged.
    Testimony also disclosed complaints about the increased 
costs associated with compliance. The most frequent criticism 
involved the internal control standard of section 404 of the 
Sarbanes-Oxley Act and the increased auditing and legal costs 
resulting from this provision. The Committee heard testimony 
from a number of private-sector experts on the benefits of the 
provisions of Sarbanes-Oxley.

                        ACCOUNTING AT SHELL OIL

    On July 21, 2004, the Committee on Financial Services held 
a hearing entitled ``Shell Games: Corporate Governance and 
Accounting for Oil and Gas Reserves.'' The purpose of the 
hearing was to understand the accounting problems uncovered at 
Royal Dutch/Shell Group (Shell). On July 2, 2004, Shell, the 
world's third largest publicly traded oil company, announced in 
a filing with the Securities and Exchange Commission that it 
had overstated profits by $276 million over the past several 
years. The accounting problems were triggered by massive 
overbooking of oil and natural-gas ``proven'' reserves, the 
most precious asset of an oil company. Testifying before the 
full Committee were representatives from an institutional 
investor, an oil and gas investment banking boutique, and 
academia.

   THE 9/11 COMMISSION REPORT: IDENTIFYING AND PREVENTING TERRORIST 
                               FINANCING

    On August 23, 2004, the Committee on Financial Services 
held a hearing to examine those findings and recommendations of 
the National Commission on Terrorist Attacks upon the United 
States (9/11 Commission) that related to terrorist financing 
and other matters within the Committee's jurisdiction. In its 
report and testimony before the Committee, the 9/11 Commission 
urged that efforts to combat the financing of terrorist 
organizations remain a high priority of the United States 
government. Witnesses testifying at the hearing included the 
Vice Chairman of the 9/11 Commission, as well as 
representatives of the Department of the Treasury, Department 
of Homeland Security, and Department of Justice.

            PROTECTING OUR NATION'S FINANCIAL INFRASTRUCTURE

    On September 8, 2004, the Committee on Financial Services 
held a hearing entitled ``Protecting Our Financial 
Infrastructure: Preparation and Vigilance.'' The hearing 
examined efforts to protect the human, technical, and physical 
resources essential to the functioning of the financial 
services sector. The Committee heard testimony from the 
financial regulators and organizations representing the major 
market sectors.

             REGULATION OF GOVERNMENT SPONSORED ENTERPRISES

    On September 10, 2003, the Committee on Financial Services 
held a hearing entitled, ``Treasury Department Views on the 
Regulation of Government Sponsored Enterprises.'' The Committee 
received testimony on recommended improvements to the 
regulatory oversight of the GSEs following the accounting 
irregularities and management reorganization at Freddie Mac. 
The Secretary of the Treasury and the Secretary of the 
Department of Housing and Urban Development testified at this 
hearing.

              BANKS, MERGERS, AND THE AFFECTED COMMUNITIES

    On December 14, 2004, the Committee on Financial Services 
held a field hearing in Boston, Massachusetts entitled ``Banks, 
Mergers, and the Affected Communities. The hearing examined the 
extent to which the current laws governing mergers provide 
sufficient criteria to fully examine the potential impact of 
those mergers on local communities, as well as whether those 
laws are adequate to ensure that those communities' interests 
are protected once the merger has been completed. Witnesses 
also discussed the status of any community investment pledges 
made by the acquiring financial institution during the merger 
process and the effects of those mergers on jobs with, and 
employees of, the financial institutions. The Committee heard 
testimony from representatives of community groups, financial 
institutions, and State officials.

                             Hearings Held

    Monetary Policy and the State of the Economy. 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 12, 2003. PRINTED, serial no., 108-1.
    H.R. 522, the Federal Deposit Insurance Reform Act of 2003. 
Hearing on H.R. 522, the Federal Deposit Insurance Reform Act 
of 2003. March 4, 2003. PRINTED, serial no. 108-6.
    Housing Related Agency Budgets for FY 2004. Hearing 
entitled ``Housing Related Agency Budgets for FY 2004.'' March 
5, 2004. PRINTED, serial no. 108-7.
    United States Monetary and Economic Policy. Hearing to 
receive the testimony of the Chairman of the Federal Reserve 
Board of Governors on the United States monetary and economic 
policy. April 30, 2003. PRINTED, serial no. 108-24.
    State of International Financial System, IMF Reform, and 
Compliance with IMF Agreements. Hearing entitled ``The State of 
the International Financial System, IMF Reform, and Compliance 
with IMF Agreements.'' May 13, 2003. PRINTED, serial no. 108-
27.
    H.R. 2622, the Fair and Accurate Credit Transactions Act of 
2003. Hearing on H.R. 2622, the Fair and Accurate Credit 
Transactions Act of 2003. July 9, 2003. PRINTED, serial no. 
108-47.
    Monetary Policy and the State of the Economy. 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 15, 2003. PRINTED, serial no. 108-48.
    Treasury Department Views on the Regulation of Government 
Sponsored Enterprises. Hearing to receive the testimony of the 
Secretary of the Treasury and the Secretary of the Department 
of Housing and Urban Development on GSE regulation. September 
10, 2003. PRINTED, serial no, 108-51.
    Accounting under Sarbanes-Oxley: Are Financial Statements 
More Reliable? Hearing entitled ``Accounting under Sarbanes-
Oxley: Are Financial Statements More Reliable?'' September 17, 
2003. PRINTED, serial no. 108-52.
    H.R. 2575, the Secondary Mortgage Market Enterprises 
Regulatory Improvement Act and the Administration's proposals 
on GSE Regulation. Hearing on changes to the regulatory 
oversight of the GSEs. September 25, 2003. PRINTED, serial no, 
108-54.
    Remittances: Reducing Costs, Increasing Competition, and 
Broadening Access to the Market. Hearing entitled 
``Remittances: Reducing Costs, Increasing Competition, and 
Broadening Access to the Market.'' October 1, 2003. PRINTED, 
serial no. 108-55.
    Monetary Policy and the State of the Economy. 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 11, 2004. PRINTED, serial no, 108-67.
    State of the International Financial System. Hearing held 
to receive the annual testimony of the Secretary of the 
Treasury regarding the state of the international financial 
system and efforts to reform multilateral financial 
institutions. March 25, 2004. PRINTED, serial no. 108-75.
    Oversight of the Office of the Comptroller of the Currency. 
Hearing entitled ``Oversight of the Office of the Comptroller 
of the Currency.'' April 1, 2004. PRINTED, serial no. 108-78.
    The U.S.-E.U. Regulatory Dialogue and Its Future. Hearing 
to receive testimony from U.S. federal financial regulators and 
the European Commission regarding the state of transatlantic 
regulatory cooperation. May 13, 2004. PRINTED, serial no. 108-
86.
    Oversight of HUD. Hearing entitled ``Oversight of the 
Department of Housing and Urban Development.'' May 20, 2004. 
PRINTED, serial no. 108-89.
    Monetary Policy and the State of the Economy. 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 21, 2004. PRINTED, serial no. 108-104.
    Shell Games: Corporate Governance and Accounting for Oil 
and Gas Reserves. Hearing entitled ``Shell Games: Corporate 
Governance and Accounting for Oil and Gas Reserves.'' July 21, 
2004. PRINTED, serial no. 108-105.
    Sarbanes/Oxley: Two Years of Market and Investor Recovery. 
Hearing entitled ``Sarbanes/Oxley: Two Years of Market and 
Investor Recovery.'' July 22, 2004. PRINTED, serial no. 108-
106.
    The 9/11 Commission Report: Identifying and Preventing 
Terrorist Financing. Hearing on the Final Report of the 
National Commission on Terrorist Attacks upon the United 
States. August 23, 2004. Serial no. 108-107.
    Protecting our Financial Infrastructure: Preparation and 
Vigilance. Hearing entitled ``Protecting our Financial 
Infrastructure: Preparation and Vigilance.'' September 8, 2004. 
Serial no. 108-108.
    Legislative Proposals to Implement the Recommendations of 
the 9/11 Commission. Hearing entitled ``Legislative Proposals 
to Implement the Recommendations of the 9/11 Commission.'' 
September 22, 2004. Serial no. 108-112.
    Banks, Mergers, and the Affected Communities. Field hearing 
entitled ``Banks, Mergers, and the Affected Communities.'' 
December 14, 2004, Boston, Massachusetts. Serial no. 108-117.
 Subcommittee on Capital Markets, Insurance, and Government Sponsored 
                              Enterprises

          (Ratio: 26-23)
   RICHARD H. BAKER, Louisiana, 
             Chairman

PAUL E. KANJORSKI, Pennsylvania      DOUG OSE, California
GARY L. ACKERMAN, New York             Vice Chairman
DARLENE HOOLEY, Oregon               CHRISTOPHER SHAYS, Connecticut
BRAD SHERMAN, California             PAUL E. GILLMOR, Ohio
GREGORY W. MEEKS, New York           SPENCER BACHUS, Alabama
JAY INSLEE, Washington               MICHAEL N. CASTLE, Delaware
DENNIS MOORE, Kansas                 PETER T. KING, New York
MICHAEL E. CAPUANO, Massachusetts    FRANK D. LUCAS, Oklahoma
HAROLD E. FORD, Jr., Tennessee       EDWARD R. ROYCE, California
RUBEN HINOJOSA, Texas                DONALD A. MANZULLO, Illinois
KEN LUCAS, Kentucky                  SUE W. KELLY, New York
JOSEPH CROWLEY, New York             ROBERT W. NEY, Ohio
STEVE ISRAEL, New York               JOHN B. SHADEGG, Arizona
MIKE ROSS, Arkansas                  JIM RYUN, Kansas
WM. LACY CLAY, Missouri              VITO FOSSELLA, New York
CAROLYN McCCARTHY, New York          JUDY BIGGERT, Illinois
JOE BACA, California                 MARK GREEN, Wisconsin
JIM MATHESON, Utah                   GARY G. MILLER, California
STEPHEN F. LYNCH, Massachusetts      PATRICK J. TOOMEY, Pennsylvania
BRAD MILLER, North Carolina          SHELLEY MOORE CAPITO, West 
RAHM EMANUEL, Illinois               Virginia
DAVID SCOTT, Georgia                 MELISSA A. HART, Pennsylvania
NYDIA M. VELAZQUEZ, New York \3\     MARK R. KENNEDY, Minnesota
BARNEY FRANK, Massachusetts          PATRICK J. TIBERI, Ohio
  ex officio                         GINNY BROWN-WAITE, Florida
                                     KATHERINE HARRIS, Florida
                                     RICK RENZI, Arizona
                                     MICHAEL G. OXLEY, Ohio
                                       ex officio

                         Legislative Activities


      ACCOUNTANT, COMPLIANCE AND ENFORCEMENT STAFFING ACT OF 2003

                  Public Law 108-44 (H.R. 658, S. 496)

    To provide for the protection of investors, increase 
confidence in the capital markets system, and fully implement 
the Sarbanes-Oxley Act of 2002 by streamlining the hiring 
process for certain employment positions in the Securities and 
Exchange Commission.

Summary

    H.R. 658, the Accountant, Compliance, and Enforcement 
Staffing Act of 2003, allows the Securities and Exchange 
Commission (SEC) to more quickly fill critical accountant, 
securities compliance examiner, and economist positions with 
the best possible candidates on an expedited basis. The 
legislation authorizes the SEC to exempt accountant, securities 
compliance examiner, and economist positions from competitive 
service requirements (as SEC staff attorneys are currently), 
thus alleviating the significant delay in the recruitment and 
hiring of those positions caused by those requirements. This 
enhanced authority enables the SEC to fill a large number of 
new positions quickly, and to adequately respond to future 
staff attrition.

Legislative History

    H.R. 658 was introduced in the House by Mr. Baker and one 
original cosponsor on February 11, 2003. The bill was referred 
to the Committee on Financial Services, and in addition to the 
Committee on Government Reform. Within the Committee on 
Financial Services, the bill was referred to the Subcommittee 
on Capital Markets, Insurance, and Government Sponsored 
Enterprises on February 27, 2003.
    The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises held a hearing on March 6, 
2003, and heard from the SEC and the National Treasury 
Employees Union regarding the merits of the legislation. On 
March 20, 2003, the Subcommittee met in open session and 
approved the bill for full Committee consideration, with an 
amendment, by a voice vote. The full Committee met on March 26, 
2003, and ordered H.R. 658 reported to the House, with an 
amendment, with a favorable recommendation by a voice vote.
    On March 3, 2003, Senator Enzi introduced S. 496, companion 
legislation to H.R. 658. The bill was read twice and referred 
to the Senate Committee on Banking, Housing, and Urban Affairs. 
No further action was taken on S. 496 in the 108th Congress.
    On April 8, 2003, the Committee on Financial Services 
reported H.R. 658 to the House (H. Rept. 108-63, Part I) and 
the Committee on Government Reform was granted an extension for 
further consideration ending not later than June 2, 2003, when 
the Committee on Government Reform was discharged of the 
further consideration of the bill.
    On June 17, 2003, the House considered H.R. 658 under 
suspension of the rules and passed the bill by a record vote of 
423 yeas and no nays.
    The bill was received in the Senate on June 18, 2003. On 
June 19, 2003, the Senate passed the bill by unanimous consent, 
clearing the bill for the White House. H.R. 658 was presented 
to the President on June 24, 2003, and signed into law on July 
3, 2003, becoming Public Law 108-44.

  PERMITTING CHURCH PENSION PLANS TO BE INVESTED IN COLLECTIVE TRUSTS

                     Public Law 108-359 (H.R. 1533)

    To amend the securities laws to permit church pension plans 
to be invested in collective trusts.

Summary

    H.R. 1533 amends the Federal securities laws to grant 
church pension plans the ability to invest their assets in 
collective trust funds, providing parallel treatment under the 
securities laws for the assets of church pension plans and the 
assets of governmental pension plans.

Legislative History

    H.R. 1533 was introduced in the House by Mrs. Biggert and 
one original cosponsor on April 1, 2003. The bill was referred 
to the Committee on Financial Services. H.R. 1533 was referred 
to the Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises on April 10, 2003.
    The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises met in open session on July 
10, 2003, and approved the bill for full Committee 
consideration by a voice vote.
    The full Committee met in open session on July 23, 2003, 
and ordered H.R. 1533 reported to the House with a favorable 
recommendation by a voice vote. H.R. 1533 was reported to the 
House on September 3, 2003 (H. Rept. 108-248). The House 
considered H.R. 1533 on September 3, 2003, under suspension of 
the rules, passing the bill by a record vote of 397 yeas and no 
nays.
    On September 4, 2003, H.R. 1533 was received in the Senate, 
read twice, and referred to the Senate Committee on Banking, 
Housing, and Urban Affairs. On October 1, 2004, the Senate 
Committee on Banking, Housing, and Urban Affairs was discharged 
from the further consideration of the bill and it passed the 
Senate, with an amendment, by unanimous consent.
    On October 8, 2004, the House concurred in the Senate 
amendment to H.R. 1533 by unanimous consent, clearing the bill 
for the White House. The bill was presented to the President on 
October 13, 2004, and signed into law on October 25, 2004, 
becoming Public Law 108-359.

  MUTUAL FUNDS INTEGRITY AND FEE TRANSPARENCY ACT OF 2003 (H.R. 2420)

    To improve transparency relating to the fees and costs that 
mutual fund investors incur and to improve corporate governance 
of mutual funds.

Summary

    H.R. 2420, the Mutual Funds Integrity and Fee Transparency 
Act of 2003, provides for enhanced disclosure and new controls 
and monitoring mechanisms over the mutual fund industry and 
establishes new rules on fund corporate governance. The bill's 
major provisions include increasing independent board of 
directors' members from the statutorially required 40 percent 
to two-thirds of the board and strengthening independence 
qualifications; requiring the investment adviser to submit 
reports to the board of directors on revenue sharing, directed 
brokerage, and soft dollar arrangements; imposing a fiduciary 
duty on board members to review such arrangements and requiring 
disclosure of such arrangements; requiring disclosure of 
conflicts of interest in the sale of preferred funds and share 
classes; requiring disclosure of portfolio management's 
compensation structure and holdings; improving disclosure of 
fees and portfolio transaction costs; prohibiting fraudulent 
trading of fund shares by insiders; requiring adoption and 
oversight of compliance procedures and codes of ethics; 
requiring independent board certification of director oversight 
of portfolio management's compensation, net asset value 
calculation, fund flows, and compliance with securities laws 
and code of ethics; banning joint management of hedge funds and 
mutual funds; banning market timing by fund insiders; and 
preventing late trading.

Legislative History

    H.R. 2420 was introduced in the House by Mr. Baker and five 
original cosponsors on June 11, 2003. The bill was referred to 
the Committee on Financial Services. The bill was referred to 
the Subcommittee on Capital Markets, Insurance, and Government 
Sponsored Enterprises on June 18, 2003.
    The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises held a hearing on H.R. 2420 on 
June 18, 2003, regarding the merits of the legislation. The 
Subcommittee received testimony from the Securities and 
Exchange Commission, the General Accountability Office, and 
representatives from the mutual fund industry and an investor 
advocacy group.
    On July 23, 2003, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises was discharged 
from the further consideration of H.R. 2420, and the full 
Committee met in open session to consider the bill. H.R. 2420 
was ordered reported to theHouse, with an amendment, with a 
favorable recommendation by a voice vote.
    H.R. 2420 was reported to the House on November 4, 2003 (H. 
Rept. 108-351). The House considered H.R. 2420 on November 19, 
2003, under suspension of the rules, and passed the bill by a 
record vote of 418 yeas and 2 nays.
    On November 20, 2003, H.R. 2420 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 108th Congress.

           INCREASED CAPITAL ACCESS FOR GROWING BUSINESS ACT

                              (H.R. 3170)

    To amend the Investment Company Act of 1940 to provide 
incentives for small business investment, and for other 
purposes.

Summary

    H.R. 3170, the Increased Capital Access for Growing 
Business Act, amends the Investment Company Act of 1940 to 
include as an eligible portfolio company an issuer of 
securities that: (1) does not have any class of equity 
securities listed for trading on a national exchange or market; 
or (2) has an aggregate value of outstanding publicly traded 
equity securities of not more than $250 million.
    The bill also amends the Investment Company Act of 1940 to 
permit a business development company to invest in a company 
that is not an eligible portfolio company because the aggregate 
value of its outstanding publicly traded equity securities is 
more than $250 million but not more than $500 million, as long 
as such securities represent no more than 10 percent of the 
total invested assets of the company, for purposes of meeting 
the statutory limitation on purchase of assets in other than 
eligible portfolio companies.

Legislative History

    H.R. 3170 was introduced in the House by Mrs. Kelly and one 
original cosponsor on September 24, 2003. The bill was referred 
to the Committee on Financial Services. On October 3, 2003, the 
bill was referred to the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises.
    On April 28, 2004, the House considered H.R. 3170 under 
suspension of the rules and passed the bill by a voice vote.
    On April 29, 2004, H.R. 3170 was received in the Senate, 
read twice, and referred to the Committee on Banking, Housing, 
and Urban Affairs. No further action was taken on H.R. 3170 in 
the 108th Congress.

                   STOCK OPTION ACCOUNTING REFORM ACT

                          (H.R. 3574, S. 1890)

    To require the mandatory expensing of stock options granted 
to executive officers, and for other purposes.

Summary

    H.R. 3574, the Stock Option Accounting Reform Act, amends 
the Securities Exchange Act of 1934 to require each public 
company to show as an expense in its annual report the fair 
value of all stock options granted after December 31, 2004, to 
the chief executive officer and the other four most highly 
compensated executives. The bill also requires that if an 
option valuation model is used, the volatility of the 
underlying stock shall be assumed to be zero. The bill grants a 
reprieve from expensing options of the chief executive officer 
and other four most highly compensated executives to newly 
registered public companies for their initial three years and 
all small business issuers.
    In addition, the bill amends the Securities Act of 1933 to 
prohibit the Securities and Exchange Commission (SEC) from 
recognizing as ``generally accepted'' any accounting principle 
relating to the expensing of stock options until the 
completion, within one year of the date of enactment, of a 
joint study by the Secretaries of Commerce and of Labor of the 
economic impact of the mandatory expensing of employee stock 
options.
    The bill further directs the SEC to require each public 
company to include in its annual and quarterly reports more 
detailed information regarding stock option plans, stock 
purchase plans, and other employee equity arrangements, 
including a discussion of the dilutive effect of stock option 
plans.

Legislative History

    H.R. 3574 was introduced in the House by Mr. Baker and 
seven original cosponsors on November 21, 2003. The bill was 
referred to the Committee on Financial Services. The bill was 
referred to the Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises on December 2, 2003.
    The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises held a legislative hearing on 
March 3, 2004. The Subcommittee received testimony from 
representatives of smallbusiness and venture capital 
communities, an executive and an employee from public companies which 
grant employee stock options, and leaders of a pension fund and labor 
unions.
    The Subcommittee met in open session on May 12, 2004, and 
approved the bill for full Committee consideration, as amended, 
by a voice vote. The full Committee met on June 3 and 15, 2004, 
and ordered H.R. 3574 reported to the House, with an amendment, 
with a favorable recommendation by a record vote of 45 yeas and 
13 nays.
    On July 15, 2004, the Committee on Financial Services 
reported H.R. 3574 to the House (H. Rept. 108-609, Part I), and 
the bill was sequentially referred to the Committee on Energy 
and Commerce. On July 16, 2004, the Committee on Energy and 
Commerce was discharged of the further consideration of the 
bill.
    On July 19, 2004, the Committee on Rules met and reported a 
modified closed rule providing for consideration of H.R. 3574 
(H. Res. 725). On July 20, 2004, H. Res. 725 passed the House 
by a voice vote.
    On July 20, 2004, the House considered H.R. 3574 under the 
provisions of rule H. Res. 725, and passed the bill by a record 
vote of 312 yeas and 111 nays.
    The bill was received in the Senate on July 21, 2004. On 
September 7, 2004, the bill was read twice and referred to the 
Senate Committee on Banking, Housing, and Urban Affairs.
    On November 19, 2003, Senator Enzi introduced S. 1890, 
companion legislation to H.R. 3574. The bill was read twice and 
referred to the Senate Committee on Banking, Housing, and Urban 
Affairs.
    No further action was taken on either measure in the 108th 
Congress.

          MILITARY PERSONNEL FINANCIAL SERVICES PROTECTION ACT

                              (H.R. 5011) 

    To prevent the sale of abusive insurance and investment 
products to military personnel.

Summary

    H.R. 5011, the Military Personnel Financial Services 
Protection Act, addresses the abusive sales of financial 
products of dubious value to members of the armed services. To 
curb the sale of unsuitable securities products, this 
legislation amends the Investment Company Act of 1940 to make 
it unlawful, 30 days after the enactment of this legislation, 
to sell periodic payment plan certificates, also called 
contractual plans. The contractual plan is an investment 
product with a front-end sales load of 50 percent assessed 
against the first year of contributions that has all but 
disappeared from the civilian market.
    In addition, the bill provides investors with online access 
to information, including disciplinary actions, regarding 
broker-dealers. The legislation requires NASD to continue to 
maintain a system for collecting and retaining registration 
information regarding its member securities firms and their 
brokers, which NASD currently does through the Central 
Registration Depository, and to continue to provide toll-free 
telephone access, and begin to provide Internet or other access 
to this information. The bill also provides NASD with an 
appropriate limitation of liability in its maintenance of such 
a system.
    To prevent the abusive sales of insurance products, this 
bill applies any authority of a State insurance department to 
activities of insurers or agents on a U.S. military 
installation or any Federal land or facility, except to the 
extent that the authority directly conflicts with any 
applicable authorized Federal regulation or directive. The 
legislation further directs each State to implement standards 
to protect members of the Armed Forces, while on a military 
installation or any Federal land or facility, from dishonest 
and predatory insurance sales practices; and until a State has 
implemented such standards, life insurance may not be sold to 
any member without prior disclosure that subsidized life 
insurance may be available from the Federal Government and the 
State may not license or renew the license of any entity that 
has violated such prohibition.

Legislative History

    H.R. 5011 was introduced in the House by Mr. Burns and four 
original cosponsors on September 7, 2004. The bill was referred 
to the Committee on Financial Services. The Committee on 
Financial Services met in open session on September 29, 2004, 
and ordered H.R. 5011 reported to the House, as amended, with a 
favorable recommendation by a record vote of 68 yeas and no 
nays. Pursuant to an exchange of letters on October 4, 2004, 
the Committee on Armed Services agreed not to seek a sequential 
referral of the bill, based on an amendment adopted by the 
Committee on Financial Services.
    H.R. 5011 was reported to the House on October 5, 2004 (H. 
Rept. 108-725). On October 5, 2004, the House considered H.R. 
5011 under the suspension of the rules and passed the bill by a 
record vote of 396 yeas and 2 nays.
    On October 6, 2004, H.R. 5011 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 108th Congress.

    BROKER ACCOUNTABILITY THROUGH ENHANCED TRANSPARENCY ACT OF 2003

                   (H.R. 957, H.R. 2179, H.R. 5011) 

    To enhance investor confidence by providing investors with 
easy online access to complete information about securities 
firms and their brokers.

Summary

    H.R. 957, the Broker Accountability through Enhanced 
Transparency Act of 2003, requires NASD to continue to maintain 
a system for collecting and retaining registration information 
regarding its member securities firms and their brokers, which 
NASD currently does through the Central Registration 
Depository, and to continue to provide toll-free telephone 
access, and begin to provide Internet or other access to this 
information. The bill also provides NASD with an appropriate 
limitation of liability in its maintenance of such a system.

Legislative History

    H.R. 957 was introduced in the House by Mr. Renzi and two 
original sponsors on February 27, 2003. The bill was referred 
to the Committee on Financial Services. On March 6, 2003, 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 legislative hearing on 
March 6, 2003, and heard testimony from NASD regarding the 
merits of the legislation.
    While no further action was taken on this measure in the 
108th Congress, similar provisions were included in section 11 
of H.R. 2179, the Securities Fraud Deterrence and Investor 
Restitution Act of 2003, and section 4 of H.R. 5011, the 
Military Personnel Financial Services Protection Act. For 
further action, see the entries for those bills.

    SECURITIES FRAUD DETERRENCE AND INVESTOR RESTITUTION ACT OF 2003

                              (H.R. 2179) 

    To enhance the authority of the Securities and Exchange 
Commission to investigate, punish, and deter securities laws 
violations, and to improve its ability to return funds to 
defrauded investors, and for other purposes.

Summary

    H.R. 2179, the Securities Fraud Deterrence and Investor 
Restitution Act of 2003, enhances the ability of the SEC to 
investigate and deter fraud, levy and collect fines and 
disgorgement funds, and provides for a significant increase in 
the monies available for return to injured investors. The 
bill's major provisions include excluding the SEC's securities 
fraud judgments from state law property exemptions; permitting 
the SEC to impose civil money penalties in cease-and-desist 
proceedings, with a right of judicial review by the court of 
appeals; raising maximum penalties for securities fraud from 
$600,000 to $2 million; giving the SEC the express authority to 
contract with private collection attorneys; expanding the use 
of the FAIR Fund provision of the Sarbanes-Oxley Act of 2002 to 
allow any civil penalty monies obtained in an SEC action to be 
used for distribution for victims; providing that the SEC will 
seek to produce a joint study in cooperation with an 
association of State securities regulators on improving 
coordination and cooperation between the SEC and State 
securities regulators; providing investors with online access 
to information, including disciplinary actions, regarding 
broker-dealers; and authorizing the SEC to use undistributed 
portions of disgorgement funds established under the Sarbanes-
Oxley Act of 2002 for investor education, and requiring mutual 
funds which do not have an independent chair to appoint a lead 
independent director.

Legislative History

    H.R. 2179 was introduced in the House by Mr. Baker and four 
original cosponsors on May 21, 2003. The bill was referred to 
the Committee on Financial Services. The bill was referred to 
the Subcommittee on Capital Markets, Insurance, and Government 
Sponsored Enterprises on June 9, 2003.
    The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises held a legislative hearing on 
June 5, 2003. The SEC, NASD, and the North American Securities 
Administrators Association testified at the hearing.
    The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises met in open session on July 
10, 2003, and approved H.R. 2179 for full Committee 
consideration, as amended, by a voice vote.
    The full Committee met in open session on February 25, 
2004, to consider the legislation, and ordered H.R. 2179 
favorably reported to the House, with an amendment, by a voice 
vote. The Committee on Financial Services reported the bill to 
the House, with an amendment, on April 27, 2004 (H. Rept. 108-
475, Part I). The Committee on the Judiciary received a 
sequential referral through June 1, 2004.
    On June 1, 2004, the Committee on the Judiciary was 
discharged from the further consideration of the bill. No 
further action was taken on this measure in the 108th Congress.

           TERRORISM INSURANCE BACKSTOP EXTENSION ACT OF 2004

                              (H.R. 4634)

    To extend the terrorism insurance program of the Department 
of the Treasury.

Summary

    H.R. 4634, the Terrorism Insurance Backstop Extension, 
extends the Program created by the Terrorism Risk Insurance Act 
(TRIA) for two years, requires terrorism insurance coverage to 
be ``made available'' for the entire duration of the Program, 
and adds group life insurance coverage to the Program. It 
maintains the gradual increase in the Program's taxpayer 
protections as provided in existing law, and continues the slow 
phase-out of the Program by increasing taxpayer reimbursements 
from $15 billion in Program Year 3 to $17.5 billion in Year 4 
and $20 billion in Year 5. The legislation also maintains the 
Program's steady increases in insurer deductibles, stopping the 
deductible at 15 percent in Program Year 4 while continuing the 
Program's phase-out with a 20 percent deductible in Program 
Year 5. H.R. 4634 also requires the Treasury Department to 
report on long-term solutions for expanding the availability 
and affordability of terrorism insurance without a Federal 
backstop, and requires the Government Accountability Office to 
report on the Program's effectiveness, the capacity of insurers 
to offer terrorism insurance after TRIA expires, and the 
availability of terrorism insurance for various policyholders.

Legislative History

    H.R. 4634 was introduced on June 22, 2004 by Mr. Sessions 
and four original cosponsors and referred to the Committee on 
Financial Services. On June 28, 2004, the bill was referred to 
the Subcommittee on Capital Markets, Insurance, and Government 
Sponsored Enterprises.
    The Chairman discharged the Subcommittee from the further 
consideration of the bill on September 24, 2004. On September 
29, 2004, the Committee met in open session and ordered H.R. 
4634 reported to the House, with an amendment, by a voice vote.
    On November 18, 2004, the Committee on Financial Services 
reported the bill to the House, with an amendment (H. Rept. 
108-780).
    No further action was taken on this measure in the 108th 
Congress.

                          Oversight Activities


                     MUTUAL FUND INDUSTRY PRACTICES

    On March 12, 2003, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``Mutual Fund Industry Practices and Their Effect on 
Individual Investors.'' The purpose of the hearing was to 
examine the practices of the mutual fund industry. In 
particular, the Subcommittee examined the costs associated with 
mutual fund ownership, which often are not transparently 
disclosed, and fund corporate governance. Testifying before the 
Subcommittee were current and former executives from the mutual 
fund industry, and an investor advocate.
    On November 4 and 6, 2003, the Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held 
two days of hearings entitled ``Mutual Funds: Who's Looking Out 
for Investors?'' These hearings addressed the market timing and 
late trading scandals first revealed in September 2003 and 
mutual fund corporate governance and internal compliance 
procedures. Appearing before the Subcommittee were former 
Securities and Exchange Commission Chairman Arthur Levitt, 
Federal and State enforcement officials and regulators, and 
representatives from the mutual fund industry, academia, a 
trade association, and investor advocacy groups.

                            MARKET STRUCTURE

    On October 16, 2003, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``Reviewing U.S. Capital Market Structure: The New 
York Stock Exchange and Related Issues.'' The purpose of the 
hearing was to examine the corporate governance issues at the 
New York Stock Exchange (NYSE), the regulatory role of 
exchanges, and the potential conflicts of interest created by 
self-regulation. Witnesses testifying before the Subcommittee 
included NYSE Interim Chairman and Chief Executive Officer John 
Reed, executives of several other exchanges, markets, 
electronic communications networks, and representatives from an 
industry trade association, academia, and a think tank.
    On October 30, 2003, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``Reviewing U.S. Capital Market Structure: Promoting 
Competition in a Changing Trading Environment.'' The hearing 
focused on regulatory reforms that would enhance competition in 
the securities markets in light of the technological advances 
of recent years. The Subcommittee examined the trade-through 
rule, broker-dealers' internalization oforder flow, market 
access fees, decimalization, and sub-penny trading. Witnesses 
testifying included the Chairman of the SEC and representatives from 
the securities industry, and a trade association.
    On February 20, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a field 
hearing in New York City entitled ``Market Structure III: The 
Role of the Specialist in the Evolving Modern Marketplace.'' 
The hearing focused on recent reform efforts at the NYSE and 
the role of the NYSE specialist system in a technologically 
revolutionized marketplace. Witnesses testifying included the 
chief executive officer of the NYSE, and executives 
representing electronic communications networks, an exchange, a 
national market, a floor broker, an investment adviser, and an 
NYSE-listed public company.
    On May 18, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``The SEC Proposal on Market Structure: How Will 
Investors Fare?'' The hearing reviewed the SEC's proposed rule, 
``Regulation NMS,'' which contains four interrelated proposals 
designed to modernize the regulatory structure of the equity 
markets. Testifying before the Subcommittee were the former 
chief executive officer of an electronic communications 
network, executives of an institutional broker, a specialist 
firm and a market maker, and representatives from an industry 
trade association, academia, and two think tanks.

            PROTECTING THE CAPITAL MARKETS AGAINST TERRORISM

    On February 12, 2003, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``Recovery and Renewal: Protecting the Capital Markets 
against Terrorism Post 9/11.'' The purpose of the hearing was 
to provide a forum for the General Accounting Office (GAO) to 
present to the Subcommittee the principal findings of its study 
(requested by Mr. Oxley and others) on the preparations 
undertaken by financial market participants since September 11, 
2001, to protect themselves from physical and electronic 
attacks. Additionally, the Subcommittee heard direct testimony 
from actual market participants regarding these preparations. 
Aside from the GAO, the Subcommittee heard testimony from the 
Securities and Exchange Commission about its efforts to reduce 
the risks of significant disruptions in market operations in 
the event of another terrorist attack; executives from the New 
York Stock Exchange and the Nasdaq Stock Market about their 
physical and information security and business continuity 
measures; and the principal trade associations for broker-
dealers and bond market participants about these market 
participants' business continuity measures.

                 RETURNING MONEY TO DEFRAUDED INVESTORS

    On February 26, 2003, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``It's only FAIR: Returning Money to Defrauded 
Investors.'' The purpose of the hearing was to provide the 
Securities and Exchange Commission (SEC) a forum to discuss the 
principal findings and recommendations in the SEC's report 
(required pursuant to Section 308 of the Sarbanes-Oxley Act of 
2002) examining its enforcement actions over the previous five 
years in order to identify how those proceedings may best be 
utilized to return monies to defrauded investors; the FAIR Fund 
provision in the Sarbanes-Oxley Act; the difficulties the SEC 
encounters in collecting disgorgement; and the SEC's efforts to 
improve its collection efforts and return more money to 
investors. The SEC's Director of Enforcement testified before 
the Subcommittee.

                            RATING AGENCIES

    On April 2, 2003, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``Rating the Rating Agencies: the State of 
Transparency and Competition.'' The purpose of the hearing was 
to examine issues surrounding credit rating agencies including 
the possible need for more disclosure of reasons for ratings 
agencies' rating decisions; the potential conflicts of interest 
arising when issuers pay for ratings and when rating agencies 
develop additional fee-based services; the reasons for the 
existence of only four nationally recognized statistical rating 
organizations; rating agencies' anticompetitive practices; 
clarification of current recognition criteria for rating 
agencies; institution of timing goals and other procedures with 
respect to the evaluation of applications for regulatory 
recognition by the SEC; and the need for greater regulatory 
oversight. Testifying before the Subcommittee were the SEC's 
Market Regulation Director, executives from various ratings 
agencies, and representatives from a securities industry trade 
association, an investment management firm, and academia.
    On September 14, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``The Ratings Game: Improving Transparency and 
Competition among the Credit Rating Agencies.'' The purpose of 
the hearing was to continue the Subcommittee's oversight of 
credit rating agencies and the same issues examined at the 
hearing held on April 2, 2003. Witnesses testifying included 
two executives from rating agencies which are not nationally 
recognized statistical rating organizations and representatives 
from an industry trade association and a think tank.

                              HEDGE FUNDS

    On May 22, 2003, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``The Long and Short of Hedge Funds: Effects of 
Strategies for Managing Market Risk.'' The purpose of the 
hearing was to examine the regulatory issues surrounding hedge 
funds, including conflicts of interest faced by investment 
advisers managing both hedge funds and mutual funds, valuation 
of portfolio securities, alleged ``retailization'' of hedge 
funds, prime broker services provided to hedge funds, market 
impact, and fraud, as well as one of the strategies in which 
many hedge funds engage, short selling. Witnesses testifying 
before the Subcommittee included the Chairman of the Securities 
and Exchange Commission, executives from hedge fund advisers, 
and representatives from a legal foundation, an investigative 
association, and academia.

                 ACCOUNTING FOR EMPLOYEE STOCK OPTIONS

    On June 3, 2003, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``The Accounting Treatment of Employee Stock 
Options.'' The purpose of the hearing was to examine whether 
employee stock options should be recognized as an expense in a 
company's financial statements. Mr. Dreier and Ms. Eshoo 
testified on the merits of H.R. 1372, the Broad-Based Stock 
Option Plan Transparency Act, their legislation directing the 
SEC to increase the transparency of employee stock option plans 
by requiring enhanced disclosures in public company financial 
statements and to perform a three-year evaluation of the 
effectiveness of the new disclosures. The legislation also 
prohibited the SEC from recognizing as authoritative any 
standard of the Financial Accounting Standards Board (FASB) 
related to the treatment of stock options from the date of the 
bill's enactment through the submission of the SEC's report. 
Witnesses testifying before the Subcommittee included 
International Accounting Standards Committee Foundation 
Trustees' Chairman and former Federal Reserve Chairman Paul 
Volcker, FASB Chairman Robert Herz, former SEC Chairman 
Roderick M. Hills, and representatives from the high-tech 
industry and a think tank.
    On April 21 and May 4, 2004, the Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held 
two days of hearings entitled ``The FASB Stock Options 
Proposal: Its Effect on the U.S. Economy and Jobs.'' The 
hearing focused on the economic impact of FASB's rulemaking 
proposal to require all employee stock options to be recognized 
as an expense in a company's financial statements. Witnesses 
testifying before the Subcommittee were representatives from 
the FASB, the Director of the Congressional Budget Office, and 
representatives from the high-tech industry, a venture capital 
firm, a think tank, and academia.

                       529 COLLEGE SAVINGS PLANS

    On June 2, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``Investing for the Future: 529 State Tuition Savings 
Plans.'' The purpose of the hearing was to scrutinize 529 
college tuition savings plans, created in 1996 under the 
Federal tax code to encourage saving for college education and 
deemed municipal securities, thus falling under the 
jurisdiction of State regulators. The hearing focused on the 
regulatory oversight of these plans, the disparate and often 
confusing disclosure of plan fees and performance, and the 
recent and enormous growth in assets of these investment 
vehicles. Witnesses testifying before the Subcommittee were 
representatives from the College Savings Plans Network, Ohio's 
529 college tuition savings plan regulator, a mutual fund 
ratings firm, a securities industry trade association, an 
investor advocacy group, and academia.

                           SARBANES-OXLEY ACT

    During the 108th Congress the full Committee and the 
Subcommittee on Capital Markets, Insurance, and Government 
Sponsored Enterprises held a series of oversight hearings on 
the implementation of the provisions of the Sarbanes-Oxley Act 
of 2002 passed in the wake of the largest corporate scandals 
since the enactment of the securities laws in the 1930s. 
Sarbanes-Oxley is widely considered the most comprehensive 
corporate reform law in U.S. history.
    On February 4, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``The Role of Attorneys in Corporate Governance.'' The 
purpose of the hearing was to focus on the new standards of 
professional conduct for corporate attorneys. Sarbanes-Oxley 
included a provision requiring the SEC to issue rules 
establishing minimum standards of professional conduct for 
attorneys appearing and practicing before the agency. Witnesses 
provided testimony of their views on the SEC's adopted and 
proposed rules on the responsibility of attorneys to report 
fraudulent behavior and the breadth of attorney reporting 
requirements. Testifying before the Subcommittee were lawyers 
from a national law firm and a trade association and three 
representatives from legal academia.
    On June 24, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held an 
oversight hearing onthe Public Company Accounting Oversight 
Board (PCAOB) entitled ``Overview of the Public Company Accounting 
Oversight Board.'' The Chairman of the PCAOB testified before the 
Subcommittee on the status of the PCAOB's registration of public 
accounting firms, the PCAOB's establishment of auditing, quality 
control and ethics standards, and recently completed inspections by the 
PCAOB of the 4 largest public accounting firms.

                    GOVERNMENT SPONSORED ENTERPRISES

    On June 25, 2003, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``GSE Oversight: The Need for Reform and 
Modernization.'' Accounting irregularities at Freddie Mac 
resulted in a major management reorganization at the GSE. This 
occurred following an affirmation by the GSE regulator that 
there were no problems with management. Witnesses testifying 
before the Subcommittee included representatives from a credit 
rating agency, academia, and a government accountability 
organization.
    On January 21, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
to review the Office of Federal Housing Enterprise Oversight's 
(OFHEO) special examination of Freddie Mac. Following the 
accounting irregularities and management reorganization at 
Freddie Mac, OFHEO conducted a special examination of the GSE 
and developed regulatory remedies for these actions. Witnesses 
testifying before the Subcommittee included the Director of 
OFHEO and the CFO of Freddie Mac.
    On October 6, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled, ``The OFHEO Report: Allegations of Accounting and 
Management Failure at Fannie Mae,'' to review the OFHEO special 
examination of Fannie Mae. After the revelation of accounting 
irregularities at Freddie Mac, OFHEO began a forensic audit of 
Fannie Mae. The hearing examined an interim report which raised 
concerns relating to the accounting treatment of derivatives 
and potential revenue smoothing by Fannie Mae. Witnesses at 
this hearing included the Director of OFHEO, as well as the CEO 
and the CFO of Fannie Mae.

  OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT AND FEDERAL HOUSING 
                             FINANCE BOARD

    On July 13, 2004 the Subcommittee on Oversight and 
Investigations and the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a joint 
hearing entitled ``A Review of the Office of Federal Housing 
Enterprise Oversight and Federal Housing Finance Board.'' The 
Subcommittees examined the operations of the Office of Federal 
Housing Enterprise Oversight and the Federal Housing Finance 
Board. The Director of OFHEO and the Chairman of the Federal 
Housing Finance Board testified at this hearing.

         ABUSIVE FINANCIAL PRODUCT SALES TO MILITARY PERSONNEL

    On September 9, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``G.I. Finances: Protecting Those Who Protect Us.'' 
The hearing focused on the allegedly abusive practices 
involving sales of securities and insurance products to 
military personnel. Highlighted were the sales of the 
contractual plan, a product with a front-end sales load of 50 
percent assessed against the first year of contributions that 
has all but disappeared from the civilian market. Attention was 
also directed to sales of life insurance through coercive means 
and in violation of Department of Defense regulations. 
Witnesses testifying before the Subcommittee were executives 
from First Command Financial Planning, the dominant retailer of 
contractual plans, American Amicable Life Insurance Company of 
Texas, whose agents have been accused of sales abuses, a 
current military officer who was an alleged victim of abusive 
sales practices, and representatives from an investor advocacy 
group and various industry trade associations.

 SECONDARY MARKET INVOLVEMENT IN REAL ESTATE DEVELOPMENT IN THE POCONOS

    On June 14, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a field 
hearing in East Stroudsburg, Pennsylvania, entitled ``Broken 
Dreams in the Poconos: The Response of the Secondary Markets 
and Implications for Federal Legislation.'' The purpose of the 
hearing was to investigate the allegedly widespread ``predatory 
lending'' within the Monroe County, Pennsylvania, homebuilding 
and real estate communities. Predatory lending typically 
involves the practice of targeting individuals, often 
minorities or the elderly, with high-interest mortgages or 
loans with little or no consideration of their ability to 
repay. Predatory lending may also encompass the placement of 
individuals in over-valued homes using deceptive sales 
practices or faulty appraisals. Because such lending 
deliberately stretches borrowers beyond the amount they can pay 
or deceptively places them into an overvalued home, it 
regularly results in default or foreclosure proceedings, which 
has been common in Monroe County. Providing testimony before 
the Subcommittee were a Monroe County homeowner, a realtor, and 
representativesfrom Fannie Mae, Freddie Mac, a homeowners 
association, a builders association, and appraisal organizations.

                          INSURANCE REGULATION

    On April 10, 2003, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``The Effectiveness of State Regulation: Why Some 
Consumers Can't Get Insurance.'' The purpose of the hearing was 
to focus on the lack of availability of personal insurance for 
consumers in several States and the lack of capital for the 
insurance industry as a whole. Witnesses testifying before the 
Subcommittee included the Director of the South Carolina 
Department of Insurance, representatives from several trade 
associations, and an economist.
    On November 5, 2003, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``Reforming Insurance Regulation-Making the 
Marketplace More Competitive for Consumers.'' The hearing 
focused on the status of National Association of Insurance 
Commissioners (NAIC) initiatives to modernize State insurance 
regulation and the prospects for State based reform. The 
hearing also reviewed other proposed solutions to increase the 
efficiency and uniformity of insurance regulation. Witnesses 
testifying before the Subcommittee included the Arkansas 
Commissioner of Insurance, the New York Superintendent of 
Insurance, representatives from State legislatures, and 
executives from several trade associations and industry groups.
    On March 31, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``Working with State Regulators to Increase Insurance 
Choices for Consumers.'' The purpose of the hearing was to 
examine how to make State insurance regulation more efficient, 
uniform, and effective for consumers. Witnesses testifying 
before the Subcommittee included the Director of the South 
Carolina Department of Insurance and President of the National 
Association of Insurance Commissioners, the New York 
Superintendent of Insurance, the Washington State Insurance 
Commissioner, representatives from various trade associations, 
and marketplace participants and analysts.

                        TERRORISM RISK INSURANCE

    On April 2, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises and the 
Subcommittee on Oversight and Investigations held a joint 
hearing entitled ``A Review of TRIA and its Effect on the 
Economy: Helping America Move Forward.'' The purpose of the 
hearing was to conduct a review of the progress made by the 
Treasury Department and the insurance industry in implementing 
the provisions of the Terrorism Risk Insurance Act of 2002 
(TRIA), as well as changes in the market for terrorism 
insurance coverage under TRIA. The Subcommittee heard testimony 
from the Assistant Secretary of the Treasury for Financial 
institutions, the New York Superintendent of Insurance, and the 
Government Accountability Office.

                             Hearings Held

    Recovery and Renewal: Protecting the Capital Markets 
Against Terrorism Post 9/11. Hearing entitled ``Recovery and 
Renewal: Protecting the Capital Markets Against Terrorism Post 
9/11.'' February 12, 2003. PRINTED, serial no. 108-2.
    It's Only FAIR: Returning Money to Defrauded Investors. 
Hearing entitled ``It's Only FAIR: Returning Money to Defrauded 
Investors.'' February 26, 2003. PRINTED, serial no. 108-4.
    H.R. 658, the Accountant, Compliance, and Enforcement 
Staffing Act of 2003 and H.R. 957, the Broker Accountability 
through Enhanced Transparency Act of 2003. Hearing on H.R. 658, 
the Accountant, Compliance, and Enforcement Staffing Act of 
2003 and H.R. 957, the Broker Accountability through Enhanced 
Transparency Act of 2003. March 6, 2003. PRINTED, serial no. 
108-9.
    Mutual Fund Industry Practices and Their Effect on 
Individual Investors. Hearing entitled ``Mutual Fund Industry 
Practices and Their Effect on Individual Investors.'' March 12, 
2003. PRINTED, serial no. 108-11.
    Rating the Rating Agencies: the State of Transparency and 
Competition. Hearing entitled ``Rating the Rating Agencies: the 
State of Transparency and Competition.'' April 2, 2003. 
PRINTED, serial no. 108-18.
    The Effectiveness of State Regulation: Why Some Consumers 
Can't Get Insurance. Hearing entitled ``The Effectiveness of 
State Regulation: Why Some Consumers Can't Get Insurance.'' 
April 10, 2003. PRINTED, serial no. 108-22.
    Retirement Security: What Seniors Need to Know About 
Protecting Their Futures. Hearing entitled ``Retirement 
Security: What Seniors Need to Know About Protecting Their 
Futures.'' May 15, 2003. PRINTED, serial no. 108-29.
    The Long and Short of Hedge Funds: Effects of Strategies 
for Managing Market Risk. Hearing entitled ``The Long and Short 
of Hedge Funds: Effects of Strategies for Managing Market 
Risk.'' May 22, 2003. PRINTED, serial no. 108-30.
    The Accounting Treatment of Employee Stock Options. Hearing 
entitled ``The Accounting Treatment of Employee Stock 
Options.'' June 3, 2003. PRINTED, serial no. 108-32.
    H.R. 2179, the Securities Fraud Deterrence and Investor 
Restitution Act of 2003. Hearing on H.R. 2179, the Securities 
Fraud Deterrence and Investor Restitution Act of 2003. June 5, 
2003. PRINTED, serial no. 108-34.
    H.R. 2420, the Mutual Funds Integrity and Fee Transparency 
Act of 2003. Hearing on H.R. 2420, the Mutual Funds Integrity 
and Fee Transparency Act of 2003. June 18, 2003. PRINTED, 
serial no. 108-39.
    GSE Oversight: The Need for Reform and Modernization. 
Hearing entitled ``GSE Oversight: The Need for Reform and 
Modernization.'' June 25, 2003. PRINTED, serial no. 108-43.
    Reviewing U.S. Capital Market Structure: The New York Stock 
Exchange and Related Issues. Hearing entitled ``Reviewing U.S. 
Capital Market Structure: The New York Stock Exchange and 
Related Issues.'' October 16, 2003. PRINTED, serial no. 108-57.
    Reviewing U.S. Capital Market Structure: Promoting 
Competition in a Changing Trading Environment. Hearing entitled 
``Reviewing U.S. Capital Market Structure: Promoting 
Competition in a Changing Trading Environment.'' October 30, 
2003. PRINTED, serial no. 108-60.
    Mutual Funds: Who's Looking Out for Investors? Hearing 
entitled ``Mutual Funds: Who's Looking Out for Investors?'' 
November 4 and 6, 2003. PRINTED, serial no. 108-61.
    Reforming Insurance Regulation--Making the Marketplace More 
Competitive for Consumers. Hearing entitled ``Reforming 
Insurance Regulation--Making the Marketplace More Competitive 
for Consumers.'' November 5, 2003. PRINTED, serial no. 108-63.
    The Special Examination of Freddie Mac. Hearing on the 
Special Examination of Freddie Mac. January 21, 2004. PRINTED, 
serial no. 108-64.
    The Role of Attorneys in Corporate Governance. Hearing 
entitled ``The Role of Attorneys in Corporate Governance.'' 
February 4, 2004. PRINTED, serial no. 108-66.
    Market Structure III: The Role of the Specialist in the 
Evolving Modern Marketplace. Field hearing entitled ``Market 
Structure III: The Role of the Specialist in the Evolving 
Modern Marketplace.'' February 20, 2004. PRINTED, serial no. 
108-68.
    H.R. 3574, the Stock Option Accounting Reform Act. Hearing 
on H.R. 3574, the Stock Option Accounting Reform Act. March 3, 
2004. PRINTED, serial no. 108-69.
    Working with State Regulators to Increase Insurance Choices 
for Consumers. Hearing entitled ``Working with State Regulators 
to Increase Insurance Choices for Consumers.'' March 31, 2004. 
PRINTED, serial no. 108-77.
    The FASB Stock Options Proposal: Its Effect on the U.S. 
Economy and Jobs. Hearing entitled ``The FASB Stock Options 
Proposal: Its Effect on the U.S. Economy and Jobs.'' April 21 
and May 4, 2004. PRINTED, serial no. 108-80.
    A Review of TRIA and Its Effect on the Economy: Helping 
America Move Forward. Joint hearing with the Subcommittee on 
Oversight and Investigations entitled ``A Review of TRIA and 
Its Effect on the Economy: Helping America Move Forward.'' 
April 28, 2004. PRINTED, serial no. 108-81.
    The SEC Proposal on Market Structure: How Will Investors 
Fare? Hearing entitled ``The SEC Proposal on Market Structure: 
How Will Investors Fare?'' May 18, 2004. PRINTED, serial no. 
108-88.
    Investing for the Future: 529 State Tuition Savings Plans. 
Hearing entitled ``Investing for the Future: 529 State Tuition 
Savings Plans.'' June 2, 2004. PRINTED, serial no. 108-90.
    Broken Dreams in the Poconos: The Response of the Secondary 
Markets and Implications for Federal Legislation. Field hearing 
entitled ``Broken Dreams in the Poconos: The Response of the 
Secondary Markets and Implications for Federal Legislation.'' 
June 14, 2004. PRINTED, serial no. 108-92.
    Overview of the Public Company Accounting Oversight Board. 
Hearing entitled ``Overview of the Public Company Accounting 
Oversight Board.'' June 24, 2004. Serial no. 108-98.
    A Review of the Office of Federal Housing Enterprise 
Oversight and Federal Housing Finance Board. Joint hearing with 
the Subcommitee on Oversight and Investigations entitled ``A 
Review of the Office of Federal Housing Enterprise Oversight 
and Federal Housing Finance Board.'' July 13, 2004. Serial no. 
108-100.
    G.I. Finances: Protecting Those Who Protect Us. Hearing 
entitled ``G.I. Finances: Protecting Those Who Protect Us.'' 
September 9, 2004. Serial no. 108-109.
    The Ratings Game: Improving Transparency and Competition 
among the Credit Rating Agencies. Hearing entitled ``The 
Ratings Game: Improving Transparency and Competition among the 
Credit Rating Agencies.'' September 14, 2004. Serial no. 108-
110.
    The OFHEO Report: Allegations of Accounting and Management 
Failure at Fannie Mae. Hearing entitled ``The OFHEO Report: 
Allegations of Accounting and Management Failure at Fannie 
Mae.'' October 6, 2004. Serial no. 108-115.
Subcommittee on Domestic and International Monetary Policy, Trade, and 
                               Technology

          (Ratio: 14-12)

 PETER T. KING, New York, Chairman

CAROLYN B. MALONEY, New York         JUDY BIGGERT, Illinois
BERNARD SANDERS, Vermont*              Vice Chair
MELVIN L. WATT, North Carolina       JAMES A. LEACH, Iowa
MAXINE WATERS, California            MICHAEL N. CASTLE, Delaware
BARBARA LEE, California              RON PAUL, Texas
PAUL E. KANJORSKI, Pennsylvania      DONALD A. MANZULLO, Illinois
BRAD SHERMAN, California             DOUG OSE, California
DARLENE HOOLEY, Oregon               JOHN B. SHADEGG, Arizona
LUIS V. GUTIERREZ, Illinois          MARK R. KENNEDY, Minnesota
NYDIA M. VELAZQUEZ, New York \3\     TOM FEENEY, Florida
RAHM EMANUEL, Illinois               JEB HENSARLING, Texas
CHRIS BELL, Texas \1\                TIM MURPHY, Pennsylvania
BARNEY FRANK, Massachusetts          J. GRESHAM BARRETT, South Carolina
  ex officio                         KATHERINE HARRIS, Florida
                                     MICHAEL G. OXLEY, Ohio
                                       ex officio

*Mr. Sanders is an independent, but caucuses with the Democratic 
Caucus.

                         Legislative Activities


           INTERNATIONAL FINANCIAL INSTITUTIONS REPLENISHMENT

          Public Law 108-199 (H.R. 2673; H.R. 2800; H.R. 2243)

    To provide for the participation of the United States in 
the thirteenth replenishment of the resources of the 
International Development Association (IDA), the seventh 
replenishment of the resources of the Asian Development Fund 
(AsDF), and the ninth replenishment of the resources of the 
African Development Fund (AfDF), and for other purposes.

Summary

    H.R. 2243 authorizes the participation of the United States 
in the thirteenth replenishment of the IDA, the seventh 
replenishment of the AsDF and the ninth replenishment of the 
AfDF. These replenishments will be in such amounts as are 
appropriated by the Congress. Additionally, H.R. 2243 calls for 
efforts by the Secretary of the Treasury to seek to achieve 
significant policy goals within these development institutions 
related to transparency, preventing fraud, and promoting good 
governance.

Legislative History

    H.R. 2243 was introduced by Mr. King and one original 
cosponsor on May 22, 2003, and referred to the Committee on 
Financial Services. On June 15, 2003, it was referred to the 
Subcommittee on Domestic and International Monetary Policy, 
Trade, and Technology. On June 16, 2003, the Subcommittee on 
Domestic and International Monetary Policy, Trade, and 
Technology met in open session to consider H.R. 2243 and 
approved the measure for full Committee consideration by a 
voice vote.
    On July 23, 2003, the House considered H.R. 2800, the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 2004. An amendment to H.R. 2800 containing 
the substantive provisions of H.R. 2243 was agreed to by a 
voice vote. On July 24, 2003, the House approved H.R. 2800, as 
amended, by a record vote of 370 yeas and 50 nays.
    The text of H.R. 2800 was included in H.R. 2673, the FY 
2004 Consolidated Appropriations bill, which was signed into 
law on January 23, 2004, becoming Public Law 108-199.

             DEFENSE PRODUCTION ACT REAUTHORIZATION OF 2003

                Public Law 108-195 (H.R. 1280; S. 1680)

    To reauthorize the Defense Production Act of 1950, and for 
other purposes.

Summary

    H.R. 1280 authorized the extension of the Defense 
Production Act of 1950 (DPA) for five years, expiring at the 
end of fiscal year 2008. Additionally, the bill made certain 
technical amendments and lifted the $50 million per-project cap 
on projects that expand the domestic defense industrial base to 
$200 million for a project involving radiation-hardened 
electronics.
    The bill also includes provisions explicitly extending DPA 
authority for projects to protect the Nation's critical 
infrastructure, and a provision addressing defense offsets.

Legislative History

    H.R. 1280 was introduced by Mr. King on March 13, 2003, 
with two original cosponsors, and referred to the Committee on 
Financial Services. On March 19, 2003, the bill was referred to 
the Subcommittee on Domestic and International Monetary Policy, 
Trade, and Technology.
    On March 20, 2003, the Subcommittee held a hearing on the 
bill. Following the hearing, the Subcommittee met in open 
session on March 20, 2003, and approved H.R. 1280, as amended, 
by a voice vote.
    On March 26, 2003, the full Committee met in open session, 
and ordered the bill favorably reported to the House, with an 
amendment, by a voice vote. On April 2, 2003, H.R. 1280 was 
reported to the House by the Committee on Financial Services 
(H. Rept. 108-56).
    S. 1680 was introduced by Senator Shelby on September 30, 
2003, and referred to the Senate Committee on Banking, Housing, 
and Urban Affairs. On that date, this Committee reported an 
original measure to the Senate with a written report (S. Rept. 
108-156), and it was placed on the Senate Legislative Calendar. 
The bill was laid before the Senate and passed with an 
amendment by unanimous consent.
    On October 1, 2003, S. 1680 was received in the House and 
referred to the House Financial Services Committee.
    On October 15, 2003, S. 1680 was considered under 
suspension of the Rules and passed the House with an amendment 
by a voice vote.
    The Senate concurred in the House amendment with an 
amendment by unanimous consent on November 21, 2003.
    On December 8, 2003, the House agreed to the Senate 
amendment to the House amendment by unanimous consent, clearing 
the bill for the White House. This bill was presented to the 
President on December 11, 2004, and signed into law on December 
19, 2003, becoming Public Law 108-195.

                         TONY BLAIR GOLD MEDAL

                 Public Law 108-60 (H.R. 1511; S. 709)

    To award a congressional gold medal to Prime Minister Tony 
Blair.

Summary

    The bill directs the Speaker of the House of 
Representatives and the President Pro Tempore of the Senate to 
arrange for the presentation, on behalf of Congress, of a 
Congressional gold medal to Prime Minister Tony Blair of the 
United Kingdom in recognition of his outstanding and enduring 
contributions to maintaining the security of all freedom-loving 
nations. The legislation also requires the Secretary of the 
Treasury to strike the medal and allows for the striking and 
sale of duplicate bronze medals.

Legislative History

    H.R. 1511 was introduced by Mrs. Brown-Waite on March 31, 
2003, with ten original co-sponsors, and referred to the House 
Committee on Financial Services.
    On June 25, 2003, the House considered the measure under 
suspension of the rules, and passed the bill by a voice vote. 
On June 26, 2003, H.R. 1511 was received in the Senate, read 
twice, and referred to the Committee on Banking, Housing, and 
Urban Affairs.
    S. 709 was introduced in the Senate on March 26, 2003, by 
Senator Dole and 18 original cosponsors. It was read twice and 
referred to the Senate Committee on Banking, Housing, and Urban 
Affairs.
    On May 7, 2003, S. 709 was reported to the Senate by the 
Senate Committee on Banking, Housing, and Urban Affairs without 
amendment or a written report. On May 15, 2003, S. 709 was 
passed by the Senate without amendment by unanimous consent.
    On May 15, 2003, S. 709 was received in the House and 
referred to the House Committee on Financial Services. On May 
23, 2003, it was referred to the Subcommittee on Domestic and 
International Monetary Policy, Trade, and Technology.
    On July 14, 2003, the Committee on Financial Services was 
discharged from the further consideration of S. 709, and the 
House passed the bill by unanimous consent.
    On July 16, 2003, the bill was presented to the President 
and signed into law on July 17, 2003, becoming Public Law 108-
60.

                      GOLD MEDAL TO DOROTHY HEIGHT

                Public Law 108-162 (H.R. 1821; S. 1266)

    To award a congressional gold medal to Dr. Dorothy Height 
in recognition of her many contributions to the Nation.

Summary

    H.R. 1821 authorizes the Speaker of the House of 
Representatives and the President Pro Tempore of the Senate to 
arrange for the presentation to Dr. Dorothy Height, president 
of the National Council of Negro Women, of a Congressional gold 
medal in recognition of her many contributions to the Nation, 
including her work on civil rights, AIDS education, and women's 
rights. The Secretary of the Treasury is to strike the medal 
and may strike and sell bronze duplicates.

Legislative History

    H.R. 1821 was introduced by Ms. Watson and it was referred 
to the House Committee on Financial Services on April 11, 2003. 
On April29, 2003, H.R. 1821 was referred to the Subcommittee on 
Domestic and International Monetary Policy, Trade, and Technology.
    On October 15, 2003, the bill was considered under 
suspension of the rules and passed the House by a voice vote.
    On October 16, 2003, H.R. 1821 was received in the Senate. 
On October 21, 2003, H.R. 1821 was read twice and referred to 
the Senate Committee on Banking, Housing, and Urban Affairs.
    On November 21, 2003, the Senate Committee on Banking, 
Housing, and Urban Affairs was discharged from the further 
consideration of the bill, and the Senate passed H.R. 1821 
without amendment by unanimous consent, clearing the bill for 
the White House.
    On November 26, 2003, H.R. 1821 was presented to the 
President. The President signed H.R. 1821 into law on December 
6, 2003, becoming Public Law 108-162.

                     GOLD MEDAL TO JACKIE ROBINSON

                 Public Law 108-101 (H.R. 1900; S. 300)

    To posthumously award a Congressional gold medal to Jackie 
Robinson in recognition of his many contributions to the 
Nation, and to express the sense of the Congress that there 
should be a national day in recognition of Jackie Robinson.

Summary

    H.R. 1900 authorizes the President to present a gold medal, 
on behalf of Congress, to the family of Jackie Robinson in 
recognition of his contributions to the Nation, including his 
contributions to American sports, which earned him a place in 
Baseball's Hall of Fame. It authorizes the Secretary of the 
Treasury to strike the medal and allows him to strike and sell 
bronze duplicates. The legislation also calls for designation 
of a national day recognizing Robinson's accomplishments.

Legislative History

    H.R. 1900 was introduced by Mr. Neal on April 30, 2003, 
with 35 original cosponsors and referred to the House Committee 
on Financial Services. On May 12, 2003, H.R. 1900 was referred 
to the Subcommittee on Domestic and International Monetary 
Policy, Trade, and Technology.
    On October 7, 2003, the bill was considered under 
suspension of the rules and agreed to by a voice vote.
    On October 14, 2003, the bill was received in the Senate. 
It was passed without amendment by unanimous consent on October 
17, 2003, clearing the bill for the White House. On October 22, 
2003, H.R. 1900 was presented to the President, who signed it 
on October 29, 2003, becoming Public Law 108-101.

               GOLD MEDAL FOR BROWN V. BOARD OF EDUCATION

                 Public Law 108-180 (H.R. 3287; S. 498)

    To award Congressional gold medals, posthumously, to 
Reverend Joseph A. DeLaine, Harry and Eliza Briggs, and Levi 
Pearson in recognition of their contributions to the Nation as 
pioneers in the effort to desegregate public schools that led 
directly to the landmark desegregation case of Brown et al. v. 
the Board of Education of Topeka et al.

Summary

    H.R. 3287 authorizes the President posthumously to award 
gold medals, on behalf of Congress, to honor Rev. Joseph 
Armstrong De Laine, Harry and Eliza Briggs and Levi Pearson for 
their contributions to the Nation as civil rights activists for 
school desegregation in South Carolina. It directs the 
Secretary of the Treasury to strike the medals and allows the 
Secretary to strike and sell bronze duplicates.

Legislative History

    H.R. 3287 was introduced by Mr. Clyburn on October 10, 
2003, and referred to the House Committee on Financial 
Services. On October 22, 2003, H.R. 3287 was referred to the 
Subcommittee on Domestic and International Monetary Policy, 
Trade, and Technology.
    On November 18, 2003, the bill was considered under 
suspension of the rules and agreed to by a voice vote.
    On November 19, 2003, H.R. 3287 was received in the Senate 
and read twice. On November 25, 2003, it was passed by the 
Senate without amendment by unanimous consent, clearing the 
bill for the White House. H.R. 3287 was presented to the 
President on December 3, 2003, and signed into law on December 
15, 2003, becoming Public Law 108-180.

                    TRUE AMERICAN HEROES ACT OF 2003

                              (H.R. 1538)

    To posthumously award congressional gold medals to 
government workers and others who responded to the attacks on 
the World Trade Center and the Pentagon and perished and to 
people aboard United Airlines Flight 93 who helped resist the 
hijackers and caused the plane to crash, to require the 
Secretary of the Treasury to mint coins in commemoration of the 
Spirit of America, recognizing the tragic events of September 
11, 2001, and for other purposes.

Summary

    H.R. 1538, the True American Heroes Act of 2003, directs 
the Speaker of the House and the President pro tempore of the 
Senate to make arrangements for the posthumous award of 
Congressional gold medals to the emergency responders and 
others who responded to the attacks on the World Trade Center 
in New York City and at the Pentagon and perished in the tragic 
events of September 11, 2001, and copies to be placed in 
appropriate station houses and precincts. The bill also 
provides for the award of a Congressional gold medal to each 
passenger or crew member on board United Airlines Flight 93 who 
is identified by the Attorney General as having helped resist 
the hijackers and caused the plane to crash, and authorizes the 
Secretary to strike and sell duplicate bronze copies of the 
medals.
    The legislation also requires the Secretary of the Treasury 
to strike and make available for sale gold, silver, and 
``clad'' coins in commemoration of the attacks, and to give a 
specially packaged gold coin to the family of each victim of 
the attacks of September 11, 2001.

Legislative History

    H.R. 1538 was introduced by Mr. King with three original 
cosponsors and referred to the Committee on Financial Services 
on April 1, 2003. On April 11, 2003, H.R. 1538 was referred to 
the Subcommittee on Domestic and International Monetary Policy, 
Trade, and Technology.
    On September 11, 2003, H.R. 1538 was considered pursuant to 
a unanimous consent agreement and passed the House by a voice 
vote.
    On September 11, 2003, H.R. 1538 was received in the 
Senate, read twice, and referred to the Committee on Banking, 
Housing, and Urban Affairs.

                GOLD MEDAL TO PRESIDENT JOSE MARIA AZNAR

                              (H.R. 2131)

    To award a Congressional gold medal to President Jose Maria 
Aznar of Spain.

Summary

    H.R. 2131 authorizes the Speaker of the House and the 
President Pro Tempore of the Senate to arrange for the 
presentation, on behalf of Congress, of a gold medal to 
President Jose Maria Aznar of Spain because he was a steadfast 
ally of the United States in the war against terrorism.

Legislative History

    H.R. 2131 was introduced by Mr. Gibbons and six original 
cosponsors on April 15, 2003, and referred to the House 
Committee on Financial Services. On June 17, 2003, H.R. 2131 
was referred to the Subcommittee on Domestic and International 
Monetary Policy, Trade, and Technology.
    On March 10, 2004, the Subcommittee held a hearing on this 
legislation. Following the hearing on that day the Subcommittee 
met in open session and approved H.R. 2131 for full Committee 
consideration by a voice vote.
    On March 17, 2004, the full Committee met in open session 
and considered H.R. 2131. The Committee ordered the bill 
favorably reported to the House, without amendment. The 
Committee reported the bill to the House on April 20, 2004 (H. 
Rept. 108-463). No further action was taken on this measure 
during the 108th Congress.

       JAMESTOWN 400TH ANNIVERSARY COMMEMORATIVE COIN ACT OF 2003

                 Public Law 108-289 (H.R. 1914; S. 976)

    To provide for the issuance of a coin to commemorate the 
400th anniversary of the Jamestown settlement.

Summary

    This bill authorizes the Secretary of the Treasury, in 
2007, to strike and sell up to 500,000 one-dollar silver coins 
in commemoration of the 400th anniversary of the founding of 
the Jamestown settlement. It authorizes $10 surcharges on the 
sales of each coin with proceeds being paid, after satisfaction 
of audit requirements in section 5134(f) of title 31, United 
States Code, one-half to the Jamestown-Yorktown Foundation to 
promote understanding of the legacies of Jamestown and one-
half, split evenly between the foundation, the Secretary of the 
Interior and the Association for the Preservation of 
Antiquities in Virginia to further Jamestown-related projects.

Legislative History

    H.R. 1914 was introduced May 1, 2003, by Mrs. Davis of 
Virginia for herself and 13 original cosponsors and referred to 
the House Committee on Financial Services.
    On May 12, 2003, the bill was referred to the Subcommittee 
on Domestic and International Monetary Policy, Trade, and 
Technology. On March 10, 2004, the Subcommittee held a 
legislative hearing on the bill, immediately following which 
the Subcommittee considered thebill in open session and 
approved H.R. 1914 for full Committee consideration by a voice vote.
    On March 17, 2004, the full Committee met in open session 
to consider the legislation, and ordered the bill favorably 
reported to the House without amendment by a voice vote. The 
Committee reported the bill to the House on April 27, 2004 (H. 
Rept. 108-472, Part I), and the Committee on Ways and Means 
received a sequential referral for a period ending not later 
than July 6, 2004.
    On July 6, 2004, the Committee on Ways and Means reported 
the bill to the House with an amendment (H. Rept. 108-472, Part 
II).
    On July 14, 2004, the House considered the bill under 
suspension of the rules and passed H.R. 1914 with an amendment 
by a voice vote.
    On July 19, 2004, H.R. 1914 was received by the Senate and 
placed on the legislative calendar. On July 20, 2004, it passed 
the Senate without amendment by unanimous consent, clearing the 
bill for the White House. On July 26, 2004, the bill was 
presented to the President, and it was signed into law on 
August 6, 2004, becoming Public Law 108-289.

                  JOHN MARSHALL COMMEMORATIVE COIN ACT

                Public Law 108-290 (H.R. 2768; S. 1531)

    To require the Secretary of the Treasury to mint coins in 
commemoration of Chief Justice John Marshall.

Summary

    This bill authorizes the Secretary of the Treasury, in 
2005, to strike and sell up to 400,000 one-dollar silver coins 
in commemoration of John Marshall's service to the United 
States--not only as a Chief Justice, but also as a soldier in 
the Revolutionary War, as a Member of Congress, and as 
Secretary of State. It authorizes $10 surcharges on the sales 
of the coins with proceeds being paid, after satisfaction of 
audit requirements in section 5134(f) of title 31, United 
States Code, to the Supreme Court Historical Society to support 
historical research and educational programs about the Supreme 
Court and the Constitution of the United States and related 
topics; to support fellowship programs, internships, and 
docents at the Supreme Court; and to collect and preserve 
antiques, artifacts, and other historical items related to the 
Supreme Court and the Constitution of the United States and 
related topics.

Legislative History

    H.R. 2768 was introduced July 17, 2003, by Mr. Bachus and 
24 original cosponsors and referred to the Committee on 
Financial Services. On August 4, 2003, the bill was referred to 
the Subcommittee on Domestic and International Monetary Policy, 
Trade, and Technology. On March 10, 2004, the Subcommittee held 
a legislative hearing on the bill, immediately following which 
the Subcommittee considered the bill in open session and 
approved H.R. 2768 for full Committee consideration by a voice 
vote. On March 17, 2004, the full Committee met in open session 
to consider the legislation, and ordered the bill favorably 
reported to the House by a voice vote. The Committee reported 
the bill to the House on April 27, 2004, (H. Rept. 108-473, 
Part I). The Committee on Ways and Means received a sequential 
referral for a period ending not later than July 6, 2004.
    The Committee on Ways and Means reported the bill, with an 
amendment, on July 6, 2004 (H. Rept. 108-473, Part II).
    On July 14, 2004, the House considered the bill under 
suspension of the rules and passed H.R. 2768, with an 
amendment, by a voice vote.
    On July 19, 2004, H.R. 2768 was received by the Senate and 
placed on the legislative calendar. On July 20, 2004, it passed 
the Senate without amendment by unanimous consent, clearing the 
bill for the White House. On July 26, 2004, it was presented to 
the President, and signed into law on August 6, 2004, becoming 
Public Law 108-290.

         MARINE CORPS 230TH ANNIVERSARY COMMEMORATIVE COIN ACT

                 Public Law 108-291 (H.R. 3277, S. 894)

    To require the Secretary of the Treasury to mint coins in 
commemoration of the 230th Anniversary of the United States 
Marine Corps, and to support construction of the Marine Corps 
Heritage Center.

Summary

    This bill authorizes the Secretary of the Treasury to 
strike and sell up to 500,000 one-dollar silver coins in 
commemoration of the 230th anniversary of the founding of the 
Marine Corps on November 10, 2005. It authorizes $10 surcharges 
on the sales of the coins with proceeds being paid, after 
satisfaction of audit requirements in section 5134(f) of title 
31, United States Code, to the Marine Corps Heritage Foundation 
for the purposes of construction of the Marine Corps Heritage 
Center, as authorized by section 1 of Public Law 106-398 (114 
Stat. 1654).

Legislative History

    H.R. 3277 was introduced October 8, 2003, by Mr. Murtha for 
himself and seven original cosponsors and referred to the House 
Committee on Financial Services. On October 22, 2003, it was 
referred to the Subcommittee on Domestic and International 
Monetary Policy, Trade and Technology.
    On March 10, 2004, the Subcommittee held a legislative 
hearing on the bill, immediately following which the 
Subcommittee considered the bill in open session and approved 
H.R. 3277 for full Committee consideration by a voice vote. On 
March 17, 2004, the full Committee met in open session to 
consider the legislation, and ordered the bill favorably 
reported to the House by a voice vote. The Committee reported 
the bill to the House on April 27, 2004 (H. Rept. 108-474, Part 
I). The bill was sequentially referred to the Committee on Ways 
and Means for a period ending not later than July 6, 2004. The 
Committee on Ways and Means reported the bill to the House on 
July 6, 2004.
    On July 14, 2004, the House considered the bill under 
suspension of the rules and passed H.R. 3277 by a voice vote.
    On July 19, 2004, H.R. 3277 was received by the Senate and 
placed on the legislative calendar. On July 20, 2004, it passed 
the Senate without amendment by unanimous consent, clearing the 
bill for the White House. On July 26, 2004, it was presented to 
the President, and signed into law on August 6, 2004, becoming 
Public Law 108-291.

DISTRICT OF COLUMBIA AND UNITED STATES TERRITORIES CIRCULATING QUARTER 
                           DOLLAR PROGRAM ACT

                              (H.R. 2993)

    To provide for a circulating quarter dollar coin program to 
honor the District of Columbia, the Commonwealth of Puerto 
Rico, Guam, American Samoa, the United States Virgin Islands, 
and the Commonwealth of the Northern Mariana Islands, and for 
other purposes.

Summary

    This bill provides for the redesign of the reverse of the 
circulating quarter-dollar with reverse designs commemorating 
for equal portion of 2009, in order, the District of Columbia, 
the Commonwealth of Puerto Rico, Guam, American Samoa, the 
United States Virgin Islands, and the Commonwealth of the 
Northern Mariana Islands. Although the program is separate from 
the 50-State quarter-dollar program that ends the previous 
year, designs would be chosen in a similar fashion: by the 
Secretary of the Treasury after consultation with the chief 
executive of each jurisdiction. No quarter would be struck for 
a jurisdiction if it becomes a State or if it becomes 
independent before such striking would commence.

Legislative History

    H.R. 2993 was introduced September 3, 2003, by Mr. King of 
New York and six original cosponsors, and referred to the 
Committee on Financial Services. On September 16, 2003, it was 
referred to the Subcommittee on Domestic and International 
Policy, Trade, and Technology.
    On March 24, 2004, the House considered the bill under 
suspension of the rules, and the House passed H.R. 2993 by a 
record vote of 411 yeas and 14 nays. The bill was received in 
the Senate on March 29, 2004.
    No further action was taken on this measure in the 108th 
Congress.

     BUREAU OF ENGRAVING AND PRINTING SECURITY PRINTING ACT OF 2004

                              (H.R. 3786)

    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

    This bill authorizes the Treasury's currency-printing arm, 
the Bureau of Engraving and Printing, to print currency and 
other security documents for other countries on a fully 
reimbursable basis, provided that the Bureau has adequate 
capacity to do so without interfering with the printing of U.S. 
banknotes, and that the Secretary of State certifies that such 
work is consistent with U.S. foreign policy.

Legislative History

    H.R. 3786 was introduced by request on February 10, 2004, 
by Mr. King of New York and one original cosponsor, and 
referred to the Committee on Financial Services. On March 1, 
2004, it was referred to the Subcommittee on Domestic and 
International Monetary Policy, Trade and Technology.
    On March 24, 2004, the House considered the bill under 
suspension of the rules. The House passed H.R. 3786 by a record 
vote of 422 yeas and 2 nays.
    The bill was received in the Senate March 29, 2004, read 
twice and referred to the Senate Committee on Banking, Housing, 
and Urban Affairs.
    Language similar to H.R. 3786 was included in H.R. 10, the 
9/11 Recommendations Implementation Act. For further action on 
this measure, see H.R. 10.

                    PRESIDENTIAL $1 COIN ACT OF 2004

                              (H.R. 3916)

    To improve circulation of the $1 coin, create a new bullion 
coin, and for other purposes.

Summary

    H.R. 3916, the Presidential $1 Coin Act of 2004, improves 
the circulation of the one-dollar coin by establishing a 
regularly changing design for the coin similar to the 50-state 
quarter-dollar program. The obverse of the coin would change 
every three months, beginning in 2006, to represent, in order, 
the Presidents of the United States, and the reverse would 
represent the Statue of Liberty. Concurrently with that program 
a new investor-grade pure-gold bullion coin would be issued on 
the same schedule, with images representing the First Spouses 
of the President whose circulating coin was being struck at 
that point. Several design changes are specified for the 
circulating coin to make the dollar coins more attractive to 
consumers and collectors, and a Sense of Congress section 
suggests ways to remove bottlenecks to the orderly circulation 
of one-dollar coins throughout the country.

Legislative History

    H.R. 3916 was introduced March 9, 2004, by Mr. Castle and 
one original cosponsor, and referred to the Committee on 
Financial Services. On March 29, 2004, it was referred to the 
Subcommittee on Domestic and International Monetary Policy, 
Trade, and Technology.
    On April 28, 2004, the Subcommittee held a legislative 
hearing on the bill and immediately thereafter met to consider 
H.R. 3916 in open session, approving the bill for full 
Committee consideration, as amended, by a voice vote.
    On June 3, 2004, the full Committee met in open session to 
consider H.R. 3916. The bill was ordered favorably reported to 
the House, with an amendment, by a voice vote. The Committee 
reported the bill to the House, with an amendment, on June 24, 
2004 (H. Rept. 108-568).
    No further action was taken on this measure in the 108th 
Congress.

 GOLD MEDAL FOR REV. DR. MARTIN LUTHER KING, JR. AND HIS WIDOW CORETTA 
                               SCOTT KING

                Public Law 108-368 (S. 1368, H.R. 2680)

    To authorize the President to award a gold medal on behalf 
of the Congress to Reverend Doctor Martin Luther King, Jr. 
(posthumously) and his widow Coretta Scott King in recognition 
of their contributions to the Nation on behalf of the civil 
rights movement.

Summary

    This bill authorizes the President to present, on behalf of 
Congress, a gold medal of appropriate design to the Rev. Dr. 
Martin Luther King, Jr. (posthumously) and his widow, Coretta 
Scott King, as the ``first family of the civil rights 
movement,'' both with ``distinguished records of public service 
to the American people and the international community.''

Legislative History

    H.R. 2680 was introduced by Mr. Lewis of Georgia July 9, 
2003, and 79 original cosponsors, and referred to the Committee 
on Financial Services. On July 14, 2003, it was referred to the 
Subcommittee on Domestic and International Monetary Policy, 
Trade, and Technology.
    S. 1368 was introduced June 27, 2003, by Senator Levin and 
18 original cosponsors and referred to the Senate Committee on 
Banking, Housing, and Urban Affairs. On September 9, 2004, the 
Committee was discharged from the further consideration of the 
bill, and it was passed by the Senate without amendment by 
unanimous consent.
    It was received in the House September 13, 2004, and 
referred to the Committee on Financial Services. On October 7, 
2004, it was referred to the Subcommittee on Domestic and 
International Monetary Policy, Trade, and Technology.
    On October 8, 2004, the Committee on Financial Services was 
discharged from the further consideration of S. 1368, and 
passed by the House by unanimous consent, clearing the bill for 
the White House. On October 13, 2004, S. 1368 was presented to 
the President, and signed into law on October 25, 2004, 
becoming Public Law 108-368.

                BENJAMIN FRANKLIN COMMEMORATIVE COIN ACT

                Public Law 108-464 (H.R. 3204, S. 2568)

    To require the Secretary of the Treasury to mint coins in 
commemoration of the tercentenary of the birth of Benjamin 
Franklin, and for other purposes.

Summary

    This bill authorizes the Secretary of the Treasury, in 
2006, to strike and sell up to 250,000 each of two designs of 
one-dollar silver coins incommemoration of the 300th 
anniversary of the birth of Benjamin Franklin. It authorizes a $10 
surcharge on the sale of each coin with proceeds being paid, after 
satisfaction of audit requirements in section 5134(f) of title 31, 
United States Code, to the Franklin Institute for purposes of the 
Benjamin Franklin Tercentenary Commission.

Legislative History

    H.R. 3204 was introduced September 30, 2003, by Mr. Castle 
and one original cosponsor and referred to the Committee on 
Financial Services. On October 3, 2003, it was referred to the 
Subcommittee on Domestic and International Monetary Policy, 
Trade, and Technology.
    On October 8, 2004, the Committee on Ways and Means waived 
consideration of the measure through an exchange of letters. On 
November 17, 2004, the Committee on Financial Services was 
discharged from the further consideration of the bill, and the 
House passed the bill with an amendment by unanimous consent. 
On November 18, 2004, the Clerk was authorized to make a 
technical correction in the engrossment of the bill by 
unanimous consent.
    On November 19, 2004, the bill was received in the Senate. 
On December 7, 2004, the Senate passed the bill, clearing the 
measure for the White House.
    The bill was presented to the President on December 10, 
2004, and signed into law on December 21, 2004, becoming Public 
Law 108-464.

AMERICAN BALD EAGLE RECOVERY AND NATIONAL EMBLEM COMMEMORATIVE COIN ACT

                     Public Law 108-486 (H.R. 4116)

    To require the Secretary of the Treasury to mint coins 
celebrating the recovery and restoration of the American bald 
eagle, the national symbol of the United States, to America's 
lands, waterways, and skies and the great importance of the 
designation of the American bald eagle as an ``endangered'' 
species under the Endangered Species Act of 1973, and for other 
purposes.

Summary

    This bill authorizes the Secretary of the Treasury in 2005 
to strike and sell up to 100,000 5-dollar gold coins and 
500,000 one-dollar silver coins in celebration of the recovery 
of the bald eagle, and in commemoration of the 35th anniversary 
of the enactment of the Endangered Species Act of 1973 and the 
placement of the bald eagle on the endangered species list, 
January 1, 2008. It authorizes a $35 surcharge on the gold 
coins and a $10 surcharge on the sales of the silver coins with 
proceeds being paid, after satisfaction of audit requirements 
in section 5134(f) of title 31, United States Code, to the 
American Eagle Foundation of Tennessee to further its works.

Legislative History

    H.R. 4116, the American Bald Eagle Recovery and National 
Emblem Commemorative Coin Act, was introduced by Mr. Jenkins on 
April 1, 2004, and referred to the Committee on Financial 
Services. On April 20, 2004, the bill was referred to the 
Subcommittee on Domestic and International Monetary Policy, 
Trade, and Technology.
    On December 7, 2004, the Committee on Financial Services 
was discharged from the further consideration of the bill and 
the House passed H.R. 4116 by unanimous consent.
    On December 8, 2004, the bill was received in the Senate, 
read twice, and passed by the Senate without amendment by 
unanimous consent, clearing the bill for the White House.
    The bill was presented to the President on December 16, 
2004, and signed into law on December 23, 2004, becoming Public 
Law 108-486.

                          Oversight Activities


                            NEW BASEL ACCORD

    On February 27, 2003, the Subcommittee on Domestic and 
International Monetary Policy, Trade, and Technology held an 
oversight hearing entitled, ``The New Basel Accord--Sound 
Regulation or Crushing Complexity?'' The new Basel Accord 
(Basel II) has been in negotiations for several years and new 
capital standards applicable to the largest internationally 
active banks are set to emerge. The Subcommittee examined the 
impact Basel II will have on domestic financial institutions as 
well as international competition.
    The Subcommittee heard testimony from Federal regulators 
and representatives from financial institutions that will be 
affected by the proposed Accord as well as from academia.

                  OPENING TRADE IN FINANCIAL SERVICES

    On April 1, 2003, the Subcommittee on Domestic and 
International Monetary Policy, Trade, and Technology held a 
hearing entitled ``Opening Trade in Financial Services--the 
Chile and Singapore Examples.'' The hearing focused on the 
financial services related aspects of the recently announced 
free trade agreements (FTAs) with Chile and Singapore. The 
Subcommittee heard testimony from the Under Secretary of 
Treasury for International Affairs, the Assistant U.S. Trade 
Representative for Services, Intellectual Property, and 
Investment,and representatives from academia and the financial 
services sector.
    The purpose of this hearing was to give Members an 
opportunity to consider the Chile and Singapore free trade 
agreements as they relate to financial services. The Chile and 
Singapore agreements contain chapters on financial services 
(banking, securities, insurance, and asset management), 
investment, transparency and other areas. The financial 
services chapters include obligations on national treatment, 
most-favored-nation treatment and market access (non-
discriminatory measures), among other core obligations.

                  MATCHING CAPITAL AND ACCOUNTABILITY

    On Wednesday, June 11, 2003, the Subcommittee on Domestic 
and International Monetary Policy, Trade, and Technology held a 
hearing entitled ``Matching Capital and Accountability--the 
Millennium Challenge Account.'' The Subcommittee heard 
testimony from the Under Secretary of the Treasury for 
International Affairs, the Under Secretary of State for 
Economic, Business and Agricultural Affairs, and the 
Administrator of the Agency for International Development.
    The Millennium Challenge Account (MCA) is a new 
developmental aid structure based on transparency and 
accountability. These two factors are often criticized as 
lacking in U.S. participation with multilateral development 
institutions. Since the majority of selection criteria and 
performance indicators used within the MCA rely on 
international financial institution and multilateral 
development bank data, Members were specifically interested in 
the process of indicator selection.

                      CHINA'S EXCHANGE RATE REGIME

    On Wednesday, October 1, 2003, the Subcommittee on Domestic 
and International Monetary Policy, Trade, and Technology held a 
hearing entitled ``China's Exchange Rate Regime and Its Effects 
on the U.S. Economy.'' The Subcommittee heard testimony from 
Members of Congress, the Under Secretary of the Treasury for 
International Affairs, the Under Secretary of Commerce for 
International Trade, as well as representatives from academia 
and trade associations.
    This hearing focused on the renminbi exchange rate regime, 
its effect on the U.S. economy, and the role of the U.S. 
Government in promoting change to that exchange rate regime. 
China has grown to become the fourth-largest U.S. trading 
partner and it recently entered the World Trade Organization 
(WTO). Increased trade liberalization has not been accompanied 
by capital account liberalization, however. The Chinese 
currency (the ``renminbi,'' which is denominated in ``yuan'') 
is pegged to the U.S. dollar. Since 1994, the exchange rate has 
been fixed at 8.3 yuan to one U.S. dollar. This places pressure 
on the both the Chinese and U.S. economies.
    At the time of the hearing, multiple bills and resolutions 
had been introduced in the House and the Senate seeking to 
counterbalance the perceived impact of the Chinese exchange 
rate regime on the U.S. manufacturing sector.

                       WORLD BANK LENDING TO IRAN

    On Wednesday, October 29, 2003, the Subcommittee on 
Domestic and International Monetary Policy, Trade, and 
Technology held a hearing entitled, ``World Bank Lending to 
Iran.'' The Subcommittee heard testimony from the Deputy 
Assistant Secretary of the Treasury for International 
Development, and several academics.
    The Subcommittee hearing explored U.S. policy options 
regarding World Bank lending to Iran. Some believe that World 
Bank lending to Iran provides indirect support for Iran's 
nuclear and military programs in two ways. First, they contend 
that providing funding to Iran for development purposes frees 
up resources for military purposes because money is fungible. 
Second, they believe that World Bank lending to Iran provides 
implicit international credibility and access to outside 
experts. Others take the opposite position. They note that the 
scale of World Bank lending to Iran is minimal in relation to 
the country's economy and, therefore, that such lending cannot 
have a real impact on its military programs.

        OVERSIGHT OF THE EXPORT-IMPORT BANK OF THE UNITED STATES

    On Thursday, May 6, 2004, the Subcommittee on Domestic and 
International Monetary Policy, Trade, and Technology held a 
hearing entitled ``Oversight of the Export-Import Bank of the 
United States.'' The President and Chairman of the Export-
Import Bank was the only witness.
    As the first oversight hearing held since the 2002 
reauthorization act for the Export-Import Bank (the Bank), the 
focus of the hearing was on how the Bank has implemented the 
2002 authorization standards. Chairman Merrill also provided 
testimony regarding the Bank's work to promote reconstruction 
efforts in Iraq.

                  HIPC DEBT RELIEF: WHICH WAY FORWARD?

    On Tuesday, April 20, 2004, The Subcommittee on Domestic 
and International Monetary Policy, Trade, and Technology held a 
hearing entitled ``Highly Indebted Poor Country (HIPC) Debt 
Relief: The Way Forward?'' The hearing focused on the estimated 
costs of HIPC debtrelief, the impact the program has had on 
people in qualifying countries and the challenges the HIPC process 
faces if its program goals are to be achieved. The Subcommittee heard 
testimony from the General Accounting Office, and two nongovernmental 
organizations.
    In 1996 and again in 1999, major international creditors, 
including the World Bank and the IMF, agreed to a debt relief 
program for the world's poorest, most seriously indebted 
nations. The U.S. has pledged to provide a total of $750 
million to the HIPC Trust Fund, of which $600 million has 
already been contributed. At the July 2002 Group of Eight 
summit, the U.S. pledged to contribute the remaining $150 
million. In FY 2004, Congress appropriated $75 million to meet 
this pledge.
    The General Accounting Office examined the HIPC initiative 
at the Committee's request. GAO estimates received at the 
hearing indicate that the total cost of the HIPC initiative 
could be $37.3 billion (net present value). The GAO also 
provided detailed estimates for how much multilateral 
development banks might need in the future to meet HIPC debt 
relief commitments, and projected what percentage the U.S. 
might be expected to contribute to meet existing debt relief 
commitments and broader development goals (e.g., poverty 
reduction).

     U.S.-E.U. REGULATORY DIALOGUE: THE PRIVATE SECTOR PERSPECTIVE

    On Thursday, June 17, 2004, the Subcommittee on Domestic 
and International Monetary Policy, Trade, and Technology held a 
hearing entitled, ``The U.S.-EU Regulatory Dialogue: The 
Private Sector Perspective.'' The Subcommittee heard testimony 
from representatives of trade associations and academia. The 
hearing built on the May 2004 full Committee hearing on the 
U.S.-EU Regulatory Dialogue and focused on the benefits and 
challenges the Dialogue holds for the private sector, as well 
as ways in which the dialogue could be improved.

              COMBATING INTERNATIONAL TERRORIST FINANCING

    The Subcommittees on Domestic and International Monetary 
Policy, Trade, and Technology and on Oversight and 
Investigations held a joint hearing on Thursday, September 30, 
2004, on the status of efforts to combat international 
terrorist financing. The Assistant Secretary of the Treasury 
for Terrorist Financing and the Assistant Secretary of State 
for Economic and Business Affairs appeared as witnesses.
    The United States Departments of Treasury and State, in 
cooperation with other government agencies, have successfully 
solicited the support of the international community to help 
combat money laundering and terrorist financing. Witnesses 
highlighted the successful promotion of international standards 
for financial transparency and accountability; coordinated 
technical assistance to weak but willing states; ongoing 
freezing of terrorist-related and other criminal assets; 
continued coordination of intelligence operations; and using 
diplomacy to convince other governments to take significant 
steps.

   MONEY MATTERS: COIN AND CURRENCY DESIGN AND COUNTERFEITING ISSUES

    On Wednesday, April 28, 2004, the Subcommittee on Domestic 
and International Monetary Policy, Trade, and Technology held a 
hearing on the design of circulating coins and currency, and on 
issues involving the counterfeiting of U.S. bank notes. The 
hearing also served as a legislative hearing for H.R. 3916, the 
Presidential $1 Coin Act of 2004.
    The Subcommittee heard testimony from the Director of the 
United States Mint, the Director of the Bureau of Engraving and 
Printing, the United States Secret Service, the Board of 
Governors of the Federal Reserve System, as well as a number of 
private sector witnesses. Witnesses discussed design changes 
being made to circulating U.S. banknotes to foil 
counterfeiters, trends in counterfeiting domestically and 
abroad, the success of circulating and commemorative coin 
programs including the 50-State Quarter Program, and efforts to 
more efficiently circulate U.S. coins and bank notes. Witnesses 
also discussed the need for a widely circulating one-dollar 
coin to keep costs down for business and the reasons why recent 
one-dollar coins have not been successful.

                             Hearings Held

    The New Basel Accord--Sound Regulation or Crushing 
Complexity? Hearing entitled ``The New Basel Accord--Sound 
Regulation or Crushing Complexity.'' February 27, 2003. 
PRINTED, serial number 108-5.
    The Defense Production Act Reauthorization Act of 2003. 
Hearing on H.R. 1280, the Defense Production Act of 2003. March 
19, 2003. PRINTED, serial no. 108-13.
    Opening Trade in Financial Services--The Chile and 
Singapore Examples. Hearing entitled ``Opening Trade in 
Financial Services--The Chile and Singapore Examples.'' April 
1, 2003. PRINTED, serial no. 108-16.
    Matching Capital and Accountability. Hearing entitled 
``Matching Capital and Accountability.'' June 11, 2003. 
PRINTED, serial no. 108-36.
    China's Exchange Rate Regime and its Effects on the U.S. 
Economy. Hearing entitled ``China's Exchange Rate Regime and 
its Effects on the U.S. Economy.'' October 1, 2003. PRINTED, 
serial no. 108-56.
    World Bank Lending to Iran. Hearing entitled ``World Bank 
Lending to Iran.'' October 29, 2003. PRINTED, serial no. 108-
59.
    Commemorative Coin Bills. Hearing on H.R. 1914, the 
Jamestown 400th Anniversary Commemorative Coin Act of 2003, 
H.R. 2131, a bill to award a congressional gold medal to 
President Jose Maria Aznar of Spain, H.R. 2768, the John 
Marshall Commemorative Coin Act, and H.R. 3277, the Marine 
Corps 230th Anniversary Commemorative Coin Act. March 10, 2004. 
Serial no. 108-71.
    HIPC Debt Relief: Which Way Forward? Hearing entitled 
``HIPC Debt Relief: Which Way Forward?'' April 20, 2004. Serial 
no. 108-79.
    Money Matters: Coin and Currency Design and Counterfeiting 
Issues. Hearing entitled ``Money Matters: Coin and Currency 
Design and Counterfeiting Issues. April 28, 2004. Serial no. 
108-82.
    Oversight of the Export-Import Bank of the United States. 
Hearing entitled ``Oversight of the Export-Import Bank.'' May 
6, 2004. Serial no. 108-84.
    The U.S.-E.U. Regulatory Dialogue: The Private Sector 
Perspective. Hearing entitled ``The U.S.-E.U. Regulatory 
Dialogue: The Private Sector Perspective.'' June 17, 2004. 
Serial no. 108-95.
    Combating International Terrorist Financing. Joint hearing 
with the Subcommittee on Oversight and Investigations entitled 
``Combating International Terrorist Financing.'' September 30, 
2004. Serial no. 108-114.
       Subcommittee on Financial Institutions and Consumer Credit

          (Ratio: 25-22)

 SPENCER BACHUS, Alabama, Chairman

BERNARD SANDERS, Vermont *           STEVEN C. LaTOURETTE, Ohio
CAROLYN B. MALONEY, New York           Vice Chairman
MELVIN L. WATT, North Carolina       RICHARD H. BAKER, Louisiana
GARY L. ACKERMAN, New York           MICHAEL N. CASTLE, Delaware
BRAD SHERMAN, California             EDWARD R. ROYCE, California
GREGORY W. MEEKS, New York           FRANK D. LUCAS, Oklahoma
LUIS V. GUTIERREZ, Illinois          SUE W. KELLY, New York
DENNIS MOORE, Kansas                 PAUL E. GILLMOR, Ohio
PAUL E. KANJORSKI, Pennsylvania      JIM RYUN, Kansas
MAXINE WATERS, California \3\        WALTER B. JONES, North Carolina
DARLENE HOOLEY, Oregon               JUDY BIGGERT, Illinois
JULIA CARSON, Indiana                PATRICK J. TOOMEY, Pennsylvania
HAROLD E. FORD, Jr., Tennessee       VITO FOSSELLA, New York
RUBEN HINOJOSA, Texas                MELISSA A. HART, Pennsylvania
KEN LUCAS, Kentucky                  SHELLEY MOORE CAPITO, West 
JOSEPH CROWLEY, New York             Virginia
STEVE ISRAEL, New York               PATRICK J. TIBERI, Ohio
MIKE ROSS, Arkansas                  MARK R. KENNEDY, Minnesota
CAROLYN McCARTHY, New York           TOM FEENEY, Florida
ARTUR DAVIS, Alabama                 JEB HENSARLING, Texas
JOE BACA, California \3\             SCOTT GARRETT, New Jersey
CHRIS BELL, Texas \1\                TIM MURPHY, Pennsylvania
BARNEY FRANK, Massachusetts          GINNY BROWN-WAITE, Florida
  ex officio                         J. GRESHAM BARRETT, South Carolina
                                     RICK RENZI, Arizona
                                     (Vacancy)
                                     MICHAEL G. OXLEY, Ohio
                                       ex officio

* Mr. Sanders is an independent, but caucuses with the Democratic 
Caucus.

                         Legislative Activities


           FAIR AND ACCURATE CREDIT TRANSACTIONS ACT OF 2003

                Public Law 108-159 (H.R. 2622; S. 1753)

    To amend the Fair Credit Reporting Act, to prevent identity 
theft, improve resolution of consumer disputes, improve the 
accuracy of consumer records, make improvements in the use of, 
and consumer access to, credit information, and for other 
purposes.

Summary

    H.R. 2622, the Fair and Accurate Credit Transactions Act of 
2003, provides consumers with tools to fight identity theft and 
to ensure the accuracy of their credit reports while 
establishing permanent uniform national credit reporting 
standards. H.R. 2622 empowers consumers to guard against 
identity theft by increasing the effectiveness of consumer 
initiated fraud alerts and enabling consumers to block 
fraudulent information in their personal credit records after 
filing a police report. The legislation increases consumer 
awareness of their rights if they believe they may be victims 
of fraud or identity theft by directing the Federal Trade 
Commission (FTC or Commission) to prepare, and consumer 
reporting agencies to disseminate, a summary of rights of 
identity theft victims. The legislation enlists financial 
institutions' support in fighting identity theft by requiring 
them to develop procedures to ``red flag'' identity theft, and 
to investigate certain changes in customer addresses. In 
addition, merchants will be required to truncate credit and 
debit card information.
    H.R. 2622 also improves the accuracy of consumer records 
and the resolution of consumer disputes. The legislation 
expands consumer access to credit information to ensure 
accuracy by giving consumers the right to review their credit 
scores and request a free credit report annually. H.R. 2622 
provides consumers with important new rights for correcting 
inaccurate information on their credit reports and discourages 
the reintroduction of fraudulent information into the credit 
reporting system. The legislation prohibits furnishers of 
information from forwarding information on a consumer to credit 
reporting agencies if the furnisher has reasonable cause to 
believe the information is inaccurate. In addition, the bill 
directs regulators to determine how best to ensure the prompt 
investigation and correction of disputed information in a 
consumer's credit file. H.R. 2622 also provides significant new 
protections of consumers' medical information by limiting the 
disclosure of certain medical information in the preparation 
and dissemination of credit reports, prohibiting the use of 
medical information in connection with any determination of 
consumers' eligibility for credit, and requiring credit 
reporting agencies to code certain sensitive medical 
information to avoid unwanted disclosure.

Legislative History

    H.R. 2622 was introduced on June 26, 2003, by Mr. Bachus 
and 32 original cosponsors and referred to the Committee on 
Financial Services. On July 2, 2003, H.R. 2622 was referred to 
the Subcommittee on Financial Institutions and Consumer Credit.
    On July 9, 2003, the full Committee held a hearing on H.R. 
2622. On July 16, 2003, the Subcommittee on Financial 
Institutions and Consumer Credit met in open session and 
approved H.R. 2622 for full Committee consideration, as 
amended, by a record vote of 41 yeas and no nays.
    On July 24, 2003, the Committee on Financial Services met 
in open session and ordered H.R. 2622 favorably reported to the 
House, with an amendment, by a record vote of 63 yeas and 3 
nays. On September 4, 2003, the Committee reported H.R. 2622 to 
the House (H. Rept. 108-263). A supplemental report on H.R. 
2622 correcting certain Committee votes was filed with the 
House on September 9, 2003 (H. Rept. 108-263, Part II).
    On September 9, 2003, the Committee on Rules reported a 
modified open rule for the consideration of H.R. 2622 to the 
House (H. Res. 360). The House agreed to H. Res. 360 on 
September 10, 2003, by a voice vote. On September 10, 2003, the 
House considered and passed H.R. 2622, as amended, by a record 
vote of 392 yeas and 30 nays.
    The bill was received in the Senate, read twice, and 
referred to the Senate Committee on Banking, Housing, and Urban 
Affairs on September 11, 2003. On November 5, 2003, the Senate 
Committee on Banking, Housing, and Urban Affairs was discharged 
from the further consideration of H.R. 2622 by unanimous 
consent. The measure was laid before the Senate, amended with 
the text of S. 1753 as amended, and passed by a record vote of 
95 yeas and 2 nays. The Senate insisted on its amendment, 
requested a conference with the House, and appointed conferees 
on November 5, 2003.
    On November 6, 2003, the House disagreed to the Senate 
amendment and the Speaker appointed conferees from the 
Committee on Financial Services. A motion to instruct conferees 
offered by Mr. Frank was agreed to by a voice vote.
    The Conferees for the House and Senate met on November 21, 
2003 (the Senate chairing), and agreed to the conference report 
to accompany H.R. 2622. The conference report was filed in the 
House on November 21, 2003 (H. Rept. 108-396). On November 21, 
2003, the conference report was considered in the House under 
suspension of the rules, and agreed to by a record vote of 379 
yeas and 49 nays.
    On November 22, 2003, the Senate agreed to the conference 
report by unanimous consent, clearing the measure for the White 
House. The bill was presented to the President on December 3, 
2003, and signed by the President on December 4, 2003, becoming 
Public Law 108-159.

                CHECK CLEARING FOR THE 21ST CENTURY ACT

           Public Law 108-100 (H.R. 1474; S. 1334; H.R. 3183)

    To facilitate check truncation by authorizing substitute 
checks, to foster innovation in the check collection, improve 
the overall efficiency of the Nation's payments system, and for 
other purposes.

Summary

    H.R. 1474, the Check Clearing for the 21st Century Act, 
promotes greater efficiency in the overall payments system and 
reduces the system's reliance on the Nation's transportation 
grid. H.R. 1474 modernizes the check clearing process by 
removing legal impediments to electronic check processing. 
After the September 11, 2001, terrorist attacks, when the air 
traffic system was brought to a standstill for several days, 
the check collection process experienced significant 
disruptions.

Legislative History

    H.R. 1474 was introduced on March 27, 2003, by Ms. Hart and 
17 original cosponsors, and referred to the Committee on 
Financial Services. On April 8, 2003, the bill was referred to 
the Subcommittee on Financial Institutions and Consumer Credit. 
On April 8, 2003, the Subcommittee on Financial Institutions 
and Consumer Credit held a legislative hearing on H.R. 1474.
    On May 14, 2003, the Subcommittee on Financial Institutions 
and Consumer Credit met in open session and approved H.R. 1474, 
as amended, for full Committee consideration by a voice vote. 
On May 21, 2003, the Committee met in open session and ordered 
H.R. 1474 reported to the House, with an amendment, by a voice 
vote. The Committee on Financial Services reported H.R. 1474 to 
the House on June 2, 2003 (H. Rept. 108-132).
    On June, 3, 2003, the Committee on Rules reported a 
modified open rule providing for consideration of H.R. 1474 (H. 
Res. 256). On June 5, 2003, H. Res. 256 was agreed to by a 
voice vote. On the same date, the House considered and passed, 
as amended, H.R. 1474 by a record vote of 405 yeas and no nays. 
On June 5, 2003, H.R. 1474 was received in the Senate, read 
twice, and referred to the Senate Committee on Banking, Housing 
and Urban Affairs.
    On June 27, 2003, the Senate Committee on Banking, Housing, 
and Urban Affairs reported an original measure, S. 1334, ``The 
Check Truncation Act of 2003,'' to the Senate (S. Rept. 108-
79). On June 27, 2003, the Senate laid H.R. 1474 before the 
Senate by unanimous consent. The Senate struck the text of H.R. 
1474 and substituted the text of S. 1334. The Senate passed 
H.R. 1474 by unanimous consent.
    On July 10, 2003, the House disagreed with the Senate 
amendment to H.R. 1474 and requested a conference by unanimous 
consent. The Speaker appointed conferees from the Committee on 
Financial Services. On July 15, 2003, the Senate insisted on 
the Senate amendment, agreed to the conference requested by the 
House, and appointed conferees from the Committee on Banking, 
Housing, and Urban Affairs.
    On October 1, 2003, the Conferees for the House and Senate 
met (the House chairing) and agreed to the conference report to 
accompany H.R. 1474 with an amendment. The text of H.R. 3183, 
as introduced, was also included as section 19 of the 
conference report. The conference report was filed in the House 
(H. Rept. 108-291) on October 1, 2003.
    On October 8, 2003, the House considered the conference 
report to accompany H.R. 1474 pursuant to a unanimous consent 
agreement. The House then agreed to the conference report 
accompanying H.R. 1474 by a voice vote. On October 15, 2003, 
the Senate agreed to the conference report by unanimous 
consent, clearing the bill for the White House. The bill was 
presented to the President on October 23, 2003, and signed into 
law on October 28, 2003, becoming Public Law 108-100.

              FEDERAL DEPOSIT INSURANCE REFORM ACT OF 2003

                               (H.R. 522)

    To reform the Federal deposit insurance system, and for 
other purposes.

Summary

    H.R. 522, the Federal Deposit Insurance Reform Act of 2003, 
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 five 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. 522 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 
to 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. 
Dividends are provided to qualified insured depository 
institutions whenever specified reserve ratios 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. 522 was introduced in the House on February 4, 2003, 
by Mr. Bachus and 27 original cosponsors and referred to the 
Committee on Financial Services. On February 27, 2003, the bill 
was referred to the Subcommittee on Financial Institutions and 
Consumer Credit.
    The Committee on Financial Services held a legislative 
hearing on the bill on March 4, 2003. On March 13, 2003, the 
Committee on Financial Services met in open session and ordered 
the bill to be favorably reported to the House, with an 
amendment, by a voice vote. On March 27, 2003, the Committee on 
Financial Services reported H.R. 522 to the House (H. Rept. 
108-50).
    On April 2, 2003, the House considered H.R. 522 pursuant to 
a unanimous consent agreement, and passed the bill, as amended, 
by a record vote of 411 yeas and 11 nays. On April 2, 2003, 
H.R. 522 was received in the Senate, read twice, and referred 
to the Committee on Banking, Housing, and Urban Affairs.
    No further action was taken on this measure during the 
108th Congress.

                 BUSINESS CHECKING FREEDOM ACT OF 2003

                          (H.R. 758; H.R. 859)

    To allow all businesses to make up to 24 transfers each 
month from interest-bearing accounts, to require the payment of 
interest on reserves held for depository institutions at 
Federal Reserve banks, and for other purposes.

Summary

    H.R. 758, the Business Checking Freedom Act of 2003, 
permits the payment of interest on business checking accounts, 
increases the number of inter-account transfers which may be 
made from business accounts at depository institutions, and 
authorizes the Board of Governors of the Federal Reserve System 
to pay interest on reserves.
    The legislation repeals the current prohibition on the 
payment of interest on commercial demand deposit accounts after 
a two-year period, and authorizes the payment of interest on 
negotiable order of withdrawal (NOW) accounts maintained by 
businesses. The bill also authorizes the Federal Reserve to pay 
interest on the reserves that depository institutions maintain 
at Federal Reserve Banks, and eliminates the minimum statutory 
ratios that currently apply to those reserves, thereby giving 
the Federal Reserve greater flexibility in setting reserve 
requirements. To offset the revenue loss associated with 
allowing interest payments on reserve balances, the legislation 
requires that the Federal Reserve remit from its surplus fund 
to the Treasury an amount equal to the estimated annual revenue 
loss during the first five years the legislation is in effect. 
The legislation increases the number of allowable transfers 
from interest bearing or dividend earning commercial deposits 
or accounts to 24 per month, from the current limit of six, 
enabling depository institutions to sweep funds between non-
interest bearing commercial checking accounts and interest 
bearing accounts on a daily basis. Finally, the legislation 
directs the Board of Governors of the Federal Reserve System to 
conduct an annual survey of bank fees and services.

Legislative History

    H.R. 758 was introduced in the House on February 13, 2003, 
by Mrs. Kelly and four original cosponsors, and referred to the 
Committee on Financial Services. On March 5, 2003, the bill was 
referred to the Subcommittee on Financial Institutions and 
Consumer Credit.
    On March 5, 2003, the Subcommittee on Financial 
Institutions and Consumer Credit held a legislative hearing on 
H.R. 758 and H.R. 859. On March 13, 2003, the Subcommittee on 
Financial Institutions and Consumer Credit was discharged from 
the further consideration of the bill by unanimous consent and 
the Committee on Financial Services met in open session and 
ordered the bill reported, with an amendment, by a voice vote. 
The amendment approved by the Committee contained, in part, the 
language similar to H.R. 859. On March 31, 2003, the Committee 
on Financial Services reported H.R. 758 to the House (H. Rept. 
108-53).
    On April 1, 2003, the House considered H.R. 758 under 
suspension of the rules, and passed the bill, as amended, by a 
voice vote. The bill was received in the Senate, read twice, 
and referred to the Senate Committee on Banking, Housing, and 
Urban Affairs on April 2, 2003.
    The text of H.R. 758, as passed by the House, was also 
included in H.R. 1375, the Financial Services Regulatory Relief 
Act, which passed the House on March 22, 2004. For further 
action, see the entry for H.R. 1375.

            FINANCIAL SERVICES REGULATORY RELIEF ACT OF 2004

                          (H.R. 1375; S. 1947)

    To provide regulatory relief and improve productivity for 
insured depository institutions, and for other purposes.

Summary

    H.R. 1375, the Financial Services Regulatory Relief Act of 
2004, is intended to alter or eliminate statutory banking 
provisions in order to reduce the regulatory compliance burden 
on insured depository institutions and improve their 
productivity, as well as to make needed technical corrections 
to current statutes. H.R. 1375 is also intended to 
counterbalance the additional regulatory burden placed on 
insured depository institutions in the USA PATRIOT Act (Public 
Law 107-56) to focus their compliance efforts on combating 
money laundering and terrorist financing.
    For banks, H.R. 1375: (1) removes the prohibition on 
national and State banks from expanding across State lines by 
opening branches; (2) allows the use of subordinated debt 
instruments to meet eligibility requirements for national banks 
to benefit from Subchapter S tax treatment; (3) eliminates 
unnecessary and costly reporting requirements on banks 
regarding lending to bank officials; (4) changes the exemption 
from the prohibition on management interlocks for banks in 
metropolitan statistical areas from $20 million in assets to 
$100 million; and (5) streamlines bank merger application 
requirements.
    For savings associations, the bill: (1) removes lending 
limits on small business and auto loans and increases the limit 
on other business loans; (2) gives these institutions parity 
with banks with respect to broker-dealer and investment adviser 
SEC registration requirements; (3) allows Federal thrifts to 
merge with one or more of their non-thrift subsidiaries or 
affiliates, the same as national banks; (4)permits investment 
in service companies without regard to geographic restrictions; and (5) 
gives thrifts the same authority as national and State banks to make 
investments primarily designed to promote community development.
    For credit unions, the bill: (1) expands the investment 
authority of Federal credit unions; (2) increases the general 
limit on the term of Federal credit union loans from 12 to 15 
years; (3) increases the limit on investment by Federal credit 
unions in credit union service organizations from one percent 
to three percent of shares and earnings; (4) permits privately 
insured credit unions to be eligible to join a Federal Home 
Loan Bank; and (5) eases restrictions on voluntary mergers 
between healthy credit unions.
    For Federal financial regulatory agencies, the bill 
includes these provisions: (1) provides agencies the discretion 
to adjust the examination cycle for insured depository 
institutions to use agency resources in the most efficient 
manner; (2) allows the agencies to share confidential 
supervisory information concerning an examined institution; (3) 
modernizes agency recordkeeping requirements to allow use of 
optically imaged or computer scanned images; (4) clarifies that 
agencies may suspend or prohibit individuals charged with 
certain crimes from participation in the affairs of any 
depository institution and not only the institution with which 
the individual is associated; and (5) strengthens agency 
enforcement of written agreements when an institution-
affiliated party or controlling shareholder agrees to provide 
capital to the depository institution.

Legislative History

    H.R. 1375 was introduced in the House by Mrs. Capito on 
March 20, 2003, with three original cosponsors, and referred to 
the Committee on Financial Services. On March 27, 2003, the 
bill was referred to the Subcommittee on Financial Institutions 
and Consumer Credit.
    On March 27, 2003, the Subcommittee on Financial 
Institutions and Consumer Credit held a legislative hearing on 
H.R. 1375. On April 9, 2003, the Subcommittee on Financial 
Institutions and Consumer Credit met in open session and 
approved H.R. 1375 for full Committee consideration, as 
amended, by a voice vote. On May 21, 2003, the Committee on 
Financial Services met in open session and ordered the bill 
reported to the House, with an amendment, by a voice vote. On 
June 12, 2003, the Committee on Financial Services reported 
H.R. 1375 to the House, with an amendment (H. Rept. 108-152, 
Part I).
    On June 12, 2003, H.R. 1375 was sequentially referred to 
the Committee on the Judiciary through July 14, 2003. On July 
14, 2003, the Committee on the Judiciary reported H.R. 1375 to 
the House (H. Rept. 108-152, Part II).
    On March 16, 2004, the Committee on Financial Services 
filed a supplemental report on H.R. 1375 correcting certain 
Committee votes (H. Rept. 108-152, Part III). On March 17, 
2004, the Committee on Rules reported a modified closed rule 
for the consideration of H.R. 1375 (H. Res. 566). On March 18, 
2004, H. Res. 566 was agreed to by a voice vote. On the same 
date, the House considered and passed H.R. 1375, as amended, by 
a record vote of 392 yeas and 25 nays. On March 22, 2004, H.R. 
1375 was received in the Senate, read twice, and referred to 
the Committee on Banking, Housing, and Urban Affairs.
    No further action was taken on this measure in the 108th 
Congress.
    On November 24, 2003, Senator Leahy introduced S. 1947, the 
Preserving Independence of Financial Institution Examinations 
Act of 2003, which contained provisions substantially similar 
to section 613 of H.R. 1375, as reported by the Committee on 
Financial Services. S. 1947 was passed by the Senate by 
unanimous consent on November 24, 2003, and received in the 
House on November 25, 2003, where it was referred to the 
Committee on the Judiciary. On December 8, 2003, the Committee 
on the Judiciary was discharged from further consideration of 
S. 1947, and the bill was considered by the House by unanimous 
consent. The bill passed the House without objection, clearing 
it for the White House. The bill was presented to the President 
on December 11, 2003, and signed into law on December 19, 2003, 
becoming Public Law 108-198.

UNITED STATES FINANCIAL POLICY COMMITTEE FOR FAIR CAPITAL STANDARDS ACT

                              (H.R. 2043)

    To establish a mechanism for developing uniform United 
States positions on issues before the Basel Committee on 
Banking Supervision at the Bank for International Settlements 
(BIS), to require a review of the most recent recommendation of 
the Basel Committee for an accord on capital standards, and for 
other purposes.

Summary

    H.R. 2043, the United States Financial Policy Committee for 
Fair Capital Standards Act, establishes an inter-agency 
financial policy committee among the Federal financial 
regulators, chaired by the Secretary of the Treasury. This 
committee is charged with establishing a unified position of 
the United States prior to entering into negotiations in the 
Basel Committee on Banking Supervision at the BIS. The 
financial policy committee must report its positions to 
Congress prior to entering into negotiations at the BIS.

Legislative History

    H.R. 2043 was introduced in the House by Mr. Bachus and 
three original cosponsors on May 9, 2003, and was referred to 
the Committee on Financial Services. On May 23, 2003, the bill 
was referred to the Subcommittee on Financial Institutions and 
Consumer Credit. On July 16, 2003, the Subcommittee met in open 
session and approvedH.R. 2043, as amended, for full Committee 
consideration by a record vote of 42 yeas and no nays.
    No further action was taken on this measure in the 108th 
Congress.

                          Oversight Activities


                       FAIR CREDIT REPORTING ACT

    In connection with the Committee's comprehensive review of 
the expiring uniform national standards contained in the Fair 
Credit Reporting Act (FCRA)--which culminated in the enactment 
of the Fair and Accurate Credit Transactions Act (Public Law 
108-159)--the Subcommittee on Financial Institutions and 
Consumer Credit held a series of oversight hearings on the 
national credit reporting system during the first session of 
the 108th Congress. The hearings covered a wide variety of 
subjects, and featured testimony from upwards of 100 witnesses 
representing a broad range of Federal and State government 
agencies, financial services providers, and consumer groups. In 
addition to highlighting the importance of uniform national 
standards to the availability of affordable consumer credit in 
the United States, the hearings focused on solutions to the 
growing crime of identity theft, in which a perpetrator assumes 
the identity of a victim in order to obtain financial products 
and services in the victim's name.
    On May 8, 2003, the Subcommittee on Financial Institutions 
and Consumer Credit held a hearing entitled ``The Importance of 
the National Credit Reporting System to Consumers and the U.S. 
Economy.'' The Subcommittee reviewed the economic benefits of a 
national credit reporting system and current consumer 
protections under the FCRA, as well as the importance of a 
uniform national credit system to the retail operations of 
commercial users and furnishers of credit reporting data.
    On June 4, 2003, the Subcommittee on Financial Institutions 
and Consumer Credit held a hearing entitled ``Fair Credit 
Reporting Act: How it Functions for Consumers and the 
Economy.'' Among the topics covered at this hearing were the 
role of the States in enforcing the FCRA; how credit reports, 
credit scores, and prescreened information are used by the 
lending, mortgage, consumer finance, insurance, and non-
financial industries; the accuracy of credit reports; and the 
role of national uniform standards in improving markets for 
consumers, including how such uniformity affects the 
availability, affordability, and timeliness of financial 
products and services.
    On June 12, 2003, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled ``The 
Role of FCRA in the Credit Granting Process.'' The hearing 
examined the use of credit reports in the mortgage lending 
process as well as in other forms of consumer lending, 
including credit cards and bank loans.
    On June 17, 2003, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled ``The 
Role of FCRA in Employee Background Checks and the Collection 
of Medical Information.'' The Subcommittee examined the role of 
the FCRA in employee background checks and investigations of 
employee misconduct, as well as in the collection and use of 
medical information by financial services firms. Much of the 
testimony at this hearing focused on the ill effects of a 1999 
Federal Trade Commission staff opinion letter that had the 
unintended consequence of deterring employers from using 
outside firms to investigate allegations of workplace 
misconduct, including racial discrimination and sexual 
harassment claims.
    On June 24, 2003, the Subcommittee on Financial 
Institutions and Consumer Credit held its final hearing on the 
FCRA, entitled ``Fighting Identity Theft--The Role of FCRA.'' 
The hearing highlighted current enforcement efforts to 
apprehend and prosecute identity thieves, the experiences of 
consumers victimized by identity theft, and innovative private 
sector efforts to prevent identity theft and assist victims.

             FIGHTING FRAUD: IMPROVING INFORMATION SECURITY

    On April 3, 2003, the Subcommittees on Oversight and 
Investigations and Financial Institutions and Consumer Credit 
held a joint hearing entitled ``Fighting Fraud: Improving 
Information Security'' to examine three specific cases in which 
breaches of data security or failures of internal controls 
resulted in the inadvertent disclosure of consumers' personal 
financial information. The hearing focused on strategies for 
coordinating the efforts of credit issuers, third-party vendors 
that process transactions, credit bureaus, and law enforcement 
agencies in limiting harm to consumers when data security is 
breached. Witnesses testifying at the hearing included 
representatives of the Federal Bureau of Investigation, the 
U.S. Secret Service, and the Federal Trade Commission, as well 
as industry and consumer groups.

           FINANCING EMPLOYEE OWNERSHIP PROGRAMS: AN OVERVIEW

    On June 10, 2003, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled 
``Financing Employee Ownership Programs: An Overview'' to 
examine proposals to provide commercial financial institutions 
incentives to finance employee buy-outs through the creation of 
Employee Stock Ownership Plans (ESOPS) or Eligible Worker Owned 
Cooperatives (EWOCs). The hearing explored the merits of 
creating a U.S. Employee Ownership Bank within theTreasury 
Department to provide loan guarantees, subordinated loans, technical 
assistance and education to employees who would like to buy their own 
companies by establishing an ESOP or EWOC. Witnesses at the hearing 
included representatives of ESOP trade associations, individuals who 
have participated in employee buy-outs, and experts in the field.

SERVING THE UNDERSERVED: INITIATIVES TO BROADEN ACCESS TO THE FINANCIAL 
                               MAINSTREAM

    On June 26, 2003, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled 
``Serving the Underserved: Initiatives to Broaden Access to the 
Financial Mainstream'' on initiatives to make financial 
products and services more accessible to the ``unbanked,'' 
those who have not historically taken advantage of such 
services. The hearing focused on innovative strategies in the 
public and private sectors for expanding access to mainstream 
financial services and promoting greater financial awareness. 
Among the issues addressed were the increasing use of 
international remittances and the growing acceptance of 
consular identification cards by banks and other financial 
institutions as a means of customer verification. Witnesses 
testifying at the hearing included officials from the Treasury 
Department and the National Credit Union Administration, as 
well as representatives of various financial institutions and a 
national non-profit self-help organization.

                            SUBPRIME LENDING

    The Subcommittees on Housing and Community Opportunity and 
Financial Institutions and Consumer Credit held three joint 
hearings on issues related to the topic of predatory lending.
    On November 5, 2003, the Subcommittee on Financial 
Institutions and Consumer Credit and the Subcommittee on 
Housing and Community Opportunity held a joint hearing entitled 
``Protecting Homeowners: Preventing Abusive Lending While 
Preserving Access to Credit'' on the subprime mortgage lending 
industry in the United States. The hearing focused on ways to 
eliminate abusive practices in the mortgage origination process 
and in the secondary mortgage market while preserving and 
promoting access to affordable credit for consumers. Witnesses 
testifying at the hearing included a State attorney general and 
representatives of various industry and consumer groups.
    On March 30, 2004, the Subcommittee on Housing and 
Community Opportunity and the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled 
``Subprime Lending: Defining the Market and its Consumers'' to 
examine the growing subprime mortgage lending industry in the 
United States, with a particular focus on the dynamics of this 
market and its ability to offer more customized mortgage 
products to meet customers' varying credit needs. In addition, 
the hearing focused on defining a typical subprime customer, 
and on the advantages and disadvantages that the subprime 
market poses to the financial security of these customers. 
Witnesses testifying at this hearing included leading experts 
in the field, as well as representatives from various consumer 
and industry groups.
    On June 23, 2004, the Subcommittees on Housing and 
Community Opportunity and Financial Institutions and Consumer 
Credit held a joint hearing entitled ``Promoting Homeownership 
by Ensuring Liquidity in the Subprime Mortgage Market'' to 
explore the role that the secondary mortgage market plays in 
providing liquidity to the subprime lending industry and 
creating homeownership opportunities for American consumers. 
Much of the testimony centered on the appropriate standard for 
assigning liability to secondary market participants. Witnesses 
testifying at this hearing included a representative of a State 
attorney general's office, various industry groups, a consumer 
group, and an expert in the field.

  CUTTING THROUGH RED TAPE: REGULATORY RELIEF FOR AMERICA'S COMMUNITY-
                              BASED BANKS

    On May 12, 2004, the Subcommittee on Financial Institutions 
and Consumer Credit held a hearing entitled ``Cutting Through 
Red Tape: Regulatory Relief for America's Community-Based 
Banks'' on how to strengthen and preserve the role that small 
banks serve in their communities, by reducing or eliminating 
the burdens imposed on those institutions by outdated or 
unnecessary regulatory requirements. The Financial Services 
Regulatory Relief Act (H.R. 1375), which passed the House of 
Representatives earlier in the year, was also discussed. 
Witnesses at the hearing included representatives of the 
Department of the Treasury, the Federal Deposit Insurance 
Corporation, the Conference of State Bank Supervisors, and 
industry and consumer groups.

                  CREDIT UNION REGULATORY IMPROVEMENTS

    On July 20, 2004, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled 
``Credit Union Regulatory Improvements'' to examine the 
regulatory challenges faced by federal and state-chartered 
credit unions. The hearing focused on the state of the credit 
union industry, and on specific legislative proposals to 
improve the regulatory environment in which credit unions 
operate. Witnesses at the hearing included representatives of 
the NationalCredit Union Administration, as well as industry 
and consumer groups.

          FINANCIAL SERVICES ISSUES: A CONSUMER'S PERSPECTIVE

    On September 15, 2004, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled 
``Financial Services Issues: A Consumer's Perspective'' to 
examine a broad range of consumer protection issues as 
requested by various Committee members throughout the year. 
Among the issues discussed were refund anticipation loans, 
credit and debit card interchange fees, overdraft protection, 
performance-based pricing and use of external delinquencies in 
the setting of credit card rates, ATM fraud, and financial 
literacy. Witnesses testifying at this hearing included 
representatives from industry and consumer groups.

                              BASEL ACCORD

    On June 22, 2004, the Subcommittee on Financial 
Institutions and Consumer Credit held an oversight hearing 
entitled, ``The New Basel Accord: Private Sector 
Perspectives.'' The Subcommittee has closely monitored the 
Basel II negotiations process and has been interested in the 
impact this agreement will have on financial institutions in 
the U.S., as well as competition in international markets. The 
Subcommittee heard testimony from bank executives representing 
large and small institutions that may be affected by the 
proposed Basel II Accord, as well as from a financial trade 
association.

                             Hearings Held

    The Business Checking Freedom Act of 2003. Legislative 
hearing on the Business Checking Freedom Act of 2003, H.R. 758 
and H.R. 859. March 5, 2003. PRINTED, serial no. 108-8.
    The Financial Services Regulatory Relief Act of 2003. 
Legislative hearing on H.R. 1375, the Financial Services 
Regulatory Relief Act of 2003. March 27, 2003. PRINTED, serial 
no. 108-15.
    Fighting Fraud: Improving Information Security. Joint 
hearing with the Subcommittee on Oversight and Investigations 
entitled ``Fighting Fraud: Improving Information Security.'' 
April 3, 2003. PRINTED, serial no. 108-19.
    Check Clearing for the 21st Century Act. Legislative 
hearing on H.R. 1474, the Check Clearing for the 21st Century 
Act. April 8, 2003. PRINTED, serial no. 108-20.
    The Importance of the National Credit Reporting System to 
Consumers and the U.S. Economy. Hearing entitled ``The 
Importance of the National Credit Reporting System to Consumers 
and the U.S. Economy.'' May 8, 2003. PRINTED, serial no. 108-
26.
    Fair Credit Reporting Act: How it Functions for Consumers 
and the Economy. Hearing entitled ``The Fair Credit Reporting 
Act: How it Functions for Consumers and the Economy.'' June 4, 
2003. PRINTED, serial no. 108-33.
    Financing Employee Ownership Programs: An Overview. Hearing 
entitled ``Financing Employee Ownership Programs: An 
Overview.'' June 10, 2003. PRINTED, serial no. 108-35.
    The Role of FCRA in the Credit Granting Process. Hearing 
entitled ``The Role of FCRA in the Credit Granting Process.'' 
June 12, 2003. PRINTED, serial no. 108-37.
    The Role of FCRA in Employee Background Checks and the 
Collection of Medical Information. Hearing entitled ``The Role 
of FCRA in Employee Background Checks and the Collection of 
Medical Information.'' June 17, 2003. PRINTED, serial no. 108-
38.
    The New Basel Accord--In Search of a Unified U.S. Position. 
Hearing entitled ``The New Basel Accord--In Search of a Unified 
U.S. Position.'' June 19, 2003. PRINTED, serial no. 108-40.
    Fighting Identity Theft--The Role of FCRA. Hearing entitled 
``Fighting Identity Theft--The Role of FCRA.'' June 24, 2003. 
PRINTED, serial no. 108-42.
    Serving the Underserved: Initiatives to Broaden Access to 
the Financial Mainstream. Hearing entitled ``Serving the 
Underserved: Initiatives to Broaden Access to the Financial 
Mainstream.'' June 26, 2003. PRINTED, serial no. 108-45.
    Protecting Homeowners: Preventing Abusive Lending While 
Preserving Access to Credit. Joint hearing with the 
Subcommittee on Housing and Community Opportunity entitled 
``Protecting Homeowners: Preventing Abusive Lending While 
Preserving Access to Credit.'' November 5, 2003. PRINTED, 
serial no. 108-62.
    Subprime Lending: Defining the Market and Its Customers. 
Joint hearing with the Subcommittee on Housing and Community 
Opportunity entitled ``Subprime Lending: Defining the Market 
and its Customers.'' March 30, 2004. PRINTED, serial no. 108-
76.
    Cutting Through the Red Tape: Regulatory Relief for 
America's Community-Based Banks. Hearing entitled ``Cutting 
Through the Red Tape: Regulatory Relief for America's 
Community-Based Banks.'' May 12, 2004. Serial no. 108-85.
    The New Basel Accord: Private Sector Perspectives. Hearing 
entitled ``The New Basel Accord: Private Sector Perspectives.'' 
June 22, 2004. Serial no. 108-96.
    Promoting Homeownership by Ensuring Liquidity in the 
Subprime Mortgage Market. Joint hearing with the Subcommittee 
on Housing and Community Opportunity entitled ``Promoting 
Homeownership by Ensuring Liquidity in the Subprime Mortgage 
Market.'' June 23, 2004. PRINTED, serial no. 108-97.
    Credit Union Regulatory Improvements. Hearing entitled 
``Credit Union Regulatory Improvements.'' July 20, 2004. Serial 
no. 108-103.
    Financial Services Issues: A Consumer's Perspective. 
Hearing entitled ``Financial Services Issues: A Consumer's 
Perspective.'' September 15, 2004. Serial no. 108-111.
           Subcommittee on Housing and Community Opportunity

          (Ratio: 14-12)

   ROBERT W. NEY, Ohio, Chairman

MAXINE WATERS, California            MARK GREEN, Wisconsin
NYDIA M. VELAZQUEZ, New York           Vice Chairman
JULIA CARSON, Indiana                RICHARD H. BAKER, Louisiana
BARBARA LEE, California              PETER T. KING, New York
MICHAEL E. CAPUANO, Massachusetts    WALTER B. JONES, Jr., North 
BERNARD SANDERS, Vermont*            Carolina
MELVIN L. WATT, North Carolina       DOUG OSE, California
WM. LACY CLAY, Missouri              PATRICK J. TOOMEY, Pennsylvania
STEPHEN F. LYNCH, Massachusetts      CHRISTOPHER SHAYS, Connecticut
BRAD MILLER, North Carolina          GARY G. MILLER, California
DAVID SCOTT, Georgia                 MELISSA A. HART, Pennsylvania
ARTUR DAVIS, Alabama                 PATRICK J. TIBERI, Ohio
BARNEY FRANK, Massachusetts          KATHERINE HARRIS, Florida
  ex officio                         RICK RENZI, Arizona
                                     (Vacancy)
                                     MICHAEL G. OXLEY, Ohio
                                       ex officio

Mr. Sanders is an independent, but caucuses with the Democratic Caucus.

                         Legislative Activities


                          TORNADO SHELTERS ACT

                      Public Law 108-146 (H.R. 23)

    To authorize communities to use community development block 
grant funds for construction of tornado-safe shelters in 
manufactured home parks.

Summary

    H.R. 23 authorizes as an eligible activity, funds from the 
Community Development Block Grant program to be used to 
construct or improve tornado-safe shelters located in 
manufactured housing parks. To be eligible shelters must: (1) 
be located in a neighborhood or park that has twenty or more 
units; (2) consists predominately of low-and moderate-income 
people; (3) be in an area where a tornado occurred within the 
current or three previous fiscal years; and (4) be located in a 
neighborhood or park that has a warning siren. Finally, each 
shelter must comply with HUD's standards for construction and 
safety, and be of sufficient size to accommodate all residents 
of the manufactured housing park at one time.

Legislative History

    H.R. 23, the Tornado Shelters Act, was introduced by Mr. 
Bachus on January 7, 2003, and referred to the Committee on 
Financial Services. The bill was referred to the Subcommittee 
on Housing and Community Opportunity on February 27, 2003.
    On May 7, 2003, the Subcommittee considered and approved 
H.R. 23 for full Committee consideration, as amended. On May 
21, 2003, the full Committee met in open session and ordered 
the bill to be reported with a favorable recommendation to the 
House, with an amendment, by a voice vote. On June 12, 2003, 
the Committee reported the bill to the House, with an amendment 
(H. Rept. 108-151).
    On July 21, 2003, the House considered the bill under 
suspension of the rules and passed the bill with and amendment 
by a voice vote. On July 22, 2003, H.R. 23 was received in the 
Senate, read twice, and referred to the Senate Committee on 
Banking, Housing, and Urban Affairs.
    On November 18, 2003, the Senate Committee on Banking, 
Housing, and Urban Affairs was discharged from the further 
consideration of the bill and the Senate passed the bill 
without amendment by unanimous consent.
    The bill was presented to the President on November 24, 
2003, and signed into law on December 3, 2003, becoming Public 
Law 108-146.

                 AMERICAN DREAM DOWNPAYMENT ACT OF 2003

Public Law 108-186 (S. 811; H.R. 1276; H.R. 1443; H.R. 1614; H.R. 1985; 
                      H.R. 2422; S. 381, S. 1714)

    To authorize the Secretary of HUD to make grants to 
participating jurisdictions for downpayment assistance to low-
income, first-time home buyers.

Summary

    H.R. 1276, the American Dream Downpayment Act, amends the 
Cranston-Gonzalez National Affordable Housing Act to authorize 
the Secretary of Housing and Urban Development to make grants 
to participating jurisdictions for downpayment assistance to 
low-income, first-time home buyers. The program will be 
administered under HUD's Home Investment Partnerships Program 
(HOME), an existing grant program that helps communities 
nationwide expand the supply of standard, affordable housing 
for low and very low income families.
    The legislation, as enacted, also included provisions 
similar to H.R. 1443, the Access to Affordable Mortgages Act, 
H.R. 1614, the HOPE VI Program Reauthorization and Small 
Community Mainstreet Rejuvenation and Housing Act of 2003, H.R. 
1985 and S. 1714, both entitledthe FHA Multifamily Loan Limit 
Adjustment Act of 2003, H.R. 2422, the Insular Areas Community 
Development Act, and S. 381, the Living Equitably: Grandparents Aiding 
Children and Youth Act of 2003. For descriptions of the provisions of 
those measures, see the entries for those bills.

Legislative History

    H.R. 1276, the American Dream Downpayment Act, was 
introduced on March 13, 2003, by Ms. Harris and 31 original 
cosponsors and referred to the Committee on Financial Services. 
The bill was referred to the Subcommittee on Housing and 
Community Opportunity on March 28, 2003.
    The Subcommittee held a legislative hearing on April 8, 
2003. On May 7, 2003, the Subcommittee met in open session and 
approved H.R. 1276 for full Committee consideration as amended. 
The full Committee met in open session on May 21, 2003, and 
ordered the bill favorably reported to the House, with an 
amendment, by a voice vote. On June 19, 2004, the Committee 
reported the bill to the House, with an amendment (H. Rept. 
108-164).
    On October 1, 2003, the House considered H.R. 1276 under 
suspension of the rules and passed the bill with an amendment 
by a voice vote. On October 2, 2003, this bill was received in 
the Senate, read twice, and referred to the Committee on 
Banking, Housing, and Urban Affairs.
    The Senate companion legislation, S. 811, was introduced on 
April 8, 2003, by Senator Allard, read twice, and referred to 
the Senate Committee on Banking, Housing, and Urban Affairs. 
The Senate Committee on Banking, Housing, and Urban Affairs 
ordered the bill favorably reported to the Senate with an 
amendment on October 15, 2003, although the bill was never 
reported.
    On November 24, 2003, the Senate Committee on Banking, 
Housing, and Urban Affairs was discharged from the further 
consideration of S. 811, and the Senate passed the bill with an 
amendment by unanimous consent. In addition to the provisions 
of the original bill, the amendment added provisions similar to 
H.R. 1443, the Access to Affordable Mortgages Act, H.R. 1614, 
the HOPE VI Program Reauthorization and Small Community 
Mainstreet Rejuvenation and Housing Act of 2003, H.R. 1985 and 
S. 1714, both entitled the FHA Multifamily Loan Limit 
Adjustment Act of 2003, H.R. 2422, the Insular Areas Community 
Development Act, and S. 381, the Living Equitably: Grandparents 
Aiding Children and Youth Act of 2003. This amendment was the 
result of negotiations between the House and Senate.
    On November 25, 2003, the House received S. 811 and the 
bill was held at the desk. The House passed the bill without 
further amendment by unanimous consent on December 8, 2003, 
clearing the bill for the White House.
    S. 811 was presented to the President on December 11, 2003, 
and signed into law on December 16, 2003, becoming Public Law 
108-186.

    HOPE VI PROGRAM REAUTHORIZATION AND SMALL COMMUNITY MAIN STREET 
                  REJUVENATION AND HOUSING ACT OF 2003

                 Public Law 108-186 (S. 811; H.R. 1614)

    To reauthorize the HOPE VI program for revitalization of 
severely distressed public housing and to provide financial 
assistance under such program for main street revitalization or 
redevelopment projects in smaller communities to support the 
development of affordable housing for low-income families in 
connection with such projects, and for other purposes.

Summary

    The HOPE VI Program Reauthorization and Small Community 
Mainstreet Rejuvenation and Housing Act of 2003, amends the 
United States Housing Act of 1937 to revise criteria for HOPE 
VI (urban revitalization demonstration program) grants, 
including addition of criteria regarding tenant displacement, 
existing tenant occupancy priority, and timeliness of project 
completion.
    The bill also revises the definition of ``severely 
distressed public housing'' to include: (1) buildings or 
projects that include very low-income elderly or non-elderly 
disabled persons; and (2) areas lacking sufficient affordable 
housing, transportation, supportive services, economic 
opportunity, schools, civic and religious institutions, and 
public services.
    In addition to reauthorizing the program through September 
30, 2005, the bill includes provisions to allow five percent of 
HOPE VI funds to assist smaller communities to provide 
affordable low-income housing in connection with main street 
revitalization or redevelopment projects. The legislation also 
authorizes main street grants (maximum $1 million per year) to 
smaller communities for affordable low-income housing in a 
commercial area in connection with an eligible project. The 
legislation requires that a project be focused on: (1) joint 
public-private revitalization or redevelopment of a historic or 
traditional commercial area; and (2) affordable housing rather 
than severely distressed public housing.
    For purposes of the legislation, the term ``smaller 
community'' is defined as a local government unit that: (1) has 
a population of under 30,000, and is without a public housing 
agency; or (2) has a public housing agency that administers 100 
or fewer public housing dwelling units; and the term 
``affordable housing'' is defined as rental or homeownership 
units that are made available for initial occupancy subject to 
the same income and occupant contribution rules as dwelling 
units in public housing projects assisted with HOPE VI grants.

Legislative History

    H.R. 1614, the HOPE VI Program Reauthorization and Small 
Community Mainstreet Rejuvenation and Housing Act of 2003, was 
introduced on April 3, 2003, by Mr. Leach and three original 
cosponsors and referred to the Committee on Financial Services. 
It was referred to the Subcommittee on Housing and Community 
Opportunity on May 7, 2003.
    The Subcommittee considered and approved the bill for full 
Committee consideration, as amended, on May 21, 2003, by a 
voice vote. On June 19, 2003, the full Committee met in open 
session and ordered H.R. 1614 favorably reported to the House, 
with an amendment, by a voice vote. The Committee reported H.R. 
1614 to the House, with an amendment, on June 19, 2003 (H. 
Rept. 108-165).
    While no further action was taken directly on this measure, 
provisions similar to those of H.R. 1614 were ultimately 
incorporated into S. 811, the American Dream Downpayment Act. 
For further action, see the entry for the American Dream 
Downpayment Act.

            FHA MUTIFAMILY LOAN LIMIT ADJUSTMENT ACT OF 2003

            Public Law 108-186 (S. 811; H.R. 1985; S. 1714)

    To amend the National Housing Act to increase the maximum 
mortgage amount limit for FHA-insured mortgages for multifamily 
housing located in high-cost areas.

Summary

    The legislation amends the National Housing Act to increase 
Federal Housing Administration (FHA) project-based loan limits 
in high-cost areas for: (1) rental housing; (2) cooperative 
housing; (3) rehabilitation and neighborhood conservation 
housing; (4) moderate income and displaced family housing; (5) 
housing for the elderly; and (6) condominiums. In addition, the 
bill increases: (1) ``amount per space'' rental housing 
mortgage limits; and (2) certain cooperative housing mortgage 
limits.

Legislative History

    H.R. 1985 was introduced by Mr. Gary G. Miller of 
California on May 6, 2003, with three original cosponsors and 
referred to the Committee on Financial Services. On May 6, 
2003, the bill was referred to the Subcommittee on Housing and 
Community Opportunity on May 23, 2003.
    On July 22, 2003, the Subcommittee held a legislative 
hearing, immediately after which the Subcommittee considered 
and approved the bill, as amended, for full Committee 
consideration by a voice vote. On July 23, 2003, the full 
Committee met in open session and ordered H.R. 1985 favorably 
reported to the House, with an amendment, by a voice vote. On 
September 3, 2003, the Committee reported this bill, with an 
amendment, to the House (H. Rept. 108-247).
    On October 7, 2003, the House considered the measure under 
suspension of the rules and passed the bill, with an amendment, 
by a voice vote. On October 14, 2003, this bill was received in 
the Senate, read twice, and referred to the Committee on 
Banking, Housing, and Urban Affairs.
    The Senate companion legislation, S. 1714, was introduced 
by Senator Corzine on October 3, 2003, read twice, and referred 
to the Senate Committee on Banking, Housing, and Urban Affairs.
    While no further action was taken directly on either of 
these measures, provisions similar to those of H.R. 1985 and S. 
1714 were ultimately incorporated into S. 811, the American 
Dream Downpayment Act. For further action, see the entry for 
the American Dream Downpayment Act.

                   ACCESS TO AFFORDABLE MORTGAGES ACT

                 Public Law 108-186 (S. 811; H.R. 1443)

    To amend section 251 of the National Housing Act to enable 
homebuyers to make use of the authority of the Secretary of 
Housing and Urban Development to insure hybrid adjustable rate 
mortgages.

Summary

    Currently, the Federal Housing Administration may insure a 
hybrid adjustable rate mortgage (ARM) if the initial interest 
rate remains fixed for at least the first three years of the 
mortgage. The annual adjustment of the rate may be no more than 
one percent. A hybrid adjustable rate mortgage has a fixed rate 
for a set period of time (such as one, three, five, or seven 
years), after which the rate will be adjusted every year. Under 
current law, the first adjustment to an FHA ARM can be more 
than one percent if the fixed term is more than five years.The 
adjusted rate cannot be more than five percentage points above the 
initial fixed rate. The bill would make a technical change from a five 
to three year fixed term threshold before an FHA ARM interest rate 
adjustment could be more than one percent. This change will allow the 
FHA to offer more flexible 5/1 hybrid ARMs.

Legislative History

    H.R. 1443, the Access to Affordable Mortgages Act, was 
introduced on March 26, 2003, by Mr. Calvert and three original 
cosponsors and referred to the House Financial Services 
Committee. On April 10, 2003, this bill was referred to the 
Subcommittee on Housing and Community Opportunity.
    While no action was taken directly on this legislation, 
provisions similar to those of H.R. 1443 were ultimately 
incorporated into S. 811, the American Dream Downpayment Act. 
For further action, see the entry for the American Dream 
Downpayment Act.

      CDBG/SECTION 108 LOAN GUARANTEE AUTHORITY FOR INSULAR AREAS

                 Public Law 108-186 (S. 811; H.R. 2422)

    To authorize the Secretary of Housing and Urban Development 
to guarantee community development loans to the insular areas.

Summary

    H.R. 2422 amends the Housing and Community Development Act 
of 1974 to make Guam, the Virgin Islands, American Samoa, and 
the Commonwealth of the Northern Mariana Islands (CNMI) 
eligible for community development loan guarantees by including 
them within the definition of ``eligible public entity.''
    However, the language that ultimately was included in 
Public Law 108-186 authorizes the CDBG allotments to Guam, 
American Samoa, the Virgin Islands, and the CNMI under section 
106 as opposed to section 107, as current law provides. The 
move to section 106 makes the CDBG funds to insular areas as 
certain as any other CDBG recipient, enabling HUD to estimate 
future CDBG receipts, whether purely on a population basis as 
is currently done or using a new formula based on additional 
census data. This allows insular areas to utilize funds under 
the section 108 loan guarantee program.
    In order to make funds available under section 108, HUD 
needs to ensure future repayment of the loans. The primary 
method is the loan recipient secures the loan on the basis of 
the stream of future CDBG receipts. If the funding is merely 
discretionary (as is the case under section 107), additional 
security is needed, as well as charging a higher interest rate 
to protect the investment. Since the two primary sources of 
income for insular areas are tourism and Federal funding, such 
as tax receipts and military base support, HUD is reluctant to 
make a section 108 loan commitment without future CDBG 
receipts.

Legislative History

    H.R. 2422 was introduced on June 11, 2003, by Ms. Bordallo 
and referred to the Committee on Financial Services. This bill 
was referred to the Subcommittee on Housing and Community 
Opportunity on June 23, 2003.
    While no action was taken directly on this legislation, 
provisions similar to those of H.R. 2422 were ultimately 
incorporated into S. 811, the American Dream Downpayment Act. 
For further action, see the entry for the American Dream 
Downpayment Act.

  GNMA AUTHORIZATION TO SECURITIZE RURAL HOUSING SERVICE MULTIFAMILY 
                                 LOANS

               Public Law 108-199 (H.R. 2673; H.R. 2740)

    To amend the National Housing Act to authorize the 
Government National Mortgage Association to guarantee 
securities backed by loans guaranteed by the Rural Housing 
Service under section 538 of the Housing Act of 1949.

Summary

    H.R. 2740, the Rural Multifamily Housing Loan Guarantee and 
Ginnie Mae Corrections Act, amends the National Housing Act to 
clarify that the Government National Mortgage Association 
(Ginnie Mae) may guarantee securities backed by loans insured 
or guaranteed by the Rural Housing Service under title V of the 
Housing Act of 1949. Current law refers only to loans insured 
under title V.

Legislative History

    H.R. 2740 was introduced by Mr. Bereuter and three original 
cosponsors on July 15, 2003, and referred to the Committee on 
Financial Services. The bill was referred to the Subcommittee 
on Housing and Community Opportunity on August 4, 2003.
    While no action was taken directly on the legislation, 
provisions similar to those in H.R. 2740 were included as 
section 774 of title VII of division A of H.R. 2673, the 
Consolidated Appropriations Act, 2004. The conference report to 
accompany H.R. 2673 was filed in the House on November 25, 2003 
(H. Rept. 108-401). The House agreed to the conference report 
on December 8, 2003, by a record vote of 242 yeasand 176 nays. 
The Senate began consideration of the conference report on December 9, 
2003, and invoked cloture on January 22, 2004, by a roll call vote of 
61 yeas and 32 nays. The Senate agreed to the conference report on 
January 22, 2004 by a roll call vote of 65 yeas and 28 nays.
    The bill was presented to the President on January 22, 
2004, and signed into law on January 23, 2004, becoming Public 
Law 108-199.

           ENERGY EFFICIENT HOUSING TECHNICAL CORRECTION ACT

                     Public Law 108-213 (H.R. 3724)

    To amend Section 220 of the National Housing Act to make a 
technical correction to restore allowable increases in the 
maximum mortgage limits for FHA-insured mortgages for 
multifamily housing projects to cover increased costs of 
installing a solar energy system or other residential energy 
conservation measures.

Summary

    Congress passed the FHA Downpayment Simplification Act in 
2002 which streamlined the downpayment process and increased 
the base mortgage limits for FHA-insured loans. This 
legislation restricted projects eligible for increased loan 
limits to those projects containing fewer than five units and 
incorporating improved energy efficient systems. As a result, 
housing projects with five or fewer units were permitted FHA 
insurance in amounts up to 20 percent higher than the standard 
limit for the purpose of making environmental improvements. 
H.R. 3724 makes a technical change to amend the National 
Housing Act by allowing the Secretary of HUD to increase FHA 
loan limits from the current 20 percent up to 30 percent, in 
order to account for the increased cost of a solar energy 
system or other residential energy conservation measures.

Legislative History

    H.R. 3724, the Energy Efficient Housing Technical 
Correction Act, was introduced by Mr. Shays on January 21, 
2004, and referred to the Committee on Financial Services.
    On February 3, 2004, H.R. 3724 was considered under 
suspension of the rules and passed the House by a voice vote. 
The bill was received in the Senate on February 4, 2004, read 
twice, and referred to the Senate Committee on Banking, 
Housing, and Urban Affairs. On March 12, 2004, the Senate 
Committee on Banking, Housing, and Urban Affairs was discharged 
from the further consideration of the bill and it was passed by 
the Senate by unanimous consent, clearing the bill for the 
White House. H.R. 3724 was presented to the President on March 
23, 2004, and signed into law on April 1, 2004, becoming Public 
Law 108-213.

     BUNNING-BEREUTER-BLUMENAUER FLOOD INSURANCE REFORM ACT OF 2004

                 Public Law 108-264 (H.R. 253, S. 2238)

    To amend the National Flood Insurance Act of 1968 to reduce 
losses to properties for which repetitive flood insurance claim 
payments have been made.

Summary

    The Flood Insurance Reform Act of 2004 requires those 
persons living in frequently-flooded areas to reduce their risk 
of flooding. In addition to reauthorizing the National Flood 
Insurance Program (NFIP) through September 30, 2008, the 
legislation addresses severe repetitive loss properties through 
a pilot program for mitigation of these properties. Under this 
legislation, the owner of a severe repetitive loss property is 
charged a rate closer to the actuarial level for a flood 
insurance policy if two conditions prevail. The first condition 
is that a property must be classified as a severe repetitive 
loss property, and the second condition is that the owner of 
the property must have refused a government-sponsored 
mitigation offer.
    Severe repetitive loss properties are defined in the 
legislation as properties for which four or more separate flood 
insurance claims payments have been made under the National 
Flood Insurance Program, with the amount of each of those 
claims exceeding $5,000, and with the cumulative amount of such 
claims payments exceeding $20,000; or for which two or more 
separate NFIP claims payments cumulatively exceed the value of 
the insured property.
    If an offer for mitigation under the pilot program (such as 
an elevation of the structure or a buy-out of the property) is 
refused and an appeal is unsuccessful, rates for severe 
repetitive loss properties will be increased by 50 percent. 
Properties will be subject to additional 50 percent increases 
for each subsequent flood event where claims payments exceed 
$1500.
    The legislation authorizes up to an additional $40 million 
for fiscal years 2004, 2005, 2006, 2007, and 2008 to be 
transferred from the National Flood Insurance Fund to the 
National Flood Mitigation Fund for severe repetitive loss 
properties for the pilot program and will remain available 
until expended.

Legislative History

    H.R. 253 was introduced by Mr. Bereuter on January 8, 2003 
with four original cosponsors and referred to the Committee on 
Financial Services. On February 27, 2003, the bill was referred 
to the Subcommittee on Housing and Community Opportunity.
    On July 23, 2003, the Subcommittee was discharged from the 
further consideration of the bill and the full Committee met in 
open session to consider the bill. The Committee ordered H.R. 
253 reported to the House with a favorable recommendation, with 
an amendment, by a voice vote. On September 5, 2003, the 
Committee reported the bill to the House with an amendment (H. 
Rept. 108-266).
    The House considered the bill under suspension of the rules 
on November 20, 2003, and passed H.R. 253, with an amendment, 
by a record vote of 352 yeas and 67 nays. On December 9, 2003, 
H.R. 253 was received in the Senate, read twice, and referred 
to the Senate Committee on Banking, Housing, and Urban Affairs.
    On March 25, 2004, S. 2238, the Bunning-Bereuter-Blumenauer 
Flood Insurance Reform Act of 2004 was introduced by Senator 
Bunning with five original cosponsors. It was read twice and 
referred to the Senate Committee on Banking, Housing, and Urban 
Affairs. On May 13, 2004, the bill was reported to the Senate 
as amended by the Senate Committee on Banking, Housing, and 
Urban Affairs with a written report (S. Rept. 108-262).
    The Senate passed S. 2238, with an amendment, by unanimous 
consent on June 15, 2004. On June 16, 2004, S. 2238 was 
received in the House. On June 21, 2004, the bill was 
considered under suspension of the rules and passed the House 
by a voice vote. Certain corrections were made to the 
enrollment of the bill pursuant to 
H. Con. Res. 458, which passed both the House and Senate by 
unanimous consent on June 21, 2004.
    On June 23, 2004, this legislation was presented to the 
President signed into law on June 30, 2004, becoming Public Law 
108-264.

              HELPING HANDS FOR HOMEOWNERSHIP ACT OF 2004

                     Public Law 108-285 (H.R. 4363)

    To facilitate self-help housing homeownership 
opportunities.

Summary

    H.R. 4363, the Helping Hands for Homeownership Act of 2004, 
makes a technical correction to the Housing Opportunity Program 
Extension Act of 1996 to allow families who receive homes from 
groups such as Habitat for Humanity (Habitat) and the Housing 
Assistance Council (HAC) to fulfill the ``sweat equity'' 
requirement for receiving Self-Help Homeownership Opportunity 
Program (SHOP) funds not only by helping to build their own 
homes, but also by helping to build other self-help homes in 
the community. H.R. 4363 will achieve this technical change by 
striking the word ``dwelling'' and replacing it with 
``dwellings'' in paragraph (1) of section 11(b) of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 
note). In addition, the legislation re-designates subsection 
(h) of section 502 of the National Housing Act of 1949 (42 
U.S.C. 1472(h)) as the ``Doug Bereuter Section 502 Single 
Family Housing Loan Guarantee Act.''

Legislative History

    H.R. 4363 was introduced by Mr. Green of Wisconsin on May 
13, 2004, and referred to the Committee on Financial Services. 
The Committee on Financial Services met in open session on June 
3, 2004, and ordered H.R. 4363 reported to the House with a 
favorable recommendation, with an amendment, by a voice vote. 
On June 16, 2004, the Committee reported the bill to the House, 
with an amendment (H. Rept. 108-546). On June 21, 2004, the 
House considered the measure under suspension of the rules and 
passed the bill, with an amendment, by a record vote of 368 
yeas and no nays.
    H.R. 4363 was received in the Senate on June 22, 2004, read 
twice, and referred to the Senate Committee on Banking, 
Housing, and Urban Affairs. On July 14, 2004, the Senate 
Committee on Banking, Housing, and Urban Affairs was discharged 
from the further consideration of the bill and the Senate 
passed H.R. 4363 by unanimous consent, clearing the measure for 
the White House. H.R. 4363 was presented to the President on 
June 22, 2004, and signed into law on August 2, 2004, becoming 
Public Law 108-285.

 PRESERVING THE ABILITY OF THE FHA TO INSURE MORTGAGES UNDER SECTIONS 
                         238 AND 519 OF THE NHA

                      Public Law 108-301 (S. 2712)

    To preserve the ability of the Federal Housing 
Administration to insure mortgages under sections 238 and 519 
of the National Housing Act.

Summary

    S. 2712 raises the limits on FHA insurance by an additional 
$4 billion for the General Insurance/Special Risk Insurance 
Fund for FY 2004, allowing the programs in that fund to 
continue to operate throughout the fiscal year. The increase in 
commitment authority will support vital single family insurance 
programs for reverse mortgagesfor the elderly, rehabilitation 
loans and condominiums, plus all of FHA's multifamily programs 
providing mortgage insurance for affordable rental housing.

Legislative History

    The bill was introduced in the Senate on July 21, 2004, by 
Senator Reed, read twice, and referred to the Senate Committee 
on Banking, Housing, and Urban Affairs. On July 22, 2004, the 
Senate Committee on Banking, Housing, and Urban Affairs was 
discharged from the further consideration of the bill and the 
Senate passed S. 2712 by unanimous consent.
    Also on July 22, 2004, the House passed the bill by 
unanimous consent, clearing S. 2712 for the White House. The 
bill was presented to the President on July 28, 2004, and 
signed into law on August 9, 2004, becoming Public Law 108-301.

      HOMEOWNERSHIP OPPORTUNITIES FOR NATIVE AMERICANS ACT OF 2004

                     Public Law 108-393 (H.R. 4471)

    To clarify the loan guarantee authority under title VI of 
the Native American Housing Assistance and Self-Determination 
Act of 1996.

Summary

    H.R. 4471, the Homeownership Opportunities for Native 
Americans Act of 2004, amends the Native American Housing 
Assistance and Self-Determination Act of 1996 (NAHASDA) to 
require Federal guarantees for tribal housing activities to 
guarantee repayment of 95 percent of the unpaid principal and 
interest due on the notes or other obligations.
    Under title VI of NAHASDA (25 U.S.C. 4191 et seq.), HUD 
guarantees, with tribal approval, obligations issued by tribes 
or tribally-designated housing entities (TDHEs) to finance 
eligible affordable housing activities and community 
development activities related to affordable housing. The 
program requires issuers to pledge current and future Indian 
Housing Block Grant (IHBG) appropriations to the repayment of 
the guaranteed obligations. During the previous Administration, 
the Title VI program was operated at a 95 percent loan 
guarantee level. In fact, several loans are currently pending 
based on the 95 percent loan guarantee level. However, OMB 
asserts, by authority of OMB Circular A-129, that loan 
guarantees cannot exceed 80 percent in all cases where there is 
not explicit statutory authority to exceed that level. The 
statute for the Title VI program is silent regarding the loan 
guarantee level. H.R. 4471 amends NAHASDA to provide explicit 
statutory authority for the Title VI program to continue to 
operate at a 95 percent loan guarantee level.

Legislative History

    H.R. 4471 was introduced by Mr. Renzi on June 1, 2004, and 
referred to the Committee on Financial Services. The Committee 
on Financial Services met in open session on June 3, 2004, and 
ordered H.R. 4471 favorably reported to the House, by a voice 
vote. The bill was reported to the House on June 17, 2004 (H. 
Rept. 108-550).
    On June 21, 2004, the House considered the bill under 
suspension of the rules and passed the bill by a voice vote. On 
June 22, 2004, the bill was received in the Senate, read twice, 
and referred to the Senate Committee on Indian Affairs with 
instructions that when the Committee reports, the bill be 
referred to the Committee on Banking, Housing, and Urban 
Affairs. On October 11, 2004, the Committee on Indian Affairs 
was discharged from the further consideration of the bill and 
the Senate passed H.R. 4471 without amendment by unanimous 
consent, clearing the bill for the White House.
    On October 19, 2004, the bill was presented to the 
President and signed into law on October 30, 2004, becoming 
Public Law 108-393.

    RECOGNIZING NATIONAL HOMEOWNERSHIP MONTH AND THE IMPORTANCE OF 
                   HOMEOWNERSHIP IN THE UNITED STATES

                             (H. Res. 658)

    Recognizing National Homeownership Month and the importance 
of homeownership in the United States.

Summary

    H. Res. 658 declares that the House: (1) supports the goals 
and ideals of National Homeownership Month (June 2004); and (2) 
recognizes the importance of homeownership in building strong 
communities and families in the United States.

Legislative History

    H. Res. 658 was introduced by Mr. Gary G. Miller of 
California on June 1, 2004, and referred to the Committee on 
Financial Services. On June 22, 2004, the House considered the 
measure under suspension of the rules and the resolution was 
agreed to by a record vote of 415 yeas and 2 nays.

                      ZERO DOWNPAYMENT ACT OF 2004

                              (H.R. 3755)

    To authorize the Secretary of Housing and Urban Development 
to insure zero-downpayment mortgages for one-unit residences.

Summary

    H.R. 3755 amends the National Housing Act to authorize the 
Secretary of Housing and Urban Development to insure zero-
downpayment mortgages for one-family residences. The Federal 
government would insure ``no downpayment'' home loans for 
first-time, credit-worthy buyers who lack the upfront cash. 
During consideration, the Committee added several provisions to 
protect both homebuyers and the Government from foreclosures. 
These safeguards included the following: a requirement 
establishing extensive counseling provisions, including pre-
application loan counseling; an option, exercised by the new 
homeowner, for foreclosure prevention counseling; and, full 
disclosure of the incremental costs of the loan.
    In addition, the Committee included language that requires 
HUD to use an automated underwriting system to evaluate 
potential homebuyers; to establish a process to monitor lenders 
to ensure that they meet the participation requirements; to 
allow HUD the flexibility to charge a mortgage insurance 
premium, up to 2.25 percent, paid at the time of origination or 
mortgage closing, as well as to assess an annual premium charge 
up to .55 percent. The up-front and annual mortgage insurance 
premiums are designed to offset any potential increased risk.
    In addition to these safeguards, the Committee included a 
performance trigger mechanism that would temporarily suspend 
the zero downpayment program when the overall claim rate to the 
FHA fund exceeds 3.5 percent. The claim rate is defined as the 
number of claims, or insurance actually paid due to a claim 
against the mortgage insurance premium, during the preceding 12 
months on FHA single family mortgages. To further ensure that 
Congress and the Administration are apprised of any performance 
trends generated by the new downpayment requirements, HUD would 
be required to provide an annual report on the success of the 
program.
    Moreover, the Committee imposed a program limitation on the 
number of loans that FHA could insure under the zero 
downpayment program to no more than 10 percent of the aggregate 
number of mortgages and loans insured by FHA in the preceding 
fiscal year; and finally, the Committee imposed a five-year 
sunset to provide time for an analysis of the FHA zero 
downpayment concept.

Legislative History

    H.R. 3755 was introduced by Mr. Tiberi with nine original 
cosponsors on February 3, 2004 and referred to the Committee on 
Financial Services. On February 5, 2004, the bill was referred 
to the Subcommittee on Housing and Community Opportunity.
    On March 24, 2004, the Subcommittee on Housing and 
Community Opportunity held a legislative hearing on the bill. 
On May 5, 2004, the Subcommittee on Housing and Community 
Opportunity met in open session and approved H.R. 3755 for full 
Committee consideration, as amended, by a voice vote.
    On June 3, 2004, the Committee on Financial Services met in 
open session and ordered H.R. 3755 favorably reported to the 
House, with an amendment, by a voice vote. The bill was 
reported to the House, with an amendment, on October 6, 2004 
(H. Rept. 108-748).
    No further action was taken on this measure in the 108th 
Congress.

                   SMALL PUBLIC HOUSING AUTHORITY ACT

                               (H.R. 27)

    To amend the United States Housing Act of 1937 to exempt 
small public housing agencies (PHAs) from the requirement of 
preparing an annual public housing agency plan.

Summary

    The Public Housing Reform Act requires PHAs to submit both 
a five-year plan and an annual plan to HUD. The five-year PHA 
plan addresses the agency's mission and its plan to achieve its 
mission. The annual plan requires PHAs to provide details about 
any updates or changes to the five-year plan. H.R. 27 amends 
the United States Housing Act of 1937 to exempt a small public 
housing agency from the requirement to prepare an annual public 
agency plan if the agency: (1) administers no more than a total 
of 100 dwelling units and section 8 vouchers; (2) is not a 
troubled agency; and (3) provides assurances of public housing 
resident participation.

Legislative History

    H.R. 27 was introduced by Mr. Bereuter on January 7, 2003, 
and referred to the Committee on Financial Services. It was 
referred to the Subcommittee on Housing and Community 
Opportunity on February 27, 2003.
    On March 17, 2004, the Subcommittee on Housing and 
Community Opportunity was discharged from the further 
consideration of the bill, and the full Committee on Financial 
Services met in open session thesame day and ordered H.R. 27 
favorably reported to the House, with an amendment, by a voice vote. On 
April 2, 2004, the Committee reported the bill to the House (H. Rept. 
108-458).
    On May 5, 2004, the House considered the measure under 
suspension of the rules and passed the bill, with an amendment, 
by a voice vote.
    H.R. 27 was received in the Senate on May 6, 2004. It was 
read twice and referred to the Committee on Banking, Housing, 
and Urban Affairs.
    No further action was taken on this measure in the 108th 
Congress.

                    SAMARITAN INITIATIVE ACT OF 2004

                              (H.R. 4057)

    To establish a grant program administered under an 
agreement among the Secretaries of Housing and Urban 
Development, Health and Human Services, and Veterans Affairs, 
in consultation with the U.S. Interagency Council on 
Homelessness, to address the goal of ending chronic 
homelessness through coordinated provision of housing, health 
care, mental health and substance abuse treatment, supportive 
and other services, including assistance in accessing non-
homeless specific benefits and services, and for other 
purposes.

Summary

    H.R. 4057, the Samaritan Initiative Act of 2004, amends the 
McKinney-Vento Homeless Assistance Act to establish a program 
through the Department of Housing and Urban Development under 
which a participating Federal agency will make grants to 
eligible entities, including faith-based and community-based 
organizations, for permanent housing (provision of housing or 
rental assistance) and related treatment (including health and 
drug and alcohol treatment) and support services for the 
chronically homeless.
    The bill requires: (1) a participating Federal agency to 
establish an interagency implementation and monitoring team; 
and (2) a grantee to establish a homeless management 
information system.
    Finally, the bill authorizes appropriations for: (1) HUD; 
(2) the Department of Health and Human Services; and (3) the 
Department of Veterans Affairs. Finally, the bill authorizes 
the participation of other Federal agencies.

Legislative History

    H.R. 4057, the Samaritan Initiative Act of 2004, was 
introduced on March 30, 2004, by Mr. Renzi and 11 original 
cosponsors and referred to the Committee on Financial Services. 
On April 20, 2004, the bill was referred to the Subcommittee on 
Housing and Community Opportunity.
    On July 13, 2004, the Subcommittee on Housing and Community 
Opportunity held a legislative hearing on the bill.
    No further action was taken on this measure in the 108th 
Congress.

                          Oversight Activities


                            HUD RESPA REFORM

    The Subcommittee on Housing and Community Opportunity held 
a hearing on Tuesday, February 25, 2003, entitled ``Simplifying 
the Home Buying Process: HUD's Proposal to Reform RESPA.'' This 
hearing was a follow-up to the full Committee hearing held in 
the 107th Congress regarding the Administration's proposed rule 
to reform the Real Estate Settlement Procedures Act (RESPA). At 
the hearing, the Subcommittee heard testimony from private 
sector firms and trade associations.

                      FAITH-BASED HOUSING PROGRAMS

    The Subcommittee on Housing and Community Opportunity held 
a two-day hearing on March 25 and April 28, 2003, entitled 
``Strengthening America's Communities: Examining the Impact of 
Faith-Based Housing Partnerships''. The focus of the hearing 
was the potential impact of HUD's proposed rule that 
incorporates Executive Order No. 13279 issued on December 12, 
2003, into eight Community Planning and Development programs.
    Over the two days, the Subcommittee heard testimony from 
representatives of faith-based groups, academics, and the 
Department of Housing and Urban Development.

                    NATIONAL FLOOD INSURANCE PROGRAM

    The Subcommittee on Housing and Community Opportunity held 
an oversight hearing on Tuesday, April 1, 2003, entitled ``The 
National Flood Insurance Program: Review and Reauthorization.'' 
The National Flood Insurance Program (NFIP) was created as part 
of the National Flood Insurance Act of 1968.
    During its hearing, the Subcommittee heard testimony from 
Members of Congress, representatives from the Department of 
Homeland Security, and groups representing insurers, lenders, 
and State floodplain managers.

                            HOPE VI PROGRAM

    On April 29, 2003, the Subcommittee on Housing and 
Community Opportunity held a hearing entitled ``Strengthening 
and Rejuvenating our Nation's Communities and the HOPE VI 
Program.'' The focus of the hearing was suggested improvements 
in the HOPE VI program.
    The Subcommittee heard testimony from representatives from 
HUD, community groups, public housing authorities, academics, 
lenders, and other interested parties.

                       SECTION 8 VOUCHER PROGRAM

    The Subcommittee on Housing and Community Opportunity held 
a series of hearings entitled, ``The Section 8 Housing 
Assistance Program: Promoting Decent Affordable Housing for 
Families and Individuals that Rent'' during the first session 
of the 108th Congress. In all, the Subcommittee held six days 
of hearings, three in Washington on May 22, June 10, and June 
19, 2003; and three field hearings, in Los Angeles, California 
on June 30 and July 1, 2003 and Columbus, Ohio, on July 29, 
2003.
    Over those six days, the Subcommittee heard testimony from 
representatives from HUD, individual tenants and tenant 
associations, local housing authorities, and property 
management firms.

                        RURAL HOUSING IN AMERICA

    On June 19 and July 8, 2003, the Subcommittee on Housing 
and Community Opportunity held two days of hearings entitled 
``Rural Housing in America.'' The Financial Services Committee 
has jurisdiction over the rural housing programs under the 
Rural Housing Service (RHS) in the Department of Agriculture.
    The hearings were designed to begin the process of an 
extensive review of the various rural housing programs under 
the RHS to determine what changes, if any, were necessary to 
make the programs more efficient, cost effective and better 
able to meet the needs of low and moderate families in rural 
areas.
    The Subcommittee heard testimony from the Department of 
Agriculture, its Inspector General, the General Accounting 
Office, a variety of rural housing groups, lenders, and other 
interested parties.

                            SUBPRIME LENDING

    The Subcommittees on Housing and Community Opportunity and 
Financial Institutions and Consumer Credit held three joint 
hearings on issues related to the topic of predatory lending.
    On November 5, 2003, the Subcommittees on Financial 
Institutions and Consumer Credit and Housing and Community 
Opportunity held a joint hearing entitled ``Protecting 
Homeowners: Preventing Abusive Lending While Preserving Access 
to Credit'' on the subprime mortgage lending industry in the 
United States. The hearing focused on ways to eliminate abusive 
practices in the mortgage origination process and in the 
secondary mortgage market while preserving and promoting access 
to affordable credit for consumers. Witnesses testifying at the 
hearing included a State attorney general and representatives 
of various industry and consumer groups.
    On March 30, 2004, the Subcommittee on Housing and 
Community Opportunity and the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled 
``Subprime Lending: Defining the Market and its Consumers'' to 
examine the growing subprime mortgage lending industry in the 
United States, with a particular focus on the dynamics of this 
market and its ability to offer more customized mortgage 
products to meet customers' varying credit needs. In addition, 
the hearing focused on defining a typical subprime customer, 
and on the advantages and disadvantages that the subprime 
market poses to the financial security of these customers. 
Witnesses testifying at this hearing included leading experts 
in the field, as well as representatives from various consumer 
and industry groups.
    On June 23, 2004, the Subcommittees on Housing and 
Community Opportunity and Financial Institutions and Consumer 
Credit held a joint hearing entitled ``Promoting Homeownership 
by Ensuring Liquidity in the Subprime Mortgage Market'' to 
explore the role that the secondary mortgage market plays in 
providing liquidity to the subprime lending industry and 
creating homeownership opportunities for American consumers. 
Much of the testimony centered on the appropriate standard for 
assigning liability to secondary market participants. Witnesses 
testifying at this hearing included a representative of a State 
attorney general's office, various industry groups, a consumer 
group, and an expert in the field.

                     NATIVE AMERICAN HOUSING ISSUES

    The Subcommittee on Housing and Community Opportunity held 
a field hearing in Tuba City, Arizona on May 3, 2004, entitled, 
``Improving Housing Opportunities for Native Americans.'' The 
hearing dealt with many of the chronic housing affordability 
problems Native Americans are experiencing today.
    Witnesses included representatives from the U.S. Department 
of Housing and Urban Development, U.S. Department of 
Agriculture'sOffice of Rural Development, tribal 
representatives, and members of the lending community active in Native 
American housing issues.

                   FINANCIAL LITERACY AND COUNSELING

    In an effort to further understand the importance of 
housing counseling to the home buying public, the Subcommittee 
on Housing and Community Opportunity held a hearing entitled 
``Successful Homeownership and Renting through Housing 
Counseling'' on March 18, 2004. The focus of the hearing was on 
the importance of housing counseling and specifically on H.R. 
3938, Expanding Housing Opportunities through Education and 
Counseling.
    The Subcommittee heard testimony from representatives of 
HUD, housing authorities, community groups, and other 
interested parties.

        MORTGAGE FRAUD AND ITS IMPACT ON FINANCIAL INSTITUTIONS

    On October 7, 2004, the Subcommittee on Housing and 
Community Opportunity held a hearing entitled, ``Mortgage Fraud 
and its Impact on Mortgage Lenders.'' The focus of the hearing 
was on mortgage fraud and its impact on the lender and 
ultimately the market and was held in the aftermath of 
``Operation Continued Action,'' an operation by the Federal 
Bureau of Investigation (FBI) against 205 individuals in the 
largest nationwide operation in FBI history directed at 
organized groups and individuals engaged in mortgage fraud.
    The Subcommittee heard testimony from HUD and its Inspector 
General, representatives from the FBI, and other interested 
parties.

                    LOW-INCOME HOUSING PRESERVATION

    On July 20, 2004, the Subcommittee on Housing and Community 
Opportunity held a hearing on a GAO report entitled 
``Multifamily Housing: More Accessible HUD Data Could Help 
Efforts to Preserve Housing for Low-Income Tenants.''
    The Subcommittee heard testimony from representatives of 
the GAO, HUD, tenant and community groups, and other interested 
parties.

                             Hearings Held

    RESPA Reform. Hearing entitled ``Simplifying the Home 
Buying Process: HUD's Proposal to Reform RESPA.'' February 25, 
2003. PRINTED, serial no. 108-3.
    Faith-Based Initiatives. Hearings entitled ``Strengthening 
America's Communities: Examining the Impact of Faith-Based 
Housing Partnerships.'' March 25 and April 28, 2003. PRINTED, 
serial no. 108-14.
    National Flood Insurance. Hearing entitled ``The National 
Flood Insurance Program: Review and Reauthorization.'' April 1, 
2003. PRINTED, serial no. 108-17.
    Down-Payment Assistance. Hearing entitled ``Promoting the 
American Dream of Homeownership through Down-Payment 
Assistance.'' April 8, 2003. PRINTED, serial no. 108-21.
    HOPE VI Program. Hearing entitled ``Strengthening and 
Rejuvenating Our Nation's Communities and the HOPE VI 
Program.'' April 29, 2003. PRINTED, serial no. 108-23.
    Section 8 Housing Assistance Program. Hearing entitled 
``The Section 8 Housing Assistance Program: Promoting Decent 
Affordable Housing for Families and Individuals Who Rent.'' May 
22, June 10 and 17, and July 1, 2003. PRINTED, serial no. 108-
31.
    Rural Housing Service. Hearings entitled ``Rural Housing in 
America.'' June 19 and July 8, 2003. PRINTED, serial no. 108-
41.
    Community Development Block Grants. Field hearing entitled 
``Community Development Block Grants: The Impact of CDBG on our 
Communities.'' June 30, 2003. PRINTED, serial no. 108-46.
    H.R. 1985, the FHA Multifamily Loan Limit Adjustment Act of 
2003. Hearing on H.R. 1985, the FHA Multifamily Loan Limit 
Adjustment Act of 2003. July 22, 2003. PRINTED, serial no. 108-
49.
    Ohio Housing and Community Development Issues. Field 
hearing entitled ``Housing and Community Development Policies 
in the State of Ohio.'' July 29, 2003. PRINTED, serial no. 108-
50.
    Abusive Lending Practices. Joint hearing with the 
Subcommittee on Financial Institutions and Consumer Credit 
entitled ``Protecting Homeowners: Preventing Abusive Lending 
While Preserving Access to Credit.'' November 5, 2003. PRINTED, 
serial no. 108-62.
    Housing Counseling. Hearing entitled ``Successful 
Homeownership and Renting through Housing Counseling.'' March 
18, 2004. PRINTED, serial no. 108-73.
    H.R. 3755, the Zero Downpayment Act. Hearing on H.R. 3755, 
the Zero Downpayment Act. March 24, 2004. PRINTED, serial no. 
108-74.
    Subprime Lending. Hearing entitled ``Subprime Lending: 
Defining the Market and its Customers.'' March 30, 2004. 
PRINTED, serial no. 108-76.
    Housing Opportunities for Native Americans. Field hearing 
entitled ``Improving Housing Opportunities for Native 
Americans.'' May 3, 2004. Serial no. 108-83.
    H.R. 4110, the FHA Single Family Loan Limit Adjustment Act 
of 2004. Hearing on H.R. 4110, the FHA Single Family Loan Limit 
Adjustment Act of 2004. June 16, 2004. Serial no. 108-93.
    Liquidity in the Subprime Mortgage Market. Joint hearing 
with the Subcommittee on Financial Institutions and Consumer 
Credit entitled ``Promoting Homeownership by Ensuring Liquidity 
in the Subprime Mortgage Market.'' June 23, 2004. PRINTED, 
serial no. 108-97.
    H.R. 4057, the Samaritan Initiative Act of 2004. Hearing on 
H.R. 4057, the Samaritan Initiative Act of 2004. July 13, 2004. 
Serial no. 108-99.
    GAO Report on Multifamily Housing. Hearing on a GAO Report 
entitled ``Multifamily Housing: More Accessible HUD Data Could 
Help Efforts to Preserve Housing for Low Income Tenants.'' July 
20, 2004. Serial no. 108-102.
    Mortgage Fraud. Hearing entitled ``Mortgage Fraud and Its 
Impact on Mortgage Lenders.'' October 7, 2004. Serial no. 108-
116.
              Subcommittee on Oversight and Investigations

           (Ratio: 11-9)

   SUE W. KELLY, New York, Chair

LUIS V. GUTIERREZ, Illinois          RON PAUL, Texas
JAY INSLEE, Washington                 Vice Chairman
DENNIS MOORE, Kansas                 STEVEN C. LaTOURETTE, Ohio
JOSEPH CROWLEY, New York             MARK GREEN, Wisconsin
CAROLYN B. MALONEY, New York         JOHN B. SHADEGG, Arizona
JIM MATHESON, Utah                   VITO FOSSELLA, New York
STEPHEN F. LYNCH, Massachusetts      JEB HENSARLING, Texas
ARTUR DAVIS, Alabama \2\             SCOTT GARRETT, New Jersey
CHRIS BELL, Texas \1\                TIM MURPHY, Pennsylvania
BARNEY FRANK, Massachusetts          GINNY BROWN-WAITE, Florida
  ex officio                         J. GRESHAM BARRETT, South Carolina
                                     MICHAEL G. OXLEY, Ohio
                                       ex officio

                          Oversight Activities


                      STOPPING TERRORIST FINANCING

    On March 11, 2003, the Subcommittee on Oversight and 
Investigations held a hearing entitled ``Progress Since 9/11: 
The Effectiveness of the U.S. Anti-Terrorist Financing 
Efforts'' and on September 24, 2003, the Subcommittee also held 
a hearing entitled ``The Hamas Asset Freeze and Other 
Government Efforts to Stop Terrorist Financing.'' Senior 
officials from the Treasury, State, Justice, and Homeland 
Security Departments who engage in international negotiations 
and enforcement actions to halt the flow of terrorist funds 
testified at the hearings.

IMPACTS OF THE PRESIDENT'S TAX PLAN ON INVESTORS, CAPITAL MARKETS, AND 
                          CORPORATE GOVERNANCE

    The Subcommittee held a hearing on March 18, 2003,n 
entitled ``Paying Dividends: How the President's Tax Plan Will 
Benefit Individual Investors and Strengthen the Capital 
Markets.'' The purpose of the hearing was to discuss the 
impacts of the proposal by the President to eliminate the 
double taxation of corporate dividends. Witnesses included the 
Treasury Under Secretary for Domestic Finance, former Members 
of Congress, representatives from the business community, and 
experts on the impacts of tax cuts on economic growth and on 
housing construction.

    FIGHTING FRAUD AND IDENTITY THEFT THROUGH IMPROVING INFORMATION 
                                SECURITY

    On April 3, 2003, the Subcommittees on Oversight and 
Investigations and Financial Institutions and Consumer Credit 
held a joint hearing entitled ``Fighting Fraud: Improving 
Information Security'' to examine three specific cases in which 
breaches of data security or failures of internal controls 
resulted in the inadvertent disclosure of consumers' personal 
financial information. The hearing focused on strategies for 
coordinating the efforts of credit issuers, third-party vendors 
that process transactions, credit bureaus, and law enforcement 
agencies in limiting harm to consumers when data security is 
breached. Witnesses testifying at the hearing included 
representatives of the Federal Bureau of Investigation, the 
U.S. Secret Service, and the Federal Trade Commission, as well 
as industry and consumer groups.

       INCREASING THE EFFECTIVENESS OF STATE CONSUMER PROTECTIONS

    The Subcommittee held a hearing on May 6, 2003, entitled 
``Increasing the Effectiveness of State Consumer Protections.'' 
The hearing focused on the need to improve the effectiveness of 
State insurance market conduct oversight. Witnesses included 
State insurance regulators, an expert on State insurance 
regulation from the General Accounting Office, and 
representatives from consumer organizations.

        SAVING TAXPAYER MONEY THROUGH SOUND FINANCIAL MANAGEMENT

    On June 25, 2003, the Subcommittee held a hearing entitled 
``Saving Taxpayer Money through Sound Financial Management.'' 
The focus of the hearing was to review how Federal agencies can 
better manage their appropriated funds to reduce waste and 
abuse. The Conference Report accompanying the budget resolution 
for FY2004 (H. Rept. 108-71) required House authorizing 
committees to identify means of eliminating waste, fraud, and 
abuse. Committee staff, senior officials from HUD and the Rural 
Housing Service; the Inspectors General of HUD and the 
Agriculture Department; and the GAO collaborated to determine 
the amount of unliquidated obligations that could meet the 
goals in the budget resolution. The Chief Financial Office of 
HUD and the Under Secretary for Rural Development at the 
Agriculture Department were the witnesses. As a result of the 
hearing, the Committee considered and approved a report to the 
Committee on the Budget entitled, ``Changes in Law to Prevent 
Waste, Fraud, and Abuse,'' on July 24, 2003.

GOVERNMENT AND INDUSTRY EFFORTS TO PROTECT OUR MONEY DURING BLACKOUTS, 
                    HURRICANES, AND OTHER DISASTERS

    The Subcommittee held a hearing on October 20, 2003, 
entitled ``Government and Industry Efforts to Protect our Money 
During Blackouts, Hurricanes, and Other Disasters.'' The 
hearing focused on the steps taken by Government officials and 
the private sector to recover from the Northeast blackout in 
August 2003 and from Hurricane Isabel, and on planning to 
prevent disruptions in financial services as a result of 
disasters. Witnesses included the Assistant Secretary of the 
Treasury for Financial Institutions, a Member of the Board of 
Governors of the Federal Reserve System, the former Chair of 
the President's Critical Infrastructure Protection Board, and 
the key officials from the private sector involved in disaster 
recovery efforts. The SEC and Superintendent of the New York 
State Banking Department submitted statements for the record.

                 CONGRESSIONAL REVIEW OF OCC PREEMPTION

    On January 28, 2004, the Subcommittee on Oversight and 
Investigations held a hearing entitled ``Congressional Review 
of OCC Preemption.'' The purpose of the hearing was to examine 
regulations issued by the Office of the Comptroller of the 
Currency (OCC) governing the extent to which State laws apply 
to the activities of banks chartered by the Federal government. 
Witnesses at the hearing included representatives from the OCC, 
the National Association of Attorneys General, the Conference 
of State Bank Supervisors, and industry and consumer groups.

         OVERSIGHT OF THE FEDERAL DEPOSIT INSURANCE CORPORATION

    On March 4, 2004, the Subcommittee on Oversight and 
Investigations held a hearing entitled ``Oversight of the 
Federal Deposit Insurance Corporation'' to examine the 
operations of the Federal Deposit Insurance Corporation (FDIC), 
the Federal agency which insures deposits at the Nation's banks 
and thrift institutions, as well as regulates some 5,000 State-
chartered institutions. Witnesses at the hearing included 
representatives of the FDIC, the FDIC Office of Inspector 
General, and the United States General Accounting Office.

              SADDAM HUSSEIN'S MONEY LAUNDERING ACTIVITIES

    On May 14, 2003, the Subcommittee held a hearing entitled 
``Divesting Saddam: Freezing, Seizing, and Repatriating 
Saddam's Money to the Iraqis'', the first Congressional hearing 
on the subject. Witnesses from the Treasury, State, and Defense 
Departments who are leading teams of agents inside Iraq and 
around the world testified at the hearing.
    The Subcommittee on Oversight and Investigations held a 
hearing on March 18, 2004, entitled ``The Hunt for Saddam's 
Money: U.S. and Foreign Efforts to Recover Iraq's Stolen 
Money'' to update Members on the status of U.S. efforts to 
seize and repatriate Iraqi national assets stolen by the Saddam 
regime and determine international obstacles facing the U.S. in 
this endeavor. Officials from Treasury and State discussed 
current successes and ongoing international efforts and actions 
to find and freeze both known and hidden Iraqi assets.

  IMPROVING FINANCIAL OVERSIGHT: A PRIVATE SECTOR VIEW OF ANTI-MONEY 
                           LAUNDERING EFFORTS

    The Subcommittee on Oversight and Investigations held a 
hearing entitled ``Improving Financial Oversight: A Private 
Sector View of Anti-Money Laundering Efforts'' on Tuesday, May 
18, 2004. The hearing highlighted enhanced financial oversight 
by agencies of the Federal government, cooperation from 
overseas counterparts and the institutional commitment to 
compliance at home and abroad.
    Witnesses included representatives from financial services 
firms and a terrorist research firm.

     RISK MANAGEMENT AND REGULATORY FAILURES AT RIGGS BANK AND UBS

    The Subcommittee on Oversight and Investigations held a 
hearing entitled ``Risk Management and Regulatory Failures at 
Riggs Bank and UBS: Lessons Learned'' on Wednesday, June 2, 
2004. The purpose of the hearing was to address concerns over 
perceived lapses in enforcement and regulatory oversight of 
anti-money laundering provisions of the Bank Secrecy Act and 
the USA/Patriot Act.
    The Subcommittee heard testimony from representatives of 
the Federal Reserve Board of Governors and the Office of the 
Comptroller of the Currency.

              OVERSIGHT OF THE DEPARTMENT OF THE TREASURY

    The Subcommittee on Oversight and Investigations held a 
hearing entitled ``Oversight of the Department of the 
Treasury'' on Wednesday, June 16, 2004. The hearing reviewed a 
number of issues regarding the operations of the Treasury 
Department, including (1) how Treasury was operating at the 
current level of resource support; (2) Treasury's position on 
reform of the Government Sponsored Entities; (3) the Office of 
the Comptroller of the Currency's recent regulations on 
preemption of State laws; (4) the status of the Department's 
efforts to improvethe financial literacy of Americans; (5) its 
observations and conclusions about the recent problems at Riggs Bank 
dealing with embassy accounts; and (6) its reaction to the recent UBS 
``ECI'' accounts matter. In addition, the Subcommittee focused on 
financial sector compliance with the requirements of Title III of the 
USA PATRIOT Act dealing with money laundering and terrorist financing.
    The Subcommittee heard testimony from the Deputy Secretary 
of the Treasury, the Director of the Financial Crimes 
Enforcement Network, the Director of the Office of Foreign 
Assets Control, the Chief of Criminal Investigation at the 
Internal Revenue Service, and the Treasury Department's 
Inspector General.

DIVERSITY IN THE FINANCIAL SERVICES INDUSTRY AND ACCESS TO CAPITAL FOR 
        MINORITY-OWNED BUSINESSES: CHALLENGES AND OPPORTUNITIES

    On Thursday, July 15, 2004, the Subcommittee on Oversight 
and Investigations held a hearing entitled ``Diversity in the 
Financial Services Industry and Access to Capital for Minority-
Owned Businesses: Challenges and Opportunities'' to discuss 
diversity and minority-owned businesses' access to capital in 
the financial services sector. The hearing delved into issues 
such as the extent to which minorities are participating in all 
facets of entrepreneurial activity in the United States, 
including in leadership and executive roles on corporate 
boards, in the financial services industry, and in the 
accounting profession. Witnesses discussed the opportunities 
and challenges corporations face in diversifying their 
corporate structures at both middle and senior levels of 
management. In addition, the hearing delved into the challenges 
that minority-owned businesses continue to face in their 
efforts to raise capital to expand their businesses.
    Witnesses included representatives of the New America 
Alliance, the Securities Industry Association, Women in Housing 
and Finance, Inc., the Illinois Office of Banks and Real 
Estate, Boston College, and Korn/Ferry International.

        ENCOURAGING SMALL BUSINESS GROWTH AND ACCESS TO CAPITAL

    On Thursday, September 23, 2004, the Subcommittee on 
Oversight and Investigations held a hearing entitled 
``Encouraging Small Business Growth and Access to Capital''. 
The focus of the hearing was primarily on the impact of the 
administration of Federal securities laws on small business 
capital formation. The Subcommittee explored what measures can 
or should be taken to facilitate greater growth and access to 
the capital markets by small business.
    The Subcommittee heard testimony from representatives from 
the SEC and the financial services and venture capital 
industries.

              COMBATING INTERNATIONAL TERRORIST FINANCING

    The Subcommittees on Domestic and International Monetary 
Policy, Trade, and Technology and on Oversight and 
Investigations held a joint hearing on Thursday, September 30, 
2004, on the status of efforts to combat international 
terrorist financing. The Assistant Secretary of the Treasury 
for Terrorist Financing and the Assistant Secretary of State 
for Economic and Business Affairs appeared as witnesses.
    The United States Departments of Treasury and State, in 
cooperation with other government agencies, have successfully 
solicited the support of the international community to help 
combat money laundering and terrorist financing. Witnesses 
highlighted the successful promotion of international standards 
for financial transparency and accountability; coordinated 
technical assistance to weak but willing states; ongoing 
freezing of terrorist-related and other criminal assets; 
continued coordination of intelligence operations; and using 
diplomacy to convince other governments to take significant 
steps.

  OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT AND FEDERAL HOUSING 
                             FINANCE BOARD

    On July 13, 2004 the Subcommittees on Oversight and 
Investigations and Capital Markets, Insurance, and Government 
Sponsored Enterprises held a joint hearing entitled ``A Review 
of the Office of Federal Housing Enterprise Oversight and 
Federal Housing Finance Board.'' The Subcommittees examined the 
operations of the Office of Federal Housing Enterprise 
Oversight and the Federal Housing Finance Board. The Director 
of OFHEO and the Chairman of the Federal Housing Finance Board 
testified at this hearing.

                        TERRORISM RISK INSURANCE

    On April 2, 2004, the Subcommittees on Oversight and 
Investigations and Capital Markets, Insurance, and Government 
Sponsored Enterprises held a joint hearing entitled ``A Review 
of TRIA and Its Effect on the Economy: Helping America Move 
Forward.'' The purpose of the hearing was to conduct a review 
of the progress made by the Treasury Department and the 
insurance industry in implementing the provisions of the 
Terrorism Risk Insurance Act of 2002 (TRIA), as well as changes 
in the market for terrorism insurance coverage under TRIA. The 
Subcommittee heard testimony from the Assistant Secretaryof the 
Treasury for Financial Institutions, the New York Superintendent of 
Insurance, and the Government Accountability Office.

                             Hearings Held

    U.S. Anti-Terrorist Financing Efforts. Hearing entitled 
``Progress Since 9/11: The Effectiveness of U.S. Anti-Terrorist 
Financing Efforts.'' March 11, 2003. PRINTED, Serial no. 108-
10.
    Benefits of the President's Tax Plan. Hearing entitled 
``Paying Dividends: How the President's Tax Plan Will Benefit 
Individual Investors and Strengthen the Capital Markets.'' 
March 18, 2003. PRINTED, Serial no. 108-12.
    Fighting Fraud: Information Security. Hearing entitled 
``Fighting Fraud: Improving Information Security.'' April 3, 
2003. PRINTED, Serial no. 108-19.
    State Consumer Protections. Hearing entitled ``Increasing 
the Effectiveness of State Consumer Protections.'' May 6, 2003. 
PRINTED, Serial no. 108-25.
    Divesting Saddam. Hearing entitled ``Divesting Saddam: 
Freezing, Seizing, and Repatriating Saddam's Money to the 
Iraqis.'' May 14, 2003. PRINTED, Serial no. 108-28.
    Sound Financial Management. Hearing entitled ``Saving 
Taxpayer Money Through Sound Financial Management.'' June 25, 
2003. PRINTED, Serial no. 108-44.
    Hamas Asset Freeze. Hearing entitled ``The Hamas Asset 
Freeze and Other Government Efforts to Stop Terrorist 
Financing.'' September 24, 2003. PRINTED, Serial no. 108-53.
    Government Efforts to Protect Our Money during Blackouts, 
Hurricanes, and Other Disasters. Hearing entitled ``Government 
Efforts to Protect Our Money during Blackouts, Hurricanes, and 
Other Disasters.'' October 20, 2003. PRINTED, Serial no. 108-
58.
    Congressional Review of OCC Preemptions. Hearing entitled 
``Congressional Review of OCC Preemptions.'' January 28, 2004. 
PRINTED, Serial no. 108-65.
    The Hunt for Saddam's Money. Hearing entitled ``The Hunt 
for Saddam's Money: U.S. and Foreign Efforts to Recover Iraq's 
Stolen Money.'' March 18, 2004. PRINTED, Serial no. 108-72.
    Oversight of the Office of the Comptroller of the Currency. 
Hearing entitled ``Oversight of the Office of the Comptroller 
of the Currency: Examination of Policies, Procedures, and 
Resources.'' April 1, 2004. PRINTED, Serial no. 108-78.
    TRIA and Its Effect on the Economy. Joint hearing with the 
Subcommittee on Capital Markets, Insurance, and Government 
Sponsored Enterprises entitled ``A Review of TRIA and Its 
Effect on the Economy: Helping America Move Forward.'' April 
28, 2004. PRINTED, Serial no. 108-81.
    Improving Financial Oversight. Hearing entitled ``Improving 
Financial Oversight: Private Sector View of Anti-Money 
Laundering Efforts.'' May 18, 2004. PRINTED, Serial no. 108-87.
    Risk Management and Regulatory Failures at Riggs Bank and 
UBS. Hearing entitled ``Risk Management and Regulatory Failures 
at Riggs Bank and UBS.'' June 2, 2004. PRINTED, Serial no. 108-
91.
    Oversight of the Department of the Treasury. Hearing 
entitled ``Oversight of the Department of the Treasury.'' June 
16, 2004. PRINTED, Serial no. 108-94.
    Review of OFHEO and Federal Housing Finance Board. Joint 
hearing with the Subcommittee on Capital Markets, Insurance, 
and Government Sponsored Enterprises entitled ``A Review of the 
Office of Federal Housing Enterprise Oversight and Federal 
Housing Finance Board.'' July 13, 2004. Serial no. 108-100.
    Diversity in the Financial Services Industry. Hearing 
entitled ``Diversity in the Financial Services Industry and 
Access to Capital for Minority Owned Businesses: Challenges and 
Opportunities.'' July 15, 2004. Serial no. 108-101.
    Small Business Growth and Access to Capital. Hearing 
entitled ``Encouraging Small Business Growth and Access to 
Capital.'' September 23, 2004. Serial no. 108-113.
    Combatting International Terrorist Financing. Joint hearing 
with the Subcommittee on Domestic and International Monetary 
Policy, Trade, and Technology entitled ``Combatting 
International Terrorist Financing.'' September 30, 2004. Serial 
no. 108-114.
                 OVERSIGHT PLAN FOR THE 108TH CONGRESS

    Clause 2(d) of rule X of the Rules of the House of 
Representatives for the 108th 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 Eighth 
Congress, which the Committee considered and adopted on 
February 5, 2003.
    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 
activities of the full Committee and each of the subcommittees.
                                 PART A

   OVERSIGHT PLAN OF THE COMMITTEE ON FINANCIAL SERVICES FOR THE ONE 
                        HUNDRED EIGHTH CONGRESS

                              ----------                              


February 5, 2003.--Approved by the Committee on Financial Services, as 
                                amended.

                              ----------                              

    Clause 2(d)(1) of rule X of the Rules of the House of 
Representatives for the 108th Congress requires each standing 
committee, not later than February 15 of the first session to 
adopt an oversight plan for the 108th 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 108th 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.

                     International Financial Issues

    Annual report and testimony by the Secretary of the 
Treasury on International Monetary Fund Reform and the State of 
the International Financial System. The Committee will review 
and assess the annual reports to Congress from the Secretary of 
the Treasury on the International Monetary Fund (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; (3) compliance by 
borrower countries with the terms and conditions of IMF 
assistance; and (4) proposals to change the international 
sovereign bankruptcy system.
    Basel Capital Accord. The Committee will continue to review 
proposals for a new Basel Capital Accord, which is an agreement 
by the G-10 central banks to establish common minimum capital 
standards for their banking industries. The members of the 
Basel Committee have been negotiating changes to the Basel 
Accord and are set to release their third and final 
consultative paper in March of 2003. The Committee will examine 
the need for the recommended changes to the current Basel 
Accord and address concerns related to the proposed capital 
charges for operational and credit risk. The Committee will 
address whether the proposed new capital charges will have a 
discriminatory effect on U.S. financial institutions and 
whether there are any other potential unintended consequences 
stemming from the proposed Accord.
    Export-Import Bank of the United States. In the 107th 
Congress the Committee extended and revised the charter of the 
Export-Import Bank of the United States (Ex-Im) through the 
enactment of the Export-Import Bank Reauthorization Act of 2002 
(Public Law 107-189). This legislation made significant changes 
to the operation of the ``Tied Aid'' program and strongly 
encouraged the Bank to increase its transactions with small 
businesses. Additionally, the Committee approved changes to the 
way the Bank evaluates and approves transactions that are 
subject to an anti-dumping or countervailing duty order. The 
Committee will oversee the implementation of these new mandates 
on the Bank and will examine the competitiveness of the Bank as 
compared to foreign export credit agencies. In order to assess 
their effect on Ex-Im competitiveness, the Committee will 
review any cases where the President invokes his Executive 
power to block Ex-Im financing due to 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 International 
Monetary Fund, the World Bank Group, and the regional 
multilateral development banks (MDBs). Special attention will 
be given to the continuing instability in Latin America, with 
particular emphasis on Argentina, Brazil, Venezuela, Colombia, 
and Haiti; on MDB involvement in the reconstruction of 
Afghanistan; on the implications for the International 
Financial Institutions of a war with Iraq; on proposals to 
change the international sovereign bankruptcy system; on 
efforts to improve the transparency of IFIs; on implementation 
of privatization programs sponsored by the MDBs; and on anti-
corruption measures within the MDBs.
    North American Development Bank. The Committee will monitor 
and conduct necessary oversight activities over U.S. 
involvement in the North American Development Bank (NADBank). 
Specifically, the Committee will review the joint reform 
proposal for the NADBank asagreed to by President George W. 
Bush and President Vicente Fox of Mexico.
    Trade in Financial Services. With passage of the Trade 
Promotion Authority Act (Public Law 107-210), the Chairman and 
Ranking Minority Member of the Committee were named to the 
Congressional Oversight Group on Trade. In this capacity the 
Committee will be active in the oversight of trade negotiations 
and will consult regularly with the U.S. Trade Representative 
on matters within the jurisdiction of the Committee. The 
Committee will monitor negotiations for increased trade 
liberalization and consult with U.S. counterparts to those 
negotiations. The Committee will examine the financial services 
and investment provisions of free trade pacts, including the 
Chile and Singapore Free Trade Agreements.
    International Corporate Governance Issues. The Committee 
will continue to monitor various proposals by the European 
Union (EU) in the area of corporate governance. Those include 
efforts to adopt International Accounting Standards, the 
proposed EU Directive on Conglomerates and the Financial 
Services Action Plan (FSAP). The FSAP is a far-reaching reform 
of the EU's financial services sector, and as such will impact 
American companies, consumers and investors. The Committee is 
committed to working with U.S. and European regulators to 
ensure fair access to Europe's financial markets. The Committee 
will also monitor international implications of the recently-
enacted Sarbanes-Oxley Act (Public Law 107-204).
    International Debt Relief. The Committee will monitor and 
conduct necessary oversight activities regarding the 
implementation of legislation passed in 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. In addition, the Committee will assess 
the $1 billion shortfall in financing for the HIPC Trust Fund, 
as determined by the G-8 leaders at the June 2002 Economic 
Summit. The Committee will assess the effectiveness of the 
current HIPC initiative, as well as the need for reforms.
    Administration's Millennium Challenge Account. The 
President announced on March 14, 2002 that the United States 
will increase its core development assistance by 50 percent 
over the next three years, resulting in a $5 billion annual 
increase over current levels. The additional funds will go to a 
new Millennium Challenge Account (MCA) designed to help 
developing nations improve their economies and standards of 
living. The Committee will monitor and assess the impact of the 
MCA on the MDBs and debt relief efforts. It will also assess 
efforts by the Secretaries of State and Treasury to work with 
the world community to develop clear, concrete and objective 
criteria for measuring progress in good governance, health and 
educational investment, and employing economic policies that 
foster economic freedom--all essential tenets of the MCA as 
proposed.
    Global Fund To Fight AIDS, Tuberculosis and Malaria. The 
Committee will monitor and conduct necessary oversight 
activities regarding the implementation of the Global AIDS and 
Tuberculosis Relief Act of 2000 (Public Law 106-264) which 
authorizes an international trust fund, led by the United 
States and other donors, to address the crisis of AIDS and 
other infectious diseases through support of prevention, 
education and treatment efforts in sub-Saharan Africa and other 
hard-hit regions. This legislation laid the groundwork for the 
establishment of the Global Fund to Fight AIDS, Tuberculosis 
and Malaria (Global Fund), which is a public-private 
partnership headquartered in Geneva, Switzerland. The World 
Bank holds an ex-officio (non-voting) seat on the Global Fund's 
board and serves as the Global Fund's trustee and banker, while 
the Secretary of Health and Human Services is a voting board 
member. With the United States as the leading contributor to 
the Global Fund, the Committee must oversee its operations to 
ensure that the Global Fund and the World Bank operate 
effectively and on a timely basis in rendering funds and aid as 
required by the Global AIDS and Tuberculosis Relief Act. The 
Committee expects to receive testimony from the Secretary of 
the Treasury and other U.S. governmental entities with 
expertise on the Global Fund, such as the General Accounting 
Office (GAO). In addition, it will review the status of the 
World Bank's programs to reduce HIV/ AIDS, such as the World 
Bank Multi-Country AIDS Program.
    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.

            Financial Services Industry/Consumer Protection


                         FINANCIAL INSTITUTIONS

    Implementation of USA PATRIOT Act. The Committee will 
monitor regulatory implementation by the Treasury Department 
and other relevant government agencies of the anti-money 
laundering andterrorist financing provisions of the USA PATRIOT 
Act (Public Law 107-56).
    Money Laundering. The Committee will review enforcement of 
anti-money laundering laws and regulations, including, but not 
limited to, those enacted or implemented as part of the USA 
PATRIOT Act. This review will include examination of the 
administration's annual National Money Laundering Strategy, and 
consideration of whether to reauthorize the statutory 
provisions which require submission of the Strategy, which are 
set to expire in 2003. The Committee will also monitor the 
establishment of the new Department of Homeland Security to 
ensure that the anti-money laundering efforts of its component 
agencies continue.
    Deposit Insurance Reform. The Committee will continue its 
review of proposals to reform the Federal deposit insurance 
system. During the 107th Congress, the Committee conducted 
comprehensive hearings on various aspects of the deposit 
insurance system, culminating in overwhelming House passage of 
reform legislation that was never considered in the Senate. The 
Committee's focus in this Congress will be on addressing 
inequities and potential economic distortions that exist in the 
current system, while ensuring that Federal deposit insurance 
continues to serve its historical function as a source of 
stability in the banking system and a valued safety net for 
depositors.
    Implementation of Gramm-Leach-Bliley Act. The Committee 
will continue to monitor various aspects of the implementation 
of the Gramm-Leach-Bliley Act (GLB), the landmark financial 
modernization law enacted in 1999. Included in the Committee's 
review will be regulatory interpretations of: (1) GLB's 
provision authorizing the Federal Reserve Board and the 
Treasury Department to define activities that are ``financial 
in nature,'' and therefore permissible for financial holding 
companies and financial subsidiaries to engage in; and (2) the 
Title II ``push-out'' provisions, relating to regulation of 
certain securities activities conducted within banking 
organizations. The Committee will also review government and 
private sector implementation of the financial privacy 
requirements of Title V of GLB, which give consumers notice and 
choice about how their financial information is used and 
disseminated by financial firms.
    Fair Credit Reporting Act. In conjunction with the January 
1, 2004, expiration of provisions that provide for uniform 
national treatment of certain aspects of the credit reporting 
process, the Committee will conduct a comprehensive review of 
the Fair Credit Reporting Act (FCRA). Among the issues that the 
Committee expects to consider are whether the uniform Federal 
standards established by the 1996 amendments to the FCRA have 
benefited consumers and the national economy, and what the 
consequences would be of allowing the States to set their own 
standards. The Committee will review other FCRA issues such as 
proposals to address the Federal Trade Commission staff's 
opinion letter relating to the treatment under the FCRA of 
employer investigations of employee misconduct (the so-called 
``Vail letter''); the adequacy of efforts by furnishers of 
credit reporting data and the credit bureaus to ensure the 
accuracy of information that appears in consumer credit 
reports; and the increasing use of credit scores to determine 
consumers' eligibility for everything from loans to auto 
insurance policies.
    Financial Privacy and Identity Theft. In addition to 
examining privacy in the context of the FCRA and GLB, the 
Committee will conduct a broader review of financial privacy 
issues to determine whether existing government policies and 
industry practices provide sufficient protections for 
consumers. With the prevalence of identity theft increasing at 
an alarming rate, the Committee will focus particular attention 
on government and private sector initiatives to prevent 
identity theft and to assist victims of the crime.
    Internet Gambling. The Committee will continue to monitor 
the use of financial instruments--which include credit cards, 
checks, electronic funds transfers and other alternative forms 
of payment--in unlawful Internet gambling. The Committee's 
review will focus on the potential misuse of illegal offshore 
Internet gambling sites to facilitate money laundering, 
terrorist financing, and other criminal activity, as described 
by the Department of Justice and the Federal Bureau of 
Investigation in testimony to the Committee last Congress.
    Payments System Innovations. The Committee will review 
government and private sector efforts to achieve greater 
innovations and efficiencies in the payments system, including 
specific legislative proposals to facilitate greater electronic 
processing of paper checks.
    Credit Unions. The Committee will continue to monitor the 
National Credit Union Administration's implementation of the 
Credit Union Membership Access Act of 1998. The Committee will 
consider other credit union issues in conjunction with its 
review of legislative proposals to offer depository 
institutions relief from outdated or unnecessary regulatory 
burdens.
    Financial Supervision. The Committee will require Federal 
regulators to provide periodic updates on their safety and 
soundness supervision of the banking, thrift, and credit union 
industries to ensure that systemic risks or other structural 
weaknesses in the financial sector are identified and addressed 
promptly. Several recent high-profile failures of depository 
institutions, involving large losses to the insurance funds 
relative to the asset size of the failed institutions,have 
raised questions about the effectiveness of prompt corrective action 
(PCA) and other supervisory tools for addressing troubled institutions.
    Regulatory Burden Reduction. The Committee will review the 
current regulatory burden on banks, thrifts, and credit unions 
with the goal of reducing unnecessary or duplicative 
regulations consistent with consumer protection and safe and 
sound banking practices. The Committee's starting point will be 
the work done in the prior Congress in preparation for its 
consideration of the Financial Services Regulatory Relief Act 
of 2002 (H.R. 3951). In evaluating proposals to grant 
regulatory relief to financial institutions, the Committee will 
examine whether cost savings achieved through regulatory burden 
reduction are passed on to consumers.
    Consumer Protections. In addition to issues addressed 
throughout this oversight plan that relate to consumers of 
financial services, the Committee will consider other specific 
consumer protection issues within its jurisdictional purview, 
including promoting greater financial literacy; ensuring the 
availability of credit and other financial products and 
services to low and moderate-income Americans; and examining 
proposed revisions to various titles of the Consumer Credit 
Protection Act, including the Truth in Lending Act and the Fair 
Debt Collection Practices Act.
    Credit Card Regulation. The Committee will continue its 
review of credit card industry practices, as they relate to 
both consumer protections and the management of risk by card-
issuing banks. The Committee's review will encompass recent 
regulatory guidance issued by the Federal banking agencies 
governing loss-recognition standards and other account 
management practices employed by credit card banks.
    First Accounts/Electronic Transfer Accounts. In addition to 
monitoring the First Accounts Initiative, the Committee will 
continue to monitor the Treasury Department's implementation of 
the Electronic Transfer Account (ETA) program, along with for 
unbanked recipients of social security, veterans' benefits, and 
other Federal payments. A 2002 General Accounting Office study 
of this program found that the actual number of unbanked 
recipients of Federal payments may be twice the number 
originally estimated by the Department of the Treasury. The 
Committee intends to continue to seek ways to improve the 
effectiveness and efficiency of the ETA program, including 
exploring other electronic payment options to extend the 
program's reach and broaden the availability of low-cost 
financial services to the unbanked.

                          Information Security

    Data Protection. The Committee will continue its review of 
the policies and procedures of Federal and State governments 
and the private sector to protect sensitive information about 
consumers from improper disclosure, theft, or loss. The 
Committee will also review the benefits and costs of current 
government and private sector initiatives to protect the 
privacy of information they own regarding consumers.
    Antifraud Network. The Committee will continue to review 
the inadequacies in current government procedures for 
information sharing on regulated financial companies and 
professionals. The Committee will continue its examination of 
both the need for a more comprehensive anti-fraud network to 
prevent financial crimes as well as better established 
procedures governing information sharing among government and 
quasi-government entities.
    Cybersecurity. The United States has long been dependent on 
a complex of systems that link critical infrastructures to 
assure delivery of vital services. Cyberterrorism is an issue 
of growing national interest. Many believe terrorists plan to 
disrupt the Internet or other critical infrastructures such as 
transportation, communications, or banking and finance. The 
Committee will examine the financial services industry's 
susceptibility to a cyber attack and work to ensure the 
security of the financial services infrastructure.
    Electronic Signatures and E-Commerce. The Committee will 
continue to monitor the evolution of electronic signature 
technology and laws to ensure that consumers are able to take 
maximum advantage of new electronic commerce financial products 
and services without undue burdens and with the proper level of 
security and communication protections.

                               Insurance

    Insurance Solvency Regulation. The Committee will continue 
its examination of the National Association of Insurance 
Commissioners (NAIC) accreditation program that judges the 
adequacy of State insurance financial regulation. The Committee 
will focus on the steps the NAIC has taken to update the 
program since its inception in the early 1990's and will 
analyze other areas for improving the financial regulation of 
insurers.
    Market Conduct Regulation. The Committee will review the 
need to modernize market conduct supervision to increase 
efficiency to better serve insurance consumers. The Committee 
will focus on the efforts of State insurance regulators to 
improve the quality and uniformity of market conduct oversight.
    Agent Licensing Reform. The Committee will continue its 
review of the States' progress in passing and implementing 
uniform or reciprocal insurance agency licensing reform and 
what further measures may be necessary to promote uniformity in 
agent licensing.
    Insurance Product Approval. The Committee will continue its 
review of the need to modernize the State product approval 
process to achieve uniformity, efficiency, and timeliness in 
the regulatory review of insurance rates and forms. This review 
will include an evaluation of the NAIC interstate compact 
proposal for life and health products as well as the NAIC 
improvements to State-based systems initiative for property and 
casualty products. The Committee will pay particular attention 
to State legislative efforts designed to adopt these proposals.
    National Insurance Uniformity. The Committee will review 
various alternatives for modernizing the regulation of 
insurance, including State by State improvements, coordination 
of State regulation through the NAIC, Federal promotion of 
State uniformity, proposals for an optional Federal charter, 
and other reforms for improving the efficiency and 
effectiveness of insurance regulation.
    Terrorism Insurance. The Committee will continue to monitor 
the terrorism insurance marketplace and will conduct oversight 
of the Terrorism Risk Insurance Act of 2002 (Public Law 107-
297) and its implementation by the Treasury Department, State 
insurance departments, and insurance underwriters, agents, and 
brokers, to ensure that the goals of the legislation are being 
met.
    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, and excessive premium 
charges for credit insurance and mortgage insurance.
    Insurance Fraud. The Committee will continue its 
examination of the efforts by the States, the NAIC, and other 
entities, to locate and fight insurance fraud. Specifically, 
the Committee will consider legislation that addresses the 
problem of ineffective regulation in the area of viaticals 
while encouraging this relatively new industry to provide 
consumers a valuable service.
    Insurance Consumer Protections. The Committee will examine 
the regulatory systems established by the States to protect 
consumers' insurance interests. The Committee will also examine 
the practice of recording consumer inquiries 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, long term care 
insurance, insurance pension programs, 401(k)s, as well as 
nursing care insurance and other old age insurance programs. 
The Committee's focus will include newly marketed hybrid 
insurance instruments that incorporate features of securities 
and banking products. The Committee will examine whether 
seniors' assets are being adequately protected and whether 
Federal and State financial regulators are ensuring that 
seniors' products are being properly regulated without any gaps 
in functional oversight.
    Risk Retention Act. The Committee will conduct a review of 
alternative risk transfer arrangements to determine their 
effectiveness in offering consumers alternatives to traditional 
property and casualty insurance products. The Committee will 
focus particularly on the Risk Retention Act of 1981 and its 
1986 amendments.
    Preemption of State Insurance Law. The Committee will 
review 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.
    Professional Liability Insurance. The Committee will 
examine the current crisis in many sectors of professional 
liability insurance to determine whether further efficiencies 
and reforms are needed to abate the crisis.
    Insurance Litigation Reform. The Committee will review 
issues surrounding reform of asbestos insurance settlements, 
examining the reasonableness of fees and compensation awarded, 
determining to what degree the settlements serve the parties' 
interests, and considering how these costs effect the property 
and casualty insurance marketplace. In particular, the 
Committee will focus on the effect of excessive asbestos awards 
on other insurance consumers, including the impact on the long 
term affordability and availability of property and casualty 
insurance for consumers.
    Holocaust Claims. The Committee will review efforts to 
ensure that restitution is made to Holocaust victims and heirs 
for confiscated bank accounts or payable insurance claims. The 
Committee will monitor the agreement of the German insurance 
industry to provide $275 million to pay Holocaust-era insurance 
claims and fund humanitarian purposes under an agreement with 
the international commission supervising the payment of claims.
    Mold. The Committee will continue to investigate the 
potential deleterious effect of mold on homeowners and its 
effect on the insurance marketplace. The Committee will pay 
particular attention to the Center for Disease Control's 
literature review regarding the effects of indoor exposure to 
mold which is expected this spring.
    Natural Disaster Insurance. The Committee will review the 
availability and affordability of natural disaster insurance 
for homeowners, and will consider proposals for improving 
insurers' access to capital in the reinsurance, banking, and 
securities markets to ensure adequate capacity and solvency of 
the industry to meet consumer needs. The Committee will pay 
particular attention to the potential benefits of natural 
disaster securitization, catastrophic reinsurance, and proper 
long-term reserving.
    Homeowners' Insurance--Price Controls, Underwriting 
Criteria, and Availability. The Committee will continue its 
review of the ongoing crisis in homeowners' insurance 
availability in several States, including how State price 
controls diminish long term supply and options for coverage. 
The Committee will also examine how well different insurers' 
underwriting criteria are causally linked to future claims 
paying estimates, and the impact of such criteria on the 
homeowners' marketplace. This examination may potentially 
include how insurance claims and inquiries are scored, and how 
financial characteristics unrelated to a consumer's insurance 
history are factored into the sale of homeowners' insurance 
policies.
    Corporate-Owned Life Insurance. The Committee may review 
the practice of companies obtaining life insurance policies for 
certain employees, including any notifications given to those 
employees.

                           Securities Issues

    Sarbanes-Oxley Implementation. The Committee will monitor 
and review the implementation of the Sarbanes-Oxley Act, 
including agency regulatory actions and the work of the Public 
Company Accounting Oversight Board created by the Act.
    Capital Formation. The Committee will review regulatory 
impediments to capital formation and seek both regulatory and 
market-based incentives for capital formation, including 
initial public offering (IPO) allocation, the role of venture 
capital providers, and ways to provide further incentives to 
enhance the supply of venture capital.
    Investor Restitution. The Committee will examine the 
adequacy of investor restitution regulations and whether 
additional measures are necessary to make defrauded investors 
whole.
    Double Taxation of Corporate Dividends. The Committee will 
examine the President's proposal to eliminate the double 
taxation of corporate dividends and its impact on investors and 
the capital markets.
    Mutual Fund Fees. The Committee will undertake an 
examination of current trends in mutual fund fees, including 
the adequacy of disclosure to shareholders and the efficacy of 
that disclosure in promoting fee-based competition. Included in 
this review will be an examination of the benefits of providing 
dollar-specific fee information to investors on trade 
confirmations and/or shareholder account statements.
    Portfolio Transaction Expenses in Mutual Funds. The 
Committee will examine the transparency of portfolio 
transaction expenses incurred by mutual funds and consider the 
benefits to shareholders of requiring that those expenses be 
included in funds' expense ratios, as well as what impact 
enhanced transparency of those expenses would have on churning 
by portfolio managers.
    Rule 12b-1. The Committee will review the role of 12b-1 
marketing fees and whether investors are benefiting from 
economies of scale as a result of 12b-1 plans. The Committee 
will also review whether changes to Rule 12b-1 are necessary as 
a result of developments in fund distribution.
    Revenue Sharing Payments. The Committee will also examine 
revenue-sharing payments, also called distribution fees, made 
by mutual funds to brokerage firms to get access to their 
brokers. The Committee will explore the transparency of these 
arrangements, which may create conflicts of interest, and 
whether regulatory action is warranted.
    Soft-Dollar Practices. The Committee will examine the role 
of ``soft-dollar'' arrangements (such as providing computers or 
office space in lieu of payment) and the regulation and 
transparency of those arrangements, as well as their impact on 
investors, in particular with respect to mutual fund investors.
    International Accounting Practices. The Committee will 
review the work of the International Accounting Standards Board 
and the impact and importance of international accounting 
standards.
    Securities Investor Protection Corporation. The Committee 
will review the operations of the Securities Investor 
Protection Corporation and proposals to improve its 
effectiveness.
    Credit Rating Agencies. The Committee will examine the role 
of credit rating agencies, including whether there are 
conflicts of interest that should be disclosed to investors, 
and whether there are any barriers to entry.
    Money Laundering. The Committee will examine the potential 
use of mutual funds in money laundering, and consider what 
regulatory steps may be necessary to combat such activity.
    Reducing Barriers to Efficiency for Mutual Fund 
Shareholders. The Committee will review the impact of certain 
restrictions under section 17(a) of the Investment Company Act 
of 1940 on the efficiency of trading by mutual funds, in 
particular, in light of increasing affiliations among financial 
services firms in the wake of Gramm-Leach-Bliley.
    The Role of Mutual Funds in the Technology Bubble. The 
Committee will examine the role that mutual funds played in the 
creation of the so-called ``technology bubble,'' with a focus 
on the hundreds of technology and Internet funds established in 
the 1990's.
    Corporate Governance. The Committee will examine the role 
and actions of directors of public companies and mutual funds, 
to ensure shareholders' interests are being served.
    Portfolio Transparency. The Committee will consider ways to 
improve transparency of mutual fund holdings to investors, 
including the proposed rule currently under consideration at 
the SEC.
    Proxy Voting. The Committee will monitor the implementation 
of the Commission's rule requiring funds to disclose the votes 
they cast on behalf of their shareholders.
    Securities Future Products. The Committee will review 
efforts to implement the provisions of the Commodity Futures 
Modernization Act of 2000 with regard to the trading of futures 
contracts based on securities. The Committee will undertake an 
analysis of the rules proposed thus far and their effectiveness 
in promoting broad and liquid security futures markets in the 
United States.
    Retirement Plan Management. The Committee, working with 
other Committees of jurisdiction, will examine the factors that 
influence selection of fund managers by retirement plan 
trustees.
    Market Structure. The Committee will review recent 
developments in the structure of the U.S. capital markets to 
determine what regulatory or other changes might further 
benefit competition and improve prices for investors.
    Investor Education and Literacy. The Committee will 
continue to promote efforts to increase investor education, 
with a focus on fees and expenses, particularly in the mutual 
fund area.
    Analyst Conflicts. The Committee will monitor the 
implementation of new rules affecting securities analysts to 
evaluate their efficacy in fighting conflicts of interest.
    Investment Banks and Accounting Fraud. The Committee will 
review the report by the GAO on the role of investment banks in 
the Enron collapse.
    IPO Allocation. The Committee will review current practices 
regarding allocation of IPOs and proposals to improve this 
process to increase investor access to IPOs as well as market 
efficiency and transparency.
    Financial Markets and the 9/11 Terrorist Attacks. The 
Committee will review studies pertaining to the recovery of the 
financial markets from 9/11 terrorist attacks and disaster 
recovery planning efforts by financial regulatory agencies and 
the financial services industry.
    Hedge Funds. The Committee will monitor the review by the 
SEC of the regulation of hedge funds, and consider the 
implications to U.S. markets if the hedge fund business were to 
move offshore. The Committee will also examine the access to 
hedge funds by investors and the risk disclosures that hedge 
fund investors must receive.

                    Government Sponsored Enterprises

    Federal Home Loan Bank System. The Committee will monitor 
various regulatory initiatives undertaken by the Federal 
Housing Finance Board, which oversees the Federal Home Loan 
Bank System, including proposals to allow members of the System 
to belong to more than one of the twelve Federal Home Loan Bank 
districts, and to require the Federal Home Loan Banks to 
register the capital stock they sell to members with, and 
periodically report to, the Securities and Exchange Commission 
(SEC), under the Securities Exchange Act of 1934.
    GSEs and Financial Disclosure. In July 2002, Fannie Mae and 
Freddie Mac agreed to voluntarily register their common stock 
under the Securities Exchange Act of 1934. Registration under 
the Act triggers periodic disclosure requirements about the 
financial condition and management of companies that issue 
securities. The Committee will examine transparency and market 
discipline for the Government Sponsored Enterprises, including, 
and the status of, the voluntary registration by Fannie Mae and 
Freddie Mac under the Securities Exchange Act of 1934, the 
contents and recommendations of the study on MBS disclosure, 
and proposed financial disclosure by the Federal Home Loan 
Banks.
    OFHEO's Risk-based Capital Standard. During the 107th 
Congress, the Office of Federal Housing Enterprise Oversight 
(OFHEO) finalized a risk-based capital rule for Fannie Mae and 
Freddie Mac. This regulation specifies the stress test to be 
used in determining the risk-based capital requirements for the 
two GSEs and, along with the minimum leverage capital 
requirement, the capital classifications for purposes of 
possible supervisory action. The Committee will hold hearings 
to review the initial stress test results, OFHEO's proposed 
changes to the risk-based capital rule, OFHEO's enforcement of 
the rule, and related safety and soundness issues, such as GSE 
interest rate risk management and duration gap.
    GSE Regulatory Restructuring. Regulation of the housing 
GSEs is widely dispersed. The Office of Federal Housing 
Enterprise Oversight, an independent office within the 
Department of Housing and Urban Development, regulates the 
safety and soundness of Fannie Mae and Freddie Mac. HUD 
regulates Fannie Mae and Freddie Mac for mission compliance by 
setting affordable housing goals, approving new business 
activities, and conducting fair lending reviews. Similarly, the 
Federal Home Loan Banks are regulated by the Federal Housing 
Finance Board, an independent agency within the executive 
branch. Its purpose is to ensure that the FHLBs operate in a 
financially safe and sound manner and carry out their 
affordable housing and community investment mission programs. 
The Committee will examine whether the existing GSE regulatory 
structure should be reformed, whether the supervisory and 
enforcement powers of GSE regulators should be strengthened, 
and whether funding for GSE regulators should be subject to the 
Congressional appropriations process.

                             Housing Issues

    Mortgage Finance Reform/Real Estate Settlement Procedures 
Act. The Committee may conduct additional hearings on the 
Department of Housing and Urban Development's (HUD's) proposed 
Real Estate Settlement Procedures Act (RESPA) rule. On July 29, 
2002, HUD published its proposed rule to reform the Real Estate 
Settlement Procedures Act in the Federal Register (Vol. 67, No. 
145) for a 90-day public comment period ending on October 28, 
2002. The proposed rule addresses the issue of loan originator 
compensation, reforms HUD's Good Faith Estimate (GFE) 
settlement cost disclosures and removes other regulatory 
barriers to allow guaranteed packages of settlement services 
and mortgages offered to consumers. The Committee held a 
hearing on the proposed RESPA rule on October 3, 2002, and 
heard testimony from the Secretary of Housing and Urban 
Development, Mel Martinez. A second hearing on the RESPA rule 
will allow industry and consumer groups the opportunity to 
express their views on the proposed rule.
    Annual Budget Review of Housing and Urban Development, 
Rural Housing Service, National Reinvestment Corporation and 
the National Flood Insurance Program. During each session of 
the 108th Congress, the Committee will conduct a hearing to 
consider the Administration's proposal for the budget request 
for the coming fiscal year. The Committee will review and hear 
testimony from the Administration on those budgets under the 
jurisdiction of the Housing Subcommittee. Testimony is expected 
from the Department of Housing and Urban Development, Rural 
Housing Service, National Reinvestment Corporation and the 
National Flood Insurance Program.
    Federal Housing Administration. The Committee may conduct a 
hearing to review recent increases in Federal Housing 
Administration (FHA) default rates. HUD insures mortgages and 
loans made by HUD-approved lenders for a wide variety of 
purposes, including new construction, rehabilitation, property 
improvement, and refinancing in connection with a wide variety 
of types of property. FHA programs include all types of 
residential property (multifamily, single family, manufactured 
homes), nonresidential commercial property, hospitals and 
certain other healthcare facilities. These efforts are designed 
to encourage lenders to make credit more readily available and 
at lower rates for various purposes that might otherwise go 
unmet. Recent reports indicate that the FHA mortgage insurance 
program is operating with very high delinquency rates. The 
number of single family FHA loans reported to be delinquent (at 
least 30 days past due) was 11.62 percent at the end of the 3rd 
quarter of 2002. The number of FHA loans in the foreclosure 
process was 2.46 percent. This is compared to a 3.04 percent 
delinquency rate and 1.15 percent in the foreclosure process 
for conventional loans at the end of the 3rd quarter of 2001.
    HUD Management Reform and Staffing. The Committee will 
conduct a comprehensive review of HUD's management and staffing 
initiatives implemented in the past five years. Even though GAO 
has removed HUD's designation as a ''high risk'' agency (first 
assigned in 1994) about 70 percent of the agency's programs are 
still classified by the GAO as at high-risk for waste, fraud, 
and abuse. Weaknesses continue in HUD's single-family mortgage 
insurance and rental housing assistance programs. With a 
significant number of Federal workers scheduled to retire in 
the next five to ten years, the Committee will investigate the 
technical and administrative needs of the agency to determine 
ways to assist the agency in continuing to meet its statutory 
obligations.
    HOPE VI. The Committee will conduct a comprehensive review 
of the HOPE VI program to facilitate a meaningful 
reauthorization process. The HOPE VI program is a demolition 
and revitalization program designed specifically to address 
problems with severely distressed public housing developments. 
This program provides incentives for Public Housing Authorities 
(PHAs) and private entities to form partnerships and create 
mixed-finance and mixed-income affordable housing. The 
activities permitted under HOPE VI include, but are not limited 
to: the capital cost of demolition, major reconstruction, 
rehabilitation and other physical improvements. As part of its 
review, the Committee will consider greater access for smaller 
PHAs. In addition, otherreforms and questions will be reviewed 
by the Committee, such as displacement of existing tenants and the net 
loss of affordable housing units.
    HUD Related Reauthorizations. The Committee will review, 
for appropriate action, expired--and expiring--authorizations 
relating to HUD.
    Section 8. The Committee will conduct a comprehensive 
review of the Section 8 program. There is considerable concern 
over the rising costs of the Section 8 program, which consumes 
over 50 percent of the total HUD discretionary budget each 
fiscal year. Concern has been expressed about unspent Section 8 
funds that have accumulated in the reserve accounts of some 
Public Housing Authorities (PHAs). The Committee's review will 
include an in-depth look at the formulas used, administrative 
fees, reserve accounts, HUD's administration of the program, 
and the consequences of recaptured Section 8 funds.
    Public Housing. The Committee may conduct a comprehensive 
review of the Public Housing program, including HUD's 
implementation of the program, the trends in operating subsidy, 
capital modernization, the role of the private sector in 
potential investment and finance of rehabilitation and 
modernization, and the role of Federal funds in the public 
housing account to train and employ existing PHA tenants as 
authorized under section 3 of the Housing and Urban Development 
Act of 1968.
    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 and Hispanics is in the 40th 
percentile. The Committee will focus on homeownership disparity 
in order to fine-tune government policies, practices, and 
incentives that may preclude successful lending and ownership.
    National Flood Insurance Program. On January 13, 2003, the 
President signed legislation to reauthorize the National Flood 
Insurance Program (NFIP) through December 31, 2003 (Public Law 
108-3). This one year reauthorization will allow the Committee 
to conduct a comprehensive review of the program and to 
consider changes to make the program more cost effective.
    Rural Housing Service Multifamily Program/Rural Housing 
Prepayment. The Committee will review the Rural Housing Service 
(RHS) multifamily rental programs, specifically housing laws 
prohibiting prepayment of the debt of government-financed 
mortgage loans and recent trends in multifamily rural 
production in the loan guarantee and direct loan programs.
    Community Development Block Grants. The Committee will 
review the Community Development Block Grant (CDBG) program and 
focus on management and operation of the program, including the 
timely expenditure of CDBG funds.
    Oversight of the Housing Authority of New Orleans and the 
Puerto Rico Public Housing Authority. On June 4, 2001, the 
Subcommittee on Oversight and Investigations held a hearing on 
the problems associated with the Housing Authority of New 
Orleans (HANO). The Committee will continue its review of HANO 
to determine if HUD's administrative receivership has lead to 
significant improvements in both HUD's and HANO's management 
and operation. In addition, 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 and Rural Housing Service Financial and 
Information Systems. The Committee will conduct a comprehensive 
review of the financial and information systems at HUD and RHS. 
The lack of timely and comprehensive information continues to 
hamper both HUD and RHS' ability to monitor the progress of 
programs and the use of its funds. The delay in the 
distribution of funds to communities continues to be a source 
of frustration for State and local governments and non-profit 
organizations. Over the years, significant funds have been 
spent to modernize financial and information systems; yet HUD 
and RHS are still unable to provide pertinent data necessary to 
monitor and administer the programs under its jurisdiction. The 
Committee will investigate how best to address this crucial 
problem.
    Oversight of HUD's Public Housing Assessment System. The 
Committee will review HUD's Public Housing Assessment System 
(PHAS) programs. The promise of the use of technology to 
streamline the PHAS has yet to be realized. In fact, it is only 
being used by project-based public housing programs.
    Faith-based Housing Initiatives. The Committee may conduct 
an oversight hearing on the participation of faith-based 
organizations in certain HUD programs. Over the years, Congress 
has enacted several provisions of law--known as ``charitable 
choice'' provisions that are intended to expand the involvement 
of faith-based groups in the delivery of a variety of the 
social programs. Congress has not enacted any similar law in 
the context of housing programs. On December 16, 2002, 
President Bush issued Executive Order 13279, Equal Protectionof 
the Laws for Faith-Based and Community Organizations, which requires 
HUD to revise its regulations to implement the President's faith-based 
initiative. On January 6, 2003, HUD issued proposed regulations, 
designed to further enhance the participation of faith-based 
organizations in certain HUD programs. (Participation in HUD Programs 
by Faith Based Organizations: Providing for Equal Treatment of All HUD 
Program Participants; Proposed Rule, 68 Federal Register 648, January 
6, 2003.)
    Homelessness. The Committee may conduct hearings on the 
issue of homelessness, including an analysis of the estimated 
number and profile of homeless persons in America, a review of 
HUD programs which provide housing and services to the 
homeless, and a review of the adequacy of those programs and 
funding levels in addressing the problem of homelessness.
    Housing Production. The Committee may conduct a hearing or 
series of hearings on the extent to which the existing housing 
stock meets the demand for affordable housing by low-income 
families, seniors, and disabled persons; a review of existing 
housing programs which are used in the construction or 
substantial rehabilitation of affordable housing units; and 
strategies for developing additional affordable housing units.
    Housing Preservation. The Committee may conduct a hearing 
on the issue of preservation of federally assisted housing. 
Issues may include the ongoing impact of Section 8 opt-outs and 
prepayments on the stock of affordable housing, review of the 
implementation of the 1997 Mark-to-Market legislation, and 
review of the implementation of the mark-up-to-market and 
enhanced vouchers provisions of Title V of the FY 2000 VA-HUD 
Appropriations bill.
    Fraud in the Housing Industry. The Committee will examine 
national and regional incidents of fraud in the housing and 
mortgage industry, its impact on the housing market and the 
affordability of mortgages, the response of Federal and State 
regulators, private financial institutions, and government 
sponsored enterprises, and the use of appraisals in this type 
of fraud.

                          Economic Development

    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. 
Reauthorization will be considered when appropriate.
    Reauthorization of the Defense Production Act. The 
Committee will review the performance of the Defense Production 
Act, which expires at the end of the current fiscal year, in 
preparation for its possible reauthorization.
    Community Development Financial Institutions Fund. In 
reviewing the expired authorization of the Community 
Development Financial Institutions (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.

                 Federal Agencies/Agency Program Issues

    Management/Reform of the Federal Reserve System. The 
Committee will conduct oversight of the operations of the 
Federal Reserve System, including the System's management 
structure, its role in providing financial services and in 
handling the clearing of paper checks, as well as its conduct 
of monetary policy. Special attention will be given to possible 
consolidation of operations, use of technology, control and 
oversight mechanisms, budget processes, pay and benefit levels, 
system-wide strategic planning and issues involving security.
    Federal Reserve's Conduct of Monetary Policy. The Committee 
will hold hearings to receive the Chairman of the Federal 
Reserve Board of Governor's semi-annual reports on the conduct 
of monetary policy. As part of this effort, the Committee will 
review issues associated with monetary policy and the state of 
the economy, such as developments in employment, productivity, 
and investment.
    Oversight of Agency Management Practices and Outcomes. The 
Committee will conduct oversight of the operations of all 
agencies under its jurisdiction to ensure disclosure of all 
material assets, liabilities, and costs of operations; to 
review agencies' measures taken to minimize waste and 
inefficiency; to assess the impacts of agency actions on the 
financial services industry; and to determine if the agencies 
are operating at the most efficient level of resources. The 
Committee will require the Federal regulators to report on the 
state of the financial services industry in order to alert 
Congress to any emerging weaknesses and supervisory measures 
being taken to counter suchweaknesses. The Committee will 
review, for appropriate action, expired--and expiring--authorizations 
relating to the agencies.
    Economic Security. The Committee will explore the need for 
Federal economic and financial regulators to prepare for and 
provide a coordinated response to economic events which 
threaten the Nation's economic security.

               Coins, Currency And Payment System Issues

    Management of the Nation's Money: Activities of the Bureau 
of the Mint and the Bureau of Engraving and Printing. The 
Committee will conduct oversight of the activities of these 
Treasury bureaus as they relate to the printing and striking of 
U.S. currency and coins, and of the financing and minting of 
circulating and commemorative coins. The Committee will review 
the efficiency and productivity of these bureaus' manufacturing 
operations, as well as the Numismatic Public Enterprise Fund. 
Technical changes to the authorizing statute for the latter 
will also be considered. The Committee will conduct oversight 
of issues relating to the circulation patterns of coins and 
currency, with an eye towards maximizing their availability and 
usefulness while minimizing the cost to taxpayers. In 
particular the Committee will focus on issues relating to the 
new one-dollar coin, including circulation patterns, U.S. Mint 
production-allocation decisions, a true unit cost of production 
for the dollar and other coins, management of the dollar-coin 
program throughout its life to date, the type and nature of the 
Mint's expenditures on outside advertising and public relations 
firms for this and other initiatives. The Committee also will 
analyze and conduct appropriate oversight related to recent 
Treasury Office of Inspector General reports relating to the 
Mint and Bureau of Engraving and Printing covering security, 
hiring, real-estate use and similar issues, and will consider 
the need for a U.S. Mint museum in Washington, D.C.
    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, threats posed to critical 
infrastructures such as the payments system, and new-technology 
methods of authenticating transactions and minimizing fraud.
    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. Particular attention 
will be paid to anti-counterfeiting successes by the United 
States Secret Service, especially in South America, and to ways 
those efforts can be made even more effective. The Committee 
will also monitor the migration of the Secret Service from the 
Treasury department to the new Department of Homeland Security, 
to ensure that the restructuring will not diminish the 
service's anti-counterfeiting effectiveness. Also, the 
Committee will examine the integrity of other countries' 
currencies, including counterfeiting of those currencies, to 
monitor any threats posed to the U.S. or world economies, and 
consider proposals to allow the Bureau of Engraving and 
Printing to aid other countries in efforts to strengthen the 
security of their currencies.
                                 PART B

  IMPLEMENTATION OF THE OVERSIGHT PLAN OF THE COMMITTEE ON FINANCIAL 
              SERVICES FOR THE ONE HUNDRED EIGHTH CONGRESS

                              ----------                              


                     International Financial Issues

    Annual report and testimony by the Secretary of the 
Treasury on International Monetary Fund Reform and the State of 
the International Financial System. The Committee held hearings 
on the annual report on May 13, 2003, and March 25, 2004. The 
Secretary of the Treasury testified at each hearing on progress 
in reforming the International Monetary Fund (IMF), the status 
of efforts to reform the broader international financial 
system, and country compliance with IMF conditions assistance. 
The Committee monitored other developments in this area 
throughout the 108th Congress.
    Basel Capital Accord. On February 27, 2003, the 
Subcommittee on Domestic and International Monetary Policy, 
Trade, and Technology held a hearing entitled ``The New Basel 
Accord--Sound Regulation or Crushing Complexity?'' The 
Subcommittee on Financial Institutions and Consumer Credit held 
a hearing on June 19, 2003, entitled ``The New Basel Accord: In 
Search of a Unified U.S. Position'' and another hearing on June 
22, 2004, entitled ``The New Basel Accord: Private Sector 
Perspectives.'' All of these hearings examined the impact of 
the new Basel Accord on the U.S. financial markets and the 
progress of the agreements.
    On November 3, 2003, the bipartisan leadership of the 
Financial Services Committee submitted their comments on the 
Advanced Notice of Proposed Rulemaking issued by Federal 
banking regulators regarding the Basel Capital Accord (68 Fed. 
Reg. 45900, No. 149 (2003)), which cited specific concerns with 
the Accord during the advanced notice of proposed rulemaking. 
They also requested that the Federal banking regulators provide 
to the Committee various impact assessments for different 
sectors of the U.S. economy.
    On June 23, 2004, the Chairman and Ranking Member of the 
full Committee also sent a letter to the Federal financial 
regulators encouraging them to make additional changes to the 
Accord prior to adopting a final rule. The Committee examined 
whether the proposed new capital charges will have a 
discriminatory effect on U.S. financial institutions and 
whether there are any other potential unintended consequences 
stemming from the proposed Accord. The Committee also requested 
that the Federal Reserve provide a series of impact studies 
estimating the impact that the new capital framework would have 
on various aspects of the United States economy. Some of these 
studies have been completed; others will be completed in 2005. 
Through the Committee's efforts, the regulators made several 
significant changes to the Basel II proposal.
    Financial Services Committee staff met periodically with 
Federal banking regulators to receive updates and provide 
feedback on Basel Committee issues.
    Export-Import Bank of the United States. In the 108th 
Congress, the Committee continued its oversight of the Export-
Import Bank (Ex-Im) of the United States. On May 6th, 2004, the 
Subcommittee on Domestic and International Monetary Policy, 
Trade, and Technology held a hearing entitled ``Oversight of 
the Export-Import Bank of the United States.'' During this 
hearing, the Honorable Philip Merrill, President and Chairman 
of the Bank, discussed a variety of issues including the 
Export-Import Bank Reauthorization Act of 2002 (Public Law 107-
189). This legislation made significant changes to the 
operation of the ''Tied Aid'' program and strongly encouraged 
the Bank to increase its transactions with small businesses. 
The Committee also urged Ex-Im to closely scrutinize 
transactions subject to anti-dumping and countervailing duty 
determinations.
    On September 10, 2003, the Committee received a report from 
the Government Accountability Office entitled: ``Export Credit 
Agencies: Movement toward Common Environmental Guidelines, but 
National Differences Remain'' (GAO-03-1093). This report was 
requested by the Chairman of the House Committee on 
International Relations, the Chairman of the Subcommittee on 
Domestic and International Monetary Policy, Trade, and 
Technology and the Chairman of the Subcommittee on Europe.
    Also on September 10, 2003, the Chairman and the Ranking 
Member of the full Committee and the Chairman and the Ranking 
Member of the Domestic and International Monetary Policy, 
Trade, and Technology Subcommittee wrote a letter to the Ex-Im 
board of directors concerning guarantees of loans to Malden 
Mills, a 1,200 employee high-tech textile manufacturer and 
exporter.
    On August 11, 2004, Richard C. Shelby, Chairman, and Paul 
S. Sarbanes, Ranking Minority Member of the Senate Committee on 
Banking, Housing, and Urban Affairs and Michael G. Oxley, 
Chairman, and Barney Frank, Ranking Minority Member of the 
Committee on FinancialServices received a GAO report titled 
``Export-Import Bank: OMB's Method for Estimating Bank's Loss Rates 
Involves Challenges and Lacks Transparency'' (GAO-04-531) which calls 
for reforms of the Office of Management and Budget's (OMB) methodology. 
That report was received by the Committee on September 30, 2004. The 
report examines the methodology used by the Ex-Im Bank of the United 
States to set expected loss rates for purposes of estimating its net 
future losses which will be subsidized by the United States taxpayers. 
The report expresses concern regarding the shift towards using 
corporate default rates in the Ex-Im formulas and the lack of 
transparency regarding recovery rate data within the Bank.
    U.S. Contributions to the International Financial 
Institutions. The Committee continued to review U.S. 
participation in, and the effectiveness of, U.S. policy toward, 
the IMF, the World Bank Group, and the regional multilateral 
development banks (MDBs) in the 108th Congress. In addition to 
the oversight of key issues related to the international 
financial institutions during the testimony and questioning of 
the Secretary of the Treasury concerning the state of the 
international financial system, the Committee undertook a range 
of oversight actions.
    On October 29, 2003, the Subcommittee on Domestic and 
International Monetary Policy, Trade, and Technology held a 
hearing entitled, ``World Bank Lending to Iran.'' On April 22, 
2004, Chairman Oxley, Ranking Member Frank, and Mrs. Judy 
Biggert, Vice Chairman of the Domestic and International 
Monetary Policy, Trade, and Technology Subcommittee met with 
the Honorable Roberto Lavagna, Minister of Finance of 
Argentina, senior finance ministry officials, and Ambassador 
Jose Octavio Bordon to discuss the status of Argentina's debt 
to public and private bondholders.
    North American Development Bank. While the Committee did 
not engage in any specific oversight activities on the North 
American Development Bank, the Committee reported legislation 
to facilitate its activities on February 25, 2003. That 
legislation, H.R. 254, was enacted on April 5, 2004 (Public Law 
108-215). The Committee continued to monitor the operations of 
the NADBank through the 108th Congress.
    Trade in Financial Services. With passage of the Trade 
Promotion Authority Act (Public Law 107-210), the Chairman and 
Ranking Minority Member of the full Committee were named to the 
Congressional Oversight Group on Trade. In this capacity, the 
Committee was active in the oversight of trade negotiations 
with Chile, Singapore, Australia, Morocco, Bahrain, and as well 
as with the Central American countries. On April 1, 2003, the 
Subcommittee on Domestic and International Monetary Policy, 
Trade, and Technology held a hearing entitled, ``Opening Trade 
in Financial Services--The Chile and Singapore Examples'' to 
examine the Chile and Singapore free trade agreements.
    The Committee staff consulted regularly with staff of the 
U.S. Trade Representative on matters within the jurisdiction of 
the Committee. As part of its oversight responsibilities, the 
Committee monitored negotiations for increased trade 
liberalization and consulted with U.S. counterparts to these 
negotiations.
    The Chairman of the full Committee also wrote letters 
supporting efforts for greater free trade in the Central 
American and Australian markets. On December 16, 2003, the 
Chairman sent a letter to United States Trade Representative 
Robert Zoellick encouraging the Ambassador to press for full 
liberalization of insurance services within the negotiations 
for the Central American Free Trade Agreement. On February 3, 
2004, he sent a letter to Trade Representative Zoellick 
encouraging him to press for greater market access to the 
Australian banking market for U.S. banks.
    International Corporate Governance Issues. On May 13, 2004, 
the full Committee held a hearing entitled, ``The US-EU 
Regulatory Dialogue and its Future.'' Witnesses included 
representatives from the Treasury Department, Federal Reserve 
Board, Securities and Exchange Commission (SEC), Public Company 
Accounting Oversight Board (PCAOB) and European Commission. At 
this hearing, the Committee received testimony from Dr. 
Alexandre Schaub, Director General, Directorate General for the 
Internal Market, European Commission. The Committee also 
received testimony from the PCAOB regarding its plans for 
implementing the Sarbanes-Oxley Act of 2002 (Public Law 107-
204) internationally and the first testimony from the 
Securities and Exchange Commission regarding its new 
relationship with the Committee of European Securities 
Regulators.
    On June 17, 2004, the Subcommittee on Domestic and 
International Monetary Policy, Trade, and Technology held a 
follow-up hearing entitled, ``The US-EU Regulatory Dialogue: 
The Private Sector Perspective.'' Witnesses included 
representatives of the banking and securities industries as 
well as academia. The Committee monitored other developments in 
this area throughout the 108th Congress.
    International Debt Relief. On April 20, 2004, the 
Subcommittee on Domestic and International Monetary Policy, 
Trade, and Technology held a hearing entitled ``HIPC Debt 
Relief: Which Way Forward?'' This hearing was held to receive a 
GAO report entitled, ``Developing Countries: Challenges in 
Financing Poor Countries'' Economic Growth and Debt Relief 
Targets'' (GAO-04-688T), which included estimates of thelikely 
cost to U.S. taxpayers of the High Indebted Poor Countries (HIPC) 
initiatives.
    Administration's Millennium Challenge Account. On June 11, 
2003, the Subcommittee on Domestic and International Monetary 
Policy, Trade, and Technology held a hearing entitled 
``Matching Capital and Accountability--the Millennium Challenge 
Account.'' The Committee continued to monitor developments in 
the establishment of the Millennium Challenge Corporation and 
the Treasury Department's role as a member of the board of 
directors of that corporation.
    Global Fund to Fight AIDS, Tuberculosis and Malaria. 
Although the Committee took no direct oversight action on this 
topic, the Committee monitored the developments in this area 
throughout the 108th Congress.
    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 108th Congress.
    International Monetary Issues: On October 1, 2003, the 
Subcommittee on Domestic and International Monetary Policy, 
Trade, and Technology held a hearing entitled ``China's 
Exchange Rate Regime and its Effects on the U.S. Economy.'' 
This hearing focused on the need for China to adopt market-
based exchange rate policies.
    International Counter-Terrorism Finance Policy. On 
September 30, 2004, the Subcommittee on Domestic and 
International Monetary Policy, Trade, and Technology held a 
joint hearing with the Subcommittee on Oversight and 
Investigations entitled ``Combating International Terrorist 
Financing.'' This hearing built on the earlier work of the 
Committee and the Subcommittee on Oversight and Investigations 
which held numerous hearings and several classified briefings 
on tracking, seizing, and freezing terrorist assets. Through 
its extensive oversight on the topic, the Committee discovered 
that many of the impediments to effectively stopping terrorist 
financing lie outside of the United States' borders, and has 
encouraged the Administration, both formally and informally, to 
take all necessary actions to eliminate avenues for terrorist 
financing at home and abroad.

                         Financial Institutions

    Implementation of USA PATRIOT Act. The Committee held 
multiple oversight hearings on the implementation of the anti-
money laundering and counter-terrorist financing provisions of 
title III of the USA PATRIOT Act (Public Law 107-56). Many of 
the hearings were conducted by the Subcommittee on Oversight 
and Investigations, including a March 11, 2003, review of the 
effectiveness of post-September 11, 2001, efforts to combat 
terrorist financing, an examination of government initiatives 
to freeze the assets of terrorist organizations on September 
24, 2003, and a September 30, 2004, joint hearing with the 
Subcommittee on Domestic and International Monetary Policy 
entitled ``Combating International Terrorist Financing.'' The 
full Committee held a hearing on August 23, 2004, entitled 
``The 9/11 Commission Report: Identifying and Preventing 
Terrorist Financing'' to hear testimony on the recommendations 
of the National Commission on Terrorist Attacks on the United 
States (the 9/11 Commission), which featured testimony from 
senior officials at the Departments of Treasury, Justice, and 
Homeland Security on their efforts to implement Title III of 
the PATRIOT Act.
    Money Laundering. In addition to oversight of government 
and private sector implementation of the USA PATRIOT Act, the 
Committee conducted extensive oversight of a variety of other 
anti-money laundering compliance and enforcement issues. On May 
18, 2004, the Subcommittee on Oversight and Investigations held 
a hearing entitled ``Improving Financial Oversight: Private 
Sector View of Anti-Money Laundering Efforts'' to solicit 
private sector views on the effectiveness of anti-money 
laundering compliance efforts. On June 2, 2004, the 
Subcommittee on Oversight and Investigations held a hearing 
entitled ``Risk Management and Regulatory Failures at Riggs 
Bank and UBS'' that focused on anti-money laundering compliance 
and oversight deficiencies at Riggs Bank of Washington, D.C, 
and the abuse of UBS of the Federal Reserve's ECI program.
    Throughout the 108th Congress, the Committee conducted an 
ongoing review of the Federal banking agencies' anti-money 
laundering examination procedures and enforcement actions, both 
through formal oversight hearings in the Subcommittee on 
Oversight and Investigations and the full Committee and 
numerous staff briefings with relevant regulatory authorities.
    Deposit Insurance Reform. While the Committee proceeded to 
consider legislation to reform the Federal Deposit Insurance 
system, the Committee continued to monitor the operation of the 
current system. On March 4, 2004, the Subcommittee on Oversight 
and Investigations held an oversight hearing on the Federal 
Deposit Insurance Corporation, which featured a detailed 
examination of the financial condition of the deposit insurance 
funds administered by the FDIC.
    Implementation of Gramm-Leach-Bliley Act. The full 
Committee and the Subcommittee on Oversight and Investigations 
reviewed various aspects of the implementation of the Gramm-
Leach-Bliley financial modernization law through a series of 
oversight hearings on the Federal banking agencies under the 
Committee's jurisdiction. In addition,on October 14, 2004, the 
Chairman of the full Committee and its Ranking Minority Member, along 
with nine other senior members of the Committee, filed a comment letter 
with the SEC expressing serious concerns regarding the SEC's proposed 
regulation implementing title II of the Gramm-Leach-Bliley, which 
governs the conduct of certain securities-related activities within 
banking organizations.
    Fair Credit Reporting Act. During the First Session of the 
108th Congress, the Committee held a series of oversight 
hearings on the operation of the national credit reporting 
system, culminating in the enactment of the Fair and Accurate 
Credit Transactions Act on December 4, 2003 (Public Law 108-
159).
    On May 8, 2003, the Subcommittee on Financial Institutions 
and Consumer Credit held a hearing entitled ``The Importance of 
the National Credit Reporting System to Consumers and the U.S. 
Economy'' which focused on the economic benefits of a national 
credit reporting system and current consumer protections under 
the Fair Credit Reporting Act (FCRA), as well as the importance 
of a uniform national credit system to the retail operations of 
commercial users and furnishers of credit reporting data. On 
June 4, 2003, the Subcommittee on Financial Institutions and 
Consumer Credit held a hearing entitled ``The Fair Credit 
Reporting Act: How it functions for Consumers and the Economy'' 
on the role of the States in enforcing the FCRA; how credit 
reports, credit scores, and prescreened information are used by 
the lending, mortgage, consumer finance, insurance, and non-
financial industries; the accuracy of credit reports; and the 
role of national uniform standards in improving markets for 
consumers, including how such uniformity affects the 
availability, affordability, and timeliness of financial 
products and services.
    On June 12, 2003, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled ``The 
Role of FCRA in the Credit Granting Process'' which focused on 
the use of credit reports in the mortgage lending process as 
well as in other forms of consumer lending, including credit 
cards and bank loans. On June 17, 2003, the Subcommittee on 
Financial Institutions and Consumer Credit held a hearing 
entitled ``The Role of FCRA in Employee Background Checks'' 
which focused on the role of the FCRA in employee background 
checks and investigations of employee misconduct, as well as in 
the collection and use of medical information by financial 
services firms.
    On June 24, 2003, the Subcommittee on Financial 
Institutions and Consumer Credit held its final hearing on the 
FCRA, entitled ``Fighting Identity Theft--The Role of FCRA'' 
focusing on current enforcement efforts to apprehend and 
prosecute identity thieves, the experiences of consumers 
victimized by identity theft, and innovative private sector 
efforts to prevent identity theft and assist victims.
    Following enactment of the FACT Act, the Committee 
monitored regulatory implementation of the law, through a 
series of staff meetings with the Federal Trade Commission and 
Federal banking agencies.
    Financial Privacy and Identity Theft. On April 3, 2003, the 
Subcommittees on Financial Institutions and Consumer Credit and 
Oversight and Investigations held a joint hearing entitled 
``Fighting Fraud: Improving Information Security'' to gather 
testimony on instances of information security breaches 
resulting in the disclosure of confidential customer financial 
information. On June 24, 2003, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing on the role of 
the FCRA in helping to combat identity theft, described above.
    Internet Gambling. The Committee continued to monitor the 
use of the payments system to facilitate illegal gambling over 
the Internet. The Committee's continued oversight in this area 
resulted in the passage of legislation (H.R. 2143) by the House 
in the 108th Congress.
    Payments Systems Innovations. During the first session, the 
Committee shepherded the Check Clearing for the 21st Century 
Act to enactment, which focused on improving the check clearing 
process through the use of new technology. The Committee 
monitored implementation of the new law, including numerous 
staff briefings with Federal banking agencies and other 
interested parties, during the remainder of the 108th Congress.
    Credit Unions. On July 20, 2004, the Subcommittee on 
Financial Institutions and Consumer Credit held a hearing 
entitled ``Credit Union Regulatory Improvements'' on proposed 
improvements in the regulatory treatment of credit unions. In 
addition, the Committee examined credit union regulatory issues 
in the context of its consideration of financial services 
regulatory relief legislation (H.R. 1375). On June 19, 2003, 
Chairman Oxley, Ranking Member Frank, and Mr. Sherman requested 
that the GAO study issues relating to the capital or net worth 
requirements applicable to Federally insured credit unions. On 
August 6, 2004, the GAO reported the findings of its study to 
the Committee in its report entitled ``Credit Unions: Available 
Information Indicates No Compelling Need for Secondary 
Capital'' (GAO-04-849).
    Financial Supervision. During the 108th Congress, the 
Committee and its subcommittees exercised continuous oversight 
of the supervision of insured depository institutions, both 
through hearings and staff briefings with relevant Federal 
regulatory agencies. On January28, 2004, the Subcommittee on 
Oversight and Investigations held a hearing entitled ``Congressional 
Review of OCC Preemptions'' and focused on proposed regulations by the 
Office of the Comptroller of the Currency governing the applicability 
of State law to the activities of national banks.
    On March 4, 2004, the Subcommittee held an oversight 
hearing on the Federal Deposit Insurance Corporation, which 
administers the Federal deposit insurance funds as well as 
serving as the primary Federal supervisory authority for over 
5,000 State-chartered banks. On April 1, 2004, the full 
Committee held an oversight hearing on the OCC, which 
supervises some 2,000 national banks. On June 16, 2004, the 
Subcommittee held an oversight hearing on the operations of the 
Department of the Treasury which focused on bank supervision 
and compliance issues. On July 20, 2004, the Subcommittee on 
Financial Institutions and Consumer Credit held a hearing on 
the regulatory supervision of credit unions.
    Regulatory Burden Reduction. On May 12, 2004, the 
Subcommittee on Financial Institutions and Consumer Credit held 
a hearing on proposals to reduce or eliminate regulatory 
burdens on America's community-based banks. On July 20, 2004, 
the Subcommittee on Financial Institutions and Consumer Credit 
held a hearing on legislative proposals to improve the 
regulatory treatment of credit unions.

                          Consumer Protection

    Consumer Protections. The Subcommittees on Financial 
Institutions and Consumer Credit and Housing and Community 
Opportunity held hearings on November 5, 2003, March 30, 2004, 
and June 23, 2004, on preserving access to credit and combating 
abusive practices in the subprime mortgage market. On September 
15, 2004, the Subcommittee on Financial Institutions and 
Consumer Credit held a hearing entitled ``Financial Services 
Issues: A Consumer's Perspective'' which addressed a broad 
range of consumer protection issues.
    On April 2, 2004, the Chairman of the full Committee, the 
Chairman of the Subcommittee on Financial Institutions and 
Consumer Credit and Mr. Garrett of New Jersey wrote to the 
Federal Trade Commission (FTC), requesting the agency's views 
on legislation to amend the Fair Debt Collection Practices Act 
(H.R. 3066). The FTC provided its views to the Committee in a 
letter dated June 23, 2004.
    Credit Card Regulation. On June 24, 2003, the Subcommittee 
on Financial Institutions and Consumer Credit held an oversight 
hearing on the role of the Fair Credit Reporting Act in 
fighting identity theft. The hearing featured testimony from 
major credit card associations and credit card issuers. On 
September 15, 2004, the Subcommittee on Financial Institutions 
and Consumer Credit held a hearing on consumer protection 
issues, including credit card industry practices.
    First Accounts/Electronic Transfer Accounts. Although the 
Committee conducted only limited oversight of the First 
Accounts program, two hearings were held on similar issues 
relating to expanding the availability of basic banking 
services to historically underserved populations. On June 26, 
2003, the Subcommittee on Financial Institutions and Consumer 
Credit held a hearing entitled ``Serving the Underserved: 
Initiatives to Broaden Access to the Financial Mainstream'' 
which focused on public and private sector initiatives to 
broaden access to the financial mainstream by low and moderate-
income consumers.
    On October 1, 2003, the full Committee held a hearing, 
entitled ``Remittances: Reducing Costs, Increasing Competition, 
and Broadening Access to the Market,'' on expanding the 
availability of financial services by reducing costs and 
increasing competition in the rapidly growing market for 
international remittances.
    Enforcement of Anti-tying Laws. On April 29, 2003, Chairman 
Oxley and Ranking Member Frank requested that the GAO conduct a 
review of compliance with and enforcement of Federal anti-tying 
laws, which prohibit commercial banks from conditioning the 
availability or terms of loans or other credit products on the 
purchase of certain other financial products or services. On 
October 10, 2003, the GAO released its report, entitled ``Bank 
Tying: Additional Steps Needed to Ensure Effective Enforcement 
of Tying Prohibitions'' (GAO-04-4).
    Effects of Technological Advances on Residential Real 
Estate Market. On November 4, 2004, Chairman Oxley requested 
that the GAO conduct a study of how the provision of real 
estate services to prospective homebuyers may be affected by 
new forms of information technology and electronic commerce. 
The Committee does not expect to receive the results of that 
study until the 109th Congress.

                          Information Security

    Data Protection. Although the Committee took no direct 
oversight action on this topic, the Committee monitored the 
developments in this area throughout the 108th Congress.
    Antifraud Network. The Subcommittees on Oversight and 
Investigations and Financial Institutions and Consumer Credit 
held a joint hearing on Thursday, April 3, 2003, entitled 
``Fighting Fraud: Improving Information Security.'' This 
hearing was designed to review current industry practices to 
ensure that proper security procedures and protocols are in 
place or are being implemented on how credit issuers, third-
party vendors that process transactions, credit bureaus, and 
lawenforcement coordinate their efforts to limit harm to 
consumers when data security is breached.
    Cybersecurity. The Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
on February 12, 2003, entitled ``Recovery and Renewal: 
Protecting the Capital Markets against Terrorism Post-9/11'' to 
examine measures put in place since the attacks of September 
11, 2001, to protect the financial markets in case of a 
terrorist attack. These measures were further examined by the 
full Committee in a hearing held on September 8, 2004, entitled 
``Protecting Our Financial Infrastructure: Preparation and 
Vigilance'' which examined the preparedness of the financial 
services sector in light of the ``Code Orange'' alert declared 
in the summer of 2004.
    On Monday, October 20, 2003, the Subcommittee on Oversight 
and Investigations held a hearing entitled, ``Government and 
Industry Efforts to Protect Our Money During Blackouts, 
Hurricanes, and Other Disasters.'' The Subcommittee reviewed 
the private financial sector response to these events to 
determine if recommendations from the President through 
Executive Order 13231 of October 2001, and Presidential 
Decision Directive 63 stemming from 9/11 failures had been 
implemented and carried out during the August 2003 blackout. 
The Order created Governmental committees to plan a response to 
attacks against American assets critical to the continued 
normal operation of a variety of sectors, including the 
financial sector. Officials of the Treasury Department, Federal 
Reserve System, SEC, other financial regulators, and financial 
services companies responded to the blackout by implementing 
arrangements established by those directives and cooperative 
arrangements among the various sectors and minimized the impact 
on banking and financial institutional customers and investors.
    Committee staff continues to be briefed by various 
financial services sector representatives and regulators to 
ensure that safeguards remain in place against both physical 
and cyber threats.
    Electronic Signatures and E-Commerce. Although the 
Committee took no direct oversight action on this topic, the 
Committee monitored the developments in this area throughout 
the 108th Congress.

                               Insurance

    Insurance Solvency, Market Conduct, and Agent Licensing 
Regulation. The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises held hearings on this and 
related issues on April 10 and November 5, 2003, and March 31, 
2004.
    On April 10, 2003, the Capital Markets subcommittee held a 
hearing entitled ``The Effectiveness of State Regulation: Why 
Some Consumers Can't Get Insurance.'' This hearing focused on 
the unavailability of personal insurance for consumers in 
States and the lack of capital for the insurance industry as a 
whole. The Subcommittee heard testimony from the Director of 
the South Carolina Department of Insurance, representatives 
from several trade associations, and an economist.
    On November 5, 2003, the Capital Markets Subcommittee held 
a hearing entitled ``Reforming Insurance Regulation--Making the 
Marketplace More Competitive for Consumers.'' The hearing 
focused on the status of National Association of Insurance 
Commissioners (NAIC) initiatives to modernize State insurance 
regulation and the prospects for State-based reform. The 
hearing also reviewed other proposed solutions to increase the 
efficiency and uniformity of insurance regulation. The 
Subcommittee heard testimony from several State insurance 
officials, representatives from State legislatures, and 
executives from several trade associations and industry groups.
    On March 31, 2004, the Capital Markets Subcommittee held a 
hearing entitled ``Working with State Regulators to Increase 
Insurance Choices for Consumers.'' The purpose of the hearing 
was to examine how to make State insurance regulation more 
efficient, uniform, and effective for consumers. Witnesses 
testifying before the Subcommittee included several State 
insurance officials and representatives from various trade 
associations as well as marketplace participants and analysts.
    Insurance Product Approval. The Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held 
hearings which discussed the process for insurance product 
approval on November 5, 2003, and March 31, 2004.
    National Insurance Uniformity. In order to better 
understand the current structure of insurance regulation, the 
Chairman of the full Committee asked the GAO to conduct a 
review of all Federal insurance programs in which the Federal 
government is responsible for all or part of the risk. The GAO 
has not finalized this report but has briefed the Committee on 
its work on an ongoing basis. The Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held 
hearings on national insurance uniformity on April 10, 2003, 
November 5, 2003, and March 31, 2004.
    Terrorism Insurance. On April 2, 2004, the Chairman of the 
full Committee asked the GAO to conduct a review of the 
progress made by the Treasury Department and the insurance 
industry in implementing the provisions of the Terrorism Risk 
Insurance Act of 2002 (TRIA), as well as changes in the market 
for terrorism insurancecoverage under TRIA. The GAO presented 
its findings in a report entitled ``Terrorism Insurance: Implementation 
of the Terrorism Risk Insurance Act of 2002'' (GAO-04-307) on April 28, 
2004, at a joint hearing of the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises and the Subcommittee on 
Oversight and Investigations entitled ``A Review of TRIA and its Effect 
on the Economy: Helping America Move Forward.''
    Workers Compensation Insurance. The Committee examined 
workers compensation insurance issues within the context of its 
oversight over terrorism insurance. The Committee monitored 
developments in this area throughout the 108th Congress.
    Insurance Marketing. In response to revelations that 
members of the military had been sold inappropriate insurance 
products under questionable circumstances, the Subcommittee on 
Capital Markets, Insurance, and Government Sponsored 
Enterprises held a hearing on insurance marketing to military 
service personnel entitled ``G.I. Finances: Protecting Those 
Who Protect Us'', on September 9, 2004. The Subcommittee 
hearing led to Committee action on H.R. 5011, the Military 
Personnel Financial Services Protection Act.
    Insurance Fraud. Although the Committee took no direct 
oversight action on this topic, the Committee monitored 
developments in this area throughout the 108th Congress.
    Insurance Consumer Protections. The Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held 
hearings on April 10, 2003, November 5, 2003, March 31, 2004, 
and September 9, 2004, that covered issues related to insurance 
consumer protections.
    Senior Retirement Needs. The Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held a 
hearing on senior retirement needs entitled ``Retirement 
Security: What Seniors Need to Know about Protecting Their 
Futures'', on May 15, 2003. The Committee monitored 
developments in this area throughout the 108th Congress.
    Risk Retention Act. On January 2, 2004, the Chairman asked 
the GAO to assess how well risk retention groups and risk 
purchasing groups established under the 1986 Risk Retention Act 
have achieved their intended purposes. The GAO has not 
finalized this report, but has briefed the Committee on its 
work on an ongoing basis. The Committee has monitored other 
developments in this area throughout the 108th Congress.
    Preemption of State Insurance Law. The Subcommittee on 
Capital Markets, Insurance, and Government Sponsored 
Enterprises held hearings which covered this issue on November 
5, 2003, and March 31, 2004.
    Professional Liability Insurance. Although the Committee 
took no direct oversight action on this topic, the Committee 
monitored developments in this area throughout the 108th 
Congress.
    Insurance Litigation Reform. Although the Committee took no 
direct oversight action on this topic, the Committee monitored 
developments in this area throughout the 108th Congress.
    Holocaust Claims. Although the Committee took no direct 
oversight action on this topic, the Committee monitored 
developments in this area throughout the 108th Congress.
    Mold. The Committee continued to monitor developments 
concerning the risks associated with exposure to mold and poor 
indoor air as discussed at a Committee hearing in the 107th 
Congress, including receipt by the Committee of a study 
released in May 2004, by the Centers for Disease Control (CDC) 
entitled, ``Damp Indoor Spaces and Health.''
    Natural Disaster Insurance. On February 2, 2004, the 
Chairman asked the GAO to undertake a study on the ability of 
U.S. consumers to purchase insurance for potentially 
catastrophic losses caused by natural disasters, as well as the 
extent to which such losses would be covered by existing 
insurance policies. Other areas of investigation include 
potential barriers to the issuance of catastrophe bonds as well 
as the tax and accounting treatment of long-term catastrophic 
insurance risks in various foreign countries. The GAO has not 
finalized this report but has briefed the Committee on its work 
on an ongoing basis.
    The Committee also examined natural disaster insurance 
issues within the context of oversight of terrorism insurance 
and monitored other developments in this area throughout the 
108th Congress.
    Homeowners' Insurance-Price Controls, Underwriting Criteria 
and Availability. This topic was covered in the Subcommittee on 
Capital Markets, Insurance, and Government Sponsored 
Enterprises hearings on April 10, 2003, November 5, 2003, and 
March 31, 2004.
    Corporate Owned Life Insurance. Although the Committee took 
no direct oversight action on this topic, the Committee 
monitored developments in this area throughout the 108th 
Congress.

                           Securities Issues

    Sarbanes-Oxley Implementation. The Committee held a hearing 
on September 17, 2003, on the actions of the Public Company 
Accounting Oversight Board (PCAOB), created under title I of 
the Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley). On February 4, 
2004, the Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprisesheld a hearing on the new 
standards of attorney professional conduct promulgated under Sarbanes-
Oxley. The Subcommittee on Capital Markets, Insurance, and Government 
Sponsored Enterprises held a hearing on June 24, 2004, on the PCAOB's 
registration and inspections of public accounting firms and auditing, 
quality control and ethics standards setting. On July 22, 2004, the 
Committee held a hearing to examine the impact of Sarbanes-Oxley on 
public companies and public accounting firms. Throughout the 108th 
Congress, the PCAOB regularly briefed the Committee staff on its 
rulemaking proceedings.
    Capital Formation. The Subcommittee on Oversight and 
Investigations held a hearing on July 15, 2004, entitled 
``Diversity in the Financial Services Industry and Access to 
Capital for Minority-Owned Businesses: Challenges and 
Opportunities.'' The hearing examined, among other things, the 
access to capital of minority-owned businesses. On September 
15, 2004, the SEC briefed the Subcommittees on Oversight and 
Investigations and Capital Markets, Insurance, and Government 
Sponsored Enterprises on small business capital formation. The 
Subcommittee on Oversight and Investigations held a hearing on 
September 23, 2004, entitled ``Encouraging Small Business 
Growth and Access to Capital,'' to examine regulatory 
impediments and incentives to the capital formation of small 
businesses.
    Investor Restitution. The Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
on February 26, 2003, entitled ``It's Only FAIR: Returning 
Money to Defrauded Investors,'' to examine the SEC's efforts in 
returning monies to defrauded investors.
    Double Taxation of Corporate Dividends. The Subcommittee on 
Oversight and Investigations held a hearing entitled ``Paying 
Dividends: How the President's Tax Plan Will Benefit Individual 
Investors'' on March 18, 2003, to examine the impact on 
investors and the capital markets of the President's proposal 
to eliminate the double taxation of corporate dividends.
    Mutual Fund Fees, Portfolio Transaction Expenses in Mutual 
Funds, Rule 12b-1, Revenue Sharing Payments, and Soft Dollar 
Practices. The Chairman of the full Committee and the Chairman 
of the Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises sent a letter on January 7, 
2003, to the Chairman of the SEC and the Chairman of the 
National Association of Securities Dealers (NASD) requesting 
information relating to the investigation of brokers' failure 
to award breakpoint discounts to eligible mutual fund 
investors. They also asked the GAO on January 14, 2003, to 
conduct a study on mutual fund fees and expenses and the 
disclosure and transparency of these costs, including the 
topics listed above. This study, entitled ``Mutual Funds: 
Greater Transparency Needed in Disclosures to Investors'' (GAO-
03-763), was completed and released in June 2003.
    The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises held a hearing entitled 
``Mutual Fund Industry Practices and their Effect on Individual 
Investors'' on March 12, 2003, to examine these issues. On 
March 26, 2003, the Chairman of the Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises sent a 
letter to the Chairman of the SEC requesting information 
relating to mutual fund fees.
    This work resulted in Committee approval of H.R. 2420, the 
Mutual Funds Integrity and Fee Transparency Act of 2003, a bill 
designed to encourage fee-based competition among mutual funds, 
on July 23, 2003. After the Committee completed its action on 
the measure, the Chairman of the full Committee and the 
Chairman of the Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises sent a letter on July 30, 
2003, to the Chairman of the SEC requesting that the SEC use 
its existing regulatory authority to implement certain 
provisions of H.R. 2420 not requiring legislative action.
    The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises continued its work on this 
matter, holding two days of hearings on November 4, 2003, and 
November 6, 2003, entitled ``Mutual Funds: Who's Looking Out 
for Investors.'' That hearing focused on mutual fund fees and 
related issues.
    International Accounting Practices. In January 2004, the 
SEC briefed the Committee staff regarding its investigation 
into the accounting irregularities at Parmalat SpA. Among the 
issues discussed at the hearings held by the Subcommittee on 
Domestic and International Monetary Policy, Trade, and 
Technology on May 13 and June 17, 2004, on the U.S.-E.U. 
Regulatory Dialogue was the convergence of accounting standards 
promulgated by the Financial Accounting Standards Board (FASB) 
and the International Accounting Standards Board (IASB).
    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 108th Congress.
    Credit Rating Agencies. In January 2003, the Committee 
received a report, ``The Role and Function of the Credit Rating 
Agencies,'' from the SEC pursuant to a requirement in Sarbanes-
Oxley. The Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises held hearings to examine 
credit rating agencies on April 2, 2003, and September 14, 
2004. The Chairman of the Subcommitteeon Capital Markets, 
Insurance, and Government Sponsored Enterprises sent a letter on April 
10, 2003, to the Chairman of the SEC requesting information relating to 
credit rating agencies. This information was provided in June 2003.
    Money Laundering. The matter of money laundering and 
terrorist financing through the use of brokerage accounts and 
the capital markets was discussed in the context of the 
Committee's overall efforts to conduct oversight over anti-
money laundering and terrorist financing operations. For more 
detail, see those entries earlier in this section.
    Reducing Barriers to Efficiency for Mutual Fund 
Shareholders. Although the Committee took no direct oversight 
action on this topic, the Committee monitored the developments 
in this area throughout the 108th Congress.
    The Role of Mutual Funds in the Technology Bubble. Although 
the Committee took no direct oversight action on this topic, 
the Committee monitored the developments in this area 
throughout the 108th Congress.
    Corporate Governance. In addition to the oversight 
activities on mutual funds described above, which included a 
review of mutual fund corporate governance, the Subcommittee on 
Capital Markets, Insurance, and Government Sponsored 
Enterprises held a hearing on the new standards of attorney 
professional conduct promulgated under the Sarbanes-Oxley Act 
on February 4, 2004.
    On March 11, 2004, the Chairman of the Full Committee and 
the Chairman of the Subcommittee on Capital Markets, Insurance, 
and Government Sponsored Enterprises, along with three 
Senators, sent a letter to the Chairman of the SEC in support 
of the SEC's proposed rule requiring independent chairmen at 
mutual fund companies. The Chairman of the full Committee also 
sent a letter on May 20, 2004, to the Chairman of the SEC in 
support of the SEC's proposed rule requiring independent 
chairmen at mutual fund companies.
    On June 24, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``Oversight of the Public Company Accounting Oversight 
Board'' which focused on the PCAOB's registration and 
inspections of public accounting firms and auditing, quality 
control and ethics standards setting.
    On July 21, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
entitled ``Shell Games: Corporate Governance and Accounting for 
Oil and Gas Reserves. This hearing focused on Shell Oil 
Company's accounting for oil and gas reserves and corporate 
governance structure.
    The full Committee also held a hearing to examine the 
impact of Sarbanes-Oxley on public companies and auditing 
firms, including those provisions strengthening corporate 
governance at public companies, on July 22, 2004, entitled 
``Sarbanes/Oxley: Two Years of Market and Investor Recovery.''
    Portfolio Transparency. The Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises 
hearing held on March 12, 2003, covered the issue of portfolio 
transparency among mutual fund companies.
    Proxy Voting. Although the Committee took no direct 
oversight action on this topic, the Committee monitored the 
developments in this area throughout the 108th Congress.
    Securities Futures Products. Although the Committee took no 
direct oversight action on this topic, the Committee monitored 
the developments in this area throughout the 108th Congress.
    Retirement Plan Management. Although the Committee took no 
direct oversight action on this topic, the Committee monitored 
the developments in this area throughout the 108th Congress.
    Market Structure. On October 16, 2003, the Subcommittee on 
Capital Markets, Insurance, and Government Sponsored 
Enterprises held a hearing entitled ``Reviewing U.S. Capital 
Market Structure: The New York Stock Exchange and Related 
Issues'' to examine the role of the New York Stock Exchange 
(NYSE) as a self-regulatory organization. On October 30, 2003, 
the Subcommittee on Capital Markets, Insurance, and Government 
Sponsored Enterprises held a hearing entitled ``Reviewing U.S. 
Capital Market Structure: Promoting Competition in a Changing 
Trading Environment'' which focused on promoting competition in 
the national market system.
    The Chairman of the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises sent a letter 
on February 10, 2004, to the Chairman of the SEC calling for 
the elimination of the trade-through rule. On February 20, 
2004, the Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises held a field hearing entitled 
``Market Structure III: The Role of the Specialist in the 
Evolving Modern Marketplace'' examining the role of specialists 
and their modern-day functions.
    On May 18, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
on Regulation NMS, the SEC's proposed reform of market 
structure entitled ``The SEC Proposal on Market Structure: How 
will Investors Fare?'' On May 24, 2004, the Chairman of the 
Subcommittee on Capital Markets, Insurance, and Government 
Sponsored Enterprises sent a letter to the Chairman of the SEC 
expressing his concerns that the NYSE wassoliciting its member 
firms to oppose the SEC's proposed Regulation NMS. He also sent a 
letter to the SEC Chairman on July 23, 2004, requesting information 
relating to market data fees and dissemination. This information was 
provided in September 2004.
    Investor Education and Literacy. Although the Committee 
took no direct oversight action on this topic, the Committee 
monitored the developments in this area throughout the 108th 
Congress.
    Analyst Conflicts. Although the Committee took no direct 
oversight action on this topic, the Committee monitored the 
developments in this area throughout the 108th Congress.
    Investment Banks and Accounting Fraud. Although the 
Committee took no direct oversight action on this topic, the 
Committee monitored the developments in this area throughout 
the 108th Congress.
    IPO Allocation. Although the Committee took no direct 
oversight action on this topic, the Committee monitored the 
developments in this area throughout the 108th Congress.
    Financial Markets and the 9/11 Terrorist Attacks. The 
Subcommittee on Capital Markets, Insurance, and Government 
Sponsored Enterprises held a hearing on February 12, 2003, 
entitled ``Recovery and Renewal: Protecting the Capital Markets 
Against Terrorism Post-9/11,'' to examine measures put in place 
since September 11, 2001, to protect the financial markets in 
case of a terrorist attack. These measures were further 
examined by the full Committee in its September 8, 2004, 
hearing entitled ``Protecting our Financial Infrastructure: 
Preparation and Vigilance''.
    Hedge Funds. The Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
on the regulatory issues and trading practices of hedge funds 
on May 22, 2003, entitled ``The Long and Short of Hedge Funds: 
Effects of Strategies for Managing Market Risk''. In September 
2003, the Committee staff received a briefing from the SEC on 
its staff report, ``The Implications of the Growth of Hedge 
Funds,'' released on September 29, 2003.
    Stock Option Accounting. The Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises held 
two days of hearings April 21 and May 4, 2004, entitled ``The 
FASB Stock Options Proposal: Its Effect on the U.S. Economy and 
Jobs.'' That hearing focused on the economic impact of FASB's 
stock option expensing proposal.
    The Committee's oversight activities on this issue led to 
House passage of H.R. 3574, the Stock Option Accounting Reform 
Act, a bill requiring the expensing of stock options granted to 
the chief executive officer and the four other most highly 
compensated executives. The Chairman of the full Committee, the 
Chairman of the Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises, and seven other members of 
the Congress sent a letter on November 19, 2004, to the SEC 
Chairman requesting a delay in the implementation of FASB's 
stock option expensing proposal.
    529 Plans. On February 4, 2004, the Chairman of the full 
Committee sent a letter to the Chairman of the SEC expressing 
concern about the excessive fees and lack of disclosure 
associated with 529 state tuition savings plans. On June 2, 
2004, the Subcommittee on Capital Markets, Insurance, and 
Government Sponsored Enterprises held a hearing entitled 
``Investing in the Future: 529 State Tuition Plans.'' On July 
15, 2004, the Chairman of the full Committee sent another 
letter to the SEC Chairman recommending specific reforms 
relating to the costs and disclosure requirements of 529 plans.
    Abusive Financial Product Sales to Military Personnel. On 
September 9, 2004, the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held a hearing 
on abusive sales of financial products, including contractual 
plans, to military personnel. On September 29, 2004, the 
Committee passed H.R. 5011, the Military Personnel Financial 
Services Protection Act, a bill, which, among other things, 
prevents the future sales of contractual plans. The House 
passed H.R. 5011 on October 5, 2004. The Senate did not 
consider the bill before the end of the session.
    Subprime Lending. On June 14, 2004, the Subcommittee on 
Capital Markets, Insurance, and Government Sponsored 
Enterprises held a field hearing entitled ``Broken Dreams in 
the Poconos: The Response of the Secondary Markets and 
Implications for Federal Legislation.'' This hearing focused on 
the abuses present in the secondary mortgage market and 
subprime lending.
    SEC Hiring Authority. The Chairman of the full Committee 
and the Chairman of the Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises sent letters to 
the Chairman of the SEC on January 8 and 30, 2003, requesting 
information relating to the hiring of SEC employees. The 
Committee's oversight efforts on this issue led to the 
enactment of H.R. 658, the Accountant, Compliance, and 
Enforcement Staffing Act of 2003, (Public Law 108-44).

                    Government Sponsored Enterprises

    Federal Home Loan Bank System. The Committee monitored 
regulatory initiatives undertaken by the Federal Housing 
Finance Board (FHFB), including proposals to require the 
Federal Home Loan Banks to register the capital stock they sell 
with the SEC, under the Securities Exchange Act of 1934. On 
July 13, 2004, the Oversight and Investigations and the Capital 
Markets, Insurance, and GovernmentSponsored Enterprises 
Subcommittees held a joint hearing to examine the operations of the 
Office of Federal Housing Enterprise Oversight (OFHEO) and the Federal 
Housing Finance Board.
    GSEs and Financial Disclosure. In July 2002, Fannie Mae and 
Freddie Mac agreed to voluntarily register their common stock 
under the Securities Exchange Act of 1934. Registration under 
the Act triggers periodic disclosure requirements about the 
financial condition and management of companies that issue 
securities. Freddie Mac has not filed with the SEC due to its 
accounting restatement. The Committee closely followed the 
Freddie Mac restatement process through hearings and briefings. 
Fannie Mae registered with the SEC, but, in 2004, Fannie Mae 
failed to file its fourth quarter form 10Q with the SEC. The 
Committee will continue to ensure that both of the GSEs fulfill 
their agreements to register with the SEC and comply with 
relevant securities laws.
    OFHEO's Risk-based Capital Standard. During the 108th 
Congress, the Committee reviewed the Risk-based Capital Stress 
Test results, OFHEO's proposed changes to the Risk-based 
Capital Rule, OFHEO's enforcement of the rule, and related 
safety and soundness issues, such as GSE interest rate risk 
management and duration gap in both public hearings and in 
staff briefings.
    GSE Regulatory Restructuring. In June 2003, Freddie Mac 
announced a major management reorganization following 
accounting irregularities at the GSE. This announcement led to 
investigations by the Committee and by the GSE regulator, 
OFHEO, into the causes of this reorganization. The Committee 
held hearings on the regulatory oversight of the GSEs on 
September 10 and 25, 2003. The Subcommittee on Capital Markets, 
Insurance, and Government Sponsored Enterprises held hearings 
on OFHEO's special examinations of Freddie Mac and Fannie Mae 
on January 21 and October 6, 2004. The majority of the 
Committee's oversight has been focused on the accounting 
restatement of Freddie Mac, the special examinations by OFHEO, 
and proposals to reform the regulatory oversight of both Fannie 
Mae and Freddie Mac.
    The Committee has examined whether the existing GSE 
regulatory structure should be reformed, whether the 
supervisory and enforcement powers of GSE regulators should be 
strengthened, and whether funding for GSE regulators should be 
subject to the Congressional appropriations process. Chairman 
Baker introduced H.R. 2575 on June 23, 2004. This legislation 
created a new GSE regulator with enhanced oversight powers. The 
Committee held several hearings on the GSE regulatory structure 
following the finding of accounting irregularities at both 
Fannie Mae and Freddie Mac, and will continue to consider 
regulatory restructuring proposals in the 109th Congress.
    Affordable Housing Goals. In early 2004 it was discovered 
that the GSEs engaged in several transactions valued in excess 
of $1 billion with several financial institutions designed to 
meet the GSEs' affordable housing goals. Through these 
transactions the GSEs would pay the financial institutions a 
fee, or grant them some other privilege, in order to obtain the 
right to securitize qualified mortgages. The Committee and HUD 
engaged in a broad investigation into the details of these 
transactions and determined that there were no violations of 
the law; however, there was evidence of double counting of 
mortgages to reach the goals. HUD issued a rule during the 
108th Congress raising the required level of affordable housing 
activity by the GSEs. The Committee closely monitored the 
process and rational behind this change in the affordable 
housing goals and will continue to do so in the 109th Congress.

                             Housing Issues

    Mortgage Finance Reform/Real Estate Settlement Procedures 
Act (RESPA). The Subcommittee on Housing and Community 
Opportunity held a hearing on February 25, 2003, entitled 
``Simplifying the Home Buying Process: HUD's Proposal to Reform 
RESPA.'' On December 1, 2003, the Chairman of the full 
Committee sent a letter to the Department of Housing and Urban 
Development (HUD) regarding the RESPA proposed rule and 
requested that any rewritten or amended proposal be published 
as a proposed rule in the Federal Register to provide an 
opportunity for further public comment. In late December 2003, 
HUD sent its final RESPA rule to OMB for review. On March 22, 
2004, the Acting Secretary of Housing and Urban Development 
withdrew the final rule and indicated plans to revise and 
reissue the rule.
    Annual Budget Review of Housing and Urban Development, 
Rural Housing Service, National Reinvestment Corporation and 
the National Flood Insurance Program. The Administration 
proposed $31.3 billion in FY 2004 budget authority for HUD. 
During the review of the FY 2004 budget proposal, the full 
Committee held a hearing on March 5, 2003, to review housing 
and related programs under its jurisdiction, which include 
those programs at HUD, the National Flood Insurance Program, 
the Rural Housing Service and the Neighborhood Reinvestment 
Corporation.
    On February 2, 2004, the Administration presented its 
proposed FY 2005 budget to Congress, requesting $31.5 billion 
for HUD, which is approximately one percent above the $31.2 
billion enacted for FY2004. On May 20, 2004, the Subcommittee 
on Housing and Community Opportunity held a hearing to examine the HUD 
FY 2005 budget proposal and received testimony from the Secretary of 
Housing and Urban Development.
    Federal Housing Administration. In addition to the general 
oversight hearings on HUD and its proposed budgets for FY 2004 
and 2005, the Subcommittee on Housing and Community Opportunity 
examined a number of oversight issues in the context of its 
legislative hearings on bills addressing the operation of the 
FHA.
    During the 108th Congress, the Chairman of the Subcommittee 
on Housing and Community Opportunity requested five GAO studies 
on issues related to the FHA. These studies and requested dates 
are October 21, 2003, concerning the performance of FHA and 
other loans that involve down payment assistance, October 21, 
2003, concerning the loan commitment authorities of FHA and the 
Rural Housing Service, September 8, 2004, concerning FHA's 
TOTAL Scorecard, and September 22, 2004, concerning credit 
subsidy reestimates and actuarial soundness of HUD's Mutual 
Mortgage Insurance Fund.
    HUD Management Reform and Staffing. The Committee reviewed 
issues related to HUD's management and staffing through the 
annual review of the proposed budgets for FY 2004 and FY 2005. 
Those hearings were held on March 5, 2003, and May 20, 2004, 
respectively.
    HOPE VI. The Subcommittee on Housing and Community 
Opportunity held a hearing, entitled ``Strengthening and 
Rejuvenating our Nation's Communities and the HOPE VI 
Program,'' on April 29, 2003. This hearing resulted in the 
enactment of legislation extending the HOPE VI authorization 
through 2006 and reforming the program, which was incorporated 
into S. 811, the American Dream Downpayment Act (Public Law 
108-186). As a result of the hearings, the program's 
authorization was extend through 2006 with changes in the 
program structure to allow smaller communities, without Public 
Housing Authorities, to use HOPE VI grants to leverage other 
private and public sector funds to rehabilitate small, rural 
downtown areas for affordable housing.
    HUD Related Authorizations. The full Committee and 
Subcommittee on Housing and Community Opportunity reviewed HUD 
programs and related authorizations through the annual review 
of the proposed budgets for FY 2004 and 2005, on March 5, 2003, 
and May 20, 2004, respectfully.
    Section 8. The Subcommittee held five hearings related 
specifically to the Housing Choice Voucher Program, commonly 
referred as the section 8 rental assistance program or Federal 
rental assistance program. Those hearings were held on May 22, 
June 10, June 17, July 1, and July 29, 2003. Moreover, the 
Committee addressed these issues with the Secretary of Housing 
and Urban Development at the annual budget hearings held on 
March 5, 2003, and May 20, 2004.
    In addition to the oversight hearings on the status of the 
Housing Choice Voucher Program, the Chairman of the 
Subcommittee on Housing and Community Opportunity requested two 
GAO studies regarding the operation of the program. The first, 
requested on October 21, 2003, concerned errors and 
overpayments in HUD's rental assistance program. The second 
study, requested on June 2, 2004, concerned late Housing 
Assistance Payments made by HUD.
    Minorities and Homeownership. While neither the full 
Committee nor the Subcommittee on Housing and Opportunity held 
specific hearings on minorities and homeownership, the full 
Committee and Subcommittee covered these issues in the context 
of other hearings. Specifically, the February 25, 2003, hearing 
entitled ``Simplifying the Home Buying Process: HUD's Proposal 
to Reform RESPA,'' the March 25 and April 28, 2003, hearings on 
faith-based housing programs, the April 29, 2003, hearing on 
HOPE VI programs, the June 19, 2003, hearing entitled ``Rural 
Housing in America,'' the June 30, 2003, hearing entitled 
``Community Development Block Grants: The Impact of CDBG on our 
Communities,'' the May 5, 2004, hearing on Native American 
housing programs, and the March 18, 2004, hearing on housing 
counseling programs. Also, the Subcommittee on Housing and 
Community Opportunity held joint hearings on subprime lending 
with the Subcommittee on Financial Institutions and Consumer 
Credit on March 30, and June 23, 2004.
    National Flood Insurance Program. The Subcommittee held an 
oversight hearing on April 1, 2003, entitled ``The National 
Flood Insurance Program: Review and Reauthorization'' which 
addressed the National Flood Insurance Program reauthorization 
and any suggested reforms. The Committee's activities on this 
issue resulted in the enactment of S. 2238, the Bunning-
Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (Public 
Law 108-264).
    Rural Housing Service Multifamily Program/Rural Housing 
Pre-payment. On June 19 and July 8, 2003, the Subcommittee on 
Housing and Community Opportunity held two days of hearings 
entitled ``Rural Housing in America.'' These hearings began an 
extensive review of the various rural housing programs under 
the RHS to determine what changes, if any, were necessary to 
make the programs more efficient, cost effective and better 
able to meet the needs of low- and moderate-income families in 
rural areas.
    As a follow-up to hearings held by the Committee in 2003, 
the Chairman of the Subcommittee on Housing and Community 
Opportunityrequested several GAO studies regarding housing 
programs under the RHS' jurisdiction. These studies and requested dates 
are June 25, 2003, concerning the Rural Housing Service's Section 521 
rental assistance program (``Rural Housing Service: Agency has 
Overestimated Its Rental Assistance Budget Needs over the Life of the 
Program.'' May 20, 2004. GAO-04-752.), October 21, 2003, concerning 
information on the loan commitment authority of the Rural Housing 
Service, and November 17, 2003, concerning how the Rural Housing 
Service defines eligible (rural) service areas (``Rural Housing: 
Changing the Definition of Rural Could Improve Eligibility 
Determinations.'' December 1, 2004).
    Community Development Block Grants. The Committee on 
Financial Services held a hearing on March 5, 2003, to review 
housing programs under its jurisdiction, including the 
Community Development Block Grant program at HUD. In addition, 
on May 20, 2004, the Subcommittee on Housing and Community 
Opportunity held a hearing to examine the HUD FY 2005 budget 
proposal. The Subcommittee heard testimony from the Secretary 
of Housing and Urban Development.
    On June 30, 2003, the Subcommittee on Housing and Community 
Opportunity held a field hearing entitled ``Community 
Development Block Grants: The Impact of CDBG on Our 
Communities.'' The hearing focused on the history of the 
program, including the timely expenditure of CDBG funds and 
management and operation of the program.
    Oversight of the Housing Authority of New Orleans and the 
Puerto Rico Public Housing Authority. The Committee and 
Subcommittee continued its review of the Housing Authority of 
New Orleans (HANO) to determine if HUD administrative 
receivership has lead to significant improvement in both HUD's 
and HANO's management and operation. During its HUD budget/
oversight hearings on March 5, 2003, and May 20, 2004, the 
Committee also reviewed the measures taken by HUD to correct 
abuse in contracting and program management within all public 
housing authorities, including the Puerto Rico Housing 
Authority, the second-largest public housing authority in the 
country.
    Oversight of HUD and Rural Housing Service Financial and 
Information Systems. On October 21, 2003, the Committee 
requested a GAO evaluation of RHS and HUD Federal Housing 
Administration system for estimating utilization of commitment 
authority and, in the case of programs requiring credit 
subsidy, credit subsidy authority. The lack of timely 
comprehensive information continues to hamper both HUD and RHS' 
ability to monitor the progress of programs and the use of its 
funds. The Committee used its two HUD oversight/budget hearings 
and the rural housing hearings to investigate how best to 
address this crucial problem.
    Oversight of HUD's Public Housing Assessment System. While 
the Committee did not focus a specific hearing on the topic of 
HUD's Public Housing Assessment System (PHAS), it held several 
related hearings that touched on this issue. During its two HUD 
oversight/budget hearings for FY 2004 and FY 2005, the 
Committee realized HUD has yet to use new technology to 
streamline its many programs within the office of Public and 
Indian Housing, including PHAS.
    Faith-based Housing Initiatives. The Subcommittee on 
Housing and Community Opportunity held two days of hearings on 
March 25 and April 28, 2003, entitled ``Strengthening America's 
Communities: Examining the Impact of Faith-Based Housing 
Partnerships''. The focus of that hearing was the potential 
impact of HUD's proposed rule that incorporates Executive Order 
No. 13279, issued on December 12, 2003, into eight Community 
Planning and Development programs.
    On January 6, 2003, the Department of Housing and Urban 
Development (HUD) issued proposed regulations designed to 
further enhance the participation of faith-based organizations 
in certain HUD programs. (``Participation in HUD Programs by 
Faith Based Organizations: Providing for Equal Treatment of All 
HUD Program Participants; Proposed Rule,'' 68 Federal Register 
648, January 6, 2003.) The proposed HUD regulations address 
participation by faith-based organizations in eight programs: 
Housing for Persons with AIDS (HOPWA), Emergency Shelter Grant 
(ESG) Program, Supportive Housing Program (SHP), Shelter Plus 
Care (S+C) program, Youthbuild program, HOPE 3, HOME, and CDBG. 
The hearings provided an opportunity for representatives of 
various organizations to testify on the impact of the proposed 
rule.
    Homelessness. The Financial Services committee held a 
hearing to review the HUD FY 2004 Proposed Budget on March 5, 
2003, and the Subcommittee on Housing and Community Opportunity 
held a hearing to review HUD's FY 2005 Proposed Budget on May 
20, 2004. As part of those hearings the Committee reviewed 
programs and funding levels specific to homelessness.
    Housing Production. The Subcommittee on Housing and 
Community Opportunity held a series of hearings entitled ``The 
Section 8 Housing Assistance Program: Promoting Decent 
Affordable Housing for Families and Individuals that Rent'' 
during the first session of the 108th Congress. In all, the 
Subcommittee held five hearings, three in Washington on May 22, 
June 10 and June 19, 2003, and two field hearings, Los Angeles, 
California on July 1, 2003, and Columbus, Ohio, on July 29, 
2003.
    On June 19 and July 8, 2003, the Subcommittee on Housing 
and Community Opportunity held hearings entitled ``Rural 
Housing in America.'' These hearings looked at the specific 
housing needs of those leaving in rural communities.
    On May 5, 2004, the Subcommittee traveled to Tuba City, 
Arizona, to investigate the housing needs of Native Americans 
and the challenges specific to producing affordable housing for 
those living on the Navajo Reservation.
    Housing Preservation. On December 10, 2002, Chairman Oxley 
and Ranking Minority Member Frank asked the GAO to study the 
preservation of low-income housing rental development before 
they reach mortgage maturity. On July 20, 2004, the 
Subcommittee on Housing and Community held a hearing on the GAO 
report entitled ``Multifamily Housing: More Accessible HUD Data 
Could Help Efforts to Preserve Housing for Low-Income Tenants'' 
(GAO-04-20; January 2004).
    Fraud in the Housing Industry. On February 25, 2003, the 
Committee held a hearing on reform of the Real Estate 
Settlement Procedures Act (RESPA). Many of the provisions 
included in RESPA are designed to prevent fraud within the 
mortgage industry. The Subcommittees on Housing and Community 
Opportunity and Financial Institutions and Consumer Credit held 
three joint hearings on issues related to the topic of 
predatory lending.
    The first joint hearing was held on November 5, 2003, and 
was entitled ``Protecting Homeowners: Preventing Abusive 
Lending While Preserving Access to Credit.'' The hearing 
focused on the subprime mortgage lending industry in the United 
States. In particular, the subcommittees were interested in 
solutions which would eliminate abusive practices in the 
origination process and in the secondary market while, at the 
same time, preserving and promoting access to affordable 
credit.
    The second hearing was held on March 30, 2004, and was 
entitled, ``Subprime Lending: Defining the Market and Its 
Customers.'' The focus of this particular hearing was on the 
growing subprime mortgage lending industry in the United 
States. This hearing focused on exploring the dynamics of the 
subprime market and its ability to offer more customized 
mortgage products to meet customers' varying credit needs. In 
addition, this hearing helped the Subcommittees seek a better 
definition of the typical subprime customer and the advantages 
and disadvantages this market poses to the financial security 
of these consumers. Panelists consisted of industry groups, 
consumer groups, and a host of leading academics in the field.
    The third hearing was held June 23, 2004, and was entitled 
``Promoting Homeownership by Ensuring Liquidity in the Subprime 
Mortgage Market.'' This hearing focused on the role that the 
secondary mortgage market plays in providing liquidity to the 
sub prime industry and creating homeownership opportunities for 
American consumers.
    In addition to the hearings pertaining to predatory lending 
and the subprime market, on October 7, 2004, the Subcommittee 
on Housing and Community Opportunity held a hearing entitled, 
``Mortgage Fraud and its Impact on Mortgage Lenders.'' The 
focus of the hearing was on mortgage fraud and its impact on 
the lender and ultimately the market and was in response to a 
specific investigation conducted by the Federal Bureau of 
Investigation (FBI).
    On September 17, 2004, the FBI announced action against 205 
individuals in the largest nationwide operation in FBI history 
directed at organized groups and individuals engaged in 
mortgage fraud. Called ``Operation Continued Action'', the FBI 
targeted a variety of fraud schemes, including mortgage and 
loan fraud as well as insider fraud, financial institution 
failure investigations, identity theft, check fraud and check 
kiting in 37 states nationwide with more than 533 cases of 
mortgage fraud in 2004 alone. This represents a five-fold 
increase in the number investigated from three years earlier.

                          Economic Development

    Development of Economic Opportunities. With the assistance 
of the GAO, the Committee on Financial Services periodically 
reviewed the Rural Local Broadcast Signal Loan Guarantee 
Program. While the Committee took no direct oversight action, 
it also monitored activities of the Appalachian Regional 
Commission and the Delta Regional Authority.
    Reauthorization of the Defense Production Act. The 
Committee reviewed the operations of the Defense Production Act 
in the context of its reauthorization of the program. These 
efforts led to enactment of S. 1680, the Defense Production Act 
Reauthorization of 2003, (Public Law 108-195).
    Community Development Financial Institutions. Although the 
Committee took no direct oversight action on this topic, the 
Committee monitored the developments in this area throughout 
the 108th Congress.

                 Federal Agencies/Agency Program Issues

    Management/Reform of the Federal Reserve System. On 
February 12, April 30, July 15, 2003, and February 11 and July 
21, 2004, the Committee on Financial Services held wide-ranging 
hearings covering many aspects of the operation of the Federal 
Reserve system and themonetary policy activities of its Board 
of Governors. On April 28, 2004, the Subcommittee on Domestic and 
International Monetary Policy, Trade, and Technology held a hearing 
entitled ``Money Matters: Helping America Move Forward.'' That hearing 
covered issues related to the Federal Reserve's issuance of currency, 
the design of that currency, and the Federal Reserve's role in 
circulation of currency and of coins issued by the Treasury Department 
throughout the country for use in ordinary commerce.
    Federal Reserve Conduct of Monetary Policy. On February 12, 
April 30, July 15, 2003, and February 11 and July 21, 2004, the 
Committee on Financial Services held hearings to receive the 
testimony of the Chairman of the Board of Governors of the 
Federal Reserve System, covering the conduct of monetary policy 
and the state of the economy.
    Oversight of Agency Management Practices. The full 
Committee on Financial Services held a hearing on June 16, 
2004, entitled ``Oversight of the Department of the Treasury.''
    Economic Security. The Subcommittee on Oversight and 
Investigations held a hearing on October 20, 2003, (discussed 
previously under ``Cybersecurity'') to examine government and 
industry efforts to protect the financial markets during times 
of stress, including blackouts, natural disasters or terrorist 
attacks. The hearing focused on a Committee-requested GAO 
report covering the resilience of the nation's critical 
financial infrastructure to withstand such trauma. Further, the 
full Committee on Financial Services held a hearing on 
September 8, 2004, focusing on the resilience and preparedness 
of the financial markets, which also served as a follow-up to 
track compliance with recommendations in the GAO report. On 
October 8, 2004, the House of Representatives, as part of 
consideration of H.R. 10, the 9/11 Recommendations 
Implementation Act, passed language originating in the 
Committee on Financial Services calling for reports on efforts 
to strengthen the resilience of the nation's critical financial 
infrastructure, and urging greater efforts to create regional 
public-private partnerships to protect that infrastructure.

                  Coins, Currency and Payment Systems

    Management of the Nation's Money: Activities of the Bureau 
of Engraving and Printing and the Bureau of the Mint. The 
Subcommittee on Domestic and International Monetary Policy, 
Trade, and Technology held a hearing entitled ``Money Matters: 
Helping America Move Forward'' on April 28, 2004, to discuss 
the design of the nation's circulating coins and currency, 
trends in counterfeiting and issues dealing with the 
circulation of coins and currency in ordinary commerce. Also 
discussed were issues dealing with the operation of the Bureau 
of Engraving and Printing and the Bureau of the Mint. The 
Chairman and Ranking Member of the Subcommittee on Domestic and 
International Monetary Policy, Trade, and Technology have 
outstanding requests for reports from the Government 
Accountability Office: an update of a 1998 GAO report 
recommending that the Bureau of Engraving and Printing seek at 
least one more supplier for currency paper, in advance of the 
letting of new contracts in 2006, and from the Treasury Office 
of Inspector General on the advisability of the Bureau of the 
Mint seeking to transfer the production of the ``blanks'' used 
in coin production to the private sector.
    Electronic Commerce and Payment Systems. On October 1, 
2003, the Full Committee on Financial Services held a hearing 
entitled ``Remittances: Reducing Costs, Increasing Competition 
and Broadening Access to the Market,'' aimed at allowing U.S. 
residents to more efficiently send money home to family members 
in other countries.
    Counterfeiting. The Subcommittee on Domestic and 
International Monetary Policy, Trade, and Technology held a 
hearing on April 28, 2004, on the design and security of 
circulating coins and currency.
    Dollar Coin. The Subcommittee on Domestic and International 
Monetary Policy, Trade, and Technology held a hearing on April 
28, 2004, examining the design and circulation patterns of the 
one-dollar coin. That hearing resulted in Committee 
consideration of H.R. 3916, the Presidential $1 Coin Act, a 
bill which redesigned the one-dollar coin, giving it a design 
that changed quarterly to interest collectors and stimulate 
circulation for use in ordinary commerce similar to the 50 
State quarter program.



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