[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.