[House Report 111-702]
[From the U.S. Government Publishing Office]


111th Congress 
 2d Session             HOUSE OF REPRESENTATIVES                 Report
                                                                111-702
_______________________________________________________________________

                                     

                                                 Union Calendar No. 425


                         REPORT ON THE ACTIVITY

                                 of the

                    COMMITTEE ON FINANCIAL SERVICES

                                for the

                     ONE HUNDRED ELEVENTH CONGRESS




January 3, 2011.--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, 2011.
Hon. Lorraine C. Miller,
Clerk, House of Representatives,
Washington, DC.
    Dear Ms. Miller: Pursuant to clause 1(d) of rule XI of the 
Rules of the House of Representatives for the 111th Congress, I 
present herewith a report on the activity of the Committee on 
Financial Services for the 111th Congress, including the 
Committee's review and study of legislation within its 
jurisdiction, and the oversight activities undertaken by the 
Committee.
            Sincerely,
                                              Barney Frank,
                                                          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.............................    27
Full Committee...................................................    55
Subcommittee on Capital Markets, Insurance, and Government 
  Sponsored Enterprises..........................................    89
Subcommittee on Domestic Monetary Policy and Technology..........   113
Subcommittee on Financial Institutions and Consumer Credit.......   116
Subcommittee on Housing and Community Opportunity................   125
Subcommittee on International Monetary Policy and Trade..........   137
Subcommittee on Oversight and Investigations.....................   145
Oversight Plan for the 111th Congress............................   153
Implementation of the Oversight Plan for the 111th Congress......   182
House Resolution 40 Hearings.....................................   238
Appendix I--Committee Legislation: Committee Reports and Public 
  Laws...........................................................   243
Appendix II--Committee Publications: Committee Hearings and 
  Committee Prints...............................................   244


                                                 Union Calendar No. 425
111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-702

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



 
 REPORT ON THE ACTIVITY OF THE COMMITTEE ON FINANCIAL SERVICES FOR THE 
                             111TH CONGRESS

                                _______
                                

January 3, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

         Mr. Frank, 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 111th 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 111th 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.

    However, on the opening day of the 109th Congress (January 
4, 2005), the following announcement was made by the Speaker:

The SPEAKER. Based on discussions with the relevant committees, 
the further mutual understandings contained in the final two 
paragraphs of the ``Memorandum of Understanding Between Energy 
and Commerce Committee and Financial Services Committee'' dated 
January 30, 2001, shall no longer provide jurisdictional 
guidance.

   RULES OF THE COMMITTEE ON FINANCIAL SERVICES FOR THE ONE HUNDRED 
                           ELEVENTH 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 addition to any other requirement of these rules or 
the Rules of the House, the Chair shall make the record of the 
votes on any question on which a record vote is demanded 
available on the Committee's Web site not later than 2 business 
days after such vote is taken. Such record shall include a 
description of the amendment, motion, order, or other 
proposition, the name of each member voting for and each member 
voting against such amendment, motion, order, or proposition, 
and the names of those members of the committee present but not 
voting.
    (5) 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.
    (6) 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. At the same time the Chair 
provides the information required by the preceding sentence, 
the Chair shall also provide to the members of the Committee a 
final list consisting of the names of each witness who is to 
appear before the Committee at that hearing. The witness list 
may not be modified within 24 hours of a hearing, unless the 
Chair, with the concurrence of the ranking minority member, 
determines there is good cause for such modification.
    (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 a 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 
five minutes to interrogate witnesses until each member of the 
Committee present has been recognized once for that purpose.
    (5) Whenever any hearing is conducted by the Committee on 
any measure or matter, the minority party members of the 
Committee shall be entitled, upon the request of a majority of 
them before the completion of the hearing, to call witnesses 
with respect to that measure or matter during at least one day 
of hearing thereon.

                          Subpoenas and Oaths

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

                           Special Procedures

    (f)(1)(A) Commemorative medals and coins. It shall not be 
in order for the Subcommittee on Domestic Monetary Policy 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.
    (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. The Chair shall provide that the 
                opening statements for all members of the 
                Committee shall be made a part of the hearing 
                record.
          (B) Not withstanding subsection (a)(4), at any 
        hearing of the Committee for the purpose of receiving 
        testimony (other than testimony described in clause (i) 
        or (ii) of subparagraph (A), the Chair may, after 
        consultation with the ranking minority member, limit 
        the duration of opening statements to ten minutes, to 
        be divided between the chair and Chair of the pertinent 
        subcommittee, or the Chair's designees, and ten minutes 
        to be controlled by the ranking minority member, or the 
        ranking minority member's designees. Following such 
        time, the duration for opening statements may be 
        extended by agreement between the Chairman and ranking 
        minority member to be divided at the discretion of the 
        Chair or ranking minority member. The Chair shall 
        provide that the opening statements for all members of 
        the Committee shall be made a part of the hearing 
        record.
          (C) At any hearing of a subcommittee, the Chair of 
        the subcommittee may, in consultation with the ranking 
        minority member of the subcommittee, limit the duration 
        of opening statements to ten minutes, to be divided 
        between the majority and minority. Following such time, 
        the duration for opening statements may be extended by 
        either the Chair of the subcommittee or ranking 
        minority member of the subcommittee for an additional 
        ten minutes each, to be divided at the discretion of 
        the chair of the subcommittee or ranking minority 
        member of the subcommittee. The Chair of the 
        subcommittee shall ensure that opening statements for 
        all members be made part of the hearing record.
          (D) If the chair and ranking minority member acting 
        jointly determine that extraordinary circumstances 
        exist necessitating allowing members to make opening 
        statements, subparagraphs (B) or (C), as the case may 
        be, shall not apply to such hearing.

                                 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.''
    (e) The Chair is directed to offer a motion under clause 1 
of rule XXII of the Rules of the House whenever the Chair 
considers it appropriate.

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

           Referral of Measures and Matters to Subcommittees

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

                      Composition of Subcommittees

    (c)(1) Members shall be elected to each subcommittee and to 
the positions of chair and ranking minority member thereof, in 
accordance with the rules of the respective party caucuses. The 
Chair of the Committee shall designate a member of the majority 
party on each subcommittee as its vice chair.
    (2) The Chair and ranking minority member of the Committee 
shall be ex officio members with voting privileges of each 
subcommittee of which they are not assigned as members and may 
be counted for purposes of establishing a quorum in such 
subcommittees.
    (3) The subcommittees shall be comprised as follows:
          (A) The Subcommittee on Capital Markets, Insurance, 
        and Government Sponsored Enterprises shall be comprised 
        of 50 members, 30 elected by the majority caucus and 20 
        elected by the minority caucus.
          (B) The Subcommittee on Domestic Monetary Policy and 
        Technology shall be comprised of 17 members, 10 elected 
        by the majority caucus and 7 elected by the minority 
        caucus.
          (C) The Subcommittee on Financial Institutions and 
        Consumer Credit shall be comprised of 45 members, 27 
        elected by the majority caucus and 18 elected by the 
        minority caucus.
          (D) The Subcommittee on Housing and Community 
        Opportunity shall be comprised of 25 members, 15 
        elected by the majority caucus and 10 elected by the 
        minority caucus.
          (E) The Subcommittee on International Monetary Policy 
        and Trade shall be comprised of 15 members, 9 elected 
        by the majority caucus and 6 elected by the minority 
        caucus.
          (F) The Subcommittee on Oversight and Investigations 
        shall be comprised of 15 members, 9 elected by the 
        majority caucus and 6 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 ELEVENTH CONGRESS
                    COMMITTEE ON FINANCIAL SERVICES

          (Ratio: 42-29)

   BARNEY FRANK, Massachusetts, 
             Chairman

SPENCER BACHUS, Alabama              PAUL E. KANJORSKI, Pennsylvania
MICHAEL N. CASTLE, Delaware          MAXINE WATERS, California
PETER KING, New York                 CAROLYN B. MALONEY, New York
EDWARD R. ROYCE, California          LUIS V. GUTIERREZ, Illinois
FRANK D. LUCAS, Oklahoma             NYDIA M. VELAZQUEZ, New York
RON PAUL, Texas                      MELVIN L. WATT, North Carolina
DONALD A. MANZULLO, Illinois         GARY L. ACKERMAN, New York
WALTER B. JONES, Jr., North Carolina BRAD SHERMAN, California
JUDY BIGGERT, Illinois               GREGORY W. MEEKS, New York
GARY G. MILLER, California           DENNIS MOORE, Kansas
SHELLY MOORE CAPITO, West Virginia   MICHAEL E. CAPUANO, Massachusetts
JEB HENSARLING, Texas                RUBEN HINOJOSA, Texas
SCOTT GARRETT, New Jersey            WM. LACY CLAY, Missouri
J. GRESHAM BARRETT, South Carolina   CAROLYN McCARTHY, New York
JIM GERLACH, Pennsylvania            JOE BACA, California
RANDY NEUGEBAUER, Texas              STEPHEN F. LYNCH, Massachusetts
TOM PRICE, Georgia                   BRAD MILLER, North Carolina
PATRICK T. McHENRY, North Carolina   DAVID SCOTT, Georgia
JOHN CAMPBELL, California            AL GREEN, Texas
ADAM H. PUTNAM, Florida              EMANUEL CLEAVER, Missouri
MICHELE BACHMANN, Minnesota          MELISSA L. BEAN, Illinois
KENNY MARCHANT, Texas                GWEN MOORE, Wisconsin
THADDEUS McCOTTER, Missouri          PAUL W. HODES, New Hampshire
KEVIN McCARTHY, California           KEITH ELLISON, Minnesota
BILL POSEY, Florida                  RON KLEIN, Florida
LYNN JENKINS, Kansas                 CHARLES A. WILSON, Ohio
CHRISTOPHER LEE, New York            ED PERLMUTTER, Colorado
ERIK PAULSEN, Minnesota              JOE DONNELLY, Indiana
LEONARD LANCE, New Jersey            BILL FOSTER, Illinois
                                     ANDRE CARSON, Indiana
                                     JACKIE SPEIER, California
                                     TRAVIS CHILDERS, Mississippi
                                     WALT MINNICK, Idaho
                                     JOHN H. ADLER, New Jersey
                                     MARY JO KILROY, Ohio
                                     STEVE DREIHAUS, Ohio
                                     SUZANNE KOSMAS, Florida
                                     ALAN GRAYSON, Florida
                                     JIM HIMES, Connecticut
                                     GARY PETERS, Missouri
                                     DAN MAFFEI, New York
                        Subcommittee Memberships

 Subcommittee on Capital Markets, Insurance, and Government Sponsored 
                              Enterprises

          (Ratio: 30-20)

 PAUL E. KANJORSKI, Pennsylvania, 
             Chairman

SCOTT GARRETT, New Jersey            GARY L. ACKERMAN, New York
TOM PRICE, Georgia                   BRAD SHERMAN, California
MICHAEL N. CASTLE, Delware           MICHAEL E. CAPUANO, Massachusetts
PETER KING, New York                 RUBEN HINOJOSA, Texas
FRANK. D. LUCAS, Oklahoma            CAROLYN McCARTHY, New York
DONALD A. MANZULLO, Illinois         JOE BACA, California
EDWARD R. ROYCE, California          STEPHEN F. LYNCH, Massachusetts
JUDY BIGGERT, Illinois               BRAD MILLER, North Carolina
SHELLEY MOORE CAPITO, West Virigina  DAVID SCOTT, Georgia
JEB HENSARLING, Texas                NYDIA M. VELAZQUEZ, New York
ADAM PUTNAM, Florida                 CAROLYN MALONEY, New York
J. GRESHAM BARRETT, South Carolina   MELISSA L. BEAN, Illinois
JIM GERLACH, Pennsylvinia            GWEN MOORE, Wisconsin
JOHN CAMPBELL, California            PAUL W. HODES, New Hampshire
MICHELE BACHMANN, Minnesota          RON KLEIN, Florida
THADDEUS McCOTTER, Michigan          ED PERLMUTTER, Colorado
RANDY NEUGEBAUER, Texas              JOE DONNELLY, Indiana
KEVIN McCARTHY, California           ANDRE CARSON, Indiana
BILL POSEY, Florida                  JACKIE SPEIER, California
LYNN JENKINS, Kansas                 TRAVIS CHILDERS, Mississippi
SPENCER BACHUS, Alabama, ex officio  CHARLES A. WILSON, Ohio
                                     BILL FOSTER, Illinois
                                     WALT MINNICK, Idaho
                                     JOHN ADLER, New Jersey
                                     MARY JO KILROY , Ohio
                                     SUZANNE KOSMAS, Florida
                                     ALAN GRAYSON, Florida
                                     JIM HIMES, Connecticut
                                     GARY PETERS, Michigan
                                     BARNEY FRANK, Massachusetts, ex 
                                     officio
        Subcommittee on Domestic Monetary Policy and Technology


           (Ratio: 10-7)

 MELVIN L. WATT, North Carolina, 
             Chairman

RON PAUL, Texas                      CAROLYN B. MALONEY, New York
MICHAEL N. CASTLE, Delaware          GREGORY W. MEEKS, New York
FRANK D. LUCAS, Oklahoma             WILLIAM LACY CLAY, Missouri
JIM GERLACH, Pennsylvania            BRAD SHERMAN, California
TOM PRICE, Georgia                   AL GREEN, Texas
BILL POSEY, Florida                  EMANUEL CLEAVER, Missouri
LEONARD LANCE, New Jersey            KEITH ELLISON, Minnesota
SPENCER BACHUS, Alabama, ex officio  JOHN ADLER, New Jersey
                                     SUZANNE KOSMAS, Florida
                                     BARNEY FRANK, Massachusetts, ex 
                                     officio
       Subcommittee on Financial Institutions and Consumer Credit

          (Ratio: 27-18)

LUIS V. GUTIERREZ, Illinois, Chair

JEB HENSARLING, Texas                CAROLYN MALONEY, New York
J. GRESHAM BARRETT, South Carolina   MELVIN L. WATT, North Carolina
MICHAEL N. CASTLE, Delware           GARY L. ACKERMAN, New York
PETER KING, New York                 BRAD SHERMAN, California
EDWARD R. ROYCE, California          DENNIS MOORE, Kansas
WALTER B. JONES, North Carolina      PAUL E. KANJORSKI, Pennsylvania
SHELLEY MOORE CAPITO, West Virginia  MAXINE WATERS, California
SCOTT GARRETT, New Jersey            RUBEN HINOJOSA, Texas
JIM GERLACH, Pennsylvania            CAROLYN McCARTHY, New York
RANDY NEUGEBAUER, Texas              JOE BACA, California
TOM PRICE, Georgia                   AL GREEN, Texas
PATRICK T. McHENRY, North Carolina   WM. LACY CLAY, Missouri
JOHN CAMPBELL, California            BRAD MILLER, North Carolina
KEVIN McCARTHY, California           DAVID SCOTT, Georgia
KENNY MARCHANT, Texas                EMANUEL CLEAVER, Missouri
CHRISTOPHER LEE, New York            MELISSA BEAN, Illinois
ERIK PAULSEN, Minnesota              PAUL W. HODES, New Hampshire
LEONARD LANCE, New Jersey            KEITH ELLISON, Minnesota
SPENCER BACHUS, Alabama, ex officio  RON KLEIN, Florida
                                     CHARLES A. WILSON, Ohio
                                     GREGORY W. MEEKS, New York
                                     BILL FOSTER, Illinois
                                     ED PERLMUTTER, Colorado
                                     JACKIE SPEIER, California
                                     TRAVIS CHILDERS, Mississippi
                                     WALT MINNICK, Idaho
                                     BARNEY FRANK, Massachusetts, ex 
                                     officio
           Subcommittee on Housing and Community Opportunity

          (Ratio: 15-10)

    MAXINE WATERS, California, 
            Chairwoman

SHELLEY MOORE CAPITO, West Virginia  NYDIA M. VELAZQUEZ, New York
THADDEUS McCOTTER, Michigan          STEPHEN F. LYNCH, Massachusetts
JUDY BIGGERT, Illinois               EMANUEL CLEAVER, Missouri
GARY G. MILLER, California           AL GREEN, Texas
RANDY NEUGEBAUER, Texas              WILLIAM LACY CLAY, Missouri
WALTER B. JONES, North Carolina      KEITH ELLISON, Minnesota
ADAM PUTNAM, Florida                 JOE DONNELLY, Indiana
KENNY MARCHANT, Texas                MICHAEL E. CAPUANO, Massachusetts
LYNN JENKINS, Kansas                 PAUL KANJORSKI, Pennsylvania
CHRISTOPHER LEE, New York            LUIS V. GUTIERREZ, Illinois
SPENCER BACHUS, Alabama, ex officio  STEVE DRIEHAUS, Ohio
                                     MARY JO KILROY, Ohio
                                     JIM HIMES, Connecticut
                                     DAN MAFFEI, New York
                                     BARNEY FRANK, Massachusetts, ex 
                                     officio
        Subcommittee on International Monetary Policy and Trade

           (Ratio: 9-6)
   GREGORY W. MEEKS, New York, 
             Chairman

GARY G. MILLER, California           LUIS V. GUTIERREZ, Illinois
EDWARD R. ROYCE, California          MAXINE WATERS, California
RON PAUL, Texas                      MELVIN L. WATT, North Carolina
DON MANZULLO, Illinois               GWEN MOORE, Wisconsin
MICHELE BACHMANN, Minnesota          ANDRE CARSON, Indiana
ERIK PAULSEN, Minnesota              STEVE DRIEHAUS, Ohio
SPENCER BACHUS, Alabama, ex officio  GARY PETERS, Michigan
                                     DAN MAFFEI, New York
                                     BARNEY FRANK, Massachusetts, ex 
                                     officio
              Subcommittee on Oversight and Investigations

           (Ratio: 9-6)

  DENNIS MOORE, Kansas, Chairman

JUDY BIGGERT, Illinois               STEPHEN F. LYNCH, Massachusetts
PATRICK T. McHENRY, North Carolina   RON KLEIN, Florida
RON PAUL, Texas                      JACKIE SPEIER, California
MICHELE BACHMANN, Minnesota          GWEN MOORE, Wisconsin
CHRISTOPHER LEE, New York            JOHN ADLER, New Jersey
ERIK PAULSEN, Minnesota              MARY JO KILROY, Ohio
SPENCER BACHUS, Alabama ex officio   STEVE DRIEHAUS, Ohio
                                     ALAN GRAYSON, Florida
                                     BARNEY FRANK, Massachusetts, ex 
                                     officio
                            COMMITTEE STAFF


                             Majority Staff

JEANNE ROSLANOWICK, Staff Director 
         and Chief Counsel
 TERRIE ALLISON, Editor/Document 
               Clerk
STEVE F. ARAUZ, Assistant Systems 
           Administrator
 MICHAEL T. BERESIK, Deputy Staff 
             Director
 JEAN E. CARROLL, Staff Associate
       KEO K. CHEA, Counsel
 MEREDITH CONNELLY, Professional 
           Staff Member
  FLAVIO CUMPIANO, Subcommittee 
    Staff Director and Counsel
   CASSANDRA M. DUHANEY, Counsel
 THOMAS G. DUNCAN, General Counsel
      KRISTOFOR S. ERICKSON, 
     Professional Staff Member
AMANDA FISCHER, Professional Staff 
              Member
      ALFRED FORMAN, Systems 
           Administrator
    THOMAS M. GLASSIC, Counsel
MARCUS M. GOODMAN, Staff Assistant
KARL HADDELAND, Professional Staff 
              Member
       STEPHEN HALL, Counsel
TODD M. HARPER, Subcommittee Staff 
             Director
      ERIKA JEFFERS, Counsel
 THOMAS R. KILEY, Communications 
             Director
   KELLIE LARKIN, Senior Counsel
 GAIL LASTER, Deputy Chief Counsel
 STEPHANE LeBOUDER, Subcommittee 
          Staff Director
  PATRICIA A. LORD, Professional 
               Staff
   MARCOS F. MANOSALVAS, Staff 
             Associate
     KATHRYN J. MARKS, Counsel
 RICHARD L. MAURANO, Director of 
        Legislative Affairs
     DOMINIQUE McCOY, Counsel
DANIEL P. McGLINCHEY, Professional 
           Staff Member
     DANIEL S. MEADE, Counsel
   ANDREW MILLER, Senior Counsel
JONATHAN OBEE, Professional Staff 
              Member
  SCOTT OLSON, Policy Director, 
              Housing
      ERIC S. ORNER, Counsel
 CHARLA OUERTATANI, Subcommittee 
          Staff Director
      JASON PITCOCK, Counsel
      SABAHAT QAMAR, Counsel
 MARK R. RANSLEM, Staff Associate
     LOIS O. RICHERSON, Clerk
 JEFFREY L. RILEY, Senior Counsel
 KATHERYN E. ROSEN, Senior Policy 
              Advisor
 KIRK SCHWARZBACH, Staff Associate
GLEN R. SEARS, Subcommittee Staff 
             Director
 DENNIS SHAUL, Professional Staff 
              Member
  DAVID A. SMITH, Chief Economist
  LAWRANNE STEWART, Deputy Chief 
              Counsel
   ADRIANNE G. THREATT, Counsel
HILARY C. WEST, Professional Staff 
              Member
    ADDIE M. WHISENANT, Press 
             Secretary
  BRENDAN WOODBURY, Professional 
           Staff Member
WILLIAM M. ZAVARELLO, Professional 
           Staff Member
          Minority Staff
         LARRY C. LAVENDER
          Chief of Staff
           WARREN TRYON
       Deputy Chief of Staff
         JAMES H. CLINGER
           Chief Counsel
         SHANNON FLAHERTY
      Deputy Chief of Staff-
          Communications
    CLINTON COLUMBUS JONES, III
          General Counsel

                                 ------                                

  MICHAEL BORDEN, Senior Counsel
   CINDY VOSPER CHETTI, Senior 
        Professional Staff
 ANTHONY J. CIMINO, Professional 
               Staff
  JOHN W. COLE, Research Analyst
  KEVIN R. EDGAR, Senior Counsel
 ANGELA S. GAMBO, Administrative 
             Assistant
 MARISOL GARIBAY, Communications 
             Director
     JASON M. GOGGINS, Counsel
     TALLMAN JOHNSON, Senior 
     Professional Staff Member
ROSEMARY E. KEECH, Executive Staff 
             Assistant
   FRANCISCO A. MEDINA, Senior 
              Counsel
  DAVID OXNER, Professional Staff
 JOE PINDER, Senior Professional 
               Staff
   JAMES KIMBLE RATLIFF, Staff 
             Assistant
  GISELE G. ROGET, Policy Analyst
  ERIC J. THOMPSON, Professional 
               Staff
KIM TRIMBLE, Systems Administrator
      ADAM S. TROST, Counsel
   ANNA BARTLETT WRIGHT, Staff 
             Assistant
                  LEGISLATIVE AND OVERSIGHT ACTIVITIES

    During the 111th Congress, 674 bills were referred to the 
Committee on Financial Services. The full Committee reported to 
the House or was discharged from the further consideration of 
36 measures, not including conference reports. Thirty-four 
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 
111th Congress, including a summary of the activities taken by 
the Committee to implement its Oversight Plan for the 111th 
Congress.
                    COMMITTEE ON FINANCIAL SERVICES

          (Ratio: 42-29)

   BARNEY FRANK, Massachusetts, 
             Chairman

SPENCER BACHUS, Alabama              PAUL E. KANJORSKI, Pennsylvania
MICHAEL N. CASTLE, Delaware          MAXINE WATERS, California
PETER KING, New York                 CAROLYN B. MALONEY, New York
EDWARD R. ROYCE, California          LUIS V. GUTIERREZ, Illinois
FRANK D. LUCAS, Oklahoma             NYDIA M. VELAZQUEZ, New York
RON PAUL, Texas                      MELVIN L. WATT, North Carolina
DONALD A. MANZULLO, Illinois         GARY L. ACKERMAN, New York
WALTER B. JONES, Jr., North Carolina BRAD SHERMAN, California
JUDY BIGGERT, Illinois               GREGORY W. MEEKS, New York
GARY G. MILLER, California           DENNIS MOORE, Kansas
SHELLY MOORE CAPITO, West Virginia   MICHAEL E. CAPUANO, Massachusetts
JEB HENSARLING, Texas                RUBEN HINOJOSA, Texas
SCOTT GARRETT, New Jersey            WM. LACY CLAY, Missouri
J. GRESHAM BARRETT, South Carolina   CAROLYN McCARTHY, New York
JIM GERLACH, Pennsylvania            JOE BACA, California
RANDY NEUGEBAUER, Texas              STEPHEN F. LYNCH, Massachusetts
TOM PRICE, Georgia                   BRAD MILLER, North Carolina
PATRICK T. McHENRY, North Carolina   DAVID SCOTT, Georgia
JOHN CAMPBELL, California            AL GREEN, Texas
ADAM H. PUTNAM, Florida              EMANUEL CLEAVER, Missouri
MICHELE BACHMANN, Minnesota          MELISSA L. BEAN, Illinois
KENNY MARCHANT, Texas                GWEN MOORE, Wisconsin
THADDEUS McCOTTER, Michigan          PAUL W. HODES, New Hampshire
KEVIN McCARTHY, California           KEITH ELLISON, Minnesota
BILL POSEY, Florida                  RON KLEIN, Florida
LYNN JENKINS, Kansas                 CHARLES A. WILSON, Ohio
CHRISTOPHER LEE, New York            ED PERLMUTTER, Colorado
ERIK PAULSEN, Minnesota              JOE DONNELLY, Indiana
LEONARD LANCE, New Jersey            BILL FOSTER, Illinois
                                     ANDRE CARSON, Indiana
                                     JACKIE SPEIER, California
                                     TRAVIS CHILDERS, Mississippi
                                     WALT MINNICK, Idaho
                                     JOHN H. ADLER, New Jersey
                                     MARY JO KILROY, Ohio
                                     STEVE DREIHAUS, Ohio
                                     SUZANNE KOSMAS, Florida
                                     ALAN GRAYSON, Florida
                                     JIM HIMES, Connecticut
                                     GARY PETERS, Michigan
                                     DAN MAFFEI, New York


                  Full Committee Oversight Activities


    FINANCIAL CRISIS/THE DODD-FRANK WALL STREET REFORM AND CONSUMER 
                             PROTECTION ACT

    The financial crisis that began in 2008 revealed numerous 
shortcomings with the U.S. financial system and the framework 
governing it. These shortcomings included--
           excessive risk taking by the industry in 
        multiple areas, including excessive use of leverage, 
        and certain aspects relating to the offering of 
        products to consumers and investors;
           a regulatory framework in which oversight of 
        financial activities was divided among multiple 
        agencies based largely on a regulated entity's 
        corporate form, which permitted regulatory arbitrage 
        among regulated financial companies and simultaneously 
        allowed other companies to evade regulation, thereby 
        contributing to what sometimes is referred to as the 
        ``shadow banking system;''
           lack of a specific mandate for financial 
        regulators to identify and respond to patterns of 
        behavior that potentially could threaten the financial 
        system as a whole, in addition to focusing on the 
        safety and soundness of individual institutions;
           lack of transparency and oversight with 
        respect to certain aspects of the capital markets, such 
        as derivatives, private pools of capital, and investor 
        protections; and
           lack of an orderly mechanism for liquidating 
        large, interconnected failing firms in a manner that 
        takes systemic ramifications of the failure into 
        account, which resulted in 2008 in the government being 
        forced to choose between rescuing certain failing firms 
        or allowing them to fail with devastating consequences 
        for the broader financial system.
    During the first half of 2009, the full Committee held a 
series of hearings to probe the causes and effects of the 
financial crisis, assess the regulatory shortcomings that the 
crisis revealed, and begin laying the groundwork for 
comprehensive financial regulatory reform legislation 
(``Perspectives on Regulation of Systemic Risk in the Financial 
Services Industry'' (March 17, 2009); ``Federal and State 
Enforcement of Financial Consumer and Investor Protection 
Laws'' (March 20, 2009); ``Exploring the Balance between 
Increased Credit Availability and Prudent Lending Standards'' 
(March 25, 2009); ``Addressing the Need for Comprehensive 
Regulatory Reform'' (March 26, 2009); ``H.R. 1728, the Mortgage 
Reform and Anti-Predatory Lending Act of 2009'' (April 23, 
2009); ``The Effect of the Lehman Brothers Bankruptcy on State 
and Local Governments'' (May 5, 2009); ``Compensation Structure 
and Systemic Risk'' (June 11, 2009); and ``Regulatory 
Restructuring: Enhancing Consumer Products Regulation'' (June 
24, 2009)). In addition to these Full Committee hearings, the 
Committee's various subcommittees had numerous hearings 
relating to discrete aspects of financial regulatory reform 
during this same period (see subcommittee discussions below for 
details).
    After extensive consultation with regulators, members of 
Congress, and other interested parties, the Obama 
Administration on June 17, 2009, released a White Paper 
outlining a proposed framework for comprehensive financial 
regulatory reform to address the above-mentioned issues and 
other shortcomings with the existing financial regulatory 
structure. Between June 30 and August 11, 2009, the Obama 
Administration delivered proposed legislative text that would 
implement each of the key reforms that were outlined in the 
White Paper to the House Committee on Financial Services and 
the Senate Banking Committee.
    Following release of the Administration's White Paper, the 
full Committee had a series of hearings to consider the Obama 
Administration's specific legislative proposals; alternatives 
to those proposals, including bills and discussion drafts 
produced by the Committee; and other issues that informed the 
discussion of how best to approach various aspects of financial 
regulatory reform (``A Review of the Administration's Proposal 
to Regulate the Over-the-Counter Derivatives Market'' (July 10, 
2009); ``Banking Industry Perspectives on the Obama 
Administration's Financial Regulatory Reform Proposals'' (July 
15, 2009); ``Community and Consumer Advocates' Perspectives on 
the Obama Administration's Financial Regulatory Reform 
Proposals'' (July 16, 2009); ``Industry Perspectives on the 
Obama Administration's Financial Regulatory Reform Proposals'' 
(July 17, 2009); ``Systemic Risk: Are Some Institutions Too Big 
to Fail, and if So, What Should We Do about It?'' (July 21, 
2009); ``Regulatory Perspectives on the Obama Administration's 
Financial Regulatory Reform Proposals, Part I,'' (July 22, 
2009); ``Regulatory Perspectives on the Obama Administration's 
Financial Regulatory Reform Proposals, Part II'' (July 24, 
2009); ``The Administration's Proposals for Financial 
Regulatory Reform (September 23, 2009); `` Federal Regulator 
Perspectives on Financial Regulatory Reform Proposals'' 
(September 23, 2009); ``Experts' Perspectives on Systemic Risk 
and Resolution Issues'' (September 24, 2009); ``H.R. 1207, the 
Federal Reserve Transparency Act of 2009'' (September 25, 
2009); Perspectives on the Consumer Financial Protection Agency 
(September 30, 2009); ``Federal Reserve Perspectives on 
Financial Regulatory Reform Proposals'' (October 1, 2009); 
``Capital Markets Regulatory Reform: Strengthening Investor 
Protection, Enhancing Oversight of Private Pools of Capital, 
and Creating a National Insurance Office (October 6, 2009); 
``Reform of the Over-the-Counter Derivatives Market: Limiting 
Risk and Ensuring Fairness'' (October 7, 2009); and ``Systemic 
Regulation, Prudential Matters, Resolution Authority, and 
Securitization'' (October 29, 2009). In addition to these 
hearings, various subcommittees held hearings that informed 
specific topics or considered specific legislative proposals 
related to financial regulatory reform (see subcommittee 
discussions below for details).
    Between May 21, 2009, and November 3, 2009, members of the 
Committee introduced bills dealing with specific regulatory 
reform topics. Between October 14, 2009, and December 2, 2009, 
seven of these bills were marked up and ordered reported, as 
amended, to the House with a favorable recommendation by the 
Committee, as follows:
     H.R. 3795, the Over-the-Counter Derivatives Act of 
2009. The text of the October 2, 2009, discussion draft was 
introduced as H.R. 3795 on October 13, 2009, marked up on 
October 14-15, 2009, and ordered reported favorably to the 
House, as amended, on October 15, 2009.
     H.R. 3126, the Consumer Financial Protection 
Agency Act of 2009. The bill was introduced on July 8, 2009, 
with a subsequent discussion draft, dated September 25, 2009, 
marked up as base text on October 22, 2009, and ordered 
reported favorably to the House, as amended, on October 22, 
2009.
     H.R. 3818, Private Fund Investment Advisers 
Registration Act of 2009. The text of the October 1, 2009, 
discussion draft was introduced as H.R. 3818 on October 15, 
2009, marked up on October 27, 2009, and ordered reported 
favorably to the House, as amended, on October 27, 2009.
     H.R. 3890, the Accountability and Transparency in 
Rating Agencies Act. The text of the October 16, 2009, 
discussion draft was introduced as H.R. 3890 on October 21, 
2009, marked up on October 27-28, 2009, and reported favorably 
to the House, as amended, on October 28, 2009.
     H.R. 3817, the Investor Protection Act of 2009. 
The text of the October 1, 2009, discussion draft was 
introduced as H.R. 3817 on October 15, 2009, marked up on 
October 28, 2009, and November 3-4, 2009, and ordered reported 
favorably to the House, as amended, on November 4, 2009.
     H.R. 3996, the Financial Stability Improvement Act 
of 2009. The text of the October 29, 2009, discussion draft was 
introduced as H.R. 3996 on November 3, 2009, marked up on 
November 4-6 and November 17-19, 2009, and ordered reported 
favorably to the House, as amended, on December 2, 2009.
     H.R. 2609, the Federal Insurance Office Act of 
2009. The bill was introduced on May 21, 2009, with a 
subsequent discussion draft, dated October 16, 2009, marked up 
on December 2, 2009 and ordered reported favorably to the 
House, as amended, on December 2, 2009.
    H.R. 4173, the Wall Street Reform and Consumer Protection 
Act of 2009, which was introduced on December 2, 2009, included 
the text of each of the aforementioned bills as reported by the 
Committee and the text of H.R. 1664 regarding executive 
compensation practices (which was introduced on March 23, 2009, 
marked up and reported, as amended, to the House with a 
favorable recommendation by the Committee on March 30, 2009, 
and passed by the House on April 1, 2009). The rule providing 
for consideration of H.R. 4173 appended thereto text that was 
virtually identical to that of H.R. 1728, the Mortgage Reform 
and Anti-Predatory Lending Act (which was introduced on March 
26, 2009, marked up by the Committee on April 28-29, 2009, 
reported, as amended, to the House with a favorable 
recommendation by the Committee on May 4, 2009, and passed by 
the House on May 7, 2009), as well as amendments agreed to 
among the various committees with jurisdiction over H.R. 4173. 
H.R. 4173 passed the House, as amended, on December 11, 2009.
    On May 20, 2010, the Senate passed H.R. 4173, entitled the 
Restoring American Financial Stability Act of 2010, amended by 
an amendment in the nature of a substitute, in lieu of S. 3217, 
the comprehensive financial regulatory reform bill initially 
introduced in the Senate on April 15, 2010. The Senate insisted 
on its amendments and requested a conference. On June 9, 2010, 
the Speaker appointed conferees. The House and Senate conferees 
met in conference, with all sessions open to the public and 
televised, on June 10, 15, 16, 17, 22, 23, 24-25 and 29, 2010. 
The conference report was filed in the House on June 29, 2010, 
agreed to by the House on June 30, 2010, and agreed to by the 
Senate on July 15, 2010. The conference report was signed into 
law by President Obama and became Public Law 111-203 on July 
21, 2010.
    This law, also known as the Dodd-Frank Wall Street Reform 
and Consumer Protection Act, or simply the Dodd-Frank Act, 
addresses many of the factors that contributed the financial 
crisis that began in 2008 and seeks to ensure that the 
government will never again be called upon to rescue individual 
failing firms in order to prevent the collapse of the broader 
financial system. The Dodd-Frank Act included provisions to 
strengthen prudential regulation of financial institutions and 
markets in numerous ways, including requiring more stringent 
capital, liquidity, and risk management requirements for large, 
interconnected financial companies; ensuring that the executive 
compensation structure at those and other publicly traded firms 
does not encourage excess risk taking; creating a new Bureau of 
Consumer Financial Protection and reforming mortgage lending 
requirements to include better consumer protections; providing 
additional investor protections; creating a more transparent 
and centralized system for trading and clearing derivatives and 
other financial instruments; and requiring registration of 
private pools of capital. If a large, interconnected financial 
firm were to experience grave difficulties in spite of this 
more stringent regulatory framework, the Dodd-Frank Act 
provides a specific mechanism that would enable the government 
to liquidate that firm in an orderly manner that protects the 
stability of the broader financial system. Costs of such an 
orderly liquidation would be allocated first to the firm's 
shareholders and creditors and, if necessary, other large 
financial institutions instead of to taxpayers. All of the 
above-mentioned reforms collectively should ensure that, in the 
future, TARP-like programs will be likely not be necessary to 
keep the broader financial system sound during times of severe 
economic distress.

TROUBLED ASSET RELIEF PROGRAM (TARP) AND OTHER INITIATIVES TO STABILIZE 
                         THE FINANCIAL SYSTEM.

    The Committee held several hearings on TARP oversight. The 
first of two general oversight hearings, entitled ``Priorities 
for the Next Administration: Use of TARP Funds under EESA,'' 
was held on January 13, 2009. Witness testimony included 
testimony from Federal Reserve Board and FDIC regulators, as 
well as industry representatives. A second hearing, entitled 
``TARP Accountability: Use of Federal Assistance by the First 
TARP Recipients,'' was held on February 11, 2009, and focused 
on whether the largest recipients of TARP Capital Purchase 
Program investments were responsibly using that capital. 
Witnesses were the CEOs of Goldman Sachs & Co., JPMorgan Chase 
& Co., Bank of New York Mellon, Bank of America, State Street 
Corporation, Morgan Stanley, Citigroup, and Wells Fargo & Co., 
representing companies who received TARP Capital Purchase 
Program (CPP) investments.
    In addition, the Committee held more narrowly focused 
oversight hearings on the government intervention into AIG and 
the Federal Reserve emergency programs established under the 
emergency authority of section 13(3) of the Federal Reserve Act 
(e.g., ``An Examination of the Extraordinary Efforts by the 
Federal Reserve Bank to Provide Liquidity in the Current 
Financial Crisis'' (February 10, 2009); ``Oversight of the 
Federal Government's Intervention at American International 
Group'' (March 24, 2009); ``Unwinding Emergency Federal Reserve 
Liquidity Programs and Implications for Economic Recovery'' 
(March 25, 2010)).
    The Committee held a hearing specifically on the too-big-
to-fail issue on July 21, 2009, entitled ``Systemic Risk: Are 
Some Institutions Too Big to Fail and If So, What Should We Do 
About It?'' The witnesses were primarily academics with 
expertise on the subject. The too-big-too-fail issue was also 
addressed repeatedly in the numerous hearings held by the 
Committee in 2009 of financial regulatory reform discussed 
below.

                         FINANCIAL SUPERVISION

    On March 30, 2009, Chairman Frank and Senate Banking 
Committee Chairman Christopher J. Dodd sent a joint letter to 
the President of the United States to reiterate their 
commitment to work with him to establish a new, more robust 
framework for supervision and regulation of the financial 
services sector. On October 29, 2009, the Committee held a 
legislative hearing entitled ``Systemic Regulation, Prudential 
Matters, Resolution Authority and Securitization.'' This 
hearing, which specifically requested witnesses to testify 
regarding pending reform proposals relating to prudential 
oversight of financial institutions, followed numerous other 
general policy hearings held in prior months regarding a 
broader range of financial regulatory reform proposals (e.g., 
full committee hearings entitled ``Addressing the Need for 
Comprehensive Regulatory Reform'' (March 26, 2009); ``Banking 
Industry Perspectives on the Obama Administration's Financial 
Regulatory Reform Proposals'' (July 15, 2009); ``Industry 
Perspectives on the Obama Administration's Financial Regulatory 
Reform Proposals'' (July 17, 2009); ``Systemic Risk: Are Some 
Institutions Too Big to Fail, and if So, What Should We Do 
about It?'' (July 21, 2009); ``Regulatory Perspectives on the 
Obama Administration's Financial Regulatory Reform Proposals, 
Part I'' (July 22, 2009); ``Regulatory Perspectives on the 
Obama Administration's Financial Regulatory Reform Proposals, 
Part II'' (July 24, 2009); ``The Administration's Proposals for 
Financial Regulatory Reform'' (September 23, 2009); ``Federal 
Regulator Perspectives on Financial Regulatory Reform 
Proposals'' (September 23, 2009); Experts' Perspectives on 
Systemic Risk and Resolution Issues'' (September 24, 2009); and 
``Federal Reserve Perspectives on Financial Regulatory Reform 
Proposals'' (October 1, 2009).
    Witness testimony at the October 29, 2009 hearing included 
Treasury Secretary Geithner, federal banking regulators, a 
State insurance commissioner representative, and 
representatives from various industry and consumer advocate 
groups. The hearing focused on a discussion draft of the 
``Financial Stability Improvement Act of 2009,'' which would: 
(1) address ``too big to fail''; (2) provide for the orderly 
resolution of systemically important financial institutions; 
and (3) fundamentally reform the current system and structure 
of prudential regulation of financial institutions. The 
prudential reforms included in the legislation would: (1) merge 
the Office of Thrift Supervision into the Office of the 
Comptroller of the Currency; (2) maintain the viability of the 
federal thrift charter while strengthening regulation of 
federal thrifts and thrift holding companies; (3) establish the 
Federal Reserve as the regulator for all bank and thrift 
holding companies and supplement the Federal Reserve's existing 
authority over systemically important financial market 
utilities and payment, clearing, and settlement systems; (4) 
eliminate outdated barriers to interstate branching authority; 
(5) strengthen and improve safety and soundness regulation of 
banks and thrifts and their holding companies, and (6) 
establish stronger capital requirements for bank holding 
companies.
    The text of an October 29, 2009, discussion draft of the 
``Financial Stability Improvement Act of 2009'' was introduced 
by Chairman Frank as H.R. 3996 on November 3, 2009, and was 
considered at a committee markup that spanned November 4-6 and 
November 17-19, 2009. The bill, as amended, was ordered 
reported to the House with a favorable recommendation by the 
Committee on December 2, 2009. The content of the bill then was 
incorporated into H.R. 4173, which passed the House on December 
11, 2009. A final version of the legislation was enacted on 
July 21, 2010 as part of Public Law 111-203.

                        DEPOSIT INSURANCE REFORM

    On December 11, 2009, the House passed H.R. 4173, which 
included significant reforms to the FDIC's Deposit Insurance 
Fund. The legislation made permanent the increase in the 
deposit insurance threshold from $100,000 to $250,000, 
providing increased certainty for depositors. Additionally, the 
legislation made the increase retroactive to January 1, 2008, 
to provide equitable treatment to account holders at 
institutions that failed prior to the initial increase of 
deposit insurance under the Emergency Economic Stabilization 
Act of 2008. To better ensure that deposit insurance premiums 
are risk-based, the formula for determining the assessment base 
on which premiums are calculated was changed to the average 
consolidated total assets minus the average tangible equity of 
the insured depository institution. On July 21, 2010, the final 
version of H.R. 4173, the Dodd-Frank Act, was enacted that 
included these same reforms. In addition, the enacted 
legislation increased the designated reserve ratio for the 
deposit insurance fund to 1.35 percent from 1.15 percent and 
holding small community banks harmless for the increased 
premiums. FDIC Chairman Sheila Bair had written to Chairman 
Frank on June 29, 2010 expressing support for an increase in 
the designated reserve ratio. In addition to deposit insurance 
reforms, H.R. 4173 as enacted also included a 2-year statutory 
extension of the FDIC's Transaction Guaranty Program.

  OVERSIGHT OF PROGRESS BY THE BASEL COMMITTEE ON BANKING SUPERVISION

    In response to the weaknesses in the current Basel II 
capital framework that were exposed during the recent financial 
crisis, the Basel Committee on Banking Supervision began work 
in 2009 to strengthen the Basel II capital framework, with 
particular emphasis on improving the quality of Tier 1 capital 
by including more common equity. The new ``Basel III'' 
framework was proposed for comment in December 2009, modified 
on July 26, 2010, and further refined on September 12. The 
Basel Committee [presented] the agreed-upon elements to the G20 
leaders at the November 2010 summit in Seoul, and [describe 
results of 11/2010 G20]. The content of the agreed-upon 
elements, the process by which they were crafted, and the 
expected impact that their implementation would have on U.S. 
banking entities were discussed in detail at a September 22, 
2010, hearing entitled ``The State of the International 
Financial System, Including International Regulatory Issues 
Relevant to the Implementation of the Dodd-Frank Act,'' at 
which Treasury Secretary Timothy Geithner was the only witness.

                     CONSUMER FINANCIAL PROTECTION

    The Committee passed comprehensive legislation relating to 
consumer financial protection. On October 14, 2009, the 
Committee ordered reported H.R. 3126, which creates the 
Consumer Financial Protection Agency (CFPA). The new agency 
would be responsible for rulemaking, examination and 
enforcement for financial institutions that provide consumers 
with financial products and services. The rulemaking authority 
of the Federal Reserve and other Federal banking agencies under 
the existing consumer banking laws would be transferred to the 
CFPA. The Agency also would have broad rulemaking authority to 
address unfair, deceptive and abusive acts and practices that 
the Agency identifies in the future. CFPA also would examine 
bank and nonbank institutions for compliance with the consumer 
banking laws and CFPA regulations and enforce violations of 
those standards.
    H.R. 3126 was originally introduced on July 8, 2009, and 
was based on legislation that was drafted by the Obama 
Administration. Elements of the CFPA had also been included in 
H.R. 1705, the Financial Products Safety Commission Act of 
2009, which was introduced on March 25, 2009 by Representative 
William D. Delahunt and cosponsored by Representative Brad 
Miller. Like H.R. 3126, H.R. 1705 would have created a new 
independent agency with expanded rulemaking and enforcement 
authority over consumer financial products. On September 25, 
2009, a revised discussion draft of H.R. 3126 was released, 
which was used as the mark up vehicle by the Committee.
    The Committee held two hearings that focused specifically 
on the CFPA bill. On June 24, 2009, the Committee held a 
hearing entitled ``Regulatory Restructuring: Enhancing Consumer 
Financial Products Regulation'' This hearing was held seven 
days after the Obama Administration's white paper was released 
outlining regulatory restructuring plans, including the CFPA 
legislation. On September 30, 2009, the Financial Services 
Committee held a hearing, which was five days after a revised 
discussion draft of the bill was released, entitled 
``Perspectives on the Consumer Financial Protection Agency.'' 
The Committee used this discussion draft as the base text to 
mark up the bill.
    In addition to these hearings, the Committee heard 
testimony from government officials that included discussions 
of the CFPA at the following hearings listed below:
           ``Federal Reserve Perspectives on Financial 
        Regulatory Reform Proposals,'' October 1, 2009. The 
        witness at this hearing was The Honorable Ben S. 
        Bernanke, Chairman, Board of Governors of the Federal 
        Reserve System;
           ``The Administration's Proposals for 
        Financial Regulatory Reform,'' September 23, 2009. The 
        witness at this hearing was The Honorable Timothy F. 
        Geithner, Secretary, U.S. Department of the Treasury;
           ``Federal Regulator Perspectives on 
        Financial Regulatory Reform Proposals,'' September 23, 
        2009; and.
           ``Regulatory Perspectives on the Obama 
        Administration's Financial Regulatory Reform 
        Proposals--Part Two,'' July, 24, 2009.

                            MORTGAGE REFORM

    On April 28, 2009, the Committee ordered reported H.R. 
1728, the Mortgage Reform and Anti-Predatory Lending Act, which 
is intended to reform mortgage lending practices to avert a 
recurrence of the current situation of unprecedented levels of 
defaults and foreclosures rates. The bill was fashioned after 
similar legislation that passed the House in November 2007 
(H.R. 3915), but was updated and contains a number of new 
provisions. The bill's provision included: (i) imposing 
compensation and other restrictions on mortgage brokers and 
loan officers, (ii) setting underwriting standards for 
mortgages, (iii) imposing liability on securitizers and other 
participants in the secondary mortgage market for supporting 
irresponsible lending, (iv) setting requirements for 
underwriters and other mortgage market participants to retain 
credit risk in the mortgages they make and securitize, (v) 
expanding the scope of and enhances consumer protections for 
high-cost loans under the Home Ownership and Equity Protection 
Act (HOEPA), (vi) establishing an Office of Housing Counseling 
at HUD that will carry out and coordinate homeownership and 
rental housing counseling programs, and (vii) adopting 
provisions aimed at stopping or mitigating a number of abusive 
and deceptive practices related to escrow accounts, mortgage 
servicing, and appraisal practices. A substantial portion of 
these provisions were included in the Dodd-Frank Act or other 
legislation that passed in this Congress.
    The Subcommittee on Financial Institutions and Consumer 
Credit held a hearing on March 11, 2009 entitled ``Mortgage 
Lending Reform: A Comprehensive Review of the American Mortgage 
System.'' The Committee held a hearing on April 23, 2009 
entitled ``H.R. 1728: Mortgage Reform and Anti-Predatory 
Lending Act''. These hearings focused directly on the 
legislation and witnesses from Federal and state governments, 
the banking and mortgage industry and consumer, community and 
civil rights groups testified at these hearings.

                           CREDIT CARD REFORM

    On April 22, 2009, the Committee approved H.R. 627, the 
``Credit Cardholders' Bill of Rights Act of 2009.'' The bill 
would prohibit certain unfair and deceptive credit card 
practices and provides consumers with tools to manage their 
credit card debt responsibly. The bill would prohibit 
retroactive rate increases on existing balances except under 
limited circumstances, including where the consumer is over 30 
days late in making payment, and require creditors to provide 
consumers with a reasonable time to pay off the balance. It 
would require creditors to provide a written notice of any rate 
increase at least 45 days before the increase takes effect, and 
to send periodic statements to consumers no less than 21 days 
before the due date. The bill would prohibit double cycle 
billing and requires creditors to allocate payments in excess 
of the minimum to either the highest rate balance first or in a 
proportional manner. The bill would limit overlimit fees and 
bans fees on interest-only balances. The bill would require 
creditors to offer cardholders the ability to prevent any 
overlimit transactions on their card. It would prohibit 
creditors from knowingly issuing a credit card to a minor who 
is not emancipated. The bill would prohibit creditors from 
reporting the issuance of any credit card to a credit bureau 
until the cardholder uses or activates the card. For credit 
cards on which fees in the first year exceed 25 percent of the 
initial credit limit, the bill would require that such fees 
(except late, overlimit, and insufficient fund fees) be paid 
from a source other than the card. The bill also provides for 
additional data collection to enable better oversight and 
regulation. This bill was signed into law on May 22, 2009.
    On October 26, 2009, the Committee approved H.R. 3639--
Expedited CARD Reform for Consumers Act of 2009. H.R. 3639 
would accelerate the implementation of certain provisions in 
existing law related to the regulation and operations of the 
credit card industry. The Credit Card Accountability 
Responsibility and Disclosure Act of 2009 (H.R. 627) set 
deadlines for implementing various reforms and procedures, with 
most of those measures scheduled to take effect in February and 
August of 2010. This bill would change those effective dates to 
December 1, 2009, subject to exemptions for entities that issue 
prepaid gift cards and depository institutions (such as banks 
and credit unions) with less than 2 million credit cards in 
circulation.
    The Committee heard testimony from Federal and state 
government authorities, industry representatives and community 
and consumer groups on the need for the legislation. On October 
8, 2009, the Committee held a hearing entitled ``H.R. 2382, the 
Credit Card Interchange Fees Act of 2009 and H.R. 3639, the 
Expedited CARD Reform for Consumers Act of 2009.'' On March 19, 
2009, the Subcommittee on Financial Institutions and Consumer 
Credit held a hearing entitled ``H.R. 627, the Credit 
Cardholders' Bill of Rights Act of 2009; and H.R. 1456, the 
Consumer Overdraft Protection Fair Practices Act of 2009.''

 CREDIT AVAILABILITY IN THE SMALL BUSINESS AND COMMERCIAL REAL ESTATE 
                                MARKETS

    On May 19, 2010, the Committee approved the ``Small 
Business Lending Fund Act of 2010'' (H.R. 5297), which was 
designed to provide support for increased small business 
lending by providing additional capital to small banks that 
will enable them to increase such lending. The Committee held 
numerous hearings on the condition of small business and 
commercial real estate lending in local markets. The issues 
that were considered at these hearings included the effect 
illiquidity in these markets was having on employment, in 
general, and on local small business, real estate markets and 
community banks. One issue, in particular, that was considered 
at several hearings was the issue of whether community banks 
were receiving unnecessarily strict examinations of their 
commercial real estate portfolios from Federal banking agency 
examiners when the management of these agencies are advising 
discretion. Testimony at these hearings included Treasury and 
the Banking Agencies, banks, small businesses and real estate 
developers.
    The hearings held by the Committee included the following:
           On July 29, 2010, the Committee held a 
        hearing entitled ``Alternatives for Promoting Liquidity 
        in the Commercial Real Estate Markets, Supporting Small 
        Businesses and Increasing Job Growth'';
           On May 18, 2010, the Committee held a 
        hearing entitled ``Initiatives to Promote Small 
        Business Lending, Jobs and Economic Growth'';
           On May 17, 2010, the Subcommittee on 
        Oversight and Investigations held a hearing entitled 
        ``Commercial Real Estate: A Chicago Perspective on 
        Current Market Challenges and Possible Responses'';
           On February 26, 2010, the Committee held a 
        hearing entitled ``Condition of Small Business and 
        Commercial Real Estate Lending in Local Markets'';
           On January 21, 2010, the Subcommittee on 
        Financial Institutions and Consumer Credit held a 
        hearing entitled ``The Condition of Financial 
        Institutions: Examining the Failure and Seizure of an 
        American Bank'';
           On November 30, 2009, the Subcommittee on 
        Oversight held a hearing entitled ``Improving 
        Responsible Lending to Small Businesses''; and
           On March 25, 2009, the Committee held a 
        hearing entitled ``Exploring the Balance between 
        Increased Credit Availability and Prudent Lending 
        Standards''.
    H.R. 5297 passed the House on June 17, 2010, and passed the 
Senate amended on September 16, 2010. The House concurred in 
the Senate amendment on September 23, 2010, and the legislation 
became Public Law 111-240 on September 27, 2010.

                            CONSUMER CREDIT

    The Committee held a series of hearings in the Subcommittee 
on Financial Institutions and Consumer Credit to review the 
impact on the availability and affordability of financial 
products on consumers from creditors' reliance on credit scores 
and credit information to assess consumers' creditworthiness. 
The Subcommittee also reviewed the impact on individuals from 
the growing use of credit information beyond lending decisions 
such as, the use of credit information by employers for hiring, 
promotion and retention purposes.

                              FAIR LENDING

    In April 2008, the Committee asked the Government 
Accountability Office (GAO) to conduct a comprehensive review 
of the current state of Federal enforcement of the Fair Housing 
Act (FHA) and other fair lending statutes. In response to this 
request, GAO issued a report in July 2009 entitled, ``FAIR 
LENDING: Data Limitations and the Fragmented U.S. Financial 
Regulatory Structure Challenge Federal Oversight and 
Enforcement Efforts'' (GAO-09-704). GAO recommends in the 
report that Congress consider options to expand the data 
available to detect potential fair lending violations such as, 
requiring certain lenders to report additional data under the 
Home Mortgage Disclosure Act (HMDA). The Committee reviewed the 
GAO report, and passed several provisions under the Dodd-Frank 
Act to try to enhance Federal oversight and enforcement of fair 
lending laws, including: (1) establishing an Office of Fair 
Lending and Equal Opportunity within the CFPB to ensure the 
fair, equitable, and nondiscriminatory access to credit for 
both individuals and communities and (2) requiring lenders to 
collect and publicly report additional data fields under HMDA.

                          WORKFORCE DIVERSITY

    The Committee continued to monitor the workforce diversity 
at Federal financial services agencies and the entities that 
they regulate. An amendment during consideration of the 
financial services regulatory reform legislation was 
incorporated into the Dodd-Frank Act creating Offices of 
Minority and Women Inclusion at several Federal financial 
services agencies.

      GOVERNMENT SPONSORED ENTERPRISES AND HOUSING FINANCE REFORM

    The Committee held a series of hearings in the 111th 
Congress that addressed the housing crisis, the conservatorship 
of Fannie Mae and Freddie Mac, and the reform of the U.S. 
housing finance system. Committee staff held frequent 
briefings, a majority of which were held on a bipartisan basis, 
on matters related to housing finance reform with a broad range 
of stakeholders, including both public and private entities, to 
assess the current crisis and to lay the groundwork for the 
reform of the system.
    The Committee held three hearings to address the public and 
private sectors' broad views on the critical functions of the 
housing finance system. These hearings addressed:
           the essential functions that any reformed 
        housing market and mortgage finance system must be able 
        to perform;
           the steps in the short run that need to be 
        taken, broadly, to facilitate a housing finance market 
        recovery;
           the functions performed by the housing 
        government sponsored enterprises (GSEs) that are 
        essential to a robust market for housing and housing 
        finance and whether these functions should be performed 
        by the government; and
           whether other entities could achieve the GSE 
        housing mission objectives while at the same time 
        ensuring safe and sound operations and minimizing risks 
        to financial stability.
    The first hearing, entitled ``Housing Finance--What Should 
the New System Be Able to Do?: Part I--Government and 
Stakeholder Perspectives,'' occurred on March 23, 2010, and 
consisted of two panels. The Honorable Timothy F. Geithner, 
Secretary, U.S. Department on the Treasury, testified alone on 
the first panel. The second panel of private sector experts 
included Sarah Rosen Wartell, Executive Vice President, Center 
for American Progress; Michael Berman, President and CEO, 
CWCapital on behalf of the Mortgage Bankers Association; Mark 
A. Calabria, Ph.D., Director, Financial Regulation Studies, 
Cato Institute; Vincent O'Donnell, Vice President, Affordable 
Housing Preservation Initiative, Local Initiatives Support 
Corporation (LISC); Robert E. DeWitt, President, CEO, and Vice 
Chairman, GID Investment Advisers LLC on behalf of the National 
Multi-Housing Council; Janis Bowdler, Deputy Director, Wealth-
Building Policy Project, National Council of La Raza; Anthony 
Sanders, Distinguished Professor of Real Estate Finance, School 
of Management, George Mason University; and Vince Malta, Vice 
President and Liaison to Government Affairs, National 
Association of Realtors.
    On April 14, 2010, the Committee held the second hearing 
entitled ``Housing Finance--What Should the New System Be Able 
to Do?: Part II--Government and Stakeholder Perspectives.'' The 
Honorable Shaun Donovan, Secretary, U.S. Department of Housing 
and Urban Development, testified on the first panel. Presenters 
on the second panel included Anthony T. (Tuck) Reed, Executive 
Vice President, Capital Markets SunTrust Mortgage, Inc., on 
behalf of The Financial Services Roundtable; Sheila Crowley, 
President and CEO, National Low Income Housing Coalition; Alex 
J. Pollock, Resident Fellow, American Enterprise Institute; 
Jack E. Hopkins, President/CEO, CorTrust Bank, NA, on behalf of 
the Independent Community Bankers of America; Thomas Gleason, 
Executive Director, MassHousing; Anthony M. Randazzo, Director 
of Economic Research, Reason Foundation; and Rick Judson, Third 
Vice Chairman, National Association of Home Builders.
    On September 29, 2010, the Committee held an additional 
hearing entitled ``The Future of Housing Finance--A Review of 
Proposals to Address Market Structure and Transition.'' This 
hearing continued the Committee's investigation of the 
principles and proposals of various stakeholders related to 
reforming the U.S. housing finance system. The hearing focused 
on obtaining non-governmental perspectives on a variety of 
topics, including:
         the Dodd-Frank Act and its implications for 
        mortgage origination and securitization;
         the implications of the Fannie Mae and Freddie 
        Mac conservatorships and/or considerations for housing 
        finance reform;
         key considerations for transition to a new 
        system to facilitate housing finance in the United 
        States; and
         the witnesses' housing finance reform 
        proposals submitted to the U.S. Department of the 
        Treasury and the Department of Housing and Urban 
        Development through a public comment period, if any.
    Witnesses for this hearing included Michael J. Heid, Co-
President of Wells Fargo Home Mortgage and Chairman of the 
Housing Policy Council of The Financial Services Roundtable; 
The Honorable Phillip L. Swagel, McDonough School of Business, 
Georgetown University; Susan Wachter, Richard B. Worley 
Professor of Financial Management, The Wharton School, 
University of Pennsylvania; Christopher Papagianis, Managing 
Director, Economics21; Michael Bodaken, President, National 
Housing Trust; Ed Pinto, Real Estate Financial Services 
Consultant; Michael A.J. Farrell, Chairman, CEO and President, 
Annaly Capital Management, Inc. on behalf of Annaly Capital 
Management and the National Association of Real Estate 
Investment Trusts' Mortgage REIT Council; and Tom Deutsch, 
Executive Director, American Securitization Forum.
    As noted in the section on the oversight activities of the 
Subcommittee on Capital Markets, Insurance, and Government 
Sponsored Enterprises, the Committee's three hearings on 
housing finance reform complemented the four hearings of the 
Capital Markets Subcommittee on these matters.

          THE CONSEQUENCES OF THE COLLAPSE OF LEHMAN BROTHERS

    On May 5, 2009, the Committee held a hearing entitled ``The 
Effect of the Lehman Brothers Bankruptcy on State and Local 
Governments.'' The hearing vetted the effects of the bankruptcy 
on the more than 100 U.S. municipalities with a total exposure 
of approximately $1.7 billion in bonds, notes, commercial paper 
and guaranteed investment contracts. The affected 
municipalities had formed a coalition to advocate for the 
Treasury Department to purchase the defaulted securities and 
contracts at their face value.
    Representative Jackie Speier and Representative Eshoo 
reviewed their legislation, H.R. 467, on the first panel of the 
hearing. The legislation would amend the Emergency Economic 
Stabilization Act to direct the Treasury Department to purchase 
all bonds and debt instruments of Lehman Brothers held by 
municipalities on the date of Lehman's bankruptcy. The second 
panel's witnesses included The Honorable Karen Rushing, Clerk 
of the Circuit Court and County Comptroller of Sarasota County, 
Florida; Ron Galatolo, Chancellor, San Mateo County Community 
College; The Honorable Richard Gordon, Supervisor, San Mateo 
County Board of Supervisors; The Honorable Bob Hullinghorst, 
Boulder County Treasurer, Boulder, Colorado; Chris Thornberg, 
Economist, Beacon Economics; and The Honorable Chriss W. 
Street, Orange County Treasurer, Santa Ana, California.
    On March 11, 2010, the Court Appointed Examiner Anton R. 
Valukas in response to the request from the U.S. Bankruptcy 
Court for the Southern District of New York filed a report 
about the bankruptcy of Lehman Brothers Holdings on September 
15, 2008. Among the key issues discussed in the report included 
the role of risk management at Lehman; the firm's use of ``Repo 
105 and 108'' (an accounting tactic to adjust balance sheet 
leverage at quarter-end for purposes of reporting); and the 
role of governmental entities, such as the U.S. Securities and 
Exchange Commission (SEC) and the Federal Reserve Bank of New 
York (FRBNY) in regulating and lending to Lehman, respectively.
    On April 20, 2010, the Committee held a hearing entitled 
``Public Policy Issues Raised by the Report of the Lehman 
Bankruptcy Examiner.'' Among other issues, the hearing focused 
on the public policy implications raised in the examiner's 
review, including:
           the extent to which corporate governance 
        should be enhanced to appropriately manage firm risk;
           views regarding the communication, 
        knowledge, and understanding among risk managers, 
        boards of directors, and senior management;
           the role of the SEC as Lehman's primary 
        regulator in oversight, examination and enforcement in 
        advance of Lehman's bankruptcy filing, and the role of 
        other government agencies, including the FRBNY, that 
        were monitoring Lehman during the crisis;
           the relationship and means of communication, 
        especially formal and informal information sharing, 
        between the SEC and FRBNY as Lehman's financial 
        condition deteriorated as well as between Lehman, the 
        SEC, the Treasury Department, the Board of Governors of 
        the Federal Reserve System, and the FRBNY;
           the appropriateness of accounting practices 
        such as Repo 105 or 108 and the adequacy of the 
        disclosure of such accounting practices; and
           the quality of Lehman's Management 
        Discussion and Analysis disclosures in its public 
        filings for the 2007 reporting periods.
    The four-panel hearing began with testimony from 
Representatives Anna G. Eshoo and Ed Perlmutter. The second 
panel included senior government officials in their capacity as 
regulators in the run up to and the collapse of Lehman 
Brothers. These officials included The Honorable Timothy F. 
Geithner, Secretary, U.S. Department of the Treasury; The 
Honorable Ben S. Bernanke, Chairman, Board of Governors of the 
Federal Reserve System; and The Honorable Mary L. Schapiro, 
Chairman, U.S. Securities and Exchange Commission.
    Anton Valukas, a partner at Jenner & Block and the Court 
Appointed Bankruptcy Examiner, testified on the third panel 
regarding his report. The fourth panel included members of the 
board of directors of Lehman Brothers and an academic. 
Witnesses included Richard Fuld, former Chairman and CEO, 
Lehman Brothers; Thomas Cruikshank, former member of the board 
of directors and chair of Lehman Brothers' audit committee; and 
William Black, Professor of Economics and Law at the University 
of Missouri--Kansas City.

           REFORM OF THE OVER-THE-COUNTER DERIVATIVES MARKET

    On July 10, 2009, the Committee held a hearing jointly with 
the Committee on Agriculture entitled ``A Review of the 
Administration's Proposal to Regulate the Over-the-Counter 
Derivatives Market.'' The Honorable Timothy F. Geithner, 
Secretary, U.S. Department of the Treasury appeared as the 
hearing's sole witness. Secretary Geithner provided an overview 
of the views on derivatives regulation contained in the 
Administration's white paper entitled ``Financial Regulatory 
Reform, A New Foundation: Rebuilding Financial Supervision and 
Regulation'' released in June 2009. Secretary Geithner's 
testimony also addressed specific questions, including the 
level of standardization necessary for central clearing of 
derivatives contracts, the trade reporting protocols 
recommended by the Administration, and measures in the 
Administration's plan that would bring over-the-counter 
derivatives trading onto exchanges.
    On October 7, 2009, the Committee held a legislative 
hearing entitled ``Reform of the Over-the-Counter Derivative 
Market: Limiting Risk and Ensuring Fairness.'' At the hearing, 
witnesses presented their views on a discussion draft of 
legislation released by the Committee on October 2, 2009. The 
draft legislation, later reported as H.R. 3795, the Over-the-
Counter Derivatives Markets Act of 2009, proposed a new and 
comprehensive framework for regulating swaps and security-based 
swaps. Subject to certain exceptions, the bill required 
clearing of swap transactions; execution of swap transactions 
on exchanges or swap execution facilities; reporting and 
recordkeeping of swap transactions; registration and oversight 
of participants in the swap markets, including swap dealers, 
major swap participants and designated clearing organizations; 
and compliance with capital and margin levels.
    Witnesses at this hearing included regulators, academics 
and derivatives market participants. Participants on the first 
panel included The Honorable Gary Gensler, Chairman, Commodity 
Futures Trading Commission; and Henry Hu, Director, Division of 
Risk, Strategy, and Financial Innovation, U.S. Securities and 
Exchange Commission. The witnesses on the second panel included 
Jon Hixson, Director, Federal Government Relations, Cargill 
Inc.; Ren M. Stulz, Everett D. Reese Chair of Banking and 
Monetary Economics, Fisher College of Business, The Ohio State 
University; Scott Sleyster, CFA, Chief Investment Officer, 
Domestic, Prudential Financial; David Hall, Chief Operating 
Officer, Chatham Financial Corp.; James J. Hill, Managing 
Director, Morgan Stanley on behalf of the Securities Industry 
and Financial Markets Association (SIFMA); Stuart J. Kaswell, 
Executive Vice President and Managing Director, General 
Counsel, Managed Funds Association; Steven A. Holmes, Director 
of Treasury Operations, Treasury Department, Deere & Company; 
Christopher Ferreri, Managing Director, ICAP on behalf of the 
Wholesale Markets Brokers Association; and Rob Johnson, 
Director of Economic Policy for the Roosevelt Institute in New 
York on behalf of Americans for Financial Reform.
    On October 15, 2009, the Committee met to consider and mark 
up H.R. 3795. The bill proposed a comprehensive framework for 
the regulation of swaps and security-based swaps. Specifically, 
the bill imposed requirements relating to all aspects of the 
swaps and security-based swaps market, including clearing, 
exchange-trading, registration of market participants, 
reporting, recordkeeping, and capital and margin levels. The 
Committee reported H.R. 3795 to the House, as amended, with a 
favorable recommendation by a record vote of 43 yeas and 26 
nays. H.R. 3795 was subsequently combined and reconciled with 
H.R. 977, a derivatives bill reported out of the House 
Agriculture Committee. The resulting provisions comprised Title 
III of H.R. 4173, the Wall Street Reform and Consumer 
Protection Act of 2009, the comprehensive financial services 
regulatory reform bill passed by the House on December 11, 
2009. Many of those provisions on enhanced regulation of swaps 
and security-based swaps are reflected in Title VII of the 
Dodd-Frank Act.

               FINANCIAL REFORM HEARINGS--CAPITAL MARKETS

    On October 6, 2009, the Committee held a three-panel 
legislative hearing entitled ``Capital Markets Regulatory 
Reform: Strengthening Investor Protection, Enhancing Oversight 
of Private Pools of Capital, and Creating a National Insurance 
Office.'' Each panel at the hearing vetted legislation 
introduced by Capital Markets Subcommittee Chairman Paul E. 
Kanjorski. These bills formed the foundation of the capital 
markets, investor protection and insurance information reforms 
ultimately incorporated into the Dodd-Frank Act.
    The hearing's first panel addressed a discussion draft of 
H.R. 3817, the Investor Protection Act of 2009. Witnesses 
included Denise Voigt Crawford, Texas Securities Commissioner, 
Securities Administrators Board, on behalf of the North 
American Securities Administrators Association; Richard 
Ketchum, Chairman and CEO, Financial Industry Regulatory 
Authority (FINRA); Mercer E. Bullard, Founder and President, 
Fund Democracy, Inc.; John Taft, Head of Wealth Management, RBC 
Wealth Management, on behalf of SIFMA; David G. Tittsworth, 
Executive Director, Investment Adviser Association; and Bruce 
W. Maisel, Vice President and Managing Counsel, General 
Counsel's Office, Thrivent Financial for Lutherans, on behalf 
of the American Council of Life Insurers.
    The second panel addressed a discussion draft of H.R. 3818, 
the Private Fund Investment Advisers Registration Act of 2009. 
Witnesses on this panel included The Honorable Richard H. 
Baker, President, Managed Funds Association; Douglas 
Lowenstein, President, Private Equity Council; James S. Chanos, 
Chairman, Coalition of Private Investment Companies; and Terry 
McGuire, Co-Founder and General Partner, Polaris Venture 
Partners, and Chairman, National Venture Capital Association.
    The third panel's participants commented on H.R. 2609, the 
Federal Insurance Office Act of 2009. Witnesses included Janice 
M. Abraham, President and CEO, United Educators Insurance, on 
behalf of the Property Casualty Insurers Association of 
America; David B. Atkinson, Executive Vice President and Vice 
Chairman, RGA Reinsurance Company, on behalf of the Reinsurance 
Association of America; Dennis S. Herchel, Assistant Vice 
President and Counsel, Massachusetts Mutual Life Insurance 
Company, on behalf of the American Council of Life Insurers; 
Spencer M. Houldin, President, Ericson Insurance Advisors, on 
behalf of the Independent Insurance Agents & Brokers of 
America; Therese Vaughan, CEO, National Association of 
Insurance Commissioners; and J. Stephen Zielezienski, Senior 
Vice President and General Counsel, American Insurance 
Association.

                      MUNICIPAL SECURITIES MARKETS

    On May 21, 2009, the Committee held a multi-panel 
legislative hearing entitled ``Legislative Proposals to Improve 
the Efficiency and Oversight of Municipal Finance.'' The 
hearing focused on five legislative proposals:
           the Municipal Bond Insurance Enhancement Act 
        (H.R. 2589 introduced by Representative Emanuel 
        Cleaver) to establish the Office of Public Finance 
        within the Treasury Department to provide Federal 
        reinsurance for municipal-only bond insurers, thus 
        making it easier for smaller, lesser known bond issuers 
        to obtain bond insurance and gain access to the capital 
        markets;
           the Municipal Bond Liquidity Enhancement Act 
        (H.R. 2551 introduced by Representative Bill Foster) to 
        authorize the Federal Reserve to fund new liquidity 
        facilities that could redeem variable rate municipal 
        bonds, thereby enhancing liquidity in that market;
           the Municipal Financial Advisors Regulation 
        Act (H.R. 2550 introduced by Representative Steve 
        Driehaus) to create a regulatory regime for financial 
        advisors to municipalities, including registration 
        obligations, a fiduciary duty and prohibitions against 
        fraud and manipulation;
           the Municipal Bond Fairness Act (H.R. 2549 
        introduced by Representative Michael E. Capuano) to 
        impose requirements on Nationally Recognized 
        Statistical Rating Organizations to ensure that their 
        municipal bond credit ratings were not unfairly low 
        relative to their corporate bond ratings; and
           the Federal Municipal Bond Marketing Support 
        and Securitization Act (H.R. 1669 introduced by 
        Representative Gerald E. Connolly) to give the Treasury 
        Secretary the authority to provide credit enhancements 
        to municipal issuers and to purchase municipal bonds in 
        order to restore activity in the municipal bond market.
    Witnesses at the hearing included representatives from 
Federal agencies and local governments, as well as participants 
in the municipal market. The participants on the first panel 
included Martha Mahan Haines, Chief, Office of Municipal 
Securities, U.S. Securities and Exchange Commission; Bill 
Apgar, Senior Advisor to the Secretary, U.S. Department of 
Housing and Urban Development; David W. Wilcox, Deputy 
Director, Division of Research and Statistics, Board of 
Governors of the Federal Reserve System; The Honorable Thomas 
C. Leppert, Mayor of Dallas, Texas, on behalf of the U.S. 
Conference of Mayors; and Ben Watkins, Director of the State of 
Florida Division of Bond Finance, State Board of 
Administration, Florida.
    The witnesses on the second panel consisted of Michael J. 
Marz, Vice Chairman, First Southwest Company; Laura Levenstein, 
Senior Managing Director, Moody's Investors Service; Keith 
Curry, Managing Director, PFM Group; Alan B. Ispass, PE, BCEE, 
Vice President and Global Director of Utility Management 
Solutions, CH2M Hill; Sean W. McCarthy, President and Chief 
Operating Officer, Financial Security Assurance, Inc.; Bernard 
Beal, CEO, M.R. Beal and Company on behalf of SIFMA; Mary Jo 
Ochson, CFA, Senior Vice President, Chief Investment Officer 
for the Tax-Exempt Money Market and Municipal Bond Investment 
Groups and Senior Portfolio Manager, The Federated Funds; Mike 
Allen, Chief Financial Officer, Winona Health; and Sean Egan, 
Managing Director, Egan-Jones Ratings Company.
    The provisions of the Municipal Financial Advisors 
Regulation Act were ultimately incorporated into Title V of the 
comprehensive financial services regulatory reform bill passed 
by the House on December 11, 2009. Some of those provisions are 
also reflected in Subtitle H of Title IX of the Dodd-Frank Act.

                     SEC CONFIDENTIALITY PROVISION

    On September 16, 2010, the Committee held a legislative 
hearing entitled ``Legislative Proposals to Address Concerns 
Over the SEC's New Confidentiality Provision.'' The hearing 
focused on Section 929I of the Dodd-Frank Act, which protected 
SEC examination materials from production in response to 
Freedom of Information Act (FOIA) requests and subpoenas. 
Shortly after passage of the Dodd-Frank Act, some public 
interest groups and Members of Congress voiced concern that 
Section 929I protected too much information about the SEC from 
public scrutiny. The hearing also focused on four bills 
introduced to repeal and/or modify Section 929I, namely H.R. 
5924 introduced by Representative Darrell E. Issa, H.R. 5948 
introduced by Representative John Campbell, H.R. 5970 
introduced by Representative Ron Paul, and H.R. 6086 introduced 
by Representative Edolphus Towns.
    Witnesses at the hearing included bill sponsors and 
representatives from the SEC, open-government groups, and 
private sector securities lawyers. Specifically, the 
participants on the first panel included Representatives Towns 
and Issa. The sole witness on the second panel was SEC Chairman 
Mary L. Schapiro. Witnesses on the third panel consisted of The 
Honorable Harvey L. Pitt, CEO, Kalorama Partners, LLC; Angela 
Canterbury, Director of Public Policy, Project on Government 
Oversight; Rick Blum, Coordinator, Sunshine in Government 
Initiative; Steven Mintz, Partner, Mintz & Gold; and Susan 
Merrill, Partner, Bingham McCutchen LLP, on behalf of SIFMA.
    On September 21, 2010, the Senate passed S. 3717 
(introduced by Senator Patrick Leahy) by unanimous consent. A 
companion bill to H.R. 6086, S. 3717 provided for the repeal of 
Section 929I. The bill also mitigated the impact on the SEC by 
clarifying that the traditional FOIA exemption for exam 
materials applied to SEC-regulated entities. S. 3717 did not, 
however, preserve any protections for exam-related materials 
sought from the SEC by third-party subpoena.
    To address concerns about the broad scope of Section 929I 
without further delay, the House passed S. 3717 on September 
23, 2010, by voice vote, and the bill became law on October 5, 
2010 (P.L. 111-257). On the House floor, Financial Services 
Chairman Barney Frank and Ranking Member Spencer Bachus, along 
with Oversight and Government Reform Chairman Edolphus Towns 
and Ranking Member Darrell Issa, affirmed their commitment to 
restore some of the protections lost through repeal of Section 
929I, so that the SEC will be able to resist attempts by 
litigants to obtain exam-related information via third-party 
subpoena.

                             COVERED BONDS

    On December 15, 2009, the Committee held a hearing entitled 
``Covered Bonds: Prospects for a U.S. Market Going Forward.'' 
The hearing considered the potential role that covered bonds 
could play in U.S. markets and whether covered bonds could 
serve as an alternative to mortgage securitization. Witnesses 
included Alan Boyce, CEO, Absalon; Scott A. Stengel, Partner, 
Orrick, Herrington & Sutcliffe LLP on behalf of the U.S. 
Covered Bond Council; Bert Ely, Ely & Company Inc.; Wesley 
Phoa, Senior Vice President, Capital International Research, 
Inc.; and J. Christopher Hoeffel, Managing Director, Investcorp 
International Inc. on behalf of the Commercial Mortgage 
Securities Association.
    On July 27, 2010, the Committee subsequently held a markup 
of and favorably reported H.R. 5823, the United States Covered 
Bond Act of 2010, introduced by Capital Markets Subcommittee 
Ranking Member Scott Garrett, along with Financial Services 
Ranking Member Bachus and Capital Markets Subcommittee Chairman 
Kanjorski. In general, the bill establishes a regulatory 
framework for a covered bond market in the United States by 
providing rule-writing authority and direction to the covered 
bond regulator to determine the eligible participants, 
appropriate assets for inclusion in covered pools, and a 
resolution mechanism in the event of a default of the covered 
bond or resolution of an issuer.

                      INSURANCE REGULATORY REFORM

    Although not formally considered by the Committee in the 
111th Congress, two insurance regulatory reform bills 
previously considered by the Committee passed the House under 
suspension of the rules. On September 9, 2009, the House passed 
H.R. 2571, the Nonadmitted and Reinsurance Reform Act of 2009, 
and on May 21, 2010, the House approved H.R. 2554, the National 
Association of Registered Agents and Brokers Reform Act of 
2010. The Nonadmitted and Reinsurance Reform Act was 
subsequently incorporated into the Dodd-Frank Act and became 
law on July 21, 2010.

                         INSURANCE INFORMATION

    Building substantially on the oversight and legislative 
activities in the areas of insurance information and insurance 
regulatory reform of the Capital Markets Subcommittee during 
the 110th Congress and the 111th Congress, on October 6, 2009, 
the Committee held a hearing entitled ``Capital Markets 
Regulatory Reform: Strengthening Investor Protection, Enhancing 
Oversight of Private Pools of Capital, and Creating a National 
Insurance Office.'' As noted above in the section on financial 
reform hearings, the third panel of witnesses for this hearing 
commented on H.R. 2609, the Federal Insurance Office Act of 
2009. H.R. 2609 was the 111th Congress iteration of 
Subcommittee Chairman Kanjorski's Office of Insurance 
Information Act of 2008. Both bills sought to create an 
insurance office within the Treasury Department to provide 
advice to and expertise on insurance policy to the 
Administration and Congress. On December 2, 2009, H.R. 2609 
passed the Committee by a unanimous voice vote. The bill was 
subsequently incorporated into H.R. 4173 and became public law 
as part of the Dodd-Frank Act.

         NATIONAL FLOOD INSURANCE PROGRAM EXTENSION AND REFORM

    H.R. 5114, the Flood Insurance Reform Priorities Act of 
2010, and H.R. 1264, the Multiple Peril Insurance Act of 2009, 
were ordered reported by the Committee on April 27, 2010. H.R. 
5114 would have reauthorized the National Flood Insurance 
Program (NFIP) for five years and provided various reforms to 
the program, including the phasing in of actuarial rates for 
newly mapped homeowners. H.R. 1264 would have allowed the NFIP 
to offer optional wind insurance policies and would have 
prohibited insurers from including anti-concurrent causation 
provisions in their homeowners' insurance policies. On April 
22, 2010, the Committee reported both bills with favorable 
recommendations. On July 15, 2010, the House passed H.R. 5114 
by a vote of 329 to 90.
    The Committee additionally drafted legislation, H.R. 5569, 
to continue the NFIP for a three-month period pending the 
enactment of a long-term authorization. On July 2, 2010, 
President Obama signed H.R. 5569, legislation to continue the 
NFIP from June 1 to September 30, 2010. On September 30, 2010, 
President Obama subsequently signed S. 3814, legislation to 
continue the NFIP through September 30, 2011.

                       NATURAL DISASTER INSURANCE

    H.R. 2555, the Homeowners' Defense Act of 2010, was ordered 
reported by the Committee on April 27, 2010, and was favorably 
reported to the House on July 13, 2010. H.R. 2555 would provide 
Federal encouragement for States to develop State-sponsored 
reinsurance programs designed to enhance the efficiency by 
which catastrophic risks are transferred into the capital 
markets. Specifically, H.R. 2555 would: (1) establish a non-
profit consortium to coordinate catastrophe risk management 
actions by the States; (2) provide for a Federal guarantee of 
debt obligations issued by eligible state-based catastrophe 
insurance programs; (3) establish a Federal program to provide 
reinsurance to eligible state-based catastrophe insurance 
programs; (4) authorize a new Federal grant program to help the 
States prevent and mitigate losses from natural disasters; and 
(5) direct the GAO to study and report on the use of risk-based 
pricing by state-based catastrophe insurance programs.

        FEDERAL INTERVENTION IN THE AMERICAN INTERNATIONAL GROUP

    On March 24, 2009, the Committee held a hearing entitled 
``Oversight of the Federal Government's Intervention at 
American International Group.'' This hearing, chaired 
predominantly by Capital Markets Subcommittee Chairman 
Kanjorski, consisted of one panel of witnesses featuring 
Treasury Secretary Timothy F. Geithner, Federal Reserve 
Chairman Ben S. Bernanke, and Federal Reserve Bank of New York 
President William Dudley.
    The hearing focused broadly on the lead up to and need for 
Federal intervention at American International Group (AIG), but 
centered substantially on compensation paid to employees at 
AIG's failing Financial Products division. This hearing and a 
corresponding Capital Markets Subcommittee hearing together 
formed only a small part of an extensive series of related 
correspondence and ongoing AIG oversight undertaken by the 
Committee and Capital Markets Subcommittee throughout the 111th 
Congress.
    On March 25, 2009, the Committee also considered a 
resolution of inquiry, House Resolution 251, directing the 
Treasury Secretary to transmit to the U.S. House of 
Representatives all information in his possession relating to 
specific communications with AIG. The Committee ordered the 
resolution reported to the House with a favorable 
recommendation by a recorded vote of 64 to zero (H. Rept. 111-
84).

                         EXECUTIVE COMPENSATION

    On March 18 and 24, 2009, the Capital Markets Subcommittee 
and the Committee, respectively, held hearings relating to the 
Federal intervention at AIG (see the discussion immediately 
above). Witnesses for these two hearings included Scott 
Polakoff, Acting Director, Office of Thrift Supervision; Joel 
Ario, Insurance Commissioner, Pennsylvania Insurance 
Department, on behalf of the National Association of Insurance 
Commissioners; Orice M. Williams, Director, Financial Markets 
and Community Investment, Government Accountability Office; 
Rodney Clark, Managing Director, Insurance Ratings, Standard & 
Poor's; Edward M. Liddy, Chairman and CEO, AIG; Treasury 
Secretary Geithner, Federal Reserve Chairman Bernanke, and 
Federal Reserve Bank of New York President Dudley.
    These hearings dealt substantially with compensation 
practices at AIG following the intervention of the Federal 
Government and brought to the forefront the larger issues of 
compensation at financial institutions, particularly the 
financial institutions that received Federal financial 
assistance through the Troubled Asset Relief Program (TARP). In 
the immediate aftermath of the March 2009 AIG hearings, on 
March 25 the Committee considered H.R. 1664, a bill to amend 
the executive compensation provisions of the Emergency Economic 
Stabilization Act of 2008 to prohibit unreasonable and 
excessive compensation at companies participating in the TARP 
program. The Committee ordered H.R. 1664 reported to the House 
with a favorable recommendation by a record vote of 38 to 22. 
On April 1, 2009, H.R. 1664 passed the House by a recorded vote 
of 247 to 171.
    On June 11, 2009, the Committee held the first of four 
executive compensation hearings conducted during the 111th 
Congress. This first hearing, entitled ``Compensation Structure 
and Systemic Risk,'' focused broadly on oversight and 
regulation of compensation practices in the financial services 
industry, particularly in the context of systemic risk 
regulatory reform. Witnesses at this hearing included Gene 
Sperling, Counselor to the Secretary of the Treasury; Scott 
Alvarez, General Counsel, Board of Governors of the Federal 
Reserve System; Brian Breheny, Deputy Director of Corporate 
Finance, U.S. Securities and Exchange Commission; Lucien 
Bebchuk, Professor of Law, Economics, and Finance, and Director 
of the Program on Corporate Governance, Harvard Law School; 
Nell Minow, Editor and Founder, The Corporate Library; Lynn 
Turner, former Chief Accountant, U.S. Securities and Exchange 
Commission; Kevin Murphy, Trefftzs Chair in Finance, University 
of Southern California; and J.W. Verret, Assistant Professor, 
George Mason University School of Law.
    This hearing also served as a legislative hearing for H.R. 
3269, the Corporate and Financial Institution Compensation 
Fairness Act of 2009. H.R. 3269 provides shareholders a non-
binding, advisory vote on their company's pay practices, 
requires Federal regulators to proscribe any inappropriate and 
imprudently risky compensation practices as part of solvency 
regulation of all financial institutions, and mandates 
disclosure of compensation structures for financial 
institutions with assets in excess of $1 billion. The Committee 
favorably reported H.R. 3269 by a recorded vote of 40 to 28 on 
July 28, 2009, and the bill passed the House by a recorded vote 
of 237 to 185 on July 31, 2009. H.R. 3269 was subsequently 
incorporated into H.R. 4173, and became public law as part of 
the Dodd-Frank Act.
    On January 22, 2010, and February 25, 2010, the Committee 
held two hearings respectively entitled ``Compensation in the 
Financial Industry'' and ``Compensation in the Financial 
Industry--Government Perspectives.'' Building on the 
Committee's 2009 compensation oversight and legislative 
activities, these two hearings solicited input on financial 
industry compensation structures and the anticipated impact of 
H.R. 3269 from witnesses including Lucian Bebchuk, Professor of 
Law, Economics, and Finance, and Director of the Program on 
Corporate Governance, Harvard Law School; Nell Minow, Editor 
and Founder, The Corporate Library; Joseph Stiglitz, University 
Professor, Columbia Business School; Kenneth Feinberg, Special 
Master for TARP Executive Compensation, U.S. Department of the 
Treasury; Scott Alvarez, General Counsel, Board of Governors of 
the Federal Reserve System; and Edward J. DeMarco, Acting 
Director, Federal Housing Finance Agency.
    On September 24, 2010, the Committee held a hearing 
entitled, ``Executive Compensation Oversight after the Dodd-
Frank Wall Street Reform and Consumer Protection Act.'' 
Witnesses included Scott Alvarez, General Counsel, Board of 
Governors of the Federal Reserve System; Meredith Cross, 
Director, Division of Corporation Finance, U.S. Securities and 
Exchange Commission; Marc Steckel, Associate Director, Division 
of Insurance and Research, Federal Deposit Insurance 
Corporation; Martin Baily, Senior Fellow, The Brookings 
Institution; and Darla C. Stuckey, Senior Vice President--
Policy & Advocacy, Society of Corporate Secretaries and 
Governance Professionals. The hearing focused on the 
anticipated impact of the Dodd-Frank Act's executive provisions 
on compensation practices, particularly in the financial 
services industry.

              MORTGAGE FORECLOSURES AND LOAN MODIFICATIONS

    The full Committee held three hearings on Federal 
foreclosure prevention efforts and programs. On July 9, 2009, 
the Committee held a hearing on ``H.R. 3068, the TARP for Main 
Street Act of 2009.'' That bill would have used TARP funds, 
including dividends, to provide funding for the National 
Housing Trust Fund, the Neighborhood Stabilization Program, 
Emergency Mortgage Relief in the form of loans to unemployed 
homeowners, and HUD multifamily mortgage resolution of troubled 
multifamily housing projects. Ultimately, Congress provided, in 
the Dodd-Frank reform bill, $1 billion in assistance to 
unemployed homeowners, per the provisions of the Emergency 
Mortgage Relief section in H.R. 3068. The same bill included a 
requirement for HUD to engage in resolution of troubled 
multifamily housing projects, consistent with the provisions of 
H.R. 3068.
    On December 8, 2009, the Committee held a hearing on ``The 
Private Sector and Government Response to the Mortgage 
Foreclosure Crisis.'' The hearing involved testimony from both 
Federal officials and private sector participants on activities 
to date to address the growing foreclosure problem, including 
the Federal HAMP program, banking regulators' loan modification 
activities with respect to institutions it took over, and 
private sector loan modifications being made by mortgage 
servicers.
    On April 13, 2010, the Committee held a hearing on ``Second 
Liens and Other Barriers to Principal Reduction as an Effective 
Foreclosure Mitigation Program.'' The hearing solicited 
testimony from major banking/mortgage servicing firms, on the 
challenges posed by second lien mortgage loans and other 
factors on the willingness and performance of lenders to offer 
troubled borrowers principal reductions in their mortgage 
loans, as part of loan modification efforts.
    The Committee included language in the American 
Reinvestment and Recovery Act of 2009 (P.L. 111-5) protecting 
tenants at foreclosure in properties acquired using 
Neighborhood Stabilization Funds. These protections were 
expanded to tenants in all mortgaged rental properties in the 
Protecting Tenants at Foreclosure Act, which was included as 
part of the Helping Families Save their Home Act (P.L. 111-22). 
Generally, these protections require that tenants residing in 
foreclosed properties receive 90 days notice to vacate at 
notice of foreclosure, except when the purchaser will occupy 
the property as a primary residence.
    The Dodd-Frank Act established a competitive program at the 
U.S. Department of Housing and Urban Development that would 
provide grants to State and local legal organizations for a 
full range of legal assistance to low- and moderate-income 
homeowners and tenants related to home ownership preservation, 
home foreclosure prevention, and tenancy associated with home 
foreclosure. Priority would be given to the 125 metropolitan 
statistical areas with the highest foreclosure rates.
    Language was also included in the FHA Reform Act of 2010 
(H.R. 5072) that would allow the Secretary of HUD to provide 
servicers of covered mortgages reimbursement for the costs of 
obtaining the services of independent third parties to make in-
person contact with mortgagors whose payments are 60 or more 
days past due, solely for the purposes of providing information 
to such mortgagors on available counseling, available mortgage 
loan modification, refinance and assistance programs, and 
available counseling regarding financial management and credit 
risk. H.R. 5072 passed the House on June 10, 2010, and was sent 
to the Senate.

                          HOUSING PRESERVATION

    The Committee held a series of hearings on affordable 
housing preservation in 2009 and 2010, which involved receiving 
testimony from HUD and a broad range of stakeholders. On July 
27, 2010, the Committee ordered favorably reported H.R. 4868, 
the ``Housing Preservation and Tenant Protection Act of 2010,'' 
which would ensure long-term preservation of the HUD's assisted 
housing inventory while protecting poor and low-income 
residents from being displaced by higher rents once the 
affordability restrictions for their unit are lifted.

                     FEDERAL HOUSING ADMINISTRATION

    The Committee examined FHA's ability to oversee approved 
lenders and its ability to prevent fraud in a hearing ``FHA 
Oversight of Loan Originators'' held on January 9, 2009. The 
Committee also examined FHA's FY09 Actuarial Report at a 
December 2, 2009 hearing. On April 22, 2010, the Committee 
favorably reported out the FHA Reform Act of 2010 (H.R. 5072) 
with a favorable recommendation, which provided FHA with 
additional tools to improve the health of the Mutual Mortgage 
Insurance Fund (MMIF). The Act passed the U.S. House of 
Representatives on June 10, 2010 by a margin of 406-4. The 
provision in the Act that allows the Secretary to increase the 
annual mortgage insurance premium in the single-family mortgage 
insurance program became law on August 11, 2010 (P.L. 111-229).

                             RURAL HOUSING

    The Committee held a series of hearings on affordable 
housing preservation in 2009 and 2010, which included testimony 
from the U.S. Department of Agriculture's Office of Rural 
Development and a broad range of stakeholders. On July 27, 
2010, the Committee ordered favorably reported H.R. 4868, the 
``Housing Preservation and Tenant Protection Act of 2010.'' 
Title VIII of H.R. 4868, which is similar to H.R. 2876, the 
``Rural Housing Preservation Act of 2009,'' would ensure long-
term preservation of the Office of Rural Development's assisted 
housing inventory while protecting low-income tenants in rural 
communities.
    The Committee held a markup on April 22, 2010 and ordered 
favorably reported H.R. 5017, a bill to preserve Section 502 
single family direct and guaranteed loan programs. On April 27, 
2010, H.R. 5017 passed the House by a motion to suspend the 
rules with a vote of 352-62. H.R. 5017 was referred to the 
Senate Committee on Banking, Housing, and Urban Affairs. On 
July 29, 2010, the language from H.R. 5017 was incorporated 
into the Supplemental Appropriations Act of 2010, H.R. 4899, 
and signed into law as P.L. 111-212.

                SECTION 8 HOUSING CHOICE VOUCHER PROGRAM

    On July 23, 2009 the Committee ordered reported H.R. 3045, 
the Section 8 Voucher Reform Act of 2009. This legislation 
would reform and streamline the Section 8 voucher program. The 
report was filed on September 30, 2009 (H. Rept. 111-277). No 
further action on H.R. 3045 took place in the 111th Congress.

                           SUPPORTIVE HOUSING

    Title VII of H.R. 4868, reformed the Section 202 Supportive 
Housing for the Elderly program to facilitate the construction 
of new units, and the preservation of existing units. The 
Committee ordered favorably reported H.R. 4868 on July 27, 
2010.

                     AFFORDABLE HOUSING PRODUCTION

    The National Housing Trust Fund was established to 
construct, maintain and preserve affordable rental housing for 
the lowest income families in both rural and urban areas. The 
Committee reviewed HUD's submission of proposed regulations to 
implement the Trust Fund. In H.R. 2847, the House capitalized 
the Trust Fund in the amount of $1 billion, as requested in the 
Obama Administration's FY2010 budget proposal.

                             PUBLIC HOUSING

    The Committee held several hearings on the current state of 
public housing, including the capital needs of the public 
housing properties, new proposals to preserve existing 
properties and proposals to provide public housing agencies and 
residents greater access to supportive services. On June 15, 
2009, Chairman Frank, with Subcommittee Chairwoman Waters, 
wrote to the Secretary of Housing and Urban Development, Shaun 
Donovan, requesting a moratorium on the demolition and 
disposition of public housing units to allow the Committee to 
work with the Department and other interested stakeholders to 
enact legislation that would facilitate the preservation of 
public housing units. The Committee held several hearings on 
the preservation of public housing. The Committee considered 
legislation, H.R. 5814, the Public Housing Reinvestment and 
Tenant Protection Act of 2010, to authorize the Choice 
Neighborhoods program, reform the public housing disposition 
and demolition statute, to increase access to existing funding 
resources for public housing rehabilitation, and to authorize a 
new program for the training of public housing residents as 
home healthcare providers. The Committee ordered reported the 
bill favorably on July 27, 2010. The bill included four titles: 
the Choice Neighborhoods Initiative Act of 2010, the Public 
Housing One-for-One Replacement and Tenant Protection Act of 
2010, the Public Housing Preservation and Rehabilitation Act of 
2010, and the Together We Care Act of 2010.
    The Committee held a hearing on May 25, 2010 on ``The 
Administration's Proposal to Preserve and Transform Public 
Housing: The Transforming Rental Assistance Initiative'' also 
known as PETRA. Witnesses at the hearing included HUD, public 
housing agencies, HUD-assisted multifamily housing owners and 
tenant representatives and advocates. The Administration's 
draft legislation proposed preserving public and HUD-assisted 
housing properties through conversion to a unified project-
based assistance, enhancing housing choices for residents and 
create more uniform policies across HUD rental assistance 
programs. The Committee took no legislative action on PETRA.

                    HOPE VI AND CHOICE NEIGHBORHOODS

    The HOPE VI program provides assistance to public housing 
agencies to improve the living environment of residents of 
severely distressed public housing projects. The 
Administration's budget request for Fiscal Years 2009 and 2010 
included funds for the Choice Neighborhoods Initiative, a grant 
program to replace the HOPE VI program and provide funds for 
the revitalization of public and HUD-assisted rental housing. 
On March 17, 2010, the Committee held a hearing on the 
Administration's proposal for the Choice Neighborhoods 
initiative. Witnesses included representatives from HUD, 
affordable housing advocacy groups and industry 
representatives. Title I of H.R. 5814, the ``Public Housing 
Reinvestment and Tenant Protection Act of 2010, authorizes the 
Choice Neighborhood program. In addition, the new Choice 
Neighborhoods program would include a number of the important 
reforms from previous HOPE VI legislation, including expanding 
the number of replacement housing units, ensuring that 
residents have access to revitalized sites, requiring 
monitoring and tracking of displaced residents, and greater 
resident involvement in the planning and re-development 
process. The Committee reported the bill favorably on July 27, 
2010.

                              FAIR HOUSING

    The Committee favorably reported H.R. 476, the ``Veterans, 
Women, Families with Children, and Persons with Disabilities 
Housing Fairness Act of 2010,''which would authorize nationwide 
fair housing enforcement testing, increase the authorization 
level for a Fair Housing Initiatives Program, and create a 
competitive matching grant program for private nonprofit 
organizations to examine the causes of housing discrimination 
and segregation as well as their effects on education, poverty 
and economic development.
    The Government Accountability Office issued a report (GAO-
10-905) in October 2010 entitled, ``Housing and Community 
Grants: HUD Needs to Enhance Its Requirements and Oversight of 
Jurisdictions' Fair Housing Plans,'' which was requested by 
several Members of the Committee. Members of the Committee who 
requested the report have written to HUD to recommend that the 
Department implement each of the GAO report's recommendations.

                REHABILITATION OF FORECLOSED PROPERTIES

    Congress enacted the Neighborhood Stabilization Program 
(NSP) as part of the Housing and Economic Recovery Act (P.L. 
110-289). NSP provided $4 billion to states and local 
governments for the redevelopment of abandoned and foreclosed 
homes. A second round of funding in the amount of $2 billion 
was included in the American Recovery and Reinvestment Act 
(P.L. 111-5), and a third and final round in the amount of $1 
billion was included in the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (P.L. 111-203). The Committee provided 
oversight to HUD on the implementation of the NSP program. On 
May 22, the Chairman wrote to HUD Secretary Shaun Donovan 
requesting consideration of various implementation and 
regulatory issues, including the purchase discount requirement, 
the definition of abandoned properties, appraisal requirements, 
and rules concerning previously acquired foreclosed properties. 
In response, HUD reduced the purchase discount, clarified the 
definition of abandoned properties, agreed to a case-by-case 
review if necessary of rules concerning previously acquired 
properties and noted the Department's agreement with the 
appraisal requirements.

                           HOUSING COUNSELING

    The Committee provided oversight of the National 
Foreclosure Mitigation Program (NFMC), initially enacted as 
part of the Consolidated Appropriations Act of 2008 (P.L. 110-
161). P.L. 110-161 provided $130 million to HUD approved 
housing counseling intermediaries, state housing finance 
agencies and NeighborWorks America organizations to provide 
foreclosure counseling. Subsequent rounds of funding included 
$177.5 million in P.L. 110-289 along with $25 million for legal 
assistance; $50 million in P.L. 111-8; and $65 million in P.L. 
111-117.
    On March 22, 2010, the Committee held a briefing to provide 
an overview of the housing counseling industry and the role of 
nonprofit housing counselors for Congressional staff.
    The Dodd-Frank Wall Street Reform and Consumer Protection 
Act of 2010 contained a provision to establish an Office of 
Housing Counseling within HUD to boost homeownership and rental 
housing counseling.

                           ENERGY EFFICIENCY

    On April 22, 2010, the Committee ordered favorably reported 
H.R. 2336, the ``GREEN Resources for Energy Efficient 
Neighborhoods Act of 2009,'' which would promote greater energy 
efficiency within HUD's single and multi-family housing 
programs. The report was filed on September 22, 2010 (H. Rept. 
111-619). On September 23, 2010, the Committee held a hearing 
on H.R. 4690, the ``Livable Communities Act of 2010,'' which 
would codify the Office of Sustainable Communities at HUD, 
establish an independent, interagency council on sustainable 
communities within the Executive Branch, and authorize a 
comprehensive planning grant program for municipalities and a 
sustainability challenge grant program to help communities 
execute their comprehensive regional plans.

                              HOMELESSNESS

    On May 19, 2009, the House approved by a vote of 367-54, S. 
896, an omnibus housing bill that included the reauthorization 
of the McKinney-Vento homeless programs. The bill was signed 
into law the next day as P.L. 111-22. The McKinney-Vento 
reauthorization bill that was enacted was virtually identical 
to H.R.7211, the ``Homeless Emergency Assistance and Rapid 
Transition to Housing Act of 2008, which passed the House on 
October 2, 2008, and which had been sponsored by Reps. Gwen 
Moore and cosponsored by Reps. Biggert, Capito, Carson, Davis 
(Geoff), Frank, and Waters. The legislation was the first major 
reauthorization of McKinney-Vento in over 20 years, and makes a 
number of changes designed to improve the effectiveness of 
Federal homeless programs and assistance, including revising 
the definition of ``homeless persons'' and ``chronic 
homelessness,'' targeting more funds towards homeless 
prevention, and improving the delivery of homeless assistance 
in rural areas.

                            VETERANS HOUSING

    On June 16, 2009, the House passed H.R. 403, the ``Homes 
for Heroes Act of 2009'' which authorizes 20,000 new housing 
vouchers for homeless veterans. H.R. 403 was referred to the 
Senate Committee on Banking, Housing, and Urban Affairs on June 
17, 2009.

                        NATIVE AMERICAN HOUSING

    On April 20, 2010, H.R. 3553 the ``Indian Veterans Housing 
Opportunity Act of 2009,'' a bill to ensure HUD housing 
benefits to qualified Native American veterans with 
disabilities passed out of the House by voice vote under a 
suspension of the Rules and was referred to the Senate. On 
September 27, 2010, the Senate passed H.R. 3553 by unanimous 
consent without amendment. On October 12, 2010, H.R. 3553 was 
signed by the President and became P.L. 111-269.
    The Government Accountability Office issued a report (GAO-
10-326) in February 2010, entitled ``Native American Housing: 
Tribes Generally View Block Grant Program as Effective, but 
Tracking of Infrastructure Plans and Investments Needs 
Improvement,'' pursuant to the mandate included in the 2008 
reauthorization of the Native American Housing Assistance and 
Self-Determination Act of 1996. The mandate required the GAO to 
assess the program's effectiveness.

                   COMMUNITY AND ECONOMIC DEVELOPMENT

    The Committee held a hearing on June 19, 2009, on the 
Economic Disaster Area Act of 2009 to explore a legislative 
proposal to set aside CDBG funds for economic disaster areas. 
The Act sought to utilize CDBG as a resource to assist 
communities experiencing high and persistent unemployment, 
particularly in rural areas. On April 20, 2010, the Chairman 
and Subcommittee Chairwoman Waters wrote to the Appropriations 
Subcommittee requesting that $6 million in budget authority for 
the CDBG Section 109 Loan Guarantee Program be restored.

            THE STATE OF THE INTERNATIONAL FINANCIAL SYSTEM

    On September 22, 2010, the Committee received the testimony 
of the Secretary of the Treasury on the state of the 
international financial system, including international 
regulatory issues relevant to the implementation of the Dodd-
Frank Act.

                         INTERNATIONAL FINANCE

    In spring 2009, Chairman Frank cautioned Treasury and 
International Monetary Fund (IMF) officials that unless a 
substantial amount of IMF resources was made available to help 
the world's poorest countries that were being increasingly 
affected by the global economic crisis, there may not be 
sufficient support in the House to secure passage of the 
Administration's request to boost IMF resources. The policy 
goal of insisting that some of the profits from the proposed 
sale of IMF gold should be used to help alleviate the most 
vulnerable countries' burdens, was incorporated as a 
congressional directive in the ``Supplemental Appropriations 
Act, 2009,'' thus strengthening the hand of the Treasury 
Secretary to negotiate such an outcome.
    On May 13, 2009, Chairman Frank wrote to IMF Managing 
Director Dominique Strauss-Kahn to express his appreciation for 
the IMF's commitment under Strauss-Kahn's leadership to showing 
a greater understanding of the social dimension that must be 
present when decisions about economic assistance are made.
    On July 8, 2009, Chairman Frank wrote to IMF Managing 
Director Dominique Strauss-Kahn emphasizing that he was able to 
work to help secure passage of the IMF package in the House in 
large part because he was able to assure his Democratic 
colleagues that the most vulnerable and poor low-income 
countries would not be left behind, and Frank reminded Strauss-
Kahn how important it was to the United States that he push for 
an international consensus on this policy among IMF members.

      U.S. OVERSIGHT OF THE MULTILATERAL DEVELOPMENT INSTITUTIONS

    Throughout the 111th Congress, Committee staff met on a 
regular basis with Treasury officials and representatives from 
the multilateral development banks (MDBs) to examine MDB 
requests for significant general capital increases from donor 
countries, and staff closely monitored the status of proposed 
reforms at each development institution and emphasized that 
these reform agendas would be an integral part of the capital 
increase request process.
    In spring 2009, Committee staff joined a policy expert from 
the AFL-CIO, a Washington representative of the International 
Trade Union Confederation, and a trade and labor expert from 
the Carnegie Endowment for International Peace to negotiate 
with the World Bank a moratorium on the Bank's use of its 
``Employing Workers'' Indicator, which encourages the reduction 
of workers' protection, in its annual ``Doing Business'' 
report. The Bank also agreed to convene a consultative group to 
propose possible changes to the Indicator and to work to 
develop a new workers' protection indicator that would 
encourage compliance with core labor standards and improved 
social protection.
    On March 23, 2010, Chairman Frank spoke at the G-20 meeting 
of Labor Ministers in Washington, D.C., on the importance of 
governments integrating the expertise of their respective labor 
ministries when loans or projects affecting labor markets and 
worker rights come before the Boards of the multilateral 
development institutions.
    On May 25, 2010, Chairman Frank wrote to World Bank 
President Zoellick regarding ongoing biases reflected in the 
World Bank's annual ``Doing Business'' report.
    On February 18, 2009, Chairman Frank and Senate Chairman 
Leahy wrote to Treasury Secretary Geithner expressing concern 
about the inadequacy of the Asian Development Bank's (AsDF) 
third draft of its safeguard policy update, including several 
areas in which the AsDF fell short of international standards.
    In June 2009, Committee staff participated in the Inter-
American Development Bank's (IDB's) Washington, D.C., 
consultations with IDB officials and civil society 
representatives to provide input into a significant overhaul of 
the IDB's inspection mechanism. Committee staff followed up 
with members of the IDB's executive board, and in particular 
with members of the Board's Organization, Board Matters and 
Human Resources Committee, to stress that congressional 
consideration of any increase in the IDB's capital base would 
be linked, in part, to the degree to which the new mechanism 
was independent from Bank management, its overall transparency, 
the adequacy of the mechanism's budget, the elimination of 
conflicts of interest, and the degree of requester 
participation in the process.
    In July 2009, Committee staff visited projects in Haiti 
financed by the Inter-American Development Bank (IDB) and 
participated in the meetings of the Governors of the IDB from 
the Caribbean member countries.
    On September 10, 2009, the Committee held a hearing titled, 
``The World Bank's Disclosure Policy Review and the Role of 
Democratic Participatory Processes in Achieving Successful 
Development Outcomes.'' The Committee reviewed the World Banks' 
new proposed policy on information disclosure and examined how 
the lack of direct democratic accountability at multilateral 
institutions like the World Bank makes it necessary that other 
control mechanisms--such as increased and timely access to Bank 
documents, greater transparency and parliamentary oversight, 
and broad public debate about the Bank's development policies--
are in place to ensure that broad, global international 
interests are being promoted. The Committee also examined the 
factors that drive or hinder change in complex international 
institutions and the principal instruments and mechanisms that 
leverage change. The Committee heard testimony from Nobel 
Laureate in Economics Joseph E. Stiglitz; Mr. Richard E. 
Bissell, Executive Director of the Policy and Global Affairs 
Division at the National Academy of Science; Professor Alnoor 
Ebrahim, Associate Professor, Harvard Business School; Thomas 
S. Blanton, Director of the National Security Archive at George 
Washington University; and Ms. Vijaya Ramachandran, Senior 
Fellow, Center for Global Development.
    After examining at a hearing last Congress the 
Administration's proposal to support a multilateral ``Clean 
Technology Fund'' to help developing economies deploy clean 
technology to reduce greenhouse gas emissions, the Committee 
worked with the leadership and the House Appropriations 
Committee to include in the ``Consolidated Appropriations Act, 
2010''authorization for U.S. contributions to a ``Clean 
Technology Fund'' at the World Bank, which included policy 
conditions on country and project eligibility, restricted the 
types of projects, technologies and economic sectors that could 
receive funds, and limited the amount of funds that could be 
allocated to any one country.
    On March 26, 2010, Chairman Frank and Senate Chairmen Kerry 
and Leahy wrote to World Bank President Zoellick asking the 
World Bank for more environmental and social commitments from 
Eskom Holdings Ltd. before lending the South African utility 
$3.75 billion to build one of the world's largest coal-fired 
power plants.
    On May 26, 2010, Chairman Frank and Representative McGovern 
sent a letter to the Department of the Treasury and IDB 
President Moreno recommending Ms. Korinna Horta for one of the 
five open Panel positions on the IDB's newly established 
``Independent Consultation and Investigation Mechanism.'' In 
recommending Ms. Horta, the members noted her strong background 
in international economic, social, and environmental 
development, her extensive investigative fieldwork, her 
experience working with indigenous peoples and other vulnerable 
population groups, and her understanding of the missions and 
policy frameworks of the multilateral development institutions.
    On July 21, 2010, Representative Waters and members of the 
Committee organized a letter to President Obama urging him to 
include an expanded debt relief effort as part of his plan to 
work to achieve the Millenium Development Goals.

                     MULTILATERAL DEVELOPMENT FUNDS

    In June 2009, the Committee worked with the House and 
Senate Appropriations Committees to incorporate into the 
``Supplemental Appropriations Act, 2009'' authorizations for 
U.S. contributions to the 15th replenishment of the 
International Development Association and the 11th 
replenishment of the African Development Fund, as well as 
Committee-passed policy language directing the Secretary of the 
Treasury to work to reform the anti-worker indicator of the 
World Bank's annual ``Doing Business'' report and to increase 
the independence and effectiveness of the World Bank's 
Inspection Panel.
    On July 21, 2009, Chairman Frank, Chairman Obey, Chairman 
Lowey, and Chairman Meeks sent a letter to President Obama 
cautioning the President that continued insistence on his right 
through signing statements to ignore provisions of laws 
providing funds to international financial institutions would 
make it highly unlikely that such funds would be provided in 
the future.
    As the 111th Congress began to move towards adjournment, 
Committee staff coordinated with the House and Senate 
Appropriations Committees and the Senate Foreign Relations 
Committee in an effort to include in the year's final 
appropriations measure authorizations for U.S. participation in 
the Asian Development Bank's 5th general capital increase, the 
Asian Development Fund's 9th replenishment, and authorization 
and policy language for the Clean Technology Fund.

                      TRADE IN FINANCIAL SERVICES

    The Committee continued to monitor the negotiation of 
financial services and investment provisions in the U.S.-Korea 
Free Trade Agreement, with particular attention to the 
elimination of barriers to the delivery of financial services 
in Korea, such as foreign ownership limitations, product and 
service restrictions, client restrictions, and non-transparent 
regulations.

           REVENUE TRANSPARENCY IN THE EXTRACTIVE INDUSTRIES

    Building on the Committee's early leadership last Congress 
when it held two hearings examining the importance of revenue 
transparency in the extractive industries, especially in 
resource-rich developing countries, a Senate provision 
requiring oil, gas, and mining companies listed on U.S. 
exchanges to publicly disclose the payments they make to 
governments for the extraction of natural resources was 
included as part of the Dodd-Frank financial reform conference 
report.

                SUDAN AND IRAN SANCTIONS AND DIVESTMENT

    On February 23, 2009, Chairman Frank, Representative 
Capuano, and Representative Barbara Lee requested a report from 
the GAO on the Sudan Accountability and Divestment Act of 2007 
(P.L. 110-174) to identify and evaluate actions that have been 
taken to implement the voluntary divestment provisions and 
compliance with the contract prohibition provisions in the Act.
    On April 28, 2009, the Committee marked up H.R. 1327, the 
``Iran Sanctions Enabling Act of 2009.'' H.R. 1327 would 
outline standard procedures and provide federal authority for 
states, local governments, and educational institutions to 
divest their public funds, if they choose, from foreign firms 
that have $20 million or more invested in Iran's energy sector. 
The bill would also prohibit legal action against asset 
managers who divest from or elect not to invest in securities 
of companies doing that level of business in Iran's energy 
sector. The House passed two similar proposals in the last 
Congress, although the Senate did not act on either bill. The 
Committee ordered the bill to be reported (as amended) by voice 
vote. On October 14, 2009, the measure passed the House by a 
vote of 414-6 under suspension of the rules.
    On April 22, 2010, the Speaker appointed Chairman Frank, 
Chairman Meeks, and Representative Garrett as conferees from 
the Committee on Financial Services for consideration of 
certain provisions of H.R. 2194, the Comprehensive Iran 
Sanctions, Accountability, and Divestment Act of 2010, falling 
within the jurisdiction of the House Financial Services 
Committee. The Senate version of the bill included legislative 
language similar to the divestment provisions of the Iran 
Sanctions Enabling Act, and this language was successfully 
incorporated into the final conference report of the 
comprehensive Iran sanctions measure. H.R. 2194 became Public 
Law 111-195 on July 1, 2010.

                      FULL COMMITTEE HEARINGS HELD

------------------------------------------------------------------------
      Serial No.                   Title                   Date(s)
------------------------------------------------------------------------
111-1.................  Promoting Bank Liquidity    February 3, 2009
                         and Lending Through
                         Deposit Insurance Hope
                         for Homeowners, and other
                         Enhancements (Full).
111-3.................  An Examination of the       February 10, 2009
                         Extraordinary Efforts by
                         the Federal Reserve Bank
                         to Provide Liquidity in
                         the Current Financial
                         Crisis (Full).
111-4.................  TARP Accountability: Use    February 11, 2009
                         of Federal Assistance by
                         the First TARP Recipients
                         (Full).
111-7.................  Monetary Policy and the     February 25, 2009
                         State of the Economy,
                         Part I (Full).
111-8.................  Monetary Policy and the     February 26, 2009
                         State of the Economy,
                         Part II (Full).
111-14................  Perspectives on Regulation  March 17, 2009
                         of Systemic Risk in the
                         Financial Services
                         Industry (Full).
111-18................  Federal and State           March 20, 2009
                         Enforcement of Financial
                         Consumer and Investor
                         Protection Laws (Full).
111-19................  Seeking Solutions: Finding  March 23, 2009
                         Credit for Small and Mid-
                         Size Businesses in
                         Massachusetts (Full).
111-20................  Oversight of the Federal    March 24, 2009
                         Government's Intervention
                         at American International
                         Group (Full).
111-21................  Exploring the Balance       March 25, 2009
                         between Increased Credit
                         Availability and Prudent
                         Lending Standards (Full).
111-22................  Addressing the Need for     March 26, 2009
                         Comprehensive Regulatory
                         Reform (Full).
111-25................  H.R. 1728, the Mortgage     April 23, 2009
                         Reform and Anti-Predatory
                         Lending Act of 2009
                         (Full).
111-26................  The Effect of the Lehman    May 5, 2009
                         Brothers Bankruptcy on
                         State and Local
                         Governments (Full).
111-34................  Capital Loss, Corruption    May 19, 2009
                         and the Role of Western
                         Financial Institutions
                         (Full).
111-36................  The Section 8 Voucher       May 21, 2009
                         Reform Act (Full).
111-37................  Legislative Proposals to    May 21, 2009
                         Improve the Efficiency
                         and Oversight of
                         Municipal Finance (Full).
111-42................  Compensation Structure and  June 11, 2009
                         Systemic Risk (Full).
111-48................  The Economic Disaster Area  June 19, 2009
                         Act of 2009 (Full).
111-49................  Regulatory Restructuring:   June 24, 2009
                         Enhancing Consumer
                         Financial Products
                         Regulation (Full).
111-51................  Legislative Options for     June 25, 2009
                         Preserving Federally- and
                         State-Assisted Affordable
                         Housing and Preventing
                         Displacement of Low-
                         Income, Elderly and
                         Disabled Tenants (Full).
111-54................  H.R. 3068, TARP for Main    July 9, 2009
                         Street Act of 2009 (Full).
111-55................  A Review of the             July 10, 2009
                         Administration's Proposal
                         to Regulate the Over-the-
                         Counter Derivatives
                         Market (Full).
111-58................  Banking Industry            July 15, 2009
                         Perspectives on the Obama
                         Administration's
                         Financial Regulatory
                         Reform Proposals (Full).
111-61................  Community and Consumer      July 16, 2009
                         Advocates' Perspectives
                         on the Obama
                         Administration's
                         Financial Regulatory
                         Reform Proposals (Full).
111-62................  Industry Perspectives on    July 17, 2009
                         the Obama
                         Administration's
                         Financial Regulatory
                         Reform Proposals (Full).
111-64................  Monetary Policy and the     July 21, 2009
                         State of the Economy
                         (Full).
111-65................  Systemic Risk: Are Some     July 21, 2009
                         Institutions Too Big to
                         Fail and If So, What
                         Should We Do About It?
                         (Full).
111-66................  Regulatory Perspectives on  July 22, 2009
                         the Obama
                         Administration's
                         Financial Regulatory
                         Reform Proposals, Part I
                         (Full).
111-68................  Regulatory Perspectives on  July 24, 2009
                         the Obama
                         Administration's
                         Financial Regulatory
                         Reform Proposals, Part II
                         (Full).
111-73................  The World Bank's            September 10, 2009
                         Disclosure Policy Review
                         and the Role of
                         Democratic Participatory
                         Processes in Achieving
                         Successful Development
                         Outcomes (Full).
111-74................  Proposals to Enhance the    September 16, 2009
                         Community Reinvestment
                         Act (Full).
111-76................  The Administration's        September 23, 2009
                         Proposals for Financial
                         Regulatory Reform (Full).
111-77................  Federal Regulator           September 23, 2009
                         Perspectives on Financial
                         Regulatory Reform
                         Proposals (Full).
111-78................  Experts' Perspectives on    September 24, 2009
                         Systemic Risk and
                         Resolution Issues (Full).
111-80................  H.R. 1207, the Federal      September 25, 2009
                         Reserve Transparency Act
                         of 2009 (Full).
111-81................  Perspectives on the         September 30, 2009
                         Consumer Financial
                         Protection Agency (Full).
111-83................  Federal Reserve             October 1, 2009
                         Perspectives on Financial
                         Regulatory Reform
                         Proposals (Full).
111-84................  Capital Markets Regulatory  October 6, 2009
                         Reform: Strengthening
                         Investor Protection,
                         Enhancing Oversight of
                         Private Pools of Capital,
                         and Creating a National
                         Insurance Office (Full).
111-85................  Reform of the Over-the-     October 7, 2009
                         Counter Derivative
                         Market: Limiting Risk and
                         Ensuring Fairness (Full).
111-86................  H.R. 2382, the Credit Card  October 8, 2009
                         Interchange Fees Act of
                         2009 and H.R. 3639, the
                         Expedited CARD Reform for
                         Consumers Act of 2009
                         (Full).
111-88................  Systemic Regulation,        October 29, 2009
                         Prudential Matters,
                         Resolution Authority, and
                         Securitization (Full).
111-89................  The Overdraft Protection    October 30, 2009
                         Act of 2009 (Full).
111-91................  FY09 FHA Actuarial Report   December 2, 2009
                         (Full).
111-92................  H.R. 2266, The Reasonable   December 3, 2009
                         Prudence in Regulation
                         Act; and H.R. 2267, the
                         Internet Gambling
                         Regulation, Consumer
                         Protection, and
                         Enforcement Act (Full).
111-93................  The Private Sector and      December 8, 2009
                         Government Response to
                         the Mortgage Foreclosure
                         Crisis (Full).
111-95................  Covered Bonds: Prospects    December 15, 2009
                         for a U.S. Market Going
                         Forward (Full).
111-98................  Compensation in the         January 22, 2010
                         Financial Industry (Full).
111-101...............  Prospects for Employment    February 23, 2010
                         Growth: Is Additional
                         Stimulus Needed? (Full).
111-102...............  Monetary Policy and the     February 24, 2010
                         State of the Economy
                         (Full).
111-103...............  Compensation in the         February 25, 2010
                         Financial Industry
                         Government Perspectives
                         (Full).
111-104...............  Condition of Small          February 26, 2010
                         Business and Commercial
                         Real Estate Lending in
                         Local Markets (Full).
111-106...............  Community Development       March 9, 2010
                         Financial Institutions
                         (CDFIs): Their Unique
                         Role and Challenges
                         Serving Lower-Income,
                         Underserved, and Minority
                         Communities (Full).
111-112...............  Examining the Link Between  March 17, 2010
                         Fed Bank Supervision and
                         Monetary Policy (Full).
111-115...............  Housing Finance--What       March 23, 2010
                         Should the New System Be
                         Able to Do?: Part I--
                         Government and
                         Stakeholder Perspectives
                         (Full).
111-118...............  Unwinding Emergency         March 25, 2010
                         Federal Reserve Liquidity
                         Programs and Implications
                         for Economic Recovery
                         (Full).
111-120...............  Second Liens and Other      April 13, 2010
                         Barriers to Principal
                         Reduction as an Effective
                         Foreclosure Mitigation
                         Program (Full).
111-121...............  Housing Finance--What       April 14, 2010
                         Should the New System Be
                         Able to Do?: Part II--
                         Government and
                         Stakeholder Perspectives
                         (Full).
111-124...............  Public Policy Issues        April 20, 2010
                         Raised by the Report of
                         the Lehman Bankruptcy
                         Examiner (Full).
111-137...............  Initiatives to Promote      May 18, 2010
                         Small Business Lending,
                         Jobs, and Economic Growth
                         (Full).
111-140...............  The Administration's        May 25, 2010
                         Proposal to Preserve and
                         Transform Public and
                         Assisted Housing: The
                         Transforming Rental
                         Assistance Initiative
                         (Full).
111-146...............  H.R. 2267, The Internet     July 21, 2010
                         Gambling Regulation,
                         Consumer Protection, and
                         Enforcement Act (Full).
111-147...............  Monetary Policy and the     July 22, 2010
                         State of the Economy,
                         Part I (Full).
111-148...............  Monetary Policy and the     July 22, 2010
                         State of the Economy,
                         Part II (Full).
111-150...............  Alternatives for Promoting  July 29, 2010
                         Liquidity in the
                         Commercial Real Estate
                         Markets, Supporting Small
                         Businesses and Increasing
                         Job Growth (Full).
111-154...............  Legislative Proposals to    September 16, 2010
                         Address Concerns Over the
                         SEC's New Confidentiality
                         Provision (Full).
111-155...............  The State of the            September 22, 2010
                         International Financial
                         System, Including
                         International Regulatory
                         Issues Relevant to the
                         Implementation of the
                         Dodd-Frank Act (Full).
111-156...............  Implementation of Higher    September 22, 2010
                         FHA Loan Fees and Pending
                         Legislative Proposals to
                         Strengthen the FHA MMIF
                         Fund and Improve Lender
                         Oversight (Full).
111-157...............  Perspectives on the         September 23, 2010
                         Livable Communities Act
                         of 2010 (Full).
111-160...............  Executive Compensation      September 24, 2010
                         Oversight after the Dodd-
                         Frank Wall Street Reform
                         and Consumer Protection
                         Act (Full).
111-164...............  The Future of Housing       September 29, 2010
                         Finance--A Review of
                         Proposals to Address
                         Market Structure and
                         Transition (Full).
111-168...............  A Proposal to Increase the  December 8, 2010
                         Offering Limit under SEC
                         Regulation A.
------------------------------------------------------------------------

 Subcommittee on Capital Markets, Insurance, and Government Sponsored 
                              Enterprises


          (Ratio: 30-20)

 PAUL E. KANJORSKI, Pennsylvania, 
             Chairman

SCOTT GARRETT, New Jersey            GARY L. ACKERMAN, New York
TOM PRICE, Georgia                   BRAD SHERMAN, California
MICHAEL N. CASTLE, Delaware          MICHAEL E. CAPUANO, Massachusetts
PETER KING, New York                 RUBEN HINOJOSA, Texas
FRANK. D. LUCAS, Oklahoma            CAROLYN McCARTHY, New York
DONALD A. MANZULLO, Illinois         JOE BACA, California
EDWARD R. ROYCE, California          STEPHEN F. LYNCH, Massachusetts
JUDY BIGGERT, Illinois               BRAD MILLER, North Carolina
SHELLEY MOORE CAPITO, West Virginia  DAVID SCOTT, Georgia
JEB HENSARLING, Texas                NYDIA M. VELAZQUEZ, New York
ADAM PUTNAM, Florida                 CAROLYN MALONEY, New York
J. GRESHAM BARRETT, South Carolina   MELISSA L. BEAN, Illinois
JIM GERLACH, Pennsylvania            GWEN MOORE, Wisconsin
JOHN CAMPBELL, California            PAUL W. HODES, New Hampshire
MICHELE BACHMANN, Minnesota          RON KLEIN, Florida
THADDEUS McCOTTER, Michigan          ED PERLMUTTER, Colorodo
RANDY NEUGEBAUER, Texas              JOE DONNELLY, Indiana
KEVIN McCARTHY, California           ANDRE CARSON, Indiana
BILL POSEY, Florida                  JACKIE SPEIER, California
LYNN JENKINS, Kansas                 TRAVIS CHILDERS, Mississippi
                                     CHARLES A. WILSON, Ohio
                                     BILL FOSTER, Illinois
                                     WALT MINNICK, Idaho
                                     JOHN ADLER, New Jersey
                                     MARY JO KILROY, Ohio
                                     SUZANNE KOSMAS, Florida
                                     ALAN GRAYSON, Florida
                                     JIM HIMES, Connecticut
                                     GARY PETERS, Michigan
                                       
SPENCER BACHUS, Alabama, ex officio  BARNEY FRANK, Massachusetts, ex 
                                     officio

                  Subcommittee Legislative Activities


                    INVESTOR PROTECTION ACT OF 2009

                              (H.R. 3817)


Summary

    H.R. 3817, the Investor Protection Act of 2009, would 
provide the U.S. Securities and Exchange Commission (SEC) with 
additional authorities to protect investors from violations of 
the securities laws and to enhance the agency's enforcement 
powers. The bill additionally seeks to remedy failures of the 
SEC to detect the Madoff Ponzi scheme and Stanford Financial 
frauds, two incidents that demonstrated deficiencies in the 
existing securities regulatory structure.
    H.R. 3817 also includes an expeditious, independent, 
comprehensive study of the entire securities industry by a high 
caliber body to identify reforms and force the SEC and other 
entities to put in place further improvements designed to 
ensure superior investor protection. The bill includes a 
whistleblower bounty program to create incentives to identify 
wrongdoing in our securities markets and reward individuals 
whose tips lead to successful enforcement actions. Finally, 
among many other provisions, the bill would allow for the 
establishment of a fiduciary duty standard for broker-dealers 
providing personalized investment advice.

Legislative History

    On October 1, 2009, Capital Markets Subcommittee Chairman 
Kanjorski released a discussion draft of the Investor 
Protection Act.
    On October 6, 2009, the Committee held a hearing at which 
Subcommittee Chairman Kanjorski presided entitled ``Capital 
Markets Regulatory Reform: Strengthening Investor Protection, 
Enhancing Oversight of Private Pools of Capital, and Creating a 
National Insurance Office.'' The first panel at this hearing 
examined the discussion draft of the Investor Protection Act.
    Chairman Kanjorski revised and introduced H.R. 3817, the 
Investor Protection Act of 2009, on October 15, 2009, and the 
bill was referred to the Committee on Financial Services.
    On November 4, 2009, the Committee ordered reported H.R. 
3817 to the House, as amended, with a favorable recommendation, 
by a vote of 41 to 28.
    The Committee subsequently consolidated H.R. 3817 along 
with several other Committee-passed bills to reform the 
regulation of the financial services industry into one 
legislative package, and on December 11, 2009, the House passed 
H.R. 4173, the Wall Street Reform and Consumer Protection Act, 
by a vote of 223 to 202.
    After convening a conference to reconcile the House-passed 
and Senate-approved financial services regulatory reform bills, 
the House adopted the final version of H.R. 4173 on June 29, 
2010.
    President Obama subsequently signed H.R. 4173, the Dodd-
Frank Wall Street Reform and Consumer Protection Act, into law 
on July 21, 2010. Title IX of the law adopts many of the 
reforms first proposed in H.R. 3817.

                      FEDERAL INSURANCE OFFICE ACT

                              (H.R. 2609)


Summary

    The Federal Insurance Office Act establishes a new office 
within the U.S. Department of the Treasury to gather 
information about the insurance industry, to provide analysis 
and advice to the Administration and Congress on insurance 
matters, and to monitor the insurance industry for systemic 
risk purposes, among other duties and responsibilities.

Legislative History

    On May 21, 2009, Capital Markets Subcommittee Chairman 
Kanjorski, Oversight Subcommittee Ranking Member Judy Biggert 
and five other members of the Financial Services Committee 
introduced H.R. 2609, the Insurance Information Act of 2009. 
The Capital Markets Subcommittee had approved a substantially 
similar bill in the 110th Congress.
    On October 1, 2009, Chairman Kanjorski released a 
discussion draft of a manager's amendment to H.R. 2609. Among 
other modifications, this discussion draft changed the bill's 
name to the Federal Insurance Office Act.
    On October 6, 2009, the Committee held a hearing entitled 
``Capital Markets Regulatory Reform: Strengthening Investor 
Protection, Enhancing Oversight of Private Pools of Capital, 
and Creating a National Insurance Office.'' The third panel at 
this hearing examined H.R. 2609 and the manager's amendment.
    On October 16, 2009, the Federal Insurance Office Act was 
offered as an amendment in the nature of a substitute to H.R. 
2609. On December 2, 2009, the Committee favorably reported 
H.R. 2609 by a voice vote.
    The Committee subsequently consolidated H.R. 2609 and the 
other Committee-passed financial services regulatory reform 
bills into one legislative package, and on December 11, 2009, 
the House passed H.R. 4173, the Wall Street Reform and Consumer 
Protection Act.
    After convening a conference to reconcile the House-passed 
and Senate-approved financial services regulatory reform bills, 
the House adopted the final version of H.R. 4173 on June 29, 
2010.
    President Obama subsequently signed the Dodd-Frank Wall 
Street Reform and Consumer Protection Act into law on July 21, 
2010. Subtitle A of Title V of the law creates the Federal 
Insurance Office.

         ACCOUNTABILITY AND TRANSPARENCY IN RATING AGENCIES ACT

                              (H.R. 3890)


Summary

    H.R. 3890, the Accountability and Transparency in Rating 
Agencies Act, would require new disclosures by a Nationally 
Recognized Statistical Rating Organization (NRSRO) of revenues; 
add a duty to supervise NRSRO employees and give the SEC the 
authority to sanction supervisors for failing to do so; 
mitigate the conflicts arising from the issuer-pay model; 
enhance NRSRO accountability through liability reform; require 
each NRSRO to have a board with at least two independent 
directors, and provide requirements for compensation, term and 
duties; and add a one-year ban on the activities of issuers who 
hire former NRSRO employees.

Legislative History

    On May 19, 2009, the Capital Markets Subcommittee convened 
a hearing entitled ``Approaches to Improving Credit Rating 
Agency Regulation.''
    On September 25, 2009, Capital Markets Subcommittee 
Chairman Kanjorski released a discussion draft of a bill to 
enhance the oversight, accountability and transparency of 
credit rating agencies called the Accountability and 
Transparency in Rating Agencies Act.
    On September 30, 2009, the subcommittee held an additional 
hearing entitled ``Reforming Credit Rating Agencies.'' The 
witnesses testified about their views of the September 25 
discussion draft on credit rating agency regulatory reform.
    On October 21, 2009, Subcommittee Chairman Kanjorski 
introduced a revised version of the Accountability and 
Transparency in Rating Agencies Act as H.R. 3890, which was 
then referred to the Financial Services Committee.
    On October 27, 2010, the Committee held a markup of H.R. 
3890. The Committee amended and favorably reported the bill by 
a vote of 49 to 14.
    The Committee then incorporated H.R. 3890 as Subtitle B of 
Title V of H.R. 4173, the Wall Street Reform and Consumer 
Protection Act. H.R. 4173 passed the House on December 11, 
2009, by a vote of 223 to 202.
    Subtitle C of Title IX of the Dodd-Frank Act, which passed 
the House on June 29, 2010, included many of the rating agency 
reform provisions first considered by the Subcommittee at its 
hearings on credit rating agencies.
    President Obama signed H.R. 4173, the Dodd-Frank Wall 
Street Reform and Consumer Protection Act, into law on July 21, 
2010.

       PRIVATE FUND INVESTMENT ADVISERS REGISTRATION ACT OF 2009

                              (H.R. 3818)


Summary

    H.R. 3818, the Private Fund Investment Advisers 
Registration Act of 2009, would eliminate the private adviser 
exemption contained in the Investment Advisers Act of 1940. The 
change would subject most private fund advisers to registration 
requirements. The bill would also authorize the SEC to require 
registered investment advisers to provide reports regarding the 
private funds they advise. The legislation additionally 
clarifies the authority of the SEC to issue regulations to 
define terms and differentiate between persons and matters in 
the Investment Advisers Act as it determines necessary.

Legislative History

    On May 7, 2009, the Capital Markets Subcommittee held a 
hearing entitled ``Perspectives on Hedge Fund Registration.'' 
Among other things, this hearing examined H.R. 711, the Hedge 
Fund Adviser Registration Act of 2009, which Representatives 
Michael E. Capuano and Michael N. Castle introduced on January 
27, 2009.
    October 1, 2009, Capital Markets Subcommittee Chairman 
Kanjorski released a discussion draft of the Private Fund 
Investment Advisers Registration Act of 2009.
    On October 6, 2009, the Committee, with assistance from the 
subcommittee, held a three-panel legislative hearing entitled 
``Capital Markets Regulatory Reform: Strengthening Investor 
Protection, Enhancing Oversight of Private Pools of Capital, 
and Creating a National Insurance Office.'' The hearing's 
second panel addressed the reforms found in the discussion 
draft of the Private Fund Investment Advisers Registration Act 
of 2009.
    On October 15, 2009, Subcommittee Chairman Kanjorski 
introduced the Private Fund Investment Advisers Registration 
Act of 2009 as H.R. 3818, and the bill was referred to the 
Financial Services Committee.
    The Committee marked up H.R. 3818 on October 27, 2010, and 
favorably reported the bill, as amended, by a record vote of 67 
to 1.
    The Committee subsequently incorporated H.R. 3818 as 
Subtitle A of Title V of H.R. 4173, the Wall Street Reform and 
Consumer Protection Act. H.R. 4173 passed the House on December 
11, 2009, by a vote of 223 to 202.
    After convening a conference to reconcile the House-passed 
and Senate-approved financial services regulatory reform bills, 
the House adopted the final version of H.R. 4173 on June 29, 
2010. As enacted into law on July 21, 2010, Subtitle C of Title 
IX of the Dodd-Frank Act contains many of the provisions 
initially found in H.R. 3818.

                   MORTGAGE SERVICER SAFE HARBOR ACT

                               (H.R. 788)


Summary

    H.R. 788, the Mortgage Servicer Safe Harbor Act, would 
provide a safe harbor from investor lawsuits for mortgage 
servicers who engage in specified mortgage loan modifications.

Legislative History

    Capital Markets Subcommittee Chairman Kanjorski, along with 
Chairman Frank and Representative Castle, introduced H.R. 788 
on February 2, 2009. The bill was referred to the Financial 
Services Committee.
    On February 4, 2009, the Committee held a markup of H.R. 
788, after which the bill was ordered reported to the House, as 
amended, with a favorable recommendation by voice vote.
    While H.R. 788 was not voted on separately in the House, 
the safe harbor provision became part of H.R. 1106, the Helping 
Families Save Their Homes Act, which passed the House on March 
5, 2009.

             NONADMITTED AND REINSURANCE REFORM ACT OF 2009

                              (H.R. 2571)


Summary

    H.R. 2571, the Nonadmitted and Reinsurance Reform Act of 
2009, would streamline the regulation of surplus lines of 
insurance and reinsurance through State-based reforms.

Legislative History

    On May 21, 2009, Oversight Subcommittee Chairman Dennis 
Moore and Representative Garrett reintroduced the Nonadmitted 
and Reinsurance Reform Act of 2009 as H.R. 2571, which the 
Capital Markets Subcommittee had reviewed and the Committee had 
favorably reported in both the 109th Congress and the 110th 
Congress.
    On September 9, 2009, the House passed H.R. 2571 by a voice 
vote.
    The text of H.R. 2571 was subsequently added to H.R. 4173, 
the Wall Street Reform and Consumer Protection Act, which 
passed the House on December 11, 2009.
    The House and Senate convened a conference to reconcile 
their respective financial services regulatory reform bills. 
The House later adopted the final version of H.R. 4173 on June 
29, 2010. President Obama subsequently signed H.R. 4173, the 
Dodd-Frank Wall Street Reform and Consumer Protection Act, into 
law on July 21, 2010. As enacted, Title V of the law contains 
in substantially similar form the reforms first proposed by 
H.R. 2571.

                       SHAREHOLDER PROTECTION ACT

                              (H.R. 4790)


Summary

    H.R. 4790, the Shareholder Protection Act, came in response 
to the U.S. Supreme Court's 5-4 decision in Citizens United v. 
Federal Election Commission, where the Court found that for-
profit and non-profit corporations can spend unlimited amounts 
of money from their general treasury funds to influence federal 
elections. The bill would make corporate political expenditures 
more transparent and give shareholders more say in how those 
dollars are spent.

Legislative History

    On March 9, 2010, H.R. 4790, the Shareholder Protection Act 
of 2010, was referred to the House Financial Services Committee 
after the bill's introduction by Representative Capuano.
    On March 11, 2010, the Capital Markets Subcommittee held a 
hearing entitled ``Corporate Governance after Citizens United'' 
at which it reviewed H.R. 4790.
    On July 29, 2010, the Committee held a mark-up session on 
the H.R. 4790. The Committee ordered the bill reported, as 
amended, to the full House by a vote of 35 to 28. No further 
action was taken on this legislation during the 111th Congress.

                  SHAREHOLDER EMPOWERMENT ACT OF 2009

                              (H.R. 2861)


                CORPORATE GOVERNANCE REFORM ACT OF 2009

                              (H.R. 3272)


                 PROXY VOTING TRANSPARENCY ACT OF 2009

                              (H.R. 3351)


Summary

    H.R. 2861, H.R. 3272 and H.R. 3351 generally would improve 
corporate governance by modifying the board election process, 
separating the functions of CEO and chairman within a public 
company, establishing risk-management committees, and enhancing 
voting transparency.

Legislative History

    On June 12, 2009, Representative Gary C. Peters and 11 
other Members of Congress introduced H.R. 2861, the Shareholder 
Empowerment Act of 2009. The bill was referred to the Financial 
Services Committee for review.
    Representative Keith Ellison introduced H.R. 3272, the 
Corporate Governance Reform Act of 2009, on July 21, 2009, 
after which the bill was referred to the Financial Services 
Committee for review.
    Introduced on July 27, 2009, by Representative Mary Jo 
Kilroy, H.R. 3351, the Proxy Voting Transparency Act, was 
referred to the Financial Services Committee for review.
    On April 21, 2010, the Capital Markets Subcommittee held a 
hearing entitled ``Corporate Governance and Shareholder 
Empowerment.'' The hearing focused on H.R. 2861, H.R. 3272 and 
H.R. 3351.
    Several corporate governance reform provisions from these 
three bills, including the provision on proxy access, were 
later included in Title IX of H.R. 4173, the Dodd-Frank Wall 
Street Reform and Consumer Protection Act, which President 
Obama signed into law on July 21, 2010.

                    HOMEOWNERS' DEFENSE ACT OF 2010

                              (H.R. 2555)


Summary

    H.R. 2555, Homeowners' Defense Act of 2010, would establish 
a nonprofit, nonfederal entity to issue securities linked to 
catastrophe risks insured or reinsured through States and 
State-sponsored providers of natural catastrophe insurance.

Legislative History

    Representative Ron Klein introduced H.R. 2555, the 
Homeowners' Defense Act of 2009, on May 21, 2009. The bill was 
referred to the Financial Services Committee for review.
    On March 10, 2010, the Capital Markets Subcommittee 
convened with the Subcommittee on Housing and Community 
Opportunity a joint hearing entitled ``Approaches to Mitigating 
and Managing Natural Catastrophe Risk: H.R. 2555, The 
Homeowners' Defense Act.'' The hearing examined issues related 
to natural disaster insurance.
    The joint hearing on H.R. 2555 helped to inform the work of 
the Committee and with the assistance of Subcommittee staff, 
the Committee considered and reported H.R. 2555 to the House, 
as amended, with a favorable recommendation by a record vote of 
39 yeas and 26 nays, on April 27, 2010.
    On September 30, 2010, twenty-five representatives from the 
State of Florida wrote to Speaker Pelosi to request that the 
bill be brought to the House floor for consideration.

  NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS REFORM ACT OF 
                                  2010

                              (H.R. 2554)


Summary

    H.R. 2554, the National Association of Registered Agents 
and Brokers Reform Act of 2010, would establish a reciprocal 
licensing process for insurance agents and brokers across State 
lines.

Legislative History

    Representative David Scott, along with Representative Randy 
Neugebauer, introduced H.R. 2554, the National Association of 
Registered Agents and Brokers Reform Act, on May 21, 2009. The 
bill was substantially similar to the reforms passed by the 
House in the 110th Congress as H.R. 5611, after having been 
considered previously by the Subcommittee in a markup.
    H.R. 2554 was referred to the Committee and passed the 
House by voice vote on March 3, 2010.

                 UNITED STATES COVERED BOND ACT OF 2010

                              (H.R. 5823)


Summary

    H.R. 5823, the United States Covered Bond Act of 2010, 
would establish a regulatory framework for a covered bond 
market in the United States by providing rule-writing authority 
and direction to the covered bond regulator to determine the 
eligible participants, appropriate assets for inclusion in 
covered pools, and a resolution mechanism in the event of a 
default of the covered bond or resolution of an issuer.

Legislative History

    On December 15, 2009, with the assistance of the 
Subcommittee, the Committee held a hearing entitled, ``Covered 
Bonds: Prospects for a U.S. Market Going Forward.'' The hearing 
explored the potential role that covered bonds could play in 
U.S. markets and whether covered bonds could serve as an 
alternative to mortgage securitization.
    On July 22, 2010, Capital Markets Subcommittee Ranking 
Member Scott Garrett, along with Financial Services Ranking 
Member Spencer Bachus and Capital Markets Subcommittee Chairman 
Kanjorski, introduced a revised version of the United States 
Covered Bond Act of 2010 as H.R. 5823.
    With assistance from the Subcommittee, the Committee 
considered and ordered H.R. 5823 reported by a voice vote on 
July 28, 2010.

                   SUBCOMMITTEE OVERSIGHT ACTIVITIES


      GOVERNMENT SPONSORED ENTERPRISES AND HOUSING FINANCE REFORM

    During the 111th Congress, the Subcommittee on Capital 
Markets, Insurance, and Government Sponsored Enterprises 
examined the status of the housing government-sponsored 
enterprises (GSEs) and began discussions about how to 
restructure the U.S. housing finance system. Together, the 
Capital Markets Subcommittee and the Committee held a series of 
seven hearings to examine the future of the housing finance 
system and to conduct oversight of the housing GSEs and their 
regulator. At these hearings, the Subcommittee received 
testimony from representatives of the Administration, academic 
institutions, think tanks, trade associations, consumer groups, 
housing advocates and industry participants.
    On June 3, 2009, the Subcommittee held a hearing entitled 
``The Present Condition and Future Status of Fannie Mae and 
Freddie Mac.'' This first congressional hearing on the GSEs in 
the 111th Congress reviewed a report of the Federal Housing 
Finance Agency (FHFA) about the finances, operations and 
mission-related activities of Fannie Mae, Freddie Mac and the 
Federal Home Loan Banks. The proceedings also reviewed ideas 
for reforming the U.S. housing finance system.
    Witnesses from the FHFA at the hearing included The 
Honorable James B. Lockhart III, Director, FHFA; accompanied by 
Edward J. DeMarco, Chief Operating Officer and Senior Deputy 
Director for Housing Mission and Goals, and Christopher 
Dickerson, Deputy Director for Enterprise Regulation. 
Additional witnesses included Bruce A. Morrison, Chairman of 
Morrison Public Affairs Group; Susan M. Wachter, the Richard B. 
Worley Professor of Financial Management at The Wharton School 
of University of Pennsylvania; Frances Martinez Myers, Senior 
Vice President of Fox & Roach/Trident and representing the 
National Association of Realtors; Lawrence J. White, the Arthur 
E. Imperatore Professor of Economics of the Leonard N. Stern 
School of Business at New York University; Michael D. Berman, 
CMB, Vice Chairman of the Mortgage Bankers Association; and Joe 
Robson of Robson Companies and Chairman of the Board of the 
National Association of Home Builders.
    On May 26, 2010, the Subcommittee held a second hearing 
entitled ``FHFA Oversight: Current State of the Housing 
Government Sponsored Enterprises.'' At this hearing, FHFA 
Acting Director Edward J. DeMarco testified about:
           the performance of the housing GSEs in 
        carrying out their respective missions;
           the importance of the regulated entities in 
        the current economic environment;
           the overall operational and financial 
        status, including capital positions, of the regulated 
        entities; and
           the material deficiencies in the conduct of 
        the operations of the regulated entities.
The hearing also reviewed FHFA's plans for the Home Valuation 
Code of Conduct, a legal agreement to strengthen the integrity 
of the appraisal process entered into in March 2008 between the 
New York State Attorney General Andrew Cuomo, Fannie Mae and 
Freddie Mac, in consultation with the FHFA.
    On July 29, 2010, the Subcommittee held a third hearing 
entitled ``Future of Housing Finance: The Role of Private 
Mortgage Insurance.'' The hearing examined the structure, 
regulation, obligations and performance of mortgage insurers. 
The Subcommittee also reviewed the mortgage insurance 
industry's experiences during the recent financial crisis and 
explored the need to alter the laws currently governing the 
industry, as part of the larger effort to reform the U.S. 
housing finance system.
    Witnesses at this hearing included Patrick Sinks, President 
and Chief Operating Officer of Mortgage Guaranty Insurance 
Corporation on behalf of the Mortgage Insurance Companies of 
America; Marti Rodamaker, President of First Citizens National 
Bank of Iowa on behalf of the Independent Community Bankers 
Association; Janneke Ratcliffe, Associate Director of the 
University of North Carolina Center for Community Capital and 
Senior Fellow, Center for American Progress; Anthony B. 
Sanders, Distinguished Professor of Finance of George Mason 
University and Senior Scholar of the Mercatus Center at George 
Mason University; John Taylor, President and CEO of the 
National Community Reinvestment Coalition; and Deborah 
Goldberg, Hurricane Relief Program Director, National Fair 
Housing Alliance.
    On September 15, 2010, the Subcommittee held a fourth 
hearing entitled ``The Future of Housing Finance Reform: A 
Progress Update on the GSEs.'' The hearing focused on the 
progress that Fannie Mae and Freddie Mac had made since their 
placement into conservatorship, including examining the 
strategies that the two GSEs and the FHFA had employed to limit 
taxpayer capital infusions into Fannie Mae and Freddie Mac by 
the U.S. Department of the Treasury. The hearing also explored 
whether to modify the strategies or devise others. Witnesses 
included The Honorable Michael S. Barr, Assistant Secretary for 
Financial Institutions, U.S. Department of the Treasury, and 
Edward J. DeMarco, Acting Director, Federal Housing Finance 
Agency.
    In addition to these four hearings, the Subcommittee 
provided input to and support for each of the following 
Committee hearings on the future of housing finance:
           ``Housing Finance--What Should the New 
        System Be Able to Do?: Part I--Government and 
        Stakeholder Perspectives'' on March 23, 2010;
           ``Housing Finance--What Should the New 
        System Be Able to Do?: Part II--Government and 
        Stakeholder Perspectives'' on April 14, 2010; and
           ``The Future of Housing Finance--A Review of 
        Proposals To Address Market Structure and Transition'' 
        on September 29, 2010.
    On August 13, 2010, Subcommittee Chairman Kanjorski, 
Representative Brad Miller and Representative Jackie Speier 
also sent a letter to President Obama stating that the FHFA 
must vigorously pursue all available legal claims for losses 
sustained from the conservatorship of Fannie Mae and Freddie 
Mac. The letter stressed that it is critically important to 
protect taxpayers and to let the American people know that the 
Federal government is acting on their behalf.
    Finally, throughout the 111th Congress, Subcommittee 
Chairman Kanjorski and the staff of the Capital Markets 
Subcommittee reviewed reports and met regularly with interested 
parties to obtain information about the performance of the GSEs 
and to review proposals to alter the U.S. housing finance 
system.

       CAPITAL MARKETS REGULATORY REFORM AND INVESTOR PROTECTION

    On October 6, 2009, Capital Markets Subcommittee Chairman 
Kanjorski presided at a Committee hearing entitled ``Capital 
Markets Regulatory Reform: Strengthening Investor Protection, 
Enhancing Oversight of Private Pools of Capital, and Creating a 
National Insurance Office.'' Capital Markets Subcommittee staff 
worked closely with Committee staff to organize the hearing and 
to draft the legislative proposals considered at the hearing.
    The hearing's investor protection panel focused on the 
discussion draft of the Investor Protection Act, which 
Subcommittee Chairman Kanjorski prepared and later introduced 
as H.R. 3817. This legislation aimed to strengthen the powers 
of the U.S. Securities and Exchange Commission (SEC) and other 
securities regulators, close regulatory loopholes, better 
safeguard investors, hold wrongdoers accountable, and 
efficiently regulate the global capital markets.
    Among its many provisions, H.R. 3817 included a requirement 
that all securities professionals providing personalized 
investment advice have a fiduciary duty toward their customers. 
Through a harmonized standard, broker-dealers and investment 
advisers would have to put investors' interests first. The 
Investor Protection Act also significantly expanded the ability 
of the SEC to reward those whistleblowers whose tips lead to 
successful enforcement actions.
    As outlined below in the section about the SEC, the 
Subcommittee also examined proposals to reform the SEC's 
operations at an oversight hearing on July 14, 2009, and the 
implementation of the provisions contained in H.R. 4173, the 
Dodd-Frank Wall Street Reform and Consumer Protection Act of 
2010, including many of the requirements first proposed in H.R. 
3817 at an oversight hearing on July 20, 2010.

                               HEDGE FUNDS

    On May 7, 2009, the Capital Markets Subcommittee held a 
hearing entitled ``Perspectives on Hedge Fund Registration.'' 
The Subcommittee convened the hearing to consider ways to 
increase the transparency and improve the oversight of hedge 
funds, which had been largely unregulated prior to the start of 
the 111th Congress. Among other things, the hearing examined 
H.R. 711, the Hedge Fund Adviser Registration Act of 2009, 
legislation introduced by Representatives Michael E. Capuano 
and Michael N. Castle. The hearing also focused on the 
appropriate balance between providing regulation of the 
industry to protect investors without unduly inhibiting the 
benefits hedge funds provide investors and the market more 
broadly.
    Witnesses at the Subcommittee hearing included Todd Groome, 
Chairman of the Alternative Investment Management Association; 
The Honorable Richard H. Baker, President of Managed Funds 
Association; James S. Chanos, Chairman of the Coalition of 
Private Investment Companies; Orice Williams, Director of 
Financial Markets and Community Investment Team, Government 
Accountability Office; and Britt Harris, Chief Investment 
Officer of the Teacher Retirement System of Texas.
    On October 6, 2009, the Committee held a three-panel 
legislative hearing entitled ``Capital Markets Regulatory 
Reform: Strengthening Investor Protection, Enhancing Oversight 
of Private Pools of Capital, and Creating a National Insurance 
Office.'' The Subcommittee worked closely with the Committee to 
organize this hearing, and Subcommittee Chairman Kanjorski 
presided for much of the hearing. The hearing's second panel 
addressed the reforms found in a discussion draft of H.R. 3818, 
the Private Fund Investment Advisers Registration Act of 2009, 
introduced by Subcommittee Chairman Kanjorski. The Committee 
marked up H.R. 3818 on October 27, 2009, and the House then 
passed H.R. 3818 as part of H.R. 4173 in December 2009. As 
enacted into law in July 2010, the Dodd-Frank Act contains many 
of the provisions initially found in H.R. 3818.
    Finally, on January 15, 2010, Chairman Frank and 
Subcommittee Chairman Kanjorski requested a GAO study on the 
use of leverage by the portfolio companies of private equity 
funds. The study will focus on the performance of these highly 
leveraged companies and their ability to weather a financial 
crisis vis-a-vis comparable public companies.

                         CREDIT RATING AGENCIES

    On May 19, 2009, the Capital Markets Subcommittee convened 
a hearing entitled ``Approaches to Improving Credit Rating 
Agency Regulation.'' At the hearing, the Subcommittee examined 
credit rating agency regulation and proposals to make credit 
rating agencies more accountable. Witnesses included Robert 
Auwaerter, Principal and Head of the Fixed Income Group of 
Vanguard; Robert Dobilas, President and CEO of Realpoint LLC; 
Eugene Volokh, Gary T. Schwartz Professor of Law, UCLA School 
of Law; Stephen W. Joynt, President and CEO, Fitch, Inc.; Alex 
J. Pollock, Resident Fellow, American Enterprise Institute; and 
Gregory Smith, General Counsel, Colorado Public Employees' 
Retirement Association.
    On September 30, 2009, the Subcommittee held an additional 
hearing entitled ``Reforming Credit Rating Agencies.'' The 
hearing focused on a discussion draft of legislation to enhance 
the oversight, accountability and transparency of credit rating 
agencies released on September 25, 2009, by Subcommittee 
Chairman Kanjorski.
    Witnesses at this hearing included Daniel M. Gallagher, Co-
Acting Director of the Division of Trading and Markets, U.S. 
Securities and Exchange Commission; Raymond McDaniel, Chairman 
and CEO, Moody's Corporation; Deven Sharma, President, Standard 
& Poor's; Stephen W. Joynt, President and Chief Operating 
Officer, Fitch Inc.; Robert Dobilas, President and CEO, 
RealPoint LLC; James H. Gellert, President and CEO, Rapid 
Ratings International Inc.; and Kurt Schacht, Managing 
Director, CFA Institute Centre for Financial Market Integrity.
    Among other things, the Kanjorski discussion draft of the 
Accountability and Transparency in Rating Agencies Act, later 
introduced as H.R. 3890:
           required new disclosures by Nationally 
        Recognized Statistical Rating Organization (NRSRO) of 
        revenues;
           added a duty to supervise NRSRO employees 
        and gave the SEC the authority to sanction supervisors 
        for failing to do so;
           mitigated the conflicts arising from the 
        issuer-pay model;
           enhanced NRSRO accountability through 
        liability reform;
           required each NRSRO to have a board with at 
        least two independent directors, and provided 
        requirements for compensation, term and duties; and
           added a one-year ban on the activities of 
        issuers who hire former NRSRO employees.
    On October 27, 2009, the Committee held a markup of 
Subcommittee Chairman Kanjorski's discussion draft. The 
Committee amended and favorably reported the bill. 
Subsequently, the Committee incorporated H.R. 3890 into H.R. 
4173, which passed the House on December 11, 2009. Subtitle C 
of Title IX of the Dodd-Frank Act included many of the rating 
agency reform provisions first considered by the Subcommittee 
at its hearings on credit rating agencies.

                      INSURANCE REGULATORY REFORM

    While the States have long functioned as the primary 
regulators of the insurance marketplace, during the 111th 
Congress the Capital Markets Subcommittee continued to examine 
both Federal and State efforts to modernize and improve 
insurance regulation.
    On May 14, 2009, the Capital Markets Subcommittee convened 
a hearing entitled ``How Should the Federal Government Oversee 
Insurance?'' The hearing focused on insurance regulatory 
reform, particularly in light of the larger regulatory reform 
questions raised and the interventions and reforms undertaken 
as a result of the financial crisis. Witnesses at this hearing 
included Baird Webel, Specialist in Financial Economics, 
Congressional Research Service; Patricia Guinn, Managing 
Director of Global Risk and Financial Services Business, Towers 
Perrin; J. Robert Hunter, Director of Insurance, Consumer 
Federation of America; Martin F. Grace, James S. Kemper 
Professor, Department of Risk Management and Insurance, Georgia 
State University; and Scott Harrington, Alan B. Miller 
Professor, Wharton School of Business, University of 
Pennsylvania.
    On June 16, 2009, the Subcommittee subsequently held a 
hearing entitled ``Systemic Risk and Insurance.'' The hearing 
explored how insurance would fit into a restructuring of the 
financial services regulatory system, including an examination 
of the complexities of insurance firms and insurance holding 
companies. The hearing also reviewed particular types of 
insurance products to determine whether they pose a risk to the 
insurance or financial services system and are of national 
significance.
    Participants in the hearing included The Honorable Peter 
Skinner, Member, European Parliament; The Honorable Michael T. 
McRaith, Director, Illinois Department of Insurance, on behalf 
of the National Association of Insurance Commissioners; Teresa 
Bryce, President, Radian Guaranty Inc., on behalf of the 
Mortgage Insurance Companies of America; Sean McCarthy, Chief 
Operating Officer, Financial Security Assurance, Inc.; Kenneth 
F. Spence, Executive Vice President and General Counsel, 
Travelers; Franklin Nutter, President, Reinsurance Association 
of America; Patrick S. Baird, CEO of Aegon USA, LLC, on behalf 
of the American Council of Life Insurers; and John T. Hill, 
President and Chief Operating Officer, Magna Carta Companies, 
on behalf of the National Association of Mutual Insurance 
Companies.
    On March 18, 2010, the Subcommittee met at a hearing 
entitled ``Insurance Holding Company Supervision.'' The hearing 
focused on:
           the existing authorities of State and 
        Federal regulators with regard to insurers and 
        affiliated companies under the same holding company;
           the supervision and the coordination among 
        State and Federal regulators of these financial 
        entities; and
           how insurance holding company regulation 
        differs from bank and thrift holding company 
        regulation.
    Witnesses included Jon Greenlee, Associate Director, 
Division of Banking Supervision and Regulation, Federal Reserve 
Board of Governors; Grovetta N. Gardineer, Managing Director 
for Corporate and International Activities, Office of Thrift 
Supervision; Sean Dilweg, Commissioner of Insurance for the 
State of Wisconsin; and Ann Frohman, Director of Nebraska's 
Department of Insurance.

                     PERSPECTIVES ON SYSTEMIC RISK

    On March 5, 2009, the Capital Markets Subcommittee held a 
hearing entitled ``Perspectives on Systemic Risk.'' The hearing 
explored systemic risk issues related to the capital markets, 
including hedge funds, derivatives and credit default swaps. At 
this hearing, the Subcommittee continued discussions earlier 
about how to reform financial services regulation to mitigate 
systemic risk. Witnesses at the hearing included Orice 
Williams, Director of Financial Markets and Community 
Investment, Government Accountability Office; The Honorable 
Richard H. Baker, President and CEO of the Managed Funds 
Association; The Honorable Steve Bartlett, President and CEO of 
the Financial Services Roundtable; Therese Vaughan, CEO of the 
National Association of Insurance Commissioners; Robert A. 
DiMuccio, President and CEO of Amica Mutual Group; and Timothy 
Ryan, Jr., President and CEO of the Securities Industry and 
Financial Markets Association.

                          CORPORATE GOVERNANCE

    On March 11, 2010, the Capital Markets Subcommittee held a 
hearing entitled ``Corporate Governance after Citizens 
United.'' The hearing came in response to the U.S. Supreme 
Court's 5-4 decision in Citizens United v. Federal Election 
Commission, where the Court found that for-profit and non-
profit corporations can spend unlimited amounts of money from 
their general treasury funds to influence federal elections. 
The Subcommittee considered potential legislative responses 
aimed at limiting the impact of the decision, some by 
empowering shareholders through corporate governance reforms 
and by increasing disclosure requirements for public companies. 
The hearing also reviewed H.R. 4790, the Shareholder Protection 
Act. Introduced by Representative Michael E. Capuano, this bill 
sought to make corporate political expenditures more 
transparent and to give shareholders more say in how those 
dollars are spent.
    Witnesses at the hearing included John C. Coffee, Jr., 
Adolf A. Berle Professor of Law, Columbia Law School; Karl J. 
Sandstrom, Of Counsel, Perkins Coie; Ann Yerger, Executive 
Director, Council of Institutional Investors; J.W. Verret, 
Assistant Professor of Law, George Mason University School of 
Law; Nell Minow, Editor and Co-Founder of The Corporate 
Library; Michael Klausner, Nancy and Charles Munger Professor 
of Business and Professor of Law, Stanford Law School; and Jan 
Baran, Partner at Wiley Rein LLP.
    On April 21, 2010, the Capital Markets Subcommittee held an 
additional hearing entitled ``Corporate Governance and 
Shareholder Empowerment.'' At the hearing, the Subcommittee 
focused on corporate governance reform legislation aimed at 
modifying the board election process, separating the functions 
of CEO and chairman within a public company, establishing risk-
management committees, and enhancing voting transparency. The 
hearing considered three specific bills: H.R. 2861, the 
Shareholder Empowerment Act of 2009; H.R. 3272, the Corporate 
Governance Reform Act of 2009; and H.R. 3351, the Proxy Voting 
Transparency Act of 2009. Several corporate governance reforms 
from these bills, including the provision on proxy access, were 
later included in Title IX of H.R. 4173, the Dodd-Frank Wall 
Street Reform and Consumer Protection Act, which became law on 
July 21, 2010.
    Witnesses at the hearing included The Honorable Steven D. 
Irwin, Commissioner, Pennsylvania Securities Commission; 
Gregory W. Smith, Chief Operating Officer and General Counsel, 
Colorado Public Employees' Retirement Association; Thomas F. 
Brier, Deputy Chief Investment Officer and Director of 
Corporate Governance, Pennsylvania State Employees' Retirement 
System; Alexander M. Cutler, Chairman and CEO of Eaton 
Corporation; Brandon J. Rees, Deputy Director, Office of 
Investment, AFL-CIO; Robert E. Smith, Vice President of, Deputy 
General Counsel to, and Assistant Secretary of NiSource, on 
behalf of the Society of Corporate Secretaries and Governance 
Professionals; and James Allen, Head of Capital Markets Policy, 
CFA Institute.

                              DERIVATIVES

    In response to a request by Capital Markets Subcommittee 
Chairman Kanjorski and Financial Services Ranking Member 
Spencer Bachus, the GAO completed in early 2009 a study to 
review the regulatory oversight of and recent initiatives to 
address the systemic risk of credit default swaps. GAO 
delivered its findings on these matters as testimony at the 
March 5, 2009, Subcommittee hearing entitled ``Perspectives on 
Systemic Risk,'' which is discussed above.
    On June 9, 2009, the Subcommittee also held a hearing 
entitled ``The Effective Regulation of the Over-the-Counter 
Derivatives Markets.'' The hearing focused on ways to 
strengthen the regulation of the over-the-counter (OTC) 
derivatives market to mitigate systemic risk. Specific issues 
addressed during the hearing included whether clearing should 
be mandatory for all OTC derivatives contracts and how 
transparency in the OTC derivatives market could be increased.
    Witnesses on the first panel of the hearing included Donald 
Fewer, CEO, Standard Credit Group; Robert Pickel, CEO, 
International Swaps and Derivatives Association, Inc; Timothy 
J. Murphy, Foreign Currency Risk Manager, 3M; Don Thompson, 
Managing Director and Associate General Counsel, JPMorgan Chase 
& Co.; Christopher Ferreri, Managing Director, ICAP; and 
Christian A. Johnson, Professor at University of Utah School of 
Law. Participants on the second panel included Thomas Callahan, 
CEO, NYSE Liffe; Terrence A. Duffy, Executive Chairman, CME 
Group Inc; Christopher Edmonds, CEO, International Derivatives 
Clearing Group, LLC; Jeffrey Sprecher, CEO, 
IntercontinentalExchange, Inc.; and Larry E. Thompson, Managing 
Director and General Counsel, Depository Trust and Clearing 
Corporation.
    In connection with the June 2009 Subcommittee hearing and 
subsequent Committee hearings on the subject of derivatives 
regulation, staff of the full Committee and the Subcommittee 
regularly attended meetings and briefings with regulators, 
market participants and consumer advocates to gather background 
information and receive a variety of proposals and 
recommendations on regulatory approaches to supervising the 
derivatives markets. The findings from these meetings, 
briefings and aforementioned hearings also helped to inform the 
content of Title VII of the Dodd-Frank Act.
    Finally, on April 29, 2010, the Capital Markets 
Subcommittee convened a hearing entitled ``Credit Default Swaps 
on Government Debt: Potential Implications of the Greek Debt 
Crisis.'' The hearing came in response to reports that 
speculation by Wall Street banks in the credit default swap 
market might have adversely affected the price of debt for the 
Greek government. Witnesses at the hearing included Robert 
Pickel, Executive Vice Chairman, International Swaps and 
Derivatives Association, Inc.; Robert Johnson, Director of 
Global Finance, Roosevelt Institute; Darrell Duffie, Professor 
of Finance, Graduate School of Business, Stanford University; 
Anthony B. Sanders, Distinguished Professor of Real Estate 
Finance, George Mason University; and Joseph R. Mason, 
Louisiana Bankers Association Endowed Professor of Banking, 
Louisiana State University. Additionally, Subcommittee staff 
participated in meetings with representatives of the Delegation 
of the European Union to the United States and other interested 
parties before and after the hearing to evaluate the issue.

                   SECURITIES AND EXCHANGE COMMISSION

    The Subcommittee conducted oversight of and advanced 
changes to the structure of the SEC in several ways during the 
111th Congress. For example, on June 9, 2009, Capital Markets 
Subcommittee Chairman Paul E. Kanjorski wrote to SEC Chairman 
Mary L. Schapiro to discern what initiatives the agency planned 
to take to improve investor protection and restore confidence 
in the financial markets, as well as to identify needed 
legislative changes to the laws governing the U.S. capital 
markets.
    Subsequently, the Subcommittee held a hearing entitled 
``SEC Oversight: Current State and Agenda'' on July 14, 2009, 
to explore these initiatives and to examine the operations and 
organizational structure of the SEC, with particular emphasis 
on its supervisory and inspection functions. The hearing also 
helped to inform legislative proposals, many of which were 
ultimately incorporated into Title IX of the Dodd-Frank Act as 
signed into law. SEC Chairman Schapiro testified as the sole 
witness at the hearing.
    The Subcommittee held a second SEC oversight hearing on 
July 20, 2010. At the hearing entitled ``Oversight of the U.S. 
Securities and Exchange Commission: Evaluating Present Reforms 
and Future Challenges,'' SEC Chairman Schapiro briefed the 
Subcommittee on reforms implemented since her appointment in 
January 2009. She also explained how the SEC planned to 
implement the requirements of the Dodd-Frank Act.

                            MARKET STRUCTURE

    The Capital Markets Subcommittee examined developments in 
the structure of the equity and options markets during the 
111th Congress. In particular, the Subcommittee exercised its 
oversight responsibilities in response to the ``flash crash'' 
of May 6, 2010, during which the stock market indices 
experienced an extreme drop in value only to recover within a 
matter of minutes.
    On May 6, Subcommittee Chairman Kanjorski wrote to SEC 
Chairman Schapiro expressing concern about the market events of 
that day and seeking the SEC's views and plan of action related 
to those events. At a hearing entitled ``The Stock Market 
Plunge: What Happened and What Is Next?'' on May 11, 2010, the 
Subcommittee then received testimony from SEC Chairman Schapiro 
and CFTC Chairman Gary Gensler. Other participants at the 
hearing included Lawrence Leibowitz, Chief Operating Officer, 
NYSE Euronext; Eric Noll, Executive Vice President, NASDAQ 
Transaction Services; and Terrence A. Duffy, Executive 
Chairman, CME Group Inc.
    In the months following the hearing, Subcommittee staff met 
with and received briefings from the SEC and the CFTC about the 
causes of the market volatility and the structural reforms 
implemented as a result of the events of May 6, including the 
implementation of circuit-breakers for individual stocks.
    On September 30, 2010, Chairman Frank and Subcommittee 
Chairman Kanjorski wrote to SEC Chairman Schapiro and CFTC 
Chairman Gensler requesting that the agencies release their 
joint report, also dated September 30, 2010, entitled 
``Findings Regarding the Market Events of May 6, 2010: Report 
of the Staffs of the CFTC and SEC to the Joint Advisory 
Committee on Emerging Regulatory Issues.'' Subcommittee staff 
not only reviewed the findings of that report and participated 
in regular meetings with parties affected by or interested in 
the events of May 6, but also explored related market structure 
issues like high-frequency trading, market data fees, the SEC's 
modified uptick rule, and short sale restrictions during the 
111th Congress.

                            SECURITIES FRAUD

    The Capital Markets Subcommittee responded to the SEC's 
failure to detect the $65 billion Ponzi scheme orchestrated by 
Mr. Bernard L. Madoff, as well as other sizable securities 
frauds in the wake of the financial crisis of 2008 and 2009, by 
holding hearings and conducting oversight.
    Subcommittee staff worked to organize the first meeting of 
the Committee in 2009. Entitled ``Assessing the Madoff Ponzi 
Scheme and the Need for Regulatory Reform,'' the Committee's 
proceedings took place on January 5, 2009. Witnesses at the 
hearing included H. David Kotz, Inspector General, U.S. 
Securities and Exchange Commission; Stephen P. Harbeck, 
President, Securities Investor Protection Corporation; Allan 
Goldstein, a retiree and investor with Bernard L. Madoff 
Investment Securities; Tamar Frankel, Professor of Law and 
Michaels Faculty Research Scholar, Boston University School of 
Law; and Leon Metzger, adjunct faculty member at Columbia 
University, Cornell University, New York University, and Yale 
University.
    Insights gleaned from this Committee meeting resulted in a 
subsequent hearing of the Capital Markets Subcommittee on 
February 4, 2009, entitled ``Assessing the Madoff Ponzi Scheme 
and Regulatory Failures.'' Witnesses at this hearing included 
Harry Markopolos, an independent financial fraud investigator 
for institutional investors and others seeking forensic 
accounting expertise, as well as a Chartered Financial Analyst 
and Certified Fraud Examiner; Linda Thomsen, Director, Division 
of Enforcement, U.S. Securities and Exchange Commission; Andrew 
J. Donohue, Director, Division of Investor Management, U.S. 
Securities and Exchange Commission; Erik Sirri, Director, 
Division of Trading and Markets, U.S. Securities and Exchange 
Commission; Andy Vollmer, Acting General Counsel, U.S. 
Securities and Exchange Commission; Lori A. Richards, Director, 
Office of Compliance Inspections and Examinations, U.S. 
Securities and Exchange Commission; and Stephen Luparello, 
Interim CEO, Financial Industry Regulatory Authority.
    In combination, these proceedings of the Committee and the 
Subcommittee also informed the work of the Subcommittee in 
undertaking the most substantial rewrite of the laws governing 
the U.S. securities markets since the Great Depression.
    To ensure that the Subcommittee received a fulsome and 
timely explanation as to why the SEC failed to detect the 
Madoff fraud, Capital Markets Subcommittee Chairman Kanjorski 
also wrote a number of letters and met with key officials at 
the SEC. In January 2009, for instance, he wrote to outgoing 
SEC Chairman Christopher Cox to ask why the SEC missed several 
red flags that could have helped to identify the Madoff fraud 
at an earlier point in time. Chairman Kanjorski additionally 
met in February 2009 with SEC Chairman Schapiro shortly after 
she took over the agency, and they publicly agreed to maintain 
an open, cooperative dialogue regarding the Committee's 
examination of the Madoff Ponzi scheme and the SEC's actions 
regarding the matter.
    Chairman Kanjorski also continued to press for answers into 
the SEC's failures related to the Madoff fraud by writing two 
letters to the Inspector General of the SEC in June 2009. Both 
letters urged the timely completion of the Inspector General's 
report on his investigation into the Madoff matter and the 
SEC's failure to identify it.
    Finally, Chairman Kanjorski monitored the administration of 
claims for losses by Madoff victims by writing to the 
Securities Investor Protection Corporation (SIPC) in August 
2010. In the letter, Chairman Kanjorski requested data on the 
status of claims filed by victims of the Madoff fraud. As 
outlined in the next section, the Capital Markets Subcommittee 
additionally convened two hearings to examine SIPC's 
operations.

                   SECURITIES INVESTOR PROTECTION ACT

    In response to complaints raised by investors affected by 
the Madoff Ponzi scheme and the Stanford Financial fraud, the 
Capital Markets Subcommittee held two hearings on December 9, 
2009, and September 23, 2010, to examine the operations, 
initiatives and activities of SIPC. The hearings also explored 
proposals to better protect investors in today's volatile 
markets by reforming certain aspects of the Securities Investor 
Protection Act (SIPA).
    The December 2009 hearing entitled ``Additional Reforms to 
the Securities Investor Protection Act'' considered reforms in 
addition to those included in the House-passed H.R. 4173, the 
Wall Street Reform and Consumer Protection Act. Witnesses 
included Jeannene Langford, an investor in Mot Family 
Investors; Joel Green, General Counsel, Upsher-Smith 
Laboratories, Inc.; Helen Chaitman, Madoff investor and legal 
advisor to the Madoff Coalition for Investor Protection; Pete 
Leveton, Co-Chairman, Agile Funds Investor Committee; Gregory 
Lancette, Business Manager, Plumbers and Steamfitters Local 267 
of Syracuse, New York; John C. Coffee, Adolf A. Berle Professor 
of Law, Columbia Law School; Michael Conley, Deputy Solicitor, 
U.S. Securities and Exchange Commission; and Steve Harbeck, 
President, Securities Investor Protection Corporation.
    As a result of the hearing, SIPC formed a Task Force to 
review SIPA and to make recommendations for change. On March 3, 
2010, Chairman Kanjorski wrote a letter to request that SIPC's 
Task Force be comprised of a diverse group of representatives 
and that the Task Force broaden its focus to consider, among 
other things, how SIPC operates. Participants from this Task 
Force testified at the Subcommittee hearing entitled 
``Assessing the Limitations of the Securities Investor 
Protection Act'' in September 2010. The witnesses included 
Joseph Borg, Director, Alabama Securities Commission; The 
Honorable Orlan Johnson, Chairman of the Board, Securities 
Investor Protection Corporation; John C. Coffee, Adolf A. Berle 
Professor of Law, Columbia Law School; Ira Hammerman, Senior 
Managing Director and General Counsel, Securities Industry and 
Financial Markets Association; and Steven Caruso, Partner at 
Maddox, Hargett, & Caruso.

                        ACCOUNTING AND AUDITING

    The Capital Markets Subcommittee held a hearing on March 
12, 2009, entitled ``Mark-to-Market Accounting: Practices and 
Implications'' to examine the mark-to-market accounting rules 
that many contend exacerbated the trouble in the financial 
industry and in the broader economy. Witnesses included James 
Kroeker, Acting Chief Accountant, U.S. Securities and Exchange 
Commission; Robert Herz, Chairman, Financial Accounting 
Standards Board; Kevin Bailey, Deputy Comptroller for 
Regulatory Policy, Office of the Comptroller of the Currency; 
Jeff Mahoney, General Counsel, Council of Institutional 
Investors; Cindy Fornelli, Executive Director, Center for Audit 
Quality; Thomas Bailey, Chairman, Pennsylvania Association of 
Community Bankers, and President and CEO of Brentwood Bank; Lee 
Cotton, Past President, Commercial Mortgage Securities 
Association; Tanya Beder, Chairman, SBCC Group; Robert D. 
McTeer, Distinguished Fellow, National Center for Policy 
Analysis; and The Honorable William Isaac, Chairman, Secura 
Group of LECG.
    Additionally, Chairman Frank, Ranking Member Bachus, 
Capital Markets Subcommittee Chairman Kanjorski, and Capital 
Markets Ranking Member Garrett sent a letter on April 2, 2009, 
to SEC Chairman Schapiro to emphasize the importance of an 
independent accounting standard setter and to urge the SEC to 
provide leadership in the implementation and application of 
accounting standards.
    On May 21, 2010, the Subcommittee held an additional 
hearing entitled ``Accounting and Auditing Standards: Pending 
Proposals and Emerging Issues.'' Witnesses included James 
Kroeker, Chief Accountant, U.S. Securities and Exchange 
Commission; Robert Herz, Chairman, Financial Accounting 
Standards Board; Daniel L. Goelzer, Acting Chairman, U.S. 
Public Company Accounting Oversight Board (PCAOB). During the 
hearing, witnesses provided an overview of their current and 
anticipated rulemaking and standard-setting activities.
    Subcommittee staff also explored and worked to incorporate 
into the Dodd-Frank Act several reforms related to the PCAOB. 
For example, Section 982 of the law expanded the oversight 
responsibilities of the PCAOB by requiring auditors of brokers-
dealers, as defined in the Securities Exchange Act, to register 
with the PCAOB. This section also authorizes the PCAOB to 
develop an inspection program for the auditors of broker-
dealers. Section 981 of the Dodd-Frank Act additionally allows 
the PCAOB to share information with foreign auditing 
regulators. These reforms were informed, in part, by public 
proceedings and hearings held by the Committee and the 
Subcommittee in early 2009 after the revelation of the Madoff 
Ponzi scheme.

                       NATURAL DISASTER INSURANCE

    On March 10, 2010, the Capital Markets Subcommittee 
convened a joint hearing with the Subcommittee on Housing and 
Community Opportunity to examine issues related to natural 
disaster insurance. Witnesses at the hearing entitled 
``Approaches to Mitigating and Managing Natural Catastrophe 
Risk: H.R. 2555, The Homeowners' Defense Act'' included James 
Lee Witt, former Director of the Federal Emergency Management 
Agency, on behalf of ProtectingAmerica.org; Glenn Pomeroy, CEO, 
California Earthquake Authority; Steve Ellis, Vice President, 
Taxpayers for Common Sense; and Charles McMillan of Coldwell 
Banker Residential Brokerage, Dallas-Fort Worth, and Immediate 
Past President of the National Association of Realtors.

                   AMERICAN INTERNATIONAL GROUP (AIG)

    On March 18, 2009, the Capital Markets Subcommittee held a 
hearing entitled ``American International Group's Impact on the 
Global Economy: Before, During, and After Federal 
Intervention.'' Witnesses included Scott Polakoff, Acting 
Director, Office of Thrift Supervision; The Honorable Joel 
Ario, Insurance Commissioner, the Pennsylvania Insurance 
Department, on behalf of the National Association of Insurance 
Commissioners; Orice M. Williams, Director of Financial Markets 
and Community Investment, Government Accountability Office; 
Rodney Clark, Managing Director of Insurance Ratings, Standard 
& Poor's; and Edward M. Liddy, Chairman and CEO of AIG. The 
hearing focused broadly on the lead up to and need for Federal 
intervention at AIG, but centered substantially on compensation 
paid to employees at AIG's failing Financial Products division.
    As follow-up to this hearing, the Subcommittee provided 
input and leadership to the March 24, 2009, full Committee 
hearing entitled ``Oversight of the Federal Government's 
Intervention at American International Group.'' This second 
hearing, chaired predominantly by Subcommittee Chairman 
Kanjorski, consisted of one panel of witnesses featuring 
Treasury Secretary Timothy F. Geithner, Federal Reserve 
Chairman Ben S. Bernanke, and Federal Reserve Bank of New York 
President William Dudley.
    These hearings together formed only a small part of an 
extensive series of related correspondence and ongoing AIG 
oversight undertaken by the Committee and Subcommittee staff 
throughout the 111th Congress.

                  SECURITIZATIONS OF LIFE SETTLEMENTS

    On September 24, 2009, the Capital Markets Subcommittee 
held a hearing entitled ``Recent Innovations in 
Securitization.'' The hearing focused on the life settlement 
industry and its connection to the securities markets. The 
hearing examined whether lessons learned from the problems in 
real estate securitization were being applied to the 
securitization of life settlements.
    Witnesses included Paula Dubberly, Associate Director, 
Division of Corporation Finance, U.S. Securities and Exchange 
Commission; The Honorable Susan E. Voss, Commissioner, the Iowa 
Department of Insurance, on behalf of the National Association 
of Insurance Commissioners; J. Russel Dorsett, Co-Managing 
Director, Veris Settlement Partners, on behalf of the Life 
Insurance Settlement Association; Brian Pardo, CEO, Life 
Partners Holdings, Inc.; Jack Kelly, Director of Government 
Relations, Institutional Life Markets Association; Kurt 
Gearhart, Global Head of Regulatory and Execution Risk, Life 
Finance Group, Credit Suisse; Steven H. Strongin, Managing 
Director and Head of Global Investment Research, Goldman, Sachs 
& Co.; and Daniel Curry, President, DBRS, Inc.
    After the hearing, Subcommittee and Committee staff 
reviewed the report on life settlements prepared by the SEC 
staff. Subcommittee and Committee staff also consulted with the 
SEC about legislative language to implement the SEC report's 
recommendations.

       FEDERAL HOME LOAN BANK COMMUNITY AND ECONOMIC DEVELOPMENT

    At the request of Capital Markets Subcommittee Chairman 
Kanjorski, GAO completed a study released on August 11, 2010, 
entitled ``Federal Housing Finance Agency: Oversight of the 
Federal Home Loan Banks' Agricultural and Small Business 
Collateral Policies Could Be Improved.'' The report found that 
the Federal Home Loan Bank System had fallen short in its 
efforts to prioritize economic development in communities 
throughout the country, as part of its mandate requires it to 
do. In response to the report, Chairman Kanjorski wrote to FHFA 
Acting Director DeMarco and each of the twelve Federal Home 
Loan Bank presidents to request that they outline the steps 
they intend to take to improve economic and community 
development activities. Subcommittee staff reviewed the 
responses.

                           ECONOMIC STABILITY

    In a letter on June 23, 2009, Capital Markets Subcommittee 
Chairman Kanjorski urged the Federal Deposit Insurance 
Corporation (FDIC) to encourage banks to expand access to 
credit, so that big and small businesses alike could weather 
the economic crisis, and so that businesses could create much 
needed jobs. FDIC Chairman Sheila Bair responded on July 7, 
2009, that the FDIC and other banking regulators were 
encouraging banks to continue making loans to creditworthy 
customers and working with borrowers having difficulty 
remaining current on their payments.
    On July 31, 2009, Chairman Kanjorski and other Members of 
the Financial Services Committee sought to further expand the 
availability of credit to businesses by sending a letter to the 
U.S. Department of Treasury Secretary and the Board of 
Governors of the Federal Reserve System to request the 
extension of the Term Asset-Backed Securities Loan Facility 
(TALF) through the end of 2010. The Federal Reserve later 
extended the TALF from December 31, 2009 to June 30, 2010 in 
order to help restart the commercial mortgage-backed securities 
market and to enhance liquidity in the commercial real estate 
sector.

            GLOBAL COMPETITIVENESS OF U.S. FINANCIAL MARKETS

    The Capital Markets Subcommittee worked to examine and 
maintain the competitiveness of the U.S. capital markets in a 
number of ways during the 111th Congress. For example, 
Subcommittee Chairman Kanjorski and staff regularly met with 
representatives from other nations and the European Parliament 
to ascertain developments related to foreign financial markets, 
laws and rules.
    Additionally, Subcommittee Chairman Kanjorski led a 
delegation of the Committee in meetings with European 
legislative, regulatory, and financial industry leaders in late 
August and early September 2009. The delegation also included 
Capital Markets Ranking Member Garrett, Financial Institutions 
Subcommittee Chairman Luis V. Gutierrez, and Committee staff. 
As part of its agenda, the delegation participated in a hearing 
of the European Parliament's Committee on Economic and Monetary 
Affairs in Brussels on September 2, 2009. The hearing examined 
developments related to financial services regulation across 
international borders.
    During the debates on the legislation that became the Dodd-
Frank Act, Subcommittee staff also regularly explored 
international competitiveness and coordination issues. For 
example, Chairman Kanjorski received a letter dated October 22, 
2009, from Charlie McGreevy, the then-European Commissioner for 
Internal Market and Services, related to H.R. 3817, the 
Investor Protection Act. In response to concerns raised in this 
letter, the Committee adjusted the bill's provisions related to 
international regulatory cooperation on auditing oversight and 
the extraterritorial jurisdiction of the antifraud provisions 
of Federal securities laws.

                     FINANCIAL GUARANTEE INSURANCE

    The financial guarantee insurance industry with products 
like municipal bond insurance, credit default swaps, and 
mortgage insurance played a central role in the credit and 
liquidity crisis of 2008 and 2009. Following on the Capital 
Markets Subcommittee's focus on the bond insurance segment of 
the financial guarantee insurance industry in the 110th 
Congress, during the 111th Congress the Subcommittee undertook 
closer oversight and review of the mortgage insurance segment 
of the financial guarantee business.
    On July 29, 2010, the Subcommittee held a hearing to 
examine the ``Future of Housing Finance Reform: The Role of 
Private Mortgage Insurance.'' The proceeding focused on the 
business model, structure, regulation, history and performance 
of the private mortgage insurance (PMI) industry. The hearing 
also reviewed the PMI industry's experiences during the recent 
financial crisis and explored the need to alter the laws 
currently governing the industry.
    Witnesses included Patrick Sinks, President and Chief 
Operating Officer, Mortgage Guaranty Insurance Corporation, on 
behalf of the Mortgage Insurance Companies of America; Marti 
Rodamaker, President, First Citizens National Bank of Iowa, on 
behalf of the Independent Community Bankers Association; 
Janneke Ratcliffe, Associate Director, Center for Community 
Capital, University of North Carolina, and Senior Fellow, 
Center for American Progress; Anthony B. Sanders, Distinguished 
Professor of Finance, George Mason University, and Senior 
Scholar for the Mercatus Center at George Mason University; 
John Taylor, President and CEO, National Community Reinvestment 
Coalition; and Deborah Goldberg, Hurricane Relief Program 
Director, National Fair Housing Alliance.
    The Subcommittee monitored the ongoing efforts of the 
financial guarantee industry to recapitalize itself, and 
Subcommittee staff regularly met with regulators, insurers and 
industry experts to examine these matters. On July 7, 2009, 
Subcommittee Chairman Kanjorski also sent a letter to the U.S. 
Department of the Treasury recommending that the Federal 
government help to recapitalize mortgage insurers by providing 
funding access to the Troubled Asset Relief Program. Chairman 
Kanjorski additionally recommended that the Treasury Department 
consider how the mortgage insurance industry could be directly 
regulated at the Federal level.
    On March 25, 2010, Chairman Kanjorski publicly commented 
that the ongoing troubles in the bond insurance industry 
demonstrated the need for better information at the Federal 
level about developments in the insurance industry. The 
Committee favorably reported out of the Committee H.R. 2609, 
legislation introduced by Chairman Kanjorski to create a 
Federal Insurance Office (FIO) within the Treasury Department. 
As enacted into law in Title V, Subtitle A of the Dodd-Frank 
Act, the FIO is authorized to gather information about the 
insurance industry and to monitor the insurance industry for 
systemic risk purposes, among other duties and 
responsibilities.

                       Subcommittee Hearings Held


------------------------------------------------------------------------
      Serial No.                   Title                   Date(s)
------------------------------------------------------------------------
1111-2................  Assessing the Madoff Ponzi  February 4, 2009
                         Scheme and Regulatory
                         Failures (Capital
                         Markets).
111-10................  Perspectives on Systemic    March 5, 2009
                         Risk (Capital Markets).
111-12................  Mark-to-Market Accounting:  March 12, 2009
                         Practices and
                         Implications (Capital
                         Markets).
111-15................  American International      March 18, 2009
                         Group's Impact on the
                         Global Economy: Before,
                         During, and After Federal
                         Intervention (Capital
                         Markets).
111-29................  Perspectives on Hedge Fund  May 7, 2009
                         Registration (Capital
                         Markets).
111-32................  How Should the Federal      May 14, 2009
                         Government Oversee
                         Insurance? (Capital
                         Markets).
111-33................  Approaches to Improving     May 19, 2009
                         Credit Rating Agency
                         Regulation (Capital
                         Markets).
111-38................  The Present Condition and   June 3, 2009
                         Future Status of Fannie
                         Mae and Freddie Mac
                         (Capital Markets).
111-41................  The Effective Regulation    June 9, 2009
                         of the Over-the-Counter
                         Derivatives Markets
                         (Capital Markets).
111-44................  Systemic Risk and           June 16, 2009
                         Insurance (Capital
                         Markets).
111-57................  SEC Oversight: Current      July 14, 2009
                         State and Agenda (Capital
                         Markets).
111-79................  Recent Innovations in       September 24, 2009
                         Securitization (Capital
                         Markets).
111-82................  Reforming Credit Rating     September 30, 2009
                         Agencies (Capital
                         Markets).
111-94................  Additional Reforms to the   December 9, 2009
                         Securities Investor
                         Protection Act (Capital
                         Markets).
111-108...............  Approaches to Mitigating    March 10, 2010
                         and Managing Natural
                         Catastrophe Risk: H.R.
                         2555, The Homeowners'
                         Defense Act (Capital
                         Markets and Housing).
111-109...............  Corporate Governance after  March 11, 2010
                         Citizens United (Capital
                         Markets).
111-114...............  Insurance Holding Company   March 18, 2010
                         Supervision (Capital
                         Markets).
111-125...............  Corporate Governance and    April 21, 2010
                         Shareholder Empowerment
                         (Capital Markets).
111-130...............  Credit Default Swaps on     April 29, 2010
                         Government Debt:
                         Potential Implications of
                         the Greek Debt Crisis
                         (Capital Markets).
111-133...............  The Stock Market Plunge:    May 11, 2010
                         What Happened and What Is
                         Next? (Capital Markets).
111-139...............  Accounting and Auditing     May 21, 2010
                         Standards: Pending
                         Proposals and Emerging
                         Issues (Capital Markets).
111-142...............  FHFA Oversight: Current     May 26, 2010
                         State of the Housing
                         Government Sponsored
                         Enterprises (Capital
                         Markets).
111-144...............  Oversight of the U.S.       July 20, 2010
                         Securities and Exchange
                         Commission: Evaluating
                         Present Reforms and
                         Future Challenges
                         (Capital Markets).
111-149...............  Future of Housing Finance:  July 29, 2010
                         The Role of Private
                         Mortgage Insurance
                         (Capital Markets).
111-153...............  The Future of Housing       September 15, 2010
                         Finance: A Progress
                         Update on the GSEs
                         (Capital Markets).
111-158...............  Assessing the Limitations   September 23, 2010
                         of the Securities
                         Investor Protection Act
                         (Capital Markets).
------------------------------------------------------------------------

        Subcommittee on Domestic Monetary Policy and Technology


           (Ratio: 10-7)

 MELVIN L. WATT, North Carolina, 
             Chairman

RON PAUL, Texas                      CAROLYN B. MALONEY, New York
MICHAEL N. CASTLE, Delaware          GREGORY W. MEEKS, New York
FRANK D. LUCAS, Oklahoma             WILLIAM LACY CLAY, Missouri
JIM GERLACH, Pennsylvania            BRAD SHERMAN, California
TOM PRICE, Georgia                   AL GREEN, Texas
BILL POSEY, Florida                  EMANUEL CLEAVER, Missouri
LEONARD LANCE, New Jersey            KEITH ELLISON, Minnesota
SPENCER BACHUS, Alabama, ex officio  JOHN ADLER, New Jersey
                                     SUZANNE KOSMAS, Florida
                                     BARNEY FRANK, Massachusetts, ex 
                                     officio

                  Subcommittee Legislative Activities


                     NEW MARKETS TAX CREDITS (NMTC)

    The Subcommittee on Domestic Monetary Policy and Technology 
held a hearing on June 18, 2009, entitled ``An Exploration of 
Barriers to Full Minority Participation in the New Markets Tax 
Credit Program'', receiving testimony from the U.S. Department 
of Treasury Community Development Financial Institutions (CDFI) 
Fund and the U.S. Government Accountability Office (GAO), along 
with Community Development Entities (CDEs), the New Markets Tax 
Credit Coalition, the Ohio CDFI Fund and an investment research 
firm. The hearing examined challenges and barriers faced by 
minority-owned firms in obtaining allocations to the NMTC 
program, following up on a GAO report entitled ``NEW MARKETS 
TAX CREDIT: Minority Entities Are Less Successful in Obtaining 
Awards than Non-Minority Entities'' (GAO-09-536). The GAO 
report found: (1) that most minority CDEs did not meet the 
minimum threshold for advancing past the first phase of the 
NMTC review process; (2) of all the factors that influence 
whether a CDE receives a NMTC allocation, the asset size of the 
firm is the predominant factor, with smaller CDEs generally 
receiving lower application scores and fewer allocations; and 
(4) minority status was a significant factor in the probability 
of receiving a NMTC award.
    While the GAO report does not contain any formal 
recommendations, it does discuss potential options for Congress 
to consider if it intends for minority CDEs participation in 
the NMTC to exceed current levels, including: (1) requiring 
that a certain portion of the overall amount of allocation 
authority be directed to minority CDEs; (2) exploring the 
potential for creating a pool of NMTC allocation authority 
dedicated specifically for community banks, including minority-
owned banks; and (3) offering priority points to minority CDEs 
that apply for NMTC allocations.

                        REGULATORY RESTRUCTURING

    The Subcommittee held two hearings on regulatory 
restructuring. On July 9, 2009, the Subcommittee held a 
hearing, entitled ``Regulatory Restructuring: Balancing the 
Independence of the Federal Reserve in Monetary Policy with 
Systemic Risk Regulation.'' The Vice Chairman of the Board of 
Governors of the Federal Reserve testified, along with 
executives, economists and academics who study monetary policy, 
about how to balance the Federal Reserve's proposed new 
authority in systemic risk regulation with its traditional and 
important role as the independent authority on monetary policy. 
The hearing examined the statutory basis for the independence 
of the Federal Reserve and the rationale for independent 
central banks in the United States and around the world.
    The second Subcommittee regulatory restructuring hearing, 
held on July 16, 2009, was entitled ``Regulatory Restructuring: 
Safeguarding Consumer Protection and the Role of the Federal 
Reserve.'' A Federal Reserve System Governor, representatives 
of consumer protection organizations and academics, testified 
at the hearing. This hearing, unlike full committee hearings 
that were held on enhancing consumer financial products 
regulation generally, specifically examined some of the public 
policy and operational considerations related to the Consumer 
Financial Protection Agency as proposed by the Obama 
administration. The primary topic of the hearing was whether, 
in light of its responsibilities for writing rules, supervising 
institutions, and enforcing the nation's consumer protection 
laws, the Federal Reserve should maintain some role in consumer 
protection. The hearing explored how the Federal Reserve could 
balance such a role in consumer protection with proposed new 
responsibilities for systemic risk regulation while also 
maintaining its unique role as the nation's independent 
authority on monetary policy.

                         GLOBAL ECONOMIC CRISIS

    On May 20, 2010, the Subcommittee held a joint hearing with 
the International Monetary Policy and Trade Subcommittee, 
entitled ``The Role of the International Monetary Fund and 
Federal Reserve in Stabilizing Europe.'' A Federal Reserve 
Governor and several academics testified at the hearing about 
the global economic crisis and the efforts of governments, 
central banks and international financial institutions to 
alleviate it. Hearing issues included: (1) the Federal 
Reserve's re-opening of temporary U.S. dollar liquidity swap 
facilities with foreign central banks and (2) the International 
Monetary Fund's (IMF) financial $40 billion commitment as part 
of a larger multilateral financing package.

                           COINS AND CURRENCY

    On July 20, 2010, the Subcommittee held a hearing entitled 
``The State of U.S. Coins and Currency,'' at which the U.S. 
Mint, U.S. Bureau of Engraving & Printing, Federal Reserve's 
Reserve Bank Operations and Payment Systems Division and the 
U.S. Secret Service testified. These agencies are jointly 
responsible for the circulation of all U.S. coins and currency 
as well as anti-counterfeiting measures to protect the U.S. 
money supply.
    The hearing provided general oversight of the current state 
of U.S. coins and currency and examined (1) the effectiveness 
of anti-counterfeiting measures, (2) rising production costs of 
coin and currency, (3) potential oversupply of one dollar 
coins, (4) supply of metals for numismatic coin products and 
(5) access to currency by the vision-impaired.

                       Subcommittee Hearings Held


------------------------------------------------------------------------
      Serial No.                   Title                   Date(s)
------------------------------------------------------------------------
111-47................  An Exploration of Barriers  June 18, 2009
                         to Full Minority
                         Participation in the New
                         Markets Tax Credit
                         Program (Domestic).
111-53................  Regulatory Restructuring:   July 9, 2009
                         Balancing the
                         Independence of the
                         Federal Reserve in
                         Monetary Policy with
                         Systemic Risk Regulation
                         (Domestic).
111-60................  Regulatory Restructuring:   July 16, 2009
                         Safeguarding Consumer
                         Protection and the Role
                         of the Federal Reserve
                         (Domestic).
111-138...............  The Role of the             May 20, 2010
                         International Monetary
                         Fund and Federal Reserve
                         in Stabilizing Europe
                         (Domestic and
                         International).
111-145...............  The State of U.S. Coins     July 20, 2010
                         and Currency (Domestic).
------------------------------------------------------------------------

       Subcommittee on Financial Institutions and Consumer Credit


          (Ratio: 27-18)

   LUIS V. GUTIERREZ, IL, Chair

JEB HENSARLING, Texas                CAROLYN MALONEY, New York
J. GRESHAM BARRETT, South Carolina   MELVIN L. WATT, North Carolina
MICHAEL N. CASTLE, Delaware          GARY L. ACKERMAN, New York
PETER KING, New York                 BRAD SHERMAN, California
EDWARD R. ROYCE, California          DENNIS MOORE, Kansas
WALTER B. JONES, North Carolina      PAUL E. KANJORSKI, Pennsylvania
SHELLEY MOORE CAPITO, West Virginia  MAXINE WATERS, California
SCOTT GARRETT, New Jersey            RUBEN HINOJOSA, Texas
JIM GERLACH, Pennsylvania            CAROLYN McCARTHY, New York
RANDY NEUGEBAUER, Texas              JOE BACA, California
TOM PRICE, Georgia                   AL GREEN, Texas
PATRICK T. McHENRY, North Carolina   WM. LACY CLAY, Missouri
JOHN CAMPBELL, California            BRAD MILLER, North Carolina
KEVIN McCARTHY, California           DAVID SCOTT, Georgia
KENNY MARCHANT, Texas                EMANUEL CLEAVER, Missouri
CHRISTOPHER LEE, New York            MELISSA BEAN, Illinois
ERIK PAULSEN, Minnesota              PAUL W. HODES, New Hampshire
LEONARD LANCE, New Jersey            KEITH ELLISON, Minnesota
SPENCER BACHUS. Alabama, ex officio  RON KLEIN, Florida
                                     CHARLES A. WILSON, Ohio
                                     GREGORY W. MEEKS, New York
                                     BILL FOSTER, Illinois
                                     ED PERLMUTTER, Colorado
                                     JACKIE SPEIER, California
                                     TRAVIS CHILDERS, Mississippi
                                     WALT MINNICK, Idaho
                                     BARNEY FRANK, Massachusetts, ex 
                                     officio

                  Subcommittee Legislative Activities


                        CREDIT CARD ACT OF 2009

                               (H.R. 627)


Summary

    H.R. 627, the ``Credit Card Act of 2009,'' provides 
consumers protections against anti-competitive, unfair and 
deceptive acts and practices in the credit card industry. The 
bill: (1) increases notice and disclosures to consumers of 
increases in interest rates and other changes to significant 
contract terms; (2) ends arbitrary rate increases; (3) 
prohibits double-cycle billing and universal default rate 
increases; (4) requires the fair allocation of payments for 
accounts with multiple balances; (5) requires that penalty fees 
be reasonable and proportionate to the omission or error; and 
(6) eliminates diminishing value and hidden fees for gift 
cards.

Legislative History

    H.R. 627, the ``Credit Card Act of 2009'' was introduced by 
Rep. Carolyn Maloney and 42 co-sponsors on January 22, 2009 and 
was referred to the Committee on Financial Services.
    On March 19, 2009, the Subcommittee on Financial 
Institutions and Consumer Credit held a legislative hearing 
entitled, ``H.R. 627, The Credit Cardholders' Bill of Rights 
Act of 2009; and H.R. 1456, the Consumer Overdraft Protection 
Fair Practices Act of 2009.'' The hearing focused on provisions 
in H.R. 627 that addressed credit card pricing practices, fees 
and billing practices, the effectiveness of credit card 
disclosures and joint unfair and deceptive acts and practices 
rulemaking by federal banking regulators. The hearing also 
focused on upcoming Regulation E amendments on overdraft 
protections that were proposed by the Federal Reserve and were 
relevant to H.R. 1456. The Subcommittee heard testimony from 
Sandra F. Braunstein, Director, Division of Consumer and 
Community Affairs, Board of Governors of the Federal Reserve 
System, Montrice Yakimov, Managing Director, Compliance and 
Consumer Protection, Office of Thrift Supervision, Sheila 
Albin, Associate General Counsel, National Credit Union 
Administration, Kenneth J. Clayton, Senior Vice President/
General Counsel, American Bankers Association Card Policy 
Council, Linda Echard, President and CEO ICBA Bancard, on 
behalf of the Independent Community Bankers of America, Douglas 
Fecher, President and CEO, Wright-Patt Credit Union, Inc., on 
behalf of the Credit Union National Association, Oliver I. 
Ireland, Partner, Morrison ` Foerster, LLP, Washington, DC, 
Todd McCracken, President, National Small Business Association, 
Ed Mierzwinski, Senior Fellow, Consumer Program, U.S. PIRG, and 
Travis Plunkett, Legislative Director, Consumer Federation of 
America.
    On April 2, 2009, the Subcommittee met in open session and 
ordered the bill to be forwarded to the full Committee, as 
amended, with a favorable recommendation on a voice vote.
    On April 22, 2009, the full Committee met in open session 
and ordered the bill to be reported, as amended, with a 
favorable recommendation on a recorded vote of 48 yeas and 19 
nays. The Committee reported the bill to the House, H. Rept. 
111-88, on April 27, 2009.
    On April 30, 2009, the House adopted H. Res. 379 providing 
for the consideration of H.R. 627 under a structured rule. Also 
on that day, the House passed the bill by a recorded vote of 
357 yeas and 70 nays. The bill was received in the Senate the 
same day and was read twice and placed on the Senate 
Legislative Calendar.
    On May 19, 2009, H.R. 627 passed the Senate, as amended, by 
a vote of 90 yeas and 5 nays.
    On May 20, 2009, the House agreed to the Senate amendment 
on H.R. 627 by a vote of 279 yeas and 147 nays.
    On May 22, 2009, H.R. 627 was signed into law by the 
President and became Public Law 111-24.

            CONSUMER OVERDRAFT PROTECTION FAIR PRACTICES ACT

                              (H.R. 1456)


Summary

    H.R. 1456, the Consumer Overdraft Protection Fair Practices 
Act amends the Electronic Funds Transfer Act to protect 
consumers from unfair and deceptive acts and practices 
involving overdraft protections. The bill: (1) requires 
affirmative consumer request for overdraft protections; (2) 
prohibits manipulation of payments to increase overdraft fees; 
(3) restricts overdraft fees and services initiated via an ATM; 
(4) prohibits false or misleading claims about the nature of 
overdraft fees; (5) prohibits misrepresentation regarding the 
coverage of overdraft fees; and (6) authorizes the Federal 
Reserve to enact rulemaking to restrict additional acts and 
practices.

Legislative History

    H.R. 1456, the ``Consumer Overdraft Protection Fair 
Practices Act'' was introduced by Rep. Carolyn Maloney and 6 
co-sponsors on March 12, 2009 and was referred to the Committee 
on Financial Services.
    On March 19, 2009, the Subcommittee on Financial 
Institutions and Consumer Credit held a legislative hearing 
entitled, ``H.R. 627, The Credit Cardholders' Bill of Rights 
Act of 2009; and H.R. 1456, the Consumer Overdraft Protection 
Fair Practices Act of 2009.'' The hearing focused on provisions 
in H.R. 627 that addressed credit card pricing practices, fees 
and billing practices, the effectiveness of credit card 
disclosures and joint unfair and deceptive acts and practices 
rulemaking by federal banking regulators. The hearing also 
focused on upcoming Regulation E amendments on overdraft 
protections that were proposed by the Federal Reserve and were 
relevant to H.R. 1456. The Subcommittee heard testimony from 
Sandra F. Braunstein, Director, Division of Consumer and 
Community Affairs, Board of Governors of the Federal Reserve 
System, Montrice Yakimov, Managing Director, Compliance and 
Consumer Protection, Office of Thrift Supervision, Sheila 
Albin, Associate General Counsel, National Credit Union 
Administration, Kenneth J. Clayton, Senior Vice President/
General Counsel, American Bankers Association Card Policy 
Council, Linda Echard, President and CEO ICBA Bancard, on 
behalf of the Independent Community Bankers of America, Douglas 
Fecher, President and CEO, Wright-Patt Credit Union, Inc., on 
behalf of the Credit Union National Association, Oliver I. 
Ireland, Partner, Morrison & Foerster, LLP, Washington, DC, 
Todd McCracken, President, National Small Business Association, 
Ed Mierzwinski, Senior Fellow, Consumer Program, U.S. PIRG, and 
Travis Plunkett, Legislative Director, Consumer Federation of 
America.
    No further legislative activity occurred on H.R. 1456 in 
the 111th Congress.

                     PAYDAY LOAN REFORM ACT OF 2009

                              (H.R. 1214)


Summary

    H.R. 1214, the Payday Loan Reform Act of 2009, would 
establish federal protections for consumers from unfair fees 
and practices in the payday loan industry. The bill would: (1) 
mandate disclosures of the nature of the loan; (2) create a 
mandatory repayment plan option for all loans; (3) limit the 
amount of fees and interest to 15 cents on the dollar; and (4) 
prohibit certain acts and practices that lenders have commonly 
used to take advantage of borrowers.

Legislative History

    H.R. 1214, the ``Payday Loan Reform Act of 2009'' was 
introduced by Rep. Luis Gutierrez and 4 co-sponsors on March 
12, 2009 and was referred to the House Committee on Financial 
Services.
    On April 2, 2009, the Subcommittee on Financial 
Institutions and Consumer Credit held a legislative hearing 
entitled, ``H.R. 1214, the Payday Loan Reform Act of 2009.'' 
The hearing was held to give a better understanding of the 
industry, its economics, how it function s as well as the 
effects, both negative and positive, on consumers. The 
Subcommittee heard testimony from Jean Ann Fox, Director of 
Financial Services, Consumer Federation of America, Troy 
McCullen, President and Chief Executive Officer, Finance 
America of Louisiana, G. Michael Flores, Chief Executive 
Officer, Bretton Woods, Inc., Gerri Guzman, Montebello, 
California.
    No further activity on H.R. 1214 occurred in the 111th 
Congress.

           THE CREDIT UNION SHARE INSURANCE STABILIZATION ACT

                              (H.R. 2351)


Summary

    H.R. 2351, the Credit Union Share Insurance Stabilization 
Act, would authorize the necessary steps to stabilize the Share 
Insurance Fund of the credit union industry. The bill would: 
(1) create a Temporary Corporate Credit Union Stabilization 
Fund; (2) permanently increase the authority of the National 
Credit Union Administration (NCUA) to borrow from the Treasury 
Department; (3) provide short-term authority for the NCUA to 
borrow up to $30 billion; (4) authorize the NCUA to establish a 
restoration plan if these funds were to fall below desired 
levels; and (5) require the NCUA Board to make annual reports 
on the operations and financial status of the Fund.

Legislative History

    H.R. 2351, the Credit Union Share Insurance Stabilization 
Act, was introduced by Rep. Paul Kanjorski and 4 co-sponsors on 
May 12, 2009 and was referred to the House Committee on 
Financial Services.
    On May 20, 2009, the Subcommittee on Financial Institutions 
and Consumer Credit held a legislative hearing entitled, ``H.R. 
2351, the Credit Union Share Insurance Stabilization Act.'' The 
hearing was held to examine the current state of the federal 
credit union system and the potential need for Congress to 
authorize the creation of a temporary corporate credit union 
stabilization fund as proposed by this legislation. The 
subcommittee heard testimony from Michael E. Fryzel, Chairman, 
National Credit Union Administration, George Reynolds, 
Chairman, National Association of State Credit Union 
Supervisors; Senior Deputy Commissioner, Georgia Department of 
Banking and Finance, Jim Bedinger, Chief Operations Officer, 
Chicago Patrolmen's Federal Credit Union on behalf of the 
National Association of Federal Credit Unions, William Lavage, 
President and Chief Executive Officer, Service 1st Federal 
Credit Union on behalf of the Credit Union National 
Association.
    No further activity on H.R. 2351 occurred in the 111th 
Congress.

                    THE EQUAL EMPLOYMENT FOR ALL ACT

                              (H.R. 3149)


Summary

    H.R. 3149, the Equal Employment for All Act, would prohibit 
the use of credit reports for employment purposes with the 
exception of jobs that require national security or FDIC 
clearance, employment that is at the supervisory, managerial, 
professional or executive level, or is otherwise required by 
law.

Legislative History

    H.R. 3149, the ``Equal Employment for All Act,'' was 
introduced by Rep. Steve Cohen with 26 co-sponsors on July 9, 
2009 and was referred to the House Committee on Financial 
Services.
    On September 23, 2010, the Subcommittee on Financial 
Institutions and Consumer Credit held a legislative hearing 
entitled, ``Legislative Hearing on H.R. 3149, the Equal 
Employment for All Act.'' The hearing was held to examine the 
current extent to which credit reports play a role in the 
hiring practices of companies and the implication of these 
practices for job applicants as well as the potential effects 
of this legislation on hiring practices. The Subcommittee heard 
testimony from Steve Cohen, Member of Congress, Sarah Crawford, 
Senior Counsel, Lawyers' Committee on Civil Rights Under Law, 
Chi Chi Wu, Staff Attorney, National Consumer Law Center 
(NCLC), Donald R. Livingston, Partner, Akin Gump Strauss Hauer 
` Feld LLP, on behalf of the U.S. Chamber of Commerce, Adam 
Klein, Partner, Outten ` Golden LLP, Judy Gootkind, Vice 
President of Finance and Administration, Creative Services; and 
Member, National Association of Professional Background 
Screeners (NAPBS) Board of Directors, Colleen Parker Denston, 
Director of Human Resources, Worcester Preparatory School, on 
behalf of Society for Human Resource Management (SHRM), Hilary 
Shelton, Senior Vice-President for Advocacy, NAACP.
    No further activity on H.R. 3149 occurred in the 111th 
Congress.

                   SUBCOMMITTEE OVERSIGHT ACTIVITIES

                             TARP OVERSIGHT

    On March 4, 2009, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled, 
``TARP Oversight: Is TARP Working for Main Street?'' The 
hearing focused on the role of TARP and whether or not it had 
been successful in freeing up credit for American businesses, 
especially the small and medium-sized firms that are vital to 
the U.S. economy. The Subcommittee examined whether large TARP 
recipient banks have actually decreased their lending to 
businesses after receiving TARP funds, and proposals for making 
more TARP funds available to regional banks, community banks 
and other institutions that are willing and able to immediately 
lend those funds to small firms. The Subcommittee heard 
testimony from Dr. David Scharfstein, Professor of Finance and 
Banking, Harvard Business School, Dr. Dean Baker, Co-Director, 
Center for Economic and Policy Research, Robert W. Davenport 
President, National Development Council, C.R. Cloutier, 
President and CEO, MidSouth Bank NA on behalf of the 
Independent Community Bankers of America, Bert Ely, Ely ` 
Company, Joseph Zucchero, Owner, Mr. Beef Deli.

                            MORTGAGE LENDING

    On March 11, 2009, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled, 
``Mortgage Lending Reform: A Comprehensive Review of the 
American Mortgage System.'' The hearing examined the current 
state of the U.S. mortgage system with a specific focus on 
upcoming comprehensive mortgage reform legislation that the 
Financial Services Committee took up later in the year. The 
witnesses were asked to focus their testimony on recommended 
changes to H.R. 3915, ``The Mortgage Reform and Anti-Predatory 
Lending Act of 2007'' which passed the House in the 110th 
Congress. The Subcommittee heard testimony from Sandra 
Braunstein, Director, Division of Consumer and Community 
Affairs, Board of Governors of the Federal Reserve System, 
Steven Antonakes, Commissioner, Massachusetts Division of Banks 
on behalf of the Conference of State Bank Supervisors, David 
Berenbaum, Executive Vice President, National Community 
Reinvestment Coalition, Julia Gordon, Senior Policy Council, 
Center for Responsible Lending, Margot Saunders, Counsel, 
National Consumer Law Center, Stephanie Jones, Executive 
Director, National Urban League Policy Institute, Graciela 
Aponte, Analyst, National Council of La Raza, Michael 
Middleton, President and CEO, Community Bank of Tri-County, on 
behalf of the American Bankers Association, David G. Kittle, 
Chairman, Mortgage Bankers Association, Marc Savitt, President, 
National Association of Mortgage Brokers, Charles McMillan, 
President, National Association of Realtors, Jim Amorin, 
President, Appraisal Institute, Joe Robson, Chairman of the 
Board, National Association of Home Builders, Lawrence E. 
Platt, Partner, K&L Gates, on behalf of the Securities Industry 
and Financial Markets Association, Donald Lampe, Partner, 
Womble Carlyle Sandridge & Rice, PLLC.

                     INTERNATIONAL MONEY TRANSFERS

    On June 3, 2009, the Subcommittee on Financial Institutions 
and Consumer Credit held a hearing entitled, ``Remittances: 
Regulation and Disclosure in a New Economic Environment.'' The 
hearing examined consumer access to remittance transfer 
outlets, the costs associated with sending remittances, current 
levels of transparency regarding fees and exchange rates, and 
the effect of competition in the marketplace. The hearing 
focused on the progress made by the industry in reducing 
consumer fees over the last several years and explored whether 
additional consumer disclosures should be mandated by federal 
law. The hearing also examined whether or not a federal 
regulator is needed to oversee the remittance industry. The 
Subcommittee heard testimony from Dr. Manuel Orozco, Senior 
Associate and Director of Remittances and Development, Inter-
American Dialogue, Annette LoVoi, Field Director, Appleseed, 
Mark Thompson, Associate General Counsel, The Western Union 
Company, Scott McClain, Deputy General Counsel, Financial 
Services Centers of America.
    On March 10, 2010, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled, 
``Regulation of Money Service Businesses.'' The hearing 
examined the role of remittances and money service businesses 
in the world economy, national security concerns around the 
remittances industry and the proper role of federal regulators 
in the remittances industry. The Subcommittee heard testimony 
from Joe Cachey, Chief Compliance Officer and Associate General 
Counsel, Western Union, Mr. Scott K. McClain, Partner, Winne 
Banta Hetherington Basralian & Kahn, P.C., on behalf of 
Financial Service Centers of America, Ms. Deborah Thoren-Peden, 
Partner, Pillsbury Winthrop Shaw Pittman LLP.

                           FINANCIAL LITERACY

    On June 25, 2009, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled, 
``Improving Consumer Financial Literacy under the New 
Regulatory System.'' The hearing examined the continuing need 
for financial literacy with a particular focus on the role of 
consumer literacy under the President's newly proposed 
regulatory framework. Among the issues that were addressed are: 
how the consumer friendly ``plain language'' products proposed 
under the President's regulatory restructuring plan would be 
created and regulated; the efficacy of previous federal 
financial literacy efforts; and which agency should have 
primacy over financial literacy efforts going forward under the 
new plan. The Subcommittee heard testimony from Laura Levine, 
Executive Director, Jump$tart Coalition for Personal Financial 
Literacy, Lot Diaz, Vice President, Community Development, 
National Council of La Raza, Dallas Salisbury, President and 
CEO, Employee Benefit Research Institute, Stephanie J. Jones, 
Executive Director, National Urban League Policy Institute, Dr. 
Gerald Lauber, Chief Senior Advisor, National Urban Alliance, 
John Gannon, Senior Vice President, Office of Investor 
Education and President of the FINRA Investor Education 
Foundation, The Financial Industry Regulatory Authority, Brent 
Neiser, Director of Strategic Programs and Alliances, National 
Endowment for Financial Education.

                         FINANCIAL SUPERVISION

    On January 21, 2010, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled, ``The 
Condition of Financial Institutions: The Failure and Seizure of 
an American Bank.'' The hearing examined the condition of the 
lending industry by focusing on a case study of a recent bank 
failure. The process behind the Federal Deposit Insurance 
Corporation's failed bank resolution procedure was examined 
along with the federal government's ongoing efforts to restore 
stability to our nation's financial system. The Subcommittee 
heard testimony from Steven McCullough, Chief Executive 
Officer, Bethel New Life, Michael E. Kelly, Chairman and Chief 
Executive Officer, FBOP Corporation, Richard Hartnack, Vice 
Chairman, U.S. Bank, Jeff Austin III, Vice Chairman, Austin 
Bank, Mr. David Miller, Director of Investments, U.S. 
Department of the Treasury, Ms. Jennifer Kelly, Senior Deputy 
Comptroller for Midsize/Community Bank Supervision, Office of 
the Comptroller of the Currency, Mitchell Glassman, Director, 
Division of Resolutions and Receiverships, Federal Deposit 
Insurance Corporation.

                       CREDIT SCORES AND REPORTS

    On March 24, 2010, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled, 
``Keeping Score on Credit Scores: An Overview of Credit Scores, 
Credit Reports and Their Impact on Consumers.'' The hearing 
examined the role of consumer credit reports and scores on the 
economy and an individual's financial life. The hearing focused 
on a range of specific issues dealing with consumer credit 
reports including: implementation of Federal Trade Commission 
rules governing risk-based pricing notices; the accuracy and 
integrity of information contained in the credit reports and 
the dispute resolution process for known errors; and the effect 
that the credit crisis has had on consumer credit scores in 
aggregate. The Subcommittee heard testimony from Evan 
Hendricks, Editor/Publisher, Privacy Times, Stuart K. Pratt, 
President and CEO, Consumer Data Industry Association, Mr. Tom 
Quinn, Vice President, Global Scoring Solutions, FICO, Barrett 
Burns, President & CEO, VantageScore Solutions, LLC, Chet D. 
Wiermanski, Global Chief Scientist, Analytic Decision Services, 
TransUnion LLC, Stan Oliai, Senior Vice President, Decision 
Sciences, Experian Decision Analytics, Experian, Myra K. Hart, 
Ph.D., Senior Vice President, Analytical Services, Equifax 
Inc., Ms. Anne P. Fortney, Partner, Hudson Cook, LLP, Sandra 
Braunstein, Director, Division of Consumer and Community 
Affairs, Federal Reserve Board of Governors, David Vladeck, 
Director, Bureau of Consumer Protection, Federal Trade 
Commission.
    On May 10, 2010, the Subcommittee on Financial Institutions 
and Consumer Credit held a hearing entitled, ``Use of Credit 
Information Beyond Lending: Issues and Reform Proposals.'' The 
hearing reviewed the methodology, use and impact of personal 
consumer credit information in the financial services 
marketplace. The first panel focused on how credit-based 
insurance scores are used in the rating and underwriting of 
insurance and efforts to improve the supervision and consumer 
understanding of the use of credit-based insurance scores. The 
second panel focused on other used of credit information, 
including for employment purposes, and the impact of medical 
debt on credit reports and scores. The Subcommittee heard 
testimony from Michael T. McRaith, Director, Illinois 
Department of Insurance, on behalf of the National Association 
of Insurance Commissioners, David Snyder, Vice President and 
Associate General Counsel, Public Policy, American Insurance 
Association, John Wilson, Director, Analytics, LexisNexis Risk 
Solutions, Chi Chi Wu, Staff Attorney, National Consumer Law 
Center, Mark Rukavina, Executive Director, The Access Project, 
Stuart K. Pratt, President and CEO, Consumer Data Industry 
Association, Ms. Anne Fortney, Partner, Hudson Cook, LLP.

                       COMMUNITY REINVESTMENT ACT

    On April 15, 2010, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled, 
``Perspectives and Proposals on the Community Reinvestment 
Act.'' The hearing examined the future of the Community 
Reinvestment Act (CRA) given the changes within the financial 
services marketplace over the past decade. The hearing also 
examined proposals by members of the banking industry, 
community advocacy organizations and academics on improvements 
to CRA enforceability and effectiveness. The Subcommittee heard 
testimony from John Taylor, President, National Community 
Reinvestment Coalition, Cy Richardson, Vice President of 
Housing and Community Development, National Urban League, Eric 
Rodriguez, Vice President of the Office of Research, Advocacy, 
and Legislation, National Council of La Raza, William Askew, 
Senior Policy Advisor, Financial Services Roundtable, Calvin 
Bradford, Board Member, National People's Action, Mark A. 
Willis, Resident Research Fellow, Furman Center for Real Estate 
and Urban Policy, New York University, Eugene A. Ludwig, Chief 
Executive Officer, Promontory Financial Group, LLC, Vincent R. 
Reinhart, Resident Scholar, American Enterprise Institute for 
Public Policy Research.

                       Subcommittee Hearings Held


------------------------------------------------------------------------
      Serial No.                   Title                   Date(s)
------------------------------------------------------------------------
111-9.................  TARP Oversight: Is TARP     March 4, 2009
                         Working for Main Street)
                         (Financial Institutions).
111-11................  Mortgage Lending Reform: A  March 11, 2009
                         Comprehensive Review of
                         the American Mortgage
                         System (Financial
                         Institutions).
111-17................  H.R. 627, the Credit        March 19, 2009
                         Cardholders' Bill of
                         Rights Act of 2009: and
                         H.R. 1456, the Consumer
                         Overdraft Protection Fair
                         Practices Act of 2009
                         (Financial Institutions).
111-24................  H.R. 1214, the Payday Loan  April 2, 2009
                         Reform Act of 2009
                         (Financial Institutions).
111-35................  H.R. 2351, the Credit       May 20, 2009
                         Union Share Insurance
                         Stabilization Act
                         (Financial Institutions).
111-39................  Remittance Regulation and   June 3, 2009
                         Disclosure in a New
                         Economic Environment
                         (Financial Institutions).
111-50................  Improving Consumer          June 25, 2009
                         Financial Literacy under
                         the New Regulatory System
                         (Financial Institutions).
111-97................  The Condition of Financial  January 21, 2010
                         Institutions: Examining
                         the Failure and Seizure
                         of an American Bank
                         (Financial Institutions).
111-107...............  Regulation of Money         March 10, 2010
                         Service Businesses
                         (Financial Institutions).
111-117...............  Keeping Score on Credit     March 24, 2010
                         Scores: An Overview of
                         Credit Scores, Credit
                         Reports, and their Impact
                         on Consumers (Financial
                         Institutions).
111-123...............  Perspectives and Proposals  April 15, 2010
                         on the Community
                         Reinvestment Act
                         (Financial Institutions).
111-134...............  Use of Credit Information   May 12, 2010
                         Beyond Lending: Issues
                         and Reform Proposals
                         (Financial Institutions).
111-159...............  Legislative Hearing on      September 23, 2010
                         H.R. 3149, the Equal
                         Employment for All Act
                         (Financial Institutions).
------------------------------------------------------------------------

           Subcommittee on Housing and Community Opportunity


          (Ratio: 15-10)

    MAXINE WATERS, California, 
            Chairwoman

SHELLEY MOORE CAPITO, West Virginia  NYDIA M. VELAZQUEZ, New York
THADDEUS McCOTTER, Michigan          STEPHEN F. LYNCH, Massachusetts
JUDY BIGGERT, Illinois               EMANUEL CLEAVER, Minnesota
GARY G. MILLER, California           AL GREEN, Texas
RANDY NEUGEBAUER, Texas              WILLIAM LACY CLAY, Missouri
WALTER B. JONES, North Carolina      KEITH ELLISON, Missouri
ADAM PUTNAM, Florida                 JOE DONNELLY, Indiana
KENNY MARCHANT, Texas                MICHAEL E. CAPUANO, Massachusetts
LYNN JENKINS, Kansas                 PAUL KANJORSKI, Pennsylvania
CHRISTOPHER LEE, New York            LUIS V. GUTIERREZ, Illinois
SPENCER BACHUS, Alabama, ex officio  STEVE DRIEHAUS, Ohio
                                     MARY JO KILROY, Ohio
                                     JIM HIMES, Connecticut
                                     DAN MAFFEI, New York
                                     BARNEY FRANK, Massachusetts, ex 
                                     officio

                  Subcommittee Legislative Activities


  VETERANS, WOMEN, FAMILIES WITH CHILDREN, PERSONS WITH DISABILITIES 
                      HOUSING FAIRNESS ACT OF 2010

                               (H.R. 476)


Summary

    H.R. 476, the ``Veterans, Women, Families with Children, 
Persons with Disabilities Housing Fairness Act of 2010,'' would 
authorize HUD to establish a nationwide housing discrimination 
testing program with an authorization of $15 million annually 
for five years; authorize $42.5 million annually for five years 
for the HUD Fair Housing Initiatives Program; and establish a 
$5 million competitive grant program to study the root causes 
and effects of housing discrimination.

Legislative History

    H.R. 476 was introduced by Representative Green on January 
13, 2009 and was referred to the Committee on Financial 
Services.
    On January 15, 2010, the Subcommittee held a legislative 
hearing on H.R. 476 and included witnesses from HUD, community 
groups, and academics.
    On May 27, 2010, the Subcommittee held a markup of H.R. 476 
and forwarded the bill out of the subcommittee on a voice vote.
    On July 28, 2010, the Committee held a markup of H.R. 476 
and ordered the bill reported favorably by voice vote. The 
Committee report was filed on December 9, 2010 (H. Rept. 111-
678). No further action on H.R. 476 occurred in the 111th 
Congress.

                        SECTION 8 VOUCHER REFORM

    On June 4, 2009, the Subcommittee held a hearing on H.R. 
3045, the Section 8 Voucher Reform Act of 2009. This 
legislation would reform and streamline the Section 8 voucher 
program by reforming the funding formula, simplifying 
inspections and deductions, and reforming the Moving-to-Work 
panel. Witnesses included HUD, public housing agencies, tenant 
advocates, and housing experts. On July 23, 2009 the Committee 
marked up the legislation and reported it to the House with a 
favorable recommendation on September 30, 2009 (H. Rept. 111-
277). No further action on H.R. 3045 occurred in the 111th 
Congress.

                     FEDERAL HOUSING ADMINISTRATION

    The Committee, along with the Subcommittees on Housing and 
Community Opportunity and Oversight and Investigations, held a 
combined six hearings on various issues related to the Federal 
Housing Administration. The first two of those hearings 
examined FHA's ability to oversee approved lenders and its 
ability to prevent fraud. The first hearing, ``FHA Oversight of 
Loan Originators'' was held on January 9, 2009 and the second 
hearing, ``Strengthening Oversight and Preventing Fraud in FHA 
and Other HUD Programs'' was held on June 18, 2009. At the 
January hearing, the Committee heard testimony from HUD's 
Deputy Assistant Secretary for Single Family Housing, and from 
the HUD Assistant Inspector General for Audit, about processes 
used to prevent fraud and possible challenges to FHA oversight 
of loan originators. The Committee also heard testimony from 
the National Association of Mortgage Brokers and the Mortgage 
Bankers Association. At the June hearing, the Committee heard 
testimony from the HUD Inspector General as well as industry 
participants, as well as the National Community Reinvestment 
Coalition, an advocacy organization.
    The other four hearings on FHA examined the status of FHA's 
Mutual Mortgage Insurance Fund (MMIF), which in FY2009 fell 
below the 2 percent mandated under The Cranston-Gonzalez 
National Affordable Housing Act (P.L. 101-625), as well as 
regulatory, administrative and statutory proposals to improve 
the financial health of the MMIF (the first Subcommittee 
hearing on FHA's financial condition was held on October 8, 
2010; a Committee hearing also examined this topic on December 
2, 2009; a legislative hearing in the Subcommittee on the FHA 
Reform Act of 2010 was held on March 11, 2010; a hearing on 
FHA's implementation of higher loan fees and pending 
legislative proposals was held on September 22, 2010). In these 
hearings, the Subcommittee and Committee conducted oversight of 
FHA's regulatory and administrative actions taken to improve 
the financial condition of the MMIF, including: hiring a Chief 
Risk Officer; creating stricter guidelines for the streamline 
refinance program; announcing new appraisal controls; 
increasing net worth requirements for mortgagees; increasing 
the upfront mortgage insurance premium; changing downpayment 
requirements for borrowers with low credit scores; and reducing 
allowable seller concessions.
    On April 22, 2010, the Committee reported out the FHA 
Reform Act of 2010 (H.R. 5072) with a favorable recommendation, 
which provided FHA with additional tools to improve the health 
of the MMIF. The Act included a provision to allow the 
Secretary to increase the annual mortgage insurance premium for 
the single-family mortgage insurance program, which will 
increase funds to the MMIF by an estimated $300 million per 
month. The Act also extended the Secretary's authority to 
require indemnification from Direct Endorsement lenders; 
provided the Secretary with the authority to terminate 
mortgagee approval on a nationwide basis if the mortgagee 
originates or underwrites mortgages with excessive rates of 
claim or default; and provided the Secretary with enhanced 
ability to review mortgagee performance, including hiring 
outside credit risk analysts, reviewing significant or rapid 
increases in early defaults or claims, reporting mortgagee 
actions taken against other mortgagees, enhancing annual and 
quarterly reports on the MMIF, providing default and 
origination information by loan servicer and originating direct 
endorsement lender, and requiring a GAO report. H.R. 5072 
passed the House of Representatives on June 10, 2010 by a 
margin of 406-4. The provision in the Act that would allow the 
Secretary to increase the annual mortgage insurance premium on 
the single-family mortgage insurance program became law on 
August 11, 2010 (H.R. 5981, P.L. 111-229).

                            FLOOD INSURANCE

    Due to the lack of a long-term authorization, the National 
Flood Insurance program lapsed 3 times during the 111th 
Congress: for two days in March 2010, for 18 days in April 
2010, and again from June 1 to July 2, 2010. Chairwoman Waters 
introduced H.R. 5569 to continue the program for a three-month 
period pending the enactment of a long-term authorization, 
which was passed by the House on June 23, 2010 and by the 
Senate on June 30, 2010. On July 2, President Obama signed this 
legislation continuing the program from July 2 through 
September 30 into law (P.L. 111-196). On September 30, 2010, 
President Obama signed S. 3814, legislation to continue the 
program through September 30, 2011 (P.L. 111-250).
    On April 21, 2010 the Subcommittee held a hearing on 
``Legislative Proposals to Reform the National Flood Insurance 
Program.'' The hearing focused on two bills designed to reform 
and expand the NFIP: H.R. 5114, the Flood Insurance Reform 
Priorities Act of 2010 and H.R. 1264, the Multiple Peril 
Insurance Act of 2009. H.R. 5114 would have reauthorized the 
flood insurance program for 5 years and provided various 
reforms to the program, including the phasing in of actuarial 
rates for newly mapped homeowners and the elimination of 
subsidized rates over time for certain categories of 
properties. H.R. 1264 would have directed the NFIP to offer 
actuarially priced optional wind insurance policies and would 
have prohibited insurers from including anti-concurrent 
causation provisions in their wind insurance policies. On April 
22, 2010, both bills were reported out of the Committee with a 
favorable recommendation. On July 15, 2010, the House of 
Representatives passed H.R. 5114 by a vote of 329-90.

                    AFFORDABLE HOUSING PRESERVATION

    The Subcommittee held two hearings on legislation to 
preserve the nation's affordable housing stock. On July 15, 
2009, the Subcommittee held a hearing on ``Legislative Options 
for Preserving Federally and State Assisted Affordable Housing 
and Preventing the Displacement of Low-Income, Elderly, and 
Disabled Tenants.'' The hearing focused on a discussion draft 
of the ``Housing Preservation and Tenant Protection Act of 
2009,'' authored by Chairman Frank. The draft bill would 
address the preservation of the nation's housing stock by 
providing protections for tenants, incentives for owners, and 
better funding streams for certain assisted housing 
developments. Witnesses included the Rural Housing Service, 
tenant advocates, owners, and affordable housing experts. On 
March 24, 2010, the Subcommittee held its second hearing on 
this legislation. The hearing was on the draft, which was 
introduced on March 17, 2010 as H.R. 4868, the ``Housing 
Preservation and Tenant Protection Act of 2010.'' Witnesses 
included the Rural Housing Service, HUD, tenant advocates, 
owners, and affordable housing experts. H.R. 4868 was marked up 
by the Committee on July 29, 2010 and forwarded to the House 
with a favorable recommendation.

                             PUBLIC HOUSING

    The Subcommittee held a hearing on July 29, 2010, the 
Subcommittee held a hearing on ``Academic Proposals on the 
Future of Public Housing.'' At the hearing various academics 
testified about the current state of the public housing stock, 
resident characteristics, and issues facing the program as 
moves into the 21st century. On April 28, 2010, the 
Subcommittee held a hearing on ``Legislative Proposals to 
Preserve Public Housing.'' The hearing focused on two 
discussion drafts. The first, the Public Housing One-for-One 
Replacement and Tenant Protection Act of 2010, was designed to 
preserve public housing stock through one-for-one replacement 
of demolished or disposed units. The second, the Public Housing 
Preservation and Rehabilitation Act of 2010, was designed to 
provide public housing agencies with various financial tools in 
order to facilitate preservation of the stock. Both pieces of 
legislation were eventually included in H.R. 5814, the Public 
Housing Reinvestment and Tenant Protection Act of 2010. On July 
28, 2010, the Committee marked up H.R. 5814 and reported it to 
the House with a favorable recommendation.

                           GREEN DEVELOPMENT

    The Subcommittee held two hearings in June 2009 on H.R. 
2336, the ``Green Resources for Energy Efficient Neighborhoods 
Act of 2009 or GREEN Act of 2009.'' The bill would create 
programs within HUD that are designed to make residences energy 
efficient to the 2009 International Energy Conservation Code 
(IECC), which contains energy efficiency criteria for 
residential and commercial buildings and additions to existing 
buildings. The witnesses testified about the importance of 
green affordable housing, especially for low-income families 
living in multi-family housing projects. On April 22, 2010, the 
Committee held a markup of H.R. 2336 and ordered the bill 
reported by voice vote. On September 22, 2010, the report was 
filed (H. Rept. 111-619). No further activity occurred on H.R. 
2336 in the 111th Congress.

                       NATURAL DISASTER INSURANCE

    H.R. 2555, the Homeowners Defense Act of 2010, was ordered 
reported by the Committee on April 27, 2010, and the report was 
filed on July 13, 2010 (H. Rept. 111-534). Specifically, H.R. 
2555 would: (1) establish a non-profit consortium to coordinate 
catastrophe risk management actions by the States; (2) provide 
for a Federal guarantee of debt obligations issued by eligible 
state-based catastrophe insurance programs; (3) establish a 
Federal program to provide reinsurance to eligible state-based 
catastrophe insurance programs; (4) authorize a new Federal 
grant program to help the States prevent and mitigate losses 
from natural disasters; and (5) direct the GAO to study and 
report on the use of risk-based pricing by state-based 
catastrophe insurance programs. No further activity on H.R. 
2555 occurred in the 111th Congress.

                         INCLUSIVE HOME DESIGN

    On September 29, 2010, the Subcommittee held a hearing on 
the Inclusive Home Design Act, which was introduced by 
Congresswoman Jan Schakowsky on March 10, 2009 (H.R. 1408). The 
bill would require that, with certain exceptions, all newly 
built single-family homes and townhouses receiving federal 
funds from the U.S. Department of Housing and Urban Development 
(HUD), the U.S. Department of Veterans Affairs (VA) or the U.S. 
Department of Agriculture (USDA) under title V of the Housing 
Act of 1949, meet four specific standards, including: 1) having 
at least one accessible (``zero-step'') entrance into the home; 
2) ensuring all doorways on the main floor have a minimum of 32 
inches of clear passage space; 3) having at least one indoor 
room with an area of not less than 70 square feet and one 
wheelchair-accessible bathroom on the main floor; and 4) 
placing electrical and climate controls at heights reachable 
from a wheelchair. Congresswoman Schakowsky testified on her 
legislation. Additionally, individuals from across the country 
testified on their experiences advocating for inclusive home 
design principles, while a researcher testified on the need for 
affordable, accessibly-designed housing across the nation.

                   Subcommittee Oversight Activities


              MORTGAGE FORECLOSURES AND LOAN MODIFICATIONS

    The Subcommittee held four hearings on the performance of 
mortgage servicers in modifying loans and assisting homeowners, 
including modifications through the Treasury's Home Affordable 
Modification Program (HAMP). At these hearings Treasury and 
other government officials, mortgage servicers, academics, and 
consumer advocates testified about the status of loan 
modifications, problems with the loan modification process, the 
implications for homeowners, and other issues related to 
mortgage servicing. The Subcommittee on Housing and Community 
Opportunity held a hearing on November 18, 2010, to examine 
HAMP and other issues related to foreclosure documentation and 
due process requirements. Witnesses included housing and 
banking regulators, mortgage servicers, consumer advocates, 
foreclosure attorneys, and other experts.
    In addition, the Subcommittee held a hearing on May 6, 
2009, on ``Legislative Solutions for Preventing Loan 
Modification and Foreclosure Rescue Fraud.'' The hearing 
examined the growing industry of foreclosure consultants who 
purport to, for a fee, prevent a foreclosure or obtain a loan 
modification on a homeowner's behalf. Legislation to provide 
for the regulation of these persons was included in the Dodd-
Frank Wall Street Reform and Consumer Protection Act of 2010 
(P.L. 111-203).

                             PUBLIC HOUSING

    The Subcommittee held a hearing on July 29, 2010, on 
``Academic Proposals on the Future of Public Housing.'' At the 
hearing various academics testified about the HOPE VI program's 
record on revitalizing public housing and building mixed-income 
communities. The hearing also examined the impact of HOPE VI on 
tenants', including tenants' ability to find affordable housing 
during HOPE VI rehabilitations and return to their original 
communities once redevelopment is complete.
    On April 28, 2010, the Subcommittee held a hearing on 
``Legislative Proposals to Preserve Public Housing.'' The 
hearing focused on two discussion drafts. The first, the Public 
Housing One-for-One Replacement and Tenant Protection Act of 
2010, was designed to preserve public housing stock through 
one-for-one replacement of demolished or disposed units. The 
second, the Public Housing Preservation and Rehabilitation Act 
of 2010, was designed to provide public housing agencies with 
various financial tools in order to facilitate preservation of 
the stock. Both pieces of legislation were eventually included 
in H.R. 5814, the Public Housing Reinvestment and Tenant 
Protection Act of 2010. On July 28, 2010, the Committee marked 
up H.R. 5814 and ordered reported it to the House with a 
favorable recommendation.
    On July 20, 2009, the Subcommittee held a field hearing in 
New York City on ``Legislative Proposals to Increase Work and 
Health Care Opportunities for Public and Subsidized Housing 
Residents.'' The hearing covered two discussion drafts authored 
by Representative Velazquez. The first, the Earnings and Living 
Opportunity Act would reform the Section 3 program which 
provides employment opportunities for residents of public and 
assisted housing that live in or near developments that 
undergoing rehabilitation or reconstruction. The second, the 
Together We Care Act, would create a pilot program to train 
public housing residents to become home health care aides to 
elderly residents in public housing. Witnesses included 
representatives from HUD and New York state and local 
government; experts on public housing, employment, and health 
care; and residents of public and assisted housing. 
Representative Velazquez introduced the Together We Care Act as 
H.R. 4224 on December 8, 2009. The legislation was later 
included in H.R. 5814, which was ordered reported by the 
Committee on July 29, 2010.
    On March 17, 2010, the Subcommittee held a legislative 
hearing on a discussion draft of the Administration's Choice 
Neighborhoods Initiative. Choice Neighborhoods would expand the 
HOPE VI program to assisted housing, include transportation and 
education as eligible activities, and focus the grant as a 
catalyst for revitalization of the neighborhood in which the 
housing is located.
    On July 28, 2010, the Committee reported out H.R. 5814, the 
Public Housing Reinvestment and Tenant Protection Act of 2010 
with a favorable recommendation. The bill included four titles: 
the Choice Neighborhoods Initiative Act of 2010, the Public 
Housing One-for-One Replacement and Tenant Protection Act of 
2010, the Public Housing Preservation and Rehabilitation Act of 
2010, and the Together We Care Act of 2010.

                  FEDERAL HOUSING ADMINISTRATION (FHA)

    The Committee, along with the Subcommittees on Housing and 
Community Opportunity and Oversight and Investigations, held a 
combined six hearings on various issues related to the Federal 
Housing Administration. The first two of those hearings 
examined FHA's ability to oversee approved lenders and its 
ability to prevent fraud (the first hearing, ``FHA Oversight of 
Loan Originators'' was held on January 9, 2009 and the second 
hearing, ``Strengthening Oversight and Preventing Fraud in FHA 
and Other HUD Programs'' was held on June 18, 2009). The other 
four hearings on FHA examined the status of FHA's Mutual 
Mortgage Insurance Fund (MMIF), which in FY2009 fell below the 
2 percent mandated under The Cranston-Gonzalez National 
Affordable Housing Act (P.L. 101-625), as well as regulatory, 
administrative and statutory proposals to improve the financial 
health of the MMIF (the first Subcommittee hearing on FHA's 
financial condition was held on October 8, 2010; a Committee 
hearing also examined this topic on December 2, 2009; a 
legislative hearing in the Subcommittee on the FHA Reform Act 
of 2010 was held on March 11, 2010; a hearing on FHA's 
implementation of higher loan fees and pending legislative 
proposals was held on September 22, 2010). In these hearings, 
the Subcommittee and Committee conducted oversight of FHA's 
regulatory and administrative actions taken to improve the 
financial condition of the MMIF, including: hiring a Chief Risk 
Officer; creating stricter guidelines for the streamline 
refinance program; announcing new appraisal controls; 
increasing net worth requirements for mortgagees; increasing 
the upfront mortgage insurance premium; changing downpayment 
requirements for borrowers with low credit scores; and reducing 
allowable seller concessions.
    On April 22, 2010, the Committee ordered reported the FHA 
Reform Act of 2010 (H.R. 5072) with a favorable recommendation, 
which provided FHA with additional tools to improve the health 
of the MMIF. The Act included a provision to allow the 
Secretary to increase the annual mortgage insurance premium for 
the single-family mortgage insurance program, which will 
increase funds to the MMIF by an estimated $300 million per 
month. The Act also extended the Secretary's authority to 
require indemnification from Direct Endorsement lenders; 
provided the Secretary with the authority to terminate 
mortgagee approval on a nationwide basis if the mortgagee 
originates or underwrites mortgages with excessive rates of 
claim or default; and provided the Secretary with enhanced 
ability to review mortgagee performance, including hiring 
outside credit risk analysts, reviewing significant or rapid 
increases in early defaults or claims, reporting mortgagee 
actions taken against other mortgagees, enhancing annual and 
quarterly reports on the MMIF, providing default and 
origination information by loan servicer and originating direct 
endorsement lender, and requiring a GAO report. H.R. 5072 
passed the House on June 10, 2010 by a margin of 406-4. The 
provision in the Act that would allow the Secretary to increase 
the annual mortgage insurance premium on the single-family 
mortgage insurance program became law on August 11, 2010 (P.L. 
111-229).

                SECTION 8 HOUSING CHOICE VOUCHER PROGRAM

    On June 4, 2009, the Subcommittee held a hearing on H.R. 
3045, the Section 8 Voucher Reform Act of 2009. This 
legislation would reform and streamline the Section 8 voucher 
program by reforming the funding formula, simplifying 
inspections and deductions, and reforming the Moving-to-Work 
panel. Witnesses included HUD, public housing agencies, tenant 
advocates, and housing experts. On July 23, 2009 the Committee 
marked up the legislation and reported it to the House with a 
favorable recommendation.

                             RURAL HOUSING

    The Committee held a markup on April 22, 2010 on H.R. 5017, 
a bill to preserve Section 502 single family direct and 
guaranteed loan programs. The bill passed out of the Committee 
on April 22, 2010. On April 27, 2010, H.R. 5017 passed out of 
the House under a suspension of the Rules with a vote of 352-
62. H.R. 5017 was referred to the Senate Committee on Banking, 
Housing, and Urban Affairs. On July 29, 2010, the language from 
H.R. 5017 was incorporated into the Supplemental Appropriations 
Act of 2010, H.R. 4899, and signed into law, P.L. 111-212.

                              HOMELESSNESS

    On March 28, 2009, the Subcommittee held a field hearing in 
Los Angeles, California to discuss the impact of the 
foreclosure crisis on various populations, including the 
specific effect of foreclosures on the homeless population. 
Witnesses included state elected officials, state and local 
government agencies, community advocates and academics. 
Witnesses testified about the growing number of homeless 
families and the lack of resources available to the rising 
homeless population in both Los Angeles County as well as the 
rest of the country. On June 16, 2009, the House passed H.R. 
403, the ``Homes for Heroes Act of 2009'' which authorizes 
20,000 new housing vouchers for homeless veterans. H.R. 403 was 
referred to the Senate Committee on Banking, Housing, and Urban 
Affairs on June 17, 2009.

                        NATIVE AMERICAN HOUSING

    On April 10, 2010, the Subcommittee held a legislative 
field hearing in Window Rock, Arizona focusing on H.R. 3553, 
the ``Indian Veterans Housing Opportunity Act of 2009,'' which 
ensures HUD housing benefits to qualified Native American 
veterans with disabilities. The hearing addressed the need for 
housing services within the Native American veteran community, 
especially among those with disabilities. Witnesses included 
HUD, local government agencies and elected officials, tribal 
leaders, community advocates, and affected veterans. On April 
20, 2010, H.R. 3553 passed out of the House under a suspension 
of the Rules by voice vote and was referred to the Senate. On 
September 27, 2010, the Senate passed H.R. 3553 by unanimous 
consent without amendment. On October 12, 2010, H.R. 3553 was 
signed by the President and became Public Law 111-269.

                   NEIGHBORHOOD STABILIZATION PROGRAM

    The Subcommittee conducted a field hearing in the Minnesota 
Twin Cities on January 23, 2010, that examined the Neighborhood 
Stabilization Program (NSP) and how that program is being used 
to increase the supply of public and assisted housing across 
the country, and specifically in the Twin Cities. The 
Subcommittee heard testimony from HUD on the condition of the 
housing market in the Twin Cities, and efforts under NSP to 
stabilize that market. The Subcommittee also heard from local 
government officials about the challenges that foreclosed, 
abandoned and vacant property pose to the city and from non-
profit stakeholders about the need for, and challenges in 
implementing, NSP. Witness testimony informed Subcommittee work 
with HUD on revising relevant regulations to speed up spend out 
rates and allow grantees to more effectively stabilize 
communities.

                   COMMUNITY DEVELOPMENT BLOCK GRANTS

    Chairwoman Waters requested and received a report by the 
Government Accountability Office (GAO) on how CDBG funds are 
distributed and expended by grantees to subrecipients at the 
local level (Community Development Block Grants: Entitlement 
Communities' and States' Methods of Distributing Funds Reflect 
Program Flexibility, September 15, 2010). This included a 
review of entitlement grantee distribution and expenditure 
processes, and methods of distribution used by states. GAO 
found that distribution processes varied widely between 
grantees, consistent with the flexibility embedded within the 
CDBG program.
    The Committee also requested and received a report by the 
Government Accountability Office on how grantees under the CDBG 
and HOME Investment Partnerships Program fulfill their 
requirement to prepare planning documents known as Analyses of 
Impediments (AI), which are used to identify impediments to 
fair housing (such as restrictive zoning or segregated housing) 
and actions to overcome them (Housing and Community Grants: HUD 
Needs to Enhance Its Requirements and Oversight of 
Jurisdictions' Fair Housing Plans, September 14, 2010). The 
report found that 29 percent of AIs were out-of-date per HUD 
guidance. GAO also found that, in some cases, required 
documents may not be maintained by grantees. GAO recommended 
that, through regulation, HUD require grantees to update their 
AIs periodically, follow a specific format, and submit them for 
review.

             FEDERAL HOUSING RESPONSE TO NATURAL DISASTERS

    The Subcommittee held two days of hearings in 2009 on 
August 28 and 29 in New Orleans, Louisiana to examine issues 
facing the recovery of the city's housing market 4 years after 
Hurricane Katrina. The hearings focused on the status of two 
programs critical to the City's housing recovery: the 
redevelopment of the Big Four public housing developments and 
the Road Home program. Following the hearing, Chairwoman Waters 
continued to engage with HUD on the status of these programs, 
including writing to the Secretary about actions HUD planned to 
take to address allegations that some developers were 
implementing illegal work requirements.

                NATIONAL FLOOD INSURANCE PROGRAM (NFIP)

    Due to the lack of a long-term authorization, the National 
Flood Insurance program lapsed 3 times during the 111th 
Congress: For 2 days in March 2010, for 18 days in April 2010, 
and again from June 1 to July 2, 2010. Chairwoman Waters 
drafted legislation, H.R. 5569, to continue the program for a 
three-month period pending the enactment of a long-term 
authorization. On July 2nd, President Obama signed H.R. 5569, 
legislation to continue the program from July 2nd through 
September 30th. On September 30, 2010, President Obama signed 
S. 3814, legislation to continue the program through September 
30, 2011.
    On April 21, 2010 the Subcommittee held a hearing on 
``Legislative Proposals to Reform the National Flood Insurance 
Program.'' The hearing focused on two bills designed to reform 
and expand the NFIP: H.R. 5114, the Flood Insurance Reform 
Priorities Act of 2010 and H.R. 1264, the Multiple Peril 
Insurance Act of 2009. H.R. 5114 would have reauthorized the 
flood insurance program for 5 years and provided various 
reforms to the program, including the phasing in of actuarial 
rates for newly mapped homeowners and the elimination of 
subsidized rates over time for certain categories of 
properties. H.R. 1264 would have directed the NFIP to offer 
actuarially priced optional wind insurance policies and would 
have prohibited insurers from including anti-concurrent 
causation provisions in their wind insurance policies. On April 
22, 2010, both bills were reported out of the Committee with a 
favorable recommendation. On July 15, 2010, the House of 
Representatives passed H.R. 5114 by a vote of 329-90.

                           HOUSING COUNSELING

    On May 13, 2009, the Subcommittee held a hearing on the 
role of NeighborWorks and housing counseling intermediaries in 
preventing foreclosures through housing counseling and included 
witnesses from NeighborWorks and foreclosure counseling 
intermediaries. The hearing focused specifically on challenges 
and outcomes under the National Foreclosure Mitigation 
Counseling (NFMC) Program, a NeighborWorks program established 
to provide foreclosure counseling to troubled homeowners from 
qualified foreclosure counseling intermediaries receiving grant 
funding under the program. The Dodd-Frank Wall Street Reform 
and Consumer Protection Act of 2010 contained a provision to 
establish an Office of Housing Counseling within HUD to boost 
homeownership and rental housing counseling.

                              FAIR HOUSING

    On January 15, 2010, the Subcommittee held a legislative 
hearing on H.R. 476, the ``Veterans, Women, Families with 
Children, Persons with Disabilities Housing Fairness Act of 
2010.'' The bill would authorize HUD to establish a nationwide 
housing discrimination testing program with an authorization of 
$15 million annually for five years; authorize $42.5 million 
annually for five years for the HUD Fair Housing Initiatives 
Program; and establish a $5 million competitive grant program 
to study the root causes and effects of housing discrimination. 
Witnesses included HUD, community groups, and advocates. On May 
27, 2010, the Subcommittee held a subcommittee markup of H.R. 
476 and passed the bill out of the subcommittee. On July 28, 
2010, the Committee marked up H.R. 476 and ordered the bill 
reported by voice vote.

                           GREEN DEVELOPMENT

    The Subcommittee held two hearings in June 2009 on H.R. 
2336, the ``Green Resources for Energy Efficient Neighborhoods 
Act of 2009 or GREEN Act of 2009.'' The bill would create 
programs within HUD that are designed to make residences energy 
efficient to the 2009 International Energy Conservation Code 
(IECC), which contains energy efficiency criteria for 
residential and commercial buildings and additions to existing 
buildings. The witnesses included HUD and industry experts who 
testified about the importance of green affordable housing, 
especially for low-income families living in multi-family 
housing projects. On April 22, 2010, the Committee held a 
markup of H.R. 2336 and ordered the bill reported by voice 
vote. On September 22, 2010, the report was filed (H. Rept. 
111-619) and the bill was placed on the Union Calendar.

                       Subcommittee Hearings Held


------------------------------------------------------------------------
      Serial No.                   Title                   Date(s)
------------------------------------------------------------------------
111-6.................  Loan Modifications: Are     February 24, 2009
                         Mortgage Servicers
                         Assisting Borrowers with
                         Unaffordable Mortgages
                         (Housing).
111-16................  Examining the Making Home   March 19, 2009
                         Affordable Program
                         (Housing).
111-23................  The Housing Crisis in Los   March 28, 2009
                         Angeles and Responses to
                         Preventing Foreclosures
                         and Foreclosure Rescue
                         Fraud (Housing).
111-28................  Legislative Solutions for   May 6, 2009
                         Preventing Loan
                         Modification and
                         Foreclosure Rescue Fraud
                         (Housing).
111-30................  The Role of NeighborWorks   May 13, 2009
                         and Housing Counseling
                         Intermediaries in
                         Preventing Foreclosures
                         (Housing).
111-40................  The Section 8 Voucher       June 4, 2009
                         Reform Act (Housing).
111-43................  H.R. 2336, the GREEN Act    June 11, 2009
                         of 2009, Part I (Housing).
111-45................  H.R. 2336, the GREEN Act    June 16, 2009
                         of 2009, Part II
                         (Housing).
111-59................  Legislative Options for     July 15, 2009
                         Preserving Federally- and
                         State-Assisted Affordable
                         Housing and Preventing
                         Displacement of Low-
                         Income, Elderly and
                         Disabled Tenants
                         (Housing).
111-63................  Legislative Proposals to    July 20, 2009
                         Increase Work and Health
                         Care Opportunities for
                         Public and Subsidized
                         Housing Residents
                         (Housing).
111-69................  Academic Perspectives on    July 29, 2009
                         the Future of Public
                         Housing (Housing).
111-70................  Implementation of the Road  August 20, 2009
                         Home Program Four Years
                         after Hurricane Katrina
                         (Housing).
111-71................  Status of the ``Big Four''  August 21, 2009
                         Four Years After
                         Hurricane Katrina
                         (Housing).
111-72................  Progress of the Making      September 9, 2009
                         Home Affordable Program:
                         What Are the Outcomes for
                         Homeowners and What Are
                         the Obstacles to Success?
                         (Housing).
111-87................  The Future of the Federal   October 8, 2009
                         Housing Administration's
                         Capital Reserves:
                         Assumptions, Predictions,
                         and Implications for
                         Homebuyers (Housing).
111-96................  H.R. 476, the Housing       January 20, 2010
                         Fairness Act of 2009
                         (Housing).
111-99................  The Impact of the           January 23, 2010
                         Foreclosure Crisis on
                         Public and Affordable
                         Housing in the Twin
                         Cities (Housing).
111-108...............  Approaches to Mitigating    March 10, 2010
                         and Managing Natural
                         Catastrophe Risk: H.R.
                         2555, The Homeowners'
                         Defense Act (Capital
                         Markets and Housing).
111-110...............  The FHA Reform Act of 2010  March 11, 2010
                         (Housing).
111-116...............  H.R. 4868, The Housing      March 24, 2010
                         Preservation and Tenant
                         Protection Act of 2010
                         (Housing).
111-119...............  Addressing the Housing      April 10, 2010
                         Needs of Native American
                         Veterans with
                         Disabilities (Housing).
111-122...............  The Recently Announced      April 14, 2010
                         Revisions to the Home
                         Affordable Modification
                         Program (HAMP) (Housing).
111-126...............  Legislative Proposals to    April 21, 2010
                         Reform the National Flood
                         Insurance Program
                         (Housing).
111-128...............  Legislative Proposals to    April 28, 2010
                         Preserve Public Housing
                         (Housing).
111-135...............  Minorities and Women in     May 12, 2010
                         Financial Regulatory
                         Reform: The Need for
                         Increasing Participation
                         and Opportunities for
                         Qualified Persons and
                         Businesses (Housing and
                         Oversight).
111-163...............  The Inclusive Home Design   September 29, 2010
                         Act (Housing).
111-166...............  Robo-Signing, Chain of      November 18, 2010
                         Title, Loss Mitigation
                         and Other Issues in
                         Mortgage Servicing
                         (Housing).
------------------------------------------------------------------------

        Subcommittee on International Monetary Policy and Trade

           (Ratio: 9-6)

   GREGORY W. MEEKS, New York, 
             Chairman

GARY G. MILLER, California           LUIS V. GUTIERREZ, Illinois
EDWARD R. ROYCE, California          MAXINE WATERS, California
RON PAUL, Texas                      MELVIN L. WATT, North Carolina
DON MANZULLO, Illinois               GWEN MOORE, Wisconsin
MICHELE BACHMANN, Minnesota          ANDRE CARSON, Indiana
ERIK PAULSEN, Minnesota              STEVE DRIEHAUS, Ohio
SPENCER BACHUS, Alabama, ex officio  GARY PETERS, Michigan
                                     DAN MAFFEI, New York
                                     BARNEY FRANK, Massachusetts, ex 
                                     officio

                  Subcommittee Legislative Activities


                      FOREIGN DIVESTMENT STRATEGY

    On March 12, 2009, the Subcommittee on International 
Monetary Policy and Trade held a legislative hearing entitled 
``The Iran Sanctions Enabling Act of 2009''. The Members 
discussed the legislation, H.R. 1327, which built on similar 
legislation passed in the previous Congress, which makes it the 
official policy of the United States to support state and local 
governments who seek to divest from, or to prevent investments 
in Iran's energy sector, as well as extending safe harbor 
provisions to the private sector, to individuals or 
corporations who may consider the U.S.-Iran relationship in 
their investment decisions. Earlier versions of a similar bill 
had been introduced and passed with overwhelming support in the 
110th Congress, including H.R. 2347, ``The Iran Sanctions 
Enabling Act'' and ``The Comprehensive Iran Sanctions 
Accountability and Divestment Act of 2008''. Companion bills 
were passed in the Senate; however a final reconciled bill was 
never approved during the 110th Congress. The Subcommittee 
heard testimony from the Honorable Ted Deutch, State Senator 
from Florida, Mr. Trita Parsi, President, National Iranian-
American Council, Mr. Jason Isaacson, Director of Government 
and International Affairs, American Jewish Committee and 
Professor Orde F. Kittrie, Professor of Law, Sandra Day 
O'Connor College of Law, Arizona State University.

                              DEBT RELIEF

    On March 4, 2010, the Subcommittee on International 
Monetary Policy and Trade held a legislative hearing entitled 
``Haiti Debt Relief''. The Members discussed the legislation, 
H.R. 4573 the ``Debt Relief for Earthquake Recovery in Haiti 
Act of 2010''. Following the devastating January 12, 2010 
earthquake that struck Haiti, the world rallied to mobilize 
resources to assist the nation and its population in the 
immediate aftermath of the destruction. Indeed, on February 4, 
2010, U.S. Treasury Secretary Tim Geithner stated that ``[t]he 
earthquake in Haiti was a catastrophic setback to the Haitian 
people who are now facing tremendous emergency humanitarian and 
reconstruction needs, and meeting Haiti's financing needs will 
require a massive multilateral effort,[. . .] we are voicing 
our support for what Haiti needs and deserves--comprehensive 
multilateral debt relief.'' In 2009, following Haiti's 
successful completion of the Heavily Indebted Poor Countries 
(HIPC) process, the Inter-American Development Bank, World Bank 
and the International Monetary Fund forgave $1.2 billion of 
Haiti's debts. However, this process only included debts 
accrued by the government of Haiti up to 2004. Since then, 
however, and before the January 12 earthquake, Haiti had 
accrued additional sovereign debts, including $447 million owed 
to the IDB, $165 million owed to the IMF, and $38.6 million to 
the World Bank. Since 2007, however, the IDB has worked with 
Haiti strictly on a grants basis. Similarly, the World Bank now 
works in Haiti primarily through the International Development 
Association (IDA), its grants facility aimed at the poorest, 
most vulnerable nations. The Subcommittee heard testimony from 
Ms. Nancy Lee, Deputy Assistant Secretary, U.S. Department of 
the Treasury, Ms. Melinda St. Louis, Deputy Director, Jubilee 
USA Network, Mr. Tom Hart, Senior Director, ONE, and the 
Honorable Timothy D. Adams, The Lindsey Group.

                   Subcommittee Oversight Activities


                                  G-20

    On May 13, 2009, the Subcommittee on International Monetary 
Policy and Trade held a legislative hearing entitled 
``Implications of the G-20 Leaders Summit for Low Income 
Countries and the Global Economy''. The hearing focused on the 
G-20 communique section entitled ``Strengthening our global 
financial institutions'', which highlighted the prominence of 
emerging markets in the discussions, and makes explicit the 
importance of incorporating them in earnest in any strategy for 
a global economic recovery. Indeed, the G-20 leaders stated 
that ``Emerging markets and developing countries, which have 
been the engine of recent world growth, are also now facing 
challenges which are adding to the current downturn in the 
global economy. It is imperative for global confidence and 
economic recovery that capital continues to flow to them. This 
will require a substantial strengthening of the international 
financial institutions, particularly the IMF. We have therefore 
agreed today to make available an additional $850 billion of 
resources through the global financial institutions to support 
growth in emerging market and developing countries by helping 
to finance counter-cyclical spending, bank recapitalizations, 
infrastructure, trade finance, balance of payments support, 
debt rollover, and social support.'' The Subcommittee heard 
testimony from Mr. Amar Bhattacharya, Director, 
Intergovernmental Group of Twenty Four, Ms. Nancy Birdsall, 
Founding President, Center for Global Development, Mr. Simon 
Johnson, Professor, Sloan School of Management, Massachusetts 
Institute of Technology, The Honorable Timothy D. Adams, 
Managing Director, The Lindsey Group.

                              MICROFINANCE

    On January 27, 2010, the Subcommittee on International 
Monetary Policy and Trade held a legislative hearing entitled 
``The State of Global Microfinance: How Public and Private 
Funds Can Effectively Promote Financial Inclusion for All''. 
The members discussed the microfinance industry, which is one 
of the great success stories of foreign aid and multilateral 
development banks' private sector initiatives, providing 
millions of poor people with basic financial services. Current 
estimates suggest that over 150 million poor people are being 
reached by microcredit. Microinsurance, which was virtually 
unheard of a decade ago, is now reaching millions with crop, 
health, life and other forms of insurance. Yet there are still 
gaps in the availability of microfinance funding. Only 14 
percent of investment capital is estimated to go to Africa and 
Asia combined. Much of the gap is due to lack of capacity to 
run microfinance programs, and weak capital market frameworks 
that limit the flows and effectiveness of capital. The lack of 
access is particularly severe in sub-Saharan Africa (SSA), 
where the World Bank estimates that structured microfinance is 
only reaching a small percentage of the economically active 
population. The Financial Access Initiative (FAI), a research 
consortium based at New York University, estimates that 2.5 
billion adults worldwide still do not have a savings or credit 
account with either a traditional or alternative financial 
institution. Data indicate that countries can improve levels of 
financial inclusion by creating effective policy and regulatory 
oversight. Further, the new focus on Social Performance 
Management (SPM) can help ensure that the social mission of 
microfinance is preserved. The Subcommittee heard testimony 
from Mr. Wagane Diouf, Managing Partner, Mecene Investment, Ms. 
Susy Cheston, Senior Vice President, Opportunity International, 
Ms. Elisabeth Rhyne, Managing Director, Center for Financial 
Inclusion at ACCION International, Mr. Robert Annibale, Global 
Director, Citi Microfinance, Mr. Damian von Stauffenberg, 
Founder and Chairman, MicroRate, Mr. Donald F. Terry, former 
head of the Inter-American Development Bank's Multilateral 
Investment Fund.

                                 HAITI

    On March 16, 2010, the Subcommittee on International 
Monetary Policy and Trade held a legislative hearing entitled 
``Rebuilding Haiti's Competitiveness and Private Sector''. The 
Members discussed the post-earthquake economic situation in 
Haiti. Following the devastating January 12, 2010 earthquake 
that struck Haiti, the world rallied to mobilize resources to 
assist the nation and its population. As the scope of the 
damage, and the commensurate reconstruction and economic 
recovery effort become clear, increased focus has shifted to 
the capital needs of the Government of Haiti, and the critical 
role to play of the development banks and international 
financial institutions, particularly by the Inter-American 
Development Bank (IDB), the World Bank, and the International 
Monetary Fund (IMF). The IDB estimated total cumulative 
reconstruction costs of at least $14 billion, about double the 
national GDP. According to State Department figures, some 
230,000 people lost their lives as a result of the earthquake, 
and up to 40 percent of civil servants are estimated to have 
perished, 28 of 29 government ministry buildings were 
destroyed, 70 percent of the population was unemployed, 80 
percent of the population was living on less than $2 per day, 
and 24 percent of Haitians were suffering from chronic 
malnutrition. The hearing focused on the work that the 
government of Haiti and the private sector had been doing prior 
to the earthquake to identify a long-term economic strategy 
focused on a select list of industry clusters in which the 
nation could compete domestically and internationally. 
Following the passage of the Haiti debt relief bill in the full 
House of Representatives on March 10, 2010, this hearing 
explored the role of the international institutions, in 
enabling a long-term economic recovery strategy under the 
leadership of the Haitian people themselves. The Subcommittee 
heard testimony from Mr. Michael C. Fairbanks, Founder, 
S.E.V.E.N Fund, Mr. Pierre-Marie Boisson, Chairman, Sogesol, 
Mr. Mark D'Sa, Senior Director, Gap International Sourcing--
Americas, Ms. Nancy Birdsall, Founding President, Center for 
Global Development, Mr. Francis J. Skrobiszewski, Associate, 
VisionAmericas LLC.
    On April 28, 2010, the Subcommittee on International 
Monetary Policy and Trade held a legislative hearing entitled 
``Promoting Small and Micro Enterprise in Haiti''. The Members 
discussed the state of small enterprise in Haiti, the poorest 
country in the western hemisphere. Indeed, more than half its 
population lives on less than one dollar a day and 78 percent 
on less than two. Haiti ranks 146th out of 177 countries on the 
United Nations Development Program (UNDP) Human Development 
Index. More than two-thirds of the labor force do not have 
formal jobs. Most Haitians depend on agriculture and micro-
entrepreneurial activities for survival and operate in the 
informal economy. Informal sector activity in Haiti is 
estimated to represent well over half of the country's economy. 
Formal and sustainable entrepreneurship initiatives, 
particularly in the poorer parts of Haiti, are almost entirely 
absent. Most small and micro-enterprises in Haiti confront 
difficulties that limit their competitiveness and lead to high 
failure rates. The predominant informality of the Haitian 
private sector also dramatically limits the government's tax 
base, regulatory oversight, and overall formal employment 
creation. The Subcommittee heard testimony from Mr. Simon 
Winter, Senior Vice President, Development, TechnoServe Inc, 
Mr. Mathias Pierre, GaMa Consulting S.A., Mr. Olivier Barrau, 
Managing Director, Alternative Insurance Company, Mr. David 
Roodman, Research Fellow, Center for Global Development, Mr. 
John Sanbrailo, Executive Director, Pan American Development 
Foundation.

                                 GREECE

    On May 20, 2010, the Subcommittee on International Monetary 
Policy and Trade and the Subcommittee on Domestic Monetary 
Policy and Technology held a joint legislative hearing entitled 
``The Role of the International Monetary Fund and Federal 
Reserve in Stabilizing Europe''. The Members discussed the 
recently announced plan to stabilize Europe, including the 
Federal Reserve plan to re-open temporary U.S. dollar liquidity 
swap facilities with foreign central banks, including the 
European Central Bank (ECB), Bank of England (BOE), Swiss 
National Bank (SNB), Bank of Japan (BOJ) and the Bank of Canada 
(BOC). Members also discussed the International Monetary Fund 
(IMF), which has taken on a significant role in the effort to 
foster financial stability in Europe. The IMF committed 
approximately $40 billion of IMF funds, as part of a larger 
multilateral financing package, to help the Greek government 
address its economic challenges. The funding will assist Greece 
in its efforts to restore confidence and fiscal sustainability, 
restore market competitiveness and safeguard financial sector 
stability. IMF Managing Director Dominique Strauss-Kahn stated 
that the IMF was ``ready to support our European members' 
individual adjustment and recovery programs through the design 
and monitoring of economic measures as well as through 
financial assistance, when requested.'' The subcommittees heard 
testimony from the Honorable Daniel K. Tarullo, Governor, Board 
of Governors of the Federal Reserve; Ms. Carmen Reinhart, 
Professor of Economics, University of Maryland, Mr. Edwin M. 
Truman, Senior Fellow, The Peterson Institute for International 
Economics, Mr. Peter Morici, Professor, Robert H. Smith School 
of Business, University of Maryland.

                           EXPORT-IMPORT BANK

    On September 29, 2010, the Subcommittee on Oversight and 
Investigation and the Subcommittee on International Monetary 
Policy and Trade held a joint hearing entitled ``Ex-Im Bank 
Oversight: The Role of Trade Finance in Doubling Exports over 
Five Years''. This hearing focused on the work of the Export-
Import Bank of the United States (``Ex-Im Bank''). The 
Subcommittees reviewed its activities to promote export growth, 
especially since the onset of the global financial crisis and 
recession, which made credit availability more challenging for 
businesses. The Subcommittees also examined what role Ex-Im 
Bank is and should be playing in the Obama Administration's 
National Export Initiative to double exports over five years. 
Another key issue was ensuring small businesses had adequate 
access to trade finance through Ex-Im. The Subcommittee Chairs 
and Ranking Members transmitted a letter to GAO the day of the 
hearing, asking that they review ``how Ex-Im's efforts compare 
to the export financing efforts of other export credit 
agencies,'' and report back to Congress. This initial hearing 
lays the groundwork for reauthorizing the Export-Import Bank 
when their authority expires in 2011. The Subcommittee heard 
testimony from the Honorable Fred P. Hochberg, Chairman and 
President, Export-Import Bank of the United States, Mr. Osvaldo 
Luis Gratacos, Acting Inspector General, Export-Import Bank of 
the United States, Mr. Loren Yager, Director, International 
Affairs and Trade, U.S. Government Accountability Office (GAO), 
Mr. John Hardy, President, Coalition for Employment Through 
Exports (CEE).

                       FINANCIAL CRISIS IN AFRICA

    On November 16, 2010, the Subcommittee on International 
Monetary Policy and Trade held a legislative hearing entitled 
``The Global Financial Crisis and Financial Reforms in 
Nigeria''. The Members discussed the impact of the global 
financial crisis in Africa, and financial reforms being 
implemented in Nigeria. Sub-Saharan Africa (Africa) suffered 
from the secondary effects of the global financial crisis as 
demand and prices for Africa's primary exports collapsed, along 
with falling remittances. Economic growth across much of the 
continent slowed dramatically. International response to the 
crisis included a dramatic increase in IMF resources, with some 
reweighting of SDR allocations, to the benefit of developing 
countries, including in Africa. Windfall profits from planned 
IMF gold sales garnered an estimated $6 billion in additional 
capital available for least developed countries, of which 
Africa is expected to be a primary beneficiary. The World Bank 
and African Development Bank dramatically increased lending and 
grant programs to Africa in response to the crisis. Nigeria, 
Africa's most populous country with an estimated 149 million 
people, is also its second largest economy after South Africa. 
The governor of the Central Bank of Nigeria (CBN) is leading 
efforts to modernize Nigeria's financial sector. The CBN 
conducted a series of audits or ``stress tests'' of Nigeria's 
largest banking institutions, which revealed that nine banks 
were near collapse. The Nigerian government provided a U.S. $4 
billion bailout to the banks and stringent new capital rules 
were introduced. Nigeria is establishing an Asset Management 
Company, or a ``bad bank,'' to buy toxic loans in exchange for 
government bonds in an effort to get banks lending again. Other 
bank reforms being implemented include differentiated banking 
licenses, to allow the creation of ``specialized banks'' to 
meet the financial needs of specific demographic groups. 
Nigeria's financial sector reforms also include reforming the 
capital markets. The subcommittee heard testimony from Mr. 
Lamido Sanusi, Governor, Central Bank of Nigeria, Ms. Arunma 
Oteh, Director General, Securities and Exchange Commission of 
Nigeria, Mr. Todd Moss, Vice President for Programs and Senior 
Fellow, Center for Global Development.

                      FOREIGN DIVESTMENT STRATEGY

    On November 30, 2010, the Subcommittee on International 
Monetary Policy and Trade held a legislative hearing entitled 
``Investments Tied to Genocide: Sudan Divestment and Beyond.'' 
The members discussed the impact of the Sudan Accountability 
and Divestment Act (SADA), which Congress passed in 2007. This 
law authorizes States and investment companies to divest from 
companies with certain business ties to Sudan and prohibits 
these companies from federal contracting. By drafting SADA in a 
manner that gives States and investment companies the right, 
but not the obligation to divest from, or prevent investment in 
select companies with business ties to the Sudan Government in 
Khartoum, the Act empowers investors to refrain from providing 
financial support to businesses that may be seen as supporting 
a civil war and genocide, while providing investment managers 
safe harbor from prosecution for doing so. Witnesses spoke to 
the documented impact of SADA, and lessons learned thus far 
from the experience of SADA's implementation. In particular, a 
GAO report indicates that American investors have indeed 
withdrawn funds from targeted companies and investments. 
Witnesses and members discussed the tradeoff between American 
engagement in conflict areas such as Sudan, including by 
American companies and investors who may promote social and 
civic engagement that help to alleviate the suffering of 
affected people, versus the withdrawal of American capital 
which may open the door for other investors and businesses who 
may not seek to promote any resolution to the conflict, or be 
supportive of local humanitarian initiatives. The subcommittee 
heard testimony from Mr. Thomas Melito, Director, International 
Affairs & Trade, U.S. Government Accountability Office, Mr. 
Eric Cohen, Chairperson, Investors Against Genocide, Mr. Adam 
M. Kanzer, Esq., Managing Director & General Counsel, Domini 
Social Investments LLC and Mr. Richard S. Williamson, Former 
Special Envoy to Sudan.

                                 AFRICA

    In an effort to further understand the impact of the global 
financial crisis on development efforts in Africa, and to 
better understand the role of international financial 
institutions and multilateral development banks, Rep. Meeks led 
a bipartisan Congressional Delegation (CODEL) to Tunisia, 
Rwanda and Zimbabwe, from August 27 to September 4, 2009.
    Tunisia is the temporary home of the African Development 
Bank (AfDB). In Tunisia, the delegation met with the senior 
leadership of the AfDB for extended discussions about the 
institution's work across the continent, and ongoing reforms 
within the institution. Members also met with senior Tunisian 
government officials, including the Prime Minister, 
Parliamentarians, as well as a roundtable discussion with 
private sector leaders, including representatives of American 
businesses in Tunisia.
    Rwanda has achieved exceptional economic growth since the 
genocide. Its rapid, trade-driven development may serve as an 
example for others in the region. In Rwanda, the delegation 
conducted site visits of development projects, including a 
small-holder farm benefiting from agricultural technical 
assistance, a road and bridge construction site, the Kigali 
University Teaching Hospital and a textile factory. Members met 
with senior Rwandan government officials, including the 
President, Minister of Finance, the Rwanda Development Board, 
and representatives of the private sector, including American 
companies.
    Dubbed ``the world's fastest shrinking economy,'' 
Zimbabwe's Gross Domestic Product (GDP) has declined over 50 
percent since 1998. World Bank and International Monetary Fund 
(IMF) lending have been suspended since 2000 due to nonpayment 
of arrears. Zimbabwe has stabilized under a fragile unity 
government, following particularly violent national elections 
in 2008. In Zimbabwe, members met with the President, Prime 
Minister, Minister of Finance, parliamentarians responsible for 
drafting the new constitution, and representatives of civil 
society.
    Rep. Meeks led a CODEL to Africa, jointly with Rep. Watt 
from February 14-21, 2010. The bipartisan CODEL traveled to 
Nigeria, Ethiopia, Zimbabwe and Botswana. The purpose of the 
trip was to evaluate the role of international financial 
institutions and multilateral development banks on the 
continent, the role of central banks in establishing stable 
monetary policy that leads to economic growth, as well as 
financial and regulatory reforms being implemented in Africa's 
major economies to achieve sustained economic recovery from the 
global financial crisis.
    Nigeria, is undergoing significant reform of its energy and 
financial sectors, yielding hopes that it will finally reach 
its potential as the economic engine of Africa. Nigeria is also 
a major shareholder of the African Development Bank (AfDB), in 
which the U.S. is also a major shareholder. In Nigeria, members 
met with the central bank governor and representatives of the 
leading financial companies.
    Ethiopia, a country of 85 million people that has undergone 
exceptional economic transformation in the past 15 years, is 
home to the African Union (AU). Since the first democratic 
elections in the country's history in 1995, Ethiopia has 
emerged as an economic engine in East Africa and a critical 
player in the East African region, despite continued conflicts 
in neighboring Somalia and Sudan and recurrent food security 
concerns. Members met with senior government officials, 
including the Prime Minister, Minister of Finance and Central 
Bank Governor, as well as senior leadership of the AU. Members 
also visited the Ethiopian Commodity Exchange.
    Following up on the September CODEL, members returned to 
Zimbabwe to evaluate progress of the unity government and 
economic reforms. Members met with senior government officials, 
including the President and Minister of Finance, and conducted 
a site visit to a low-income, semi-rural savings and loan and 
income support initiative supported by U.S. government funds.
    Botswana has been one of the strongest sustained performers 
in Africa in the area of social and economic development, 
consistently achieved superior economic growth relative to its 
peers. However, in addition to its continued struggle against 
the AIDS pandemic, this mineral-rich nation has been especially 
hard hit by the global financial crisis and collapsing demand 
and prices for its exports, including mainly diamonds. Members 
met with senior Botswana government officials, including the 
President, Minister of Finance, and Central Bank Governor, 
visited the world's largest diamond production operation, and 
representatives of the private sector.

                       Subcommittee Hearings Held


------------------------------------------------------------------------
      Serial No.                   Title                   Date(s)
------------------------------------------------------------------------
111-13................  The Iran Sanctions          March 12, 2009
                         Enabling Act of 2009
                         (International).
111-31................  Implications of the G-20    May 13, 2009
                         Leaders Summit for Low
                         Income Countries and the
                         Global Economy
                         (International).
111-100...............  The State of Global         January 27, 2010
                         Microfinance: How Public
                         and Private Funds Can
                         Effectively Promote
                         Financial Inclusion for
                         All (International).
111-105...............  Haiti Debt Relief           March 4, 2010
                         (International).
111-111...............  Rebuilding Haiti's          March 16, 2010
                         Competitiveness and
                         Private Sector
                         (International).
111-127...............  Promoting Small and Micro   April 28, 2010
                         Enterprise in Haiti
                         (International).
111-138...............  The Role of the             May 20, 2010
                         International Monetary
                         Fund and Federal Reserve
                         in Stabilizing Europe
                         (Domestic and
                         International).
111-162...............  Ex-Im Bank Oversight: The   September 29, 2010
                         Role of Trade Finance in
                         Doubling Exports over
                         Five Years (Oversight and
                         International).
111-165...............  The Global Financial        November 16, 2010
                         Crisis and Financial
                         Reforms in Nigeria
                         (International).
111-167...............  Investments Tied to         November 30, 2010
                         Genocide: Sudan
                         Divestment and Beyond
                         (International).
------------------------------------------------------------------------

              Subcommittee on Oversight and Investigations

           (Ratio: 10-7)

   DENNIS MOORE, Kansas, Chair 

JUDY BIGGERT, Illinois               STEPHEN LYNCH, Massachusetts
PATRICK McHENRY, North Carolina      RON KLEIN, Florida
RON PAUL, Texas                      JACKIE SPEIER, California
MICHELE BACHMANN, Minnesota          GWEN MOORE, Wisconsin
CHRISTOPHER LEE, New York            JOHN ADLER, New Jersey
ERIK PAULSEN, Minnesota              MARY JO KILROY, Ohio
SPENCER BACHUS, Alabama, ex officio  STEVE DRIEHAUS, Ohio
                                     ALAN GRAYSON, Florida
                                     BARNEY FRANK, Massachusetts, ex 
                                     officio

                   Subcommittee Oversight Activities


         OVERSIGHT OF THE TARP AND THE FINANCIAL STABILITY PLAN

    When Congress enacted the Emergency Economic Stabilization 
Act of 2008 (EESA, P.L. 110-343), it authorized the 
establishment of the Troubled Asset Relief Program (TARP) 
within the Treasury Department, and created the Office of 
Financial Stability within Treasury to implement TARP and other 
financial stability efforts. The Treasury Department has 
issued, as required by Sec. 105(a) of EESA, monthly reports to 
Congress on the status of promoting financial stability.
    The Act also established a regulatory framework for 
overseeing the implementation of the program. EESA created the 
Congressional Oversight Panel (COP) and the Special Inspector 
General for TARP (SIGTARP). It also established new audit and 
oversight duties for the Government Accountability Office 
(GAO). The multiple layers of oversight included in EESA were 
designed to ensure effective oversight, accountability, and 
transparency. COP, SIGTARP and GAO have produced thousands of 
pages of oversight reports, audits and investigations to ensure 
taxpayers are fully protected.
    Since the Emergency Economic Stabilization Act was signed 
into law on October 3, 2008, the Subcommittee on Oversight and 
Investigations held a number of hearings about TARP oversight, 
accountability and transparency. The goal of these hearings was 
to look at key issues exposed by the financial crisis and the 
next steps to continue improving financial stability in an 
economic recovery.
    The Subcommittee held its first hearing entitled, ``A 
Review of TARP Oversight, Accountability and Transparency for 
U.S. Taxpayers'' on February 24, 2009. The Subcommittee heard 
from Neil Barofsky, the Special Inspector General for TARP 
(SIGTARP), Professor Elizabeth Warren who chaired the 
Congressional Oversight Panel for TARP, and Acting Comptroller 
General Gene Dodaro of the Government Accountability Office. 
Mr. Barofsky urged Congress to give SIGTARP more authority and 
staff to better track all the TARP funds. After the hearing, 
Chairman Moore filed H.R. 1341 with Ranking Member Biggert to 
do that, and the House approved the Senate version of the bill 
on March 25, 2009, with a unanimous 423-0 vote. The measure was 
enacted into law on April 24, 2009 (P.L. 111-15). The 
legislation has strengthened the SIGTARP's hiring authority and 
other enforcement powers to provide vigorous oversight of the 
$700 billion TARP program.
    In its work overseeing the implementation of TARP, the 
Subcommittee has focused several of its hearings on the warrant 
repurchasing process. When TARP recipient repays its original 
Capital Purchase Program (CPP) investment, they have the right 
to repurchase its warrants at an agreed upon fair market value. 
This is done through direct negotiations with Treasury, which 
has established a multiple step process to value the warrants 
before they agree to sell them. If an institution decides not 
to repurchase its warrants, Treasury has indicated a preference 
to sell the warrants to a third party through a public auction.
    On June 2, 2009, Chairman Moore wrote Treasury Secretary 
Geithner regarding concerns that: ``financial institutions that 
have received TARP funds are lobbying to buy back warrants the 
U.S. government received for providing taxpayer assistance at a 
reduced or minimal value. I strongly urge you to utilize your 
authority to maximize the best deal for taxpayers.'' On July 
22, 2009, the Subcommittee held its second TARP oversight 
hearing entitled ``TARP Oversight: Warrant Repurchases and 
Protecting Taxpayers.'' TARP's new administrator, Herb Allison, 
testified on the status of the TARP, as well as issues 
surrounding the repurchasing of TARP warrants by banks. 
Professor Warren discussed COP's July report focused on 
maximizing taxpayer returns in the warrant repurchasing 
process. The day of the hearing, Goldman Sachs announced an 
agreement with Treasury to repurchase their TARP warrants for a 
higher-than-expected $1.1 billion, marking a new trend of 
higher returns for taxpayers.
    The Subcommittee's third TARP oversight hearing, entitled 
``Utilizing Technology to Improve TARP and Financial 
Oversight'', was held on September 17, 2009. The hearing 
focused on the role of technology in efforts to provide 
transparency and accountability for programs, such as TARP, and 
using technology to ensure federal agencies provide strong, 
coordinated oversight of financial services activity. Rep. 
Carolyn Maloney's TARP database and monitoring bill, H.R. 1242, 
was noted as a good idea to improve TARP transparency. The 
House approved H.R. 1242 on December 2, 2009. A week later, the 
Treasury Department announced an open government plan to ``to 
increase transparency in government and maintain accountability 
of taxpayer dollars''. This included a new commitment by the 
Office of Financial Stability to release a TARP Transaction 
Report for every new TARP transaction including investments 
made and funds repaid. In an effort to make the reports user-
friendly, they would be made available in XML format for easy 
sorting of data.
    The fourth TARP oversight hearing, entitled ``TARP 
Oversight: An Update on Warrant Repurchases and Benefits to 
Taxpayers'' was held on May 11, 2010. The Subcommittee received 
a SIGTARP audit focused on the TARP warrants program. Witnesses 
included Treasury and other experts reviewing the benefits 
taxpayers reaped from the TARP warrants program. One academic 
witness testified that ``oversight works'' with respect to 
TARP, and both SIGTARP and COP agreed that the TARP warrants 
program generally succeeded.
    As a result of the Subcommittee's oversight efforts with 
respect to the TARP warrant repurchasing program, this program 
has generated over $7 billion of extra returns for taxpayers 
with even more expected, and that's in addition to over $200 
billion of repayments of the initial TARP investment as of 
November 2010.

           EMERGING LESSONS FROM THE 2007-09 FINANCIAL CRISIS

    The Subcommittee held a three-part series where it focused 
on lessons learned from the recent financial crisis. The series 
of hearings was inspired by the cover story from the April 6, 
2009, issue of Time magazine, entitled ``The End of Excess: Why 
this crisis is good for America,'' written by Kurt Andersen. 
The first hearing in this series was held on May 6, 2010, and 
was entitled ``Reversing Our Addiction to Debt and Leverage.'' 
This hearing centered on the role debt and leverage has played 
in the past decade, both in the U.S. economy and in the 
financial sector, leading up to the financial crisis. Witnesses 
included Tom Hoenig, Kansas City Federal Reserve Bank 
President, and David Walker, former Comptroller General of the 
United States.
    The second and third hearings in the series were field 
hearings held in the Midwest. The second hearing was held in 
Overland Park, Kansas, on August 23, 2010, on the topic of 
``Too Big Has Failed: Learning from Midwest Banks and Credit 
Unions.'' The Subcommittee examined the recent performance and 
success of many community banks, regional banks and credit 
unions in the Midwest. The Subcommittee explored key trends and 
lessons that can be learned from responsible financial 
intermediaries that can be applied to promote a stronger, more 
stable financial system in the United States. At the hearing, 
the recently enacted and landmark Dodd-Frank Wall Street Reform 
and Consumer Protection Act (``Dodd-Frank Act'') was discussed, 
focusing on how the new law shielded community banks, credit 
unions, and small businesses from unnecessary regulatory 
burdens while ending the notion that any large financial firm 
is ``too big to fail''.
    The third and final hearing in this series was held in 
Lawrence, Kansas, on August 24, 2010, to focus on the question: 
``Empowering Consumers: Can Financial Literacy Education 
Prevent Another Financial Crisis?'' The Subcommittee examined 
what kinds of programs have worked well in promoting greater 
financial literacy. The hearing focused on the recent financial 
crisis, and what lessons should be learned in terms of what 
role financial literacy should play in a safer, more stable 
financial system, including examining how best to coordinate 
efforts, and utilizing limited resources most efficiently to 
increase access to quality financial education for all people. 
Also discussed were several key provisions included in the 
Dodd-Frank Act to promote financial literacy, including the 
creation of an Office of Financial Education within the newly 
created Bureau of Consumer Financial Protection.

              THE ROLE OF FINANCE IN AN ECONOMIC RECOVERY

    Another key topic the Subcommittee focused on was the role 
of various components of finance and how it can promote a 
strong economic recovery across the board--for homeowners, 
workers, women, minorities and small businesses. A number of 
these were field hearings so that the Subcommittee could hear 
directly from various stakeholders how the Great Recession was 
impacting them and their communities, and discuss what ways 
finance can promote a strong economic recovery.
    The Subcommittee went to West Palm Beach, Florida, and held 
a hearing on July 2, 2009, on the issue of ``The Homeowners' 
Insurance Crisis: Solutions for Homeowners, Communities, and 
Taxpayers''. Rep. Ron Klein had reintroduced H.R. 2555 to 
address the concern that demand for homeowners' insurance in 
Atlantic and Gulf Coast states has outpaced supply, making 
affordable homeowners insurance difficult to find. At the 
hearing, the Subcommittee heard from local residents, 
businesses and government officials on how proposed solutions 
can help homeowners. Following the hearing, the Committee 
reported H.R. 2555 out favorably on July 13, 2010.
    On November 30, 2009, the Subcommittee travelled to 
Southfield, Michigan, to a hold a hearing entitled ``Improving 
Responsible Lending to Small Businesses.'' Rep. Gary Peters 
invited the subcommittee to visit this suburb of Detroit to 
hear about the problems the local business community has had in 
accessing finance and credit, the pressure banks and credit 
unions are under from bank examiners to make fewer loans, and 
the challenges facing bank regulators as bank failures rise. As 
a result of the hearing, Rep. Peters and Chairman Moore 
introduced H.R. 5302, the State Small Business Credit 
Initiative Act. A version of the measure was included in the 
Small Business Jobs and Credit Act that was enacted into law on 
September 27, 2010 (P.L. 111-240).
    The Subcommittee held a joint hearing with the Subcommittee 
on Housing and Community Opportunity entitled: ``Minorities and 
Women in Financial Regulatory Reform: The Need for Increasing 
Participation and Opportunities for Qualified Persons and 
Businesses,'' on May 12, 2010. The Subcommittees received an 
update from GAO on the level of professional opportunities for 
women and minorities in the financial industry and financial 
regulatory agencies. The Subcommittee Chairs--Chairman Moore 
and Chairwoman Waters--request GAO research the matter further 
and report back to Congress with their updated findings.
    On May 17, 2010, the Subcommittee held a field hearing in 
Chicago, Illinois on the issue of ``Commercial Real Estate: A 
Chicago Perspective on Current Market Challenges and Possible 
Responses.'' The Subcommittee heard from a wide variety of 
local industry representatives, experts and regulators on the 
state of commercial real estate, and its impact on an economy 
recovery. The aforementioned Small Business Jobs and Credit Act 
included important provisions to aid commercial real estate 
lending.
    Another important hearing the Subcommittee held was 
entitled ``Ex-Im Bank Oversight: The Role of Trade Finance in 
Doubling Exports over Five Years,'' held on September 29, 2010. 
This hearing was held jointly with the Subcommittee on 
International Monetary Policy & Trade and focused on the work 
of the Export-Import Bank of the United States (``Ex-Im 
Bank''). The Subcommittees reviewed its activities to promote 
export growth, especially since the onset of the global 
financial crisis and recession, which made credit availability 
more challenging for businesses. The Subcommittees also 
examined what role Ex-Im Bank is and should be playing in the 
Obama Administration's National Export Initiative to double 
exports over five years. Another key issue was ensuring small 
businesses had adequate access to trade finance through Ex-Im. 
The Subcommittee Chairs and Ranking Members transmitted a 
letter to GAO the day of the hearing, asking that they review 
``how Ex-Im's efforts compare to the export financing efforts 
of other export credit agencies,'' and report back to Congress. 
This initial hearing lays the groundwork for reauthorizing the 
Export-Import Bank when their authority expires in 2011.

       MINIMIZING WASTE, FRAUD AND ABUSE IN FINANCIAL REGULATION

    The Subcommittee reviewed a variety of ways in how 
financial regulation could be improved to protect taxpayers and 
minimize any waste, fraud and abuse in federal programs. A new 
addition to the Rules of the House sponsored by Rep. John 
Tanner (H. Res. 40) requires House committees to hold at least 
one hearing every four months ``on the topic of waste, fraud, 
abuse, or mismanagement in Government programs. . . .'' The 
Subcommittee on Oversight and Investigations, along with the 
Full Committee and other Financial Services subcommittees have 
far exceeded this requirement by holding over 65 oversight 
hearings in the 111th Congress that qualify under the Tanner 
Rule. These hearings have resulted in legislation to provide 
better oversight and eliminate waste, fraud and abuse with 
respect to financial agency programs.
    For example, on May 5, 2009, the Subcommittee held a 
hearing on ``The Role of Inspectors General: Minimizing and 
Mitigating Waste, Fraud and Abuse.'' This hearing focused on 
the work of the Inspectors General (IGs) at Treasury, Federal 
Reserve and FDIC, in particular the concern the IGs have that 
mandated Material Loss Reviews (MLR) are overloading their 
resources, preventing them to investigate other high priority 
concerns to expose waste, fraud and abuse. Rep. Steve Driehaus, 
Chairman Moore, Rep. Christopher Lee and Ranking Member Biggert 
introduced H.R. 3330, the Improved Oversight by Financial 
Inspectors General Act, to reform the MLR system and the House 
unanimously approved it by voice vote on July 29, 2009. A 
modified version of the bill was included in the Dodd-Frank 
Wall Street Reform and Consumer Protection Act (987-988, P.L. 
111-203).
    Additionally, the Dodd-Frank Act includes provisions 
originally offered by Subcommittee Chairman Moore and Rep. 
Stephen Lynch as a financial reform amendment which creates a 
new Council of Inspectors General on Financial Oversight, 
connecting existing financial agency Inspectors General and 
requiring financial agencies to respond to their oversight 
recommendations. The Moore-Lynch amendment also requires a 
mandatory Inspector General review be performed on future large 
financial firms that fail, as well as new GAO reporting 
requirements, which will better inform the Congress and 
financial agencies as the new regulatory system is implemented.
    Another key area the Subcommittee focused on was mortgage 
fraud and improving oversight of FHA and other HUD programs. On 
June 18, 2009, the Subcommittee held a hearing entitled: 
``Strengthening Oversight and Preventing Fraud in FHA and other 
HUD Programs.'' HUD's Inspector General, Kenneth Donohue, and 
other housing experts discussed combating fraud in the housing 
and mortgage market. The hearing focused on FHA, the importance 
of independent appraisals and the need for adequate resources 
at HUD to mitigate waste, fraud and abuse. Chairman Moore 
joined Judiciary Committee Chairman John Conyers as a sponsor 
of the Fight Fraud Act, which the House approved on May 6, 
2009, by a vote of 367-59, giving the HUD IG more resources to 
combat financial and mortgage fraud. The measure was enacted 
into law two weeks later (P.L. 111-21).
    The Subcommittee also held a hearing on July 13, 2009, on 
the issue of ``Preventing Unfair Trading by Government 
Officials.'' The Subcommittee examined cases of unfair trading 
by government officials, including the Securities and Exchange 
Commission's Inspector General's findings of alleged 
inappropriate trading by SEC enforcement officials. The 
Subcommittee also reviewed H.R. 682, the Stop Trading on 
Congressional Knowledge Act, sponsored by Reps. Brian Baird and 
Louise Slaughter, which would prohibit insider trading by 
Members of Congress or their staff.

           COMBATING TERRORISM FINANCING AND MONEY LAUNDERING

    Another key oversight priority for the Subcommittee has 
been focused on strengthening the federal government's efforts 
in combating terrorism financing and money laundering. On April 
28, 2010, the Subcommittee held a hearing on ``Reviewing FinCEN 
Oversight Reports.'' The Subcommittee received an update from 
the Financial Crimes Enforcement Network's (FinCEN) Director 
and examined oversight reports issued by GAO and the Treasury 
Department's Inspector General that looked at FinCEN's efforts 
with respect to Suspicious Activity Reports, Bank Secrecy Act 
compliance, and anti-money laundering. The Treasury Department 
established FinCEN in 1990 to provide a government-wide 
multisource financial intelligence and analysis network. 
FinCEN's operation was later expanded to include the 
responsibilities for administering the Bank Secrecy Act.
    The Subcommittee held its second hearing on these issues on 
May 26, 2010, focused on ``Anti-Money Laundering: Blocking 
Terrorist Financing and Its Impact on Lawful Charities.'' The 
Subcommittee reviewed ongoing efforts by the Treasury 
Department to stop the financing of terrorism. The hearing 
focused on various controls, disclosure and decision-making 
processes to ensure innocent individuals and charities receive 
due process while efforts to block terrorist financing remain 
robust.
    Another Subcommittee hearing was held on September 28, 
2010, entitled: ``A Review of Current and Evolving Trends in 
Terrorism Financing.'' This hearing focused on a broader 
perspective offered by non-governmental witnesses on the 
current and evolving trends in terrorism financing today. The 
Subcommittee focused on how terrorist organizations continue to 
finance their activities and how these organizations are 
altering their financing techniques to avoid current methods 
exercised by the U.S. government to stem the flow of money to 
terrorists. The Subcommittee reviewed potential vulnerabilities 
in the financial institutions systems of the United States and 
the world that could be exploited by terrorist organizations.

                       Subcommittee Hearings Held


------------------------------------------------------------------------
      Serial No.                   Title                   Date(s)
------------------------------------------------------------------------
111-5.................  A Review of TARP            February 24, 2009
                         Oversight,
                         Accountability, and
                         Transparency for U.S.
                         Taxpayers (Oversight).
111-27................  The Role of Inspectors      May 5, 2009
                         General: Minimizing and
                         Mitigating Waste, Fraud,
                         and Abuse (Oversight).
111-46................  Strengthening Oversight     June 18, 2009
                         and Preventing Fraud in
                         FHA and other HUD
                         Programs (Oversight).
111-52................  The Homeowners' Insurance   July 2, 2009
                         Crisis: Solutions for
                         Homeowners, Communities,
                         and Taxpayers (Oversight).
111-56................  Preventing Unfair Trading   July 13, 2009
                         by Government Officials
                         (Oversight).
111-67................  TARO Oversight: Warrant     July 22, 2009
                         Repurchases and
                         Protecting Taxpayers
                         (Oversight).
111-75................  Utilizing Technology to     September 17, 2009
                         Improve TARP and
                         Financial Oversight
                         (Oversight).
111-90................  Improving Responsible       November 30, 2009
                         Lending to Small
                         Businesses (Oversight).
111-129...............  Reviewing FinCEN Oversight  April 28, 2010
                         Reports (Oversight).
111-131...............  The End of Excess (Part     May 6, 2010
                         One): Reversing Our
                         Addiction to Debt and
                         Leverage (Oversight).
111-132...............  TARP Oversight: An Update   May 11, 2010
                         on Warrant Repurchases
                         and Benefits to Taxpayers
                         (Oversight).
111-135...............  Minorities and Women in     May 12, 2010
                         Financial Regulatory
                         Reform: The Need for
                         Increasing Participation
                         and Opportunities for
                         Qualified Persons and
                         Businesses (Oversight and
                         Housing).
111-136...............  Commercial Real Estate: A   May 17, 2010
                         Chicago Perspective on
                         Current Market Challenges
                         and Possible Responses
                         (Oversight).
111-141...............  Anti-Money Laundering:      May 26, 2010
                         Blocking Terrorist
                         Financing and Its Impact
                         on Lawful Charities
                         (Oversight).
111-143...............  After the Financial         July 13, 2010
                         Crisis: Ongoing
                         Challenges Facing Delphi
                         Retirees (Oversight).
111-151...............  Too Big Has Failed:         August 23, 2010
                         Learning from Midwest
                         Banks and Credit Unions
                         (Oversight).
111-152...............  Empowering Consumers: Can   August 24, 2010
                         Financial Literacy
                         Education Prevent Another
                         Financial Crisis?
                         (Oversight).
111-161...............  A Review of Current and     September 28, 2010
                         Evolving Trends in
                         Terrorism Financing
                         (Oversight).
111-162...............  Ex-Im Bank Oversight: The   September 29, 2010
                         Role of Trade Finance in
                         Doubling Exports over
                         Five Years (Oversight and
                         International).
------------------------------------------------------------------------

                 OVERSIGHT PLAN FOR THE 111TH CONGRESS

    Clause 2(d) of rule X of the Rules of the House of 
Representatives for the 111th 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 Oversight and 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 Eleventh 
Congress, which the Committee considered and adopted on 
February 12, 2009.
    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 ELEVENTH CONGRESS
                              ----------                              


  February 12, 2009.--Approved by the Committee on Financial Services

                              ----------                              

    Mr. FRANK, from the Committee on Financial Services, 
submitted to the Committee on Oversight and Government Reform 
and the Committee on House Administration the following

                                 REPORT

    Clause 2(d)(1) of rule X of the Rules of the House of 
Representatives for the 111th Congress requires each standing 
committee, not later than February 15 of the first session to 
adopt an oversight plan for the 111th Congress. The oversight 
plan must be submitted simultaneously to the Committee on 
Oversight and Government Reform and the Committee on House 
Administration.
    The following agenda constitutes the oversight plan of the 
Committee on Financial Services for the 111th 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. Any areas mentioned in the oversight 
plan may be considered by the Financial Services Committee, the 
five subcommittees of jurisdiction or the Subcommittee on 
Oversight and Investigations. The Committee will consult, as 
appropriate, with other committees of the House that may share 
jurisdiction on any of the subjects listed below. The Committee 
will also comply with House Resolution 40, adopted earlier this 
Congress, by holding periodic hearings on the topic of waste, 
fraud, abuse, or mismanagement in Government programs 
authorized by this Committee.

                         Financial Institutions

    Troubled Asset Relief Program (TARP) and other Initiatives 
to Stabilize the Financial System. The Committee will continue 
to examine closely the operation of the TARP program authorized 
by Emergency Economic Stabilization Act (EESA). This oversight 
will include working with the Government Accountability Office, 
the Congressional Oversight Panel, and the Special Inspector 
General for TARP in order to ensure that the program adequately 
protects taxpayer interests; that the program properly 
addresses the mortgage foreclosure crisis; and that the 
program's operations are properly transparent and accountable. 
The Committee will also ensure that the Treasury Department 
reports to the Committee on its progress in establishing a 
program to insure troubled assets as set forth in section 102 
of Public Law 110-343; and that Treasury regularly reports to 
the Committee on matters of lending, liquidity, and safety and 
soundness related to those financial institutions receiving 
TARP funds or guarantees. The Committee will look into trends 
related to financial fraud, including mortgage and securities 
fraud, as well as unsound lending practices of financial 
institutions and financial institutions affiliated with those 
that received TARP funds or guarantees, which contributed to 
the crises and lack of confidence in the U.S. financial 
industry and led to the creation of TARP.
    The Committee will also examine carefully whether the 
recipients of TARP funds are spending the money appropriately, 
with special attention paid to any instances of waste, fraud, 
and abuse. The Committee will concentrate on issues related to 
the distortion of TARP fund distribution caused by political 
pressure and interference rather than the judgment of the 
regulators. The Committee will carefully analyze the viability 
of any new TARP initiatives, such as the newly announced 
measures by the Treasury to create ``bad banks'' funded in part 
with taxpayer dollars, and assess whether TARP funding is 
deployed by recipient institutions in a manner consistent with 
Congressional priorities and with restoring liquidity and 
promoting the stability of the financial system. The Committee 
will also continue to examine non-TARP efforts by the Treasury, 
the Federal Reserve, the Federal Deposit Insurance Corporation 
(FDIC), and other agencies to stabilize the financial system 
and promote economic recovery.
    The Committee also will examine the application by Federal 
regulators of the ``too big to fail'' doctrine and the 
designation of ``systemically significant'' institutions to 
determine if these are effective, fair or rational public 
policy distinctions. The Committee will ask if this doctrine 
means that other institutions are ``too small to save'' and if 
recent initiatives by the Treasury Department and Federal 
Reserve have prejudiced local and community banks and credit 
unions at the expense of institutions the regulators believe 
are ``too big to fail.'' During this review, the Committee will 
study the ways that financial institutions have expanded and 
the incentives that drove them to grow. The Committee will try 
to determine if it is possible to have a government regulator 
unwind a systemically important institution in an orderly 
fashion to prevent systemic disruptions.
    Financial Supervision. The Committee will continue to 
examine Federal regulators 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. The trend toward 
consolidation in the banking industry and the growing number of 
large credit unions serving broad fields of membership requires 
that Federal regulators maintain the expertise and risk 
evaluation systems necessary to oversee the activities of the 
increasingly complex institutions under their supervision. The 
Committee will also seek updates on consumer compliance 
supervision of financial institutions and review the regulatory 
enforcement of the Community Reinvestment Act, consumer 
protections, and agency customer service.
    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, but not limited to, disparate interpretations and 
applications of individual States' laws related to national 
banks, Federal thrifts and their affiliates or subsidiaries, 
marketing tactics, rising fees, and penalties on credit card, 
payday, mortgages and other consumer loans, unfair or deceptive 
acts or practices such as foreclosure rescue scams, the use of 
credit reports to change the rates and terms of preexisting 
accounts, to ensure that the financial services industry 
fulfills its responsibility to treat its customers fairly and 
fully disclose the terms on which financial products and 
services are offered to the public. The Committee will also 
consider industry practices with respect to overdraft 
protection programs, deposit hold periods, and other fees.
    Data Security and Identity Theft. Building on the 
Committee's long-standing role in developing laws governing 
companies handling of sensitive personal financial information 
about consumers, including the Gramm-Leach-Bliley Act and the 
Fair and Accurate Credit Transactions Act (FACT Act), the 
Committee will continue to seek legislation that better 
protects the security and confidentiality of such information 
from any loss, unauthorized access, or misuse. The Committee 
will also monitor major data security breaches at government 
agencies to ensure that personal financial information is 
properly safeguarded and that the affected individuals receive 
prompt notification where that is appropriate.
    Implementation of FACT Act. The Committee will monitor 
government and private sector implementation of the Fair and 
Accurate Credit Transactions (FACT) Act (Public Law 108-159), 
the 2003 legislation that renewed certain provisions of the 
Fair Credit Reporting Act (FCRA) and gave consumers new rights 
and protections against identity theft, including the ability 
to obtain free credit reports annually. The Committee may 
examine whether, after the FACT Act is implemented, there 
remain barriers for consumers in maintaining accurate and 
complete consumer files. The Committee will seek to determine 
if additional efforts need to be undertaken to promote 
voluntary reporting of data not currently being supplied to 
credit reporting agencies, to facilitate greater access to 
affordable financial products and services. As part of this 
review, the Committee will continue to review the use of credit 
scores by lenders in assessing consumers' creditworthiness to 
determine whether credit is extended to them and on what terms, 
including the growing practice of using nontraditional data to 
measure creditworthiness.
    Mortgage Lending. The Committee will study the complex 
problem of, and potential solutions to, abusive and deceptive 
lending in the mortgage industry. The Committee recognizes that 
extending credit to under-served segments of the population has 
positive aspects and the Committee's effort will be to decrease 
the amount of abuses without undermining such access to credit. 
In targeting abusive practices, the Committee will be cognizant 
of the need to avoid policy prescriptions that result in 
shutting off credit to underserved borrowers. Although the 
Committee recognizes the limitations inherent in data analysis, 
Home Mortgage Disclosure Act (HMDA) data continues to show 
substantial disparities in the incidence of higher-priced 
lending across racial and ethnic lines, with Black and Hispanic 
borrowers more likely to obtain loans with prices above the 
pricing thresholds than non-Hispanic white borrowers. The 
Committee will continue to examine HMDA data to help assess 
patterns of home mortgage lending to minority populations. The 
Committee will extend its inquiry to examine all relevant 
factors.
    Deposit Insurance Reform. The Committee will monitor the 
implementation of the Deposit Insurance Reform Act of 2005 and 
the Federal Deposit Insurance Reform Conforming Amendments Act 
of 2005, to ensure that deposit insurance continues to serve 
its historic function as a source of stability in the banking 
system and a valued safety net for depositors. During the 
consideration of the Emergency Economic Stabilization Act, 
deposit insurance coverage for banks and credit unions was 
expanded from $100,000 per account to $250,000. This was 
particularly important for small businesses, which rely on 
their bank deposits to meet payroll and other critical needs. 
The increase will ensure that they have access to their working 
capital at all times, and discourage them from moving funds due 
to concerns about a particular institution. According to the 
Federal Reserve, for the smallest businesses (less than 10 
employees, which are 80 percent of small businesses, raising 
the limit will have a major impact: 75 percent fewer firms will 
have uninsured deposits and the amount of their deposits 
remaining uninsured will fall by two-thirds. The insurance 
increase also gives small banks greater parity with the 
temporary money market fund insurance recently implemented by 
the Treasury Department. This will help keep deposits in banks 
and promote their stability. The Committee will monitor the 
implementation and effects of this expansion.
    Credit Unions. The Committee will review issues relating to 
the conversion policies and procedures, safety and soundness 
and regulatory treatment of the credit union industry. In the 
110th, the Committee supported the lifting of the statutory 
borrowing cap on National Credit Union Administration's Central 
Liquidity Fund and will continue to monitor its ability to meet 
the liquidity needs of credit unions.
    Regulatory Burden Reduction. The Committee will continue to 
review the current regulatory burden on banks, thrifts, and 
credit unions with the goal of reducing unnecessary, 
duplicative, or overly burdensome regulations, consistent with 
consumer protection and safe and sound banking practices. The 
Committee's starting point will be H.R. 6312, the Credit Union, 
Bank and Thrift Regulatory Relief Act, which passed the House 
by voice vote in the 110th Congress.
    Remittances. The Committee will continue to review the 
marketing and disclosure practices of financial institutions 
and money transmitters who offer international remittance 
services to consumers seeking to send funds to relatives in 
other countries.
    Payment System Innovations. The Committee will review 
government and private sector efforts to achieve greater 
innovations and efficiencies in the payments system. The 
Committee will continue to assess the appropriateness of the 
current maximum hold periods and dollar amount limits provided 
under the Expedited Funds Availability Act. The Committee will 
also review improvements to the payments system, including ACH 
debit entries, wire transfers, and international remittances.
    Internet Gambling. The Committee will continue to examine 
the implications of the Unlawful Internet Gambling Enforcement 
Act (UIGEA) and whether the final regulations drafted by the 
Treasury Department and Federal Reserve, in consultation with 
the Justice Department, impose unreasonable compliance burdens 
on financial institutions. Legislation which would have 
prevented the implementation of these regulations was ordered 
reported by the Committee in the 110th Congress after such a 
measure had once been defeated.
    Access to Financial Services. The Committee will continue 
to explore ways to expand access to mainstream financial 
services by traditionally underserved segments of the U.S. 
population, particularly those without any prior banking 
history (commonly referred to as ``the unbanked''). One area of 
review will be an assessment of the Treasury Department's First 
Accounts Program--a grant program intended to provide financial 
services to low- and moderate-income Americans without bank 
accounts.
    Credit Card Regulation. The Committee will continue its 
review of credit card industry practices, particularly relating 
to marketing, fees and disclosures. The Committee will monitor 
the implementation of recent Federal Reserve regulations: (i) 
defining unfair and deceptive credit card industry practices 
and (ii) making the format and content of credit card 
disclosures required by Truth in Lending more effective. These 
regulations become effective on July 1, 2010.
    Community Development Financial Institution Fund. The 
Committee will continue to oversee the operations of the 
Community Development Financial Institutions Fund (Fund) which 
was created in 1994 to promote economic revitalization and 
community development. The Committee will examine the Fund's 
contributions to community revitalization and measure its 
impact on efforts in rural, urban, suburban, and Native 
American communities. In addition, the Committee will assess 
the Fund's progress in implementing reforms to make the grant 
making process more fair and transparent. The Committee will 
also monitor the Fund's administration of the New Markets Tax 
Credit program (NMTC), including reviewing the efforts being 
taken by the Fund to assist minority-owned community 
development entities to effectively compete for allocations 
under the NMTC program.
    Community Reinvestment Act of 1977. The Committee will 
continue to review developments and issues related to the 
Community Reinvestment Act of 1977 (CRA). Particular focus will 
be placed on ensuring that regulators are accurately 
interpreting the law and consistently applying regulations to 
all institutions. In addition, the Committee will examine how 
well institutions are complying with the CRA and will seek to 
ensure that CRA loans, services, and investments are 
efficiently directed to low- and moderate-income communities. 
The Committee will also explore recommendations for updating 
CRA to make it more effective in light of changes in the 
financial services sector.
    Credit Counseling. The Committee will continue to review 
the credit counseling industry which provides financial 
education and debt management services to consumer seeking to 
address excessive levels of personal indebtedness. A particular 
focus will include examining complaints regarding abusive and 
deceptive practices by some for-profit industry groups.
    Financial Literacy. The Committee will continue its efforts 
to promote greater financial literacy and awareness among the 
public. As part of these efforts, the Committee will monitor 
the operations, and evaluate the efficacy, of the Financial 
Literacy and Education Commission. The Commission was 
established to coordinate efforts of the Federal government and 
encourage government and private sector initiatives to promote 
financial literacy.
    Payday Lending. The Committee will review practices by the 
payday lending industry, with a particular emphasis on 
marketing, consumer disclosures, interest rates, and fees 
charged.
    Discrimination in Lending. The Committee will examine the 
effectiveness of Federal fair lending oversight and enforcement 
efforts, including a review of the policies and procedures used 
by primary regulators to assess lenders' compliance with fair 
lending laws and a review of the steps taken by the enforcement 
agencies to investigate potential violations of fair lending 
laws. As part of this review, the Committee will assess the 
adequacy of the current reporting requirements under the Home 
Mortgage Disclosure Act (HMDA) to evaluate the patterns of home 
mortgage lending to underserved populations. In April 2008, 
several members of the Committee asked the Government 
Accountability Office (GAO) to conduct a comprehensive 
assessment of the current state of Federal enforcement of the 
Equal Credit Opportunity Act, the Fair Housing Act, and other 
related laws and regulations. The Committee will review this 
report when it is completed. The Committee will also continue 
to review the adequacy of the data sources currently used by 
regulators and researchers to detect possible discrimination in 
non-mortgage lending.
    Diversity in Financial Services. The Committee will 
continue to explore financial services industry's efforts to 
attract and retain a diverse workforce, particularly at the 
senior management level. The Committee will also review the 
policies, programs, and initiatives used by Federal financial 
services agencies to promote, obtain, and report on supplier 
diversity, particularly with the use of asset managers, 
investment bankers, and other providers of professional 
services under any programs to assist troubled financial 
institutions. The Committee will continue to monitor Federal 
regulators' efforts to promote and preserve minority-owned 
financial institutions, including the steps taken to implement 
the goals outlined in a report issued by the Government 
Accountability Office (GAO) entitled, ``MINORITY BANKS: 
Regulators Need to Better Assess Effectiveness of Support 
Efforts,'' (GAO-07-6) in October 2006.
    Money Laundering and the Financing of Terrorism. The 
Committee will review enforcement of anti-money laundering laws 
and regulations. The Committee's work in this area will include 
an examination of (1) the costs and benefits of ongoing 
regulatory and filing requirements, and (2) opportunities to 
decrease the burden of complying with these and similar 
statutes without impairing the operations of law enforcement. 
The Committee will also monitor the Office of Terrorism and 
Financial Intelligence, to ensure that adequate resources are 
applied efficiently, and in particular will monitor the 
effectiveness of the Financial Crimes Enforcement Network 
(FinCEN) and ongoing changes at the Office of Foreign Assets 
Control (OFAC). The Committee will also monitor the practice of 
data mining and examination of personal financial information 
conducted by government agencies, to ensure that an appropriate 
balance is struck between law enforcement priorities and the 
protection of civil liberties.
    Money Service Businesses' Access to Financial Institution 
Services. The Committee will examine why financial institutions 
continue to sever their relationships with Money Services 
Businesses (MSBs) and assess the effectiveness of FinCEN 
regulatory guidance to both MSBs and financial institutions, 
and review actions that regulators can take to ensure that such 
MSBs are not denied access to the banking system.
    New Technologies and Cash Alternatives. The Committee will 
examine cash alternatives, such as prepaid credit cards, the 
use of telephones to transfer and hold sums of money, websites 
that serve as alternatives to the banking system, and informal 
money transfer systems, businesses or networks, to determine 
their susceptibility to money laundering and terrorism 
financing, and other financial crimes.
    Appraisals. The Government Accountability Office in a 2003 
study found that 69 percent of states need more staffing for 
appraisal industry oversight, and 40 percent needed more 
resources to support related litigation efforts. Since then, 
anecdotal media reports about appraisal fraud, lender pressure, 
and faulty appraisals have continued to grow. The Committee 
will examine these matters, the effectiveness of the Appraisal 
Subcommittee of the Federal Financial Institutions Examination 
Counsel in overseeing State-based appraisal enforcement and 
licensing programs, and the need for appraisal regulatory 
reform. It will also explore the implementation of the 
appraisal independence standards adopted by the Federal Reserve 
in its 2008 rulemaking under the Home Ownership and Equity 
Protection Act.

                     Capital Markets and Securities

    Reforming Oversight of Financial Services. The Committee 
will assess the effectiveness of the current regulatory regime 
for the financial services industry and work to establish a 
more efficient oversight structure that may include a systemic 
risk regulator. As a part of this effort, the Committee will 
consider whether and how best to eliminate duplicative 
oversight functions among agencies, consolidate regulatory 
functions where appropriate, prevent charter shopping, and 
impose oversight over previously unregulated or lightly 
regulated activities, products, and market participants. The 
Committee will also review proposals to combine securities and 
futures regulation, establish appropriate new safeguards for 
investment banking functions, and set uniform standards for and 
combine the regulation of broker-dealers and investment 
advisers.
    Derivatives and Credit Default Swaps. The Committee will 
monitor market developments regarding over-the-counter 
derivatives, including credit default swaps. In its 
examinations, the Committee will specifically explore the need 
to create new statutory and regulatory safeguards to mitigate 
possible systemic risks posed by these products. The Committee 
will also examine the efforts of regulators and dealers to 
create credit default swap clearing platforms as a way to 
manage this risk.
    Oversight and Restructuring of the Securities and Exchange 
Commission (SEC). The Committee will carefully examine the 
operations and organizational structure of the SEC, placing an 
emphasis on its supervisory and inspection functions. The 
Committee will additionally consider and review proposals to 
enhance the overall effectiveness of the agency in light of 
recent scandals and the ongoing turmoil in the securities 
markets. Part of those discussions will include an evaluation 
of the sufficiency of the SEC's available resources and 
staffing levels. The Committee will also consider the impact of 
separating the SEC's exam and policy functions and whether such 
functions should be consolidated. The Committee will also 
consider how the SEC fits into the broader regulatory 
restructuring framework the Committee will pursue.
    Securities Fraud. In light of the December 2008 emergence 
of a $50 billion Ponzi scheme committed by Bernard Madoff's 
financial services firm, the Committee will review the failure 
to detect this massive securities fraud particularly, as well 
as other smaller securities frauds generally. As part of its 
comprehensive review of financial services regulation, the 
Committee will also scrutinize the internal operations of the 
SEC, especially its compliance, inspections, examinations, and 
enforcement functions.
    Impact of Emergency Economic Stabilization Act (EESA) on 
Capital Markets. The Committee will closely monitor the 
Administration's implementation of the $700 billion provided 
for in the EESA to determine whether the program is having its 
desired effect of easing the credit crisis. In its reviews, the 
Committee will consider whether the Administration uses funds 
within the Troubled Asset Relief Program (TARP) to satisfy the 
statutory objectives, including mortgage foreclosure prevention 
efforts, whether the Administration vigorously pursues EESA's 
executive compensation limitations, and whether banks receiving 
TARP funds increase lending efforts. The Committee will also 
focus on the auto companies who received aid via TARP to ensure 
that they establish viability plans and spend taxpayer dollars 
wisely.
    Loan Modifications in Securitized Pools. As a part of its 
ongoing efforts to mitigate foreclosures, the Committee will 
continue to consider methods to encourage and facilitate 
sustainable modifications of mortgages that have been 
securitized by servicers.
    Auction Rate Securities. The Committee will continue to 
monitor the efforts of the SEC, the Financial Industry 
Regulatory Authority, state securities regulators, and other 
law enforcement agencies to reach settlements with financial 
institutions to buy back illiquid auction rate securities from 
retail investors. The Committee will also examine the sales 
practices--particularly with respect to disclosure concerning 
the liquidity of the securities--as well as the training and 
education of broker-dealers that sold auction rate securities 
to investors, including those securities issued by 
municipalities and student lenders.
    Equity/Options Markets. The Committee will review recent 
developments in the U.S. equity and option markets that are 
increasingly made up of global, for-profit, shareholder-owned 
and multi-product institutions. The Committee will explore the 
impact that the ongoing credit crisis has had on exchange 
trading system volatility. It will also review the impact that 
the removal of the uptick rule and short-selling restrictions 
may have had on liquidity. The Committee will additionally 
study the growth of the options market and efforts of the U.S. 
options markets to implement decimal pricing for quoting 
options contracts. Finally, to better protect investors, the 
Committee will reexamine the need for legislation to permit the 
effective cross-margining of futures and securities products.
    Mutual Funds. The Committee will review the current state 
of regulation of investment companies and their advisors with 
respect to mutual fund operations, governance, disclosure, and 
sales, including the impact on investors of recent rule changes 
and court decisions. The Committee also will review the 
effectiveness and efficiency of the approval process for new 
products, such as exchange-traded funds. In addition, the 
Committee will continue to monitor the impact of the credit 
crisis on money market mutual funds, the stability provided by 
the Treasury Department's Guarantee Fund, and the liquidity of 
auction rate preferred stock issued by closed-end funds.
    Covered Bonds. Due to the success of covered bonds in other 
countries, the Committee will continue to monitor the emergence 
of covered bonds as a potential tool to ease the strain in U.S. 
capital markets. The Committee will review the potential for 
covered bonds to increase mortgage financing, improve 
underwriting standards, and strengthen U.S. financial 
institutions by providing a new funding source that could 
diversify their overall portfolio. The Committee will also 
examine the treatment of covered bonds as qualified financial 
contracts with insured depository institutions.
    Public Company Accounting Oversight Board (PCAOB). The 
Committee will review the effectiveness of the PCAOB in 
responding to the concerns of capital markets participants. The 
Committee will review the PCAOB's oversight of public company 
auditors, including reforms of auditing standards and the 
results of the PCAOB's inspection program. The Committee will 
also explore expanding the PCAOB's oversight to include 
auditors of broker-dealers, previously excluded from the 
regulatory regime, and the impact this increased oversight may 
have on the PCAOB's budget and funding. In conjunction with 
that change, the Committee will consider other proposals to 
improve oversight of auditors more broadly.
    Financial Accounting Standards Board (FASB). The Committee 
will review FASB's responsiveness to all segments of the 
capital markets, FASB's relationship with the SEC, and 
proposals to enhance Congressional oversight of the FASB. The 
Committee will monitor and review the work of the FASB to 
improve financial accounting standards, paying careful 
attention to the appropriate form for standards and the need 
for additional guidance concerning the development of standards 
regarding market valuations for accounting purposes.
    Convergence of International Accounting Standards. The 
Committee will review efforts by the SEC and the FASB to 
achieve robust, uniform international accounting standards. The 
Committee will also monitor the SEC's plans to incorporate 
those standards as a part of U.S. financial reporting 
requirements.
    Mark-to-Market Accounting. In conjunction with regulators, 
the Committee will review mark-to-market accounting rules and 
consider whether there is a need for: (i) clearer and more 
specific guidance; (ii) new and additional changes to the 
current standard; and/or (iii) viable alternatives exist to 
pricing distressed assets in an inactive market, such as 
separating ``liquidity'' and ``credit'' risk. The SEC has 
recently issued its EESA-mandated study on mark-to-market 
accounting. The Committee will review that study and consider 
its conclusions and recommendations, and ensure that the SEC 
takes all additional and necessary steps to revisit and address 
these issues accordingly. The Committee will examine the extent 
to which mark-to-market accounting may have exacerbated the 
current credit and market crisis and explore possible reforms 
that would revitalize financial institutions, deploy capital 
throughout the economy and lead to job creation.
    Corporate Governance. The Committee will review 
developments and issues concerning corporate governance in 
public companies, including proposals to increase 
accountability to shareholders through enhanced shareholder 
access to management's proxy, shareholder nomination of 
directors, and majority voting. In addition, the Committee will 
review the role of proxy advisory firms in the shareholder 
voting process. The Committee also will review issues raised 
with respect to the integrity of the shareholder voting 
process. Additionally, the Committee will monitor the SEC's 
regulatory proposals for enhanced disclosure regarding 
executive compensation and other corporate governance issues.
    Executive Compensation. The Committee will review proposals 
to increase accountability to shareholders in public companies 
with regard to executive compensation. The Committee will also 
generally explore other current executive compensation and 
disclosure issues. In addition, the Committee will focus 
special attention on ongoing compliance with and the impact of 
the executive compensation restrictions imposed on institutions 
participating in programs established under the EESA.
    Oversight of Self-Regulatory Organizations (SROs). As a 
part of its comprehensive review of the oversight of the 
financial services industry, the Committee will examine the 
effectiveness of SROs in today's markets and assess the impact 
of SRO mergers on the oversight of securities markets, market 
participants, and investors. The Committee also will consider 
limitations or regulatory gaps in the current SRO system and 
ways to streamline and strengthen the regulatory, compliance, 
examination, and enforcement structure. This review will 
additionally examine the impact of mandatory arbitration 
requirements on securities investors, as well as the balance, 
fairness, and efficiency of the current arbitration system.
    Hedge Funds and Private Pools of Capital. The Committee 
will examine the current state of the hedge fund, private 
equity and alternative investment industry. The Committee will 
review the role hedge funds and private pools of capital serve 
in the capital markets, and their interaction with investors, 
financial intermediaries, and public companies. The Committee 
will also examine issues related to pension funds' investments 
in hedge funds. The Committee will further consider whether 
hedge funds should be subject to greater oversight under a 
revised regulatory regime. Finally, the Committee will examine 
whether hedge funds and other private pools of capital may have 
contributed to and had an effect on the ongoing credit crisis.
    Federal/State Allocation of Enforcement Responsibilities. 
The Committee will examine the impact of several pieces of 
legislation over the last decade streamlining securities 
registration and allocating responsibilities between state and 
Federal authorities. In particular, the Committee will examine 
the impact of these laws on the enforcement of the securities 
laws and whether loopholes have been created that permit 
fraudulent securities offerings to escape either Federal or 
state law enforcement. The Committee will also examine whether 
there is a need to raise the threshold for investment adviser 
registration--currently those advisers who have over $25 
million in assets under management--to allow the SEC to better 
focus on the largest investment advisers and the states on the 
smaller advisers.
    Capital Allocation to New Technologies. For years, the 
United States has supported the Overseas Private Investment 
Corporation to promote growth in emerging markets abroad. In 
order to now promote long-term, sustainable economic growth and 
productivity at home, the Committee will explore how to create 
incentives in the capital markets aimed at facilitating the 
growth of emerging innovative technologies and promising 
industrial sectors.
    Business Development Companies (BDCs). The Committee will 
examine the regulations governing BDCs, which could play a 
larger role in the nation's economic recovery. The Committee 
will also continue to monitor BDCs' minimum capital 
requirements. Given the current credit crisis, the Committee 
may consider proposals related to altering the BDCs' required 
leverage ratios.
    Credit Rating Agencies. The Committee will monitor the 
SEC's ongoing implementation of the Credit Rating Agency Reform 
Act, which became effective in 2007. The Committee will also 
examine ways to limit the conflicts associated with the way 
credit rating agencies are compensated, approaches to increase 
their accountability and the possibility of regulatory fee 
assessments. In addition, the Committee will examine the 
current methodology for rating tax-exempt municipal bonds and 
consider possible changes to the Credit Rating Agency Reform 
Act to ensure the ratings on municipal bonds accurately reflect 
the risk of loss posed to an investor.
    Securities Investor Protection Corporation (SIPC). The 
Committee will examine the operations, initiatives, and 
activities of SIPC, and possible opportunities to better 
protect investors in today's volatile markets. In light of 
SIPC's exposure to the failure of Bernard L. Madoff Investment 
Securities, the Committee will examine SIPC's existing 
reserves, access to private and public lines of credit, 
coverage levels, and its prior decision to significantly lower 
the annual assessments of participating broker-dealers.
    Fair Fund. The Committee will examine the operations of the 
Fair Fund established under the Sarbanes-Oxley Act and the 
success of Federal regulators in implementing the Fair Fund. 
The Committee also will review options for expediting 
collection of civil fines and ill-gotten gains from corporate 
wrongdoers and the distribution of recovered amounts to 
defrauded investors.
    Business Continuity Planning/Critical Infrastructure 
Protection. The Committee will monitor the implementation of 
the Interagency Paper on Sound Practices to Strengthen the 
Resilience of the U.S. Financial System as well as the related 
efforts of all participants in the securities industry to 
improve business continuity planning to protect investors 
against the effects of natural disasters, terrorism events, and 
pandemics. The Committee will also review the impact of global 
mergers and alliances and their impact on business continuity 
planning. The Committee will additionally review the Government 
Accountability Office's work related to planning and 
preparation efforts of financial organizations to minimize the 
disruptions of critical operations in the event of a pandemic 
and the ability of the United States telecommunication 
infrastructure to support telecommuting during a pandemic.
    Sarbanes-Oxley Act of 2002. The Committee will continue to 
monitor the impact of the Sarbanes-Oxley Act on investors, 
public companies--particularly non accelerated filers--and 
markets, particularly with respect to the ongoing credit and 
financial markets crisis. The Committee will review the efforts 
of the SEC and PCAOB to improve the efficiency of 
implementation of the internal control requirements under 
section 404 of that Act, the impact of the Act's corporate 
governance reforms, and the adequacy of investor protections 
provided by the Act generally.
    Global Competitiveness of U.S. Financial Markets. The 
Committee may examine studies, concerning the competitive 
position of U.S. financial market participants. The Committee 
also will assess proposals to enhance the competitiveness of 
U.S. markets, including those to streamline and consolidate 
regulation and oversight of U.S. financial markets, 
institutions, and exchanges.
    Municipal Securities. The Committee will review the state 
of the $2.5 trillion municipal securities market that is 
accessed by more than 55,000 state and local issuers including 
present efforts to make the municipal bond market more 
efficient and improve issuers' access to capital. The Committee 
will also examine how different segments of the market are 
regulated including the role of independent financial advisors, 
including those involved in derivative transactions, and 
disclosure requirements. The Committee will also examine the 
Municipal Securities Rulemaking Board's recently launched 
Electronic Municipal Market Access (EMMA) document and real-
time trade price database of municipal securities.

                    Government Sponsored Enterprises

    Charter Restructuring for Government Sponsored Enterprises 
(GSEs). On September 7, 2008, the Federal Housing Finance 
Agency placed Fannie Mae and Freddie Mac into conservatorship. 
As part of this conservatorship, the two GSEs have signed 
contracts to issue new senior preferred stock to the Treasury, 
which has agreed to purchase up to $100 billion of this stock 
from each of them. The decision to place the two GSEs into 
conservatorship has raised questions about their public-private 
organizational structure, as well. The Committee will therefore 
examine proposals to modify the statutory charters of the GSEs.
    GSE Regulatory Reform. The Committee will monitor the 
Federal Housing Finance Agency, the new regulator for the 
Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, and 
will consider ways to improve the effectiveness of the new 
regulator. The Committee will also consider, as part of its 
comprehensive review of the oversight of the financial services 
industry, proposals to improve, or otherwise alter the purpose 
and functions of the GSEs and their appropriate roles in the 
mortgage market.
    Federal Home Loan Bank (FHLB) System. The Committee will 
monitor the capital requirements, financial health, and 
stability of the FHLB System, as well as the FHLB System's 
ability to fulfill its housing mission and provide liquidity to 
the cooperative's member banks in a safe and sound manner 
during the ongoing credit crisis. The Committee will pay 
particular attention to recent reports that several of the 
Federal Home Loan Banks may fall below required capital levels 
as a result of troubled mortgage assets held on their books.
    GSE Appraisal Standards. The Committee will examine the 
implementation of the Home Valuation Code of Conduct by Fannie 
Mae and Freddie Mac and how it affects the appraisal industry. 
It will also review the implementation of a new regulation by 
the Federal Housing Finance Agency requiring the use of loan-
level appraiser identifiers to combat fraud in mortgage 
lending.
    FHLB Community and Economic Development. The Committee will 
focus on the efforts to advance community and economic 
development within the FHLB System, including the 
implementation of the enhanced targeted economic development 
lending for small business, small farms, and small agri-
businesses allowed under the Gramm-Leach-Bliley Act and of the 
performance of the FHLBs in implementing the community 
investment cash advance regulation. The Committee will review 
the effects of the estimated $8 billion in community-related 
financing the FHLBs have already provided to community 
financial institutions and examine whether the FHLBs can 
accomplish more to help the nation overcome the continuing 
economic crisis.
    Resolution Funding Corporation (REFCorp) Payments. The 
Committee will monitor the efforts of the housing GSEs to pay 
the obligations of REFCorp established to cover the costs of 
resolving the savings-and-loan crisis and the policy 
implications for the GSEs upon the satisfaction of the 
remaining REFCorp debts.

                                Housing

    Mortgage Foreclosures and Loan Modifications. The Committee 
will continue its comprehensive focus on Federal efforts to 
address the rising delinquency and foreclosure rate, including 
hearings and legislation designed to avert foreclosures. 
Agencies and programs of focus may include the Federal Housing 
Administration (including Hope for Homeowners and FHA's ongoing 
refinance efforts), Fannie Mae, Freddie Mac, and the Federal 
Home Loan Banks, Federal programs which provide funds for 
foreclosure prevention, housing counseling, foreclosure 
protections, purchase of foreclosed properties, and efforts to 
spur appropriate levels of home purchase. The Committee will 
also consider proposals to protect the rights of bona fide 
tenants subject to foreclosure.
    The Committee will also conduct a hearing or a series of 
hearings on the status of mortgage loan modifications as a 
means of helping struggling borrowers to avoid foreclosure. 
Successful mortgage modifications change the terms of the loan 
so that it is more affordable to the borrower over the long 
term. The Committee will also examine systematic approaches to 
mortgage modification, such as the program implemented by the 
Federal Deposit Insurance Corporation at IndyMac Federal Bank 
and the recently announced Federal Reserve Homeownership 
Preservation Policy. In addition, the Committee will review 
foreclosure prevention plans originated from the private 
sector, such as HOPE Now. As part of that examination, the 
Committee will seek to define the criteria in determining which 
borrowers should receive help in modifying their loans. For 
those that are determined to be ineligible for loan 
modifications, the Committee will investigate appropriate 
alternatives for providing assistance.
    In its examination of foreclosure prevention and loan 
modification proposals the Committee will also take into 
account that most borrowers continue to make on-time payments 
in spite of economic hardship and will consider the moral 
hazards associated with systematic loan modification and 
foreclosure mitigation.
    Housing Preservation. The Committee will consider proposals 
to preserve federally assisted housing, including the challenge 
of maintaining affordability for those federally assisted 
properties scheduled to experience mortgage maturities in the 
next decade. The Committee may review HUD's policies and 
performance in approving proposals by owners to preserve and 
rehabilitate older assisted housing projects. In addition, the 
Committee may also explore other related topics, such as 
prepayment policies, troubled projects, renewal of expiring 
project-based voucher contracts and transfer of project-based 
section 8 contracts. The Committee will continue to monitor the 
role of the Office of Affordable Housing Preservation in 
overseeing and preserving HUD-assisted multi-family housing. 
The Committee may examine HUD's property disposition program, 
and the extent to which HUD has worked with local housing 
authorities and non-profit organizations to preserve the 
affordability of HUD's inventory of multi-family housing 
following foreclosure by the borrower. Further, the Committee 
may review the circumstances by which current owners choose to 
leave the program and how incentives can be used, coupled with 
a reduced regulatory burden, to encourage continued 
participation by the private sector. The Committee will review 
programs aimed at preservation to determine the cost effective 
and efficient means of promoting preservation including the 
impact of one-for-one replacement policies, prohibitions on 
demolition of existing properties and transfer of subsidy from 
one property to another.
    FY 2010 Budget for the Department of Housing and Urban 
Development, the Rural Housing Service, the Neighborhood 
Reinvestment Corporation and the National Flood Insurance 
Program. The Committee will conduct a hearing or a series of 
hearings to consider Administration FY 2010 budget proposals 
for these agencies and programs, including receiving testimony 
from relevant agencies. Such hearings will concentrate on the 
Department's efforts to be responsive to current market 
challenges as well as ensuring decent affordable housing. 
During these hearings the Committee will examine spend out 
rates for assisted programs in addition to program oversight 
and accountability measures.
    Public Housing. The Committee will conduct a hearing or a 
series of hearings on the state of public housing programs, 
including, but not limited to, the public housing operating and 
capital funds the HOPE VI program, current spend-out rates and 
potential funding sources with which public housing agencies 
can supplement their efforts to maintain and operate public 
housing units. The Committee also will review HUD's 
implementation of the Quality Housing Work Responsibility Act 
of 1998 (QHWRA); the Community Service requirement; the 
performance to date of Moving to Work agencies; and areas where 
unnecessary regulation could be curtailed, while fully 
maintaining protections for tenants.
    HOPE VI. The Committee will review the HOPE VI program and 
the need for reauthorization, including, but not limited to, 
the needs of distressed public housing developments, a 
prohibition on demolition-only grants, a one for one 
replacement requirement, tenant eligibility standards on the 
availability of decent and affordable housing and the benefits 
of mixed-use communities. The Committee will review the 
progress by past HOPE VI award recipients of implementing and 
completing their revitalization plans, including the amount of 
funds that remain unspent in some HOPE VI accounts. 
Additionally, the Committee will examine the effects of HOPE VI 
revitalization projects on tenants, including the ability of 
tenants to find alternative housing during rehabilitation, as 
well as their ability to return once rehabilitation is 
completed.
    Affordable Housing Production. The Committee may conduct a 
hearing on preserving a dedicated source of funding and 
identifying additional funding mechanisms for the newly created 
National Housing Trust Fund. The Housing Trust Fund was 
established to construct, maintain and preserve affordable 
rental housing for the lowest income families in both rural and 
urban areas. The Committee will review HUD's progress in 
developing regulations to implement the Trust Fund, including 
oversight policies for Trust Fund grantees, and whether 
additional legislation is required to clarify and enhances 
issues that cannot be resolved by regulation.
    Housing Tax Credit Programs. The Committee may conduct a 
hearing or series of hearings on legislative and administrative 
proposals to address the recent dislocations in the funding of 
Low Income Housing Tax Credit (LIHTC) program, including 
legislative efforts to address such dislocations. The Committee 
may conduct hearings reviewing the implementation of provisions 
included in Public Law 110-289 which were designed to 
facilitate the use of housing tax credits in conjunction with 
HUD and Rural Housing Service programs. In any evaluations of 
reforms to the LIHTC program the Committee will examine the 
role of syndicators and investors in affordable housing 
production.
    Federal Housing Administration (FHA). The Committee will 
conduct hearings on the FHA single family loan program, on 
issues which may include the financial status of the program, 
the recent growth in loan volume, oversight of FHA loan 
originators, FHA loan limits, implementation of provisions 
enacted under Public Law 110-289, FHA loss mitigation, and the 
recently eliminated FHA gift downpayment program. In hearings 
the Committee will also examine legislative proposals affecting 
the financial viability of the FHA insurance fund. Other areas 
of focus will include the FHA reverse mortgage loan program and 
the Title 1 manufactured home loan program, both of which 
underwent major reforms as part of Public Law 110-289. In 
addition, the Committee will continue to monitor FHA's ability 
to oversee FHA-approved lenders/licensees, employ appropriate 
technology and manage its human capital.
    Section 8 Housing Choice Voucher Program. The Committee 
will resume its efforts to complete comprehensive reform of the 
Section 8 voucher program, through efforts to enact the Section 
8 Voucher Reform Act (SEVRA).
    Rural Housing. The Committee will consider proposals to 
create a revitalization program at the Rural Housing Service 
(RHS) to preserve and rehabilitate affordable housing under the 
Section 502 single family direct and guaranteed loan programs 
as well as the Section 514, 515 and 516 multi-family housing 
programs. The Committee will monitor the loan commitment 
authority of Section 502 programs and examine innovative 
proposals to address potential funding shortfalls in all RHS 
single family and multifamily programs. The Committee will also 
review the effectiveness of HUD programs that address the 
various affordable and basic housing needs of rural and 
colonias communities.
    Section 202 Elderly and Section 811 Disabled Housing. The 
Committee will review the Section 202 and 811 supportive 
housing programs for the elderly and disabled, including 
proposals to facilitate the timely production of new units, 
preserve the existing housing stock of 202 and 811 projects and 
increase refinancing flexibility for such projects to carry out 
needed rehabilitation of older properties. The Committee will 
continue to monitor the ease of use for layered financing 
limited partnership arrangements between non-profit and for-
profit project sponsors. Additionally, the Committee will 
explore the availability and provision of supportive services 
to residents.
    Homelessness. The Committee will review the McKinney-Vento 
homeless assistance program, including resuming its effort to 
enact comprehensive homeless reform legislation, as was passed 
by the House last Congress, the ``Homeless Emergency Assistance 
and Rapid Transition to Housing Act of 2008.'' The Committee 
will also review HUD homeless assistance programs and services 
for veterans who are homeless or at risk of becoming homeless. 
The Committee will look at the impact of homeless programs on 
families and children.
    Native American Housing. The Committee will review issues 
arising out of Native American housing programs at HUD, 
particularly the implementation of the Native American Housing 
and Self Determination Act (NAHASDA--Public Law 110-411), and a 
report to be published by the General Accountability Office as 
required by the legislation.
    Neighborhood Stabilization Program. The Committee will 
conduct a hearing or a series of hearings on the Neighborhood 
Stabilization Program, including whether there is a need for 
statutory changes regarding the program's efficiency and 
effectiveness. The Committee will consider the need for 
alterations to the funding formula, the program spend out rate, 
as well as the role of nonprofits and local government capacity 
in carrying out the program. The Committee will examine the 
effectiveness of accountability language inserted in Public Law 
110-289 that was designed to ensure proper transparency and 
oversight of eligible entities for Neighborhood Stabilization 
funding.
    Community Development Block Grants. The Committee will 
conduct a hearing or a series of hearings on the Community 
Development Block Grant (CDBG) program, including the role of 
Congressional input and oversight in CDBG projects, the use of 
block grant funds at the local level, and program waivers. The 
Committee will also review the impact of environmental and 
economic benefit mandates on the timely expenditure of CDBG 
funds. The Committee may also review the current allocation 
formula for CDBG funds.
    Federal Housing Response to Natural Disasters. The 
Committee will continue to review the progress of housing 
reconstruction in the Gulf Coast, including the availability of 
affordable housing for low-income families, the impact of 
disasters on public and assisted housing, the ability of 
displaced residents to return home and the impact on 
surrounding communities. In addition, the Committee will 
continue to examine the role of government in long-term 
disaster housing and conduct oversight of recovery efforts in 
effected areas receiving Federal recovery assistance. The 
Committee will review the role of government in long-term 
housing, as well as economic and infrastructure recovery of the 
Gulf Coast region and the ability of homeowners to rebuild, 
including the availability of homeowner's insurance. Finally, 
the Committee will examine potential funding sources for the 
production, repair, and reconstruction of affordable housing in 
areas affected by natural disasters.
    The Committee will also continue to monitor efforts by HUD 
and the Federal Emergency Management Agency (FEMA) to 
coordinate efforts to provide funding to public housing 
developments that are damaged or destroyed by natural disaster 
or emergencies. Such review will be in coordination with the 
Committee on Transportation and Infrastructure, which has 
jurisdiction over FEMA.
    National Flood Insurance Program (NFIP). During the 110th 
Congress, the House passed the Flood Insurance Reform and 
Modernization Act of 2007, H.R. 3121. The Committee remains 
committed to the comprehensive reform and long-term 
reauthorization of the NFIP. To this end the Committee will 
continue its general review of NFIP participation, rate 
setting, map modernization, loss mitigation, claims handling, 
and rate subsidization for repetitive loss properties and 
second homes. The Committee will continue its efforts to 
achieve reforms that phase-in more actuarially sound premium 
rates in the short term.
    HUD Mission, Management Reform and Staffing. The Committee 
will review the overall mission, organization, human resources 
and information technology capabilities of the Department of 
Housing and Urban Development to determine whether the 
Department is meeting and addressing housing issues in the most 
efficient manner. The Committee will continue to track the 
transparency, accountability and oversight protocols for all 
HUD grant and loan recipients, including non-profit 
organizations. The Committee will consider the need for 
additional personnel to properly administer and monitor new and 
expanded HUD programs designed to address the current mortgage 
foreclosure crisis and increasing affordable housing needs.
    Project-Based Section 8 Program. The Committee will 
continue to review the timeliness of Housing Assistance 
Payments for project-based Section 8 properties and may review 
the need to make statutory changes to ensure the timeliness of 
Housing Assistance Payments.
    Housing Counseling. The Committee will review current 
housing counseling programs, which includes Federal, state, 
private and nonprofit efforts, to help ensure that such 
programs are an effective tool in minimizing defaults and 
foreclosures. The Committee will also consider whether 
improvements could be made to enhance consumer education as 
well as prevent abusive lending practices.
    Fair Housing. The Committee will review a report to be 
published by the Government Accountability Office regarding 
fair lending enforcement by regulatory agencies, including HUD 
and may hold a hearing, or series of hearings, on the GAO 
report.
    Green Development. The Committee will monitor proposals to 
promote green development in Federally assisted housing, 
including legislation from the last Congress entitled the Green 
Resources for Energy Efficient Neighborhoods Act of 2008, and 
any voluntary, private sector green building standards already 
in place that encourage cost effective energy efficiency for 
affordable housing.
    Housing and Services. The Committee will conduct a hearing 
or a series of hearings on the delivery of housing-based social 
services, including child care, education, and employment 
training for low income families, and mental health and 
substance addiction services for chronically homeless 
individuals. The Committee will also examine the extent to 
which affordable housing developers and their social service 
provider partners face challenges in financing these services.
    Oversight of Federal Housing Programs. The Committee will 
hold oversight hearings on other Federal housing programs run 
by HUD and the Rural Housing Service. In addition to examining 
whether these programs are meeting their housing missions, they 
will focus on the costs, spend out rates and oversight and 
accountability measures governing these programs.
    Real Estate Settlement Procedures Act (RESPA). The 
Committee may review issues related to RESPA including 
implementation of the RESPA rule promulgated by HUD in November 
2008. The Committee will also examine HUD's recommendations for 
statutory reforms to RESPA.
    Escrows. The Committee will generally explore problems 
related to establishing and servicing escrow accounts. This 
examination will also focus on the need to advance Federal 
reforms to require escrow accounts for those homeowners with 
less-than-perfect credit scores or high-cost mortgages.
    Mortgage Broker Licensing and Oversight. The Committee will 
monitor implementation of the S.A.F.E. Mortgage Licensing Act 
of 2008 which established a mortgage originator licensing 
system and registry to better protect homebuyers.
    Impact of Bankruptcy Cram Down on the Mortgage Market. The 
Committee will conduct oversight on the impact of bankruptcy 
cram down legislation on the mortgage market, in general, and 
specifically on the programs operated by the FHA and the RHS. 
The oversight review will include the impact of bankruptcy cram 
down on continued lender participation, the solvency of the FHA 
Mutual Mortgage Insurance Fund and the solvency of the RHS 
Section 502 program. The Committee will also conduct oversight 
on the impact of cram down legislation on primary mortgage 
interest rates, overall access to mortgage credit, especially 
for borrowers with weaker credit histories and the future of 
the GSE's and the securitization market.
    Oversight of Entities Receiving Government Funds. The 
Committee will conduct oversight over the use of Federal funds 
by non-profits, for-profits and third-party institutions. The 
scope of the review will assess the policies and practices of 
the agencies under this Committee's jurisdiction (HUD, RHS, and 
Neighborworks) to ensure that eligible entities are using 
Federal funds for eligible purposes. The Committee will monitor 
the agencies' policies to assess and ensure that Federal funds 
paid out to these entities are being used for their intended 
purposes and in a cost effective and efficient manner. In 
addition, the Committee will look at specific requirements and 
procedures in place in agencies under the Committee's 
jurisdiction, to evaluate entities' applications to participate 
in government programs, particularly with respect to the 
agency's ability to identify illegal activities on the part of 
applicants.

                               Insurance

    Insurance Regulatory Modernization. The States have long 
had the primary responsibility for regulating the business of 
insurance. In recent years, there has also been both a state 
and Federal effort to modernize and improve insurance 
regulation. During the 110th Congress, the Capital Markets 
Subcommittee held a series of hearings on reforming insurance 
regulation and approved a number of incremental reforms, 
including a bill to strengthen the corporate governance 
standards and improve the effectiveness of risk retention 
groups, as well as other legislation described below. In the 
111th Congress, the Committee will reconsider these previously 
approved reforms and, as part of its ongoing comprehensive 
review of the oversight of the financial services industry, 
will evaluate new policy alternatives for modernizing insurance 
regulation.
    Financial Guarantee Insurance. The financial guarantee 
insurance industry lies at the center of the ongoing credit and 
liquidity crisis that has roiled financial markets in recent 
months. Turmoil within this sector has caused tens of billions 
of dollars of losses to investors and financial institutions, 
and an unraveling of many secondary debt markets. The Committee 
will therefore monitor the ongoing efforts of the financial 
guarantee insurance industry to recapitalize itself and the 
efforts of individual financial guarantee insurers to restore 
their triple-A credit ratings. The Committee will also review 
the consequences of the actions by financial guarantee insurers 
to expand their business model beyond traditional insurance 
into financial products guaranteeing the credit worthiness of 
more complex securities, including those backed by subprime 
mortgages. The Committee will further examine the ability of 
municipal issuers to access the capital markets in an 
unfavorable credit environment. In this regard, the Committee 
will explore the possibility of Federal participation in the 
municipal bond or reinsurance marketplace.
    Insurer Access to the Troubled Asset Relief Program (TARP). 
The Federal Government has taken unprecedented measures to 
rescue American International Group (AIG), a financial services 
holding company with major insurance components. AIG has been 
given access to more than $170 billion in taxpayer funds, 
including $40 billion from TARP under the Emergency Economic 
Stabilization Act. Some insurance companies (generally life 
insurers and financial guarantee insurers) have also sought 
access to Federal bailout funds through the TARP. To date, the 
Treasury Department has approved Federal assistance for 
Federally-regulated entities only. As a result, numerous 
insurance companies have recently sought to convert themselves 
into savings-and-loan holding companies subject to Federal 
regulation. The Committee will review the need for insurer 
access to TARP funds and the resulting implications of any 
Federal aid to insurers.
    Regulation of Insurer Systemic Risks. As part of its 
overhaul of systemic risk regulation, the Committee will look 
at the role insurance plays in the economy and its 
interconnectedness with other sectors of the financial services 
system. As noted above, insurers offering financial guarantee 
products, like AIG and the municipal bond insurers, have 
demonstrated that insurers and their holding companies can 
create systemic risks. The Committee therefore will work to 
identify solutions aimed at mitigating the systemic risks posed 
by insurers or their holding companies.
    Terrorism Risk Insurance. During the 110th Congress, 
Congress revised and reauthorized the Terrorism Risk Insurance 
Program through December 31, 2014 with passage of the Terrorism 
Risk Insurance Program Reauthorization Act of 2007. In order to 
ensure the continued availability of terrorism insurance 
coverage and protect the economic security of the United 
States, the Committee will review Treasury Department's 
implementation of new and revised elements of the program. 
Furthermore, the Committee will monitor the continued impact of 
the program on the terrorism insurance marketplace and the 
utilization by the marketplace of the coverage provided through 
the program, paying particular attention to: (i) The 
applicability of the program to single-risk, captive insurers 
created since 2002; (ii) the implications of the program's 
failure to cover nuclear, chemical, biological and radiological 
events; and (iii) lessons learned from the program that relate 
to the private sector's capacity to provide insurance coverage 
for the risk of extreme catastrophic events and the larger 
topic of insurance regulatory reform.
    Agent and Broker Licensing Reform. As part of the Gramm-
Leach-Bliley Act, Congress sought to establish greater 
reciprocity or uniformity thresholds for non-resident producer 
licensing. Although many States have made considerable progress 
in streamlining their producer licensing systems, during the 
110th Congress the House passed H.R. 5611, a bill to create the 
National Association of Registered Agents and Brokers (NARAB) 
and further streamline insurance producer licensing by allowing 
NARAB to establish minimum licensing reciprocity standards 
through which an insurance agent or broker licensed in one 
State could automatically qualify as a broker or agent in any 
other State. The Committee will continue its incremental 
efforts to facilitate insurance producer licensing within the 
current regulatory system. As part of the larger topic of 
financial services regulatory reform, the Committee may 
consider other measures intended to promote even greater 
insurance producer licensing uniformity and reciprocity while 
still assuring sufficient consumer protections.
    Surplus Lines and Reinsurance. In the 109th and 110th 
Congresses, the House passed the Nonadmitted and Reinsurance 
Reform Act. To promote greater efficiency in the surplus lines 
and reinsurance marketplaces used by large and sophisticated 
entities to obtain coverage against losses, the Committee will 
continue its review of these matters and renew its efforts to 
achieve positive incremental reforms that benefit insurance 
consumers.
    Guarantee Funds. To protect policyholders in the event of 
an insolvency of an insurer, each State has in place a system 
of guarantee funds. In this period of growing financial 
insecurity, the Committee will monitor the effectiveness of 
these systems to protect policyholders in the event of an 
insurer's insolvency and study whether changes should be made 
to the present guarantee system if broader changes are made to 
the regulation of insurance.
    Insurance Investments. Insurance companies seek to match 
long-term obligations with long-term investments. In doing so, 
many insurance companies invest in real estate, with an 
emphasis on commercial real estate. As the real estate sector 
faces unprecedented loss, life insurance companies sought 
capital and surplus relief from State regulators in late 2008. 
The Committee will monitor the financial health of insurance 
companies. Separately, the Committee may also examine the two 
investment pools in Massachusetts, one for property-and-
casualty insurers and one for life insurers, working to help 
fund the development of affordable housing, commercial and 
industrial real estate, small business, and other community 
projects.
    Insurance Information. After the September 11, 2001, 
terrorist attacks and Hurricane Katrina, many noted that the 
Federal Government lacked an in-house resource for obtaining 
information about the insurance industry. The current economic 
crisis further points out the significant role insurance can 
have in our economy, and the lack of information within the 
Federal Government of the industry. The ratings downgrades of 
bond insurers in 2007 and 2008 resulted in a tighter credit for 
municipalities and other bond issuers, even though the bond 
insurers account for only 0.3 percent of the total premium 
written for the entire insurance industry. Moreover, the 
American taxpayer is now a major shareholder in AIG, after the 
unprecedented intervention of the Federal Government into the 
financial services holding company to prevent a systemic 
collapse. The Committee therefore will continue to review ways 
to increase the Federal knowledge base on insurance issues, 
including establishing an Office of Insurance Information. Such 
a centralized insurance informational resource center within 
the Federal Government could help to better coordinate 
responses after disasters, enhance international discussions on 
insurance issues, and provide expert advice to both Congress 
and Federal financial regulators on issues affecting the 
insurance industry.
    Credit Scoring and Insurance. During the 110th Congress the 
Committee examined the use of consumer credit information to 
underwrite personal lines of insurance, including automobile 
and homeowners insurance. On July 19, 2007, the Federal Trade 
Commission also released the first portion of a statutorily 
required, two-part report entitled, ``Credit-Based Insurance 
Scores: Impacts on Consumers of Automobile Insurance.'' The 
pending second portion of that report, addressing homeowners 
insurance, will be reviewed by this Committee when it is 
completed. The Committee will also continue to monitor the 
effects of the use of consumer credit information by insurance 
companies to underwrite and rate in all personal lines of 
insurance to assess its impact on consumers, including whether 
its use is accurate and fair in assessing insurance risks and 
whether it is effective in assuring accessibility and 
affordability to all consumers.
    Natural Catastrophe Insurance. Over the past decade, 
insurance markets throughout all regions of the United States 
have experienced ever increasing issues surrounding the 
availability and affordability of natural catastrophe 
insurance. When combined with the complexities of single- and 
multi-peril coverage and coverage exclusions, these nationwide 
issues of availability and affordability often result in 
otherwise insurable properties being uninsured or underinsured 
in the event of a natural disaster. Uninsured natural disaster 
losses are not only a financial burden to individual property 
owners, but impose financial costs on the properties' 
inhabitants, private insurers, lenders, and Federal, State and 
local governments. To address these interrelated, growing 
national issues, the Committee will continue to collect 
information and review the general availability, affordability, 
and uptake rates of personal and commercial natural catastrophe 
insurance across the United States. The Committee will also 
continue its study of how those at risk for natural 
catastrophes are informed of the availability of Federal 
programs and private insurance coverage, and how well 
individuals, businesses, and local governments understand the 
risks they assume for uninsured disaster losses as a result of 
their choices. Further, the Committee will explore existing 
programs in foreign countries and the States, as well as 
proposals initiated by private market insurers, for providing 
insurance or reinsurance for natural catastrophes. Given the 
volume and complexity of the information to be collected on 
this topic, the Committee may explore the creation of a 
commission to gather relevant information and report on a range 
of potential legislative, private market, and public-private 
solutions to improve the availability, affordability, and 
uptake rates of natural catastrophe insurance. While committed 
to reforming and reauthorizing the National Flood Insurance 
Program for the immediate future, the Committee will include 
flood insurance as part of any discussion of natural 
catastrophe insurance. Likewise, the Committee will examine 
ways to ensure that any comprehensive approach to natural 
catastrophe insurance include effective loss mitigation 
measures and responsible land management provisions. Finally, 
the Committee will consider legislative solutions designed to 
maximize the use of private market insurance and minimize the 
instability of temporary and extreme fluctuations in the 
availability, affordability and utilization of natural 
catastrophe insurance.
    Retirement Products. Given Americans increased reliance on 
personally controlled retirement savings and the proliferation 
of increasingly complex retirement products, the Committee will 
continue to monitor the response of the insurance industry to 
these developments, including review of the expected impact of 
the Security and Exchange Commission's recently finalized 
indexed annuities rule, Rule 151(A). In its review, the 
Committee will explore the ability of financial regulators to 
adequately protect consumers of annuity products, especially in 
the current volatile markets, and whether any gaps in 
functional oversight exist.
    Reinsurance. As an essential tool for spreading and 
managing risk, reinsurance and its regulation directly impact 
the availability and affordability of all insurance coverage 
available in the United States. The Committee will review 
existing economic and regulatory constraints on the United 
States' reinsurance marketplace and seek to identify 
legislative approaches designed to foster reinsurance 
availability without sacrificing necessary consumer 
protections. As part of the larger topic of insurance 
regulatory reform, the Committee will also explore alternate 
systems of national reinsurance regulation.
    International Developments. Though regulated on a State-by-
State basis, the business of insurance has for many decades 
transcended State boundaries. The capital pools provided by the 
reinsurance industry and the adoption of international trade 
agreements have long since made the insurance industry a global 
one. For these reasons, the Committee will continue to monitor 
developments in international insurance regulation. As part of 
the larger topic of insurance regulatory reform, the Committee 
will also explore how the current State-by-State insurance 
regulatory system fits into an increasingly evolving global 
insurance marketplace.

                         International Finance

    Annual Report and Testimony by the Secretary of the 
Treasury on the State of the International Financial System and 
International Monetary Fund Reform. The Committee will review 
and assess the annual report to Congress from the Secretary of 
the Treasury on the state of the international financial system 
and the International Monetary Fund (IMF). Pursuant to section 
613 of Public Law 105-277, the Committee will hear annual 
testimony from the Secretary of the Treasury on the contents of 
this report, as well as on matters relating to the 
international financial institutions and international economic 
issues generally. The Committee will also consider the capacity 
of the IMF to fulfill its mission in the current global 
economic crisis and any requests from the Administration for 
legislation to authorize U.S. commitments pursuant to an IMF 
reform agreement.
    Exchange Rates. The Committee will review and assess the 
semi-annual report to Congress from the Secretary of the 
Treasury on International Economic and Exchange Rate Policies 
pursuant to the Omnibus Trade and Competitiveness Act of 1988. 
The Committee will monitor developments related to the exchange 
rate policies of the United States' major trading partners and 
will pay particular attention to the policies of countries that 
seek to maintain a fixed exchange rate for their currencies. 
The Committee will assess the effects of these currency 
practices on the competitiveness of U.S. firms and on the 
stability of the international financial system.
    Global Capital Flows. The Committee will monitor the 
effects of the flow of capital globally, and in particular, 
trends in foreign countries' investments of their large 
currency reserves in the United States and other countries. The 
Committee will assess the effects of the investment of these 
reserves on global financial stability and on multilateral 
policy initiatives. The Committee will also assess U.S. and 
multilateral policies on the regulation of capital flows.
    Trade in Financial Services. The Committee will remain 
active in the oversight of trade negotiations and discussions 
as they pertain to investment and trade in financial services. 
The Committee will also monitor the progress of the United 
States' trading partners in meeting their financial services 
and investment commitments under existing trade and investment 
agreements.
    Export-Import Bank of the United States. The Committee will 
assess the role of the Export-Import Bank in providing trade 
finance particularly in light of the current credit 
retrenchment by private sources of trade finance. The Committee 
will consider the adequacy of the current authorization level 
for Bank lending as well as other potential constraints on the 
Bank's ability to play a greater role in filling the gap in 
trade finance. The Committee will also closely monitor the 
Bank's competitiveness relative to foreign credit agencies 
(ECAs), with particular attention to competitiveness with the 
export credit practices of countries that are not members of 
the Organization for Economic Co-Operation and Development.
    International Clean Technology Fund. The Committee will be 
prepared to consider a possible Administration request for 
funding of the U.S. commitment under the 2008 agreement to 
establish an international Clean Technology Fund to be 
administered by the World Bank. The Committee will pay 
particular attention to the standards and requirements for the 
funding of projects under the CTF, including eligibility of 
countries, types of projects, eligible technologies and 
economic sectors, and the level of funds allocated to any one 
country.
    Counter-Terrorism Financing Policy. The Committee will 
continue to monitor the role of the Treasury Department in 
promoting the adoption and implementation of counter-terrorism 
standards around the world through the Financial Action Task 
Force (FATF), the IMF, and the MDBs as well as the evolution of 
the standards themselves as promulgated FATF. The Committee 
will also monitor the Office of Technical Assistance at 
Treasury, its coordination with the other agencies in the 
Terrorist Financing Working Group and its assessment and 
alignment of resources in the delivery of counter-terrorism 
financing training and technical assistance abroad. The 
Committee will also monitor FinCEN and its coordination with 
Egmont as our nation's foreign intelligence unit (FIU).
    U.S. Oversight Over the International Financial 
Institutions (IFIs). The Committee will review U.S. 
participation in, and the effectiveness of U.S. policy toward, 
the International Financial Institutions, including the 
International Monetary Fund, the World Bank, and the regional 
development banks.
    The Committee will continue to press for increased 
accountability, openness and transparency within the 
multilateral institutions. The Committee will examine the 
importance of public participation in these institutions as a 
critical component of effective development and growth, which 
includes access to information and documents, as well as 
increased consultation with civil society in the development of 
the institutions' social and environmental safeguard policies.
    The Committee will examine the role of trade, investment 
and private sector activity in helping to promote growth and 
reduce poverty. It will also explore the essential role of the 
state in addressing market excesses and in helping to assure 
that the gains of economic growth are more fairly distributed 
throughout society.
    The Committee will continue to closely examine the World 
Bank's policies and operations in areas relating to labor 
markets, extractive industries and the expanded collaboration 
between IDA and the World Bank's private sector affiliate, the 
International Finance Corporation. With regard to labor market 
and employment policies, the Committee will continue to closely 
examine the ``Employing Workers'' and ``Paying Taxes'' indices 
of the World Bank's annual ``Doing Business'' report, and their 
implications with regard to the ability of countries to comply 
with the labor standards and conventions of the International 
Labor Organization and to maintain adequate social safety nets. 
With regard to extractive industries, the Committee will 
continue to examine standards and policies of revenue 
transparency that can help ensure that citizens in resource-
rich countries benefit from the sale of these resources.
    With regard to enhanced collaboration between the IDA and 
IFC, the Committee will examine how recipient countries can 
maintain an appropriate role for the state as these 
institutions expand the role of the private sector in 
development.
    Replenishment of the International Development Association 
(IDA) and the African Development Fund (AfDF). The Committee 
will work to enact legislation authorizing U.S participation 
in, and the commitment of U.S. funds for, the IDA-15 and AfDF-
11 replenishments requested by the Administration.
    Replenishment of the Asian Development Fund. The Committee 
will consider legislation to authorize the commitment of U.S. 
funds for the 10th replenishment of the Asian Development Fund. 
In considering the authorization of this replenishment, the 
Committee will consider the degree to which the current Asian 
Development Bank's Safeguard Policy Update exercise preserves 
or strengthens the social and environment policies of the 
institution.
    International Debt Relief. For many years, this Committee 
has worked in a bipartisan way on the issue of debt relief for 
the world's poorest countries as an essential component in the 
overall effort to help alleviate the desperate poverty and 
misery that exists in many parts of the world. Following House 
passage of the ``Jubilee Act for Responsible Lending and 
Expanded Debt Cancellation'' in the 110th Congress, the 
Committee will evaluate the need for expanded debt cancellation 
to eligible low-income countries and will continue to examine 
the extent to which economic and policy conditionality has 
negative consequences, such as deepening poverty, degrading the 
environment, and reducing the policy flexibility required for 
governments to respond to national interests as conveyed 
through democratic processes. In addition, in light of the 
findings of a recent GAO report on debt relief, the Committee 
will examine the ways in which poverty alleviation through debt 
relief is measured, as well as the impact of U.S. arrearages to 
IDA on funding for debt relief.
    The Committee will closely monitor the dire economic 
situation facing the people of Haiti and will consider 
appropriate policy responses to help alleviate one of the worst 
cases of human misery in the hemisphere.
    Institutionalizing Democratic Accountability at the IFIs. 
Because international economic institutions like the World Bank 
are at some distance from direct democratic accountability, the 
Committee will begin to examine ways to increase democratic 
participation and accountability within the IFIs. Based on 
their charters, the international financial institutions are 
accountable to the finance ministers of member countries, who 
may not always be impartial representatives of the people. The 
Committee will be calling on experts to undertake a study of 
various options to improve parliamentary oversight, including 
the possibility of forming an international parliamentarian 
committee, which would include both donor and recipient 
countries, before which officials of the IMF and World Bank 
could appear to review their institution's agendas and 
procedures.
    Sudan Accountability and Divestment Act. The Committee will 
hold a hearing to look at the degree to which the Sudan 
Accountability and Divestment Act of 2007 has affected the 
decisions of individual states and private asset fund managers 
to divest Sudan-related assets from their portfolios as a way 
of pressuring the government of Sudan to end its systematic 
atrocities against the people in the Darfur region.
    Strengthening Sanctions Against Iran. Following House 
passage of the ``Iran Sanctions Enabling Act'' in the 110th 
Congress, the Committee will assess the need to step up 
financial pressures on Iran including proposals to remove 
certain legal barriers to make it easier for state and local 
pension funds and other asset managers to divest their funds 
from Iranian investments should they choose to do so.

         The Economy, Domestic Monetary Policy, and Technology

    The Economy and Its Impact on Living Standards. The 
Committee will examine the extent to which changes in the 
economy, and in particular changes in labor and capital 
markets, as well as changes in public policy, have altered the 
way in which policymakers should think about the relationship 
between economic growth, productivity growth, and growth in 
employment and incomes. The Committee will examine these 
relationships in an effort to determine policy responses that 
will increase our ability to improve the standard of living for 
American families. The Committee will examine the consequences 
of taking unprecedented monetary and fiscal policy moves 
simultaneously in an effort to stimulate new economic growth, 
and attempt both to determine the consequences of such moves 
and to discover actions that might be taken to avoid any severe 
negative effects.
    Conduct of Monetary Policy by the Board of Governors of the 
Federal Reserve System. The Committee will hold hearings to 
receive the Chairman of the Board of Governors of the Federal 
Reserve System'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, including whether the current path of monetary policy 
is consistent with the triple goals--maximum employment, stable 
prices, and moderate long-term interest rates--set forth in the 
Federal Reserve Reform Act of 1977 (Public Law 95-188). The 
Committee will continue to monitor the Federal Reserve Board to 
see if ways can be found to make its activities more 
transparent, consistent with the increased transparency the 
institution has shown over the past decade and a half.
    Management of 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, its 
conduct of monetary policy, and its role as a regulator with 
particular attention to compliance with anti-money laundering 
and anti-terrorist financing laws and regulations.
    Defense Production Act. The Committee will act on 
legislation to reauthorize the Defense Production Act (DPA) 
before its expiration in 2009. As part of this effort, the 
Committee will consider the effectiveness of the DPA 
authorities in promoting national security. The Committee's 
review of DPA will consider the findings and recommendations of 
the Government Accountability Office's June 2008 report, 
``Defense Production Act: Agencies Lack Policies and Guidance 
for Use of Key Authorities,'' as well as the April 2008 
interagency report that was mandated by the 9/11 Commission Act 
of 2007. Committee action on DPA will also include 
consideration of defense contract offsets and their impact on 
the U.S. economy.
    Committee on Foreign Investment in the United States. The 
Committee will monitor the implementation of the Foreign 
Investment and National Security Act of 2007, which reformed 
the Committee on Foreign Investment in the United States 
(CFIUS). The Committee will closely monitor CFIUS actions to 
seek to ensure that foreign investments that pose legitimate 
threats to national security are either rejected or the threats 
are effectively mitigated. The Committee will also monitor the 
extent to which the United States maintains a policy of 
openness toward foreign investment, so that investments that 
pose no threat to national security are able to go forward.
    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 minting of 
U.S. currency and coins, and of the operation of U.S. Mint 
programs for producing Congressionally authorized commemorative 
coins and Congressional gold medals. The Committee will examine 
methods to reduce the cost of minting coins through the use of 
alternative metals. The Committee will examine efforts to make 
currency more accessible to the visually impaired. The 
Committee will continue its review of efforts to detect and 
combat the counterfeiting of U.S. coins and currency in the 
United States and abroad.
    The U.S. Treasury Department's Financial Crimes Enforcement 
Network (FinCEN). The Committee will continue to oversee the 
operations of FinCEN and the Bureau's ongoing efforts to 
implement its regulatory mandates pursuant to the Bank Secrecy 
Act (BSA), as amended, to fight against money laundering and 
terrorist financing activities. The Committee will examine the 
filing process of Suspicious Activity Reports (SARs) and 
Currency Transaction Reports (CTRs) with the Bureau, including 
the utility of the forms, electronic filing, organizational 
structure of the filing process, and burden to financial 
institutions in filing these reports. The Committee will 
examine means to reduce the burden on financial institutions in 
complying with BSA regulations, while maintaining the utility 
of the material gathered by these filings to law enforcement. 
The Committee will examine the protections for consumer privacy 
in the filing of these BSA reports and the sharing of this 
sensitive information among the agencies and law enforcement 
entities that utilize this data. The Committee will examine the 
guidance issued by FinCEN to BSA examiners to foster more 
uniform examination and enforcement practices. The Committee 
will examine the balance of responsive work and analytical work 
performed by FinCEN and their relative benefit to law 
enforcement. The Committee will oversee FinCEN's efforts to 
implement a statutory provision in section 6302 of the 
Intelligence Reform and Terrorism Prevention Act of 2004 
(Public Law 108-458), that required the Treasury Secretary to 
certify the benefit of certain cross-border electronic 
transfers to law enforcement, compared to the related cost to 
financial institutions and the government, before issuing 
regulations requiring financial institutions to report certain 
cross-border electronic transfers to FinCEN.
    Treasury's Office of Foreign Asset Control (OFAC). The 
Committee will continue to monitor the functions of OFAC as its 
workload increases, and study ways of improving its working 
relationship with financial institutions.
                                 Part B


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

                              ----------                              


                         Financial Institutions

    Troubled Asset Relief Program (TARP) and other Initiatives 
to Stabilize the Financial System. 
    TARP implementation and oversight reports: The Treasury 
Department has issued--as required by Sec. 105(a) of the 
Emergency Economic Stabilization Act of 2008 (EESA, P.L. 110-
343)--monthly reports to Congress on the status of promoting 
financial stability (http://www.financialstability.gov/latest/
reportsanddocs.html). EESA also established a regulatory 
framework for overseeing the implementation of the program. 
EESA created the Congressional Oversight Panel (COP) and the 
Special Inspector General for TARP (SIGTARP). It also 
established new audit and oversight duties for the Government 
Accountability Office (GAO). The multiple layers of oversight 
included in EESA were designed to ensure effective oversight, 
accountability, and transparency. COP (http://cop.senate.gov/), 
SIGTARP (http://www.sigtarp.gov/) and GAO (http://www.gao.gov/
docsearch/featured/financialmarketsandhousing.html) have 
produced thousands of pages of oversight reports, audits and 
investigations to ensure taxpayers are fully protected. 
Committee staff was regularly briefed by these TARP oversight 
entities on the details and findings of these reports.
    TARP oversight hearings: The Subcommittee on Oversight & 
Investigations (O&I) has conducted four hearings specifically 
on TARP oversight. The O&I Subcommittee held its first hearing 
entitled, ``A Review of TARP Oversight, Accountability and 
Transparency for U.S. Taxpayers'' on February 24, 2009. The 
Subcommittee heard from Neil Barofsky, the Special Inspector 
General for TARP (SIGTARP), Professor Elizabeth Warren who 
chaired the Congressional Oversight Panel for TARP, and Acting 
Comptroller General Gene Dodaro of the Government 
Accountability Office. Mr. Barofsky urged Congress to give 
SIGTARP more authority and staff to better track all the TARP 
funds. After the hearing, Chairman Moore filed H.R. 1341 with 
Ranking Member Biggert to do that, and the House approved the 
Senate version of the bill on March 25, 2009, with a unanimous 
423-0 vote. The measure was enacted into law on April 24, 2009 
(P.L. 111-15). The legislation has strengthened the SIGTARP's 
hiring authority and other enforcement powers to provide 
vigorous oversight of the $700 billion TARP program.
    In its work overseeing the implementation of TARP, the O&I 
Subcommittee has focused several of its hearings on the warrant 
repurchasing process. When TARP recipient repays its original 
Capital Purchase Program (CPP) investment, they have the right 
to repurchase its warrants at an agreed up on fair market 
value. This is done through direct negotiations with Treasury, 
which has established a multiple step process to value the 
warrants before they agree to sell them. If an institution 
decides not to repurchase its warrants, Treasury has indicated 
a preference to sell the warrants to a third party through a 
public auction.
    On June 2, 2009, Chairman Moore wrote Treasury Secretary 
Geithner regarding concerns that: ``financial institutions that 
have received TARP funds are lobbying to buy back warrants the 
U.S. government received for providing taxpayer assistance at a 
reduced or minimal value. I strongly urge you to utilize your 
authority to maximize the best deal for taxpayers.'' On July 
22, 2009, the Subcommittee held its second TARP oversight 
hearing entitled ``TARP Oversight: Warrant Repurchases and 
Protecting Taxpayers''. TARP's new administrator, Herb Allison, 
testified on the status of the TARP, as well as issues 
surrounding the repurchasing of TARP warrants by banks. 
Professor Warren discussed COP's July report focused on 
maximizing taxpayer returns in the warrant repurchasing 
process. The day of the hearing, Goldman Sachs announced an 
agreement with Treasury to repurchase their TARP warrants for a 
higher-than-expected $1.1 billion, marking a new trend of 
higher returns for taxpayers.
    The O&I Subcommittee's third TARP oversight hearing, 
entitled ``Utilizing Technology to Improve TARP and Financial 
Oversight'', was held on September 17, 2009. The hearing 
focused on the role of technology in efforts to provide 
transparency and accountability for programs, such as TARP, and 
using technology to ensure federal agencies provide strong, 
coordinated oversight of financial services activity. Rep. 
Carolyn Maloney's TARP database and monitoring bill, H.R. 1242, 
was noted as a good idea to improve TARP transparency. The 
House approved H.R. 1242 on December 2, 2009. A week later, the 
Treasury Department announced an open government plan to ``to 
increase transparency in government and maintain accountability 
of taxpayer dollars''. This included a new commitment by the 
Office of Financial Stability to release a TARP Transaction 
Report for every new TARP transaction including investments 
made and funds repaid. In an effort to make the reports user-
friendly, they would be made available in XML format for easy 
sorting of data.
    The fourth O&I TARP oversight hearing, entitled ``TARP 
Oversight: An Update on Warrant Repurchases and Benefits to 
Taxpayers'' was held on May 11, 2010. The O&I Subcommittee 
received a SIGTARP audit focused on the TARP warrants program. 
Witnesses included Treasury and other experts reviewing the 
benefits taxpayers reaped from the TARP warrants program. One 
academic witness testified that ``oversight works'' with 
respect to TARP, and both SIGTARP and COP agreed that the TARP 
warrants program generally succeeded.
    As a result of the Committee's oversight efforts with 
respect to the TARP warrant repurchasing program, this program 
has generated over $7 billion of extra returns for taxpayers 
with even more expected, in addition to over $200 billion of 
repayments of the initial TARP investment as of November 2010.
    Lessons from the financial crisis and fraud prevention 
efforts: On June 18, 2009, the O&I Subcommittee held a hearing 
entitled: ``Strengthening Oversight and Preventing Fraud in FHA 
and other HUD Programs.'' HUD's Inspector General, Kenneth 
Donohue, and other housing experts discussed combating fraud in 
the housing and mortgage market. The hearing focused on FHA, 
the importance of independent appraisals and the need for 
adequate resources at HUD to mitigate waste, fraud and abuse. 
Chairman Moore joined Judiciary Committee Chairman John Conyers 
as a sponsor of the Fight Fraud Act, which the House approved 
on May 6, 2009, by a vote of 367-59, giving the HUD IG more 
resources to combat financial and mortgage fraud. The measure 
was enacted into law two weeks later (P.L. 111-21), and also 
included the establishment of a bipartisan Financial Crisis 
Inquiry Commission, which is authorized to investigate the 
financial crisis and issue a report to Congress on December 15, 
2010.
    Financial Supervision. OTS backdating of capital infusions: 
The Oversight & Investigations Subcommittee held a hearing on 
May 5, 2009, entitled ``The Role of Inspectors General: 
Minimizing and Mitigating Waste, Fraud and Abuse.'' This 
hearing focused on the work of the Inspectors General (IGs) at 
Treasury, Federal Reserve and FDIC, in particular the concern 
the IGs have that mandated Material Loss Reviews (MLR) are 
overloading their resources, preventing them to investigate 
other high priority concerns to expose waste, fraud and abuse. 
During the hearing, the Treasury Inspector General indicated 
that in an investigation, they found that a senior Office of 
Thrift Supervision (OTS) official approved a capital 
contribution to be backdated to a previous quarter so that 
IndyMac would maintain its well-capitalized position for that 
quarter. Less than four months later, IndyMac failed. Through 
additional work by the IG's office, they learned that OTS 
permitted, and in one case directed, other thrifts to backdate 
capital contributions. As a result of their inquiry, OTS 
removed the senior official involved with the IndyMac backdated 
capital contribution. That individual has since retired from 
federal service. As a result of another backdating episode, the 
one directed by OTS, the responsible OTS official was placed on 
administrative leave pending a departmental review. Following 
the hearing, on May 21, 2009, the Treasury IG issued a report 
with their full findings of their investigation entitled 
``SAFETY AND SOUNDNESS: OTS Involvement With Backdated Capital 
Contributions by Thrifts'' (OIG-09-037). That same day, Rep. 
Dennis Moore wrote the OTS Acting Director, John Bowman, about 
the IG's investigation including a question about why the 
former Acting Director of OTS had not been terminated given the 
findings of the report. Less than a month later, the OTS 
official elected to retire. On July 8, 2009, OTS Acting 
Director Bowman wrote back with a detailed response, and OTS 
staff provided Committee staff a briefing explaining what 
corrective steps the agency has taken to prevent this kind of 
capital infusion backdating to be tolerated.
    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, but not limited to, disparate interpretations and 
applications of individual States' laws related to national 
banks, Federal thrifts and their affiliates or subsidiaries, 
marketing tactics, rising fees, and penalties on credit card, 
payday, mortgages and other consumer loans, unfair or deceptive 
acts or practices such as foreclosure rescue scams, the use of 
credit reports to change the rates and terms of preexisting 
accounts, to ensure that the financial services industry 
fulfills its responsibility to treat its customers fairly and 
fully disclose the terms on which financial products and 
services are offered to the public. The Committee will also 
consider industry practices with respect to overdraft 
protection programs, deposit hold periods, and other fees.
    Data Security and Identity Theft. Building on the 
Committee's long-standing role in developing laws governing 
companies' handling of sensitive personal financial information 
about consumers, including the Gramm-Leach-Bliley Act and the 
Fair and Accurate Credit Transactions Act (FACT Act), the 
Committee will continue to seek legislation that better 
protects the security and confidentiality of such information 
from any loss, unauthorized access, or misuse. The Committee 
will also monitor major data security breaches at government 
agencies to ensure that personal financial information is 
properly safeguarded and that the affected individuals receive 
prompt notification where that is appropriate.
    Implementation of FACT Act. On October 2, 2009, the 
Committee considered H.R. 3763, a bill to amend the Fair Credit 
Reporting Act (FCRA) to exempt health care, accounting or legal 
practices with twenty employees or fewer as well as other 
businesses meeting certain criteria from having to comply with 
Federal Trade Commission's (FTC) Red Flags rule. While the 
House passed H.R. 3763 by a vote of 400 to 0 on October 20, 
2009, no action on that bill was taken in the Senate. On 
October 29, 2009, Chairman Barney Frank, along with Ranking 
Member Spencer Bachus and Representatives Mike Simpson, John 
Adler, Paul Broun, Chris Lee, and Daniel Maffei wrote to the 
FTC to request it delay enforcement of the Red Flags rule to 
give the Senate sufficient time to act on the matter. The full 
House passed a revised bill to H.R. 3763, S. 3987, the (Red 
Flag Program Clarification Act of 2010, (on December 7, 2010, 
that will exempt creditors from having to comply with the rule 
to those that: (1) obtain or use consumer reports in connection 
with a credit transaction; (2) furnish information to consumer 
reporting agencies in connection with a credit transaction; (3) 
advance funds to or on behalf of a person based on an 
obligation of the person to repay the funds or are repayable 
from specific property pledged by or on behalf of the person. 
S. 3987 was presented to the President for signature on 
December 9, 2010, and became P.L. 111-319 on December 18, 2010.
    The Committee continued to monitor the use of credit scores 
by lenders in assessing consumers' creditworthiness in 
determining whether credit is extended to them and on what 
terms. In order to obtain more information on consumers' 
awareness of and ability to understand how creditors are using 
creditor scores, the Committee included a provision under 
Section 1078 of the Dodd-Frank Act directing the CBPB to 
conduct a study and report back to Congress within one year on 
the nature, range, and size of variations between the credit 
scores sold to creditors and those sold by consumers on a 
nationwide basis, and whether such variations disadvantage 
consumers.
    The Committee also supported a provision under Section 
1100F, which will require creditors to provide consumers with a 
free credit score, along with at least four factors that have 
negatively impacted the score, as part of adverse action and 
risk-based pricing notices under the FCRA. These notices are 
used to alert consumers when the use of their credit 
information by creditors has resulted in them either being 
denied credit or receiving credit on materially less favorable 
terms than a substantial portion of other consumers.
    Mortgage Lending. In April 2008, the Committee asked the 
Government Accountability Office (GAO) to conduct a 
comprehensive review of the current state of Federal 
enforcement of the Fair Housing Act (FHA) and other fair 
lending statutes. In response to this request, GAO issued a 
report in July 2009 entitled, ``FAIR LENDING: Data Limitations 
and the Fragmented U.S. Financial Regulatory Structure 
Challenge Federal Oversight and Enforcement Efforts'' (GAO-09-
704). GAO recommends in the report that Congress consider 
options to expand the data available to detect potential fair 
lending violations such as, requiring certain lenders to report 
additional data under the Home Mortgage Disclosure Act (HMDA). 
The Committee reviewed the GAO report, and passed several 
provisions under the Dodd-Frank Act to try to enhance Federal 
oversight and enforcement of fair lending laws, including: (1) 
establishing an Office of Fair Lending and Equal Opportunity 
within the CFPB to ensure the fair, equitable, and 
nondiscriminatory access to credit for both individuals and 
communities and (2) requiring lenders to collect and publicly 
report additional data fields under HMDA.
    Deposit Insurance Reform. The Committee will monitor the 
implementation of the Deposit Insurance Reform Act of 2005 and 
the Federal Deposit Insurance Reform Conforming Amendments Act 
of 2005, to ensure that deposit insurance continues to serve 
its historic function as a source of stability in the banking 
system and a valued safety net for depositors. During the 
consideration of the Emergency Economic Stabilization Act, 
deposit insurance coverage for banks and credit unions was 
expanded from $100,000 per account to $250,000. This was 
particularly important for small businesses, which rely on 
their bank deposits to meet payroll and other critical needs. 
The increase will ensure that they have access to their working 
capital at all times, and discourage them from moving funds due 
to concerns about a particular institution. According to the 
Federal Reserve, for the smallest businesses (less than 10 
employees, which are 80 percent of small businesses, raising 
the limit will have a major impact: 75 percent fewer firms will 
have uninsured deposits and the amount of their deposits 
remaining uninsured will fall by two-thirds. The insurance 
increase also gives small banks greater parity with the 
temporary money market fund insurance recently implemented by 
the Treasury Department. This will help keep deposits in banks 
and promote their stability. The Committee will monitor the 
implementation and effects of this expansion.
    Credit Unions. The Committee reviewed issues relating to 
the conversion policies and procedures, safety and soundness 
and regulatory treatment of the credit union industry in the 
111th Congress. The Committee also continued its support of the 
lifting of the statutory borrowing cap on the Central Liquidity 
Fund of the National Credit Union Administration (NCUA) and 
continued to monitor the fund's ability to meet the liquidity 
needs of credit unions.
    In addition, the Committee worked to enact deposit 
insurance reform legislation (S. 896) that contained provisions 
to enhance the liquidity and stability of insured depository 
institutions to ensure the availability of credit and reduce 
foreclosures. Specifically, S. 896 extended through 2013 the 
temporary increase in deposit insurance coverage for both the 
FDIC Deposit Insurance Fund and the National Credit Union Share 
Insurance Fund (NCUSIF) to $250,000 (the temporary increase was 
currently scheduled to sunset on December 31, 2009). The Dodd-
Frank Act made this extension permanent.
    In addition, S. 896 provides the FDIC and the NCUA an 
increase in Treasury borrowing authority and contains the 
Corporate Credit Union Stabilization Fund, a fund separate from 
the NCUSIF, first proposed by the NCUA to allow credit unions 
to spread the entire cost of replenishing the losses 
experienced by the conservatorship of several corporate credit 
unions over a seven-year period. Representatives Paul E. 
Kanjorski, Luis V. Gutierrez, and Ed Royce, among others, 
introduced this plan in the House as H.R. 2351, the Credit 
Union Share Insurance Stabilization Act. The Subcommittee on 
Financial Institutions and Consumer Credit convened a hearing 
to examine H.R. 2351 on May 20, 2009. Witnesses at the hearing 
included Federal and State regulators, as well as credit union 
executives.
    The Dodd-Frank Act also preserved the independent credit 
union charter, and ensured that small banks and credit unions, 
which play a key role in their communities, and were not the 
cause of the subprime crisis, are not subject to undue 
regulatory burdens. In addition, credit unions under $10 
billion in assets will continue to have their consumer 
protection examinations done by their existing regulators. 
Moreover, the law provides the NCUA Chairman with a seat on the 
Financial Stability Oversight Council.
    Finally, the Committee explored opportunities for credit 
unions to advance economic growth by increasing member business 
lending, including proposals like H.R. 3380, the Promoting 
Lending to America's Small Businesses Act of 2009, introduced 
by Representatives Kanjorski and Royce. Participants from the 
credit union movement testified at Committee hearings on 
February 26, 2010, and May 18, 2010, entitled ``Condition of 
Small Business and Commercial Real Estate Lending in Local 
Markets'' and ``Initiatives to Promote Small Business Lending, 
Jobs and Economic Growth,'' respectively.
    Regulatory Burden Reduction. The Committee continued to 
review the current regulatory burden on banks, thrifts and 
credit unions. As a result of the Committee's work, the Dodd-
Frank Act ensured that credit unions with less than $10 billion 
in assets will continue to have their consumer protection 
examinations done by their existing regulators. That law also 
included provisions that were previously introduced in various 
regulatory relief bills, including the removal of the 
prohibition on paying interest on demand deposits, and reducing 
the hurdles or prohibitions to banks establishing de novo 
interstate branches.
    Reps. Erik Paulsen, Dennis Moore and Peter Roskam 
introduced the Eliminate Privacy Notice Confusion Act in 2009, 
H.R. 3506. In the 110th Congress, this legislation was included 
in the Credit Union, Bank and Thrift Regulatory Relief Act, 
which the House approved but the Senate did not consider. H.R. 
3506 would help minimize confusion consumers have about their 
privacy rights regarding two conflicting provisions of two 
prior laws. The Fair Debt Collection Practices Act specifically 
prohibits subject companies from sharing personal information 
with third parties. Yet the Gramm-Leach-Bliley Act still 
requires these firms to provide annual privacy notices that 
allow consumers to opt out of having their information shared 
with third parties. Since this practice is already prohibited 
by law, these annual notices only confuse the consumers that 
receive them. H.R. 3506 was approved by the House on April 14, 
2010, by voice vote.
    Remittances. The Committee continued its review of the 
marketing and disclosure practices of financial institutions 
and money transmitters who offer international remittance 
services to consumers seeking to send funds to relatives in 
other countries, enacting significant reforms to this area as 
part of the Dodd-Frank Act.
    Payment System Innovations. The Committee will review 
government and private sector efforts to achieve greater 
innovations and efficiencies in the payments system. The 
Committee will continue to assess the appropriateness of the 
current maximum hold periods and dollar amount limits provided 
under the Expedited Funds Availability Act. The Committee will 
also review improvements to the payments system, including ACH 
debit entries, wire transfers, and international remittances.
    Internet Gambling. The Committee continued to examine the 
implications of the Unlawful Internet Gambling Enforcement Act 
(UIGEA) and the level of unreasonable compliance burdens 
imposed on financial institutions by the final regulations 
issued by the Treasury Department and Federal Reserve, in 
consultation with the Justice Department. Legislation which 
would have prevented the implementation of these regulations 
was ordered reported by the Committee in the 110th Congress 
after such a measure had once been defeated. Multiple hearings 
were held in this Congress on these regulations, as well as the 
legislation that would protect consumers by licensing and 
regulating internet gambling, and this legislation, H.R. 2267 
was reported out of Committee on July 28, 2010, and the report 
was filed on September 29, 2010 (H. Rept. 111-656 part I).
    Access to Financial Services. The Committee will continue 
to explore ways to expand access to mainstream financial 
services by traditionally underserved segments of the U.S. 
population, particularly those without any prior banking 
history (commonly referred to as ``the unbanked''). One area of 
review will be an assessment of the Treasury Department's First 
Accounts Program--a grant program intended to provide financial 
services to low- and moderate-income Americans without bank 
accounts.
    Credit Card Regulation. On April 22, 2009, the Committee 
ordered reported H.R. 627, the ``Credit Cardholders' Bill of 
Rights Act of 2009.'' The bill would prohibit certain unfair 
and deceptive credit card practices and provides consumers with 
tools to manage their credit card debt responsibly. The bill 
passed the House on April 30, 2009 and passed the Senate 
amended on May 19, 2009. The House concurred in the Senate 
amendment on May 20, 2009, and this bill was signed into law on 
May 22, 2009.
    On October 26, 2009, the Committee approved H.R. 3639--
Expedited CARD Reform for Consumers Act of 2009. H.R. 3639 
would accelerate the implementation of certain provisions in 
existing law related to the regulation and operations of the 
credit card industry. The Credit Card Accountability 
Responsibility and Disclosure Act of 2009 (H.R. 627) set 
deadlines for implementing various reforms and procedures, with 
most of those measures scheduled to take effect in February and 
August of 2010. This bill would change those effective dates to 
December 1, 2009, subject to exemptions for entities that issue 
prepaid gift cards and depository institutions (such as banks 
and credit unions) with less than 2 million credit cards in 
circulation
    Community Development Financial Institution Fund. On March 
9, 2010, the Committee held a hearing entitled, ``Community 
Development Financial Institutions (CDFIs): Their Unique Role 
and Challenges Serving Lower-Income, Underserved and Minority 
Communities.'' Witnesses included representatives of the 
Treasury Department and the range of CDFIs, including community 
development banks, credit unions and loan funds. The hearing 
examined the state of CDFIs, especially in light of the 
economic downturn, the communities they serve and their unique 
needs and demands.
    The CDFI Fund received $100 million as part of the Recovery 
Act, which the Committee supported. In addition, the committee 
sent letters to the leadership of the Appropriations Committee 
requesting an increase in overall funding for the CDFIs various 
programs to $300 million for FY 2011. Additionally, the 
Committee sent letters to the Treasury Department requesting 
that CDFIs receive assistance under the TARP program. In 
connection with those efforts, the Treasury Department 
announced the Community Development Capitalization Initiative 
(CDCI) which lends to CDFIs at a dividend rate of 2 percent for 
up to eight years. So far, the program has served 84 
institutions. As part of the Small Business Jobs Act of 2010, 
there were two initiatives that will be run by the CDFI Fund. 
First, the Small Business Lending Facility sets aside 1 
percent, or up to $300 million, in lending authority for low 
cost loans to community development loan funds. This program 
parallels the CDCI program for community development banks and 
credit unions under TARP. Programs must be certified to qualify 
and their activities must be targeted to small business 
lending. Secondly, that law creates CDFI Bond Guarantee program 
for community and economic development. These bonds will be a 
source of long-term capital for CDFIs which can be sold in 
capital markets.
    The committee continues to explore the connections between 
CDFIs and the New Markets Tax Credit (NMTC) program, 
coordinating these efforts with the Ways and Means Committee, 
which has primary jurisdiction over the tax portion of this 
program run out of the CDFI Fund.
    Community Reinvestment Act of 1977. The Committee held a 
hearing entitled ``Proposals to Enhance the Community 
Reinvestment Act'' on September 16, 2009. The hearing explored 
recommendations for updating CRA to make it more effective in 
light of changes in the financial services sector. On September 
29, 2010, Committee members introduced H.R. 6334, ``The 
American Community Reinvestment Reform Act of 2010,'' which 
would reform and enhance the Community Reinvestment Act.
    Credit Counseling. The Committee will continue to review 
the credit counseling industry which provides financial 
education and debt management services to consumer seeking to 
address excessive levels of personal indebtedness. A particular 
focus will include examining complaints regarding abusive and 
deceptive practices by some for-profit industry groups.
    Financial Literacy. The Committee enacted a series of 
measures designed to improve and expand financial literacy and 
access to financial services. Specifically, as part of Title 
XII of the Dodd-Frank Act, the Bank On USA program was 
authorized to bring unbanked residents into the financial 
mainstream by offering financial services and education to help 
underserved people save and build assets through grants to 
financial institutions. Additionally, Title XII created the 
Small Dollar Consumer Loan program. This program, pending 
funding through the appropriations process, would enable 
entities to offset their loan loss reserve funds to mitigate 
the risk of offering small dollar (under $2,500) loans to 
customers at low interest rates as an alternative to pay day 
loans. Finally, Congress established the Office of Financial 
Education as part of the new Consumer Finance Protection Bureau 
which will be a clearinghouse of research, education and 
program guidance for organizations nationwide which are 
interested in providing financial literacy programs in their 
communities. In addition, the committee will continue to 
monitor the activities of the Financial Literacy and Education 
Commission (FLEC), coordinated by the Treasury Dept.
    The O`I Subcommittee held a field hearing in Lawrence, 
Kansas, on August 24, 2010, to focus on the question: 
``Empowering Consumers: Can Financial Literacy Education 
Prevent Another Financial Crisis?'' The Subcommittee examined 
what kinds of programs have worked well in promoting greater 
financial literacy. The hearing focused on the recent financial 
crisis, and what lessons should be learned in terms of what 
role financial literacy should play in a safer, more stable 
financial system, including examining how best to coordinate 
efforts, and utilizing limited resources most efficiently to 
increase access to quality financial education for all people. 
Also discussed were several key provisions included in the 
Dodd-Frank Act to promote financial literacy, including the 
creation of an Office of Financial Education within the newly 
created Bureau of Consumer Financial Protection.
    Payday Lending. The Dodd-Frank Act included provisions 
specifically subjecting payday lenders to the authority of the 
Consumer Financial Protection Bureau.
    Discrimination in Lending. In order to combat any issues in 
discrimination in lending going forward, under Section 1014 of 
the Dodd-Frank Act, the Committee pushed to ensure the 
membership of the Consumer Advisory Board within the CFPB 
includes experts on fair lending and civil rights, consumer 
financial products or services and representatives of 
depository institutions that primarily serve underserved 
communities, and representatives of communities that have been 
significantly impacted by higher-priced mortgage loans.
    Based on many of the recommendations contained in the GAO 
report entitled, ``FAIR LENDING: Data Limitations and the 
Fragmented U.S. Financial Regulatory Structure Challenge 
Federal Oversight and Enforcement Efforts'' (GAO-09-704), under 
Section 1094 of the Dodd-Frank Act, the Committee expanded the 
type of data that lenders will be required to collect and 
report under the HMDA. The new data will provide more specific 
loan pricing information on mortgage loans such as, the total 
points and fees payable at origination in connection with the 
mortgage loan, the difference between the annual percentage 
rate of the loan and a benchmark rate or rates for all loans, 
the actual or proposed term of any introductory period after 
which the interest rate may change, and the actual or proposed 
term of the mortgage loan. The new data will provide more 
transparency on underwriting practices and patterns in mortgage 
lending and help improve the oversight and enforcement of fair 
lending laws.
    In order to ensure the enforcement of fair lending laws for 
borrowers of nonmortgage credit and enable communities, 
governmental entities, and creditors to identify business and 
community development needs and opportunities of women-owned, 
minority-owned, and small businesses, the Committee also pushed 
to require lenders to collect and report data, including 
personal characteristic data, on some business loans. The new 
requirements under Section 1071 of the Dodd-Frank Act are 
based, in part, on concerns raised, and recommendations issued, 
in a GAO report entitled, ``FAIR LENDING: Race and Gender Data 
Are Limited for NonMortgage Lending'' that was released in June 
2008 (GAO-08-698).
    Diversity in Financial Services. The Committee continued to 
monitor the workforce diversity within the financial services 
industry, particularly at the management level, and steps that 
the industry has taken to try to promote diversity. Based on 
findings from a GAO report entitled, ``FINANCIAL SERVICES 
INDUSTRY: Overall Trends in Management-Level Diversity and 
Diversity Initiatives, 1993-2004'' issued in June 2006 (GAO-06-
617) and follow-up research from the GAO discussed in written 
testimony in February 2008 (GAO-08-445T) and in May 2010 (GAO-
10-736T), the Committee supported the creation of Offices of 
Minority and Women Inclusion (Offices) under Section 342 of the 
Dodd-Frank Act at several Federal financial services agencies, 
including the Board of Governors of the Federal Reserve system, 
the Federal Housing Finance Agency, each of the Federal Reserve 
banks, the National Credit Union Administration, the Office of 
the Comptroller of the Currency, and the CFPB. The directors of 
these Offices will be responsible for: (1) developing standards 
for equal employment opportunities and workforce diversity at 
all levels within each agency; (2) increasing the participation 
of minority-owned and women-owned businesses in the programs 
and contracts of teach agency, including standards for 
coordinating technical assistance to these businesses; and (3) 
assessing the diversity policies and practices of entities 
regulated by each agency.
    The Committee also continued to monitor Federal regulators' 
efforts to promote and preserve minority-owned financial 
institutions. Based in part on recommendations from a GAO 
report entitled, ``MINORITY BANKS: Regulators Need to Better 
Assess Effectiveness of Support Efforts'' issued in October 
2006 (GAO-07-6) and written testimony in October 2007, 
``MINORITY BANKS: Regulators' Assessments of the Effectiveness 
of Support Efforts Have Been Limited'' (GAO-08-233T), the 
Committee supported expanding the requirements under Section 
308 of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 to additional financial services 
agencies, which was accomplished under Section 367 of the Dodd-
Frank Act.
    The Subcommittee on Oversight ` Investigations and 
Subcommittee on Housing and Community Opportunity held a joint 
hearing entitled: ``Minorities and Women in Financial 
Regulatory Reform: The Need for Increasing Participation and 
Opportunities for Qualified Persons and Businesses,'' on May 
12, 2010. The Subcommittees received an update from GAO on the 
level of professional opportunities for women and minorities in 
the financial industry and financial regulatory agencies. 
Subcommittee Chairs Moore and Waters formally requested GAO 
research the matter further and report back to Congress with 
their updated findings.
    Money Laundering and the Financing of Terrorism. The 
Subcommittee on Oversight ` Investigations (O`I) held a series 
of hearings looking at strengthening the federal government's 
efforts in combating terrorism financing and money laundering. 
On April 28, 2010, the O`I Subcommittee held a hearing on 
``Reviewing FinCEN Oversight Reports.'' The Subcommittee 
received an update from the Financial Crimes Enforcement 
Network's (FinCEN) Director and examined oversight reports 
issued by GAO and the Treasury Department's Inspector General 
that looked at FinCEN's efforts with respect to Suspicious 
Activity Reports, Bank Secrecy Act compliance, and anti-money 
laundering. The Treasury Department established FinCEN in 1990 
to provide a government-wide multisource financial intelligence 
and analysis network. FinCEN's operation was later expanded to 
include the responsibilities for administering the Bank Secrecy 
Act.
    The O`I Subcommittee held its second hearing on these 
issues on May 26, 2010, focused on ``Anti-Money Laundering: 
Blocking Terrorist Financing and Its Impact on Lawful 
Charities.'' The Subcommittee reviewed ongoing efforts by the 
Treasury Department to stop the financing of terrorism. The 
hearing focused on various controls, disclosure and decision-
making processes to ensure innocent individuals and charities 
receive due process while efforts to block terrorist financing 
remain robust.
    Another O`I Subcommittee hearing was held on September 28, 
2010, entitled: ``A Review of Current and Evolving Trends in 
Terrorism Financing.'' This hearing focused on a broader 
perspective offered by non-governmental witnesses on the 
current and evolving trends in terrorism financing today. The 
Subcommittee focused on how terrorist organizations continue to 
finance their activities and how these organizations are 
altering their financing techniques to avoid current methods 
exercised by the U.S. government to stem the flow of money to 
terrorists. The Subcommittee reviewed potential vulnerabilities 
in the financial institutions systems of the United States and 
the world that could be exploited by terrorist organizations.
    Committee staff met regularly with staff of FinCEN and 
representatives of financial institutions to discuss the issue 
of the costs of Bank Secrecy Act (BSA) compliance relative to 
the utility of this information to law enforcement and the 
issue of privacy concerns related to the examination and 
storage of personal financial information and BSA reports.
    Money Service Businesses' Access to Financial Institution 
Services. On March 10, 2010, the Subcommittee on Financial 
Institutions and Consumer Credit held a hearing entitled 
``Regulation of Money Service Businesses.'' The hearing 
examined the issue of financial institutions severing their 
ties to money service businesses and included testimony from 
related industry on proposals to reform regulations related to 
money laundering and money service businesses.
    Committee staff met regularly with staff of FinCEN and 
representatives of money service businesses and financial 
institutions to discuss the issue of financial institutions 
severing their ties to money service businesses and proposals 
to reform related regulations.
    New Technologies and Cash Alternatives. On September 28, 
2010, the Subcommittee on Oversight and Investigations held a 
hearing entitled ``A Review of Current and Evolving Trends in 
Terrorism Financing.'' The hearing examined how terrorist 
organizations continue to finance their activities, how these 
organizations have altered their financing techniques to avoid 
current methods exercised by the U.S. Government to stem the 
flow of money to terrorists, and potential vulnerabilities in 
the financial institutions system of the U.S. and the world 
that could be exploited by terrorist organizations.
    Committee staff met regularly with staff of FinCEN and 
representatives of the cash-alternative technology industry to 
discuss potential susceptibility of these technologies to money 
laundering and terrorism financing.
    Appraisals. The Committee continued its work in the 111th 
Congress to protect against appraisal fraud and improve 
appraisal regulation. Specifically, in April 2009 the Committee 
approved and in May 2009 the House passed H.R. 1728, the 
Mortgage Reform and Anti-Predatory Lending Act. Drafted by 
Capital Markets Subcommittee Chairman Paul E. Kanjorski with 
the support of Oversight Subcommittee Ranking Member Judy 
Biggert, Title VI of H.R. 1728 contains the first update of 
Federal appraisal laws in a generation, including provisions to 
improve consumer protection, establish a national appraisal 
independence standard, enhance appraisal licensing standards, 
better State appraisal regulation, and strengthen Federal 
oversight of State appraisal programs, among other things. The 
Kanjorski-Biggert appraisal reforms became law as part of 
Subtitle F of Title XIV of the Dodd-Frank Act. Committee staff 
also reviewed and met with interested parties about the interim 
final appraisal independence rules issued pursuant to the Dodd-
Frank Act by the Federal Reserve.
    On June 18, 2009, the O`I Subcommittee held a hearing 
entitled: ``Strengthening Oversight and Preventing Fraud in FHA 
and other HUD Programs.'' HUD's Inspector General, Kenneth 
Donohue, and other housing experts discussed combating fraud in 
the housing and mortgage market. One of the key issues the 
hearing focused on was appraisal abuse and the importance of 
independent appraisals.

                     Capital Markets and Securities

    Reforming Oversight of Financial Services. The Committee 
considered and reported proposals ultimately incorporated into 
the Dodd-Frank Wall Street Reform and Consumer Protection Act 
of 2010 (Dodd-Frank Act) to reform the regulatory regime for 
the financial services industry, including the U.S. capital 
markets and the securities sector, and to establish a more 
efficient oversight structure. The new structure, for the first 
time, requires monitoring for systemic risks and empowers the 
Federal Government to preemptively rein in and break up too-
big-to-fail, excessively risky and overly concentrated 
financial firms in order to protect the broader economy.
    To identify appropriate reforms, the Committee held 
multiple hearings to consider whether and how best to eliminate 
duplicative oversight functions among agencies, consolidate 
regulatory functions where appropriate, prevent charter 
shopping, and impose oversight of previously unregulated or 
lightly regulated activities, products and market participants. 
The Committee additionally reviewed proposals to combine 
securities and futures regulation, establish appropriate new 
safeguards for investment banking functions, and set uniform 
fiduciary duty standards for broker-dealers and investment 
advisers. The Committee also explored combining the regulation 
of broker-dealers and investment advisers.
    Some of the hearings convened in the 111th Congress by the 
Committee and its Subcommittee on Capital Markets, Insurance, 
and Government Sponsored Enterprises related to exploring 
reforms for financial services regulation included:
           ``Perspectives on Systemic Risk'' on March 
        5, 2009;
           ``Perspectives on Regulation of Systemic 
        Risk in the Financial Services Industry'' on March 18, 
        2009;
           ``Approaches to Improving Credit Rating 
        Agency Regulation'' on May 19, 2009;
           ``Compensation Structure and Systemic Risk'' 
        on June 11, 2009;
           ``A Review of the Administration's Proposal 
        to Regulate the Over-the-Counter Derivatives Market'' 
        on July 10, 2009;
           ``Regulatory Perspectives on the Obama 
        Administration's Financial Regulatory Reform 
        Proposals'' on July 22, 2009 and July 24, 2009;
           ``Reforming Credit Rating Agencies'' on 
        September 30, 2009;
           ``Capital Markets Regulatory Reform: 
        Strengthening Investor Protection, Enhancing Oversight 
        of Private Pools of Capital, and Creating a National 
        Insurance Office'' on October 6, 2009; and
           ``Reform of the Over-the-Counter Derivative 
        Market: Limiting Risk and Ensuring Fairness'' on 
        October 7, 2009.
    As part of this process, the Committee considered and 
favorably reported several bills affecting the regulation of 
securities products and the U.S. capital markets. These bills 
included:
           H.R. 1728, the Mortgage Reform and Anti-
        Predatory Lending Act of 2009, on May 7, 2009;
           H.R. 3269, the Corporate and Financial 
        Institution Compensation Fairness Act of 2009, on July 
        28, 2009;
           H.R. 3795, the Over-the-Counter Derivatives 
        Markets Act of 2009, on October 15, 2009;
           H.R. 3818, the Private Fund Investment 
        Advisers Registration Act, on October 27, 2009;
           H.R. 3890, the Accountability and 
        Transparency in Rating Agencies Act, on October 28, 
        2009;
           H.R. 3817, the Investor Protection Act, on 
        November 4, 2009; and
           H.R. 3996, the Financial Stability 
        Improvement Act, on December 2, 2009.
    The Committee subsequently consolidated these bills into 
one legislative package, and on December 11, 2009, the House 
passed, H.R. 4173, the Wall Street Reform and Consumer 
Protection Act. After convening a conference to reconcile the 
House-passed and Senate-approved financial services regulatory 
reform bills, the House adopted the final version of H.R. 4173 
on June 29, 2010. President Obama subsequently signed the Dodd-
Frank Wall Street Reform and Consumer Protection Act into law 
on July 21, 2010.
    Derivatives and Credit Default Swaps. The Committee and its 
Capital Markets Subcommittee held a series of hearings to 
examine ways to strengthen the regulation of the over-the-
counter derivatives market in order to mitigate systemic risk. 
These hearings included:
           ``The Effective Regulation of the Over-the-
        Counter Derivatives Markets'' on June 9, 2009;
           ``A Review of the Administration's Proposal 
        to Regulate the Over-the-Counter Derivatives Market'' 
        on July 10, 2009; and
           ``Reform of the Over-the-Counter Derivatives 
        Market: Limiting Risk and Ensuring Fairness'' on 
        October 7, 2009.
    To better understand derivatives and the challenges of 
regulating these financial products effectively, staff of the 
Committee and the Capital Markets Subcommittee regularly 
attended meetings and briefings with regulators, market 
participants, and consumer advocates. At these meetings, staff 
gathered background information and received a variety of 
proposals and recommendations on approaches to regulating the 
derivatives markets.
    On October 15, 2009, the Committee convened to mark up H.R. 
3795, the Over-the-Counter Derivatives Markets Act of 2009. The 
bill proposed a comprehensive framework for the regulation of 
swaps and security-based swaps. Subject to certain exceptions, 
it required:
           clearing of swap transactions;
           execution of swap transactions on exchanges 
        or swap execution facilities;
           reporting and recordkeeping of swap 
        transactions;
           registration and oversight of participants 
        in the swap markets, including swap dealers, major swap 
        participants, and designated clearing organizations; 
        and
           compliance with capital and margin levels.
The Committee reported H.R. 3795, as amended, to the House by a 
favorable vote of 43 yeas and 26 nays.
    On November 3, 2009, Chairman Barney Frank also wrote a 
letter to Securities and Exchange Commission Chairman Mary L. 
Schapiro and Commodity Futures Trading Commission Chairman Gary 
Gensler emphasizing the need to ensure that final legislation 
regulating swaps (1) gives regulators, not market participants, 
the authority to determine which swaps are subject to mandatory 
clearing, and (2) limits the trading and clearing exemption to 
bona fide end-users, not speculators masquerading as such.
    H.R. 3795 was ultimately combined and reconciled with H.R. 
977, a derivatives bill reported out of the House Agriculture 
Committee, and the resulting compromise was folded into Title 
III of H.R. 4173, the Wall Street Reform and Consumer 
Protection Act. The House passed H.R. 4173 on December 11, 
2009. Many of those provisions on enhanced regulation of swaps 
and security-based swaps are reflected in Title VII of the 
Dodd-Frank Act, which became law on July 21, 2010.
    Oversight and Restructuring of the Securities and Exchange 
Commission (SEC). The Committee conducted oversight and 
advanced changes to the structure of the SEC in several ways 
during the 111th Congress. For example, on June 9, 2009, 
Capital Markets Subcommittee Chairman Paul E. Kanjorski wrote 
to SEC Chairman Schapiro to discern what initiatives the agency 
planned to take to improve investor protection and restore 
confidence in the financial markets, as well as to identify 
needed legislative changes to the laws governing the U.S. 
capital markets.
    Subsequently, the Capital Markets Subcommittee held a 
hearing on July 14, 2009, to explore these initiatives and to 
examine the operations and organizational structure of the SEC, 
with particular emphasis on its supervisory and inspection 
functions. The hearing also helped inform legislative 
proposals, many of which were ultimately incorporated into 
Title IX of the Dodd-Frank Act.
    Regarding the future structure of the SEC, Section 967 of 
the Dodd-Frank Act requires an organizational study of the 
SEC's operations by an independent consultant of high caliber 
and with expertise in organizational restructuring. The section 
further requires the SEC to report to Congress on a regular 
basis about the agency's efforts to implement the study's 
recommendations.
    Section 991 of the Dodd-Frank Act additionally makes 
changes to the SEC's funding mechanism. Among other things, 
this section builds in flexibility for the SEC for multi-year 
budget authority and addressing unanticipated needs. Like H.R. 
3817 and H.R. 4173, which passed the Committee and the House, 
respectively, the Dodd-Frank Act authorizes a graduated 
doubling of authorized funding levels for the SEC between 
Fiscal Years 2011 and 2015.
    The Capital Markets Subcommittee held an additional 
oversight hearing on July 20, 2010, to evaluate the status of 
the initiatives and reforms implemented by the SEC and to 
ascertain plans to implement the legislative mandates included 
in the Dodd-Frank Act, including the promulgation of more than 
90 rules by the SEC and the creation of several new offices 
within the SEC related to credit rating agencies, municipal 
securities, and an investor advocate, among others.
    Securities Fraud. The Committee and its Capital Markets 
Subcommittee responded to the SEC's failure to detect the $65 
billion Ponzi scheme orchestrated by Mr. Bernard L. Madoff, as 
well as other sizable securities frauds in the wake of the 
financial crisis of 2008 and 2009, by holding high-profile 
hearings. Prior to the formal organization of the Committee, 
the Committee first met to hear from witnesses at a meeting 
entitled ``Assessing the Madoff Ponzi Scheme and the Need for 
Regulatory Reform,'' on January 5, 2009. Insights gleaned from 
these proceedings resulted in a subsequent hearing of the 
Capital Markets Subcommittee on February 4, 2009, entitled 
``Assessing the Madoff Ponzi Scheme and Regulatory Failures.'' 
In combination these hearings informed the work of the 
Committee in undertaking the most substantial rewrite of the 
laws governing the U.S. securities markets since the Great 
Depression.
    To ensure that the Committee received a fulsome and timely 
explanation as to why the SEC failed to detect the Madoff 
fraud, Capital Markets Subcommittee Chairman Kanjorski also 
wrote a number of letters and met with key officials at the 
SEC. In January 2009, for instance, he wrote to outgoing SEC 
Chairman Christopher Cox to ask why the SEC missed several red 
flags that could have helped to identify the Madoff fraud at an 
earlier point in time. Chairman Kanjorski additionally met in 
February 2009 with SEC Chairman Schapiro shortly after she took 
over the agency, and they publicly agreed to maintain an open, 
cooperative dialogue regarding the Committee's examination of 
the Madoff Ponzi scheme and the SEC's actions regarding the 
matter.
    Chairman Kanjorski also continued to press for answers into 
the SEC's failures related to the Madoff fraud by writing two 
letters to the Inspector General of the SEC in June 2009. Both 
letters urged the timely completion of the Inspector General's 
report on his investigation into the Madoff matter and the 
SEC's failure to identify it.
    Chairman Kanjorski further monitored the administration of 
claims for losses by Madoff victims by writing to the 
Securities Investor Protection Corporation (SIPC) a letter in 
August 2010. In that letter, Chairman Kanjorski requested data 
on the status of claims filed by victims of the Madoff fraud. 
The Capital Markets Subcommittee additionally convened two 
hearings to examine SIPC's operations in December 2009 and 
September 2010.
    Impact of Emergency Economic Stabilization Act (EESA) on 
Capital Markets. The Committee continued to monitor the 
implementation of EESA, including the restructuring of U.S. 
auto companies, mortgage foreclosure prevention efforts, 
limitations on executive compensation, bank lending, and the 
Federal Government's investment in American International Group 
(AIG) by holding hearings and by reaching out to and regularly 
obtaining information from senior industry leaders and 
Executive Branch officials.
    On March 18 and 24, 2009, the Capital Markets Subcommittee 
and the Committee, respectively, held hearings relating to the 
Federal Government's intervention at AIG. These hearings dealt 
substantially with compensation practices at AIG following the 
Federal Government's intervention and brought to the forefront 
the larger issues of compensation at financial institutions, 
particularly financial institutions that received Federal 
financial assistance through the Troubled Asset Relief Program 
(TARP) created by ESSA.
    In the immediate aftermath of these two AIG hearings, the 
Committee considered H.R. 1664, a bill to amend the executive 
compensation provisions of EESA to prohibit unreasonable and 
excessive compensation at companies participating in the TARP 
program. The Committee ordered H.R. 1664 reported to the House 
with a favorable recommendation by a vote of 38 to 22. On April 
1, 2009, H.R. 1664 passed the House by a recorded vote of 247 
to 171.
    Outreach by the Speaker of the House and Chairman Frank to 
the Chairman and Chief Executive Officer of Chrysler LLC, and 
the Chairman and Chief Executive Officer of General Motors 
Corporation, also contributed to the emergence of restructuring 
plans from both automakers that minimized taxpayer losses and 
kept the American automotive industry viable. This outreach 
effort additionally helped to bring about a process that 
allowed the two manufacturing companies to emerge quickly from 
bankruptcy.
    On March 4, 2010, Chairman Frank sent a letter to the CEOs 
of the four largest holders of second liens, namely Bank of 
America Corporation, Wells Fargo and Company, Citigroup, Inc., 
and JPMorgan Chase and Company. The letter urged the four 
institutions to take immediate action to write down second 
mortgages, which would allow principal reduction modifications 
on the underlying first lien to take place. On April 27, 2009, 
Chairman Frank previously sent a letter to Citigroup's CEO 
expressing dismay about Citigroup's reluctance to modify 
troubled second liens, and requesting that Citigroup 
participate in the Administration's foreclosure mitigation 
programs.
    In a letter on June 23, 2009, Capital Markets Chairman 
Kanjorski urged the Federal Deposit Insurance Corporation 
(FDIC) to encourage banks to expand access to credit, so that 
big and small businesses alike could weather the economic 
crisis, and so that businesses could create much needed jobs. 
FDIC Chairman Sheila Bair responded on July 7, 2009, that the 
FDIC and other banking regulators were encouraging banks to 
continue making loans to creditworthy customers and working 
with borrowers having difficulty remaining current on their 
payments.
    On July 31, 2009, Chairman Kanjorski and other Members of 
the Financial Services Committee sought to further expand the 
availability of credit to businesses by sending a letter to the 
U.S. Department of Treasury Secretary and the Board of 
Governors of the Federal Reserve System to request the 
extension of the Term Asset-Backed Securities Loan Facility 
(TALF) through the end of 2010. The Federal Reserve later 
extended the TALF from December 31, 2009, to June 30, 2010, in 
order to help restart the commercial mortgage-backed securities 
market and to enhance liquidity in the commercial real estate 
sector.
    Finally, on July 21, 2010, the Dodd-Frank Act became law. 
With respect to EESA, the Dodd-Frank Act reduced the 
authorization of appropriations for TARP from $700 billion 
outstanding at any one time, to a maximum of $475 billion.
    Loan Modifications in Securitized Pools. The Committee 
continued its legislative work in the 111th Congress on 
mitigating foreclosures. On February 2, 2009, Capital Markets 
Subcommittee Chairman Kanjorski, along with Chairman Frank and 
Representative Castle, introduced H.R. 788, the Mortgage 
Servicer Safe Harbor Act, to provide a safe harbor from 
investor lawsuits for mortgage servicers who engage in 
specified mortgage loan modifications. The safe harbor 
provision in H.R. 788 became part of H.R. 1106, the Helping 
Families Save Their Homes Act, which passed the House on March 
5, 2009.
    Auction Rate Securities. The Capital Markets Subcommittee 
received a letter from SEC Chairman Schapiro on July 5, 2009, 
detailing steps the agency had taken since her arrival as 
Chairman to better protect investors and to restore confidence 
in the marketplace for Auction Rate Securities (ARS).
    On March 29, 2010, concerned with the adverse effect on 
regulatory capital caused by the write-downs of ARS in 
depository institution portfolios, pension plans, and 
charitable organizations, Chairman Frank and Capital Markets 
Subcommittee Chairman Kanjorski, joined by Representative Don 
Young, wrote letters to a number of Chief Executive Officers of 
financial institutions that underwrite ARS in general and more 
specifically, student loan-backed ARS. The letters urged the 
institutions to meet with credit unions and depository 
institutions that hold student loan-backed ARS to work out a 
mutually agreeable solution to address the illiquidity of the 
paper and pare back portfolio losses.
    Equity/Options Markets. The Capital Markets Subcommittee 
examined developments in the structure of the equity and 
options markets during the 111th Congress. In particular, the 
Subcommittee expeditiously exercised its oversight 
responsibilities in response to the ``flash crash'' of May 6, 
2010, during which the stock market indices experienced an 
extreme drop in value only to recover within a matter of 
minutes. On May 6, Capital Markets Subcommittee Chairman 
Kanjorski wrote to SEC Chairman Schapiro expressing concern 
about the market events of that day and seeking the SEC's views 
and plan of action related to those events. The Subcommittee 
then received testimony from SEC Chairman Schapiro and CFTC 
Chairman Gensler, among others, at a hearing entitled ``The 
Stock Market Plunge: What Happened and What Is Next?'' on May 
11, 2010. In the following months, Committee staff met with and 
received briefings from the SEC and the CFTC about the causes 
of the market volatility and the structural reforms implemented 
as a result of the events of May 6, including the 
implementation of circuit-breakers for individual stocks.
    On September 30, 2010, Chairman Frank and Capital Markets 
Subcommittee Chairman Kanjorski wrote to SEC Chairman Schapiro 
and CFTC Chairman Gensler requesting that the agencies release 
their joint report, also dated September 30, 2010, entitled 
``Findings Regarding the Market Events of May 6, 2010: Report 
of the Staffs of the CFTC and SEC to the Joint Advisory 
Committee on Emerging Regulatory Issues.'' Committee staff also 
reviewed the findings of that report. Committee staff 
additionally participated in regular meetings with parties 
affected by or interested in not only the events of May 6, but 
also related market structure issues like high-frequency 
trading, market data fees, the SEC's modified uptick rule, and 
short sale restrictions.
    Finally, the Dodd-Frank Act incorporated a proposal first 
passed in Committee as part of H.R. 3817, the Investor 
Protection Act, and then approved by the House as part of H.R. 
4173, the Wall Street Reform and Consumer Protection Act, to 
extend SIPC coverage and allow for the cross-margining of 
securities and futures products. This provision ultimately was 
included in Section 983 of the Dodd-Frank Act.
    Mutual Funds. Committee staff held numerous meetings with 
interested parties about the status of the Reserve Primary 
Fund, which collapsed in September 2008, and the effect of 
failures in the ARS market on the mutual fund industry. On 
January 27, 2010, the SEC also adopted new rules aimed at 
better regulating money market mutual funds, and Committee 
staff received briefings from the SEC about these new 
regulations. The SEC issued the rules to improve investor 
protection by further regulating the risks associated with 
money market funds.
    Additionally, Committee staff continued to monitor 
developments related to the President's Working Group on 
Financial Markets (PWG) report drafted in response to the 
crisis in 2008 which highlights specific policy proposals 
addressing reform of money market mutual funds and mitigating 
systemic risk. According to the report, despite the development 
and adoption of some reforms, more must be done in this area to 
stem the recurrence of a similar crisis and to better protect 
investors. The PWG has also proposed that the Financial 
Stability Oversight Council, established by the Dodd-Frank Act, 
take the report's policy ideas under advisement and pursue 
whichever reforms it deems necessary.
    Covered Bonds. The Committee explored the emergence of 
covered bonds as a potential tool to ease the strain in U.S. 
capital markets. On December 15, 2009, the Committee held a 
hearing entitled, ``Covered Bonds: Prospects for a U.S. Market 
Going Forward.'' The hearing explored the potential role that 
covered bonds could play in U.S. markets and whether covered 
bonds could serve as an alternative to mortgage securitization.
    The Committee additionally considered H.R. 5823, the United 
States Covered Bond Act of 2010, introduced by Capital Markets 
Subcommittee Ranking Member Scott Garrett, along with Financial 
Services Ranking Member Spencer Bachus and Capital Markets 
Subcommittee Chairman Kanjorski. As part of the bill's 
consideration, Chairman Frank also requested that FDIC Chairman 
Bair offer her views regarding the treatment of covered bonds 
as qualified financial contracts with insured depository 
institutions. On July 28, 2010, the Committee ordered H.R. 5823 
reported by a voice vote.
    Public Company Accounting Oversight Board (PCAOB). The 
Committee explored and incorporated into the Dodd-Frank Act 
several reforms related to the PCAOB. For example, Section 982 
of the law expanded the oversight responsibilities of the PCAOB 
by requiring auditors of brokers-dealers, as defined in the 
Securities Exchange Act, to register with the PCAOB. This 
section also authorizes the PCAOB to develop an inspection 
program for the auditors of broker-dealers. Section 981 of the 
Dodd-Frank Act additionally allows the PCAOB to share 
information with foreign auditing regulators. These reforms 
were informed, in part, by public proceedings and hearings held 
by the Committee and the Capital Markets Subcommittee in early 
2009 after the revelation of the Madoff Ponzi scheme.
    The Capital Markets Subcommittee also held an oversight 
hearing on May 21, 2010, at which the Acting Chairman of the 
PCAOB provided an update on PCAOB's current and anticipated 
rulemaking activities, budget and funding, staffing, and 
ongoing efforts to implement the auditing reforms required by 
the Sarbanes-Oxley Act.
    Financial Accounting Standards Board (FASB). On May 21, 
2010, the Capital Markets Subcommittee held a hearing to review 
what the FASB has done and what more the standard setter 
intends to do to promote principles-based accounting standards 
and what the FASB has done to improve the understandability, 
consistency and overall utility of the existing accounting 
literature. As outlined below, the Capital Markets Subcommittee 
also held a hearing in March 2009 related to FASB's mark-to-
market accounting standards. Committee staff additionally 
received regular briefings about FASB's initiatives and the 
application of fair value measures in financial statements.
    Convergence of International Accounting Standards. On May 
21, 2010, the Capital Markets Subcommittee held a hearing 
entitled ``Accounting and Auditing Standards: Pending Proposals 
and Emerging Issues.'' At this hearing the Subcommittee 
reviewed efforts by the SEC and the FASB to achieve robust, 
uniform international accounting standards. The Committee also 
monitored the SEC's plans to incorporate those standards into 
U.S. financial reporting requirements.
    Mark-to-Market Accounting. The Capital Markets Subcommittee 
held a hearing on March 12, 2009, to examine the mark-to-market 
accounting rules that many contend exacerbated the trouble in 
the financial industry and in the broader economy during the 
financial crisis of 2008 and 2009. Shortly after this hearing, 
the FASB provided additional guidance on the application of the 
mark-to-market accounting rules on April 2, 2009. Additionally, 
Chairman Frank, Ranking Member Bachus, Capital Markets 
Subcommittee Chairman Kanjorski, and Capital Markets Ranking 
Member Garrett sent a letter on April 2, 2009, to SEC Chairman 
Schapiro to emphasize the importance of an independent 
accounting standard setter and to urge the SEC to provide 
leadership in the implementation and application of accounting 
standards.
    Corporate Governance. The Committee engaged in many 
activities aimed at altering corporate governance rules during 
the 111th Congress. For example, the Capital Markets 
Subcommittee held hearings entitled ``Corporate Governance 
after Citizens United'' and ``Corporate Governance and 
Shareholder Empowerment'' on March 11, 2010, and April 21, 
2010, respectively. At these hearings, the Subcommittee 
explored corporate governance reforms found in bills like:
           H.R. 4537, the Shareholder Protection Act of 
        2010;
           H.R. 2861, the Shareholder Empowerment Act 
        of 2009;
           H.R. 3272, the Corporate Governance Reform 
        Act of 2009; and
           H.R. 3351, the Proxy Voting Transparency Act 
        of 2009.
    As part of the initial markups on the legislative proposals 
incorporated into H.R. 4173, the Wall Street Reform and 
Consumer Protection Act, the Committee also adopted an 
amendment by Housing Subcommittee Chairman Maxine Waters and 
Representative Gary C. Peters to clarify the ability of the SEC 
to issue rules regarding the nomination by shareholders of 
individuals to serve on the boards of public companies. These 
provisions regarding proxy access aimed to enhance democratic 
participation in corporate governance. As signed into law, 
Section 971 of the Dodd-Frank Act includes proxy access 
language similar the Waters-Peters proposal first adopted by 
the Committee.
    Finally, on July 28, 2010, the Committee considered and 
favorably reported H.R. 4790, the Shareholder Protection Act of 
2010, introduced by Representative Michael E. Capuano. In 
response to the U.S. Supreme Court's ruling in the Citizen's 
United case, this bill proposes corporate governance and 
disclosure reforms related to the expenditures by public 
corporations on political activities.
    Executive Compensation. On June 11, 2009, the Committee 
held the first of four executive compensation hearings 
conducted during the 111th Congress. Entitled ``Compensation 
Structure and Systemic Risk'', this initial hearing focused 
broadly on the oversight and regulation of compensation 
practices in the financial services industry, particularly in 
the context of systemic regulatory reform. This first hearing 
also served as a legislative hearing for H.R. 3269, the 
Corporate and Financial Institution Compensation Fairness Act 
of 2009.
    H.R. 3269 provides shareholders a nonbinding, advisory vote 
on their company's pay practices, requires Federal regulators 
to proscribe any inappropriate and imprudently risky 
compensation practices as part of solvency regulation of all 
financial institutions, and mandates disclosure of compensation 
structures for financial institutions with assets in excess of 
$1 billion. The Committee favorably reported H.R. 3269 by a 
recorded vote of 40 to 28 on July 28, 2009, and the legislation 
passed the House by a recorded vote of 237 to 185 on July 31, 
2009. H.R. 3269 was subsequently folded into H.R. 4173, and 
became law as part of the Dodd-Frank Act.
    On January 22, 2010, and February 25, 2010, the Committee 
held two additional hearings respectively entitled 
``Compensation in the Financial Industry'' and ``Compensation 
in the Financial Industry--Government Perspectives.'' Building 
on the Committee's 2009 compensation oversight and legislative 
activities, these two additional hearings solicited input on 
financial industry compensation structures and the anticipated 
impact of H.R. 3269.
    On September 24, 2010, the Committee held a fourth hearing 
on CEO pay entitled ``Executive Compensation Oversight after 
the Dodd-Frank Act.'' The hearing focused on the anticipated 
impact of the Dodd-Frank Act's executive compensation 
provisions on compensation practices, particularly in the 
financial industry.
    For additional information about the executive compensation 
activities of the Committee, please refer to the discussion of 
the ``Impact of the Emergency Economic Stabilization Act (EESA) 
on Capital Markets'' found above.
    Oversight of Self-Regulatory Organizations (SROs). Through 
meetings and briefings, Committee staff monitored the 
effectiveness of SROs in policing the capital markets and the 
impact of SRO mergers on the oversight of securities markets, 
market participants, and investors.
    As part of the Committee's efforts to streamline the 
functioning of SROs, Section 916 of the Dodd-Frank Act imposes 
new deadlines by which the SEC is required to publish and act 
upon proposed rule changes submitted by SROs. Additionally, 
Section 416 of the Dodd-Frank Act requires a Government 
Accountability Office (GAO) study on the feasibility of forming 
an SRO to oversee private funds. Section 914 of the Dodd-Frank 
Act also requires a study by the SEC about, among other things, 
the extent to which having Congress authorize the SEC to 
designate one or more SROs to augment the SEC's efforts in 
overseeing investment advisers would improve the frequency of 
examinations of investment advisers.
    Finally, Section 921 of the Dodd-Frank Act authorizes the 
SEC to prohibit, or impose conditions or limitations on the use 
of agreements that require customers or clients of any broker, 
dealer or municipal securities dealer to arbitrate any future 
dispute between them arising under the Federal securities laws, 
the rules and regulations thereunder, or the rules of an SRO if 
the SEC finds that such prohibition, imposition of conditions, 
or limitations are in the public interest and for the 
protection of investors.
    Hedge Funds and Private Pools of Capital. The Committee 
addressed issues related to hedge funds and private pools of 
capital and their regulatory framework during the 111th 
Congress. On May 7, 2009, the Capital Markets Subcommittee held 
a hearing entitled ``Perspectives on Hedge Fund Registration.'' 
The hearing examined H.R. 711, the Hedge Fund Adviser 
Registration Act of 2009, introduced by Representatives Capuano 
and Castle. The hearing also focused on the appropriate balance 
between providing regulation of the industry to protect 
investors without unduly inhibiting the benefits hedge funds 
provide investors and the market more broadly.
    On October 6, 2009, the Committee held a three panel 
legislative hearing entitled, ``Capital Markets Regulatory 
Reform: Strengthening Investor Protection, Enhancing Oversight 
of Private Pools of Capital, and Creating a National Insurance 
Office.'' The second panel of the hearing addressed the reforms 
found in the discussion draft of H.R. 3818, the Private Fund 
Investment Advisers Registration Act of 2009, introduced by 
Capital Markets Subcommittee Chairman Kanjorski.
    On October 27, 2010, the Committee held a markup of H.R. 
3818. This legislation broadly amends the Investment Advisers 
Act of 1940 by eliminating exemptions for private fund advisers 
and authorizing the SEC to require registered investment 
advisers to maintain records of information from private fund 
advisers. In December 2009, the House then passed H.R. 3818 as 
part of H.R. 4173. As enacted into law in July 2010, the Dodd-
Frank Act contains many of the provisions initially found in 
H.R. 3818.
    Finally, on January 15, 2010, Chairman Frank and Capital 
Markets Subcommittee Chairman Kanjorski requested a GAO study 
on the use of leverage by the portfolio companies of private 
equity funds. The study will focus on the performance of these 
highly leveraged companies and their ability to weather a 
financial crisis vis-a-vis comparable public companies.
    Federal/State Allocation of Enforcement Responsibilities. 
On March 20, 2009, the Committee held a hearing entitled 
``Federal and State Enforcement of Financial Consumer and 
Investor Protection Laws.'' Issues explored at the hearing 
included reforms to the States' ability to protect investors 
from fraud and abuse, including limits on Federal preemption, a 
Federal grant program to support State enforcement efforts, and 
improved cooperation and communication between Federal and 
State regulators.
    On October 6, 2009, the Committee held an additional 
hearing entitled ``Capital Markets Regulatory Reform: 
Strengthening Investor Protection, Enhancing Oversight of 
Private Pools of Capital, and Creating a National Insurance 
Office.'' At this hearing, Denise Voigt Crawford, President of 
the North American Securities Administrators Association and 
Texas Securities Commissioner, advocated for a variety of 
investor protection reforms, including an increase in the 
States' authority over investment advisers.
    On October 27, 2009, the Committee held a markup of H.R. 
3817, the Investor Protection Act of 2009, introduced by 
Capital Markets Subcommittee Chairman Kanjorski. The Committee 
favorably reported the bill to the House by a vote of 41 yeas 
and 28 nays. Among other things, H.R. 3817 contained a 
provision that reallocated Federal and State authority over 
investment advisers by raising the limit for State registration 
from $25 million to $100 million in assets under management. 
The intent was to increase the States' responsibility for 
regulating smaller investment advisers so that the SEC could 
devote more resources to oversight of the larger advisers.
    H.R. 3817 also contained a provision enhancing the States' 
ability to protect senior citizens from fraud and abuse, 
through enforcement and investor education. Specifically, the 
legislation established a Federal grant program for States that 
have adopted rules restricting the use of misleading senior 
designations in the sale of securities or insurance products. 
The bill also provided for grants to States that impose 
suitability requirements in connection with the sale of 
securities or annuities.
    H.R. 3817 was incorporated into H.R. 4173, the Wall Street 
Reform and Consumer Protection Act of 2009, which passed the 
House in December 2009. The provisions on State oversight of 
investment advisers and grant funding to States for the 
protection of senior investors both appear, in substantially 
the same form as proposed, in Section 410 and Section 989A, 
respectively, of the Dodd-Frank Act.
    The Dodd-Frank Act further strengthened the regulation of 
private securities offerings under Rule 506 of SEC Regulation 
D. Both the SEC and State securities regulators have expressed 
concerns about the degree of fraud and abuse associated with 
Rule 506 offerings, which are exempt from Federal and State 
registration requirements. To police this segment of our 
capital markets more effectively, Section 926 of the Dodd-Frank 
Act makes the registration exemption under Rule 506 unavailable 
if the issuer or its principals have been the subject of civil, 
criminal or administrative disciplinary proceedings, including 
actions brought by State securities, banking, or insurance 
regulators. This provision enhances the oversight of Rule 506 
offerings under both State and Federal law.
    Capital Allocation to New Technologies. In order to create 
incentives in the U.S. capital markets aimed at facilitating 
the growth of emerging innovative technologies and promising 
industrial sectors, Subcommittee staff reviewed a proposal 
first approved by the Committee in the 106th Congress known as 
the America's Private Investment Companies Act.
    Business Development Companies (BDCs). Committee staff 
continued to monitor the regulations governing BDCs, 
particularly those regarding BDCs' minimum capital requirements 
and required leverage ratios. In response to a December 2008 
letter from Capital Markets Subcommittee Chairman Kanjorski 
about the regulatory accounting rules applied to BDCs, SEC 
Chairman Schapiro responded on February 2, 2009, with a staff 
memorandum on the subject and by noting that BDCs serve as an 
important source of capital for small and mid-sized companies.
    Credit Rating Agencies. The financial crisis highlighted 
the level of accountability and liability assumed by the credit 
rating agencies in regard to assessing the credit quality of 
securities, especially in the structured finance market. In 
many legal battles about the liability for faulty assessments 
of a company's credit risk, however, the credit rating agencies 
have successfully invoked a First Amendment defense.
    In considering H.R. 4173, the Committee therefore reviewed 
a proposal from the Administration for a mandatory SEC 
registration regime for credit rating agencies. At the request 
of Chairman Frank and Capital Markets Subcommittee Chairman 
Kanjorski, the Department of Justice's Office of Legal Counsel 
provided a brief defending the constitutionality of the 
mandatory regime initially requested by the Treasury 
Department.
    On May 19, 2009, the Capital Markets Subcommittee held a 
hearing entitled ``Approaches To Improving Rating Agency 
Regulation.'' The witnesses addressed the issue of credit 
rating agency regulation, focusing in particular on ways to 
make credit rating agencies more accountable.
    On September 30, 2009, the Capital Markets Subcommittee 
held a second hearing entitled ``Reforming Credit Rating 
Agencies.'' The hearing examined a discussion draft of 
legislation to enhance the oversight, accountability and 
transparency of credit rating agencies released five days 
earlier by Capital Markets Subcommittee Chairman Kanjorski.
    On October 27, 2010, the Committee then held a markup of 
Chairman Kanjorski's discussion draft. The proposed legislation 
amended the Securities Exchange Act of 1934 to enhance the 
accountability of the Nationally Recognized Statistical Rating 
Organizations (NRSROs) by:
           clarifying the ability of individuals to sue 
        NRSROs;
           clarifying the limitation on the SEC or any 
        State not to regulate the substance of credit ratings 
        or ratings methodologies does not afford a defense 
        against civil anti-fraud actions;
           mitigating conflicts of interest between 
        NRSROs and the issuers they rate; and
           providing the marketplace greater disclosure 
        of ratings methodologies and the NRSRO fee structure.
    The Kanjorski discussion draft was ordered reported by the 
Committee as H.R. 3890 and incorporated into H.R. 4173, which 
passed the House on December 11, 2009. Mandatory registration 
of credit rating agencies was passed on the floor of the House 
as part of Title V, Subtitle B of H.R. 4173, but the final 
version of the credit agency reform legislation incorporated 
into the Dodd-Frank Act did not include the Administration's 
mandatory registration provisions.
    Securities Investor Protection Corporation (SIPC). In 
response to complaints raised by investors affected by the 
Madoff Ponzi scheme and the Stanford Financial fraud, the 
Capital Markets Subcommittee held two hearings on December 9, 
2009, and September 23, 2010, to examine the operations, 
initiatives, and activities of SIPC. The hearings also explored 
proposals to better protect investors in today's volatile 
markets by reforming certain aspects of the Securities Investor 
Protection Act (SIPA).
    On March 3, 2010, Chairman Kanjorski wrote a letter to 
request that SIPC's Task Force to explore reforms to SIPA be 
comprised of a diverse group of representatives and that the 
Task Force broaden its focus to consider, among other things, 
how SIPC operates. Participants from this Task Force testified 
at the September 2010 hearing.
    In addition to these SIPC hearings, the Investor Protection 
Act, as approved by the Committee as H.R. 3817, contained 
several SIPA reforms. In December 2009, the House adopted these 
SIPA amendments as part of H.R. 4173, and the Dodd-Frank Act as 
enacted contains several SIPA reforms found in Section 929C, 
Section 929H, Section 929V, and Section 983 to increase 
customer cash advance limits, provide coverage for futures held 
in portfolio margin accounts, and raise minimum assessments 
paid by brokerages for SIPC coverage, among other things.
    Fair Funds. During the 111th Congress, the Committee 
examined the operations of the Fair Funds established under the 
Sarbanes-Oxley Act and the success of Federal regulators in 
implementing the Fair Funds provision. On September 16, 2009, 
Oversight Subcommittee Chairman Moore requested that the GAO 
update the Committee on the status of Fair Funds collections 
and distributions, and the actions that the SEC had taken to 
address the GAO's previous recommendations in this area. In 
response, on April 22, 2010, the GAO issued a report entitled 
``Securities and Exchange Commission: Information on Fair Fund 
Collections and Distributions'' (GAO-10-44BR).
    The Wall Street Reform and Consumer Protection Act provided 
additional authority for the SEC to collect civil penalty 
payments on behalf of victims of securities law violations and 
add them to Fair Funds to recompense defrauded investors. The 
provision was first incorporated into H.R. 3817, the Investor 
Protection Act, introduced by Capital Markets Subcommittee 
Chairman Kanjorski. On July 21, 2010, President Obama signed 
the Dodd-Frank Act into law, including the Fair Funds 
provisions previously passed in the House.
    Business Continuity Planning/Critical Infrastructure 
Protection. The Committee continued to monitor the 
implementation of the Interagency Paper on Sound Practices to 
Strengthen the Resilience of the U.S. Financial System as well 
as the related efforts of all participants in the securities 
industry to improve business continuity planning to protect 
investors against the effects of natural disasters, terrorism 
events, and pandemics. In particular, Committee staff reviewed 
the October 26, 2009, GAO-issued report entitled ``Influenza 
Pandemic: Key Securities Market Participants Are Making 
Progress, but Agencies Could Do More to Address Potential 
Internet Congestion and Encourage Readiness.''
    Sarbanes-Oxley Act of 2002. The Committee continued to 
examine the effects of the Sarbanes-Oxley Act on investors, 
public companies and the capital markets at public hearings and 
in staff meetings with experts. The Committee also considered 
and adopted proposals to amend the law during the 111th 
Congress.
    Specifically, the Committee reviewed issues related to the 
Sarbanes-Oxley Act at the SEC oversight hearings held by the 
Capital Markets Subcommittee on July 14, 2009, and on July 20, 
2010. On May 21, 2010, the Capital Markets Subcommittee also 
held a hearing entitled ``Accounting and Auditing Standards: 
Pending Proposals and Emerging Issues'' to examine, among other 
matters, the activities of and reforms affecting the PCAOB, the 
body to regulate auditors created by the Sarbanes-Oxley Act.
    As part of the markup on H.R. 3817, the Investor Protection 
Act, the Committee approved, as detailed above in the 
discussion about the PCAOB, reforms aimed at improving the 
effectiveness of the PCAOB and better protecting investors. 
These reforms ultimately became law as part of the Dodd-Frank 
Act in July 2010.
    During the debate on H.R. 3817, the Committee also 
considered and adopted an amendment by Capital Markets Ranking 
Member Garrett and Representative John H. Adler to permanently 
exempt public companies with market capitalizations of $75 
million or less from the external audit of internal controls 
requirement of Section 404(b) of the Sarbanes-Oxley Act. The 
Garrett-Adler provision passed the House as part of H.R. 4173 
and became law as Section 989G of the Dodd-Frank Act.
    Global Competitiveness of U.S. Financial Markets. The 
Committee worked to examine and maintain the competitiveness of 
the U.S. capital markets in a number of ways during the 111th 
Congress. For example, Chairman Frank, Capital Markets 
Subcommittee Chairman Kanjorski and Committee staff regularly 
met with representatives from other nations and the European 
Parliament to ascertain developments related to foreign 
financial markets, laws and rules.
    Additionally, Capital Markets Subcommittee Chairman 
Kanjorski led a delegation of the Committee in meetings with 
European legislative, regulatory, and financial industry 
leaders in late August and early September 2009. The delegation 
also included Capital Markets Ranking Member Garrett, Financial 
Institutions Subcommittee Chairman Luis V. Gutierrez, and 
Committee staff. As part of its agenda, the delegation 
participated in a hearing of the European Parliament's 
Committee on Economic and Monetary Affairs in Brussels on 
September 2, 2009. The hearing examined developments related to 
financial services regulation across international borders.
    During the debates on the legislation that became the Dodd-
Frank Act, the Committee also regularly explored international 
competitiveness and coordination issues. For example, Capital 
Markets Subcommittee Chairman Kanjorski received a letter dated 
October 22, 2009, from Charlie McGreevy, the then-European 
Commissioner for Internal Market and Services, related to H.R. 
3817, the Investor Protection Act. In response to concerns 
raised in this letter, the Committee adjusted the bill's 
provisions related to international regulatory cooperation on 
auditing oversight and the extraterritorial jurisdiction of the 
antifraud provisions of Federal securities laws.
    In addition, during the debates in the House-Senate 
conference on the Volcker Rule, which was ultimately 
incorporated as Section 619 into the Dodd-Frank Act, Chairman 
Frank received a letter from Treasury Secretary Timothy F. 
Geithner on June 24, 2010, indicating that the Administration 
would push for the adoption by other countries of rules to 
address off-balance sheet exposures, too-big-to-fail, and 
excessive leverage.
    To further protect the competitiveness of the U.S. 
financial markets, as part of the original Kanjorski ``too-big-
to-fail'' amendment to H.R. 3996, the Financial Stability 
Improvement Act of 2009, the Committee adopted a provision 
concerning international policy coordination that became part 
of Section 175 of the Dodd-Frank Act in substantially the same 
form. This provision authorizes the Administration to 
coordinate through all available international policy channels 
similar policies as those found in U.S. law relating to 
limiting the scope, nature, size, scale, concentration and 
interconnectedness of financial companies, in order to protect 
financial stability and the global economy.
    Finally, on May 6, 2010, and on May 14, 2010, Chairman 
Frank wrote to leaders of the European Parliament, 
representatives of the European Commission, and European 
finance ministers about provisions contained in the European 
Union's proposed directive on Alternative Investment Fund 
Managers (AIFM) that would pose significant implications for 
the U.S. banking system and potentially increase systemic risk. 
These letters also expressed concerns about the discriminatory 
treatment of third country funds and managers included in the 
draft AIFM directive. The letters urged modifications to the 
AIFM proposal to ensure a level playing field for all financial 
market participants.
    Municipal Securities. On March 20, 2009, Chairman Frank, 
Capital Markets Subcommittee Chairman Kanjorski, and 25 
additional Members of the Committee sent a letter to Federal 
Reserve Chairman Ben Bernanke and Treasury Secretary Geithner 
urging them to create a temporary lending facility to improve 
access to the bond market by State and local governments in 
need of capital.
    On May 1, 2009, Chairman Frank wrote another letter to 12 
organizations representing the interests of State and local 
governments, affirming his intention to advance H.R. 2549, the 
Municipal Bond Fairness Act, which would require rating 
agencies to rate corporate and municipal bonds on the same 
footing. The letter also expressed support for a number of 
other bills that would significantly improve conditions in the 
distressed municipal securities market.
    On May 21, 2009, the Committee held a hearing entitled 
``Legislative Proposals to Improve the Efficiency and Oversight 
of Municipal Finance.'' The hearing focused on five draft 
bills:
           the Municipal Bond Insurance Enhancement Act 
        to establish the Office of Public Finance within the 
        Treasury Department to provide Federal reinsurance for 
        municipal-only bond insurers, thus making it easier for 
        smaller, lesser known bond issuers to obtain bond 
        insurance and gain access to the capital markets;
           the Municipal Bond Liquidity Enhancement Act 
        to authorize the Federal Reserve to fund new liquidity 
        facilities that could redeem variable rate municipal 
        bonds, thereby enhancing liquidity in that market;
           the Municipal Financial Advisors Regulation 
        Act to establish a regulatory regime for financial 
        advisors to municipalities, including registration 
        obligations, a fiduciary duty, and prohibitions against 
        fraud and manipulation;
           the Municipal Bond Fairness Act to impose 
        requirements on NRSROs to ensure that their municipal 
        bond credit ratings were not unfairly low relative to 
        their corporate bond ratings; and
           The Federal Municipal Bond Marketing Support 
        and Securitization Act (H.R. 1669) to give the Treasury 
        Secretary the authority to provide credit enhancements 
        to municipal issuers and to purchase municipal bonds in 
        order to restore activity in the municipal bond market.
    A markup amendment by Representative Steve Driehaus 
incorporated the provisions of the Municipal Financial Advisors 
Regulation Act first into H.R. 3817, the Investor Protection 
Act, and subsequently into Section 7801 through Section 7803 of 
H.R. 4173, the Wall Street Reform and Consumer Protection Act. 
In addition, H.R. 4173 included a provision requiring the 
Municipal Securities Rulemaking Board (MSRB) to be comprised of 
a majority of independent public representatives at all times.
    As enacted into law, Sections 975 through 979 of the Dodd-
Frank Act instituted similar reforms in the regulation of the 
municipal securities market, including a registration regime 
for municipal advisers, the imposition of a fiduciary duty and 
other standards of conduct on those advisers, and changes in 
the composition of the MSRB to ensure its independence. The 
Dodd-Frank Act also requires the GAO to study the municipal 
securities market and the adequacy of the disclosures that 
municipal issuers must make to investors. Finally, the Dodd-
Frank Act established an Office of Municipal Securities within 
the SEC, to administer the rules applicable to participants in 
the municipal securities markets and to coordinate with the 
MSRB.

                    Government Sponsored Enterprises

    Charter Restructuring for Government Sponsored Enterprises 
(GSEs). In general, the Committee held seven hearings during 
the 111th Congress on the status of the housing government 
sponsored enterprises and the U.S. housing finance system, 
monitoring the conservatorships of Fannie Mae and Freddie Mac, 
conducting oversight of the Federal Home Loan Banks, reviewing 
the work of the Federal Housing Finance Agency (FHFA), and 
considering proposals to reform the housing finance markets. 
Committee staff additionally participated in multiple meetings 
with interested parties to discuss the future of the U.S. 
housing finance system and proposals to modify this system. 
Section 1074 of the Dodd-Frank Act also requires that the U.S. 
Department of the Treasury develop and submit to Congress a 
proposal to reform the housing finance system by January 31, 
2011.
    To examine the status of the GSE conservatorships and 
strategies for protecting taxpayers, the Capital Markets 
Subcommittee convened two hearings during the 111th Congress. 
On June 3, 2009, the Subcommittee held a hearing entitled ``The 
Present Condition and Future Status of Fannie Mae and Freddie 
Mac'' to review an FHFA report about the finances, operations 
and mission-related activities of the enterprises, and 
proposals to reform the U.S. housing finance system. On 
September 15, 2010, the Capital Markets Subcommittee convened a 
second hearing entitled ``The Future of Housing Finance Reform: 
A Progress Update on the GSEs'' to examine the progress the 
enterprises have made since being placed into conservatorship 
and the strategies that the two enterprises and the FHFA had 
employed to limit capital infusions by the Treasury Department 
into Fannie Mae and Freddie Mac. The Subcommittee hearing also 
explored whether to modify the strategies and devise others.
    Discussions about the future of Fannie Mae and Freddie Mac 
further arose during a May 26, 2010, Capital Markets 
Subcommittee hearing entitled ``FHFA Oversight: Current State 
of the Housing Government Sponsored Enterprises.''
    The Committee convened three additional hearings that 
considered proposals to improve, or otherwise alter the purpose 
and functions of the GSEs and their appropriate roles in the 
mortgage market. These hearings included:
           ``Housing Finance--What Should the New 
        System Be Able to Do?: Part I--Government and 
        Stakeholder Perspectives'' on March 23, 2010;
           ``Housing Finance--What Should the New 
        System Be Able to Do?: Part II--Government and 
        Stakeholder Perspectives'' on April 14, 2010; and
           ``The Future of Housing Finance--A Review of 
        Proposals to Address Market Structure and Transition'' 
        on September 29, 2010.
    In addition to reviewing wider proposals to reform the 
housing finance system, on July 29, 2010, the Capital Markets 
Subcommittee examined the mortgage insurance industry's 
experiences during the recent financial crisis and the need to 
alter the laws currently governing the industry in a hearing 
entitled ``Future of Housing Finance: The Role of Private 
Mortgage Insurance.''
    On March 19, 2009, Chairman Frank also wrote to then-FHFA 
Director James B. Lockhart III to urge him to rescind the 
retention bonus programs at Fannie Mae and Freddie Mac, to 
prohibit any further payment of bonuses to executives under 
that program, and to pursue repayment of any already-paid 
bonuses. Director Lockhart responded to Chairman Frank on March 
20, 2009, stating that ``it is very important to work with the 
current management teams and employees to encourage them to 
stay and to continue to make important improvements to the 
Enterprises.'' The Director stated that FHFA working with the 
new CEOs of the enterprises, an outside pay consultant and with 
the consultation of Treasury had developed employee-retention 
programs.
    On June 16, 2009, Chairman Frank and Representative Anthony 
D. Weiner wrote to Fannie Mae CEO Michael Williams and Freddie 
Mac Interim CEO John Koskinen regarding condominium standards 
for loan purchase at the GSEs. The letter solicited the GSEs' 
detailed guidelines for occupancy and other requirements 
relating to the eligibility of single-family home loans 
purchased by the GSEs.
    On August 13, 2010, Capital Markets Subcommittee Chairman 
Kanjorski, Representative Brad Miller and Representative Jackie 
Speier wrote a letter to President Obama stating that the FHFA 
must vigorously pursue all available legal claims for losses 
sustained from the conservatorship of Fannie Mae and Freddie 
Mac. They stressed that it is critically important to protect 
the taxpayer and to let the American people know that the 
government is acting on their behalf.
    On July 31, 2010, Chairman Frank additionally requested in 
a letter to Douglas Elmendorf, Director of the Congressional 
Budget Office (CBO), that the CBO calculate budget projections 
for Fannie Mae and Freddie Mac employing the Federal Credit 
Reform methodology in addition to the ``fair-value'' 
methodology that had been published in the CBO's January 2010 
report. Chairman Frank also asked that the CBO add this 
approach to its analysis of the impact of Fannie Mae and 
Freddie Mac activities, in order to have a consistent view of 
the cost to the taxpayer going forward.
    On September 16, 2010, Chairman Frank received a response 
to his request to the CBO to estimate the budgetary impact of 
the activities of Fannie Mae and Freddie Mac using the approach 
of the Federal Credit Reform Act of 1990. The letter also 
discussed alternative budgetary treatments for the GSEs, the 
rationale for using fair-value subsidy estimates, and the 
usefulness of alternative treatments in congressional decision 
making.
    GSE Regulatory Reform. During the 110th Congress, the 
Housing and Economic Recovery Act of 2008 became law. Among 
other things, this statute created the FHFA to regulate the 
safety and soundness, as well as the mission, of Fannie Mae, 
Freddie Mac and the Federal Home Loan Banks. The law also 
requires annual testimony by the FHFA Director before Congress. 
During the 111th Congress, the Capital Markets Subcommittee 
therefore convened hearings on June 3, 2009, and May 26, 2010, 
as noted in the section immediately above, to receive this 
testimony and to review the work of the FHFA. Committee staff 
also regularly met with FHFA staff and reviewed FHFA reports 
regarding the work and solvency of the Federal Home Loan Banks, 
Fannie Mae and Freddie Mac.
    Federal Home Loan Bank (FHLB) System. The Committee 
monitored the capital requirements, financial health and 
stability of the FHLB System, as well as the System's ability 
to fulfill its housing mission and provide liquidity to the 
cooperative's member banks in a safe and sound manner during 
the ongoing credit crisis. Committee staff held numerous 
meetings and discussions with representatives from the FHLBs 
and industry. The Committee staff additionally monitored the 
capital levels of the FHLBs as a result of the troubled 
mortgage assets held on their books. Finally, many of the 
witnesses in the series of hearings held in the 111th Congress 
on the future of housing finance addressed the role of the FHLB 
System in supporting the U.S. housing finance framework.
    GSE Appraisal Standards. The Committee reviewed the 
implementation of the Home Valuation Code of Conduct (HVCC), a 
legal agreement reached in March 2008 by New York Attorney 
General Andrew Cuomo with Fannie Mae and Freddie Mac in 
response to failures to ensure the independence of appraisals 
and to prevent inflated appraisals on residential properties.
    In response to complaints about the HVCC, the Committee 
also approved an amendment to H.R. 3126, the Consumer Financial 
Protection Agency Act of 2009, offered by Representative Gary 
G. Miller, Representative Travis W. Childers, and others to 
adopt a national appraisal independence standard to apply to 
all residential mortgages, not just those purchased and 
guaranteed by Fannie Mae and Freddie Mac. The amendment 
additionally sunset the HVCC upon the adoption of the national 
appraisal independence standard, and it required that lenders 
and their agents compensate appraisers at a rate that is 
customary and reasonable for their services. As enacted into 
law, Section 1472 of the Dodd-Frank Act contains provisions 
substantially similar to the Miller-Childers amendment.
    FHLB Community and Economic Development. At the request of 
Capital Markets Subcommittee Chairman Kanjorski, GAO completed 
a study released on August 11, 2010, entitled ``Federal Housing 
Finance Agency: Oversight of the Federal Home Loan Banks' 
Agricultural and Small Business Collateral Policies Could Be 
Improved.'' The report found that the FHLB System had fallen 
short in its efforts to prioritize economic development in 
communities throughout the country, as part of its mandate 
requires it to do. In response to the report, Chairman 
Kanjorski wrote to FHFA Acting Director Edward DeMarco and each 
of the twelve FHLB presidents to request that they outline the 
steps they intend to take to improve economic and community 
development activities.
    Resolution Funding Corporation (REFCorp) Payments. Although 
the Committee took no direct oversight action on REFCorp 
payments by the FHLBs, Committee staff continued to monitor 
developments in this area throughout the 111th Congress. The 
REFCorp obligation is presently expected to be met in 2012.

                                Housing

    Mortgage Foreclosures and Loan Modifications. The Committee 
held a number of hearings on Federal and private sector 
activities with respect to loan modifications and foreclosure 
prevention. Topics of the hearings included the Federal HAMP 
loan modification program, the extent to which lenders were 
making offers to reduce the principal amount on troubled, 
underwater mortgages, forbearance and financial assistance to 
unemployed homeowners, and other related topics.
    The Subcommittee on Housing and Community Opportunity held 
four hearings on the performance of mortgage servicers in 
modifying loans and assisting homeowners, including 
modifications through the Treasury's Home Affordable 
Modification Program (HAMP). On October 21, 2009, Chairwoman 
Waters and Congresswoman Castor wrote to Secretary Geithner 
requesting information on the total number of HAMP trial 
modifications started and the total number of trial period plan 
offers extended to borrowers, disaggregated by State, 
Metropolitan Statistical Area (MSA) and Congressional district. 
In October 2009, the Treasury Department began providing 
disaggregated HAMP data by State. The Department began 
providing disaggregated data by MSA in November 2009. To date, 
no data disaggregated by Congressional district has been 
provided.
    On September 30, 2010, Chairwoman Waters wrote to Federal 
Housing Administration (FHA) Commissioner Stevens on the extent 
to which FHA servicers were complying with FHA servicing 
guidelines, in light of reports of servicer misconduct and 
documentation fraud.
    On October 4, 2010, Chairwoman Waters wrote to the CEOs of 
Wells Fargo, Citigroup, HSBC, PNC Bank, and US Bank to request 
that the banks thoroughly review their servicing practices and 
impose a moratorium on all foreclosures pending the outcome of 
that review.
    Chairwoman Waters wrote to Secretary Geithner on October 4, 
2010 asking about the status of the programs and the actions 
the Treasury has taken to monitor and penalize servicers, if 
necessary, in light of allegations of widespread servicer 
misconduct.
    On October 4, 2010, Chairwoman Waters wrote to Federal 
Housing Finance Agency Acting Director DeMarco to request that 
his agency review the servicing practices of firms servicing 
loans it owns and to suspend all foreclosures on loans it owns 
pending such a review.
    On October 6, 2010, Chairwoman Waters wrote to California 
Attorney General Edmund Brown asking him to examine the extent 
to which that State's unfair and deceptive acts and practices 
(UDAP) statutes could be used to prevent further improper 
foreclosures.
    The Subcommittee on Housing and Community Opportunity held 
a hearing on November 18, 2010, to examine HAMP and other 
issues related to foreclosure documentation and due process 
requirements. Witnesses included housing and banking 
regulators, mortgage servicers, consumer advocates, foreclosure 
attorneys, and other experts.
    In addition, the Subcommittee on Housing and Community 
Opportunity held a hearing on May 6, 2009 on ``Legislative 
Solutions for Preventing Loan Modification and Foreclosure 
Rescue Fraud.'' The hearing examined the growing industry of 
foreclosure consultants who purport to, for a fee, prevent a 
foreclosure or obtain a loan modification on a homeowner's 
behalf. Legislation to provide for the regulation of these 
persons was included in the Dodd-Frank Wall Street Reform and 
Consumer Protection Act of 2010 (PL 111-203).
    On March 18, 2009, Chairwoman Waters wrote to the Federal 
Trade Commission, the Federal Communications Commission, and 
the Department of Housing and Urban Development (HUD) about web 
sites fraudulently purporting to offer Federal loan 
modification assistance to unsuspecting homeowners. She 
requested that the web sites be taken down as soon as possible.
    On April 30, 2009, Chairwoman Waters wrote to the Federal 
Trade Commission, asking the Commission to take immediate steps 
to prevent foreclosure consultants from featuring the images 
and words of Members of Congress on their website or in their 
marketing.
    Housing Preservation. The Committee held a series of 
hearings on affordable housing preservation in 2009 and 2010, 
which involved receiving testimony from HUD and a broad range 
of stakeholders. On July 27, 2010, the Committee favorably 
reported H.R. 4868, the ``Housing Preservation and Tenant 
Protection Act of 2010,'' which would ensure long-term 
preservation of HUD's assisted housing inventory while 
protecting poor and low-income residents from being displaced 
by higher rents once the affordability restrictions for their 
unit are lifted.
    FY 2010 Budget for the Department of Housing and Urban 
Development, the Rural Housing Service, the Neighborhood 
Reinvestment Corporation and the National Flood Insurance 
Program. The Committee will conduct a hearing or a series of 
hearings to consider Administration FY 2010 budget proposals 
for these agencies and programs, including receiving testimony 
from relevant agencies. Such hearings will concentrate on the 
Department's efforts to be responsive to current market 
challenges as well as ensuring decent affordable housing. 
During these hearings the Committee will examine spend out 
rates for assisted programs in addition to program oversight 
and accountability measures.
    Public Housing. The Committee held several hearings on the 
current state of public housing, including the capital needs of 
the public housing properties, new proposals to preserve 
existing properties, and proposals to provide public housing 
agencies and residents greater access to supportive services.
    On June 15, 2009, Chairman Frank, with Subcommittee 
Chairwoman Waters, wrote to the Secretary of Housing and Urban 
Development, Shaun Donovan, requesting a moratorium on the 
demolition and disposition of public housing units to allow the 
Committee to work with the Department and other interested 
stakeholders to enact legislation that would facilitate the 
preservation of public housing units. The Committee held 
several hearings concerning the preservation of public housing. 
The Committee considered legislation, H.R. 5814, the ``Public 
Housing Reinvestment and Tenant Protection Act of 2010,'' to 
authorize the Choice Neighborhoods program, reform the public 
housing disposition and demolition statute, increase access to 
existing funding resources for public housing rehabilitation, 
and authorize a new program for the training of public housing 
residents as home healthcare providers. The Committee reported 
the bill favorably on July 27, 2010. The bill included four 
titles: the Choice Neighborhoods Initiative Act of 2010, the 
Public Housing One-for-One Replacement and Tenant Protection 
Act of 2010, the Public Housing Preservation and Rehabilitation 
Act of 2010, and the Together We Care Act of 2010.
    The Committee held a hearing on May 25, 2010 on ``The 
Administration's Proposal to Preserve and Transform Public 
Housing: The Transforming Rental Assistance Initiative'' also 
known as PETRA. Witnesses at the hearing included HUD 
officials, public housing agencies, HUD-assisted multifamily 
housing owners, and tenant representatives and advocates. The 
Administration's draft legislation proposes preserving public 
and HUD-assisted housing properties through conversion to a 
unified project-based assistance, enhancing housing choices for 
residents and creating more uniform policies across HUD rental 
assistance programs. The Committee took no legislative action 
on PETRA.
    On July 29, 2009, the Subcommittee on Housing and Community 
Opportunity held a hearing on ``Academic Proposals on the 
Future of Public Housing.'' At the hearing various academics 
testified about the current state of the public housing stock, 
resident characteristics, and issues facing the program as it 
moves into the 21st century. On April 28, 2010, the 
Subcommittee held a hearing on ``Legislative Proposals to 
Preserve Public Housing.'' The hearing focused on two 
discussion drafts. The first, the Public Housing One-for-One 
Replacement and Tenant Protection Act of 2010, was designed to 
preserve public housing stock through one-for-one replacement 
of demolished or disposed units. The second, the Public Housing 
Preservation and Rehabilitation Act of 2010, was designed to 
provide public housing agencies with various financial tools in 
order to facilitate preservation of the stock. Both pieces of 
legislation were eventually included in HR 5814, the Public 
Housing Reinvestment and Tenant Protection Act of 2010.
    On July 20, 2009, the Subcommittee on Housing and Community 
Opportunity held a field hearing in New York City on 
``Legislative Proposals to Increase Work and Health Care 
Opportunities for Public and Subsidized Housing Residents.'' 
The hearing covered two discussion drafts authored by Rep. 
Velazquez. The first, the Earnings and Living Opportunity Act 
would reform the Section 3 program which provides employment 
opportunities for residents of public and assisted housing that 
live in or near developments that undergoing rehabilitation or 
reconstruction. The second, the Together We Care Act, would 
create a pilot program to train public housing residents to 
become home health care aides to elderly residents in public 
housing. Witnesses included representatives from HUD and New 
York State and local government; experts on public housing, 
employment, and health care; and residents of public and 
assisted housing. The Together We Care Act was also included in 
HR 5814.
    On June 30, 2010, Chairwoman Waters wrote to Secretary 
Donovan in support of a qualified application of Moving-to-Work 
(MTW) status by the Housing Authority of the City of Los 
Angeles (HACLA), provided the MTW contract between HACLA and 
HUD included one-for-one replacement, tenant protections, 
preservation of units, and social services and employment 
training programs.
    HOPE VI. The HOPE VI program provides assistance to public 
housing agencies to improve the living environment for 
residents of severely distressed public housing projects. The 
Administration's budget request for Fiscal Year 2009 and 2010 
included funds for the Choice Neighborhoods Initiative, a grant 
program to replace the HOPE VI program and provide funds for 
the revitalization of public and HUD-assisted rental housing. 
On March 17, 2010, the Committee held a hearing on the 
Administration's proposal for the Choice Neighborhoods 
initiative. Witnesses included representatives from HUD, 
affordable housing advocacy groups and industry. Title I of 
H.R. 5814, the Public Housing Reinvestment and Tenant 
Protection Act of 2010, authorizes the Choice Neighborhood 
program. In addition, the new Choice Neighborhoods program 
would include a number of the important reforms from previous 
HOPE VI legislation, including expanding the number of 
replacement housing units, ensuring that residents have access 
to revitalized sites, requiring monitoring and tracking of 
displaced residents, and greater resident involvement in the 
planning and re-development process. The Committee ordered 
reported the bill favorably on July 27, 2010.
    The Subcommittee on Housing and Community Opportunity 
reviewed the HOPE VI program in light of the Administration's 
proposal to replace the program with its Choice Neighborhood 
Initiative, which was put forward first in the FY2010 budget 
for the Department of Housing and Urban Development and again 
in the FY2011 budget. During the July 29, 2009 Subcommittee 
hearing on academic perspectives on the future of public 
housing, expert witnesses discussed the HOPE VI program's 
record on revitalizing public housing and building mixed-income 
communities. The hearing also examined the impact of HOPE VI on 
tenants', including tenants' ability to find affordable housing 
during HOPE VI rehabilitations and return to their original 
communities once redevelopment is complete. On March 17, 2010, 
the Subcommittee held a legislative hearing on a discussion 
draft of the Administration's Choice Neighborhoods Initiative. 
The Choice Neighborhoods Initiative Act of 2010 was included 
under Title I of H.R. 5814, which the Committee reported with a 
favorable recommendation on July 27, 2010. The Initiative would 
build upon the successes of HOPE VI, and expand the program by 
allowing certain assisted and privately-owned housing to be 
rehabilitated using program funds, allow non-profits to act as 
primary applicants and for-profit developers to act as co-
applicants on grant applications, and allow certain non-housing 
activities to be undertaken with program funds.
    Affordable Housing Production. The committee did not hold 
hearings or take action on the legislation adopted in the prior 
Congress to establish a National Housing Trust Fund program.  
However, the full House did approve $1 billion in funding for 
the Fund, as part of a broader jobs bill, H.R. 2847.
    Housing Tax Credit Programs. The committee did not hold 
hearings on these programs, as they are not in the committee's 
jurisdiction. However, as part of the enacted stimulus bill, 
Congress approved authority for states to exchange up to 40 
percent of their 2009 tax credit allocation, plus carryover 
credits, for cash, for projects otherwise eligible for the low 
income housing tax credit.
    Federal Housing Administration (FHA). The Committee held 
hearings on the health of the FHA fund and program, as well as 
Administration budget proposals to raise annual FHA premiums 
and to give FHA increased powers to crack down on FHA loan 
originators that don't follow underwriting guidelines or are 
not qualified to underwrite FHA loans. Ultimately, the 
committee favorably reported and the House approved, H.R. 5072, 
the ``FHA Reform Act of 2010,'' which included the 
Administration's FHA proposals, plus a number of other 
provisions designed to improve the operations of FHA and to 
strengthen provisions focused on the financial health of the 
FHA fund.  Subsequently, the House approved legislation (H.R. 
5981), which was enacted into law, that authorized the increase 
in annual premiums that was included in the Administration's 
original FHA budget proposal.
    The Committee, along with the Subcommittees on Housing and 
Community Opportunity and Oversight and Investigations, held a 
combined six hearings on various issues related to the Federal 
Housing Administration. The first two of those hearings 
examined FHA's ability to oversee approved lenders and its 
ability to prevent fraud (the first hearing, ``FHA Oversight of 
Loan Originators'' was held on January 9, 2009 and the second 
hearing, ``Strengthening Oversight and Preventing Fraud in FHA 
and Other HUD Programs'' was held on June 18, 2009). The other 
four hearings on FHA examined the status of FHA's Mutual 
Mortgage Insurance Fund (MMIF), which in FY2009 fell below the 
2 percent mandated under The Cranston-Gonzalez National 
Affordable Housing Act (P.L. 101-625), as well as regulatory, 
administrative and statutory proposals to improve the financial 
health of the MMIF (the first Subcommittee hearing on FHA's 
financial condition was held on October 8, 2010; a Committee 
hearing also examined this topic on December 2, 2009; a 
legislative hearing by the Subcommittee on the FHA Reform Act 
of 2010 was held on March 11, 2010; a hearing on FHA's 
implementation of higher loan fees and pending legislative 
proposals was held on September 22, 2010). In these hearings, 
the Subcommittee and Committee conducted oversight of FHA's 
regulatory and administrative actions taken to improve the 
financial condition of the MMIF, including: hiring a Chief Risk 
Officer; creating stricter guidelines for the streamline 
refinance program; announcing new appraisal controls; 
increasing net worth requirements for mortgagees; increasing 
the upfront mortgage insurance premium; changing downpayment 
requirements for borrowers with low credit scores; and reducing 
allowable seller concessions.
    On April 22, 2010, the Committee reported out the FHA 
Reform Act of 2010 (H.R. 5072) with a favorable recommendation, 
which provided FHA with additional tools to improve the health 
of the MMIF. The Act included a provision to allow the 
Secretary to increase the annual mortgage insurance premium for 
the single-family mortgage insurance program, which will 
increase funds to the MMIF by an estimated $300 million per 
month. The Act also extended the Secretary's authority to 
require indemnification from Direct Endorsement lenders; 
provided the Secretary with the authority to terminate 
mortgagee approval on a nationwide basis if the mortgagee 
originates or underwrites mortgages with excessive rates of 
claim or default; and provided the Secretary with enhanced 
ability to review mortgagee performance, including hiring 
outside credit risk analysts, reviewing significant or rapid 
increases in early defaults or claims, reporting mortgagee 
actions taken against other mortgagees, enhancing annual and 
quarterly reports on the MMIF, providing default and 
origination information by loan servicer and originating direct 
endorsement lender, and requiring a GAO report. The Act passed 
the U.S. House of Representatives on June 10, 2010 by a margin 
of 406-4. The provision in the Act that would allow the 
Secretary to increase the annual mortgage insurance premium on 
the single-family mortgage insurance program became law on 
August 11, 2010 (P.L. 111-229).
    Section 8 Housing Choice Voucher Program. On June 4, 2009, 
the Subcommittee on Housing and Community Opportunity held a 
hearing on H.R. 3045, the Section 8 Voucher Reform Act of 2009. 
This legislation would reform and streamline the Section 8 
voucher program by reforming the funding formula, simplifying 
inspections and deductions, and reforming the Moving-to-Work 
panel. Witnesses included HUD, public housing agencies, tenant 
advocates, and housing experts. On July 23, 2009 the Committee 
marked up the legislation and favorably ordered it reported to 
the House.
    Rural Housing. On April 22, 2010, the Committee held a 
markup on April 22, 2010 on H.R. 5017, the ``Rural Housing 
Preservation and Stabilization Act of 2010. The bill would 
preserve Section 502 single family direct and guaranteed loan 
programs. The Committee favorably reported the bill on April 
22, 2010. On April 27, 2010, the House passed the bill under 
suspension of the rules by a vote of 352 to 62. H.R. 5017 
subsequently was referred to the Senate Subcommittee on 
Banking, Housing, and Urban Affairs for further consideration.
    The Committee conducted oversight of the Rural Housing 
Services' multifamily mortgage restructuring and preservation 
program as part of its series of hearings on affordable housing 
preservation and H.R. 4868, the ``Housing Preservation and 
Tenant Protection Act of 2010.'' The Committee held a hearing 
and enacted legislation designed to make the RHS single-family 
loan guarantee program self-financing. The Committee 
subsequently held a series of meetings intended to ensure that 
the legislation was quickly implemented.
    On March 4, 2010, the Subcommittee on Housing and Community 
Opportunity submitted a letter to the Subcommittee on 
Appropriations to support funding of $27 million in FY2010 for 
the Rural Housing Service Multifamily Housing Revitalization 
Demonstration Program, which helps to finance Sections 514, 
515, and 516 multifamily rental housing programs. On July 29, 
2010, the language from H.R. 5017 was incorporated into the 
Supplemental Appropriations Act of 2010, H.R. 4899. The 
President signed H.R. 4899 into law (P.L. 111-212) on July 29, 
2010.
    On March 15, 2010, Chairwoman Waters, Chairman Frank, and 
other members wrote to the U.S. Department of Agriculture, 
requesting that the Rural Housing Service work with Congress on 
a solution to provide for the continued solvency of the Section 
502 single family loan guarantee program.
    On September 28, 2010, the Chairwoman Waters, Chairman 
Frank, and other Members wrote to the U.S. Department of 
Agriculture requesting that the Rural Housing Service take 
immediate steps to implement a mortgage servicing program to 
help Section 502 Guaranteed and Direct loan borrowers avoid 
foreclosure.
    Section 202 Elderly and Section 811 Disabled Housing. Title 
VII of H.R. 4868 reforms the Section 202 Supportive Housing for 
the Elderly program to facilitate the construction of new 
units, and the preservation of existing units. The Committee 
ordered reported H.R. 4868 favorably on July 27, 2010. On 
December 18, 2010, the Senate passed by unanimous consent its 
versions of legislation to reform the Sections 202 and 811 
programs--S. 118, the ``Section 202 Supportive Housing for the 
Elderly Act of 2010'' and S. 1481, the ``Frank Melville 
Supportive Housing Investment Act of 2010.'' On December 21, 
2010, both bills passed the House on a voice vote.
    Homelessness. The House approved an omnibus housing bill 
that included the reauthorization of the McKinney-Vento 
homeless programs, which was subsequently enacted into law 
(P.L.111-22). The McKinney-Vento programs include provisions 
designed to improve the effectiveness of federal homeless 
programs and assistance, including revising the definition of 
``homeless persons'' and ``chronic homelessness,'' targeting 
more funds towards homeless prevention, and improving the 
delivery of homeless assistance in rural areas.
    On March 28, 2009, the Subcommittee on Housing and 
Community Opportunity held a field hearing in Los Angeles, 
California to discuss the impact of the foreclosure crisis on 
various populations, including the specific effect of 
foreclosures on the homeless population. Witnesses testified 
about the growing number of homeless families and the lack of 
resources available to the rising homeless population in both 
Los Angeles County, as well as the rest of the country. On June 
16, 2009, the House passed H.R. 403, the ``Homes for Heroes Act 
of 2009'' which authorizes 20,000 new housing vouchers for 
homeless veterans. H.R. 403 was referred to the Senate 
Subcommittee on Banking, Housing, and Urban Affairs on June 17, 
2009. The Subcommittee reviewed a report by the Government 
Accountability Office and public comments submitted to HUD 
regarding the proposed definition of homelessness under the 
Homeless Emergency Assistance and Rapid Transition to Housing 
Act of 2008.
    On July 28, 2010, Chairwoman Waters sent a letter to the 
Regulations Division of the Office of General Counsel at HUD in 
support of a comment letter submitted by the John Burton 
Foundation for Children Without Homes on June 16, 2010 in 
response to the HUD public comment phase for defining the term 
``homeless'' under the Homeless Emergency Assistance and Rapid 
Transition to Housing Act. The letter supported the Burton 
Foundation's letter proposing changes to the documentation 
required to establish homelessness, the number of times a youth 
must move prior to applying for aid, the required employment 
barriers a youth must face to qualify for aid, and the lack of 
coverage for youth leaving foster care.
    Native American Housing. The Committee met with staff from 
the Government Accountability Office on several occasions as 
the GAO carried out a congressionally-mandated report on the 
effectiveness of NAHASDA. The GAO subsequently published its 
report (GAO-10-326) in February 2010, entitled ``Native 
American Housing: Tribes Generally View Block Grant Program as 
Effective, but Tracking of Infrastructure Plans and Investments 
Needs Improvement.''
    On April 10, 2010, the Subcommittee on Housing and 
Community Opportunity held a legislative field hearing in 
Window Rock, Arizona focusing on H.R. 3553, and the ``Indian 
Veterans Housing Opportunity Act of 2009,'' which would ensure 
HUD housing benefits to qualified Native American veterans with 
disabilities. The hearing addressed the need for housing 
services within the Native American veteran community, 
especially among those with disabilities. On April 20, 2010, 
H.R. 3553 passed out of the House under a suspension of the 
Rules by voice vote and was referred to the Senate. On 
September 27, 2010, the Senate passed H.R. 3553 by unanimous 
consent without amendment. The President signed H.R. 3553 into 
law (P.L. 111-269) on October 12, 2010,
    Neighborhood Stabilization Program (NSP). The Committee 
provided oversight to HUD on the implementation of NSP. On May 
22, the Chairman wrote to HUD Secretary Shaun Donovan 
requesting consideration of various implementation and 
regulatory issues, including the purchase discount requirement, 
the definition of abandoned properties, appraisal requirements, 
and rules concerning previously acquired foreclosed properties. 
In response, HUD reduced the purchase discount, clarified the 
definition of abandoned properties, agreed to a case-by-case 
review, if necessary, of rules concerning previously acquired 
properties and noted the Department's agreement with the 
appraisal requirements. The Subcommittee on Housing and 
Community Opportunity conducted a field hearing in the Twin 
Cities on January 23, 2010 that examined NSP and how that 
program is being used to increase the supply of public and 
assisted housing across the country, and specifically in the 
Twin Cities. The Subcommittee heard testimony from HUD on the 
condition of the housing market in the Twin Cities as well as 
efforts under NSP to stabilize that market. The Subcommittee 
also heard from local government officials about the challenges 
that foreclosed, abandoned, and vacant property pose to the 
city and from non-profit stakeholders about the need for NSP 
and challenges in its implementation. Witness testimony 
informed Subcommittee work with HUD on revising relevant 
regulations to expedite spend out rates and allow grantees to 
more effectively stabilize communities.
    On May 13, 2010, Chairwoman Waters wrote to the Federal 
Housing Administration, JPMorgan Chase, Citigroup, Wells Fargo 
and Bank of America regarding the processes they use to dispose 
of real estate-owned (REO) properties in their inventory and 
asked that they attend a briefing in Los Angeles with the real 
estate community.
    Community Development Block Grants. The Committee held a 
hearing on June 19, 2009 on the Economic Disaster Area Act of 
2009 to explore a legislative proposal to set aside CDBG funds 
for economic disaster areas. The act sought to utilize CDBG as 
a resource to assist communities experiencing high and 
persistent unemployment, particularly in rural areas. On April 
20, 2010, the Chairman and Subcommittee Chairwoman Waters wrote 
to the Appropriations Subcommittee requesting that $6 million 
in budget authority for the CDBG Section 108 Loan Guarantee 
Program be restored.
    The Subcommittee on Housing and Community Opportunity 
requested and received a report by the Government 
Accountability Office (GAO) on how CDBG funds are distributed 
and expended by grantees to subrecipients at the local level 
(Community Development Block Grants: Entitlement Communities' 
and States' Methods of Distributing Funds Reflect Program 
Flexibility, September 15, 2010). This included a review of 
entitlement grantee distribution and expenditure processes, and 
methods of distribution used by states. GAO found that 
distribution processes varied widely between grantees, 
consistent with the flexibility embedded within the CDBG 
program.
    Federal Housing Response to Natural Disasters. The 
Subcommittee on Housing and Community Opportunity held 2 days 
of hearings in 2009 on August 28th and 29th in New Orleans, 
Louisiana to examine issues facing the recovery of the city's 
housing market 4 years after Hurricane Katrina. The hearings 
focused on the status of two programs' critical to the City's 
housing recovery: the redevelopment of the Big Four public 
housing developments and the Road Home program.
    On October 7, 2009, Chairwoman Waters wrote to HUD 
Secretary Donovan concerning actions HUD planned to take to 
address allegations that some developers were implementing 
illegal work requirements.
    On October 7, 2009, Chairwoman Waters wrote to Attorney 
General Holder asking that he investigate repeated violations 
of the Fair Housing Act by officials in St. Bernard Parish who 
were blocking the development of an affordable rental housing 
development in violation of a court order.
    On April 14, 2010, Chairwoman Waters wrote to Attorney 
General Holder and HUD Secretary Donovan to request that the 
Department of Justice and HUD remedy the unequal funding 
distribution formula that disadvantaged minority homeowners 
through the State of Louisiana's Road Home Program.
    On July 22, 2010, Chairwoman Waters wrote to Federal 
Emergency Management Administrator Fugate to request that his 
agency improve the safety of travel trailers that were used as 
temporary housing units after Hurricane Katrina.
    National Flood Insurance Program (NFIP). Due to the lack of 
a long-term authorization, the National Flood Insurance program 
lapsed three times during the 111th Congress: for two days in 
March 2010, for 18 days in April 2010, and again from June 1 to 
July 2, 2010. The Housing Subcommittee drafted legislation, 
H.R. 5569, to continue the program for a three-month period 
pending the enactment of a long-term authorization. On July 2, 
2010, President Obama signed H.R. 5569, legislation to continue 
the program from June 1 to September 30, 2010. On September 30, 
2010, President Obama signed S. 3814, legislation to continue 
the program through September 30, 2011 (P.L. 111-250).
    On April 21, 2010 the Housing Subcommittee held a hearing 
on ``Legislative Proposals to Reform the National Flood 
Insurance Program.'' The hearing focused on two bills designed 
to reform and expand the NFIP: H.R. 5114, the Flood Insurance 
Reform Priorities Act of 2010 and H.R. 1264, the Multiple Peril 
Insurance Act of 2009. H.R. 5114 would reauthorize the flood 
insurance program for five years and provide various reforms to 
the program, including the phasing in of actuarial rates for 
newly mapped homeowners and the elimination of subsidized rates 
over time for certain categories of properties. H.R. 1264 would 
direct the NFIP to offer actuarially priced optional wind 
insurance policies and would prohibit insurers from including 
anti-concurrent causation provisions in their homeowners 
insurance policies. On April 22, 2010, both bills were ordered 
favorably reported; on July 15, 2010, the House of 
Representatives passed H.R. 5114 by a recorded vote of 329 to 
90.
    HUD Mission, Management Reform and Staffing. Both the 
Committee and Subcommittee provided oversight of HUD's mission, 
management reform, and staffing with numerous hearings and 
legislation as well as correspondence and meetings with HUD and 
other federal agency officials; state and local housing 
officials; the housing industry; and affordable housing, 
consumer and civil rights advocates. Specific areas of HUD's 
mission, management, and staffing that the Committee and 
Subcommittee focused on include FHA, public housing, Section 8, 
HUD-assisted housing, the Neighborhood Stabilization Program, 
the McKinney-Veneto Homeless Programs; housing counseling, fair 
housing, green development, veterans housing, disaster 
assistance, Native American housing, Community Development 
Block Grant Program, RESPA, and the SAFE Act.
    Project-Based Section 8 Program. The Committee will 
continue to review the timeliness of Housing Assistance 
Payments for project-based Section 8 properties and may review 
the need to make statutory changes to ensure the timeliness of 
Housing Assistance Payments.
    Housing Counseling. The Committee held a briefing on March 
22, 2010, to provide an overview of the housing counseling 
industry and the role of nonprofit housing counselors for 
Congressional staff. The Dodd-Frank Act contained a provision 
to establish an Office of Housing Counseling within HUD to 
boost homeownership and rental housing counseling.
    On May 13, 2009, the Subcommittee on Housing and Community 
Opportunity held a hearing on the role of NeighborWorks and 
housing counseling intermediaries in preventing foreclosures 
through housing counseling. The hearing focused specifically on 
challenges and outcomes under the National Foreclosure 
Mitigation Counseling (NFMC) Program, a NeighborWorks program 
established to provide foreclosure counseling to troubled 
homeowners by qualified foreclosure counseling intermediaries 
receiving grant funding under the program.
    Fair Housing. The Committee met with staff from the 
Government Accountability Office on several occasions as the 
GAO carried out a report requested by Members of the Committee 
on HUD's oversight and enforcement of the statutory mandate to 
ensure that HUD programs affirmatively further fair housing. 
The GAO issued a report (GAO-10-905) in October 2010 entitled 
``Housing and Community Grants: HUD Needs to Enhance Its 
Requirements and Oversight of Jurisdictions' Fair Housing 
Plans.'' Members of the Committee who requested the report have 
written to HUD to recommend that the Department implement each 
of the GAO report's recommendations.
    On January 20, 2010, the Subcommittee on Housing and 
Community Opportunity held a legislative hearing on H.R. 476, 
the ``Veterans, Women, Families with Children, and Persons with 
Disabilities Housing Fairness Act of 2010.'' The bill would 
authorize HUD to establish a nationwide housing discrimination 
testing program with an authorization of $15 million annually 
for five years; authorize $42.5 million annually for five years 
for the HUD Fair Housing Initiatives Program; and establish a 
$5 million competitive grant program to study the root causes 
and effects of housing discrimination. On May 27, 2010, the 
Subcommittee held a subcommittee markup of H.R. 476 and passed 
the bill out of the subcommittee. The full Committee favorably 
reported the bill by voice vote on July 28, 2010.
    Green Development. On September 19, 2010, the Committee 
held a hearing on H.R. 4690, the ``Livable Communities Act of 
2010,'' which would codify the Office of Sustainable 
Communities at HUD, establish an independent, interagency 
council on sustainable communities within the Executive Branch, 
and authorize a comprehensive planning grant program for 
municipalities and a sustainability challenge grant program to 
help communities execute their comprehensive regional plans.
    The Subcommittee on Housing and Community Opportunity held 
two hearings in June 2009 on H.R. 2336, the ``Green Resources 
for Energy Efficient Neighborhoods Act of 2009 or GREEN Act of 
2009.'' The bill would create programs within HUD that are 
designed to make residences energy efficient to the 2009 
International Energy Conservation Code (IECC), which contains 
energy efficiency criteria for residential and commercial 
buildings, as well as additions to existing buildings. The 
witnesses testified about the importance of affordable green 
housing, especially for low-income families living in multi-
family housing projects. On April 22, 2010, the Committee 
favorably reported H.R. 2336 by voice vote.
    Housing and Services. The Committee will conduct a hearing 
or a series of hearings on the delivery of housing-based social 
services, including child care, education, and employment 
training for low income families, and mental health and 
substance addiction services for chronically homeless 
individuals. The Committee will also examine the extent to 
which affordable housing developers and their social service 
provider partners face challenges in financing these services.
    Oversight of Federal Housing Programs. The Committee will 
hold oversight hearings on other Federal housing programs run 
by HUD and the Rural Housing Service. In addition to examining 
whether these programs are meeting their housing missions, they 
will focus on the costs, spend out rates and oversight and 
accountability measures governing these programs.
    Real Estate Settlement Procedures Act (RESPA). The 
Committee provided oversight of RESPA implementation through 
meetings with stakeholders and with HUD. The final RESPA rule 
was published on November 17, 2009 (73 FR 68204) and went into 
full effect January 1, 2010. The Dodd-Frank Wall Street Reform 
and Consumer Protection Act of 2010 (P.L. 111-203) contained 
provisions to transfer enforcement of RESPA to the Bureau of 
Consumer Financial Protection in order to streamline and 
strengthen consumer protections during the real estate 
settlement process.
    Escrows. As part of the debate on H.R. 1728, the Mortgage 
Reform and Anti-Predatory Lending Act, the Committee explored 
problems related to the establishment and servicing escrow 
accounts. Title V of H.R. 1728 contained reforms drafted by 
Representatives Paul E. Kanjorski and Judy Biggert requiring 
the establishment of escrow accounts for homeowners with less-
than-perfect credit scores. The title also established new 
disclosures for homeowners who waive escrow services and 
required lenders to include escrow estimates in repayment 
analysis prepared in conjunction with the establishment of a 
mortgage on a residential property. H.R. 1728 passed the 
Committee on April 29, 2009, and the House on May 7, 2009. The 
Kanjorski-Biggert escrow reform provisions contained in H.R. 
1728 became law in Subtitle E, Title XIV of the Dodd-Frank Act.
    Mortgage Broker Licensing and Oversight. The Committee 
provided oversight of the promulgation of the S.A.F.E. Mortgage 
Licensing Act of 2008, which established a mortgage originator 
licensing system and registry to better protect homebuyers. The 
Chairman wrote to HUD on May 13, 2010 requesting that HUD 
clarify application of the Act to activities concerning 
compensation and gain. The Chairman also wrote to HUD on July 
22, 2010 requesting guidance on the S.A.F.E. Act implementation 
date, information regarding the unique status of manufactured 
housing retailers, and the consideration of a state imposed de 
minimis standard. HUD agreed to clarify the application of the 
S.A.F.E. Act towards activities concerning compensation and 
gain, provided guidance on the implementation date, declined to 
agree that states have authority to implement a de minimis 
standard, and indicated it would consider the unique status of 
manufactured housing retailers in a final rule. The Dodd-Frank 
Wall Street Reform and Consumer Protection Act of 2010 
contained provisions to transfer enforcement of the S.A.F.E. 
Act to the Bureau of Consumer Financial Protection to further 
enhance consumer protections with respect to mortgage loan 
origination and licensing.
    Impact of Bankruptcy Cram Down on the Mortgage Market. The 
Committee will conduct oversight on the impact of bankruptcy 
cram down legislation on the mortgage market, in general, and 
specifically on the programs operated by the FHA and the RHS. 
The oversight review will include the impact of bankruptcy cram 
down on continued lender participation, the solvency of the FHA 
Mutual Mortgage Insurance Fund and the solvency of the RHS 
Section 502 program. The Committee will also conduct oversight 
on the impact of cram down legislation on primary mortgage 
interest rates, overall access to mortgage credit, especially 
for borrowers with weaker credit histories and the future of 
the GSE's and the securitization market.
    Oversight of Entities Receiving Government Funds. Both the 
Committee and Subcommittee provided oversight of for-profit and 
non-profit entities receiving government funds through federal 
housing programs administered by HUD, FEMA, the Departments of 
Agriculture and Treasury. This oversight included GAO reports, 
hearings and legislation, as well as correspondence and 
meetings with relevant officials and stakeholders. Specific 
areas of review include loan modifications and mortgage 
foreclosure prevention, public housing, FHA, Section 8, HUD-
assisted housing, rural housing, the Neighborhood Stabilization 
Program, the McKinney-Vento Homeless Programs, housing 
counseling, fair housing, disaster assistance, and the 
Community Development Block Grant Program.

                               Insurance

    Insurance Regulatory Modernization. While the States have 
long functioned as the primary regulators of the insurance 
marketplace, during the 111th Congress the Subcommittee on 
Capital Markets, Insurance and Government Sponsored Enterprises 
continued to examine both Federal and State efforts to 
modernize and improve insurance regulation. On May 14, 2009, 
for example, the Capital Markets Subcommittee convened a 
hearing entitled ``How Should the Federal Government Oversee 
Insurance?'' The hearing focused on insurance regulatory 
reform, particularly in light of the larger regulatory reform 
questions raised and efforts undertaken as a result of the 
financial crisis.
    On June 16, 2009, the Capital Markets Subcommittee 
subsequently held a hearing entitled ``Systemic Risk and 
Insurance.'' The hearing explored how insurance would fit into 
a restructuring of the financial services regulatory system, 
including an examination of the complexities of insurance firms 
and insurance holding companies. The hearing also reviewed 
particular types of insurance products to determine whether 
they pose a risk to the insurance or financial services system 
and are of national significance.
    On March 18, 2010, the Capital Markets Subcommittee met at 
a hearing entitled ``Insurance Holding Company Supervision.'' 
The hearing focused on:
           the existing authorities of State and 
        Federal regulators with regard to insurers and 
        affiliated companies under the same holding company;
           the supervision and the coordination among 
        State and Federal regulators of these financial 
        entities; and
           how insurance holding company regulation 
        differs from bank and thrift holding company 
        regulation.
    Since the 109th Congress, the Committee has additionally 
favorably reported and the House has repeatedly passed a 
version of the Nonadmitted and Reinsurance Reform Act. This 
legislation to streamline the regulation of surplus lines 
insurance and reinsurance was included in House-passed H.R. 
4173 in the 111th Congress and became law as part of the Dodd-
Frank Act on July 21, 2010. Likewise, those sections of the 
Dodd-Frank Act addressing the enhanced supervision and orderly 
resolution of systemically significant financial institutions 
drew heavily on the ongoing insurance regulatory modernization 
inquiries of the Capital Markets Subcommittee in the 110th and 
111th Congresses and represent significant advances in the 
modernization of insurance supervision in the United States.
    Financial Guarantee Insurance. The financial guarantee 
insurance industry with products like municipal bond insurance, 
credit default swaps, and mortgage insurance played a central 
role in the credit and liquidity crisis of 2008 and 2009. 
Following on the Committee's focus on the bond insurance 
segment of the financial guarantee insurance industry in the 
110th Congress, during the 111th Congress the Committee 
undertook closer oversight and review of the mortgage insurance 
segment of the financial guarantee insurance industry.
    On July 29, 2010, the Capital Markets Subcommittee held a 
hearing to examine the ``Future of Housing Finance Reform: The 
Role of Private Mortgage Insurance.'' The proceeding focused on 
the business model, structure, regulation, history and 
performance of the private mortgage insurance (PMI) industry. 
The hearing also reviewed the PMI industry's experiences during 
the recent financial crisis and explored the need to alter the 
laws currently governing the industry.
    The Committee monitored the ongoing efforts of the 
financial guarantee industry to recapitalize itself, and 
Committee staff regularly met with regulators, insurers and 
industry experts to examine these matters. On July 7, 2009, 
Capital Markets Subcommittee Chairman Kanjorski also sent a 
letter to the U.S. Department of the Treasury recommending that 
the Federal government help to recapitalize mortgage insurers 
by providing funding access to the Troubled Asset Relief 
Program. Chairman Kanjorski additionally recommended that the 
Treasury Department consider how the mortgage insurance 
industry could be directly regulated at the Federal level.
    On March 25, 2010, Capital Markets Subcommittee Chairman 
Kanjorski publicly commented that the ongoing troubles in the 
bond insurance industry demonstrated the need for better 
information at the Federal level about developments in the 
insurance industry. The Committee favorably reported out of the 
Committee H.R. 2609, legislation introduced by Chairman 
Kanjorski to create a Federal Insurance Office (FIO) within the 
Treasury Department. As enacted into law in Title V, Subtitle A 
of the Dodd-Frank Act, the FIO is authorized to gather 
information about the insurance industry and to monitor the 
insurance industry for systemic risk purposes, among other 
duties and responsibilities.
    Insurer Access to the Troubled Asset Relief Program (TARP). 
In addition to its oversight of the general market impacts of 
the TARP program and the Emergency Economic Stabilization Act 
of 2008, the Committee gave particular attention to issues 
surrounding insurer access to TARP during the 111th Congress. 
Most notably, in March 2009 the Committee and the Capital 
Markets Subcommittee held a pair of hearings that focused 
substantially on the Federal intervention at the American 
International Group (AIG). Leading up to and following these 
hearings the Committee maintained constant, ongoing 
communication with officials at the Federal Reserve Bank of New 
York, the Treasury Department, the Government Accountability 
Office and AIG to monitor progressive changes to and plans for 
the winding-up of the substantial Federal assistance made 
available to AIG in late 2008 and early 2009. Likewise, the 
Committee conducted ongoing oversight and regular reviews of 
the limited additional insurance company participation in the 
TARP program. The Committee received confirmation of the 
repayment of TARP fund by all insurers, other than AIG, and 
received detailed information on the planned repayment of TARP 
funds by AIG.
    Regulation of Insurer Systemic Risks. On March 5, 2009, the 
Capital Markets Subcommittee held a hearing entitled 
``Perspectives on Systemic Risk'' that began the Committee's 
examination into systemic risk at complex financial 
institutions, including insurers. This examination and 
Committee's ongoing reviews culminated with the inclusion of 
insurers into the Dodd-Frank Act's provisions designed to 
address the supervision and orderly resolution of systemically 
significant financial institutions.
    Terrorism Risk Insurance. Throughout the 111th Congress, 
Committee staff monitored developments related to the 
implementation of the Terrorism Risk Insurance Program, 
reviewed studies about the economic security initiative, and 
examined budget proposals by the Administration to alter the 
program.
    Agent and Broker Licensing Reform. H.R. 2554, the National 
Association of Registered Agents and Brokers Reform Act of 
2010, was forwarded by the Committee to the House, where the 
legislation passed by voice vote on March 3, 2010. H.R. 2554 
establishes a completely reciprocal licensing process for 
insurance agents and brokers. No further action occurred on 
H.R. 2554 in the 111th Congress.
    Surplus Lines and Reinsurance. As in the prior two 
Congresses, the House in the 111th Congress passed H.R. 2571, 
the Nonadmitted and Reinsurance Reform Act, on September 9, 
2009. The measure, similar to versions previously approved by 
other Congresses, updates State-based laws with respect to 
surplus lines insurance and reinsurance markets. During the 
initial consideration of the comprehensive financial services 
regulatory reform in the House in December 2009, Oversight 
Subcommittee Chairman Moore and Capital Markets Ranking Member 
Garrett successfully offered an amendment on the floor to 
incorporate H.R. 2571 into H.R. 4173, the Wall Street Reform 
and Consumer Protection Act of 2009. The Moore-Garrett 
amendment remained in the Dodd-Frank Act and became law as 
Title V, Subtitle B.
    Guarantee Funds. The role and appropriate reliance on the 
system of State insurance guarantee funds remained a 
consideration of the Committee during the debate on the broader 
regulatory reform provisions designed to address the 
supervision and orderly resolution of systemically significant 
financial institutions. As a result, the Committee specifically 
addressed the central role and importance of State insurance 
guarantee funds in the orderly resolution of complex financial 
institutions that include insurance affiliates or subsidiaries. 
The Committee's conclusions in this regard were incorporated 
into the FDIC dissolution provisions of Title II of the Dodd-
Frank Act and became public law on July 21, 2010.
    Insurance Investments. Committee staff reviewed proposals 
like those found in H.R. 1479, the Community Reinvestment 
Modernization Act, to require greater disclosures about the 
availability of insurance products and information about the 
investments of insurers. Committee staff also reviewed State 
insurer requirements to help fund the development of affordable 
housing, commercial and industrial real estate projects, small 
businesses, and other community initiatives.
    Insurance Information. Building substantially on the 
oversight and legislative activities in the areas of insurance 
information and insurance regulatory reform of the Capital 
Markets Subcommittee throughout the 110th and 111th Congresses, 
the Committee held a hearing on October 6, 2009, entitled 
``Capital Markets Regulatory Reform: Strengthening Investor 
Protection, Enhancing Oversight of Private Pools of Capital, 
and Creating a National Insurance Office.'' The third panel at 
this hearing examined H.R. 2609, the Insurance Information Act 
of 2009. H.R. 2609 was the 111th Congress iteration of Capital 
Markets Subcommittee Chairman Kanjorski's Office of Insurance 
Information Act of 2008. Both bills create a first ever 
resource center within the Treasury Department to provide 
advice and expertise on insurance policy to the Administration 
and Congress.
    On December 2, 2009, H.R. 2609 passed the Committee by a 
voice vote. The legislation to create the Federal Insurance 
Office subsequently passed the House as part of H.R. 4173 and 
became law as part of the Dodd-Frank Act. Since then, Committee 
staff has monitored efforts by the Treasury Department to 
implement the Federal Insurance Office Act of 2010 and to 
appoint the first Director of the Federal Insurance Office.
    Credit Scoring and Insurance. On May 12, 2010, the 
Subcommittee on Financial Institutions and Consumer Credit held 
a hearing entitled ``Use of Credit Information Beyond Lending: 
Issues and Reform Proposals.'' The hearing reviewed the 
methodology, use and impact of personal consumer credit 
information in the financial services marketplace. The first 
panel focused on how credit-based insurance scores are used in 
the rating and underwriting of insurance and efforts to improve 
the supervision and consumer understanding of the use of 
credit-based insurance scores. The second panel focused on 
other uses of credit information.
    Natural Catastrophe Insurance. On March 10, 2010, the 
Capital Markets Subcommittee and the Subcommittee on Housing 
and Community Opportunity jointly held a hearing entitled 
``Approaches to Mitigating and Managing Natural Catastrophe 
Risk: H.R. 2555, The Homeowners' Defense Act.'' The hearing 
focused on H.R. 2555 which would provide Federal encouragement 
for States to develop State-sponsored reinsurance programs 
designed to enhance the efficiency by which catastrophic risks 
are transferred into the capital markets. Specifically, H.R. 
2555 would: (1) establish a non-profit consortium to coordinate 
catastrophe risk management actions by the States; (2) provide 
for a Federal guarantee of debt obligations issued by eligible 
state-based catastrophe insurance programs; (3) establish a 
Federal program to provide reinsurance to eligible state-based 
catastrophe insurance programs; (4) authorize a new Federal 
grant program to help the States prevent and mitigate losses 
from natural disasters; and (5) direct the GAO to study and 
report on the use of risk-based pricing by state-based 
catastrophe insurance programs. H.R. 2555 passed the Committee 
on April 27, 2010, and was favorably reported to the House on 
July 13, 2010.
    Retirement Products. Throughout the 111th Congress, the 
Committee monitored ongoing developments regarding the 
regulation of indexed annuities and litigation surrounding the 
U.S. Securities and Exchange Commission's indexed annuities 
rule, commonly known as Rule 151(A). Seeking to await judicial 
resolution of the issues relating to Rule 151(A), the Committee 
undertook no formal action with regard to the regulation of 
indexed annuities. The Committee's deference to the judicial 
process in this regard was overtaken by the inclusion in the 
conference on the Dodd-Frank Act of Section 989J, legislative 
language intended to preclude oversight of the sale of indexed 
annuities by the Securities and Exchange Commission.
    Reinsurance. During the Committee's consideration of H.R. 
2609, the Insurance Information Act of 2009, Oversight 
Subcommittee Chairman Dennis Moore and Representative John 
Campbell offered an amendment requiring the new office to 
conduct a study on the global reinsurance market and the 
critical role it plays supporting the U.S. insurance markets. 
The Moore-Campbell amendment was ultimately incorporated into 
the Dodd-Frank Act and enhanced to include an additional study 
by the new Federal Insurance Office focused on the ability of 
State regulators to access reinsurance information for 
regulated companies in their jurisdictions following the 
enactment of the Nonadmitted and Reinsurance Reform Act as part 
of the Dodd-Frank Act.
    International Developments. In its ongoing review and 
legislative actions in the areas of insurance regulatory reform 
and insurance information, the Capital Markets Subcommittee and 
the Committee sought out and incorporated, as appropriate, 
information regarding international developments in insurance 
regulatory oversight. Most notably, during its hearing entitled 
``Systemic Risk and Insurance'' on June 16, 2009, the Capital 
Markets Subcommittee received testimony from the European 
Parliament's rapporteur (sponsor) for legislation to create a 
European Supervisory Authority for Insurance. Throughout the 
development of the insurance-related sections of the Dodd-Frank 
Act, the Committee also sought and received frequent input from 
foreign governments, foreign insurers and reinsurers operating 
in the United States, and public advocacy experts specializing 
in the possible consumer and international trade implications 
of the insurance regulatory and insurance information 
provisions.

                         International Finance

    Annual Report and Testimony by the Secretary of the 
Treasury on the State of the International Financial System and 
International Monetary Fund Reform. Pursuant to 22 U.S.C. 262r-
4, the Secretary of the Treasury submitted a report to Congress 
in October 2009 regarding the state of the international 
financial system. On September 22, 2010, the Committee held a 
hearing, entitled ``The State of the International Financial 
System, Including International Regulatory Issues Relevant to 
the Implementation of the Dodd-Frank Act,'' at which Timothy 
Geithner, Secretary of the Treasury, was the only witness. This 
hearing, which was intended to assess the contents of the 
October report and discuss other timely issues regarding the 
state of the international financial system, focused primarily 
on the state of efforts by the Basel Committee on Banking 
Supervision to reach a new international capital accord, with 
emphasis on how the new capital accord being crafted could be 
expected to affect U.S. banking entities.
    In spring 2009, Chairman Frank cautioned Treasury and 
International Monetary Fund (IMF) officials that unless a 
substantial amount of IMF resources was made available to help 
the world's poorest countries that were being increasingly 
affected by the global economic crisis, there may not be 
sufficient support in the House to secure passage of the 
Administration's request to boost IMF resources. The policy 
goal of insisting that some of the profits from the proposed 
sale of IMF gold should be used to help alleviate the most 
vulnerable countries' burdens, was incorporated as a 
congressional directive in the ``Supplemental Appropriations 
Act, 2009,'' thus strengthening the hand of the Treasury 
Secretary to negotiate such an outcome.
    On May 13, 2009, Chairman Frank wrote to IMF Managing 
Director Dominique Strauss-Kahn to express his appreciation for 
the IMF's commitment under Strauss-Kahn's leadership to showing 
a greater understanding of the social dimension that must be 
present when decisions about economic assistance are made.
    On May 13, 2009, the Subcommittee on International Monetary 
Policy and Trade held a hearing entitled, ``Implications of the 
G-20 Leaders Summit for Low-Income Countries and the Global 
Economy.'' The hearing focused on the challenges faced by 
emerging markets and developing countries in the current global 
economic downturn and the importance of providing resources 
through the international financial institutions to emerging 
markets and developing countries to help finance 
countercyclical spending, bank recapitalization, 
infrastructure, trade finance, balance of payments support, 
debt rollover, and social support.
    On July 8, 2009, Chairman Frank wrote to IMF Managing 
Director Dominique Strauss-Kahn emphasizing that he was able to 
work to help secure passage of the IMF package in the House in 
large part because he was able to assure his Democratic 
colleagues that the most vulnerable and poor low-income 
countries would not be left behind, and Frank reminded Strauss-
Kahn how important it was to the United States that he push for 
an international consensus on this policy among IMF members.
    On January 27, 2010, the Subcommittee on International 
Monetary Policy and Trade held a hearing entitled ``The State 
of Global Microfinance: How Public and Private Funds Can 
Effectively Promote Financial Inclusion for All.'' Members 
examined the microfinance industry as one of the great success 
stories of foreign aid and multilateral development banks' 
private sector initiatives, providing millions of poor people 
with basic financial services. Yet there are still gaps in the 
availability of microfinance funding, especially in Sub-Saharan 
Africa, in part due to lack of capacity to run microfinance 
programs, and weak capital market frameworks that limit the 
flows and effectiveness of capital. Data indicate that 
countries can improve levels of financial inclusion by creating 
effective policy and regulatory oversight.
    On November 16, 2010, the Subcommittee on International 
Monetary Policy and Trade held a hearing entitled ``The Global 
Financial Crisis and Financial Reforms in Nigeria.'' This 
hearing examined the financial reforms being implemented in 
Nigeria and the impact of the global financial crisis in Sub-
Saharan Africa, which suffered from the secondary effects of 
the global financial crisis as demand and prices for Africa's 
primary exports collapsed, along with falling remittances. 
International response to the crisis included a dramatic 
increase in IMF resources, with some reweighting of SDR 
allocations to the benefit of developing countries, including 
in Africa. Windfall profits from planned IMF gold sales 
garnered an estimated $6 billion in additional capital 
available for least developed countries, of which Africa is 
expected to be a primary beneficiary. The World Bank and 
African Development Bank dramatically increased lending and 
grant programs to Africa in response to the crisis. In Nigeria, 
the governor of the Central Bank led efforts to modernize the 
country's financial and capital markets, with the Nigerian 
government providing a $4 billion bailout to several domestic 
banks that were near collapse while introducing stringent new 
capital rules.
    On May 20, 2010, the Subcommittee on International Monetary 
Policy and Trade and the Subcommittee on Domestic Monetary 
Policy and Technology held a joint hearing entitled ``The Role 
of the International Monetary Fund and Federal Reserve in 
Stabilizing Europe.'' Members discussed the Federal Reserve's 
plan to re-open temporary U.S. dollar liquidity swap facilities 
with foreign central banks and the significant role of the 
International Monetary Fund in the effort to help foster 
financial stability in Europe, including a committment of 
approximately $40 billion of IMF funds, as part of a larger 
multilateral financing package, to help the Greek government 
address its economic challenges.
    Exchange Rates. The Committee will review and assess the 
semi-annual report to Congress from the Secretary of the 
Treasury on International Economic and Exchange Rate Policies 
pursuant to the Omnibus Trade and Competitiveness Act of 1988. 
The Committee will monitor developments related to the exchange 
rate policies of the United States' major trading partners and 
will pay particular attention to the policies of countries that 
seek to maintain a fixed exchange rate for their currencies. 
The Committee will assess the effects of these currency 
practices on the competitiveness of U.S. firms and on the 
stability of the international financial system.
    Trade in Financial Services. The Committee continued to 
monitor the negotiation of financial services and investment 
provisions in the U.S.-Korea Free Trade Agreement, with 
particular attention to the elimination of barriers to the 
delivery of financial services in Korea, such as foreign 
ownership limitations, product and service restrictions, client 
restrictions, and non-transparent regulations.
    Global Capital Flows. The Committee will monitor the 
effects of the flow of capital globally, and in particular, 
trends in foreign countries' investments of their large 
currency reserves in the United States and other countries. The 
Committee will assess the effects of the investment of these 
reserves on global financial stability and on multilateral 
policy initiatives. The Committee will also assess U.S. and 
multilateral policies on the regulation of capital flows.
    Trade in Financial Services. The Committee continued to 
monitor the negotiation of financial services and investment 
provisions in the U.S.-Korea Free Trade Agreement, with 
particular attention to the elimination of barriers to the 
delivery of financial services in Korea, such as foreign 
ownership limitations, product and service restrictions, client 
restrictions, and non-transparent regulations.
    Export-Import Bank of the United States. The Subcommittee 
on Oversight and Investigations (O&I) and the Subcommittee on 
International Monetary Policy and Trade (IMPT) held a hearing 
entitled ``Ex-Im Bank Oversight: The Role of Trade Finance in 
Doubling Exports over Five Years,'' held on September 29, 2010. 
The hearing focused on the work of the Export-Import Bank of 
the United States (``Ex-Im Bank''). The Subcommittees reviewed 
its activities to promote export growth, especially since the 
onset of the global financial crisis and recession, which made 
credit availability more challenging for businesses. The 
Subcommittees also examined what role Ex-Im Bank is and should 
be playing in the Obama Administration's National Export 
Initiative to double exports over five years. Another key issue 
was ensuring small businesses had adequate access to trade 
finance through Ex-Im.
    The O&I and IMPT Subcommittee Chairs and Ranking Members 
transmitted a letter to GAO the day of the hearing, asking that 
they review ``how Ex-Im's efforts compare to the export 
financing efforts of other export credit agencies,'' and report 
back to Congress. This initial hearing lays the groundwork for 
reauthorizing the Export-Import Bank when their authority 
expires in 2011.
    International Clean Technology Fund. After examining at a 
hearing last Congress the Administration's proposal to support 
a multilateral ``Clean Technology Fund'' to help developing 
economies develop clean technology to reduce greenhouse gas 
emissions, the Committee worked with the leadership and the 
House Appropriations Committee to include in the ``Consolidated 
Appropriations Act, 2010'' authorization for U.S. contributions 
to a ``Clean Technology Fund'' at the World Bank, which 
included policy conditions on country and project eligibility, 
restricted the types of projects, technologies, and economic 
sectors that could receive funds, and limited the amount of 
funds that could be allocated to any one country.
    Counter-Terrorism Financing Policy. On May 26, 2010, the 
Subcommittee on Oversight and Investigations held a hearing 
entitled ``Anti-Money Laundering: Blocking Terrorist Financing 
and Its Impact on Lawful Charities.'' The hearing examined how 
money laundering laws and regulations are enforced with respect 
to charitable organizations and government efforts to stop the 
flow of money to terrorist organizations.
    On September 28, 2010, the Subcommittee on Oversight and 
Investigations held a hearing entitled ``A Review of Current 
and Evolving Trends in Terrorism Financing.'' The hearing 
examined how terrorist organizations continue to finance their 
activities, how these organizations have altered their 
financing techniques to avoid current methods exercised by the 
U.S. government to stem the flow of money to terrorists, and 
potential vulnerabilities in the financial institutions system 
of the U.S. and the world that could be exploited by terrorist 
organizations.
    Committee staff met regularly with staff of FinCEN to 
discuss issues related to the Terrorist Financing Working Group 
and FinCEN's role as our nation's foreign intelligence unit 
(FIU) in coordinating with Egmont and the Financial Action Task 
Force (FATF).
    U.S. Oversight Over the International Financial 
Institutions (IFIs). Throughout the 111th Congress, Committee 
staff met on a regular basis with Treasury officials and 
representatives from the multilateral development banks (MDBs) 
to examine MDB requests for significant general capital 
increases from donor countries, and staff closely monitored the 
status of proposed reforms at each development institution and 
emphasized that these reform agendas would be an integral part 
of the capital increase request process.
    In spring 2009, Committee staff joined a policy expert from 
the AFL-CIO, a Washington representative of the International 
Trade Union Confederation, and a trade and labor expert from 
the Carnegie Endowment for International Peace to negotiate 
with the World Bank a moratorium on the Bank's use of its 
``Employing Workers'' Indicator, which encourages the reduction 
of workers' protection, in its annual ``Doing Business'' 
report. The Bank also agreed to convene a consultative group to 
propose possible changes to the Indicator and to work to 
develop a new workers' protection indicator that would 
encourage compliance with core labor standards and improved 
social protection.
    In June 2009, Committee staff participated in the Inter-
American Development Bank's (IDB's) Washington, D.C., 
consultations with IDB officials and civil society 
representatives to provide input into a significant overhaul of 
the IDB's inspection mechanism. Committee staff followed up 
with members of the IDB's executive board, and in particular 
with members of the Board's Organization, Board Matters and 
Human Resources Committee, to stress that congressional 
consideration of any increase in the IDB's capital base would 
be linked, in part, to the degree the new mechanism was 
independence from Bank management, its overall transparency, 
the adequacy of the mechanism's budget, the elimination of 
conflicts of interest, and the degree of requester 
participation in the process.
    On September 10, 2009, the Committee held a hearing titled, 
``The World Bank's Disclosure Policy Review and the Role of 
Democratic Participatory Processes in Achieving Successful 
Development Outcomes.'' The hearing focused on the World Bank's 
proposed updated policy on information disclosure and examined 
how the lack of direct democratic accountability at 
multilateral institutions like the World Bank makes it 
necessary that other control mechanisms--such as increased and 
timely access to Bank documents, greater transparency and 
parliamentary oversight, and broad public debate about the 
Bank's development policies--are in place to ensure that broad, 
global international interests are being promoted. The hearing 
also examined the factors that drive or hinder change in 
complex international institutions and the principal 
instruments and mechanisms that leverage change.
    On March 23, 2010, Chairman Frank spoke at the G-20 meeting 
of Labor Ministers in Washington, D.C., on the importance of 
governments integrating the expertise of their respective labor 
ministries when loans or projects affecting labor markets and 
worker rights come before the Boards of the multilateral 
development institutions.
    On March 26, 2010, Chairman Frank and Senate Chairmen Kerry 
and Leahy wrote to World Bank President Zoellick asking the 
World Bank for more environmental and social commitments from 
Eskom Holdings Ltd. before lending the South African utility 
$3.75 billion to build one of the world's largest coal-fired 
power plants.
    On May 25, 2010, Chairman Frank wrote to World Bank 
President Zoellick regarding ongoing biases reflected in the 
World Bank's annual ``Doing Business'' Report.
    On May 26, 2010, Chairman Frank and Representative McGovern 
sent a letter to the Department of the Treasury and IDB 
President Moreno recommending Ms. Korinna Horta for one of the 
five open Panel positions on the IDB's newly established 
``Independent Consultation and Investigation Mechanism.'' In 
recommending Ms. Horta, the members noted her strong background 
in international economic, social, and environmental 
development, her extensive investigative fieldwork, her 
experience working with indigenous peoples and other vulnerable 
population groups, and her understanding of the missions and 
policy frameworks of the multilateral development institutions.
    From August 27 to September 4, 2009, in an effort to better 
understand the role of the multilateral development banks and 
the impact of the global financial crisis on development 
efforts in Africa, Representative Meeks led a bipartisan 
Congressional delegation to Tunisia, Rwanda, and Zimbabwe. In 
each country, the members met with top government officials, 
parliamentarians, civil society leaders, and representatives of 
the private sector, including American companies. As the 
temporary home of the African Development Bank (AfDB), in 
Tunisia the delegation met with the senior leadership of the 
AfDB for extended discussions about the institution's work 
across the continent, and ongoing reforms within the 
institution. In Rwanda, the delegation conducted site visits of 
development projects, including a small-holder farm benefiting 
from agricultural technical assistance, a road and bridge 
construction site, the Kigali University Teaching Hospital, and 
a textile factory. World Bank and International Monetary Fund 
lending to Zimbabwe has been suspended since 2000 due to 
nonpayment of arrears. Following particularly violent national 
elections in 2008, Zimbabwe has begun to stabilize under a 
fragile unity government. Members met with the President, the 
Prime Minister, the Minister of Finance, and parliamentarians 
responsible for drafting Zimbabwe's new constitution.
    From February 14-21, 2010, Representative Meeks and 
Representative Watt led a bipartisan congressional delegation 
to Nigeria, Ethiopia, Zimbabwe, and Botswana. The purpose of 
the trip was to evaluate the role of international financial 
institutions on the continent, the role of central banks in 
establishing stable monetary policy that leads to economic 
growth, and the financial and regulatory reforms being 
implemented in Africa's major economies to achieve sustained 
economic recovery from the global financial crisis.
    Replenishment of the International Development Association 
(IDA) and the African Development Fund (AfDF). In June 2009, 
the Committee worked with the House and Senate Appropriations 
Committees to incorporate into the ``Supplemental 
Appropriations Act, 2009'' authorizations for U.S. 
contributions to the 15th replenishment of the International 
Development Association and the 11th replenishment of the 
African Development Fund, as well as Committee-passed policy 
language directing the Secretary of the Treasury to seek reform 
of the anti-worker indicator of the World Bank's annual ``Doing 
Business'' report and to increase the independence and 
effectiveness of the World Bank's Inspection Panel.
    On July 21, 2009, Chairman Frank, Chairman Obey, Chairman 
Lowey, and Chairman Meeks sent a letter to President Obama 
cautioning the President that continued insistence on his right 
through signing statements to ignore provisions of laws 
providing funds to international financial institutions would 
make it highly unlikely that such funds would be provided in 
the future.
    Replenishment of the Asian Development Fund. On February 
18, 2009, Chairman Frank and Senate Chairman Leahy wrote to 
Treasury Secretary Geithner expressing concern about the 
inadequacy of the Asian Development Bank' s (AsDF) third draft 
of its safeguard policy update, including several areas in 
which the AsDF fell short of international standards.
    As the 111th Congress began moving towards adjournment, 
Committee staff coordinated with the House and Senate 
Appropriations Committees and the Senate Foreign Relations 
Committee in an effort to include in the year's final 
appropriations measure authorizations for U.S. participation in 
the Asian Development Bank's 5th general capital increase, the 
Asian Development Fund's 9th replenishment, and authorization 
and policy language for the Clean Technology Fund.
    International Debt Relief. On July 21, 2010, Representative 
Waters and members of the Committee organized a letter to 
President Obama urging him to include an expanded debt relief 
effort as part of his plan to work to achieve the Millennium 
Development Goals.
    Institutionalizing Democratic Accountability at the IFIs. 
Because international economic institutions like the World Bank 
are at some distance from direct democratic accountability, the 
Committee will begin to examine ways to increase democratic 
participation and accountability within the IFIs. Based on 
their charters, the international financial institutions are 
accountable to the finance ministers of member countries, who 
may not always be impartial representatives of the people. The 
Committee will be calling on experts to undertake a study of 
various options to improve parliamentary oversight, including 
the possibility of forming an international parliamentarian 
committee, which would include both donor and recipient 
countries, before which officials of the IMF and World Bank 
could appear to review their institution's agendas and 
procedures.
    Sudan Accountability and Divestment Act. On February 23, 
2009, Chairman Frank, Representative Capuano, and 
Representative Barbara Lee requested a report from the GAO on 
the Sudan Accountability and Divestment Act of 2007 (P.L. 110-
174) to identify and evaluate actions that have been taken to 
implement the voluntary divestment provisions and compliance 
with the contract prohibition provisions in the Act.
    On November 30, 2010, the Subcommittee on International 
Monetary Policy and Trade held a hearing entitled ``Investments 
Tied to Genocide: Sudan Divestment and Beyond.'' The members 
discussed the impact of the Sudan Accountability and Divestment 
Act (SADA), which Congress passed in 2007. The law authorizes 
States and investment companies to divest from companies with 
certain business ties to Sudan and prohibits these companies 
from receiving any U.S. federal contracts. By drafting SADA in 
a manner that gives States and investment companies the right, 
but not the obligation to divest from, or prevent investment in 
select companies with business ties to the Sudan Government in 
Khartoum, the Act empowers investors to refrain from providing 
financial support to businesses that they believe are 
supporting a civil war and genocide, while providing investment 
managers safe harbor from prosecution for doing so. Witnesses 
spoke to the documented impact of SADA, and lessons learned 
thus far from the experience of SADA's implementation. In 
particular, the GAO report indicates that American investors 
have indeed withdrawn funds from targeted companies and 
investments. Witnesses and members discussed the tradeoff 
between American engagement in conflict areas such as Sudan, 
including by American companies and investors who may promote 
social and civic engagement that help to alleviate the 
suffering of affected people, versus the withdrawal of American 
capital which may open the door for other investors and 
businesses who may not seek to promote any resolution to the 
conflict, or be supportive of local humanitarian initiatives.
    Strengthening Sanctions Against Iran. On March 12, 2009, 
the Subcommittee on International Monetary Policy and Trade 
held a legislative hearing on H.R. 1327, the ``Iran Sanctions 
Enabling Act of 2009.'' H.R. 1327 would outline standard 
procedures, and provide federal authority, for states, local 
governments and educational institutions to divest, if they 
choose, their public pension funds from foreign firms that have 
$20 million or more invested in Iran's energy sector. The bill 
would also prohibit legal action against asset managers who 
divest from or elect not to invest in securities of companies 
doing that level of business in Iran's energy sector. The House 
passed two similar proposals in the 110th Congress, although 
the Senate did not act on either bill. On April 28, 2009, the 
Committee considered the bill and ordered it to be reported (as 
amended) by voice vote. On October 14, 2009, the measure passed 
the House by a vote of 414-6 under suspension of the rules.
    On April 22, 2010, the Speaker appointed Chairman Frank, 
Chairman Meeks, and Representative Garrett as conferees from 
the Committee on Financial Services for consideration of 
certain provisions of H.R. 2194, the Comprehensive Iran 
Sanctions, Accountability, and Divestment Act of 2010, which 
fall within the jurisdiction of the House Financial Services 
Committee. The Senate version of the bill included legislative 
language very similar to the divestment provisions of the Iran 
Sanctions Enabling Act, and this language was successfully 
incorporated into the final conference report of the 
comprehensive Iran sanctions measure. H.R. 2194 became Public 
Law 111-195 on July 1, 2010.

         The Economy, Domestic Monetary Policy, and Technology

    The Economy and Its Impact on Living Standards. The 
Committee will examine the extent to which changes in the 
economy, and in particular changes in labor and capital 
markets, as well as changes in public policy, have altered the 
way in which policymakers should think about the relationship 
between economic growth, productivity growth, and growth in 
employment and incomes. The Committee will examine these 
relationships in an effort to determine policy responses that 
will increase our ability to improve the standard of living for 
American families. The Committee will examine the consequences 
of taking unprecedented monetary and fiscal policy moves 
simultaneously in an effort to stimulate new economic growth, 
and attempt both to determine the consequences of such moves 
and to discover actions that might be taken to avoid any severe 
negative effects.
    Conduct of Monetary Policy by the Board of Governors of the 
Federal Reserve System. The Committee conducted hearings in 
February and July, 2009 and 2010, to receive the semi-annual 
reports of the Chairman of the Board of Governors of the 
Federal Reserve System on the conduct of monetary policy.
    Management of 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, its 
conduct of monetary policy, and its role as a regulator with 
particular attention to compliance with anti-money laundering 
and anti-terrorist financing laws and regulations.
    Defense Production Act. Through bipartisan and bicameral 
cooperation, the Defense Production Act was re-authorized for 
an additional 5 years by Public Law 111-67.
    Committee on Foreign Investment in the United States. The 
Committee will monitor the implementation of the Foreign 
Investment and National Security Act of 2007, which reformed 
the Committee on Foreign Investment in the United States 
(CFIUS). The Committee will closely monitor CFIUS actions to 
seek to ensure that foreign investments that pose legitimate 
threats to national security are either rejected or the threats 
are effectively mitigated. The Committee will also monitor the 
extent to which the United States maintains a policy of 
openness toward foreign investment, so that investments that 
pose no threat to national security are able to go forward.
    Management of the Nation's Money: Activities of the Bureau 
of the Mint and the Bureau of Engraving and Printing. On July 
20, 2010, the Subcommittee on Domestic Monetary Policy and 
Technology held a hearing entitled ``The State of U.S. Coins 
and Currency.'' The Directors of the U.S. Mint and U.S. Bureau 
of Engraving and Printing, representatives of the Board of 
Governors of the Federal Reserve and U.S. Secret Service, and 
individuals representing the private sector, testified on 
issues related to the production and circulation of coins and 
currency and on numismatic items.
    Throughout the 111th Congress Committee staff met regularly 
with staff of the United States Mint and the Bureau of 
Engraving and Printing on a variety of issues, and Committee 
staff met with the directors of the two bureaus. Committee 
staff also met regularly with staff of the Board of Governors 
of the Federal Reserve System on matters related to the 
distribution and circulation of coins and currency.
    The U.S. Treasury Department's Financial Crimes Enforcement 
Network (FinCEN): On April 28, 2010, the O`I Subcommittee held 
a hearing on ``Reviewing FinCEN Oversight Reports.'' The 
Subcommittee received an update from the Financial Crimes 
Enforcement Network's (FinCEN) Director and examined oversight 
reports issued by GAO and the Treasury Department's Inspector 
General that looked at FinCEN's efforts with respect to 
Suspicious Activity Reports, Bank Secrecy Act compliance, and 
anti-money laundering. The Treasury Department established 
FinCEN in 1990 to provide a government-wide multisource 
financial intelligence and analysis network. FinCEN's operation 
was later expanded to include the responsibilities for 
administering the Bank Secrecy Act.
    Committee staff met with the Director of FinCEN and FinCEN 
staff regularly to discuss issues relating to the enforcement 
of Bank Secrecy Act (BSA) reporting requirements and 
examination practices, the promulgation of new regulations, the 
balance of responsive and analytical work performed by FinCEN 
and its utility to law enforcement, and the development of a 
cross-border money transfer monitoring program.
    Treasury's Office of Foreign Asset Control (OFAC). The O`I 
Subcommittee held its second hearing on these issues on May 26, 
2010, focused on ``Anti-Money Laundering: Blocking Terrorist 
Financing and Its Impact on Lawful Charities.'' The 
Subcommittee reviewed ongoing efforts by the Treasury 
Department to stop the financing of terrorism. The hearing 
focused on various controls, disclosure and decision-making 
processes to ensure innocent individuals and charities receive 
due process while efforts to block terrorist financing remain 
robust.
    Committee staff met regularly with staff of OFAC throughout 
the 111th Congress to discuss its increasing workload and ideas 
to increase its working relationship with financial 
institutions and charitable organizations.

                      House Resolution 40 Hearings

    On January 14, 2009, the House adopted House Resolution 40, 
amending the rules of the House to require committees, or their 
subcommittees, to:
          (1) hold at least one hearing during every 120-day 
        period on the topic of waste, fraud, abuse or 
        mismanagement in authorized programs, focusing on 
        inspector general or GAO reports on egregious instances 
        of waste;
          (2) hold at least one hearing per session where 
        auditors have been unable to audit financial 
        statements; and
          (3) hold at least one hearing on programs on GAO's 
        ``high-risk'' list for waste, fraud or abuse or in need 
        of broad-based transformation. This list for 2009-2010 
        included two programs within the jurisdiction of this 
        Committee: modernizing the financial regulatory system 
        and flood insurance.
    Finally, the resolution requires the Activity Report to 
delineate any hearings held pursuant to this rule. During the 
111th Congress, the following hearings comply with the 
resolution:

------------------------------------------------------------------------
                                                           Committee/
             Date                    Hearing title        Subcommittee
------------------------------------------------------------------------
February 4, 2009..............  ``Assessing the Madoff  Capital Markets
                                 Ponzi Scheme and
                                 Regulatory Failures''.
February 24, 2009.............  ``A Review of TARP      Oversight and
                                 Oversight,              Investigations
                                 Accountability and
                                 Transparency for U.S.
                                 Taxpayers''.
March 4, 2009.................  ``TARP Oversight: Is    Financial
                                 TARP Working for Main   Institutions
                                 Street?''.
March 5, 2009.................  ``Perspectives on       Capital Markets
                                 Systemic Risk''.
March 17, 2009................  ``Perspectives on       Full Committee
                                 Regulation of
                                 Systemic Risk in the
                                 Financial Services
                                 Industry''.
March 18, 2009................  ``American              Capital Markets
                                 International Group's
                                 Impact on the Global
                                 Economy: Before,
                                 During and After
                                 Federal
                                 Intervention''.
March 20, 2009................  ``Federal and States    Full Committee
                                 Enforcement of
                                 Financial Consumer
                                 and Investor
                                 Protection Laws''.
March 24, 2009................  ``Oversight of the      Full Committee
                                 Federal Government's
                                 Intervention at
                                 American
                                 International Group''.
March 26, 2009................  ``Addressing the Need   Full Committee
                                 for Comprehensive
                                 Regulatory Reform''.
May 5, 2009...................  ``The Effect of the     Full Committee
                                 Lehman Brothers
                                 Bankruptcy on State
                                 and Local
                                 Governments''.
May 5, 2009...................  ``The Role of           Oversight and
                                 Inspectors General:     Investigations
                                 Minimizing and
                                 Mitigating Waste,
                                 Fraud and Abuse''.
May 6, 2009...................  ``Legislative           Housing
                                 Solutions for
                                 Preventing Loan
                                 Modification and
                                 Foreclosure Rescue
                                 Fraud''.
May 7, 2009...................  ``Perspectives on       Capital Markets
                                 Hedge Fund
                                 Registration''.
May 14, 2009..................  ``How Should the        Capital Markets
                                 Federal Government
                                 Oversee Insurance?''.
May 19, 2009..................  ``Approaches to         Capital Markets
                                 Improving Credit
                                 Rating Agency
                                 Regulation''.
May 21, 2009..................  ``Legislative           Full Committee
                                 Proposals to Improve
                                 the Efficiency and
                                 Oversight of
                                 Municipal Finance''.
June 3, 2009..................  ``The Present           Capital Markets
                                 Condition and Future
                                 Status of Fannie Mae
                                 and Freddie Mac''.
June 3, 2009..................  ``Remittances:          Financial
                                 Regulation and          Institutions
                                 Disclosure in a New
                                 Economic
                                 Environment''.
June 9, 2009..................  ``The Effective         Capital Markets
                                 Regulation of the
                                 Over-the-Counter
                                 Derivatives Market''.
June 11, 2009.................  ``Compensation          Full Committee
                                 Structure and
                                 Systemic Risk''.
June 16, 2009.................  ``Systemic Risk and     Capital Markets
                                 Insurance''.
June 18, 2009.................  ``Strengthening         Oversight and
                                 Oversight and           Investigations
                                 Preventing Fraud in
                                 FHA and other HUD
                                 Programs''.
June 18, 2009.................  ``The Administration's  Full Committee
                                 Plan for the
                                 Restructuring of the
                                 American Financial
                                 Regulatory System''.
June 24, 2009.................  ``Regulatory            Full Committee
                                 Restructuring:
                                 Enhancing Consumer
                                 Financial Products
                                 Regulation''.
June 25, 2009.................  ``Improving Consumer    Full Committee
                                 Financial Literacy
                                 under the New
                                 Regulatory System''.
July 9, 2009..................  ``Regulatory            Domestic
                                 Restructuring:          Monetary Policy
                                 Balancing the
                                 Independence of the
                                 Federal Reserve in
                                 Monetary Policy with
                                 Systemic Risk
                                 Regulation''.
July 13, 2009.................  ``Preventing Unfair     Oversight and
                                 Trading by Government   Investigations
                                 Officials''.
July 14, 2009.................  ``SEC Oversight:        Capital Markets
                                 Current State and
                                 Agenda''.
July 15, 2009.................  ``Banking Industry      Full Committee
                                 Perspectives on the
                                 Obama
                                 Administration's
                                 Financial Regulatory
                                 Reform Proposals''.
July 16, 2009.................  ``Regulatory            Domestic
                                 Restructuring:          Monetary Policy
                                 Safeguarding Consumer
                                 Protection and the
                                 Role of the Federal
                                 Reserve''.
July 16, 2009.................  ``Community and         Full Committee
                                 Consumer Advocates'
                                 Perspectives on the
                                 Obama
                                 Administration's
                                 Financial Regulatory
                                 Reform Proposals''.
July 17, 2009.................  ``Industry              Full Committee
                                 Perspectives on the
                                 Obama
                                 Administration's
                                 Financial Regulatory
                                 Reform Proposals''.
July 21, 2009.................  ``Systemic Risk: Are    Full Committee
                                 Some Institutions Too
                                 Big to Fail and If
                                 So, What Should We Do
                                 About It?''.
July 22, 2009.................  ``Regulatory            Full Committee
                                 Perspectives on the
                                 Obama
                                 Administration's
                                 Financial Regulatory
                                 Reform Proposals''.
July 22, 2009.................  ``TARP Oversight:       Oversight and
                                 Warrant Repurchases     Investigations
                                 and Protecting
                                 Taxpayers''.
July 24, 2009.................  ``Regulatory            Full Committee
                                 Perspectives on the
                                 Obama
                                 Administration's
                                 Financial Regulatory
                                 Reform Proposals--
                                 Part Two''.
September 17, 2009............  ``Utilizing Technology  Oversight and
                                 to Improve TARP and     Investigations
                                 Financial Oversight''.
September 23, 2009............  ``The Administration's  Full Committee
                                 Proposals for
                                 Financial Regulatory
                                 Reform''.
September 23, 2009............  ``Federal Regulator     Full Committee
                                 Perspectives on
                                 Financial Regulatory
                                 Reform Proposals''.
September 24, 2009............  ``Experts'              Full Committee
                                 Perspectives on
                                 Systemic Risk and
                                 Resolution Issues''.
September 25, 2009............  ``H.R. 1207, the        Full Committee
                                 Federal Reserve
                                 Transparency Act of
                                 2009''.
September 30, 2009............  ``Perspectives on the   Full Committee
                                 Consumer Financial
                                 Protection Agency''.
September 30, 2009............  ``Reforming Credit      Capital Markets
                                 Rating Agencies''.
October 1, 2009...............  ``Federal Reserve       Full Committee
                                 Perspectives on
                                 Financial Regulatory
                                 Reform Proposals''.
October 6, 2009...............  ``Capital Markets       Full Committee
                                 Regulatory Reform:
                                 Strengthening
                                 Investor Protection,
                                 Enhancing Oversight
                                 of Private Pools of
                                 Capital, and Creating
                                 a National Insurance
                                 Office''.
October 7, 2009...............  ``Reform of the Over-   Full Committee
                                 the-Counter
                                 Derivatives Market:
                                 Limiting Risk and
                                 Ensuring Fairness''.
October 29, 2009..............  ``Systemic Regulation,  Full Committee
                                 Prudential Matters,
                                 Resolution Authority
                                 and Securitization''.
December 2, 2009..............  ``FY09 FHA Actuarial    Full Committee
                                 Report''.
January 21, 2010..............  ``The Condition of      Financial
                                 Financial               Institutions
                                 Institutions:
                                 Examining the Failure
                                 and Seizure of an
                                 American Bank''.
March 11, 2010................  ``The FHA Reform Act    Housing and
                                 of 2010''.              Community
                                                         Opportunity
March 23, 2010................  ``Housing Finance--     Full Committee
                                 What Should the New
                                 System Be Able to
                                 Do?: Part I--
                                 Government and
                                 Stakeholder
                                 Perspectives''.
April 14, 2010................  ``Housing Finance--     Full Committee
                                 What Should the New
                                 System Be Able to
                                 Do?: Part II--
                                 Government and
                                 Stakeholder
                                 Perspectives''.
April 20, 2010................  ``Public Policy Issues  Full Committee
                                 Raised by the Report
                                 of the Lehman
                                 Bankruptcy Examiner''.
April 21, 2010................  ``Legislative           Housing and
                                 Proposals to Reform     Community
                                 the National Flood      Opportunity
                                 Insurance Program''.
April 28, 2010................  ``Reviewing FinCEN      Oversight and
                                 Oversight Reports''.    Investigations
May 6, 2010...................  ``The End of Excess     Oversight and
                                 (Part One): Reviewing   Investigations
                                 Our Addiction to Debt
                                 and Leverage''.
May 11, 2010..................  ``TARP Oversight: An    Oversight and
                                 Update on Warrant       Investigations
                                 Repurchases and
                                 Benefits for
                                 Taxpayers''.
May 26, 2010..................  ``FHFA Oversight:       Capital Markets
                                 Current State of the
                                 House Government
                                 Sponsored
                                 Enterprises''.
July 13, 2010.................  ``After the Financial   Oversight and
                                 Crisis: Ongoing         Investigations
                                 Challenges Facing
                                 Delphi Retirees''.
July 20, 2010.................  ``Oversight of the      Capital Markets
                                 U.S. Securities and
                                 Exchange Commission:
                                 Evaluating Present
                                 Reforms and Future
                                 Challenges''.
July 29, 2010.................  ``Future of Housing     Capital Markets
                                 Finance: The Role of
                                 Private Mortgage
                                 Insurance''.
July 29, 2010.................  ``Alternatives for      Full Committee
                                 Promoting Liquidity
                                 in the Commercial
                                 Real Estate Markets,
                                 Supporting Small
                                 Businesses and
                                 Increasing Job
                                 Growth''.
August 23, 2010...............  ``Too Big Has Failed:   Oversight and
                                 Learning from Midwest   Investigations
                                 Banks and Credit
                                 Unions''.
August 24, 2010...............  ``Empowering            Oversight and
                                 Consumers: Can          Investigations
                                 Financial Literacy
                                 Education Prevent
                                 Another Financial
                                 Crisis?''.
September 15, 2010............  ``The Future of         Capital Markets
                                 Housing Finance: A
                                 Progress Update on
                                 the GSEs''.
September 16, 2010............  ``Legislative           Full Committee
                                 Proposals to Address
                                 Concerns Over the
                                 SEC's New
                                 Confidentiality
                                 Provision''.
------------------------------------------------------------------------

                   APPENDIX I--COMMITTEE LEGISLATION

                       Part A--Committee Reports

   Reports Filed by the Committee on Financial Services With the House
------------------------------------------------------------------------
          Bill No.             H.Rept. No.              Title
------------------------------------------------------------------------
H.R. 787...................          111-12  To Make Improvements in the
                                              HOPE for Homeowners
                                              Program, and for Other
                                              Purposes
H.R. 788...................          111-13  To Provide a Safe Harbor
                                              for Mortgage Servicers Who
                                              Engage in Specified
                                              Mortgage Loan
                                              Modifications, and for
                                              Other Purposes
H.R. 786...................          111-18  To Make Permanent the
                                              Temporary Increase in
                                              Deposit Insurance
                                              Coverage, and for Other
                                              Purposes
S. 383.....................          111-41  Special Inspector General
                                              for the Troubled Asset
                                              Relief Program Act of 2009
H.R. 1664..................          111-64  Amending the Executive
                                              Compensation Provisions of
                                              the Emergency Economic
                                              Stabilization Act of 2008
                                              to Prohibit Unreasonable
                                              and Excessive Compensation
                                              and Compensation Not Based
                                              on Performance Standards
H.Res. 251.................          111-84  Directing the Secretary of
                                              the Treasury to Transmit
                                              to the House of
                                              Representatives All
                                              Information in His
                                              Possession Relating to
                                              Specific Communications
                                              with American
                                              International Group, Inc.
                                              (AIG)
H.R. 627...................          111-88  Credit Cardholders' Bill of
                                              Rights Act of 2009
H.R. 1728..................          111-94  Mortgage Reform and Anti-
                                              Predatory Lending Act
H.Res. 591.................         111-231  Requesting That the
                                              President Transmit to the
                                              House of Representatives
                                              All Information in His
                                              Possession Relating to
                                              Certain Specific
                                              Communications with and
                                              Financial Assistance
                                              Provided to General Motors
                                              Corporation and Chrysler
                                              LLC
H.R. 3269..................         111-236  Corporate and Financial
                                              Institution Compensation
                                              Fairness Act of 2009
H.R. 3045..................         111-277  Section 8 Voucher Reform
                                              Act of 2009
H.R. 3639..................         111-314  Expedited Card Reform for
                                              Consumers Act of 2009
H.R. 5072..................         111-476  FHA Reform Act of 2010
H.R. 5114..................         111-495  Flood Insurance Reform
                                              Priorities Act of 2010
H.R. 5297..................         111-499  To Create the Small
                                              Business Lending Fund
                                              Program to Direct the
                                              Secretary of the Treasury
                                              to Make Capital
                                              Investments in Eligible
                                              Institutions in Order to
                                              Increase the Availability
                                              of Credit for Small
                                              Businesses, and for Other
                                              Purposes
H.R. 2555..................         111-534  Homeowners' Defense Act of
                                              2010
H.R. 1264..................         111-551  Multiple Peril Insurance
                                              Act of 2009
H.R. 2336..................         111-619  Green Resources for Energy
                                              Efficient Housing Act of
                                              2010
H.R. 4790..................         111-620  Shareholder Protection Act
                                              of 2010
H.R. 3421..................         111-629  Medical Debt Relief Act of
                                              2010
H.R. 2267..................         111-656  Internet Gambling
                                              Regulation, Consumer
                                              Protection, and
                                              Enforcement Act
H.R. 476...................         111-678  Veterans, Women, Families
                                              with Children, and Persons
                                              with Disabilities Housing
                                              Fairness Act of 2010
H.R. 3890..................         111-685  Accountability and
                                              Transparency in Rating
                                              Agencies Act
H.R. 3818..................         111-686  Private Fund Investment
                                              Advisers Registration Act
                                              of 2009
H.R. 3817..................         111-687  Investor Protection Act of
                                              2009
------------------------------------------------------------------------

                          Part B--Public Laws

    This table lists measures which contained matters within 
the jurisdiction of the Committee on Financial Services which 
were enacted into law during the 111th Congress.

                               Public Laws
------------------------------------------------------------------------
       Public Law No.           Bill No.                Title
------------------------------------------------------------------------
111-15.....................          S. 383  Special Inspector General
                                              for the Troubled Asset
                                              Relief Program Act of 2009
111-21.....................          S. 386  Fraud Enforcement and
                                              Recovery Act of 2009
111-22.....................          S. 896  Helping Families Save Their
                                              Homes Act of 2009;
                                              Homeless Emergency
                                              Assistance and Rapid
                                              Transition to Housing Act
                                              of 2009
111-24.....................        H.R. 627  Credit CARD Act of 2009
111-40.....................          S. 614  To award a Congressional
                                              Gold Medal to the Women
                                              Airforce Service Pilots
                                              (``WASP'')
111-44.....................       H.R. 2245  New Frontier Congressional
                                              Gold Medal Act
111-67.....................         S. 1677  Defense Production Act
                                              Reauthorization of 2009
111-86.....................        H.R. 621  Girl Scouts USA Centennial
                                              Commemorative Coin Act
111-91.....................       H.R. 1209  Medal of Honor
                                              Commemorative Coin Act
111-93.....................       H.R. 3606  Credit CARD Technical
                                              Corrections Act of 2009
111-144....................       H.R. 4691  Temporary Extension Act
111-157....................       H.R. 4851  Continuing Extension Act
111-158....................       H.R. 4573  Haiti Debt Relief and
                                              Earthquake Recovery Act of
                                              2010
111-195....................       H.R. 2194  Comprehensive Iran
                                              Sanctions, Accountability
                                              and Divestment Act of 2010
111-196....................       H.R. 5569  National Flood Insurance
                                              Program Extension Act of
                                              2010
111-203....................       H.R. 4173  Dodd-Frank Wall Street
                                              Reform and Consumer
                                              Protection Act
111-209....................       H.R. 5502  To amend the effective date
                                              of the gift card
                                              provisions of the Credit
                                              card Accountability,
                                              Responsibility, and
                                              Disclosure Act of 2009
111-221....................       H.R. 4684  National September 11
                                              Memorial  Museum
                                              Commemorative Medal Act of
                                              2010
111-228....................       H.R. 5872  General and Special Risk
                                              Insurance Funds
                                              Availability Act of 2010
111-229....................       H.R. 5981  To insure the flexibility
                                              of the Secretary of
                                              Housing and Urban
                                              Development with respect
                                              to the amount of premiums
                                              charged for FHA single
                                              family housing mortgage
                                              insurance and for other
                                              purposes
111-232....................       H.R. 2097  Star-Spangled Banner
                                              Commemorative Coin Act
111-240....................       H.R. 5297  Small Business Jobs and
                                              Credit Act of 2010
111-250....................         S. 3814  National Flood Insurance
                                              Program Reextension Act of
                                              2010
111-253....................          S. 846  To award a congressional
                                              gold medal to Dr. Muhammed
                                              Yunus, in recognition of
                                              his contributions to the
                                              fight against global
                                              poverty
111-254....................         S. 1055  To grant the congressional
                                              gold medal, collectively,
                                              to the 100th Infantry
                                              Battalion and the 442nd
                                              Regimental Combat Team,
                                              United States Army, in
                                              recognition of their
                                              dedicated service during
                                              World War II
111-257....................         S. 3717  To amend the Securities
                                              Exchange Act of 1934, the
                                              Investment Company Act of
                                              1940 and the Investment
                                              Advisers Act of 1940 to
                                              provide for certain
                                              disclosures under section
                                              552 of title 5, United
                                              States Code (commonly
                                              referred to as the Freedom
                                              of Information Act), and
                                              for other purposes
111-262....................       H.R. 1177  5-Star Generals
                                              Commemorative Coin Act
111-269....................       H.R. 3553  Indian Veterans Housing
                                              Opportunity Act of 2010
111-302....................       H.R. 6162  Coin Modernization,
                                              Oversight and Continuity
                                              Act of 2010
111-303....................        H.R. 303  American Eagle Palladium
                                              Coin Act of 2010
111-319....................         S. 3987  Red Flag Program
                                              Clarification Act of 2010
111-.......................          S. 118  Section 202 Supportive
                                              Housing for the Elderly
                                              Act
111-.......................         S. 1481  Frank Melville Supportive
                                              Housing Investment Act
111-.......................         S. 4036  To clarify the National
                                              Credit Union
                                              Administration authority
                                              to make stabilization fund
                                              expenditures without
                                              borrowing from the
                                              Treasury
------------------------------------------------------------------------

                  Appendix II--Committee Publications


                       Part A--Committee Hearings


------------------------------------------------------------------------
      Serial No.           Title & Subcommittee            Date(s)
------------------------------------------------------------------------
111-1.................  Promoting Bank Liquidity    February 3, 2009
                         and Lending Through
                         Deposit Insurance Hope
                         for Homeowners, and other
                         Enhancements (Full).
111-2.................  Assessing the Madoff Ponzi  February 4, 2009
                         Scheme and Regulatory
                         Failures (Capital
                         Markets).
111-3.................  An Examination of the       February 10, 2009
                         Extraordinary Efforts by
                         the Federal Reserve Bank
                         to Provide Liquidity in
                         the Current Financial
                         Crisis (Full).
111-4.................  TARP Accountability: Use    February 11, 2009
                         of Federal Assistance by
                         the First TARP Recipients
                         (Full).
111-5.................  A Review of TARP            February 24, 2009
                         Oversight,
                         Accountability, and
                         Transparency for U.S.
                         Taxpayers (Oversight).
111-6.................  Loan Modifications: Are     February 24, 2009
                         Mortgage Servicers
                         Assisting Borrowers with
                         Unaffordable Mortgages?
                         (Housing).
111-7.................  Monetary Policy and the     February 25, 2009
                         State of the Economy,
                         Part I (Full).
111-8.................  Monetary Policy and the     February 26, 2009
                         State of the Economy,
                         Part II (Full).
111-9.................  TARP Oversight: Is TARP     March 4, 2009
                         Working for Main Street?
                         (Financial Institutions).
111-10................  Perspectives on Systemic    March 5, 2009
                         Risk (Capital Markets).
111-11................  Mortgage Lending Reform: A  March 11, 2009
                         Comprehensive Review of
                         the American Mortgage
                         System (Financial
                         Institutions).
111-12................  Mark-to-Market Accounting:  March 12, 2009
                         Practices and
                         Implications (Capital
                         Markets).
111-13................  The Iran Sanctions          March 12, 2009
                         Enabling Act of 2009
                         (International).
111-14................  Perspectives on Regulation  March 17, 2009
                         of Systemic Risk in the
                         Financial Services
                         Industry (Full).
111-15................  American International      March 18, 2009
                         Groups Impact on the
                         Global Economy: Before,
                         During, and After Federal
                         Intervention (Capital
                         Markets).
111-16................  Examining the Making Home   March 19, 2009
                         Affordable Program
                         (Housing).
111-17................  H.R. 627, the Credit        March 19, 2009
                         Cardholders' Bill of
                         Rights Act of 2009; and
                         H.R. 1456, the Consumer
                         Overdraft Protection Fair
                         Practices Act of 2009
                         (Financial Institutions).
111-18................  Federal and State           March 20, 2009
                         Enforcement of Financial
                         Consumer and Investor
                         Protection Laws (Full).
111-19................  Seeking Solutions: Finding  March 23, 2009
                         Credit for Small and Mid-
                         Size Businesses in
                         Massachusetts (Full).
111-20................  Oversight of the Federal    March 24, 2009
                         Government's Intervention
                         at American International
                         Group (Full).
111-21................  Exploring the Balance       April 25, 2009
                         between Increased Credit
                         Availability and Prudent
                         Lending Standards (Full).
111-22................  Addressing the Need for     March 26, 2009
                         Comprehensive Regulatory
                         Reform (Full).
111-23................  The Housing Crisis in Los   March 28, 2009
                         Angeles and Responses to
                         Preventing Foreclosures
                         and Foreclosure Rescue
                         Fraud (Housing).
111-24................  H.R. 1214, the Payday Loan  April 2, 2009
                         Reform Act of 2009
                         (Financial Institutions).
111-25................  H.R. 1728, the Mortgage     April 23, 2009
                         Reform and Anti-Predatory
                         Lending Act of 2009
                         (Full).
111-26................  The Effect of the Lehman    May 5, 2009
                         Brothers Bankruptcy on
                         State and Local
                         Governments (Full).
111-27................  The Role of Inspectors      May 5, 2009
                         General: Minimizing and
                         Mitigating Waste, Fraud,
                         and Abuse (Oversight).
111-28................  Legislative Solutions for   May 6, 2009
                         Preventing Loan
                         Modification and
                         Foreclosure Rescue Fraud
                         (Housing).
111-29................  Perspectives on Hedge Fund  May 7, 2009
                         Registration (Capital
                         Markets).
111-30................  The Role of NeighborWorks   May 13, 2009
                         and Housing Counseling
                         Intermediaries in
                         Preventing Foreclosures
                         (Housing).
111-31................  Implications of the G-20    May 13, 2009
                         Leaders Summit for Low
                         Income Countries and the
                         Global Economy
                         (International).
111-32................  How Should the Federal      May 14, 2009
                         Government Oversee
                         Insurance? (Capital
                         Markets).
111-33................  Approaches to Improving     May 19, 2009
                         Credit Rating Agency
                         Regulation (Capital
                         Markets).
111-34................  Capital Loss, Corruption    May 19, 2009
                         and the Role of Western
                         Financial Institutions
                         (Full).
111-35................  H.R. 2351, the Credit       May 20, 2009
                         Union Share Insurance
                         Stabilization Act
                         (Financial Institutions).
111-36................  The Section 8 Voucher       May 21, 2009
                         Reform Act (Full).
111-37................  Legislative Proposals to    May 21, 2009
                         Improve the Efficiency
                         and Oversight of
                         Municipal Finance (Full).
111-38................  The Present Condition and   June 3, 2009
                         Future Status of Fannie
                         Mae and Freddie Mac
                         (Capital Markets).
111-39................  Remittance Regulation and   June 3, 2009
                         Disclosure in a New
                         Economic Environment
                         (Financial Institutions).
111-40................  The Section 8 Voucher       June 4, 2009
                         Reform Act (Housing).
111-41................  The Effective Regulation    June 9, 2009
                         of the Over-the-Counter
                         Derivatives Markets
                         (Capital Markets).
111-42................  Compensation Structure and  June 11, 2009
                         Systemic Risk (Full).
111-43................  H.R. 2336, the GREEN Act    June 11, 2009
                         of 2009, Part I (Housing).
111-44................  Systemic Risk and           June 16, 2009
                         Insurance (Capital
                         Markets).
111-45................  H.R. 2336, the GREEN Act    June 16, 2009
                         of 2009, Part II
                         (Housing).
111-46................  Strengthening Oversight     June 18, 2009
                         and Preventing Fraud in
                         FHA and other HUD
                         Programs (Oversight).
111-47................  An Exploration of Barriers  June 18, 2009
                         to Full Minority
                         Participation in the New
                         Markets Tax Credit
                         Program (Domestic).
111-48................  The Economic Disaster Area  June 19, 2009
                         Act of 2009 (Full).
111-49................  Regulatory Restructuring:   June 24, 2009
                         Enhancing Consumer
                         Financial Products
                         Regulation (Full).
111-50................  Improving Consumer          June 25, 2009
                         Financial Literacy under
                         the New Regulatory System
                         (Financial Institutions).
111-51................  Legislative Options for     June 25, 2009
                         Preserving Federally- and
                         State-Assisted Affordable
                         Housing and Preventing
                         Displacement of Low-
                         Income, Elderly and
                         Disabled Tenants (Full).
111-52................  The Homeowners' Insurance   July 2, 2009
                         Crisis: Solutions for
                         Homeowners, Communities,
                         and Taxpayers (Oversight).
111-53................  Regulatory Restructuring:   July 9, 2009
                         Balancing the
                         Independence of the
                         Federal Reserve in
                         Monetary Policy with
                         Systemic Risk Regulation
                         (Domestic).
111-54................  H.R. 3068, TARP for Main    July 9, 2009
                         Street Act of 2009 (Full).
111-55................  A Review of the             July 10, 2009
                         Administration's Proposal
                         to Regulate the Over-the-
                         Counter Derivatives
                         Market (Full).
111-56................  Preventing Unfair Trading   July 13, 2009
                         by Government Officials
                         (Oversight).
111-57................  SEC Oversight: Current      July 14, 2009
                         State and Agenda (Capital
                         Markets).
111-58................  Banking Industry            July 15, 2009
                         Perspectives on the Obama
                         Administration's
                         Financial Regulatory
                         Reform Proposals (Full).
111-59................  Legislative Options for     July 15, 2009
                         Preserving Federally- and
                         State-Assisted Affordable
                         Housing and Preventing
                         Displacement of Low-
                         Income, Elderly and
                         Disabled Tenants
                         (Housing).
111-60................  Regulatory Restructuring:   July 16, 2009
                         Safeguarding Consumer
                         Protection and the Role
                         of the Federal Reserve
                         (Domestic).
111-61................  Community and Consumer      July 16, 2009
                         Advocates' Perspectives
                         on the Obama
                         Administration's
                         Financial Regulatory
                         Reform Proposals (Full).
111-62................  Industry Perspectives on    July 17, 2009
                         the Obama
                         Administration's
                         Financial Regulatory
                         Reform Proposals (Full).
111-63................  Legislative Proposals to    July 20, 2009
                         Increase Work and Health
                         Care Opportunities for
                         Public and Subsidized
                         Housing Residents
                         (Housing).
111-64................  Monetary Policy and the     July 21, 2009
                         State of the Economy
                         (Full).
111-65................  Systemic Risk: Are Some     July 21, 2009
                         Institutions Too Big to
                         Fail and If So, What
                         Should We Do About It?
                         (Full).
111-66................  Regulatory Perspectives on  July 22, 2009
                         the Obama
                         Administration's
                         Financial Regulatory
                         Reform Proposals, Part I
                         (Full).
111-67................  TARP Oversight: Warrant     July 22, 2009
                         Repurchases and
                         Protecting Taxpayers
                         (Oversight).
111-68................  Regulatory Perspectives on  July 24, 2009
                         the Obama
                         Administration's
                         Financial Regulatory
                         Reform Proposals, Part II
                         (Full).
111-69................  Academic Perspectives on    July 29, 2009
                         the Future of Public
                         Housing (Housing).
111-70................  Implementation of the Road  August 20, 2009
                         Home Program Four Years
                         After Hurricane Katrina
                         (Housing).
111-71................  Status of the ``Big Four''  August 21, 2009
                         Four Years After
                         Hurricane Katrina
                         (Housing).
111-72................  Progress of the Making      September 9, 2009
                         Home Affordable Program:
                         What Are the Outcomes for
                         Homeowners and What Are
                         the Obstacles to Success?
                         (Housing).
111-73................  The World Bank's            September 10, 2009
                         Disclosure Policy Review
                         and the Role of
                         Democratic Participatory
                         Processes in Achieving
                         Successful Development
                         Outcomes (Full).
111-74................  Proposals to Enhance the    September 16, 2009
                         Community Reinvestment
                         Act (Full).
111-75................  Utilizing Technology to     September 17, 2009
                         Improve TARP and
                         Financial Oversight
                         (Oversight).
111-76................  The Administration's        September 23, 2009
                         Proposals for Financial
                         Regulatory Reform (Full).
111-77................  Federal Regulator           September 23, 2009
                         Perspectives on Financial
                         Regulatory Reform
                         Proposals (Full).
111-78................  Experts' Perspectives on    September 24, 2009
                         Systemic Risk and
                         Resolution Issues (Full).
111-79................  Recent Innovations in       September 24, 2009
                         Securitization (Capital
                         Markets).
111-80................  H.R. 1207, the Federal      September 25, 2009
                         Reserve Transparency Act
                         of 2009 (Full).
111-81................  Perspectives on the         September 30, 2009
                         Consumer Financial
                         Protection Agency (Full).
111-82................  Reforming Credit Rating     September 30, 2009
                         Agencies (Capital
                         Markets).
111-83................  Federal Reserve             October 1, 2009
                         Perspectives on Financial
                         Regulatory Reform
                         Proposals (Full).
111-84................  Capital Markets Regulatory  October 6, 2009
                         Reform: Strengthening
                         Investor Protection,
                         Enhancing Oversight of
                         Private Pools of Capital,
                         and Creating a National
                         Insurance Office (Full).
111-85................  Reform of the Over-the-     October 7, 2009
                         Counter Derivative
                         Market: Limiting Risk and
                         Ensuring Fairness (Full).
111-86................  H.R. 2382, the Credit Card  October 8, 2009
                         Interchange Fees Act of
                         2009; and H.R. 3639, the
                         Expedited CARD Reform for
                         Consumers Act of 2009
                         (Full).
111-87................  The Future of the Federal   October 8, 2009
                         Housing Administration's
                         Capital Reserves:
                         Assumptions, Predictions,
                         and Implications for
                         Homebuyers (Housing).
111-88................  Systemic Regulation,        October 29, 2009
                         Prudential Matters,
                         Resolution Authority, and
                         Securitization (Full).
111-89................  The Overdraft Protection    October 30, 2009
                         Act of 2009 (Full).
111-90................  Improving Responsible       November 30, 2009
                         Lending to Small
                         Businesses (Oversight).
111-91................  FY09 FHA Actuarial Report   December 2, 2009
                         (Full).
111-92................  H.R. 2266, the Reasonable   December 3, 2009
                         Prudence in Regulation
                         Act; and H.R. 2267, the
                         Internet Gambling
                         Regulation, Consumer
                         Protection, and
                         Enforcement Act (Full).
111-93................  The Private Sector and      December 8, 2009
                         Government Response to
                         the Mortgage Foreclosure
                         Crisis (Full).
111-94................  Additional Reforms to the   December 9, 2009
                         Securities Investor
                         Protection Act (Capital
                         Markets).
111-95................  Covered Bonds: Prospects    December 15, 2009
                         for a U.S. Market Going
                         Forward (Full).
111-96................  H.R. 476, the Housing       January 20, 2010
                         Fairness Act of 2009
                         (Housing).
111-97................  The Condition of Financial  January 21, 2010
                         Institutions: Examining
                         the Failure and Seizure
                         of an American Bank
                         (Financial Institutions).
111-98................  Compensation in the         January 22, 2010
                         Financial Industry (Full).
111-99................  The Impact of the           January 23, 2010
                         Foreclosure Crisis on
                         Public and Affordable
                         Housing in the Twin
                         Cities (Housing).
111-100...............  The State of Global         January 27, 2010
                         Microfinance: How Public
                         and Private Funds Can
                         Effectively Promote
                         Financial Inclusion for
                         All (International).
111-101...............  Prospects for Employment    February 23, 2010
                         Growth: Is Additional
                         Stimulus Needed? (Full).
111-102...............  Monetary Policy and the     February 24, 2010
                         State of the Economy
                         (Full).
111-103...............  Compensation in the         February 25, 2010
                         Financial Industry
                         Government Perspectives
                         (Full).
111-104...............  Condition of Small          February 26, 2010
                         Business and Commercial
                         Real Estate Lending in
                         Local Markets (Full).
111-105...............  Haiti Debt Relief           March 4, 2010
                         (International).
111-106...............  Community Development       March 9, 2010
                         Financial Institutions
                         (CDFIs): Their Unique
                         Role and Challenges
                         Serving Lower-Income,
                         Underserved, and Minority
                         Communities (Full).
111-107...............  Regulation of Money         March 10, 2010
                         Service Businesses
                         (Financial Institutions).
111-108...............  Approaches to Mitigating    March 10, 2010
                         and Managing Natural
                         Catastrophe Risk: H.R.
                         2555, The Homeowners'
                         Defense Act (Capital
                         Markets and Housing).
111-109...............  Corporate Governance after  March 11, 2010
                         Citizens United (Capital
                         Markets).
111-110...............  The FHA Reform Act of 2010  March 11, 2010
                         (Housing).
111-111...............  Rebuilding Haiti's          March 16, 2010
                         Competitiveness and
                         Private Sector
                         (International).
111-112...............  Examining the Link Between  March 17, 2010
                         Fed Bank Supervision and
                         Monetary Policy (Full).
111-113...............  The Administration's        March 17, 2010
                         Proposal to Revitalize
                         Severely Distressed
                         Public and Assisted
                         Housing: The Choice
                         Neighborhoods Initiative
                         (Full).
111-114...............  Insurance Holding Company   March 18, 2010
                         Supervision (Capital
                         Markets).
111-115...............  Housing Finance--What       March 23, 2010
                         Should the New System Be
                         Able to Do?: Part I--
                         Government and
                         Stakeholder Perspectives
                         (Full).
111-116...............  H.R. 4868, the Housing      March 24, 2010
                         Preservation and Tenant
                         Protection Act of 2010
                         (Housing).
111-117...............  Keeping Score on Credit     March 24, 2010
                         Scores: An Overview of
                         Credit Scores, Credit
                         Reports, and their Impact
                         on Consumers (Financial
                         Institutions).
111-118...............  Unwinding Emergency         March 25, 2010
                         Federal Reserve Liquidity
                         Programs and Implications
                         for Economic Recovery
                         (Full).
111-119...............  Addressing the Housing      April 10, 2010
                         Needs of Native American
                         Veterans with
                         Disabilities (Housing).
111-120...............  Second Liens and Other      April 13, 2010
                         Barriers to Principal
                         Reduction as an Effective
                         Foreclosure Mitigation
                         Program (Full).
111-121...............  Housing Finance--What       April 14, 2010
                         Should the New System Be
                         Able to Do?: Part II--
                         Government and
                         Stakeholder Perspectives
                         (Full).
111-122...............  The Recently Announced      April 14, 2010
                         Revisions to the Home
                         Affordable Modification
                         Program (HAMP) (Housing).
111-123...............  Perspectives and Proposals  April 15, 2010
                         on the Community
                         Reinvestment Act
                         (Financial Institutions).
111-124...............  Public Policy Issues        April 20, 2010
                         Raised by the Report of
                         the Lehman Bankruptcy
                         Examiner (Full).
111-125...............  Corporate Governance and    April 21, 2010
                         Shareholder Empowerment
                         (Capital Markets).
111-126...............  Legislative Proposals to    April 21, 2010
                         Reform the National Flood
                         Insurance Program
                         (Housing).
111-127...............  Promoting Small and Micro   April 28, 2010
                         Enterprise in Haiti
                         (International).
111-128...............  Legislative Proposals to    April 28, 2010
                         Preserve Public Housing
                         (Housing).
111-129...............  Reviewing FinCEN Oversight  April 28, 2010
                         Reports (Oversight).
111-130...............  Credit Default Swaps on     April 29, 2010
                         Government Debt:
                         Potential Implications of
                         the Greek Debt Crisis
                         (Capital Markets).
111-131...............  The End of Excess (Part     May 6, 2010
                         One): Reversing Our
                         Addiction to Debt and
                         Leverage (Oversight).
111-132...............  TARP Oversight: An Update   May 11, 2010
                         on Warrant Repurchases
                         and Benefits to Taxpayers
                         (Oversight).
111-133...............  The Stock Market Plunge:    May 11, 2010
                         What Happened and What Is
                         Next? (Capital Markets).
111-134...............  Use of Credit Information   May 12, 2010
                         Beyond Lending: Issues
                         and Reform Proposals
                         (Financial Institutions).
111-135...............  Minorities and Women in     May 12, 2010
                         Financial Regulatory
                         Reform: The Need for
                         Increasing Participation
                         and Opportunities for
                         Qualified Persons and
                         Businesses (Housing and
                         Oversight).
111-136...............  Commercial Real Estate: A   May 17, 2010
                         Chicago Perspective on
                         Current Market Challenges
                         and Possible Responses
                         (Oversight).
111-137...............  Initiatives to Promote      May 18, 2010
                         Small Business Lending,
                         Jobs, and Economic Growth
                         (Full).
111-138...............  The Role of the             May 20, 2010
                         International Monetary
                         Fund and Federal Reserve
                         in Stabilizing Europe
                         (Domestic and
                         International).
111-139...............  Accounting and Auditing     May 21, 2010
                         Standards: Pending
                         Proposals and Emerging
                         Issues (Capital Markets).
111-140...............  The Administration's        May 25, 2010
                         Proposal to Preserve and
                         Transform Public and
                         Assisted Housing: The
                         Transforming Rental
                         Assistance Initiative
                         (Full).
111-141...............  Anti-Money Laundering:      May 26, 2010
                         Blocking Terrorist
                         Financing and Its Impact
                         on Lawful Charities
                         (Oversight).
111-142...............  FHFA Oversight: Current     May 26, 2010
                         State of the Housing
                         Government Sponsored
                         Enterprises (Capital
                         Markets).
111-143...............  After the Financial         July 13, 2010
                         Crisis: Ongoing
                         Challenges Facing Delphi
                         Retirees (Oversight).
111-144...............  Oversight of the U.S.       July 20, 2010
                         Securities and Exchange
                         Commission: Evaluating
                         Present Reforms and
                         Future Challenges
                         (Capital Markets).
111-145...............  The State of U.S. Coins     July 20, 2010
                         and Currency (Domestic).
111-146...............  H.R. 2267, the Internet     July 21, 2010
                         Gambling Regulation,
                         Consumer Protection, and
                         Enforcement Act (Full).
111-147...............  Monetary Policy and the     July 22, 2010
                         State of the Economy,
                         Part I (Full).
111-148...............  Monetary Policy and the     July 22, 2010
                         State of the Economy,
                         Part II (Full).
111-149...............  The Future of Housing       July 29, 2010
                         Finance: The Role of
                         Private Mortgage
                         Insurance (Capital
                         Markets).
111-150...............  Alternatives for Promoting  July 29, 2010
                         Liquidity in the
                         Commercial Real Estate
                         Markets, Supporting Small
                         Businesses and Increasing
                         Job Growth (Full).
111-151...............  Too Big Has Failed:         August 23, 2010
                         Learning from Midwest
                         Banks and Credit Unions
                         (Oversight).
111-152...............  Empowering Consumers: Can   August 24, 2010
                         Financial Literacy
                         Education Prevent Another
                         Financial Crisis?
                         (Oversight).
111-153...............  The Future of Housing       September 15, 2010
                         Finance: A Progress
                         Update on the GSEs
                         (Capital Markets).
111-154...............  Legislative Proposals to    September 16, 2010
                         Address Concerns Over the
                         SEC's New Confidentiality
                         Provision (Full).
111-155...............  The State of the            September 22, 2010
                         International Financial
                         System, Including
                         International Regulatory
                         Issues Relevant to the
                         Implementation of the
                         Dodd-Frank Act (Full).
111-156...............  Implementation of Higher    September 22, 2010
                         FHA Loan Fees and Pending
                         Legislative Proposals to
                         Strengthen the FHA MMIF
                         Fund and Improve Lender
                         Oversight (Full).
111-157...............  Perspectives on the         September 23, 2010
                         Livable Communities Act
                         of 2010 (Full).
111-158...............  Assessing the Limitations   September 23, 2010
                         of the Securities
                         Investor Protection Act
                         (Capital Markets).
111-159...............  Legislative Hearing on      September 23, 2010
                         H.R. 3149, the Equal
                         Employment for All Act
                         (Financial Institutions).
111-160...............  Executive Compensation      September 24, 2010
                         Oversight after the Dodd-
                         Frank Wall Street Reform
                         and Consumer Protection
                         Act (Full).
111-161...............  A Review of Current and     September 28, 2010
                         Evolving Trends in
                         Terrorism Financing
                         (Oversight).
111-162...............  Ex-Im Bank Oversight: The   September 29, 2010
                         Role of Trade Finance in
                         Doubling Exports over
                         Five Years (Oversight and
                         International).
111-163...............  The Inclusive Home Design   September 29, 2010
                         Act (Housing).
111-164...............  The Future of Housing       September 29, 2010
                         Finance--A Review of
                         Proposals to Address
                         Market Structure and
                         Transition (Full).
111-165...............  The Global Financial        November 16, 2010
                         Crisis and Financial
                         Reforms in Nigeria
                         (International).
111-166...............  Robo-Signing, Chain of      November 18, 2010
                         Title, Loss Mitigation
                         and Other Issues in
                         Mortgage Servicing
                         (Housing).
111-167...............  Investments Tied to         November 30, 2010
                         Genocide: Sudan
                         Divestment and Beyond
                         (International).
111-168...............  A Proposal to Increase the  December 8, 2010
                         Offering Limit under SEC
                         Regulation A (Full).
------------------------------------------------------------------------

                        Part B--Committee Prints


------------------------------------------------------------------------
      Serial No.                   Title                    Date
------------------------------------------------------------------------
111-A.................  Rules of the Committee on   February 2009
                         Financial Services for
                         the 111th Congress.
111-B.................  Assessing the Madoff Ponzi  January 5, 2009
                         Scheme and the Need for
                         Regulatory Reform.
111-C.................  FHA Oversight of Loan       January 9, 2009
                         Originators.
111-D.................  Priorities for the Next     January 13, 2009
                         Administration: Use of
                         TARP Funds under EESA.
------------------------------------------------------------------------

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