[House Report 112-742]
[From the U.S. Government Publishing Office]
Union Calendar No. 544
112th Congress, 2d Session - - - - - - - - - - - - - House Report 112-742
FOURTH SEMIANNUAL REPORT ON THE ACTIVITY
OF THE
COMMITTEE ON FINANCIAL SERVICES
OF THE
HOUSE OF REPRESENTATIVES
DURING THE
ONE HUNDRED TWELFTH CONGRESS
PURSUANT TO
Clause 1(d) Rule XI of the Rules of the
House of Representatives
January 2, 2013.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
FOURTH SEMIANNUAL REPORT ON THE ACTIVITY OF
THE COMMITTEE ON FINANCIAL SERVICES FOR THE 112TH CONGRESS
Union Calendar No. 544
112th Congress, 2d Session - - - - - - - - - - - - - House Report 112-742
FOURTH SEMIANNUAL REPORT ON THE ACTIVITY
OF THE
COMMITTEE ON FINANCIAL SERVICES
OF THE
HOUSE OF REPRESENTATIVES
DURING THE
ONE HUNDRED TWELFTH CONGRESS
PURSUANT TO
Clause 1(d) Rule XI of the Rules of the
House of Representatives
January 2, 2013.--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 2, 2013.
Hon. Karen Lehman Haas,
Clerk of the House of Representatives,
Washington, DC.
Dear Ms. Haas: Pursuant to clause 1(d) of rule XI of the
Rules of the House of Representatives for the 112th Congress, I
present herewith the fourth report on the activity of the
Committee on Financial Services for the 112th Congress,
including the Committee's review and study of legislation
within its jurisdiction, and the oversight activities
undertaken by the Committee.
Sincerely,
Spencer Bachus,
Chairman.
C O N T E N T S
----------
Page
Jurisdiction..................................................... 1
Memorandum of Understanding...................................... 2
Rules of the Committee........................................... 4
Membership and Organization...................................... 32
Legislative and Oversight Activities............................. 38
Full Committee Legislative Activities............................ 96
Full Committee Oversight Activities.............................. 144
Subcommittee on Capital Markets and Government Sponsored
Enterprises.................................................... 153
Subcommittee on Domestic Monetary Policy and Technology.......... 200
Subcommittee on Financial Institutions and Consumer Credit....... 211
Subcommittee on Insurance, Housing and Community Opportunity..... 237
Subcommittee on International Monetary Policy and Trade.......... 260
Subcommittee on Oversight and Investigations..................... 265
Oversight Plan for the 112th Congress............................ 273
Implementation of the Oversight Plan for the 112th Congress...... 300
House Rule XI 1(d)(2)(E) Hearings................................ 382
House Resolution 72 Activity..................................... 384
Appendix I--Committee Legislation................................ 393
Part A--Committee Reports.................................... 393
Part B--Public Laws.......................................... 394
Appendix II--Committee Publications.............................. 395
Part A--Committee Hearings................................... 395
Part B--Committee Prints..................................... 399
Union Calendar No. 544
112th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 112-742
======================================================================
FOURTH SEMIANNUAL REPORT ON THE ACTIVITY OF THE COMMITTEE ON FINANCIAL
SERVICES FOR THE 112TH CONGRESS
_______
January 2, 2013.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Bachus, 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 112th Congress requires that each
standing committee, not later than the 30th day after June 1
and December 1, 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(h) of rule X of the Rules of the House of
Representatives for the 112th 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 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.
(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
U.S. House of Representatives
112th Congress
First Session
----------
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
three calendar days before the time of the meeting.
(2) The Chair shall provide to each member of the
Committee, at least three 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) At least 24 hours prior to the commencement of a
meeting for the markup of legislation, the Chair shall cause
the text of such legislation to be made publicly available in
electronic form.
(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) To the extent feasible, members and witnesses may use
the Committee equipment for the purpose of presenting
information electronically during a meeting or hearing provided
the information is transmitted to the appropriate Committee
staff in an appropriate electronic format at least one business
day before the meeting or hearing so as to ensure display
capacity and quality. The content of all materials must relate
to the pending business of the Committee and conform to the
rules of the House. The confidentiality of the material will be
maintained by the technical staff until its official
presentation to the Committee members. For the purposes of
maintaining the official records of the committee, printed
copies of all materials presented, to the extent practicable,
must accompany the presentations.
(6) 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, including clause 2(e)(1)(B) of rule XI,
the Chair shall make the record of the votes on any question on
which a record vote is demanded publicly available for
inspection at the offices of the Committee and in electronic
form on the Committee's Web site not later than one business
day after such vote is taken. Such record shall include in
electronic form the text 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. With respect to any record vote on any
motion to report or record vote on any amendment, a record of
such votes 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 of the committee present but not voting.
(5) Postponed Record Votes.--(A) Subject to subparagraph
(B), the Chairman may postpone further proceedings when a
record vote is ordered on the question of approving any measure
or matter or adopting an amendment. The Chairman may resume
proceedings on a postponed request at any time, but no later
than the next meeting day.
(B) In exercising postponement authority under subparagraph
(A), the Chairman shall take all reasonable steps necessary to
notify members on the resumption of proceedings on any
postponed record vote;
(C) When proceedings resume on a postponed question, not-
withstanding any intervening order for the previous question,
an underlying proposition shall remain subject to further
debate or amendment to the same extent as when the question was
postponed.
Hearing Procedures
(d)(1)(A) The Chair shall make public announcement of the
date, place, and subject matter of any committee hearing at
least one week before the commencement of the hearing, unless
the Chair, with the concurrence of the ranking minority member,
or the Committee by majority vote with a quorum present for the
transaction of business, determines there is good cause to
begin the hearing sooner, in which case the Chair shall make
the announcement at the earliest possible date.
(B) Not less than three days before the commencement of a
hearing announced under this paragraph, the Chair shall provide
to the members of the Committee a concise summary of the
subject of the hearing, or, in the case of a hearing on a
measure or matter, a copy of the measure or materials relating
to the matter in question and a concise explanation of the
measure or matter to be considered. 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 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
hereof) or contract (or subcontract thereof) received during
the current fiscal year or either of the two preceding fiscal
years. Such disclosure statements, with appropriate redactions
to protect the privacy of the witness, shall be made publicly
available in electronic form not later than one day after the
witness appears.
(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 three 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 five years
and not more than twenty five 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.
(B) Notwithstanding 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 Subcommittee Chair or Chair's designees and
ten minutes, to be controlled by the ranking minority
member of the Subcommittee or the ranking minority
member's designees. Following such time, the duration
for opening statements may be extended by agreement
between the Chair of the subcommittee and ranking
minority member of the subcommittee, 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 shall be made a 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 six subcommittees of the Committee as
follows:
(A) Subcommittee on Capital Markets and Government
Sponsored Enterprises.--The jurisdiction of the
Subcommittee on Capital Markets 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 Federal Housing Finance Agency; and
(vii) the Federal Home Loan Banks.
(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) all matters related to the Bureau of
Consumer Financial Protection;
(iii) the chartering, branching, merger,
acquisition, consolidation, or conversion of
financial institutions;
(iv) 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;
(v) creditor remedies and debtor defenses,
Federal aspects of the Uniform Consumer Credit
Code, credit and debit cards, and the
preemption of State usury laws;
(vi) consumer access to financial services,
including the Home Mortgage Disclosure Act and
the Community Reinvestment Act;
(vii) 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;
(viii) deposit insurance; and
(ix) consumer access to savings accounts and
checking accounts in financial institutions,
including lifeline banking and other consumer
accounts.
(D) Subcommittee on Insurance, Housing and Community
Opportunity.--The jurisdiction of the Subcommittee on
Insurance, Housing and Community Opportunity includes--
(i) insurance generally; terrorism risk
insurance; private mortgage insurance;
government sponsored insurance programs,
including those offering protection against
crime, fire, flood (and related land use
controls), earthquake and other natural
hazards; the Federal Insurance Office;
(ii) 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; 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;
(iii) 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; 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 sub-
committee 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 and
Government Sponsored Enterprises shall be comprised of
35 members, 20 elected by the majority caucus and 15
elected by the minority caucus.
(B) The Subcommittee on Domestic Monetary Policy and
Technology shall be comprised of 14 members, 8 elected
by the majority caucus and 6 elected by the minority
caucus.
(C) The Subcommittee on Financial Institutions and
Consumer Credit shall be comprised of 30 members, 17
elected by the majority caucus and 13 elected by the
minority caucus.
(D) The Subcommittee on Insurance, Housing and
Community Opportunity shall be comprised of 18 members,
10 elected by the majority caucus and 8 elected by the
minority caucus.
(E) The Subcommittee on International Monetary Policy
and Trade shall be comprised of 14 members, 8 elected
by the majority caucus and 6 elected by the minority
caucus.
(F) The Subcommittee on Oversight and Investigations
shall be comprised of 18 members, 10 elected by the
majority caucus and 8 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 in electronic form
and 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.
Audio and Video Coverage of Committee Hearings and Meetings
(c)(1) To the maximum extent feasible, the Committee shall
provide audio and video coverage of each hearing or meeting for
the transaction of business in a manner that allows the public
to easily listen to and view the proceedings; and,
(2) maintain the recordings of such coverage in a manner
that is easily accessible to the public.
APPENDIX 1
Applicable Provisions of Clauses 1, 2, and 4 of Rule XI and
Clauses 2 and 3 of Rule XIII of the Rules of the House of
Representatives for the 112th Congress
January 5, 2011
Rule XI: Procedures of Committees and Unfinished Business
Clauses 1 and 2: Rules for Standing Committees
In general
1. (a)(1)(A) The Rules of the House are the rules of its
committees and subcommittees so far as applicable.
(B) Each subcommittee is a part of its committee and is
subject to the authority and direction of that committee and to
its rules, so far as applicable.
(2)(A) In a committee or subcommittee--
(i) a motion to recess from day to day, or to recess
subject to the call of the Chair (within 24 hours),
shall be privileged; and
(ii) a motion to dispense with the first reading (in
full) of a bill or resolution shall be privileged if
printed copies are available.
(B) A motion accorded privilege under this subparagraph
shall be decided without debate.
(b)(1) Each committee may conduct at any time such
investigations and studies as it considers necessary or
appropriate in the exercise of its responsibilities under rule
X. Subject to the adoption of expense resolutions as required
by clause 6 of rule X, each committee may incur expenses,
including travel expenses, in connection with such
investigations and studies.
(2) A proposed investigative or oversight report shall be
considered as read in committee if it has been available to the
members for at least 24 hours (excluding Saturdays, Sundays, or
legal holidays except when the House is in session on such a
day).
(3) A report of an investigation or study conducted jointly
by more than one committee may be filed jointly, provided that
each of the committees complies independently with all
requirements for approval and filing of the report.
(4) After an adjournment sine die of the last regular
session of a Congress, an investigative or oversight report may
be filed with the Clerk at any time, provided that a member who
gives timely notice of intention to file supplemental,
minority, or additional views shall be entitled to not less
than seven calendar days in which to submit such views for
inclusion in the report.
(c) Each committee may have printed and bound such
testimony and other data as may be presented at hearings held
by the committee or its subcommittees. All costs of
stenographic services and transcripts in connection with a
meeting or hearing of a committee shall be paid from the
applicable accounts of the House described in clause 1(k)(1) of
rule X.
(d)(1) Not later than the 30th day after June 1 and
December 1, a committee shall submit to the House a semiannual
report on the activities of that committee.
(2) Such report shall include--
(A) separate sections summarizing the legislative and
oversight activities of that committee under this rule
and rule X during the applicable period;
(B) in the case of the first such report, a summary
of the oversight plans submitted by the committee under
clause 2(d) of rule X;
(C) a summary of the actions taken and
recommendations made with respect to the oversight
plans specified in subdivision (B);
(D) a summary of any additional oversight activities
undertaken by that committee and any recommendations
made or actions taken thereon; and
(E) a delineation of any hearings held pursuant to
clauses 2(n), (O), or (p) of this rule.
(3) After an adjournment sine die of a regular session of a
Congress, or after December 15, whichever occurs first, the
chair of a committee may file the second or fourth semiannual
report described in subparagraph (1) with the Clerk at any time
and without approval of the committee, provided that--
(A) a copy of the report has been available to each
member of the committee for at least seven calendar
days; and
(B) the report includes any supplemental, minority,
or additional views submitted by a member of the
committee.
Adoption of written rules
2. (a)(1) Each standing committee shall adopt written rules
governing its procedure. Such rules--
(A) shall be adopted in a meeting that is open to the
public unless the committee, in open session and with a
quorum present, determines by record vote that all or
part of the meeting on that day shall be closed to the
public;
(B) may not be inconsistent with the Rules of the
House or with those provisions of law having the force
and effect of Rules of the House; and
(C) shall in any event incorporate all of the
succeeding provisions of this clause to the extent
applicable.
(2) Each committee shall make its rules publicly available
in electronic form and submit such rules for publication in the
Congressional Record not later than 30 days after the chair of
the committee is elected in each odd-numbered year.
(3) A committee may adopt a rule providing that the chair
be directed to offer a motion under clause 1 of rule XXII
whenever the chair considers it appropriate.
Regular meeting days
(b) Each standing committee shall establish regular meeting
days for the conduct of its business, which shall be not less
frequent than monthly. Each such committee shall meet for the
consideration of a bill or resolution pending before the
committee or the transaction of other committee business on all
regular meeting days fixed by the committee unless otherwise
provided by written rule adopted by the committee.
Additional and special meetings
(c)(1) The chairman of each standing committee may call and
convene, as the chair considers necessary, additional and
special meetings of the committee for the consideration of a
bill or resolution pending before the committee or for the
conduct of other committee business, subject to such rules as
the committee may adopt. The committee shall meet for such
purpose under that call of the chairman.
(2) Three or more members of a standing committee may file
in the offices of the committee a written request that the
chair call a special meeting of the committee. Such request
shall specify the measure or matter to be considered.
Immediately upon the filing of the request, the clerk of the
committee shall notify the chair of the filing of the request.
If the chair does not call the requested special meeting within
three calendar days after the filing of the request (to be held
within seven calendar days after the filing of the request) a
majority of the members of the committee may file in the
offices of the committee their written notice that a special
meeting of the committee will be held. The written notice shall
specify the date and hour of the special meeting and the
measure or matter to be considered. The committee shall meet on
that date and hour. Immediately upon the filing of the notice,
the clerk of the committee shall notify all members of the
committee that such special meeting will be held and inform
them of its date and hour and the measure or matter to be
considered. Only the measure or matter specified in that notice
may be considered at that special meeting.
Temporary absence of chair
(d) A member of the majority party on each standing
committee or subcommittee thereof shall be designated by the
chair of the full committee as the vice chair of the committee
or subcommittee, as the case may be, and shall preside during
the absence of the chair from any meeting. If the chair and
vice chair of a committee or subcommittee are not present at
any meeting of the committee or subcommittee, the ranking
majority member who is present shall preside at that meeting.
Committee records
(e)(1)(A) Each committee shall keep a complete record of
all committee action which shall include--
(i) in the case of a meeting or hearing transcript, 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 involved; and
(ii) a record of the votes on any question on which a
record vote is demanded.
(B)(i) Except as provided in subdivision (B)(ii) and
subject to paragraph (k)(7), the result of each such record
vote shall be made available by the committee for inspection by
the public at reasonable times in its offices and also made
publicly available in electronic form within 48 hours of such
record vote. Information so available 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.
(ii) The result of any record vote taken in executive
session in the Committee on Ethics may not be made available
for inspection by the public without an affirmative vote of a
majority of the members of the committee.
(2)(A) Except as provided in subdivision (B), all committee
hearings, records, data, charts, and files shall be kept
separate and distinct from the congressional office records of
the member serving as its chair. Such records shall be the
property of the House, and each Member, Delegate, and the
Resident Commissioner shall have access thereto.
(B) A Member, Delegate, or Resident Commissioner, other
than members of the Committee on Ethics, may not have access to
the records of that committee respecting the conduct of a
Member, Delegate, Resident Commissioner, officer, or employee
of the House without the specific prior permission of that
committee.
(3) Each committee shall include in its rules standards for
availability of records of the committee delivered to the
Archivist of the United States under rule VII. Such standards
shall specify procedures for orders of the committee under
clause 3(b)(3) and clause 4(b) of rule VII, including a
requirement that nonavailability of a record for a period
longer than the period otherwise applicable under that rule
shall be approved by vote of the committee.
(4) Each committee shall make its publications available in
electronic form to the maximum extent feasible.
(5) To the maximum extent practicable, each committee
shall--
(A) provide audio and video coverage of each hearing
or meeting for the transaction of business in a manner
that allows the public to easily listen to and view the
proceedings; and
(B) maintain the recordings of such coverage in a
manner that is easily accessible to the public.
(6) Not later than 24 hours after the adoption of any
amendment to a measure or matter considered by a committee, the
chair of such committee shall cause the text of each such
amendment to be made publicly available in electronic form.
Prohibition against proxy voting
(f) A vote by a member of a committee or subcommittee with
respect to any measure or matter may not be cast by proxy.
Open meetings and hearings
(g)(1) Each meeting for the transaction of business,
including the markup of legislation, by a standing committee or
subcommittee thereof (other than the Committee on Standards of
Official Conduct or its subcommittees) shall be open to the
public, including to radio, television, and still photography
coverage, except when the committee or subcommittee, in open
session and with a majority present, determines by record vote
that all or part of the remainder of the meeting on that day
shall be in executive session because disclosure of matters to
be considered would endanger national security, would
compromise sensitive law enforcement information, would tend to
defame, degrade, or incriminate any person, or otherwise would
violate a law or rule of the House. Persons, other than members
of the committee and such noncommittee Members, Delegates,
Resident Commissioner, congressional staff, or departmental
representatives as the committee may authorize, may not be
present at a business or markup session that is held in
executive session. This subparagraph does not apply to open
committee hearings, which are governed by clause 4(a)(1) of
rule X or by subparagraph (2).
(2)(A) Each hearing conducted by a committee or
subcommittee (other than the Committee on Ethics or its
subcommittees) shall be open to the public, including to radio,
television, and still photography coverage, except when the
committee or subcommittee, in open session and with a majority
present, determines by record vote that all or part of the
remainder of that hearing on that day shall be closed to the
public because disclosure of testimony, evidence, or other
matters to be considered would endanger national security,
would compromise sensitive law enforcement information, or
would violate a law or rule of the House.
(B) Notwithstanding the requirements of subdivision (A), in
the presence of the number of members required under the rules
of the committee for the purpose of taking testimony, a
majority of those present may--
(i) agree to close the hearing for the sole purpose
of discussing whether testimony or evidence to be
received would endanger national security, would
compromise sensitive law enforcement information, or
would violate clause 2(k)(5); or
(ii) agree to close the hearing as provided in clause
2(k)(5).
(C) A Member, Delegate, or Resident Commissioner may not be
excluded from nonparticipatory attendance at a hearing of a
committee or subcommittee (other than the Committee on Ethics
or its subcommittees) unless the House by majority vote
authorizes a particular committee or subcommittee, for purposes
of a particular series of hearings on a particular article of
legislation or on a particular subject of investigation, to
close its hearings to Members, Delegates, and the Resident
Commissioner by the same procedures specified in this
subparagraph for closing hearings to the public.
(D) The committee or subcommittee may vote by the same
procedure described in this subparagraph to close one
subsequent day of hearing, except that the Committee on
Appropriations, the Committee on Armed Services, and the
Permanent Select Committee on Intelligence, and the
subcommittees thereof, may vote by the same procedure to close
up to five additional, consecutive days of hearings.
(3)(A) The chair of a committee shall announce the date,
place, and subject matter of--
(i) a committee hearing, which may not commence
earlier than one week after such notice; or
(ii) a committee meeting, which may not commence
earlier than the third day on which members have notice
thereof.
(B) A hearing or meeting may begin sooner than specified in
subdivision (A) in either of the following circumstances (in
which case the chair shall make the announcement specified in
subdivision (A) at the earliest possible time):
(i) the chair of the committee, with the concurrence
of the ranking minority member, determines that there
is good cause; or
(ii) the committee so determines by majority vote in
the presence of the number of members required under
the rules of the committee for the transaction of
business.
(C) An announcement made under this subparagraph shall be
published promptly in the Daily Digest and made publicly
available in electronic form.
(D) This subparagraph and subparagraph (4) shall not apply
to the Committee on Rules.
(4) At least 24 hours prior to the commencement of a
meeting for the markup of legislation, or at the time of an
announcement under subparagraph (3)(B) made within 24 hours
before such meeting, the chair of the committee shall cause the
text of such legislation to be made publicly available in
electronic form.
(5) Each committee shall, to the greatest extent
practicable, require witnesses who appear before it to submit
in advance written statements of proposed testimony and to
limit their initial presentations to the committee to brief
summaries thereof. In the case of a witness appearing in a
nongovernmental capacity, a written statement of proposed
testimony shall include a curriculum vitae and a disclosure of
the amount and source (by agency and program) of each Federal
grant (or subgrant thereof) or contract (or subcontract
thereof) received during the current fiscal year or either of
the two previous fiscal years by the witness or by an entity
represented by the witness. Such statements, with appropriate
redactions to protect the privacy of the witness, shall be made
publicly available in electronic form not later than one day
after the witness appears.
(6)(A) Except as provided in subdivision (B), a point of
order does not lie with respect to a measure reported by a
committee on the ground that hearings on such measure were not
conducted in accordance with this clause.
(B) A point of order on the ground described in subdivision
(A) may be made by a member of the committee that reported the
measure if such point of order was timely made and improperly
disposed of in the committee.
(7) This paragraph does not apply to hearings of the
Committee on Appropriations under clause 4(a)(1) of rule X.
Quorum requirements
(h)(1) A measure or recommendation may not be reported by a
committee unless a majority of the committee is actually
present.
(2) Each committee may fix the number of its members to
constitute a quorum for taking testimony and receiving
evidence, which may not be less than two.
(3) Each committee (other than the Committee on
Appropriations, the Committee on the Budget, and the Committee
on Ways and Means) may fix the number of its members to
constitute a quorum for taking any action other than one for
which the presence of a majority of the committee is otherwise
required, which may not be less than one-third of the members.
(4)(A) Each committee may adopt a rule authorizing the
chairman of a committee or subcommittee--
(i) to postpone further proceedings when a record
vote is ordered on the question of approving a measure
or matter or on adopting an amendment; and
(ii) to resume proceedings on a postponed question at
any time after reasonable notice.
(B) A rule adopted pursuant to this subparagraph shall
provide that when proceedings resume on a postponed question,
notwithstanding 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.
Limitation on committee sittings
(i) A committee may not sit during a joint session of the
House and Senate or during a recess when a joint meeting of the
House and Senate is in progress.
Calling and questioning of witnesses
(j)(1) Whenever a hearing is conducted by a committee on a
measure or matter, the minority members of the committee shall
be entitled, upon request to the chair by a majority of them
before the completion of the hearing, to call witnesses
selected by the minority to testify with respect to that
measure or matter during at least one day of hearing thereon.
(2)(A) Subject to subdivisions (B) and (C), each committee
shall apply the five minute rule during the questioning of
witnesses in a hearing until such time as each member of the
committee who so desires has had an opportunity to question
each witness.
(B) A committee may adopt a rule or motion permitting a
specified number of its members to question a witness for
longer than five minutes. The time for extended questioning of
a witness under this subdivision shall be equal for the
majority party and the minority party and may not exceed one
hour in the aggregate.
(C) A committee may adopt a rule or motion permitting
committee staff for its majority and minority party members to
question a witness for equal specified periods. The time for
extended questioning of a witness under this subdivision shall
be equal for the majority party and the minority party and may
not exceed one hour in the aggregate.
Hearing procedures
(k)(1) The chair at a hearing shall announce in an opening
statement the subject of the hearing.
(2) A copy of the committee rules and of this clause shall
be made available to each witness on request.
(3) Witnesses at hearings may be accompanied by their own
counsel for the purpose of advising them concerning their
constitutional rights.
(4) The chair may punish breaches of order and decorum, and
of professional ethics on the part of counsel, by censure and
exclusion from the hearings; and the committee may cite the
offender to the House for contempt.
(5) Whenever it is asserted by a member of the committee
that the evidence or testimony at a hearing may tend to defame,
degrade, or incriminate any person, or it is asserted by a
witness that the evidence or testimony that the witness would
give at a hearing may tend to defame, degrade, or incriminate
the witness--
(A) notwithstanding paragraph (g)(2), such testimony
or evidence shall be presented in executive session if,
in the presence of the number of members required under
the rules of the committee for the purpose of taking
testimony, the committee determines by vote of a
majority of those present that such evidence or
testimony may tend to defame, degrade, or incriminate
any person; and
(B) the committee shall proceed to receive such
testimony in open session only if the committee, a
majority being present, determines that such evidence
or testimony will not tend to defame, degrade, or
incriminate any person.
In either case the committee shall afford such person an
opportunity voluntarily to appear as a witness, and receive and
dispose of requests from such person to subpoena additional
witnesses.
(6) Except as provided in subparagraph (5), the chairman
shall receive and the committee shall dispose of requests to
subpoena additional witnesses.
(7) Evidence or testimony taken in executive session, and
proceedings conducted in executive session, may be released or
used in public sessions only when authorized by the committee,
a majority being present.
(8) In the discretion of the committee, witnesses may
submit brief and pertinent sworn statements in writing for
inclusion in the record. The committee is the sole judge of the
pertinence of testimony and evidence adduced at its hearing.
(9) A witness may obtain a transcript copy of the testimony
of such witness given at a public session or, if given at an
executive session, when authorized by the committee.
Supplemental, minority, or additional views
(l) If at the time of approval of a measure or matter by a
committee (other than the Committee on Rules) a member of the
committee gives notice of intention to file supplemental,
minority, or additional views for inclusion in the report to
the House thereon, that member shall be entitled to not less
than two additional calendar days after the day of such notice
(excluding Saturdays, Sundays, and legal holidays except when
the House is in session on such a day) to file such views, in
writing and signed by that member, with the clerk of the
committee.
Power to sit and act; subpoena power
(m)(1) For the purpose of carrying out any of its functions
and duties under this rule and rule X (including any matters
referred to it under clause 2 of rule XII), a committee or
subcommittee is authorized (subject to subparagraph (3)(A))--
(A) to sit and act at such times and places within
the United States, whether the House is in session, has
recessed, or has adjourned, and to hold such hearings
as it considers necessary; and
(B) to require, by subpoena or otherwise, the
attendance and testimony of such witnesses and the
production of such books, records, correspondence,
memoranda, papers, and documents as it considers
necessary.
(2) The chair of the committee, or a member designated by
the chair, may administer oaths to witnesses.
(3)(A)(i) Except as provided in subdivision (A)(ii), a
subpoena may be authorized and issued by a committee or
subcommittee under subparagraph (1)(B) in the conduct of an
investigation or series of investigations or activities only
when authorized by the committee or subcommittee, a majority
being present. The power to authorize and issue subpoenas under
subparagraph (1)(B) may be delegated to the chair of the
committee under such rules and under such limitations as the
committee may prescribe. Authorized subpoenas shall be signed
by the chair of the committee or by a member designated by the
committee.
(ii) In the case of a subcommittee of the Committee on
Ethics, a subpoena may be authorized and issued only by an
affirmative vote of a majority of its members.
(B) A subpoena duces tecum may specify terms of return
other than at a meeting or hearing of the committee or
subcommittee authorizing the subpoena.
(C) Compliance with a subpoena issued by a committee or
subcommittee under subparagraph (1)(B) may be enforced only as
authorized or directed by the House.
(n)(1) Each standing committee, or a subcommittee thereof,
shall hold at least one hearing during each 120-day period
following the establishment of the committee on the topic of
waste, fraud, abuse, or mismanagement in Government programs
which that committee may authorize.
(2) A hearing described in subparagraph (1) shall include a
focus on the most egregious instances of waste, fraud, abuse,
or mismanagement as documented by any report the committee has
received from a Federal Office of the Inspector General or the
Comptroller General of the United States.
(o) Each committee, or a subcommittee thereof, shall hold
at least one hearing in any session in which the committee has
received disclaimers of agency financial statements from
auditors of any Federal agency that the committee may authorize
to hear testimony on such disclaimers from representatives of
any such agency.
(p) Each standing committee, or a subcommittee thereof,
shall hold at least one hearing on issues raised by reports
issued by the Comptroller General of the United States
indicating that Federal programs or operations that the
committee may authorize are at high risk for waste, fraud, and
mismanagement, known as the `high-risk list' or the `high-risk
series'.
Clause 4: Audio and visual coverage of committee proceedings
4. (a) The purpose of this clause is to provide a means, in
conformity with acceptable standards of dignity, propriety, and
decorum, by which committee hearings or committee meetings that
are open to the public may be covered by audio and visual
means--
(1) for the education, enlightenment, and information
of the general public, on the basis of accurate and
impartial news coverage, regarding the operations,
procedures, and practices of the House as a legislative
and representative body, and regarding the measures,
public issues, and other matters before the House and
its committees, the consideration thereof, and the
action taken thereon; and
(2) for the development of the perspective and
understanding of the general public with respect to the
role and function of the House under the Constitution
as an institution of the Federal Government.
(b) In addition, it is the intent of this clause that radio
and television tapes and television film of any coverage under
this clause may not be used, or made available for use, as
partisan political campaign material to promote or oppose the
candidacy of any person for elective public office.
(c) It is, further, the intent of this clause that the
general conduct of each meeting (whether of a hearing or
otherwise) covered under authority of this clause by audio or
visual means, and the personal behavior of the committee
members and staff, other Government officials and personnel,
witnesses, television, radio, and press media personnel, and
the general public at the hearing or other meeting, shall be in
strict conformity with and observance of the acceptable
standards of dignity, propriety, courtesy, and decorum
traditionally observed by the House in its operations, and may
not be such as to--
(1) distort the objects and purposes of the hearing
or other meeting or the activities of committee members
in connection with that hearing or meeting or in
connection with the general work of the committee or of
the House; or
(2) cast discredit or dishonor on the House, the
committee, or a Member, Delegate, or Resident
Commissioner or bring the House, the committee, or a
Member, Delegate, or Resident Commissioner into
disrepute.
(d) The coverage of committee hearings and meetings by
audio and visual means shall be permitted and conducted only in
strict conformity with the purposes, provisions, and
requirements of this clause.
(e) Whenever a hearing or meeting conducted by a committee
or subcommittee is open to the public, those proceedings shall
be open to coverage by audio and visual means. A committee or
subcommittee chair may not limit the number of television or
still cameras to fewer than two representatives from each
medium (except for legitimate space or safety considerations,
in which case pool coverage shall be authorized).
(f) Each committee shall adopt written rules to govern its
implementation of this clause. Such rules shall contain
provisions to the following effect:
(1) If audio or visual coverage of the hearing or
meeting is to be presented to the public as live
coverage, that coverage shall be conducted and
presented without commercial sponsorship.
(2) The allocation among the television media of the
positions or the number of television cameras permitted
by a committee or subcommittee chair in a hearing or
meeting room shall be in accordance with fair and
equitable procedures devised by the Executive Committee
of the Radio and Television Correspondents' Galleries.
(3) Television cameras shall be placed so as not to
obstruct in any way the space between a witness giving
evidence or testimony and any member of the committee
or the visibility of that witness and that member to
each other.
(4) Television cameras shall operate from fixed
positions but may not be placed in positions that
obstruct unnecessarily the coverage of the hearing or
meeting by the other media.
(5) Equipment necessary for coverage by the
television and radio media may not be installed in, or
removed from, the hearing or meeting room while the
committee is in session.
(6)(A) Except as provided in subdivision (B),
floodlights, spotlights, strobe lights, and flashguns
may not be used in providing any method of coverage of
the hearing or meeting.
(B) The television media may install additional
lighting in a hearing or meeting room, without cost to
the Government, in order to raise the ambient lighting
level in a hearing or meeting room to the lowest level
necessary to provide adequate television coverage of a
hearing or meeting at the current state of the art of
television coverage.
(7) If requests are made by more of the media than
will be permitted by a committee or subcommittee chair
for coverage of a hearing or meeting by still
photography, that coverage shall be permitted on the
basis of a fair and equitable pool arrangement devised
by the Standing Committee of Press Photographers.
(8) Photographers may not position themselves between
the witness table and the members of the committee at
any time during the course of a hearing or meeting.
(9) Photographers may not place themselves in
positions that obstruct unnecessarily the coverage of
the hearing by the other media.
(10) Personnel providing coverage by the television
and radio media shall be currently accredited to the
Radio and Television Correspondents' Galleries.
(11) Personnel providing coverage by still
photography shall be currently accredited to the Press
Photographers' Gallery.
(12) Personnel providing coverage by the television
and radio media and by still photography shall conduct
themselves and their coverage activities in an orderly
and unobtrusive manner.
Rule XIII: Calendars and Committee Reports
Clause 2: Filing and printing of reports
2. (a)(1) Except as provided in subparagraph (2), all
reports of committees (other than those filed from the floor)
shall be delivered to the Clerk for printing and reference to
the proper calendar under the direction of the Speaker in
accordance with clause 1. The title or subject of each report
shall be entered on the Journal and printed in the
Congressional Record.
(2) A bill or resolution reported adversely (other than
those filed as privileged) shall be laid on the table unless a
committee to which the bill or resolution was referred requests
at the time of the report its referral to an appropriate
calendar under clause 1 or unless, within three days
thereafter, a Member, Delegate, or Resident Commissioner makes
such a request.
(b)(1) It shall be the duty of the chair of each committee
to report or cause to be reported promptly to the House a
measure or matter approved by the committee and to take or
cause to be taken steps necessary to bring the measure or
matter to a vote.
(2) In any event, the report of a committee on a measure
that 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 a written request for
the filing of the report, signed by a majority of the members
of the committee, has been filed with the clerk of the
committee. The clerk of the committee shall immediately notify
the chair of the filing of such a request. This subparagraph
does not apply to a report of the Committee on Rules with
respect to a rule, joint rule, or order of business of the
House, or to the reporting of a resolution of inquiry addressed
to the head of an executive department.
(c) All supplemental, minority, or additional views filed
under clause 2(l) of rule XI by one or more members of a
committee shall be included in, and shall be a part of, the
report filed by the committee with respect to a measure or
matter. When time guaranteed by clause 2(l) of rule XI has
expired (or, if sooner, when all separate views have been
received), the committee may arrange to file its report with
the Clerk not later than one hour after the expiration of such
time. This clause and provisions of clause 2(l) of rule XI do
not preclude the immediate filing or printing of a committee
report in the absence of a timely request for the opportunity
to file supplemental, minority, or additional views as provided
in clause 2(l) of rule XI.
Clause 3: Content of reports
3. (a)(1) Except as provided in subparagraph (2), the
report of a committee on a measure or matter shall be printed
in a single volume that--
(A) shall include all supplemental, minority, or
additional views that have been submitted by the time
of the filing of the report; and
(B) shall bear on its cover a recital that any such
supplemental, minority, or additional views (and any
material submitted under paragraph (c)(3)) are included
as part of the report.
(2) A committee may file a supplemental report for the
correction of a technical error in its previous report on a
measure or matter. A supplemental report only correcting errors
in the depiction of record votes under paragraph (b) may be
filed under this subparagraph and shall not be subject to the
requirement in clause 4 or clause 6 concerning the availability
of reports.
(b) With respect to each record vote on a motion to report
a measure or matter of a public nature, and on any amendment
offered to the measure or matter, the total number of votes
cast for and against, and the names of members voting for and
against, shall be included in the committee report. The
preceding sentence does not apply to votes taken in executive
session by the Committee on Ethics.
(c) The report of a committee on a measure that has been
approved by the committee shall include, separately set out and
clearly identified, the following:
(1) Oversight findings and recommendations under
clause 2(b)(1) of rule X.
(2) The statement required by section 308(a) of the
Congressional Budget Act of 1974, except that an
estimate of new budget authority shall include, when
practicable, a comparison of the total estimated
funding level for the relevant programs to the
appropriate levels under current law.
(3) An estimate and comparison prepared by the
Director of the Congressional Budget Office under
section 402 of the Congressional Budget Act of 1974 if
timely submitted to the committee before the filing of
the report.
(4) A statement of general performance goals and
objectives, including outcome-related goals and
objectives, for which the measure authorizes funding.
(d) Each report of a committee on a public bill or public
joint resolution shall contain the following:
(1) (A) An estimate by the committee of the costs
that would be incurred in carrying out the bill or
joint resolution in the fiscal year in which it is
reported and in each of the five fiscal years following
that fiscal year (or for the authorized duration of any
program authorized by the bill or joint resolution if
less than five years);
(B) a comparison of the estimate of costs described
in subdivision (A) made by the committee with any
estimate of such costs made by a Government agency and
submitted to such committee; and
(C) when practicable, a comparison of the total
estimated funding level for the relevant programs with
the appropriate levels under current law.
(2)(A) In subparagraph (1) the term ''Government
agency'' includes any department, agency,
establishment, wholly owned Government corporation, or
instrumentality of the Federal Government or the
government of the District of Columbia.
(B) Subparagraph (1) does not apply to the Committee
on Appropriations, the Committee on House
Administration, the Committee on Rules, or the
Committee on Ethics, and does not apply when a cost
estimate and comparison prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974 has been included in
the report under paragraph (c)(3).
(e)(1) Whenever a committee reports a bill or joint
resolution proposing to repeal or amend a statute or part
thereof, it shall include in its report or in an accompanying
document--
(A) the text of a statute or part thereof that is
proposed to be repealed; and
(B) a comparative print of any part of the bill or
joint resolution proposing to amend the statute and of
the statute or part thereof proposed to be amended,
showing by appropriate typographical devices the
omissions and insertions proposed.
(2) If a committee reports a bill or joint resolution
proposing to repeal or amend a statute or part thereof with a
recommendation that the bill or joint resolution be amended,
the comparative print required by subparagraph (1) shall
reflect the changes in existing law proposed to be made by the
bill or joint resolution as proposed to be amended.
(f)(1) A report of the Committee on Appropriations on a
general appropriation bill shall include--
(A) a concise statement describing the effect of any
provision of the accompanying bill that directly or
indirectly changes the application of existing law; and
(B) a list of all appropriations contained in the
bill for expenditures not currently authorized by law
for the period concerned (excepting classified
intelligence or national security programs, projects,
or activities), along with a statement of the last year
for which such expenditures were authorized, the level
of expenditures authorized for that year, the actual
level of expenditures for that year, and the level of
appropriations in the bill for such expenditures.
(2) Whenever the Committee on Appropriations reports a bill
or joint resolution including matter specified in clause
1(b)(2) or (3) of rule X, it shall include--
(A) in the bill or joint resolution, separate
headings for ``Rescissions'' and ``Transfers of
Unexpended Balances''; and
(B) in the report of the committee, a separate
section listing such rescissions and transfers.
(g) Whenever the Committee on Rules reports a resolution
proposing to repeal or amend a standing rule of the House, it
shall include in its report or in an accompanying document--
(1) the text of any rule or part thereof that is
proposed to be repealed; and
(2) a comparative print of any part of the resolution
proposing to amend the rule and of the rule or part
thereof proposed to be amended, showing by appropriate
typographical devices the omissions and insertions
proposed.
(h)(1) It shall not be in order to consider a bill or joint
resolution reported by the Committee on Ways and Means that
proposes to amend the Internal Revenue Code of 1986 unless--
(A) the report includes a tax complexity analysis
prepared by the Joint Committee on Internal Revenue
Taxation in accordance with section 4022(b) of the
Internal Revenue Service Restructuring and Reform Act
of 1998; or
(B) the chair of the Committee on Ways and Means
causes such a tax complexity analysis to be printed in
the Congressional Record before consideration of the
bill or joint resolution.
(2)(A) It shall not be in order to consider a bill or joint
resolution reported by the Committee on Ways and Means that
proposes to amend the Internal Revenue Code of 1986 unless--
(i) the report includes a macro-economic impact
analysis:
(ii) the report includes a statement from the Joint
Committee on Internal Revenue Taxation explaining why a
macroeconomic impact analysis is not calculable; or
(iii) the chair of the Committee on Ways and Means
causes a macroeconomic impact analysis to be printed in
the Congressional Record before consideration of the
bill or joint resolution.
(B) In subdivision (A), the term ``macroeconomic impact
analysis'' means--
(i) an estimate prepared by the Joint Committee on
Internal Revenue Taxation of the changes in economic
output, employment, capital stock, and tax revenues
expected to result from enactment of the proposal; and
(ii) a statement from the Joint Committee on Internal
Revenue Taxation identifying the critical assumptions
and the source of data underlying that estimate.
MEMBERSHIP AND ORGANIZATION OF THE COMMITTEE ON FINANCIAL SERVICES
one hundred and twelfth congress
COMMITTEE ON FINANCIAL SERVICES
(Ratio: 34-27)
SPENCER BACHUS, Alabama, Chairman
BARNEY FRANK, Massachusetts, Ranking MemberNSARLING, Texas, Vice
MAXINE WATERS, California Chairman
CAROLYN B. MALONEY, New York PETER T. KING, New York
LUIS V. GUTIERREZ, Illinois EDWARD R. ROYCE, California
NYDIA M. VELAZQUEZ, New York FRANK D. LUCAS, Oklahoma
MELVIN L. WATT, North Carolina RON PAUL, Texas
GARY L. ACKERMAN, New York DONALD A. MANZULLO, Illinois
BRAD SHERMAN, California WALTER B. JONES, North Carolina
GREGORY W. MEEKS, New York JUDY BIGGERT, Illinois
MICHAEL E. CAPUANO, Massachusetts GARY G. MILLER, California
RUBEN HINOJOSA, Texas SHELLEY MOORE CAPITO, West
WM. LACY CLAY, Missouri Virginia
CAROLYN McCARTHY, New York SCOTT GARRETT, New Jersey
JOE BACA, California RANDY NEUGEBAUER, Texas
STEPHEN F. LYNCH, Massachusetts PATRICK T. McHENRY, North Carolina
BRAD MILLER, North Carolina JOHN CAMPBELL, California
DAVID SCOTT, Georgia MICHELE BACHMANN, Minnesota
AL GREEN, Texas KEVIN McCARTHY, California
EMANUEL CLEAVER, Missouri STEVAN PEARCE, New Mexico
GWEN MOORE, Wisconsin BILL POSEY, Florida
KEITH ELLISON, Minnesota MICHAEL G. FITZPATRICK,
ED PERLMUTTER, Colorado Pennsylvania
JOE DONNELLY, Indiana LYNN A. WESTMORELAND, Georgia
ANDRE CARSON, Indiana BLAINE LUETKEMEYER, Missouri
JAMES A. HIMES, Connecticut BILL HUIZENGA, Michigan
GARY C. PETERS, Michigan SEAN P. DUFFY, Wisconsin
JOHN C. CARNEY, Jr., Delaware NAN A. S. HAYWORTH, New York
JAMES B. RENACCI, Ohio
ROBERT HURT, Virginia
ROBERT J. DOLD, Illinois
DAVID SCHWEIKERT, Arizona
MICHAEL G. GRIMM, New York
FRANCISCO ``QUICO'' CANSECO, Texas
STEVE STIVERS, Ohio
STEPHEN LEE FINCHER, Tennessee\1\
FRANK C. GUINTA, New Hampshire\2\
SUBCOMMITTEE MEMBERSHIPS
Subcommittee on Capital Markets and Government Sponsored Enterprises
(Ratio: 20-15)
SCOTT GARRETT, New Jersey,
Chairman
MAXINE WATERS, California, Ranking MemberD SCHWEIKERT, Arizona, Vice
GARY L. ACKERMAN, New York Chairman
BRAD SHERMAN, California PETER T. KING, New York
RUBEN HINOJOSA, Texas EDWARD R. ROYCE, California
STEPHEN F. LYNCH, Massachusetts FRANK D. LUCAS, Oklahoma
BRAD MILLER, North Carolina DONALD A. MANZULLO, Illinois
CAROLYN B. MALONEY, New York JUDY BIGGERT, Illinois
GWEN MOORE, Wisconsin JEB HENSARLING, Texas
ED PERLMUTTER, Colorado RANDY NEUGEBAUER, Texas
JOE DONNELLY, Indiana JOHN CAMPBELL, California
ANDRE CARSON, Indiana KEVIN McCARTHY, California
JAMES A. HIMES, Connecticut STEVAN PEARCE, New Mexico
GARY C. PETERS, Michigan BILL POSEY, Florida
AL GREEN, Texas MICHAEL G. FITZPATRICK,
KEITH ELLISON, Minnesota Pennsylvania
BARNEY FRANK, Massachusetts, ex officioN A. S. HAYWORTH, New York
ROBERT HURT, Virginia
MICHAEL G. GRIMM, New York
STEVE STIVERS, Ohio
ROBERT J. DOLD, Illinois
FRANCISCO ``QUICO'' CANSECO, Texas
SPENCER BACHUS, Alabama, ex
officio
Subcommittee on Domestic Monetary Policy and Technology
(Ratio: 8-6)
RON PAUL, Texas, Chairman
WM. LACY CLAY, Missouri, Ranking MemberLTER B. JONES, North Carolina,
CAROLYN B. MALONEY, New York Vice Chairman
GREGORY W. MEEKS, New York FRANK D. LUCAS, Oklahoma
AL GREEN, Texas PATRICK T. McHENRY, North Carolina
EMANUEL CLEAVER, Missouri BLAINE LUETKEMEYER, Missouri
GARY C. PETERS, Michigan BILL HUIZENGA, Michigan
BARNEY FRANK, Massachusetts, ex officioN A. S. HAYWORTH, New York
DAVID SCHWEIKERT, Arizona
SPENCER BACHUS, Alabama, ex
officio
Subcommittee on Financial Institutions and Consumer Credit
(Ratio: 17-13)
SHELLEY MOORE CAPITO, West
Virginia, Chairman
CAROLYN B. MALONEY, New York, Ranking Member. RENACCI, Ohio, Vice
LUIS V. GUTIERREZ, Illinois Chairman
MELVIN L. WATT, North Carolina EDWARD R. ROYCE, California
GARY L. ACKERMAN, New York DONALD A. MANZULLO, Illinois
RUBEN HINOJOSA, Texas WALTER B. JONES, North Carolina
CAROLYN McCARTHY, New York JEB HENSARLING, Texas
JOE BACA, California PATRICK T. McHENRY, North Carolina
BRAD MILLER, North Carolina KEVIN McCARTHY, California
DAVID SCOTT, Georgia STEVAN PEARCE, New Mexico
NYDIA M. VELAZQUEZ, New York LYNN A. WESTMORELAND, Georgia
GREGORY W. MEEKS, New York BLAINE LUETKEMEYER, Missouri
STEPHEN F. LYNCH, Massachusetts BILL HUIZENGA, Michigan
JOHN CARNEY, Jr., Delaware SEAN P. DUFFY, Wisconsin
BARNEY FRANK, Massachusetts, ex officioANCISCO ``QUICO'' CANSECO, Texas
MICHAEL G. GRIMM, New York
STEPHEN LEE FINCHER, Tennessee
FRANK C. GUINTA, New Hampshire
SPENCER BACHUS, Alabama, ex
officio
Subcommittee on Insurance, Housing and Community Opportunity
(Ratio: 10-8)
JUDY BIGGERT, Illinois, Chairman
LUIS V. GUTIERREZ, Illinois, Ranking Member HURT, Virginia, Vice
MAXINE WATERS, California Chairman
NYDIA M. VELAZQUEZ, New York GARY G. MILLER, California
EMANUEL CLEAVER, Missouri SHELLEY MOORE CAPITO, West
WM. LACY CLAY, Missouri Virginia
MELVIN L. WATT, North Carolina SCOTT GARRETT, New Jersey
BRAD SHERMAN, California PATRICK T. McHENRY, North Carolina
MICHAEL E. CAPUANO, Massachusetts LYNN A. WESTMORELAND, Georgia
BARNEY FRANK, Massachusetts, ex officioAN P. DUFFY, Wisconsin
ROBERT J. DOLD, Illinois
STEVE STIVERS, Ohio
SPENCER BACHUS, Alabama, ex
officio
Subcommittee on International Monetary Policy and Trade
(Ratio: 8-6)
GARY G. MILLER, California,
Chairman
CAROLYN McCARTHY, New York, ROBERT J. DOLD, Illinois, Vice
Ranking Member Chairman
GWEN MOORE, Wisconsin RON PAUL, Texas
ANDRE CARSON, Indiana DONALD A. MANZULLO, Illinois
DAVID SCOTT, Georgia JOHN CAMPBELL, California
ED PERLMUTTER, Colorado MICHELE BACHMANN, Minnesota
JOE DONNELLY, Indiana BILL HUIZENGA, Michigan
BARNEY FRANK, Massachusetts, ex officioANK C. GUINTA, New Hampshire
SPENCER BACHUS, Alabama, ex
officio
Subcommittee on Oversight and Investigations
(Ratio: 10-8)
RANDY NEUGEBAUER, Texas, Chairman
MICHAEL E. CAPUANO, Massachusetts, Ranking MemberITZPATRICK,
STEPHEN F. LYNCH, Massachusetts Pennsylvania, Vice Chairman
MAXINE WATERS, California PETER T. KING, New York
JOE BACA, California MICHELE BACHMANN, Minnesota
BRAD MILLER, North Carolina STEVAN PEARCE, New Mexico
KEITH ELLISON, Minnesota BILL POSEY, Florida
JAMES A. HIMES, Connecticut NAN A. S. HAYWORTH, New York
JOHN C. CARNEY, Jr., Delaware JAMES B. RENACCI, Ohio
BARNEY FRANK, Massachusetts, ex officioANCISCO ``QUICO'' CANSECO, Texas
STEPHEN LEE FINCHER, Tennessee
SPENCER BACHUS, Alabama, ex
officio
MEMBERSHIP NOTES
------
\\The following members are on leave from the Committee on
Financial Services: Mr. Dreier, ranking immediately before Mr. Bachus;
and Mr. Sessions, ranking immediately after Mr. Paul.
\1\Mr. Fincher was elected to the Committee on May 11, 2011, filling a
vacancy created by the resignation of Mr. Marchant on March 15, 2011.
Mr. Marchant had ranked immediately after Ms. Bachmann.
\2\Mr. Guinta was elected to the Committee on August 1, 2012, filling a
vacancy created by the resignation of Mr. McCotter on July 6, 2012. Mr.
McCotter had ranked immediately after Ms. Bachmann.
COMMITTEE STAFF
Majority Staff
James H. Clinger
Staff Director and Chief Counsel
Warren Tryon
Deputy Staff Director
Shannon Flaherty McGahn
Deputy Staff Director--Strategy
and Public Affairs
Jeffrey W. Emerson
Deputy Staff Director--
Communications
Natalie N. McGarry
Parliamentarian / Senior Counsel
Terisa L. Allison, Editor
Steve F. Arauz, Assistant Systems
Administrator
Nicole C. Austin, Professional
Staff
Norman R. Bishop, Deputy
Communications Director
E. Chase Burgess, Staff Assistant
Joseph R. Clark, Counsel
John W. Cole, Counsel
Andrew Duke, Professional Staff
Kevin R. Edgar, Senior Counsel
Paul-Martin Foss, Professional
Staff
Emily J. Frumberg, Member Service
Coordinator
Angela S. Gambo, Administrative
Assistant
Brian Johnson, Counsel
Tallman Johnson, Senior
Professional Staff
Clinton Columbus Jones, III,
General Counsel
Rosemary E. Keech, Chief Clerk
Jonathan E. Madison, Professional
Staff
Samuel C. Mahler, Professional
Staff
Christopher J. McCaghren, Staff
Assistant
Kylin B. McCardle, Professional
Staff
Lesli E. McCollum-Gooch
Professional Staff
Francisco A. Medina, Deputy Chief
Counsel
Susan C. Mitchell, Counsel
Kirsten J. Mork, Professional
Staff
Joe Pinder, Senior Professional
Staff
Aaron A. Ranck, Senior
Professional Staff
Clifford Roberti, Professional
Staff
Sergio G. Rodriguera, Jr.,
Professional Staff
Gisele G. Roget, Senior Analyst
Ryan A. Rusbuldt, Staff Assistant
Christopher Y. Russell,
Professional Staff
John A. Selden, Counsel
Edward G. Skala, Senior
Professional Staff
Aaron T. Sporck Professional Staff
Michael Staley, Policy Advisor
Alexander H. Teel Professional
Staff
Kim Trimble, Systems Administrator
Anne Marie Turner, Senior Counsel
Anthony D. Walden, Staff Assistant
Anna Bartlett Wright, Operations
Manager
Minority Staff
Jeanne M. Roslanowick
Staff Director and Chief Counsel
Michael T. Beresik
Deputy Staff Director
Meredith C. Connelly, Senior
Professional Staff Member
Kristofor S. Erickson, Senior
Professional Staff Member
Alfred J. Forman, Jr., Systems
Administrator
Bruno Freitas, Professional Staff
Member
Maria E. Giesta, Professional
Staff Member
Harry D. Gural, Communications
Director
Erika Jeffers, Senior Counsel
Kellie Larkin, General Counsel and
Legislative Director
Gail W. Laster, Deputy Chief
Counsel
Patricia A. Lord, Senior
Professional Staff Member
Marcos F. Manosalvas, Staff
Associate
Kathryn J. Marks, Senior Counsel
Dominique M. McCoy, Senior Counsel
Daniel P. McGlinchey, Senior
Professional Staff Member
Eric S. Orner, Deputy
Communications Director
Kirk Schwarzbach, Professional
Staff Member
David A. Smith, Chief Economist
Lawranne Stewart, Deputy Chief
Counsel
Adrianne G. Threatt, Senior
Counsel
LEGISLATIVE AND OVERSIGHT ACTIVITIES
From January 1, 2011 through December 31, 2012 of the First
and Second Sessions of the 112th Congress, 480 bills were
referred to the Committee on Financial Services. The Committee
reported to the House or was discharged from further
consideration of 41 measures. During this period, the Committee
considered one conference report. Twenty 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 from January
1, 2011 to December 31, 2012 of the 112th Congress, including a
summary of the activities taken by the Committee during this
period to implement its Oversight Plan for the 112th Congress.
COMMITTEE ON FINANCIAL SERVICES
(Ratio: 34-27)
SPENCER BACHUS, Alabama, Chairman
BARNEY FRANK, Massachusetts, Ranking MemberNSARLING, Texas, Vice
MAXINE WATERS, California Chairman
CAROLYN B. MALONEY, New York PETER T. KING, New York
LUIS V. GUTIERREZ, Illinois EDWARD R. ROYCE, California
NYDIA M. VELAZQUEZ, New York FRANK D. LUCAS, Oklahoma
MELVIN L. WATT, North Carolina RON PAUL, Texas
GARY L. ACKERMAN, New York DONALD A. MANZULLO, Illinois
BRAD SHERMAN, California WALTER B. JONES, North Carolina
GREGORY W. MEEKS, New York JUDY BIGGERT, Illinois
MICHAEL E. CAPUANO, Massachusetts GARY G. MILLER, California
RUBEN HINOJOSA, Texas SHELLEY MOORE CAPITO, West
WM. LACY CLAY, Missouri Virginia
CAROLYN McCARTHY, New York SCOTT GARRETT, New Jersey
JOE BACA, California RANDY NEUGEBAUER, Texas
STEPHEN F. LYNCH, Massachusetts PATRICK T. McHENRY, North Carolina
BRAD MILLER, North Carolina JOHN CAMPBELL, California
DAVID SCOTT, Georgia MICHELE BACHMANN, Minnesota
AL GREEN, Texas KEVIN McCARTHY, California
EMANUEL CLEAVER, Missouri STEVAN PEARCE, New Mexico
GWEN MOORE, Wisconsin BILL POSEY, Florida
KEITH ELLISON, Minnesota MICHAEL G. FITZPATRICK,
ED PERLMUTTER, Colorado Pennsylvania
JOE DONNELLY, Indiana LYNN A. WESTMORELAND, Georgia
ANDRE CARSON, Indiana BLAINE LUETKEMEYER, Missouri
JAMES A. HIMES, Connecticut BILL HUIZENGA, Michigan
GARY C. PETERS, Michigan SEAN P. DUFFY, Wisconsin
JOHN C. CARNEY, Jr., Delaware NAN A. S. HAYWORTH, New York
JAMES B. RENACCI, Ohio
ROBERT HURT, Virginia
ROBERT J. DOLD, Illinois
DAVID SCHWEIKERT, Arizona
MICHAEL G. GRIMM, New York
FRANCISCO ``QUICO'' CANSECO, Texas
STEVE STIVERS, Ohio
STEPHEN LEE FINCHER, Tennessee\1\
FRANK C. GUINTA, New Hampshire\2\
COMMITTEE ON FINANCIAL SERVICES
Full Committee Legislative Activities
CHURCH PLAN INVESTMENT CLARIFICATION ACT
(H.R. 33)
Summary
H.R. 33, the Church Plan Investment Clarification Act,
would make a technical correction to Public Law 108-359, which
prevents church pension plans from investing in collective
trusts. The bill would allow church pension plans to invest in
collective trusts by broadening an exemption in the current
law. In 2003, Congress attempted to achieve this result, but
omitted a necessary exemption from the Securities Act of 1933
to provide parallel treatment for church plans with exemptions
in the Investment Company Act of 1940 and the Securities
Exchange Act of 1934. Without this correction, collective
trusts will not accept investments from church pension plans.
Legislative History
H.R. 33 was introduced by Subcommittee on Insurance,
Housing and Community Opportunity Chairman Judy Biggert on
January 5, 2011 and referred to the Committee on Financial
Services. The bill has no cosponsors.
On March 10, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Oversight of the Securities and Exchange Commission's
Operations, Activities, Challenges and FY 2012 Budget
Request.'' The Subcommittee received testimony from the
following witnesses: Mr. Robert Cook, Director, Division of
Trading and Markets, Securities and Exchange Commission (SEC);
Ms. Meredith Cross, Director, Division of Corporation Finance,
SEC; Mr. Robert Khuzami, Director, Division of Enforcement,
SEC; Ms. Eileen Rominger, Director, Division of Investment
Management, SEC; and Mr. Carlo di Florio, Director, Office of
Compliance Inspections and Examinations, SEC. During the
hearing, Chairman Biggert asked Ms. Meredith Cross to comment
on the need for legislation to modify the treatment of church
pension plan investments in collective trusts.
On May 3, 2011 and May 4, 2011, the Subcommittee on Capital
Markets and Government Sponsored Enterprises met in open
session and ordered the bill, as amended, favorably reported to
the Committee by a voice vote.
On June 22, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on July 1, 2011
(H. Rept. 112-131).
On July 18, 2011, the House agreed to a motion to suspend
the rules and pass H.R. 33, as amended, by a record vote of 310
yeas and 1 nay.
On June 21, 2012, the Senate passed H.R. 33 without
amendment by Unanimous Consent.
On July 9, 2012, H.R. 33 was signed by the President and
became Public Law No. 112-142.
FHA REFINANCE PROGRAM TERMINATION ACT
(H.R. 830)
Summary
H.R. 830, the FHA Refinance Program Termination Act, would
rescind all unobligated balances made available for the program
by Title I of the Emergency Economic Stabilization Act (12
U.S.C. 5230) that have been allocated for use under the FHA
Refinance Program (pursuant to Mortgagee Letter 2010-23 of the
Secretary of the Department of Housing and Urban Development
(HUD)). The bill would also terminate the program and void the
Mortgagee Letter pursuant to which it was implemented, with
concessions made for current participants in the program.
Legislative History
On February 28, 2011, H.R. 830 was introduced by
Representative Robert Dold and was referred to the Committee on
Financial Services. The bill has two cosponsors.
On March 2, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a legislative hearing on H.R.
830 and received testimony from the following witnesses: The
Honorable Neil M. Barofsky, Special Inspector General for the
Troubled Asset Relief Program (SIGTARP); The Honorable David
Stevens, Assistant Secretary for Housing and Commissioner of
the Federal Housing Administration (FHA); The Honorable
Mercedes Marquez, Assistant Secretary, Community Planning and
Development, HUD; Mr. Matthew J. Scire, Director, Financial
Markets and Community Investment, U.S. Government
Accountability Office (GAO); and Ms. Katie Jones, Analyst in
Housing Policy, Congressional Research Service, Library of
Congress.
On March 3, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by a record
vote of 33 yeas and 22 nays. The Committee Report was filed on
March 7, 2011 (H. Rept. 112-25).
On March 9, 2011, the House adopted H. Res. 150, providing
for the consideration of H.R. 830 under a structured rule, by a
record vote of 240 yeas and 180 nays. On March 10, 2011, the
House considered H.R. 830 and passed the bill, with amendments,
by a record vote of 256 yeas and 171 nays.
EMERGENCY MORTGAGE RELIEF PROGRAM TERMINATION ACT
(H.R. 836)
Summary
H.R. 836, the Emergency Mortgage Relief Program Termination
Act, would rescind all unobligated balances made available for
the Emergency Mortgage Relief Program under section 1496(a) of
the Dodd-Frank Wall Street Reform and Consumer Protection Act
(P.L. 111-203) (the Dodd-Frank Act), which was signed into law
on July 21, 2010, and terminate the program. The bill also
calls for a study by the HUD to identify best practices for how
existing mortgage assistance programs can be applied to
veterans, active duty military personnel, and their relatives.
Legislative History
On February 28, 2011, H.R. 836 was introduced by
Representative Jeb Hensarling and was referred to the Committee
on Financial Services. The bill has two cosponsors.
On March 2, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a legislative hearing on H.R.
830 and received testimony from the following witnesses: The
Honorable Neil M. Barofsky, SIGTARP; The Honorable David
Stevens, Assistant Secretary for Housing and Commissioner of
the FHA; The Honorable Mercedes Marquez, Assistant Secretary,
Community Planning and Development, HUD; Mr. Matthew J. Scire,
Director, Financial Markets and Community Investment, GAO; and
Ms. Katie Jones, Analyst in Housing Policy, Congressional
Research Service, Library of Congress.
On March 3, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by a record
vote of 33 yeas and 22 nays. The Committee Report was filed on
March 7, 2011 (H. Rept. 112-26).
On March 9, 2011, the House adopted H. Res. 151, providing
for the consideration of H.R. 836 under a structured rule, by
voice vote. On March 11, 2011, the House considered H.R. 836
and passed the bill, with amendments, by a record vote of 242
yeas and 177 nays.
THE HAMP TERMINATION ACT OF 2011
(H.R. 839)
Summary
H.R. 839, the HAMP Termination Act, would terminate the
authority of the Treasury Department to provide any new
assistance to homeowners under the Home Affordable Modification
Program (HAMP) authorized under Title I of the Emergency
Economic Stabilization Act (12 U.S.C. 5230), while preserving
any assistance already provided to HAMP participants on a
permanent or trial basis. The bill also provides for a study by
the Treasury Department to identify best practices for how
existing mortgage assistance programs can be applied to
veterans, active duty military personnel, and their relatives.
Legislative History
On February 28, 2011, H.R. 839 was introduced by
Representative Patrick McHenry and was referred to the
Committee on Financial Services. The bill has eight cosponsors.
On March 2, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a legislative hearing on H.R.
830 and received testimony from the following witnesses: The
Honorable Neil M. Barofsky, SIGTARP; The Honorable David
Stevens, Assistant Secretary for Housing and Commissioner of
the FHA; The Honorable Mercedes Marquez, Assistant Secretary,
Community Planning and Development, HUD; Mr. Matthew J. Scire,
Director, Financial Markets and Community Investment, GAO; and
Ms. Katie Jones, Analyst in Housing Policy, Congressional
Research Service, Library of Congress.
On March 9, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by a record
vote of 32 yeas and 23 nays. The Committee Report (Part 1) was
filed on March 11, 2011 (H. Rept. 112-31) and Part 2 of the
Committee Report was filed on March 14, 2011 (H. Rept. 112-31
Part 2).
On March 16, 2011, the House adopted H. Res. 170, providing
for the consideration of H.R. 839 under a structured rule, by a
record vote of 241 yeas and 180 nays. On March 29, 2011, the
House considered H.R. 839 and passed the bill, with amendments,
by a record vote of 252 yeas and 170 nays, with 1 member voting
present.
NSP TERMINATION ACT
(H.R. 861)
Summary
H.R. 861, the NSP Termination Act, would rescind all
unobligated balances made available for the Neighborhood
Stabilization Program (NSP) authorized by the Dodd-Frank Act
and terminate the program.
Legislative History
On March 1, 2011, H.R. 861 was introduced by Representative
Gary Miller and was referred to the Committee on Financial
Services. The bill has four cosponsors.
On March 2, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a legislative hearing on H.R.
861 and received testimony from the following witnesses: The
Honorable Neil M. Barofsky, SIGTARP; The Honorable David
Stevens, Assistant Secretary for Housing and Commissioner of
the FHA; The Honorable Mercedes Marquez, Assistant Secretary,
Community Planning and Development, HUD; Mr. Matthew J. Scire,
Director, Financial Markets and Community Investment, GAO; and
Ms. Katie Jones, Analyst in Housing Policy, Congressional
Research Service, Library of Congress.
On March 3, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by a record
vote of 31 yeas and 24 nays. The Committee Report (Part 1) was
filed on March 11, 2011 (H. Rept. 112-32), and Part 2 of the
Committee Report was filed on March 14, 2011 (H. Rept. 112-32
Part 2).
On March 16, 2011, the House adopted H. Res. 170, providing
for the consideration of H.R. 861 under a structured rule, by a
record vote of 241 yeas and 180 nays. On March 16, 2011, the
House considered H.R. 861 and passed the bill, with amendments,
by a record vote of 242 yeas and 182 nays.
UNITED STATES MARSHALS SERVICE 225TH ANNIVERSARY COMMEMORATIVE COIN ACT
(H.R. 886)
Summary
H.R. 886, the United States Marshals Service 225th
Anniversary Commemorative Coin Act, would direct the Treasury
Secretary in 2015 to mint and make available for sale no more
than 100,000 $5 gold coins, 500,000 $1 silver coins, and
750,000 half-dollar ``clad'' coins in commemoration of the
225th anniversary of the establishment of the United States
Marshals Service. Surcharges on coin sales would be paid to the
National Center for Missing and Exploited Children, the Federal
Law Enforcement Officers Association Foundation, and the
National Law Enforcement Officers Memorial Fund after it raises
funds from non-government sources equal to or greater than the
surcharges collected. The obverse design of the coin would bear
an image of the United States Marshals Service Star. The
reverse would bear a design emblematic of the sacrifice and
service of the men and women of the United States Marshals
Service who lost their lives in the line of duty and would
include the Marshals Service motto ``Justice, Integrity,
Service.''
Legislative History
On March 2, 2011, H.R. 886 was introduced by Representative
Steve Womack and referred to the Committee on Financial
Services. The bill had 301 cosponsors.
On December 15, 2011, the House agreed to a motion to
suspend the rules and pass H.R. 886 by a record vote of 412
yeas, 1 nay and 1 present.
On March 15, 2012 the Senate considered H.R. 886 and passed
the bill, with an amendment, by Unanimous Consent.
On March 21, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 886 with the Senate amendment by a
record vote of 409 yeas, 2 nays and 2 present.
On April 2, 2012, H.R. 886 was signed by the President and
became Public Law No. 112-104.
UNITED STATES COVERED BONDS ACT OF 2011
(H.R. 940)
Summary
H.R. 940, the United States Covered Bonds Act of 2011,
would establish the statutory framework necessary to start a
covered bonds market in the United States. The bill would
provide legal certainty for covered bonds in three ways:
specifying the categories of eligible issuers and eligible
cover-pool assets; mandating an asset coverage test for cover
pools and audits by an independent asset monitor; and
clarifying applicable securities and tax matters. H.R. 940
would create a separate resolution process for covered bond
programs. The bill would require the Secretary of the Treasury,
in consultation with applicable prudential regulators, to serve
as the primary regulator of the covered bonds market.
Legislative History
On March 8, 2011, H.R. 940 was introduced by Subcommittee
on Capital Markets and Government Sponsored Enterprises
Chairman Scott Garrett and referred to the Committee on
Financial Services and the Committee on Ways and Means. The
bill has one cosponsor.
On March 11, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing on H.R. 940
entitled ``Legislative Proposals to Create a Covered Bond
Market in the United States.'' The Subcommittee received
testimony from the following witnesses: Mr. Scott Stengel,
Partner, King & Spalding LLP, on behalf of the U.S. Covered
Bond Council; Mr. Bert Ely, Ely & Company, Inc.; Mr. Tim Skeet,
Amias Berman & Co., on behalf of the International Capital
Market Association; Mr. Ralph Daloisio, Managing Director,
Natixis, on behalf of the American Securitization Forum; and
Mr. Stephen G. Andrews, President and Chief Executive Officer,
Bank of Alameda.
On May 3, 2011 and May 4, 2011, the Subcommittee on Capital
Markets and Government Sponsored Enterprises met in open
session and ordered the bill, as amended, favorably reported to
the Committee by voice vote.
On June 22, 2011, the Committee met in open session and
ordered H.R. 940, as amended, favorably reported to the House
by a record vote of 44 yeas, 7 nays and 3 present. The
Committee Report was filed on March 5, 2012 (H. Rept. 112-407,
Part 1).
BURDENSOME DATA COLLECTION RELIEF ACT
(H.R. 1062)
Summary
H.R. 1062, the Burdensome Data Collection Relief Act,
repeals Section 953(b) of the Dodd-Frank Act, which requires
all publicly traded companies to calculate and disclose for
each filing with the SEC the median annual total compensation
of all employees of the company excluding the Chief Executive
Officer (CEO), disclose the annual total compensation of the
CEO, and calculate and disclose a ratio comparing those two
numbers.
Legislative History
H.R. 1062 was introduced by Representative Nan Hayworth on
March 14, 2011 and referred to the Committee on Financial
Services. The bill has seven cosponsors.
On March 16, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing on a draft
version of H.R. 1062 entitled ``Legislative Proposals to
Promote Job Creation, Capital Formation, and Market
Certainty.'' The Subcommittee received testimony from the
following witnesses: Mr. Kenneth A. Bertsch, President and CEO,
Society of Corporate Secretaries & Governance Professionals;
Mr. Tom Deutsch, Executive Director, American Securitization
Forum; Ms. Pam Hendrickson, Chief Operating Officer, The
Riverside Company; Mr. David Weild, Senior Advisor, Grant
Thornton, LLP; Mr. Luke Zubrod, Director, Chatham Financial on
behalf of the Coalition for Derivatives End-Users; and Mr.
Damon Silvers, Policy Director and Special Counsel, AFL-CIO.
On May 3, 2011 and May 4, 2011, the Subcommittee on Capital
Markets and Government Sponsored Enterprises met in open
session and ordered the bill favorably reported to the
Committee by a record vote of 20 yeas and 12 nays.
On June 22, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by a record
vote of 33 yeas and 21 nays. The Committee Report was filed on
July 12, 2011 (H. Rept. 112-142).
SMALL COMPANY CAPITAL FORMATION ACT OF 2011
(H.R. 1070)
Summary
H.R. 1070, the Small Company Capital Formation Act, raises
the offering threshold for companies exempted from registration
with the SEC under Regulation A from $5 million--the threshold
set in the early 1990s--to $50 million. Raising the offering
threshold helps small companies gain access to capital markets
without the costs and delays associated with the full-scale
securities registration process. H.R. 1070 provides the SEC
with the authority to increase the threshold and requires the
SEC to re-examine the threshold every two years and report to
Congress on its decisions regarding adjustment of the
threshold.
Legislative History
H.R. 1070 was introduced by Representative David Schweikert
on March 14, 2011 and referred to the Committee on Financial
Services. The bill has seventeen cosponsors.
On March 16, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing on a draft
version of H.R. 1070 entitled ``Legislative Proposals to
Promote Job Creation, Capital Formation, and Market
Certainty.'' The Subcommittee received testimony from the
following witnesses: Mr. Kenneth A. Bertsch, President and CEO,
Society of Corporate Secretaries & Governance Professionals;
Mr. Tom Deutsch, Executive Director, American Securitization
Forum; Ms. Pam Hendrickson, Chief Operating Officer, The
Riverside Company; Mr. David Weild, Senior Advisor, Grant
Thornton, LLP; Mr. Luke Zubrod, Director, Chatham Financial on
behalf of the Coalition for Derivatives End-Users; and Mr.
Damon Silvers, Policy Director and Special Counsel, AFL-CIO.
On May 3, 2011 and May 4, 2011, the Subcommittee on Capital
Markets and Government Sponsored Enterprises met in open
session and ordered the bill, as amended, favorably reported to
the Committee by voice vote.
On June 22, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on September 14,
2011 (H. Rept. 112-206).
On November 2, 2011, the House agreed to a motion to
suspend the rules and pass H.R. 1070, as amended, by a record
vote of 421 yeas and 1 nay.
On March 7, 2012, the House adopted H. Res. 572, which
provided that H.R. 3606 be amended by the Rules Committee Print
112-17, the Jumpstart Our Business Startups Act, which largely
reflects the text of H.R. 3606 and H.R. 2167 as reported by the
Committee on Financial Services, H.R. 1070, H.R. 2930, H.R.
2940 as passed the House, and H.R. 4088 as introduced.
On March 8, 2012, the House considered H.R. 3606 and passed
the bill, with amendments, by a record vote of 390 yeas and 23
nays.
On March 22, 2012, the Senate considered H.R. 3606 and
passed the bill, with amendments, by a record vote of 73 yeas
and 26 nays.
On March 27, 2012, the House considered the Senate
amendment to H.R. 3606 under suspension of the rules, and
agreed to the amendment by a record vote of 380 yeas and 41
nays.
On April 5, 2012, H.R. 3606 was signed by the President and
became Public Law No. 112-106.
SMALL BUSINESS CAPITAL ACCESS AND JOB PRESERVATION ACT
(H.R. 1082)
Summary
H.R. 1082, the Small Business Capital Access and Job
Preservation Act, exempts advisers to private equity funds that
have not borrowed and do not have outstanding a principal
amount in excess of twice their funded capital commitments from
SEC registration requirements as mandated by Title IV of the
Dodd-Frank Act.
Legislative History
H.R. 1082 was introduced by Representative Robert Hurt on
March 15, 2011 and was referred to the Committee on Financial
Services. The bill has nine cosponsors.
On March 16, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing on H.R. 1082
entitled ``Legislative Proposals to Promote Job Creation,
Capital Formation, and Market Certainty.'' The Subcommittee
received testimony from the following witnesses: Mr. Kenneth A.
Bertsch, President and CEO, Society of Corporate Secretaries &
Governance Professionals; Mr. Tom Deutsch, Executive Director,
American Securitization Forum; Ms. Pam Hendrickson, Chief
Operating Officer, The Riverside Company; Mr. David Weild,
Senior Advisor, Grant Thornton, LLP; Mr. Luke Zubrod, Director,
Chatham Financial on behalf of the Coalition for Derivatives
End-Users; and Mr. Damon Silvers, Policy Director and Special
Counsel, AFL-CIO.
On May 3, 2011 and May 4, 2011, the Subcommittee on Capital
Markets and Government Sponsored Enterprises met in open
session and ordered the bill favorably reported to the
Committee by a record vote of 19 yeas and 13 nays.
On June 22, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on July 12, 2011
(H. Rept. 112-143).
RESPONSIBLE CONSUMER FINANCIAL PROTECTION REGULATIONS ACT OF 2011
(H.R. 1121)
Summary
H.R. 1121, the Responsible Consumer Financial Protection
Regulations Act of 2011, would amend Section 1011 of the Dodd-
Frank Act, by replacing the Director of the Consumer Financial
Protection Bureau (CFPB) with a five-person Commission. The
CFPB Commission would be empowered to prescribe regulations and
issue orders to implement laws within the CFPB's jurisdiction.
One of the five seats on the CFPB Commission would be filled by
the Vice Chairman for Supervision of the Federal Reserve
System. Each of the four remaining members of the Commission
would be appointed by the President; no more than two of those
four Commissioners may be from the same political party.
Although the Chair of the Commission would fulfill the
executive and administrative functions of the CFPB, the Chair's
discretion would be bounded by policies set by the whole
Commission.
Legislative History
On March 16, 2011, H.R. 1121 was introduced by Chairman
Spencer Bachus and referred to the Committee on Financial
Services. The bill has 35 cosponsors.
On March 16, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing on
H.R. 1121 entitled ``Oversight of the Consumer Financial
Protection Bureau.'' Ms. Elizabeth Warren, Special Advisor to
the Secretary of the Treasury for the CFPB, Department of the
Treasury, testified.
On April 6, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing on
H.R. 1121 entitled ``Legislative Proposals to Improve the
Structure of the Consumer Financial Protection Bureau.'' The
Subcommittee received testimony from the following witnesses:
Ms. Leslie R. Andersen, President and Chief Executive Officer,
Bank of Bennington on behalf of the American Bankers
Association; Ms. Lynette W. Smith, President and Chief
Executive Officer, Washington Gas Light FCU on behalf of the
National Association of Federal Credit Unions; Mr. Jess Sharp,
Executive Director, Center for Capital Markets Competitiveness,
U.S. Chamber of Commerce; Mr. Hilary Shelton, Director, NAACP
Washington Bureau and Senior VP for Advocacy and Policy, NAACP;
Mr. Noah H. Wilcox, President and Chief Executive Officer,
Grand Rapids State Bank on behalf of the Independent Community
Bankers of America; Mr. Rod Staatz, President and Chief
Executive Officer, SECU of Maryland on behalf of the Credit
Union National Association; Mr. Richard Hunt, President,
Consumer Bankers Association; and Prof. Adam J. Levitin,
Georgetown University Law Center.
On May 4, 2011, the Subcommittee on Financial Institutions
and Consumer Credit met in open session and ordered the bill
favorably reported to the Committee by a record vote of 13 yeas
and 7 nays.
On May 12, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by a record vote of 33 yeas and 24 nays. The Committee Report
(Part 1) was filed on June 16, 2011 (H. Rept. 112-107), and
Part 2 of the Committee Report was filed on July 19, 2011 (H.
Rept. 112-107, Part 2).
On July 21, 2011, the House considered the Committee Print
of H.R. 1315, which included the text of H.R. 1121 and H.R.
1667, and passed the bill, with amendments, by a record vote of
241 yeas and 173 nays.
STOP TRADING ON CONGRESSIONAL KNOWLEDGE ACT
(H.R. 1148)
Summary
H.R. 1148, the Stop Trading on Congressional Knowledge Act,
would amend the Securities Exchange Act of 1934 and the
Commodity Exchange Act to direct both the SEC and the Commodity
Futures Trading Commission (CFTC) to prohibit purchase or sale
of either securities, security-based swaps, swap, or
commodities for future delivery by a person in possession of
material nonpublic information regarding pending or prospective
legislative action if the information was obtained: (1)
knowingly from a Member or employee of Congress, (2) by reason
of being a Member or employee of Congress, or (3) from other
federal employees and derived from their federal employment.
The bill would also amend the Code of Official Conduct of the
Rules of the House of Representatives to prohibit any Member,
officer, or employee of the House from disclosing material
nonpublic information relating to any pending or prospective
legislative action relating to any publicly-traded company or
to any commodity if such person has reason to believe that the
information will be used to buy or sell the securities of that
publicly traded company or that commodity for future delivery
based on such information. H.R. 1148 would also require the
House Committee on Agriculture and the Committee on Financial
Services to hold hearings on the implementation by the CFTC and
the SEC of such financial transaction prohibitions. The bill
would also amend the Ethics in Government Act of 1978 to
require formal disclosure of certain securities and commodities
futures transactions to either the Clerk of the House of
Representatives or the Secretary of the Senate. The bill would
also amend the Lobbying Disclosure Act of 1995 to subject to
its registration, reporting, and disclosure requirements, as
well as requirements for identification of clients and covered
legislative and executive officials, all political intelligence
activities, contacts, firms, and consultants. H.R. 1148 would
also require the Comptroller General to include political
intelligence activities, contacts, firms, and consultants in
its annual compliance audits and reports.
Legislative History
On March 17, 2011, H.R. 1148 was introduced by
Representative Timothy Walz and referred to the Committee on
Financial Services. The bill has 286 cosponsors.
On December 6, 2011, the Committee held a legislative
hearing on H.R. 1148 entitled ``H.R. 1148, the Stop Trading on
Congressional Knowledge Act.'' The Committee received testimony
from the following witnesses: Representative Walter Jones (R-
NC); Representative Louise Slaughter (D-NY); Representative Tim
Walz (D-MN); Mr. Robert Khuzami, Director, Division of
Enforcement, SEC; Mr. Jack Maskell, Legislative Attorney,
Congressional Research Service; Professor Donna Nagy, Indiana
University Maurer School of Law; and Mr. Robert Walker, Of
Counsel, Wiley Rein LLP.
On February 9, 2012, the House agreed to a motion to
suspend the rules and pass S. 2038, STOCK Act, as amended, by a
record vote of 417 yeas to 2 nays.
On April 4, 2012, S. 2038 was signed by the President and
became Public Law 112-105.
EQUITY IN GOVERNMENT COMPENSATION ACT OF 2011
(H.R. 1221)
Summary
H.R. 1221, the Equity in Government Compensation Act of
2011, would suspend the current compensation packages for all
of Fannie Mae and Freddie Mac's senior executives and establish
a compensation system for the Government Sponsored Enterprises'
(GSEs') executive officers consistent with the compensation and
benefits provided under the Financial Institution Reform,
Recovery, and Enforcement Act of 1989 (FIRREA). The bill
requires the GSEs' regulator--the Federal Housing Finance
Agency (FHFA)--to adjust the salaries of Fannie Mae's and
Freddie Mac's nonsupervisory employees to conform to the
General Schedule, a statutory pay system that pays employees
based on surveys of non-federal pay for similar work. H.R. 1221
expresses the sense of the Congress that the 2010 and 2011 pay
packages for Fannie Mae's and Freddie Mac's senior executives
were excessive and that the money should be returned to the
Treasury to reduce the national debt.
Legislative History
On March 29, 2011, H.R. 1221 was introduced by Chairman
Spencer Bachus and referred to the Committee on Financial
Services and the Committee on Oversight and Government Reform.
The bill has 19 cosponsors.
On March 31, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing on H.R. 1221
entitled ``Legislative Hearing on Immediate Steps to Protect
Taxpayers from the Ongoing Bailout of Fannie Mae and Freddie
Mac.'' The Subcommittee received testimony from the following
witnesses: Mr. Edward DeMarco, Acting Director of the FHFA, The
Honorable John H. Dalton, President of the Housing Policy
Council, Financial Services Roundtable; Mr. Christopher
Papagianis, Managing Director, Economics21; Mr. Edward Pinto,
Resident Fellow, American Enterprise Institute; Mr. Bob
Nielsen, Chairman of the Board, National Association of Home
Builders; and Mr. Ron Phipps, President, National Association
of Realtors.
On April 5, 2011 and April 6, 2011, the Subcommittee on
Capital Markets and Government Sponsored Enterprises met in
open session and ordered the bill, as amended, favorably
reported to the Committee by a record vote of 27 yeas and 6
nays.
On November 15, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by a record vote of 52 yeas and 4 nays. The Committee Report
was filed on January 17, 2012 (H. Rept. 112-366, Part 1).
FLOOD INSURANCE REFORM ACT OF 2011
(H.R. 1309)
Summary
H.R. 1309, the Flood Insurance Reform Act of 2011, would
reauthorize the National Flood Insurance Program (NFIP) through
September 30, 2016, and amend the National Flood Insurance Act
to ensure the immediate and near-term fiscal and administrative
health of the NFIP. The bill would also ensure the NFIP's
continued viability by encouraging broader participation in the
program, increasing financial accountability, eliminating
unnecessary rate subsidies, and updating the program to meet
the needs of the 21st century. The key provisions of H.R. 1309
include: (1) a five-year reauthorization of the NFIP; (2) a
three-year delay in the mandatory purchase requirement for
certain properties in newly designated Special Flood Hazard
Areas (SFHAs); (3) a phase-in of full-risk, actuarial rates for
areas newly designated as Special Flood Hazard; (4) a
reinstatement of the Technical Mapping Advisory Council; and
(5) an emphasis on greater private sector participation in
providing flood insurance coverage.
Legislative History
On April 1, 2011, H.R. 1309 was introduced by Subcommittee
on Insurance, Housing and Community Opportunity Chairman Judy
Biggert and referred to the Committee on Financial Services.
The bill has nineteen cosponsors.
On March 11, 2011 and April 1, 2011, the Subcommittee on
Insurance, Housing and Community Opportunity held legislative
hearings entitled ``Legislative Proposals to Reform the
National Flood Insurance Program,'' on a discussion draft of
H.R. 1309. On March 11, 2011, the Subcommittee received written
testimony from Craig Fugate, Administrator, Federal Emergency
Management Agency (FEMA) and the following witnesses testified:
Orice Williams Brown, Managing Director, GAO; Sally McConkey,
Vice Chair, Association of State Flood Plain Managers and
Manager, Coordinated Hazard Assessment and Mapping Program,
Illinois State Water Survey; Sandra G. Parrillo, Chair,
National Association of Mutual Insurance Companies and
President and CEO of Providence Mutual; Spencer Houldin, Chair,
Government Affairs Committee, Independent Insurance Agents and
Brokers of America and President, Ericson Insurance Services;
Steve Ellis, Vice President, Taxpayers for Common Sense, on
behalf of the SmarterSafer Coalition; Donna Jallick, Vice
President, Harleysville Insurance; Barry Rutenberg, First Vice
Chairman, National Association of Home Builders; Frank Nutter,
President, Reinsurance Association of America; Terry Sullivan,
Sullivan Realty, Inc., on behalf of The National Association of
Realtors; and Maurice Veissi, President-Elect, National
Association of Realtors, and Principal, Veissi & Associates. On
April, 1, 2011, The Honorable Craig Fugate, Administrator,
FEMA, was the only witness.
On April 6, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity met in open session and ordered the
bill, as amended, favorably reported to the Committee by voice
vote.
On May 12, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by a recorded vote of 54 yeas and 0 nays.
On July 12, 2011, the House considered H.R. 1309 and passed
the bill, with amendments, by a record vote of 406 yeas and 22
nays.
CONSUMER FINANCIAL PROTECTION SAFETY AND SOUNDNESS IMPROVEMENT ACT OF
2011
(H.R. 1315)
Summary
H.R. 1315, the Consumer Financial Protection Safety and
Soundness Improvement Act of 2011, would amend Section 1023 of
the Dodd-Frank Act to streamline the Financial Stability
Oversight Council's (FSOC's) review and oversight of CFPB rules
and regulations that may undermine the safety and soundness of
U.S. financial institutions. The bill would make three major
changes: (1) it would lower the threshold required to set aside
regulations from a two-thirds vote of the FSOC's voting
membership to a simple majority, excluding the CFPB Director;
(2) it would clarify that the FSOC must set aside any CFPB
regulation that is inconsistent with the safe and sound
operations of U.S. financial institutions; and (3) it would
eliminate the 45-day time limit for the FSOC to review and vote
on regulations.
Legislative History
On April 1, 2011, H.R. 1315 was introduced by
Representative Sean Duffy and was referred to the Committee on
Financial Services. The bill has 4 cosponsors.
On March 16, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing on
a draft of H.R. 1315 entitled ``Oversight of the Consumer
Financial Protection Bureau.'' Ms. Elizabeth Warren, Special
Advisor to the Secretary of the Treasury for the CFPB,
Department of the Treasury, testified.
On April 6, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing on
H.R. 1315 entitled ``Legislative Proposals to Improve the
Structure of the Consumer Financial Protection Bureau.'' The
Subcommittee received testimony from the following witnesses:
Ms. Leslie R. Andersen, President and Chief Executive Officer,
Bank of Bennington on behalf of the American Bankers
Association; Ms. Lynette W. Smith, President and Chief
Executive Officer, Washington Gas Light FCU on behalf of the
National Association of Federal Credit Unions; Mr. Jess Sharp,
Executive Director, Center for Capital Markets Competitiveness,
U.S. Chamber of Commerce; Mr. Hilary Shelton, Director, NAACP
Washington Bureau and Senior VP for Advocacy and Policy, NAACP;
Mr. Noah H. Wilcox, President and Chief Executive Officer,
Grand Rapids State Bank on behalf of the Independent Community
Bankers of America; Mr. Rod Staatz, President and Chief
Executive Officer, SECU of Maryland on behalf of the Credit
Union National Association; Mr. Richard Hunt, President,
Consumer Bankers Association; and Prof. Adam J. Levitin,
Georgetown University Law Center.
On May 4, 2011, the Subcommittee on Financial Institutions
and Consumer Credit met in open session and ordered the bill,
as amended, favorably reported to the Committee by a record
vote of 13 yeas and 9 nays.
On May 12, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by a record vote of 35 yeas and 22 nays. The Committee Report
(Part 1) was filed on May 25, 2011 (H. Rept. 112-89), and Part
2 of the Committee Report was filed on July 19, 2011 (H. Rept.
112-89, Part 2).
On July 21, 2011, the House considered H.R. 1315 and passed
the bill, with amendments, by a record vote of 241 yeas and 173
nays.
ASSET-BACKED MARKET STABILIZATION ACT OF 2011
(H.R. 1539)
Summary
H.R. 1539, the Asset-Backed Market Stabilization Act of
2011, would repeal Section 939G of the Dodd-Frank Act, thereby
reinstating SEC Rule 436(g). Under the Securities Act, the
written consent of an ``expert''--which includes any person who
prepared or certified a portion of a statement or prospectus
filed with the SEC--must be included in the filing, and the
consenting expert is subject to liability for misstatements in
the prepared or certified portion of the registration statement
or prospectus. Rule 436(g) exempted ``nationally recognized
statistical rating organizations'' (NRSROs) from being
considered ``experts'' if their ratings were included in a
registration statement or prospectus. Rule 436(g)'s repeal in
the Dodd-Frank Act prompted NRSROs to refuse to consent to the
inclusion of their ratings in statements and prospectuses,
causing dislocation in the asset-backed securities market.
Legislative History
H.R. 1539 was introduced by Representative Steve Stivers on
April 14, 2011 and was referred to the Committee on Financial
Services. The bill has three cosponsors.
On March 16, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a legislative hearing on
a draft version of H.R. 1539 entitled ``Legislative Proposals
to Promote Job Creation, Capital Formation, and Market
Certainty.'' The Subcommittee received testimony from the
following witnesses: Mr. Kenneth A. Bertsch, President and CEO,
Society of Corporate Secretaries & Governance Professionals;
Mr. Tom Deutsch, Executive Director, American Securitization
Forum; Ms. Pam Hendrickson, Chief Operating Officer, The
Riverside Company; Mr. David Weild, Senior Advisor, Grant
Thornton, LLP; Mr. Luke Zubrod, Director, Chatham Financial on
behalf of the Coalition for Derivatives End-Users; and Mr.
Damon Silvers, Policy Director and Special Counsel, AFL-CIO.
On May 3, 2011 and May 4, 2011, the Subcommittee on Capital
Markets and Government Sponsored Enterprises met in open
session and ordered the bill favorably reported to the
Committee by a record vote of 18 yeas and 14 nays.
On July 20, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by 31 yeas and
19 nays. The Committee Report was filed on August 12, 2011 (H.
Rept. 112-196).
TO FACILITATE IMPLEMENTATION OF TITLE VII OF THE DODD-FRANK WALL STREET
REFORM AND CONSUMER PROTECTION ACT, PROMOTE REGULATORY COORDINATION,
AND AVOID MARKET DISRUPTION
(H.R. 1573)
Summary
H.R. 1573, a bill to facilitate implementation of Title VII
of the Dodd-Frank Act, promote regulatory coordination, and
avoid market disruption, would extend the statutory deadline
for certain provisions of Title VII of the Dodd-Frank Act from
July 2011 to September 30, 2012. The legislation provides
additional time for the CFTC and the SEC to write and vet the
rules to implement the derivatives title, conduct cost-benefit
analysis, consider the interdependence and cumulative impact of
the rules, and determine the appropriate sequencing of
effective dates. The legislation realigns the United States
with the G20 agreement to move to reporting and central
clearing by December 2012, reducing the likelihood of
divergence in international regulatory regimes and mitigating
negative consequences to the competitive position of U.S.
markets and market participants. H.R. 1573 maintains the
current timeframe for the SEC and CFTC to issue final rules
defining key terms such as swap, swap dealer, security-based
swap dealer, major swap participant, major security-based swap
participant and eligible contract participant, and for
requiring record retention and regulatory reporting for swaps.
The bill provides for interim authority to designate swap data
repositories for the purposes of receiving the data. H.R. 1573
requires the SEC and CFTC to hold public hearings to take
testimony and comment on proposed rules before they are made
final, and factor those comments into cost-benefit analysis and
the timing of effective dates. Finally, H.R. 1573 provides the
SEC and CFTC authority to exempt certain persons from
registration and/or other regulatory requirements if they are
subject to comparable supervision by another regulatory
authority, if there are information-sharing arrangements in
effect between the Commissions and that regulatory authority,
and if it is in the public interest.
Legislative History
On April 15, 2011, H.R. 1573 was introduced by
Representatives Lucas, Bachus, Conaway and Garrett, and was
referred to the House Financial Services and House Agriculture
Committees. The bill has twenty-two cosponsors.
On February 15, 2011, the Committee held an oversight
hearing on the implementation of Title VII of the Dodd-Frank
Act entitled, ``Assessing the Regulatory, Economic and Market
Implications of the Dodd-Frank Derivatives Title.'' Witnesses
included: The Honorable Mary Schapiro, Chairman, SEC; The
Honorable Gary Gensler, Chairman, CFTC; The Honorable Daniel K.
Tarullo, Member, Federal Reserve Board of Governors; Mr. Craig
Reiners, Director of Commodity Risk Management, MillerCoors, on
behalf of the Coalition for Derivatives End-Users; Mr. Donald
F. Donahue, Chairman & Chief Executive Officer, The Depository
Trust & Clearing Corporation (DTCC); Mr. Terry Duffy, Executive
Chairman, CME Group; Mr. Don Thompson, Managing Director and
Associate General Counsel, JPMorgan Chase, on behalf of the
Securities Industry and Financial Markets Association (SIFMA);
Mr. Jamie Cawley, Chief Executive Officer, Javelin, on behalf
of the Swaps and Derivatives Market Association (SDMA); and Mr.
Christopher Giancarlo, Executive Vice President, Corporate
Development, GFI Group Inc.
On March 16, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a legislative hearing on
related derivatives legislation where Mr. Luke Zubrod,
Director, Chatham Financial, testified on behalf of the
Coalition for Derivatives End-Users on the need to extend title
VII's statutory deadlines for rulemaking to allow regulators
sufficient time to incorporate recommendations, craft
thoughtful rules, and conduct adequate cost-benefit analyses.
On May 24, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by a record vote of 30 yeas and 24 nays.
CONSUMER RENTAL PURCHASE AGREEMENT ACT
(H.R. 1588)
Summary
H.R. 1588, the Consumer Rental Purchase Agreement Act,
would define rental purchase transactions, create uniform
national disclosure standards for rent-to-own businesses, and
prohibit certain practices. The bill would define a number of
terms pertaining to rental purchase transactions, including a
``rental-purchase agreement,'' which excludes credit sales and
consumer leases (as defined by the Truth in Lending Act). H.R.
1588 would also (1) require rent-to-own merchants to include
certain disclosures about the transaction in their rental-
purchase agreements; (2) specify the rights of consumers to
acquire ownership of the property and request a statement of
their account; (3) specify provisions that are prohibited from
appearing in rental-purchase agreements; (4) include standards
governing renegotiations and extensions of rental-purchase
agreements; (5) mandate disclosures for both point-of-rental
and advertising; (6) permit consumers to take civil action
against any merchant that fails to comply with the requirements
in the bill; (7) require the Federal Reserve Board to prescribe
mandated regulations; (8) establish that the bill's
requirements would be enforced by the Federal Trade Commission
and that enforcement actions could also be brought by any state
attorney general; and (9) establish criminal liability for
those merchants that willfully and knowingly give false or
inaccurate information or fail to make any required disclosures
under the bill. The consumer protections contained in H.R. 1588
would generally exceed those contained in existing state laws,
but H.R. 1588 would not preempt stronger state laws. The bill
would, however, preclude states from treating rental-purchase
transactions as credit sales and from requiring the disclosure
of an annual percentage rate.
Legislative History
On April 15, 2011, H.R. 1588 was introduced by
Representative Francisco ``Quico'' Canseco and was referred to
the Committee on Financial Services. The bill has 112
cosponsors.
On July 26, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing on
H.R. 1588 entitled ``Examining Rental Purchase Agreements and
the Potential Role for Federal Regulation.'' The Subcommittee
received testimony from the following witnesses: Charles
Harwood, Deputy Director, Bureau of Consumer Protection,
Federal Trade Commission; Jim Hawkins, Assistant Professor of
Law, University of Houston Law Center; Roy Soto, Owner, Premier
Rental Purchase; Vivian Saunders, rent-to-own customer from
Lewiston Woodville, NC; and Margot Freeman Saunders, Of
Counsel, National Consumer Law Center.
On November 17, 2011, the Subcommittee on Financial
Institutions and Consumer Credit met in open session and
ordered the bill, as amended, favorably reported to the
Committee by a voice vote.
On May 31, 2012, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by a vote of 33 yeas and 21 nays.
BUREAU OF CONSUMER FINANCIAL PROTECTION TRANSFER CLARIFICATION ACT
(H.R. 1667)
Summary
H.R. 1667, the Bureau of Consumer Financial Protection
Transfer Clarification Act, would amend Section 1062 of the
Dodd-Frank Act. The Dodd-Frank Act shifts consumer protection
functions to the CFPB from the Federal Reserve, the Federal
Deposit Insurance Corporation (FDIC), the National Credit Union
Administration (NCUA), the Office of the Comptroller of the
Currency (OCC), the Office of Thrift Supervision (OTS) and the
HUD. H.R. 1667 would delay any further transfer of powers until
the later of the following: (1) July 21, 2011; or (2) the date
on which the Director of the CFPB is confirmed by the Senate.
Legislative History
On May 2, 2011, H.R. 1667 was introduced by Subcommittee on
Financial Institutions and Consumer Credit Chairman Shelley
Moore Capito and was referred to the Committee on Financial
Services. The bill has 14 cosponsors.
On March 16, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing on
a draft of H.R. 1667 entitled ``Oversight of the Consumer
Financial Protection Bureau.'' Ms. Elizabeth Warren, Special
Advisor to the Secretary of the Treasury for the CFPB,
Department of the Treasury, testified.
On April 6, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing on
H.R. 1667 entitled ``Legislative Proposals to Improve the
Structure of the Consumer Financial Protection Bureau.'' The
Subcommittee received testimony from the following witnesses:
Ms. Leslie R. Andersen, President and Chief Executive Officer,
Bank of Bennington on behalf of the American Bankers
Association; Ms. Lynette W. Smith, President and Chief
Executive Officer, Washington Gas Light FCU on behalf of the
National Association of Federal Credit Unions; Mr. Jess Sharp,
Executive Director, Center for Capital Markets Competitiveness,
U.S. Chamber of Commerce; Mr. Hilary Shelton, Director, NAACP
Washington Bureau and Senior VP for Advocacy and Policy, NAACP;
Mr. Noah H. Wilcox, President and Chief Executive Officer,
Grand Rapids State Bank on behalf of the Independent Community
Bankers of America; Mr. Rod Staatz, President and Chief
Executive Officer, SECU of Maryland on behalf of the Credit
Union National Association; Mr. Richard Hunt, President,
Consumer Bankers Association; and Prof. Adam J. Levitin,
Georgetown University Law Center.
On May 4, 2011, the Subcommittee on Financial Institutions
and Consumer Credit met in open session and ordered the bill
favorably reported to the Committee by a record vote of 13 yeas
and 8 nays.
On May 12, 2011, the Committee held a markup and ordered
the bill favorably reported to the House by a record vote of 32
yeas and 26 nays.
The Committee Report, Part 1, was filed on May 27, 2011 (H.
Rept. 112-93), and Part 2 was filed on July 19, 2011 (H. Rept.
112-93, Part 2).
On July 14, 2011, the Rules Committee issued a Committee
Print of H.R. 1315, which included the text of H.R. 1121 and
H.R. 1667.
On July 21, 2011, the House considered H.R. 1315 and passed
the bill, with amendments, by a record vote of 241 yeas and 173
nays.
CJ'S HOME PROTECTION ACT OF 2011
(H.R. 1751)
Summary
H.R. 1751, CJ's Home Protection Act of 2011, would amend
the Manufactured Housing Construction and Safety Standards Act
of 1974 by requiring the installation of National Oceanic &
Atmospheric Administration (NOAA) weather radios in all
manufactured homes made or sold in the United States. The
installation standard for these weather radios--which would
broadcast severe weather warnings and civil emergency messages
(including tornado and flood warnings), AMBER alerts for child
abductions, and chemical spill notifications--would be
established by the Secretary of HUD upon recommendation of the
Manufactured Housing Consensus Committee, an advisory committee
which was created by the 1974 Act.
Legislative History
On May 5, 2011, H.R. 1751 was introduced by Chairman
Spencer Bachus and was referred to the Committee on Financial
Services. The bill has four cosponsors.
On July 20, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by voice vote.
The Committee Report was filed on August 1, 2011 (H. Rept. 112-
191).
LENA HORNE RECOGNITION ACT
(H.R. 1815)
Summary
H.R. 1815, the Lena Horne Recognition Act, would direct the
Speaker of the House and President Pro Tempore of the Senate to
make arrangements for the posthumous presentation, on behalf of
Congress, of a gold medal in commemoration of Lena Horne and in
recognition of her achievements and contributions to American
culture and the civil rights movement.
Legislative History
On May 10, 2011, H.R. 1815 was introduced by Representative
Alcee Hastings and referred to the Committee on Financial
Services. The bill had 308 cosponsors.
On April 17, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 1815 by a record vote of 410 yeas and 2
nays.
SWAPS BAILOUT PREVENTION ACT
(H.R. 1838)
Summary
H.R. 1838, the Swaps Bailout Prevention Act, would amend
Section 716 of the Dodd-Frank Act by allowing bona fide hedging
and traditional risk mitigation activities to take place within
a covered depository institution. Section 716 prohibits
``federal assistance''--defined as ``the use of any advances
from any Federal Reserve credit facility or discount window
[or] Federal Deposit Insurance Corporation insurance or
guarantees''--to ``swaps entities,'' which include swap dealers
and major swap participants, securities and futures exchanges,
swap-execution facilities, and clearing organizations. This
provision, known as the swap desk ``push out'' or ``spin off''
provision, forces financial institutions that have swap desks
to move them into an affiliate to preserve their access to
Federal Reserve credit facilities and federal deposit
insurance. Although the provision allows banks to continue
dealing in swaps related to interest rates, foreign currency,
and swaps permitted under the National Bank Act, the provision
prohibits them from engaging in swaps related to commodities,
equities, and credit.
Legislative History
On May 11, 2011, H.R. 1838 was introduced by Representative
Nan Hayworth and referred to the Committee on Financial
Services and the Committee on Agriculture. The bill has no
cosponsors.
On October 14, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a hearing on H.R.
1838 entitled ``Legislative Proposals to Bring Certainty to the
Over-the-Counter Derivatives Market.'' The Subcommittee
received testimony from the following witnesses: Mr. Keith
Bailey, Managing Director, Fixed Income, Currencies and
Commodities, Barclays Capital, on behalf of the Institute of
International Bankers; Mr. Shawn Bernardo, Senior Managing
Director, Tullett Prebon, on behalf of the Wholesale Market
Brokers' Association Americas; Ms. Brenda Boultwood, Chief Risk
Officer and Senior Vice President, CE Risk Management Division
Office, Constellation Energy, on behalf of the Coalition of
Derivatives End-Users; Mr. James Cawley, CEO, Javelin Capital
Markets LLC; Mr. Kent Mason, Davis & Harman LLP, on behalf of
the American Benefits Council and the Committee on the
Investment of Employee Benefit Assets; and Mr. Conrad Voldstad,
Chief Executive Officer, International Swaps and Derivatives
Association.
On November 15, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises met in open session and
ordered H.R. 1838, as amended, favorably reported to the
Committee by a record vote of 21 yeas and 12 nays.
On February 16, 2012, the Committee met in open session and
ordered H.R. 1838, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on May 11, 2012
(H. Rept. 112-476, Part 1).
TO AMEND THE SECURITIES LAWS TO ESTABLISH CERTAIN THRESHOLDS FOR
SHAREHOLDER REGISTRATION, AND FOR OTHER PURPOSES
(H.R. 1965)
Summary
H.R. 1965, a bill to amend the securities laws to establish
certain thresholds for shareholder registration, and for other
purposes, would raise the threshold for mandatory registration
under the Securities Exchange Act of 1934 (the Exchange Act)
from 500 shareholders to 2,000 shareholders for banks and bank
holding companies. The bill would also modify the threshold for
deregistration under Sections 12(g) and 15(d) of the Exchange
Act for a bank or a bank holding company from 300 to 1,200
shareholders.
Legislative History
On May 24, 2011, H.R. 1965 was introduced by Representative
James Himes and referred to the Committee on Financial
Services. The bill has 18 cosponsors.
On September 21, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a hearing on H.R.
1965 entitled ``Legislative Proposals to Facilitate Small
Business Capital Formation and Job Creation.'' The Subcommittee
received testimony from the following witnesses: Ms. Meredith
Cross, Director, Division of Corporation Finance, SEC; Mr.
Vincent Molinari, Founder and Chief Executive Officer, GATE
Technologies LLC; Mr. Barry E. Silbert, Founder and Chief
Executive Officer, SecondMarket, Inc.; Mr. Matthew H. Williams,
Chairman and President, Gothenburg State Bank, on behalf of the
American Bankers Association; Mr. William D. Waddill, Senior
Vice President and Chief Financial Officer, OncoMed
Pharmaceuticals, Inc., on behalf of the Biotechnology Industry
Organization; Mr. A. Heath Abshure, Commissioner, Arkansas
Securities Department on behalf of the North American
Securities Administrators; and Ms. Dana Mauriello, President,
ProFounder.
On October 5, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises met in open session and
ordered the bill, as amended, favorably reported to the
Committee by voice vote.
On October 26, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote.
On November 2, 2011, the House agreed to a motion to
suspend the rules and pass H.R. 1965, as amended, by a record
vote of 420 yeas and 2 nays.
TO INSTRUCT THE INSPECTOR GENERAL OF THE FEDERAL DEPOSIT INSURANCE
CORPORATION TO STUDY THE IMPACT OF INSURED DEPOSITORY INSTITUTION
FAILURES, AND FOR OTHER PURPOSES.
(H.R. 2056)
Summary
H.R. 2056, a bill to instruct the Inspector General of the
Federal Deposit Insurance Corporation (FDIC) to study the
impact of insured depository institution failures, would
require the FDIC's Inspector General to study issues raised by
bank failures in states that have had more than ten such
failures since 2008. The study would cover the following
subjects: (1) the use and effect of shared loss agreements; (2)
the significance of paper losses; (3) the success of FDIC field
examiners in implementing FDIC guidelines regarding workouts of
commercial real estate; (4) the application and impact of
consent orders and cease and desist orders; (5) the impact of
FDIC policies on raising capital; and (6) the FDIC's
involvement in private equity investment. The bill would also
instruct the GAO to study: (1) the causes of bank failures in
states with 10 or more failures since 2008; (2) the procyclical
impact of fair value accounting standards; (3) the causes and
potential solutions for the cycle of loan write downs, raising
capital, and failures; and (4) the impact of bank failures upon
the community.
Legislative History
On May 31, 2011, H.R. 2056 was introduced by Representative
Lynn Westmoreland and was referred to the Committee on
Financial Services. The bill has 13 cosponsors.
On July 8, 2011, the Subcommittee on Financial Institutions
and Consumer Credit held a hearing on H.R. 2056 entitled
``Legislative Proposals Regarding Bank Examination Practices.''
The Subcommittee received testimony from the following
witnesses: Mr. James H. McKillop, President and CEO,
Independent Bankers Bank of Florida on behalf of the
Independent Community Bankers of America; Mr. Michael Whalen,
President and CEO, Heart of America Group; and Professor Simon
Johnson, The Ronald A. Kurtz, Professor of Entrepreneurship at
the Massachusetts Institute of Technology's Sloan School of
Management; Mr. George French, Deputy Director, Division of
Risk Management Supervision of the FDIC; and Ms. Jennifer
Kelly, Senior Deputy Comptroller for Mid-Size/Community Bank
Supervision of the OCC.
On July 20, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on July 26, 2011
(H. Rept. 112-182).
On July 28, 2011, the House considered H.R. 2056 under
suspension of the rules, and passed the bill, as amended, by
voice vote.
On November 17, 2011, the Senate considered H.R. 2056 and
passed the bill, with amendments, by Unanimous Consent.
On December 20, 2011, the House considered the Senate
amendments to H.R. 2056 under suspension of the rules, and
agreed to the amendments by Unanimous Consent.
On January 3, 2012, H.R. 2056 was signed by the President
and became Public Law No. 112-088.
SECURING AMERICAN JOBS THROUGH EXPORTS ACT OF 2011
(H.R. 2072)
Summary
H.R. 2072, the Export-Import Bank Reauthorization Act of
2012, (as amended) reauthorized the Bank through September 30,
2014. The bill raised the Bank's lending limit to $120 billion
in 2012, $130 billion in 2013 and $140 billion in 2014. H.R.
2072 ties increases in the exposure limit to the Bank
maintaining default rates below 2%, the Bank submitting a
business plan to Congress and GAO, and responding to GAO
recommendations on the Bank's risk management. The bill directs
the Secretary of the Treasury to enter into multilateral
negotiations for the purpose of (1) reducing and then
eliminating government export subsidies for aircraft, and (2)
ultimately ending all government export subsidies. The other
major provisions of H.R. 2072 include provisions to: require
the Bank to report not less than quarterly on default rates and
implement a corrective plan with monthly reporting if the
default rate exceeds 2%; prohibit the Bank from entering into
agreement where it is subordinate to all other creditors;
require the Bank to submit a multiyear business plan that
identifies, among other items, potential for increased risk
from its operations; require GAO to review, report, and make
recommendations on the Bank's risk management; require the Bank
to categorize the reason for making each loan or long-term
guarantee; notice in the Federal Register and provide for a
comment period for all transactions over $100 million; require
that all companies that do business with the Bank certify that
they do not do business with Iran, and other items.
Legislative History
On June 1, 2011, H.R. 2072 was introduced by Representative
Gary Miller and referred to the Committee on Financial
Services. The bill has nine cosponsors.
On May 24, 2011, the Subcommittee on International Monetary
Policy and Trade held a hearing entitled ``Legislative
Proposals on Securing American Jobs Through Exports: Export-
Import Bank Reauthorization.'' The Subcommittee received
testimony from the following witnesses: Mr. Fred Hochberg,
Chairman and President, the Export-Import Bank of the United
States; Ms. Donna K. Alexander, Chief Executive Officer,
Bankers' Association for Finance and Trade--International
Financial Services Association; Ms. Thea Lee, Deputy Chief of
Staff, American Federation of Labor and Congress of Industrial
Organizations; Mr. Osvaldo Luis Gratacos, Inspector General for
the Export-Import Bank; Mr. John Hardy, President, Coalition
for Employment Through Exports; and Dr. Matthew Slaughter,
Associate Dean for the MBA Program, Signals Company Professor
of Management, Tuck School of Business, Dartmouth College.
On June 2, 2011, the Subcommittee on International Monetary
Policy and Trade met in open session and ordered the bill, as
amended, favorably reported to the Committee by a voice vote.
On June 22, 2011, the Committee met in open session an
ordered the bill, as amended, favorably reported to the House
by a voice vote. The Committee Report was filed on September 8,
2011 (H. Rept. 112-201).
On May 9, 2012, the House considered H.R. 2072 and passed
the bill, with amendments, by a record vote of 330 yeas and 93
nays.
On May 15, 2012, the Senate considered H.R. 2072 and passed
the bill by a record vote of 78 yeas and 20 nays.
On May 30, 2012, H.R. 2072 was signed by the President and
became Public Law No. 112-122.
PRIVATE COMPANY FLEXIBILITY AND GROWTH ACT
(H.R. 2167)
Summary
H.R. 2167, the Private Company Flexibility and Growth Act,
would raise the threshold for mandatory registration under the
Securities Exchange Act of 1934 (the Exchange Act) from 500
shareholders to 1,000 shareholders for all companies;
shareholders who received securities under employee
compensation plans would not count towards the threshold.
Section 12(g) of the Exchange Act requires issuers to
register equity securities with the SEC if those securities are
held by 500 or more holders of record and the company has total
assets of more than $10 million. After a company registers
under 12(g), it must comply with the Exchange Act's reporting
requirements, which include filing annual reports on Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K,
and proxy statements on Schedule 14A. The shareholder threshold
has not been adjusted since it was adopted in 1964 and has
become an impediment to capital formation for small startup
companies. These companies often remain private to maintain
greater flexibility and control, and to avoid the increased
costs associated with becoming a public company. To attract
employees and conserve capital for research and development,
startup companies often award their employees stock options in
place of higher salaries. If the company succeeds and those
options vest, the holders of those options become equity
holders, and they are counted against the registration
threshold. Because private companies are taking longer to go
public than they have in the past, employees' stock options are
increasingly vesting before the companies go public. Small
private companies may thus find themselves subject to the same
reporting requirements as listed companies.
Legislative History
On June 14, 2011, H.R. 2167 was introduced by
Representative David Schweikert and referred to the Committee
on Financial Services. The bill has 27 cosponsors.
On September 21, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a hearing on H.R.
2167 entitled ``Legislative Proposals to Facilitate Small
Business Capital Formation and Job Creation.'' The Subcommittee
received testimony from the following witnesses: Ms. Meredith
Cross, Director, Division of Corporation Finance, SEC; Mr.
Vincent Molinari, Founder and Chief Executive Officer, GATE
Technologies LLC; Mr. Barry E. Silbert, Founder and Chief
Executive Officer, SecondMarket, Inc.; Mr. Matthew H. Williams,
Chairman and President, Gothenburg State Bank, on behalf of the
American Bankers Association; Mr. William D. Waddill, Senior
Vice President and Chief Financial Officer, OncoMed
Pharmaceuticals, Inc., on behalf of the Biotechnology Industry
Organization; Mr. A. Heath Abshure, Commissioner, Arkansas
Securities Department on behalf of the North American
Securities Administrators; and Ms. Dana Mauriello, President,
ProFounder.
On October 5, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises met in open session and
ordered H.R. 2167, as amended, favorably reported to the
Committee by voice vote.
On October 26, 2011, the Committee met in open session and
ordered H.R. 2167, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on December 12,
2011 (H. Rept. 112-327).
On March 7, 2012, the House adopted H. Res. 572, which
provided that H.R. 3606 would be amended by the Rules Committee
Print 112-17, the Jumpstart Our Business Startups Act, which
largely reflects the text of H.R. 3606 and H.R. 2167 as
reported by the Committee on Financial Services, H.R. 1070,
H.R. 2930, H.R. 2940 as passed the House, and H.R. 4088 as
introduced.
On March 8, 2012, the House considered H.R. 3606 and passed
the bill, with amendments, by a record vote of 390 yeas and 23
nays.
On March 22, 2012, the Senate considered H.R. 3606 and
passed the bill, with amendments, by a record vote of 73 yeas
and 26 nays.
On March 27, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 3606 with the Senate amendment by a
record vote of 380 yeas and 41 nays.
On April 5, 2012, H.R. 3606 was signed by the President and
became Public Law No. 112-106.
SEC REGULATORY ACCOUNTABILITY ACT
(H.R. 2308)
Summary
On June 23, 2011, Capital Markets and Government Sponsored
Enterprises Subcommittee Chairman Garrett introduced H.R. 2308,
the SEC Regulatory Accountability Act. H.R. 2308 requires the
SEC to generally follow the principles set forth in Executive
Order No. 13,563, which directs non-independent executive
branch agencies to adopt regulations only if the benefits of
the regulations justify their costs; to tailor regulations to
impose the least burden on society; and to develop plans for
retrospectively analyzing rules to identify those that are
outmoded, ineffective, insufficient, or excessively burdensome
and to modify, streamline, expand, or repeal them accordingly.
H.R. 2308 also requires, in general, the SEC to identify a
problem and assess its significance before the SEC issues a
rule in order to determine whether regulation is warranted. The
bill requires the SEC's Chief Economist to conduct a cost-
benefit analysis of proposed regulations, and it requires that
the benefits of proposed regulations justify their costs before
the SEC can issue them. Further, the bill requires the SEC to
identify and assess alternatives to regulations that it
considers, and to explain why a regulation that it issues meets
regulatory objectives more effectively than the alternatives.
The bill requires the SEC to ensure that its regulations be
accessible, consistent, written in plain language, and easy to
understand, and to measure and seek to improve the results of
regulatory requirements.
Legislative History
On June 23, 2011, H.R. 2308 was introduced by Subcommittee
on Capital Markets and Government Sponsored Enterprises
Chairman Scott Garrett and referred to the Committee on
Financial Services. The bill has 19 cosponsors.
On September 15, 2011, the Committee held a legislative
hearing on H.R. 2308 entitled ``Fixing the Watchdog:
Legislative Proposals to Improve and Enhance the Securities and
Exchange Commission.'' The Committee received testimony from
the following witnesses: The Honorable Mary Schapiro, Chairman,
SEC; Mr. Shubh Saumya, Partner and Managing Director, Boston
Consulting Group; The Honorable Paul Atkins, Visiting Scholar,
American Enterprise Institute, and Former Commissioner, SEC;
Mr. Stephen D. Crimmins, Partner, K&L Gates LLP, and Former
Deputy Chief Litigation Counsel, Division of Enforcement, SEC;
Mr. Jonathan G. ``Jack'' Katz, Former Secretary, SEC, on behalf
of the U.S. Chamber of Commerce; The Honorable Harvey Pitt,
Chief Executive Officer, Kalorama Partners, LLC, and Former
Chairman, SEC; and Mr. J.W. Verret, Assistant Professor of Law,
George Mason University School of Law.
On November 15, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises met in open session and
ordered the bill, as amended, favorably reported to the
Committee by a record vote of 19 yeas and 15 nays.
On February 16, 2012, the Committee met in open session and
ordered H.R. 2308, as amended, reported to the House by a
record vote of 30 yeas and 26 nays. The Committee Report was
filed on April 25, 2012 (H. Rept. 112-453).
On July 24, 2012, the House adopted H. Res. 738, which
provided that H.R. 4078 be amended by the Rules Committee Print
112-29, which included the text of H.R. 2308.
On July 26, 2012, the House considered H.R. 4078 and passed
the bill, with amendments, by a record vote of 245 yeas and 172
nays.
RESPA HOME WARRANTY CLARIFICATION ACT OF 2011
(H.R. 2446)
Summary
H.R. 2446, the RESPA Home Warranty Clarification Act of
2011, would amend current law to explicitly state that home
warranties are permissible settlement services under the Real
Estate Settlement Procedures Act of 1974. The bill would also
require that homeowners receive a specific written notice about
the payment arrangement for any individual selling,
advertising, or performing a homeowner warranty inspection for
the repair or replacement of home system components or
appliances.
Legislative History
On July 7, 2011, H.R. 2446 was introduced by Subcommittee
on Insurance, Housing and Community Opportunity Chairman Judy
Biggert and was referred to the Committee on Financial
Services. The bill has 40 cosponsors.
On July 13, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a legislative hearing entitled
``Mortgage Origination: The Impact of Recent Changes on
Homeowners and Businesses.'' This hearing examined H.R. 2446
and other issues concerning the application of mortgage
origination laws and regulations that may affect consumers and
mortgage industry participants. The Subcommittee received
testimony from the following witnesses: the Honorable Sandra
Braunstein, Director of Division of Consumer and Community
Affairs for the Board of Governors of the Federal Reserve
System; the Honorable Teresa Payne, HUD's Associate Deputy
Assistant Secretary for Regulatory Affairs; Ms. Kelly Cochran,
Deputy Assistant Director for Regulations at the Treasury
Department's CFPB; Mr. James Park, Executive Director of the
Appraisal Subcommittee for the Federal Financial Institutions
Examination Council; Mr. William Shear, Director of Financial
Markets and Community Investment, GAO; Ms. Anne Norton,
Maryland Deputy Commissioner of Financial Regulation; Mr. Steve
Brown, Executive Vice President at Crye-Leike; Mr. Henry
Cunningham, Jr., President of Cunningham & Company; Mr. Tim
Wilson, President of Affiliated Businesses for Long & Foster
Companies; Ms. Anne Anastasi, President of Genesis Abstract and
President of the American Land Title Association; Mr. Mike
Anderson, President of Essential Mortgage; Mr. Marc Savitt,
President of The Mortgage Center; Ms. Sara Stephens, President-
Elect of the Appraisal Institute; Mr. Don Kelly, Executive
Director of the Real Estate Valuation Advocacy Association; Ms.
Janis Bowdler, Director of the Wealth-Building Policy Project,
National Council of La Raza; and Mr. Ira Rheingold, Executive
Director, National Association of Consumer Advocates.
On December 8, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity met in open session and ordered H.R.
2446 favorably reported to the Committee by voice vote.
On March 27, 2012, the Committee met in open session and
ordered H.R. 2446, as amended, favorably reported to the House
by voice vote.
TO GRANT THE CONGRESSIONAL GOLD MEDAL TO THE MONTFORD POINT MARINES
(H.R. 2447)
Summary
H.R. 2447, a bill to grant the congressional gold medal to
the Montford Point Marines, would authorize the striking and
award of a Congressional Gold Medal, collectively, to the
nation's first African-American Marine unit, and the striking
and sale of bronze duplicates of the medal.
Legislative History
On July 7, 2011, H.R. 2447 was introduced by Representative
Corrine Brown and referred to the Committee on Financial
Services. The bill has 308 cosponsors.
On October 25, 2011, the House considered H.R. 2447 under
suspension of the rules and passed the bill by a record vote of
422 yeas and 0 nays.
On November 9, 2011, the Senate considered H.R. 2447 and
passed the bill by Unanimous Consent.
On November 23, 2011, H.R. 2447 was signed by the President
and became Public Law No. 112-059.
MARK TWAIN COMMEMORATIVE COIN ACT
(H.R. 2453)
Summary
H.R. 2453, the Mark Twain Commemorative Coin Act, directs
the Treasury Secretary in 2016 to mint and make available for
sale no more than 100,000 $5 gold coins, and 350,000 $1 silver
coins in commemoration of Mark Twain. Surcharges on coin sales
would be paid to the Mark Twain House; the University of
California, Berkeley; Elmira College, New York; and the Mark
Twain Boyhood Home and Museum in Hannibal, Missouri, after it
raises funds from non-government sources equal to or greater
than the surcharges collected. The design of the coins is to be
emblematic of the life and legacy of Mark Twain.
Legislative History
On July 7, 2011, H.R. 2453 was introduced by Representative
Blaine Luetkemeyer and referred to the Committee on Financial
Services. The bill had 298 cosponsors.
On April 18, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 2453 by a record vote of 408 yeas, 4
nays and 2 present.
NATIONAL BASEBALL HALL OF FAME COMMEMORATIVE COIN ACT
(H.R. 2527)
Summary
H.R. 2527, the National Baseball Hall of Fame Commemorative
Coin Act, would direct the Treasury Secretary in 2015 to issue
no more than 50,000 $5 gold coins, 400,000 $1 silver coins, and
750,000 half-dollar ``clad'' coins in recognition of the
National Baseball Hall of Fame in Cooperstown, NY. The Senate
amended and passed H.R. 2527 to change the year from 2015 to
2014 in which the Treasury Secretary is directed to issue the
coins. Surcharges on coin sales would be paid to the National
Baseball Hall of Fame to finance its operations, after it
raises funds from non-government sources equal to or greater
than the surcharges collected. The obverse design of the coin
would be chosen through a juried, compensated competition, and
would represent the game of baseball and its place in American
sports and American life. The reverse would depict a baseball
as used by Major League Baseball. The bill contains a ``Sense
of Congress'' calling for the coins to be minted with a convex
reverse and a concave obverse. The program would be operated at
no cost to the taxpayer and would be budget-neutral.
Legislative History
On July 14, 2011, H.R. 2527 was introduced by
Representative Richard Hanna and referred to the Committee on
Financial Services. The bill has 296 cosponsors.
On July 20, 2011, the Committee met in open session and
ordered H.R. 2527, as amended, favorably reported to the House
by voice vote.
On October 26, 2011, the House considered H.R. 2527 under
suspension of the rules, and passed the bill, as amended, by a
record vote of 416 yeas and 3 nays.
On July 12, 2012, the Senate passed H.R. 2527 with an
amendment by unanimous consent.
On July 19, 2012, the House agreed to the Senate amendment
without objection.
On August 3, 2012, H.R. 2527 was signed by the President
and became Public Law No. 112-152.
SWAP EXECUTION FACILITY CLARIFICATION ACT
(H.R. 2586)
Summary
H.R. 2586, the Swap Execution Facility Clarification Act,
would direct the CFTC and the SEC to promulgate swap execution
facility (SEF) rules that would effectuate Congress's intent
that SEFs serve as an alternative to exchanges and provide an
execution facility for illiquid or thinly-traded swaps.
The Dodd-Frank Act requires that cleared swaps be executed
either on exchanges or on SEFs regulated by either the CFTC or
the SEC. The drafters of the Dodd-Frank Act intended for SEFs
to serve as an alternative to exchanges by providing an
execution facility for illiquid or thinly-traded swaps. The
CFTC's and SEC's proposed rules for SEFs, however, fail to
provide the flexibility necessary to execute illiquid or
thinly-traded swaps, and market participants have pointed out
that the proposed rules are overly prescriptive and would
inhibit the execution of swap trades. H.R. 2586 directs the
CFTC and SEC to promulgate SEF rules that would effectuate
Congress's intent that SEFs serve as an alternative to
exchanges and provide an execution facility for illiquid or
thinly-traded swaps. H.R. 2586 prohibits the CFTC and the SEC
from requiring a SEF to have a minimum number of participants
receive bids or offers. The bill would prohibit the CFTC and
SEC from requiring SEFs to display or delay bids or offers for
a specific time period, which would permit the immediate
execution of matched trades. The bill prohibits the CFTC or SEC
from writing rules that allow only voice-based and hybrid
trading models for the execution of block trades, thereby
permitting market participants to continue using any means of
interstate commerce to conduct swap transactions. Finally, the
bill would prohibit the CFTC and SEC from requiring SEFs that
operate multiple trading systems to force those systems to
interact with each other to execute swap transactions. The bill
would also allow market participants to use any means of
interstate commerce to execute swap transactions.
Legislative History
On July 19, 2011, H.R. 2586 was introduced by Subcommittee
on Capital Markets and Government Sponsored Enterprises
Chairman Scott Garrett and referred to the Committee on
Financial Services and the Committee on Agriculture. The bill
has eight cosponsors.
On October 14, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a hearing on H.R.
2586 entitled ``Legislative Proposals to Bring Certainty to the
Over-the-Counter Derivatives Market.'' The Subcommittee
received testimony from the following witnesses: Mr. Keith
Bailey, Managing Director, Fixed Income, Currencies and
Commodities, Barclays Capital, on behalf of the Institute of
International Bankers; Mr. Shawn Bernardo, Senior Managing
Director, Tullett Prebon, on behalf of the Wholesale Market
Brokers' Association Americas; Ms. Brenda Boultwood, Chief Risk
Officer and Senior Vice President, CE Risk Management Division
Office, Constellation Energy, on behalf of the Coalition of
Derivatives End-Users; Mr. James Cawley, CEO, Javelin Capital
Markets LLC; Mr. Kent Mason, Davis & Harman LLP, on behalf of
the American Benefits Council and the Committee on the
Investment of Employee Benefit Assets; and Mr. Conrad Voldstad,
Chief Executive Officer, International Swaps and Derivatives
Association.
On November 15, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises met in open session and
ordered the bill favorably reported to the Committee by voice
vote.
On November 30, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on December 23,
2011 (H. Rept. 112-345, Part 1).
BUSINESS RISK MITIGATION AND PRICE STABILIZATION ACT OF 2011
(H.R. 2682)
Summary
H.R. 2682, the Business Risk Mitigation and Price
Stabilization Act of 2011, would exempt end-users from the
margin and capital requirements under Title VII of the Dodd-
Frank Act. The diversion of capital from job creation and the
drag on economic growth resulting from the imposition of margin
requirements on end-users was frequently raised during
Congressional debates on the Dodd-Frank Act. A colloquy among
the chairmen of the four committees with primary jurisdiction
over Title VII clarified congressional intent that the Dodd-
Frank Act did not grant regulators the authority to impose
margin requirements for end-user transactions.
Legislative History
On April 15, 2011, Representative Michael Grimm originally
introduced an end-user exemption bill, H.R. 1610, the Business
Risk Mitigation and Price Stabilization Act of 2011, a draft of
which was discussed at a legislative hearing on March 16, 2011
entitled ``Legislative Proposals to Promote Job Creation,
Capital Formation, and Market Certainty.''
On May 3, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises met in open session and
ordered the bill, as amended, favorably reported to the
Committee by a vote of 19 yeas and 13 nays.
On July 28, 2011, Representative Michael Grimm introduced a
new bill, H.R. 2682, providing for an end user exemption. H.R.
2682 was referred to the Committee on Financial Services. The
bill has seven cosponsors.
On November 30, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by voice vote.
The Committee Report was filed on December 23, 2011 (H. Rept.
112-343, Part 1).
On March 26, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 2682, as amended, by a record vote of
370 yeas and 24 nays.
TO EXEMPT INTER-AFFILIATE SWAPS FROM CERTAIN REGULATORY REQUIREMENTS
PUT IN PLACE BY THE DODD-FRANK WALL STREET REFORM AND CONSUMER
PROTECTION ACT
(H.R. 2779)
Summary
H.R. 2779, a bill to exempt inter-affiliate swaps from
certain regulatory requirements put in place by the Dodd-Frank
Act, would exempt inter-affiliate trades from the margin,
clearing, and reporting requirements of the Dodd-Frank Act.
Inter-affiliate swaps are swaps executed between entities under
common corporate ownership. Inter-affiliate swaps allow
corporate groups with subsidiaries and affiliates to better
manage risk by transferring the risk of its affiliates to a
single affiliate and then executing swaps through that
affiliate. Inter-affiliate swaps do not pose a systemic risk
because they do not create additional counterparty exposures or
increase the interconnectedness between parties outside the
corporate group. Despite the differences between inter-
affiliate swaps and swaps between unrelated parties, the Dodd-
Frank Act did not distinguish between such swaps. H.R. 2779
would reduce the costs of hedging for corporate groups by
exempting inter-affiliate trades from the margin, clearing and
reporting requirements.
Legislative History
On August 1, 2011, H.R. 2779 was introduced by
Representative Steve Stivers and referred to the Committee on
Financial Services and the Committee on Agriculture. The bill
has four cosponsors.
On October 14, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a hearing on H.R.
2779 entitled ``Legislative Proposals to Bring Certainty to the
Over-the-Counter Derivatives Market.'' The Subcommittee
received testimony from the following witnesses: Mr. Keith
Bailey, Managing Director, Fixed Income, Currencies and
Commodities, Barclays Capital, on behalf of the Institute of
International Bankers; Mr. Shawn Bernardo, Senior Managing
Director, Tullett Prebon, on behalf of the Wholesale Market
Brokers' Association Americas; Ms. Brenda Boultwood, Chief Risk
Officer and Senior Vice President, CE Risk Management Division
Office, Constellation Energy, on behalf of the Coalition of
Derivatives End-Users; Mr. James Cawley, CEO, Javelin Capital
Markets LLC; Mr. Kent Mason, Davis & Harman LLP, on behalf of
the American Benefits Council and the Committee on the
Investment of Employee Benefit Assets; and Mr. Conrad Voldstad,
Chief Executive Officer, International Swaps and Derivatives
Association.
On November 15, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises met in open session and
ordered the bill favorably reported to the Committee by a
record vote of 23 yeas, 6 nays and 1 present.
On November 30, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by a record vote of 53 yeas and 0 nays. The Committee Report
was filed on December 23, 2011 (H. Rept. 112-344, Part 1).
On March 26, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 2779, as amended, by a record vote of
357 yeas and 36 nays.
TO AMEND THE SECURITIES EXCHANGE ACT OF 1934 TO CLARIFY PROVISIONS
RELATING TO THE REGULATION OF MUNICIPAL ADVISORS, AND FOR OTHER
PURPOSES
(H.R. 2827)
Summary
On August 26, 2011, Representative Dold introduced H.R.
2827 to clarify Section 975 of the Dodd-Frank Act, which
requires municipal advisors to register with the SEC. H.R.
2827, as passed by the House of Representatives on September
19, 2012, would limit the scope of persons who must register
under Section 975 by exempting individuals who meet any of the
following criteria: (1) those who are not engaged for
compensation; (2) a broker, dealer, or municipal securities
dealer that serves or is seeking to serve as an underwriter or
placement agent, registered investment advisers, registered
swap dealers with respect to advice on a swap transaction, and
banks with respect to deposits, foreign exchange, other
products, or traditional banking or trust activities, and with
respect to the activities exempted for broker-dealers,
investment advisors and swap dealers; (3) insurance companies,
accountants, and attorneys; and (4) elected or appointed
members of state or local governmental bodies.
H.R. 2827 also limits the definition of ``investment
strategy'' to the investment of direct proceeds of municipal
securities offerings that have been identified, or that are or
should be known to be proceeds of such an offering. The bill
clarifies that merely acting as a broker or dealer, or
responding to a request for quotes or investment options,
acting as a custodian, providing generalized investment
information, or providing advice on matters other than the
investment of funds or financial products would not be
considered to be an investment strategy. H.R. 2827 also
clarifies the definition of ``solicitation of a municipal
entity,'' authorizes the Municipal Securities Rulemaking Board
to permit principal transactions in certain circumstances. H.R.
2827 also clarifies the scope of regulators' authority
regarding municipal advisors.
Legislative History
On July 20, 2012, the Subcommittee held a hearing entitled
``The Impact of the Dodd-Frank Act on Municipal Finance.'' This
hearing included a discussion of H.R. 2827. The Subcommittee
received testimony from the following witnesses: The Honorable
Jim Geringer, Chairman, Association of Governing Boards of
Universities and Colleges; Mr. Alan D. Polsky, Chair, Municipal
Securities Rulemaking Board; Dr. Robert Brooks, Professor of
Finance, Wallace D. Malone, Jr. Endowed Chair of Financial
Management, Department of Finance, The University of Alabama;
Mr. Robert Doty, President, AGFS; Mr. Tim Firestine, Chief
Administrative Officer, Montgomery County, MD and President
Elect, Government Finance Officers Association; Mr. Kenneth
Gibbs, President, Municipal Securities Group, Jefferies &
Company, Inc., on behalf of the Securities Industry and
Financial Markets Association; Ms. Christine H. Keck, Director,
Government Relations, Energy Systems Group; Mr. Albert C.
Kelly, Jr., President and Chief Executive Officer, SpiritBank,
and Chairman, American Bankers Association; and Mr. Mike Marz,
Vice Chairman, First Southwest, on behalf of the Bond Dealers
of America.
On August 1, 2012, the Subcommittee met in open session and
ordered the bill, as amended, favorably reported to the full
Committee by a record vote of 21 yeas, 10 nays and 1 present.
On September 12, 2012, the full Committee met in open
session and ordered the bill, as amended, favorably reported to
the House by a recorded vote of 60 yeas and 0 nays.
On September 19, 2012, the House agreed to a motion to
suspend the rules and pass H.R. 2827, as amended, by voice
vote.
ENTREPRENEUR ACCESS TO CAPITAL ACT
(H.R. 2930)
Summary
H.R. 2930, the Entrepreneur Access to Capital Act, would
create a new registration exemption from the Securities Act of
1933 for securities issued through internet platforms, also
known as ``crowdfunding.'' To qualify for this new exemption,
the issuer's offering cannot exceed $1 million, unless the
issuer provides investors with audited financial statements, in
which case the offering amount may not exceed $2 million. An
individual's investment must be equal to or less than the
lesser of $10,000 or 10 percent of the investor's annual
income. By exempting such offerings from registration with the
SEC and preempting state registration laws, H.R. 2930 will
enable entrepreneurs to more easily access capital from
potential investors across the United States to grow their
business and create jobs.
H.R. 2930 would require issuers and intermediaries to
fulfill a number of requirements in order to avail themselves
of this new exemption. These requirements, which include
notices to the SEC about the offerings and parties to the
offerings that will be shared with the States, are designed to
reduce the risk of fraud in these offerings and thereby protect
investors. The legislation also would allow for an unlimited
number of investors to invest via a crowdfunding offering and
preempts state securities registration laws. However, the
legislation does not restrict the States' ability to discover
and stop and prosecute fraudulent offerings.
Legislative History
On September 14, 2011, H.R. 2930 was introduced by
Representative Patrick McHenry and referred to the Committee on
Financial Services. The bill has five cosponsors.
On September 21, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a hearing on H.R.
2930 entitled ``Legislative Proposals to Facilitate Small
Business Capital Formation and Job Creation.'' The Subcommittee
received testimony from the following witnesses: Ms. Meredith
Cross, Director, Division of Corporation Finance, SEC; Mr.
Vincent Molinari, Founder and Chief Executive Officer, GATE
Technologies LLC; Mr. Barry E. Silbert, Founder and Chief
Executive Officer, SecondMarket, Inc.; Mr. Matthew H. Williams,
Chairman and President, Gothenburg State Bank, on behalf of the
American Bankers Association; Mr. William D. Waddill, Senior
Vice President and Chief Financial Officer, OncoMed
Pharmaceuticals, Inc., on behalf of the Biotechnology Industry
Organization; Mr. A. Heath Abshure, Commissioner, Arkansas
Securities Department on behalf of the North American
Securities Administrators; and Ms. Dana Mauriello, President,
ProFounder.
On October 5, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises met in open session and
ordered H.R. 2930 favorably reported to the Committee by a
record vote of 18 yeas and 14 nays.
On October 26, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on October 31,
2011 (H. Rept. 112-262).
On November 3, 2011, the House considered H.R. 2930 and
passed the bill, with amendments, by a record vote of 407 yeas
and 17 nays.
On March 7, 2012, the House adopted H. Res. 572, which
provided that H.R. 3606 be amended by the Rules Committee Print
112-17, the Jumpstart Our Business Startups Act, which largely
reflects the text of H.R. 3606 and H.R. 2167 as reported by the
Committee on Financial Services, H.R. 1070, H.R. 2930, H.R.
2940 as passed the House, and H.R. 4088 as introduced.
On March 8, 2012, the House considered H.R. 3606 and passed
the bill, with amendments, by a record vote of 390 yeas and 23
nays.
On March 22, 2012, the Senate considered H.R. 3606 and
passed the bill, with amendments, by a record vote of 73 yeas
and 26 nays.
On March 27, 2012, the House considered the Senate
amendment to H.R. 3606 under suspension of the rules, and
agreed to the amendment by a record vote of 380 yeas and 41
nays.
On April 5, 2012, H.R. 3606 was signed by the President and
became Public Law No. 112-106.
ACCESS TO CAPITAL FOR JOB CREATORS ACT
(H.R. 2940)
Summary
H.R. 2940, the Access to Capital for Job Creators Act,
would make the exemption under the SEC's Regulation D Rule 506
available to issuers even if the securities are marketed
through a general solicitation or advertising so long as the
purchasers are ``accredited investors.'' The legislation would
allow companies greater access to accredited investors and to
new sources of capital to grow and create jobs, without putting
less sophisticated investors at risk. To ensure that only
accredited investors purchase the securities, H.R. 2940
requires the SEC to write rules on how an issuer would verify
that the purchasers of securities are accredited investors.
The Securities Act of 1933 requires that any offer to sell
securities must either be registered with the SEC or meet an
exemption. Regulation D Rule 506 is an exemption that allows
companies to raise capital as long as they do not market their
securities through general solicitations or advertising. This
prohibition on general solicitation and advertising has been
interpreted to mean that potential investors must have an
existing relationship with the company before they can be
notified that unregistered securities are available for
purchase. Requiring potential investors to have an existing
relationship with the company significantly limits the pool of
potential investors and severely hampers the ability of small
companies to raise capital and create jobs.
Legislative History
On September 15, 2011, H.R. 2940 was introduced by
Representative Kevin McCarthy and referred to the Committee on
Financial Services. The bill has two cosponsors.
On September 21, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a hearing on H.R.
2940 entitled ``Legislative Proposals to Facilitate Small
Business Capital Formation and Job Creation.'' The Subcommittee
received testimony from the following witnesses: Ms. Meredith
Cross, Director, Division of Corporation Finance, SEC; Mr.
Vincent Molinari, Founder and Chief Executive Officer, GATE
Technologies LLC; Mr. Barry E. Silbert, Founder and Chief
Executive Officer, SecondMarket, Inc.; Mr. Matthew H. Williams,
Chairman and President, Gothenburg State Bank, on behalf of the
American Bankers Association; Mr. William D. Waddill, Senior
Vice President and Chief Financial Officer, OncoMed
Pharmaceuticals, Inc., on behalf of the Biotechnology Industry
Organization; Mr. A. Heath Abshure, Commissioner, Arkansas
Securities Department on behalf of the North American
Securities Administrators; and Ms. Dana Mauriello, President,
ProFounder.
On October 5, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises met in open session and
ordered H.R. 2940, as amended, favorably reported to the
Committee by voice vote.
On October 26, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on October 31,
2011 (H. Rept. 112-263).
On November 3, 2011, the House considered H.R. 2940 and
passed the bill by a record vote of 413 yeas and 11 nays.
On March 7, 2012, the House adopted H. Res. 572, which
provided that H.R. 3606 be amended by the Rules Committee Print
112-17, the Jumpstart Our Business Startups Act, which largely
reflects the text of H.R. 3606 and H.R. 2167 as reported by the
Committee on Financial Services, H.R. 1070, H.R. 2930, H.R.
2940 as passed the House, and H.R. 4088 as introduced.
On March 8, 2012, the House considered H.R. 3606 and passed
the bill, with amendments, by a record vote of 390 yeas and 23
nays.
On March 22, 2012, the Senate considered H.R. 3606 and
passed the bill, with amendments, by a record vote of 73 yeas
and 26 nays.
On March 27, 2012, the House considered the Senate
amendment to H.R. 3606 under suspension of the rules, and
agreed to the amendment by a record vote of 380 yeas and 41
nays.
On April 5, 2012, H.R. 3606 was signed by the President and
became Public Law No. 112-106.
RAOUL WALLENBERG CENTENNIAL CELEBRATION ACT
(H.R. 3001)
Summary
H.R. 3001, the Raoul Wallenberg Centennial Celebration Act,
directs the Speaker of the House and President Pro Tempore of
the Senate to make arrangements for the presentation, on behalf
of Congress, of a gold medal in recognition of the achievements
and heroic actions of Raoul Wallenberg during the Holocaust.
Legislative History
On September 21, 2011, H.R. 3001 was introduced by
Representative Gregory Meeks and referred to the Committee on
Financial Services. The bill had 301 cosponsors.
On April 16, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 3001 by a record vote of 377 yeas and 0
nays.
On July 11, 2012, the Senate passed H.R. 3001 by unanimous
consent.
On July 26, 2012, H.R. 3001 was signed by the President and
became Public Law No. 112-148.
TO AMEND THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
TO ADJUST THE DATE ON WHICH CONSOLIDATED ASSETS ARE DETERMINED FOR
PURPOSES OF EXEMPTING CERTAIN INSTRUMENTS OF SMALLER INSTITUTIONS FROM
CAPITAL DEDUCTIONS
(H.R. 3128)
Summary
H.R. 3128, a bill to amend the Dodd-Frank Wall Street
Reform and Consumer Protection Act to Adjust the Date on which
Consolidated Assets are Determined for Purposes of Exempting
Certain Instruments of Smaller Institutions from Capital
Deductions, would amend the Dodd-Frank Act to add March 31,
2010, as a date for calculation of total consolidated assets,
for purposes of exempting certain debt or equity instruments of
smaller financial institutions from capital deduction
requirements.
Legislative History
On October 6, 2011, H.R. 3128 was introduced by
Representative Michael Grimm and was referred to the Committee
on Financial Services. The bill has eight cosponsors.
On May 18, 2012, the Subcommittee on Financial Institutions
and Consumer Credit held a hearing that discussed H.R. 3128,
entitled ``The Impact of the Dodd-Frank Act: Understanding
Heightened Regulatory Capital Requirements.'' The Subcommittee
received testimony from Mr. Daniel McCardell, Senior Vice
President and Head of Regulatory Affairs, The Clearing House,
and Mr. Richard Wald, Chief Regulatory Officer, Emigrant Bank.
On May 31, 2012, the Committee met in open session and
ordered H.R. 3128 favorably reported to the House by a vote of
35 yeas and 15 nays.
MARCH OF DIMES COMMEMORATIVE COIN ACT OF 2011
(H.R. 3187)
Summary
H.R. 3187, the March of Dimes Commemorative Coin Act of
2011, would direct the Treasury Secretary in 2015 to mint and
make available for sale no more than 500,000 $1 silver coins in
recognition and celebration of the 75th anniversary of the
establishment of the March of Dimes Foundation. Surcharges on
coin sales would be paid to the March of Dimes to help finance
research, education, and services aimed at improving the health
of women, infants, and children. The design of the coins will
be emblematic of the mission and programs of the March of Dimes
and its distinguished record of generating Americans' support
to protect our children's health.
Legislative History
On October 13, 2011, H.R. 3187 was introduced by
Representative Robert Dold and referred to the Committee on
Financial Services. The bill has 19 cosponsors.
On August 1, 2012, the House agreed to a motion to suspend
the rules, and passed H.R. 3187 by voice vote. The bill had 305
cosponsors.
On August 2, 2012, H.R. 3187 was received in the Senate.
On December 10, 2012, the Senate agreed to H.R. 3187
without amendment by unanimous consent.
SWAP JURISDICTION CERTAINTY ACT
(H.R. 3283)
Summary
H.R. 3283, the Swap Jurisdiction Certainty Act, would
clarify Congress's intent in limiting the extraterritorial
application of Title VII of the Dodd-Frank Act. H.R. 3283 would
make clear that (1) Title VII's capital requirements do not
apply to non-U.S. swap dealers as long as the non-U.S. swap
dealer's home country is a signatory to the Basel Capital
Accords; (2) swap transactions between swap dealers and their
affiliates are subject only to Title VII's reporting
requirements; and (3) swap transactions between non-U.S. swap
dealers and non-U.S. persons are outside the scope of Title
VII's transaction-level requirements. H.R. 3283 would also
strengthen the anti-evasion authority of the SEC and preserves
the prudential regulators' non-Title VII authority over
security-based swap dealers.
Legislative History
On October 31, 2011, H.R. 3283 was introduced by
Representative James Himes and referred to the Committee on
Financial Services. The bill has 15 cosponsors.
On February 8, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a legislative hearing
on H.R. 3283 entitled ``Limiting the Extraterritorial Impact of
Title VII of the Dodd-Frank Act.'' The Subcommittee received
testimony from the following witnesses: Mr. Chris Allen,
Managing Director, Barclays Capital; Dr. Chris Brummer,
Professor of Law, Georgetown University; Mr. Don Thompson,
Managing Director and Associate General Counsel, JPMorgan Chase
& Co.; and Mr. Luke Zubrod, Director, Chatham Financial.
On March 27, 2012, the Committee met in open session and
ordered H.R. 3283, as amended, favorably reported to the House
by a record vote of 41 yeas and 18 nays. The Committee Report
was filed on May 11, 2012 (H. Rept. 112-477, Part 1).
FALLEN HEROES OF 9/11 ACT
(H.R. 3421)
Summary
H.R. 3421, the Fallen Heroes of 9/11 Act, would authorize
the design and striking of three copies of a Congressional Gold
Medal ``of appropriate design in honor of the men and women who
perished as a result of the terrorist attacks on the United
States on September 11, 2001.'' One medal each will go to be
displayed at the three attack sites: the National September 11
Memorial and Museum in New York City; the Pentagon Memorial at
the Pentagon; and the Flight 93 National Memorial in
Pennsylvania. The medals would be awarded on behalf of Congress
by the Speaker and the President pro tempore of the Senate, and
after the award ceremony, bronze duplicates of the medal would
be available for purchase.
Legislative History
On November 14, 2011, H.R. 3421 was introduced by
Representative Bill Shuster and referred to the Committee on
Financial Services. The bill has 332 cosponsors.
On December 14, 2011, the House considered H.R. 3421 under
suspension of the rules and passed the bill by a record vote of
416 yeas and 0 nays.
On December 15, 2011, the Senate considered H.R. 3421 and
passed the bill by Unanimous Consent.
On December 23, 2011, H.R. 3421 was signed by the President
and became Public Law No. 112-076.
TO AMEND THE ABRAHAM LINCOLN COMMEMORATIVE COIN ACT TO ADJUST HOW
SURCHARGES ARE DISTRIBUTED
(H.R. 3512)
Summary
H.R. 3512, a bill to amend the Abraham Lincoln
Commemorative Coin Act to adjust how surcharges are
distributed, revises Section 7 of the Abraham Lincoln
Commemorative Coin Act to allow distribution of the surcharges
collected on the sales of the coin, which was available for
purchase form the U.S. Mint in 2009. The coin was issued to
commemorate the bicentennial of President Lincoln's birth,
during that bicentennial year. The specified recipient of the
surcharges was the Abraham Lincoln Bicentennial Commission.
Following the bicentennial, the Commission was changed to a
foundation to continue education about President Lincoln over
the longer term, necessitating the change in the name of the
recipient organization. Additionally, Title 31, Section 5134(f)
of the United States Code allows the recipient no more than two
years from the end of the coin program--in this case, until the
end of 2011--to demonstrate to the satisfaction of the
Secretary of the Treasury that it has raised private funds
equal to or greater than the surcharge funds, before
disbursement can take place. The Foundation raised about $2
million in private funds, and thus would not by itself be able
to collect the surcharges even with a name change, so the bill
divides the remaining surcharges equally between the Abraham
Lincoln Presidential Library and Museum, Ford's Theatre, and
President Lincoln's Cottage on the grounds of the Soldier's
Home in Washington, D.C., all of which are associated with the
President and were sites of bicentennial events. These three
organizations will each be responsible for demonstrating it has
raised private matching funds equal to or greater than the
amount it would receive, before funds can be disbursed. The
Lincoln coin program, like all other commemorative coin
programs, operated at no cost to the taxpayer and the
surcharges were collected only from those who purchased the
coin.
Legislative History
On November 29, 2011, H.R. 3512 was introduced by
Representative Jerrold Nadler and was referred to the Committee
on Financial Services. The bill has no cosponsors.
On November 30, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by voice vote.
REOPENING AMERICAN CAPITAL MARKETS TO EMERGING GROWTH COMPANIES ACT OF
2011
(H.R. 3606)
Summary
H.R. 3606, the Reopening American Capital Markets to
Emerging Growth Companies Act of 2011, was introduced to
promote American job creation and further economic growth by
making it easier for more companies to access capital markets
through the creation of a new category of issuer known as an
``Emerging Growth Company'' (EGC). An EGC will lose its status
at the end of five years, or earlier if it reaches $1 billion
in annual gross revenue or becomes a ``large accelerated
filer,'' which is a company with over $700 million in public
float. The law adapts the SEC's scaled regulations for smaller
companies by more slowly phasing in regulations that impose
high costs on issuers, without compromising core investor
protections or disclosures.
Legislative History
H.R. 3606 was introduced by Representative Stephen Fincher
on December 8, 2011, and referred to the Committee on Financial
Services. The bill has 53 cosponsors.
On December 15, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a legislative hearing
on H.R. 3606 entitled ``H.R. 3606, the Reopening American
Capital Markets to Emerging Growth Companies Act of 2011.'' The
Subcommittee received testimony from the following witnesses:
Mr. Joseph Brantuk, Head, U.S. New Listings and IPOs & Vice
President, NASDAQ OMX; Mr. Steven R. LeBlanc, Senior Managing
Director of Private Markets, Teacher Retirement System of
Texas; Ms. Kate Mitchell, Chair, Initial Public Offering Task
Force, Former President of the National Venture Capital
Association and Managing Director & Co-Founder, Scale Venture
Partners; and Mr. Mike Selfridge, Head of Regional Banking,
Silicon Valley Bank.
On February 16, 2012, the Committee met in open session and
ordered H.R. 3606, as amended, favorably reported to the House
by a record vote of 54 yeas and 1 nay. The Committee report was
filed on March 1, 2012 (H. Rept. 112-406) and Part 2 was filed
on March 6, 2012 (H. Rept. 112-406, Part 2).
On March 7, 2012, the House adopted H. Res. 572, which
provided that H.R. 3606 be amended by the Rules Committee Print
112-17, the Jumpstart Our Business Startups Act, which largely
reflects the text of H.R. 3606 and H.R. 2167 as reported by the
Committee on Financial Services, H.R. 1070, H.R. 2930, H.R.
2940 as passed the House, and H.R. 4088 as introduced.
On March 8, 2012, the House considered H.R. 3606 and passed
the bill, with amendments, by a record vote of 390 yeas and 23
nays.
On March 22, 2012, the Senate considered H.R. 3606 and
passed the bill, with amendments, by a record vote of 73 yeas
and 26 nays.
On March 27, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 3606 with the Senate amendment to H.R.
3606 by a record vote of 380 yeas and 41 nays.
On April 5, 2012, H.R. 3606 was signed by the President and
became Public Law No. 112-106.
TO AMEND THE FEDERAL DEPOSIT INSURANCE ACT WITH RESPECT TO INFORMATION
PROVIDED TO THE BUREAU OF CONSUMER FINANCIAL PROTECTION
(H.R. 4014)
Summary
H.R. 4014, a bill to amend the Federal Deposit Insurance
Act with Respect to Information Provided to the Bureau of
Consumer Financial Protection, would amend the Federal Deposit
Insurance Act to make explicit that the production of
privileged materials to the CFPB does not waive privilege as to
third parties in order to provide certainty that the production
of information compelled by the CFPB will not waive either the
attorney-client privilege or work-product immunity. H.R. 4014
would amend the Federal Deposit Insurance Act to make the CFPB
a ``covered agency'' that may share information with another
covered agency or any other federal agency without waiving any
privilege applicable to the information. The bill would
prohibit the submission of information to the CFPB in the
course of its supervisory or regulatory process from being
construed as waiving, destroying, or affecting any privilege
that may be claimed with respect to such information under
federal or state law as to any person or entity other than the
CFPB, another federal banking agency, a state bank supervisor,
or a foreign banking authority.
Legislative History
On February 13, 2012, H.R. 4014 was introduced by
Representative Bill Huizenga and was referred to the Committee
on Financial Services. The bill has four cosponsors.
On February 8, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing
entitled ``Legislative Proposals to Promote Accountability and
Transparency at the Consumer Financial Protection Bureau,''
which examined H.R. 3871, a bill to provide certainty to
financial institutions that a production of information
compelled by the CFPB would not waive attorney-client privilege
or work-product immunity. The Subcommittee received testimony
from the following witnesses: Mr. Michael G. Hunter, Chief
Operating Officer, American Bankers Association; Mr. Andrew J.
Pincus, Partner, Mayer Brown LLP on behalf of the US Chamber of
Commerce; Mr. Chris Stinebert, President and CEO, American
Financial Services Association; and Prof. Arthur E. Wilmarth,
Jr., Professor of Law, Executive Director, Center for Law,
Economics & Finance, George Washington University Law School.
On February 16, 2012, the Committee met in open session and
ordered H.R. 4014 favorably reported to the House by voice
vote. The Committee report was filed on March 20, 2012 (H.
Rept. 112-417).
On March 26, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 4014 by voice vote.
On December 11, 2012, the Senate passed H.R. 4014, without
amendment, by unanimous consent.
On December 20, 2012, H.R. 4014 was signed by the President
and became Public Law No. 112-215.
TO PROVIDE FOR THE AWARD OF A GOLD MEDAL ON BEHALF OF CONGRESS TO JACK
NICKLAUS IN RECOGNITION OF HIS SERVICE TO THE NATION IN PROMOTING
EXCELLENCE AND GOOD SPORTSMANSHIP IN GOLF
(H.R. 4040)
Summary
H.R. 4040, a bill to provide for the award of a gold medal
on behalf of Congress to Jack Nicklaus in recognition of his
service to the Nation in promoting excellence and good
sportsmanship in golf, would direct the Speaker of the House
and President Pro Tempore of the Senate to make arrangements
for the presentation, on behalf of Congress, of a gold medal to
Jack Nicklaus in recognition of his service to the Nation in
promoting excellence and good sportsmanship.
Legislative History
On February 15, 2012, H.R. 4040 was introduced by
Representative Joe Baca and referred to the Committee on
Financial Services. The bill had 341 cosponsors.
On April 16, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 4040 by a record vote of 373 yeas, 4
nays and 1 present.
PRO FOOTBALL HALL OF FAME COMMEMORATIVE COIN ACT
(H.R. 4104)
Summary
H.R. 4104, the Pro Football Hall of Fame Commemorative Coin
Act, would direct the Treasury Secretary in 2016 to mint and
make available for sale no more than 50,000 $5 gold coins,
400,000 $1 silver coins, and 750,000 half-dollar ``clad'' coins
in recognition and celebration of the Pro Football Hall of
Fame. Surcharges on coin sales would be paid to the Pro
Football Hall of Fame to help finance the construction of a new
building and renovation of existing Pro Football Hall of Fame
facilities. The design of the coins will be emblematic of the
game of professional football.
Legislative History
On February 28, 2012, H.R. 4104 was introduced by
Representative James Renacci and referred to the Committee on
Financial Services. The bill has no cosponsor.
On August 1, 2012, the House agreed to a motion to suspend
the rules, and passed H.R. 4104 by voice vote. The bill had 294
cosponsors.
On August 2, 2012, H.R. 4104 was received in the Senate.
SWAP DATA REPOSITORY AND CLEARINGHOUSE INDEMNIFICATION CORRECTION ACT
OF 2012
(H.R. 4235)
Summary
H.R. 4235, the Swap Data Repository and Clearinghouse
Indemnification Correction Act of 2012, would repeal the
indemnification provisions in Sections 725, 728, and 763 of the
Dodd-Frank Act to increase market transparency, facilitate
global regulatory cooperation, and ensure that U.S. regulators
have access to swaps data from foreign data repositories,
derivatives clearing organizations, and regulators.
Legislative History
On March 21, 2012, H.R. 4235 was introduced by
Representative Robert Dold and referred to the Committee on
Financial Services. The bill has 10 cosponsors.
On March 21, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a legislative hearing on
a draft version of the bill entitled ``H.R. ___, the Swap Data
Repository and Clearinghouse Indemnification Correction Act of
2012.'' The Subcommittee received testimony from the following
witnesses: Mr. Ethiopis Tafara, Director, Office of
International Affairs, SEC; Mr. Daniel Berkovitz, General
Counsel, CFTC; and Mr. Donald Donahue, Chief Executive Officer,
Depository Trust & Clearing Corporation.
On March 27, 2012, the Committee met in open session and
ordered H.R. 4235, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on May 9, 2012
(H. Rept. 112-471, Part 1).
FHA EMERGENCY FISCAL SOLVENCY ACT OF 2012
(H.R. 4264)
Summary
H.R. 4264, the FHA Emergency Fiscal Solvency Act of 2012,
would assist the Federal Housing Administration (FHA) to shore
up the Mutual Mortgage Insurance Fund (MMIF), establish minimum
annual premiums for mortgage insurance, require lenders that
committed fraud to pay the FHA back for mortgage-insurance
losses, bar unscrupulous lenders from participating in FHA's
mortgage insurance programs, and direct the FHA to implement
internal fiscal oversight.
In 2011, the Financial Services Committee held three
hearings on the FHA that focused on its fiscal condition. By
statute, the FHA is required to maintain a capital reserve
ratio of 2 percent. In 2009, the FHA's capital reserve ratio
had fallen to .53 percent, and in 2010 to .50 percent. In the
FY 2011 independent actuarial review of the FHA, the FHA's
required capital reserve ratio had fallen to .24 percent, far
below the statutorily mandated reserve ratio of 2 percent. The
FHA's deteriorating financial condition raised concerns that
the FHA may become insolvent and expose taxpayers to further
risk of loss.
The FY 2011 independent actuarial review also found that
the economic value of the MMIF had declined more than 77
percent from the end of fiscal year 2010, from $5.16 billion to
$1.19 billion. If home prices continue to fall, the MMIF's
economic value could fall below zero, which in turn may prompt
HUD to draw down funds from Treasury under Treasury's
``permanent and indefinite'' appropriations authority to
support the FHA fund, further exposing taxpayers to the risk of
loss.
Legislative History
On March 27, 2012, H.R. 4264 was introduced by Rep. Judy
Biggert and was referred to the Committee on Financial
Services. The bill has no cosponsors.
On May 25, 2011, the Subcommittee held a hearing entitled
``Legislative Proposals to Determine the Future Role of FHA,
RHS and GNMA in the Single-and Multi-Family Mortgage Markets.''
The hearing focused on the FHA's and Rural Housing Service's
single- and multi-family programs and examined legislative
proposals to improve the financial condition of the FHA, the
RHS and Ginnie Mae and to better protect taxpayers against
losses from fraudulent or poorly-underwritten loans. The
Subcommittee received testimony from the following witnesses:
Ms. Katherine M. Alitz, President, Council for Affordable and
Rural Housing; Mr. Michael D. Berman, Chairman, Mortgage
Bankers Association; Mr. Mark A. Calabria, Director of
Financial Regulation Studies, Cato Institute; Mr. Peter Carey,
Director of Self-Help Housing Enterprises, Inc.; Mr. Brian
Chappelle, Partner, Potomac Partners; Mr. Peter W. Evans,
Partner, Moran and Company; Mr. Basil Petrou, Managing Partner,
Federal Financial Analytics, Inc.; Mr. Ron Phipps, President,
Phipps Realty; and Mr. Barry Rutenberg, First Vice Chairman,
National Association of Home Builders.
On September 8, 2011, the Subcommittee held a hearing
entitled ``Legislative Proposals to Determine the Future Role
of FHA, RHS and GNMA in the Single- and Multi-Family Mortgage
Markets, Part 2.'' This hearing examined the single- and multi-
family programs of the FHA and the RHS. The hearing also
examined legislative proposals to improve the financial
condition of the FHA, the RHS, and Ginnie Mae and to better
protect taxpayers against losses from fraudulent or poorly-
underwritten loans. The Subcommittee received testimony from
the following witnesses: The Honorable Johnny Isakson (R-GA),
United States Senate; Mrs. Carol Galante, Acting FHA
Commissioner and Assistant Secretary for Housing, HUD; Ms.
Cheryl Cook, Deputy Under Secretary for Rural Development,
Department of Agriculture; and The Honorable Theodore ``Ted''
Tozer, President, Government National Mortgage Association.
On February 7, 2012, the Subcommittee met in open session
and ordered the bill favorably reported to the Full Committee
by voice vote.
On March 27, 2012, the Full Committee met in open session
and ordered the bill favorably reported to the House.
On June 20, 2012, the Committee Report was filed (H. Rept.
112-544).
On September 11, 2012, the House agreed to a motion to
suspend the rules and pass the bill, H.R. 4264, by a record
vote of 402 ayes and 7 nays.
A BILL TO AMEND THE ELECTRONIC FUND TRANSFER ACT TO LIMIT THE FEE
DISCLOSURE REQUIREMENT FOR AN AUTOMATIC TELLER MACHINE TO THE SCREEN OF
THAT MACHINE
(H.R. 4367)
Summary
H.R. 4367 amends Section 904 of the Consumer Credit
Protection Act by eliminating the requirement that automated
teller machine (ATM) operators post in a prominent and
conspicuous location or at the ATM a notice that a fee is
imposed by the operator when consumers withdraw cash from the
ATM.
Legislative History
On April 17, 2012, H.R. 4367 was introduced by
Representative Blaine Luetkemeyer and referred to the Committee
on Financial Services. The bill has 145 cosponsors.
On June 27, 2012, the Committee met in open session and
ordered the bill favorably reported to the House by voice vote.
On June 29, 2012, the Committee Report was filed (H. Rept.
112-576).
On July 9, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 4367, as amended, by a recorded vote of
371 yeas and 0 nays.
On December 11, 2012, the Senate passed H.R. 4367, without
amendment, by unanimous consent.
On December 20, 2012, H.R. 4367 was signed by the President
and became Public Law No. 112-216.
THE INVESTMENT ADVISER OVERSIGHT ACT OF 2012
(H.R. 4624)
Summary
H.R. 4624, the Investment Adviser Oversight Act of 2012,
would adopt one of the three options presented to Congress by
the Securities and Exchange Commission (SEC) to improve the
SEC's ability to examine registered investment advisers. The
three options were presented to Congress as part of a study
mandated by Section 914 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act, which required the SEC to study
``the need for enhanced examination and enforcement resources
for investment advisers'' and report its findings to the House
Financial Services and Senate Banking Committees.
The discussion draft would amend the Investment Advisers
Act of 1940 (Advisers Act) to provide for the creation of
national investment adviser associations (NIAAs), registered
with and overseen by the SEC. Investment advisers that conduct
business with retail customers would have to become members of
a registered NIAA. The SEC would have the authority to approve
the registration of any NIAA, and the SEC would be required to
determine whether an NIAA has the capacity to carry out the
purposes of the Advisers Act and to enforce compliance by its
members and their employees with the Advisers Act, the SEC's
rules under the Act, and the NIAA's rules before the investment
advisers association can register as a NIAA.
Legislative History
On September 13, 2011, the Capital Markets and Government
Sponsored Enterprises Subcommittee held a legislative hearing
on a discussion draft of the Investment Adviser Oversight Act,
entitled ``Ensuring Appropriate Regulatory Oversight of Broker-
Dealers and Legislative Proposals to Improve Investment
Oversight.'' The Subcommittee received testimony from the
following witnesses: Mr. William E. Dwyer III, Chairman,
Financial Services Institute; Mr. Ken Ehinger, President and
Chief Executive Officer, M Holdings Securities, Inc., on behalf
of the Association for Advanced Life Underwriting; Mr. Terry
Headley, President, National Association of Insurance and
Financial Advisors; Mr. Steven D. Irwin, Commissioner,
Pennsylvania Securities Commission, on behalf of the North
American Securities Administrators Association; Mr. Richard G.
Ketchum, Chairman and Chief Executive Officer, Financial
Industry Regulatory Authority; Ms. Barbara Roper, Director of
Investor Protection, Consumer Federation of America; Mr. John
G. Taft, Chief Executive Officer, RBC Wealth Management, on
behalf of the Securities Industry and Financial Markets
Association; and Mr. David Tittsworth, Executive Director/
Executive Vice President, Investment Adviser Association.
On June 6, 2012, the Committee on Financial Services held a
hearing entitled ``H.R. 4624, the Investment Adviser Oversight
Act of 2012.'' The Committee received testimony from the
following witnesses: Mr. Dale Brown, President & CEO, Financial
Services Institute; Mr. Thomas D. Currey, Past President,
National Association of Insurance and Financial Advisors; Mr.
Chet Helck, Chief Operating Officer, Raymond James Financial
Inc., on behalf of the Securities Industry and Financial
Markets Association; Mr. Richard Ketchum, Chairman and CEO,
Financial Industry Regulatory Authority; Mr. John Morgan,
Securities Commissioner of Texas, on behalf of the North
American Securities Administrators Association; and Mr. David
Tittsworth, Executive Director and Executive Vice President,
Investment Adviser Association.
NATIONAL FLOOD INSURANCE PROGRAM EXTENSION ACT OF 2012
(H.R. 5740)
Summary
H.R. 5740, the National Flood Insurance Program Extension
Act of 2012, would reauthorize the National Flood Insurance
Program (NFIP) through June 30, 2012, and amend the National
Flood Insurance Act to ensure the immediate and near-term
fiscal and administrative health of the NFIP. The bill would
also ensure the NFIP's continued viability by encouraging
broader participation in the program, increasing financial
accountability, eliminating unnecessary rate subsidies, and
updating the program to meet the needs of the 21st century. The
key provisions of H.R. 5740 include: (1) a 30-day extension of
the NFIP; (2) a three-year delay in the mandatory purchase
requirement for certain properties in newly designated Special
Flood Hazard Areas (SFHAs); (3) a phase-in of full-risk,
actuarial rates for areas newly designated as Special Flood
Hazard; (4) a reinstatement of the Technical Mapping Advisory
Council; and (5) an emphasis on greater private sector
participation in providing flood insurance coverage.
Legislative History
On May 15, 2012, H.R. 5740 was introduced by Subcommittee
on Insurance, Housing and Community Opportunity Chairman Judy
Biggert and referred to the Committee on Financial Services.
The bill has one cosponsor.
On May 17, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 5740, as amended, by a record vote of
402 yeas and 18 nays.
A BILL TO PROVIDE FLEXIBILITY WITH RESPECT TO UNITED STATES SUPPORT FOR
ASSISTANCE PROVIDED BY INTERNATIONAL FINANCIAL INSTITUTIONS FOR BURMA,
AND FOR OTHER PURPOSES
(H.R. 6431)
Summary
H.R. 6431 authorizes the Secretary of the Treasury, upon a
determination by the President that it is in the U.S. national
interest to support assistance for Burma, to instruct the U.S.
Executive Director at any international financial institution
to vote in favor of assistance for Burma; directs the President
to provide Congress with written notice of any such
determination; requires that prior to the President making such
determination the Secretary of State and the Secretary of the
Treasury shall consult with Congress regarding assistance for
Burma by an international financial institution, and the
national interests served by such assistance, and; directs the
Secretary of the Treasury to instruct the U.S. Executive
Director at each international financial institution to not
vote in favor of assistance to Burma until at least 15 days
have elapsed from the date on which the President has provided
Congress with the required notice.
Legislative History
On September 19, 2012, H.R. 6431 was introduced by Rep. Ed
Royce and referred to the Committee on Financial Services.
On September 19, 2012, the House agreed to suspend the
rules and pass H.R. 6431 by voice vote.
On September 22, 2012, the Senate passed H.R. 6431, without
amendment, by unanimous consent.
On October 5, 2012, H.R. 6431 was signed by the President
and became Public Law No. 112-192.''
SEC MODERNIZATION ACT
Summary
The SEC Modernization Act of 2011 would modernize the SEC
by (1) consolidating duplicative offices; (2) promoting
coordination amongst employees; (3) making managerial and
ethics reforms; and (4) ensuring that the inspector general and
ombudsman are truly independent. After the Dodd-Frank Act is
fully implemented, the SEC Chairman will have twenty-four
direct reports, making it even more difficult for the Chairman
to effectively manage the agency. The SEC Modernization Act
would enable the SEC to better accomplish its mission of
protecting investors, maintaining fair, orderly, and efficient
markets, and facilitating capital formation by incorporating
recommendations from the Boston Consulting Group's report
issued pursuant to Section 967 of the Dodd-Frank Act as well as
recommendations by GAO and the SEC's Inspector General.
Legislative History
On September 15, 2011, the Committee held a legislative
hearing on the discussion draft of the SEC Modernization Act of
2011 entitled ``Fixing the Watchdog: Legislative Proposals to
Improve and Enhance the Securities and Exchange Commission.''
The Committee received testimony from the following witnesses:
The Honorable Mary Schapiro, Chairman, U.S. SEC; Mr. Shubh
Saumya, Partner and Managing Director, Boston Consulting Group;
The Honorable Paul Atkins, Visiting Scholar, American
Enterprise Institute, and Former Commissioner, SEC; Mr. Stephen
D. Crimmins, Partner, K&L Gates LLP, and Former Deputy Chief
Litigation Counsel, Division of Enforcement, SEC; Mr. Jonathan
G. ``Jack'' Katz, Former Secretary, SEC, on behalf of the U.S.
Chamber of Commerce; The Honorable Harvey Pitt, Chief Executive
Officer, Kalorama Partners, LLC, and Former Chairman, SEC; and
Mr. J.W. Verret, Assistant Professor of Law, George Mason
University School of Law.
COMMITTEE PRINT OF BUDGET RECONCILIATION LEGISLATIVE RECOMMENDATIONS OF
THE COMMITTEE ON FINANCIAL SERVICES
Summary
The Committee Print contained four recommendations to meet
the deficit reduction targets specified in the Fiscal Year 2013
concurrent budget resolution (H. Con. Res. 112), as passed by
the House on March 29, 2012 by a vote of 228 yeas to 191 nays.
The budget resolution instructed six House committees--
Agriculture, Energy and Commerce, Financial Services,
Judiciary, Oversight and Government Reform, and Ways and
Means--to find $261 billion in savings over 10 years and to
submit legislative recommendations that achieve these savings
to the Budget Committee by April 27, 2012. The Committee
submitted legislative recommendations that would reduce the
deficit by $3 billion for fiscal years 2012 and 2013, $16.7
billion for fiscal years 2012 through 2017, and $29.8 billion
for fiscal years 2012 through 2022. Specifically, the
recommendation to reauthorize the NFIP would achieve a savings
of $880 million for fiscal years 2012-17 and $4.9 billion for
fiscal years 2012-22. The recommendation to terminate the HAMP
would achieve a savings of $617 million for fiscal years 2012-
2012, $2.624 billion for fiscal years 2012-2017, and $2.839
billion for fiscal years 2012-22. The recommendation to repeal
the Dodd-Frank Act's Orderly Liquidation Authority would
achieve a savings of $3.418 billion for fiscal years 2012-13,
$13.695 billion for fiscal years 2012-17, and $22.620 billion
for fiscal years 2012-22. Lastly, the recommendation to direct
funding for the Consumer Financial Protection Bureau would
achieve a savings of $381 million for fiscal years 2012-13,
$2.435 billion for fiscal years 2012-17, and $5.387 billion for
fiscal years 2012-22. The Committee fulfilled the instructions
by reporting these four legislative recommendations to the
Committee on the Budget by April 27, 2012, as set forth in H.
Con. Res. 112.
Legislative History
On April 27, 2012, the Committee met in open session and
ordered the recommendations, as amended, transmitted to the
Committee on the Budget by a record vote of 31 yeas and 26
nays.
On May 9, 2012, Chairman Paul Ryan of the Committee on the
Budget introduced H.R. 5652, a bill to provide for
reconciliation pursuant to section 201 of the concurrent
resolution on the budget for fiscal year 2013. H.R. 5652
contained the recommendations submitted by the Committee.
On May 10, 2012, the House considered and passed H.R. 5652
by a record vote of 218 yeas, 199 nays and 1 present.
A BILL TO PROVIDE FOR THE USE OF NATIONAL INFANTRY MUSEUM AND SOLDIER
CENTER COMMEMORATIVE COIN SURCHARGES, AND FOR OTHER PURPOSES
(S. 3363)
Summary
S. 3363, a bill to provide for the use of National Infantry
Museum and Soldier Center Commemorative Coin surcharges, and
for other purposes, would amend Public Law No. 110-357 to allow
the surcharges collected to be used not only for the
maintenance of the National Infantry Museum and Soldier Center,
but also for the retirement of debt associated with building
the National Infantry Museum and Soldier Center.
Legislative History
On June 29, 2012, S. 3363 was introduced by Senator Saxby
Chambliss and passed the Senate by unanimous consent.
On August 1, 2012, the House passed S. 3363 without
objection.
On August 10, 2012, S. 3363 was signed by the President and
became Public Law No. 112-169.
Full Committee Oversight Activities
ECONOMIC RECOVERY
On January 26, 2011, the Committee held a hearing entitled
``Promoting Economic Recovery and Job Creation: The Road
Forward.'' The purpose of this hearing was to provide leading
economists, academics, business owners and citizens an
opportunity to share their views about the barriers to economic
growth, and to discuss macroeconomic issues and trends facing
the country and affecting job creation. Witnesses discussed the
effectiveness of the Federal Reserve's ``quantitative easing''
policy; the impact of regulatory uncertainty on job growth; and
the consequences of federal housing policy on the economy.
Witnesses also shared their views on the effect the national
debt and budget deficit will have on the long-term health of
the economy. The witnesses for this hearing included: Dr.
William Poole of the University of Delaware; Professor John B.
Taylor of Stanford University; Dr. Donald Kohn of the Brookings
Institute; Professor Hal S. Scott of Harvard Law School; Mr.
Eric Hoffman of Hoffman Media, LLC; Mr. Charles Maddy, III of
Summit Financial Group; Mr. Andrew Bursky of Atlas Holdings,
LLC; and Mr. Ken Brody of Taconic Capitol.
DERIVATIVES
On February 15, 2011, the Committee held a hearing entitled
``Assessing the Regulatory, Economic and Market Implications of
the Dodd-Frank Derivatives Title.'' This hearing reviewed Title
VII of the Dodd-Frank Act from the perspectives of both the
federal regulators and market participants. Among the issues
discussed were implementation timeline concerns, proposed
rulemakings, and the impact on various market participants,
including non-financial companies that use derivatives
contracts to hedge against legitimate business risks. The
Committee received testimony from the following witnesses: The
Honorable Mary Schapiro, Chairman, SEC; The Honorable Gary
Gensler, Chairman, CFTC; The Honorable Daniel K. Tarullo,
Member, Federal Reserve Board of Governors; Craig Reiners,
Director of Commodity Risk Management, MillerCoors, on behalf
of the Coalition for Derivatives End-Users; Donald F. Donahue,
Chairman & Chief Executive Officer, DTCC; Terry Duffy,
Executive Chairman, the CME Group; Don Thompson, Managing
Director and Associate General Counsel, JPMorgan, on behalf of
SIFMA; Jamie Cawley, Chief Executive Officer, Javelin, on
behalf of SDMA; and Christopher Giancarlo, Executive Vice
President, Corporate development, the GFI Group Inc.
THE FINAL REPORT OF THE FINANCIAL CRISIS INQUIRY COMMISSION
On February 16, 2011, the Committee held a hearing entitled
``The Final Report of the Financial Crisis Inquiry
Commission.'' This hearing was held pursuant to Section 5 of
the ``Fraud Enforcement and Recovery Act of 2009'' (Public Law
111-21), which required the Committee to hold a hearing on the
contents of the final report of the Financial Crisis Inquiry
Commission (FCIC) within 120 days of its issuance. The FCIC was
created by Congress in 2009 ``to examine the causes, domestic
and global, of the current financial and economic crisis in the
United States'' The Commission issued its final report on
January 27, 2011, accompanied by dissenting views filed by
individual Commissioners. The hearing focused on the findings
of the Commission's final report and the commissioners'
assessments of the efficacy of the reforms contained in the
Dodd-Frank Act. In addition, the hearing examined the reasons
for the Commission's inability to reach consensus in its
findings with regard to the causes of the financial crisis. The
Committee received testimony from the following witnesses: The
Honorable Phil Angelides, Chairman of the FCIC; The Honorable
Bill Thomas, Vice Chairman of the FCIC; and four other FCIC
members: Dr. Douglas Holtz-Eakin, The Honorable Brooksley Born,
Mr. Peter Wallison, and Mr. Byron Georgiou.
OVERSIGHT OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
On March 1, 2011, the Committee held a hearing entitled
``Oversight of the Department of Housing and Urban Development
(HUD).'' The hearing focused on the proposed budget for HUD for
fiscal year 2012. HUD Secretary Shaun Donovan was the only
witness. Secretary Donovan's testimony outlined the
Administration's proposal to increase HUD's budget by $747
million (1.6 percent) over fiscal year 2010, to a total of
$47.8 billion for fiscal year 2012. As noted by the Committee,
if adopted, the Administration's fiscal year 2012 budget
request for HUD would result in a funding increase for HUD of
$6.3 billion (15 percent) since President Obama took office.
MORTGAGE REFORM
On March 1, 2011, the Committee held a hearing entitled
``Mortgage Finance Reform: An Examination of the Obama
Administration's Report to Congress.'' The Secretary of the
Treasury, Timothy Geithner, was the only witness. Secretary
Geithner presented the Administration's views on the future of
America's housing finance system, including options for
reforming the GSEs and reducing government support of the
mortgage market.
OVERSIGHT AND RESTRUCTURING OF THE SECURITIES AND EXCHANGE COMMISSION
On September 15, 2011, the Committee held a hearing
entitled ``Fixing the Watchdog: Legislative Proposals to
Improve and Enhance the Securities and Exchange Commission.''
The hearing examined the recommendations set forth in the
report of the Boston Consulting Group (BCG) on needed reforms
at the SEC, which report was mandated by Section 967 of the
Dodd-Frank Act, and examined two legislative proposals. The
first proposal was a discussion draft entitled the ``SEC
Modernization Act,'' which would reshape the SEC's managerial
and operational structure; amend provisions of the Dodd-Frank
Act regarding the creation of new SEC offices; and limit the
use of the SEC Reserve Fund created in Section 991 of the Dodd-
Frank Act to only technology investments. The second proposal
was H.R. 2308, the ``SEC Regulatory Accountability Act,'' which
would amend the Securities Exchange Act of 1934 to require the
SEC, before promulgating a regulation or issuing any order, to:
(1) identify the nature and significance of the problem that
the proposed regulation is designed to address in order to
assess whether any new regulation is warranted; (2) use the
Office of the Chief Economist to assess the costs and benefits
of the intended regulation and adopt it only on a determination
that its benefits justify the costs; and (3) ensure that any
regulation is accessible, consistent, written in plain
language, and easy to understand. The Committee received
testimony from the following witnesses: The Honorable Mary
Schapiro, Chairman, SEC; Mr. Shubh Saumya, Partner and Managing
Director, Boston Consulting Group; The Honorable Paul Atkins,
Visiting Scholar, American Enterprise Institute, and Former
Commissioner, SEC; Mr. Stephen D. Crimmins, Partner, K&L Gates
LLP, and Former Deputy Chief Litigation Counsel, Division of
Enforcement, SEC; Mr. Jonathan G. ``Jack'' Katz, Former
Secretary, SEC, on behalf of the U.S. Chamber of Commerce; The
Honorable Harvey Pitt, Chief Executive Officer, Kalorama
Partners, LLC, and Former Chairman, SEC; and Mr. J.W. Verret,
Assistant Professor of Law, George Mason University School of
Law.
THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
On June 16, 2011, the Committee held a hearing entitled
``Financial Regulatory Reform: The International Context.''
During this hearing, the Committee examined the international
implications of the Dodd-Frank Act for the United States
financial services industry and the United Stated economy.
Specifically, the Committee considered four aspects of United
States regulation that may affect the ability of United States
financial institutions to compete against their foreign
counterparts and impede economic recovery in the United States:
capital and liquidity requirements, regulation and oversight of
``systemically significant financial institutions,''
derivatives regulation, and the regulation of proprietary
trading. The Committee received testimony from the following
witnesses: The Honorable Sheila C. Bair, Chairman of the FDIC;
The Honorable Lael Brainard, Under Secretary of the Treasury
for International Affairs; The Honorable Gary Gensler, Chairman
of the CFTC; The Honorable Mary Schapiro, Chairman of the SEC;
The Honorable Daniel K. Tarullo, Governor, Board of Governors
of the Federal Reserve System; Mr. John Walsh, Acting
Comptroller of the Currency, OCC; Mr. Stephen O'Connor,
Managing Director, Morgan Stanley, and Chairman, International
Swaps and Derivatives Association, on behalf of the
International Swaps & Derivatives Association; Mr. Timothy
Ryan, President & CEO of the Securities Industry and Financial
Markets Association; Professor Hal S. Scott, Nomura Professor
and Director of the Program on International Financial Systems,
Harvard Law School; Mr. Barry L. Zubrow, Executive Vice
President and Chief Risk Officer, JPMorgan Chase & Co.; and Mr.
Damon A. Silvers, Associate General Counsel, American
Federation of Labor and Congress of Industrial Organizations.
HOUSING AND URBAN DEVELOPMENT, RURAL HOUSING SERVICE, NATIONAL
REINVESTMENT CORPORATION
On June 3, 2011, the Committee held a hearing entitled
``Oversight of HUD's HOME Program.'' This was the first in a
series of hearings on allegations of waste, fraud, and abuse
within the HOME program. At this hearing, the Committee
examined HUD's policies and procedures for monitoring the
performance of the HOME program. HUD's Office of Inspector
General performed internal audits of HUD's management of the
HOME program in September 2009 and November 2010 which
documented problems in HUD's ability to track HOME funds and
activities. The Committee received testimony from the following
witnesses: the Honorable Mercedes Marquez, HUD Assistant
Secretary for Community Planning and Development; and Mr. James
Heist, HUD Assistant Inspector General for Audit.
On December 1, 2011, the Committee held a hearing entitled
``Perspectives on the Health of the FHA Single-family Insurance
Fund.'' The hearing examined the financial status of the FHA
and the actuarial review of the FHA's MMIF for Fiscal Year
2011, released by HUD on November 15, 2011. The Committee
received testimony from the following witnesses: The Honorable
Shaun Donovan, Secretary, Department of HUD; Mr. Mathew Scire,
Director, Financial Markets and Community Investment, GAO; Dr.
Andrew Caplin, Professor of Economics, Department of Economics,
New York University; Mr. Henry V. Cunningham, Jr., CMB,
President, Cunningham and Company, on behalf of the Mortgage
Bankers Association; Mr. Patrick Sinks, President and Chief
Operating Officer, Mortgage Guaranty Insurance Corporation, on
behalf of the Mortgage Insurance Companies of America; Mr. Moe
Veissi, President, National Association of Realtors; and Ms.
Sarah Rosen Wartell, Executive Vice President, Center for
American Progress.
LAW ENFORCEMENT EFFORTS TO SECURE PRIVATE FINANCIAL INFORMATION
On June 29, 2011, the Committee held a field hearing in
Hoover, Alabama, entitled ``Hacked Off: Helping Law Enforcement
Protect Private Financial Information.'' The purpose of the
hearing was to examine threats computer hackers pose to
individuals, businesses, financial institutions and government
agencies; the methods that hackers employ to breach information
technology systems; and the efforts of law enforcement to foil
or arrest hackers. The Committee also examined the work of the
National Computer Forensics Institute (NCFI), where state and
local law enforcement officers, prosecutors and judges are
trained in ways to detect, prosecute and try cases involving
computer-based evidence. The Committee received testimony from
the following witnesses: Mr. A. T. Smith, Assistant Director,
United States Secret Service; Mr. Randall I. Hillman, Executive
Director, Alabama District Attorneys Association; Mr. Gary
Warner, Director of Research, Computer Forensics, University of
Alabama Birmingham; and Mr. Douglas ``Clay'' Hammac,
Investigator, Shelby County Sheriff's Office, Columbiana,
Alabama.
FINANCIAL STABILITY OVERSIGHT COUNCIL
On October 6, 2011, the Committee held a hearing entitled
``The Annual Report of the Financial Stability Oversight
Council.'' At this hearing, the Committee received the FSOC's
Annual Report and the Secretary of the Treasury's testimony on
the report. The hearing focused on the FSOC's efforts to
implement regulatory reforms and identify emerging threats to
the nation's financial stability. The Honorable Timothy
Geithner, Secretary of the Treasury, was the sole witness.
REGULATORY BURDEN REDUCTION
On December 5, 2011, the Committee on Financial Services
held a field hearing in Chicago, Illinois, entitled
``Regulatory Reform: Examining How New Regulations are
Impacting Financial Institutions, Small Businesses and
Consumers in Illinois,'' to hear from representatives of
Illinois-based financial institutions and businesses about the
effect of new financial regulations on the ability of financial
institutions to extend credit and stimulate job growth, while
staying economically viable. The hearing also examined the
effect of federal bank examination policies and procedures--
examinations that some financial institutions contend may be
overzealous--on economic recovery. The subcommittee received
testimony from the following witnesses: Mr. Greg Ohlendorf,
President and CEO, First Community Bank and Trust on behalf of
the Independent Community Bankers of America; Mr. William
Bates, Jr., Executive Vice President and General Counsel,
Seaway Bank and Trust Company on behalf of the National Bankers
Association; Mr. James Roolf, Chairman, Illinois Bankers
Association; Mr. James Renn, President and CEO, Lisle Savings
Bank on behalf of the Illinois League of Financial
Institutions; Mr. John Schmitt, President and CEO, Naperville
Area Chamber of Commerce; Ms. Dory Rand, President, Woodstock
Institute; and Mr. Bob Palmer, Policy Director, Housing Action
Illinois.
ANNUAL REPORT AND TESTIMONY BY THE SECRETARY OF THE TREASURY ON
INTERNATIONAL MONETARY FUND REFORM AND THE STATE OF THE INTERNATIONAL
FINANCIAL SYSTEM
On March 20, 2012, the Committee held a hearing entitled
``Hearing to Receive the Annual Testimony of the Secretary of
the Treasury on the State of the International Financial
System,'' to receive Secretary of the Treasury Timothy
Geithner's testimony on the international financial system and
the International Monetary Fund. This hearing is statutorily
required under 22 U.S.C. 262r-4. In his testimony, Secretary
Geithner described the Eurozone crisis, the efforts made by
European governments to resolve the crisis, the involvement of
the International Monetary Fund (IMF) in the Eurozone crisis,
and the role of the United States in resolving the crisis, both
bilaterally and through the IMF.
CONSUMER FINANCIAL PROTECTION BUREAU
On March 29, 2012, the Committee held a hearing entitled
``The Semi-Annual Report of the Consumer Financial Protection
Bureau.'' This hearing was held pursuant to Section 1016 of the
Dodd-Frank Act, which requires the CFPB to prepare semi-annual
reports describing its activities during the previous six
months, and requires the CFPB's Director to testify before the
Financial Services Committee to report its findings. The
hearing focused on the CFPB's activities since it assumed
rulemaking, supervisory, and examination authority over
consumer financial products and services. The hearing also
examined the rules, orders, and other initiatives the CFPB has
planned for the next six months, most of which implement
provisions of the Dodd-Frank Act aimed at the mortgage market.
The Honorable Richard Cordray, Director, CFPB, was the sole
witness.
U.S. FINANCIAL REGULATORS' SETTLEMENT PRACTICES
On May 17, 2012, the Committee held a hearing entitled
``Examining the Settlement Practices of U.S. Financial
Regulators.'' This hearing examined the financial regulators'
settlement policies and procedures, including their practice of
entering into settlement agreements that do not require the
subjects of the actions to admit wrongdoing. The Committee
received testimony from the following witnesses: Mr. Scott G.
Alvarez, General Counsel, Board of Governors of the Federal
Reserve System; Mr. Robert Khuzami, Director, Division of
Enforcement, SEC; Mr. Richard J. Osterman, Jr., Deputy General
Counsel, Litigation and Resolutions Branch, FDIC; Mr. Daniel P.
Stipano, Deputy Chief Counsel, OCC; The Honorable William F.
Galvin, Secretary of the Commonwealth of Massachusetts; Mr.
Richard W. Painter, Professor of Law, University of Minnesota
Law School; and Mr. Kenneth Rosen, Professor of Law, University
of Alabama School of Law.
INVESTMENT ADVISER OVERSIGHT
On June 6, 2012, the Committee on Financial Services held a
hearing entitled ``H.R. 4624, the Investment Adviser Oversight
Act of 2012.'' The hearing reviewed the oversight of investment
advisers by the SEC and state securities regulators, reviewed
Section 914 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (P.L. 111-203), which directed the U.S.
Securities and Exchange Commission (SEC) to study ``the need
for enhanced examination and enforcement resources for
investment advisers,'' and reviewed the resulting SEC staff
study, which presented three options to Congress for its
consideration to enhance investment adviser oversight. The
hearing also examined H.R. 4624 which adopted the second option
set out in the SEC Staff study--authorizing one or more self-
regulatory organizations for registered investment advisers,
funded by membership fees, to supplement the SEC's oversight of
investment advisers. H.R. 4624 amends the Investment Advisers
Act of 1940 to provide for the creation of national investment
adviser associations (NIAAs), registered with and overseen by
the SEC, and requires investment advisers that conduct business
with retail customers to join a registered NIAA. The Committee
received testimony from the following witnesses: Mr. Dale
Brown, President & CEO, Financial Services Institute; Mr.
Thomas D. Currey, Past President, National Association of
Insurance and Financial Advisors; Mr. Chet Helck, Chief
Operating Officer, Raymond James Financial Inc., on behalf of
the Securities Industry and Financial Markets Association; Mr.
Richard Ketchum, Chairman and CEO, Financial Industry
Regulatory Authority; Mr. John Morgan, Securities Commissioner
of Texas, on behalf of the North American Securities
Administrators Association; and Mr. David Tittsworth, Executive
Director and Executive Vice President, Investment Adviser
Association.
BANK SUPERVISION AND RISK MANAGEMENT
On June 19, 2012, the Committee on Financial Services held
a hearing entitled ``Examining Bank Supervision and Risk
Management in Light of JPMorgan Chase's Trading Loss.'' The
hearing reviewed the $2 billion trading loss disclosed by
JPMorgan Chase & Co. in May 2012 and its implications for risk
management at large complex financial institutions and the
regulation of these institutions. The hearing heard testimony
from the prudential and market regulators, which have
jurisdiction over JPMorgan's holding company, national bank and
trading operations as well as its role as a public company. The
hearing also examined whether JPMorgan's trades would be
subject to Section 619 of the Dodd-Frank Act, also known as the
Volcker Rule, and how JPMorgan's derivatives positions would be
regulated once the SEC and CFTC complete their rules to
implement Title VII of the Dodd-Frank Act, which governs the
regulation of the over-the-counter derivatives market. The
Committee received testimony from the following witnesses: The
Honorable Thomas J. Curry, Comptroller of the Currency, Office
of the Comptroller of the Currency; The Honorable Mary
Schapiro, Chairman, U.S. Securities and Exchange Commission;
The Honorable Gary Gensler, Chairman, U.S. Commodity Futures
Trading Commission; The Honorable Martin J. Gruenberg, Acting
Chairman, Federal Deposit Insurance Corporation; Mr. Scott
Alvarez, General Counsel, Federal Reserve Board of Governors;
and Mr. Jamie Dimon, Chairman and Chief Executive Officer,
JPMorgan Chase & Co.
MONETARY POLICY AND THE STATE OF THE ECONOMY
On March 2, 2011, the Committee held a hearing entitled
``Monetary Policy and the State of the Economy,'' to receive
the Federal Reserve Board's semi-annual report on monetary
policy and the state of the economy. The Honorable Ben S.
Bernanke, Chairman of the Federal Reserve Board, was the sole
witness.
On July 13, 2011, the Committee held a hearing entitled
``Monetary Policy and the State of the Economy.'' The purpose
of this hearing was to receive the semi-annual report to
Congress on monetary policy and the state of the economy,
delivered by Federal Reserve Chairman Ben S. Bernanke, who was
the only witness.
On February 29, 2012, the Committee held a hearing entitled
``Monetary Policy and the State of the Economy.'' The purpose
of this hearing was for Federal Reserve Board Chairman Ben
Bernanke to deliver the Federal Reserve Board's semi-annual
report to Congress on monetary policy and the state of the
economy.
On July 18, 2012, the Committee held a hearing entitled
``Monetary Policy and the State of the Economy,'' to receive
the Federal Reserve Board's semi-annual report on monetary
policy and the state of the economy. The Honorable Ben S.
Bernanke, Chairman of the Federal Reserve Board, was the sole
witness.
FINANCIAL STABILITY OVERSIGHT COUNCIL
On July 25, 2012, the Committee held a hearing entitled
``The Annual Report of the Financial Stability Oversight
Council.'' At this hearing, the Committee received the
Secretary of the Treasury's testimony on the FSOC's 2012 Annual
Report. The hearing focused on emerging threats to the nation's
financial stability and reported attempts to manipulate the
LIBOR interest rate index. The Honorable Timothy Geithner,
Secretary of the Treasury, was the sole witness.
CONSUMER FINANCIAL PROTECTION BUREAU
On September 20, 2012, the Committee held a hearing
entitled ``The Semi-Annual Report of the Consumer Financial
Protection Bureau.'' This hearing was held pursuant to Section
1016 of the Dodd-Frank Act, which requires the Consumer
Financial Protection Bureau (CFPB) to prepare semi-annual
reports describing its activities during the previous six
months, and requires the CFPB's Director to testify before the
Financial Services Committee regarding its findings. The
hearing examined the rules, orders, and other initiatives the
CFPB is undertaking, many of which implement provisions of the
Dodd-Frank Act aimed at the mortgage market. Mr. Richard
Cordray, Director, CFPB, was the sole witness.
IMPLEMENTATION OF THE VOLCKER RULE
On December 13, 2012, the Committee held a hearing entitled
``Examining the Impact of the Volcker Rule on Markets,
Businesses, Investors and Job Creation, Part II.'' The hearing
reviewed the rule proposals promulgated by the prudential and
market regulators in October of 2011 and January of 2012 to
implement Section 619 of the Dodd-Frank Act, popularly known as
the Volcker Rule. In particular, this hearing examined the
effect of the rule proposals on the customers of bank holding
companies, including municipalities, mutual funds, pension
funds, asset managers, businesses, and job creators. The
Committee received testimony from James Barth, Lowder Eminent
Scholar in Finance, Auburn University and Senior Finance
Fellow, Milken Institute; William R. Hambrecht, Founder,
Chairman, and CEO, WR Hambrecht + Co.; Dennis M. Kelleher,
President and Chief Executive Officer, Better Markets; Jeff
Plunkett, General Counsel and Executive Vice President, Natixis
Global Asset Management, on behalf of the Association of
Institutional Investors; Thomas Quaadman, Vice President,
Center of Capital Markets Competitiveness, U.S. Chamber of
Commerce; and Paul Schott Stevens, President and CEO, The
Investment Company Institute.
Full Committee Hearings Held
------------------------------------------------------------------------
Serial No. Title Date(s)
------------------------------------------------------------------------
112-1................. Promoting Economic January 26, 2011
Recovery and Job
Creation: The Road
Forward.
112-5................. Assessing the Regulatory, February 15, 2011
Economic and Market
Implications of the Dodd-
Frank Derivatives Title.
112-6................. The Final Report of the February 16, 2011
Financial Crisis Inquiry
Commission.
112-9................. Mortgage Finance Reform: March 1, 2011
An Examination of the
Obama Administration's
Report to Congress.
112-10................ Oversight of the March 1, 2011
Department of Housing and
Urban Development (HUD).
112-11................ Monetary Policy and the March 2, 2011
State of the Economy.
112-36................ Oversight of HUD's HOME June 3, 2011
Program.
112-39................ Financial Regulatory June 16, 2011
Reform: The International
Context.
112-43................ Hacked Off: Helping Law June 29, 2011
Enforcement Protect
Private Financial
Information (Field
Hearing).
112-46................ Monetary Policy and the July 13, 2011
State of the Economy.
112-62................ Fixing the Watchdog: September 15, 2011
Legislative Proposals to
Improve and Enhance the
Securities and Exchange
Commission.
112-70................ The Annual Report of the October 6, 2011
Financial Stability
Oversight Council.
112-87................ Perspectives on the Health December 1, 2011
of the FHA Single-family
Insurance Fund.
112-89................ Regulatory Reform: December 5, 2011
Examining How New
Regulations are Impacting
Financial Institutions,
Small Businesses and
Consumers in Illinois
(Field Hearing).
112-90................ H.R. 1148, the Stop December 6, 2011
Trading on Congressional
Knowledge Act.
112-103............... Monetary Policy and the February 29, 2012
State of the Economy.
112-108............... Hearing to Receive the March 20, 2012
Annual Testimony of the
Secretary of the Treasury
on the State of the
International Financial
System.
112-114............... The Semi-Annual Report of March 29, 2012
the Consumer Financial
Protection Bureau.
112-128............... Examining the Settlement May 17, 2012
Practices of U.S.
Financial Regulators.
112-132............... H.R. 4624, the Investment June 6, 2012
Adviser Oversight Act of
2012.
112-136............... Examining Bank Supervision June 19, 2012
and Risk Management in
Light of JPMorgan Chase's
Trading Loss.
112-145............... Monetary Policy and the July 18, 2012
State of the Economy.
112-151............... The Annual Report of the July 25, 2012
Financial Stability
Oversight Council.
112-159............... The Semi-Annual Report of September 20, 2012
the Consumer Financial
Protection Bureau.
112-164............... Examining the Impact of December 13, 2012
the Volcker Rule on
Markets, Businesses,
Investors and Job
Creation, Part II.
------------------------------------------------------------------------
Subcommittee on Capital Markets and Government Sponsored Enterprises
(Ratio: 20-15)
SCOTT GARRETT, New Jersey,
Chairman
MAXINE WATERS, California, Ranking MemberD SCHWEIKERT, Arizona, Vice
GARY L. ACKERMAN, New York Chairman
BRAD SHERMAN, California PETER T. KING, New York
RUBEN HINOJOSA, Texas EDWARD R. ROYCE, California
STEPHEN F. LYNCH, Massachusetts FRANK D. LUCAS, Oklahoma
BRAD MILLER, North Carolina DONALD A. MANZULLO, Illinois
CAROLYN B. MALONEY, New York JUDY BIGGERT, Illinois
GWEN MOORE, Wisconsin JEB HENSARLING, Texas
ED PERLMUTTER, Colorado RANDY NEUGEBAUER, Texas
JOE DONNELLY, Indiana JOHN CAMPBELL, California
ANDRE CARSON, Indiana KEVIN McCARTHY, California
JAMES A. HIMES, Connecticut STEVAN PEARCE, New Mexico
GARY C. PETERS, Michigan BILL POSEY, Florida
AL GREEN, Texas MICHAEL G. FITZPATRICK,
KEITH ELLISON, Minnesota Pennsylvania
BARNEY FRANK, Massachusetts, ex officioN A. S. HAYWORTH, New York
ROBERT HURT, Virginia
MICHAEL G. GRIMM, New York
STEVE STIVERS, Ohio
ROBERT J. DOLD, Illinois
FRANCISCO ``QUICO'' CANSECO, Texas
SPENCER BACHUS, Alabama, ex
officio
Subcommittee Legislative Activities
FANNIE MAE AND FREDDIE MAC ACCOUNTABILITY AND TRANSPARENCY FOR
TAXPAYERS ACT OF 2011
(H.R. 31)
Summary
H.R. 31, the Fannie Mae and Freddie Mac Accountability and
Transparency for Taxpayers Act of 2011, would expand the
reporting requirements and enhance the authority of the FHFA's
Office of Inspector General. H.R. 31 would require the FHFA
Inspector General to report quarterly to Congress on the status
of the conservatorships of the GSEs, Fannie Mae and Freddie
Mac, including the extent of taxpayer liabilities, the GSEs'
investment and foreclosure mitigation strategies, and
management and personnel matters at the GSEs. H.R. 31 would
require that these reports be publicly available. H.R. 31 would
also grant the Inspector General additional law enforcement and
personnel-hiring authorities.
Legislative History
H.R. 31 was introduced by Representative Judy Biggert on
January 5, 2011 and referred to the Committee on Financial
Services. The bill has 19 cosponsors.
On March 31, 2011, the Subcommittee held a legislative
hearing on H.R. 31 entitled ``Legislative Hearing on Immediate
Steps to Protect Taxpayers from the Ongoing Bailout of Fannie
Mae and Freddie Mac.'' The Subcommittee received testimony from
the following witnesses: Mr. Edward DeMarco, Acting Director of
the FHFA; The Honorable John H. Dalton, President of the
Housing Policy Council, Financial Services Roundtable; Mr.
Christopher Papagianis, Managing Director, Economics21; Mr.
Edward Pinto, Resident Fellow, American Enterprise Institute;
Mr. Bob Nielsen, Chairman of the Board, National Association of
Home Builders; and Mr. Ron Phipps, President, National
Association of Realtors.
On April 5, 2011 and April 6, 2011, the Subcommittee met in
open session and ordered the bill, as amended, favorably
reported to the Committee by a voice vote.
CHURCH PLAN INVESTMENT CLARIFICATION ACT
(H.R. 33)
Summary
H.R. 33, the Church Plan Investment Clarification Act,
would make a technical correction to Public Law 108-359, which
prevents church pension plans from investing in collective
trusts. The bill would allow church pension plans to invest in
collective trusts by broadening an exemption in the current
law. In 2003, Congress attempted to achieve this result, but
omitted a necessary exemption from the Securities Act of 1933
to provide parallel treatment for church plans with exemptions
in the Investment Company Act of 1940 and the Securities
Exchange Act of 1934. Without this correction, collective
trusts will not accept investments from church pension plans.
Legislative History
H.R. 33 was introduced by Subcommittee on Insurance,
Housing and Community Opportunity Chairman Judy Biggert on
January 5, 2011 and referred to the Committee on Financial
Services. The bill has no cosponsors.
On March 10, 2011, the Subcommittee held a hearing entitled
``Oversight of the Securities and Exchange Commission's
Operations, Activities, Challenges and FY 2012 Budget
Request.'' The Subcommittee received testimony from the
following witnesses: Mr. Robert Cook, Director, Division of
Trading and Markets, SEC; Ms. Meredith Cross, Director,
Division of Corporation Finance, SEC; Mr. Robert Khuzami,
Director, Division of Enforcement, SEC; Ms. Eileen Rominger,
Director, Division of Investment Management, SEC; and Mr. Carlo
di Florio, Director, Office of Compliance Inspections and
Examinations, SEC. During the hearing, Chairman Biggert asked
Ms. Meredith Cross to comment on the need for legislation to
modify the treatment of church pension plan investments in
collective trusts.
On May 3, 2011 and May 4, 2011, the Subcommittee met in
open session and ordered the bill, as amended, favorably
reported to the Committee by a voice vote.
On June 22, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on July 1, 2011
(H. Rept. 112-131).
On July 18, 2011, the House agreed to a motion to suspend
the rules and pass H.R. 33, as amended, by a record vote of 310
yeas and 1 nay.
FANNIE MAE AND FREDDIE MAC TRANSPARENCY ACT OF 2011
(H.R. 463)
Summary
H.R. 463, the Fannie Mae and Freddie Mac Transparency Act
of 2011, would make the Freedom of Information Act (FOIA)
applicable to Fannie Mae and Freddie Mac while they are in
federal conservatorship or receivership. FOIA is the federal
law that grants the public access to information or documents
controlled by the U.S. government. Members of the public may
make FOIA requests for the records of any government agency.
Yet despite their public charters and their management by the
federal government, neither Fannie Mae nor Freddie Mac is
considered a federal agency for purposes of FOIA. Without this
legislation, the public cannot access the GSEs' records, even
though they are overseen directly by the federal government.
Legislative History
On January 26, 2011, H.R 463 was introduced by
Representative Jason Chaffetz and was referred to the Committee
on Financial Services. The bill has eleven cosponsors.
On May 25, 2011, the Subcommittee held a legislative
hearing on H.R. 463 entitled ``Transparency, Transition and
Taxpayer Protection: More Steps to End the GSE Bailout.'' The
Subcommittee received testimony from the following witnesses:
Mr. Edward J. DeMarco, Acting Director, FHFA; Dr. Anthony
Sanders, Mercatus Center Senior Scholar and Distinguished
Professor of Real Estate Finance, George Mason University; Mr.
David John, Senior Research Fellow in Retirement Security and
Financial Institutions, The Heritage Foundation; Dr. Sheila
Crowley, President, National Low Income Housing Coalition; and
Mr. Kelly William Cobb, Government Affairs Manager, Americans
for Tax Reform.
On July 12, 2011, the Subcommittee met in open session and
ordered the bill, as amended, favorably reported to the
Committee by voice vote.
EQUITABLE TREATMENT OF INVESTORS ACT
(H.R. 757)
Summary
H.R. 757, the Equitable Treatment of Investors Act, would
amend the Securities Investor Protection Act (SIPA) in the
following ways: (1) require that the Securities Investor
Protection Corporation (SIPC) value a customer's claim
according to the last statement the customer received from the
broker-dealer; (2) prohibit SIPC trustees from suing investors
who withdrew more from their accounts than they deposited to
recover that difference, unless the investor knew the broker-
dealer was engaged in fraud, or--if the investor is a
registered broker-dealer or investment adviser--should have
known the broker-dealer was engaged in fraud; and (3) modify
the process for appointing the SIPA trustee and the trustee's
attorneys.
Legislative History
On February 17, 2011, H.R. 757 was introduced by
Subcommittee on Capital Markets and Government Sponsored
Enterprises Chairman Scott Garrett and referred to the
Committee on Financial Services. The bill has 13 cosponsors.
On March 7, 2012, the Subcommittee held a legislative
hearing on H.R. 757 entitled ``The Securities Investor
Protection Corporation: Past, Present, and Future.'' The
Subcommittee received testimony from the following witnesses:
The Honorable David Vitter, United States Senate; Mr. Stephen
Harbeck, President & Chief Executive Officer, SIPC; Ms. Sharon
Bowen, Acting Chairman of the Board, SIPC; Mr. Joe Borg,
Director, Alabama Securities Commission; Mr. Steven Caruso,
Partner, Maddox Hargett & Caruso, P.C.; Mr. Ira Hammerman,
Senior Managing Director and General Counsel, Securities
Industry and Financial Markets Association; and Mr. Ron Stein,
President, Network for Investor Action and Protection.
UNITED STATES COVERED BONDS ACT OF 2011
(H.R. 940)
Summary
H.R. 940, the United States Covered Bonds Act of 2011,
would establish the statutory framework necessary to start a
covered bonds market in the United States. The bill would
provide legal certainty for covered bonds in three ways:
specifying the categories of eligible issuers and eligible
cover-pool assets; mandating an asset coverage test for cover
pools and audits by an independent asset monitor; and
clarifying applicable securities and tax matters. H.R. 940
creates a separate resolution process for covered bond
programs. The bill requires the Secretary of the Treasury, in
consultation with applicable prudential regulators, to serve as
the primary regulator of the covered bonds market.
Legislative History
H.R. 940 was introduced by Subcommittee on Capital Markets
and Government Sponsored Enterprises Chairman Scott Garrett on
March 8, 2011 and referred to the Committee on Financial
Services and the Committee on Ways and Means. The bill has one
cosponsor.
On March 11, 2011, the Subcommittee held a hearing on H.R.
940 entitled ``Legislative Proposals to Create a Covered Bond
Market in the United States.'' The Subcommittee received
testimony from the following witnesses: Mr. Scott Stengel,
Partner, King & Spalding LLP, on behalf of the U.S. Covered
Bond Council; Mr. Bert Ely, Ely & Company, Inc.; Mr. Tim Skeet,
Amias Berman & Co., on behalf of the International Capital
Market Association; Mr. Ralph Daloisio, Managing Director,
Natixis, on behalf of the American Securitization Forum; and
Mr. Stephen G. Andrews, President and Chief Executive Officer,
Bank of Alameda.
On May 3, 2011 and May 4, 2011, the Subcommittee met in
open session and ordered the bill, as amended, favorably
reported to the Committee by voice vote.
On June 22, 2011, the Committee met in open session and
ordered H.R. 940, as amended, favorably reported to the House
by a record vote of 44 yeas, 7 nays and 3 present.
BURDENSOME DATA COLLECTION RELIEF ACT
(H.R. 1062)
Summary
H.R. 1062, the Burdensome Data Collection Relief Act,
repeals Section 953(b) of the Dodd-Frank Act, which requires
all publicly traded companies to calculate and disclose for
each filing with the SEC the median annual total compensation
of all employees of the company excluding the CEO, disclose the
annual total compensation of the CEO, and calculate and
disclose a ratio comparing those two numbers.
Legislative History
H.R. 1062 was introduced by Representative Nan Hayworth on
March 14, 2011 and referred to the Committee on Financial
Services. The bill has seven cosponsors.
On March 16, 2011, the Subcommittee held a hearing on a
draft version of H.R. 1062 entitled ``Legislative Proposals to
Promote Job Creation, Capital Formation, and Market
Certainty.'' The Subcommittee received testimony from the
following witnesses: Mr. Kenneth A. Bertsch, President and CEO,
Society of Corporate Secretaries & Governance Professionals;
Mr. Tom Deutsch, Executive Director, American Securitization
Forum; Ms. Pam Hendrickson, Chief Operating Officer, The
Riverside Company; Mr. David Weild, Senior Advisor, Grant
Thornton, LLP; Mr. Luke Zubrod, Director, Chatham Financial on
behalf of the Coalition for Derivatives End-Users; and Mr.
Damon Silvers, Policy Director and Special Counsel, AFL-CIO.
On May 3, 2011 and May 4, 2011, the Subcommittee met in
open session and ordered the bill favorably reported to the
Committee by a record vote of 20 yeas and 12 nays.
On June 22, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by a record
vote of 33 yeas and 21 nays. The Committee Report was filed on
July 12, 2011 (H. Rept. 112-142).
SMALL COMPANY CAPITAL FORMATION ACT OF 2011
(H.R. 1070)
Summary
H.R. 1070, the Small Company Capital Formation Act, raises
the offering threshold for companies exempted from registration
with the SEC under Regulation A from $5 million--the threshold
set in the early 1990s--to $50 million. Raising the offering
threshold helps small companies gain access to capital markets
without the costs and delays associated with the full-scale
securities registration process. H.R. 1070 provides the SEC
with the authority to increase the threshold and requires the
SEC to re-examine the threshold every two years and report to
Congress on its decisions regarding adjustment of the
threshold.
Legislative History
H.R. 1070 was introduced by Representative David Schweikert
on March 14, 2011 and referred to the Committee on Financial
Services. The bill has seventeen cosponsors.
On March 16, 2011, the Subcommittee held a hearing on a
draft version of H.R. 1070 entitled ``Legislative Proposals to
Promote Job Creation, Capital Formation, and Market
Certainty.'' The Subcommittee received testimony from the
following witnesses: Mr. Kenneth A. Bertsch, President and CEO,
Society of Corporate Secretaries & Governance Professionals;
Mr. Tom Deutsch, Executive Director, American Securitization
Forum; Ms. Pam Hendrickson, Chief Operating Officer, The
Riverside Company; Mr. David Weild, Senior Advisor, Grant
Thornton, LLP; Mr. Luke Zubrod, Director, Chatham Financial on
behalf of the Coalition for Derivatives End-Users; and Mr.
Damon Silvers, Policy Director and Special Counsel, AFL-CIO.
On May 3, 2011 and May 4, 2011, the Subcommittee met in
open session and ordered the bill, as amended, favorably
reported to the Committee by voice vote.
On June 22, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on September 14,
2011 (H. Rept. 112-206).
On November 2, 2011, the House agreed to a motion to
suspend the rules and pass H.R. 1070, as amended, by a record
vote of 421 yeas and 1 nay.
On March 7, 2012, the House adopted H. Res. 572, which
provided that H.R. 3606 be amended by the Rules Committee Print
112-17, the Jumpstart Our Business Startups Act, which largely
reflects the text of H.R. 3606 and H.R. 2167 as reported by the
Committee on Financial Services, H.R. 1070, H.R. 2930, H.R.
2940 as passed the House, and H.R. 4088 as introduced.
On March 8, 2012, the House considered H.R. 3606 and passed
the bill, with amendments, by a record vote of 390 yeas and 23
nays.
On March 22, 2012, the Senate considered H.R. 3606 and
passed the bill, with amendments, by a record vote of 73 yeas
and 26 nays.
On March 27, 2012, the House considered the Senate
amendment to H.R. 3606 under suspension of the rules, and
agreed to the amendment by a record vote of 380 yeas and 41
nays.
On April 5, 2012, H.R. 3606 was signed by the President and
became Public Law No. 112-106.
SMALL BUSINESS CAPITAL ACCESS AND JOB PRESERVATION ACT
(H.R. 1082)
Summary
H.R. 1082, the Small Business Capital Access and Job
Preservation Act, exempts advisers to private equity funds that
have not borrowed and do not have outstanding a principal
amount in excess of twice their funded capital commitments from
SEC registration requirements as mandated by Title IV of the
Dodd-Frank Act.
Legislative History
H.R. 1082 was introduced by Representative Robert Hurt on
March 15, 2011 and was referred to the Committee on Financial
Services. The bill has nine cosponsors.
On March 16, 2011, the Subcommittee held a hearing on H.R.
1082 entitled ``Legislative Proposals to Promote Job Creation,
Capital Formation, and Market Certainty.'' The Subcommittee
received testimony from the following witnesses: Mr. Kenneth A.
Bertsch, President and CEO, Society of Corporate Secretaries &
Governance Professionals; Mr. Tom Deutsch, Executive Director,
American Securitization Forum; Ms. Pam Hendrickson, Chief
Operating Officer, The Riverside Company; Mr. David Weild,
Senior Advisor, Grant Thornton, LLP; Mr. Luke Zubrod, Director,
Chatham Financial on behalf of the Coalition for Derivatives
End-Users; and Mr. Damon Silvers, Policy Director and Special
Counsel, AFL-CIO.
On May 3, 2011 and May 4, 2011, the Subcommittee met in
open session and ordered the bill favorably reported to the
Committee by a record vote of 19 yeas and 13 nays.
On June 22, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on July 12, 2011
(H. Rept. 112-143).
EQUITY IN GOVERNMENT COMPENSATION ACT OF 2011
(H.R. 1221)
Summary
H.R. 1221, the Equity in Government Compensation Act of
2011, would suspend the current compensation packages for all
of Fannie Mae and Freddie Mac's senior executives and establish
a compensation system for the GSEs' executive officers
consistent with the compensation and benefits provided under
FIRREA. The bill requires the GSEs' regulator--the FHFA--to
adjust the salaries of Fannie Mae's and Freddie Mac's
nonsupervisory employees to conform to the General Schedule, a
statutory pay system that pays employees based on surveys of
non-federal pay for similar work. H.R. 1221 expresses the sense
of the Congress that the 2010 and 2011 pay packages for Fannie
Mae's and Freddie Mac's senior executives were excessive and
that the money should be returned to the Treasury to reduce the
national debt.
Legislative History
On March 29, 2011, H.R. 1221 was introduced by Chairman
Spencer Bachus and referred to the Committee on Financial
Services and the Committee on Oversight and Government Reform.
The bill has 19 cosponsors.
On March 31, 2011, the Subcommittee held a hearing on H.R.
1221 entitled ``Legislative Hearing on Immediate Steps to
Protect Taxpayers from the Ongoing Bailout of Fannie Mae and
Freddie Mac.'' The Subcommittee received testimony from the
following witnesses: Mr. Edward DeMarco, Acting Director of the
FHFA, The Honorable John H. Dalton, President of the Housing
Policy Council, Financial Services Roundtable; Mr. Christopher
Papagianis, Managing Director, Economics21; Mr. Edward Pinto,
Resident Fellow, American Enterprise Institute; Mr. Bob
Nielsen, Chairman of the Board, National Association of Home
Builders; and Mr. Ron Phipps, President, National Association
of Realtors.
On April 5, 2011 and April 6, 2011, the Subcommittee met in
open session and ordered the bill, as amended, favorably
reported to the Committee by a record vote of 27 yeas and 6
nays.
On November 15, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by a record vote of 52 yeas and 4 nays. The Committee Report
was filed on January 17, 2012 (H. Rept. 112-366, Part 1).
GSE SUBSIDY ELIMINATION ACT OF 2011
(H.R. 1222)
Summary
H.R. 1222, the GSE Subsidy Elimination Act of 2011, would
mandate that the FHFA gradually require Fannie Mae and Freddie
Mac to increase the fees they charge for guaranteeing payments
of principal and interest on mortgages that they securitize.
H.R. 1222 also directs the FHFA to consider the conditions of
the financial market in raising the GSEs' guarantee fees to
ensure that its actions do not disrupt a housing recovery.
Legislative History
H.R. 1222 was introduced by Representative Randy Neugebauer
on March 29, 2011 and referred to the Committee on Financial
Services. The bill has six cosponsors.
On March 31, 2011, the Subcommittee held a legislative
hearing on H.R. 1222 entitled ``Legislative Hearing on
Immediate Steps to Protect Taxpayers from the Ongoing Bailout
of Fannie Mae and Freddie Mac.'' The Subcommittee received
testimony from the following witnesses: Mr. Edward DeMarco,
Acting Director of the FHFA; The Honorable John H. Dalton,
President of the Housing Policy Council, Financial Services
Roundtable; Mr. Christopher Papagianis, Managing Director,
Economics21; Mr. Edward Pinto, Resident Fellow, American
Enterprise Institute; Mr. Bob Nielsen, Chairman of the Board,
National Association of Home Builders; and Mr. Ron Phipps,
President, National Association of Realtors.
On April 5, 2011 and April 6, 2011, the Subcommittee met in
open session and ordered the bill favorably reported to the
Committee by a record vote of 25 yeas and 9 nays.
GSE CREDIT RISK EQUITABLE TREATMENT ACT OF 2011
(H.R. 1223)
Summary
H.R. 1223, the GSE Credit Risk Equitable Treatment Act of
2011, would clarify that a GSE loan purchase or asset-backed
security issuance would not affect the status of the underlying
assets. The bill is designed to ensure that mortgages held or
securitized by Fannie Mae and Freddie Mac and asset-backed
securities issued by them are treated similarly as other
mortgages and asset-backed securities for purposes of the
credit risk retention requirements in Section 941 of the Dodd-
Frank Act.
Legislative History
H.R. 1223 was introduced by Representative Scott Garrett on
March 29, 2011 and referred to the Committee on Financial
Services. The bill has three cosponsors.
On March 31, 2011, the Subcommittee held a legislative
hearing on H.R. 1223 entitled ``Legislative Hearing on
Immediate Steps to Protect Taxpayers from the Ongoing Bailout
of Fannie Mae and Freddie Mac.'' The Subcommittee received
testimony from the following witnesses: Mr. Edward DeMarco,
Acting Director of the FHFA, The Honorable John H. Dalton,
President of the Housing Policy Council, Financial Services
Roundtable; Mr. Christopher Papagianis, Managing Director,
Economics21; Mr. Edward Pinto, Resident Fellow, American
Enterprise Institute; Mr. Bob Nielsen, Chairman of the Board,
National Association of Home Builders; and Mr. Ron Phipps,
President, National Association of Realtors.
On April 5, 2011 and April 6, 2011, the Subcommittee met in
open session and ordered the bill, as amended, favorably
reported to the Committee by a record vote of 34 yeas and 0
nays.
GSE PORTFOLIO RISK REDUCTION ACT OF 2011
(H.R. 1224)
Summary
H.R. 1224, the GSE Portfolio Risk Reduction Act of 2011,
would accelerate and formalize the reductions in the size of
the portfolios of the GSEs, by setting annual limits on the
maximum size of each GSE's retained portfolio, ratcheting the
limits down over five years until they reached a sustainable
level. In the first year, the GSEs would have their portfolios
capped at no more than $700 billion, declining to $600 billion
for year two, $475 billion for year three, $350 billion for
year four, and finally to $250 billion in year five.
Legislative History
H.R. 1224 was introduced by Representative Jeb Hensarling
on March 29, 2011 and referred to the Committee on Financial
Services. The bill has five cosponsors.
On March 31, 2011, the Subcommittee held a legislative
hearing on H.R. 1224 entitled ``Legislative Hearing on
Immediate Steps to Protect Taxpayers from the Ongoing Bailout
of Fannie Mae and Freddie Mac.'' The Subcommittee received
testimony from the following witnesses: Mr. Edward DeMarco,
Acting Director of the FHFA; The Honorable John H. Dalton,
President of the Housing Policy Council, Financial Services
Roundtable; Mr. Christopher Papagianis, Managing Director,
Economics21; Mr. Edward Pinto, Resident Fellow, American
Enterprise Institute; Mr. Bob Nielsen, Chairman of the Board,
National Association of Home Builders; and Mr. Ron Phipps,
President, National Association of Realtors.
On April 5, 2011 and April 6, 2011, the Subcommittee met in
open session and ordered the bill, as amended, favorably
reported to the Committee by a record vote of 20 yeas and 14
nays.
GSE DEBT ISSUANCE APPROVAL ACT OF 2011
(H.R. 1225)
Summary
H.R. 1225, the GSE Debt Issuance Approval Act of 2011,
would require the Treasury Department to approve any new debt
issuances by the GSEs. If the Treasury Department chooses to
approve a debt issuance, it must explain and justify its
decision to Congress and the FHFA within 7 days.
Legislative History
H.R. 1225 was introduced by Representative Stevan Pearce on
March 29, 2011 and referred to the Committee on Financial
Services. The bill has five cosponsors.
On March 31, 2011, the Subcommittee held a legislative
hearing on H.R. 1225 entitled ``Legislative Hearing on
Immediate Steps to Protect Taxpayers from the Ongoing Bailout
of Fannie Mae and Freddie Mac.'' The Subcommittee received
testimony from the following witnesses: Mr. Edward DeMarco,
Acting Director of the FHFA; The Honorable John H. Dalton,
President of the Housing Policy Council, Financial Services
Roundtable; Mr. Christopher Papagianis, Managing Director,
Economics21; Mr. Edward Pinto, Resident Fellow, American
Enterprise Institute; Mr. Bob Nielsen, Chairman of the Board,
National Association of Home Builders; and Mr. Ron Phipps,
President, National Association of Realtors.
On April 5, 2011 and April 6, 2011, the Subcommittee met in
open session and ordered the bill favorably reported to the
Committee by a record vote of 18 yeas, 0 nays and 1 present.
GSE MISSION IMPROVEMENT ACT OF 2011
(H.R. 1226)
Summary
H.R. 1226, the GSE Mission Improvement Act of 2011, would
repeal the GSEs' affordable housing goals. Fannie Mae and
Freddie Mac, as GSEs, were vested with unique, governmentally-
derived advantages. Given their dominant role in the mortgage
market, Congress has required them to set minimum percentage-
of-business goals for mortgage purchases. These affordable
housing (or lending) goals have been designed to promote
higher-risk as well as low-income lending and lending in
underserved geographic areas.
Legislative History
H.R. 1226 was introduced by Representative Ed Royce on
March 29, 2011 and referred to the Committee on Financial
Services. The bill has five cosponsors.
On March 31, 2011, the Subcommittee held a legislative
hearing on H.R. 1226 entitled ``Legislative Hearing on
Immediate Steps to Protect Taxpayers from the Ongoing Bailout
of Fannie Mae and Freddie Mac.'' The Subcommittee received
testimony from the following witnesses: Mr. Edward DeMarco,
Acting Director of the FHFA; The Honorable John H. Dalton,
President of the Housing Policy Council, Financial Services
Roundtable; Mr. Christopher Papagianis, Managing Director,
Economics21; Mr. Edward Pinto, Resident Fellow, American
Enterprise Institute; Mr. Bob Nielsen, Chairman of the Board,
National Association of Home Builders; and Mr. Ron Phipps,
President, National Association of Realtors.
On April 5, 2011 and April 6, 2011, the Subcommittee met in
open session and ordered the bill, as amended, favorably
reported to the Committee by voice vote.
GSE RISK AND ACTIVITIES LIMITATION ACT OF 2011
(H.R. 1227)
Summary
H.R. 1227, the GSE Risk and Activities Limitation Act of
2011, would prohibit the GSEs from offering, undertaking,
transacting, conducting or engaging in any new business
activities while in conservatorship or receivership. By
preventing Fannie Mae or Freddie Mac from initiating new
projects, as defined by FHFA regulation, Congress would be
limiting their size and market dominance. Under current law,
the FHFA Director must pre-approve a proposed GSE activity or
product to determine whether it is in the public interest and
consistent with the safety and soundness of the Enterprise or
the financial system.
Legislative History
H.R. 1227 was introduced by Representative David Schweikert
on March 29, 2011 and referred to the Committee on Financial
Services. The bill has six cosponsors.
On March 31, 2011, the Subcommittee held a legislative
hearing on H.R. 1227 entitled ``Legislative Hearing on
Immediate Steps to Protect Taxpayers from the Ongoing Bailout
of Fannie Mae and Freddie Mac.'' The Subcommittee received
testimony from the following witnesses: Mr. Edward DeMarco,
Acting Director of the FHFA; The Honorable John H. Dalton,
President of the Housing Policy Council, Financial Services
Roundtable; Mr. Christopher Papagianis, Managing Director,
Economics21; Mr. Edward Pinto, Resident Fellow, American
Enterprise Institute; Mr. Bob Nielsen, Chairman of the Board,
National Association of Home Builders; and Mr. Ron Phipps,
President, National Association of Realtors.
On April 5, 2011 and April 6, 2011, the Subcommittee met in
open session and ordered the bill, as amended, favorably
reported to the Committee by voice vote.
ASSET-BACKED MARKET STABILIZATION ACT OF 2011
(H.R. 1539)
Summary
H.R. 1539, the Asset-Backed Market Stabilization Act of
2011, would repeal Section 939G of the Dodd-Frank Act, thereby
reinstating SEC Rule 436(g). Under the Securities Act, the
written consent of an ``expert''--which includes any person who
prepared or certified a portion of a statement or prospectus
filed with the SEC--must be included in the filing, and the
consenting expert is subject to liability for misstatements in
the prepared or certified portion of the registration statement
or prospectus. Rule 436(g) exempted NRSROs from being
considered ``experts'' if their ratings were included in a
registration statement or prospectus. Rule 436(g)'s repeal in
the Dodd-Frank Act prompted NRSROs to refuse to consent to the
inclusion of their ratings in statements and prospectuses,
causing dislocation in the asset-backed securities market.
Legislative History
H.R. 1539 was introduced by Representative Steve Stivers on
April 14, 2011 and was referred to the Committee on Financial
Services. The bill has three cosponsors.
On March 16, 2011, the Subcommittee held a legislative
hearing on a draft version of H.R. 1539 entitled ``Legislative
Proposals to Promote Job Creation, Capital Formation, and
Market Certainty.'' The Subcommittee received testimony from
the following witnesses: Mr. Kenneth A. Bertsch, President and
CEO, Society of Corporate Secretaries & Governance
Professionals; Mr. Tom Deutsch, Executive Director, American
Securitization Forum; Ms. Pam Hendrickson, Chief Operating
Officer, The Riverside Company; Mr. David Weild, Senior
Advisor, Grant Thornton, LLP; Mr. Luke Zubrod, Director,
Chatham Financial on behalf of the Coalition for Derivatives
End-Users; and Mr. Damon Silvers, Policy Director and Special
Counsel, AFL-CIO.
On May 3, 2011 and May 4, 2011, the Subcommittee met in
open session and ordered the bill favorably reported to the
Committee by a record vote of 18 yeas and 14 nays.
On July 20, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by 31 yeas and
19 nays. The Committee Report was filed on August 12, 2011 (H.
Rept. 112-196).
BUSINESS RISK MITIGATION AND PRICE STABILIZATION ACT OF 2011
(H.R. 1610)
Summary
H.R. 1610, the Business Risk Mitigation and Price
Stabilization Act of 2011, would exempt non-financial end-users
of derivatives products from having to post margin as required
under Title VII of the Dodd-Frank Act.
Legislative History
H.R. 1610 was introduced by Representative Michael Grimm on
April 15, 2011 and was referred to the Committee on Financial
Services and the Committee on Agriculture. The bill has ten
cosponsors.
On February 15, 2011, the Committee held an oversight
hearing on the implementation of Title VII of the Dodd-Frank
Act entitled, ``Assessing the Regulatory, Economic and Market
Implications of the Dodd-Frank Derivatives Title.'' The
Subcommittee received testimony from the following witnesses:
The Honorable Mary Schapiro, Chairman, SEC; The Honorable Gary
Gensler, Chairman, CFTC; The Honorable Daniel K. Tarullo,
Member, Federal Reserve Board of Governors; Mr. Craig Reiners,
Director of Commodity Risk Management, MillerCoors, on behalf
of the Coalition for Derivatives End-Users; Mr. Donald F.
Donahue, Chairman & Chief Executive Officer, DTCC; Mr. Terry
Duffy, Executive Chairman, CME Group; Mr. Don Thompson,
Managing Director and Associate General Counsel, JPMorgan
Chase, on behalf of SIFMA; Mr. Jamie Cawley, Chief Executive
Officer, Javelin, on behalf of SDMA; and Mr. Christopher
Giancarlo, Executive Vice President, Corporate Development, GFI
Group Inc.
On March 16, 2011, the Subcommittee held a legislative
hearing on the draft version of H.R. 1610 entitled
``Legislative Proposals to Promote Job Creation, Capital
Formation, and Market Certainty.'' The Subcommittee received
testimony from the following witnesses: Mr. Kenneth A. Bertsch,
President and CEO, Society of Corporate Secretaries &
Governance Professionals; Mr. Tom Deutsch, Executive Director,
American Securitization Forum; Ms. Pam Hendrickson, Chief
Operating Officer, The Riverside Company; Mr. David Weild,
Senior Advisor, Grant Thornton, LLP; Mr. Luke Zubrod, Director,
Chatham Financial on behalf of the Coalition for Derivatives
End-Users; and Mr. Damon Silvers, Policy Director and Special
Counsel, AFL-CIO.
On May 3, 2011 and May 4, 2011, the Subcommittee met in
open session and ordered the bill, as amended, favorably
reported to the Committee by a record vote of 19 yeas and 13
nays.
COMMUNITIES FIRST ACT
(H.R. 1697)
Summary
H.R. 1697, the Communities First Act, would reduce
regulatory, paperwork, and tax burdens on small banks. The bill
would revise regulatory requirements for community banks by (1)
amending the Federal Deposit Insurance Act to permit certain
insured depository institutions to submit a short-form report
of condition; (2) amending the Sarbanes-Oxley Act to exempt
certain small-sized depository institutions from the annual
management assessment of internal controls requirements; (3)
amending the Truth in Lending Act to exempt from escrow or
impound account requirements any loan secured by a first lien
on a consumer's principal dwelling, if the loan is held by a
creditor with assets of $10 billion or less; and (4) amending
the Gramm-Leach-Bliley Act to exempt certain financial
institutions from furnishing a mandatory annual privacy notice.
The bill would also amend the Securities Exchange Act of
1934 to direct the SEC: (1) to ensure that information,
documents, and reports accurately and appropriately reflect the
business model of a registered security issuer; (2) to approve
any new or amended generally accepted accounting principle only
if it would have no negative economic impact on certain small-
sized insured depository institutions; and (3) to increase the
shareholder registration threshold for certain banks and bank
holding companies.
The bill would also amend the Dodd-Frank Act: (1) to
authorize the FSOC to set aside a final regulation prescribed
by the CFPB if the Council decides that it would be
inconsistent with the safe and sound operation of U.S.
financial institutions, or could have a disproportionate
negative impact on a subset of the banking industry; and (2) to
repeal the authority of the Federal Reserve Board to delegate
to the CFPB its authority to examine persons for compliance
with federal consumer financial laws.
For the purposes of capital calculation, the bill
authorizes specified institutions: (1) to amortize losses or
write-downs on a quarterly basis over a 10-year period; and (2)
to average, over a five-year period, the appraised value of any
real estate securing a loan held by the institution.
Legislative History
On May 3, 2011, H.R. 1697 was introduced by Representative
Blaine Luetkemeyer and was referred to the Committee on
Financial Services. The bill has 55 cosponsors.
On November 16, 2011, the Subcommittees on Financial
Institutions and Consumer Credit and Capital Markets and
Government Sponsored Enterprises held a joint legislative
hearing on H.R. 1697 entitled ``H.R. 1697, The Communities
First Act.'' The Subcommittees received testimony from the
following witnesses: Mr. Salvatore Marranca, President and
Chief Executive Officer, Cattaraugus County Bank on behalf of
the Independent Community Bankers Association; Mr. O. William
Cheney, President and Chief Executive Officer, Credit Union
National Association; Mr. John A. Klebba, President and Chief
Executive Officer, Legends Bank, on behalf of the Missouri
Bankers Association; Mr. Fred Becker, Jr., President and Chief
Executive Officer, National Association of Federal Credit
Unions; Mr. Arthur E. Wilmarth, Jr., Professor of Law, George
Washington University, Executive Director, Center for Law,
Economics and Finance; Mr. Damon Silvers, Director, Policy and
Special Counsel, American Federation of Labor and Congress of
Industrial Organizations; and Mr. Adam J. Levitin, Professor of
Law, Georgetown University Law Center.
SWAPS BAILOUT PREVENTION ACT
(H.R. 1838)
Summary
H.R. 1838, the Swaps Bailout Prevention Act, would repeal
Section 716 of the Dodd-Frank Act. Section 716 prohibits
``federal assistance''--defined as ``the use of any advances
from any Federal Reserve credit facility or discount window
[or] Federal Deposit Insurance Corporation insurance or
guarantees''--to ``swaps entities,'' which include swap dealers
and major swap participants, securities and futures exchanges,
swap-execution facilities, and clearing organizations. This
provision, known as the swap desk ``push out'' or ``spin off''
provision, forces financial institutions that have swap desks
to move them into an affiliate to preserve their access to
Federal Reserve credit facilities and federal deposit
insurance. Although the provision allows banks to continue
dealing in swaps related to interest rates, foreign currency,
and swaps permitted under the National Bank Act, it prohibits
them from engaging in swaps related to commodities, equities,
and credit.
Legislative History
On May 11, 2011, H.R. 1838 was introduced by Representative
Nan Hayworth and referred to the Committee on Financial
Services and the Committee on Agriculture. The bill has no
cosponsors.
On October 14, 2011, the Subcommittee held a hearing on
H.R. 1838 entitled ``Legislative Proposals to Bring Certainty
to the Over-the-Counter Derivatives Market.'' The Subcommittee
received testimony from the following witnesses: Mr. Keith
Bailey, Managing Director, Fixed Income, Currencies and
Commodities, Barclays Capital, on behalf of the Institute of
International Bankers; Mr. Shawn Bernardo, Senior Managing
Director, Tullett Prebon, on behalf of the Wholesale Market
Brokers' Association Americas; Ms. Brenda Boultwood, Chief Risk
Officer and Senior Vice President, CE Risk Management Division
Office, Constellation Energy, on behalf of the Coalition of
Derivatives End-Users; Mr. James Cawley, CEO, Javelin Capital
Markets LLC; Mr. Kent Mason, Davis & Harman LLP, on behalf of
the American Benefits Council and the Committee on the
Investment of Employee Benefit Assets; and Mr. Conrad Voldstad,
Chief Executive Officer, International Swaps and Derivatives
Association.
On November 15, 2011, the Subcommittee met in open session
and ordered H.R. 1838, as amended, favorably reported to the
Committee by a record vote of 19 yeas and 14 nays.
TO AMEND THE SECURITIES LAWS TO ESTABLISH CERTAIN THRESHOLDS FOR
SHAREHOLDER REGISTRATION, AND FOR OTHER PURPOSES.
(H.R. 1965)
Summary
H.R. 1965, a bill to amend the securities laws to establish
certain thresholds for shareholder registration, and for other
purposes, would raise the threshold for mandatory registration
under the Securities Exchange Act of 1934 (the Exchange Act)
from 500 shareholders to 2,000 shareholders for banks and bank
holding companies. The bill would also modify the threshold for
deregistration under Sections 12(g) and 15(d) of the Exchange
Act for a bank or a bank holding company from 300 to 1,200
shareholders.
Legislative History
On May 24, 2011, H.R. 1965 was introduced by Representative
James Himes and referred to the Committee on Financial
Services. The bill has 18 cosponsors.
On September 21, 2011, the Subcommittee held a hearing on
H.R. 1965 entitled ``Legislative Proposals to Facilitate Small
Business Capital Formation and Job Creation.'' The Subcommittee
received testimony from the following witnesses: Ms. Meredith
Cross, Director, Division of Corporation Finance, SEC; Mr.
Vincent Molinari, Founder and Chief Executive Officer, GATE
Technologies LLC; Mr. Barry E. Silbert, Founder and Chief
Executive Officer, SecondMarket, Inc.; Mr. Matthew H. Williams,
Chairman and President, Gothenburg State Bank, on behalf of the
American Bankers Association; Mr. William D. Waddill, Senior
Vice President and Chief Financial Officer, OncoMed
Pharmaceuticals, Inc., on behalf of the Biotechnology Industry
Organization; Mr. A. Heath Abshure, Commissioner, Arkansas
Securities Department on behalf of the North American
Securities Administrators; and Ms. Dana Mauriello, President,
ProFounder.
On October 5, 2011, the Subcommittee met in open session
and ordered the bill, as amended, favorably reported to the
Committee by voice vote.
On October 26, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote.
On November 2, 2011, the House considered H.R. 1965 under
suspension of the rules, and passed the bill, as amended, by a
record vote of 420 yeas and 2 nays.
PONZI SCHEME INVESTOR PROTECTION ACT OF 2011
(H.R. 1987)
Summary
H.R. 1987, the Ponzi Scheme Investor Protection Act of
2011, would amend the SIPA in the following ways: (1) prohibit
SIPC trustees from suing direct investors in a Ponzi scheme who
withdrew more from their accounts than they deposited to
recover that difference unless the investor was complicit in
the fraud, or is a registered broker-dealer or investment
adviser; (2) extend SIPC coverage to indirect investors up to
$100,000; (3) require that a customer's net equity be adjusted
for inflation as measured by the Consumer Price Index; (4)
reduce the amount of deference that a bankruptcy judge must
give to SIPC's recommendation on trustee fees; and (5) mandate
annual audits of SIPC trustees in cases which SIPC has no
reasonable expectation that it will recoup the fees paid to the
trustee.
Legislative History
On May 25, 2011, H.R. 1987 was introduced by Representative
Gary Ackerman and referred to the Committee on Financial
Services. The bill has eight cosponsors.
On March 7, 2012, the Subcommittee held a legislative
hearing on H.R. 1987 entitled ``The Securities Investor
Protection Corporation: Past, Present, and Future.'' The
Subcommittee received testimony from the following witnesses:
The Honorable David Vitter, United States Senate; Mr. Stephen
Harbeck, President & Chief Executive Officer, Securities
Investor Protection Corporation; Ms. Sharon Bowen, Acting
Chairman of the Board, Securities Investor Protection
Corporation; Mr. Joe Borg, Director, Alabama Securities
Commission; Mr. Steven Caruso, Partner, Maddox Hargett &
Caruso, P.C.; Mr. Ira Hammerman, Senior Managing Director and
General Counsel, Securities Industry and Financial Markets
Association; and Mr. Ron Stein, President, Network for Investor
Action and Protection.
PRIVATE COMPANY FLEXIBILITY AND GROWTH ACT
(H.R. 2167)
Summary
H.R. 2167, the Private Company Flexibility and Growth Act,
would raise the threshold for mandatory registration under the
Securities Exchange Act of 1934 (the Exchange Act) from 500
shareholders to 1,000 shareholders for all companies;
shareholders who received securities under employee
compensation plans would not count towards the threshold.
Section 12(g) of the Exchange Act requires issuers to
register equity securities with the SEC if those securities are
held by 500 or more holders of record and the company has total
assets of more than $10 million. After a company registers
under 12(g), it must comply with the Exchange Act's reporting
requirements, which include filing annual reports on Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K,
and proxy statements on Schedule 14A. The shareholder threshold
has not been adjusted since it was adopted in 1964 and has
become an impediment to capital formation for small startup
companies. These companies often remain private to maintain
greater flexibility and control, and to avoid the increased
costs associated with becoming a public company. To attract
employees and conserve capital for research and development,
startup companies often award their employees stock options in
place of higher salaries. If the company succeeds and those
options vest, the holders of those options become equity
holders, and they are counted against the registration
threshold. Because private companies are taking longer to go
public than they have in the past, employees' stock options are
increasingly vesting before the companies go public. Small
private companies may thus find themselves subject to the same
reporting requirements as listed companies.
Legislative History
On June 14, 2011, H.R. 2167 was introduced by
Representative David Schweikert and referred to the Committee
on Financial Services. The bill has 27 cosponsors.
On September 21, 2011, the Subcommittee held a hearing on
H.R. 2167 entitled ``Legislative Proposals to Facilitate Small
Business Capital Formation and Job Creation.'' The Subcommittee
received testimony from the following witnesses: Ms. Meredith
Cross, Director, Division of Corporation Finance, SEC; Mr.
Vincent Molinari, Founder and Chief Executive Officer, GATE
Technologies LLC; Mr. Barry E. Silbert, Founder and Chief
Executive Officer, SecondMarket, Inc.; Mr. Matthew H. Williams,
Chairman and President, Gothenburg State Bank, on behalf of the
American Bankers Association; Mr. William D. Waddill, Senior
Vice President and Chief Financial Officer, OncoMed
Pharmaceuticals, Inc., on behalf of the Biotechnology Industry
Organization; Mr. A. Heath Abshure, Commissioner, Arkansas
Securities Department on behalf of the North American
Securities Administrators; and Ms. Dana Mauriello, President,
ProFounder.
On October 5, 2011, the Subcommittee met in open session
and ordered H.R. 2167, as amended, favorably reported to the
Committee by voice vote.
On October 26, 2011, the Committee met in open session and
ordered H.R. 2167, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on December 12,
2011 (H. Rept. 112-327).
On March 7, 2012, the House adopted H. Res. 572, which
provided that H.R. 3606 would be amended by the Rules Committee
Print 112-17, the Jumpstart Our Business Startups Act, which
largely reflects the text of H.R. 3606 and H.R. 2167 as
reported by the Committee on Financial Services, H.R. 1070,
H.R. 2930, H.R. 2940 as passed the House, and H.R. 4088 as
introduced.
On March 8, 2012, the House considered H.R. 3606 and passed
the bill, with amendments, by a record vote of 390 yeas and 23
nays.
On March 22, 2012, the Senate considered H.R. 3606 and
passed the bill, with amendments, by a record vote of 73 yeas
and 26 nays.
On March 27, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 3606 with the Senate amendment by a
record vote of 380 yeas and 41 nays.
On April 5, 2012, H.R. 3606 was signed by the President and
became Public Law No. 112-106.
SEC REGULATORY ACCOUNTABILITY ACT
(H.R. 2308)
Summary
On June 23, 2011, Capital Markets and Government Sponsored
Enterprises Subcommittee Chairman Garrett introduced H.R. 2308,
the SEC Regulatory Accountability Act. H.R. 2308 requires the
SEC to generally follow the principles set forth in Executive
Order No. 13,563, which directs non-independent executive
branch agencies to adopt regulations only if the benefits of
the regulations justify their costs; to tailor regulations to
impose the least burden on society; and to develop plans for
retrospectively analyzing rules to identify those that are
outmoded, ineffective, insufficient, or excessively burdensome
and to modify, streamline, expand, or repeal them accordingly.
H.R. 2308 also requires, in general, the SEC to identify a
problem and assess its significance before the SEC issues a
rule in order to determine whether regulation is warranted. The
bill requires the SEC's Chief Economist to conduct a cost-
benefit analysis of proposed regulations, and it requires that
the benefits of proposed regulations justify their costs before
the SEC can issue them. Further, the bill requires the SEC to
identify and assess alternatives to regulations that it
considers, and to explain why a regulation that it issues meets
regulatory objectives more effectively than the alternatives.
The bill requires the SEC to ensure that its regulations be
accessible, consistent, written in plain language, and easy to
understand, and to measure and seek to improve the results of
regulatory requirements.
Legislative History
On June 23, 2011, H.R. 2308 was introduced by Subcommittee
on Capital Markets and Government Sponsored Enterprises
Chairman Scott Garrett and referred to the Committee on
Financial Services. The bill has 19 cosponsors.
On September 15, 2011, the Committee held a legislative
hearing on H.R. 2308 entitled ``Fixing the Watchdog:
Legislative Proposals to Improve and Enhance the Securities and
Exchange Commission.'' The Committee received testimony from
the following witnesses: The Honorable Mary Schapiro, Chairman,
SEC; Mr. Shubh Saumya, Partner and Managing Director, Boston
Consulting Group; The Honorable Paul Atkins, Visiting Scholar,
American Enterprise Institute, and Former Commissioner, SEC;
Mr. Stephen D. Crimmins, Partner, K&L Gates LLP, and Former
Deputy Chief Litigation Counsel, Division of Enforcement, SEC;
Mr. Jonathan G. ``Jack'' Katz, Former Secretary, SEC, on behalf
of the U.S. Chamber of Commerce; The Honorable Harvey Pitt,
Chief Executive Officer, Kalorama Partners, LLC, and Former
Chairman, SEC; and Mr. J.W. Verret, Assistant Professor of Law,
George Mason University School of Law.
On November 15, 2011, the Subcommittee met in open session
and ordered the bill, as amended, favorably reported to the
Committee by a record vote of 19 yeas and 15 nays.
On February 16, 2012, the Committee met in open session and
ordered H.R. 2308, as amended, reported to the House by a
record vote of 30 yeas and 26 nays. The Committee Report was
filed on April 25, 2012 (H. Rept. 112-453).
GSE LEGAL FEE REDUCTION ACT OF 2011
(H.R. 2428)
Summary
H.R. 2428, the GSE Legal Fee Reduction Act of 2011, would
limit the indemnification of former executives of the GSEs
Fannie Mae and Freddie Mac and set standards for advancing
indemnification payments. Under the bill, the FHFA would have
the authority to set criteria for indemnification and may
require executives or directors to post bond as a condition of
receiving indemnification advances. FHFA would be required to
prohibit the GSEs from using Treasury funds to satisfy any
settlement, judgment, order, or penalty.
Legislative History
On July 6, 2011, H.R. 2428 was introduced by Subcommittee
on Oversight and Investigations Chairman Randy Neugebauer and
referred to the Committee on Financial Services. The bill has
five cosponsors.
On May 25, 2011, the Subcommittee held a legislative
hearing on a draft version of H.R. 2428 entitled
``Transparency, Transition and Taxpayer Protection: More Steps
to End the GSE Bailout.'' The Subcommittee received testimony
from the following witnesses: Mr. Edward DeMarco, Acting
Director of the FHFA; Dr. Anthony Sanders, Mercatus Center
Senior Scholar and Distinguished Professor of Real Estate
Finance, George Mason University; Mr. David John, Senior
Research Fellow in Retirement Security and Financial
Institutions, The Heritage Foundation; Dr. Sheila Crowley,
President, National Low Income Housing Coalition; and Mr. Kelly
William Cobb, Government Affairs Manager, Americans for Tax
Reform.
FANNIE MAE AND FREDDIE MAC TAXPAYER PAYBACK ACT OF 2011
(H.R. 2436)
Summary
H.R. 2436, the Fannie Mae and Freddie Mac Taxpayer Payback
Act of 2011, would prohibit any reduction in the dividend rate
paid to the Secretary of the Treasury on the senior preferred
stock of Fannie Mae and Freddie Mac. The bill would codify the
September 2008 agreement between the Treasury Department and
the GSEs Fannie Mae and Freddie Mac, thus guaranteeing that
taxpayers' investment in Fannie Mae and Freddie Mac will be
repaid.
As part of the government takeover of Fannie Mae and
Freddie Mac, the Treasury Department provided both firms with
capital in return for senior preferred stock that pays a 10
percent quarterly dividend to the Treasury. Although the
dividend may be changed at any time by agreement between the
FHFA and Treasury Department, the 10 percent dividend was
designed to guarantee that taxpayers would be fully repaid and
that Fannie Mae and Freddie Mac would not be reincorporated
after their conservatorship as private companies with public
charters and missions. Some critics of the 10 percent dividend
have argued that it forces the GSEs to borrow even more from
the Treasury Department to repay what it has already borrowed
plus the dividend, and thus serves no purpose.
Legislative History
On July 7, 2011, H.R. 2436 was introduced by Representative
Donald Manzullo and referred to the Committee on Financial
Services. The bill has four cosponsors.
On May 25, 2011, the Subcommittee held a legislative
hearing on a draft version of H.R. 2436 entitled
``Transparency, Transition and Taxpayer Protection: More Steps
to End the GSE Bailout.'' The Subcommittee received testimony
from the following witnesses: Mr. Edward DeMarco, Acting
Director of the FHFA; Dr. Anthony Sanders, Mercatus Center
Senior Scholar and Distinguished Professor of Real Estate
Finance, George Mason University; Mr. David John, Senior
Research Fellow in Retirement Security and Financial
Institutions, The Heritage Foundation; Dr. Sheila Crowley,
President, National Low Income Housing Coalition; and Mr. Kelly
William Cobb, Government Affairs Manager, Americans for Tax
Reform.
On July 12, 2011, the Subcommittee met in open session and
ordered H.R. 2436 favorably reported to the Committee by voice
vote.
REMOVING GSES CHARTERS DURING RECEIVERSHIP ACT OF 2011
(H.R. 2439)
Summary
H.R. 2439, the Removing GSEs Charters During Receivership
Act of 2011, would authorize the FHFA to revoke the charters of
Fannie Mae and Freddie Mac, and require the FHFA to revoke the
charter when a successor, limited-life entity is dissolved. The
bill would also require the Director of the FHFA to submit a
report to Congress analyzing the economic impact of privatizing
the secondary mortgage market and detailing the costs of
maintaining a government guarantee. The bill would also require
the Director of the FHFA to make quarterly determinations for
five years regarding whether $250 billion of residential
mortgage loans were sold and securitized in the private,
secondary mortgage market.
Legislative History
On July 7, 2011, H.R. 2439 was introduced by Representative
Steve Stivers and referred to the Committee on Financial
Services. The bill has two cosponsors.
On May 25, 2011, the Subcommittee held a legislative
hearing on a draft version of H.R. 2439 entitled
``Transparency, Transition and Taxpayer Protection: More Steps
to End the GSE Bailout.'' The Subcommittee received testimony
from the following witnesses: Mr. Edward DeMarco, Acting
Director of the FHFA; Dr. Anthony Sanders, Mercatus Center
Senior Scholar and Distinguished Professor of Real Estate
Finance, George Mason University; Mr. David John, Senior
Research Fellow in Retirement Security and Financial
Institutions, The Heritage Foundation; Dr. Sheila Crowley,
President, National Low Income Housing Coalition; and Mr. Kelly
William Cobb, Government Affairs Manager, Americans for Tax
Reform.
On July 12, 2011, the Subcommittee met in open session and
ordered the bill, as amended, favorably reported to the
Committee by voice vote.
MARKET TRANSPARENCY AND TAXPAYER PROTECTION ACT OF 2011
(H.R. 2440)
Summary
H.R. 2440, the Market Transparency and Taxpayer Protection
Act of 2011, would direct Fannie Mae and Freddie Mac to report
to the FHFA on the assets they own within 180 days of the
bill's enactment. The bill would also require the FHFA to
identify the GSEs Fannie Mae and Freddie Mac assets that are
not critical to the GSEs' missions, and direct the FHFA's
director to establish annual plans for the GSEs to sell or
dispose of these assets. The bill would also give the GSEs
three years to dispose of these assets, and require the FHFA to
report annually to Congress on the disposition of these assets.
Legislative History
On July 7, 2011, H.R. 2440 was introduced by Representative
Robert Hurt and referred to the Committee on Financial
Services. The bill has three cosponsors.
On May 25, 2011, the Subcommittee held a legislative
hearing on a draft version of H.R. 2440 entitled
``Transparency, Transition and Taxpayer Protection: More Steps
to End the GSE Bailout.'' The Subcommittee received testimony
from the following witnesses: Mr. Edward DeMarco, Acting
Director of the FHFA; Dr. Anthony Sanders, Mercatus Center
Senior Scholar and Distinguished Professor of Real Estate
Finance, George Mason University; Mr. David John, Senior
Research Fellow in Retirement Security and Financial
Institutions, The Heritage Foundation; Dr. Sheila Crowley,
President, National Low Income Housing Coalition; and Mr. Kelly
William Cobb, Government Affairs Manager, Americans for Tax
Reform.
On July 12, 2011, the Subcommittee met in open session and
ordered the bill, as amended, favorably reported to the
Committee by voice vote.
HOUSING TRUST FUND ELIMINATION ACT OF 2011
(H.R. 2441)
Summary
H.R. 2441, the Housing Trust Fund Elimination Act of 2011,
would abolish the Affordable Housing Trust Fund. Created as
part of the Housing and Economic Recovery Act of 2008 (HERA),
the Affordable Housing Trust Fund was intended to serve as a
permanent off-budget source of revenue dedicated to building,
preserving, and rehabilitating housing for extremely and very
low-income families. However, the Affordable Housing Trust Fund
has never been capitalized. The cost of the Affordable Housing
Trust Fund was estimated to be more than $4.5 billion over 5
years, and it was to have been funded by Fannie Mae and Freddie
Mac. When the FHFA placed the GSEs Fannie Mae and Freddie Mac
into conservatorship in September 2008, FHFA suspended the
GSEs' contributions to the Housing Trust Fund.
Legislative History
On July 7, 2011, H.R. 2441 was introduced by Representative
Edward Royce and referred to the Committee on Financial
Services. The bill has two cosponsors.
On May 25, 2011, the Subcommittee held a legislative
hearing on a draft version of H.R. 2441 entitled
``Transparency, Transition and Taxpayer Protection: More Steps
to End the GSE Bailout.'' The Subcommittee received testimony
from the following witnesses: Mr. Edward DeMarco, Acting
Director of the FHFA; Dr. Anthony Sanders, Mercatus Center
Senior Scholar and Distinguished Professor of Real Estate
Finance, George Mason University; Mr. David John, Senior
Research Fellow in Retirement Security and Financial
Institutions, The Heritage Foundation; Dr. Sheila Crowley,
President, National Low Income Housing Coalition; and Mr. Kelly
William Cobb, Government Affairs Manager, Americans for Tax
Reform.
On July 12, 2011, the Subcommittee met in open session and
ordered H.R. 2441, as amended, favorably reported to the
Committee by a record vote of 18 yeas and 14 nays.
CAP THE GSE BAILOUT ACT OF 2011
(H.R. 2462)
Summary
H.R. 2462, the Cap the GSE Bailout Act of 2011, would limit
outlays to Fannie Mae or Freddie Mac to the larger of the net
amounts Fannie Mae and Freddie Mac have received from the
Treasury Department from 2010 to 2012 or $200 billion.
In September 2008, when Fannie Mae and Freddie Mac were
placed into conservatorship, the Treasury Department entered
into an agreement to purchase up to $100 billion in senior
preferred stock of each of the GSEs. In February 2009, the
Treasury Department increased this level to up to $200 billion
for each of the GSEs. In December 2009, the Treasury Department
announced that it had raised the total limit for each GSE to
the greater of $200 billion or $200 billion plus any additional
payments made in calendar years 2010 through 2012, less any
surplus amount as of December 31, 2012. H.R. 2462 codifies the
December 2009 agreement. H.R. 2462 would cap the GSE bailout to
provide certainty that government assistance is limited and
will end.
Legislative History
On July 8, 2011, H.R. 2462 was introduced by Representative
Michael Fitzpatrick and referred to the Committee on Financial
Services. The bill has three cosponsors.
On May 25, 2011, the Subcommittee held a legislative
hearing on a draft version of H.R. 2462 entitled
``Transparency, Transition and Taxpayer Protection: More Steps
to End the GSE Bailout.'' The Subcommittee received testimony
from the following witnesses: Mr. Edward DeMarco, Acting
Director of the FHFA; Dr. Anthony Sanders, Mercatus Center
Senior Scholar and Distinguished Professor of Real Estate
Finance, George Mason University; Mr. David John, Senior
Research Fellow in Retirement Security and Financial
Institutions, The Heritage Foundation; Dr. Sheila Crowley,
President, National Low Income Housing Coalition; and Mr. Kelly
William Cobb, Government Affairs Manager, Americans for Tax
Reform.
On July 12, 2011, the Subcommittee met in open session and
ordered H.R. 2462, as amended, favorably reported to the
Committee by voice vote.
WHISTLEBLOWER IMPROVEMENT ACT OF 2011
(H.R. 2483)
Summary
H.R. 2483, the Whistleblower Improvement Act of 2011, would
amend the Securities Exchange Act of 1934 and the Commodity
Exchange Act to require a whistleblower employee, as a
prerequisite to eligibility for a whistleblower award, to (1)
first report information relating to misconduct to his or her
employer before reporting it to the SEC, and (2) report such
information to the SEC within 180 days after reporting it to
the employer. A whistleblower would still be eligible for an
award even if the whistleblower fails to report the relevant
information to his or her employer if (1) the employer lacks
either a policy prohibiting retaliation for reporting potential
misconduct or an internal reporting system allowing for
anonymous reporting, or (2) the SEC determines that internal
reporting was not a viable option. H.R. 2483 would also
prohibit a whistleblower award to any whistleblower who has
legal or compliance responsibilities and a fiduciary or
contractual obligation to investigate internal reports of
misconduct or violations under certain circumstances. H.R. 2483
would also (1) make whistleblower awards discretionary instead
of mandatory, (2) repeal the minimum award requirement, and (3)
prohibit an award to a whistleblower who is found civilly
liable or is determined by the SEC to have been complicit in
misconduct related to the pertinent violation. H.R. 2483 would
also require the SEC to notify the pertinent entity before
commencing any enforcement action relating to information
reported by a whistleblower, unless notification would
jeopardize investigative measures and impede the gathering of
relevant facts. Finally, the bill would require the GAO to
study the effects of whistleblower reward programs on
shareholder value and report to Congress on those effects
within 18 months of the bill's enactment.
Legislative History
H.R. 2483 was introduced by Representative Grimm on July
11, 2011, and referred to the Committee on Financial Services.
The bill has five cosponsors.
On May 11, 2011, the Subcommittee held a legislative
hearing on a draft version of H.R. 2483 entitled ``Legislative
Proposals to Address the Negative Consequences of the Dodd-
Frank Whistleblower Provisions.'' The Subcommittee received
testimony from the following witnesses: Mr. Robert J. Kueppers,
Deputy Chief Executive Officer, Regulatory and Public Policy
and Vice Chairman, Deloitte LLP; Ms. Marcia Narine, on behalf
of the U.S. Chamber of Commerce; Mr. Kenneth Daly, President
and CEO, National Association of Corporate Directors; Mr.
Douglas Lankler, Executive Vice President and Chief Compliance
Officer, Pfizer, Inc, on behalf of the Society of Corporate
Secretaries and Governance Professionals; and Professor
Geoffrey Rapp, Professor of Law, University of Toledo College
of Law.
On December 14, 2011, the Subcommittee met in open session
and ordered H.R. 2483, as amended, favorably reported to the
Committee by a record vote of 19 yeas and 14 nays.
SWAP EXECUTION FACILITY CLARIFICATION ACT
(H.R. 2586)
Summary
H.R. 2586, the Swap Execution Facility Clarification Act,
would direct the CFTC and the SEC to promulgate SEF rules that
would effectuate Congress's intent that SEFs serve as an
alternative to exchanges and provide an execution facility for
illiquid or thinly-traded swaps.
The Dodd-Frank Act requires that cleared swaps be executed
either on exchanges or on SEFs regulated by either the CFTC or
the SEC. The drafters of the Dodd-Frank Act intended for SEFs
to serve as an alternative to exchanges by providing an
execution facility for illiquid or thinly-traded swaps. The
CFTC's and SEC's proposed rules for SEFs, however, fail to
provide the flexibility necessary to execute illiquid or
thinly-traded swaps, and market participants have pointed out
that the proposed rules are overly prescriptive and would
inhibit the execution of swap trades. H.R. 2586 would prohibit
the CFTC and the SEC from requiring SEFs to have a minimum
number of participants receive bids or offers; to have market
participants request or receive more than one quote; to display
or delay bids or offers for a specific time period; and to
allow only voice-based and hybrid trading models for the
execution of block trades. The bill would also allow market
participants to use any means of interstate commerce to execute
swap transactions.
Legislative History
On July 19, 2011, H.R. 2586 was introduced by Subcommittee
on Capital Markets and Government Sponsored Enterprises
Chairman Scott Garrett and referred to the Committee on
Financial Services and the Committee on Agriculture. The bill
has seven cosponsors.
On October 14, 2011, the Subcommittee held a hearing on
H.R. 2586 entitled ``Legislative Proposals to Bring Certainty
to the Over-the-Counter Derivatives Market.'' The Subcommittee
received testimony from the following witnesses: Mr. Keith
Bailey, Managing Director, Fixed Income, Currencies and
Commodities, Barclays Capital, on behalf of the Institute of
International Bankers; Mr. Shawn Bernardo, Senior Managing
Director, Tullett Prebon, on behalf of the Wholesale Market
Brokers' Association Americas; Ms. Brenda Boultwood, Chief Risk
Officer and Senior Vice President, CE Risk Management Division
Office, Constellation Energy, on behalf of the Coalition of
Derivatives End-Users; Mr. James Cawley, CEO, Javelin Capital
Markets LLC; Mr. Kent Mason, Davis & Harman LLP, on behalf of
the American Benefits Council and the Committee on the
Investment of Employee Benefit Assets; and Mr. Conrad Voldstad,
Chief Executive Officer, International Swaps and Derivatives
Association.
On November 15, 2011, the Subcommittee on met in open
session and ordered the bill favorably reported to the
Committee by voice vote.
On November 30, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by voice vote.
TO EXEMPT INTER-AFFILIATE SWAPS FROM CERTAIN REGULATORY REQUIREMENTS
PUT IN PLACE BY THE DODD-FRANK WALL STREET REFORM AND CONSUMER
PROTECTION ACT
(H.R. 2779)
Summary
H.R. 2779, a bill to exempt inter-affiliate swaps from
certain regulatory requirements put in place by the Dodd-Frank
Wall Street Reform and Consumer Protection Act, would exempt
inter-affiliate trades from the margin, clearing, and reporting
requirements of the Dodd-Frank Act. Inter-affiliate swaps are
swaps executed between entities under common corporate
ownership. Inter-affiliate swaps allow corporate groups with
subsidiaries and affiliates to better manage risk by
transferring the risk of its affiliates to a single affiliate
and then executing swaps through that affiliate. Inter-
affiliate swaps do not pose a systemic risk because they do not
create additional counterparty exposures or increase the
interconnectedness between parties outside the corporate group.
Despite the differences between inter-affiliate swaps and swaps
between unrelated parties, the Dodd-Frank Act did not
distinguish between such swaps. H.R. 2779 would reduce the
costs of hedging for corporate groups by exempting inter-
affiliate trades from the margin, clearing and reporting
requirements.
Legislative History
On August 1, 2011, H.R. 2779 was introduced by
Representative Steve Stivers and referred to the Committee on
Financial Services and the Committee on Agriculture. The bill
has two cosponsors.
On October 14, 2011, the Subcommittee a hearing on H.R.
2779 entitled ``Legislative Proposals to Bring Certainty to the
Over-the-Counter Derivatives Market.'' The Subcommittee
received testimony from the following witnesses: Mr. Keith
Bailey, Managing Director, Fixed Income, Currencies and
Commodities, Barclays Capital, on behalf of the Institute of
International Bankers; Mr. Shawn Bernardo, Senior Managing
Director, Tullett Prebon, on behalf of the Wholesale Market
Brokers' Association Americas; Ms. Brenda Boultwood, Chief Risk
Officer and Senior Vice President, CE Risk Management Division
Office, Constellation Energy, on behalf of the Coalition of
Derivatives End-Users; Mr. James Cawley, CEO, Javelin Capital
Markets LLC; Mr. Kent Mason, Davis & Harman LLP, on behalf of
the American Benefits Council and the Committee on the
Investment of Employee Benefit Assets; and Mr. Conrad Voldstad,
Chief Executive Officer, International Swaps and Derivatives
Association.
On November 15, 2011, the Subcommittee met in open session
and ordered the bill favorably reported to the Committee by a
record vote of 23 yeas, 6 nays and 1 present.
On November 30, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by a record
vote of 53 yeas and 0 nays.
TO AMEND THE SECURITIES EXCHANGE ACT OF 1934 TO CLARIFY PROVISIONS
RELATING TO THE REGULATION OF MUNICIPAL ADVISORS, AND FOR OTHER
PURPOSES
(H.R. 2827)
Summary
On August 26, 2011, Representative Dold introduced H.R.
2827 to clarify Section 975 of the Dodd-Frank Act, which
requires municipal advisors to register with the SEC. H.R.
2827, as passed by the House of Representatives on September
19, 2012, would limit the scope of persons who must register
under Section 975 by exempting individuals who meet any of the
following criteria: (1) those who are not engaged for
compensation; (2) a broker, dealer, or municipal securities
dealer that serves or is seeking to serve as an underwriter or
placement agent, registered investment advisers, registered
swap dealers with respect to advice on a swap transaction, and
banks with respect to deposits, foreign exchange, other
products, or traditional banking or trust activities, and with
respect to the activities exempted for broker-dealers,
investment advisors and swap dealers; (3) insurance companies,
accountants, and attorneys; and (4) elected or appointed
members of state or local governmental bodies.
H.R. 2827 also limits the definition of ``investment
strategy'' to the investment of direct proceeds of municipal
securities offerings that have been identified, or that are or
should be known to be proceeds of such an offering. The bill
clarifies that merely acting as a broker or dealer, or
responding to a request for quotes or investment options,
acting as a custodian, providing generalized investment
information, or providing advice on matters other than the
investment of funds or financial products would not be
considered to be an investment strategy. H.R. 2827 also
clarifies the definition of ``solicitation of a municipal
entity,'' authorizes the Municipal Securities Rulemaking Board
to permit principal transactions in certain circumstances. H.R.
2827 also clarifies the scope of regulators' authority
regarding municipal advisors.
Legislative History
On July 20, 2012, the Subcommittee held a hearing entitled
``The Impact of the Dodd-Frank Act on Municipal Finance.'' This
hearing included a discussion of H.R. 2827. The Subcommittee
received testimony from the following witnesses: The Honorable
Jim Geringer, Chairman, Association of Governing Boards of
Universities and Colleges; Mr. Alan D. Polsky, Chair, Municipal
Securities Rulemaking Board; Dr. Robert Brooks, Professor of
Finance, Wallace D. Malone, Jr. Endowed Chair of Financial
Management, Department of Finance, The University of Alabama;
Mr. Robert Doty, President, AGFS; Mr. Tim Firestine, Chief
Administrative Officer, Montgomery County, MD and President
Elect, Government Finance Officers Association; Mr. Kenneth
Gibbs, President, Municipal Securities Group, Jefferies &
Company, Inc., on behalf of the Securities Industry and
Financial Markets Association; Ms. Christine H. Keck, Director,
Government Relations, Energy Systems Group; Mr. Albert C.
Kelly, Jr., President and Chief Executive Officer, SpiritBank,
and Chairman, American Bankers Association; and Mr. Mike Marz,
Vice Chairman, First Southwest, on behalf of the Bond Dealers
of America.
On August 1, 2012, the Subcommittee met in open session and
ordered the bill, as amended, favorably reported to the full
Committee by a record vote of 21 yeas, 10 nays and 1 present.
On September 12, 2012, the full Committee met in open
session and ordered the bill, as amended, favorably reported to
the House by a recorded vote of 60 yeas and 0 nay.
On September 19, 2012, the House agreed to a motion to
suspend the rules and pass H.R. 2827, as amended, by voice
vote.
ENTREPRENEUR ACCESS TO CAPITAL ACT
(H.R. 2930)
Summary
H.R. 2930, the Entrepreneur Access to Capital Act, would
create a new registration exemption from the Securities Act of
1933 for securities issued through internet platforms, also
known as ``crowdfunding.'' To qualify for this new exemption,
the issuer's offering cannot exceed $1 million, unless the
issuer provides investors with audited financial statements, in
which case the offering amount may not exceed $2 million. An
individual's investment must be equal to or less than the
lesser of $10,000 or 10 percent of the investor's annual
income. By exempting such offerings from registration with the
SEC and preempting state registration laws, H.R. 2930 will
enable entrepreneurs to more easily access capital from
potential investors across the United States to grow their
business and create jobs.
H.R. 2930 would require issuers and intermediaries to
fulfill a number of requirements in order to avail themselves
of this new exemption. These requirements, which include
notices to the SEC about the offerings and parties to the
offerings that will be shared with the States, are designed to
reduce the risk of fraud in these offerings and thereby protect
investors. The legislation also would allow for an unlimited
number of investors to invest via a crowdfunding offering and
preempts state securities registration laws. However, the
legislation does not restrict the States' ability to discover
and stop and prosecute fraudulent offerings.
Legislative History
On September 14, 2011, H.R. 2930 was introduced by
Representative Patrick McHenry and referred to the Committee on
Financial Services. The bill has five cosponsors.
On September 21, 2011, the Subcommittee held a hearing on
H.R. 2930 entitled ``Legislative Proposals to Facilitate Small
Business Capital Formation and Job Creation.'' The Subcommittee
received testimony from the following witnesses: Ms. Meredith
Cross, Director, Division of Corporation Finance, SEC; Mr.
Vincent Molinari, Founder and Chief Executive Officer, GATE
Technologies LLC; Mr. Barry E. Silbert, Founder and Chief
Executive Officer, SecondMarket, Inc.; Mr. Matthew H. Williams,
Chairman and President, Gothenburg State Bank, on behalf of the
American Bankers Association; Mr. William D. Waddill, Senior
Vice President and Chief Financial Officer, OncoMed
Pharmaceuticals, Inc., on behalf of the Biotechnology Industry
Organization; Mr. A. Heath Abshure, Commissioner, Arkansas
Securities Department on behalf of the North American
Securities Administrators; and Ms. Dana Mauriello, President,
ProFounder.
On October 5, 2011, the Subcommittee met in open session
and ordered H.R. 2930 favorably reported to the Committee by a
record vote of 18 yeas and 14 nays.
On October 26, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on October 31,
2011 (H. Rept. 112-262).
On November 3, 2011, the House considered H.R. 2930 and
passed the bill, with amendments, by a record vote of 407 yeas
and 17 nays.
On March 7, 2012, the House adopted H. Res. 572, which
provided that H.R. 3606 be amended by the Rules Committee Print
112-17, the Jumpstart Our Business Startups Act, which largely
reflects the text of H.R. 3606 and H.R. 2167 as reported by the
Committee on Financial Services, H.R. 1070, H.R. 2930, H.R.
2940 as passed the House, and H.R. 4088 as introduced.
On March 8, 2012, the House considered H.R. 3606 and passed
the bill, with amendments, by a record vote of 390 yeas and 23
nays.
On March 22, 2012, the Senate considered H.R. 3606 and
passed the bill, with amendments, by a record vote of 73 yeas
and 26 nays.
On March 27, 2012, the House considered the Senate
amendment to H.R. 3606 under suspension of the rules, and
agreed to the amendment by a record vote of 380 yeas and 41
nays.
On April 5, 2012, H.R. 3606 was signed by the President and
became Public Law No. 112-106.
ACCESS TO CAPITAL FOR JOB CREATORS ACT
(H.R. 2940)
Summary
H.R. 2940, the Access to Capital for Job Creators Act,
would make the exemption under the SEC's Regulation D Rule 506
available to issuers even if the securities are marketed
through a general solicitation or advertising so long as the
purchasers are ``accredited investors.'' The legislation would
allow companies greater access to accredited investors and to
new sources of capital to grow and create jobs, without putting
less sophisticated investors at risk. To ensure that only
accredited investors purchase the securities, H.R. 2940
requires the SEC to write rules on how an issuer would verify
that the purchasers of securities are accredited investors.
The Securities Act of 1933 requires that any offer to sell
securities must either be registered with the SEC or meet an
exemption. Regulation D Rule 506 is an exemption that allows
companies to raise capital as long as they do not market their
securities through general solicitations or advertising. This
prohibition on general solicitation and advertising has been
interpreted to mean that potential investors must have an
existing relationship with the company before they can be
notified that unregistered securities are available for
purchase. Requiring potential investors to have an existing
relationship with the company significantly limits the pool of
potential investors and severely hampers the ability of small
companies to raise capital and create jobs.
Legislative History
On September 15, 2011, H.R. 2940 was introduced by
Representative Kevin McCarthy and referred to the Committee on
Financial Services. The bill has two cosponsors.
On September 21, 2011, the Subcommittee held a hearing on
H.R. 2940 entitled ``Legislative Proposals to Facilitate Small
Business Capital Formation and Job Creation.'' The Subcommittee
received testimony from the following witnesses: Ms. Meredith
Cross, Director, Division of Corporation Finance, SEC; Mr.
Vincent Molinari, Founder and Chief Executive Officer, GATE
Technologies LLC; Mr. Barry E. Silbert, Founder and Chief
Executive Officer, SecondMarket, Inc.; Mr. Matthew H. Williams,
Chairman and President, Gothenburg State Bank, on behalf of the
American Bankers Association; Mr. William D. Waddill, Senior
Vice President and Chief Financial Officer, OncoMed
Pharmaceuticals, Inc., on behalf of the Biotechnology Industry
Organization; Mr. A. Heath Abshure, Commissioner, Arkansas
Securities Department on behalf of the North American
Securities Administrators; and Ms. Dana Mauriello, President,
ProFounder.
On October 5, 2011, the Subcommittee met in open session
and ordered H.R. 2940, as amended, favorably reported to the
Committee by voice vote.
On October 26, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on October 31,
2011 (H. Rept. 112-263).
On November 3, 2011, the House considered H.R. 2940 and
passed the bill by a record vote of 413 yeas and 11 nays.
On March 7, 2012, the House adopted H. Res. 572, which
provided that H.R. 3606 be amended by the Rules Committee Print
112-17, the Jumpstart Our Business Startups Act, which largely
reflects the text of H.R. 3606 and H.R. 2167 as reported by the
Committee on Financial Services, H.R. 1070, H.R. 2930, H.R.
2940 as passed the House, and H.R. 4088 as introduced.
On March 8, 2012, the House considered H.R. 3606 and passed
the bill, with amendments, by a record vote of 390 yeas and 23
nays.
On March 22, 2012, the Senate considered H.R. 3606 and
passed the bill, with amendments, by a record vote of 73 yeas
and 26 nays.
On March 27, 2012, the House considered the Senate
amendment to H.R. 3606 under suspension of the rules, and
agreed to the amendment by a record vote of 380 yeas and 41
nays.
On April 5, 2012, H.R. 3606 was signed by the President and
became Public Law No. 112-106.
RETIREMENT INCOME PROTECTION ACT OF 2011
(H.R. 3045)
Summary
H.R. 3045, the Retirement Income Protection Act of 2011,
would ensure that swap dealers and Employee Retirement Income
Security Act of 1978 (ERISA) benefit plans can engage in swap
transactions without swap dealers becoming ``fiduciaries'' to
ERISA plans.
Employee benefit plans subject to the ERISA regularly
engage in swap transactions to hedge against market risks,
reduce volatility, and make funding obligations more
predictable. Under Title VII of the Dodd-Frank Act, an ERISA
employee benefit plan is deemed a ``special entity,'' and
requires certain business conduct standards when transacting
with swap dealers. Specifically, swap dealers have a duty to
act in the ``best interests'' of special entities if they act
as an advisor to the special entity. Because ERISA prohibits
transactions between fiduciaries and ERISA plan sponsors, Title
VII could forbid swap dealers from entering into swaps with
ERISA plans, which would make it impossible for ERISA plans to
engage in swap transactions.
H.R. 3045 would amend ERISA so that registered swap dealers
or security-based swap dealers will not be considered
fiduciaries to employee benefit plans by performing acts or
services for that plan, and would remove employee benefit plans
from the definition of ``special entity'' in Title VII of the
Dodd-Frank Act. The bill would clarify the definition of
``investment advisor'' by setting a standard for an entity to
be ``independent'' and therefore able to serve as an advisor to
a special entity. H.R. 3045 would also make clear that the duty
of the swap dealer to act in the ``best interests'' of a
special entity does not create a fiduciary duty.
Legislative History
On September 23, 2011, H.R. 3045 was introduced by
Representative Francisco ``Quico'' Canseco and referred to the
Committee on Financial Services, the Committee on Agriculture,
and the Committee on Education and the Workforce. The bill has
one cosponsor.
On October 14, 2011, the Subcommittee held a legislative
hearing on H.R. 3045 entitled ``Legislative Proposals to Bring
Certainty to the Over-the-Counter Derivatives Market.'' The
Subcommittee received testimony from the following witnesses:
Mr. Keith Bailey, Managing Director, Fixed Income, Currencies
and Commodities, Barclays Capital, on behalf of the Institute
of International Bankers; Mr. Shawn Bernardo, Senior Managing
Director, Tullett Prebon, on behalf of the Wholesale Market
Brokers' Association Americas; Ms. Brenda Boultwood, Chief Risk
Officer and Senior Vice President, CE Risk Management Division
Office, Constellation Energy, on behalf of the Coalition of
Derivatives End-Users; Mr. James Cawley, CEO, Javelin Capital
Markets LLC; Mr. Kent Mason, Davis & Harman LLP, on behalf of
the American Benefits Council and the Committee on the
Investment of Employee Benefit Assets; and Mr. Conrad Voldstad,
Chief Executive Officer, International Swaps and Derivatives
Association.
On November 15, 2011, the Subcommittee met in open session
and ordered the bill favorably reported to the Committee by a
record vote of 19 yeas and 14 nays.
SMALL COMPANY JOB GROWTH AND REGULATORY RELIEF ACT OF 2011
(H.R. 3213)
Summary
H.R. 3213, the Small Company Job Growth and Regulatory
Relief Act of 2011, would expand the exemption from Section
404(b) of the Sarbanes-Oxley Act.
Section 404(b) of the Sarbanes-Oxley Act requires that the
auditor of a publicly-held company attest to and report on
management's assessment of its internal controls. In 2007, the
SEC provided ``smaller reporting companies'' with exemptions
from (or alternatives to) Section 404(b). A ``public'' company
qualifies as a ``smaller reporting company'' if its market
capitalization is less than $75 million, or--if its market
capitalization cannot be determined--less than $50 million in
revenue.
H.R. 3213 would increase the market capitalization
threshold for a full 404(b) exemption from $75 million to $350
million.
Legislative History
On October 14, 2011, H.R. 3213 was introduced by
Representative Stephen Fincher and referred to the Committee on
Financial Services. The bill has 17 cosponsors.
On September 21, 2011, the Subcommittee held a legislative
hearing on a draft version of H.R. 3213 entitled ``Legislative
Proposals to Facilitate Small Business Capital Formation and
Job Creation.'' The Subcommittee received testimony from the
following witnesses: Ms. Meredith Cross, Director, Division of
Corporation Finance, SEC; Mr. Vincent Molinari, Founder and
Chief Executive Officer, GATE Technologies LLC; Mr. Barry E.
Silbert, Founder and Chief Executive Officer, SecondMarket,
Inc.; Mr. Matthew H. Williams, Chairman and President,
Gothenburg State Bank, on behalf of the American Bankers
Association; Mr. William D. Waddill, Senior Vice President and
Chief Financial Officer, OncoMed Pharmaceuticals, Inc., on
behalf of the Biotechnology Industry Organization; Mr. A. Heath
Abshure, Commissioner, Arkansas Securities Department on behalf
of the North American Securities Administrators; and Ms. Dana
Mauriello, President, ProFounder.
On October 5, 2011, the Subcommittee met in open session
and ordered the draft version of H.R. 3213, as amended,
favorably reported to the Committee by a record vote of 18 yeas
and 14 nays.
SWAP JURISDICTION CERTAINTY ACT
(H.R. 3283)
Summary
H.R. 3283, the Swap Jurisdiction Certainty Act, would
clarify Congress's intent in limiting the extraterritorial
application of Title VII of the Dodd-Frank Act. H.R. 3283 would
make clear that (1) Title VII's capital requirements do not
apply to non-U.S. swap dealers as long as the non-U.S. swap
dealer's home country is a signatory to the Basel Capital
Accords; (2) swap transactions between swap dealers and their
affiliates are subject only to Title VII's reporting
requirements; and (3) swap transactions between non-U.S. swap
dealers and non-U.S. persons are outside the scope of Title
VII's transaction-level requirements. H.R. 3283 would also
strengthen the anti-evasion authority of the SEC and preserves
the prudential regulators' non-Title VII authority over
security-based swap dealers.
Legislative History
On October 31, 2011, H.R. 3283 was introduced by
Representative James Himes and referred to the Committee on
Financial Services. The bill has 15 cosponsors.
On February 8, 2012, the Subcommittee held a legislative
hearing on H.R. 3283 entitled ``Limiting the Extraterritorial
Impact of Title VII of the Dodd-Frank Act.'' The Subcommittee
received testimony from the following witnesses: Mr. Chris
Allen, Managing Director, Barclays Capital; Dr. Chris Brummer,
Professor of Law, Georgetown University; Mr. Don Thompson,
Managing Director and Associate General Counsel, JPMorgan Chase
& Co.; and Mr. Luke Zubrod, Director, Chatham Financial.
On March 27, 2012, the Committee met in open session and
ordered H.R. 3283, as amended, favorably reported to the House
by a record vote of 41 yeas and 18 nays. The Committee Report
was filed on May 11, 2012 (H. Rept. 112-477, Part 1).
REOPENING AMERICAN CAPITAL MARKETS TO EMERGING GROWTH COMPANIES ACT OF
2011
(H.R. 3606)
Summary
H.R. 3606, the Reopening American Capital Markets to
Emerging Growth Companies Act of 2011, was introduced to
promote American job creation and further economic growth by
making it easier for more companies to access capital markets
through the creation of a new category of issuer known as an
EGC. An EGC will lose its status at the end of five years, or
earlier, if it reaches $1 billion in annual gross revenue or
becomes a ``large accelerated filer,'' which is a company with
over $700 million in public float. The law adapts the SEC's
scaled regulations for smaller companies by more slowly phasing
in regulations that impose high costs on issuers, without
compromising core investor protections or disclosures.
Legislative History
H.R. 3606 was introduced by Representative Stephen Fincher
on December 8, 2011 and referred to the Committee on Financial
Services. The bill has 53 cosponsors.
On December 15, 2011, the Subcommittee held a legislative
hearing on H.R. 3606 entitled ``H.R. 3606, the Reopening
American Capital Markets to Emerging Growth Companies Act of
2011.'' The Subcommittee received testimony from the following
witnesses: Mr. Joseph Brantuk, Head, U.S. New Listings and IPOs
& Vice President, NASDAQ OMX; Mr. Steven R. LeBlanc, Senior
Managing Director of Private Markets, Teacher Retirement System
of Texas; Ms. Kate Mitchell, Chair, Initial Public Offering
Task Force, Former President of the National Venture Capital
Association; and Managing Director & Co-Founder, Scale Venture
Partners; and Mr. Mike Selfridge, Head of Regional Banking,
Silicon Valley Bank.
On February 16, 2012, the Committee met in open session and
ordered H.R. 3606, as amended, favorably reported to the House
by a record vote of 54 yeas and 1 nay. The Committee report was
filed on March 1, 2012 (H. Rept. 112-406) and Part 2 was filed
on March 6, 2012 (H. Rept. 112-406, Part 2).
On March 7, 2012, the House adopted H. Res. 572, which
provided that H.R. 3606 be amended by the Rules Committee Print
112-17, the Jumpstart Our Business Startups Act, which largely
reflects the text of H.R. 3606 and H.R. 2167 as reported by the
Committee on Financial Services, H.R. 1070, H.R. 2930, H.R.
2940 as passed the House, and H.R. 4088 as introduced.
On March 8, 2012, the House considered H.R. 3606 and passed
the bill, with amendments, by a record vote of 390 yeas and 23
nays.
On March 22, 2012, the Senate considered H.R. 3606 and
passed the bill, with amendments, by a record vote of 73 yeas
and 26 nays.
On March 27, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 3606 with the Senate amendment by a
record vote of 380 yeas and 41 nays.
On April 5, 2012, H.R. 3606 was signed by the President and
became Public Law No. 112-106.
PRIVATE MORTGAGE MARKET INVESTMENT ACT\2\
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\2\Previously listed as a discussion draft entitled ``Private
Mortgage Market Investment Act.''
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(H.R. 3644)
Summary
H.R. 3644, the Private Mortgage Market Investment Act,
would establish uniform securitization standards to help create
a new securitization market to replace the secondary-mortgage
market dominated by the GSEs Fannie Mae and Freddie Mac. The
uniform securitization standards set forth in the bill would
foster transparency and legal certainty, attracting investors
to the U.S. mortgage market without creating a government
guarantee that puts taxpayers at risk for bailing out investors
in the multi-trillion dollar mortgage market.
Legislative History
On December 13, 2011, H.R. 3644 was introduced by
Subcommittee on Capital Markets and Government Sponsored
Enterprises Chairman Scott Garrett and referred to the
Committee on Financial Services. The bill has six cosponsors.
On November 3, 2011, the Subcommittee held a legislative
hearing on a draft of the bill entitled ``H.R. ___, the Private
Mortgage Market Investment Act.'' The Subcommittee received
testimony from the following witnesses: Mr. Edward J. DeMarco,
Acting Director, Federal Housing Finance Administration; Mr.
Tom Deutsch, Director, American Securitization Forum; Mr.
Martin Hughes, President and Chief Executive Officer, Redwood
Trust, Inc.; Ms. Janneke Ratcliffe, Executive Director, Center
for Community Capital, University of North Carolina at Chapel
Hill; and Mr. Peter Wallison, Arthur Burns Fellow in Financial
Policy Studies, American Enterprise Institute.
On December 7, 2011, the Subcommittee held a legislative
hearing on a draft of the bill entitled ``H.R. ___, the Private
Mortgage Market Investment Act, Part 2.'' The Subcommittee
received testimony from the following witnesses: Mr. Chris
Katopis, Executive Director, Association of Mortgage Investors;
Dr. Mark Calabria, Director of Financial Regulation Studies,
Cato Institute; Mr. Mark Fleming, Chief Economist, CoreLogic;
Mr. David H. Stevens, President and CEO, Mortgage Bankers
Association; Mr. Tom Salomone, Real Estate II, Inc., on behalf
of the National Association of Realtors; and Dr. William Poole,
Distinguished Fellow in Residence, University of Delaware.
On December 14, 2011, the Subcommittee met in open session
and ordered a discussion draft of H.R. 3644, as amended,
favorably reported to the Committee by a record vote of 18 yeas
and 15 nays.
IMPROVING SECURITY FOR INVESTORS AND PROVIDING CLOSURE ACT OF 2012
(H.R. 4002)
Summary
H.R. 4002, the Improving Security for Investors and
Providing Closure Act of 2012, would amend the SIPA to
authorize the SIPC to propose a settlement to investors in
cases in which the SEC and SIPC disagree on whether coverage
under the SIPA is appropriate. The settlement offer cannot be
greater than SIPA's $500,000 protection limit, and the
settlement offer must be uniform for all investors, regardless
of the size of their claims. Investors would have 180 days to
individually accept the settlement offered by SIPC. Investors
who settle with SIPC would be prohibited from making further
claims against SIPC.
Legislative History
On February 9, 2012, H.R. 4002 was introduced by
Representative Bill Cassidy and referred to the Committee on
Financial Services. The bill has 12 cosponsors.
On March 7, 2012, the Subcommittee held a legislative
hearing on H.R. 4002 entitled ``The Securities Investor
Protection Corporation: Past, Present, and Future.'' The
Subcommittee received testimony from the following witnesses:
The Honorable David Vitter, United States Senate; Mr. Stephen
Harbeck, President & Chief Executive Officer, Securities
Investor Protection Corporation; Ms. Sharon Bowen, Acting
Chairman of the Board, Securities Investor Protection
Corporation; Mr. Joe Borg, Director, Alabama Securities
Commission; Mr. Steven Caruso, Partner, Maddox Hargett &
Caruso, P.C.; Mr. Ira Hammerman, Senior Managing Director and
General Counsel, Securities Industry and Financial Markets
Association; and Mr. Ron Stein, President, Network for Investor
Action and Protection.
TO AMEND THE SECURITIES EXCHANGE ACT OF 1934 AND THE COMMODITY EXCHANGE
ACT TO REPEAL THE INDEMNIFICATION REQUIREMENTS FOR REGULATORY
AUTHORITIES TO OBTAIN ACCESS TO SWAP DATA REQUIRED TO BE PROVIDED BY
SWAPS ENTITIES UNDER SUCH ACTS.
(H.R. 4235)
Summary
H.R. 4235, a bill to amend the Securities Exchange Act of
1934 and the Commodity Exchange Act to repeal the
indemnification requirements for regulatory authorities to
obtain access to swap data required to be provided by swaps
entities under such Acts, would repeal the indemnification
provisions in Sections 725, 728, and 763 of the Dodd-Frank Act
to increase market transparency, facilitate global regulatory
cooperation, and ensure that U.S. regulators have access to
necessary swaps data from foreign data repositories,
derivatives clearing organizations, and regulators.
Legislative History
On March 21, 2012, H.R. 4235 was introduced by
Representative Robert Dold and referred to the Committee on
Financial Services. The bill has eight cosponsors.
On March 21, 2012, the Subcommittee held a legislative
hearing on a draft of the bill entitled ``H.R. ___, the Swap
Data Repository and Clearinghouse Indemnification Correction
Act of 2012.'' The Subcommittee received testimony from the
following witnesses: Mr. Ethiopis Tafara, Director, Office of
International Affairs, SEC; Mr. Daniel Berkovitz, General
Counsel, CFTC; and Mr. Donald Donahue, Chief Executive Officer,
The Depository Trust & Clearing Corporation.
On March 27, 2012, the Committee met in open session and
ordered H.R. 4235, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on May 9, 2012
(H. Rept. 112-471, Part 1).
THE FOSTERING INNOVATION ACT
(H.R. 6161)
Summary
The SEC defines the filer status of public companies based
on their public float. A ``large accelerated filer'' is a
company with over $700 million public float, and an
``accelerated filer'' is a company with public float between
$75 million and $700 million.
Companies that do not meet either of those definitions are
``non-accelerated filers,'' and receive various forms of
regulatory relief. These companies are exempt from SOX Section
404(b)'s requirement that an external auditor attest to the
company's internal controls and Item 402 of Regulation S-K.
Instead, non-accelerated filers must (1) provide financial
statements for two years prior to going public (instead of
three years for larger companies); (2) disclose executive
compensation for three named executive officers (instead of
five for larger companies); and (3) file their annual reports
within 90 days after the end of the fiscal year (instead of 60
or 45 days for large companies).
To allow more small companies to receive regulatory relief
and incentivize them to access the public markets,
Representative Michael Fitzpatrick introduced H.R. 6161, the
``Fostering Innovation Act,'' on July 19, 2012. H.R. 6161
requires that the SEC amend its definitions so that companies
that either have a public float of less than $250 million or
have between $250 million and $700 million in public float but
less than $100 million in annual revenue are deemed ``non-
accelerated filers'' and able to take advantage of the
regulatory relief discussed above.
Legislative History
On July 26, 2012, the Subcommittee held a hearing entitled
``The 10th Anniversary of the Sarbanes-Oxley Act.'' The hearing
examined H.R. 6161, the ``Fostering Innovation Act.'' The
Subcommittee received testimony from the following witnesses:
Mr. John Berlau, Senior Fellow for Finance and Access to
Capital, Competitive Enterprise Institute; Mr. Mercer E.
Bullard, Jessie D. Puckett, Jr., Lecturer and Associate
Professor of Law, The University of Mississippi School of Law;
Mr. John Coffee, Adolf A. Berle Professor of Law, Columbia
University Law School; Mr. Mallory Factor, President, Mallory
Factor Inc., and Professor, The Citadel; Mr. Michael J.
Gallagher, Chairman, Professional Practice Executive Committee,
Center for Audit Quality; Mr. Jeffrey Hatfield, President and
Chief Executive Officer, Vitae Pharmaceuticals on behalf of the
Biotechnology Industry Organization; and Ms. Marie Hollein,
President and Chief Executive Officer, Financial Executives
International.
On August 1, 2012, the Subcommittee met in open session and
ordered the bill favorably reported to the full Committee by a
record vote of 18 yeas and 15 nays.
INVESTMENT ADVISER OVERSIGHT ACT
Summary
A discussion draft offered by Chairman Spencer Bachus, the
Investment Adviser Oversight Act, would adopt one of the three
options presented to Congress by the SEC to improve the SEC's
ability to examine registered investment advisers. The three
options were presented to Congress as part of a study mandated
by Section 914 of the Dodd-Frank Act, which required the SEC to
study ``the need for enhanced examination and enforcement
resources for investment advisers'' and report its findings to
the House Financial Services and Senate Banking Committees.
The discussion draft would amend the Investment Advisers
Act of 1940 (Advisers Act) to provide for the creation of
national investment adviser associations (NIAAs), registered
with and overseen by the SEC. Investment advisers that conduct
business with retail customers would have to become members of
a registered NIAA. The SEC would have the authority to approve
the registration of any NIAA, and the SEC would be required to
determine whether an NIAA has the capacity to carry out the
purposes of the Advisers Act and to enforce compliance by its
members and their employees with the Advisers Act, the SEC's
rules under the Act, and the NIAA's rules before the investment
advisers association can register as a NIAA.
Legislative History
On September 13, 2011, the Subcommittee held a legislative
hearing on the discussion draft, entitled ``Ensuring
Appropriate Regulatory Oversight of Broker-Dealers and
Legislative Proposals to Improve Investment Adviser
Oversight.'' The Subcommittee received testimony from the
following witnesses: Mr. William E. Dwyer III, Chairman,
Financial Services Institute; Mr. Ken Ehinger, President and
Chief Executive Officer, M Holdings Securities, Inc., on behalf
of the Association for Advanced Life Underwriting; Mr. Terry
Headley, President, National Association of Insurance and
Financial Advisors; Mr. Steven D. Irwin, Commissioner,
Pennsylvania Securities Commission, on behalf of the North
American Securities Administrators Association; Mr. Richard G.
Ketchum, Chairman and Chief Executive Officer, Financial
Industry Regulatory Authority; Ms. Barbara Roper, Director of
Investor Protection, Consumer Federation of America; Mr. John
G. Taft, Chief Executive Officer, RBC Wealth Management, on
behalf of the Securities Industry and Financial Markets
Association; and Mr. David Tittsworth, Executive Director/
Executive Vice President, Investment Adviser Association.
TO AMEND THE SARBANES-OXLEY ACT OF 2002 TO PROHIBIT THE PUBLIC COMPANY
ACCOUNTING OVERSIGHT BOARD FROM REQUIRING PUBLIC COMPANIES TO USE
SPECIFIC AUDITORS OR REQUIRE THE USE OF DIFFERENT AUDITORS ON A
ROTATING BASIS.
Summary
The draft bill would amend the Sarbanes-Oxley Act to
prohibit the Public Company Accounting Oversight Board from
requiring public companies to rotate their audit firms.
Legislative History
On March 28, 2012, the Subcommittee held a legislative
hearing on the discussion draft entitled ``Accounting and
Auditing Oversight: Pending Proposals and Emerging Issues
Confronting Regulators, Standard Setters and the Economy.'' The
Subcommittee received testimony from the following witnesses:
Mr. James L. Kroeker, Chief Accountant, SEC; Mr. James R. Doty,
Chairman, Public Company Accounting Oversight Board; Ms. Leslie
Seidman, Chairman, Financial Accounting Standards Board; Mr.
Robert Attmore, Chairman, Governmental Accounting Standards
Board; Mr. Joseph Carcello, Professor, Department of Accounting
and Information Management, The University of Tennessee; Mr.
Gary R. Kabureck, Vice President and Chief Accounting Officer,
Xerox Corporation, on behalf of Financial Executives
International; Mr. Barry Melancon, President and Chief
Executive Officer, American Institute of CPAs; and Mr. Tom
Quaadman, Vice President, Center for Capital Markets
Competitiveness, U.S. Chamber of Commerce.
THE LIQUIDITY ENHANCEMENT FOR SMALL PUBLIC COMPANIES ACT
Summary
A discussion draft offered by Representative Patrick
McHenry, the ``Liquidity Enhancement for Small Public Companies
Act,'' would ensure that adequate liquidity exists for smaller
issuers. The proposal seeks to promote the development of
market quality incentive programs by permitting issuers,
exchanges, or any other company approved by the Securities and
Exchange Commission or an exchange to provide financial
incentives to market makers that adhere to standards of market
quality established by an exchange.
Legislative History
On June 20, 2012, the Subcommittee held a hearing entitled
``Market Structure: Ensuring Orderly, Efficient, Innovative and
Competitive Markets for Issuers and Investors.'' This hearing
included a discussion of the ``Liquidity Enhancement for Small
Public Companies Act.'' The Subcommittee received testimony
from the following witnesses: Mr. Daniel Coleman, Chief
Executive Officer, GETCO; Mr. Kevin Cronin, Global Head of
Equity Trading, INVESCO, on behalf of the Investment Company
Institute; Mr. Joe Gawronski, President and Chief Operating
Officer, Rosenblatt Securities Inc.; Mr. Thomas Joyce, Chairman
and Chief Executive Officer, Knight Capital Group; Mr. Duncan
Niederauer, Chief Executive Officer, NYSE-Euronext; Mr. Cameron
Smith, President, Quantlab Financial LLC; Mr. Dan Mathisson,
Managing Director, Credit Suisse Securities LLC; Mr. William
O'Brien, Chief Executive Officer, Direct Edge; Mr. Jeffrey
Solomon, Chief Executive Officer, Cowen and Company; Mr. Jim
Toes, President and Chief Executive Officer, Security Traders
Association; and Mr. David Weild, Senior Advisor, Capital
Markets Group, Grant Thornton, and Chairman and Chief Executive
Officer, Capital Markets Advisory Partners.
Subcommittee Oversight Activities
GOVERNMENT SPONSORED ENTERPRISES
On February 9, 2011, the Subcommittee held a hearing
entitled ``GSE Reform: Immediate Steps to Protect Taxpayers and
End the Bailout.'' The hearing examined proposals for reforming
the housing finance system and reducing the role of government
in subsidizing the mortgage market. The Subcommittee received
testimony from the following witnesses: Mr. Mark Calabria,
Director of Financial Regulation Studies, Cato Institute; Mr.
Anthony Randazzo, Director, Economic Research, Reason
Foundation; Mr. Alex Pollock, Resident Fellow, American
Enterprise Institute; and Ms. Sarah Wartell, Executive Vice
President, Center for American Progress.
SECURITIZATION AND RISK RETENTION
On April 14, 2011, the Subcommittee held a hearing entitled
``Understanding the Implications and Consequences of the
Proposed Rule on Risk Retention.'' The hearing focused on the
proposed rule to implement Section 941 issued by HUD, the FDIC,
the Federal Reserve Board, the SEC, the FHFA, and the OCC in
March 2011, particularly its implications for the availability
of affordable mortgage credit and the impact the proposed rule
would have on other asset classes that did not contribute to
the financial crisis. The Subcommittee received testimony from
the following witnesses: Mr. Scott Alvarez, General Counsel,
Federal Reserve Board; Ms. Meredith Cross, Director of the
Division of Corporation Finance, SEC; Mr. Michael Krimminger,
General Counsel, FDIC; Ms. Julie Williams, First Senior Deputy
Comptroller and Chief Counsel, OCC; Mr. Bob Ryan, Acting
Commissioner, FHA; Mr. Patrick Lawler, Chief Economist and
Associate Director, Office of Policy Analysis and Research,
FHFA; Mr. Henry V. Cunningham, Jr., President, Cunningham &
Company, on behalf of the Mortgage Bankers Association; Mr. Tom
Deutsch, Executive Director, American Securitization Forum; Mr.
J. Christopher Hoeffel, Managing Director, Investcorp
International Inc., on behalf of the CRE Finance Council; Mr.
Kevin D. Schneider, President & CEO, U.S. Mortgage Insurance,
Genworth Financial, on behalf of the Mortgage Insurance
Companies of America; Mr. Bram Smith, Executive Director, Loan
Syndications and Trading Association; and Ms. Ellen Harnick,
Senior Policy Counsel, Center for Responsible Lending.
OVERSIGHT AND RESTRUCTURING OF THE SECURITIES AND EXCHANGE COMMISSION
On March 10, 2011, the Subcommittee held a hearing entitled
``Oversight of the Securities and Exchange Commission's
Operations, Activities, Challenges and FY 2012 Budget
Request.'' The Subcommittee received testimony from the
following witnesses: Mr. Robert Cook, Director, Division of
Trading and Markets, SEC; Ms. Meredith Cross, Director,
Division of Corporation Finance, SEC; Mr. Robert Khuzami,
Director, Division of Enforcement, SEC; Ms. Eileen Rominger,
Director, Division of Investment Management, SEC; and Mr. Carlo
di Florio, Director, Office of Compliance Inspections and
Examinations, SEC.
On June 24, 2011, the Subcommittee held a hearing entitled
``Oversight of the Mutual Fund Industry: Ensuring Market
Stability and Investor Confidence.'' The hearing examined the
SEC's regulation of the mutual fund industry; the SEC's
response to the financial crisis and the impact of the crisis
on money market mutual funds; proposals to change the valuation
of money market mutual funds; the SEC's proposal to improve
distribution fees, also known as ``12b-1 fees;'' and the impact
of the SEC's proxy rules adopted in 2010, which would permit
shareholders to place nominees for directors on a company's
proxy statement; and other issues of interest to mutual fund
providers. The Subcommittee received testimony from the
following witnesses: Mr. Mercer Bullard, Associate Professor,
University of Mississippi School of Law; Mr. Andrew ``Buddy''
Donohue, Partner, Morgan Lewis & Bockius LLP; Mr. Scott Goebel,
Senior Vice President, Secretary, and General Counsel, Fidelity
Management & Research Company; Ms. Heidi Stam, Managing
Director and General Counsel, The Vanguard Group; Mr. Paul
Schott Stevens, President & CEO, Investment Company Institute;
and Mr. Rene Stulz, Everett D. Reese Chair of Banking and
Monetary Economics, The Ohio State University.
On April 25, 2012, the Subcommittee held a hearing entitled
``Oversight of the U.S. Securities and Exchange Commission.''
This hearing examined the following topics: the regulatory
priorities for the SEC in 2012; the SEC's FY 2013 budget
request; the SEC's ongoing efforts to comply with Section 967
of the Dodd-Frank Act, relating to organizational reform of the
SEC; the most recent report issued by GAO, GAO-12-424R,
entitled, ``Management Report: Improvements Needed in SEC's
Internal Controls and Accounting Procedures''; pending SEC rule
proposals mandated by the Dodd-Frank Act; the SEC's plans to
propose new rules for money market mutual funds; and the SEC's
equity and options market structure initiatives. The
Subcommittee received testimony from the Honorable Mary
Schapiro, Chairman of the SEC, who was the hearing's sole
witness.
MORTGAGE BACKED SECURITIES MARKET
On September 7, 2011, the Subcommittee held a field hearing
in New York, New York entitled ``Facilitating Continued
Investor Demand in the U.S. Mortgage Market Without a
Government Guarantee.'' The hearing examined the conditions
necessary for a private sector mortgage market to develop and
thrive in the United States. Proposals to facilitate investor
demand for private-label residential mortgage backed securities
were also considered. The Subcommittee received testimony from
the following witnesses: Mr. Martin Hughes, President and CEO,
Redwood Trust, Inc.; Mr. Chris Katopis, Executive Director,
Association of Mortgage Investors; Mr. Joshua Rosner, Managing
Director, Graham Fisher & Co.; and Mr. Ajay Rajadhyaksha,
Managing Director, Barclays Capital.
VOLCKER RULE
On January 18, 2012, the Subcommittee on Financial
Institutions and Consumer Credit and the Subcommittee on
Capital Markets and Government Sponsored Enterprises held a
joint hearing entitled ``Examining the Impact of the Volcker
Rule on Markets, Businesses, Investors and Job Creation.'' The
hearing examined regulators' efforts to implement Section 619
of the Dodd-Frank Act, popularly known as the Volcker Rule, and
the effect of the Volcker Rule on the U.S. economy, jobs,
businesses and investors. The Volcker Rule directs regulators
to promulgate rules prohibiting bank holding companies and
their affiliates from engaging in proprietary trading and
sponsoring and investing in hedge funds and private equity
funds. The Subcommittee received testimony from the following
witnesses: The Honorable Daniel K. Tarullo, Governor, Board of
Governors of the Federal Reserve System; The Honorable Mary
Schapiro, Chairman, SEC; The Honorable Gary Gensler, Chairman,
CFTC; The Honorable Martin J. Gruenberg, Acting Chairman, FDIC;
Mr. John Walsh, Acting Comptroller of the Currency, OCC; Mr.
Anthony J. Carfang, Partner, Treasury Strategies, on behalf of
the U.S. Chamber of Commerce; Mr. Douglas J. Elliott, Fellow,
Economic Studies, The Brookings Institution; Mr. Scott Evans,
Executive Vice President, President of Asset Management, TIAA-
CREF; Prof. Simon Johnson, Ronald A. Kurtz (1954) Professor of
Entrepreneurship, MIT Sloan School of Management; Mr. Alexander
Marx, Head of Global Bond Trading, Fidelity Investments; Mr.
Douglas J. Peebles, Chief Investment Officer and Head of Fixed
Income, AllianceBernstein, on behalf of the Securities Industry
and Financial Markets Association Asset Management Group; Mr.
Mark Standish, President and Co-CEO, RBC Capital Markets, on
behalf of the Institute of International Bankers; and Mr.
Wallace Turbeville, on behalf of the Americans for Financial
Reform.
SECURITIES INVESTOR PROTECTION CORPORATION
On March 7, 2012, the Subcommittee held a hearing entitled
``The Securities Investor Protection Corporation: Past,
Present, and Future.'' This hearing examined pending and
potential liquidations by the SIPC, as well as the Report and
Recommendations of the SIPC Modernization Task Force, which was
created by SIPC in 2010 to review the SIPA, assess SIPC's
operations and policies, and propose reforms to modernize the
SIPA and the SIPC. The Subcommittee received testimony from the
following witnesses: The Honorable David Vitter, United States
Senator; Mr. Stephen Harbeck, President & CEO, Securities
Investor Protection Corporation; Ms. Sharon Bowen, Acting
Chairman of the Board, Securities Investor Protection
Corporation; Mr. Joe Borg, Director, Alabama Securities
Commission; Mr. Steven Caruso, Partner, Maddox Hargett &
Caruso, P.C.; Mr. Ira Hammerman, Senior Managing Director and
General Counsel, Securities Industry and Financial Markets
Association; and Mr. Ron Stein, President, Network for Investor
Action and Protection.
OVERSIGHT OF THE ACCOUNTING AND AUDITING INDUSTRY
On March 28, 2012, the Subcommittee held a hearing entitled
``Accounting and Auditing Oversight: Pending Proposals and
Emerging Issues Confronting Regulators, Standard Setters and
the Economy.'' This hearing examined the state of the
accounting and auditing profession, including the activities
and agendas of the SEC, the Public Company Accounting Oversight
Board (PCAOB), the Financial Accounting Standards Board (FASB),
and the Governmental Accounting Standards Board (GASB). The
Subcommittee received testimony from the following witnesses:
Mr. James L. Kroeker, Chief Accountant, SEC; Mr. Robert
Attmore, Chairman, Governmental Accounting Standards Board; Mr.
James R. Doty, Chairman, Public Company Accounting Oversight
Board; Ms. Leslie Seidman, Chairman, Financial Accounting
Standards Board; Mr. Joseph Carcello, Professor, Department of
Accounting and Information Management, The University of
Tennessee; Mr. Gary R. Kabureck, VP & Chief Accounting Officer,
Xerox Corporation; Mr. Barry Melancon, President & CEO,
American Institute of CPAs; and Mr. Thomas Quaadman, Vice
President, Center for Capital Markets Competitiveness, U.S.
Chamber of Commerce.
FEDERAL HOUSING FINANCE AGENCY'S REAL ESTATE OWNED PILOT PROGRAM
On May 7, 2012, the Subcommittee held a field hearing in
Chicago, Illinois, entitled ``An Examination of the Federal
Housing Finance Agency's Real Estate Owned (REO) Pilot
Program.'' The hearing examined the pilot program recently
announced by the FHFA to dispose of REO properties. The
Subcommittee received testimony from the following witnesses:
Ms. Meg Burns, Senior Associate Director, Office of Housing and
Regulatory Policy, FHFA; Mr. Michael Stegman, Counselor to the
Secretary of the Treasury for Housing Policy, Department of the
Treasury; Mr. Sean Dobson, Chairman and Chief Executive
Officer, Amherst Holdings; Mr. Robert Grossinger, Vice
President, Community Revitalization, Enterprise Community
Partners, Inc.; Ms. Mary Kenney, Executive Director, Illinois
Housing Development Authority; and Mr. Dick Pruess, Community
Associations Institute.
CYBER THREATS TO CAPITAL MARKETS
On June 1, 2012, the Subcommittee held a hearing entitled
``Cyber Threats to Capital Markets and Corporate Accounts.''
The hearing examined the importance of cyber security in
protecting U.S. capital markets and corporate accounts from
cyber attacks and service disruptions and reviewed private-
public initiatives to promote the resilience of financial
markets in the event of a cyber attack. The Subcommittee
received testimony from the following witnesses: Ms. Michele
Cantley, Senior Vice President and Chief Information Security
Officer, Regions Bank, on behalf of the Financial Services--
Information Sharing and Analysis Center; Mr. Mark G. Clancy,
Managing Director, Corporate Information Security Officer,
Depository Trust and Clearing Corporation; Mr. Mark Graff,
Chief Information Security Officer, NASDAQ OMX; Mr. Paul
Smocer, President BITS, Technology Policy Division, Financial
Services Roundtable; Mr. Errol S. Weiss, Executive Vice
President, Operations & Technology Risk Management, Citi Cyber
Intelligence Center Director, on behalf of the Securities
Industry and Financial Markets Association; and Mr. James
Woodhill, Coalition Against Online Banking Fraud.
INVESTOR PROTECTION
On June 7, 2012, the Subcommittee held a hearing entitled
``Investor Protection: The Need to Protect Investors from the
Government.'' The hearing examined actions taken by the Obama
Administration that have favored particular groups at the
expense of U.S. investors, including the mortgage servicing
settlement, the U.S. government's intervention on behalf of
Argentina against the holders of Argentine bonds, and the
Chrysler bankruptcy and the treatment of secured creditors. The
Subcommittee received testimony from the following witnesses:
Mr. Vincent A. Fiorillo, Trading/Portfolio Manager, Doubleline
Capital LP, on behalf of the Association of Mortgage Investors;
Ms. Laurie F. Goodman, Senior Managing Director, Amherst
Securities Group, on behalf of the Association of Institutional
Investors; Mr. Adam J. Levitin, Professor of Law, Georgetown
University Law Center; Mr. Stephen J. Lubben, Harvey Washington
Wiley Chair in Corporate Governance and Business Ethics, Seton
Hall University School of Law; The Honorable Theordore B.
Olsen, Partner, Gibson, Dunn & Crutcher LLP, on behalf of the
American Task Force Argentina; and Mr. David Skeel, Professor,
University of Pennsylvania School of Law.
EQUITY MARKET STRUCTURE
On June 20, 2012, the Subcommittee held a hearing entitled
``Market Structure: Ensuring Orderly, Efficient, Innovative and
Competitive Markets for Issuers and Investors.'' This hearing
examined the quality of, and innovation and competition in, the
U.S. equity markets. In particular, this hearing examined the
effect of market structure on smaller issuers and how current
U.S. equity markets are the result of four significant SEC
initiatives: the Order Handling Rules, Regulation ATS,
Decimalization and Regulation NMS. The hearing also examined
draft legislation offered by Representative Patrick McHenry
entitled the ``Liquidity Enhancement for Small Public Companies
Act'' to ensure that adequate liquidity exists for smaller
issuers. The proposal seeks to promote the development of
market quality incentive programs by permitting issuers,
exchanges, or any other company approved by the SEC or an
exchange to provide financial incentives to market makers that
adhere to standards of market quality established by an
exchange. The Subcommittee received testimony from the
following witnesses: Mr. Daniel Coleman, Chief Executive
Officer, GETCO; Mr. Kevin Cronin, Global Head of Equity
Trading, INVESCO, on behalf of the Investment Company
Institute; Mr. Joe Gawronski, President and Chief Operating
Officer, Rosenblatt Securities Inc.; Mr. Thomas Joyce, Chairman
and Chief Executive Officer, Knight Capital Group; Mr. Duncan
Niederauer, Chief Executive Officer, NYSE-Euronext; Mr. Cameron
Smith, President, Quantlab Financial LLC; Mr. Dan Mathisson,
Managing Director, Credit Suisse Securities LLC; Mr. William
O'Brien, Chief Executive Officer, Direct Edge; Mr. Jeffrey
Solomon, Chief Executive Officer, Cowen and Company; Mr. Jim
Toes, President and Chief Executive Officer, Security Traders
Association; and Mr. David Weild, Senior Advisor, Capital
Markets Group, Grant Thornton, and Chairman and Chief Executive
Officer, Capital Markets Advisory Partners.
THE IMPACT OF THE DODD-FRANK ACT
On July 10, 2012, the Subcommittee held a hearing entitled
``The Impact of Dodd-Frank on Customers, Credit, and Job
Creators.'' This hearing examined the effect that the Dodd-
Frank Wall Street Reform and Consumer Protection Act (the Dodd-
Frank Act) (P.L. 111-203) has had on U.S. capital markets,
businesses, investors, and consumers. In particular, this
hearing examined the following topics: derivatives regulation;
the Volcker Rule; risk retention; single counter-party credit
limits; and how the Dodd-Frank Act affected the ability of U.S.
businesses to raise capital, hedge risks, and obtain credit.
The Subcommittee received testimony from the following
witnesses: The Honorable Kenneth E. Bentsen, Jr., Executive
Vice President, Public Policy and Advocacy, Securities Industry
and Financial Markets Association; Mr. Thomas C. Deas, Jr.,
Vice President and Treasurer, FMC Corporation, on behalf of the
National Association of Corporate Treasurers and the U.S.
Chamber of Commerce; Mr. Tom Deutsch, Executive Director,
American Securitization Forum; Mr. Dennis M. Kelleher,
President and Chief Executive Officer, Better Markets, Inc.;
Mr. Thomas P. Lemke, General Counsel and Executive Vice
President, Legg Mason & Co., LLC, on behalf of the Investment
Company Institute; Ms. Anne Simpson, Senior Portfolio Manager,
CalPERS; and Mr. Paul Vanderslice, President, Commercial Real
Estate Finance Council.
MUNICIPAL FINANCE
On July 20, 2012, the Subcommittee held a hearing entitled
``The Impact of the Dodd-Frank Act on Municipal Finance.'' This
hearing examined the effect of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (P.L. 111-203) on the
municipal securities market. Specifically the hearing examined
Section 975 of the Dodd-Frank Act, which governs the
registration and oversight of municipal advisors, and the SEC's
proposed rule to implement Section 975. The hearing also
considered H.R. 2827, legislation offered by Representative
Robert Dold to amend and clarify the scope of Section 975 of
the Dodd-Frank Act. The Subcommittee received testimony from
the following witnesses: The Honorable Jim Geringer, Chairman,
Association of Governing Boards of Universities and Colleges;
Mr. Alan D. Polsky, Chair, Municipal Securities Rulemaking
Board; Dr. Robert Brooks, Professor of Finance, Wallace D.
Malone, Jr. Endowed Chair of Financial Management, Department
of Finance, The University of Alabama; Mr. Robert Doty,
President, AGFS; Mr. Tim Firestine, Chief Administrative
Officer, Montgomery County, MD and President Elect, Government
Finance Officers Association; Mr. Kenneth Gibbs, President,
Municipal Securities Group, Jefferies & Company, Inc., on
behalf of the Securities Industry and Financial Markets
Association; Ms. Christine H. Keck, Director, Government
Relations, Energy Systems Group; Mr. Albert C. Kelly, Jr.,
President and Chief Executive Officer, SpiritBank, and
Chairman, American Bankers Association; and Mr. Mike Marz, Vice
Chairman, First Southwest, on behalf of the Bond Dealers of
America.
THE SARBANES-OXLEY ACT
On July 26, 2012, the Subcommittee held a hearing entitled
``The 10th Anniversary of the Sarbanes-Oxley Act.'' The hearing
examined the cumulative impact of the Sarbanes-Oxley Act of
2002 since the law's enactment in 2002. The hearing also
examined H.R. 6161, the ``Fostering Innovation Act,'' which
would allow more small companies to receive regulatory relief
and incentivize them to access the public markets.
Representative Michael Fitzpatrick introduced the bill on July
19, 2012. H.R. 6161 requires that the SEC amend its definitions
so that companies that either have a public float of less than
$250 million, or have between $250 million and $700 million in
public float but less than $100 million in annual revenue, are
deemed ``non-accelerated filers'' and able to take advantage of
certain regulatory relief. The Subcommittee received testimony
from the following witnesses: Mr. John Berlau, Senior Fellow
for Finance and Access to Capital, Competitive Enterprise
Institute; Mr. Mercer E. Bullard, Jessie D. Puckett, Jr.,
Lecturer and Associate Professor of Law, The University of
Mississippi School of Law; Mr. John Coffee, Adolf A. Berle
Professor of Law, Columbia University Law School; Mr. Mallory
Factor, President, Mallory Factor Inc., and Professor, The
Citadel; Mr. Michael J. Gallagher, Chairman, Professional
Practice Executive Committee, Center for Audit Quality; Mr.
Jeffrey Hatfield, President and Chief Executive Officer, Vitae
Pharmaceuticals on behalf of the Biotechnology Industry
Organization; and Ms. Marie Hollein, President and Chief
Executive Officer, Financial Executives International.
THE JOBS ACT
On September 13, 2012, the Subcommittee held a joint
hearing with the Subcommittee on TARP, Financial Services and
Bailouts of Public and Private Programs of the Committee on
Oversight and Government Reform entitled ``The JOBS ACT:
Importance of Prompt Implementation for Entrepreneurs, Capital
Formation, and Job Creation.'' The hearing examined the
implementation of the Jumpstart Our Business Startups (JOBS)
Act (P.L. 112-106) by the Securities and Exchange Commission.
The Subcommittees received testimony from the following
witnesses: Mr. Rory Eakin, COO & Co-Founder, CircleUp; Mr.
Naval Ravikant, Founder & CEO, AngelList; Mr. Robert B.
Thompson, Professor, Georgetown University Law Center; Mr.
Jeffrey J. Van Winkle, Partner, Clark Hill PLC, on behalf of
the National Small Business Association; and Ms. Alison Bailey
Vercruysse, Founder & CEO, 18 Rabbits Granola & Bars.
DERIVATIVES
On December 12, 2012, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a hearing entitled
``Challenges Facing the U.S. Capital Markets to Effectively
Implement Title VII of the Dodd-Frank Act.'' The hearing
examined the rules proposed by the CFTC and SEC to implement
Title VII of the Dodd-Frank Act. Specifically, the hearing
examined swap execution facility rules; the extraterritorial
application of rules proposed under Title VII; the CFTC and
SEC's differing plans for providing guidance about the cross-
border application of these rules; cost-benefit analyses used
by the CFTC and SEC in issuing proposed and final rules; the
experience of market participants in dealing with the CFTC and
SEC in the run up to the October 12, 2012 compliance deadline;
the CFTC's issuance of several no-action letters on October 10
and 11 and the effect of these letter and their timing on
market participants. The Subcommittee received testimony from
the following witnesses: The Honorable Gary Gensler, Chairman,
U.S. Commodity Futures Trading Commission; Robert Cook,
Director, Division of Trading and Markets, U.S. Securities and
Exchange Commission; Keith Bailey, Managing Director, Barclays,
on behalf of the Institute of International Bankers; Michael
Bopp, Gibson, Dunn & Crutcher, on behalf of the Coalition for
Derivatives End-Users; Samara Cohen, Managing Director, Goldman
Sachs & Co.; Eric DeGesero, Executive Vice President, Fuel
Merchants Association of New Jersey, on behalf of the Petroleum
Marketers Association of America, the New England Fuel
Institute and the Fuel Merchants Association of New Jersey;
Thomas Deutsch, Executive Director, American Securitization
Forum; Christopher Giancarlo, Executive Vice President, GFI
Group, and Chairman, Wholesale Market Brokers Association
Americas; and John E. Parsons, Senior Lecturer, Sloan School of
Management; Executive Director, Center for Energy and
Environmental Policy Research, Massachusetts Institute of
Technology.
Subcommittee Hearings Held
------------------------------------------------------------------------
Serial No. Title Date(s)
------------------------------------------------------------------------
112-2................. GSE Reform: Immediate February 9, 2011
Steps to Protect
Taxpayers and End the
Bailout.
112-14................ Oversight of the March 10, 2011
Securities and Exchange
Commission's Operations,
Activities, Challenges
and FY 2012 Budget
Request.
112-17................ Legislative Proposals to March 11, 2011
Create a Covered Bond
Market in the United
States.
112-19................ Legislative Proposals to March 16, 2011
Promote Job Creation,
Capital Formation, and
Market Certainty.
112-22................ Legislative Hearing on March 31, 2011
Immediate Steps to
Protect Taxpayers from
the Ongoing Bailout of
Fannie Mae and Freddie
Mac.
112-27................ Understanding the April 14, 2011
Implications and
Consequences of the
Proposed Rule on Risk
Retention.
112-29................ Legislative Proposals to May 11, 2011
Address the Negative
Consequences of the Dodd-
Frank Whistleblower
Provisions.
112-33................ Transparency, Transition May 25, 2011
and Taxpayer Protection:
More Steps to End the GSE
Bailout.
112-42................ Oversight of the Mutual June 24, 2011
Fund Industry: Ensuring
Market Stability and
Investor Confidence.
112-56................ Facilitating Continued September 7, 2011
Investor Demand in the
U.S. Mortgage Market
Without a Government
Guarantee (Field Hearing).
112-58................ Ensuring Appropriate September 13, 2011
Regulatory Oversight of
Broker-Dealers and
Legislative Proposals to
Improve Investment
Adviser Oversight.
112-63................ Legislative Proposals to September 21, 2011
Facilitate Small Business
Capital Formation and Job
Creation.
112-75................ Legislative Proposals to October 14, 2011
Bring Certainty to the
Over-the-Counter
Derivatives Market.
112-82................ H.R. ___, the Private November 3, 2011
Mortgage Market
Investment Act.
112-85................ H.R. 1697, The Communities November 16, 2011
First Act (Joint Hearing
with Financial
Institutions).
112-91................ H.R.___, the Private December 7, 2011
Mortgage Market
Investment Act, Part 2.
112-92................ H.R. 3606, the 'Reopening December 15, 2011
American Capital Markets
to Emerging Growth
Companies Act of 2011.
112-95................ Joint hearing with the January 18, 2012
Subcommittee on Financial
Institutions and Consumer
Credit entitled
``Examining the Impact of
the Volcker Rule on
Markets, Businesses,
Investors and Job
Creation''.
112-100............... Limiting the February 8, 2012
Extraterritorial Impact
of Title VII of the Dodd-
Frank Act.
112-105............... The Securities Investor March 7, 2012
Protection Corporation:
Past, Present, and Future.
112-109............... H.R. ___, the Swap Data March 21, 2012
Repository and
Clearinghouse
Indemnification
Correction Act of 2012.
112-112............... Accounting and Auditing March 28, 2012
Oversight: Pending
Proposals and Emerging
Issues Confronting
Regulators, Standard
Setters and the Economy.
112-119............... Oversight of the U.S. April 25, 2012
Securities and Exchange
Commission.
112-120............... An Examination of the May 7, 2012
Federal Housing Finance
Agency's Real Estate
Owned (REO) Pilot Program
(Field Hearing).
112-131............... ``Cyber Threats to Capital June 1, 2012
Markets and Corporate
Accounts''.
112-135............... Investor Protection: The June 7, 2012
Need to Protect Investors
from the Government.
112-137............... Market Structure: Ensuring June 20, 2012
Orderly, Efficient,
Innovative and
Competitive Markets for
Issuers and Investors.
112-143............... The Impact of Dodd-Frank July 10, 2012
on Customers, Credit, and
Job Creators.
112-148............... The Impact of the Dodd- July 20, 2012
Frank Act on Municipal
Finance.
112-152............... The 10th Anniversary of July 26, 2012
the Sarbanes-Oxley Act.
112-156............... Joint Hearing with the September 13, 2012
Subcommittee on TARP,
Financial Services and
Bailouts of Public and
Private Programs of the
Committee on Oversight
and Government Reform
entitled ``The JOBS Act:
Importance of Prompt
Implementation for
Entrepreneurs, Capital
Formation, and Job
Creation''.
112-163............... Challenges Facing the U.S. December 12, 2012
Capital Markets to
Effectively Implement
Title VII of the Dodd-
Frank Act.
------------------------------------------------------------------------
Subcommittee on Domestic Monetary Policy and Technology
(Ratio: 8-6)
RON PAUL, Texas, Chairman
WM. LACY CLAY, Missouri, Ranking MemberLTER B. JONES, North Carolina,
CAROLYN B. MALONEY, New York Vice Chairman
GREGORY W. MEEKS, New York FRANK D. LUCAS, Oklahoma
AL GREEN, Texas PATRICK T. McHENRY, North Carolina
EMANUEL CLEAVER, Missouri BLAINE LUETKEMEYER, Missouri
GARY C. PETERS, Michigan BILL HUIZENGA, Michigan
BARNEY FRANK, Massachusetts, ex officioN A. S. HAYWORTH, New York
DAVID SCHWEIKERT, Arizona
SPENCER BACHUS, Alabama, ex
officio
Subcommittee Legislative Activities
TO AMEND THE FEDERAL RESERVE ACT TO REMOVE THE MANDATE ON THE BOARD OF
GOVERNORS OF THE FEDERAL RESERVE SYSTEM AND THE FEDERAL OPEN MARKET
COMMITTEE TO FOCUS ON MAXIMUM EMPLOYMENT.
(H.R. 245)
Summary
H.R. 245, a bill to amend the Federal Reserve Act to remove
the mandate on the Board of Governors of the Federal Reserve
System and the Federal Open Market Committee to focus on
maximum employment, would amend the Federal Reserve Act to
remove the full employment mandate.
Legislative History
On January 7, 2011, H.R. 245 was introduced by
Representative Mike Pence and referred to the Committee on
Financial Services. The bill has four cosponsors.
On May 8, 2012, the Subcommittee held a legislative hearing
on several bills, including H.R. 245 entitled ``Improving the
Federal Reserve System: Examining Legislation to Reform the Fed
and Other Alternatives.'' The Subcommittee received testimony
from the following witnesses: Representative Kevin Brady (R-
TX); Representative Barney Frank (D-MA); Dr. Jeffrey M.
Herbener, Chairman, Economics Department, Grove City College,
Pennsylvania; Dr. Peter G. Klein, Associate Professor, Applied
Social Sciences and Director, McQuinn Center for
Entrepreneurial Leadership, University of Missouri; Dr. John B.
Taylor, Mary and Robert Raymond Professor of Economics,
Stanford University and George P. Shultz Senior Fellow in
Economics, Hoover Institution; Dr. James K. Galbraith, Lloyd M.
Bentsen, Jr. Chair in Government/Business Relations, LBJ School
of Public Affairs, University of Texas at Austin; and Dr. Alice
Rivlin, Senior Fellow, Economic Studies, Brookings Institution.
FEDERAL RESERVE BOARD ABOLITION ACT
(H.R. 1094)
Summary
H.R. 1094, the Federal Reserve Board Abolition Act, would
abolish the Board of Governors of the Federal Reserve System
and the regional Federal Reserve Banks, and repeal the Federal
Reserve Act one year after enactment of the bill, during which
time the affairs of the Board and the Reserve Banks would be
wound down. All remaining assets and liabilities of the Federal
Reserve System would then be transferred to the Department of
Treasury.
Legislative History
On March 15, 2011, H.R. 1094 was introduced by Subcommittee
on Domestic Monetary Policy and Technology Chairman Ron Paul
and referred to the Committee on Financial Services. The bill
has no cosponsors.
On May 8, 2012, the Subcommittee held a legislative hearing
on several bills, including H.R. 1094 entitled ``Improving the
Federal Reserve System: Examining Legislation to Reform the Fed
and Other Alternatives.'' The Subcommittee received testimony
from the following witnesses: Representative Kevin Brady (R-
TX); Representative Barney Frank (D-MA); Dr. Jeffrey M.
Herbener, Chairman, Economics Department, Grove City College,
Pennsylvania; Dr. Peter G. Klein, Associate Professor, Applied
Social Sciences and Director, McQuinn Center for
Entrepreneurial Leadership, University of Missouri; Dr. John B.
Taylor, Mary and Robert Raymond Professor of Economics,
Stanford University and George P. Shultz Senior Fellow in
Economics, Hoover Institution; Dr. James K. Galbraith, Lloyd M.
Bentsen, Jr. Chair in Government/Business Relations, LBJ School
of Public Affairs, University of Texas at Austin; and Dr. Alice
Rivlin, Senior Fellow, Economic Studies, Brookings Institution.
FREE COMPETITION IN CURRENCY ACT OF 2011
(H.R. 1098)
Summary
H.R. 1098, the Free Competition in Currency Act of 2011,
would repeal the federal law establishing U.S. coins, currency,
and Federal Reserve Notes as legal tender for all debts;
prohibit the imposition of taxes on coins, medals, tokens, or
gold, silver, platinum, palladium, or rhodium bullion issued by
a state, the United States, a foreign government, or any other
person; prohibit states from assessing any tax or fee on any
currency or other monetary instrument that is used in
interstate or foreign commerce and that has legal tender status
under the Constitution; and repeal provisions of the federal
criminal code relating to circulating coins of gold, silver, or
other metal for use as current money and making or possessing
likenesses of such coins; and abate any current prosecution
under such provisions and nullify any previous convictions.
Legislative History
On March 15, 2011, H.R. 1098 was introduced by Subcommittee
on Domestic Monetary Policy and Technology Chairman Ron Paul
and was referred to the Committee on Financial Services, the
Committee on Ways and Means, and the Committee on the
Judiciary. The bill has no cosponsors.
On September 13, 2011, the Subcommittee held a hearing
entitled ``Road Map to Sound Money: A Legislative Hearing on
H.R. 1098 and Restoring the Dollar.'' The Subcommittee received
testimony from the following witnesses: Dr. Lawrence M. Parks,
Ph.D., Executive Director, Foundation for the Advancement of
Monetary Education; and Dr. Lawrence H. White, Ph.D., Professor
of Economics, Department of Economics, George Mason University.
DEMOCRATIZING THE FEDERAL RESERVE SYSTEM ACT OF 2011
(H.R. 1401)
Summary
H.R. 1401, the Democratizing the Federal Reserve System Act
of 2011, would reduce the terms of the members of the Federal
Reserve Board of Governors from 14 years to seven years. The
regional Federal Reserve Banks' representation on the Federal
Open Market Committee (FOMC) would be increased from five to
six members, and the rotation schedule would be revised to
ensure that each Reserve Bank president serves on the FOMC
every other year, with the president of the Federal Reserve
Bank of New York no longer holding a permanent seat on the
FOMC. The Vice Chairman of the Board of Governors would be
chosen from a member currently on the Board who has served at
least one year on the Board. The Chairman would be chosen in
the same manner, but must have served at least two years on the
Board.
Legislative History
On April 6, 2011, H.R. 1401 was introduced by
Representative Marcy Kaptur and referred to the Committee on
Financial Services. The bill has two cosponsors.
On May 8, 2012, the Subcommittee held a legislative hearing
on several bills, including H.R. 1401 entitled ``Improving the
Federal Reserve System: Examining Legislation to Reform the Fed
and Other Alternatives.'' The Subcommittee received testimony
from the following witnesses: Representative Kevin Brady (R-
TX); Representative Barney Frank (D-MA); Dr. Jeffrey M.
Herbener, Chairman, Economics Department, Grove City College,
Pennsylvania; Dr. Peter G. Klein, Associate Professor, Applied
Social Sciences and Director, McQuinn Center for
Entrepreneurial Leadership, University of Missouri; Dr. John B.
Taylor, Mary and Robert Raymond Professor of Economics,
Stanford University and George P. Shultz Senior Fellow in
Economics, Hoover Institution; Dr. James K. Galbraith, Lloyd M.
Bentsen, Jr. Chair in Government/Business Relations, LBJ School
of Public Affairs, University of Texas at Austin; and Dr. Alice
Rivlin, Senior Fellow, Economic Studies, Brookings Institution.
GOLD RESERVE TRANSPARENCY ACT OF 2011
(H.R. 1495)
Summary
H.R. 1495, the Gold Reserve Transparency Act of 2011, would
direct the Secretary of the Treasury to conduct a full assay,
inventory, and audit of federal gold reserves, including an
analysis of the sufficiency of the measures taken for their
security. The bill would also direct the GAO to review the
results of the assay, inventory, audit, and analysis.
Legislative History
On April 12, 2011, H.R. 1495 was introduced by Subcommittee
on Domestic Monetary Policy and Technology Chairman Ron Paul
and was referred to the Committee on Financial Services. The
bill has no cosponsors.
On June 23, 2011, the Subcommittee held a legislative
hearing entitled ``Investigating the Gold: H.R. 1495, the Gold
Reserve Transparency Act of 2011 and the Oversight of United
States Gold Holdings.'' The Subcommittee received testimony
from the following witnesses: Mr. Gary T. Engel, Director of
Financial Management and Assurance, GAO; and The Honorable Eric
M. Thorson, Inspector General, Department of Treasury.
NATIONAL EMERGENCY EMPLOYMENT DEFENSE ACT OF 2011
(H.R. 2990)
Summary
H.R. 2990, the National Emergency Employment Defense Act of
2011, would replace the Federal Reserve Note with United States
Money (USM), which would be legal tender. The bill would also
criminalize the creation of USM through fractional reserve
banking and prohibit borrowing by the Treasury Secretary or by
any federal agency or department from any source other than the
Secretary. H.R. 2990 would also require any funding shortfalls
to be met with the issuance of USM and all U.S. debt
instruments to be retired by redeeming them with USM. The bill
would instruct the Treasury Secretary to purchase all net
assets in the Federal Reserve System, create a new Monetary
Authority within the Treasury Department to establish monetary
supply policy and monitor the nation's monetary status, and
create a Bureau of the Federal Reserve within the Treasury
Department to administer the origination and circulation of
USM. H.R. 2990 would also require the Monetary Authority to
instruct the Treasury Secretary to disburse monetary grants to
states for public infrastructure, education, health care and
rehabilitation, pensions, and paying for unfunded federal
mandates, and set a ceiling on interest rates.
Legislative History
On September 21, 2011, H.R. 2990 was introduced by
Representative Dennis Kucinich and referred to the Committee on
Financial Services. The bill has one cosponsor.
On May 8, 2012, the Subcommittee held a legislative hearing
on several bills, including H.R. 2990 entitled ``Improving the
Federal Reserve System: Examining Legislation to Reform the Fed
and Other Alternatives.'' The Subcommittee received testimony
from the following witnesses: Representative Kevin Brady (R-
TX); Representative Barney Frank (D-MA); Dr. Jeffrey M.
Herbener, Chairman, Economics Department, Grove City College,
Pennsylvania; Dr. Peter G. Klein, Associate Professor, Applied
Social Sciences and Director, McQuinn Center for
Entrepreneurial Leadership, University of Missouri; Dr. John B.
Taylor, Mary and Robert Raymond Professor of Economics,
Stanford University and George P. Shultz Senior Fellow in
Economics, Hoover Institution; Dr. James K. Galbraith, Lloyd M.
Bentsen, Jr. Chair in Government/Business Relations, LBJ School
of Public Affairs, University of Texas at Austin; and Dr. Alice
Rivlin, Senior Fellow, Economic Studies, Brookings Institution.
TO AMEND THE FEDERAL RESERVE ACT TO REPLACE THE FEDERAL OPEN MARKET
COMMITTEE MEMBERS REPRESENTING THE FEDERAL RESERVE BANKS WITH
ADDITIONAL MEMBERS APPOINTED BY THE PRESIDENT, AND FOR OTHER PURPOSES
(H.R. 3428)
Summary
H.R. 3428, a bill to amend the Federal Reserve Act to
replace the Federal Open Market Committee members representing
the Federal Reserve banks with additional members appointed by
the President, and for other purposes, would replace the five
Reserve Bank presidents who sit on the FOMC with FOMC members
appointed by the President and confirmed by the Senate. FOMC
members would be selected with due regard to a fair
representation of the financial, agricultural, industrial,
commercial, consumer, and labor interests, and geographical
diversity of the U.S. No more than one additional member would
be allowed to be appointed from any particular Federal Reserve
district.
Legislative History
On November 15, 2011, H.R. 3428 was introduced by
Representative Barney Frank and referred to the Committee on
Financial Services. The bill has no cosponsors.
On May 8, 2012, the Subcommittee held a legislative hearing
on several bills, including H.R. 3428 entitled ``Improving the
Federal Reserve System: Examining Legislation to Reform the Fed
and Other Alternatives.'' The Subcommittee received testimony
from the following witnesses: Representative Kevin Brady (R-
TX); Representative Barney Frank (D-MA); Dr. Jeffrey M.
Herbener, Chairman, Economics Department, Grove City College,
Pennsylvania; Dr. Peter G. Klein, Associate Professor, Applied
Social Sciences and Director, McQuinn Center for
Entrepreneurial Leadership, University of Missouri; Dr. John B.
Taylor, Mary and Robert Raymond Professor of Economics,
Stanford University and George P. Shultz Senior Fellow in
Economics, Hoover Institution; Dr. James K. Galbraith, Lloyd M.
Bentsen, Jr. Chair in Government/Business Relations, LBJ School
of Public Affairs, University of Texas at Austin; and Dr. Alice
Rivlin, Senior Fellow, Economic Studies, Brookings Institution.
CENTS AND SENSIBILITY ACT
(H.R. 3693)
Summary
H.R. 3693, the Cents and Sensibility Act, would require
pennies to be made primarily from steel and to be copper-
colored so that pennies would resemble one-cent coins currently
in use. The bill also directs that the steel used to make these
coins be produced in the United States, unless U.S.-produced
steel is not available in sufficient and reasonably available
quantities.
Legislative History
On December 15, 2011, H.R. 3693 was introduced by
Representative Steve Stivers and referred to the Committee on
Financial Services. The bill has two cosponsors.
On April 17, 2012, the Subcommittee held a legislative
hearing on H.R. 3693 entitled ``The Future of Money: Coinage
Production.'' The Subcommittee received testimony from the
following witnesses: Mr. John Blake, Executive Vice President
of Engineering, Cummins Allison Corporation; Mr. Rodney J.
Bosco, Director, Disputes and Investigations, Navigant
Consulting, Inc.; and Mr. Dennis Weber, coin industry
consultant.
On November 29, 2012, the Subcommittee held a hearing
entitled ``The Future of Money: Dollars and Sense''. The
hearing consisted of two panels with the following witnesses:
Mr. Richard A. Peterson, Deputy Director, United States Mint;
Ms. Lorelei St. James, Director, Physical Infrastructure
Issues, Government Accountability Office; Ms. Beverley Lepine,
Chief Operating Officer, Royal Canadian Mint; The Honorable
Philip Diehl, former Director, United States Mint; Mr. James
Miller, former Director, Office of Management and Budget; and
Mr. Mark Weller, Citizens for Common Cents.
SAVING TAXPAYER EXPENDITURES BY EMPLOYING LESS IMPORTED NICKEL ACT
(H.R. 3694)
Summary
H.R. 3694, the Saving Taxpayer Expenditures by Employing
Less Imported Nickel Act, would require that nickels be made
primarily of steel and that they have a color similar to the
current five-cent coin. The bill would also direct that the
steel used to make these coins be produced in the United
States, unless U.S.-produced steel is not available in
sufficient quantities. H.R. 3694 would prohibit the Secretary
of the Treasury from choosing a specification that would
require more than one change to coin-accepting and coin-
handling equipment to accommodate coins produced under the Act.
The bill would also prohibit the Secretary from choosing a
composition that would permit a foreign coin with a lesser
value, or any token or any other metal device of minimal value,
to be used in place of the new coin.
Legislative History
On December 15, 2011, H.R. 3694 was introduced by
Representative Steve Stivers and referred to the Committee on
Financial Services. The bill has two cosponsors.
On April 17, 2012, the Subcommittee held a legislative
hearing on H.R. 3694 entitled ``The Future of Money: Coinage
Production.'' The Subcommittee received testimony from the
following witnesses: Mr. John Blake, Executive Vice President
of Engineering, Cummins Allison Corporation; Mr. Rodney J.
Bosco, Director, Disputes and Investigations, Navigant
Consulting, Inc.; and Mr. Dennis Weber, coin industry
consultant.
On November 29, 2012, the Subcommittee held a hearing
entitled ``The Future of Money: Dollars and Sense''. The
hearing consisted of two panels with the following witnesses:
Mr. Richard A. Peterson, Deputy Director, United States Mint;
Ms. Lorelei St. James, Director, Physical Infrastructure
Issues, Government Accountability Office; Ms. Beverley Lepine,
Chief Operating Officer, Royal Canadian Mint; The Honorable
Philip Diehl, former Director, United States Mint; Mr. James
Miller, former Director, Office of Management and Budget; and
Mr. Mark Weller, Citizens for Common Cents.
SOUND DOLLAR ACT OF 2012
(H.R. 4180)
Summary
H.R. 4180, the Sound Dollar Act of 2012, would establish
the long-term price stability as the Federal Reserve's single
mandate, direct the Federal Reserve Board and the FOMC to
define long-term price stability, and establish metrics by
which to measure the achievement of long-term price stability--
in consideration of or with respect to various indices and
asset prices. The bill would also require the Federal Reserve
to establish a clear lender of last resort policy, expand
voting membership of the FOMC to include a representative from
each of the 12 regional Federal Reserve Banks, and direct the
FOMC to release meeting transcripts no later than three years
after each meeting. H.R. 4180 would (1) limit asset purchases
by the Federal Reserve to government bonds only, with a
maturity of less than six months, (2) permit other assets to be
purchased in unusual and exigent circumstances upon a vote of
two-thirds of the FOMC members, (3) divest the Exchange
Stabilization Fund of all non-Special Drawing Right (SDR)
assets so that it holds only SDRs and no other assets for
foreign exchange, and (4) subject the CFPB to the Congressional
appropriations process.
Legislative History
On March 8, 2012, H.R. 4180 was introduced by
Representative Kevin Brady and referred to the Committee on
Financial Services. The bill has 39 cosponsors.
On May 8, 2012, the Subcommittee held a legislative hearing
on H.R. 4180 entitled ``Improving the Federal Reserve System:
Examining Legislation to Reform the Fed and Other
Alternatives.'' The Subcommittee received testimony from the
following witnesses: Representative Kevin Brady (R-TX);
Representative Barney Frank (D-MA); Dr. Jeffrey M. Herbener,
Chairman, Economics Department, Grove City College,
Pennsylvania; Dr. Peter G. Klein, Associate Professor, Applied
Social Sciences and Director, McQuinn Center for
Entrepreneurial Leadership, University of Missouri; Dr. John B.
Taylor, Mary and Robert Raymond Professor of Economics,
Stanford University and George P. Schultz Senior Fellow in
Economics, Hoover Institution; Dr. James K. Galbraith, Lloyd M.
Bentsen, Jr. Chair in Government/Business Relations, LBJ School
of Public Affairs, University of Texas at Austin; and Dr. Alice
Rivlin, Senior Fellow, Economic Studies, Brookings Institution.
Subcommittee Oversight Activities
THE ECONOMY AND JOBS
On February 9, 2011, the Subcommittee held a hearing
entitled ``Can Monetary Policy Really Create Jobs?'' The focus
of the hearing was the effectiveness of Federal Reserve policy
in creating jobs. The purpose of the hearing was twofold:
first, to examine whether the Federal Reserve is meeting, or
ever could meet, its mandates of maintaining stable prices and
high employment when prices and employment rates are high; and
second, to examine whether the Fed's accommodative monetary
policy has implications for long-term employment prospects. The
Subcommittee received testimony from the following witnesses:
Dr. Thomas J. DiLorenzo, Professor of Economics, Sellinger
School of Business, Loyola University; Dr. Richard Vedder,
Professor of Economics, Ohio University; and Dr. Josh Bivens,
Economic Policy Institute, Washington, D.C.
MONETARY POLICY AND RISING PRICES
On March 17, 2011, the Subcommittee held a hearing entitled
``The Relationship of Monetary Policy and Rising Prices.'' The
purpose of the hearing was to examine whether the stimulative
monetary policy the Federal Reserve has recently engaged in
will trigger inflation. The Subcommittee received testimony
from the following witnesses: Mr. Lewis E. Lehrman, Senior
Partner, L.E. Lehrman & Co; Mr. James Grant, Editor, Grant's
Interest Rate Observer; and Professor Joseph T. Salerno, Pace
University.
BULLION COIN PROGRAMS
On April 7, 2011, the Subcommittee held a hearing entitled
``Bullion Coin Programs of the United States Mint: Can They Be
Improved?'' The purpose of the hearing was to examine possible
improvements to the Mint's bullion programs. The Subcommittee
received testimony from the following witnesses: Beth Deisher,
Editor, Coin World Magazine; Terrence Hanlon, President, Dillon
Gage Metals Division; Ross Hansen, Founder, Northwest
Territorial Mint; and Raymond Nessim, Chief Executive Officer,
Manfra, Tordella & Brookes, Inc.
MONETARY POLICY AND THE DEBT CEILING
On May 11, 2011, the Subcommittee held a hearing entitled
``Monetary Policy and the Debt Ceiling: Examining the
Relationship between the Federal Reserve and Government Debt.''
The purpose of the hearing was to examine the role that the
federal government's debt plays in the central bank's monetary
policy decision making and the effect of that role on the
budget deficit. The hearing focused on examining the link
between the Federal Reserve and government debt, including
whether the Treasury Department can increase the government
debt as the Federal Reserve increases the monetary base; how
the Federal Reserve purchases government debt to conduct
monetary policy; the role of the Federal Reserve in financing
government budget deficits; the impact of current monetary and
fiscal policy on the cost of financing the government's debt;
and the issue of raising the debt ceiling. The Subcommittee
received testimony from the following witnesses: Dr. Richard
Ebeling, Professor of Economics, Northwood University; Mr. Bert
Ely, Ely & Company, Inc.; and Dr. Matthew J. Slaughter, Dean,
Tuck School of Business, Dartmouth College.
GENERAL OVERSIGHT OF THE FEDERAL RESERVE SYSTEM
On June 1, 2011, the Subcommittee held a hearing entitled
``Federal Reserve Lending Disclosure: FOIA, Dodd-Frank, and the
Data Dump.'' The hearing examined information disclosed by the
Federal Reserve in compliance with the Dodd-Frank Act and the
FOIA. The Subcommittee received testimony from the following
witnesses: Mr. Scott G. Alvarez, General Counsel, Board of
Governors of the Federal Reserve System; and Mr. Thomas C.
Baxter, Jr., General Counsel, Federal Reserve Bank of New York.
On October 4, 2011, the Subcommittee held a hearing
entitled ``Audit the Fed: Dodd-Frank, QE3, and Federal Reserve
Transparency.'' The purpose of this hearing was to examine the
results of the audits of the Federal Reserve by the GAO
mandated by the Dodd-Frank Act; earlier legislative efforts to
audit the Federal Reserve; current Federal Reserve audit and
data disclosure requirements; and Federal Reserve transparency.
The Subcommittee received testimony from the following
witnesses: Ms. Orice Williams Brown, Managing Director,
Financial Markets and Community Investment, GAO; Dr. Robert D.
Auerbach, Professor of Public Affairs, Lyndon B. Johnson School
of Public Affairs, University of Texas, Austin; and Dr. Mark A.
Calabria, Director of Financial Regulation Studies, Cato
Institute.
CONDUCT OF MONETARY POLICY BY THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM
On July 26, 2011, the Subcommittee held a hearing entitled
``Impact of Monetary Policy on the Economy: A Regional Fed
Perspective on Inflation, Unemployment, and QE3.'' The purpose
of the hearing was to receive a regional Federal Reserve Bank
perspective on inflation, unemployment, monetary policy actions
and the possibility of further liquidity operations. The
Subcommittee received testimony from Federal Reserve Bank of
Kansas City President Thomas Hoenig, who was the sole witness.
On March 27, 2012, the Subcommittee held a hearing entitled
``Federal Reserve Aid to the Eurozone: Its Impact on the U.S.
and the Dollar.'' The Subcommittee received testimony from the
following witnesses: Mr. William C. Dudley, President and Chief
Executive Officer, Federal Reserve Bank of New York; and Dr.
Steven B. Kamin, Director, Division of International Finance,
Board of Governors of the Federal Reserve System. This hearing
was held to identify any Federal Reserve assistance to the
Eurozone during its sovereign debt crisis. The primary focus of
the hearing was on reciprocal currency swap arrangements with
the central banks of Europe, England, Switzerland, Japan, and
Canada that the Federal Reserve entered into in an effort to
alleviate liquidity pressures. The witnesses also discussed
their views on the effects these swap lines have had on both
the U.S. and EU economies.
FRACTIONAL RESERVE BANKING AND THE FEDERAL RESERVE: THE ECONOMIC
CONSEQUENCES OF HIGH-POWERED MONEY
On June 28, 2012, the Subcommittee held a hearing entitled
``Fractional Reserve Banking and the Federal Reserve: The
Economic Consequences of High-Powered Money'' to examine
fractional reserve banking, its relationship to monetary
policy, and its effect on the economy. The hearing consisted of
one panel with the following witnesses: Dr. John Cochran,
Emeritus Professor of Economics and Emeritus Dean, School of
Business, Metropolitan State College of Denver; Dr. Joseph
Salerno, Professor of Economics, Lubin School of Business, Pace
University; and Dr. Lawrence H. White, Professor of Economics,
George Mason University.
SOUND MONEY: PARALLEL CURRENCIES AND THE ROADMAP TO MONETARY FREEDOM
On August 2, 2012, the Subcommittee held a hearing entitled
``Sound Money: Parallel Currencies and the Roadmap to Monetary
Freedom'' to examine parallel currencies and alternative forms
of money, the effects of parallel currencies on the economy and
monetary policy, and the obstacles that prevent the circulation
of alternative forms of money. The hearing consisted of one
panel with the following witnesses: Dr. Richard Ebeling,
Professor of Economics, Northwood University; Mr. Nathan Lewis,
Principal, Kiku Capital Management LLC; and Mr. Rob Gray,
Executive Director, The American Open Currency Standard.
THE ECONOMY AND JOBS
On September 21, 2012, the Subcommittee held a hearing
entitled ``The Price of Money: Consequences of the Federal
Reserve's Zero Interest Rate Policy'' to examine the role that
interest rates play in resource allocation, economic growth,
and economic crises; the effects of interest rates on inflation
and the purchasing power of the dollar; and the impact of the
Federal Reserve's zero interest rate policy on investors,
savers, and the economy. The hearing consisted of one panel
with the following witnesses: Mr. James Grant, Editor, Grant's
Interest Rate Observer; and Mr. Lewis E. Lehrman, Senior
Partner, L.E. Lehrman & Co.
On November 29, 2012, the Subcommittee held a hearing
entitled ``The Future of Money: Dollars and Sense'' to examine
proposals to change the metallic content of the penny and the
nickel and to replace the dollar bill with a $1 coin. At the
hearing, witnesses discussed the economic, financial and social
implications of each proposal. The hearing consisted of two
panels with the following witnesses: Mr. Richard A. Peterson,
Deputy Director, United States Mint; Ms. Lorelei St. James,
Director, Physical Infrastructure Issues, Government
Accountability Office; Ms. Beverley Lepine, Chief Operating
Officer, Royal Canadian Mint; The Honorable Philip Diehl,
former Director, United States Mint; Mr. James Miller, former
Director, Office of Management and Budget; and Mr. Mark Weller,
Citizens for Common Cents.
Subcommittee Hearings Held
------------------------------------------------------------------------
Serial No. Title Date(s)
------------------------------------------------------------------------
112-3................. Can Monetary Policy Really February 9, 2011
Create Jobs?.
112-20................ The Relationship of March 17, 2011
Monetary Policy and
Rising Prices.
112-25................ Bullion Coin Programs of
the United States Mint:
Can They Be Improved?
April 7, 2011.
112-28................ Monetary Policy and the May 11, 2011
Debt Ceiling: Examining
the Relationship Between
the Federal Reserve and
Government Debt.
112-35................ Federal Reserve Lending June 1, 2011
Disclosure: FOIA, Dodd-
Frank, and the Data Dump.
112-41................ Investigating the Gold: June 23, 2011
H.R. 1495, the Gold
Reserve Transparency Act
of 2011 and the Oversight
of the United States Gold
Holdings.
112-50................ Impact of the Monetary July 26, 2011
Policy on the Economy: A
Regional Fed Perspective
on Inflation,
Unemployment, and QE3.
112-59................ Road Map to Sound Money: A September 13, 2011
Legislative Hearing on
H.R. 1098 and Restoring
the Dollar.
112-67................ Audit the Fed: Dodd-Frank, October 4, 2011
QE3, and Federal Reserve
Transparency.
112-111............... Federal Reserve Aid to the March 27, 2012
Eurozone: Its Impact on
the U.S. and the Dollar.
112-117............... The Future of Money: April 17, 2012
Coinage Production.
112-121............... Improving the Federal May 8, 2012
Reserve System: Examining
Legislation to Reform the
Fed and Other
Alternatives''.
112-141............... Fractional Reserve Banking June 28, 2012
and the Federal Reserve:
The Economic Consequences
of High-Powered Money.
112-153............... Sound Money: Parallel August 2, 2012
Currencies and the
Roadmap to Monetary
Freedom.
112-160............... The Price of Money: September 21, 2012
Consequences of the
Federal Reserve's Zero
Interest Rate Policy.
112-162............... The Future of Money: November 29, 2012
Dollars and Sense.
------------------------------------------------------------------------
Subcommittee on Financial Institutions and Consumer Credit
(Ratio: 17-13)
SHELLEY MOORE CAPITO, West
Virginia, Chairman
CAROLYN B. MALONEY, New York, Ranking Member. RENACCI, Ohio, Vice
LUIS V. GUTIERREZ, Illinois Chairman
MELVIN L. WATT, North Carolina EDWARD R. ROYCE, California
GARY L. ACKERMAN, New York DONALD A. MANZULLO, Illinois
RUBEN HINOJOSA, Texas WALTER B. JONES, North Carolina
CAROLYN McCARTHY, New York JEB HENSARLING, Texas
JOE BACA, California PATRICK T. McHENRY, North Carolina
BRAD MILLER, North Carolina KEVIN McCARTHY, California
DAVID SCOTT, Georgia STEVAN PEARCE, New Mexico
NYDIA M. VELAZQUEZ, New York LYNN A. WESTMORELAND, Georgia
GREGORY W. MEEKS, New York BLAINE LUETKEMEYER, Missouri
STEPHEN F. LYNCH, Massachusetts BILL HUIZENGA, Michigan
JOHN CARNEY, Jr., Delaware SEAN P. DUFFY, Wisconsin
BARNEY FRANK, Massachusetts, ex officioANCISCO ``QUICO'' CANSECO, Texas
MICHAEL G. GRIMM, New York
STEPHEN LEE FINCHER, Tennessee
FRANK C. GUINTA, New Hampshire
SPENCER BACHUS, Alabama, ex
officio
Subcommittee Legislative Activities
RESPONSIBLE CONSUMER FINANCIAL PROTECTION REGULATIONS ACT OF 2011
(H.R. 1121)
Summary
H.R. 1121, the Responsible Consumer Financial Protection
Regulations Act of 2011, would amend Section 1011 of the Dodd-
Frank Act, by replacing the Director of the CFPB with a five-
person Commission. The CFPB Commission would be empowered to
prescribe regulations and issue orders to implement laws within
the CFPB's jurisdiction. One of the five seats on the CFPB
Commission would be filled by the Vice Chairman for Supervision
of the Federal Reserve System. Each of the four remaining
members of the Commission would be appointed by the President;
no more than two of those four Commissioners may be from the
same political party. Although the Chair of the Commission
would fulfill the executive and administrative functions of the
CFPB, the Chair's discretion would be bounded by policies set
by the whole Commission.
Legislative History
On March 16, 2011, H.R. 1121 was introduced by Chairman
Spencer Bachus and referred to the Committee on Financial
Services. The bill has 35 cosponsors.
On March 16, 2011, the Subcommittee held a legislative
hearing on H.R. 1121 entitled ``Oversight of the Consumer
Financial Protection Bureau.'' Ms. Elizabeth Warren, Special
Advisor to the Secretary of the Treasury for the CFPB,
Department of the Treasury, testified.
On April 6, 2011, the Subcommittee held a legislative
hearing on H.R. 1121 entitled ``Legislative Proposals to
Improve the Structure of the Consumer Financial Protection
Bureau.'' The Subcommittee received testimony from the
following witnesses: Ms. Leslie R. Andersen, President and
Chief Executive Officer, Bank of Bennington on behalf of the
American Bankers Association; Ms. Lynette W. Smith, President
and Chief Executive Officer, Washington Gas Light FCU on behalf
of the National Association of Federal Credit Unions; Mr. Jess
Sharp, Executive Director, Center for Capital Markets
Competitiveness, U.S. Chamber of Commerce; Mr. Hilary Shelton,
Director, NAACP Washington Bureau and Senior VP for Advocacy
and Policy, NAACP; Mr. Noah H. Wilcox, President and Chief
Executive Officer, Grand Rapids State Bank on behalf of the
Independent Community Bankers of America; Mr. Rod Staatz,
President and Chief Executive Officer, SECU of Maryland on
behalf of the Credit Union National Association; Mr. Richard
Hunt, President, Consumer Bankers Association; and Prof. Adam
J. Levitin, Georgetown University Law Center.
On May 4, 2011, the Subcommittee met in open session and
ordered the bill favorably reported to the Committee by a
record vote of 13 yeas and 7 nays.
On May 12, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by a record vote of 33 yeas and 24 nays. The Committee Report
(Part 1) was filed on June 16, 2011 (H. Rept. 112-107), and
Part 2 of the Committee Report was filed on July 19, 2011 (H.
Rept. 112-107, Part 2).
On July 21, 2011, the House considered the Committee Print
of H.R. 1315, which included the text of H.R. 1121 and H.R.
1667, and passed the bill, with amendments, by a record vote of
241 yeas and 173 nays.
CONSUMER FINANCIAL PROTECTION SAFETY AND SOUNDNESS IMPROVEMENT ACT OF
2011
(H.R. 1315)
Summary
H.R. 1315, the Consumer Financial Protection Safety and
Soundness Improvement Act of 2011, would amend Section 1023 of
the Dodd-Frank Act to streamline the FSOC's review and
oversight of CFPB rules and regulations that may undermine the
safety and soundness of U.S. financial institutions. The bill
would make three major changes: (1) it would lower the
threshold required to set aside regulations from a two-thirds
vote of the FSOC's voting membership to a simple majority,
excluding the CFPB Director; (2) it would clarify that the FSOC
must set aside any CFPB regulation that is inconsistent with
the safe and sound operations of U.S. financial institutions;
and (3) it would eliminate the 45-day time limit for the FSOC
to review and vote on regulations.
Legislative History
On April 1, 2011, H.R. 1315 was introduced by
Representative Sean Duffy and was referred to the Committee on
Financial Services. The bill has 4 cosponsors.
On March 16, 2011, the Subcommittee held a legislative
hearing on a draft of H.R. 1315 entitled ``Oversight of the
Consumer Financial Protection Bureau.'' Ms. Elizabeth Warren,
Special Advisor to the Secretary of the Treasury for the CFPB,
Department of the Treasury, testified.
On April 6, 2011, the Subcommittee held a legislative
hearing on H.R. 1315 entitled ``Legislative Proposals to
Improve the Structure of the Consumer Financial Protection
Bureau.'' The Subcommittee received testimony from the
following witnesses: Ms. Leslie R. Andersen, President and
Chief Executive Officer, Bank of Bennington on behalf of the
American Bankers Association; Ms. Lynette W. Smith, President
and Chief Executive Officer, Washington Gas Light FCU on behalf
of the National Association of Federal Credit Unions; Mr. Jess
Sharp, Executive Director, Center for Capital Markets
Competitiveness, U.S. Chamber of Commerce; Mr. Hilary Shelton,
Director, NAACP Washington Bureau and Senior VP for Advocacy
and Policy, NAACP; Mr. Noah H. Wilcox, President and Chief
Executive Officer, Grand Rapids State Bank on behalf of the
Independent Community Bankers of America; Mr. Rod Staatz,
President and Chief Executive Officer, SECU of Maryland on
behalf of the Credit Union National Association; Mr. Richard
Hunt, President, Consumer Bankers Association; and Prof. Adam
J. Levitin, Georgetown University Law Center.
On May 4, 2011, the Subcommittee met in open session and
ordered the bill, as amended, favorably reported to the
Committee by a record vote of 13 yeas and 9 nays.
On May 12, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by a record vote of 35 yeas and 22 nays. The Committee Report
(Part 1) was filed on May 25, 2011 (H. Rept. 112-89), and Part
2 of the Committee Report was filed on July 19, 2011 (H. Rept.
112-89, Part 2).
On July 21, 2011, the House considered H.R. 1315 and passed
the bill, with amendments, by a record vote of 241 yeas and 173
nays.
BUREAU OF CONSUMER FINANCIAL PROTECTION ACCOUNTABILITY AND TRANSPARENCY
ACT OF 2011
(H.R. 1355)
Summary
H.R. 1355, the Bureau of Consumer Financial Protection
Accountability and Transparency Act of 2011, would amend the
Dodd-Frank Act to make the funding of the CFPB more transparent
and to make the CFPB accountable to Congress and the President
for its spending. H.R. 1355 would (1) move the CFPB from the
Federal Reserve System to the Department of the Treasury, where
it would no longer be an agency autonomous from the executive
branch; (2) place the CFPB's compensation structure under the
federal government's General Schedule; (3) revoke the automatic
and unreviewable annual funding of the CFPB by the Federal
Reserve Board; (4) subject the CFPB to the regular
authorization, budget, and appropriations process of the
Department of the Treasury; and (5) repeal the establishment of
the Consumer Financial Protection Fund and the Consumer
Financial Civil Penalty Fund.
Legislative History
On April 4, 2011, H.R. 1355 was introduced by Subcommittee
on Oversight and Investigations Chairman Randy Neugebauer and
referred to the Committee on Financial Services. The bill has
two cosponsors.
On February 8, 2012, the Subcommittee held a legislative
hearing on H.R. 1355 entitled ``Legislative Proposals to
Promote Accountability and Transparency at the Consumer
Financial Protection Bureau.'' The Subcommittee received
testimony from the following witnesses: Mr. Michael J. Hunter,
Chief Operating Officer, American Bankers Association; Mr.
Andrew J. Pincus, Partner, Mayer Brown LLP, on behalf of the US
Chamber of Commerce; Mr. Chris Stinebert, President and Chief
Executive Officer, American Financial Services Association; and
Mr. Arthur E. Wilmarth, Jr., Professor of Law, The George
Washington University.
SMALL BUSINESS LENDING ENHANCEMENT ACT OF 2011
(H.R. 1418)
Summary
H.R. 1418, the Small Business Lending Enhancement Act of
2011, would raise the cap on member business lending for
qualified credit unions to 27.5 percent of the credit union's
total assets. To qualify, a credit union would be required to:
(1) have member business loans outstanding at the end of each
of the four consecutive quarters preceding application, in a
total amount of not less than 80 percent of the statutory
limit; (2) be well-capitalized; (3) demonstrate five years'
experience of sound underwriting and servicing of member
business loans; (4) have experience in managing member business
loans; and (5) satisfy standards for safe and sound operations.
The bill also would require the NCUA to develop a tiered
approval process within six months of the legislation's
enactment under which insured credit unions issuing member
business loans are restricted from increasing their lending by
more than 30 percent per year. H.R. 1418 would also require two
studies. It would direct the NCUA to study the types of credit
unions that engage in member business lending, the
characteristics of these loans, and the types of businesses
that benefit from them, and report its findings to Congress.
The NCUA would also be required to analyze the effect of
expanded business lending on the safety and soundness of the
National Credit Union Share Insurance Fund and the credit union
system. H.R. 1418 would also direct the GAO to study member
business lending, including trends, types, and amounts of loans
as well as the effects of H.R. 1418 on small business lending.
The GAO would be required to report its findings to Congress
within three years, along with any legislative recommendations.
Legislative History
On April 7, 2011, H.R. 1418 was introduced by
Representative Edward Royce and was referred to the Committee
on Financial Services. The bill has 104 cosponsors.
On October 12, 2011, the Subcommittee held a legislative
hearing on H.R. 1418 entitled ``H.R. 1418: The Small Business
Lending Enhancement Act of 2011.'' The Subcommittee received
testimony from the following witnesses: The Honorable Deborah
Matz, Chairman, National Credit Union Administration; Mr. Sal
Marranca, President and Chief Executive Officer, Cattaraugus
County Bank, on behalf of the Independent Community Bankers of
America; Mr. Albert C. Kelly, Jr., President and Chief
Executive Officer, SpiritBank; Chairman-Elect, American Bankers
Association; Mr. Gary Grinnell, President and Chief Executive
Officer, Corning Credit Union, on behalf of the National
Association of Federal Credit Unions; Mr. Jeff York, President
and Chief Executive Officer, Coasthills Federal Credit Union,
on behalf of the Credit Union National Association; and Mr.
Mike Hanson, President and Chief Executive Officer,
Massachusetts Credit Union Share Insurance Corporation.
CONSUMER RENTAL PURCHASE AGREEMENT ACT
(H.R. 1588)
Summary
H.R. 1588, the Consumer Rental Purchase Agreement Act,
would define rental purchase transactions, create uniform
national disclosure standards for rent-to-own businesses, and
prohibit certain practices. The bill would define a number of
terms pertaining to rental purchase transactions, including a
``rental-purchase agreement,'' which exclude credit sales and
consumer leases (as defined by the Truth in Lending Act). H.R.
1588 would also (1) require rent-to-own merchants to include
certain disclosures about the transaction in their rental-
purchase agreements; (2) specify the rights of consumers to
acquire ownership of the property and request a statement of
their account; (3) specify provisions that are prohibited from
appearing in rental-purchase agreements; (4) include standards
governing renegotiations and extensions of rental-purchase
agreements; (5) mandate disclosures for both point-of-rental
and advertising; (6) permit consumers to take civil action
against any merchant that fails to comply with the requirements
in the bill; (7) require the Federal Reserve Board to prescribe
mandated regulations; (8) establish that the bill's
requirements would be enforced by the Federal Trade Commission
and that enforcement actions could also be brought by any state
attorney general; and (9) establish criminal liability for
those merchants that willfully and knowingly give false or
inaccurate information or fail to make any required disclosures
under the bill. The consumer protections contained in H.R. 1588
would generally exceed those contained in existing state laws,
but H.R. 1588 would not preempt stronger state laws. The bill
would, however, preclude states from treating rental-purchase
transactions as credit sales and from requiring the disclosure
of an annual percentage rate.
Legislative History
On April 15, 2011, H.R. 1588 was introduced by
Representative Francisco ``Quico'' Canseco and was referred to
the Committee on Financial Services. The bill has 112
cosponsors.
On July 26, 2011, the Subcommittee held a legislative
hearing on H.R. 1588 entitled ``Examining Rental Purchase
Agreements and the Potential Role for Federal Regulation.'' The
Subcommittee received testimony from the following witnesses:
Charles Harwood, Deputy Director, Bureau of Consumer
Protection, Federal Trade Commission; Jim Hawkins, Assistant
Professor of Law, University of Houston Law Center; Roy Soto,
Owner, Premier Rental Purchase; Vivian Saunders, rent-to-own
customer from Lewiston Woodville, NC; and Margot Freeman
Saunders, Of Counsel, National Consumer Law Center.
On November 17, 2011, the Subcommittee met in open session
and ordered the bill, as amended, favorably reported to the
Committee by a voice vote.
On May 31, 2012, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by a vote of 33 yeas and 21 nays.
BUREAU OF CONSUMER FINANCIAL PROTECTION TRANSFER CLARIFICATION ACT
(H.R. 1667)
Summary
H.R. 1667, the Bureau of Consumer Financial Protection
Transfer Clarification Act, would amend Section 1062 of the
Dodd-Frank Act. The Dodd-Frank Act shifts consumer protection
functions to the CFPB from the Federal Reserve, the FDIC, the
NCUA, the OCC, the OTS and HUD. H.R. 1667 would delay any
further transfer of powers until the later of the following:
(1) July 21, 2011; or (2) the date on which the Director of the
CFPB is confirmed by the Senate.
Legislative History
On May 2, 2011, H.R. 1667 was introduced by Subcommittee on
Financial Institutions and Consumer Credit Chairman Shelley
Moore Capito and was referred to the Committee on Financial
Services. The bill has 14 cosponsors.
On March 16, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing on
a draft of H.R. 1667 entitled ``Oversight of the Consumer
Financial Protection Bureau.'' Ms. Elizabeth Warren, Special
Advisor to the Secretary of the Treasury for the CFPB,
Department of the Treasury, testified.
On April 6, 2011, the Subcommittee held a legislative
hearing on H.R. 1667 entitled ''Legislative Proposals to
Improve the Structure of the Consumer Financial Protection
Bureau.'' The Subcommittee received testimony from the
following witnesses: Ms. Leslie R. Andersen, President and
Chief Executive Officer, Bank of Bennington on behalf of the
American Bankers Association; Ms. Lynette W. Smith, President
and Chief Executive Officer, Washington Gas Light FCU on behalf
of the National Association of Federal Credit Unions; Mr. Jess
Sharp, Executive Director, Center for Capital Markets
Competitiveness, U.S. Chamber of Commerce; Mr. Hilary Shelton,
Director, NAACP Washington Bureau and Senior VP for Advocacy
and Policy, NAACP; Mr. Noah H. Wilcox, President and Chief
Executive Officer, Grand Rapids State Bank on behalf of the
Independent Community Bankers of America; Mr. Rod Staatz,
President and Chief Executive Officer, SECU of Maryland on
behalf of the Credit Union National Association; Mr. Richard
Hunt, President, Consumer Bankers Association; and Prof. Adam
J. Levitin, Georgetown University Law Center.
On May 4, 2011, the Subcommittee met in open session and
ordered the bill favorably reported to the Committee by a
record vote of 13 yeas and 8 nays.
On May 12, 2011, the Committee held a markup and ordered
the bill favorably reported to the House by a record vote of 32
yeas and 26 nays.
The Committee Report, Part 1, was filed on May 27, 2011 (H.
Rept. 112-93), and Part 2 was filed on July 19, 2011 (H. Rept.
112-93, Part 2).
On July 14, 2011, the Rules Committee issued a Committee
Print of H.R. 1315, which included the text of H.R. 1121 and
H.R. 1667.
On July 21, 2011, the House considered H.R. 1315 and passed
the bill, with amendments, by a record vote of 241 yeas and 173
nays.
COMMUNITIES FIRST ACT
(H.R. 1697)
Summary
H.R. 1697, the Communities First Act, would reduce
regulatory, paperwork, and tax burdens on small banks. The bill
would revise regulatory requirements for community banks by (1)
amending the Federal Deposit Insurance Act to permit certain
insured depository institutions to submit a short-form report
of condition; (2) amending the Sarbanes-Oxley Act to exempt
certain small-sized depository institutions from the annual
management assessment of internal controls requirements; (3)
amending the Truth in Lending Act to exempt from escrow or
impound account requirements any loan secured by a first lien
on a consumer's principal dwelling, if the loan is held by a
creditor with assets of $10 billion or less; and (4) amending
the Gramm-Leach-Bliley Act to exempt certain financial
institutions from furnishing a mandatory annual privacy notice.
The bill would also amend the Securities Exchange Act to
direct the SEC: (1) to ensure that information, documents, and
reports accurately and appropriately reflect the business model
of a registered security issuer; (2) to approve any new or
amended generally accepted accounting principle only if it
would have no negative economic impact on certain small-sized
insured depository institutions; (3) to increase the
shareholder registration threshold for certain banks and bank
holding companies.
The bill would also amend the Dodd-Frank Act: (1) to
authorize the FSOC to set aside a final regulation prescribed
by the CFPB if the Council decides that it would be
inconsistent with the safe and sound operation of U.S.
financial institutions, or could have a disproportionate
negative impact on a subset of the banking industry; and (2) to
repeal the authority of the Federal Reserve Board to delegate
to the CFPB its authority to examine persons for compliance
with federal consumer financial laws.
For the purposes of capital calculation, the bill
authorizes specified institutions: (1) to amortize losses or
write-downs on a quarterly basis over a 10-year period; and (2)
to average, over a five-year period, the appraised value of any
real estate securing a loan held by the institution.
Legislative History
On May 3, 2011, H.R. 1697 was introduced by Representative
Blaine Luetkemeyer and was referred to the Committee on
Financial Services. The bill has 55 cosponsors.
On November 16, 2011, the Subcommittees on Financial
Institutions and Consumer Credit and Capital Markets and
Government Sponsored Enterprises held a joint legislative
hearing on H.R. 1697 entitled ``H.R. 1697, The Communities
First Act.'' The Subcommittees received testimony from the
following witnesses: Mr. Salvatore Marranca, President and
Chief Executive Officer, Cattaraugus County Bank on behalf of
the Independent Community Bankers Association; Mr. O. William
Cheney, President and Chief Executive Officer, Credit Union
National Association; Mr. John A. Klebba, President and Chief
Executive Officer, Legends Bank, on behalf of the Missouri
Bankers Association; Mr. Fred Becker, Jr., President and Chief
Executive Officer, National Association of Federal Credit
Unions; Mr. Arthur E. Wilmarth, Jr., Professor of Law, George
Washington University, Executive Director, Center for Law,
Economics and Finance; Mr. Damon Silvers, Director, Policy and
Special Counsel, American Federation of Labor and Congress of
Industrial Organizations; and Mr. Adam J. Levitin, Professor of
Law, Georgetown University Law Center.
COMMON SENSE ECONOMIC RECOVERY ACT OF 2011
(H.R. 1723)
Summary
H.R. 1723, the Common Sense Economic Recovery Act of 2011,
would allow financial institutions to treat certain loans that
would have otherwise been classified on a nonaccrual basis as
``accrual loans.'' In contrast to the subjective standards
examiners rely on, the bill would allow a bank to classify
loans, including modified mortgages, as accrual loans if they
meet the following criteria: (1) the loans are current; (2) no
payments were more than 30 days delinquent during the last six
months; (3) the loans are amortizing; and (4) payments are not
being made through an interest reserve account. The bill would
forbid banking regulators from imposing additional capital
requirements on loans that would be treated as accrual loans
under this bill. The bill would require the FSOC to study the
issue of any contradictory guidance from federal banking
agencies on loan classification and capital requirements. The
bill would sunset two years after the date of enactment.
Legislative History
On May 4, 2011, H.R. 1723 was introduced by Representative
Bill Posey and was referred to the Committee on Financial
Services. The bill has 52 cosponsors.
On July 8, 2011, the Subcommittee held a hearing on H.R.
1723 entitled ``Legislative Proposals Regarding Bank
Examination Practices.'' The Subcommittee received testimony
from the following witnesses: Mr. James H. McKillop, President
and CEO, Independent Bankers Bank of Florida on behalf of the
Independent Community Bankers of America; Mr. Michael Whalen,
President and CEO, Heart of America Group; Professor Simon
Johnson, The Ronald A. Kurtz, Professor of Entrepreneurship at
the Massachusetts Institute of Technology's Sloan School of
Management; Mr. George French, Deputy Director, Division of
Risk Management Supervision of the FDIC; and Ms. Jennifer
Kelly, Senior Deputy Comptroller for Mid-Size/Community Bank
Supervision of the OCC.
On November 17, 2011, the Subcommittee met in open session
to consider H.R. 1723. The motion to favorably report H.R.
1723, as amended, to the Committee was not agreed to and the
Committee did not order the bill, as amended, favorably
reported to the Committee by a record vote of 8 yeas and 10
nays.
TO AMEND THE FEDERAL DEPOSIT INSURANCE ACT TO REPLACE THE DIRECTOR OF
THE BUREAU OF CONSUMER FINANCIAL PROTECTION WITH THE CHAIRMAN OF THE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM AS A MEMBER OF THE
BOARD OF DIRECTORS OF THE FEDERAL DEPOSIT INSURANCE CORPORATION
(H.R. 2081)
Summary
H.R. 2081, a bill to amend the Federal Deposit Insurance
Act to replace the Director of the Bureau of Consumer Financial
Protection with the Chairman of the Board of Governors of the
Federal Reserve System as a member of the Board of Directors of
the Federal Deposit Insurance Corporation, would amend the
Federal Deposit Insurance Act and replace the Director of the
CFPB with the Chairman of the Board of Governors of the Federal
Reserve System as a member of the FDIC's Board of Directors.
Legislative History
On June 1, 2011, H.R. 2081 was introduced by Representative
James Renacci and referred to the Committee on Financial
Services. The bill has 11 cosponsors.
On February 8, 2012, the Subcommittee held a legislative
hearing on H.R. 2081 entitled ``Legislative Proposals to
Promote Accountability and Transparency at the Consumer
Financial Protection Bureau.'' The Subcommittee received
testimony from the following witnesses: Mr. Michael J. Hunter,
Chief Operating Officer, American Bankers Association; Mr.
Andrew J. Pincus, Partner, Mayer Brown LLP, on behalf of the US
Chamber of Commerce; Mr. Chris Stinebert, President and Chief
Executive Officer, American Financial Services Association; and
Mr. Arthur E. Wilmarth, Jr., Professor of Law, The George
Washington University.
TO INSTRUCT THE INSPECTOR GENERAL OF THE FEDERAL DEPOSIT INSURANCE
CORPORATION TO STUDY THE IMPACT OF INSURED DEPOSITORY INSTITUTION
FAILURES, AND FOR OTHER PURPOSES
(H.R. 2056)
Summary
H.R. 2056, a bill to instruct the Inspector General of the
Federal Deposit Insurance Corporation (FDIC) to study the
impact of insured depository institution failures, would
require the FDIC's Inspector General to study issues raised by
bank failures in states that have had more than ten such
failures since 2008. The study would cover the following
subjects: (1) the use and effect of shared loss agreements; (2)
the significance of paper losses; (3) the success of FDIC field
examiners in implementing FDIC guidelines regarding workouts of
commercial real estate; (4) the application and impact of
consent orders and cease and desist orders; (5) the impact of
FDIC policies on raising capital; and (6) the FDIC's
involvement in private equity investment. The bill would also
instruct the GAO to study: (1) the causes of bank failures in
states with 10 or more failures since 2008; (2) the procyclical
impact of fair value accounting standards; (3) the causes and
potential solutions for the cycle of loan write downs, raising
capital, and failures; and (4) the impact of bank failures upon
the community.
Legislative History
On May 31, 2011, H.R. 2056 was introduced by Representative
Lynn Westmoreland and was referred to the Committee on
Financial Services. The bill has 13 cosponsors.
On July 8, 2011, the Subcommittee held a hearing on H.R.
2056 entitled ``Legislative Proposals Regarding Bank
Examination Practices.'' The Subcommittee received testimony
from the following witnesses: James H. McKillop, President and
CEO, Independent Bankers Bank of Florida on behalf of the
Independent Community Bankers of America; Michael Whalen,
President and CEO, Heart of America Group; and Professor Simon
Johnson, The Ronald A. Kurtz, Professor of Entrepreneurship at
the Massachusetts Institute of Technology's Sloan School of
Management; George French, Deputy Director, Division of Risk
Management Supervision of the FDIC; and Jennifer Kelly, Senior
Deputy Comptroller for Mid-Size/Community Bank Supervision of
the OCC.
On July 20, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote. The Committee Report was filed on July 26, 2011
(H. Rept. 112-182).
On July 28, 2011, the House considered H.R. 2056 under
suspension of the rules, and passed the bill, as amended, by
voice vote.
On November 17, 2011, the Senate considered H.R. 2056 and
passed the bill, with amendments, by Unanimous Consent.
On December 20, 2011, the House considered the Senate
amendments to H.R. 2056 under suspension of the rules, and
agreed to the amendments by Unanimous Consent.
On January 3, 2012, H.R. 2056 was signed by the President
and became Public Law No. 112-088.
MEDICAL DEBT RESPONSIBILITY ACT OF 2011
(H.R. 2086)
Summary
H.R. 2086, the ``Medical Debt Responsibility Act of 2011,''
amends the Fair Credit Reporting Act to require consumer
reporting agencies to remove paid or settled medical debt of up
to $2,500 within 45 calendar days from credit reports.
Legislative History
On June 2, 2011, H.R. 2086 was introduced by Representative
Heath Shuler and referred to the Committee on Financial
Services. The bill has 54 cosponsors.
On September 13, 2012, the Subcommittee held a hearing on
H.R. 2086 entitled, ``Examining the Uses of Consumer Credit
Data.'' The Subcommittee received testimony on the first panel
from: Mr. Robert Schoshinski, Assistant Director, Division of
Privacy and Identity Protection, Federal Trade Commission. The
Subcommittee received testimony on the second panel from: Mr.
Rodney Anderson, Supreme Lending; Mr. Stuart K. Pratt,
President and CEO, Consumer Data Industry Association; Ms. Mary
Spector, Associate Professor of Law, Southern Methodist
University Dedman School of Law; Mr. Michael A. Turner; Ph.D.,
President & CEO, Policy & Economic Research Council; and Ms.
Chi Chi Wu, Staff Attorney, National Consumer Law Center.
TO AMEND THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
TO ADJUST THE DATE ON WHICH CONSOLIDATED ASSETS ARE DETERMINED FOR
PURPOSES OF EXEMPTING CERTAIN INSTRUMENTS OF SMALLER INSTITUTIONS FROM
CAPITAL DEDUCTIONS
(H.R. 3128)
Summary
H.R. 3128, a bill to amend the Dodd-Frank Wall Street
Reform and Consumer Protection Act to Adjust the Date on which
Consolidated Assets are Determined for Purposes of Exempting
Certain Instruments of Smaller Institutions from Capital
Deductions, would amend the Dodd-Frank Act to add March 31,
2010, as a date for calculation of total consolidated assets,
for purposes of exempting certain debt or equity instruments of
smaller financial institutions from capital deduction
requirements.
Legislative History
On October 6, 2011, H.R. 3128 was introduced by
Representative Michael Grimm and was referred to the Committee
on Financial Services. The bill has eight cosponsors.
On May 18, 2012, the Subcommittee held a hearing that
discussed H.R. 3128, entitled ``The Impact of the Dodd-Frank
Act: Understanding Heightened Regulatory Capital
Requirements.'' The Subcommittee received testimony from Mr.
Daniel McCardell, Senior Vice President and Head of Regulatory
Affairs, The Clearing House, and Mr. Richard Wald, Chief
Regulatory Officer, Emigrant Bank.
On May 31, 2012, the Committee met in open session and
ordered the bill favorably reported to the House by a vote of
35 yeas and 15 nays.
FINANCIAL INSTITUTIONS EXAMINATION FAIRNESS AND REFORM ACT
(H.R. 3461)
Summary
H.R. 3461, the Financial Institutions Examination and
Fairness and Reform Act, would amend the Federal Financial
Institutions Examination Council Act of 1978 to require federal
financial institution regulatory agencies to make a final
examination report to a financial institution within 60 days of
the later of: (1) the exit interview for an examination of the
institution or (2) the provision of additional information by
the institution relating to the examination. The bill would set
a deadline for the exit interview if a financial institution is
not subject to a resident examiner program. H.R. 3461 would set
forth examination standards for financial institutions. It
would prohibit federal financial institution regulatory
agencies from requiring well capitalized financial institutions
to raise additional capital in lieu of an action prohibited by
the examination standards.
The bill would also establish an Office of Examination
Ombudsman within the Federal Financial Institutions Examination
Council. H.R. 3461 would grant a financial institution the
right to appeal a material supervisory determination contained
in a final report of examination. The bill would require the
Ombudsman to determine the merits of the appeal on the record,
after an opportunity for a hearing before an independent
administrative law judge. It would declare the decision by the
Ombudsman on an appeal to be the final agency action, and bind
the agency whose supervisory determination was the subject of
the appeal and the financial institution making the appeal.
H.R. 3461 would amend the Riegle Community Development and
Regulatory Improvement Act of 1994 to require: (1) the CFPB to
establish an independent intra-agency appellate process in
connection with the regulatory appeals process; and (2)
appropriate safeguards to protect an insured depository
institution or insured credit union from retaliation by the
CFPB, the NCUA Board, or any other federal banking agency for
exercising its rights.
Legislative History
On November 17, 2011, H.R. 3461 was introduced by
Subcommittee on Financial Institutions and Consumer Credit
Chairman Shelley Moore Capito and referred to the Committee on
Financial Institutions. The bill has 169 cosponsors.
On February 1, 2012, the Subcommittee held a legislative
hearing on H.R. 3461 entitled ``H.R. 3461, the Financial
Institutions Examination Fairness and Reform Act.'' The
Subcommittee received testimony from the following witnesses:
Mr. Kevin M. Bertsch, Associate Director of the Division of
Banking Supervision and Regulation, Board of Governors of the
Federal Reserve System; Ms. Sandra L. Thompson, Director of the
Division of Risk Management Supervision, FDIC; Mr. David M.
Marquis, Executive Director, National Credit Union
Administration; Ms. Jennifer Kelly, Senior Deputy Comptroller
for Mid-Size/Community Bank Supervision, OCC; Mr. Albert C.
Kelly, Jr., President and CEO, SpiritBank on behalf of the
American Bankers Association; Mr. Kenneth Watts, President and
CEO, West Virginia Credit Union League on behalf of the Credit
Union National Association; Mr. Noah Wilcox, President and CEO,
Grand Rapids State Bank on behalf of the Independent Community
Bankers of America; Ms. Jeanne Kucey, President and CEO,
JetStream Federal Credit Union on behalf of the National
Association of Federal Credit Unions; and Mr. Eugene Ludwig,
Founder and Chief Executive Officer, Promontory Financial
Group, LLC.
PROPRIETARY INFORMATION PROTECTION ACT OF 2012
(H.R. 3871)
Summary
H.R. 3871, the Proprietary Information Protection Act of
2012, would amend the Federal Deposit Insurance Act to provide
certainty to financial institutions that a production of
information compelled by the CFPB will not waive either the
attorney-client privilege or work-product immunity. In
addition, H.R. 3871 would provide that any privileged material
that the CFPB shares with other federal agencies remains
privileged.
Legislative History
On February 1, 2012, H.R. 3871 was introduced by
Representative Bill Huizenga and referred to the Committee on
Financial Services. The bill has 4 cosponsors.
On February 8, 2012, the Subcommittee held a legislative
hearing on H.R. 3871 entitled ``Legislative Proposals to
Promote Accountability and Transparency at the Consumer
Financial Protection Bureau.'' The Subcommittee received
testimony from the following witnesses: Mr. Michael J. Hunter,
Chief Operating Officer, American Bankers Association; Mr.
Andrew J. Pincus, Partner, Mayer Brown LLP, on behalf of the US
Chamber of Commerce; Mr. Chris Stinebert, President and Chief
Executive Officer, American Financial Services Association; and
Mr. Arthur E. Wilmarth, Jr., Professor of Law, The George
Washington University.
TO AMEND THE FEDERAL DEPOSIT INSURANCE ACT WITH RESPECT TO INFORMATION
PROVIDED TO THE BUREAU OF CONSUMER FINANCIAL PROTECTION
(H.R. 4014)
Summary
To provide certainty that the production of information
compelled by the CFPB will not waive either the attorney-client
privilege or work-product immunity, H.R. 4014 would amend the
Federal Deposit Insurance Act to make explicit that the
production of privileged materials to the CFPB does not waive
these privileges as to third parties. H.R. 4014 would amend the
Federal Deposit Insurance Act to make the CFPB a ``covered
agency'' that may share information with another covered agency
or any other federal agency without waiving any privilege
applicable to the information. The bill would prohibit the
submission of information to the CFPB in the course of its
supervisory or regulatory process from being construed as
waiving, destroying, or affecting any privilege that may be
claimed with respect to such information under federal or state
law as to any person or entity other than the CFPB, another
federal banking agency, a state bank supervisor, or a foreign
banking authority.
Legislative History
On February 13, 2012, H.R. 4014 was introduced by
Representative Bill Huizenga and was referred to the Committee
on Financial Services. The bill has four cosponsors.
On February 8, 2012, the Subcommittee held a legislative
hearing entitled ``Legislative Proposals to Promote
Accountability and Transparency at the Consumer Financial
Protection Bureau'' which examined a version of a bill, H.R.
3871, to provide certainty to financial institutions that a
production of information compelled by the CFPB will not waive
attorney-client privilege or work-product immunity. The
Subcommittee received testimony from the following witnesses:
Mr. Michael G. Hunter, Chief Operating Officer, American
Bankers Association; Mr. Andrew J. Pincus, Partner, Mayer Brown
LLP on behalf of the US Chamber of Commerce; Mr. Chris
Stinebert, President and CEO, American Financial Services
Association; and Prof. Arthur E. Wilmarth, Jr., Professor of
Law, Executive Director, Center for Law, Economics & Finance,
George Washington University Law School.
On February 16, 2012, the Committee met in open session and
ordered the bill favorably reported to the House by voice vote.
The Committee report was filed on March 20, 2012 (H. 112-417).
On March 26, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 4014 by voice vote.
On December 11, 2012, the Senate passed H.R. 4014, without
amendment, by unanimous consent.
On December 20, 2012, H.R. 4014 was signed by the President
and became Public Law No. 112-215.
CONSUMER CREDIT ACCESS, INNOVATION AND MODERNIZATION ACT
(H.R. 6139)
Summary
H.R. 6139, the ``Consumer Credit Access, Innovation and
Modernization Act,'' establishes a federal charter to be
granted by the Office of the Comptroller of the Currency (OCC)
to qualified nondepository creditors known as ``National
Consumer Credit Corporations.'' Such corporations would be
tasked with offering OCC-approved financial products to
``underserved'' consumers, making loans to small businesses
that have fewer than 500 full-time employees, and offering
products and services designed to help underserved consumers
improve their credit scores and encourage personal savings. The
bill limits the amount of credit that Credit Corporations may
extend to any consumer or small business and prohibits them
from making consumer loans that have prepayment penalties or
maturities of 30 days or less. H.R. 6139 forbids any government
authority from setting usury limits on loans extended by Credit
Corporations and preempts state laws applicable to Credit
Corporations in three situations. Under the bill, the OCC would
have general supervisory and enforcement authority over Credit
Corporations.
Legislative History
On July 18, 2012, H.R. 6139 was introduced by
Representative Blaine Luetkemeyer and referred to the Committee
on Financial Services. The bill has six cosponsors.
On July 24, 2012, the Subcommittee held a legislative
hearing on H.R. 6139 entitled ``Examining Consumer Credit
Access Concerns, New Products and Federal Regulations.'' The
Subcommittee received testimony on the first panel from: Ms.
Grovetta N. Gardineer, Deputy Comptroller for Compliance Policy
at the Office of the Comptroller of the Currency and the
Honorable John Munn, Director, Banking and Finance at the State
of Nebraska Department of Banking and Finance. The Subcommittee
received testimony on the second panel from: Ms. Mary Jackson,
Senior Vice President, Corporate Affairs, Cash America
International, Inc.; Ms. Frances C. Bishop, Dollar Pawn, Inc.;
Mr. John Berlau, Senior Fellow, Finance and Access to Capital,
Competitive Enterprise Institute; and Mr. Kenneth W. Edwards,
Vice President, Federal Affairs, Center for Responsible
Lending.
THE CREDIT ACCESS AND INCLUSION ACT
(H.R. 6363)
Summary
H.R. 6363, ``The Credit Access and Inclusion Act,'' amends
the Fair Credit Reporting Act to make clear that the statute
permits ``public utility services'' to voluntarily report
positive and negative payment data to consumer reporting
agencies. The only information that would be allowed to be
reported under this legislation would be information that
relates to payment for services or other terms regarding the
provision of the services. This information would include
information regarding deposits, discounts, or other conditions
for interrupting or terminating service.
Legislative History
On September 10, 2012, H.R. 6363 was introduced by
Representative Jim Renacci and referred to the Committee on
Financial Services. The bill has four cosponsors.
On September 13, 2012, the Subcommittee held a legislative
hearing on H.R. 6363 entitled ``Examining the Uses of Consumer
Credit Data.'' The Subcommittee received testimony on the first
panel from: Mr. Robert Schoshinski, Assistant Director,
Division of Privacy and Identity Protection, Federal Trade
Commission. The Subcommittee received testimony on the second
panel from: Mr. Rodney Anderson, Supreme Lending; Mr. Stuart K.
Pratt, President and CEO, Consumer Data Industry Association;
Ms. Mary Spector, Associate Professor of Law, Southern
Methodist University Dedman School of Law; Mr. Michael A.
Turner; Ph.D., President & CEO, Policy & Economic Research
Council; and Ms. Chi Chi Wu, Staff Attorney, National Consumer
Law Center.
A DISCUSSION DRAFT OF LEGISLATION INTENDED TO ENSURE THAT SPOUSES WHO
DO NOT WORK OUTSIDE THE HOME OR WHO EARN LESS THAN THEIR SPOUSES CAN
OBTAIN ACCESS TO CREDIT
(H.R. ___)
Summary
This discussion draft is intended to ensure that the
Federal Reserve Board does not interpret the Credit Card
Accountability Responsibility and Disclosure Act of 2009 in a
way that unfairly restricts credit for consumers who do not
work outside the home, particularly married women. The
discussion draft amends Section 150 of the Truth-in-Lending Act
to require credit card issuers to evaluate the ability of both
the consumer and the consumer's spouse to jointly make payments
on a credit card account. The discussion draft would also allow
an unemployed spouse to rely on the employed spouse's income
when applying for a credit card.
This discussion draft is intended to ensure that the
Consumer Financial Protection Bureau amends the Federal Reserve
Board's rules implementing the Credit Card Accountability
Responsibility and Disclosure Act of 2009 so consumers who are
stay-at-home spouses can obtain credit cards in their own
names. The discussion draft amends Section 150 of the Truth-in-
Lending Act to require credit card issuers to evaluate the
ability of both the consumer and the consumer's spouse to
jointly make payments on a credit card account. The discussion
draft would also allow an unemployed spouse to rely on the
employed spouse's income when applying for a credit card.''
Legislative History
On June 6, 2012, the Subcommittee held a legislative
hearing on this discussion draft entitled ``An Examination of
the Federal Reserve's Final Rule on the CARD Act's `Ability to
Repay' Requirement.'' The Subcommittee received testimony on
the first panel from: Ms. Gail Hillebrand, Associate Director
of Consumer Education and Engagement at the Consumer Financial
Protection Bureau. The Subcommittee received testimony on the
second panel from: Mr. Kirk Simme, Senior Vice President of
Credit, Charming Shoppes, Inc.; Mr. Oliver Ireland, Partner,
Morrison & Foerster, LLP; and Ms. Ashley Boyd, Campaign
Director of MomsRising.
Subcommittee Oversight Activities
INTERCHANGE FEES
On February 17, 2011, the Subcommittee held a hearing
entitled ``Understanding the Federal Reserve's Proposed Rule on
Interchange Fees: Implications and Consequences of the Durbin
Amendment.'' The hearing examined the Federal Reserve Board's
December 16, 2010 proposed rule to implement Section 1075 of
the Dodd-Frank Act, relating to the fees charged to merchants
when processing debit card transactions. The Subcommittee
received testimony from the following witnesses: Sarah Raskin,
Member, Federal Reserve Board of Governors; Frank Michael,
President and CEO of Allied Credit Union on behalf of the
Credit Union National Association; David Kemper, Chairman,
President & CEO of Commerce Bank on behalf of the American
Bankers Association and the Consumer Bankers Association; Doug
Kantor, Partner, Steptoe & Johnson on behalf of the Merchant
Payments Coalition; Josh Floum, General Counsel, Visa; and
David Seltzer, Vice President and Treasurer of 7-Eleven on
behalf of the Retail Industry Leaders Association.
REGULATORY BURDEN REDUCTION
On March 2, 2011, the Subcommittee held a hearing entitled
``The Effect of Dodd-Frank on Small Financial Institutions and
Small Businesses,'' to address the challenges faced by
community-based financial institutions and their small business
clientele from the implementation of the Dodd-Frank Act. The
hearing focused on the effectiveness of the Dodd-Frank Act's
exemptions for institutions with less than $10 billion in
assets, particularly the exemption from the CFPB's examination
and enforcement authority. In addition, the hearing examined
the link between the effects of the Dodd-Frank Act on small
institutions and the ability of small businesses to secure
loans. The Subcommittee received testimony from the following
witnesses: Albert C. Kelly, Jr., President and Chief Executive
Officer, Spirit Bank, on behalf of the American Bankers
Association; John Buckley, President and Chief Executive
Officer, Gerber Federal Credit Union on behalf of the National
Association of Federal Credit Unions; O. William Cheney,
President and Chief Executive Officer, Credit Union National
Association; Chris Stinebert, President and Chief Executive
Officer, American Financial Services Association; James D.
MacPhee, Chairman, Independent Community Bankers of America;
Peter Skillern, Executive Director, Community Reinvestment
Association of North Carolina; Jess Sharp, Executive Director,
Center for Capital Markets Competitiveness, U.S. Chamber of
Commerce; Robert Nielsen, Chairman of the Board, National
Association of Home Builders; John M. Schaible, Chairman, Atlas
Federal; and David Borris, Main Street Alliance.
On March 1, 2012, the Subcommittee held a hearing entitled
``Understanding the Effects of the Repeal of Regulation Q on
Financial Institutions and Small Businesses.'' The hearing
examined the effect of Regulation Q's repeal on the funding
costs of banks, the demand for interest-bearing checking
accounts, the ability of smaller banks to compete for deposits
against larger ones, and the credit costs for businesses and
consumers. The Subcommittee received testimony from Mr. Cliff
McCauley, Senior Executive Vice President of Frost Bank, and
Mr. Alex J. Pollock, Resident Fellow at the American Enterprise
Institute.
On March 14, 2012, the Subcommittee held a field hearing in
San Antonio, Texas, entitled ``An Examination of the Challenges
Facing Community Financial Institutions in Texas,'' to examine
the effect of new financial regulations on the ability of
financial institutions to extend credit and stimulate job
growth. The hearing also examined the effects of excessively
stringent federal bank examinations on the economic recovery.
The Subcommittee received testimony from the following
witnesses: Mr. Robert Glenn, President and Chief Executive
Officer, Air Force Federal Credit Union; Mr. George Hansard,
President, Pecos County State Bank; Ms. Maria Martinez,
President and Chief Executive Officer, Border Federal Credit
Union; Mr. Cliff McCauley, Senior Executive Vice President,
Frost Bank; Mr. Les Parker, Chairman, President and Chief
Executive Officer, United Bank of El Paso de Norte; Mr. Ignacio
Urrabazo, Jr., President, Commerce Bank; and Ms. Janie Barrera,
President and Chief Executive Officer, Accion Texas Inc.
On April 16, 2012, the Subcommittee held a field hearing in
Cleveland, Ohio, entitled ``An Examination of the Challenges
Facing Community Financial Institutions in Ohio,'' to hear from
representatives from Ohio-based financial institutions about
the effect of new financial regulations on their ability to
extend credit and stimulate job growth, while staying
economically viable. The hearing also examined the effect of
federal bank examination policies and procedures--examinations
that some financial institutions contend may be overzealous--on
economic recovery. The Subcommittee received testimony from the
following witnesses: Mr. Stan Barnes, Chief Executive Officer,
CSE Federal Credit Union; Mr. Bill Blake, Senior Vice President
and Associate General Counsel, KeyBank; Mr. G. Courtney Haning,
Chairman, President and Chief Executive Officer, Peoples
National Bank; Mr. Steven Fireman, President and General
Counsel, Economic and Community Development Institute; and Mr.
Martin Cole, President and Chief Executive Officer, Andover
Bank.
On May 9, 2012, the Subcommittee held a hearing entitled
``Rising Regulatory Compliance Costs and Their Impact on the
Health of Small Financial Institutions.'' The hearing examined
the efforts of prudential regulators to ensure that new
regulations do not unnecessarily constrain the financial
services industry, as well as the plans of financial
institutions for remaining viable in the face of rising
regulatory costs. The Subcommittee received testimony from the
following witnesses: Mr. William Grant, Chairman, President and
Chief Executive Officer, First United Bank & Trust; Mr. Ed
Templeton, President and Chief Executive Officer, SRP Federal
Credit Union; Mr. Samuel Vallandingham, Vice President and
Chief Information Officer, First State Bank; Mr. Terry West,
President and Chief Executive Officer, VyStar Credit Union; Mr.
Adam Levitin, Professor of Law, Georgetown University Law
Center; and Mr. Mike Calhoun, President, Center of Responsible
Lending.
FDIC OVERSIGHT
On May 26, 2011, the Subcommittee held a hearing entitled
``FDIC Oversight: Examining and Evaluating the Role of the
Regulator during the Financial Crisis and Today.'' The
Honorable Sheila C. Bair, Chairman of the FDIC, was the only
witness. The hearing focused on issues pertaining to the
Deposit Insurance Fund, bank capital requirements, consumer
financial protection initiatives, debit interchange fees, the
designation of systemically important financial institutions,
the authority to resolve failed financial institutions, the
Dodd-Frank Act's regulatory impact on financial institutions of
varying sizes, and mortgage servicing practices.
``TOO BIG TO FAIL''
On June 14, 2011, the Subcommittee held a hearing entitled
``Does the Dodd-Frank Act End `Too Big to Fail'?'' The purpose
of the hearing was to learn more about whether the FDIC's
Orderly Liquidation Authority, as created by the Dodd-Frank
Act, is appropriately structured to end taxpayer bailouts for
the largest financial institutions. The Subcommittee received
testimony from the following witnesses: Mr. Michael H.
Krimminger, General Counsel of the FDIC; Ms. Christy Romero,
Acting Special Inspector General, Office of the Special
Inspector General for TARP; Mr. Stephen J. Lubben, Daniel J.
Moore Professor of Law, Seton Hall University School of Law;
and Mr. Michael Barr, Professor of Law, University of Michigan
Law School.
MORTGAGE SERVICING STANDARDS
On July 7, 2011, the Subcommittees on Financial
Institutions and Consumer Credit and Oversight and
Investigations held a joint hearing entitled ``Mortgage
Servicing: An Examination of the Role of Federal Regulators in
Settlement Negotiations and the Future of Mortgage Servicing
Standards.'' The purpose of the hearing was to review the role
of Federal regulators in the ongoing mortgage servicing
settlement negotiations and the development of new mortgage
servicing standards. The Subcommittees received testimony from
the following witnesses: Ms. Julie Williams, First Senior
Deputy Comptroller and Chief Counsel of the OCC; Mr. Mark
Pearce, Director, Division of Depositor and Consumer Protection
at the FDIC; Mr. Raj Date, Associate Director of Research,
Markets and Regulations, CFPB, U.S. Department of the Treasury;
the Honorable Luther Strange, Alabama Attorney General; Mr.
David Stevens, President, Mortgage Bankers Association; and Mr.
Michael Calhoun, President, Center for Responsible Lending.
On March 15, 2012, the Subcommittee held a field hearing in
Las Vegas, Nevada, entitled ``An Examination of Potential
Private Sector Solutions to Mitigate Foreclosures in Nevada.''
This hearing examined potential private-sector solutions to
mitigate the wave of foreclosures that have hit the state of
Nevada, which has had the nation's highest state foreclosure
rate for five consecutive years. The Subcommittee received
testimony from the following witnesses: Ms. Verise Campbell,
Deputy Director, The State of Nevada Foreclosure Mediation
Program; Mr. Leonard Chide, President/Executive Director,
Neighborhood Housing Services of Southern Nevada; Ms. Janis
Grady, Treasurer and Director, Nevada Association of Mortgage
Professionals; Ms. Sue Longson, President and CEO, SONEPCO
Federal Credit Union; and Mr. Keith Lynam, REALTOR/Sales
Associate, Windermere Prestige Properties.
BANK EXAMINATION STANDARDS
On August 16, 2011, the Subcommittee held a field hearing
in Newnan, Georgia, entitled ``Potential Mixed Messages: Is
Guidance from Washington Being Implemented by Federal Bank
Examiners?'' The purpose of the hearing was to assess whether
or not federal bank examination standards are overly stringent
and impeding an economic recovery. The hearing focused on H.R.
2056, which was introduced by Representative Lynn Westmoreland
on May 31, 2011. H.R. 2056 would instruct the Inspector General
of the FDIC to study the impact of insured depository
institution failures and closely examine the agency's bank
closure procedures. The Subcommittee received testimony from
the following witnesses: Mr. Bret D. Edwards, Director,
Division of Resolutions and Receiverships for the Federal
Deposit Insurance Corporation; Mr. Christopher J. Spoth, Senior
Deputy Director, Division of Risk Management Supervision for
the Federal Deposit Insurance Corporation; Mr. Gil Barker,
Southeast District Deputy Comptroller for the OCC; Mr. Kevin M.
Bertsch, Associate Director, The Board of Governors of the
Federal Reserve System; Mr. Chuck Copeland, CEO, First National
Bank of Griffin; Mr. Michael Rossetti, President, Ravin Homes;
Mr. Jim Edwards, CEO, United Bank; and Mr. Gary Fox, Former
CEO, Bartow County Bank.
CYBERSECURITY
On September 14, 2011, the Subcommittee held a hearing
entitled ``Cybersecurity: Threats to the Financial Sector.''
The purpose of the hearing was to examine the threats computer
hackers pose to financial institutions and government agencies;
the methods used by hackers to breach information-technology
systems; and the cooperation among government agencies and the
private sector to thwart hackers. The Subcommittee received
testimony from the following witnesses: Mr. A.T. Smith,
Assistant Director, United States Secret Service; Mr. Gordon
Snow, Assistant Director of the Federal Bureau of
Investigation; Mr. Greg Schaffer, Acting Deputy Under
Secretary, Department of Homeland Security; Mr. William B.
Nelson, President and CEO, Financial Services--Information
Sharing and Analysis Center; Mr. Bryan Sartin, Director,
Investigative Response, Verizon; Mr. Brian Tillett, Chief
Security Strategist, Symantec; Mr. Greg Garcia, Partnership
Executive for Cybersecurity and Identity Management, Bank of
America; Dr. Greg Shannon, Chief Scientist, Carnegie Mellon
University's Software Engineering Institute CERT Liaison
Program; and Mr. Marc Rotenberg, President, Electronic Privacy
Information Center.
AVAILABILITY OF SHORT-TERM CREDIT
On September 22, 2011, the Subcommittee held a hearing
entitled ``An Examination of the Availability of Credit for
Consumers.'' The purpose of the hearing was to explore the
capacity of banking institutions to address the credit needs of
low- and middle-income consumers. The hearing also examined
alternatives to traditional banking services, including check
cashing and payday lending services. The Subcommittee received
testimony from the following witnesses: Mr. Barry Wides, Deputy
Comptroller for Community Affairs, OCC; Mr. Robert Mooney,
Deputy Director for Consumer Protection and Community Affairs,
FDIC; Mr. David M. Marquis, Executive Director, National Credit
Union Administration; Ms. Gerri Guzman, Executive Director,
Consumer Rights Coalition; Ms. Melissa Koide, Vice President of
Policy, Center for Financial Services Innovation; Mr. Ryan
Gilbert, Chief Executive Officer, BillFloat; Mr. Michael Grant,
President, National Bankers Association; Dr. Kimberly Manturuk,
Research Associate, University of North Carolina Center for
Community Capital; and Ms. Ida Rademacher, Vice President,
Policy and Research, CFED--Expanding Economic Opportunity.
NONRESIDENT ALIEN DEPOSIT INTEREST INCOME REPORTING
On October 27, 2011, the Subcommittee held a hearing
entitled ``Proposed Regulations to Require Reporting of
Nonresident Alien Deposit Interest Income.'' The purpose of the
hearing was to review the impact of a proposed regulation that
would require financial institutions to report annually to the
Internal Revenue Service the amount of interest earned by
nonresident aliens on their U.S. bank deposits. In particular,
the hearing considered the potential effects of the proposed
regulation on nonresident alien deposits held in U.S. financial
institutions and on the safety and soundness of financial
institutions that hold significant amounts of these deposits.
The Subcommittee received testimony from the following
witnesses: Mr. J. Thomas Cardwell, Former Commissioner, Florida
Office of Financial Regulation; Mr. Alejandro ``Alex'' Sanchez,
President and Chief Executive Officer, Florida Bankers
Association; Mr. Gerry Schwebel, Executive Vice President,
International Bancshares Corporation; and Ms. Rebecca J.
Wilkins, Senior Counsel, Federal Tax Policy, Citizens for Tax
Justice.
IMPACT OF REGULATORY REFORM
On October 31, 2011, the Subcommittee held a field hearing
in Wausau, Wisconsin, entitled ``Regulatory Reform: Examining
How New Regulations are Impacting Financial Institutions, Small
Businesses and Consumers.'' The purpose of the hearing was to
assess how new financial regulations are affecting the ability
of financial institutions to extend credit and stimulate job
growth. The hearing examined whether bank examination practices
are excessively stringent and impeding economic recovery. The
Subcommittee received testimony from the following witnesses:
The Honorable Al Erickson, Mayor of Mosinee, WI; Mr. Marty
Reinhart, President, Heritage Bank; Mr. Todd Nagel, President,
River Valley Bank; Mr. Pat Wesenberg, President and Chief
Executive Officer, Central City Credit Union; Mr. Mark Willer,
Chief Operating Officer, Royal Credit Union; Mr. Mark Matthiae,
President, Crystal Finishing Systems; Mr. Kurt Bauer,
President, Wisconsin Manufacturers and Commerce; and Ms.
Bethany Sanchez, Director of Community Development,
Metropolitan Milwaukee Fair Housing Council.
CONSUMER FINANCIAL PROTECTION BUREAU
On November 2, 2011, the Subcommittee held a hearing
entitled ``The Consumer Financial Protection Bureau: The First
100 Days.'' The purpose of the hearing was to review the CFPB's
budgeting, staffing, rule-writing initiatives, and the current
and potential challenges facing the Bureau as well as the
entities it regulates. Mr. Raj Date, Special Advisor to the
Secretary of the Treasury, CFPB, was the sole witness.
VOLCKER RULE
On January 18, 2012, the Subcommittee on Financial
Institutions and Consumer Credit and the Subcommittee on
Capital Markets and Government Sponsored Enterprises held a
joint hearing entitled ``Examining the Impact of the Volcker
Rule on Markets, Businesses, Investors and Job Creation.'' The
hearing evaluated the rule to implement Section 619 of the
Dodd-Frank Act, known as the Volcker Rule, and its impact on
the economy, jobs, businesses and investors. The Volcker Rule
directs regulators to write and issue rules prohibiting bank
holding companies and their affiliates from engaging in
proprietary trading and sponsoring and investing in hedge funds
and private equity funds. The subcommittee received testimony
from the following witnesses: The Honorable Daniel K. Tarullo,
Governor, Board of Governors of the Federal Reserve System; The
Honorable Mary Schapiro, Chairman, SEC; The Honorable Gary
Gensler, Chairman, CFTC; The Honorable Martin J. Gruenberg,
Acting Chairman, FDIC; Mr. John Walsh, Acting Comptroller of
the Currency, OCC; Mr. Anthony J. Carfang, Partner, Treasury
Strategies, on behalf of the U.S. Chamber of Commerce; Mr.
Douglas J. Elliott, Fellow, Economic Studies, The Brookings
Institution; Mr. Scott Evans, Executive Vice President,
President of Asset Management, TIAA-CREF; Prof. Simon Johnson,
Ronald A. Kurtz (1954) Professor of Entrepreneurship, MIT Sloan
School of Management; Mr. Alexander Marx, Head of Global Bond
Trading, Fidelity Investments; Mr. Douglas J. Peebles, Chief
Investment Officer and Head of Fixed Income, AllianceBernstein,
on behalf of the Securities Industry and Financial Markets
Association Asset Management Group; Mr. Mark Standish,
President and Co-CEO, RBC Capital Markets, on behalf of the
Institute of International Bankers; and Mr. Wallace Turbeville,
on behalf of the Americans for Financial Reform.
PAYMENT SYSTEM INNOVATIONS
On March 22, 2012, the Subcommittee held a hearing entitled
``The Future of Money: How Mobile Payments Could Change
Financial Services,'' to examine the technology used to conduct
mobile payments, identify potential security problems, and
consider whether statutory changes are necessary as mobile
payment systems become more widely available. The Subcommittee
received testimony from the following witnesses: Mr. Richard
Oliver, co-author of the Mobile Payments in the United States--
Mapping out the Road Ahead, published by the Federal Reserve
Bank of Atlanta; Mr. Troy Leach, Chief Technology Officer, PCI
Security Standards Council; Mr. Ed McLaughlin, Chief Emerging
Payments Officer, Global Products & Solutions, MasterCard
Worldwide; Mr. Randy Vanderhoof, Executive Director, Smart Card
Alliance; and Ms. Suzanne Martindale, Attorney, Consumers
Union.
FINANCIAL SUPERVISION
On May 16, 2012, the Subcommittee held a hearing entitled
``The Impact of the Dodd-Frank Act: What It Means to be a
Systemically Important Financial Institution.'' This hearing
examined how the Financial Stability Oversight Council arrived
at its final rule on designating companies as ``systemically
important,'' and whether the designation provides firms with an
advantage over their competitors. The hearing also examined the
Federal Reserve's proposed rule that would apply enhanced
prudential standards to designated nonbank financial companies
and bank holding companies with assets of $50 billion or more.
The Subcommittee received testimony from the following
witnesses: Mr. Lance Auer, Deputy Assistant Secretary for
Financial Institutions, Department of the Treasury; Mr. Michael
Gibson, Director, Division of Banking Supervision and
Regulation, Board of Governors of the Federal Reserve System;
Mr. Scott Harrington, Alan B. Miller Professor, Wharton School,
University of Pennsylvania; Mr. Thomas Quaadman, Vice
President, Center for Capital Markets Competitiveness, U.S.
Chamber of Commerce; Mr. William J. Wheeler, President,
Americas, MetLife; and Mr. Douglas Elliott, Fellow, The
Brookings Institution.
DATA SECURITY AND IDENTITY THEFT
On June 21, 2012, the Subcommittee held a hearing entitled
``The Future of Money: Where Do Mobile Payments Fit in the
Current Regulatory Structure?'' to examine whether changes need
to be made to laws and regulations governing payments, consumer
protection, and anti-money laundering to cover new forms of
value transfer that are beginning to enter the marketplace. The
hearing consisted of one panel with the following witnesses:
Mr. James H. Freis, Jr., Director, Financial Crimes Enforcement
Network, Department of the Treasury; and Ms. Stephanie Martin,
Associate General Counsel, Federal Reserve Board of Governors.
MONEY SERVICES BUSINESSES' ACCESS TO BANKING SERVICES
On June 29, 2012, the Subcommittee held a hearing entitled
``The Future of Money: Where Do Mobile Payments Fit In the
Current Regulatory Structure?'' to examine the regulatory
regime covering Money Services Businesses, the burden
regulations place on them, and ways to improve the regulatory
environment without impairing the regulations' impact. The
hearing consisted of one panel with the following witnesses:
Mr. Tim Daly, Senior Vice President, Western Union; Ms. Deborah
Bortner, Director of Consumer Services, Washington State
Department of Financial Institutions on behalf of the
Conference of State Bank Supervisors; Mr. Ezra Levine, Counsel,
The Money Service Round Table; and Mr. Hersi Suleiman, General
Manager, Amal USA, Inc.
REGULATORY BURDEN REDUCTION
On August 20, 2012, the Subcommittee held a field hearing
in Charleston, West Virginia, entitled ``An Examination of the
Challenges Facing Community Financial Institutions in West
Virginia'' to hear from representatives of West Virginia-based
financial institutions about how new financial regulations are
affecting their ability to extend credit and stimulate job
growth while staying economically viable. The hearing also
addressed the effect of stringent federal bank examinations--
examinations that some financial institutions contend may be
overzealous--on economic recovery. The Subcommittee received
testimony from the following witnesses: Mr. Charles R.
Hageboeck, President and Chief Executive Officer, City National
Bank; Mr. Tom Brewer, President, People's Federal Credit Union;
Mr. William A. Loving, President and Chief Executive Officer,
Pendleton Community Bank; Mr. John Wohlever, Owner of
Mountaineer Mobile Homes; and Ms. Sarah K. Brown, Attorney at
Mountain State Justice, Inc.
CONSUMER FINANCIAL PROTECTION BUREAU
On July 19, 2012, the Subcommittee held a hearing entitled
``The Impact of Dodd-Frank on Consumer Choice and Access to
Credit.'' The hearing provided an opportunity for Members to
review the Consumer Financial Protection Bureau's budgeting,
staffing, rule-writing initiatives, and the current and
potential challenges facing the Bureau as well as the entities
it regulates. The sole witness at this hearing was Mr. Raj
Date, Deputy Director of the Consumer Financial Protection
Bureau.
HOME MORTGAGE REFORMS
On July 11, 2012, the Subcommittee held a hearing entitled
``The Impact of Dodd-Frank's Home Mortgage Reforms: Consumer
and Market Perspectives.'' Among its many requirements, the
Dodd-Frank Act requires the Consumer Financial Protection
Bureau (CFPB) to set criteria that define the borrower's
ability to repay a mortgage and to obtain a net tangible
benefit when he or she refinances a loan. Loans that meet these
criteria are considered ``Qualified Mortgages.'' This hearing
examined the Federal Reserve's proposed Qualified Mortgage rule
from April 2011 and the evolution of that rule after
responsibility for it was transferred to the CFPB on July 21,
2011. Also, this hearing examined the degree to which lenders
who make a qualified mortgage loan should be shielded from
liability for an alleged failure to satisfy the Dodd-Frank
Act's ability to repay requirements. The Subcommittee received
testimony from the following witnesses: The Honorable Kenneth
E. Bentsen, Jr., Executive Vice President of Public Policy and
Advocacy at the Securities Industry and Financial Markets
Association; Ms. Alys Cohen, Staff Attorney at the National
Consumer Law Center; Mr. Tom Hodges, General Counsel of Clayton
Homes on behalf of the Manufactured Housing Institute; Mr. John
Hudson, Manager of Premier Nationwide Lending on behalf of the
National Association of Mortgage Brokers; Mr. Rick Judson,
First Vice Chairman of the Board at the National Association of
Homebuilders; Mr. D.J. Snapp, Vice President & Liaison on
Committee at the National Association of Realtors; Mr. Eric
Stein, Chief Operating Officer at Self-Help; and Ms. Debra W.
Still, Chairman-Elect at the Mortgage Bankers Association.
BASEL III
On November 29, 2012, the Subcommittee and the Subcommittee
on Insurance, Housing and Community Opportunity held a joint
hearing entitled ``Examining the Impact of the Proposed Rules
to Implement Basel III Capital Standards.'' The hearing
examined whether U.S. banking regulators' proposed capital
adequacy standards will ensure the stability of the financial
system and preserve the ability of financial institutions to
take calculated risks. The subcommittees received testimony
from the following witnesses: Mr. George French, Deputy
Director of the Division of Risk Management Supervision at the
Federal Deposit Insurance Corporation; Mr. Michael S. Gibson,
Director of the Division of Banking Supervision and Regulation
at the Board of Governors of the Federal Reserve System; Mr.
John Lyons, Chief National Bank Examiner at the Office of the
Comptroller of the Currency; Mr. Greg Gonzales, Commissioner at
the Tennessee Department of Financial Institutions on behalf of
the Conference of State Bank Supervisors; Mr. Kevin M. McCarty,
Insurance Commissioner at the Florida Office of Insurance
Regulation on behalf of the National Association of Insurance
Commissioners; Professor Anat R. Admati, George G.C. Parker
Professor of Finance and Economics for the Graduate School of
Business at Stanford University; Mr. Terrence A. Duffy,
Executive Chairman and President of the CME Group, Inc.; Mr.
James M. Garnett, Jr., Head of Risk Architecture at Citi; Mr.
Marc Jarsulic, Chief Economist at Better Markets; Mr. William
A. Loving, President and Chief Executive Officer at Pendleton
Community Bank on behalf of the Independent Community Bankers
of America; Mr. Daniel T. Poston, Executive Vice President and
Chief Financial Officer at Fifth Third Bancorp on behalf of the
American Bankers Association; Mr. Paul Smith, Senior Vice
President, Treasurer, and Chief Financial Officer at State Farm
Insurance Company; and Ms. Virginia Wilson, Executive Vice
President and Chief Financial Officer at TIAA-CREF.
Subcommittee Hearings Held
------------------------------------------------------------------------
Serial No. Title Date(s)
------------------------------------------------------------------------
112-8................. Understanding the Federal February 17, 2011
Reserve's Proposed Rule
on Interchange Fees:
Implications and
Consequences of the
Durbin Amendment.
112-12................ The Effect of Dodd-Frank March 2, 2011
on Small Financial
Institutions and Small
Businesses.
112-18................ Oversight of the Consumer March 16, 2011
Financial Protection
Bureau.
112-24................ Legislative Proposals to April 6, 2011
Improve the Structure of
the Consumer Financial
Protection Bureau.
112-34................ FDIC Oversight: Examining May 26, 2011
and Evaluating the Role
of the Regulator During
the Financial Crisis and
Today.
112-37................ Does the Dodd-Frank Act June 14, 2011
End `Too Big to Fail'?.
112-44................ Mortgage Servicing: An July 7, 2011
Examination of the Role
of Federal Regulators in
Settlement Negotiations
and the Future of
Mortgage Servicing
Standards (Joint Hearing
with Oversight).
112-45................ Legislative Proposals July 8, 2011
Regarding Bank
Examination Practices.
112-49................ Examining Rental Purchase July 26, 2011
Agreements and the
Potential Role for
Federal Regulation.
112-54................ Potential Mixed Messages: August 16, 2011
Is Guidance from
Washington Being
Implemented by Federal
Bank Examiners? (Field
Hearing).
112-60................ Cybersecurity: Threats to September 14, 2011
the Financial Sector.
112-65................ An Examination of the September 22, 2011
Availability of Credit
for Consumers.
112-72................ H.R. 1418: The Small October 12, 2011
Business Lending
Enhancement Act of 2011.
112-78................ Proposed Regulations to October 27, 2011
Require Reporting of
Nonresident Alien Deposit
Interest Income.
112-79................ Regulatory Reform: October 31, 2011
Examining How New
Regulations are Impacting
Financial Institutions,
Small Businesses and
Consumers (Field Hearing).
112-80................ The Consumer Financial November 2, 2011
Protection Bureau: The
First 100 Days.
112-85................ H.R. 1697, The Communities November 16, 2011
First Act (Joint Hearing
with Capital Markets).
112-95................ Joint hearing with the January 18, 2012
Subcommittee on Capital
Markets and Government
Sponsored Enterprises
entitled ``Examining the
Impact of the Volcker
Rule on Markets,
Businesses, Investors and
Job Creation''.
112-97................ H.R. 3461: The Financial February 1, 2012
Institutions Examination
Fairness and Reform Act.
112-99................ Legislative Proposals to February 8, 2012
Promote Accountability
and Transparency at the
Consumer Financial
Protection Bureau.
112-104............... Understanding the Effects March 1, 2012
of the Repeal of
Regulation Q on Financial
Institutions and Small
Businesses.
112-106............... An Examination of the March 14, 2012
Challenges Facing
Community Financial
Institutions in Texas
(Field Hearing).
112-107............... An Examination of March 15, 2012
Potential Private Sector
Solutions to Mitigate
Foreclosures in Nevada
(Field Hearing).
112-110............... The Future of Money: How March 22, 2012
Mobile Payments Could
Change Financial Services.
112-116............... An Examination of the April 16, 2012
Challenges Facing
Community Financial
Institutions in Ohio.
112-122............... Rising Regulatory May 9, 2012
Compliance Costs and
Their Impact on the
Health of Small Financial
Institutions.
112-125............... The Impact of the Dodd- May 16, 2012
Frank Act: What It Means
to be a Systemically
Important Financial
Institution.
112-130............... The Impact of the Dodd- May 18, 2012
Frank Act: Understanding
Heightened Regulatory
Capital Requirements.
112-133............... An Examination of the June 6, 2012
Federal Reserve's Final
Rule on the CARD Act's
`Ability to Repay'
Requirement.
112-139............... Safe and Fair Supervision June 21, 2012
of Money Services
Businesses.
112-142............... The Future of Money: Where June 29, 2012
Do Mobile Payments Fit In
the Current Regulatory
Structure?.
112-144............... The Impact of Dodd-Frank's July 11, 2012
Home Mortgage Reforms:
Consumer and Market
Perspectives.
112-147............... The Impact of Dodd-Frank July 19, 2012
on Consumer Choice and
Access to Credit.
112-149............... Examining Consumer Credit July 24, 2012
Access Concerns, New
Products and Federal
Regulations.
112-154............... Field hearing entitled August 20, 2012
``An Examination of the
Challenges Facing
Community Financial
Institutions in West
Virginia''.
112-157............... Examining the Uses of September 13, 2012
Consumer Credit Data.
112-161............... Joint hearing with the November 29, 2012
Subcommittee on
Insurance, Housing and
Community Opportunity
entitled ``Examining the
Impact of the Proposed
Rules to Implement Basel
III Capital Standards''.
------------------------------------------------------------------------
Subcommittee on Insurance, Housing and Community Opportunity
(Ratio: 10-8)
JUDY BIGGERT, Illinois, Chairman
LUIS V. GUTIERREZ, Illinois, Ranking Member HURT, Virginia, Vice
MAXINE WATERS, California Chairman
NYDIA M. VELAZQUEZ, New York GARY G. MILLER, California
EMANUEL CLEAVER, Missouri SHELLEY MOORE CAPITO, West
WM. LACY CLAY, Missouri Virginia
MELVIN L. WATT, North Carolina SCOTT GARRETT, New Jersey
BRAD SHERMAN, California PATRICK T. McHENRY, North Carolina
MICHAEL E. CAPUANO, Massachusetts LYNN A. WESTMORELAND, Georgia
BARNEY FRANK, Massachusetts, ex officioAN P. DUFFY, Wisconsin
ROBERT J. DOLD, Illinois
STEVE STIVERS, Ohio
SPENCER BACHUS, Alabama, ex
officio
Subcommittee Legislative Activities
HOMELESS CHILDREN AND YOUTH ACT OF 2011
(H.R. 32)
Summary
H.R. 32, the Homeless Children and Youth Act of 2011, would
amend the definition of ``homeless person'' in Title I of the
McKinney-Vento Homeless Assistance Act (Public Law 107-110) to
include children and youth who are verified as homeless by
local educational agencies or social service agencies that
receive federal funding. On December 15, 2011, the Subcommittee
held a hearing on the inconsistent definitions of ``homeless
person'' used by different federal agencies. These inconsistent
definitions make it difficult for federal agencies--most
notably HUD--to accurately estimate the number of homeless
persons. H.R. 32 would harmonize these definitions, which would
allow HUD to better estimate the number of homeless persons who
need housing assistance and services. A consistent definition
of ``homeless person'' among the federal agencies would also
allow more children and youth to receive housing assistance and
services.
Legislative History
On January 5, 2011, H.R. 32 was introduced by Subcommittee
on Insurance, Housing and Community Opportunity Chairman Judy
Biggert and referred to the Committee on Financial Services.
The bill has 29 cosponsors.
On December 15, 2011, the Subcommittee held a legislative
hearing on H.R. 32 entitled ``The Homeless Children and Youth
Act of 2011: Proposals to Promote Economic Independence for
Homeless Children and Youth.'' The Subcommittee received
testimony from the following witnesses: Mr. Brandon Dunlap,
Chicago, IL; Mr. Rumi Khan, 6th Grade, Lamberton Middle School,
Carlisle, PA; Ms. Brittany Amber Koon, PFC, Ft. Hood, TX; Ms.
Brooklyn Pastor, 7th Grade, William Paca Middle School,
Shirley, NY; Ms. Destiny Raynor, 9th Grade, Winter Springs High
School, Sanford, FL; Ms. Starnica Rodgers, Truman College,
Chicago, IL; Ms. Alicia Puente Cackley, Director, Financial
Markets and Community Investment, GAO; Mr. Seth Diamond,
Commissioner, New York City Department of Homeless Services;
Ms. Maria Estella Garza, Homeless Liaison, San Antonio
Independent School District; Mr. Mark Johnston, Deputy
Assistant Secretary for Special Needs, Office of Community
Planning and Development, HUD; Ms. Barbara Poppe, Executive
Director, U.S. Interagency Council on Homelessness; and Dr.
Grace Whitney, PhD, MPA, IMH-E(IV), Director, Connecticut Head
Start State Collaboration Office, Connecticut State Department
of Education.
On February 7, 2012, the Subcommittee met in open session
and ordered the bill, as amended, favorably reported to the
Committee by voice vote.
FHA REFINANCE PROGRAM TERMINATION ACT
(H.R. 830)
Summary
H.R. 830, the FHA Refinance Program Termination Act, would
rescind all unobligated balances made available for the program
by Title I of the Emergency Economic Stabilization Act (12
U.S.C. 5230) that have been allocated for use under the FHA
Refinance Program (pursuant to Mortgagee Letter 2010-23 of the
Secretary of HUD). The bill would also terminate the program
and void the Mortgagee Letter pursuant to which it was
implemented, with concessions made for current participants in
the program.
Legislative History
On February 28, 2011, H.R. 830 was introduced by
Representative Robert Dold and was referred to the Committee on
Financial Services. The bill has two cosponsors.
On March 2, 2011, the Subcommittee held a legislative
hearing on H.R. 830 and received testimony from the following
witnesses: The Honorable Neil M. Barofsky, SIGTARP; The
Honorable David Stevens, Assistant Secretary for Housing and
Commissioner of the FHA; The Honorable Mercedes Marquez,
Assistant Secretary, Community Planning and Development, HUD;
Mr. Matthew J. Scire, Director, Financial Markets and Community
Investment, U.S. GAO; and Ms. Katie Jones, Analyst in Housing
Policy, Congressional Research Service, Library of Congress.
On March 3, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by a record
vote of 33 yeas and 22 nays. The Committee Report was filed on
March 7, 2011 (H. Rept. 112-25).
On March 9, 2011, the House adopted H. Res. 150, providing
for the consideration of H.R. 830 under a structured rule, by a
record vote of 240 yeas and 180 nays. On March 10, 2011, the
House considered H.R. 830 and passed the bill, with amendments,
by a record vote of 256 yeas and 171 nays.
EMERGENCY MORTGAGE RELIEF PROGRAM TERMINATION ACT
(H.R. 836)
Summary
H.R. 836, the Emergency Mortgage Relief Program Termination
Act, would rescind all unobligated balances made available for
the Emergency Mortgage Relief Program under section 1496(a) of
the Dodd-Frank Act, which was signed into law on July 21, 2010,
and terminate the program. The bill also calls for a study by
HUD to identify best practices for how existing mortgage
assistance programs can be applied to veterans, active duty
military personnel, and their relatives.
Legislative History
On February 28, 2011, H.R. 836 was introduced by
Representative Jeb Hensarling and was referred to the Committee
on Financial Services. The bill has two cosponsors.
On March 2, 2011, the Subcommittee held a legislative
hearing on H.R. 830 and received testimony from the following
witnesses: The Honorable Neil M. Barofsky, SIGTARP; The
Honorable David Stevens, Assistant Secretary for Housing and
Commissioner of the FHA; The Honorable Mercedes Marquez,
Assistant Secretary, Community Planning and Development, HUD;
Mr. Matthew J. Scire, Director, Financial Markets and Community
Investment, U.S. GAO; and Ms. Katie Jones, Analyst in Housing
Policy, Congressional Research Service, Library of Congress.
On March 3, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by a record
vote of 33 yeas and 22 nays. The Committee Report was filed on
March 7, 2011 (H. Rept. 112-26).
On March 9, 2011, the House adopted H. Res. 151, providing
for the consideration of H.R. 836 under a structured rule, by
voice vote. On March 11, 2011, the House considered H.R. 836
and passed the bill, with amendments, by a record vote of 242
yeas and 177 nays.
THE HAMP TERMINATION ACT OF 2011
(H.R. 839)
Summary
H.R. 839, the HAMP Termination Act of 2011, would terminate
the authority of the Treasury Department to provide any new
assistance to homeowners under HAMP authorized under Title I of
the Emergency Economic Stabilization Act (12 U.S.C. 5230),
while preserving any assistance already provided to HAMP
participants on a permanent or trial basis. The bill also
provides for a study by the Treasury Department to identify
best practices for how existing mortgage assistance programs
can be applied to veterans, active duty military personnel, and
their relatives.
Legislative History
On February 28, 2011, H.R. 839 was introduced by
Representative Patrick McHenry and was referred to the
Committee on Financial Services. The bill has eight cosponsors.
On March 2, 2011, the Subcommittee held a legislative
hearing on H.R. 830 and received testimony from the following
witnesses: The Honorable Neil M. Barofsky, SIGTARP; The
Honorable David Stevens, Assistant Secretary for Housing and
Commissioner of the FHA; The Honorable Mercedes Marquez,
Assistant Secretary, Community Planning and Development, HUD;
Mr. Matthew J. Scire, Director, Financial Markets and Community
Investment, U.S. GAO; and Ms. Katie Jones, Analyst in Housing
Policy, Congressional Research Service, Library of Congress.
On March 9, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by a record
vote of 32 yeas and 23 nays. The Committee Report (Part 1) was
filed on March 11, 2011 (H. Rept. 112-31) and Part 2 of the
Committee Report was filed on March 14, 2011 (H. Rept. 112-31
Part 2).
On March 16, 2011, the House adopted H. Res. 170, providing
for the consideration of H.R. 839 under a structured rule, by a
record vote of 241 yeas and 180 nays. On March 29, 2011, the
House considered H.R. 839 and passed the bill, with amendments,
by a record vote of 252 yeas and 170 nays, with 1 member voting
present.
NSP TERMINATION ACT
(H.R. 861)
Summary
H.R. 861, the NSP Termination Act, would rescind all
unobligated balances made available for NSP authorized by the
Dodd-Frank Act and terminate the program.
Legislative History
On March 1, 2011, H.R. 861 was introduced by Representative
Gary Miller and was referred to the Committee on Financial
Services. The bill has four cosponsors.
On March 2, 2011, the Subcommittee held a legislative
hearing on H.R. 830 and received testimony from the following
witnesses: The Honorable Neil M. Barofsky, SIGTARP; The
Honorable David Stevens, Assistant Secretary for Housing and
Commissioner of the FHA; The Honorable Mercedes Marquez,
Assistant Secretary, Community Planning and Development, HUD;
Mr. Matthew J. Scire, Director, Financial Markets and Community
Investment, GAO; and Ms. Katie Jones, Analyst in Housing
Policy, Congressional Research Service, Library of Congress.
On March 3, 2011, the Committee met in open session and
ordered the bill favorably reported to the House by a record
vote of 31 yeas and 24 nays. The Committee Report (Part 1) was
filed on March 11, 2011 (H. Rept. 112-32), and Part 2 of the
Committee Report was filed on March 14, 2011 (H. Rept. 112-32
Part 2).
On March 16, 2011, the House adopted H. Res. 170, providing
for the consideration of H.R. 861 under a structured rule, by a
record vote of 241 yeas and 180 nays. On March 16, 2011, the
House considered H.R. 861 and passed the bill, with amendments,
by a record vote of 242 yeas and 182 nays.
FLOOD INSURANCE REFORM ACT OF 2011
(H.R. 1309)
Summary
H.R. 1309, the Flood Insurance Reform Act of 2011, would
reauthorize the NFIP through September 30, 2016, and amend the
National Flood Insurance Act to ensure the immediate and near-
term fiscal and administrative health of the NFIP. The bill
would also ensure the NFIP's continued viability by encouraging
broader participation in the program, increasing financial
accountability, eliminating unnecessary rate subsidies, and
updating the program to meet the needs of the 21st century. The
key provisions of H.R. 1309 include: (1) a five-year
reauthorization of the NFIP; (2) a three-year delay in the
mandatory purchase requirement for certain properties in newly
designated SFHAs; (3) a phase-in of full-risk, actuarial rates
for areas newly designated as Special Flood Hazard; (4) a
reinstatement of the Technical Mapping Advisory Council; and
(5) an emphasis on greater private sector participation in
providing flood insurance coverage.
Legislative History
On April 1, 2011, H.R. 1309 was introduced by Subcommittee
on Insurance, Housing and Community Opportunity Chairman Judy
Biggert and referred to the Committee on Financial Services.
The bill has nineteen cosponsors.
On March 11, 2011 and April 1, 2011, the Subcommittee held
legislative hearings entitled ``Legislative Proposals to Reform
the National Flood Insurance Program,'' on a discussion draft
of H.R. 1309. On March 11, 2011, the Subcommittee received
written testimony from Craig Fugate, Administrator, FEMA and
the following witnesses testified: Orice Williams Brown,
Managing Director, GAO; Sally McConkey, Vice Chair, Association
of State Flood Plain Managers and Manager, Coordinated Hazard
Assessment and Mapping Program, Illinois State Water Survey;
Sandra G. Parrillo, Chair, National Association of Mutual
Insurance Companies and President and CEO of Providence Mutual;
Spencer Houldin, Chair, Government Affairs Committee,
Independent Insurance Agents and Brokers of America and
President, Ericson Insurance Services; Steve Ellis, Vice
President, Taxpayers for Common Sense, on behalf of the
SmarterSafer Coalition; Donna Jallick, Vice President,
Harleysville Insurance; Barry Rutenberg, First Vice Chairman,
National Association of Home Builders; Frank Nutter, President,
Reinsurance Association of America; Terry Sullivan, Sullivan
Realty, Inc., on behalf of The National Association of
Realtors; and Maurice Veissi, President-Elect, National
Association of Realtors, and Principal, Veissi & Associates. On
April, 1, 2011, The Honorable Craig Fugate, Administrator,
FEMA, was the only witness.
On April 6, 2011, the Subcommittee met in open session and
ordered the bill, as amended, favorably reported to the
Committee by voice vote.
On May 12, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by a recorded vote of 54 yeas and 0 nays.
On July 12, 2011, the House considered H.R. 1309 and passed
the bill, with amendments, by a record vote of 406 yeas and 22
nays.
RESPA HOME WARRANTY CLARIFICATION ACT OF 2011
(H.R. 2446)
Summary
H.R. 2446, the RESPA Home Warranty Clarification Act of
2011, would amend current law to explicitly state that home
warranties are permissible settlement services under the Real
Estate Settlement Procedures Act of 1974. The bill would also
require that homeowners receive a specific written notice about
the payment arrangement for any individual selling,
advertising, or performing a homeowner warranty inspection for
the repair or replacement of home system components or
appliances.
Legislative History
On July 7, 2011, H.R. 2446 was introduced by Subcommittee
on Insurance, Housing and Community Opportunity Chairman Judy
Biggert and was referred to the Committee on Financial
Services. The bill has 40 cosponsors.
On July 13, 2011, the Subcommittee held a legislative
hearing entitled ``Mortgage Origination: The Impact of Recent
Changes on Homeowners and Businesses.'' The purpose of the
hearing was to examine H.R. 2446 and other issues concerning
the application of mortgage origination laws and regulations
which may impact consumers and mortgage industry participants.
The Subcommittee received testimony from the following
witnesses: the Honorable Sandra Braunstein, Director of
Division of Consumer and Community Affairs for the Board of
Governors of the Federal Reserve System; the Honorable Teresa
Payne, HUD's Associate Deputy Assistant Secretary for
Regulatory Affairs; Ms. Kelly Cochran, Deputy Assistant
Director for Regulations at the Treasury Department's CFPB; Mr.
James Park, Executive Director of the Appraisal Subcommittee
for the Federal Financial Institutions Examination Council; Mr.
William Shear, Director of Financial Markets and Community
Investment for the GAO; and Ms. Anne Norton, Maryland Deputy
Commissioner of Financial Regulation; Mr. Steve Brown,
Executive Vice President at Crye-Leike; Mr. Henry Cunningham,
Jr., President of Cunningham & Company; Mr. Tim Wilson,
President of Affiliated Businesses for Long & Foster Companies;
Ms. Anne Anastasi, President of Genesis Abstract and President
of the American Land Title Association; Mr. Mike Anderson,
President of Essential Mortgage; Mr. Marc Savitt, President of
The Mortgage Center; Ms. Sara Stephens, President-Elect of the
Appraisal Institute; Mr. Don Kelly, Executive Director of the
Real Estate Valuation Advocacy Association; Ms. Janis Bowdler,
Director of the Wealth-Building Policy Project Office of
Research, Advocacy, and Legislation; and Mr. Ira Rheingold,
Executive Director, National Association of Consumer Advocates.
On December 8, 2011, the Subcommittee met in open session
and ordered the bill favorably reported to the Committee by
voice vote.
On March 27, 2012, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote.
On July 31, 2012, the Committee Report was filed (H. Rept.
112-633).
On August 1, 2012, the House considered H.R. 2446 and
passed the bill by voice vote.
HOMES FOR HEROES ACT OF 2011
(H.R. 3298)
Summary
H.R. 3298, the Homes for Heroes Act of 2011, would
establish the position of Special Assistant for Veterans
Affairs within HUD to coordinate services provided to homeless
veterans and to serve as HUD's liaison to the Department of
Veterans Affairs, the U.S. Interagency Council on Homelessness,
state and local officials, and nonprofit service organizations.
H.R. 3298 would also require HUD to submit a comprehensive
annual report to Congress on the housing needs of homeless
veterans and the steps undertaken by HUD to meet those needs.
Legislative History
On November 1, 2011, H.R. 3298 was introduced by
Representative Al Green and referred to the Committee on
Financial Services. The bill has 9 cosponsors.
On December 8, 2011, the Subcommittee met in open session
and ordered the bill favorably reported to the Committee by
voice vote.
On March 27, 2012, the House agreed to a motion to suspend
the rules and pass H.R. 3298 by a record vote of 414 yeas and 5
nays.
INSURANCE DATA PROTECTION ACT\3\
---------------------------------------------------------------------------
\3\Previously listed as a discussion draft entitled ``To prohibit
the Federal Insurance Office of the Department of the Treasury and
other financial regulators from collecting data directly from
insurers.''
---------------------------------------------------------------------------
(H.R. 3559)
Summary
H.R. 3559, the Insurance Data Protection Act, would
prohibit the Federal Insurance Office (FIO) and other financial
regulators from collecting data directly from insurers.
Currently, Section 313 of the Dodd-Frank Act authorizes the FIO
to issue subpoenas to insurance companies to produce data, and
Section 153 authorizes the Office of Financial Research (OFR)
to issue subpoenas to financial companies, including insurance
companies, to produce data to the OFR. The draft legislation
would revoke the authority of the FIO the OFR to subpoena
information from insurance companies. It would also amend the
Dodd-Frank Act to require the FIO, the OFR, the FSOC, and any
other federal entity seeking data about insurance companies to
obtain that data through the insurance company's state
regulator, another federal agency, or public source. Finally,
the draft legislation would require these federal entities, as
well as state regulators, to maintain the confidentiality of
nonpublic data obtained from or shared with other federal and
state regulators.
Legislative History
On December 5, 2011, H.R. 3559 was introduced by
Representative Steve Stivers and referred to the Committee on
Financial Services. The bill has 3 cosponsors.
On November 16, 2011, the Subcommittee held a legislative
hearing entitled ``Insurance Oversight and Legislative
Proposals'' to examine a draft version of H.R. 3559 as well as
the effect of the Dodd-Frank Act's changes to the regulation of
insurance. The Subcommittee heard testimony from the following
witnesses: Mr. Joseph Torti, III, Deputy Director and
Superintendent of Insurance and Banking for the State of Rhode
Island; Mr. Michael Lanza, Executive Vice President and General
Counsel of the Selective Insurance Group, Inc.; Mr. Steven
Monroe, Chief Compliance Officer for the U.S. and Canada for
Marsh, Inc.; and Mr. Daniel Schwarcz, Associate Professor at
the University of Minnesota Law School.
On December 8, 2011, the Subcommittee met in open session
and ordered the bill favorably reported to the Committee by a
record vote of 7 yeas and 5 nays.
FHA EMERGENCY FISCAL SOLVENCY ACT OF 2012\4\
---------------------------------------------------------------------------
\4\Previously listed as a discussion draft entitled ``FHA-Rural
Regulatory Improvement Act of 2011.''
---------------------------------------------------------------------------
(H.R. 4264)
Summary
H.R. 4264, the FHA Emergency Fiscal Solvency Act of 2012,
would assist the Federal Housing Administration (FHA) to shore
up the Mutual Mortgage Insurance Fund (MMIF), establish minimum
annual premiums for mortgage insurance, require lenders that
committed fraud to pay the FHA back for mortgage-insurance
losses, bar unscrupulous lenders from participating in FHA's
mortgage insurance programs, and direct the FHA to implement
internal fiscal oversight.
In 2011, the Financial Services Committee held three
hearings on the FHA that focused on its fiscal condition. By
statute, the FHA is required to maintain a capital reserve
ratio of 2 percent. In 2009, the FHA's capital reserve ratio
had fallen to .53 percent, and in 2010 to .50 percent. In the
FY 2011 independent actuarial review of the FHA, the FHA's
required capital reserve ratio had fallen to .24 percent, far
below the statutorily mandated reserve ratio of 2 percent. The
FHA's deteriorating financial condition raised concerns that
the FHA may become insolvent and expose taxpayers to further
risk of loss.
The FY 2011 independent actuarial review also found that
the economic value of the MMIF had declined more than 77
percent from the end of fiscal year 2010, from $5.16 billion to
$1.19 billion. If home prices continue to fall, the MMIF's
economic value could fall below zero, which in turn may prompt
HUD to draw down funds from Treasury under Treasury's
``permanent and indefinite'' appropriations authority to
support the FHA fund, further exposing taxpayers to the risk of
loss.
Legislative History
On March 27, 2012, H.R. 4264 was introduced by Rep. Judy
Biggert and was referred to the Committee on Financial
Services. The bill has no cosponsors.
On May 25, 2011, the Subcommittee held a hearing entitled
``Legislative Proposals to Determine the Future Role of FHA,
RHS and GNMA in the Single-and Multi-Family Mortgage Markets.''
The hearing focused on the FHA's and Rural Housing Service's
single- and multi-family programs and examined legislative
proposals to improve the financial condition of the FHA, the
RHS and Ginnie Mae and to better protect taxpayers against
losses from fraudulent or poorly underwritten loans. The
Subcommittee received testimony from the following witnesses:
Ms. Katherine M. Alitz, President, Council for Affordable and
Rural Housing; Mr. Michael D. Berman, Chairman, Mortgage
Bankers Association; Mr. Mark A. Calabria, Director of
Financial Regulation Studies, Cato Institute; Mr. Peter Carey,
Director of Self-Help Housing Enterprises, Inc.; Mr. Brian
Chappelle, Partner, Potomac Partners; Mr. Peter W. Evans,
Partner, Moran and Company; Mr. Basil Petrou, Managing Partner,
Federal Financial Analytics, Inc.; Mr. Ron Phipps, President,
Phipps Realty; and Mr. Barry Rutenberg, First Vice Chairman,
National Association of Home Builders.
On September 8, 2011, the Subcommittee held a hearing
entitled ``Legislative Proposals to Determine the Future Role
of FHA, RHS and GNMA in the Single-and Multi-Family Mortgage
Markets, Part 2.'' This hearing examined the single- and multi-
family programs of the FHA and the RHS. The hearing also
examined legislative proposals to improve the financial
condition of the FHA, the RHS, and Ginnie Mae and to better
protect taxpayers against losses from fraudulent or poorly-
underwritten loans. The Subcommittee received testimony from
the following witnesses: The Honorable Johnny Isakson (R-GA),
United States Senate; Mrs. Carol Galante, Acting FHA
Commissioner and Assistant Secretary for Housing, HUD; Ms.
Cheryl Cook, Deputy Under Secretary for Rural Development,
Department of Agriculture; and The Honorable Theodore ``Ted''
Tozer, President, Government National Mortgage Association.
On February 7, 2012, the Subcommittee met in open session
and ordered the bill favorably reported to the Full Committee
by voice vote.
On March 27, 2012, the Full Committee met in open session
and ordered the bill favorably reported to the House.
On June 20, 2012, the Committee Report was filed (H. Rept.
112-544).
On September 11, 2012, the House agreed to a motion to
suspend the rules and pass the bill, H.R. 4264, by a record
vote of 402 ayes and 7 nays.
THE BIGGERT-WATERS FLOOD INSURANCE REFORM ACT OF 2012
(Conference Report to Accompany H.R. 4348)
Summary
Title II of Division F of the Conference Report to
accompany H.R. 4348, the Biggert-Waters Flood Insurance Reform
Act of 2012, provides for a five year reauthorization of the
National Flood Insurance Program (NFIP), which has not had a
long-term reauthorization since 2004, and amends the National
Flood Insurance Act to ensure the immediate and long-term
fiscal and administrative health of the NFIP. The bill would
also ensure the NFIP's continued viability by encouraging
broader participation in the program, increasing financial
accountability, eliminating unnecessary rate subsidies, and
updating the program to meet the needs of the 21st century. The
key provisions in Title II of Division F of the Conference
Report to accompany H.R. 4348 include: (1) reauthorizing the
NFIP through 2017; (2) a series of fundamental reforms to the
NFIP that the Congressional Budget Office (CBO) has estimated
will generate a $2.7 billion increase in net income to the
program over the next 10 years; (3) greater protections for
homeowners who buy flood insurance through the NFIP; (4) a
reinstatement of the Technical Mapping Advisory Council to
bring in the expertise and perspectives of other stakeholders
in the Federal Emergency Management Agency's (FEMA's) process
for setting new mapping standards; and (5) an emphasis on
greater private sector participation in providing flood
insurance coverage.
Legislative History
On June 28, 2012, the Conference Report was filed (H. Rept.
112-577).
On June 29, 2012, the House considered the Conference
Report to accompany H.R. 4348 and agreed to the report by a
record vote of 373 yeas and 52 nays.
On June 29, 2012, the Senate considered the Conference
Report to accompany H.R. 4348 and agreed to the report by a
record vote of 74 yeas and 19 nays.
On July 6, 2012, H.R. 4348 was signed by the President and
became Public Law No. 112-141.
THE VULNERABLE VETERANS HOUSING REFORM ACT OF 2012
(H.R. 6361)
Summary
H.R. 6361, the Vulnerable Veterans Housing Reform Act of
2012, excludes in-home aid and attendance care benefits paid to
severely disabled low-income veterans for their service-
connected disabilities from the income calculation HUD uses to
determine public housing or Section 8 rental assistance
payments. The bill also establishes a pilot program at HUD to
rehabilitate and modify the homes of disabled and low-income
veterans that have experienced interior or exterior
deterioration. Finally, the bill reforms how Section 8 utility
allowances are determined by instructing public housing
authorities (PHAs) to calculate payments based on family size
instead of dwelling size, with exceptions for the elderly, the
disabled, and families with children under 18, and also allows
individuals affected by the change to petition for a hardship
waiver from the change.
On September 14, 2012, the Subcommittee held a hearing
entitled ``Housing for Heroes: Examining How Federal Programs
Can Better Serve Veterans.'' This hearing examined the barriers
that homeless and low-income veterans face in obtaining housing
assistance and services from federal programs. This hearing
also examined two other legislative proposals that addressed
issues facing homeless and low-income veterans: H.R. 6111, the
Vulnerable Veterans Housing Reform Act of 2012, introduced by
Rep. Joe Heck (R-NV) on July 12, 2012, and H.R. 6381, the
Housing Assistance for Veterans Act of 2012, a discussion draft
offered by Rep. Al Green (D-TX). The Subcommittee received
testimony from the following witnesses: Cassondra Flanagan,
Philadelphia, PA; Caesar Hill, Chicago, IL; Babette Peyton,
Chicago, IL; Heather Ansley, Vice President of Veterans Policy,
Vets First; Steve Berg, Vice President for Programs and Policy,
National Alliance to End Homelessness; Baylee Crone, Technical
Assistance Director, National Coalition for Homeless Veterans;
Sandy Miller, Chair, Vietnam Veterans of America, Homeless
Veterans Committee; Arnold Stalk, Founder and President,
Veterans Village, Las Vegas, NV; and Eileen Higgins, Vice
President, Housing Services, Catholic Charities of the
Archdiocese of Chicago.
Legislative History
On September 10, 2012, H.R. 6361 was introduced by Rep. Joe
Heck (R-NV) and was referred to the Committee on Financial
Services. The bill has seven cosponsors.
On September 12, 2012, the Full Committee met in open
session and ordered the bill favorably reported to the House.
On September 19, 2012, the House agreed to a motion to
suspend the rules and pass the bill, H.R. 6361, by voice vote.
THE AFFORDABLE HOUSING AND SELF SUFFICIENCY ACT OF 2012\5\
(SECTION 8 SAVINGS ACT OF 2011)
Summary
The Affordable Housing and Self Sufficiency Improvement Act
of 2012 would expand opportunities for low-income families that
receive housing assistance to achieve self-sufficiency, and
reduce the costs of the HUD's affordable housing programs. The
bill would implement proposals examined at three Subcommittee
hearings in 2011 that would streamline duplicative or onerous
regulations and help foster self-sufficiency among recipients
of housing assistance. The bill would also implement a proposal
put forth by the Administration known as the Rental Assistance
Demonstration (RAD), which would allow public housing
authorities to preserve affordable housing stock by converting
public housing units to long-term Section 8 contracts. The bill
would help improve the delivery of services to participants in
affordable housing programs (such as public housing and
housing-choice voucher programs) and the administrators of
these programs.
---------------------------------------------------------------------------
\5\Previously listed as a discussion draft entitled ``Section 8
Savings Act of 2011.''
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Legislative History
On June 23, 2011, the Subcommittee held a hearing on the
Affordable Housing and Self Sufficiency Improvement Act
entitled ``Legislative Proposals to Reform the Housing Choice
Voucher Program.'' The Subcommittee received testimony from the
following witnesses: The Honorable Sandra B. Henriquez,
Assistant Secretary, Office of Public and Indian Housing, HUD;
Mr. Tony G. Bazzie, Executive Director, Housing Authority of
Raleigh County, WV, on behalf of the National Association of
Housing and Redevelopment Officials; Ms. Linda Couch, Senior
Vice President for Policy, National Low Income Housing
Coalition, Washington, DC; Ms. Roberta Graham, Vice President,
Housing Choice Voucher Services, Quadel Consulting, Washington,
DC.; Mr. Tory Gunsolley, President/CEO, Housing Authority of
the City of Houston, TX, on behalf of the Council of Large
Public Housing Authorities; Mr. P. Curtis Hiebert, Chief
Executive Officer, Keene, NH Housing Authority on behalf of the
Public Housing Authorities Directors Association; Mr. Alex
Sanchez, Executive Director, Housing Authority of the County of
Santa Clara, CA on behalf of the National Leased Housing
Association; and Ms. Barbara Sard, Vice President for Housing
Policy, Center on Budget and Policy Priorities, Washington, DC.
The focus of the hearing was a discussion draft of
legislation intended to improve HUD's Housing Choice Voucher
Program by reducing and streamlining duplicative or onerous
regulations. The discussion draft included provisions
previously considered and adopted by the Committee to reduce
the Section 8 program's costs, more efficiently serve program
participants, and enable public housing authorities and
property owners and managers to reduce regulatory burdens.
On October 13, 2011, the Subcommittee held a hearing
entitled ``The Section 8 Savings Act of 2011: Proposals to
Promote Economic Independence for Assisted Families.'' The
Subcommittee received testimony from the following witnesses:
Mrs. Hope C. Boldon, President and Chief Operating Officer,
Human Development Division, The Integral Group LLC; Mr. Larry
Woods, Chief Executive Officer, Housing Authority of Winston-
Salem; Ms. Kris Warren, Chief Operating Officer, Chicago
Housing Authority; Mr. Will Fischer, Senior Policy Analyst,
Center on Budget and Policy Priorities; and Mr. Greg Russ,
Executive Director, Chief Operating Officer, Cambridge Housing
Authority.
The hearing examined revisions to a discussion draft of the
``Section 8 Savings Act of 2011 (SESA),'' which was distributed
on June 16, 2011. The revisions were designed to foster self-
sufficiency among recipients of housing assistance by linking
housing assistance to job training, financial literacy, and
educational opportunities.
On November 3, 2011, the Subcommittee held a hearing
entitled ``The Obama Administration's Rental Assistance
Demonstration Proposal.'' The Subcommittee received testimony
from the following witnesses: The Honorable Sandra B.
Henriquez, Assistant Secretary, Public and Indian Housing, HUD;
Mr. Ismael Guerrero, Executive Director, Housing Authority,
City and County of Denver; Mr. Steven C. Hydinger, Managing
Director, BREC Development, LLC; and Mr. Charles Elsesser,
Community Justice Project, Florida Legal Services.
The hearing examined a proposal made by the
Administration--the Rental Assistance Demonstration--that would
allow public housing authorities to preserve their affordable
housing stock by converting public housing units to long-term
Section 8 contracts.
On February 7, 2012, the Subcommittee met in open session
and ordered the discussion draft favorably reported to the
Committee by voice vote.
TO EXCLUDE INSURANCE COMPANIES FROM THE FEDERAL RESERVE'S LEVERAGE
CAPITAL REQUIREMENTS, RISK-BASED CAPITAL REQUIREMENTS, AND ACCOUNTING
STANDARDS
Summary
This draft legislation would exclude insurance companies
from the Federal Reserve's leverage capital requirements, risk-
based capital requirements, and accounting standards, and
prohibit the Federal Reserve Board from subjecting insurance
companies that are currently regulated by state insurance
regulators and subject to capital requirements, risk-based
capital requirements, and accounting standards set by those
state regulators to heightened prudential standards in these
areas. Currently, Section 115 of the Dodd-Frank Act authorizes
the Federal Reserve to subject certain large, interconnected
financial institutions to heightened prudential standards and
Federal Reserve supervision, while Section 171 allows the
Federal Reserve to impose heightened leverage and risk-based
capital requirements on certain depository institution holding
companies, including insurance companies.
Legislative History
On November 16, 2011, the Subcommittee held a legislative
hearing entitled ``Insurance Oversight and Legislative
Proposals.'' The focus of the hearing was the impact of changes
made to the regulation of insurance by the Dodd-Frank Act and
the draft legislation. The Subcommittee heard testimony from
the following witnesses: Mr. Joseph Torti, III, Deputy Director
and Superintendent of Insurance and Banking for the State of
Rhode Island; Mr. Michael Lanza, Executive Vice President and
General Counsel of the Selective Insurance Group, Inc.; Mr.
Steven Monroe, Chief Compliance Officer for the U.S. and Canada
for Marsh, Inc.; and Mr. Daniel Schwarcz, Associate Professor
at the University of Minnesota Law School.
TO EXCLUDE INSURANCE COMPANIES FROM THE FDIC'S ``ORDERLY LIQUIDATION
AUTHORITY''
Summary
This draft legislation would explicitly exclude insurance
companies from the FDIC's Orderly Liquidation Authority to
liquidate failing financial companies that pose a significant
risk to the financial stability of the United States, as
established under Section 204 of the Dodd-Frank Act. The draft
legislation would also prohibit the FDIC from counting the
insurance assets, liabilities, or revenues of an eligible
financial company in its assessments to fund its Orderly
Liquidation Fund, as established by Section 210 of the Dodd-
Frank Act, to be used to finance the liquidation of failed
financial companies.
Legislative History
On November 16, 2011, the Subcommittee held a legislative
hearing on the impact of changes made to the regulation of
insurance by the Dodd-Frank Act entitled ``Insurance Oversight
and Legislative Proposals'' where the draft legislation was
discussed. The Subcommittee received testimony from the
following witnesses: Mr. Joseph Torti, III, Deputy Director and
Superintendent of Insurance and Banking for the State of Rhode
Island; Mr. Michael Lanza, Executive Vice President and General
Counsel of the Selective Insurance Group, Inc.; Mr. Steven
Monroe, Chief Compliance Officer for the U.S. and Canada for
Marsh, Inc.; and Mr. Daniel Schwarcz, Associate Professor at
the University of Minnesota Law School.
MOVING TO WORK IMPROVEMENT, EXPANSION, AND PERMANENCY ACT
Summary
Draft legislation entitled the ``Moving to Work
Improvement, Expansion, and Permanency Act'' would strike all
references to ``demonstration'' in the Moving to Work (MTW)
statute to designate MTW as a program of HUD, remove the
arbitrary cap set in statute placed on the number of public
housing authorities (PHAs) considered or admitted for MTW
status, and enhance MTW's focus on activities promoting
economic, flexibility and cost effectiveness, and housing
choice. The draft would impose reporting requirements for MTW
PHAs, including an annual analysis of the efforts each PHA has
undertaken to achieve the purposes of the program.
Additionally, the draft legislation would give HUD the
discretion to terminate MTW contracts in the event that PHAs
are found to be in material default of the conditions and
obligations of their agreement, are found to have misused or
misappropriated funds without taking appropriate steps to
address those misdeeds, or become negligent in their effort to
advance the goals of MTW.
Legislative History
On June 23, 2011, the Subcommittee held a legislative
hearing on the draft legislation entitled ``Legislative
Proposals to Reform the Housing Choice Voucher Program'' where
the Subcommittee received testimony from the following
witnesses: the Honorable Sandra Henriquez, HUD's Assistant
Secretary for the Office of Public and Indian Housing; Mr. Tony
Bazzie, Executive Director of the Housing Authority of Raleigh
County, WV; Ms. Linda Couch, Senior Vice President for Policy
at the National Low Income Housing Coalition; Ms. Roberta
Graham, Vice President at Quadel Consulting; Mr. Tory
Gunsolley, President/CEO of the Housing Authority of the City
of Houston; Mr. P. Curtis Hiebert, CEO of the Keene, NH Housing
Authority; Mr. Alex Sanchez, Executive Director of the Housing
Authority of the County of Santa Clara, CA; and Ms. Barbara
Sard, Vice President for Housing Policy at the Center on Budget
and Policy Priorities.
On October 13, 2011, the Subcommittee held a legislative
hearing entitled ``The Section 8 Savings Act of 2011: Proposals
to Promote Economic Independence for Assisted Families'' on the
Moving to Work Improvement, Expansion, and Permanency Act
discussion draft. The Subcommittee received testimony from the
following witnesses: Ms. Hope Boldon, President and COO of The
Integral Group LLC; Mr. Larry Woods, CEO of the Housing
Authority of Winston-Salem, NC; Ms. Kris Warren, COO of the
Chicago Housing Authority; Mr. Will Fischer, Senior Policy
Analyst at the Center on Budget and Policy Priorities; and Mr.
Greg Russ, Executive Director and COO of the Cambridge Housing
Authority.
HOUSING COUNSELING TRANSPARENCY AND FAIRNESS ACT OF 2011
Summary
Draft legislation entitled the ``Housing Counseling
Transparency and Fairness Act of 2011'' would grant HUD new
oversight and regulatory authority over all housing counseling
activities of NeighborWorks, as well as provide the HUD
Inspector General with authority to monitor NeighborWorks'
housing counseling functions and activities.
Legislative History
On September 14, 2011, the Subcommittee held a legislative
hearing entitled ``HUD and NeighborWorks Housing Counseling
Oversight.'' The hearing focused on the draft legislation and
examined the allocation and disbursement of federal housing
counseling funds through the NeighborWorks America
(NeighborWorks) nonprofit housing agency. The Subcommittee
received testimony from the following witnesses: Ms. Deborah
Holston, HUD's Acting Deputy Assistant Secretary for Single
Family Housing; Ms. Eileen Fitzgerald, Chief Executive Officer
of NeighborWorks America; Ms. Alicia Puente Cackley, Director,
Financial Markets and Community Investment for GAO; Mr. Peter
Bell, President of the National Reverse Mortgage Lenders
Association; Ms. Candy Hill, Senior Vice President of Catholic
Charities USA; Ms. Debra Olson, Interim Executive Director of
the DuPage Homeownership Center and DuPage County Board Member;
and Mr. Raul Raymundo, Chief Executive Officer of The
Resurrection Project.
Subcommittee Oversight Activities
THE FUTURE OF HOUSING FINANCE
On February 16, 2011, the Subcommittee held a hearing
entitled ``Are there Government Barriers to the Housing
Recovery?'' The hearing focused on the current state of the
housing finance market and how to facilitate the return of
private sector capital into the mortgage markets. The hearing
included testimony from the following witnesses: David Stevens,
Assistant Secretary for Housing and Commissioner of the FHA,
HUD; Theodore ``Ted'' Tozer, President, Government National
Mortgage Association (GNMA); Phyllis Caldwell, Chief,
Homeownership Preservation Office, U.S. Department of Treasury;
Douglas Holtz-Eakin, President, American Action Forum and
former director of the Congressional Budget Office; Michael A.
J. Farrell, Chairman, President & CEO, Annaly Capital
Management, Inc.; Faith Schwartz, Executive Director, HOPE Now;
and Julia Gordon, Senior Policy Counsel, Center for Responsible
Lending.
On May 25, 2011, the Subcommittee held a hearing entitled
``Legislative Proposals to Determine the Future Role of FHA,
RHS and GNMA in the Single-and Multi-Family Mortgage Markets.''
The hearing focused on HUD's FHA and USDA's Rural Housing
Service (RHS) single- and multi-family programs. The hearing
also examined legislative proposals to improve the financial
condition of FHA, RHS and the GNMA, the agency of HUD that
guarantees the timely payment of principal and interest on
securities backing mortgages insured by FHA and other
government agencies. The Subcommittee received testimony from
the following witnesses: Katie Alitz, President, Council for
Affordable and Rural Housing; Michael D. Berman, Chairman,
Mortgage Bankers Association; Mark A. Calabria, Director of
Financial Regulation Studies, Cato Institute; Peter Carey,
President and CEO, Self-Help Housing Enterprises, Inc.; Brian
Chappelle, Partner, Potomac Partners; Peter W. Evans, Partner,
Moran and Company; Basil Petrou, Managing Partner, Federal
Financial Analytics, Inc.; Ron Phipps, President, Phipps
Realty; and Barry Rutenberg, First Vice Chairman, National
Association of Home Builders.
FEDERAL LAWS AFFECTING INSURANCE REGULATION
On July 28, 2011, the Subcommittee held a hearing entitled
``Insurance Oversight: Policy Implications for U.S. Consumers,
Businesses and Jobs.'' The hearing focused on the current
status of the insurance industry and the impact of changes made
to the regulation of insurance by the Dodd-Frank Act. The
Subcommittee received testimony from the following witnesses:
Mr. John Huff, Director of the Missouri Department of
Insurance, Financial Institutions, and Professional
Registration; Ms. Susan Voss, Commissioner of the Iowa
Insurance Division and President of the National Association of
Insurance Commissioners; Mr. Greg Wren, Treasurer of the
National Conference of Insurance Legislators; Mr. Clay Jackson,
Senior Vice President and Regional Agency Manager of BB&T
Cooper, Love, Jackson, Thornton & Harwell; Mr. Andrew Furgatch,
Chairman and CEO of Magna Carta Companies; Ms. Leigh Ann Pusey,
President and CEO of the American Insurance Association; Mr.
Birny Birnbaum, Executive Director of the Center for Economic
Justice; Ms. Letha Heaton, Vice President of the Admiral
Insurance Company; Mr. Gary Hughes, Executive Vice President &
General Counsel of the American Council of Life Insurers; and
Mr. Eric Smith, President and CEO Americas of Swiss Re.
On October 25, 2011, the Subcommittee held a hearing
entitled ``Insurance Oversight: Policy Implications for U.S.
Consumers, Businesses and Jobs, Part 2.'' The hearing focused
on the goals and implementation of the newly created FIO. The
Honorable Michael McRaith, Director of the FIO, was the sole
witness.
GOVERNMENT FORECLOSURE MITIGATION PROGRAMS
On October 6, 2011, the Subcommittee held a hearing
entitled ``The Obama Administration's Response to the Housing
Crisis.'' This hearing examined the Administration's
initiatives for refinancing underwater and delinquent
mortgages, foreclosure mitigation, and other housing
revitalization efforts. The hearing also focused on ideas
outlined by President Obama in his September 8, 2011, address
to a Joint Session of Congress, including a $15 billion
community redevelopment grant initiative called ``Project
Rebuild'' and proposed modifications to the existing Home
Affordable Refinance Program (HARP). The Subcommittee received
testimony from the following witnesses: Ms. Tammye Trevino,
Administrator of Housing and Community Facilities Programs for
the Department of Agriculture's Rural Development Agency; Ms.
Carol Galante, HUD's Acting FHA Commissioner and Assistant
Secretary for Housing; Mr. Darius Kingsley, Deputy Chief of the
Department of the Treasury's Homeownership Preservation Office;
Mr. Neil Barofsky, Senior Fellow at the New York University
School of Law; Dr. Mark Calabria, Director of Financial
Regulation Studies for the Cato Institute; Ms. Laurie Goodman,
Senior Managing Director at Amherst Securities Group LP; and
Mr. Andrew Jakabovics, Senior Director of Policy Development
and Research for Enterprise Community Partners.
HUD'S HOME INVESTMENT PARTNERSHIPS PROGRAM
On November 2, 2011, the Subcommittee held a joint hearing
with the Oversight and Investigations Subcommittee entitled
``Fraud in the HUD HOME Program.'' The hearing focused on
allegations of waste, fraud, and abuse within HUD's HOME
Investment Partnerships Program (HOME) and whether HUD has
implemented appropriate policies, procedures, and internal
controls to monitor the performance of the HOME program. The
Subcommittee received testimony from the following witnesses:
Mr. Timothy Truax, who was convicted of defrauding
organizations that received funds from the HOME program; Ms.
``Jane Smith,'' an inmate in federal prison convicted of
defrauding organizations that received funds from the HOME
program; Mr. John McCarty, Acting Deputy Inspector General for
HUD; Mr. Kenneth Donohue, former Inspector General for HUD; Mr.
James Beaudette, Deputy Director for HUD's Departmental
Enforcement Center; and Mr. Ethan Handelman, Vice President for
Policy and Advocacy for the National Housing Conference.
MANUFACTURED HOUSING
On November 29, 2011, the Subcommittee held a field hearing
in Danville, Virginia entitled ``The State of Manufactured
Housing.'' The hearing served as a general overview of
manufactured housing and how stricter lending standards have
affected borrowers seeking to purchase manufactured homes. In
addition, the hearing examined how HUD monitors and enforces
its federal standards for the construction and safety of
manufactured homes. The Subcommittee received testimony from
the following witnesses: Mr. Henry Czauski, HUD's Acting Deputy
Administrator for Manufactured Housing Program; Mr. Kevin
Clayton, President and CEO of Clayton Homes; Mr. Tyler
Craddock, Executive Director of the Virginia Manufactured and
Modular Housing Association; Mr. Stan Rush, Account
Representative for Haylor, Freyer and Coon, Inc.; Mr. J. Scott
Yates, President of Yates Homes; Mr. Adam Rust, Research
Director for the Community Reinvestment Association of North
Carolina; and Ms. Carla Burr, a resident of manufactured
housing.
On February 1, 2012, the Subcommittee held a hearing
entitled ``Implementation of the Manufactured Housing
Improvement Act.'' This hearing examined the manufactured
housing industry and the efforts of HUD to implement the
Manufactured Housing Improvement Act of 2000. The Subcommittee
received testimony from the following witnesses: Mr. Henry S.
Czauski, Acting Deputy Administrator for Manufactured Housing
Programs, HUD; Mr. John Bostick, Chairman, Manufactured Housing
Association for Regulatory Reform; Ms. Ishbel Dickens,
Executive Director, Manufactured Home Owners Association of
America; Mr. Edward Hussey, Immediate-Past Chairman,
Manufactured Housing Association for Regulatory Reform; Mr.
Dana Roberts, Past Chairman, Manufactured Housing Consensus
Committee; Mr. Manuel Santana, Director of Engineering, Cavco
Industries, Inc., on behalf of the Manufactured Housing
Institute.
RENTAL ASSISTANCE DEMONSTRATION
On November 3, 2011, the Subcommittee held a hearing
entitled ``The Obama Administration's Rental Assistance
Demonstration Proposal.'' The purpose of the hearing was to
review the Obama Administration's RAD proposal, which would
allow for the voluntary conversion of units in public housing
to long-term project-based Section 8 contracts in order to
access private capital for preservation and redevelopment
activities. The Subcommittee received testimony from the
following witnesses: The Honorable Sandra Henriquez, HUD's
Assistant Secretary for Public and Indian Housing; Mr. Ismael
Guerrero, Executive Director of the City and County of Denver's
Housing Authority; Mr. Steven Hydinger, Managing Director of
BREC Development, LLC; and Mr. Charles Elsesser, of Florida
Legal Services.
HOUSING AND URBAN DEVELOPMENT, RURAL HOUSING SERVICE, NATIONAL
REINVESTMENT CORPORATION
On February 28, 2012, the Subcommittee held a hearing
entitled ``Oversight of the Department of Housing and Urban
Development.'' This hearing examined the proposed Fiscal Year
2013 budget for HUD. The Subcommittee received testimony from
the following witnesses: The Honorable Raphael Bostic,
Assistant Secretary for Policy Development and Research; Ms.
Carol Galante, Acting FHA Commissioner; The Honorable Sandra
Henriquez, Assistant Secretary for Public and Indian Housing;
The Honorable Mercedes Marquez, Assistant Secretary for
Community Planning and Development; and The Honorable John
Trasvina, Assistant Secretary for Fair Housing and Equal
Opportunity.
On April 14, 2012 the Subcommittee held a field hearing
entitled ``The Impact of Overhead High Voltage Transmission
Towers and Lines on Eligibility for Federal Housing
Administration (FHA) Insured Mortgage Programs.'' This hearing
examined the FHA's guidelines for homes located near overhead
high voltage transmission towers and lines. The Subcommittee
received testimony from the following witnesses: The Honorable
Art Bennett, Mayor, Chino Hills, California; Mr. Robert
Goodwin, President, Hope for the Hills; Mrs. Joanne Genis,
Chino Hills Resident; Ms. Bobbi Borland, Acting Branch Chief,
Santa Ana Homeownership Center, HUD; Mr. Paul Clanon, Executive
Director, California Public Utilities Commission;
Representative from Southern California Edison; Mr. Fred
Kreger, CMC, President-Elect and Government Affairs Committee
Chairman, California Association of Mortgage Professionals,
Branch Manager at American Family Funding on behalf of the
California Association of Mortgage Professionals; Mrs. Marion
Proffitt, Past President of Tri-Counties Association of
REALTORS, California Association of REALTORS, Director,
National Association of REALTORS, Director, Broker Associate at
ERA Prime Properties on behalf of the California Association of
REALTORS; and Mr. James L. Henderson, SRA, J. L. Henderson &
Company, on behalf of the Appraisal Institute.
On May 9, 2012, the Subcommittee held a hearing entitled
``Oversight of the FHA Reverse Mortgage Program for Seniors.''
This hearing examined the FHA's Home Equity Conversion Mortgage
program. The Subcommittee received testimony from the following
witnesses: Mr. Charles Coulter, Deputy Assistant Secretary for
Single Family Programs, Office of Housing, FHA; Mr. Peter H.
Bell, President & CEO, National Reverse Mortgage Lenders
Association; Mr. Daniel Fenton, Housing Director, Money
Management International; Mr. Jeffrey M. Lewis, CEO & Chairman,
Generation Mortgage Company; Dr. Anthony Sanders, Distinguished
Professor of Real Estate Finance, Senior Scholar, Mercatus
Center at George Mason University; Professor Houman Shadab,
Associate Professor of Law, New York Law School; Dr. Barbara R.
Stucki, Vice President, Home Equity Initiatives, National
Council on Aging; and Dr. Lori A. Trawinski, Senior Strategic
Policy Advisor, Consumer and State Affairs Team, AARP Public
Policy Institute.
INSURANCE OVERSIGHT
On May 17, 2012, the Subcommittee held a hearing entitled
``U.S. Insurance Sector: International Competitiveness and
Jobs.'' This hearing examined the international competitiveness
of U.S.-domiciled insurance and reinsurance companies and their
ability to create jobs. The Subcommittee received testimony
from the following witnesses: The Honorable Michael McRaith,
Director, Federal Insurance Office, U.S. Department of the
Treasury; Mr. Kevin McCarty, Insurance Commissioner, Florida
Office of Insurance Regulation, on behalf of the National
Association of Insurance Commissioners; Mr. Steve Bartlett,
President and CEO, The Financial Services Roundtable; Mr. Peter
Ralph Kochenburger, Executive Director of the Insurance Law
Center and Associate Clinical Professor of Law and Director of
Graduate Programs, University of Connecticut School of Law; Mr.
Allan E. O'Bryant, Executive Vice President--Head of
International Markets and Operations, Reinsurance Group of
America, Inc.; Mr. Michael C. Sapnar, President and Chief
Executive Officer, Transatlantic Reinsurance Company, Inc.; Mr.
William Toppeta, Vice Chairman, MetLife, Inc.; and Mr. J.
Robert Vastine, President, The Coalition of Service Industries.
FEDERAL HOUSING ADMINISTRATION
On June 7, 2012, the Subcommittee held a hearing entitled
``Oversight of the Federal Housing Administration's Multifamily
Insurance Programs.'' This hearing explored the Federal Housing
Administration's multifamily housing loan insurance programs.
The Subcommittee also examined risks posed by these programs
and potential reforms. The Subcommittee received testimonies
from the following witnesses: Ms. Marie Head, Deputy Assistant
Secretary, Office of Multifamily Housing Programs, Office of
Housing, Federal Housing Administration; Mr. Michael Bodaken,
President, National Housing Trust; Ms. Sheila Crowley,
President and CEO, National Low Income Housing Coalition; Ms.
Mary Kenney, Executive Director, Illinois Housing Development
Authority, on behalf of the National Council of State Housing
Agencies; Mr. Rodrigo Lopez, President and CEO, AmeriSphere, on
behalf of the Mortgage Bankers Association; Mr. Richard L.
Mostyn, Vice Chairman and Chief Operating Officer, The Bozzuto
Group, on behalf of the National Multi Housing Council; Mr.
Robert F. Nielsen, Immediate Past Chairman, National
Association of Home Builders; Mr. Joseph L. Pagliari, Jr.,
Clinical Professor of Real Estate, The University of Chicago
Booth School of Business; and Mr. Peter Schiff, CEO & Chief
Global Strategist, Euro Pacific Capital.
MORTGAGE ORIGINATION
On June 20, 2012, the Subcommittee held a hearing entitled
``Mortgage Disclosures: How Do We Cut Red Tape for Consumers
and Small Businesses?'' This hearing examined work done by the
Consumer Financial Protection Bureau to improve mortgage
disclosures as well as proposals to assist consumers by
combining the two mortgage disclosure forms required at the
closing of a mortgage loan. The Subcommittee received
testimonies from the following witnesses: Mr. Raj Date, Deputy
Director, Consumer Financial Protection Bureau; Mr. Chris
Abbinante, President, American Land Title Association; Ms. Anne
C. Canfield, Executive Director, Consumer Mortgage Coalition;
Mr. Bill Cosgrove, CMB, President & CEO, Union National
Mortgage Co., on behalf of the Mortgage Bankers Association;
Ms. Chanelle P. Hardy, Senior Vice President for Policy and,
Executive Director, National Urban League Policy Institute; Ms.
Brenda K. Hughes, Senior Vice President, Retail Lending
Administrator, First Federal Savings Bank, on behalf of the
American Bankers Association; Mr. Maurice Veissi, 2012
President, National Association of Realtors; and Mr. Tim
Wilson, President, Affiliated Businesses, Long and Foster
Companies, on behalf of the Real Estate Services Providers
Council, Inc.
On June 28, 2012, the Subcommittee held a hearing entitled
``Appraisal Oversight: The Regulatory Impact on Consumers and
Businesses.'' This hearing examined the appraisal industry and
explored suggestions to improve appraisal regulation,
enforcement, and oversight. The Subcommittee received testimony
from the following witnesses: Mr. William B. Shear, Director of
Financial Markets and Community Investment, Government
Accountability Office; Mr. Don Rodgers, President, Association
of Appraiser Regulatory Officials; Mr. James R. Park, Executive
Director, Appraisal Subcommittee, Federal Financial
Institutions Examination Council; Mr. David Bunton, President,
Appraisal Foundation; Mr. Don Kelly, Executive Director, Real
Estate Valuation Advocacy Association (REVAA), on behalf of
REVAA; Ms. Sara Stephens, President Elect, Appraisal Institute;
Mr. David Berenbaum, Chief Program Officer, National Community
Reinvestment Coalition; and Ms. Karen J. Mann, President, Mann
& Associates Appraisers, on behalf of the American Society of
Appraisers.
INSURANCE OVERSIGHT
On July 24, 2012, the Subcommittee held a hearing entitled
``The Impact of Dodd-Frank's Insurance Regulations on
Consumers, Job Creators, and the Economy.'' This hearing
examined provisions of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (P.L. 111-203) that affect insurance
companies and potentially increase compliance costs, which are
borne by consumers, job creators, and the economy.
Specifically, the hearing gauged the impact on the insurance
industry and its customers of changes in Federal Reserve
regulation, the ``orderly liquidation authority'' granted to
the Federal Deposit Insurance Corporation, and the Volcker
Rule. The Subcommittee received testimonies from the following
witnesses: The Honorable Bill Posey (R-FL); Dr. Robert P.
Hartwig, President, Insurance Information Institute; Mr. Birny
Birnbaum, Executive Director, Center for Economic Justice; Mr.
Charles M. Chamness, President and Chief Executive Officer,
National Association of Mutual Insurance Companies; and Mr.
Thomas P. Quaadman, Vice President, Center for Capital Markets
Competitiveness, U.S. Chamber of Commerce.
On September 11, 2012, the Subcommittee held a hearing on
``TRIA at Ten Years: The Future of the Terrorism Risk Insurance
Program.'' This hearing examined the Terrorism Risk Insurance
Act of 2002 (TRIA) and the Terrorism Risk Insurance Program it
established as a temporary loss sharing program between the
federal government and the insurance industry. In advance of
TRIA's expiration, this hearing assessed conditions in the
insurance market and the private sector's capacity to offer
insurance and reinsurance coverage for losses resulting from
acts of international and domestic terrorism without a federal
backstop. This hearing also explored options for encouraging
greater private-sector participation in the market for
terrorism risk insurance. The Subcommittee received testimony
from the following witnesses: Dr. Robert P. Hartwig, President,
Insurance Information Institute; Mr. David C. John, Senior
Research Fellow, The Heritage Foundation; Mr. Rolf Lundberg,
Senior Vice President, Congressional and Public Affairs, U.S.
Chamber of Commerce, on behalf of the Coalition to Insure
Against Terrorism; Dr. Erwann Michel-Kerjan, Professor and
Managing Director, Risk Management and Decision Processes
Center, Wharton School of Business, University of Pennsylvania;
Ms. Janice Ochenkowski, Managing Director, Jones Lang LaSalle,
on behalf of the Risk and Insurance Management Society, Inc.;
Ms. Linda St. Peter, Operations Manager, Prudential Connecticut
Realty, on behalf of the National Association of Realtors; The
Honorable Steve Bartlett, President and Chief Executive
Officer, The Financial Services Roundtable; Mr. Darwin Copeman,
President and Chief Executive Officer, Jewelers Mutual
Insurance Company, on behalf of the National Association of
Mutual Insurance Companies; Mr. Jon A. Jensen, President,
Correll Insurance Group, on behalf of the Independent Insurance
Agents & Brokers of America; Mr. Michael H. Lanza, Executive
Vice President and General Counsel, Selective Insurance Group,
Inc., on behalf of the Property Casualty Insurers Association
of America; Mr. Chris Lewis, Senior Vice President and Chief
Insurance Risk Officer, The Hartford, on behalf of the American
Insurance Association; and Mr. Edward B. Ryan, Senior Managing
Director Aon Benfield, Aon plc, on behalf of the Reinsurance
Association of America.
HOMELESSNESS
On September 14, 2012, the Subcommittee held a hearing
entitled ``Housing for Heroes: Examining How Federal Programs
Can Better Serve Veterans.'' This hearing examined the barriers
that homeless and low-income veterans face in obtaining housing
assistance and services from federal programs. This hearing
also examined two legislative proposals that addressed issues
facing homeless and low-income veterans: H.R. 6111, the
Vulnerable Veterans Housing Reform Act of 2012, introduced by
Rep. Joe Heck (R-NV) on July 12, 2012, and H.R. 6381, the
Housing Assistance for Veterans Act of 2012, a discussion draft
offered by Rep. Al Green (D-TX). The Subcommittee received
testimonies from the following witnesses: Ms. Cassondra
Flanagan, Philadelphia, PA; Mr. Caesar Hill, Chicago, IL; Ms.
Babette Peyton, Chicago, IL; Ms. Heather Ansley, Esq., Vice
President of Veterans Policy, Vets First; Mr. Steve Berg, Vice
President for Programs and Policy, National Alliance to End
Homelessness; Ms. Baylee Crone, Technical Assistance Director,
National Coalition for Homeless Veterans; Ms. Sandy Miller,
Chair, Vietnam Veterans of America, Homeless Veterans
Committee; Mr. Arnold Stalk, Founder and President, Veterans
Village, Las Vegas, NV; and Ms. Eileen Higgins, Vice President,
Housing Services, Catholic Charities of the Archdiocese of
Chicago.
BASEL III
On November 29, 2012, the Subcommittee and the Subcommittee
on Financial Institutions and Consumer Credit held a joint
hearing entitled ``Examining the Impact of the Proposed Rules
to Implement Basel III Capital Standards.'' The hearing
examined whether U.S. banking regulators' proposed capital
adequacy standards will ensure the stability of the financial
system and preserve the ability of financial institutions to
take calculated risks. The subcommittees received testimony
from the following witnesses: Mr. George French, Deputy
Director of the Division of Risk Management Supervision at the
Federal Deposit Insurance Corporation; Mr. Michael S. Gibson,
Director of the Division of Banking Supervision and Regulation
at the Board of Governors of the Federal Reserve System; Mr.
John Lyons, Chief National Bank Examiner at the Office of the
Comptroller of the Currency; Mr. Greg Gonzales, Commissioner at
the Tennessee Department of Financial Institutions on behalf of
the Conference of State Bank Supervisors; Mr. Kevin M. McCarty,
Insurance Commissioner at the Florida Office of Insurance
Regulation on behalf of the National Association of Insurance
Commissioners; Professor Anat R. Admati, George G.C. Parker
Professor of Finance and Economics for the Graduate School of
Business at Stanford University; Mr. Terrence A. Duffy,
Executive Chairman and President of the CME Group, Inc.; Mr.
James M. Garnett, Jr., Head of Risk Architecture at Citi; Mr.
Marc Jarsulic, Chief Economist at Better Markets; Mr. William
A. Loving, President and Chief Executive Officer at Pendleton
Community Bank on behalf of the Independent Community Bankers
of America; Mr. Daniel T. Poston, Executive Vice President and
Chief Financial Officer at Fifth Third Bancorp on behalf of the
American Bankers Association; Mr. Paul Smith, Senior Vice
President, Treasurer, and Chief Financial Officer at State Farm
Insurance Company; and Ms. Virginia Wilson, Executive Vice
President and Chief Financial Officer at TIAA-CREF.
Subcommittee Hearings Held
------------------------------------------------------------------------
Serial No. Title Date(s)
------------------------------------------------------------------------
112-7............... Are There Government February 16, 2011
Barriers to the Housing
Market Recovery?.
112-13.............. Legislative Proposals to March 2, 2011
End Taxpayer Funding for
Ineffective Foreclosure
Mitigation Programs.
112-16.............. Legislative Proposals to March 11, 2011
Reform the National Flood
Insurance Program, Part I.
112-23.............. Legislative Proposals to April 1, 2011
Reform the National Flood
Insurance Program, Part II.
112-32.............. Legislative Proposals to May 25, 2011
Determine the Future Role
of FHA, RHS and GNMA in
the Single- and Multi-
Family Mortgage Markets.
112-40.............. Legislative Proposals to June 23, 2011
Reform the Housing Choice
Voucher Program.
112-47.............. Mortgage Origination: The July 13, 2011
Impact of Recent Changes
on Homeowners and
Businesses.
112-53.............. Insurance Oversight: Policy July 28, 2011
Implications for U.S.
Consumers, Businesses, and
Jobs.
112-57.............. Legislative Proposals to September 8, 2011
Determine the Future Role
of FHA, RHS and GNMA in
the Single- and Multi-
Family Mortgage Markets,
Part 2.
112-61.............. HUD and NeighborWorks September 14, 2011
Housing Counseling
Oversight.
112-69.............. The Obama Administration's October 6, 2011
Response to the Housing
Crisis.
112-74.............. The Section 8 Savings Act October 13, 2011
of 2011: Proposals to
Promote Economic
Independence for Assisted
Families.
112-77.............. Insurance Oversight: Policy October 25, 2011
Implications for U.S.
Consumers, Businesses, and
Jobs, Part 2.
112-81.............. Fraud in the HUD Home November 2, 2011
Program (Joint Hearing
with Oversight).
112-83.............. The Obama Administration's November 3, 2011
Rental Assistance
Demonstration Proposal.
112-84.............. Insurance Oversight and November 16, 2011
Legislative Proposals.
112-86.............. The State of Manufactured November 29, 2011
Housing (Field Hearing).
112-93.............. The Homeless Children and December 15, 2011
Youth Act of 2011:
Proposals to Promote
Economic Independence for
Homeless Children and
Youth.
112-96.............. Implementation of the February 1, 2012
Manufactured Housing
Improvement Act of 2000.
112-102............. Oversight of the Department February 28, 2012
of Housing and Urban
Development.
112-115............. The Impact of Overhead High April 14, 2012
Voltage Transmission
Towers and Lines on
Eligibility for Federal
Housing Administration
(FHA) Insured Mortgage
Programs (Field Hearing).
112-123............. Oversight of the Federal May 9, 2012
Housing Administration's
Reverse Mortgage Program
for Seniors.
112-129............. U.S. Insurance Sector: May 17, 2012
International
Competitiveness and Jobs.
112-134............. Oversight of Federal June 7, 2012
Housing Administration's
Multifamily Insurance
Programs.
112-138............. Mortgage Disclosures: How June 20, 2012
Do We Cut Red Tape for
Consumers and Small
Businesses?.
112-140............. Appraisal Oversight: The June 28, 2012
Regulatory Impact on
Consumers and Businesses.
112-150............. The Impact of Dodd-Frank's July 24, 2012
Insurance Regulations on
Consumers, Job Creators,
and the Economy.
112-155............. TRIA at Ten Years: The September 11, 2012
Future of the Terrorism
Risk Insurance Program.
112-158............. Housing for Heroes: September 14, 2012
Examining How Federal
Programs Can Better Serve
Veterans.
112-161............. Joint hearing with the November 29, 2012
Subcommittee on Financial
Institutions and Consumer
Credit entitled
``Examining the Impact of
the Proposed Rules to
Implement Basel III
Capital Standards''.
------------------------------------------------------------------------
Subcommittee on International Monetary Policy and Trade
(Ratio: 8-6)
GARY G. MILLER, California,
Chairman
CAROLYN McCARTHY, New York, ROBERT J. DOLD, Illinois, Vice
Ranking Member Chairman
GWEN MOORE, Wisconsin RON PAUL, Texas
ANDRE CARSON, Indiana DONALD A. MANZULLO, Illinois
DAVID SCOTT, Georgia JOHN CAMPBELL, California
ED PERLMUTTER, Colorado MICHELE BACHMANN, Minnesota
JOE DONNELLY, Indiana BILL HUIZENGA, Michigan
BARNEY FRANK, Massachusetts, ex officioANK C. GUINTA, New Hampshire
SPENCER BACHUS, Alabama, ex
officio
Subcommittee Legislative Activities
SECURING AMERICAN JOBS THROUGH EXPORTS ACT OF 2011
(H.R. 2072)
Summary
H.R. 2072, the Export-Import Bank Reauthorization Act of
2012, (as amended) reauthorized the Bank through September 30,
2014. The bill raised the Bank's lending limit to $120 billion
in 2012, $130 billion in 2013 and $140 billion in 2014. H.R.
2072 ties increases in the exposure limit to the Bank
maintaining default rates below 2%, the Bank submitting a
business plan to Congress and GAO, and responding to GAO
recommendations on the Bank's risk management. The bill directs
the Secretary of the Treasury to enter into multilateral
negotiations for the purpose of (1) reducing and then
eliminating government export subsidies for aircraft, and (2)
ultimately ending all government export subsidies. The other
major provisions of H.R. 2072 include provisions to: require
the Bank to report not less than quarterly on default rates and
implement a corrective plan with monthly reporting if the
default rate exceeds 2%; prohibit the Bank from entering into
agreement where it is subordinate to all other creditors;
require the Bank to submit a multiyear business plan that
identifies, among other items, potential for increased risk
from its operations; require GAO to review, report, and make
recommendations on the Bank's risk management; require the Bank
to categorize the reason for making each loan or long-term
guarantee; require notice in the Federal Register and provide
for a comment period for all transactions over $100 million;
require that all companies that do business with the Bank
certify that they do not do business with Iran, and other
items.
Legislative History
On June 1, 2011, H.R. 2072 was introduced by Representative
Gary Miller and referred to the Committee on Financial
Services. The bill has nine cosponsors.
On March 10, 2011, the Subcommittee held a hearing entitled
``The Role of the Export-Import Bank in U.S. Competitiveness
and Job Creation.'' The purpose of the hearing was to examine
the role of the Export-Import Bank in fostering job growth by
helping U.S. companies compete in the international export
market. The hearing focused on how to improve the operations of
the Export-Import Bank in supporting U.S. companies as they
export to international markets. The Subcommittee received
testimony from the following witnesses: Mr. Karan Bhatia, Vice
President and Senior Counsel, General Electric; Mr. Scott
Scherer, Senior Vice President, Boeing Capital Corporation; Mr.
David Ickert, Vice President of Finance, Air Tractor, Inc.; and
Mr. Kevin Law, President & CEO, Long Island Association.
On May 24, 2011, the Subcommittee held a hearing entitled
``Legislative Proposals on Securing American Jobs Through
Exports: Export-Import Bank Reauthorization.'' The Subcommittee
received testimony from the following witnesses: Mr. Fred
Hochberg, Chairman and President, the Export-Import Bank of the
United States; Ms. Donna K. Alexander, Chief Executive Officer,
Bankers' Association for Finance and Trade--International
Financial Services Association; Ms. Thea Lee, Deputy Chief of
Staff, American Federation of Labor and Congress of Industrial
Organizations; Mr. Osvaldo Luis Gratacos, Inspector General for
the Export-Import Bank; Mr. John Hardy, President, Coalition
for Employment Through Exports; and Dr. Matthew Slaughter,
Associate Dean for the MBA Program, Signals Company Professor
of Management, Tuck School of Business, Dartmouth College.
On June 2, 2011, the Subcommittee met in open session and
ordered the bill, as amended, favorably reported to the
Committee by a voice vote.
On June 22, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by a voice vote. The Committee Report was filed on September 8,
2011 (H. Rept. 112-201).
On May 9, 2012, the House considered H.R. 2072 and passed
the bill, with amendments, by a record vote of 330 yeas and 93
nays.
On May 15, 2012, the Senate considered H.R. 2072 and passed
the bill by a record vote of 78 yeas and 20 nays.
On May 30, 2012, H.R. 2072 was signed by the President and
became Public Law No. 112-122.
SUPPORTING ECONOMIC AND NATIONAL SECURITY BY MAINTAINING U.S.
LEADERSHIP IN MULTILATERAL DEVELOPMENT BANKS ACT
(H.R. 3188)
Summary
H.R. 3188, the Supporting Economic and National Security by
Maintaining U.S. Leadership in Multilateral Development Banks
Act, would amend the Bretton Woods Agreements Act to allow for
general capital increases at the International Bank for
Reconstruction and Development (IBRD), the Inter-American
Development Bank (IDB), the African Development Bank, and the
European Bank for Reconstruction and Development. In addition
to the general capital increases, this bill also has provisions
to fight corruption, promote transparency and accountability at
these institutions, promote strong procurement standards, and
to urge Argentina to settle its debts with its public and
private creditors.
Legislative History
On October 13, 2011, H.R. 3188 was introduced by
Representative Robert Dold, and referred to the Committee on
Financial Services. The bill has no cosponsors.
On June 14, 2011, the Subcommittee held a legislative
hearing entitled ``The Role of the U.S. in the World Bank and
Multilateral Development Banks: Bank Oversight and Requested
Capital Increases.'' The Subcommittee received testimony from
The Honorable Lael Brainard, Under Secretary for International
Affairs, Department of the Treasury.
On July 27, 2011, the Subcommittee held a legislative
hearing entitled ``The Impact of the World Bank and
Multilateral Development Banks on U.S. Job Creation.'' The
Subcommittee received testimony from the following witnesses:
The Honorable James T. Kolbe, former Member of Congress, Senior
Transatlantic Fellow, German Marshall Fund of the United
States; Mr. Robert Mosbacher, Jr., Chairman, Mosbacher Energy
Company, Past-President and CEO, Overseas Private Investment
Corporation; Mr. James A. Harmon, Chairman, Caravel Management,
LLC, Past-President and CEO, Export-Import Bank of the United
States; Mr. Benjamin Leo, Research Fellow, Center for Global
Development, Former Treasury Department and National Security
Council Official; and Mr. John Hardy, President, Coalition for
Employment through Exports.
On September 21, 2011, the Subcommittee held a legislative
hearing entitled ``The Impact of the World Bank and
Multilateral Development Banks on National Security.'' The
Subcommittee received testimony from the following witnesses:
The Honorable Marisa Lago, Assistant Secretary for
International Markets and Development, U.S. Department of the
Treasury; and Rear Admiral Michelle Howard, Chief of Staff to
the Director, Strategic Plans and Policy, J5, the Joint Staff.
On October 4, 2011, the Subcommittee held a legislative
hearing on a discussion draft entitled ``The World Bank and
Multi Lateral Development Banks' Authorization.'' The
Subcommittee received testimony from the following witnesses:
The Honorable Mark Green, Former U.S. Ambassador to Tanzania,
Former U.S. Representative (R-WI), Senior Director, U.S. Global
Leadership Coalition; The Honorable Eli Whitney Debevoise, II,
Former U.S. Executive Director, The World Bank Group, Senior
Partner, Arnold & Porter LLP; Mr. Daniel F. Runde, Director of
the Project on Prosperity and Development, William A. Schreyer
Chair in Global Analysis, Center for Strategic and
International Studies; Mr. John Murphy, Vice President for
International Affairs, U.S. Chamber of Commerce.
On October 12, 2011, the Subcommittee met in open session
and ordered the discussion draft, as amended, reported
favorably to the Committee by a voice vote.
Subcommittee Oversight Activities
GLOBAL CAPITAL FLOWS
On October 13, 2011, the Subcommittee held a hearing
entitled ``The U.S. Housing Finance System in the Global
Context: Structure, Capital Sources, and Housing Dynamics.''
The U.S. securitization process has facilitated the flow of
private investment capital from investors around the world to
fund U.S. home mortgages. This hearing focused on the
relationship between the health of the U.S. housing finance
system and global financial stability, including foreign
involvement in the U.S. housing finance system and the
motivations of foreign investors to purchase residential
mortgage-backed securities. The Subcommittee received testimony
from the following witnesses: Mr. Michael A. J. Farrell,
Chairman, CEO and President, Annaly Capital Management, Inc.;
Mr. Richard Dorfman, Managing Director and Head of
Securitization Group, Securities Industry and Financial Markets
Association; Mr. Moe Veissi, 2011 President-Elect, National
Association of Realtors; and Dr. Susan M. Wachter, Richard B.
Worley Professor of Financial Management, The Wharton School,
University of Pennsylvania.
EUROZONE DISTRESS
On October 25, 2011, the Subcommittee held a hearing
entitled ``The Eurozone Crisis and Implications for the United
States.'' The purpose of the hearing was to examine the
potential effects of Europe's economic problems on the U.S.
economy, particularly on trade and employment. The hearing also
examined European policy options under consideration for
containing the crisis and the role of the U.S. in these
decisions. The Subcommittee received testimony from the
following witnesses: The Honorable Charles Collyns, Assistant
Secretary for International Finance, U.S. Department of the
Treasury; Mr. Peter S. Rashish, Vice President, Europe &
Eurasia, U.S. Chamber of Commerce; Dr. Desmond Lachman,
Resident Fellow, American Enterprise Institute; and Mr. Douglas
J. Elliott, Fellow of Economic Studies, Initiative on Business
and Public Policy, Brookings Institution.
EXTRACTIVE INDUSTRIES
On May 10, 2012, the Subcommittee held a hearing entitled
``The Costs and Consequences of Dodd-Frank Section 1502:
Impacts on America and the Congo.'' This hearing examined the
effect of Section 1502 of the Dodd-Frank Act on Congolese
residents and the U.S. businesses that must comply with Section
1502's requirements relating to conflict minerals originating
in the Democratic Republic of Congo. The Subcommittee received
testimony from the following witnesses: Mr. Mvemba Dizolele,
Distinguished Visiting Fellow, The Hoover Institution at
Stanford University; Dr. Laura E. Seay, Assistant Professor of
Political Science, Morehouse College; Mr. Frank Vargo, Vice
President, International Economic Affairs Policy, National
Association of Manufacturers; Mr. Steve Pudles, Chairman, Board
of Directors, IPC--Association of Connecting Electronics
Industries, and Chief Executive Officer, Spectral Response,
LLC; Mr. Stephen Lamar, Executive Vice President, American
Apparel & Footwear Association; The Most Reverend Nicolas Djomo
Lola, Bishop of Tshumbe, President, National Bishops
Conference, Democratic Republic of Congo; and Mr. Bruce Calder,
Vice President, Claigan Environmental, Inc.
MARKET ACCESS
On May 16, 2012, the Subcommittee held a hearing entitled
``Increasing Market Access for U.S. Financial Firms in China:
Update on Progress of the S&ED.'' This hearing examined the
access of U.S. financial firms to the market for financial
services in China as well as the latest developments in the
Strategic and Economic Dialogue between the U.S. and China. The
Subcommittee received testimony from the following witnesses:
The Honorable Lael Brainard, Under Secretary, International
Affairs, U.S. Department of the Treasury; The Honorable Rob
Nichols, Chairman, Engage China Coalition; Mr. David Strongin,
Managing Director, International Policy, Securities Industry
and Financial Markets Association; The Honorable Clay Lowery,
Vice President, Rock Creek Global Advisors; and Mr. Nicholas R.
Lardy, Anthony M. Solomon Senior Fellow, Peterson Institute for
International Economics.
Subcommittee Hearings Held
------------------------------------------------------------------------
Serial No. Title Date(s)
------------------------------------------------------------------------
112-15................ The Role of the Export- March 10, 2011
Import Bank in U.S.
Competitiveness and Job
Creation.
112-31................ Legislative Proposals on May 24, 2011
Securing American Jobs
Through Exports: Export-
Import Bank
Reauthorization.
112-38................ The Role of the U.S. in June 14, 2011
the World Bank and
Multilateral Development
Banks: Bank Oversight and
Requested Capital
Increases.
112-52................ The Impact of the World July 27, 2011
Bank and Multi-Lateral
Development Banks on U.S.
Job Creation.
112-64................ The Impact of the World September 21, 2011
Bank and Multi-Lateral
Development Banks on
National Security.
112-68................ The World Bank and Multi October 4, 2011
Lateral Development
Banks' Authorization.
112-73................ The U.S. Housing Finance October 13, 2011
System in the Global
Context: Structure,
Capital Sources and
Housing Dynamics.
112-76................ The Eurozone Crisis and October 25, 2011
Implications for the
United States.
112-124............... The Costs and Consequences May 10, 2012
of Dodd-Frank Section
1502: Impacts on America
and the Congo.
112-126............... Increasing Market Access May 16, 2012
for U.S. Financial Firms
in China: Update on
Progress of the Strategic
& Economic Dialogue.
------------------------------------------------------------------------
Subcommittee on Oversight and Investigations
(Ratio: 10-8)
RANDY NEUGEBAUER, Texas, Chairman
MICHAEL E. CAPUANO, Massachusetts, Ranking MemberITZPATRICK,
STEPHEN F. LYNCH, Massachusetts Pennsylvania, Vice Chairman
MAXINE WATERS, California PETER T. KING, New York
JOE BACA, California MICHELE BACHMANN, Minnesota
BRAD MILLER, North Carolina STEVAN PEARCE, New Mexico
KEITH ELLISON, Minnesota BILL POSEY, Florida
JAMES A. HIMES, Connecticut NAN A. S. HAYWORTH, New York
JOHN C. CARNEY, Jr., Delaware JAMES B. RENACCI, Ohio
BARNEY FRANK, Massachusetts, ex officioANCISCO ``QUICO'' CANSECO, Texas
STEPHEN LEE FINCHER, Tennessee
SPENCER BACHUS, Alabama, ex
officio
Subcommittee Oversight Activities
GSE LEGAL FEES
On February 15, 2011, the Subcommittee held a hearing
entitled ``An Analysis of the Post-Conservatorship Legal
Expenses of Fannie Mae and Freddie Mac.'' The hearing explored
issues related to the FHFA's oversight of legal fees incurred
by Fannie Mae and Freddie Mac since the companies' entry into
conservatorship in September 2008. FHFA disclosed at the
hearing that taxpayers have spent more than $162 million
defending Fannie Mae and Freddie Mac and their former top
executives in civil lawsuits accusing them of fraud. The
Subcommittee received testimony from the following witnesses:
Mr. Edward DeMarco, Acting Director, FHFA; Mr. Alfred Pollard,
General Counsel, FHFA; Mr. Michael Williams, Chief Executive
Officer, Fannie Mae; Mr. Timothy J. Mayopoulos, General
Counsel, Fannie Mae; and the Honorable Mike DeWine, Attorney
General of Ohio.
COSTS OF THE DODD-FRANK ACT
On March 30, 2011, the Subcommittee held a hearing on ``The
Costs of Implementing the Dodd-Frank Act: Budgetary and
Economic.'' The Subcommittee received testimony from the
following witnesses: the Honorable Jill E. Sommers,
Commissioner, CFTC; Mr. Douglas W. Elmendorf, Director,
Congressional Budget Office (CBO); Mr. Jeffrey Lacker,
President, Federal Reserve Bank of Richmond; Douglas Holtz-
Eakin, Ph.D., President, American Action Forum; James Angel,
Ph.D., CFA, Associate Professor of Finance, McDonough School of
Business, Georgetown University; James Overdahl, Ph.D., Vice
President NERA Economic Consulting, former Chief Economist for
the SEC; and David Min, Associate Director of Financial Markets
Policy, Center for American Progress.
SECURITIES FRAUD
On May 13, 2011, the Subcommittee held a hearing entitled
``The Stanford Ponzi Scheme: Lessons for Protecting Investors
from the Next Securities Fraud.'' This hearing reviewed the
failure of the SEC and the Financial Industry Regulatory
Authority (FINRA) to uncover a Ponzi scheme allegedly
orchestrated by Houston businessman Allen Stanford that
defrauded thousands of U.S. investors. The hearing also focused
on what steps the SEC and FINRA could take to prevent similar
securities frauds in the future. The Subcommittee received
testimony from the following witnesses: Mr. David Kotz,
Inspector General, SEC; Mr. Robert Khuzami, Director of the
Division of Enforcement, SEC; Mr. Carlo di Florio, Director of
Office of Compliance Inspections and Examinations, SEC; Mr.
Richard Ketchum, Chief Executive Officer, FINRA; Ms. Julie
Preuitt, Assistant Regional Director, SEC Fort Worth Regional
Office; Mr. Charles Rawl, a former Stanford Group Company
employee and whistleblower; and Mr. Stanford Kauffman, a victim
of the Stanford fraud.
MORTGAGE SERVICING STANDARDS
On July 7, 2011, the Subcommittees on Financial
Institutions and Consumer Credit and Oversight and
Investigations held a joint hearing entitled ``Mortgage
Servicing: An Examination of the Role of Federal Regulators in
Settlement Negotiations and the Future of Mortgage Servicing
Standards.'' The purpose of the hearing was to review the role
of Federal regulators in the ongoing mortgage servicing
settlement negotiations and the development of new mortgage
servicing standards. The Subcommittees heard testimony from the
following witnesses: Ms. Julie Williams, First Senior Deputy
Comptroller and Chief Counsel of the OCC; Mr. Mark Pearce,
Director, Division of Depositor and Consumer Protection at the
FDIC; Mr. Raj Date, Associate Director of Research, Markets and
Regulations, CFPB, U.S. Department of the Treasury; the
Honorable Luther Strange, Alabama Attorney General; Mr. David
Stevens, President, Mortgage Bankers Association; and Mr.
Michael Calhoun, President, Center for Responsible Lending.
OVERSIGHT OF THE FINANCIAL STABILITY OVERSIGHT COUNCIL
On April 14, 2011, the Subcommittee held a hearing on
``Oversight of the Financial Stability Oversight Council.'' The
hearing focused on the efforts of the FSOC, an inter-agency
body established under the Dodd-Frank Act to monitor and
contain risk to the financial system, to implement Title I of
the Act. In particular, the hearing examined the FSOC's
execution of its mandate to identify financial institutions
that will be subject to enhanced supervision and prudential
standards; the FSOC's coordination of rulemaking among
financial regulatory agencies; the FSOC's studies on
regulations that might affect the competitiveness of U.S.
financial institutions in the global market for financial
services; and the FSOC's efforts to monitor insurance on the
federal level. The Subcommittee received testimony from the
following witnesses: Gary Gensler, Chairman, CFTC; Jeffrey A.
Goldstein, Under Secretary for Domestic Finance, Treasury
Department; John Huff, Director, Missouri Department of
Insurance, Financial Institutions, and Professional
Registration; J. Nellie Liang, Director, Office of Financial
Stability Policy and Research, Federal Reserve Board; Robert W.
Cook, Director of Division of Trading and Markets, SEC; Arthur
J. Murton, Director, Division of Insurance and Research, FDIC;
and Tim Long, Chief National Bank Examiner and Senior Deputy
Comptroller for Regulatory Policy, OCC.
On July 14, 2011, the Subcommittee held a hearing entitled
``Oversight of the Office of Financial Research and the
Financial Stability Oversight Council.'' The hearing addressed
the efforts to organize and standup the OFR, coordination
between the FSOC, OFR and other regulators, and data security
issues at OFR. The Subcommittee received testimony from the
following witnesses: The Honorable Richard Berner, Counselor to
the Secretary of the Treasury; Dr. Nassim N. Taleb,
Distinguished Professor, New York University Polytechnic
Institute; Mr. Dilip Krishna, Vice President of Financial
Services, Teradata Corporation; Mr. Alan Paller, Director of
Research, SANS Institute; and Dr. John Lietchy, Professor of
Marketing and Statistics, Director of the Center for the Study
of Global Financial Stability, Pennsylvania State University.
OVERSIGHT OF THE CREDIT RATING AGENCIES POST-DODD FRANK
On July 27, 2011, the Subcommittee held a hearing entitled
``Oversight of the Credit Rating Agencies Post Dodd-Frank.''
The hearing examined how federal regulation and operations of
the credit rating agencies have changed since the financial
crisis and following enactment of the Dodd-Frank Act. The
hearing reviewed the progress of federal agencies in striking
references to ratings agencies in their regulations and
addressed investor over-reliance on the ratings opinions of the
three leading ratings agencies, Standard & Poor's, Moody's
Investor Service and Fitch Ratings. The Subcommittee received
testimony from the following witnesses: Mr. John Ramsay, Deputy
Director, Division of Trading and Markets, U.S. Securities
Exchange Commission; Mr. Mark Van Der Weide, Senior Associate
Director, Division of Banking Supervision and Regulation,
Federal Reserve Board; Mr. David Wilson, Senior Deputy
Comptroller and Chief National Bank Examiner, OCC; Mr. Deven
Sharma, President, Standard & Poor's; Mr. Michael Rowan, Global
Managing Director, Commercial Group, Moody's Investors Service;
Mr. James Gellert, Chief Executive Officer, Rapid Ratings; Mr.
Jules Kroll, Chairman and CEO, Kroll Bond Rating Agency; Mr.
Larry White, Robert Kavesh Professor of Economics, Stern School
of Business, New York University; and Mr. Gregory Smith, Chief
Operating Officer and General Counsel, Colorado Public
Employees' Retirement Association.
OVERSIGHT OF THE OFFICE OF TERRORISM AND FINANCIAL INTELLIGENCE POST-9/
11
On September 6, 2011, the Subcommittee held a field hearing
in New York City entitled ``Combating Terror Post-9/11:
Oversight of the Office of Terrorism and Financial
Intelligence.'' The hearing reviewed the activities of the
Treasury Department's Office of Terrorism and Financial
Intelligence to safeguard the integrity of the nation's
financial system and to fight terrorist facilitators, money
launderers, and other threats to national security. The
Honorable Daniel Glaser, Assistant Secretary for Terrorist
Financing, Department of the Treasury, was the sole witness.
POTENTIAL CONFLICTS OF INTEREST AT THE SEC
On September 22, 2011, the Subcommittee held a joint
hearing with the Committee on Oversight and Government Reform's
Subcommittee on TARP, Financial Services and Bailouts of Public
and Private Programs, entitled ``Potential Conflicts of
Interest at the SEC: The Becker Case.'' The hearing examined
how the SEC handled potential conflicts of interest involving
David Becker, a former SEC general counsel who financially
benefited from the Bernard Madoff Ponzi scheme. The
Subcommittees received testimony from the following witnesses:
the Honorable Mary Schapiro, Chairman, SEC; Mr. H. David Kotz,
Inspector General, SEC; and Mr. David M. Becker, Former General
Counsel, SEC.
OVERSIGHT OF THE FEDERAL HOME LOAN BANKS
On October 12, 2011, the Subcommittee held a hearing
entitled ``Oversight of the Federal Home Loan Bank System.''
The hearing examined the capital requirements, financial
health, and stability of the Federal Home Loan Bank System, as
well as the Federal Home Loan Bank System's ability to fulfill
its housing mission and provide liquidity to the cooperative's
member banks in a safe and sound manner. Subcommittee received
testimony from the following witnesses: Mr. Anthony P. Costa,
Chairman and co-CEO, Empire State Bank, on behalf of the
American Bankers Association; Mr. Lee R. Gibson, Chairman of
the Federal Home Loan Bank of Dallas and Chairman of the
Council of Federal Home Loan Banks; Mr. Tim Zimmerman,
President/CEO, Standard Bank, PaSB, on behalf of the
Independent Community Bankers of America; and the Honorable
Bruce Morrison, former Director of the Federal Housing Finance
Board.
OVERSIGHT OF THE HUD HOME PROGRAM
On November 2, 2011, the Subcommittee held a joint hearing
with the Oversight and Investigations Subcommittee entitled
``Fraud in the HUD HOME Program.'' The hearing focused on
allegations of waste, fraud, and abuse within HUD's HOME and
whether HUD has implemented appropriate policies, procedures,
and internal controls to monitor the performance of the HOME
program. The Subcommittee received testimony from the following
witnesses: Mr. Timothy Truax, who was convicted of defrauding
organizations that received funds from the HOME program; Ms.
``Jane Smith,'' an inmate in federal prison convicted of
defrauding organizations that received funds from the HOME
program; Mr. John McCarty, Acting Deputy Inspector General for
HUD; Mr. Kenneth Donohue, former Inspector General for HUD; Mr.
James Beaudette, Deputy Director for HUD's Departmental
Enforcement Center; and Mr. Ethan Handelman, Vice President for
Policy and Advocacy for the National Housing Conference.
On May 16, 2012, the Subcommittee met in open session for
the purpose of authorizing and issuing a subpoena duces tecum
to compel the production of records from HUD related to its
oversight and administration of the HOME Investment
Partnerships Program. Because Subcommittee Chairman Randy
Neugebauer and Subcommittee Ranking Member Michael E. Capuano
reached an agreement under which HUD would voluntarily produce
records to the Subcommittee, the question on adopting the
resolution to authorize and issue a subpoena duces tecum was
never posed to the Subcommittee. The agreement was memorialized
in a May 22, 2012 letter from Chairman Neugebauer and Ranking
Member to HUD Secretary Shaun Donovan.
FEDERAL HOUSING FINANCE AGENCY
On December 1, 2011, the Subcommittee held a hearing
entitled ``Oversight of the Federal Housing Finance Agency.''
The hearing examined the performance of the FHFA in its dual
roles as regulator and conservator of the GSEs Fannie Mae and
Freddie Mac. The hearing also considered the challenges that
FHFA faces, including its efforts to mitigate taxpayer exposure
to continuing GSE losses. The Subcommittee received testimony
from the following witnesses: Mr. Edward J. DeMarco, Acting
Director, FHFA; Mr. Charles E. Haldeman, Jr., Chief Executive
Officer, Freddie Mac; and Mr. Michael J. Williams, President
and Chief Executive Officer, Fannie Mae.
THE COLLAPSE OF MF GLOBAL
On December 7, 2011, the Subcommittee met in open session
to authorize and issue a subpoena ad testificandum for the
appearance of The Honorable Jon Corzine at a hearing scheduled
for December 15, 2011. The Subcommittee adopted a resolution to
authorize and issue the subpoena by a recorded vote of 15 yeas
and 0 nays.
On December 15, 2011, the Subcommittee held a hearing
entitled ``The Collapse of MF Global.'' The hearing examined
the collapse of MF Global, its oversight by regulators and
self-regulatory organizations, and the consequences of its
collapse on customers. The hearing also examined the decision
by the Federal Reserve Bank of New York in early 2011 decision
to approve MF Global's application to become a primary dealer.
The Subcommittee received testimony from the following
witnesses: The Honorable Jon Corzine, former Chief Executive
Officer, MF Global; Mr. Bradley Abelow, Chief Operating
Officer, MF Global; Mr. Dan M. Berkovitz, General Counsel,
CFTC; Mr. Robert Cook, Director, Division of Trading and
Markets, SEC; Mr. Terrence A. Duffy, Executive Chairman, CME
Group Inc; Mr. Richard Ketchum, President, Chairman and Chief
Executive Officer, Financial Industry Regulatory Authority; Mr.
James Kobak, Jr., Chief Counsel to Mr. James Giddens,
Bankruptcy Trustee for MF Global Inc.; and Mr. Thomas C.
Baxter, Jr., General Counsel, Federal Reserve Bank of New York,
CME Group Response (submitted for the record).
On February 2, 2012, the Subcommittee held a hearing
entitled ``The Collapse of MF Global: Part 2.'' The hearing
examined the decisions and events leading to the collapse of MF
Global, focusing particularly on (1) MF Global's internal risk
management policies and procedures and (2) the provision of
credit rating services to MF Global in the period preceding its
collapse. The Subcommittee received testimony from the
following witnesses: Mr. Michael Roseman, former Global Chief
Risk Officer, MF Global Holdings Ltd; Mr. Michael Stockman,
Global Chief Risk Officer, MF Global Holdings Ltd; Mr. Craig
Parmelee, Managing Director, Corporate and Government Ratings
Division, Standard & Poor's Rating Services; Mr. Richard
Cantor, Chief Credit Officer, Moody's Investors Service; and
Mr. James Gellert, President and Chief Executive Officer, Rapid
Ratings International, Inc.
On March 21, 2012, the Subcommittee met in open session to
authorize and issue a subpoena ad testificandum for the
appearance of Ms. Edith O'Brien in conjunction with the March
28, 2012 hearing to examine the events that took place during
the final week of MF Global's operations. The Subcommittee
adopted a resolution to authorize and issue the subpoena by
voice vote.
On March 28, 2012, the Subcommittee held a hearing entitled
``The Collapse of MF Global: Part 3.'' The hearing examined the
events that took place during the final week of MF Global's
operations before the firm filed for bankruptcy on October 31,
2011. The Subcommittee received testimony from the following
witnesses: Ms. Laurie Ferber, General Counsel, MF Global
Holdings Ltd; Mr. Henri Steenkamp, Chief Financial Officer, MF
Global Holdings Ltd; Ms. Christine Serwinski, Chief Financial
Officer for North America, MF Global Inc; Ms. Diane M. Genova,
Deputy General Counsel, JPMorgan Chase & Co.; Mr. Daniel J.
Roth, President and Chief Executive Officer, National Futures
Association; and Ms. Susan M. Cosper, Technical Director,
Chairman, Emerging Issues Task Force, Financial Accounting
Standards Board. Ms. Edith O'Brien, Assistant Treasurer, MF
Global Inc., was present and was dismissed because she invoked
her 5th Amendment right against self-incrimination.
On November 15, 2012, Chairman Randy Neugebauer of the
Subcommittee released a Majority staff report detailing the
results of the Subcommittee's year-long investigation into the
collapse of MF Global Holdings Ltd. and its subsidiaries. The
Subcommittee staff conducted over fifty interviews and
considered the testimony of nineteen witnesses at three
hearings, and also examined more than 243,000 documents
produced by MF Global, the company's federal commodities and
securities regulators, and others. The Majority staff report
contained seven staff findings regarding the causes and
consequences of MF Global's failure and made staff
recommendations to remedy lapses that contributed to the
company's bankruptcy.
On December 3, 2012, Ranking Member Michael Capuano of the
Subcommittee released an addendum to the Majority staff report.
The addendum was signed by all Democratic Members of the
Subcommittee, along with Ranking Member Barney Frank of the
full Committee. While the addendum agreed with parts of the
findings and recommendations of the Majority staff report, it
also provided additional commentary on several of these
provisions.
OVERSIGHT OF THE CONSUMER FINANCIAL PROTECTION BUREAU
On February 15, 2012, the Subcommittee held a hearing
entitled ``Budget Hearing--Consumer Financial Protection
Bureau.'' The hearing examined the budget of the Consumer
Financial Protection Bureau (CFPB) for fiscal years 2011
through 2013. The Dodd-Frank Act created the CFPB and funded it
through transfers from the Federal Reserve System, outside the
Congressional appropriations process. The Federal Reserve is
required to transfer to the CFPB an amount determined by the
Director to be reasonably necessary to carry out the
authorities of the Bureau under Federal consumer law, but not
to exceed fixed percentages of the Federal Reserve System's
2009 operating expenses, including: 11 percent in fiscal year
2012, or $547.8 million; 12 percent in fiscal year 2013, or
$597.6 million; and 12 percent each fiscal year thereafter,
subject to annual adjustments for inflation. If the CFPB
determines that it needs additional funding, it may request
from Congress an additional $200 million through fiscal year
2014, subject to the appropriations process. The Subcommittee
received testimony from the sole witness: The Honorable Richard
Cordray, Director, CFPB.
OVERSIGHT OF THE OFFICE OF FINANCIAL RESEARCH
On April 19, 2012, the Subcommittee held a hearing entitled
``Budget Hearing--the Office of Financial Research.'' The
hearing examined the budget and funding of the OFR, which was
created by the Dodd-Frank Act. For two years following the
Dodd-Frank Act's enactment, the OFR is funded by the Federal
Reserve. In July 2012, the OFR will begin funding itself by
levying assessments on bank holding companies with total
consolidated assets of $50 billion or more and nonbank
financial companies supervised by the Federal Reserve. The
Subcommittee received testimony from the sole witness: Ms.
Michelle Shannon, Chief Operating Officer, OFR, U.S. Department
of the Treasury.
FDIC STRUCTURED TRANSACTION PROGRAM
On May 16, 2012, the Subcommittee held a hearing entitled
``Oversight of the Federal Deposit Insurance Corporation's
Structured Transaction Program.'' The hearing examined the use
of structured transaction sales by the FDIC in which the FDIC
partners with private-sector entities to dispose of some of the
assets that the FDIC acquires when it resolves a failed bank.
The hearing examined whether the FDIC's structured transactions
program maximizes the value of the assets sold in these
transactions and whether these sales affect the FDIC's Deposit
Insurance Fund. The Subcommittee received testimony from the
following witnesses: Mr. Bret D. Edwards, Director, Division of
Resolutions and Receiverships, FDIC; The Honorable Jon T.
Rymer, Inspector General, Office of the Inspector General,
FDIC; Mr. Stuart A. Miller, Chief Executive Officer, Lennar
Corporation; Mr. Scott Leventhal, President, Tivoli Properties,
Inc.; and Mr. Ed Fogg, Owner, Fogg Construction Inc.
IMPACT OF THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
On July 19, 2012, the Subcommittee held a hearing entitled
``Who's in Your Wallet? Dodd-Frank's Impact on Families,
Communities, and Small Businesses.'' The purpose of the hearing
was to review, at the two-year anniversary of its passage, the
impact of the Dodd-Frank Wall Street Reform and Consumer
Protection Act on small businesses, community banks, and
consumers. The Subcommittee received testimony from the
following witnesses: Mr. G. Michael Flores, CEO, Bretton Woods,
Inc.; Mr. Jim Purcell, CEO, State National Bank; Ms. Lynette W.
Smith, President and CEO, Washington Gas Light Federal Credit
Union; Mr. Jess Sharp, Executive Director, Center for Capital
Markets Competitiveness, U.S. Chamber of Commerce (on behalf of
the Coalition for Derivatives End Users); Mr. Garrick Johnson,
President, American Flooring Installers, LLC (on behalf of the
Ohio Hispanic Chamber of Commerce); Mr. David Min, Assistant
Professor of Law, University of California, Irvine School of
Law; Ms. Deyanira Del Rio, Board Chair, Lower East Side
People's Federal Credit Union; and Mr. Gregory W. Smith, Chief
Operating Officer and General Counsel, Colorado Public
Employees' Retirement Association.
Subcommittee Hearings Held
------------------------------------------------------------------------
Serial No. Title Date(s)
------------------------------------------------------------------------
112-4................. An Analysis of the Post- February 15, 2011
Conservatorship Legal
Expenses of Fannie Mae
and Freddie Mac.
112-21................ The Costs of Implementing March 30, 2011
the Dodd-Frank Act:
Budgetary and Economic.
112-26................ Oversight of the Financial April 14, 2011
Stability Oversight
Council.
112-30................ The Stanford Ponzi Scheme: May 13, 2011
Lessons for Protecting
Investors from the Next
Securities Fraud.
112-44................ Mortgage Servicing: An July 7, 2011
Examination of the Role
of Federal Regulators in
Settlement Negotiations
and the Future of
Mortgage Servicing
Standards (Joint Hearing
with Financial
Institutions).
112-48................ Oversight of the Office of July 14, 2011
Financial Research and
the Financial Stability
Oversight Council.
112-51................ Oversight of the Credit July 27, 2011
Rating Agencies Post Dodd-
Frank.
112-55................ Combating Terror Post 9/ September 6, 2011
11: Oversight of the
Office of Terrorism and
Financial Intelligence
(Field Hearing).
112-66................ Potential Conflicts of the September 22, 2011
Interest at the SEC: The
Becker Case (Joint
Hearing with Subcommittee
on TARP, Financial
Services and Bailouts of
Public and Private
Programs of the Committee
on Oversight and
Government Reform).
112-71................ Oversight of the Federal October 12, 2011
Home Loan Bank System.
112-81................ Fraud in the HUD HOME November 2, 2011
Program (Joint Hearing
with Housing).
112-88................ Oversight of the Federal December 1, 2011
Housing Finance Agency.
112-94................ The Collapse of MF Global. December 15, 2011
112-98................ The Collapse of MF Global: February 2, 2012
Part 2.
112-101............... Budget Hearing--Consumer February 15, 2012
Financial Protection
Bureau.
112-113............... The Collapse of MF Global: March 28, 2012
Part 3.
112-118............... Budget Hearing--the Office April 18, 2012
of Financial Research.
112-127............... Oversight of the Federal May 16, 2012
Deposit Insurance
Corporation's Structured
Transaction Program.
112-146............... Who's In Your Wallet? Dodd- July 19, 2012
Frank's Impact on
Families, Communities and
Small Businesses.
------------------------------------------------------------------------
OVERSIGHT PLAN FOR THE 112TH CONGRESS
Clause 2(d) of rule X of the Rules of the House of
Representatives for the 112th 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 the 30th day after June 1 and
December 1 a semiannual report on the activities of that
committee under rules X and XI during the Congress of such
year. Clause 1(d)(2)(B) 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 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 Twelfth
Congress, which the Committee considered and adopted on
February 10, 2011.
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 Committee and each of the subcommittees.
Part A
OVERSIGHT PLAN OF THE COMMITTEE ON FINANCIAL SERVICES FOR THE ONE
HUNDRED TWELFTH CONGRESS
February 10, 2011.--Approved by the Committee on Financial Services
----------
Mr. BACHUS, from the Committee on Financial Services,
submitted to the Committee on Oversight and Government Reform
and the Committee on House Administration the following
R E P O R T
Clause 2(d)(1) of rule X of the Rules of the House of
Representatives for the 112th Congress requires each standing
committee, not later than February 15 of the first session, to
adopt an oversight plan for the 112th 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 112th 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 Dodd-Frank Wall Street Reform and Consumer Protection Act
Enacted in response to the financial crisis of 2008 and the
bail-outs of large Wall Street firms at taxpayer expense, the
Dodd-Frank Act (P.L. 111-203) represents the most extensive
change in the regulation of financial institutions since the
Great Depression. The Dodd-Frank Act requires federal
regulators to undertake more than 240 rule-makings and to carry
out over 60 studies. The implementation of the Dodd-Frank Act
will affect not only every financial institution that does
business in the United States but also non-financial
institutions and consumers as well. The Dodd-Frank Act holds
out the promise that it will ``promote the financial stability
of the United States by improving accountability and
transparency in the financial system,'' ``end `too big to
fail,''' ``protect the American taxpayer by ending bailouts,''
and ``protect consumers from abusive financial services
practices.'' One of the primary tasks of the Committee in the
112th Congress will therefore be to oversee the implementation
of the Dodd-Frank Act to ensure that these objectives are being
met. The Committee will conduct careful oversight and
monitoring of the financial regulators charged with
implementing the Dodd-Frank Act to ensure that they prudently
exercise the new authority conferred upon them under the Act
without unduly hampering the ability of consumers and
businesses to obtain credit, or the ability of capital market
participants to allocate capital to productive uses, mitigate
risk, and grow the economy. In particular, the Committee will
seek to ensure that regulators carefully and transparently
assess the costs and benefits of regulations called for by the
Dodd-Frank Act in order to strike an appropriate balance
between prudent regulation and economic growth. The Committee
will assess the results of the implementation of the Dodd-Frank
Act in order to improve those parts of the Act that work well
while changing those parts that do not, and to identify and
remedy unintended consequences, such as restrictions of access
to credit by consumers and businesses, impediments to
investment and job creation, or higher costs of doing business
that will be passed on to consumers. The Committee will also
examine the international response to the Dodd-Frank Act to
determine if the law could place the United States financial
services industry at a competitive disadvantage.
Specific Dodd-Frank Oversight Matters
Financial Stability Oversight Council (FSOC). The Dodd-
Frank Act creates an interagency body--the Financial Stability
Oversight Council--charged with identifying, monitoring and
addressing potential threats to U.S. financial stability. The
Dodd-Frank Act requires the FSOC to report annually to
Congress, to be followed by testimony by the Secretary of the
Treasury in his capacity as FSOC Chairman. The Committee will
conduct significant oversight over the FSOC, monitoring among
other things the extent to which its designation of
``systemically significant'' firms may create an expectation
among market participants that the government will not permit
these firms to fail, as well as the effectiveness of the FSOC
in making financial markets more stable and resilient.
Office of Financial Research (OFR). The Dodd-Frank Act
creates a new ``Office of Financial Research'' housed within
the Department of the Treasury and grants it broad powers to
compel the production of information and data from financial
market participants. The OFR is to use this information to
conduct research designed to improve the quality of financial
regulation, and to monitor and report on systemic risk. Section
153 of the Dodd-Frank Act requires the OFR to report annually
to Congress on the state of the U.S. financial system, and
requires the Director of the OFR to testify annually before the
Committee on the OFR's activities and its assessment of
systemic risk. The Committee will conduct oversight of the OFR
to ensure that the OFR's requests for data are not unduly
burdensome or costly and that the confidentiality of the data
that it collects is strictly maintained. The Committee will
also assess whether the OFR duplicates data collection efforts
already being undertaken by other regulatory bodies.
Volcker Rule. On January 22, 2011, the Financial Stability
Oversight Council issued recommendations on the implementation
of Section 619 of the Dodd-Frank Act--the so-called Volcker
Rule--which bars bank holding companies from engaging in
proprietary trading and severely limits their ability to
sponsor and invest in hedge funds and private equity. The
Federal regulators have nine months to promulgate regulations
based upon the FSOC's recommendations. The Committee will
oversee the regulators' implementation of the Volcker Rule to
ensure that it does not result in unintended consequences for
U.S. economic competitiveness and job creation, or for the
liquidity and efficiency of U.S. capital markets.
Capital Markets
Oversight and Restructuring of the Securities and Exchange
Commission (SEC). The Committee will monitor all significant
aspects of the SEC's operations to ensure that it fulfills its
Congressional mandate. The Committee will carefully examine the
SEC's budget requests to ensure that the agency deploys its
resources effectively. 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 also consider the impact of separating the SEC's
examination and policy functions and whether such functions
should be consolidated. The Committee will review the various
reports and studies of the organizational structure and
management of the SEC mandated by the Dodd-Frank Act, including
the study being conducted by the Boston Consulting Group, to
determine whether legislative reforms are needed to address the
SEC's organizational structure and ensure that the SEC
efficiently and effectively fulfills its investor protection
mission. The Committee will also monitor steps taken by the SEC
in response to findings by the Government Accountability Office
that the SEC failed to maintain effective internal controls
over its financial reporting, due to material weaknesses
involving SEC's internal control over information systems and
its financial reporting and accounting processes.
Derivatives. The Committee will examine the operations,
growth and structure of the over-the-counter (OTC) derivatives
market. The Committee will explore how the Dodd-Frank Act
fundamentally reforms the use of OTC derivatives and how the
SEC, the Commodity Futures Trading Commission (CFTC), the
Federal Reserve, and the Department of Treasury are
implementing new rules required by the Dodd-Frank Act to govern
the OTC marketplace. The Committee will review whether the pace
and breadth of rulemaking required by the Dodd-Frank Act may
lead to unintended consequences in the area of jobs, the
economy, the proper functioning of U.S. capital markets,
international competitiveness, and appropriate risk mitigation.
The Committee will examine all facets of the derivatives
market, including clearing, exchange or swap execution facility
trading; the roles of dealers, inter-dealer brokers, data
repositories, clearinghouses, and end-users; trade and price
reporting; and ownership and governance restrictions. The
Committee will examine any requirements that federal regulators
impose on ``end-users'' who use swaps to hedge against or
mitigate risks. The Committee will examine transparency and
clarity for the derivatives markets. The Committee will closely
monitor Dodd-Frank implementation so that the new regulations
foster market efficiency, provide market participants with
important market information, and provide price transparency
through the increased use of swap execution facilities and
clearing organizations, when appropriate. The Committee will
also examine the Dodd-Frank Act's prohibition of federal
assistance to a ``swaps entity,'' which includes swap dealers
and major swap participants (and the equivalents in security-
based swaps), securities and futures exchanges, swap execution
facilities (SEFs), and clearing organizations registered with
the CFTC, the SEC, or any other federal or state agency. This
prohibition will be examined against other provisions of the
Dodd-Frank Act which allow for ``financial market utilities''
to have access to the Federal Reserve discount window in times
of crisis.
Credit Rating Agencies. The Committee will examine the
continuing role that credit rating agencies, also known as
Nationally Recognized Statistical Ratings Organizations
(NRSROs), play in the United States financial markets, the
SEC's oversight of NRSROs, how NRSROs are compensated, and
whether their methodologies accurately reflect the risks
associated with different debt instruments. The Committee will
examine the impact of the Dodd-Frank Act on competition among
current NRSROs, and on new and prospective NRSRO entrants. The
Committee will examine the effect of the repeal of Rule 436(g)
under the Securities Act of 1933, which resulted in significant
disruption in the asset-backed securities marketplace. The
Committee will examine the implementation by federal regulators
of provisions in the Dodd-Frank Act requiring them to establish
new standards for evaluating credit-worthiness that do not
include references to ratings issued by NRSROs.
Securitization and Risk Retention. The Committee will
monitor the joint risk retention rule-making pursuant to
Section 941 of the Dodd-Frank Act to ensure that the
development and implementation of the risk retention rules
promote sound underwriting practices without constricting the
flow of credit and destabilizing an already fragile housing
market, and that those rules appropriately differentiate among
multiple asset classes. The Committee will focus particular
attention on the joint rulemaking to define a class of
``qualified residential mortgages'' (QRMs) that will be exempt
from risk retention requirements. The Committee will also
comprehensively examine the asset backed securities market, the
securitization of mortgages and issues related to the
assignment and servicing of securitized mortgages.
Regulation and Oversight of Broker-Dealers and Investment
Advisers. The Committee will examine the study mandated by
Section 913 of the Dodd-Frank Act, which requires the SEC to
review the effectiveness of the legal and regulatory standards
of care applicable to broker-dealers and investment advisers
when providing personalized investment advice to retail
customers. The Committee will also examine the study mandated
by Section 914 of the Dodd-Frank Act, which requires the SEC to
report on the need for enhanced examination and enforcement
resources for investment advisers, and on whether self-
regulatory organizations or user fees should be used to augment
SEC and state oversight of investment advisers.
Advisers to Private Funds. The Committee will examine the
functions served by advisers to private funds, including hedge
funds, private equity funds, and venture capital funds in the
United States financial marketplace. 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 examine the Dodd-Frank Act's mandate that advisers to
private funds with more than $150 million in assets under
management register with the SEC under the Investment Advisers
Act of 1940.
Securities Investor Protection Corporation (SIPC). The
Committee will review the operations, initiatives, and
activities of the Securities Investor Protection Corporation,
as well as the application of the Securities Investor
Protection Act (SIPA). In light of SIPC's exposure to the
failures of Bernard L. Madoff Investment Securities and Lehman
Brothers, the Committee will examine SIPC's existing reserves,
member broker-dealer assessments, access to private and public
lines of credit, and coverage levels, as well as proposals to
improve SIPC's operations and management. The Committee will
also review the impact of the provisions of the Dodd-Frank Act
that amend the Securities Investor Protection Act, and the work
and recommendations of the SIPC Modernization Task Force.
Municipal Securities. In light of concerns over potential
defaults by state, county, city, and local governments, the
Committee will monitor the health of the United States
municipal securities markets and consider reforms to increase
transparency in that segment of the capital markets. The
Committee will also consider the apparent trend in the
municipal bond market away from the issuance of general
obligation bonds toward revenue bonds, and the implications of
that trend on the possibility of defaults. The Committee will
also consider the possible consequences of state and municipal
budget shortfalls and possible defaults on the municipal debt
markets and the U.S. financial system. The Committee will also
examine provisions of the Dodd-Frank Act designed to strengthen
the oversight of the municipal securities industry and broaden
municipal securities market protections to cover unregulated
market participants and their financial transactions with
municipal entities.
Municipal Securities Rulemaking Board (MSRB). The Committee
will review the operations, initiatives and activities of the
Municipal Securities Rulemaking Board. The Committee will
review the changes imposed by the Dodd-Frank Act, which altered
the MSRB's governance to include the protection of state and
local government issuers, public pension plans, and otherswhose
credit stands behind municipal bonds, in addition to protecting
investors and the public interest. The Committee will also
review the MSRB's regulation of municipal advisors.
Capital Formation. The Committee will survey regulatory
impediments to capital formation and seek both regulatory and
market-based incentives to increase access to capital,
particularly for those small companies contemplating an initial
public offering. The Committee will also examine the SEC's
efforts to fulfill its Congressional mandate of promoting
capital formation.
Equity/Option Market Structure. The Committee will review
recent developments in the United States equity and option
markets and the SEC's response to those developments. The
Committee will closely monitor the SEC to ensure that the
Commission follows its mandate to promote fair, orderly and
efficient markets, and that any new regulations foster market
efficiency, competition and innovation, and are based on
economic and empirical market data. The Committee will also
monitor the work of the Joint CFTC-SEC Advisory Committee on
Emerging Regulatory Issues, as it develops regulatory or
legislative recommendations that attempt to respond to the
extraordinary market movements on May 6, 2010.
Covered Bonds. The Committee will review the potential for
covered bonds to increase mortgage and broader asset class
financing, improve underwriting standards, and strengthen
United States financial institutions by providing a new funding
source with greater transparency, thereby fostering increased
liquidity in the capital markets. The Committee will also
review whether existing regulatory initiatives, including the
Department of the Treasury's ``Best Practices for Residential
Covered Bonds'' and the FDIC's covered bond policy statement to
``facilitate the prudent and incremental development of the
U.S. covered bond market'' are sufficient to foster the
creation of a covered bond market in the United States, or
whether additional regulatory or legislative initiatives are
necessary.
Corporate Governance. The Committee will review
developments and issues concerning corporate governance at
public companies. The Committee will examine how the Dodd-Frank
Act will impact the corporate governance practices of all
issuers, particularly small public companies. The Committee
will also examine the services provided by proxy advisory firms
to shareholders and issuers and will consider current SEC
proposals that seek to modernize corporate governance
practices. The Committee will continue to monitor the effect
that the Sarbanes-Oxley Act of 2002 has on the capital markets;
the impact of the permanent exemption from Section 404(b) for
public companies with less than $75 million in market
capitalization included in Dodd-Frank; and proposals to further
modify this exemption.
Employee Compensation. The Committee will monitor the
implementation of provisions in the Dodd-Frank Act governing
the compensation practices at public companies and financial
institutions. Among the issues to be examined are the
independent compensation committee requirement; the required
disclosure and compilation of data to compare the pay of the
CEO with the median pay of all employees of every public
company; the clawback of erroneously awarded employee
compensation; and the authority given to federal regulators to
prohibit incentive-based compensation structures that encourage
``inappropriate risks'' at financial institutions with more
than $1 billion in assets.
Securities Litigation. The Committee will examine the
effectiveness of the Private Securities Litigation Act of 1995
in protecting issuers from frivolous lawsuits while preserving
the ability of investors to pursue legitimate actions.
Securities Arbitration. The Committee will examine
developments in securities arbitration, including the impact of
the arbitration-related provisions contained in the Dodd-Frank
Act, specifically Section 921, which provide the SEC with the
authority to restrict mandatory pre-dispute arbitration, and
the impact that the exercise of that authority could have on
existing arbitration agreements and on issuers and investors
generally.
Securities Fraud. The Committee will review the SEC's
compliance, inspections, examinations, and enforcement
functions to ensure that adequate mechanisms exist to prevent
and detect securities fraud. The Committee will also monitor
the SEC's implementation and adherence to the reforms
recommended by the SEC's Office of Inspector General resulting
from the Commission's failure to detect either the Bernard
Madoff or Allen Stanford Ponzi schemes.
Mutual Funds. The Committee will examine the state and
operation of the U.S. mutual fund industry. This examination
will include reviewing the SEC's regulation of money market
mutual funds, and any proposed changes to the calculation of a
money market funds' ``net asset value'' (NAV). The Committee
will also review any proposals by the Financial Stability
Oversight Council to designate non-bank financial institutions
such as mutual funds as ``Systemically Important Financial
Institutions.''
Public Company Accounting Oversight Board (PCAOB). The
Committee will review the operations, initiatives and
activities of the PCAOB. The Committee will also monitor the
PCAOB's exercise of its new authority to register, inspect and
discipline the auditors of broker-dealers, and the impact that
this increased oversight may have on the PCAOB's operations.
The Committee will also review the extent to which the PCAOB's
new authority to share information with its foreign
counterparts is sufficient to permit PCAOB inspectors to
examine non-U.S. auditors. The Committee will also monitor the
PCAOB's oversight of the auditors of financial statements of
Chinese companies that register and trade their securities in
the United States.
Financial Accounting Standards Board (FASB). The Committee
will review the initiatives of the Financial Accounting
Standards Board (FASB) and its responsiveness to all segments
of the capital markets; the FASB's relationship with the SEC;
and proposals to enhance Congressional oversight of the FASB.
The Committee will monitor and review the FASB's specific
projects, including but not limited to fair value accounting
for financial instruments, particularly as it affects small
community banks; multi-employer pension plans; loss
contingencies; and lease accounting, to ensure that any
revisions provide useful information to investors without
disrupting the capital markets or improperly burdening issuers
and preparers.
Government Accounting Standards Board (GASB). The Committee
will review the role of the Government Accounting Standards
Board (GASB), which formulates accounting standards for the
voluntary use of state and local governments that issue
securities. The Committee will review the implementation of
Section 978 of the Dodd-Frank Act, which directs the SEC to
require the Financial Industry Regulatory Authority (FINRA) to
collect fees from its members (broker-dealers and other
securities professionals) and to remit such fees to the
Financial Accounting Foundation, GASB's parent organization.
Convergence of International Accounting Standards. The
Committee will review efforts by the SEC, the FASB, and the
International Accounting Standards Board to achieve robust,
uniform international accounting standards. The Committee will
also monitor the SEC's plans to incorporate those standards as
part of United States financial reporting requirements.
Business Continuity Planning. The Committee will continue
its oversight of the implementation of disaster preparedness
and business continuity measures by the financial services
industry in order to minimize the disruptions of critical
operations in the United States financial system in the event
of natural disasters, terrorist attacks, or pandemics.
Government Sponsored Enterprises
Charter Restructuring for Government Sponsored Enterprises
(GSEs). On September 7, 2008, the Federal Housing Finance
Agency (FHFA) placed Fannie Mae and Freddie Mac into
conservatorship. To date, Fannie Mae has tapped $88 billion and
Freddie Mac has used nearly $63 billion in taxpayer funds,
making the GSE conservatorship the costliest of all the
taxpayer bail-outs carried out over the past three years. The
decision to bail out Fannie Mae and Freddie Mac and place them
in conservatorship has raised fundamental questions about the
viability of their public-private organizational structure. The
Committee will examine proposals to modify or terminate Fannie
Mae's and Freddie Mac's statutory charters.
GSE Regulatory Reform. The Committee will monitor the
activities of the Federal Housing Finance Agency, which was
established in 2008 to oversee Fannie Mae, Freddie Mac and the
Federal Home Loan Banks, and will consider its effectiveness.
The Committee will also consider the appropriate role, if any,
for the Federal government in the secondary 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. The
Committee will pay particular attention to recent reports that
some of the Federal Home Loan Banks may fall below required
capital levels.
FHLB Community and Economic Development. The Committee will
review 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 the performance of the FHLBs in
implementing the community investment cash advance regulation.
Resolution Funding Corporation (REFCorp) Payments. The
Committee will monitor the efforts of the housing GSEs to pay
the obligations of REFCorp, which was 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.
Legal Fees. The Committee will examine the expenditure of
more than $160 million in federal funds to defend Fannie Mae,
Freddie Mac and their top executives in lawsuits since the GSE
conservatorship began in September 2008. The Committee will
consider ways to limit further taxpayer exposure.
GSE Contracting with Non-Profits. To ensure that the GSEs
are not engaging in risky activities that undermine the
conservatorships, the Committee will examine the relationships
that Fannie Mae and Freddie Mac maintain with non-profit
organizations that provide services, including housing
counseling, to potential homeowners. The Committee will also
examine whether the payments non-profits receive for services
provided to the GSEs are appropriate; whether GSE funds
provided to non-profits are used for political activities; and
whether adequate procedures are in place to protect the GSEs
from fraud.
GSE Foreclosure and Loan Modification Protocols. The
Committee will review Fannie Mae's and Freddie Mac's guidance
to mortgage servicers and participation in government mortgage
modification programs generally to ensure that undue political
influence does not result in even greater losses to taxpayers
from the GSE conservatorships.
Mortgage Putbacks and Repurchase Agreements. The Committee
will monitor Fannie Mae's and Freddie Mac's mortgage putback
and repurchase agreements with loan originators to ensure that
these agreements are consistent with market practice and the
FHFA's conservatorship responsibilities.
Financial Institutions and Consumer Credit
Bureau of Consumer Financial Protection (CFPB). The
Committee will oversee the establishment, operations, and
activities of the new Bureau of Consumer Financial Protection
established under title X of the Dodd-Frank Act. Under the Act,
the CFPB is to begin operations on or before July 21, 2011,
when the consumer protection functions and rule-writing
authority of other Federal financial regulators will transfer
to the new agency. The Committee will seek to ensure that the
CFPB's rules and enforcement initiatives protect consumers
against unfair and deceptive practices without stifling
economic growth, job creation, or reasonable access to credit.
The Committee will examine whether the CFPB's budget is
appropriate and will ask whether the CFPB's budget should be
subject to Congressional appropriations. The Committee will
evaluate the powers of its presidentially-appointed director to
write rules, supervise compliance, and enforce consumer
protection laws. The Committee will monitor the impact of CFPB
rules on small businesses and on financial institutions with
fewer than $10 billion of assets. The Committee will receive
the statutorily required semi-annual testimony of the Director,
once he or she is nominated and confirmed.
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 authorized by the
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 to ensure that the program adequately protects
taxpayer interests and that its operations are transparent and
accountable. The Committee will also ensure 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 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 unwinding of TARP
facilities and programs to ensure that taxpayer recoveries are
maximized and remaining funds are used for deficit reduction,
as contemplated by EESA.
``Too Big to Fail.'' 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 also
consider whether the Dodd-Frank Act and the ``orderly
resolution authority'' set forth in Title II of the Act provide
an effective mechanism for imposing market discipline and
promoting financial stability. The Committee will ask whether
government actions to prop up large, complex financial
institutions imply that other institutions are ``too small to
save,'' and if recent interventions 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.'' As part of that review, the
Committee will study the ways that financial institutions have
expanded and the incentives that drove them to grow. Attention
will be given to the conversion of investment banks to bank
holding companies during the financial crisis and their long-
term impact on the U.S. economy and regulatory structure. The
Committee will closely evaluate the government agencies and
offices which are now responsible for the supervision and
potential resolution of ``systemically significant'' financial
institutions. In examining the ``too big to fail'' issue, the
bailout of the American International Group (AIG) will be
carefully reviewed to determine whether the disparate treatment
of large creditors and small creditors was consistent with the
American expectation of equal treatment of all by government
agencies.
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 Committee may
also ask each financial regulatory agency to review its
promulgated rules and identify those which may be unnecessarily
burdensome or outdated. Additionally, the Committee's
examination of the regulatory system will encompass the trend
toward consolidation in the banking industry, which requires
Federal regulators to maintain the expertise and risk
evaluation systems necessary to oversee the activities of the
increasingly complex institutions under their supervision. As
an extension of this examination, the Committee will assess the
degree to which the increasing concentration of bank assets in
the largest institutions may contribute to a regulatory
environment that discriminates against the smaller, but much
more numerous community banks. The Committee will review the
``Interagency Statement on Meeting the Credit Needs of
Creditworthy Small Business Borrowers'' issued by the federal
financial institutions regulatory agencies and the state
supervisors on February 10, 2010, to ensure that the policy is
being appropriately implemented by examiners in the field.
Basel III. The Committee will examine new global bank
capital and liquidity rules being developed by the Basel
Committee on Banking Supervision, paying particular attention
to implementation, compliance burdens and global coordination.
Interchange Fees. The Committee will examine general issues
involving the setting of interchange fees. In particular, the
Committee will evaluate the Federal Reserve's rulemaking under
Section 1075 of the Dodd-Frank Act and its effect on merchants,
banks, credit unions, consumers, and the payment processing
networks. Section 1075 requires the Federal Reserve to
establish, by July 2011, a price cap for debit card interchange
fees, mandating that the fee be ``reasonable and proportional''
to the cost incurred by the issuing bank.
Financial Crisis Inquiry Commission (FCIC). The Financial
Crisis Inquiry Commission was created by Congress in 2009 to
``examine the causes, domestic and global, of the current
financial and economic crisis in the United States'' (P.L. 111-
21). The Commission issued its final report on January 27,
2011, accompanied by dissenting views filed by individual
Commissioners. The statute creating the FCIC requires that its
chairperson appear before the Committee to present its findings
not later than 120 days after the issuance of its final report.
Mortgage Servicing. The Committee will continue its review
of deficiencies in mortgage servicing practices, including
irregularities in the foreclosure documentation process. This
review will encompass recent reports that active-duty military
families have been overcharged on their mortgages or have faced
wrongful foreclosures. The Committee will assess whether
comprehensive national servicing standards are necessary and
appropriate, and if so, how such standards should be
implemented. To the extent the regulatory agencies seek to
implement national mortgage servicing standards, the Committee
will review those standards to ensure that proper authority
exists for such regulations and that deficient practices are
adequately addressed without unduly increasing the cost of
mortgage financing.
Small Business Lending Fund and the State Small Business
Credit Initiative. The Committee will examine the Treasury
Department's implementation of the Small Business Jobs Act of
2010, with a specific focus on the Small Business Lending Fund
(SBLF). The Committee will evaluate the program's effectiveness
at encouraging new lending to small business and protecting
taxpayers from losses on the government's injections of capital
in banks.
Deposit Insurance. The Committee will monitor the solvency
of the Deposit Insurance Fund and changes to the assessments
charged by the FDIC as mandated by the Dodd-Frank Act 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.
Bank Failures. The Committee will examine the process the
FDIC uses to supervise and, if necessary, resolve community
banks and the procedures followed by the FDIC and other bank
supervisors in making this determination. Some observers have
noted there are inconsistencies in the application of FDIC
practices as a bank moves into prompt corrective action and
towards a failure. Further, the Committee will study the costs
and benefits of loss share agreements to the deposit insurance
fund and the American taxpayer. The Committee will also study
how the FDIC's resolution procedures, including but not limited
to loss share agreements, affect access to credit for small
business customers of a failed bank. The Committee will examine
the effectiveness of FDIC guidance and its subsequent
application in the FDIC's supervision of community banks,
particularly as it relates to appraisals of real estate assets.
Credit Unions. The Committee will review issues relating to
the safety and soundness and regulatory treatment of the credit
union industry. In particular, the Committee will examine the
failures in the corporate credit union system and evaluate
possible reforms to the system and to the National Credit Union
Administration (NCUA).
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.
Credit Scores and Credit Reports. The Committee will
continue to monitor the accuracy and use of credit reports and
credit scores with a specific focus on their impact on the
availability of consumer credit.
Internet Gambling. The Committee will continue to oversee
the implementation 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, will effectively
curtail illegal Internet gambling.
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'').
Credit Card Regulation. The Committee will continue its
review of credit card industry practices, particularly those
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. The Committee will also continue to evaluate the
impact of the Credit CARD Act of 2009 (Public Law 111-24) on
credit availability to consumers and small businesses alike and
will study whether the rules have led to higher consumer costs
for other financial products.
Community Development Financial Institution Fund. The
Committee will continue to oversee the operations of the
Community Development Financial Institutions Fund (CDFI Fund)
which was created in 1994 to promote economic revitalization
and community development. The Committee will examine the CDFI
Fund's contributions to community revitalization and measure
its impact on efforts in rural, urban, suburban, and Native
American communities. The Committee will also monitor the CDFI
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). The Committee will
also explore recommendations for updating or eliminating CRA
requirements 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 consumers seeking to
address excessive levels of personal indebtedness.
Financial Literacy. The Committee will continue its efforts
to promote greater financial literacy and awareness among
investors, consumers, and the general 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.
Discrimination in Lending. The Committee will examine the
effectiveness of Federal fair lending oversight and enforcement
efforts.
Diversity in Financial Services. The Committee will
continue to explore the financial services industry's efforts
to attract and retain a diverse workforce. The Committee will
also review the policies, programs, and initiatives of the
Federal financial regulators 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 implement the diversity
requirements of the Dodd-Frank Act.
Money Laundering and the Financing of Terrorism. The
Committee will review the enforcement of anti-money laundering
and counter-terrorist financing 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 examine
emerging threats in the financing of terrorist activities and
the use of informal methods of transferring value, while
keeping in consideration the fact that these services are
lifelines for some immigrants' families overseas. 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.
Data Security and Identity Theft. Building on the
Committee's long-standing role in developing laws governing the
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 evaluate the need for legislation that better
protects the security and confidentiality of such information
from any loss, unauthorized access, or misuse. The scope of
this review will encompass the data security policies and
protocols of the Federal agencies within the Committee's
jurisdiction. The Committee will also examine the threats of
cyber crime against individuals, businesses and financial
institutions to identify best practices that can protect
against identify theft and related cyber crimes.
Money Services Businesses' Access to Banking Services. The
Committee will examine the availability of account services to
Money Services Businesses (MSBs) and assess the effectiveness
of the Financial Crimes Enforcement Network (FinCEN) and
Internal Revenue Service regulation of MSBs, and of FinCEN
regulatory guidance to both MSBs and financial institutions.
The Committee will review steps that could be taken to provide
MSBs with appropriate access to the banking system.
Appraisals. The Committee will examine reports of appraisal
fraud and the effectiveness of the Appraisal Subcommittee of
the Federal Financial Institutions Examination Council in
overseeing State-based appraisal enforcement and licensing
programs, and the need for appraisal regulatory reform. The
Committee 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.
Transaction Account Guarantee Program. Section 343 of the
Dodd-Frank Act extends the Transaction Account Guarantee
Program (originally set to expire on December 31, 2010),
pursuant to which the FDIC guarantees all funds held in
qualifying noninterest-bearing accounts at insured depository
institutions, for an additional two years. The Committee will
monitor the program to ensure that taxpayers are adequately
protected from losses.
Insurance
National Flood Insurance Program (NFIP). The Committee will
review and consider proposed reforms to the National Flood
Insurance Program, which is currently authorized through
September 30, 2011. Since 2006, the Government Accountability
Office has designated the NFIP as a high-risk program because
of its potential to incur billions of dollars in losses and
because the program faces serious financial, structural, and
managerial challenges. Due to extraordinary losses incurred
following the hurricanes in 2005, the program carries a debt of
$17.5 billion as of December 31, 2010.
Federal Insurance Office (FIO). The Committee will monitor
the establishment of the new Federal Insurance Office created
under Title V of the Dodd-Frank Act, paying particular
attention to the FIO's limited scope of authority and specific
functions. The Committee will work to ensure that the new
office is focused on developing expertise on insurance matters
and does not impose unwarranted or excessive data collection
burdens on the insurance sector or on small insurers in
particular. The Committee will also monitor implementation of
the FIO's authority to coordinate policy and represent the U.S.
on international insurance issues, as well as implementation of
new joint authority for Treasury and the U.S. Trade
Representative to negotiate international agreements on
insurance measures. The Committee will also examine
recommendations on improving U.S. insurance regulation made by
the director of the Federal Insurance Office, which must be
submitted to Congress by January of 2012.
State-Based Insurance Reforms. The Committee will monitor
the implementation of provisions included in Title V of the
Dodd-Frank Act to streamline the regulation of non-admitted
(surplus lines) insurance and reinsurance. In monitoring these
and other state-based insurance regulatory reform efforts, the
Committee will seek to assess whether they are achieving
uniform standards to enhance the efficiency and effectiveness
of state insurance and reinsurance regulation.
Impact of Dodd-Frank Act Implementation on the Insurance
Sector. The Committee will monitor implementation of various
provisions in the Dodd-Frank Act for their potential impact on
the insurance sector--including but not limited to the new
Financial Stability Oversight Council, the new Orderly
Liquidation Authority, the new Office of Financial Research,
and the new Consumer Financial Protection Bureau, as well as
new restrictions on proprietary trading and investments
(Volcker Rule), revised capital standards for bank and thrift
holding companies (the Collins Amendment), and new rules for
swaps and derivatives that affect end users--to ensure that new
regulations do not impose unwarranted or excessive burdens on
the insurance sector that might result in higher costs for
individuals or businesses that purchase insurance products and
services or result in unintended consequences for U.S. economic
competitiveness and job creation.
State Insurance Guaranty Funds. The Committee will monitor
the capacity and effectiveness of State Insurance Guaranty
Funds to enhance stability in the insurance sector and to
ensure that the financial interests of insurance policyholders
are sufficiently protected in cases where insurance companies
become insolvent.
Terrorism Risk Insurance Program. The Committee will review
the Terrorism Risk Insurance Program, which expires on December
31, 2014, for its ongoing impact on the private commercial
property insurance market and economic stability.
Housing
Housing and Urban Development, Rural Housing Service,
National Reinvestment Corporation. The Committee will review
the Department of Housing and Urban Development (HUD) budget.
The Department's budget has increased steadily in recent years,
from $31.92 billion in fiscal year 2005 to $46.998 billion in
fiscal year 2010. The Committee will also review current HUD
programs with the goal of identifying program spending cuts or
eliminating inefficient and duplicative programs. Given the
continued rise in HUD discretionary spending levels, the
Committee will review unauthorized programs to determine
whether they should continue to receive funding. The Committee
will review and hear testimony from the Administration on those
budgets under its jurisdiction. Testimony is expected from HUD,
the Rural Housing Service, and the National Reinvestment
Corporation.
HUD Inspector General Reports. The Committee has received
multiple reports from the HUD Inspector General outlining
improper implementation, poor oversight, and misuse of funds in
several of HUD's programs. The Committee will conduct a hearing
with the HUD Inspector General in an effort to better
understand the program deficiencies outlined in these reports.
Federal Housing Administration (FHA)--Single Family.
Increased delinquencies and foreclosures across the nation have
had a detrimental effect on the financial health of the FHA
program. The most recent actuarial report for fiscal year 2010,
released in November, found that the capital reserve ratio for
the Mutual Mortgage Insurance Fund (MMIF) was 0.50 percent,
well below the statutorily mandated level of 2 percent. This is
particularly troubling at a time when FHA's share of the single
family mortgage market continues to increase. The Committee
will examine the appropriate role for the FHA program in the
mortgage finance system, and the ability of the FHA to manage
its mortgage portfolio and mitigate its risk.
Federal Housing Administration (FHA)--Multi-Family. The FHA
Multi-family program offers loan guarantees to address
specialized mortgage financing needs, such as mortgage
insurance for rehabilitating, developing, and refinancing
apartment buildings, nursing home facilities, and nonprofit
hospitals. The Committee will exercise oversight of the FHA's
General Risk and Special Risk Insurance fund to ensure that
losses to the fund will not expose taxpayers to loss.
Government Foreclosure Mitigation Programs. The Committee
will review the Obama Administration's well-intentioned but
unsuccessful foreclosure mitigation initiatives, including the
Making Home Affordable Program (HAMP). The Administration
predicted that HAMP would keep some 3 to 4 million families at
risk of foreclosure in their homes. Nearly two years after the
program's inception, it has fallen far short of those goals:
last December, the Congressional Oversight Panel estimated that
HAMP would ultimately prevent only 700,000 to 800,000
foreclosures. The Administration's foreclosure mitigation
initiatives--including those administered by Fannie Mae and
Freddie Mac--have been characterized by persistently high rates
of redefault, and the hundreds of thousands of homeowners who
have failed trial modifications are often left worse off than
if they had never participated in the programs. Though the
Administration has attempted to fix its foreclosure mitigation
initiatives--making hundreds of programmatic changes over the
course of the last two years--the Committee will examine the
reasons these programs remain a failure; whether they can ever
be successful; and whether there are better ways to spend the
public's money. The Committee will also consider possible
unintended consequences of foreclosure mitigation programs,
including delays in the foreclosure process caused by strategic
defaulters who seek mortgage modifications with no intention of
complying with the modified terms; losses resulting from such
strategic defaults that are borne by neighborhoods, investors,
and taxpayers; and the impediments such strategic defaults pose
to the stabilization of home prices and housing market
recovery.
Section 8 Housing Choice Voucher Program. The Committee
will continue its effort to reform HUD's largest rental
assistance program. The Committee will review the rising costs
of the Section 8 program. Funding for the Section 8 program in
fiscal year 2009 was $16.817 billion and rose to $18.184 in
fiscal year 2010. The Committee will review changes that can be
made to the voucher program and assess the needs of the
administrators of the voucher program as well as the voucher
recipients.
Housing Counseling. Between HUD and NeighborWorks, housing
counseling programs have received $475 million since 2008. This
is a substantial commitment of Federal dollars, and many of
these counseling programs receive funding with little oversight
or accountability. Accordingly, the Committee will conduct a
comprehensive review of current housing counseling programs
within HUD and NeighborWorks. The review will encompass
Federal, State, private and non-profit efforts to use housing
counseling funds with the goal of reducing or eliminating
funding that is duplicative or ineffective.
Government National Mortgage Association (GNMA). The
Committee will conduct a comprehensive review of GNMA to
determine whether its mission and/or authority meets
contemporary housing needs that promote affordable housing. The
Committee has requested that the Government Accountability
Office review GNMA, focusing on the agency's solvency and its
capacity to handle its increased market share.
HOPE VI. The HOPE VI program provides grants to public
housing authorities (PHAs) to demolish severely distressed
public housing units and replace them with mixed-income
developments. Previous Administrations have proposed
eliminating funding for HOPE VI in their budget proposals
because of delays and inefficiencies in the program. The
Committee will review the effectiveness of HOPE VI, the reasons
for the backlog of unspent funds, and whether the program has
met its initial objectives.
Public Housing. The Committee will review HUD's public
housing programs. The spend-out rate for public housing funds
continues to be slow and inefficient, and billions of dollars
that have been committed remain unspent.
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.
Loan Originator Compensation. The Committee will examine
the implementation of proposed rules issued by the Federal
Reserve governing mortgage origination compensation, which are
scheduled to become effective April 1, 2011. The Committee is
concerned that the rules may have an adverse impact on the
ability of small businesses that originate mortgages to remain
in business. The Committee will also review the interaction of
existing real estate settlement rules with rules mandated by
the Dodd-Frank Act.
Homelessness. Currently, programs at seven different
Federal agencies address homelessness, including HUD, the
Department of Education (DOE), the Department of Veterans
Affairs (VA), the Department of Justice (DOJ), and the
Department of Health & Human Services (HHS). The Committee will
consider alternatives to this fragmented structure, including
improving coordination or consolidating Federal homelessness
programs in order to reduce costs and improve oversight and
transparency. The Committee will review the effectiveness of
HUD programs and services for homeless veterans, children,
youth, and families.
Review of the Manufactured Housing Improvement Act. In
2000, the Manufactured Housing Improvement Act was signed into
law with the goals of improving the process and standards under
which manufactured homes are built; establishing a private
sector consensus committee that would make recommendations to
the Secretary of the Department of Housing and Urban
Development (HUD) at least every two years on ways to keep the
HUD code up to date; and clarifying the scope of Federal
preemption and providing HUD with additional staff and
resources. The Committee will review the implementation of this
law to date, and consider complaints that certain aspects of
the law have not been fully or properly implemented by HUD.
International Monetary Policy and Trade
Job Creation and U.S. Competitiveness. The Committee will
examine United States international monetary and trade policies
with an eye toward ensuring that those policies support the
ability of U.S. companies to be competitive in the
international marketplace, thereby promoting domestic job
creation and economic opportunity.
China. The Committee will monitor the implications of
China's economic growth and policies on the U.S. and global
economy. As China's economy and footprint expands, the degree
to which it adopts responsible policies and practices that do
not distort global markets or unfairly disadvantage its trading
partners will be examined. Principal areas that the Committee
will assess are currency exchange rates, China's role in
multilateral bodies, and foreign access to China's domestic
market.
Export-Import Bank of the United States. The Export-Import
Bank (Ex-Im Bank) is chartered by Congress to contribute to the
employment of U.S. workers through financing exports of U.S.
manufactured goods and services. The charter under which the
Ex-Im Bank operates expires on September 30, 2011, and the
Committee will therefore consider the Bank's reauthorization.
The Ex-Im Bank has been a self-sustaining agency funded by the
income it receives through its financing programs. The
Committee will examine the Bank's policies and programs to
ensure the continued fiscal soundness of the Bank. In addition,
as part of the reauthorization process, the Committee plans to
review the effectiveness of the Bank's financing programs in
supporting the global competitiveness of U.S. companies, small
and large, particularly given the liquidity challenges American
businesses currently face. The Committee will also consider how
the Bank can better compete with foreign credit export agencies
to ensure that U.S. firms are not operating at a disadvantage
against their foreign counterparts.
International Trade. The Committee recognizes that American
jobs are supported by U.S. exports, U.S. companies operating
abroad, and foreign firms operating in the United States. The
Committee will oversee existing trade programs, and consider
policies within the Committee's jurisdiction to promote U.S.
international trade so that American companies are globally
competitive. The Committee will oversee the progress of the
National Export Initiative and other Administration proposals
to increase U.S. exports and create jobs in the United States.
The Committee will remain active in the oversight of trade
negotiations as they relate to the global competitiveness of
the American financial services sector, to ensure such
agreements improve access to foreign markets, increase trade
opportunities for American businesses, and create jobs
domestically. The Committee will consider the impacts of the
recently agreed to U.S.-South Korea Free Trade Agreement and
the pending U.S. Free Trade Agreements with Panama and Colombia
and other agreements.
Market Access. The Committee will assess opportunities to
expand market access for U.S. companies and the financial
services sector, and to promote policies that can bring about
reciprocal market access with developing nations that currently
limit or prevent U.S. firms from entering and operating within
their national borders. In particular, the Committee will
examine market access issues with regard to nations with which
the U.S. has entered into free trade agreements.
Extractive Industries and Conflict Materials. The Committee
will monitor the implementation of provisions in title XV of
the Dodd-Frank Act imposing new disclosure requirements
relating to so-called conflict minerals and extractive
industries, to ensure that the underlying objectives of the
provisions are met but that unnecessary compliance burdens for
U.S. firms are minimized.
Annual Report and Testimony by the Secretary of the
Treasury on International Monetary Fund Reform and the State of
the International Financial System. The Committee will review
and assess the annual 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 (1) progress
made in reforming the IMF; (2) the status of efforts to reform
the international financial system; (3) compliance by borrower
countries with the terms and conditions of IMF assistance; and
(4) the status of implementation of anti-money laundering and
counterterrorism financing standards by the IMF, the
multilateral development banks, and other multilateral
financial policymaking bodies. The Committee is interested in
hearing from the Secretary of the Treasury on international
exchange rate policies and practices; the U.S. trade deficit;
the implications of the accumulation of U.S. debt instruments
in the accounts of its largest trading partners; and how U.S.
international monetary policies and programs are promoting U.S.
global competitiveness and contributing to the success of
American businesses.
Conduct of the International Financial Institutions (IFIs)
and Possible U.S. Contributions. The Committee will consider
any Administration request that the U.S. contribute to the
replenishment of the concessional lending windows at the World
Bank, the African Development Bank, and the Asian Development
Bank. Concessional windows provide grants and below market-rate
financing to the world's poorest nations; because the financing
terms are discounted, the lending vehicles are not self-
sustaining and require contributions from wealthier member
nations. During consideration of any such request, the
Committee will assess the effectiveness of these lending
facilities in achieving economic development and promoting
global economic stability. In addition, the Committee will
consider the policies of the IFIs to ensure effective use of
resources and appropriate alignment with U.S. interests in
promoting economic growth and stability. Additionally, the
Administration is expected to request that the Committee
authorize funding for the U.S. share of the general capital
increase (GCI) for the World Bank (International Bank for
Reconstruction and Development), the Inter-American Development
Bank, the Asian development Bank, the African Development Bank,
the European Bank for Reconstruction and Development, and the
International Finance Corporation. In examining such
authorization requests, the Committee will consider the reforms
each institution has agreed to make, as well as the missions
and comparative strengths of each institution.
Haiti. The Committee will continue to closely monitor the
dire economic situation facing the people of Haiti and examine
appropriate policy responses to help alleviate one of the worst
cases of human misery in the hemisphere. The Committee will
also consider the impact of the Inter-American Development
Bank's capital increase proposal on Haiti over the next decade.
International Monetary Fund (IMF). The Committee will
assess the IMF's actions during and after the financial crisis
to determine how best to leverage U.S. resources through this
multilateral institution. This examination will center on the
IMF's lending policies, its surveillance programs, and its
reform efforts related to member-nation representation.
Iran Sanctions. The Committee will monitor the
implementation of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (Public Law 111-
195). Particular focus will be placed on whether financial
services-related aspects of the law have been executed in
accordance with the law's intent, and what the impact of such
policies has been.
Eurozone Distress. The Committee will monitor the economic
distress in the Eurozone, which stems from unsustainable levels
of sovereign debt in several European countries, and its impact
on the U.S. and global economy. Further deterioration in the
Eurozone's fiscal health may have implications beyond the
continent's borders. Consequently, the Committee will examine
actions taken by the IMF, the European Union and other nations
to address the sovereign debt issues in the Eurozone. The
Committee will also explore how best to protect U.S. interests
while also ensuring that taxpayer dollars are not used to bail
out foreign governments that have followed reckless fiscal
paths.
Global Capital Flows. The Committee will monitor the flow
of capital globally. The buildup of large currency reserves in
surplus nations can lead to imbalances in capital allocations
and asset bubbles that threaten global economic stability. The
Committee will assess the implications of the investment of
these reserves on global financial stability.
Domestic Monetary Policy and Technology
The Economy and Jobs. In light of efforts to stimulate the
economy through increased spending and accommodative Federal
Reserve policies, the Committee will examine the extent to
which changes in the economy, particularly those resulting from
the economic crisis, have challenged assumptions about the
relationship between monetary policy, government expenditures,
deficits, employment, and economic growth. The Committee will
examine the effectiveness and consequences of the extraordinary
and simultaneous measures undertaken by the Federal Reserve and
the executive branch on economic growth and employment. The
Committee also will examine the effects of mounting Federal
debt and annual Federal budget deficits on economic recovery
and long-term economic growth.
Conduct of Monetary Policy by the Board of Governors of the
Federal Reserve System. The Committee will thoroughly examine
the process by which the Federal Reserve sets and executes its
monetary policy goals, while respecting the independence of the
Federal Reserve's decision-making. The Committee will review
the recent history of monetary policy decisions and examine the
Federal Reserve's plan for removing excess liquidity from the
economy after recovery is firmly established to prevent
inflation. The Committee will examine the quality of economic
data the Federal Reserve uses to make its decisions, the
accuracy and utility of the Federal Reserve's econometric
models, and the effect of the Federal Reserve's legislative
mandates on its decisions. The Committee will pay particular
attention to the upcoming Government Accountability Office
audit of the Federal Reserve and seek further audits to ensure
that the Federal Reserve's monetary policy decisions are based
on the best data and models, and that it successfully executes
open market operations to reach its goals. Of particular
interest to the Committee will be the second round of
quantitative easing undertaken by the Federal Reserve. As part
of this review, 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
and the state of the economy.
General Oversight of the Federal Reserve System. The
Committee will conduct oversight of the operations of the
Federal Reserve Board of Governors and the Federal Reserve
System, including management structure, organizational changes
mandated by the Dodd-Frank Act, and the role of the Federal
Reserve in the supervision of systemically significant banks
and non-bank financial institutions. As part of this review,
the Committee will hold statutorily required semi-annual
hearings to receive testimony from the Federal Reserve's Vice
Chairman for Supervision, a position created by Section 1108 of
the Dodd-Frank Act that the Obama Administration has not yet
filled.
Defense Production Act. The Committee will continue to
monitor the effectiveness of the Defense Production Act and its
individual authorities in promoting national security.
Committee on Foreign Investment in the United States
(CFIUS). The Committee will continue to 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 seek to ensure
that CFIUS fulfills its statutory mandate to identify and
address those foreign investments that pose legitimate threats
to national security. 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 proceed.
Activities of the U.S. 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. 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, and will examine the counterfeiting
of rare or investment-grade coins, U.S.-made and otherwise. The
Committee will examine the difficulties the Bureau of Engraving
and Printing has experienced in producing the newest series of
$100 bills, as well as the difficulties the U.S. Mint has
experienced in meeting investor and collector demand for
bullion coin products. The Committee also will begin an
examination of the long-term demand for circulating coins and
banknotes, and consider appropriate measures to maintain an
adequate supply of each, while controlling costs to the
taxpayer.
The Financial Crimes Enforcement Network (FinCEN). The
Committee will examine the operations of FinCEN and its ongoing
efforts to implement its regulatory mandates pursuant to the
Bank Secrecy Act (BSA), to combat money laundering and
terrorist financing activities. The Committee will examine
means to reduce the burden on financial institutions in
complying with BSA regulations, while maintaining the utility
of the filings required by the BSA to law enforcement. The
Committee will examine the confidentiality of BSA reports and
examine the guidance issued by FinCEN to BSA examiners to
foster more uniform examination and enforcement practices.
The 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.
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 examine payment system alternatives, including
prepaid credit cards, the use of mobile devices to transfer and
store value, web-based value-transfer systems, remote check
deposit, and informal money transfer systems, businesses or
networks, to determine both the efficiencies they can provide
to customers, businesses and financial institutions, and their
susceptibility to money laundering and terrorism financing, and
other financial crimes.
Clause 2(d)(1)(F) of Rule X of the House on Proposed Cuts
Clause 2(d)(1)(F) of rule X of the Rules of the House of
Representatives for the 112th Congress requires each standing
committee to include in its oversight plan proposals to cut or
eliminate programs, including mandatory spending programs, that
are inefficient, duplicative, outdated, or more appropriately
administered by State or local governments.
The unsustainable Federal deficit caused by unchecked
spending remains the most daunting challenge facing the U.S.
economy. The deficit has created uncertainty among families,
investors, and small business owners who do not know whether
the value of saving and investment undertaken today will be
eroded through inflation and higher taxes in the years ahead
resulting from ever-increasing Federal deficits. Last month,
the Congressional Budget Office issued its ten-year ``Budget
and Economic Outlook,'' in which it estimated that the fiscal
2011 federal deficit will reach a record level of $1.48
trillion. The CBO's analysis confirms that the nation's current
fiscal path is unsustainable. Only by making the difficult
choices that are necessary to put the nation's fiscal house in
order can the 112th Congress lay the groundwork for ensuring
America's prosperity for future generations.
The following are Federal programs under the jurisdiction
of the Committee on Financial Services that will be reviewed
for possible cuts, elimination, or consolidation into other
Federal programs.
HOPE VI/Choice Neighborhoods. The Hope VI Program was
established to convert public housing developments that were
distressed or dangerous into mixed-use, more viable housing.
Both the Bush and the Obama Administrations have recommended
eliminating HOPE VI funding in their budget proposals. The
Obama Administration proposed replacing the HOPE VI program
with a new Choice Neighborhoods Initiative. However, rather
than eliminating HOPE VI and replacing the program with Choice
Neighborhoods, both were funded in the FY 2010 budget. The HOPE
VI program received $200 million in the fiscal year 2010
budget, with $60 million going to Choice Neighborhoods. Current
unobligated funds for fiscal year 2010 total $198 million. The
Committee recommends that the HOPE VI program be eliminated.
Community Development Block Grants (CDBG). The CDBG program
provides federal funds to cities and localities to help them
address housing and community development. Rather than building
communities, however, the CDBG program operates like a revenue
sharing program for the states and localities. CDBG funds are
allocated by a formula through which 70 percent of the funds
are directed to ``entitlement communities''--which are central
cities of metropolitan areas, cities with populations of 50,000
or more, and urban counties--and the remaining 30 percent is
directed to states for use in small, non-entitlement
communities. The fiscal year 2010 budget included $4.45 billion
for the program. The Committee will consider ways to scale back
the CDBG program, including but not limited to changes in the
current distribution of CDBG formula funds. In addition, the
Committee will review the eligible activities and oversight and
administration of the program with the aim of ensuring that
funds are used in an appropriate manner and with the express
purpose of reducing the cost of the program.
Brownfields Economic Development Initiative (BEDI). The
BEDI program offers grants to localities for the redevelopment
of abandoned, idled and underused industrial and commercial
facilities where expansion and redevelopment is burdened by
real or potential environmental contamination. BEDI is a
competitive grant program whose purposes are served through
much larger and more flexible Federal programs. Fiscal year
2010 funding was $18 million. The BEDI program is duplicative
of other programs administered by the Environmental Protection
Agency, and the Committee recommends that it be eliminated.
Rural Housing and Economic Development (RHED). The RHED
program provides grants to non-profits for capacity building at
the state and local level for rural housing and economic
development. This program is duplicative of other rural
development funding programs administered by the Department of
Agriculture. It was zeroed out by both the Bush and Obama
Administrations in their budgets. Fiscal year 2010 funding for
this program was $25 million. The Committee recommends that it
be eliminated.
Neighborhood Stabilization Program (NSP). Authorized under
the American Recovery and Reinvestment Act of 2009, the NSP
allocates federal financial assistance to states and local
governments with high concentrations of foreclosed homes,
subprime mortgage loans, and delinquent home mortgages. Two
rounds of NSP funding have already been provided to states and
localities, and the Dodd-Frank Act provided for a third round
of grants to local governments and states to purchase and
rehabilitate vacant and foreclosed properties. As a result,
Federal funds continue to be directed to a program whose
effectiveness has been questioned. For example, HUD Secretary
Shaun Donovan announced in May 2010 that HUD would likely
recapture and redistribute approximately $1 billion in
unobligated NSP funds. In light of current budget deficits and
the concerns raised regarding the administration and oversight
of this program, the Committee recommends that the $1 billion
in unobligated NSP funds be rescinded and that the program be
eliminated.
Sustainable Communities. In the 2010 Consolidated
Appropriations Act (Public Law 111-117), Congress provided a
total of $150 million to HUD for a Sustainable Communities
initiative. The goal of this grant program is to improve
regional planning efforts that integrate housing and
transportation decisions, and increase state, regional, and
local capacity to incorporate livability, sustainability, and
social equity values into land use plans and zoning. While the
goals of the program have merit, the nation cannot afford
another new program and the Committee believes that these
decisions are best left to state and local governments and
zoning boards. The Sustainable Communities program has yet to
be authorized, and the Committee recommends that it be
eliminated.
Public Housing Capital Fund. In fiscal year 2009, Congress
approved $2.45 billion for the Public Housing Capital Fund,
which funds large capital projects and modernization projects.
However, the spend-out rate for these funds continues to be
slow and inefficient. Billions of committed dollars remain
unexpended: in fact, HUD has only just recently awarded the $4
billion in public housing capital funds included in the 2009
Economic Stimulus. The Committee therefore recommends
rescinding unobligated capital fund balances after 36 months.
FHA Refinance Program. On March 26, the Administration
announced a new FHA Refinance Program for underwater
homeowners. Treasury indicated that the program would be funded
with $8 billion in TARP funds that had originally been set
aside for HAMP. The program was implemented on September 7,
2010, and will continue until December 31, 2012. According to a
December 13, 2010, report by the Congressional Research
Service, FHA had received only 35 applications as of the end of
October 2010. Rather than funding another ineffective
foreclosure mitigation program, the Committee recommends that
the $8 billion in TARP funds that has been set aside for this
program be returned to the taxpayer.
Making Home Affordable Programs. On February 18, 2009,
President Obama announced a three-part ``Making Home Affordable
Program'' with the stated goal of helping 9 million borrowers
at risk of foreclosure or seeking to refinance high-cost
mortgages. The plan included (1) a refinancing program for
mortgages owned by Fannie Mae or Freddie Mac (known as the Home
Affordable Refinance plan); (2) a $75 billion loan modification
program (known as the Home Affordable Modification plan); and
(3) a commitment of $200 billion to purchase Fannie and Freddie
preferred stock. Funding for the modification plan is derived
from the Troubled Asset Relief Program (TARP) and the
Government Sponsored Enterprises (GSEs), and the GSE preferred
stock purchases drew from funds authorized by the Housing and
Economic Recovery Act of 2008 (HERA). As described in more
detail earlier in this Oversight Plan, HAMP has not met the
goals set for it. HAMP's foreclosure mitigation initiatives
have failed to help a sufficient number of distressed
homeowners to justify the program's cost. Accordingly, the
Committee recommends rescinding unspent and unobligated
balances currently committed to these programs.
NeighborWorks America. NeighborWorks is a government-
chartered, nonprofit corporation with a national network of
affiliated organizations that engage in community reinvestment
activities, such as generating investment and providing
training and technical assistance related to affordable
housing. NeighborWorks has received congressional
appropriations to provide grants, training, and technical
assistance, and last year received $133 million in its base
appropriation and $65 million through the National Foreclosure
Mitigation Counseling Program. However, HUD has multiple
counseling programs, and the Dodd-Frank Act established a new
Office of Housing Counseling to coordinate housing counseling
programs. The Committee recommends that the counseling
operations under NeighborWorks be moved to HUD's new Housing
Counseling Office. Consolidating counseling programs under HUD
in the newly established office will eliminate overlapping and
duplicative functions, and allow for better oversight of funds
spent on housing counseling. Moreover, many of the tasks that
NeighborWorks currently performs are duplicative of existing
HUD programs and can be consolidated, which could eliminate the
need for the annual appropriation for NeighborWorks.
Legal Assistance. The Dodd-Frank Act authorized $35 million
for grants to organizations that offer legal assistance to low-
and moderate-income homeowners and tenants for home ownership
preservation, foreclosure prevention and tenancy-related home
foreclosures. The Committee recommends that unexpended and
unobligated amounts be reviewed.
Emergency Homeowner Relief Fund. The Dodd-Frank Act
established a $1 billion Emergency Homeowner Relief Fund, which
provides loans or credit advances to borrowers who cannot pay
their mortgages because of unemployment or reduction in income.
Administered by HUD, emergency mortgage relief payments may be
provided for up to twelve months and extended once for up to
twelve additional months. Because these loans increase the
amount of the borrower's indebtedness, the borrower is not
likely to pay back either the original amount of principal or
the additional loans made under the program. The borrower thus
derives no benefit from the program, and the government suffers
a loss from the eventual default. The Committee therefore
recommends that the unexpended and unobligated amounts be
rescinded.
Part B
IMPLEMENTATION OF THE OVERSIGHT PLAN OF THE COMMITTEE ON FINANCIAL
SERVICES FOR THE ONE HUNDRED TWELVE CONGRESS
The Dodd-Frank Wall Street Reform and Consumer Protection Act
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to oversee the
implementation of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (P.L. 111-203) (the Dodd-Frank Act) to
ensure that the promise to ``promote the financial stability of
the United States by improving accountability and transparency
in the financial system,'' ``end too big to fail,''' ``protect
the American taxpayer by ending bailouts,'' and ``protect
consumers from abusive financial services practices'' is being
upheld.
On June 16, 2011, the Committee held a hearing entitled
``Financial Regulatory Reform: The International Context.''
During this hearing, the Committee examined the international
implications of the Dodd-Frank Act for the United States
financial services industry and the United States economy.
Specifically, the Committee considered four aspects of United
States regulation that may affect the ability of United States
financial institutions to compete against their foreign
counterparts and impede economic recovery in the United States.
The regulations discussed were capital and liquidity
requirements, regulation and oversight of ``systemically
significant financial institutions,'' derivatives regulation,
and the regulation of proprietary trading.
On July 19, 2012, the Subcommittee on Oversight and
Investigations held a hearing entitled ``Who's in Your Wallet?
Dodd-Frank's Impact on Families, Communities, and Small
Businesses.'' The purpose of the hearing was to review, at the
two-year anniversary of its passage, the impact of the Dodd-
Frank Wall Street Reform and Consumer Protection Act on small
businesses, community banks, and consumers. Witnesses testified
about the effect of the Dodd-Frank Act on the cost of checking
account services and credit card transactions.
Specific Dodd-Frank Oversight Matters
Financial Stability Oversight Council (FSOC)
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to conduct
significant oversight over the FSOC, monitoring among other
things the extent to which its designation of ``systemically
significant'' firms may create an expectation among market
participants that the government will not permit these firms to
fail, as well as the effectiveness of the FSOC in making
financial markets more stable and resilient.
On April 14, 2011, the Subcommittee on Oversight and
Investigations held a hearing entitled ``Oversight of the
Financial Stability Oversight Council.'' Witnesses included
Chairman Gary Gensler of the Commodity Futures Trading
Commission (CFTC) and Treasury Under Secretary for Domestic
Finance Jeffrey A. Goldstein, as well as representatives of
other agencies serving on the panel including the National
Association of Insurance Commissioners designee to the Council,
the Federal Reserve, the Securities Exchange Commission (SEC),
the Federal Deposit Insurance Corporation (FDIC), and the
Office of the Comptroller of the Currency (OCC). The hearing
examined the performance of the Council's statutory
responsibilities, especially the mandate in Section 113 of the
Dodd-Frank Act to identify financial institutions that will be
subject to enhanced supervision by the Federal Reserve and
heightened prudential standards. During the hearing, Members
from both the majority and minority expressed concern about the
lack of transparency in the rulemaking process for Section 113
designations. Members likewise expressed disappointment that
the Administration had yet to nominate a voting Council member
having insurance expertise pursuant to Section 111, and about
the Council's reported failure to provide or clear staff to
assist the non-voting insurance representative selected by the
National Association of Insurance Commissioners.
On May 4, 2011, as a follow-up to the April 14 hearing,
Subcommittee on Oversight and Investigations Chairman Randy
Neugebauer and Ranking Member Michael Capuano sent a letter to
the member agencies of the FSOC requesting that they resubmit
the rule on the ``Authority to Require Supervision and
Regulation of Certain Nonbank Financial Companies'' for another
round of notice and comment, and include in the revised
proposal a more detailed description of the decision-making
criteria and metrics that are contemplated for the final rule.
On May 26, 2011, the Subcommittee on Financial Institutions
and Consumer Credit held a hearing entitled ``FDIC Oversight:
Examining and Evaluating the Role of the Regulator during the
Financial Crisis and Today.'' In her testimony, FDIC Chairman
Sheila Bair discussed the criteria for determining whether a
non-bank financial institution should be deemed systemically
important, and fielded questions about the impact that
designating financial institutions as systemically important
could have on consolidation in the banking industry and on
borrowing costs.
On June 22, 2011, Chairman Spencer Bachus and Subcommittee
on Oversight and Investigations Chairman Randy Neugebauer sent
a letter to Comptroller General Gene Dodaro requesting a
Government Accountability Office (GAO) audit of the FSOC,
pursuant to Section 122 of the Dodd-Frank Act. In his July 6,
2011 response, Comptroller General Dodaro stated ``the GAO
accepted the request, with clarification, as work that is
within the scope of its authority.''
On June 24, 2011, Subcommittee on Oversight and
Investigations Chairman Randy Neugebauer and Subcommittee
Ranking Member Michael Capuano sent a letter to Treasury
Secretary Timothy Geithner seeking clarification of public
statements made by members of the FSOC regarding plans to seek
public comment on additional guidance designating non-bank
financial companies for enhanced supervision and regulation by
the Board of Governors of the Federal Reserve. In the letter,
they asked the Secretary to distinguish the difference between
issuing guidance and issuing an amended rule and provide
details of the timeline for comments from the general public.
On July 14, 2011, the Subcommittee on Oversight and
Investigations held a hearing entitled ``Oversight of the
Office of Financial Research and the Financial Stability
Oversight Council.'' The hearing addressed the efforts to
organize and stand up the Office of Financial Research (OFR),
established by Section 152 of the Dodd-Frank Act; coordination
between the FSOC, OFR and other regulators; and data security
issues at OFR.
On September 8, 2011, Chairman Spencer Bachus and other
Members of the Committee sent a letter to Treasury Secretary
Timothy Geithner expressing concern about the fulfillment of
the FSOC's pledge to eliminate unnecessary or duplicative
regulatory burdens on the financial system, namely on small
community banks and credit unions. Additionally, the letter
requested a status report from the Secretary on his efforts to
``streamline and simplify'' the regulatory environment.
Secretary Geithner responded on October 5, stating that ``as
agencies move forward with implementation of the Dodd-Frank
Act, I will continue to encourage, as a top priority, inter-
agency coordination and the development of rules that strike
the right balance between financial stability and innovation.''
On October 6, 2011, the Committee held a hearing entitled
``The Annual Report of the Financial Stability Oversight
Council'' to receive the FSOC's Annual Report and the testimony
of the Secretary of the Treasury. The hearing focused on the
Council's efforts to implement regulatory reforms and identify
emerging threats to the nation's financial stability.
On July 25, 2012, the Committee held a hearing entitled
``The Annual Report of the Financial Stability Oversight
Council.'' At this hearing, the Committee received the
Secretary of the Treasury's testimony on the FSOC's 2012 Annual
Report. The hearing focused on emerging threats to the nation's
financial stability and reported attempts to manipulate the
LIBOR interest rate index. The Honorable Timothy Geithner,
Secretary of the Treasury, was the sole witness.
Office of Financial Research (OFR)
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to conduct
oversight of the OFR to ensure that the OFR's requests for data
are not unduly burdensome or costly and that the
confidentiality of the data that it collects is strictly
maintained.
On March 29, 2012, the House passed the concurrent budget
resolution on the budget for fiscal year 2013, H. Con. Res.
112, by a vote of 228 yeas and 191 nays. The budget instructed
the Committee on Financial Services to submit legislative
recommendations that reduce the deficit by $3 billion for
fiscal years 2012 and 2013, $16.7 billion for fiscal years 2012
through 2017, and $29.8 billion for fiscal years 2012 through
2022. On April 18, 2012, the Committee met in open session to
consider the Committee's legislative recommendations to the
Committee on Budget. During the markup, an amendment to repeal
Title I, Subtitle B of the Dodd-Frank Act, which created the
OFR, was offered by Representative Canseco and agreed to by
voice vote. According to the Congressional Budget Office (CBO),
repealing the OFR would achieve savings for the purposes of
deficit reduction of approximately $270 million over the next
ten years. The Committee ordered the legislative
recommendations for the budget reconciliation to be transmitted
to the Committee on the Budget by a record vote of 31 yeas and
26 nays.
On April 18, 2012, Subcommittee on Oversight and
Investigations Chairman Randy Neugebauer sent a letter to
Treasury Secretary Timothy Geithner asking why the Department
of the Treasury refused to provide Richard Berner as a witness
for the Subcommittee's hearing to examine the Office of
Financial Research's operations and budget.
On April 19, 2012, the Subcommittee on Oversight and
Investigations held a hearing entitled ``Budget Hearing--the
Office of Financial Research.'' The hearing examined the budget
and funding of OFR. For the two years following the enactment
of the Dodd-Frank Act, the OFR is funded by the Federal
Reserve. In July 2012, OFR will begin to fund itself by levying
assessments on bank holding companies with total consolidated
assets of $50 billion or more and nonbank financial companies
supervised by the Federal Reserve.
On May 9, 2012, Chairman Spencer Bachus and Subcommittee on
Oversight and Investigations Chairman Randy Neugebauer sent a
letter to Dr. Richard Berner at the Department of the Treasury
requesting information on the OFR's conference planning
policies and expenditures related to conferences held by OFR.
Volcker Rule
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to oversee the
regulators' implementation of the Volcker Rule to ensure that
it does not result in unintended consequences for U.S. economic
competitiveness and job creation, or for the liquidity and
efficiency of U.S. capital markets.
On January 22, 2011, the FSOC issued recommendations to the
agencies charged with promulgating regulations to implement the
Volcker Rule. On January 26, the Volcker Rule was the subject
of discussion at a Committee hearing entitled ``Promoting
Economic Recovery and Job Creation: The Road Forward.''
Witnesses, including academics and business owners, expressed
concerns that the Volcker Rule could compromise international
competitiveness, undermine the safety and soundness of
financial institutions and limit investment capital for
businesses, including small businesses. During the hearing
Professor Hal S. Scott of Harvard Law School stated that there
should be no Volcker Rule.
On March 15, 2011, Chairman Bachus and Oversight and
Investigations Subcommittee Chairman Neugebauer wrote the
member agencies of the FSOC requesting information about the
use and application of comments submitted to the FSOC regarding
its study prepared under Section 619 of Dodd-Frank. The letter
requested the production of materials used by the Council to
develop its approach to implementing the Volcker Rule. In
response to this request, a letter dated June 10, 2011 and
signed by Treasury Secretary Timothy Geithner referred Chairman
Bachus and Subcommittee Chairman Neugebauer to FSOC's study
mandated by the Dodd-Frank Act on Volcker Rule implementation.
On June 16, 2011, the Committee held a hearing entitled
``Financial Regulatory Reform: The International Context.''
During this hearing, the Committee examined the international
implications of the Dodd-Frank Act for the United States
financial services industry and the United States economy.
Specifically, the Committee considered four aspects of United
States regulation that may affect the ability of United States
financial institutions to compete against their foreign
counterparts and impede economic recovery in the United States.
The regulations discussed were capital and liquidity
requirements, regulation and oversight of ``systemically
significant financial institutions,'' derivatives regulation,
and the regulation of proprietary trading.
On October 19, 2011, the Committee held a joint House-
Senate briefing at which representatives from the Department of
the Treasury, the Federal Reserve, the SEC, the CFTC, the FDIC
and the OCC discussed their proposed regulation to implement
Section 619 of the Dodd-Frank Act, the Volcker Rule.
On January 18, 2012, the Subcommittee on Financial
Institutions and Consumer Credit and the Subcommittee on
Capital Markets and Government Sponsored Enterprises held a
joint hearing entitled ``Examining the Impact of the Volcker
Rule on Markets, Businesses, Investors and Job Creation.'' The
purpose of the hearing was to evaluate the regulators' efforts
to implement the Volcker Rule and the effect of the Volcker
Rule on the economy, jobs, businesses, and investors. The
Volcker Rule directs regulators to write and issue rules
prohibiting bank holding companies and their affiliates from
engaging in proprietary trading and sponsoring and investing in
hedge funds and private equity funds. The hearing examined
whether an overly restrictive Volcker Rule would increase
borrowing costs for large corporations, small businesses and
consumers. It also provided a forum for examining whether the
value of assets held by large pension funds, mutual funds, and
insurance companies--assets which represent the savings of
small investors--will decline as those assets become harder to
trade. The consequences of higher costs could be significant:
if businesses find it harder to borrow, it will be harder for
them to conduct research and development, make capital
investments, and create jobs; if consumers have less access to
credit, it will be harder to buy a home or a car or pay for
college; if the value of the assets held by savers and
investors declines, people will find it harder to save for the
down payment to purchase a home, or to save for college or
retirement.
On June 19, 2012, the Committee on Financial Services held
a hearing entitled ``Examining Bank Supervision and Risk
Management in Light of JPMorgan Chase's Trading Loss.'' The
hearing reviewed the $2 billion trading loss disclosed by
JPMorgan Chase & Co. in May 2012 and its implications for risk
management at large complex financial institutions and the
regulation of these institutions. The hearing heard testimony
from the prudential and market regulators, which have
jurisdiction over JPMorgan's holding company, national bank and
trading operations as well as its disclosures as a public
company. The hearing also examined whether JPMorgan's trades
would have been subject to Section 619 of the Dodd-Frank Act,
popularly known as the Volcker Rule, and how JPMorgan's
derivatives positions will be regulated after the SEC and CFTC
complete their rules to implement Title VII of the Dodd-Frank
Act, which governs the regulation of the over-the-counter
derivatives market.
On July 10, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled ``The
Impact of Dodd-Frank on Customers, Credit, and Job Creators.''
This hearing examined the effect that the Dodd-Frank Wall
Street Reform and Consumer Protection Act (the Dodd-Frank Act)
(P.L. 111-203) has had on U.S. capital markets, businesses,
investors, and consumers. In particular, this hearing examined
the following topics: derivatives regulation; the Volcker Rule;
risk retention; and single counter-party credit limits; and the
effect that the Dodd-Frank Act has had on the ability of U.S.
businesses to raise capital, hedge risks, and obtain credit.
On November 29, 2012, Chairman Bachus and Vice-Chairman
Hensarling wrote the federal financial regulators urging them
to be more transparent about how they intend to implement the
Volcker Rule. In the letter, Chairman Bachus and Vice-Chairman
Hensarling advised the regulators to work together to issue one
coherent version of Volcker Rule, as mandated by the Dodd-Frank
Act, rather than several competing versions. The letter also
urged the regulators to conduct a robust cost-benefit analysis
of the Volcker Rule and its potential effects on investors,
borrowers, capital markets, the financial system, and the U.S.
economy. Finally the letter suggested that Federal Reserve
Board should delay the Volcker Rule's effective date until two
years after the date on which the final rule is promulgated.
On December 13, 2012, the Committee held a hearing entitled
``Examining the Impact of the Volcker Rule on Markets,
Businesses, Investors and Job Creation, Part II.'' The hearing
reviewed the rule proposals promulgated by the prudential and
market regulators in October of 2011 and January of 2012 to
implement Section 619 of the Dodd-Frank Act, popularly known as
the Volcker Rule. In particular, this hearing examined the
effect of the rule proposals on the customers of bank holding
companies, including municipalities, mutual funds, pension
funds, asset managers, businesses, and job creators.
London Interbank Offered Rate (LIBOR)
On July 16, 2012, Chairman Bachus and Ranking Member Frank
issued a memo to the Members of the Committee on Financial
Services notifying them that the Committee would conduct a
bipartisan examination of allegations regarding manipulation of
Libor, the potential impact of such manipulation on consumers
and the financial system, and the regulatory oversight of these
matters.
On July 18, 2012 and July 25, 2012, Members had the
opportunity to question Federal Reserve Chairman Ben Bernanke
and Treasury Secretary Timothy Geithner about Libor.
The Committee hosted briefings by the Congressional
Research Service on July 17, 2012; Barclays on July 23, 2012;
and representatives of the Treasury Department, the Federal
Reserve Board, the Federal Reserve Bank of New York, the
Commodity Futures Trading Commission, the Securities and
Exchange Commission and the Office of the Comptroller of the
Currency on July 30, 2012, to educate Members and staff about
Libor and its role in the global economy, and examine the
specific circumstances of alleged Libor manipulation.
Capital Markets and Government Sponsored Enterprises
Oversight and Restructuring of the Securities and Exchange Commission
(SEC)
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to monitor and
review all aspects of the SEC's budget, operations, structure
and fulfillment of its Congressional mandate.
On March 10, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Oversight of the Securities and Exchange Commission's
Operations, Activities, Challenges and FY 2012 Budget
Request.'' The hearing provided broad oversight of the SEC,
including its FY2012 budget request, the implementation of
various provisions mandated by the Dodd-Frank Act, and a review
of SEC regulatory initiatives beyond the Dodd-Frank Act.
Chairman Spencer Bachus and Representatives Garrett,
Hensarling, and Neugebauer sent SEC Chairman Schapiro two
letters--one on February 24, 2011 and one on February 28,
2011--expressing concerns regarding the SEC's General Counsel,
David Becker, having participated in matters related to the
Bernard L. Madoff Investment Securities fraud despite having
inherited and liquidated his mother's Madoff account.
On March 15, 2011, Chairman Spencer Bachus and
Representative Randy Neugebauer sent Chairman Schapiro a letter
inquiring about the SEC's involvement in a study of the SEC's
organizational structure that was mandated by Section 967 of
the Dodd-Frank Act and was completed by the Boston Consulting
Group and submitted to Congress on March 10, 2011.
On June 23, 2011, H.R. 2308, the SEC Regulatory
Accountability Act, was introduced by Subcommittee on Capital
Markets and Government Sponsored Enterprises Chairman Scott
Garrett and referred to the Committee on Financial Services.
The Committee held a legislative hearing on H.R. 2308 on
September 15, 2011 entitled ``Fixing the Watchdog: Legislative
Proposals to Improve and Enhance the Securities and Exchange
Commission.'' The Subcommittee on Capital Markets and
Government Sponsored Enterprises met in open session on
November 15, 2011, and ordered H.R. 2308, as amended, favorably
reported to the Committee by a record vote of 14 yeas and 19
nays.
On June 24, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Oversight of the Mutual Fund Industry: Ensuring Market
Stability and Investor Confidence.'' The hearing examined the
SEC's regulation of the mutual fund industry; the SEC's
response to the financial crisis and the impact of the crisis
on money market mutual funds; proposals to change the valuation
of money market mutual funds; the SEC's proposal to improve
distribution fees, also known as ``12b-1 fees,''; the impact of
the SEC's proxy access rules adopted in 2010, which would
permit shareholders to place nominees for directors on a
company's proxy statement; and other issues of interest to
mutual fund providers.
On July 28, 2011, Vice Chairman Jeb Hensarling,
Subcommittee on Capital Markets and Government Sponsored
Enterprises Chairman Scott Garrett, and Subcommittee on
Oversight and Investigations Chairman Randy Neugebauer sent a
letter to SEC Chairman Mary Schapiro requesting information on
the SEC-staff labor hours and dollar amount associated with the
Commission's proxy access rulemaking, the final promulgation of
the rule, and the legal challenge of the rule.
On July 28, 2011, Chairman Spencer Bachus, Subcommittee on
International Monetary Policy and Trade Chairman Gary Miller,
Representative Robert Dold, and Representative Steve Stivers
sent a letter to SEC Chairman Mary Schapiro addressing the
effect on U.S. companies' competitiveness in the global
marketplace of Section 1502 of the Dodd-Frank Act, which
requires publicly traded U.S. companies to report annually on
their efforts to verify that minerals used in their products
were not taxed or controlled by rebel groups in the Democratic
Republic of Congo, and suggesting an alternative method to
mitigate the financial and administrative burden of Section
1502 on U.S. companies.
On September 22, 2011, the Subcommittee on Oversight and
Investigations held a joint hearing with the Committee on
Oversight and Government Reform's Subcommittee on TARP,
Financial Services and Bailouts of Public and Private Programs,
entitled ``Potential Conflicts of Interest at the SEC: The
Becker Case.'' The hearing examined how the SEC handled
potential conflicts of interest involving David Becker, a
former SEC general counsel who financially benefited from the
Bernard Madoff Ponzi scheme.
On December 7, 2011, Chairman Spencer Bachus, Vice Chairman
Jeb Hensarling, Subcommittee on Capital Markets and Government
Sponsored Enterprises Chairman Scott Garrett, and Subcommittee
on Financial Institutions and Consumer Credit Chairman Shelley
Moore Capito wrote to the chairmen of the Federal Reserve, the
FDIC, and the CFTC, and the Comptroller of the Currency to ask
them to testify about their joint proposal to implement the
Volcker Rule and to extend the comment period by at least
thirty days.
On January 18, 2012, the Subcommittee on Financial
Institutions and Consumer Credit and the Subcommittee on
Capital Markets and Government Sponsored Enterprises held a
joint hearing entitled ``Examining the Impact of the Volcker
Rule on Markets, Businesses, Investors and Job Creation.'' The
purpose of the hearing was to evaluate the regulators' efforts
to implement the Volcker Rule and the effect of the Volcker
Rule on the economy, jobs, businesses, and investors. The
Volcker Rule directs regulators to write and issue rules
prohibiting bank holding companies and their affiliates from
engaging in proprietary trading and sponsoring and investing in
hedge funds and private equity funds. The hearing examined
whether an overly restrictive Volcker Rule would increase
borrowing costs for large corporations, small businesses and
consumers. It also provided a forum for examining whether the
value of assets held by large pension funds, mutual funds, and
insurance companies--assets which represent the savings of
small investors--will decline as those assets become harder to
trade. The consequences of higher costs could be significant:
if businesses find it harder to borrow, it will be harder for
them to conduct research and development, make capital
investments, and create jobs; if consumers have less access to
credit, it will be harder to buy a home or a car or pay for
college; if the value of the assets held by savers and
investors declines, people will find it harder to save for the
down payment to purchase a home, or to save for college or
retirement.
On February 8, 2012, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a hearing entitled
``Limiting the Extraterritorial Impact of Title VII of the
Dodd-Frank Act.'' This hearing examined the application of
Title VII to institutions and activities outside the U.S. and
to foreign institutions that do business within the U.S.;
considered the effect of Title VII's extra-territorial
application on the competitiveness of U.S. financial
institutions and the U.S. economy; and examined the
consequences of Title VII's extra-territorial reach on the
stability and liquidity of global financial markets.
On March 21, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled ``H.R.
___, the Swap Data Repository and Clearinghouse Indemnification
Correction Act of 2012.'' The hearing examined draft
legislation to repeal the indemnification provisions in
Sections 725, 728, and 763 of the Dodd-Frank Act to increase
market transparency, facilitate global regulatory cooperation,
and ensure that U.S. regulators have access to necessary swaps
data from foreign data repositories, derivatives clearing
organizations, and regulators.
On March 28, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Accounting and Auditing Oversight: Pending Proposals and
Emerging Issues Confronting Regulators, Standard Setters and
the Economy.'' This hearing examined the state of the
accounting and auditing profession, including the activities
and agendas of the Office of the SEC's Chief Accountant, the
Public Company Accounting Oversight Board, the Financial
Accounting Standards Board, and the Governmental Accounting
Standards Board.
On April 25, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Oversight of the U.S. Securities and Exchange Commission.''
This hearing examined the following topics: the priorities for
the SEC in 2012; the SEC's FY 2013 budget request; the SEC's
ongoing efforts to comply with Section 967 of the Dodd-Frank
Act, regarding organizational reforms of the SEC; the most
recent report issued by GAO, GAO-12-424R, entitled,
``Management Report: Improvements Needed in SEC's Internal
Controls and Accounting Procedures''; pending SEC rule
proposals mandated by the Dodd-Frank Act; the SEC's plans to
propose new rules regarding money market mutual funds; and the
SEC's equity and options market structure initiatives.
On May 9, 2012, Chairman Spencer Bachus and Subcommittee on
Oversight and Investigations Chairman Randy Neugebauer sent a
letter to Chairman Mary Schapiro of the SEC requesting
information on SEC's conference planning policies and
expenditures related to conferences held by SEC.
On May 17, 2012, the Committee held a hearing entitled
``Examining the Settlement Practices of U.S. Financial
Regulators.'' The hearing examined the settlement practices of
the Board of Governors of the Federal Reserve System, the FDIC,
the OCC, and the SEC.
On May 31, 2012, the Committee staff received briefings
from representatives from the Securities and Exchange
Commission and the Financial Industry Regulatory Authority
regarding the issues surrounding Facebook's May 17, 2012
Initial Public Offering (IPO). In addition, the Committee staff
received briefings from various market participants regarding
the Facebook IPO.
On June 6, 2012, the Committee on Financial Services held a
hearing entitled ``H.R. 4624, the Investment Adviser Oversight
Act of 2012.'' The hearing reviewed the oversight of investment
advisers by the SEC and state securities regulators. The
hearing also reviewed the SEC study mandated by Section 914 of
the Dodd-Frank, which directed the SEC to study ``the need for
enhanced examination and enforcement resources for investment
advisers,'' and the three options to enhance investment adviser
oversight presented in the study to Congress for its
consideration.
On June 19, 2012, the Committee on Financial Services held
a hearing entitled ``Examining Bank Supervision and Risk
Management in Light of JPMorgan Chase's Trading Loss.'' The
hearing reviewed the $2 billion trading loss disclosed by
JPMorgan Chase & Co. in May 2012 and its implications for risk
management at large complex financial institutions and the
regulation of these institutions. The hearing heard testimony
from the prudential and market regulators, which have
jurisdiction over JPMorgan's holding company, national bank and
trading operations, as well as its disclosures as a public
company. The hearing also examined whether JPMorgan's trades
would be subject to Section 619 of the Dodd-Frank Act,
popularly known as the Volcker Rule, and how JP Morgan's
derivatives positions will be regulated after the SEC and CFTC
complete their rules to implement Title VII of the Dodd-Frank
Act, which governs the regulation of the over-the-counter
derivatives market.
On June 20, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Market Structure: Ensuring Orderly, Efficient, Innovative and
Competitive Markets for Issuers and Investors.'' This hearing
examined the quality, innovation, and competition in the U.S.
equity markets. In particular, this hearing examined the effect
that market structure has on smaller issuers and how current
U.S. equity market structure has been shaped by four
significant SEC initiatives: the Order Handling Rules,
Regulation ATS, Decimalization and Regulation NMS. The hearing
also examined draft legislation offered by Representative
Patrick McHenry entitled the ``Liquidity Enhancement for Small
Public Companies Act,'' to ensure that adequate liquidity
exists for smaller issuers by promoting the development of
market quality incentive programs by permitting issuers,
exchanges, or any other company approved by the SEC or an
exchange to provide financial incentives to market makers that
adhere to standards of market quality established by an
exchange.
On July 10, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled ``The
Impact of Dodd-Frank on Customers, Credit, and Job Creators.''
This hearing examined the effect that the Dodd-Frank Act has
had on U.S. capital markets, businesses, investors, and
consumers. In particular, this hearing examined the following
topics: derivatives regulation; the Volcker Rule; risk
retention; and single counter-party credit limits, and the
effect of the Dodd-Frank Act on the ability of U.S. businesses
to raise capital, hedge risks, and obtain credit.
On July 12, 2012, Chairman Bachus wrote to SEC Chairman
Schapiro and Financial Industry Regulatory Authority Chairman
Ketchum about NASDAQ's system failures during the Facebook
Initial Public Offering (IPO). The letter asked whether the SEC
and FINRA were adequately fulfilling their roles to maintain
fair, orderly, and efficient markets.
On July 20, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled ``The
Impact of the Dodd-Frank Act on Municipal Finance.'' This
hearing examined the effect of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (P.L. 111-203) on the
municipal securities market. Specifically, the hearing examined
Section 975 of the Dodd-Frank Act, which governs the
registration and oversight of municipal advisors and the SEC's
proposed rule to implement Section 975. The hearing also
considered H.R. 2827, legislation offered by Representative
Robert Dold, to amend and clarify the scope of Section 975 of
the Dodd-Frank Act.
On July 30, 2012, the Committee hosted briefings by the
Treasury Department, the Federal Reserve Board, the Federal
Reserve Bank of New York, the CFTC, the SEC, and the Office of
the Comptroller of the Currency to educate Members and staff
about Libor and its role in the global economy, and to examine
the allegations that Libor had been manipulated by certain
large banks.
On August 2, 2012, Chairman Bachus and Majority Whip Kevin
McCarthy wrote to SEC Chairman Schapiro about the SEC's
implementation of Title II of the JOBS Act, which made the
exemption under SEC Regulation D Rule 506 available to issuers
even if the securities are marketed through a general
solicitation or advertising as long as the purchasers are
``accredited investors.'' The letter urged the SEC to write the
rules to implement Title II of the JOBS Act so that verifying
the status of accredited investors was not unduly burdensome on
issuers or investors. Moreover, the letter urged the SEC to be
mindful of both the income and asset tests for becoming an
accredited investor and to implement Title II in a manner that
is flexible and recognizes the varying circumstances of
investors.
Derivatives
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
operations, growth and structure of the over-the-counter (OTC)
derivatives market, and the implementation of new rules
required by the Dodd-Frank Act to govern the OTC marketplace.
On February 15, 2011, the Committee held a hearing entitled
``Assessing the Regulatory, Economic and Market Implications of
the Dodd-Frank Derivatives Title.'' This hearing provided broad
oversight of Title VII of the Dodd-Frank Act from the
perspectives of both the federal regulators and market
participants. The hearing examined the implementation timeline
for the SEC and CFTC to complete the rules mandated by Title
VII, substantive questions about the proposed rulemakings, and
the impact on various market participants, including the
potential negative impact on non-financial companies that use
derivatives contracts to hedge against legitimate business
risks.
On March 16, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Legislative Proposals to Promote Job Creation, Capital
Formation, and Market Certainty.'' One of the legislative
proposals discussed during that hearing was a draft bill to
amend the definitions of ``major swap participant'' and ``major
security-based swap participant'' in the Commodity Exchange Act
and the Securities Exchange Act of 1934 (the Exchange Act),
respectively. Based on the testimony received at that hearing,
Representative Grimm introduced H.R. 1610, the Business Risk
Mitigation and Price Stabilization Act of 2011, on April 15,
2011, which would exempt derivatives end-users from having to
post margin as required under Title VII of the Dodd-Frank Act.
On April 6, 2011, Chairman Spencer Bachus, Agriculture
Committee Chairman Frank Lucas and Senators Stabenow and
Johnson wrote to the Secretary of the Treasury and the Chairmen
of the SEC, CFTC and Federal Reserve about the importance of
establishing a regulatory regime that will not create economic
disincentives for end-users to access the derivatives markets.
The letter urged the regulators to exempt end-users from margin
requirements and seek to limit other regulatory burdens that
could have the unintended effect of driving up costs for end
users. The letter also stressed the importance of national and
international regulatory coordination to avoid regulatory
arbitrage and competitive disadvantages for U.S. companies.
On April 15, 2011, Representatives Lucas, Bachus, Conaway,
and Garrett introduced H.R. 1573, which would extend the
deadline for implementing Title VII of the Dodd-Frank by 18
months, which realigns the United States with the G20 agreement
to move to reporting and central clearing by December 2012.
H.R. 1573 maintains the current timeframe for the SEC and CFTC
to issue final rules defining key terms and maintains the
current timeframe for the rules requiring record retention and
regulatory reporting for swaps. H.R. 1573 also requires the SEC
and CFTC to hold public hearings to take testimony and comment
on proposed rules before they are made final, and factor those
comments into cost-benefit analysis and the timing of effective
dates. Finally, H.R. 1573 provides the SEC and CFTC authority
to exempt certain persons from registration and/or other
regulatory requirements if they are subject to comparable
supervision by another regulatory authority, if there are
information sharing arrangements in effect between the
Commissions and that regulatory authority, and if it is in the
public interest.
On October 14, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a legislative hearing
entitled ``Legislative Proposals to Bring Certainty to the
Over-the-Counter Derivatives Market.'' The hearing examined
four legislative proposals that would amend provisions in Title
VII of the Dodd-Frank Act that could negatively affect the
United States economy.
On May 11, 2011, H.R. 1838, a bill to repeal a provision of
the Dodd-Frank Wall Street Reform and Consumer Protection Act
prohibiting any Federal bailout of swap dealers or
participants, was introduced by Representative Nan Hayworth and
referred to the Committee on Financial Services and the
Committee on Agriculture. On October 14, 2011, the Subcommittee
on Capital Markets and Government Sponsored Enterprises held a
legislative hearing on H.R. 1838 entitled ``Legislative
Proposals to Bring Certainty to the Over-the-Counter
Derivatives Market.'' On November 15, 2011, the Subcommittee on
Capital Markets and Government Sponsored Enterprises met in
open session and ordered H.R. 1838, as amended, favorably
reported to the Committee by a record vote of 21 yeas and 12
nays.
On July 19, 2011, H.R. 2586, the Swap Execution Facility
Clarification Act, was introduced by Subcommittee on Capital
Markets and Government Sponsored Enterprises Chairman Scott
Garrett and referred to the Committee on Financial Services and
the Committee on Agriculture. On October 14, 2011, the
Subcommittee on Capital Markets and Government Sponsored
Enterprises held a legislative hearing on H.R. 2586 entitled
``Legislative Proposals to Bring Certainty to the Over-the-
Counter Derivatives Market.'' On November 15, 2011, the
Subcommittee on Capital Markets and Government Sponsored
Enterprises met in open session and ordered H.R. 2586 favorably
reported to the Committee by voice vote.
On August 1, 2011, H.R. 2779, a bill to exempt inter-
affiliate swaps from certain regulatory requirements put in
place by the Dodd-Frank Wall Street Reform and Consumer
Protection Act, was introduced by Representative Steve Stivers
and referred to the Committee on Financial Services and the
Committee on Agriculture. On October 14, 2011, the Subcommittee
on Capital Markets and Government Sponsored Enterprises held a
legislative hearing on H.R. 2779 entitled ``Legislative
Proposals to Bring Certainty to the Over-the-Counter
Derivatives Market.'' On November 15, 2011, the Subcommittee on
Capital Markets and Government Sponsored Enterprises met in
open session and ordered H.R. 2779 favorably reported to the
Committee by a record vote of 23 yeas, 6 nays and 1 present.
On September 23, 2011, H.R. 3045, the Retirement Income
Protection Act of 2011, was introduced by Representative
Francisco ``Quico'' Canseco and referred to the Committee on
Financial Services, the Committee on Agriculture, and the
Committee on Education and the Workforce. The bill has one
cosponsor. On October 14, 2011, the Subcommittee on Capital
Markets and Government Sponsored Enterprises held a legislative
hearing on H.R. 3045 entitled ``Legislative Proposals to Bring
Certainty to the Over-the-Counter Derivatives Market.'' On
November 15, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises met in open session and
ordered H.R. 3045 favorably reported to the Committee by a
record vote of 19 yeas and 14 nays.
On June 7, 2011, the Committee hosted a briefing on swaps
clearing, at which industry representatives discussed
implementation of provisions in the Dodd-Frank Act, with a
focus on how or whether clearing provisions need to be phased
in; segregation and protection of cleared swaps customer
collateral; central clearinghouse ownership, governance, and
membership issues; and the New York Federal Reserve's ongoing
role on clearing issues and how it relates to the Dodd-Frank
Act's rulemaking process.
On August 2, 2011, Chairman Spencer Bachus wrote to
Treasury Secretary Timothy Geithner expressing concerns about
the extraterritorial reach and impact of Title VII of the Dodd-
Frank Act on the U.S. derivatives marketplace and the U.S.
economy.
On February 8, 2012, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a hearing entitled
``Limiting the Extraterritorial Impact of Title VII of the
Dodd-Frank Act.'' This hearing examined the application of
Title VII to institutions and activities outside the U.S. and
to foreign institutions that do business within the U.S.;
considered the effect of Title VII's extra-territorial
application on the competitiveness of U.S. financial
institutions and the U.S. economy; and examined the
consequences of Title VII's extra-territorial reach on the
stability and liquidity of global financial markets.
On March 21, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing on ``H.R. ___,
the Swap Data Repository and Clearinghouse Indemnification
Correction Act of 2012.'' This hearing examined draft
legislation to repeal the indemnification provisions in
Sections 725, 728, and 763 of the Dodd-Frank Act to increase
market transparency, facilitate global regulatory cooperation,
and ensure that U.S. regulators have access to necessary swaps
data from foreign data repositories, derivatives clearing
organizations, and regulators.
On July 10, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled ``The
Impact of Dodd-Frank on Customers, Credit, and Job Creators.''
This hearing examined the effect that the Dodd-Frank Act has
had on U.S. capital markets, businesses, investors, and
consumers. In particular, this hearing examined the following
topics: derivatives regulation; the Volcker Rule; risk
retention; single counter-party credit limits; and the effect
of the Dodd-Frank Act on the ability of U.S. businesses to
raise capital, hedge risks, and obtain credit.
On December 12, 2012, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a hearing entitled
``Challenges Facing the U.S. Capital Markets to Effectively
Implement Title VII of the Dodd-Frank Act.'' The hearing
examined the rules proposed by the CFTC and SEC to implement
Title VII of the Dodd-Frank Act. Specifically, the hearing
examined swap execution facility rules; the extraterritorial
application of rules proposed under Title VII; the CFTC and
SEC's differing plans for providing guidance about the cross-
border application of these rules; cost-benefit analyses used
by the CFTC and SEC in issuing proposed and final rules; the
experience of market participants in dealing with the CFTC and
SEC in the run up to the October 12, 2012 compliance deadline;
the CFTC's issuance of several no-action letters on October 10
and 11 and the effect of these letter and their timing on
market participants.
Credit Rating Agencies
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to examine
credit rating agencies, or ``nationally recognized statistical
rating organizations'' (NRSROs), in the United States financial
markets and specifically, the impact of the Dodd-Frank Act on
NRSROs and the repeal if Rule 436(g) under the Securities Act
of 1933.
On April 14, 2011, H.R. 1539, the Asset-Backed Market
Stabilization Act of 2011, was introduced by Representative
Steve Stivers. The bill would repeal section 939G of the Dodd-
Frank Act, which repealed the SEC rule 436(g). On March 16,
2011, the Subcommittee on Capital Markets and Government
Sponsored Enterprises held a legislative hearing on the draft
version of H.R. 1539 entitled ``Legislative Proposals to
Promote Job Creation, Capital Formation, and Market
Certainty.'' On May 3, 2011 and May 4, 2011, the Subcommittee
on Capital Markets and Government Sponsored Enterprises met in
open session and ordered the bill favorably reported to the
Committee by a record vote of 18 yeas and 14 nays. On July 20,
2011, the Committee met in open session and ordered the bill
favorably reported to the House by 31 yeas and 19 nays. The
Committee Report was filed on August 12, 2011 (H. Rept. 112-
196).
On July 27, 2011, the Subcommittee on Oversight and
Investigations held a hearing entitled ``Oversight of the
Credit Rating Agencies Post Dodd-Frank.'' The hearing examined
how federal regulation and operations of the credit rating
agencies have changed since the financial crisis and following
enactment of the Dodd-Frank Act. The hearing reviewed the
progress of federal agencies in striking references to ratings
agencies in their regulations and addressed investor over-
reliance on the ratings opinions of the three leading ratings
agencies, Standard & Poor's, Moody's Investor Service and Fitch
Ratings.
On April 30, 2012, Chairman Spencer Bachus and Subcommittee
on Capital Markets and Government Sponsored Enterprises
Subcommittee Chairman Scott Garrett wrote to the prudential
regulators about their proposed rule to implement Section 939A
of the Dodd-Frank Act, which requires the removal of references
to credit ratings in federal law.
Securitization and Risk Retention
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review
regulatory implementation of Section 941 of the Dodd-Frank Act,
establishing new risk retention standards for securitizations
of mortgages and other assets.
On April 14, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Understanding the Implications and Consequences of the
Proposed Rule on Risk Retention.'' The hearing focused on the
proposed rule to implement Section 941 issued by the Department
of Housing and Urban Development (HUD), the FDIC, the Federal
Reserve Board, the SEC, the Federal Housing Finance Agency
(FHFA), and the OCC in March 2011, particularly its
implications for the availability of affordable mortgage
credit.
In addition, on February 10, 2011, Chairman Spencer Bachus
sent a letter to the six Federal agencies charged with
promulgating the risk retention rules for residential mortgage-
backed securities, asking that ``qualified residential
mortgages'' (QRMs) exempt from the risk retention requirements
be defined with sufficient flexibility so as to reduce reliance
upon the Federal Housing Administration's (FHA's) mortgage
insurance program, thereby limiting taxpayer exposure.
On August 2, 2011, Chairman Spencer Bachus and Subcommittee
on Capital Markets and Government Sponsored Enterprises
Chairman Scott Garrett wrote to the Secretary of HUD, the
Chairman of the Federal Reserve, the Acting Director of the
FHFA, the Acting Chairman of the FDIC, the Chairman of the SEC,
and the Acting Comptroller of the Currency expressing concern
about a provision issued by their agencies requiring
securitizers to set aside the premium from sales of securities
in ``premium capture cash reserves,'' and prevent securitizers
from collecting a profit until up to ten years later when the
security matures.
On September 7, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a field hearing in
New York, New York entitled ``Facilitating Continued Investor
Demand in the U.S. Mortgage Market Without a Government
Guarantee.'' This hearing examined the conditions necessary to
facilitate investor demand for private-label residential
mortgage backed securities. In particular, the hearing focused
on proposals to (1) provide greater transparency about
residential mortgage-backed securities; (2) facilitate
standardization; and (3) provide greater certainty that the
terms of residential mortgage-backed securities will be
enforced. In addition, the witnesses discussed the need for
clarification regarding the risk retention rules, as well as
their views on whether increased transparency and
representations and warranties could serve as a viable
alternative to risk retention.
On November 3, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a legislative hearing
entitled ``H.R. ___, the Private Mortgage Market Investment
Act.'' This hearing examined the Private Mortgage Market Act
(PMMI), which would establish uniform standards that would lay
the foundation for a new securitization market that would
replace the secondary-mortgage market now dominated by the GSEs
Fannie Mae and Freddie Mac. The PMMI also strikes Section 941
of the Dodd-Frank Act based on the belief that the goals of
risk retention--better underwriting and fewer loans made to
borrowers who cannot afford them--can be better achieved
through standardized underwriting requirements and clarity and
consistency about issuer representations and warranties. During
this hearing, the witnesses expressed their views about how to
fix the private-label securitization market and their opinions
of the PMMI, including whether the PMMI provides a viable
alternative to risk retention through standardization,
transparency, and representations and warranties.
On December 7, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a hearing entitled,
``H.R. ___, the Private Mortgage Market Investment Act, Part
2.'' The hearing examined draft legislation seeking to
establish uniform standards to lay the foundation for a new
securitization market to replace the secondary-mortgage market
dominated by the GSEs Fannie Mae and Freddie Mac.
On March 26, 2012, Chairman Spencer Bachus and Subcommittee
on Capital Markets and Government Sponsored Enterprises
Subcommittee Chairman Scott Garrett wrote to the prudential and
market regulators and HUD about the risk retention proposal
issued pursuant to Section 941 of the Dodd-Frank Act, which
contained a requirement that securitizers set aside the profits
from sales of securities in ``premium capture cash reserve
accounts.''
On May 7, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a field hearing in
Chicago, Illinois entitled ``An Examination of the Federal
Housing Finance Agency's Real Estate Owned (REO) Pilot
Program.'' The hearing examined the pilot program recently
announced by the FHFA to dispose of REO properties.
On June 7, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Investor Protection: The Need to Protect Investors from the
Government.'' The hearing examined actions taken by the Obama
Administration that have favored particular groups at the
expense of U.S. investors. These actions include the mortgage
servicing settlement, the U.S. government's intervention on
behalf of Argentina against the holders of Argentine bonds, and
the Chrysler bankruptcy and the treatment of secured creditors.
On July 10, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled ``The
Impact of Dodd-Frank on Customers, Credit, and Job Creators.''
This hearing examined the effect that the Dodd-Frank Act has
had on U.S. capital markets, businesses, investors, and
consumers. In particular, this hearing examined the following
topics: derivatives regulation; the Volcker Rule; risk
retention; single counter-party credit limits; and the effect
of the Dodd-Frank Act on the ability of U.S. businesses to
raise capital, hedge risks, and obtain credit.
Regulation and Oversight of Broker-Dealers and Investment Advisers
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
study mandated by Sections 913 and 914 of the Dodd-Frank Act,
relating to the duties of care owed to investors by broker-
dealers and investment advisers.
Section 913 of the Dodd-Frank Act requires the SEC to
evaluate existing standards for personalized investment advice
to retail investors and to promulgate regulations based upon
the findings of the study. The SEC released the study mandated
by Section 913 on January 21, 2011. On March 15, 2011, Chairman
Bachus, Education and the Workforce Committee Chairman Kline,
and Agriculture Committee Chairman Frank Lucas sent a letter to
Secretary of Labor Hilda Solis, SEC Chairman Mary Schapiro, and
CFTC Chairman Gary Gensler, expressing concern that
uncoordinated rulemaking on the fiduciary duty owed by
investment professionals could lead to market confusion and
economic disruption.
On March 17, 2011, the Republican Members of the
Subcommittee on Capital Markets and Government Sponsored
Enterprises sent a letter to SEC Chairman Schapiro regarding
the SEC staff study on the regulatory regime for broker-dealers
and investment advisers conducted pursuant to Section 913 of
the Dodd-Frank Act. The letter requested that the SEC gather
stronger analytical and empirical information, including an
assessment of the impact throughout the entire financial
marketplace and consideration of related oversight, examination
and enforcement programs, before moving forward with the
rulemaking mandated by Section 913.
On August 2, 2011, Chairman Spencer Bachus sent a letter to
SEC Chairman Mary Schapiro regarding the SEC's rulemaking
authority under Section 913 of the Dodd-Frank Act and urged SEC
to consider the appropriateness and necessity of adjusting the
standard of care for broker-dealers prior to performing an
analysis of the harm to retail customers of a broker-dealer.
On September 13, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a legislative hearing
entitled ``Ensuring Appropriate Regulatory Oversight of Broker-
Dealers and Legislative Proposals to Improve Investment
Oversight.'' Section 913 of the Dodd-Frank Act required the SEC
to report to the Committee on the standards of care applicable
to broker-dealers and investment advisers when providing
personalized investment advice to customers, and the SEC
presented the findings of its report at this hearing. The
hearing also examined a legislative proposal by Chairman
Spencer Bachus entitled the ``Investment Adviser Oversight Act
of 2011,'' which adopts an alternative outlined by the SEC in a
study required by Section 914 of the Dodd-Frank Act, and would
amend the Investment Advisers Act of 1940 to provide for the
creation of national investment adviser associations (NIAAs)
registered with and overseen by the SEC.
On November 18, 2011, the Committee hosted a briefing for
staff on the MF Global bankruptcy and liquidation proceedings.
Representatives of the CME Group provided an overview of how
broker-dealers and futures commission merchants (FCMs)
segregate customer assets; the role of self-regulatory
organizations in ensuring that their members do not impose
systemic risk on a clearinghouse; the purpose of a
clearinghouse guaranty fund; the role of the CME Group in the
bankruptcy of an FCM; the transfer of customer accounts from a
failed FCM; and the interaction and coordination of Federal
regulatory agencies and the self-regulatory organizations.
On June 6, 2012, the Committee on Financial Services held a
hearing entitled ``H.R. 4624, the Investment Adviser Oversight
Act of 2012.'' The hearing reviewed the oversight of investment
advisers by the SEC and state securities regulators. The
hearing also reviewed the SEC study mandated by Section 914 of
the Dodd-Frank, which directed the SEC to study ``the need for
enhanced examination and enforcement resources for investment
advisers,'' and the three options to enhance investment adviser
oversight presented in the study to Congress for its
consideration. The hearing examined legislation, H.R. 4624,
which adopted the second option set out in the Section 914
study--authorizing one or more SROs for registered investment
advisers, funded by membership fees, to supplement the SEC's
oversight of investment advisers. The bill amends the Advisers
Act to provide for the creation of national investment adviser
associations (NIAAs), registered with and overseen by the SEC.
Investment advisers that conduct business with retail customers
would be required to join a registered NIAA.
Advisers to Private Funds
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
functions served by advisers to private funds, including hedge
funds, private equity funds, and venture capital funds, in the
United States financial marketplace.
On March 15, 2011, H.R. 1082, the Small Business Capital
Access and Job Preservation Act, was introduced by
Representative Robert Hurt. The bill would exempt advisers to
private equity funds from SEC registration requirements as
mandated by Title IV of the Dodd-Frank Act. On March 16, 2011,
the Subcommittee on Capital Markets and Government Sponsored
Enterprises held a legislative hearing on H.R. 1082 entitled
``Legislative Proposals to Promote Job Creation, Capital
Formation, and Market Certainty.'' On May 3, 2011 and May 4,
2011, the Subcommittee on Capital Markets and Government
Sponsored Enterprises met in open session and ordered the bill
favorably reported to the Committee by a record vote of 19 yeas
and 13 nays. On June 22, 2011, the Committee met in open
session and ordered the bill, as amended, favorably reported to
the House by voice vote. The Committee Report was filed on July
12, 2011 (H. Rept. 112-143).
Securities Investor Protection Corporation (SIPC)
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
operations, initiatives, and activities of the SIPC, as well as
the application of the Securities Investor Protection Act
(SIPA), examine the SIPC's existing reserves, member broker-
dealer assessments, access to private and public lines of
credit, and coverage levels, proposals to improve SIPC's
operations and management and review the impact of the
provisions of the Dodd-Frank Act that amend the SIPA, and the
work and recommendations of the SIPC Modernization Task Force.
On March 7, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled ``The
Securities Investor Protection Corporation: Past, Present, and
Future.'' The hearing examined SIPC's role in reimbursing the
customers of failed broker-dealers and the recommendations of
the SIPC Modernization Task Force to amend SIPA and modernize
SIPC's operations. The hearing also examined three legislative
proposals to amend SIPA: H.R. 757, the Equitable Treatment of
Investors Act; H.R. 1987, the Ponzi Scheme Investor Protection
Act of 2011; and H.R. 4002, the Improving SIPC Act of 2012.
Municipal Securities
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
U.S. municipal securities markets and consider reforms to
increase transparency in that segment of the capital markets.
On February 23, 2011, Chairman Spencer Bachus sent a letter
to SEC Chairman Schapiro about the SEC's proposed rule to
implement Section 975 of the Dodd-Frank Act governing the
oversight of municipal advisers.
On July 20, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled ``The
Impact of the Dodd-Frank Act on Municipal Finance.'' This
hearing examined the effect of the Dodd-Frank Act on the
municipal securities market. Specifically, the hearing examined
Section 975 of the Dodd-Frank Act, which governs the
registration and oversight of municipal advisors and the SEC's
proposed rule to implement Section 975. The hearing also
considered legislation offered by Representative Robert Dold,
H.R. 2827, to amend and clarify the scope of Section 975 of the
Dodd-Frank Act.
Municipal Securities Rulemaking Board (MSRB)
The Oversight Plan for the Committee on Financial Services
calls upon the Committee for the 112th Congress to review the
operations, initiatives and activities of the Municipal
Securities Rulemaking Board, including the MSRB's regulation of
municipal advisors.
On July 20, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled ``The
Impact of the Dodd-Frank Act on Municipal Finance.'' This
hearing examined the effect of the Dodd-Frank Act on the
municipal securities market. Specifically, the hearing examined
Section 975 of the Dodd-Frank Act, which governs the
registration and oversight of municipal advisors and the SEC's
proposed rule to implement Section 975. The hearing also
considered legislation offered by Representative Robert Dold,
H.R. 2827, to amend and clarify the scope of Section 975 of the
Dodd-Frank Act.
Capital Formation
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review
regulatory impediments to capital formation and consider both
regulatory and market-based incentives to increase access to
capital.
On March 16, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Legislative Proposals to Promote Job Creation, Capital
Formation, and Market Certainty.'' One of the legislative
proposals discussed during that hearing was H.R. 1070, the
Small Company Capital Formation Act of 2011, which was
introduced by Representative Schweikert on March 14, 2011. H.R.
1070 would increase the offering threshold for companies
exempted from registration under SEC Regulation A from $5
million to $50 million. The bill also requires the SEC to re-
examine the threshold every two years and report to Congress on
decisions regarding the adjustment of the threshold. On May 3,
2011 and May 4, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises met in open session and
ordered the bill, as amended, favorably reported to the
Committee by voice vote. On June 22, 2011, the Committee met in
open session and ordered the bill, as amended, favorably
reported to the House by voice vote. The Committee Report was
filed on September 14, 2011 (H. Rept. 112-206). On November 2,
2011, the House agreed to a motion to suspend the rules and
pass H.R. 1070, as amended, by a record vote of 421 yeas and 1
nay.
On September 21, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a legislative hearing
entitled ``Legislative Proposals to Facilitate Small Business
Capital Formation and Job Creation,'' to examine legislative
proposals to encourage capital formation and job creation.
Specifically, the proposals were to amend the Securities Act of
1933, the Exchange Act and the Sarbanes-Oxley Act of 2002.
On June 14, 2011, H.R. 2167, the Private Company
Flexibility and Growth Act, was introduced by Representative
David Schweikert. The bill would raise the threshold for
mandatory registration under the Exchange Act from 500
shareholders to 1,000 shareholders for all companies;
shareholders who received securities under employee
compensation plans would not count towards the threshold. On
September 21, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a legislative hearing on
H.R. 2167 entitled ``Legislative Proposals to Facilitate Small
Business Capital Formation and Job Creation.'' On October 5,
2011, the Subcommittee on Capital Markets and Government
Sponsored Enterprises met in open session and ordered H.R.
2167, as amended, favorably reported to the Committee by voice
vote. On October 26, 2011, the Committee met in open session
and ordered H.R. 2167, as amended, favorably reported to the
House by voice vote.
On September 14, 2011, H.R. 2930, the Entrepreneur Access
to Capital Act, was introduced by Representative Patrick
McHenry. The bill would create an exemption from SEC
registration for ``crowdfunding'' for offerings up to $1
million so long as the individual's investment is no more than
the lesser of $10,000 or 10% of the investor's annual income,
and offerings up to $2 million if the issuer provides audited
financial statements. On September 21, 2011, the Subcommittee
on Capital Markets and Government Sponsored Enterprises held a
legislative hearing on H.R. 2930 entitled ``Legislative
Proposals to Facilitate Small Business Capital Formation and
Job Creation.'' On October 5, 2011, the Subcommittee on Capital
Markets and Government Sponsored Enterprises met in open
session and ordered H.R. 2930 favorably reported to the
Committee by a record vote of 18 yeas and 14 nays. On October
26, 2011, the Committee met in open session and ordered the
bill, as amended, favorably reported to the House by voice
vote. The Committee Report was filed on October 31, 2011 (H.
Rept. 112-262). On November 3, 2011, the House considered H.R.
2930 and passed the bill, as amended, by a record vote of 407
yeas and 17 nays.
On September 15, 2011, H.R. 2940, the Access to Capital for
Job Creators Act, was introduced by Representative Kevin
McCarthy. The bill would make the exemption under Regulation D
Rule 506 available to companies even if their securities are
marketed through a general solicitation or advertising so long
as purchasers are ``accredited investors.'' On September 21,
2011, the Subcommittee on Capital Markets and Government
Sponsored Enterprises held a legislative hearing on H.R. 2940
entitled ``Legislative Proposals to Facilitate Small Business
Capital Formation and Job Creation.'' On October 5, 2011, the
Subcommittee on Capital Markets and Government Sponsored
Enterprises met in open session and ordered H.R. 2940, as
amended, favorably reported to the Committee by voice vote. On
October 26, 2011, the Committee met in open session and ordered
the bill, as amended, favorably reported to the House by voice
vote. The Committee Report was filed on October 31, 2011 (H.
Rept. 112-263). On November 3, 2011, the House considered H.R.
2940 and passed the bill by a record vote of 413 yeas and 11
nays.
On May 24, 2011, H.R. 1965, a bill to amend the securities
laws to establish certain thresholds for shareholder
registration, and for other purposes, was introduced by
Representative James Himes. The bill would raise the threshold
for mandatory registration under the Exchange Act from 500
shareholders to 2,000 shareholders for banks or bank holding
companies, and modify the threshold for deregistration under
Sections 12(g) and 15(d) of the Exchange Act for a bank or a
bank holding company from 300 to 1,200 shareholders. On
September 21, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a legislative hearing on
H.R. 1965 entitled ``Legislative Proposals to Facilitate Small
Business Capital Formation and Job Creation.'' On October 5,
2011, the Subcommittee on Capital Markets and Government
Sponsored Enterprises met in open session and ordered the bill,
as amended, favorably reported to the Committee by voice vote.
On October 26, 2011, the Committee met in open session and
ordered the bill, as amended, favorably reported to the House
by voice vote. On November 2, 2011, the House agreed to a
motion to suspend the rules and pass H.R. 1965, as amended, by
a record vote of 420 yeas and 2 nays.
On October 14, 2011, H.R. 3213, the Small Company Job
Growth and Regulatory Relief Act of 2011, was introduced by
Representative Stephen Fincher. The bill would expand the
exemption from Section 404(b) of the Sarbanes-Oxley Act, and
increase the market capitalization threshold for a full 404(b)
exemption from $75 million to $350 million. On September 21,
2011, the Subcommittee on Capital Markets and Government
Sponsored Enterprises held a legislative hearing on the
discussion draft of H.R. 3213 entitled ``Legislative Proposals
to Facilitate Small Business Capital Formation and Job
Creation.'' On October 5, 2011, the Subcommittee on Capital
Markets and Government Sponsored Enterprises met in open
session and ordered the draft version of H.R. 3213, as amended,
favorably reported to the Committee by a record vote of 18 yeas
and 14 nays.
On December 15, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a hearing entitled
``H.R. 3606, the Reopening American Capital Markets to Emerging
Growth Companies Act of 2011.'' The hearing examined
legislative and other proposals to revitalize the initial
public offering marketplace in the United States and focused on
H.R. 3606, which would establish a new class of issuers known
as ``Emerging Growth Companies.''
On June 20, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Market Structure: Ensuring Orderly, Efficient, Innovative and
Competitive Markets for Issuers and Investors.'' This hearing
examined the quality, innovation, and competition in the U.S.
equity markets. In particular, this hearing examined the effect
that market structure has on smaller issuers and how current
U.S. equity market structure has been shaped by four
significant SEC initiatives: the Order Handling Rules,
Regulation ATS, Decimalization and Regulation NMS. The hearing
also examined draft legislation offered by Representative
Patrick McHenry entitled the ``Liquidity Enhancement for Small
Public Companies Act,'' to ensure that adequate liquidity
exists for smaller issuers by promoting the development of
market quality incentive programs by permitting issuers,
exchanges, or any other company approved by the SEC or an
exchange to provide financial incentives to market makers that
adhere to standards of market quality established by an
exchange.
On July 12, 2012, Chairman Bachus wrote to SEC Chairman
Schapiro and Financial Industry Regulatory Authority (FINRA)
Chairman Ketchum about NASDAQ's failures during the Facebook
Initial Public Offering (IPO). The letter questioned whether
the SEC and FINRA were adequately fulfilling their roles to
maintain fair, orderly, and efficient markets.
On August 2, 2012, Chairman Bachus and Majority Whip Kevin
McCarthy wrote to SEC Chairman Schapiro about the SEC's
implementation of Title II of the JOBS Act, which made the
exemption under SEC Regulation D Rule 506 available to issuers
even if the securities are marketed through a general
solicitation or advertising so long as the purchasers are
``accredited investors.'' The letter urged the SEC to write the
rules to implement Title II of the JOBS Act so that verifying
accredited investor status would not be unduly burdensome on
issuers or investors. Moreover, the letter urged the SEC to be
mindful of both the income and asset tests for becoming an
accredited investor and to implement Title II in a manner that
is flexible and recognizes the varying circumstances of
investors.
Equity/Option Market Structure
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to ensure that
the SEC follows its mandate to promote fair, orderly and
efficient markets, and that any new regulations foster market
efficiency, competition and innovation, and are based on
economic and empirical market data. The Committee is also
called upon to monitor the work of the Joint CFTC-SEC Advisory
Committee on Emerging Regulatory Issues, as it develops
regulatory or legislative recommendations that attempt to
respond to the extraordinary market movements on May 6, 2010.
On August 1, 2011, the Committee hosted a briefing on
``Options Fundamentals.'' Mr. Alan Grigoletto, the Director of
OIC Education for the Options Clearing Corporation, provided an
introduction to the basic concepts of exchange traded and
centrally cleared options contracts. The terminology and
mechanics for call and put options were explained in
conjunction with the risk characteristics and rewards for both
the buyer and seller of these instruments.
On May 31, 2012, the Committee staff received briefings
from representatives from the SEC and the Financial Industry
Regulatory Authority about the problems with Facebook's May 17,
2012 Initial Public Offering (IPO). In addition, the Committee
staff received briefings from various market participants
regarding the Facebook IPO.
On June 12, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises hosted two briefings in
preparation for the June 20, 2012 hearing on equity market
structure. The first briefing was conducted by Mr. Larry
Leibowitz, Executive Vice President and Chief Operating
Officer, NYSE Euronext, and Mr. Eric Noll, Executive Vice
President of Transaction Services, NASDAQ OMX. On June 15,
2012, the second briefing was conducted by representatives from
Knight Capital and Credit Suisse.
On June 20, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Market Structure: Ensuring Orderly, Efficient, Innovative and
Competitive Markets for Issuers and Investors.'' This hearing
examined the quality, innovation, and competition in the U.S.
equity markets. In particular, this hearing examined the effect
that market structure has on smaller issuers and how current
U.S. equity market structure has been shaped by four
significant SEC initiatives: the Order Handling Rules,
Regulation ATS, Decimalization and Regulation NMS. The hearing
also examined draft legislation offered by Representative
Patrick McHenry entitled the ``Liquidity Enhancement for Small
Public Companies Act,'' to ensure that adequate liquidity
exists for smaller issuers by promoting the development of
market quality incentive programs by permitting issuers,
exchanges, or any other company approved by the SEC or an
exchange to provide financial incentives to market makers that
adhere to standards of market quality established by an
exchange.
On July 12, 2012, Chairman Bachus wrote to SEC Chairman
Schapiro and Financial Industry Regulatory Authority (FINRA)
Chairman Ketchum about NSADAQ's system failures during the
Facebook Initial Public Offering (IPO). The letter questioned
whether the SEC and FINRA were adequately fulfilling their
roles to maintain fair, orderly, and efficient markets.
Covered Bonds
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review
whether the existing statutory and regulatory framework is
sufficient to foster the creation of a covered bond market in
the U.S. or whether additional regulatory or legislative
initiatives are necessary.
On March 11, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Legislative Proposals to Create a Covered Bond Market in the
United States.'' The hearing focused on H.R. 940, the United
States covered Bonds Act of 2011, which was introduced by
Representative Garrett on March 8, 2011. The hearing also
examined perspectives on how the United States could enact
legislation to provide a legal framework to allow covered bonds
to be issued in the United States.
Corporate Governance
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review
developments and issues relating to corporate governance at
public companies.
On May 11, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Legislative Proposals to Address the Negative Consequences of
the Dodd-Frank Whistleblower Provisions.'' The hearing focused
on a legislative proposal by Representative Michael Grimm that
would amend the whistleblower provisions of the Dodd-Frank Act,
in particular Section 922, by preserving the viability of
internal reporting regimes established by the Sarbanes-Oxley
Act of 2002 and preventing employees who are responsible for
wrongful acts from receiving an award from the bounty program
established by Section 922. On July 7, 2011, H.R. 2483, the
Whistleblower Improvement Act of 2011, was introduced by
Representative Michael Grimm and referred to the Committee on
Financial Services.
On December 15, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a hearing entitled
``H.R. 3606, the Reopening American Capital Markets to Emerging
Growth Companies Act of 2011.'' The hearing examined
legislative and other proposals to revitalize the initial
public offering marketplace in the United States and focused on
H.R. 3606, which would establish a new class of issuers known
as ``Emerging Growth Companies.''
On June 19, 2012, the Committee on Financial Services held
a hearing entitled ``Examining Bank Supervision and Risk
Management in Light of JPMorgan Chase's Trading Loss.'' The
hearing reviewed the $2 billion trading loss disclosed by
JPMorgan Chase & Co. in May 2012 and its implications for risk
management at large complex financial institutions and the
regulation of these institutions. The hearing received
testimony from the prudential and market regulators, which have
jurisdiction over JPMorgan's holding company, national bank and
trading operations as well as its disclosures as a public
company. The hearing also examined whether JPMorgan's trades
would be subject to Section 619 of the Dodd-Frank Act,
popularly known as the Volcker Rule, and JPMorgan's derivatives
positions will be regulated after the SEC and CFTC complete
their rules to implement Title VII of the Dodd-Frank Act, which
governs the regulation of the over-the-counter derivatives
market.
On July 26, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled ``The
10th Anniversary of the Sarbanes-Oxley Act.'' The hearing
examined the cumulative impact that the Sarbanes-Oxley Act of
2002 has had. The hearing also examined H.R. 6161, the
``Fostering Innovation Act,'' that will allow more small
companies to receive regulatory relief and incentivize them to
access the public markets. Representative Michael Fitzpatrick
introduced the bill on July 19, 2012. H.R. 6161 requires that
the SEC amend its definitions so that companies that either
have a public float of less than $250 million or have between
$250 million and $700 million in public float but less than
$100 million in annual revenue are deemed ``non-accelerated
filers'' and thus eligible for regulatory relief.
Employee Compensation
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
implementation of the provisions of the Dodd-Frank Act
governing compensation practices at public companies and
financial institutions.
On March 14, 2011, H.R. 1062, the Burdensome Data
Collection Relief Act, was introduced by Representative Nan
Hayworth. H.R. 1062 would repeal Section 953(b) of the Dodd-
Frank Act, which requires publicly traded companies to disclose
the median of the annual total compensation of all employees of
the company (other than the CEO), the annual total compensation
of the CEO, and a ratio comparing those two numbers. On March
16, 2011, the Subcommittee on Capital Markets and Government
Sponsored Enterprises held a legislative hearing on the draft
version of H.R. 1062 entitled ``Legislative Proposals to
Promote Job Creation, Capital Formation, and Market
Certainty.'' On May 3, 2011 and May 4, 2011, the Subcommittee
on Capital Markets and Government Sponsored Enterprises met in
open session and ordered the bill favorably reported to the
Committee by a record vote of 20 yeas and 12 nays. On June 22,
2011, the Committee met in open session and ordered the bill
favorably reported to the House by a record vote of 33 yeas and
21 nays. The Committee Report was filed on July 12, 2011 (H.
Rept. 112-142).
On June 19, 2012, the Committee on Financial Services held
a hearing entitled ``Examining Bank Supervision and Risk
Management in Light of JPMorgan Chase's Trading Loss.'' The
hearing reviewed the $2 billion trading loss disclosed by
JPMorgan Chase & Co. in May 2012 and its implications for risk
management at large complex financial institutions and the
regulation of these institutions. The Committee received
testimony from the prudential and market regulators, which have
jurisdiction over JPMorgan's holding company, national bank and
trading operations as well as its disclosures as a public
company. The hearing also examined whether JPMorgan's trades
would be subject to Section 619 of the Dodd-Frank Act,
popularly known as the Volcker Rule, and how JPMorgan's
derivatives positions will be regulated after the SEC and CFTC
complete their rules to implement Title VII of the Dodd-Frank
Act, which governs the regulation of the over-the-counter
derivatives market.
Securities Fraud
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
SEC's compliance, inspections, examinations, and enforcement
functions to ensure that adequate mechanisms exist to prevent
and detect securities fraud.
On May 13, 2011, the Subcommittee on Oversight and
Investigations held a hearing entitled ``The Stanford Ponzi
Scheme: Lessons for Protecting Investors from the Next
Securities Fraud.'' This hearing reviewed the failure of the
SEC and the Financial Industry Regulatory Authority (FINRA) to
uncover the Stanford Ponzi scheme. The hearing also focused on
what steps the SEC and FINRA could take to prevent similar
securities frauds in the future.
On December 2, 2011, Subcommittee on Oversight and
Investigations Subcommittee Chairman Randy Neugebauer sent a
letter to SEC Chairman Mary Schapiro requesting SEC-records
related to its oversight of MF Global and its coordination with
other regulators and with self-regulatory organizations.
On December 6, 2011, the Committee held a legislative
hearing entitled ``H.R. 1148, the Stop Trading on Congressional
Knowledge Act.'' The hearing examined the law of insider
trading, the SEC's ability to file civil charges against
Members of Congress and Congressional staff and employees
alleging insider trading violations, and the need for
legislation to clarify the duty of care to applicable Members
of Congress and their staff under the federal securities laws.
On May 17, 2012, the Committee held a hearing entitled
``Examining the Settlement Practices of U.S. Financial
Regulators.'' The hearing examined the settlement practices of
the Board of Governors of the Federal Reserve System, the FDIC,
the OCC, and the SEC.
Mutual Funds
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to examine the
state and operation of the U.S. mutual fund industry, and to
review the SEC's regulation of money market mutual funds, and
any proposed changes to the calculation of a money market
fund's ``net asset value'' (NAV), and any proposals by the FSOC
to designate non-bank financial institutions such as mutual
funds as ``Systemically Important Financial Institutions.''
On June 24, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Oversight of the Mutual Fund Industry: Ensuring Market
Stability and Investor Confidence.'' This was the first
Financial Services Committee hearing on the mutual fund
industry since May 2005. The hearing addressed current issues
in mutual fund industry regulation, including distribution
fees, or Rule ``12b-1 fees,'' on which the SEC voted to propose
measures to improve regulation in July 2010. The hearing also
examined the proxy access rules that the SEC adopted in 2010
that would permit shareholders to place nominees for directors
on a company's proxy statement. The Subcommittee reviewed the
impact on the mutual fund industry of Section 113 of the Dodd-
Frank Act, which directs the FSOC to select nonbank financial
companies for heightened supervision, and Section 918, which
requires the GAO to conduct a study on mutual fund advertising.
On August 12, 2011 Chairman Spencer Bachus, Subcommittee on
Capital Markets and Government Sponsored Enterprises Chairman
Scott Garrett and other Republican Members of the Committee
wrote to SEC Chairman Mary Schapiro requesting more information
on the Commission's plans to potentially require money market
mutual funds to float its net asset value; and the impact of
the SEC's rules adopted in 2010 to strengthen the resiliency of
money market mutual funds.
On April 17, 2012, Chairman Spencer Bachus and Vice
Chairman Jeb Hensarling wrote to the SEC about its plans to
propose new rules governing the operations of money market
funds.
On July 10, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled ``The
Impact of Dodd-Frank on Customers, Credit, and Job Creators.''
This hearing examined the effect that the Dodd-Frank Act has
had on U.S. capital markets, businesses, investors, and
consumers. In particular, this hearing examined the following
topics: derivatives regulation; the Volcker Rule; risk
retention; single counter-party credit limits; and the effect
that the Dodd-Frank Act has had on the ability of U.S.
businesses to raise capital, hedge risks, and obtain credit.
Public Company Accounting Oversight Board (PCAOB)
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
PCAOB's exercise of its new authority under Section 982 of the
Dodd-Frank Act to register, inspect and discipline the auditors
of brokers-dealers, and the impact that this increased
oversight may have on the PCAOB's operations.
On May 27, 2011, Chairman Bachus and Subcommittee on
Capital Markets and Government Sponsored Enterprises Chairman
Garrett sent a letter to PCAOB Chairman James Doty regarding
the PCAOB's proposed interim rule to implement Section 982,
particularly as it relates to the costs and benefits of
applying that rule to the auditors of introducing broker-
dealers.
On March 28, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Accounting and Auditing Oversight: Pending Proposals and
Emerging Issues Confronting Regulators, Standard Setters and
the Economy.'' This hearing examined the state of the
accounting and auditing profession, including the activities
and agendas of the Office of the SEC's Chief Accountant, the
PCAOB, the Financial Accounting Standards Board (FASB), and the
Governmental Accounting Standards Board (GASB).
Financial Accounting Standards Board (FASB)
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
initiatives of the FASB and its responsiveness to all segments
of the capital markets; the FASB's relationship with the SEC;
and proposals to enhance Congressional oversight of the FASB.
On March 28, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Accounting and Auditing Oversight: Pending Proposals and
Emerging Issues Confronting Regulators, Standard Setters and
the Economy.'' This hearing examined the state of the
accounting and auditing profession, including the activities
and agendas of the Office of the SEC's Chief Accountant, the
PCAOB, the FASB, and the GASB.
Government Accounting Standards Board (GASB)
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
role of the GASB and the implementation of Section 978 of the
Dodd-Frank Act, which directs the SEC to require the FINRA to
collect fees from its members (broker-dealers and other
securities professionals) and to remit such fees to the
Financial Accounting Foundation, GASB's parent organization.
On March 28, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Accounting and Auditing Oversight: Pending Proposals and
Emerging Issues Confronting Regulators, Standard Setters and
the Economy.'' This hearing examined the state of the
accounting and auditing profession, including the activities
and agendas of the Office of the SEC's Chief Accountant, the
PCAOB, the FASB, and the GASB.
Convergence of International Accounting Standards
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
efforts by the SEC, the FASB, and the International Accounting
Standards Board to achieve robust, uniform international
accounting standards. The Committee will also monitor the SEC's
plans to incorporate those standards as part of United States
financial reporting requirements.
On March 28, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Accounting and Auditing Oversight: Pending Proposals and
Emerging Issues Confronting Regulators, Standard Setters and
the Economy.'' This hearing examined the state of the
accounting and auditing profession, including the activities
and agendas of the Office of the SEC's Chief Accountant, the
PCAOB, the FASB, and the GASB.
Business Continuity Planning
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
implementation of disaster preparedness and business continuity
measures by the financial services industry in order to
minimize the disruptions of critical operations in the U.S.
financial system in the event of natural disasters, terrorist
attacks, or pandemics.
On February 8, 2011, Chairman Bachus and Representative
Garrett sent a letter to federal regulators and executives at
exchanges and clearinghouses seeking information about
computer-network security in response to reports that the
NASDAQ Stock Market's computer network had been compromised.
The purpose of the letter was to ensure that the regulators and
exchanges and clearinghouses were doing all in their power to
ensure the ongoing integrity and security of exchange trading
systems and clearinghouses. In addition to the SEC and CFTC,
the letter was sent to executives from BATS Global Markets, the
Chicago Board Options Exchange, the CME Group, the Depository
Trust & Clearing Corporation, Direct Edge, the International
Securities Exchange, IntercontinentalExchange, the NASDAQ Stock
Market, NYSE Euronext, and the Options Clearing Corporation.
On June 1, 2012, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a hearing entitled
``Cyber Threats to Capital Markets and Corporate Accounts.''
The hearing examined the importance of cyber security in
protecting U.S. capital markets and corporate accounts from
cyber attacks and service disruptions and reviewed private-
public initiatives to promote the resilience of financial
markets in the event of a cyber attack.
Government Sponsored Enterprises
Charter Restructuring for GSEs
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to examine
proposals to modify or terminate Fannie Mae's and Freddie Mac's
statutory charters.
On July 7, 2011, H.R. 2436, the Fannie Mae and Freddie Mac
Taxpayer Payback Act of 2011, was introduced by Representative
Donald Manzullo. The bill would prohibit any reduction in the
dividend rate paid to the Secretary of the Treasury on the
senior preferred stock of Fannie Mae and Freddie Mac. On May
25, 2011, the Subcommittee on Capital Markets and Government
Sponsored Enterprises held a legislative hearing on the
discussion draft of H.R. 2436 entitled ``Transparency,
Transition and Taxpayer Protection: More Steps to End the GSE
Bailout.'' On July 12, 2011, the Subcommittee on Capital
Markets and Government Sponsored Enterprises met in open
session and ordered H.R. 2436 favorably reported to the
Committee by voice vote.
On July 7, 2011, H.R. 2439, the Removing GSEs Charters
During Receivership Act of 2011, was introduced by
Representative Steve Stivers. The bill would authorize the FHFA
to revoke the charters of Fannie Mae and Freddie Mac, and
require the FHFA to revoke the charter when a successor,
limited-life entity is dissolved. On May 25, 2011, the
Subcommittee on Capital Markets and Government Sponsored
Enterprises held a legislative hearing on the discussion draft
of H.R. 2439 entitled ``Transparency, Transition and Taxpayer
Protection: More Steps to End the GSE Bailout.'' On July 12,
2011, the Subcommittee on Capital Markets and Government
Sponsored Enterprises met in open session and ordered H.R.
2439, as amended, favorably reported to the Committee by voice
vote.
On July 8, 2011, H.R. 2462, the Cap the GSE Bailout Act of
2011, was introduced by Representative Michael Fitzpatrick. The
bill would limit outlays to Fannie Mae or Freddie Mac to the
larger of (a) net amounts Fannie and Freddie have received from
2010 to 2012 or (b) $200 billion. On May 25, 2011, the
Subcommittee on Capital Markets and Government Sponsored
Enterprises held a legislative hearing on the discussion draft
of H.R. 2462 entitled ``Transparency, Transition and Taxpayer
Protection: More Steps to End the GSE Bailout.'' On July 12,
2011, the Subcommittee on Capital Markets and Government
Sponsored Enterprises met in open session and ordered H.R.
2462, as amended, favorably reported to the Committee by voice
vote.
GSE Regulatory Reform
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to monitor the
activities of the FHFA and consider the appropriate role, if
any, for the Federal government in the secondary mortgage
market.
From January through May 2011, the Committee held two
hearings to examine government sponsored enterprise (GSE)
reform proposals; the Subcommittee on Capital Markets and
Government Sponsored Enterprises held three hearings, two of
which focused on 15 different bills and legislative ideas; and
the Subcommittee held one markup. On April 5, 2011, the
Subcommittee overwhelmingly passed with bipartisan support
eight legislative measures designed to scale back the role
played by the GSEs in the U.S. mortgage market and limit
further taxpayer exposure.
On January 26, 2011, the Committee held a hearing titled
``Promoting Economic Recovery and Job Creation: The Road
Forward.'' The hearing broadly examined the health of the
United States economy, impediments to job growth and ways to
address the nation's budget challenges. John Taylor of Stanford
University also argued during the hearing that GSE reform is
necessary.
On February 9, 2011, the Subcommittee on Capital Markets
and Government Sponsored Enterprises held a hearing titled
``GSE Reform: Immediate Steps to protect Taxpayers and End the
Bailout.'' Four scholars offered suggestions for reforms,
debated the merits of government guarantees, and examined ways
to transition Fannie Mae and Freddie Mac from a Federal
conservatorship.
On March 1, 2011, the Committee held a hearing titled
``Mortgage Finance Reform: An Examination of the Obama
Administration's Report to Congress,'' at which Treasury
Secretary Timothy Geithner presented the Obama Administration's
options for GSE reform. Section 1074 of the Dodd-Frank Act
required the Treasury Department to ``conduct a study of and
develop recommendations regarding the options for ending the
[GSE] conservatorship.'' The Treasury Department and the
Department of HUD submitted a 31-page white paper on February
11, 2011, titled ``Reforming America's Housing Finance Market:
A Report to Congress.'' Secretary Geithner listed a series of
short-term steps that the Administration intends to take that
it believes will help attract private capital into the mortgage
market and reduce the ``unfair capital advantages that Fannie
Mae and Freddie Mac previously enjoyed,'' and he outlined three
options for long-term change. He did not endorse any of the
options.
Option One would place the mortgage market in the hands of
the private sector and limit the government's insurance role to
narrowly-targeted groups of borrowers through the FHA, the
United States Department of Agriculture (USDA) and the
Department of Veterans' Affairs. The middleman role currently
played by Fannie and Freddie would disappear. Option Two would
also create a more private market, narrowly targeting
government assistance in programs for low- and moderate-income
borrowers. Under this proposal, the government would also
develop a backstop mechanism to ensure access to credit during
a housing crisis. Option Three envisions a system based on an
explicit guarantee of catastrophic risks. Under this proposal,
a group of private mortgage guarantor companies would provide
guarantees for mortgage-backed securities that meet certain
underwriting standards. A government reinsurer would then
provide reinsurance to the holders of these securities, which
would be paid out only if shareholders of the private mortgage
guarantors have been entirely wiped out. The government would
price and issue the catastrophic guarantee, collect a premium
for the guarantee, and administer the program.
On March 31, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a legislative hearing
titled ``Legislative Hearing on Immediate Steps to Protect
Taxpayers from the Ongoing Bailout of Fannie Mae and Freddie
Mac.'' The two-panel hearing focused on eight bills designed to
scale back the role played by the GSEs in the U.S. mortgage
market and limit further taxpayer exposure. The bills would (1)
expand the reporting requirements and enhance the authority of
the FHFA's Inspector General; (2) suspend the current
compensation packages for all wage grade employees at Fannie
Mae and Freddie Mac and establish a compensation system for the
executive officers that is consistent with that of the
Executive Schedule and the Senior Executive Service of the
Federal Government and for all other employees that is in
accordance with the General Schedule; (3) mandate that the FHFA
gradually require higher guarantee fees at Fannie Mae and
Freddie Mac over the next two years while requiring the FHFA to
consider the conditions of the financial market in raising the
GSEs' guarantee fees to ensure that its actions do not disrupt
a housing recovery; (4) prohibit the GSEs from offering,
undertaking, transacting, conducting or engaging in any new
business activities while in conservatorship or receivership;
(5) require the Treasury Department to approve any new debt
issuances by the GSEs; (6) eliminate any advantages that the
new Qualified Residential Mortgage definition might confer on
the GSEs; (7) repeal the GSEs' affordable housing goals; and
(8) accelerate and formalize the reductions in the size of the
GSEs' portfolios, by setting annual limits on the maximum size
of each GSE's retained portfolio, ratcheting the limits down
over five years until they reach $250 billion.
On May 25, 2011, the Subcommittee on Capital Markets and
Government Sponsored Enterprises held a legislative hearing
titled ``Transparency, Transition and Taxpayer Protection: More
Steps to End the GSE Bailout'' to consider seven additional GSE
reform proposals. This two-panel hearing focused on seven
legislative proposals primarily designed to scale back the role
played by the GSEs in the U.S. mortgage market and limit
further taxpayer exposure. Mr. Edward DeMarco, Acting Director
of the FHFA, testified, as did noted GSE analysts and housing
reform advocates.
On July 7, 2011, H.R. 2440, the Market Transparency and
Taxpayer Protection Act of 2011, was introduced by
Representative Robert Hurt. The bill would direct Fannie Mae
and Freddie Mac to report to the FHFA on the assets they own
within 180 days of the bill's enactment, which would
incrementally reduce the government's role in the secondary
mortgage market. On May 25, 2011, the Subcommittee on Capital
Markets and Government Sponsored Enterprises held a legislative
hearing on the discussion draft of H.R. 2440 entitled
``Transparency, Transition and Taxpayer Protection: More Steps
to End the GSE Bailout.'' On July 12, 2011, the Subcommittee on
Capital Markets and Government Sponsored Enterprises met in
open session and ordered H.R. 2440, as amended, favorably
reported to the Committee by voice vote.
On June 29, 2011, Chairman Spencer Bachus, Subcommittee on
Oversight and Investigations Chairman Randy Neugebauer, Vice
Chairman Jeb Hensarling, Subcommittee on Insurance, Housing and
Community Opportunity Chairman Judy Biggert, Subcommittee on
Financial Institutions and Consumer Credit Chairman Shelley
Moore Capito, and Subcommittee on Capital Markets and
Government Sponsored Enterprises Chairman Scott Garrett sent a
letter to Treasury Secretary Timothy Geithner and Acting
Director of the FHFA Edward DeMarco to express concern
regarding Fannie Mae's and Freddie Mac's potential expansion
into new products and new lines of business, as a provision of
the Small Business Jobs Act of 2010 seemingly provides an
opportunity for the GSEs to contract with the Department of
Treasury to administer a new bond program. The letter raises
concerns that any such GSE action would directly contradict the
goals of the GSEs' conservatorship.
On October 13, 2011, Subcommittee on Oversight and
Investigations Chairman Randy Neugebauer sent a letter to
Acting Director of the FHFA Edward DeMarco expressing concerns
that expenditures that Freddie Mac and Fannie Mae made in
connection with an industry conference hosted by the Mortgage
Bankers Association may have had no relation to furthering the
purposes of their conservatorships.
On October 21, 2011, Subcommittee on Oversight and
Investigations Chairman Randy Neugebauer sent a letter to
Acting Director of the FHFA Edward DeMarco expressing concern
that Fannie Mae and Freddie Mac could incur substantial costs
in connection with implementing the Obama Administration's Home
Affordable Refinance Program (HARP).
On November 2, 2011, Subcommittee on Oversight and
Investigations Chairman Randy Neugebauer sent a letter to
Acting Director of the FHFA Edward DeMarco requesting
information on Fannie Mae's yearly operating expenses and
questioning whether those expenses furthered the purpose of
conservatorship.
On November 7, 2011, Chairman Spencer Bachus, Vice Chairman
Jeb Hensarling, Subcommittee on Insurance, Housing and
Community Opportunity Chairman Judy Biggert, Subcommittee on
Financial Institutions and Consumer Credit Chairman Shelley
Moore Capito, Subcommittee on Capital Markets and Government
Sponsored Enterprises Chairman Scott Garrett, Subcommittee on
Oversight and Investigations Chairman Randy Neugebauer, and
Subcommittee on Domestic Monetary Policy and Trade Chairman Ron
Paul sent a letter to the Honorable Hal Rogers, the Honorable
C. W. Bill Young, the Honorable Jack Kingston, the Honorable
Robert Aderholt, the Honorable John Abney Culberson, the
Honorable Steven C. LaTourette, the Honorable Jerry Lewis, the
Honorable Frank R. Wolf, the Honorable Tom Latham, the
Honorable JoAnn Emerson, and the Honorable John R. Carter,
conferees appointed to the conference committee for H.R. 2112,
the Consolidated and Further Continuing Appropriations Act in
opposition to conference report language to increase the loan
limits for mortgages insured by the federal government through
the FHA or guaranteed by the GSEs, Fannie Mae and Freddie Mac.
On November 18, 2011, Subcommittee on Oversight and
Investigations Chairman Randy Neugebauer sent a letter to
Acting Director of the FHFA Edward DeMarco requesting
information on Freddie Mac's yearly operating expenses and
questioning whether those expenses furthered the purpose of
conservatorship.
On November 18, 2011, Subcommittee on Oversight and
Investigations Chairman Randy Neugebauer sent a letter to
Acting Director of the FHFA Edward DeMarco regarding the GSEs'
core activities, strategic planning, decision making, staffing,
loan level data and guarantee fees, and on FHFA operations
generally.
On May 1, 2012, Chairman Spencer Bachus, Subcommittee on
Oversight and Investigations Chairman Randy Neugebauer, Vice
Chairman Jeb Hensarling, Subcommittee on Insurance, Housing,
and Community Opportunity Chairman Judy Biggert, Subcommittee
on Financial Institutions and Consumer Credit Chairman Shelley
Moore Capito, Subcommittee on Capital Markets and Government
Sponsored Enterprise Chairman Scott Garrett, Subcommittee on
International Monetary Policy and Trade Chairman Gary Miller,
and Subcommittee on Domestic Monetary Policy and Technology
Chairman Ron Paul sent a letter to the Acting Director of the
FHFA, Edward DeMarco, questioning whether FHFA can, and should,
authorize Freddie Mac and Fannie Mae to forgive a portion of
the outstanding principal on mortgages that qualify for relief
through the Home Affordable Modification Program.
Federal Home Loan Bank (FHLB) System
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to 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.
On March 1, 2011, during a Committee hearing titled
``Mortgage Finance Reform: An Examination of the Obama
Administration's Report to Congress,'' Treasury Secretary
Timothy Geithner discussed ways to strengthen the FHLB System,
including enhancing regulatory oversight and limiting FHLB
portfolios to reduce systemic risks.
On July 7, 2011, Chairman Spencer Bachus sent a letter to
Acting Director of the FHFA Edward DeMarco regarding the
Advance Notice of Proposed Rulemaking (ANPR) issued on December
27, 2010, that could substantially limit membership in the FHLB
system, affecting existing members and many potential
applicants. Given that the ANPR could fundamentally change how
financial institutions do business, Chairman Spencer Bachus
urged that the Acting Director use caution in moving forward
with the proposal.
On October 12, 2011, the Subcommittee on Oversight and
Investigations held a hearing entitled ``Oversight of the
Federal Home Loan Bank System.'' The purpose of the hearing was
to examine the financial health and stability of the Federal
Home Loan Bank System, as well as the Federal Home Loan Bank
System's ability to fulfill its housing mission and provide
liquidity to the cooperative's member banks in a safe and sound
manner. The hearing particularly considered the extent to which
the Home Loan Banks' policies with respect to investments and
the making of advances--especially in light of the recent
financial crises--effectively further their mission.
Legal Fees
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to examine the
expenditure of federal funds to defend Fannie Mae and Freddie
Mac and their top executives in lawsuits since 2008 and
consider ways to limit further taxpayer exposure.
On February 15, 2011, the Subcommittee on Oversight and
Investigations held a hearing entitled ``An Analysis of the
Post-Conservatorship Legal Expenses of Fannie Mae and Freddie
Mac.'' Witnesses at the hearing included the Acting FHFA
Director, Edward DeMarco, and the current CEO of Fannie Mae. In
both his oral and written testimony, Acting Director DeMarco
stated that FHFA had determined that cancelling the
indemnification contracts of the GSEs' senior executives would
have been subject to legal challenge and made it more difficult
to attract skilled professionals to work at the companies. Both
majority and minority members challenged this position.
On July 6, 2011, H.R. 2428, the GSE Legal Fee Reduction Act
of 2011, was introduced by Subcommittee on Oversight and
Investigations Chairman Randy Neugebauer. The bill would limit
the indemnification of former GSE executives and set standards
for advancing indemnification payments. The Subcommittee on
Capital Markets and Government Sponsored Enterprises held a
legislative hearing on the discussion draft of H.R. 2440 on May
25, 2011 entitled ``Transparency, Transition and Taxpayer
Protection: More Steps to End the GSE Bailout.''
On December 20, 2011, Subcommittee on Oversight and
Investigations Chairman Randy Neugebauer, Subcommittee on
Insurance, Housing, and Community Opportunity Chairman Judy
Biggert, Subcommittee on Financial Institutions and Consumer
Credit Chairman Shelley Moore Capito, and Representative Edward
Royce, sent a letter to the Acting Director of the FHFA, Edward
DeMarco, expressing concern about costs incurred by Freddie Mac
and Fannie Mae arising from the legal expenses of certain
former employees, and asking that the FHFA take steps to limit
the costs of such expenses.
GSE Foreclosures and Loan Modification Protocols
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review
Fannie Mae's and Freddie Mac's guidance to mortgage servicers
and participations in government mortgage modification programs
generally to ensure that undue political influence does not
result in even greater losses to taxpayers from the GSE
conservatorships.
On December 1, 2011, the Subcommittee on Oversight and
Investigations held a hearing entitled ``Oversight of the
Federal Housing Finance Agency.'' The hearing examined the
performance of the FHFA in its dual roles as regulator and
conservator of the GSEs Fannie Mae and Freddie Mac. The hearing
also considered the challenges that FHFA faces, including its
efforts to mitigate taxpayer exposure to continuing GSE losses.
Financial Institutions and Consumer Credit
Bureau of Consumer Financial Protection (CFPB)
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
powers of the CFPB to write rules, supervise compliance, and
enforce consumer protection laws, and the impact of CFPB rules
on small businesses and on financial institutions with fewer
than $10 billion in assets.
On March 2, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled ``The
Effect of Dodd-Frank on Small Financial Institutions and Small
Businesses.'' Witnesses, including representatives of community
banks and credit unions, small business owners, and
representatives of advocacy groups, addressed the challenges
faced by small institutions as a result of the Dodd-Frank Act.
The hearing focused on the effectiveness of Dodd-Frank's
exemptions for institutions with less than $10 billion in
assets, particularly the exemption from the CFPB's examination
and enforcement authority.
On March 16, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled
``Oversight of the Consumer Financial Protection Bureau.'' The
hearing reviewed the Administration's progress in establishing
the Bureau and addressed the CFPB's initial regulatory
priorities. At the hearing, Elizabeth Warren, Special Advisor
to the Secretary of the Treasury for the CFPB, testified on the
Bureau's budget and staffing, the Bureau's organizational
structure, and on interactions of Bureau staff with other
federal agencies. Ms. Warren also addressed the Bureau's status
in the event no Director has been appointed and confirmed by
the designated transfer date of July 21, 2011. The hearing
included questioning on the CFPB's participation in federal
agencies' settlement negotiations with mortgage servicers.
On April 6, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing
entitled Legislative Proposals to Improve the Structure of the
Consumer Financial Protection Bureau.'' The purpose of the
hearing was to examine three bills amending Title X of the
Dodd-Frank Act: (1) H.R. 1121, the Responsible Consumer
Financial Protection Regulations Act of 2011, to change the
leadership structure of the CFPB, replacing the Director of the
CFPB with a five-person commission; (2) H.R. 1315, the Consumer
Financial Protection Safety and Soundness Improvement Act of
2011, to modify the standards for review by the FSOC of
proposed CFPB regulations; and (3) H.R. 1667, the Bureau of
Consumer Financial Protection Transfer Clarification Act, to
delay the transfer of certain powers to the CFPB until a
Director is appointed by the President and confirmed by the
Senate. On May 4, 2011, the Subcommittee on Financial
Institutions and Consumer Credit met in open session and
ordered the three bills favorably reported to the Committee. On
May 12, 2011, the Committee met in open session and ordered the
bills favorably reported to the House. H.R. 1121 and H.R. 1667
were included in the Rules Committee print for H.R. 1315, which
was passed by the House on July 21, 2011.
On May 24, 2011, Chairman Spencer Bachus sent a letter to
Secretary Timothy Geithner regarding Section 1016A of the
Department of Defense and Full-Year Continuing Appropriations
Act (P.L. 112-10). In his letter, Chairman Bachus stressed the
importance of ensuring that the annual independent audit of the
CFPB's operations and budget is conducted in accordance with
generally accepted government auditing standards (GAGAS).
On October 26, Chairman Spencer Bachus sent a letter to Mr.
Raj Date, the Special Advisor to the Secretary of the Treasury
for the CFPB to verify the CFPB's position on implementing
Regulation E of the Electronic Funds Transfer Act, which
requires ATM operators to display prominent notices that
consumers will be assessed a fee for making cash withdrawals
from the machine.
On November 2, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled ``The
Consumer Financial Protection Bureau: The First 100 Days.'' The
purpose of the hearing was to review the CFPB's budgeting,
staffing, rule-writing initiatives, and the current and
potential challenges facing the Bureau as well as the entities
it regulates. Mr. Raj Date, Special Advisor to the Secretary of
the Treasury, CFPB, was the sole witness.
On January 6, 2012, Chairman Spencer Bachus sent a letter
to Attorney General Eric Holder regarding the constitutionality
and legality of President Obama's appointment of Richard
Cordray as the Director of the CFPB, during a period in which
the Senate was not in recess.
On January 30, 2012, Chairman Spencer Bachus and
Subcommittee on Financial Institutions and Consumer Credit
Subcommittee Chairman Shelley Moore Capito sent a letter to
Richard Cordray regarding an omission in the Dodd-Frank Act
that could result in regulated institutions waiving privileges
against third parties when they provide privileged information
to the CFPB. In the letter, Chairman Bachus expressed the need
for legislation to ensure that privileged information remains
privileged for financial institutions.
On February 8, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing
entitled ``Legislative Proposals to Promote Accountability and
Transparency at the Consumer Financial Protection Bureau'' to
examine the following bills: (1) H.R. 1355, the Bureau of
Consumer Financial Protection Accountability and Transparency
Act of 2011, to make the CFPB accountable to Congress and the
president for its spending; (2) H.R. 2081, a bill to amend the
Federal Deposit Insurance Act to replace the Director of the
Bureau of Consumer Financial Protection with the Chairman of
the Board of Governors of the Federal Reserve System as a
member of the Board of Directors of the FDIC; and (3) H.R.
3871, the Proprietary Information Protection Act of 2012, to
provide certainty to financial institutions that the production
of information compelled by the CFPB will not waive attorney-
client privilege or work-product immunity and to provide that
any privileged material that the CFPB shares with other federal
agencies remains privileged. On February 16, 2012, the
Committee met in open session and ordered H.R. 4014, a bill
related to H.R. 3871, favorably reported to the House by voice
vote.
On February 15, 2015, the Subcommittee on Oversight and
Investigations held a hearing entitled, ``Budget Hearing--
Consumer Financial Protection Bureau,'' which examined the
CFPB's budget for the fiscal years 2011 through 2013. The Dodd-
Frank Act provided that the CFPB would be funded from transfers
from the Federal Reserve System, outside of the Congressional
appropriations process. The Subcommittee received testimony
from the Honorable Richard Cordray, Director of the CFPB.
On February 16, 2012, Chairman Spencer Bachus sent a letter
to Richard Cordray to urge the CFPB to clarify whether states
may, consistent with the Secure and Fair Enforcement for
Mortgage Licensing Act Mortgage Licensing (SAFE) Act of 2008
(P.L. 110-289) (the SAFE Act), permit transitional licensing of
mortgage loan originators. In the letter, Chairman Bachus
stressed the importance for the CFPB to make the efficient
implementation of the SAFE Act a high priority.
On February 22, 2012, Subcommittee on Oversight and
Investigations Chairman Randy Neugebauer and Representatives
Mike Fitzpatrick and James Renacci sent a letter to CFPB
Director Richard Cordray asking that the CFPB: (1) provide
Congress access to certain forward-looking budget planning
information; (2) provide a more detailed budget justification
for Fiscal Year 2013; (3) include a meaningful performance plan
within its budget justification; (4) make its requests for
transfers from the Federal Reserve Board of Governors publicly
available 48 hours before making any request; and (5) provide
guidance on the hiring process of its staff and projection of
the number of total employees necessary.
On March 29, 2012, the Committee held a hearing entitled
``The Semi-Annual Report of the Consumer Financial Protection
Bureau.'' This hearing was held pursuant to Section 1016 of the
Dodd-Frank Act, which requires the CFPB to prepare semi-annual
reports describing its activities during the previous six
months, and the CFPB's Director to testify before the Committee
on Financial Services to report its findings. The hearing
focused on the CFPB's activities since it assumed rulemaking,
supervisory, and examination authorities over consumer
financial products and services. In addition, the hearing
examined the rules, orders, and other initiatives the CFPB has
planned for the next six months, most of which implement
provisions of the Dodd-Frank Act aimed at the mortgage market.
The Honorable Richard Cordray was the sole witness.
On March 29, 2012, the Subcommittee on Oversight and
Investigations Chairman Randy Neugebauer and Subcommittee on
Financial Institutions and Consumer Credit Chairman Shelley
Moore Capito sent a letter to CFPB Director Richard Cordray
requesting an itemization of the economic and compliance costs
that will result from the CFPB's rule making.
On March 29, 2012, the House passed the concurrent budget
resolution on the budget for fiscal year 2013, H. Con. Res.
112, by a vote of 228 yeas and 191 nays. The budget instructed
the Committee on Financial Services to submit legislative
recommendations that reduce the deficit by $3 billion for
fiscal years 2012 and 2013, $16.7 billion for fiscal years 2012
through 2017, and $29.8 billion for fiscal years 2012 through
2022. On April 18, 2012, the Committee met in open session to
consider the Committee's legislative recommendations to the
Committee on Budget. The budget reconciliation recommendations
included a provision that would repeal direct funding for the
CFPB, which was mandated by Title X of the Dodd-Frank Act.
Repealing direct funding for the CFPB would achieve savings for
the purposes of deficit reduction of $381 million in FY 2012-
13, $2.435 billion in FY 2012-17, and $5.387 billion in FY
2012-22, according to the Congressional Budget Office. The
Committee ordered the legislative recommendations for the
budget reconciliation to be transmitted to the Committee on the
Budget by a record vote of 31 yeas and 26 nays.
On May 2, 2012, Subcommittee on Oversight and
Investigations Chairman Randy Neugebauer and Representatives
Mike Fitzpatrick and James Renacci sent a letter to CFPB
Director Richard Cordray requesting detailed information
regarding the CFPB's Fiscal Year 2013 budget, hiring process,
and transfer requests from the Federal Reserve Board of
Governors that the CFPB did not provide in its response to the
Members' February 22, 2012 letter.
On May 9, 2012, Chairman Spencer Bachus and Subcommittee on
Oversight and Investigations Chairman Randy Neugebauer sent a
letter to CFPB Director Richard Cordray requesting information
on the CFPB's conference planning policies and expenditures
related to conferences held by the CFPB.
On June 6, 2012, the Subcommittee on Financial Institutions
and Consumer Credit held a legislative hearing entitled ``An
Examination of the Federal Reserve's Final Rule on the CARD
Act's Ability to Repay' Requirement.'' The hearing examined a
discussion draft intended to ensure that the Federal Reserve
Board does not interpret the Credit Card Accountability
Responsibility and Disclosure Act of 2009 in a way that
unfairly restricts credit for consumers who do not work outside
the home, particularly married women. Among other witnesses,
the Subcommittee received testimony from Ms. Gail Hillebrand,
Associate Director of Consumer Education and Engagement at the
Consumer Financial Protection Bureau.
On July 11, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled ``The
Impact of Dodd-Frank's Home Mortgage Reforms: Consumer and
Market Perspectives.'' The Dodd-Frank Act requires the Consumer
Financial Protection Bureau (CFPB) to set criteria that define
the borrower's ability to repay a mortgage and to obtain a net
tangible benefit when he or she refinances a loan. Loans that
meet these criteria are considered ``Qualified Mortgages.''
This hearing examined the Federal Reserve's proposed Qualified
Mortgage rule and the evolution of that rule after
responsibility for it was transferred to the CFPB on July 21,
2011. Also, this hearing examined the degree to which lenders
who make a qualified mortgage loan should be shielded from
liability for an alleged failure to satisfy the Dodd-Frank
Act's ability to repay requirements.
On July 19, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled ``The
Impact of Dodd-Frank on Consumer Choice and Access to Credit.''
The hearing provided an opportunity for Members to review the
Consumer Financial Protection Bureau's budgeting, staffing,
rule-writing initiatives, and the current and potential
challenges facing the Bureau as well as the entities it
regulates. The sole witness at this hearing was Mr. Raj Date,
Deputy Director of the Consumer Financial Protection Bureau.
On September 20, 2012, the Full Committee held a hearing
entitled, ``The Semi-Annual Report of the Consumer Financial
Protection Bureau.'' This hearing was held pursuant to Section
1016 of the Dodd-Frank Act, which requires the CFPB to prepare
semi-annual reports describing its activities during the
previous six months, and requires the CFPB's Director to
testify before the Financial Services Committee to report its
findings. The hearing examined the rules, orders, and other
initiatives the CFPB is undertaking, many of which implement
provisions of the Dodd-Frank Act aimed at the mortgage market.
The Honorable Richard Cordray, Director, CFPB, was the sole
witness.
``Too Big to Fail''
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review
whether the orderly liquidation authority'' created by Title II
of the Dodd-Frank Act to resolve large, complex financial
institutions whose failure could threaten the United States
economy provides an effective mechanism for imposing market
discipline and promoting financial stability.
On May 26, 2011, the Subcommittee on Financial Institutions
and Consumer Credit held a hearing entitled ``FDIC Oversight:
Examining and Evaluating the Role of the Regulator during the
Financial Crisis and Today.'' A primary focus of the hearing,
which featured testimony by FDIC Chairman Sheila Bair, was the
FDIC's implementation of Title II and efforts to structure the
orderly liquidation authority to instill greater market
discipline and prevent future bail-outs of large financial
firms.
On June 14, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled ``Does
the Dodd-Frank Act End `Too Big to Fail'?'' The purpose of the
hearing was to learn more about whether the FDIC's Orderly
Liquidation Authority--created by the Dodd-Frank Act--is
appropriately structured to end taxpayer bailouts for the
largest financial institutions.
On March 29, 2012, the House passed the concurrent budget
resolution on the budget for fiscal year 2013, H. Con. Res.
112, by a vote of 228 yeas and 191 nays. The budget instructed
the Committee on Financial Services to submit legislative
recommendations that reduce the deficit by $3 billion for
fiscal years 2012 and 2013, $16.7 billion for fiscal years 2012
through 2017, and $29.8 billion for fiscal years 2012 through
2022. On April 18, 2012, the Committee met in open session to
consider the Committee's legislative recommendations to the
Committee on Budget. The budget reconciliation included a
provision that would repeal Title II of the Dodd-Frank Act.
Repealing Title II would relieve taxpayers of the burden of
bailing out large financial institutions or their creditors,
and, according to the Congressional Budget Office, would
achieve savings for the purposes of deficit reduction of $3.383
billion in FY 2012-13, $13.585 billion in FY 2012-17, and $22
billion in FY 2012-22. The Committee ordered the legislative
recommendations for the budget reconciliation to be transmitted
to the Committee on the Budget by a record vote of 31 yeas and
26 nays.
On May 16, 2012, the Subcommittee on Financial Institutions
and Consumer Credit held a hearing entitled ``The Impact of the
Dodd-Frank Act: What It Means to be a Systemically Important
Financial Institution.'' The hearing examined how the FSOC
arrived at its final rule on designating companies as
``systemically important,'' and whether the designation
provides firms with an advantage over their competitors.
Financial Supervision
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to examine
Federal regulators' safety and soundness supervision of the
banking, thrift, and credit union industries, and to ensure
that systemic risks or other structural weaknesses in the
financial sector are indentified and addressed promptly.
On April 14, 2011, the Oversight and Investigations
Subcommittee held a hearing entitled ``Oversight of the
Financial Stability Oversight Council.'' The hearing focused on
the activities and regulatory initiatives of the FSOC, the
interagency body created by the Dodd-Frank Act to identify,
monitor, and address potential threats to the U.S. financial
system. The Subcommittee received testimony from
representatives of the Treasury Department, the CFTC, the
Federal Reserve, the SEC, the FDIC, and the OCC.
On May 26, 2011, the Subcommittee on Financial Institutions
and Consumer Credit held a hearing entitled ``FDIC Oversight:
Examining and Evaluating the Role of the Regulator during the
Financial Crisis and Today.'' FDIC Chairman Sheila Bair's
testimony contained an overview of the FDIC's supervisory
program, which has included a broad spectrum of guidance to
insured depository institutions to establish, and clearly
reaffirm, safety and soundness expectations. This guidance
dealt with significant risk management issues that became
central themes during the financial crisis, such as subprime
and non-traditional mortgage lending. In addition, Chairman
Bair testified that the FDIC has increased the frequency of its
examinations and hired additional examiners to achieve the
goals of its supervisory mission.
On June 14, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled ``Does
the Dodd-Frank Act End `Too Big to Fail'?'' The purpose of the
hearing was to learn more about whether the FDIC's Orderly
Liquidation Authority--created by the Dodd-Frank Act--is
appropriately structured to end taxpayer bailouts for the
largest financial institutions.
On June 16, 2011, the Committee held a hearing entitled
``Financial Regulatory Reform: The International Context.''
During this hearing, the Committee examined the international
implications of the Dodd-Frank Act for the United States
financial services industry and the United States economy.
Specifically, the Committee considered four aspects of United
States regulation that may affect the ability of United States
financial institutions to compete against their foreign
counterparts and impede economic recovery in the United States.
The regulations discussed were capital and liquidity
requirements, regulation and oversight of ``systemically
significant financial institutions,'' derivatives regulation,
and the regulation of proprietary trading.
On July 8, 2011, the Subcommittee on Financial Institutions
and Consumer Credit held a legislative hearing entitled
``Legislative Proposals Regarding Bank Examination Practices''
to examine H.R. 1723, the Common Sense Economic Recovery Act of
2011, introduced by Representative Bill Posey on May 4, 2011,
and H.R. 2056, a bill to instruct the Inspector General of the
FDIC to study the impact of insured depository institution
failures, introduced by Representative Lynn Westmoreland on May
31, 2011. H.R. 1723 would permit certain current loans that
would otherwise be treated as nonaccrual loans as accrual
loans. H.R. 2056 would instruct the Inspector General of the
FDIC to study the impact of insured depository institution
failures and closely examine the FDIC's bank closure
procedures. On July 20, 2011, the Committee met in open session
and favorably reported H.R. 2056 to the House. On July 28,
2011, the House considered H.R. 2056 under suspension of the
rules, and passed the bill, as amended, by voice vote. On
November 17, 2011, the Subcommittee met in open session and did
not order H.R. 1723 favorably reported to the Committee by a
record vote of 8 yeas and 10 nays.
On August 16, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a field hearing in
Newman, Georgia entitled ``Potential Mixed Messages: Is
Guidance from Washington Being Implemented by Federal Bank
Examiners?'' The purpose of the hearing was to assess whether
or not federal bank examination standards are overly stringent
and impeding an economic recovery.
On October 27, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled
``Proposed Regulations to Require Reporting of Nonresident
Alien Deposit Interest Income.'' The purpose of the hearing was
to review the impact of a proposed regulation that would
require financial institutions to report annually to the
Internal Revenue Service the amount of interest earned by
nonresident aliens on their U.S. bank deposits. The hearing
considered the potential effects of the proposed regulation on
nonresident alien deposits held in U.S. financial institutions
and on the safety and soundness of financial institutions that
hold significant amounts of these deposits.
On October 31, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a field hearing in
Wausau, Wisconsin, entitled ``Regulatory Reform: Examining How
New Regulations are Impacting Financial Institutions, Small
Businesses and Consumers.'' The purpose of the hearing was to
assess how new financial regulations are affecting the ability
of financial institutions to extend credit and stimulate job
growth. The hearing examined whether bank examination practices
are excessively stringent and impeding economic recovery.
On November 2, 2011, the Subcommittee on Financial
Institutions and Consumer Credit and the Subcommittee on
Capital Markets and Government Sponsored Enterprises held a
joint hearing entitled ``H.R. 1697: The Communities First
Act.'' The purpose of the hearing was to consider H.R. 1697,
the Communities First Act, which was introduced by
Representative Blaine Luetkemeyer on May 3, 2011. H.R. 1697
would reduce regulatory, paperwork, and tax burdens on small
banks. The Subcommittee examined whether H.R. 1697 would help
community banks foster economic growth and better serve their
communities.
On January 12, 2012, Chairman Spencer Bachus sent a letter
to John Walsh, Acting Comptroller of the Currency, requesting
access to un-redacted engagement letters submitted by
independent consultants that were retained by federal savings
association mortgage servicers. These letters would have been
sent as a result of April 2011 consent orders issued by the OCC
concerning deficient and unsafe or unsound foreclosure
practices. In the letter, Chairman Bachus gave assurances that
the information disclosed within the documents would be
protected from unauthorized public disclosure during the
Congressional review process.
On February 1, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing
entitled ``H.R. 3461: the Financial Institutions Examination
Fairness and Reform Act.'' The hearing examined H.R. 3461, a
bill to amend the Federal Financial Institutions Examination
Council Act of 1978 to set new examination standards for
financial institutions and their regulators.
On May 16, 2012, the Subcommittee on Financial Institutions
and Consumer Credit held a hearing entitled ``The Impact of the
Dodd-Frank Act: What It Means to be a Systemically Important
Financial Institution,'' to examine how the FSOC arrived at its
final rule on designating companies as ``systemically
important,'' and whether the designation provides firms with an
advantage over their competitors.
Basel III
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review new
global bank capital and liquidity rules being developed by the
Basel Committee on Banking Supervision (known as Basel III),
paying particular attention to implementation, compliance
burdens and global coordination.
On May 26, 2011, the Subcommittee on Financial Institutions
and Consumer Credit held a hearing entitled ``FDIC Oversight:
Examining and Evaluating the Role of the Regulator during the
Financial Crisis and Today.'' FDIC Chairman Sheila Bair's
testimony included an update on the Basel III process and
efforts by regulators to achieve international harmonization of
capital and liquidity standards and thereby avoid opportunities
for regulatory arbitrage.
On June 16, 2011, the Committee held a hearing entitled
``Financial Regulatory Reform: The International Context.''
During this hearing, the Committee examined the international
implications of the Dodd-Frank Act for the United States
financial services industry and the United States economy. The
regulations discussed were capital and liquidity requirements,
regulation and oversight of ``systemically significant
financial institutions,'' derivatives regulation, and the
regulation of proprietary trading. Basel III was a focus of
much of the testimony at the hearing.
On June 27, 2012, the Committee hosted a briefing that
presented a potential private sector solution to improve bank
capital. At this briefing, representatives of M-CAM, a global
intangible asset management firm, discussed a proposal to bring
intangible assets (e.g., permits, licenses, contract rights,
patents, trademarks, copyrights, etc.) onto bank balance sheets
to properly reflect the risk in these entities and stabilize
capital risk management. According to M-CAM, this proposal
could attract billions of dollars of fresh private capital into
the banking sector without the need for legislation, additional
regulation or appropriations.
On August 2, 2012, Chairman Bachus sent a letter to Federal
Reserve Chairman Ben Bernanke requesting that he consider
granting an extension of the comment period for the Basel III
proposed rule, citing the complexity of the rule and the need
for more substantive comments.
On October 18, 2012 Chairman Bachus, along with
Representatives Shelley Moore Capito, Jeb Hensarling, and Randy
Neugebauer, sent a letter to Federal Reserve Chairman Ben
Bernanke, Office of the Comptroller of the Currency Comptroller
Thomas Curry and Federal Deposit Insurance Corporation Acting
Chairman Martin Gruenberg expressing concern about proposed
Basel III capital requirements and their potential impact on
the community banking model.
On November 29, 2012, the Subcommittee on Financial
Institutions and Consumer Credit and the Subcommittee on
Housing and Insurance held a joint hearing entitled,
``Examining the Impact of the Proposed Rules to Implement Basel
III Capital Standards.'' The hearing examined whether U.S.
banking regulators' proposed capital adequacy standards will
ensure the stability of the financial system and preserve the
ability of financial institutions to take calculated risks.
Interchange Fees
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
implementation of Section 1075 of the Dodd-Frank Act, which
directs the Federal Reserve Board to set a ``reasonable and
proportional'' interchange fee for debit card transactions, and
consider its effect on merchants, banks, credit unions,
consumers, and the payment processing networks.
On February 17, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled
``Understanding the Federal Reserve's Proposed Rule on
Interchange Fees: Implications and Consequences of the Durbin
Amendment.'' Federal Reserve Board Governor Sarah Raskin,
representatives of small financial institutions and merchant
groups, and the general counsel of Visa presented their views
on the merits of the Federal Reserve's proposal for
implementing Section 1075.
On March 15, 2011, Subcommittee on Financial Institutions
and Consumer Credit Chairman Shelley Moore Capito introduced
H.R. 1081, the Consumers Payment System Protection Act. The
bill calls for a one-year delay of implementation of section
1075 of the Dodd-Frank Act. During the first eight months of
the delay, the following three studies are to be conducted: (1)
a study of all of the costs associated with debit transactions;
(2) an impact study on the effect of the Federal Reserve's
proposed rule on consumers, debit card issuers, merchants; and
(3) an impact study on network exclusivity and routing
provisions. The Federal Reserve will be able to utilize the
final four months of the extended time period to re-write the
rule and submit it for public comment.
Financial Crisis Inquiry Commission (FCIC)
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to conduct a
statutorily required review of the FCIC's final report issued
on January 27, 2011. The FCIC was created by Congress in 2009
``to examine the causes, domestic and global, of the current
financial and economic crisis in the United States'' (P.L. 111-
21). The Commission issued its final report on January 27,
2011, accompanied by dissenting views filed by individual
Commissioners. The chairperson of the FCIC was required to
appear before the Committee to present its findings not later
than 120 days after the issuance of the final report.
On February 16, 2011, the Committee held a hearing entitled
``The Final Report of the Financial Crisis Inquiry
Commission.'' The Chairman and Vice Chairman of the FCIC
testified, along with four other commissioners, two of whom
dissented from the Commission's majority report. The hearing
focused on the findings of the Commission's final report and
the commissioners' assessments of the Dodd-Frank Act in light
of the Commission's findings. In addition, the hearing
addressed the reasons for the Commission's inability to reach
consensus in its findings with regard to the causes of the
financial crisis.
Mortgage Servicing
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review
standards proposed by regulatory agencies on mortgage servicing
in order to ensure that proper authority exists for such
regulations and that deficient practices are adequately
addressed without unduly increasing the cost of mortgage
financing.
In the wake of the ``robo-signing'' controversy involving
irregularities in the foreclosure documentation process, five
of the nation's largest mortgage servicers received a draft
settlement term sheet on March 3, 2011, from the U.S.
Department of Justice on behalf of other federal and state
agencies to resolve outstanding enforcement actions against the
firms. On March 9, 2011, Chairman Spencer Bachus and other
Members of the Committee sent a letter to Secretary Timothy
Geithner asking a number of legal and public policy questions
about the settlement term sheet.
On March 16, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled
``Oversight of the Consumer Financial Protection Bureau.'' At
the hearing, Members questioned Treasury Special Assistant
Elizabeth Warren about the CFPB's participation in federal
agencies' and State Attorneys General's settlement negotiations
with mortgage servicers.
As a follow-up to Ms. Warren's responses at the March 16th
hearing, on March 30, 2011, Chairman Bachus and Financial
Institutions and Consumer Credit Subcommittee Chairman Capito
sent a letter to Ms. Warren inviting her to clarify her
statements during the hearing regarding the CFPB's involvement
in the mortgage servicing settlement negotiations. In her April
4, 2011 response, Ms. Warren stated that ``we have been an
active participant in inter-agency discussions, sharing our
analysis and recommendations in support of a resolution that
would hold accountable any servicers that violated the law . .
. While we have provided advice to government officials, it
bears emphasizing that the consumer agency is not conducting
settlement negotiations with mortgage servicers.''
On May 6, 2011, Representatives Neugebauer, Capito,
Garrett, and McHenry sent a follow-up letter to the above-
referenced March 16, 2011 letter to Secretary Geithner seeking
specific documents and records related to the CFPB's
involvement in the mortgage servicing settlement negotiations.
On June 20, 2011, Chairman Spencer Bachus and other Members
of the Committee sent a letter to Treasury Secretary Timothy
Geithner seeking specific documents and records related to the
CFPB's involvement in mortgage servicing settlement
negotiations.
On July 7, 2011, the Subcommittee on Financial Institutions
and Consumer Credit and the Subcommittee on Oversight and
Investigations held a joint hearing entitled ``Mortgage
Servicing: An Examination of the Role of Federal Regulators in
Settlement Negotiations and the Future of Mortgage Servicing
Standards.'' The purpose of the hearing was to review the role
of Federal regulators in the ongoing mortgage servicing
settlement negotiations and the development of new mortgage
servicing standards.
On March 15, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a field hearing in Las
Vegas, Nevada, entitled ``An Examination of Potential Private
Sector Solutions to Mitigate Foreclosures in Nevada.'' This
hearing examined potential private sector solutions to mitigate
the wave of foreclosures that have hit the state of Nevada,
which has held the nation's highest state foreclosure rate for
five consecutive years.
Deposit Insurance
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
solvency of the Deposit Insurance Fund (DIF) and changes to the
assessments charged by the FDIC as mandated by the Dodd-Frank
Act, 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.
On May 26, 2011, the Subcommittee on Financial Institutions
and Consumer Credit held a hearing entitled ``FDIC Oversight:
Examining and Evaluating the Role of the Regulator during the
Financial Crisis and Today.'' One of the issues addressed in
FDIC Chairman Bair's testimony and in questioning by Members
was the current status of the DIF and the FDIC's implementation
of the above-referenced changes to the system for assessing
premiums on insured depository institutions.
Bank Failures
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
process the FDIC uses to supervise and resolve failed community
banks, as well as studying the costs and benefits of loss share
agreements to the Deposit Insurance Fund and the American
taxpayer.
On May 26, 2011, the Subcommittee on Financial Institutions
and Consumer Credit held a hearing entitled ``FDIC Oversight:
Examining and Evaluating the Role of the Regulator during the
Financial Crisis and Today.'' In her testimony, FDIC Chairman
Bair was questioned by several Members of the Subcommittee on
the FDIC's policies and procedures for resolving failed
institutions, which include offering loss sharing and
structured transactions, as well as securitizations of failed
bank assets.
On June 14, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled ``Does
the Dodd-Frank Act End `Too Big to Fail'?'' The purpose of the
hearing was to learn more about whether the FDIC's Orderly
Liquidation Authority--created by the Dodd-Frank Act--is
appropriately structured to end taxpayer bailouts for the
largest financial institutions.
On July 8, 2011, the Subcommittee on Financial Institutions
and Consumer Credit held a legislative hearing entitled
``Legislative Proposals Regarding Bank Examination Practices''
to examine H.R. 1723, the Common Sense Economic Recovery Act of
2011, introduced by Representative Bill Posey on May 4, 2011,
and H.R. 2056, a bill to instruct the Inspector General of the
FDIC to study the impact of insured depository institution
failures, introduced by Representative Lynn Westmoreland on May
31, 2011. H.R. 1723 would permit certain current loans that
would otherwise be treated as nonaccrual loans as accrual
loans. H.R. 2056 would instruct the Inspector General of the
FDIC to study the impact of insured depository institution
failures and closely examine the FDIC's bank closure
procedures. On July 20, 2011, the Committee met in open session
and favorably reported H.R. 2056 to the House. On July 28,
2011, the House considered H.R. 2056 under suspension of the
rules, and passed the bill, as amended, by voice vote. On
November 17, 2011, the Subcommittee on Financial Institutions
and Consumer Credit met in open session and did not order H.R.
1723 favorably reported to the Committee by a record vote of 8
yeas and 10 nays.
On August 16, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a field hearing in
Newman, Georgia entitled ``Potential Mixed Messages: Is
Guidance from Washington Being Implemented by Federal Bank
Examiners?'' The purpose of the hearing was to assess whether
or not federal bank examination standards are overly stringent
and impeding an economic recovery. A primary focus of the
hearing was the causes and consequences of the elevated level
of bank failures in the State of Georgia.
On May 16, 2012, the Subcommittee on Oversight and
Investigations held a hearing entitled ``Oversight of the
Federal Deposit Insurance Corporation's Structured Transaction
Program.'' The hearing examined the use of structured
transaction sales by the FDIC in which the FDIC partners with
private-sector entities to dispose of some of the assets
acquired by the FDIC when it resolves a failed bank. The
hearing further explored whether the FDIC's structured
transactions program maximizes the value of the assets sold in
these transactions and whether these sales affect the FDIC's
Deposit Insurance Fund.
Credit Unions
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review
issues relating to the safety and soundness and regulatory
treatment of the credit union industry. In particular, the
Committee will examine the failures in the corporate credit
union system and evaluate possible reforms to the system and to
the National Credit Union Administration (NCUA).
On October 12, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing
entitled ``H.R. 1418: The Small Business Lending Enhancement
Act of 2011.'' The purpose of the hearing was to discuss credit
union member business lending. The hearing considered H.R.
1418, the Small Business Lending Enhancement Act of 2011, was
introduced by Representatives Edward Royce and Carolyn McCarthy
on April 7, 2011. H.R. 1418 provides exceptions to caps
contained in the Federal Credit Union Act of 1934 on the
amounts that credit unions can lend to their members'
businesses. H.R. 1418 also requires both the NCUA and GAO to
study member business loans made by credit unions, as well as
recent trends in credit union lending.
On October 29, 2012, Chairman Bachus sent a letter to
Chairman Debbie Matz seeking information about the NCUA's
proposed rule to redefine ``troubled condition'' for federally-
insured, state-chartered credit unions (FISCUs). The proposed
rule would, for the first time, give the NCUA the unilateral
ability to classify a FISCU as in ``troubled condition,'' even
if the state regulator disagrees. In the letter, Chairman
Bachus expressed concern about changing the long-standing
division of supervisory responsibility for FISCUs. The letter
posed a series of questions about the NCUA's rationale for
proposing the rule.
Regulatory Burden Reduction
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to conduct an
ongoing review of 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.
On January 26, 2011, the Committee held a hearing entitled
``Promoting Economic Recovery and Job Creation: The Road
Forward.'' The purpose of this hearing was to provide leading
economists, academics, business-owners and citizens an
opportunity to share their views about the barriers to economic
growth. The hearing gave witnesses an opportunity to discuss
macroeconomic issues and trends facing the country and
affecting job creation. Among other issues, witnesses discussed
and evaluated the impact of regulatory uncertainty on job
growth.
On March 2, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled ``The
Effect of Dodd-Frank on Small Financial Institutions and Small
Businesses.'' Witnesses, including representatives of community
banks and credit unions, small business owners, and advocacy
groups, addressed the challenges faced by small institutions as
a result of the Dodd-Frank Act.
On March 9, 2011, Chairman Spencer Bachus and the other
Republican Members of the Committee sent a letter to financial
regulators expressing a number of concerns regarding the
implementation of Dodd-Frank. The letter requested that the
agencies (1) provide comment periods sufficient to address the
number of proposed rules and breadth of issues addressed by the
rules, (2) ensure consistency across agencies, and (3) provide
regulatory flexibility for small entities.
On September 8, 2011, Chairman Spencer Bachus and other
Members of the Committee sent a letter to Secretary of the
Department of Treasury Timothy Geithner expressing concerns
about the fulfillment of the FSOC's pledge to eliminate
unnecessary or duplicative regulatory burdens on the financial
system, namely on small community banks and credit unions.
Additionally, the letter requested a status report from the
Secretary on his efforts to ``streamline and simplify'' the
regulatory environment. Secretary Geithner responded on October
5, stating that ``as agencies move forward with implementation
of the Dodd-Frank Act, I will continue to encourage, as a top
priority, inter-agency coordination and the development of
rules that strike the right balance between financial stability
and innovation.''
On October 31, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a field hearing in
Wausau, Wisconsin, entitled ``Regulatory Reform: Examining How
New Regulations are Impacting Financial Institutions, Small
Businesses and Consumers.'' The purpose of the hearing was to
assess how new financial regulations are affecting the ability
of financial institutions to extend credit and stimulate job
growth. The hearing examined whether bank examination practices
are excessively stringent and impeding economic recovery.
On November 2, 2011, the Subcommittee on Financial
Institutions and Consumer Credit and the Subcommittee on
Capital Markets and Government Sponsored Enterprises held a
joint hearing entitled ``H.R. 1697: The Communities First
Act.'' The purpose of the hearing was to consider H.R. 1697,
the Communities First Act, which was introduced by
Representative Blaine Luetkemeyer on May 3, 2011. H.R. 1697
would reduce regulatory, paperwork, and tax burdens on small
banks. The Subcommittees examined whether H.R. 1697 would help
community banks foster economic growth and better serve their
communities.
On February 1, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing
entitled ``H.R. 3461: the Financial Institutions Examination
Fairness and Reform Act.'' The hearing examined H.R. 3461, a
bill to amend the Federal Financial Institutions Examination
Council Act of 1978 to set new examination standards for
financial institutions and their regulators.
On March 1, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled
``Understanding the Effects of the Repeal of Regulation Q on
Financial Institutions and Small Businesses.'' The hearing
examined the effect of Regulation Q's repeal on the funding
costs of banks, the demand for interest-bearing checking
accounts, the ability of smaller banks to compete for deposits
against larger ones, and the credit costs for businesses and
consumers.
On March 14, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a field hearing in San
Antonio, Texas, entitled ``An Examination of the Challenges
Facing Community Financial Institutions in Texas.'' The hearing
examined the effect of new financial regulations on the ability
of financial institutions to extend credit and stimulate job
growth. In addition, the hearing examined the effects of
excessively stringent federal bank examinations on the economic
recovery.
On April 16, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a field hearing in
Cleveland, Ohio, entitled ``An Examination of the Challenges
Facing Community Financial Institutions in Ohio.'' The hearing
examined how new financial regulations are affecting the
ability of Ohio-based financial institutions to extend credit
and stimulate job growth, while staying economically viable.
The hearing also addressed the effect of stringent federal bank
examinations--examinations that some financial institutions
contend may be overzealous--during an economic recovery.
On May 9, 2012, the Subcommittee on Financial Institutions
and Consumer Credit held a hearing entitled ``Rising Regulatory
Compliance Costs and Their Impact on the Health of Small
Financial Institutions.'' The purpose of this hearing was to
assess the efforts of prudential regulators to ensure that new
regulations do not unnecessarily constrain the financial
services industry, and to learn the plans of financial
institutions to remain viable in the face of these rising
costs.
On May 18, 2012, the Subcommittee on Financial Institutions
and Consumer Credit held a hearing entitled ``The Impact of the
Dodd-Frank Act: Understanding Heightened Regulatory Capital
Requirements.'' The purpose of this hearing was to assess the
effects of prohibiting bank holding companies from using trust
preferred securities to meet Tier 1 capital requirements.
On June 27, 2012, the Full Committee met in open session
and favorably reported to the House by voice vote H.R. 4367, a
bill to amend the Electronic Fund Transfer Act to limit the fee
disclosure requirement for an automatic teller machine to the
screen of that machine. H.R. 4367 amends Section 904 of the
Consumer Credit Protection Act by eliminating the requirement
that the operators of automated teller machines (ATMs) post in
a prominent and conspicuous location or at the ATM a notice
that a fee is imposed by the operator when consumers withdraw
cash from the ATM.
On August 20, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a field hearing in
Charleston, West Virginia, entitled ``An Examination of the
Challenges Facing Community Financial Institutions in West
Virginia'' to hear from representatives from West Virginia-
based financial institutions about the effect of new financial
regulations on their ability to extend credit and stimulate job
growth, while staying economically viable. The hearing also
addressed the effect of stringent federal bank examinations--
examinations that some financial institutions contend may be
overzealous--during an economic recovery.
On September 12, 2012, Chairman Bachus sent a letter to
Senate Majority Leader Harry Reid requesting that the Senate
promptly consider H.R. 4367 as a stand-alone bill, citing that
the bill eliminates red tape by removing ``the requirement that
ATM operators affix unnecessary and outmoded fee notices to
their machines.''
Credit Scores and Credit Reports
The Oversight plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to continue
monitoring the accuracy and use of credit reports and credit
scores with a specific focus on their impact on the
availability of consumer credit.
On September 13, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing
entitled ``Examining the Uses of Consumer Credit Data.'' The
Subcommittee received testimony from Mr. Robert Schoshinski,
Assistant Director, Division of Privacy and Identity
Protection, Federal Trade Commission. The hearing focused on
H.R. 6363 The Credit Access and Inclusion Act, which was
introduced by Representative Jim Renacci on September 10, 2012,
and H.R. 2086, the Medical Debt Responsibility Act of 2011,
which was introduced by Representative Heath Shuler on June 2,
2011. H.R. 6363 amends the Fair Credit Reporting Act to make
clear that the statute permits ``public utility services'' to
voluntarily report positive and negative payment data to
consumer reporting agencies. The only information that would be
allowed to be reported under this legislation would be
information that relates to payment for services or other terms
regarding the provision of the services. This information would
include information regarding deposits, discounts, or other
conditions for interrupting or terminating service. H.R. 2086
amends the Fair Credit Reporting Act to require consumer
reporting agencies to remove paid or settled medical debt of up
to $2,500 within 45 calendar days from credit reports.
Access to Financial Services
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee 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'').
On July 26, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled
``Examining Rental Purchase Agreements and the Potential Role
for Federal Regulation,'' to discuss a proposal for improving
the oversight and transparency of the rent-to-own industry. The
hearing focused on H.R. 1588, the Consumer Rental Purchase Act,
which was introduced by Representative Francisco ``Quico''
Canseco on April 15, 2011. H.R. 1588 would define rental
purchase transactions, create uniform national disclosure
standards for rent-to-own businesses, and prohibit certain
practices. This legislation was designed to be a federal floor
for regulation of the rent-to-own industry, leaving intact the
rights of states to go beyond these regulations, so long as
those states do not define rental purchase transactions as a
credit sale or require the disclosure of an annual percentage
rate. On November 17, 2011, H.R. 1588, as amended, was ordered
favorably reported to the Committee by voice vote. On May 31,
2012, the Committee met in open session and favorably reported
H.R. 1588, as amended, to the House by a vote of 33 yeas and 21
nays.
On September 22, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled ``An
Examination of the Availability of Credit for Consumers.'' The
purpose of the hearing was to explore the capacity of banking
institutions to address the credit needs of low- and middle-
income consumers. The hearing also examined alternatives to
traditional banking services, including check cashing and
payday lending services.
On July 24, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing
entitled ``Examining Consumer Credit Access Concerns, New
Products and Federal Regulations.'' The hearing focused on H.R.
6139, the Consumer Credit Access, Innovation and Modernization
Act, which was introduced by Representative Blaine Luetkemeyer
on July 18, 2012. H.R. 6139 would establish a federal charter
to be granted by the Office of the Comptroller of the Currency
(OCC) for ``qualified nondepository creditors.'' These new
federally chartered creditors would be known as ``National
Consumer Credit Corporations.'' Credit Corporations would be
tasked with offering OCC-approved financial products to
``underserved'' consumers, making loans to small businesses
that have fewer than 500 full-time employees, and offering
products and services designed to help underserved consumers
improve their credit scores and encourage personal savings. The
bill imposes limits on the amount of credit that Credit
Corporations could extend to any consumer or small business.
Credit Corporations would be prohibited from making consumer
loans that have prepayment penalties or maturities of 30 days
or less. H.R. 6139 forbids any government authority from
setting usury limits on loans extended by Credit Corporations
and provides three situations in which state laws applicable to
Credit Corporations would be preempted. Under the bill, the OCC
would have general supervisory and enforcement authority over
Credit Corporations.
Credit Card Regulation
The Oversight plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to continue its
review of credit card industry practices, particularly those
relating to marketing, fees, and disclosures.
On June 6, 2012, the Subcommittee on Financial Institutions
and Consumer Credit held a legislative hearing entitled ``An
Examination of the Federal Reserve's Final Rule on the CARD
Act's `Ability to Repay' Requirement.'' The hearing examined a
discussion draft intended to ensure that the Federal Reserve
Board does not interpret the Credit Card Accountability
Responsibility and Disclosure Act of 2009 in a way that
unfairly restricts credit for consumers who do not work outside
the home, particularly married women.
Money Laundering and the Financing of Terrorism
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
enforcement of anti-money laundering and counter-terrorist
financing laws and regulations.
On September 6, 2011, the Subcommittee on Oversight and
Investigations held a field hearing in New York, New York
entitled ``Combating Terror Post-9/11: Oversight of the Office
of Terrorism and Financial Intelligence.'' The hearing reviewed
the activities of the Treasury Department's Office of Terrorism
and Financial Intelligence to safeguard the integrity of the
nation's financial system and to fight terrorist facilitators,
money launderers, and other threats to national security. The
Honorable Daniel Glaser, Assistant Secretary for Terrorist
Financing, Department of the Treasury, was the sole witness.
Data Security and Identity Theft
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to build on the
Committee's long-standing role in developing laws governing the
handling of sensitive personal financial information about
consumers, (including the Gramm-Leach-Bliley Act and the Fair
and Accurate Credit Transactions Act (FACT Act)); to evaluate
the need for legislation that better protects the security and
confidentiality of such information from any loss, unauthorized
access, or misuse; to examine the threats of cyber crime
against individuals, businesses and financial institutions; and
to identify best practices that can protect against identify
theft and related cyber crimes.
On June 29, 2011, the Committee held a field hearing in
Hoover, Alabama, entitled ``Hacked Off: Helping Law Enforcement
Protect Private Financial Information.'' The hearing examined
threats that computer hackers pose to individuals, businesses,
financial institutions and government agencies; the methods
that hackers employ to breach information technology systems;
and the efforts of law enforcement to foil or arrest hackers.
It also examined the work of the National Computer Forensics
Institute, where state and local law enforcement officers,
prosecutors and judges are trained in ways to detect, prosecute
and try cases involving computer-based evidence.
On September 14, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled
``Cybersecurity: Threats to the Financial Sector.'' The purpose
of the hearing was to examine the threats that computer hackers
pose to financial institutions and government agencies; the
methods used by hackers to breach information-technology
systems; and the cooperation among government agencies and the
private sector to thwart hackers.
On May 31, 2012, the Committee hosted the Symantec
Corporation for a bipartisan House-wide briefing on its 2011
Internet Security Threat Report. The report is based on data
from Symantec's Global Intelligence Network, which Symantec's
analysts use to identify, analyze, and provide commentary on
emerging trends in attacks, malicious code activity,
``phishing,'' and e-mail spam.
On June 29, 2011, the Committee held a field hearing in
Hoover, Alabama, entitled ``Hacked Off: Helping Law Enforcement
Protect Private Financial Information.'' The hearing examined
threats that computer hackers pose to individuals, businesses,
financial institutions and government agencies; the methods
that hackers employ to breach information technology 296
systems; and the efforts of law enforcement to foil or arrest
hackers. It also examined the work of the National Computer
Forensics Institute, where state and local law enforcement
officers, prosecutors and judges are trained in ways to detect,
prosecute and try cases involving computer-based evidence.
On September 14, 2011, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled
``Cybersecurity: Threats to the Financial Sector.'' The purpose
of the hearing was to examine the threats that computer hackers
pose to financial institutions and government agencies; the
methods used by hackers to breach information-technology
systems; and the cooperation among government agencies and the
private sector to thwart hackers.
On May 31, 2012, the Committee hosted the Symantec
Corporation for a bipartisan House-wide briefing on its 2011
Internet Security Threat Report. The report is based on data
from Symantec's Global Intelligence Network, which Symantec's
analysts use to identify, analyze, and provide commentary on
emerging trends in attacks, malicious code activity,
``phishing,'' and e-mail spam.
On June 21, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled ``The
Future of Money: Where Do Mobile Payments Fit in the Current
Regulatory Structure?'' to examine whether changes need to be
made to laws and regulations governing payments, consumer
protection, and anti-money laundering to cover new forms of
value transfer that are beginning to enter the marketplace.
Money Services Businesses' Access to Banking Services
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to examine the
availability of account services to Money Services Businesses
(MSBs) and to assess the effectiveness of the regulation of
MSBs by the Financial Crimes Enforcement Network (FinCEN) and
Internal Revenue Service, regulatory guidance provided by
FinCEN to MSBs and financial institutions, and steps that could
be taken to provide MSBs with appropriate access to the banking
system.
On June 29, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled ``The
Future of Money: Where Do Mobile Payments Fit In the Current
Regulatory Structure?'' to examine the regulatory regime
covering Money Services Businesses, the regulatory burden on
them, and ways to improve the regulatory environment without
impairing the regulations' impact.
Insurance
National Flood Insurance Program (NFIP)
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review
proposed reforms to the NFIP which is currently authorized
through September 30, 2011.
On March 11, 2011 and April 1, 2011, the Subcommittee on
Insurance, Housing and Community Opportunity held legislative
hearings entitled ``Legislative Proposals to Reform the
National Flood Insurance Program.'' The hearings focused on
legislation introduced by Subcommittee Chairman Biggert (H.R.
1309) which included the following reforms: (1) a five-year
reauthorization of the NFIP; (2) a three-year delay in the
mandatory purchase requirement for certain properties in newly
designated Special Flood Hazard Areas (SFHAs); (3) a phase-in
of full-risk, actuarial rates for areas newly designated as
Special Flood Hazard; (4) a reinstatement of the Technical
Mapping Advisory Council; and (5) an emphasis on greater
private sector participation in providing flood insurance
coverage.
On February 23, 2012, the Federal Emergency Management
Agency (FEMA) conducted a bipartisan briefing on the NFIP's FY
2013 budget proposal for Committee staff.
On May 16, 2012, Chairman Spencer Bachus sent a joint
letter with Ranking Member Barney Frank to Senator Harry Reid,
Senator Mitch McConnell, Senator Tim Johnson, and Senator
Richard Shelby expressing concerns about the potential lapse of
NFIP if Congress failed to reauthorize the program by May 31,
2012. Chairman Bachus and Ranking Member Frank urged the
enactment of a long-term NFIP reauthorization bill.
On June 28, 2012, the House considered H.R. 4348, the
Moving Ahead for Progress in the 21st Century Act, which
included the Biggert-Waters Flood Insurance Reform Act of 2012,
and passed the bill with amendments by a record vote of 373
yeas and 52 nays. Title II of Division F of H.R. 4348 provides
for a five year reauthorization of the National Flood Insurance
Program (NFIP). H.R. 4348 was introduced on April 16, 2012, and
was signed into law on July 6, 2012.
Federal Insurance Office (FIO)
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to monitor the
establishment and implementation of the FIO. The Oversight Plan
calls for the Committee to pay particular attention to the
FIO's limited scope of authority and to work to ensure that FIO
does not impose unwarranted or excessive data collection
burdens on the insurance sector.
On October 25, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a hearing entitled ``Insurance
Oversight: Policy Implications for U.S., Consumers, Businesses
and Jobs, Part 2.'' This was the second in a series of hearings
on the status of the insurance industry that began on July 28,
2011. The purpose of these hearings was to review the effect of
the Dodd-Frank Act and other recent domestic and international
regulatory changes on the insurance industry, consumers, and
jobs. This hearing specifically examined the actions undertaken
by the first Director of the FIO and his plans to fulfill FIO's
mandate as set forth in the Dodd-Frank Act.
On December 20, 2011, Chairman Spencer Bachus sent a joint
letter with Ranking Member Barney Frank to the Secretary of the
Treasury, Timothy Geithner, expressing concerns raised by
domestic institutions about the procedures of the Financial
Stability Board (FSB) for designating ``global systemically
important financial institutions,'' or G-SIFIs. U.S. domiciled
institutions raised concerns that the FSB's reach over large
institutions could result in duplicative regulatory efforts
that might inhibit a robust market.
On May 17, 2012, the Subcommittee on Insurance, Housing and
Community Opportunity held a hearing entitled ``U.S. Insurance
Sector: International Competitiveness and Jobs.'' This hearing
examined the international competitiveness of U.S.-domiciled
insurance and reinsurance companies and their ability to create
jobs.
State-Based Insurance Reforms
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to monitor
developments in the state regulatory regime for insurance to
see if the states are progressing in achieving uniform
standards to enhance the efficiency and effectiveness of
insurance and reinsurance regulation, particularly in the
regulation of non-admitted (surplus lines) insurance.
On July 28, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a hearing on ``Insurance
Oversight: Policy Implications for U.S., Consumers, Businesses
and Jobs.'' The purpose of this hearing was to receive an
update on ongoing challenges in the regulation of the insurance
industry and in particular the related implementation of the
Dodd-Frank Act. This hearing also reviewed other domestic and
international insurance initiatives that affect consumers, the
insurance industry, and jobs, and explored insurance reforms
that might be considered by Congress, federal agencies, or the
states.
Impact of Dodd-Frank Act Implementation on the Insurance Sector
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to monitor the
implementation of various provisions in the Dodd-Frank Act for
their potential impact on the insurance sector. The Dodd-Frank
Act provides for three representatives on the FSOC to have
specific expertise in the insurance area.
On February 10, 2011 Chairman Spencer Bachus, Subcommittee
on Insurance, Housing and Community Opportunity Chairwoman Judy
Biggert, Ranking Member Barney Frank, and Subcommittee Ranking
Member Luis Gutierrez sent a letter to Treasury Secretary
Geithner expressing concern that the FSOC, contrary to the
intent of the Dodd-Frank Act, was proceeding with discussions
on major issues affecting the insurance sector without the
benefit of a full complement of insurance expertise.
On April 14, 2011, the Subcommittee on Oversight and
Investigations held a hearing entitled ``Oversight of the
Financial Stability Oversight Council.'' Representatives from
the regulators serving on the FSOC testified at the hearing,
including John Huff, the designated state insurance
commissioner and one of the three FSOC members with insurance
expertise. In written and oral testimony, Mr. Huff expressed
frustration with his inability to use resources available from
the National Association of Insurance Commissioners to assist
him with his work on the Council. Treasury Undersecretary for
Domestic Finance Jeffrey Goldstein offered assurances at the
hearing that Mr. Huff's concerns would be addressed.
On July 28, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a hearing on ``Insurance
Oversight: Policy Implications for U.S., Consumers, Businesses
and Jobs.'' The purpose of this hearing was to receive an
update on ongoing challenges in the regulation of the insurance
industry and in particular the related implementation of the
Dodd-Frank Act. This hearing also reviewed other domestic and
international insurance initiatives that affect consumers, the
insurance industry, and jobs, and explored insurance reforms
that might be considered by Congress, federal agencies, or the
states.
On November 16, 2011, the Subcommittee on Insurance,
Housing and Community Opportunity held a hearing entitled
``Insurance Oversight and Legislative Proposals.'' This hearing
examined three legislative discussion drafts that amend
provisions of the Dodd-Frank Act that some argue would create
regulatory uncertainty for the insurance industry, and thereby
have negative consequences for U.S. consumers, businesses, and
jobs. Witnesses at the hearing also discussed the strengths and
weaknesses of the state insurance guaranty fund system in
handling insurance company failures and curtailing systemic
risk in the domestic insurance industry.
State Insurance Guaranty Funds
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to monitor the
capacity and effectiveness of State Insurance Guaranty Funds to
enhance stability in the insurance sector.
On November 16, 2011, the Subcommittee on Insurance,
Housing and Community Opportunity held a hearing entitled
``Insurance Oversight and Legislative Proposals.'' This hearing
examined three legislative discussion drafts that amend
provisions of the Dodd-Frank Act that some argue would create
regulatory uncertainty for the insurance industry, and thereby
have negative consequences for U.S. consumers, businesses, and
jobs. Witnesses at the hearing also discussed the strengths and
weaknesses of the state insurance guaranty fund system in
handling insurance company failures and curtailing systemic
risk in the domestic insurance industry.
Housing
Neighborhood Stabilization Program (NSP)
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to rescind the
$1 billion in unobligated funds for NSP and eliminate the
program.
On March 1, 2011, Representative Gary Miller introduced
H.R. 861, the NSP Termination Act, which would rescind all
unobligated balances made available for the NSP authorized by
the Dodd-Frank Act and terminate the program. The NSP is a
federal grant program which provides funding for emergency
assistance to state and local governments to acquire, develop,
redevelop, or demolish foreclosed homes. On March 2, 2011, the
Subcommittee on Insurance, Housing and Community Opportunity
held a legislative hearing on H.R. 861. H.R. 861 was ordered
favorably reported by the Committee on March 3, 2011, and
passed the House on March 16, 2011.
Housing and Urban Development, Rural Housing Service, National
Reinvestment Corporation
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review HUD's
budget and current programs with the goal of identifying
program spending cuts or eliminating inefficient and
duplicative programs.
On March 1, 2011, the Committee held a hearing entitled
``Oversight of the Department of Housing and Urban
Development.'' The hearing focused on the proposed budget for
HUD for fiscal year 2012, and featured testimony by HUD
Secretary Shaun Donovan.
On May 25, 2011, the Subcommittee on Insurance, Housing and
Community Opportunity held a hearing entitled ``Legislative
Proposals to Determine the Future Role of FHA, RHS and GNMA in
the Single- and Multi-Family Mortgage Markets.'' The hearing
focused on HUD's FHA and USDA's Rural Housing Service (RHS)
single- and multi-family programs. The hearing also examined
legislative proposals to improve the financial condition of
FHA, RHS and the Government National Mortgage Association
(GNMA), the agency of HUD that guarantees the timely payment of
principal and interest on securities backing mortgages insured
by FHA and other government agencies. These proposals were
designed to increase the current FHA downpayment requirements,
simplifying the FHA's loan limit calculation formula, and
transferring RHS's current functions into FHA to be run by a
new Deputy Assistant Secretary.
On June 3, 2011, the Committee held a hearing entitled
``Oversight of HUD's HOME Program.'' This was the first in a
series of hearings on allegations of waste, fraud, and abuse
within the HOME program. In this hearing, the Committee
examined HUD's policies and procedures for monitoring the
performance of the HOME program. The hearing investigated
several of the mismanagement allegations raised by the HUD
Office of Inspector General and a series of journalistic
exposes in The Washington Post.
On June 8, 2011, Subcommittee on Insurance, Housing and
Community Opportunity Chairman Judy Biggert and Subcommittee on
Oversight and Investigations Chairman Randy Neugebauer sent a
letter to Mercedes Marquez, HUD's Assistant Secretary of the
Office of Community Planning and Development. The letter
expressed the need for assurances from HUD that every dollar
spent on the HOME Investment Partnership Initiative program,
the formula-based grant program for states and localities
administered by HUD, goes to fulfill the program's mission to
provide affordable housing to low-income families.
On September 21, 2011, Subcommittee on Insurance, Housing
and Community Opportunity Chairman Judy Biggert and
Subcommittee on Oversight and Investigations Chairman Randy
Neugebauer sent a letter to Peter Kovar, HUD's Assistant
Secretary for Congressional and Intergovernmental Relations.
The letter specifically requested that HUD provide address
information for both single-family projects and multi-family
projects funded with HOME Investment Partnership Program funds
in order to ensure that HUD was keeping an accurate database of
past and current development projects.
On November 2, 2011, the Subcommittee on Oversight and
Investigations and the Subcommittee on Insurance, Housing and
Community Opportunity held a joint hearing entitled ``Fraud in
the HUD HOME Program.'' This was the second in a series of
hearings on allegations of waste, fraud, and abuse within the
HOME program. HUD's Office of Inspector General (HUD OIG)
performed internal audits of HUD's management of the HOME
program in September 2009 and November 2010 which documented
problems in HUD's ability to track HOME funds and activities.
The subcommittees received testimony from the HUD OIG, HUD, and
others, including individuals convicted of defrauding the HOME
program, on HUD's failure to properly oversee participating
jurisdictions that received HOME funds.
On February 13, 2012, HUD conducted a bipartisan briefing
on its FY 2013 budget proposal for Committee staff.
On February 28, 2012, the Subcommittee on Insurance,
Housing and Community Opportunity held a hearing on ``Oversight
of the Department of Housing and Urban Development.'' This
hearing examined the HUD's proposed Fiscal Year 2013 budget.
On March 29, 2012, Subcommittee on Oversight and
Investigations Chairman Randy Neugebauer sent a letter to HUD
Secretary Shaun Donovan requesting documents from HUD's
headquarters and some of HUD's Office of Community Planning and
Development field office directors to assist the Subcommittee
in conducting oversight of HUD's management of its HOME
program.
On April 30, 2012, Subcommittee on Oversight and
Investigations Chairman Randy Neugebauer sent a letter to HUD
Secretary Shaun Donovan, informing HUD that its document
production was not fully responsive to the Subcommittee's March
29, 2012 request for HOME program documents.
On May 9, 2012, Chairman Spencer Bachus and Subcommittee on
Oversight and Investigations Chairman Randy Neugebauer sent a
letter to HUD Secretary Shaun Donovan, requesting information
on HUD's conference planning policies and expenditures related
to conferences held by HUD.
On May 16, 2012, the Subcommittee on Oversight and
Investigations met in open session for the purpose of
authorizing and issuing a subpoena duces tecum to compel the
production of records from HUD related to its oversight and
administration of the HOME Investment Partnerships Program.
Because Subcommittee Chairman Randy Neugebauer and Subcommittee
Ranking Member Michael E. Capuano agreed that HUD would
voluntarily produce records to the Subcommittee, the question
on adopting the resolution to authorize and issue a subpoena
duces tecum was never posed to the Subcommittee. The agreement
was memorialized in a May 22, 2012 letter from Subcommittee
Chairman Neugebauer and Ranking Member Capuano to HUD Secretary
Shaun Donovan.
On July 26, 2012, the Committee hosted a briefing conducted
by the Department of Agriculture on a proposal to reform the
rental assistance program administered by the Rural Housing
Service.
On July 31, 2012, the Committee hosted a bipartisan
briefing conducted by the Department of Housing and Urban
Development on administrative solutions to improve affordable
rental housing programs.
Federal Housing Administration (FHA)--Single Family
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to examine the
appropriate role for the FHA in the mortgage finance system,
and the ability of the FHA to manage its mortgage portfolio and
mitigate its risk.
On February 16, 2011 the Subcommittee on Insurance, Housing
and Community Opportunity held a hearing entitled ``Are There
Government Barriers to the Housing Recovery?'' The hearing
focused on the current state of the housing finance market and
how to facilitate the return of private sector capital into the
mortgage markets. FHA Director David Stevens testified on the
current role of FHA in the single family mortgage market, and
presented his views on the appropriate role for FHA in the
future.
On March 2, 2011 the Subcommittee on Insurance, Housing and
Community Opportunity held a hearing entitled ``Legislative
Proposals to End Taxpayer Funding for Ineffective Foreclosure
Mitigation Programs.'' The hearing featured discussion of H.R.
830, the FHA Refinance Program Termination Act, a bill to
rescind all unobligated balances made available for use under
the FHA Refinance Program (pursuant to Mortgagee Letter 2010-23
of the Secretary of HUD).
On May 25, 2011, the Subcommittee on Insurance, Housing and
Community Opportunity held a hearing entitled ``Legislative
Proposals to Determine the Future Role of FHA, RHS and GNMA in
the Single- and Multi-Family Mortgage Markets.'' The hearing
focused on HUD's FHA and USDA's RHS single- and multi-family
programs. The hearing also examined legislative proposals to
improve the financial condition of FHA, RHS and the GNMA, the
agency of HUD that guarantees the timely payment of principal
and interest on securities backing mortgages insured by FHA and
other government agencies. These proposals were designed to
increase the current FHA downpayment requirements, simplifying
the FHA's loan limit calculation formula, and transferring
RHS's current functions into FHA to be run by a new Deputy
Assistant Secretary position.
On September 8, 2011, the Subcommittee on Insurance,
Housing and Community Opportunity held a hearing entitled
``Legislative Proposals to Determine the Future Role of FHA,
RHS and GNMA in the Single- and Multi-Family Mortgage Markets,
Part 2.'' The hearing examined the single- and multi-family
programs of the FHA and the RHS. The hearing also examined
legislative proposals to improve the financial condition of
FHA, RHS, and Ginnie Mae and to better protect taxpayers
against losses from fraudulent or poorly-underwritten loans. In
addition, witnesses discussed the proposed rule on QRMs and the
effect that the rule will have on FHA, RHS, and Ginnie Mae.
On November 7, 2011, Chairman Spencer Bachus along with
Vice Chairman Jeb Hensarling, Subcommittee on Insurance,
Housing and Community Opportunity Chairman Judy Biggert,
Subcommittee on Financial Institutions and Consumer Credit
Chairman Shelley Moore Capito, Subcommittee on Capital Markets
and Government Sponsored Enterprises Chairman Scott Garrett,
Subcommittee on Oversight and Investigations Chairman Randy
Neugebauer, and Subcommittee on Domestic Monetary Policy and
Trade Chairman Ron Paul sent a letter to the conferees
appointed to the conference committee for H.R. 2112, the
Consolidated and Further Continuing Appropriations Act,
expressing their strong opposition to the inclusion of any
provisions in the H.R. 2112 conference report to increase the
loan limits for mortgages insured by the federal government
through the FHA or guaranteed by the GSEs, Fannie Mae and
Freddie Mac.
On December 1, 2011, the Committee held a hearing entitled
``Perspectives on the Health of the FHA Single-family Insurance
Fund'' to examine the FHA's financial status and the actuarial
review of the FHA's Mutual Mortgage Insurance Fund (MMIF) for
Fiscal Year 2011, released by HUD on November 15, 2011.
On May 9, 2012, the Subcommittee on Insurance, Housing and
Community Opportunity held a hearing entitled ``Oversight of
the FHA Reverse Mortgage Program for Seniors'' to examine the
FHA's Home Equity Conversion Mortgage program.
Federal Housing Administration (FHA)--Multi-Family
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to exercise its
oversight authority on the FHA's General Risk and Special Risk
Insurance fund to ensure that the fund does not expose
taxpayers to loss.
On February 16, 2011, the Subcommittee on Insurance,
Housing and Community Opportunity held a hearing entitled ``Are
There Government Barriers to the Housing Recovery?'' The
hearing focused on the current state of the housing finance
market and on how to facilitate the return of private sector
capital into the mortgage markets.
On May 25, 2011, the Subcommittee on Insurance, Housing and
Community Opportunity held a hearing entitled ``Legislative
Proposals to Determine the Future Role of FHA, RHS and GNMA in
the Single- and Multi-Family Mortgage Markets.'' The hearing
focused on HUD's FHA and USDA's RHS single- and multi-family
programs. The hearing also examined legislative proposals to
improve the financial condition of FHA, RHS and the GNMA, the
agency of HUD that guarantees the timely payment of principal
and interest on securities backing mortgages insured by FHA and
other government agencies. These proposals were designed to
increase the current FHA downpayment requirements, simplifying
the FHA's loan limit calculation formula, and transferring
RHS's current functions into FHA to be run by a new Deputy
Assistant Secretary position.
On September 8, 2011, the Subcommittee on Insurance,
Housing and Community Opportunity held a hearing entitled
``Legislative Proposals to Determine the Future Role of FHA,
RHS and GNMA in the Single- and Multi-Family Mortgage Markets,
Part 2.'' The hearing examined the single- and multi-family
programs of the FHA and the RHS. The hearing also examined
legislative proposals to improve the financial condition of
FHA, RHS, and Ginnie Mae and to better protect taxpayers
against losses from fraudulent or poorly-underwritten loans. In
addition, witnesses discussed the proposed rule on QRMs and the
effect that the rule will have on FHA, RHS, and Ginnie Mae.
On June 7, 2012, the Subcommittee on Insurance, Housing and
Community Opportunity held a hearing entitled ``Oversight of
the Federal Housing Administration's Multifamily Insurance
Programs.'' This hearing explored the Federal Housing
Administration's multifamily housing loan insurance programs.
The Subcommittee also examined risks posed by these programs
and potential reforms.
Government Foreclosure Mitigation Programs
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to rescind any
unspent and unobligated balances currently committed to the
Making Home Affordable Programs.
On February 16, 2011, the Subcommittee on Insurance,
Housing and Community Opportunity held a hearing entitled ``Are
there Government Barriers to the Housing Recovery?'' The
hearing focused on the current state of the housing finance
market and how to facilitate the return of private sector
capital into the mortgage markets. An issue Members raised
during the hearing was the extended time periods needed to
complete foreclosure proceedings, and the effect of such
prolonged foreclosures on the housing recovery.
On February 28, 2011, Representative Patrick McHenry
introduced H.R. 839, the HAMP Termination Act, which would
terminate the authority of the Treasury Department to provide
any new assistance to homeowners under the Home Affordable
Modification Program (HAMP) under the Emergency Economic
Stabilization Act of 2008, while preserving any assistance
already provided to HAMP participants on a permanent or trial
basis. The ``Making Home Affordable'' initiative is a
collection of programs designed by the Obama Administration to
assist at-risk homeowners facing difficulty paying their
mortgages. The signature piece of the Administration's overall
``Making Home Affordable'' initiative on foreclosure prevention
is HAMP, which is a federally funded mortgage modification
program that provides financial incentives to participating
mortgage servicers to modify the mortgages of eligible
homeowners. On March 2, 2011, the Subcommittee on Insurance,
Housing and Community Opportunity held a legislative hearing on
H.R. 839. The bill was ordered favorably reported by the
Committee on March 9, 2011, and passed the House on March 29,
2011.
On August 11, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a briefing for Committee staff
with representatives from HUD on the status of the Emergency
Homeowners' Loan Program (EHLP). The Dodd-Frank Act authorized
$1 billion for EHLP to provide zero-interest loans of up to
$50,000 to borrowers who cannot pay their mortgages because of
unemployment or a reduction in income. HUD's representatives
provided an update on the status of EHLP's implementation and
the number of applicants to the program before the program's
September 30, 2011 application deadline.
On October 5, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a briefing for Committee staff
with representatives from HUD on the EHLP. HUD's
representatives provided an update on the number of applicants
to the program before the application period closed on
September 30, 2011, and the expected costs and success rates
for those applications.
On October 6, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a hearing entitled ``The Obama
Administration's Response to the Housing Crisis.'' This hearing
examined the Administration's initiatives for refinancing
underwater and delinquent mortgages, foreclosure mitigation,
and other housing revitalization efforts. The hearing also
focused on ideas outlined by President Obama in his September
8, 2011, address to a Joint Session of Congress, including a
$15 billion community redevelopment grant initiative called
``Project Rebuild'' and proposed modifications the existing
HARP. Witnesses testified on the successes and failures of
these government-funded initiatives, and on how to promote the
return of private sector capital into the housing market.
Section 8 Housing Choice Voucher Program
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
rising costs of the Section 8 program, review changes that can
be made to the program, and assess the needs of the
administrators in operating the program as well as the needs of
voucher recipients.
On June 23, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a hearing entitled ``Legislative
Proposals to Reform the Housing Choice Voucher Program.'' This
hearing focused on a legislative proposal aimed at making
improvements to HUD's Housing Choice Voucher Program that
reduce or streamline duplicative or onerous regulations. The
hearing also examined ways in which the program can be improved
to reduce costs, better serve more participants, and enable
Public Housing Agencies and property owners/mangers to reduce
unnecessary burdens associated with the program.
On October 13, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a hearing entitled ``The Section
8 Savings Act of 2011: Proposals to Promote Economic
Independence for Assisted Families.'' The hearing focused on
revisions to the Section 8 reform legislation discussed at a
previous Subcommittee hearing on June 23, 2011. The revised
language seeks to link housing assistance with supportive
services for residents such as job training, financial
literacy, and educational opportunities in order to encourage
self-sufficiency.
On November 3, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a hearing entitled ``The Obama
Administration's Rental Assistance Demonstration Proposal.''
This topic of the hearing was the Obama Administration's Rental
Assistance Demonstration (RAD) proposal, which would allow for
the voluntary conversion of units in public housing to long-
term project-based Section 8 contracts in order to access
private capital for preservation and redevelopment activities.
Housing Counseling
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to conduct a
comprehensive review of current housing counseling programs
within HUD and NeighborWorks, including how Federal, State,
private and non-profit use housing counseling funds.
On September 14, 2011, Subcommittee on Insurance, Housing
and Community Opportunity held a hearing entitled ``HUD and
NeighborWorks Housing Counseling Oversight.'' The hearing
reviewed HUD and NeighborWorks' federal housing counseling
programs, as well as funding and reform measures, including
implementation of the housing counseling provisions of the
Dodd-Frank Act.
Government National Mortgage Association
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
GNMA to determine whether its mission and/or authority meets
contemporary housing needs that promote affordable housing.
On September 8, 2011, the Subcommittee on Insurance,
Housing and Community Opportunity held a hearing entitled
``Legislative Proposals to Determine the Future Role of FHA,
RHS and GNMA in the Single-and Multi-Family Mortgage Markets,
Part 2.'' The hearing examined the single- and multi-family
programs of the FHA and the RHS. The hearing also examined
legislative proposals to improve the financial condition of
FHA, RHS, and Ginnie Mae and to better protect taxpayers
against losses from fraudulent or poorly-underwritten loans. In
addition, witnesses discussed the proposed rule on QRMs and the
effect that the rule will have on FHA, RHS, and Ginnie Mae.
Public Housing
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review HUD's
public housing programs with the goal of increasing their
efficiency.
On November 3, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a hearing entitled ``The Obama
Administration's Rental Assistance Demonstration Proposal.''
The topic of the hearing was the Obama Administration's RAD
proposal, which would allow for the voluntary conversion of
units in public housing to long-term project-based Section 8
contracts in order to access private capital for preservation
and redevelopment activities.
Mortgage Broker Licensing and Oversight
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to monitor
implementation of the SAFE Act and other changes made to the
mortgage originator licensing and registry system with the goal
of enhancing homebuyer protections.
On July 13, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a hearing entitled ``Mortgage
Origination: The Impact of Recent Changes on Homeowners and
Businesses.'' This hearing examined a range of mortgage
origination laws and regulations that impact consumers and
mortgage industry participants as well as related reforms for
consideration by Congress, federal agencies, or states. The
hearing also examined legislative proposals to clarify the
application of the Real Estate Settlement Procedures Act
(RESPA), particularly as applied to the payment of fees to real
estate brokers and agents by home warranty companies, including
H.R. 2446, the RESPA Home Warranty Clarification Act of 2011,
which was introduced by Subcommittee on Insurance, Housing and
Community Opportunity Chairman Judy Biggert on July 7, 2011.
H.R. 2446 would amend current law to explicitly state that home
warranties are permissible RESPA settlement services.
On June 28, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a briefing for Committee staff
with representatives from HUD on the implementation of the
final rule for the SAFE Act's minimum standards for the state
licensing and registration of residential mortgage loan
originators and the requirements for operating the Nationwide
Mortgage Licensing System and Registry (NMLSR). The final rule
was published in Federal Register on June 30, 2011.
Loan Originator Compensation
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to examine the
implementation of proposed rules issued by the Federal Reserve
governing mortgage origination compensation, as well as the
interaction of existing real estate settlement rules with rules
mandated by the Dodd-Frank Act.
On July 13, 2011, the Subcommittee on Insurance, Housing
and Community Opportunity held a hearing entitled ``Mortgage
Origination: The Impact of Recent Changes on Homeowners and
Businesses.'' This hearing examined a range of mortgage
origination laws and regulations that impact consumers and
mortgage industry participants as well as related reforms for
consideration by Congress, federal agencies, or states. The
hearing also examined legislative proposals to clarify the
application of the RESPA, particularly as applied to the
payment of fees to real estate brokers and agents by home
warranty companies, including H.R. 2446, the RESPA Home
Warranty Clarification Act of 2011, which was introduced by
Subcommittee on Insurance, Housing and Community Opportunity
Chairman Judy Biggert on July 7, 2011. H.R. 2446 would amend
current law to explicitly state that home warranties are
permissible RESPA settlement services.
Homelessness
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to consider
alternatives to improve coordination or consolidate Federal
homelessness programs in order to reduce costs and improve
oversight and transparency. The Committee will review the
effectiveness of HUD programs and services for homeless
veterans, children, youth, and families.
On December 15, 2011, the Subcommittee on Insurance,
Housing and Community Opportunity held a hearing entitled ``The
Homeless Children and Youth Act of 2011: Proposals to Promote
Economic Independence for Homeless Children and Youth.'' H.R.
32 would amend the definition of ``homeless person'' in Title I
of the McKinney-Vento Homeless Assistance Act (P.L. 107-110) to
include children and youth who are verified as homeless by
local educational agencies or social service agencies that
receive federal funding. Inconsistent definitions of ``homeless
person'' make it difficult for federal agencies--most notably
HUD--to accurately estimate the number of homeless persons.
H.R. 32 would harmonize these definitions, which would allow
HUD to better estimate the number of homeless persons who need
housing assistance and services. A consistent definition of
``homeless person'' among federal agencies would also allow
more children and youth to receive housing assistance and
services.
On September 14, 2012, the Subcommittee on Insurance,
Housing and Community Opportunity held a hearing entitled
``Housing for Heroes: Examining How Federal Programs Can Better
Serve Veterans.'' This hearing examined the barriers that
homeless and low-income veterans face in obtaining housing
assistance and services from federal programs. This hearing
also examined two legislative proposals that addressed issues
facing homeless and low-income veterans: H.R. 6111, the
Vulnerable Veterans Housing Reform Act of 2012, introduced by
Rep. Joe Heck (R-NV) on July 12, 2012, and H.R. 6381, the
Housing Assistance for Veterans Act of 2012, a discussion draft
offered by Rep. Al Green (D-TX).
Review of the Manufactured Housing Improvement Act
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
federal laws and regulations in place governing the processes
and standards under which manufactured homes are built and
maintained to ensure that all aspects of the law are being
fully and properly implemented by HUD.
On November 29, 2011, the Subcommittee on Insurance,
Housing and Community Opportunity held a field hearing in
Danville, Virginia entitled, ``The State of Manufactured
Housing.'' The hearing provided a general overview of
manufactured housing and examined how tighter lending standards
have affected borrowers seeking to purchase manufactured homes.
In addition, the hearing examined how HUD monitors and enforces
its federal standards for the construction and safety of
manufactured homes.
On February 1, 2012, the Subcommittee on Insurance, Housing
and Community Opportunity held a hearing entitled
``Implementation of the Manufactured Housing Improvement Act''
to examine the manufactured housing industry and HUD's efforts
to implement the Manufactured Housing Improvement Act of 2000.
FHA Refinance Program
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to return to
taxpayer the $8 billion in Troubled Asset Relief Program (TARP)
funds that has been set aside for the FHA Refinance Program.
On February 28, 2011, Representative Robert Dold introduced
H.R. 830, the FHA Refinance Program Termination Act. The
legislation would rescind all unobligated balances made
available for the program by Title I of the Emergency Economic
Stabilization Act (P.L. 110-343) that have been allocated for
use under the FHA Refinance Program (pursuant to Mortgagee
Letter 2010-23 of the Secretary of HUD). The bill would also
terminate the program and void the Mortgagee Letter pursuant to
which it was implemented, with concessions made for current
participants in the program. The FHA Refinance Program provides
refinancing options through the FHA mortgage insurance program
to homeowners who owe more in mortgage principal than their
property's current value. On March 2, 2011, the Subcommittee on
Insurance, Housing and Community Opportunity held a legislative
hearing on H.R. 830. The bill was ordered favorably reported by
the Committee on March 3, 2011, and passed the House on March
10, 2011.
Emergency Homeowner Relief Fund
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to rescind the
unexpended and unobligated amounts dedicated to the Emergency
Homeowner Relief Fund.
On February 17, 2011, Chairman Spencer Bachus and
Subcommittee on Insurance, Housing and Community Opportunity
Chairwoman Judy Biggert sent a letter to the HUD regarding
HUD's proposed Interim Rule on the EHLP (Docket No. FR-5470-J-
OI). The letter expressed concern that the underlying program
was an unwise expansion of government's role in the housing
market that is both costly to taxpayers and potentially
injurious to the at-risk homeowners it purports to help. The
letter also noted that the EHLP does nothing to address the
underlying problem these at-risk homeowners face--the loss of
or inability to find a job--and therefore does not help get our
economy back on track. Further, the letter indicated Chairman
Bachus and Chairwoman Biggert's intention that Congress take
action this calendar year to repeal the EHLP's reauthorization
and rescind any unobligated balances for the program, and thus
recommended that work on the proposed Interim Rule for EHLP not
be finalized while Congress pursues these important taxpayer
protection goals.
On February 28, 2011, Representative Jeb Hensarling
introduced H.R. 836, the Emergency Mortgage Relief Program
Termination Act, to rescind all unobligated balances made
available for the Emergency Mortgage Relief Program and
terminate the program. The Emergency Homeowner Relief Fund was
established under Section 1496 of the Dodd-Frank Act to provide
loans or credit advances to borrowers who cannot pay their
mortgages because of unemployment or reduction in income. On
March 2, 2011, the Subcommittee on Insurance, Housing and
Community Opportunity held a legislative hearing on H.R. 836.
On March 3, 2011, the Committee ordered the bill favorably
reported, and on March 11, 2011, the bill was approved by the
House.
International Monetary Policy and Trade
Job Creation and U.S. Competitiveness
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to examine
United States international monetary and trade policies to
ensure that those policies support the ability of U.S.
companies to be competitive in the international marketplace,
thereby promoting domestic job creation and economic
opportunity.
On July 27, 2011, the Subcommittee on International
Monetary Policy and Trade held a hearing entitled ``The Impact
of the World Bank and Multilateral Development Banks on U.S.
Job Creation.'' This hearing examined how Multilateral
Development Bank (MDB) assistance to developing nations
prevents the proliferation of terrorism and instability while
contributing to national economic growth through infrastructure
projects and increased employment. The hearing also explored
how MDB assistance helps developing nations to transition into
emerging markets, at which time they become open economies full
of opportunities for U.S. exports and other consumer services.
Export-Import Bank of the United States
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to consider the
reauthorization of the Export-Import Bank and examine its
policies and programs in supporting the global competitiveness
of U.S. companies, small and large, particularly given the
liquidity challenges American businesses currently face.
On March 10, 2011, the Subcommittee on International
Monetary Policy and Trade held a hearing entitled ``The Role of
the Export-Import Bank in U.S. Competitiveness and Job
Creation.'' The purpose of the hearing was to examine the role
of the Export-Import Bank in fostering job growth by helping
U.S. companies compete in the international export market. The
hearing focused on how to improve the operations of the Export-
Import Bank to foster job growth by supporting U.S. companies
as they export to international markets.
On March 10, 2011, Chairman Spencer Bachus and Subcommittee
on International Monetary Policy and Trade Chairman Gary Miller
sent a letter to President Obama urging him to submit
nominations to the Senate to fill two vacancies on the Export-
Import Bank Board of Directors. On July 20, 2011, an automatic
six-month extension of these board seats will lapse, and the
Board of Directors will not be able to achieve a quorum,
precluding the Export-Import Bank from approving any
transactions.
On April 9, 2011, Chairman Spencer Bachus, Subcommittee on
International Monetary Policy and Trade Chairman Gary Miller,
Ranking Member Barney Frank, and Subcommittee Ranking Member
Carolyn McCarthy sent a letter to Secretary Geithner asking him
to use Treasury's authority under section 635(a)(3) of the
Export-Import Bank Charter to match foreign financing when
foreign sales to the United States are being supported by
official export credit through a foreign Export Credit Agency
(ECA).
On May 24, 2011, the Subcommittee on International Monetary
Policy and Trade held a hearing entitled ``Legislative
Proposals on Securing American Jobs Through Exports: Export-
Import Bank Reauthorization.'' This hearing examined a
discussion draft of legislation to reauthorize the charter of
the Export-Import Bank of the United States.
On June 1, 2011, the discussion draft was introduced by
Subcommittee on International Monetary Policy and Trade
Chairman Gary Miller as H.R. 2072. On June 2, 2011, the
Subcommittee on International Monetary Policy and Trade met in
open session and ordered H.R. 2072, as amended, favorably
reported to the Committee by a voice vote. On June 22, 2011,
the Committee met in open session an ordered H.R. 2072, as
amended, favorably reported to the House by a voice vote.
International Trade
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to oversee
existing trade programs, and consider policies within the
Committee's jurisdiction to promote U.S. international trade so
that American companies are globally competitive.
On January 25, 2012, Chairman Spencer Bachus and
Subcommittee on International Monetary Policy and Trade
Chairman Gary Miller sent a letter to President Obama on the
Administration's proposal to consolidate the trade-related
functions of several federal agencies.
On April 27, 2012, Chairman Spencer Bachus sent a letter to
Treasury Secretary Geithner asking that the Administration urge
the government of Egypt to reconsider actions that could have a
negative impact on foreign direct investment in Egypt and cause
substantial harm to relations between the U.S. and Egypt as
well as relations between Egypt and Israel.
Market Access
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to assess
opportunities to expand market access for U.S. companies and
the financial services sector, and to promote policies that can
bring about reciprocal market access with developing nations
that currently limit or prevent U.S. firms from entering and
operating within their national borders.
On February 25, 2011, the Engage China Coalition,
comprising twelve financial services trade associations,
briefed bipartisan Committee staff on the Coalition's efforts
to improve access to the Chinese financial services market.
China's population represents a growing consumer base for
financial services firms. However, various restrictions prevent
the level of access that would allow U.S. firms to effectively
serve this growing segment.
On April 26, 2012, the Subcommittee on International
Monetary Policy and Trade held a bipartisan staff briefing with
the Treasury Department on the upcoming Strategic and Economic
Dialogue between the U.S. and China.
On May 16, 2012, the Subcommittee on International Monetary
Policy and Trade held a hearing entitled ``Increasing Market
Access for U.S. Financial Firms in China: Update on Progress of
the Strategic & Economic Dialogue'' to examine the access that
U.S. financial firms have to Chinese financial markets and to
provide an update on the Strategic and Economic Dialogue.
Extractive Industries and Conflict Minerals
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to monitor the
implementation of provisions in title XV of the Dodd-Frank Act
imposing new disclosure requirements relating to so-called
``conflict minerals'' and ``extractive industries,'' to ensure
that the underlying objectives of the provisions are met but
that unnecessary compliance burdens for U.S. firms are
minimized.
On January 25, 2011, Chairman Spencer Bachus sent a letter
to SEC Chairman Mary Schapiro requesting that the SEC consider
extending the public comment period for the proposed rule to
implement Section 1502 of the Dodd-Frank Act, which requires
U.S.-listed companies to disclose to the SEC any use of
minerals that originated in the Democratic Republic of Congo
and neighboring countries. The SEC ultimately extended the
comment period for thirty days.
On March 4, 2011, Chairman Spencer Bachus and Subcommittee
on International Monetary Policy and Trade Chairman Gary Miller
sent a letter to SEC Chairman Schapiro expressing concerns
about the implementation of Section 1504 of the Dodd-Frank Act.
Section 1504 requires the disclosure of certain payments made
by natural resource companies to governments for the commercial
development of oil, natural gas or minerals. The letter
expressed concerns that if not implemented properly, Section
1504 could disadvantage U.S.-listed companies when they compete
for extractive industry contracts. The letter asked the SEC to
consider using its general exemptive authority under Section 36
of the Exchange Act to exempt reporting of payments when
disclosure of such information would violate foreign law.
On July 28, 2011, Chairman Spencer Bachus, along with
Subcommittee on International Monetary Policy and Trade
Chairman Gary Miller, Subcommittee on International Monetary
Policy and Trade Vice Chairman Robert Dold, and Representative
Steve Stivers sent a letter to SEC Chairman Mary Schapiro
requesting a phased implementation of regulations effectuating
Section 1502 of the Dodd-Frank, which requires publicly traded
U.S. companies to report annually on their efforts to verify
that minerals used in their products were not taxed or
controlled by rebel groups in the Democratic Republic of Congo,
Act. The purpose of this letter was to ensure that U.S.
companies are able to comply and are not competitively
disadvantaged in the global marketplace.
On May 10, 2012, the Subcommittee on International Monetary
Policy and Trade held a hearing entitled ``The Costs and
Consequences of Dodd-Frank Section 1502: Impacts on America and
the Congo.'' This hearing examined the effects of the conflict
minerals provisions of the Dodd-Frank Act on Congolese citizens
and U.S. businesses.
On August 10, 2012, Chairman Bachus, Subcommittee Chairman
Miller, and 49 other Representatives sent a bipartisan letter
to SEC Chairman Mary Schapiro regarding Section 1502 of the
Dodd-Frank Act. The letter notes the Members' support for the
fundamental goal of preventing the exploitation of minerals for
the purpose of funding human rights violations in the
Democratic Republic of the Congo. The letter also expresses
concern that, if poorly implemented, Section 1502 could create
costly unintended consequences for American companies and for
legitimate Congolese miners without producing benefits for the
Congolese people.
On August 21, 2012, Chairman Bachus sent a letter to SEC
Chairman Mary Schapiro asking the SEC to use the flexibility
provided by the Dodd-Frank Act to issue a final rule relating
to Section 1504 that is consistent with section 23(a)(2) of the
Securities Exchange Act of 1934, which prohibits the SEC from
adopting any rule that imposes a burden on competition not
necessary or appropriate in the furtherance of the Act.
Annual Report and Testimony by the Secretary of the Treasury on
International Monetary Fund Reform and the State of the
International Financial System
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to 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).
On March 15, 2012, the Subcommittee on International
Monetary Policy and Trade held a bipartisan staff briefing with
the Congressional Research Service on the Eurozone crisis and
the role of the IMF. This briefing was in preparation for
Treasury Secretary Timothy Geithner's annual testimony on the
state of the international financial system.
On March 20, 2012, the Committee held a hearing entitled
``Hearing to Receive the Annual Testimony of the Secretary of
the Treasury on the State of the International Financial
System.'' At this hearing, Secretary Geithner delivered his
testimony on the state of the international financial system.
Secretary Geithner focused his testimony on the Eurozone
crisis, the efforts made by Europeans to resolve the crisis,
the efforts of the IMF to mitigate the crisis, and the role of
the United States in resolving the crisis both bilaterally and
through the IMF.
Conduct of the International Financial Institutions (IFIs) and Possible
U.S. Contributions
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review any
Administration request that the U.S. contribute to the general
capital increases of the World Bank, Inter-American Development
Bank, Asian Development Bank, African Development Bank,
European Bank for Reconstruction and Development, and the
International Finance Corporation.
On February 18, 2011, representatives of the Department of
Treasury's Office of International Affairs briefed bipartisan
Committee staff on the Administration's FY 2012 budget proposal
for Treasury's International portfolio. In its FY2012 budget,
the Administration requested that the Committee authorize
funding for the U.S. commitment to replenish the concessional
loan windows at the multilateral development banks and to fund
a capital increase at these institutions.
On May 26, 2011, representatives from the African
Development Bank (AfDB) held a roundtable discussion with
members of the International Monetary Policy and Trade
Subcommittee. The discussion was sponsored by International
Monetary Policy and Trade Subcommittee Chairman Gary Miller,
Subcommittee Vice Chairman Robert Dold, and Ranking Member
Carolyn McCarthy. The purpose of the roundtable was to discuss
the general capital increase request for the African
Development Bank as well as AfDB President Kaberuka's efforts
to improve transparency and accountability at the Bank.
On June 14, 2011, the Subcommittee on International
Monetary Policy and Trade held a hearing entitled ``The Role of
the U.S. in the World Bank and Multilateral Development Banks:
Bank Oversight and Requested Capital Increases.'' This hearing
examined the role of the U.S. in the multilateral development
banks and the benefits of its participation. It also examined
the mission and operations of the multilateral development
banks, Treasury's oversight of these institutions, and the
Administration's request to fund the U.S. contribution to these
institutions.
On July 27, 2011, the Subcommittee on International
Monetary Policy and Trade held a hearing entitled ``The Impact
of the World Bank and Multilateral Development Banks on U.S.
Job Creation.'' The hearing focused on how Multilateral
Development Bank lending and assistance to middle-income and
poor countries around the world contributes to the U.S.
employment base. The hearing also explored how MDB assistance
helps developing nations to transition into emerging markets,
at which time they become open economies and promising markets
for U.S. exports and other consumer services.
On September 21, 2011, the Subcommittee on International
Monetary Policy and Trade held a hearing entitled ``The Impact
of the World Bank and Multilateral Development Banks on
National Security.'' This hearing examined the effect on U.S.
national security of lending and grants provided by
Multilateral Development Banks to middle-income and poor
countries, and how that assistance helps developing countries
become stable nations that can help counteract the
proliferation of terrorism and other threats to U.S. national
security.
On October 4, 2011, the Subcommittee on International
Monetary Policy and Trade held a hearing entitled ``The World
Bank and Multi Lateral Development Banks' Authorization.'' This
hearing examined a discussion draft of legislation to authorize
general capital increases for the International Bank for
Reconstruction and Development, the Inter-American Development
Bank, the African Development Bank, and the European Bank for
Reconstruction and Development.
On October 12, 2011, the Subcommittee on International
Monetary Policy and Trade met in open session and ordered the
discussion draft of H.R. 3188, as amended, favorably to the
Committee by a voice vote. On October 13, 2011, the discussion
draft was introduced by Representative Robert Dold as H.R.
3188.
On December 12, 2011, the Subcommittee on International
Monetary Policy and Trade held a bipartisan staff briefing with
the Treasury Department on legislative mandates relating to
Myanmar.
On January 17, 2012, the Subcommittee on International
Monetary Policy and Trade held a bipartisan staff briefing with
the Treasury Department on a new World Bank financing
instrument known as ``Program for Results.''
On February 15, 2012, the Subcommittee on International
Monetary Policy and Trade held a bipartisan staff briefing with
the Treasury Department on the President's budget request for
international programs.
On February 21, 2012, the Subcommittee on International
Monetary Policy and Trade held a bipartisan staff briefing with
the Treasury Department on the Office of Technical Assistance
and its agenda for 2012.
On May 23, 2012, the Subcommittee on International Monetary
Policy and Trade held a bipartisan staff briefing with Rajat
Nag, Managing Director of the Asian Development Bank, on the
Asian Development Bank's activities.
On March 28, 2012, the Subcommittee on International
Monetary Policy and Trade held a bipartisan staff briefing with
Emmanuel Mbi, Chief Operating Officer of the African
Development Bank, on the African Development Bank's activities.
On July 25, 2012, the Committee held a bipartisan Member
Meeting with incoming World Bank President Dr. Jim Yong Kim to
discuss Dr. Kim's priorities for promoting global economic
development in his capacity as President of the World Bank.
On August 22, 2012, Chairman Bachus and Ranking Member
Frank sent a letter to Treasury Secretary Geithner asking that
the Administration use its leadership at the International
Financial Institutions to emphasize fiscal transparency,
systems of accountability, and respect for human rights when
these institutions consider engagement with Burma, and that the
institutions pay close attention to the needs of the Burmese
people.
International Monetary Fund (IMF)
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to assess the
IMF's actions during and after the financial crisis to
determine how best to leverage U.S. resources through this
multilateral institution.
On March 6, 2012, the Subcommittee on International
Monetary Policy and Trade held a bipartisan Member briefing
with Madame Christine Lagarde, Managing Director of the IMF, on
the IMF's activities during the Eurozone crisis.
Eurozone Distress
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to monitor the
economic distress in the Eurozone stemming from unsustainable
sovereign debt in several European countries, and its impact on
the United States and the global economy. It further calls on
the Committee to examine actions taken by the IMF, the European
Union, and other nations to address the sovereign debt issues
in the Eurozone.
On October 25, 2011, the Subcommittee on International
Monetary Policy and Trade held a hearing entitled ``The
Eurozone Crisis and Implications for the United States.'' The
purpose of the hearing was to examine the effect that Europe's
economic problems may have on the U.S. economy; in particular,
the effect of those problems on trade and employment. The
hearing also examined European policy options under
consideration for containing the crisis and the role of the
U.S. in these decisions.
On December 9, 2011, the Subcommittee on International
Monetary Policy and Trade held a bipartisan staff briefing with
the Congressional Research Service on the Eurozone crisis. This
briefing was in advance of a bipartisan Member briefing on the
same topic with Lael Brainard, Under Secretary for
International Affairs, Department of the Treasury.
On December 14, 2011, the Subcommittee on International
Monetary Policy and Trade held a bipartisan Member briefing
with Under Secretary of the Treasury for International Affairs
Lael Brainard on the Eurozone crisis.
On April 11, 2012, the Subcommittee on International
Monetary Policy and Trade held a bipartisan staff briefing with
Charles Collyns, Assistant Secretary of the Treasury, on the
Eurozone crisis and the role of the IMF.
On June 7, 2012, the Committee on Financial Services held a
bipartisan Member briefing with the Prime Minister of Finland,
Jyrki Katainen, on Finnish-American issues as well as the
Eurozone debt crisis.
On June 28, 2012, the Committee on Financial Services held
a bipartisan Member briefing with Lael Brainard, Under
Secretary of the Treasury for International Affairs, to discuss
the Eurozone debt crisis, the G-20 meetings in Mexico, and the
role of the U.S. in addressing the crisis.
On November 28, 2012, the Subcommittee on International
Monetary Policy and Trade held a bipartisan Member briefing
with Lael Brainard, Under Secretary of the Treasury for
International Affairs, to discuss the continuing economic
crisis in Europe and the transitions sparked by the Arab Spring
in the Middle East/North Africa region. Under Secretary
Brainard updated Members on U.S. engagement at the
international financial institutions, including the IMF and the
multilateral development banks, and the role the institutions
are playing in these regions.
Global Capital Flows
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to monitor the
flow of capital globally and the implications to the United
States of factors that threaten global economic stability.
On October 13, 2011, the Subcommittee on International
Monetary Policy and Trade held a hearing entitled ``The U.S.
Housing Finance System in the Global Context: Structure,
Capital Sources, and Housing Dynamics.'' The U.S.
securitization process has facilitated the flow of private
investment capital from investors around the world to fund U.S.
home mortgages. This hearing focused on the relationship
between the health of the U.S. housing finance system and
global financial stability, including foreign involvement in
the U.S. housing finance system and the motivations of foreign
investors to purchase residential mortgage-backed securities.
Domestic Monetary Policy
The Economy and Jobs
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review
changes in the economy that affect the relationship between
monetary policy, government expenditures, deficits, employment,
and economic growth, and to examine the effectiveness and
consequences of measures undertaken by the Federal Reserve and
the executive branch on economic growth and employment.
On January 26, 2011, the Committee held a hearing entitled
``Promoting Economic Recovery and Job Creation: The Road
Forward.'' The hearing examined potential barriers to job
creation and economic growth erected by the Dodd-Frank Act. At
the hearing, academics and business owners testified as to how
the Volcker Rule could adversely affect the availability of
investment capital and impede job growth and, more generally,
how the Act could harm the competitiveness of the U.S.
financial markets.
On February 9, 2011, the Subcommittee on Domestic Monetary
Policy and Technology held a hearing entitled ``Can Monetary
Policy Really Create Jobs?'' The hearing examined whether the
Federal Reserve's policies have been effective in creating jobs
and stabilizing the economy.
On March 30, 2011, the Subcommittee on Oversight and
Investigations held a hearing on ``The Costs of Implementing
the Dodd-Frank Act: Budgetary and Economic.'' The hearing
reviewed the direct cost to the federal government of
implementing the Dodd-Frank Act, as well as the Act's impact on
job creation, capital formation and compliance costs for
regulated entities. Testimony was received from regulators,
academics and the Congressional Budget Office (CBO).
On April 14, 2011, the Subcommittee on Oversight and
Investigations held a hearing entitled ``Oversight of the
Financial Stability Oversight Council.'' Witnesses from the
CFTC, Treasury Department, National Association of Insurance
Commissioners (NAIC), Federal Reserve, SEC, FDIC, and OCC
testified on their respective agencies' role on the Council,
and regulatory activities related to Dodd-Frank implementation.
Members voiced concerns that a failure to sequence and
coordinate U.S. regulatory action with efforts in other nations
could adversely affect the ability of U.S. financial
institutions to compete, negatively affecting economic growth
and job creation.
On July 12, 2011, the Congressional Research Service
briefed bipartisan Committee staff on the state of the U.S.
economy and the conduct of monetary policy in preparation for
the hearing the next day at which Federal Reserve Board
Chairman Ben Bernanke presented the Board's semi-annual report
on those subjects.
On July 13, 2011, the Committee held a hearing with Federal
Reserve Chairman Ben Bernanke entitled ``Monetary Policy and
the State of the Economy.'' The purpose of this hearing was to
receive the semi-annual report to Congress on monetary policy
and the state of the economy.
On June 28, 2012, the Subcommittee on Domestic Monetary
Policy and Technology held a hearing entitled ``Fractional
Reserve Banking and the Federal Reserve: The Economic
Consequences of High-Powered Money.'' The hearing examined
fractional reserve banking, its relationship to monetary
policy, and its effect on the economy.
On August 2, 2012, the Subcommittee on Domestic Monetary
Policy and Technology held a hearing entitled ``Sound Money:
Parallel Currencies and the Roadmap to Monetary Freedom.'' The
hearing examined parallel currencies and alternative forms of
money, the effects of parallel currencies on the economy and
monetary policy, and the obstacles that prevent the circulation
of alternative forms of money.
On September 21, 2012, the Subcommittee on Domestic
Monetary Policy and Technology held a hearing entitled ``The
Price of Money: Consequences of the Federal Reserve's Zero
Interest Rate Policy'' to examine the role that interest rates
play in resource allocation, economic growth, and economic
crises; the effects of interest rates on inflation and the
purchasing power of the dollar; and the impact of the Federal
Reserve's zero interest rate policy on investors, savers, and
the economy.
Conduct of Monetary Policy by the Board of Governors of the Federal
Reserve System
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to perform its
statutory responsibility in overseeing the Federal Reserve
Board's conduct of monetary policy.
On February 9, 2011, the Subcommittee on Domestic Monetary
Policy and Technology held a hearing entitled ``Can Monetary
Policy Really Create Jobs?'' The hearing examined whether the
Federal Reserve's policies have been effective in creating jobs
and stabilizing the economy.
On March 2, 2011, the Committee held a hearing entitled
``Monetary Policy and the State of the Economy,'' to receive
Federal Reserve Board Chairman Ben Bernanke's semi-annual
report to Congress on monetary policy and the state of the
economy. Chairman Bernanke described an economy that is growing
slowly, with unemployment remaining high, and inflation
expectations remaining low. In the monetary policy overview,
Chairman Bernanke detailed the Fed's decision to engage in
``quantitative easing'' as a tool for conducting monetary
policy when the Fed funds rate is effectively at zero.
On March 17, 2011, the Subcommittee on Domestic Monetary
Policy and Technology held a hearing entitled ``The
Relationship of Monetary Policy and Rising Prices.'' The
hearing examined the role that an overly accommodative Federal
Reserve monetary policy can have in fueling inflationary
pressures.
On July 26, 2011, the Subcommittee on Domestic Monetary
Policy and Technology held a hearing entitled ``Impact of
Monetary Policy on the Economy: A Regional Fed Perspective on
Inflation, Unemployment, and QE3.'' The purpose of this hearing
was to receive a regional Federal Reserve Bank perspective on
inflation, unemployment, monetary policy actions and the
possibility of further liquidity operations.
On September 28, 2011, the Federal Reserve briefed
bipartisan Committee staff on two issues: its recently
announced program to buy long-term Treasuries in an attempt to
decrease long-term interest rates; and its dollar liquidity
swap lines executed with foreign central banks.
On February 28, 2012, the Congressional Research Service
held a bipartisan staff briefing on the state of the U.S.
economy and the conduct of monetary policy. The briefing was
held in preparation for the hearing at which the Federal
Reserve Chairman testified on the state of the economy and the
Federal Reserve Board's conduct of monetary policy.
On February 29, 2012, the Committee held a hearing entitled
``Monetary Policy and the State of the Economy,'' to receive
Federal Reserve Chairman Ben Bernanke's semi-annual report to
Congress on monetary policy and the state of the economy. In
his testimony on the state of the economy Chairman Bernanke
detailed the economy's slow rate of growth, high unemployment,
and low inflation expectations. In the monetary policy
overview, Chairman Bernanke explained the Federal Open Market
Committee's decision to provide additional monetary
accommodation over the past six months, including changes to
its forward-rate guidance and adjustments to the Federal
Reserve's holding of Treasury and other agency securities.
On March 23, 2012, the Congressional Research Service held
a bipartisan staff briefing on the Federal Reserve's response
to the Eurozone debt crisis, and, in particular, the Federal
Reserve's liquidity swaps with foreign central banks.
On March 27, 2012, the Subcommittee on Domestic Monetary
Policy and Technology held a hearing entitled ``Federal Reserve
Aid to the Eurozone: Its Impact on the U.S. and the Dollar'' to
identify whether the Federal Reserve had provided assistance to
the Eurozone during its sovereign debt crisis.
On May 8, 2012, the Subcommittee on Domestic Monetary
Policy and Technology held a hearing entitled ``Improving the
Federal Reserve System: Examining Legislation to Reform the Fed
and Other Alternatives,'' to examine six legislative proposals
to either reform or abolish the Federal Reserve System.
On July 16, 2012, the Committee on Financial Services held
a bipartisan staff briefing with the Congressional Research
Service on the conduct of monetary policy and the state of the
economy. This briefing was in preparation for the semi-annual
testimony of Federal Reserve Chairman Ben Bernanke on the same
topic.
On July 18, 2012, the Committee on Financial Services held
a hearing entitled ``Monetary Policy and the State of the
Economy'' to receive the semi-annual report to Congress on
monetary policy and the state of the economy. The sole witness
at this hearing was Ben Bernanke, Chairman, Board of Governors
of the Federal Reserve System.
General Oversight of the Federal Reserve System
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to conduct
oversight of the operations of the Federal Reserve Board of
Governors and the Federal Reserve System, including its
management structure, organizational changes mandated by the
Dodd-Frank Act, and the role of the Federal Reserve in the
supervision of systemically significant banks and non-bank
financial institutions.
On March 2, 2011, the Committee held a hearing entitled
``Monetary Policy and the State of the Economy,'' to receive
Federal Reserve Board Chairman Ben Bernanke's semi-annual
report to Congress on monetary policy and the state of the
economy.
On May 3, 2011, the Subcommittee on Domestic Monetary
Policy and Technology held a bipartisan staff briefing with
Federal Reserve staff to discuss the content of the data
released in December 2010, and the data released in March 2011
as a result of Freedom of Information Act (FOIA) lawsuits by
the news organizations Bloomberg and Fox News, detailing the
use of various emergency lending facilities established by the
Federal Reserve during the financial crisis. Fed officials gave
a brief summary of the difference between normal discount
window operations and the emergency lending authorities, and
discussed the differences between the disclosures required by
the Dodd-Frank Act and those made pursuant to the FOIA
requests.
On May 11, 2011, the Subcommittee on Domestic Monetary
Policy and Technology held a hearing entitled ``Monetary Policy
and the Debt Ceiling: Examining the Relationship between the
Federal Reserve and Government Debt.'' The hearing focused on
the link between Federal Reserve monetary policy and government
debt, specifically how the Federal Reserve purchases government
debt to conduct monetary policy, the role of the Federal
Reserve in financing government budget deficits, and the
separation between the Federal Reserve and Treasury.
On June 1, 2011, the Subcommittee on Domestic Monetary
Policy and Technology held a hearing entitled ``Federal Reserve
Lending Disclosure: FOIA, Dodd-Frank, and the Data Dump.'' The
hearing examined information disclosed by the Federal Reserve
in compliance with the Dodd-Frank Act and the FOIA requests
made by Bloomberg and Fox News.
On June 8, 2011, Federal Reserve Board of Governors briefed
bipartisan Committee staff on its single-tranche open market
operations detailed in a press account on May 26, 2011. Fed
officials gave a brief summary of the single-tranche open
market operation program that began in early March, 2008, and
discussed the Bloomberg article entitled ``Fed Gave Banks
Crisis Gains on $80 Billion Secretive Loans as Low as 0.01%.''
On September 26, 2011, GAO briefed bipartisan Committee
staff on the audit of the Federal Reserve emergency facilities
required by Section 1109 of the Dodd-Frank Act.
On October 4, 2011, the Subcommittee on Domestic Monetary
Policy and Technology held a hearing entitled ``Audit the Fed:
Dodd-Frank, QE3, and Federal Reserve Transparency.'' This
hearing examined the results of the audits of the Federal
Reserve by GAO mandated by the Dodd-Frank Act; earlier
legislative efforts to audit the Federal Reserve; current
Federal Reserve audit and data disclosure requirements; and
Federal Reserve transparency.
Activities of the U.S. Mint and the Bureau of Engraving and Printing
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to review the
activities of the U.S. Mint and the Bureau of Engraving and
Printing as they relate to the printing and minting of U.S.
currency and coins and the production of congressionally
authorized commemorative coins and Congressional gold medals.
On April 7, 2011, the Subcommittee on Domestic Monetary
Policy and Technology held a hearing entitled ``Bullion Coin
Programs of the United States Mint: Can They Be Improved?'' The
focus of the hearing was on possible improvements to the U.S.
Mint's bullion programs, and whether the Mint is capable of
meeting growing demand for bullion coins. The recent recession
was accompanied by increased demand for bullion coins as a way
to hedge against inflation. Witnesses suggested one cause for
the shortfall might be the lack of suppliers to the Mint, and
advocated an expansion of the relevant supply chains to ensure
that the Mint can meet growing demand for bullion coins.
On June 9, 2011, the Office of the Inspector General for
the Department of Treasury (Treasury OIG) briefed bipartisan
Committee staff on United States government gold holdings in
the custody of the Treasury Department, and the Treasury OIG's
audit of that gold. Treasury OIG staff gave an overview of how
the gold holdings at Treasury were counted, audited, and placed
in sealed compartments in the period before the Treasury OIG
began performing the audits. They also discussed current
procedures for performing an audit, changing the seal on a gold
compartment, and the maintenance of a compartment when it
involves breaking the seal.
On June 20, 2011, the United States Mint briefed bipartisan
Committee staff on U.S. government gold holdings, for which the
Mint is the custodian. The U.S. Mint staff gave an overview of
the government's gold holdings, including a discussion of the
manner in which the gold is stored, inventoried, and assayed.
Also discussed was the frequency of audits and procedures for
auditing the gold holdings.
On June 23, 2011, the Subcommittee on Domestic Monetary
Policy and Technology held a hearing entitled ``Investigating
the Gold: H.R. 1495, the Gold Reserve Transparency Act of 2011
and the Oversight of United States Gold Holdings.'' The purpose
of the hearing was to discuss H.R. 1495, the Gold Reserve
Transparency Act of 2011, as well as examine previous audits of
U.S. gold holdings, the current condition of U.S. gold
reserves, and the methodology for conducting the audit called
for in H.R. 1495.
On September 13, 2011, the Subcommittee on Domestic
Monetary Policy and Technology held a hearing entitled ``Road
Map to Sound Money: A Legislative Hearing on H.R. 1098 and
Restoring the Dollar.'' The purpose of this hearing was to
examine the role of ``sound money'' in the economy as well as
H.R. 1098, the ``Free Competition in Currency Act of 2011.''
On April 17, 2012, the Subcommittee on Domestic Monetary
Policy and Technology held a hearing entitled ``The Future of
Money: Coinage Production.'' This hearing examined legislation
that directs the Treasury Secretary to change the metallic
content of one-cent and five-cent circulating coins from their
current content to reduce production costs.
On November 14, 2012, Deputy Director Richard Peterson of
the United States Mint conducted a bipartisan briefing for the
Committee staff in preparation for an upcoming hearing on
November 29, 2012. Deputy Director Peterson discussed the
Mint's current operations, its FY 2011 annual report, and its
required but not-yet-delivered report on potential alternative
metallic compositions of circulating coins.
On November 29, 2012, the Subcommittee on Domestic Monetary
Policy and Technology held a hearing entitled ``The Future of
Money: Dollars and Sense'' to examine proposals to change the
metallic content of the penny and the nickel and to replace the
dollar bill with a $1 coin. Witnesses discussed the economic
and social implications of each proposal, and their potential
financial implications.
The Financial Crimes Enforcement Network (FinCEN)
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to examine the
operations of FinCEN and its ongoing efforts to implement its
regulatory mandates pursuant to the Bank Secrecy Act (BSA), to
combat money laundering and terrorist financing activities.
On November 9, 2011, Undersecretary of the Office of
Terrorism and Financial Intelligence at the Department of
Treasury David Cohen briefed bipartisan Committee staff on a
proposal to reorganize the Office of Terrorism and Financial
Intelligence.
The Office of Foreign Asset Control
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to monitor the
functions of the Office of Foreign Asset Control and study ways
of improving its working relationship with financial
institutions.
On November 15, 2011, Chairman Spencer Bachus sent a letter
to Secretary of the Department of Treasury Timothy Geithner
requesting that the Office of Foreign Asset Control consider
blocking funds held by Clearstream Banking S.A. on behalf of
the government of Iran, until all court cases are concluded and
all claims against the funds are adjudicated.
Payment System Innovations
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to examine
payment system alternatives, including prepaid credit cards,
the use of mobile devices to transfer and store value, web-
based value-transfer systems, remote check deposit, and
informal money transfer systems, businesses or networks, to
determine both the efficiencies they can provide to customers,
businesses and financial institutions, and their susceptibility
to money laundering, terrorism financing, and other financial
crimes.
On March 22, 2012, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled ``The
Future of Money: How Mobile Payments Could Change Financial
Services.'' This hearing examined the technology used to
conduct mobile payments, identified potential security
problems, and considered whether statutory changes were
necessary as mobile payment systems become more widely
available.
Clause 2(d)(1)(F) of Rule X of the House on Proposed Cuts
Neighborhood Stabilization Program (NSP)
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to rescind the
$1 billion in unobligated funds for NSP and eliminate the
program.
On March 1, 2011, Representative Gary Miller introduced
H.R. 861, the NSP Termination Act, which would rescind all
unobligated balances made available for the NSP authorized by
the Dodd-Frank Act and terminate the program. The NSP is a
federal grant program which provides funding for emergency
assistance to state and local governments to acquire, develop,
redevelop, or demolish foreclosed homes. On March 2, 2011, the
Subcommittee on Insurance, Housing and Community Opportunity
held a legislative hearing on H.R. 861. H.R. 861 was ordered
favorably reported by the Committee on March 3, 2011, and
passed the House on March 16, 2011.
FHA Refinance Program
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to return to
taxpayer the $8 billion in TARP funds that has been set aside
for the FHA Refinance Program.
On February 28, 2011, Representative Robert Dold introduced
H.R. 830, the FHA Refinance Program Termination Act. The
legislation would rescind all unobligated balances made
available for the program by Title I of the Emergency Economic
Stabilization Act (P.L. 110-343) that have been allocated for
use under the FHA Refinance Program (pursuant to Mortgagee
Letter 2010-23 of the Secretary of HUD). The bill would also
terminate the program and void the Mortgagee Letter pursuant to
which it was implemented, with concessions made for current
participants in the program. The FHA Refinance Program provides
refinancing options through the FHA's mortgage insurance
program to homeowners who owe more in mortgage principal than
their property's current value. On March 2, 2011, the
Subcommittee on Insurance, Housing and Community Opportunity
held a legislative hearing on H.R. 830. The bill was ordered
favorably reported by the Committee on March 3, 2011, and
passed the House on March 10, 2011.
Emergency Homeowner Relief Fund
The Oversight Plan of the Committee on Financial Services
for the 112th Congress calls upon the Committee to rescind the
unexpended and unobligated amounts dedicated to the Emergency
Homeowner Relief Fund.
On February 17, 2011, Chairman Spencer Bachus and
Subcommittee on Insurance, Housing and Community Opportunity
Chairwoman Judy Biggert sent a letter to the HUD regarding
HUD's proposed Interim Rule on the EHLP (Docket No. FR-5470-J-
OI). The letter expressed concern that the underlying program
was an unwise expansion of government's role in the housing
market that is both costly to taxpayers and potentially
injurious to the at-risk homeowners it purports to help. The
letter also noted that the EHLP does nothing to address the
underlying problem these at-risk homeowners face--the loss of
or inability to find a job--and therefore does not help get our
economy back on track. Further, the letter indicated Chairman
Bachus and Chairwoman Biggert's intention that Congress take
action this calendar year to repeal the EHLP's reauthorization
and rescind any unobligated balances for the program, and thus
recommended that work on the proposed Interim Rule for EHLP not
be finalized while Congress pursues these important taxpayer
protection goals.
On February 28, 2011, Representative Jeb Hensarling
introduced H.R. 836, the Emergency Mortgage Relief Program
Termination Act, to rescind all unobligated balances made
available for the Emergency Mortgage Relief Program and
terminate the program. The Emergency Homeowner Relief Fund was
established under Section 1496 of the Dodd-Frank Act to provide
loans or credit advances to borrowers who cannot pay their
mortgages because of unemployment or reduction in income. On
March 2, 2011, the Subcommittee on Insurance, Housing and
Community Opportunity held a legislative hearing on H.R. 836.
On March 3, 2011, the Committee ordered the bill favorably
reported, and on March 11, 2011, the bill was approved by the
House.
Hearings Held Under House Rule XI(1)(d)(2)(E)
----------
Rule XI(1)(d)(2)(E) of the Rules of the House, adopted
January 5, 2011, requires committees, or their subcommittees,
to:
(1) Hold at least one hearing during each 120-day
period on the topic of waste, fraud, abuse, or
mismanagement in Government programs which that
committee may authorize. Such hearing shall include a
focus on the most egregious instances of waste, fraud,
abuse, or mismanagement as documented by any report the
committee has received from a Federal Office of the
Inspector General or the Comptroller General of the
United States.
(2) Hold at least one hearing in any session in which
the committee has received disclaimers of agency
financial statements from auditors of any Federal
agency that the committee may authorize to hear
testimony on such disclaimers from representatives of
any such agency.
(3) Hold at least one hearing on issues raised by
reports issued by the Comptroller General of the United
States indicating that Federal programs or operations
that the committee may authorize are at high risk for
waste, fraud, and mismanagement.
Under Rule XI(1)(d)(2)(E), the hearings held pursuant to
this rule must be delineated in the Activity Report. During the
112th Congress, the following hearings were held in compliance
with the Rule:
------------------------------------------------------------------------
Serial No. Title & Subcommittee Date(s)
------------------------------------------------------------------------
112-4............... An Analysis of the Post- February 15, 2011
Conservatorship Legal
Expenses of Fannie Mae and
Freddie Mac (Oversight).
112-13.............. Legislative Proposals to March 2, 2011
End Taxpayer Funding for
Ineffective Foreclosure
Mitigation Programs
(Housing).
112-14.............. Oversight of the Securities March 10, 2011
and Exchange Commission's
Operations, Activities,
Challenges and FY 2012
Budget Request (Capital
Markets).
112-16.............. Legislative Proposals to March 11, 2011
Reform the National Flood
Insurance Program
(Housing).
112-23.............. Legislative Proposals to April 1, 2011
Reform the National Flood
Insurance Program, Part II
(Housing).
112-36.............. Oversight of HUD's HOME June 3, 2011
Program (Full Committee).
112-48.............. Oversight of the Office of July 14, 2011
Financial Research and the
Financial Stability
Oversight Council
(Oversight).
112-55.............. Field hearing entitled September 6, 2011
``Combating Terror Post-9/
11: Oversight of the
Office of Terrorism and
Financial Intelligence''
(Oversight).
112-57.............. Legislative Proposals to September 8, 2011
Determine the Future Role
of FHA, RHS and GNMA in
the Single- and Multi-
Family Mortgage Markets,
Part 2 (Housing).
112-66.............. Joint Hearing with the September 22, 2011
Subcommittee on TARP,
Financial Services and
Bailouts of Public and
Private Programs of the
Committee on Oversight and
Government Reform entitled
``Potential Conflicts of
Interest at the SEC: The
Becker Case'' (Oversight).
112-71.............. Oversight of the Federal October 12, 2011
Home Loan Bank System
(Oversight).
112-81.............. Joint Hearing entitled November 2, 2011
``Fraud in the HUD HOME
Program'' (Oversight/
Housing).
112-87.............. Perspectives on the Health December 1, 2011
of the FHA Single-family
Insurance Fund (Full
Committee).
112-88.............. Oversight of the Federal December 1, 2011
Housing Finance Agency
(Oversight).
112-101............. Budget Hearing--Consumer February 15, 2012
Financial Protection
Bureau (Oversight).
112-102............. Oversight of the Department February 28, 2012
of Housing and Urban
Development (Housing).
112-117............. The Future of Money: April 17, 2012
Coinage Production
(Domestic Monetary Policy).
112-118............. Budget Hearing--the Office April 18, 2012
of Financial Research
(Oversight).
112-119............. Oversight of the U.S. April 25, 2012
Securities and Exchange
Commission (Capital
Markets).
112-123............. Oversight of the FHA May 9, 2012
Reverse Mortgage Program
for Seniors (Housing).
112-127............. Oversight of the Federal May 16, 2012
Deposit Insurance
Corporation's Structured
Transaction Program
(Oversight).
112-131............. Cyber Threats to Capital June 1, 2012
Markets and Corporate
Accounts (Capital Markets).
112-132............. H.R. 4624, the Investment June 6, 2012
Adviser Oversight Act of
2012 (Full Committee).
112-135............. Investor Protection: The June 7, 2012
Need to Protect Investors
from the Government
(Capital Markets).
112-151............. The Annual Report of the July 25, 2012
Financial Stability
Oversight Council (Full
Committee).
112-152............. The 10th Anniversary of the July 26, 2012
Sarbanes-Oxley Act
(Capital Markets).
112-155............. TRIA at Ten Years: The September 11, 2012
Future of the Terrorism
Risk Insurance Program
(Housing).
112-162............. The Future of Money: November 29, 2012
Dollars and Sense
(Domestic Monetary Policy).
------------------------------------------------------------------------
HOUSE RESOLUTION 72
----------
On February 8, 2011, the House adopted House Resolution 72,
amending the rules of the House to require certain designated
committees to inventory and review regulations, executive and
agency orders, and other administrative actions or procedures
that:
(1) Impede private-sector job creation;
(2) Discourage innovation and entrepreneurial
activity;
(3) Hurt economic growth and investment;
(4) Harm the Nation's global competitiveness;
(5) Limit access to credit and capital;
(6) Fail to utilize or apply accurate cost-benefit
analysis;
(7) Create additional economic uncertainty;
(8) Are promulgated in such a way as to limit
transparency and the opportunity for public comment,
particularly by affected parties;
(9) Lack specific statutory authorization;
(10) Undermine labor-management relations;
(11) Result in large-scale unfunded mandates on
employers without due cause;
(12) Impose undue paperwork and cost burdens on small
businesses; or
(13) Prevent the United States from becoming less
independent on foreign energy sources. The resolution
requires the Committee to identify any oversight and
legislative activity in support of, or as a result of,
such inventory and review. From January 1, 2011 to
December 31, 2012, the following hearings were held in
compliance with the resolution:
------------------------------------------------------------------------
Serial No. Title & Subcommittee Date(s)
------------------------------------------------------------------------
112-1............... Promoting Economic Recovery January 26, 2011
and Job Creation: The Road
Forward (Full Committee).
112-3............... Can Monetary Policy Really February 9, 2011
Create Jobs? (Domestic
Monetary Policy).
112-5............... Assessing the Regulatory, February 15, 2011
Economic and Market
Implications of the Dodd-
Frank Derivatives Title
(Full Committee).
112-7............... Are There Government February 16, 2011
Barriers to the Housing
Market Recovery? (Housing).
112-8............... Understanding the Federal February 17, 2011
Reserve's Proposed Rule on
Interchange Fees:
Implications and
Consequences of the Durbin
Amendment (Financial
Institutions).
112-12.............. The Effect of Dodd-Frank on March 2, 2011
Small Financial
Institutions and Small
Businesses (Financial
Institutions).
112-14.............. Oversight of the Securities March 10, 2011
and Exchange Commission's
Operations, Activities,
Challenges, and FY 2012
Budget Request (Capital
Markets).
112-18.............. Oversight of the Consumer March 16, 2011
Financial Protection
Bureau (Financial
Institutions).
112-19.............. Legislative Proposals to March 16, 2011
Promote Job Creation,
Capital Formation, and
Market Certainty (Capital
Markets).
112-21.............. The Costs of Implementing March 30, 2011
the Dodd-Frank Act:
Budgetary and Economic
(Oversight).
112-24.............. Legislative Proposals to April 6, 2011
Improve the Structure of
the Consumer Financial
Protection Bureau
(Financial Institutions).
112-26.............. Oversight of the Financial April 14, 2011
Stability Oversight
Council (Oversight).
112-27.............. Understanding the April 14, 2011
Implications and
Consequences of the
Proposed Rule on Risk
Retention (Capital
Markets).
112-29.............. Legislative Proposals to May 11, 2011
Address the Negative
Consequences of the Dodd-
Frank Whistleblower
Provisions (Capital
Markets).
112-36.............. Oversight of HUD's HOME June 3, 2011
Program (Full Committee).
112-37.............. Does the Dodd-Frank Act End June 14, 2011
``Too Big to Fail''?
(Financial Institutions).
112-39.............. Financial Regulatory June 16, 2011
Reform: The International
Context (Full Committee).
112-42.............. Oversight of the Mutual June 24, 2011
Fund Industry: Ensuring
Market Stability and
Investor Confidence
(Capital Markets).
112-44.............. Joint Hearing entitled July 7, 2011
``Mortgage Servicing: An
Examination of the Role of
Federal Regulators in
Settlement Negotiations
and the Future of Mortgage
Servicing Standards''
(Financial Institutions/
Oversight).
112-45.............. Legislative Proposals July 8, 2011
Regarding Bank Examination
Practices (Financial
Institutions).
.................. Mortgage Origination: The July 13, 2011
Impact of Recent Changes
on Homeowners and
Businesses (Housing).
112-48.............. Oversight of the Office of July 14, 2011
Financial Research and the
Financial Stability
Oversight Council
(Oversight).
112-51.............. Oversight of the Credit July 27, 2011
Rating Agencies Post Dodd-
Frank (Oversight).
112-53.............. Insurance Oversight: Policy July 28, 2011
Implications for U.S.
Consumers, Businesses and
Jobs (Housing).
112-54.............. Field hearing entitled August 16, 2011
``Potential Mixed
Messages: Is Guidance from
Washington Being
Implemented by Federal
Bank Examiners?''
(Financial Institutions).
112-55.............. Field hearing entitled September 6, 2011
``Combating Terror Post-9/
11: Oversight of the
Office of Terrorism and
Financial Intelligence''
(Oversight).
112-62.............. Fixing the Watchdog: September 15, 2011
Legislative Proposals to
Improve and Enhance the
Securities and Exchange
Commission (Full
Committee).
112-63.............. Legislative Proposals to September 21, 2011
Facilitate Small Business
Capital Formation and Job
Creation (Capital Markets).
112-66.............. Joint Hearing with the September 22, 2011
Subcommittee on TARP,
Financial Services and
Bailouts of Public and
Private Programs of the
Committee on Oversight and
Government Reform entitled
``Potential Conflicts of
Interest at the SEC: The
Becker Case'' (Oversight).
112-65.............. An Examination of the September 22, 2011
Availability of Credit for
Consumers (Financial
Institutions).
112-69.............. The Obama Administration's October 6, 2011
Response to the Housing
Crisis (Housing).
112-71.............. Oversight of the Federal October 12, 2011
Home Loan Bank System
(Oversight).
112-72.............. H.R. 1418: The Small October 12, 2011
Business Lending
Enhancement Act of 2011
(Financial Institutions).
112-75.............. Legislative Proposals to October 14, 2011
Bring Certainty to the
Over-the-Counter
Derivatives Market
(Capital Markets).
112-77.............. Insurance Oversight: Policy October 25, 2011
Implications for U.S.
Consumers, Businesses and
Jobs, Part 2 (Housing).
112-78.............. Proposed Regulations to October 27, 2011
Require Reporting of
Nonresident Alien Deposit
Interest Income (Financial
Institutions).
112-79.............. Field Hearing entitled October 31, 2011
``Regulatory Reform:
Examining How New
Regulations are Impacting
Financial Institutions,
Small Businesses and
Consumers'' (Financial
Institutions).
112-81.............. Joint Hearing entitled November 2, 2011
``Fraud in the HUD HOME
Program'' (Oversight/
Housing).
112-80.............. The Consumer Financial November 2, 2011
Protection Bureau: The
First 100 Days (Financial
Institutions).
112-85.............. Joint Hearing entitled November 16, 2011
``H.R. 1697, The
Communities First Act''
(Capital Markets/Financial
Institutions).
112-88.............. Oversight of the Federal December 1, 2011
Housing Finance Agency
(Oversight).
112-92.............. H.R. 3606, the Reopening December 15, 2011
American Capital Markets
to Emerging Growth
Companies Act of 2011
(Capital Markets).
112-95.............. Examining the Impact of the January 18, 2012
Volcker Rule on Markets,
Businesses, Investors and
Job Creation (Capital
Markets/Financial
Institutions).
112-97.............. H.R. 3461: the Financial February 1. 2012
Institutions Examination
Fairness and Reform Act
(Financial Institutions).
112-99.............. Legislative Proposals to February 8, 2012
Promote Accountability and
Transparency at the
Consumer Financial
Protection Bureau
(Financial Institutions).
112-100............. Limiting the February 8, 2012
Extraterritorial Impact of
Title VII of the Dodd-
Frank Act (Capital
Markets).
112-101............. Budget Hearing--Consumer February 15, 2012
Financial Protection
Bureau (Oversight).
112-104............. Understanding the Effects March 1, 2012
of the Repeal of
Regulation Q on Financial
Institutions and Small
Businesses (Financial
Institutions).
112-106............. An Examination of the March 14, 2012
Challenges Facing
Community Financial
Institutions in Texas
(Financial Institutions).
112-109............. ``H.R. ___, the Swap Data March 21, 2012
Repository and
Clearinghouse
Indemnification Correction
Act of 2012'' (Capital
Markets).
112-112............. Accounting and Auditing March 28, 2012
Oversight: Pending
Proposals and Emerging
Issues Confronting
Regulators, Standard
Setters and the Economy
(Capital Markets).
112-116............. An Examination of the April 16, 2012
Challenges Facing
Community Financial
Institutions in Ohio
(Financial Institutions).
112-118............. Budget Hearing--the Office April 18, 2012
of Consumer Financial
Protection Bureau
(Oversight).
112-119............. Oversight of the U.S. April 25, 2012
Securities and Exchange
Commission (Capital
Markets).
112-122............. Rising Regulatory May 9, 2012
Compliance Costs and Their
Impact on the Health of
Small Financial
Institutions (Financial
Institutions).
112-125............. The Impact of the Dodd- May 16, 2012
Frank Act: What It Means
to be a Systemically
Important Financial
Institution (Financial
Institutions).
112-127............. Oversight of the Federal May 16, 2012
Deposit Insurance
Corporation's Structured
Transaction Program
(Oversight).
112-129............. U.S. Insurance Sector: May 17, 2012
International
Competitiveness and Jobs
(Housing).
112-130............. The Impact of the Dodd- May 18, 2012
Frank Act: Understanding
Heightened Regulatory
Capital Requirements
(Financial Institutions).
112-133............. An Examination of the June 6, 2012
Federal Reserve's Final
Rule on the CARD Act's
`Ability to Repay'
Requirement (Financial
Institutions).
112-138............. Mortgage Disclosures: How June 20, 2012
Do We Cut Red Tape for
Consumers and Small
Businesses? (Housing).
112-139............. Safe and Fair Supervision June 21, 2012
of Money Services
Businesses (Financial
Institutions).
112-144............. The Impact of Dodd-Frank's July 11, 2012
Home Mortgage Reforms:
Consumer and Market
Perspectives (Financial
Institutions).
112-146............. Who's In Your Wallet? Dodd- July 19, 2012
Frank's Impact on
Families, Communities and
Small Businesses
(Oversight).
112-147............. The Impact of Dodd-Frank on July 19, 2012
Consumer Choice and Access
to Credit (Financial
Institutions).
112-150............. The Impact of Dodd-Frank's July 24, 2012
Insurance Regulations on
Consumers, Job Creators,
and the Economy (Housing).
112-151............. The Annual Report of the July 25, 2012
Financial Stability
Oversight Council (Full
Committee).
112-154............. Field hearing entitled ``An August 20, 2012
Examination of the
Challenges Facing
Community Financial
Institutions in West
Virginia'' (Financial
Institutions).
Full Committee markup of HR June 27, 2012
4367, a bill to amend the
Electronic Fund Transfer
Act to limit the fee
disclosure requirement for
an automatic teller
machine to the screen of
the machine.
Bipartisan briefing for November 30, 2012
Committee Members and
staff on the
implementation of Title
VII of the Dodd-Frank Act.
------------------------------------------------------------------------
From January 1, 2011 to December 31, 2012, the following
letters sent from the Committee comply with the resolution:
------------------------------------------------------------------------
Date Correspondence Subject Matter
------------------------------------------------------------------------
January 25, 2011.............. From Chairman Spencer Request for an
Bachus to The extension for
Honorable Mary public comment
Schapiro, Chairman, for the
SEC. proposed rule
under section
1502 of the
Dodd-Frank Act
February 10, 2011............. From Chairman Spencer Qualified
Bachus to The Residential
Honorable Shaun Mortgage aspect
Donovan, Secretary, of the risk
HUD; The Honorable retention rule
Sheila Bair, in section 941
Chairman, FDIC; The of the Dodd-
Honorable Ben Frank Act
Bernanke, Chairman,
Federal Reserve
Board; The Honorable
Mary Schapiro,
Chairman, SEC; Mr.
Edward DeMarco,
Acting Director,
FHFA; and Mr. John
Walsh, Acting
Comptroller, OCC.
February 23, 2011............. From Chairman Spencer SEC proposed
Bachus to The rule on
Honorable Mary municipal
Schapiro, Chairman, advisors under
SEC. Dodd-Frank Act
section 975
March 4, 2011................. From Chairman Spencer The implication
Bachus and of section 1504
Subcommittee on of the Dodd-
International Frank Act on
Monetary Policy and U.S.-listed
Trade Chairman Gary companies
G. Miller to The
Honorable Mary
Schapiro, Chairman,
SEC.
March 9, 2011................. From Chairman Spencer Volume and pace
Bachus and Republican of rulemakings
Members of the under the Dodd-
Committee to The Frank Act
Honorable Timothy
Geithner, Secretary,
U.S. Department of
Treasury; The
Honorable Ben
Bernanke, Chairman,
Federal Reserve
Board; The Honorable
Gary Gensler,
Chairman, CFTC; The
Honorable Mary
Schapiro, Chairman,
SEC; The Honorable
Sheila Bair,
Chairman, FDIC; and
Mr. John Walsh,
Acting Comptroller,
OCC.
March 15, 2011................ From Chairman Spencer SEC, CFTC, and
Bachus, Committee on Department of
Education and the Labor
Workforce Chairman rulemaking
John Kline, and under the Dodd-
Committee on Frank Act
Agriculture Chairman
Frank Lucas to The
Honorable Hilda
Solis, Secretary,
U.S. Department of
Labor; The Honorable
Mary Schapiro,
Chairman, SEC; and
The Honorable Gary
Gensler, Chairman,
CFTC.
March 15, 2011................ From Chairman Spencer Study prepared
Bachus and under section
Subcommittee on 619 of the Dodd-
Oversight and Frank Act
Investigations
Chairman Randy
Neugebauer to members
of the FSOC in the
care of The Honorable
Timothy Geithner,
Secretary, U.S.
Department of
Treasury.
March 17, 2011................ From Republican SEC staff study
Members of the on regulations
Subcommittee on for broker-
Capital Markets and dealers and
Government Sponsored investment
Enterprises to The advisors
Honorable Mary
Schapiro, Chairman,
SEC.
May 4, 2011................... From Subcommittee on Request for
Oversight and further notice,
Investigations comment, and
Chairman Randy description for
Neugebauer and the ``Authority
Subcommittee on to Require
Oversight and Supervision and
Investigations Regulation of
Ranking Member Certain Nonbank
Michael Capuano to Financial
members of the FSOC. Companies''
rule
May 6, 2011................... From Subcommittee on CFPB's
Oversight and involvement in
Investigations the mortgage
Chairman Randy servicing
Neugebauer, settlement
Subcommittee on negotiations
Financial
Institutions and
Consumer Credit
Chairman Shelley
Moore Capito,
Subcommittee on
Capital Markets and
Government Sponsored
Enterprises Chairman
Scott Garrett, and
Representative
Patrick McHenry to
The Honorable Timothy
Geithner, Secretary,
U.S. Department of
the Treasury.
May 27, 2011.................. From Chairman Spencer The implication
Bachus and of proposed
Subcommittee on interim rule
Capital Markets and under section
Government Sponsored 982 of the Dodd-
Enterprises Chairman Frank Act to
Scott Garrett to Mr. the auditors of
James Doty, Chairman, introducing
PCAOB. broker-dealers
June 8, 2011.................. From Subcommittee on Expressing the
Oversight and need for
Investigations assurances from
Chairman Randy HUD that every
Neugebauer and dollar spent on
Subcommittee on the HOME
Insurance, Housing Investment
and Community Partnership
Opportunity Chairman Initiative
Judy Biggert to program goes to
Assistant Secretary fulfill the
of the Office of program's
Community Planning mission to
and Development for provide
HUD, Mercedes Marquez. affordable
housing to low-
income
families.
June 20, 2011................. From Chairman Spencer Request for
Bachus, Subcommittee specific
on Financial documents and
Institutions and records related
Consumer Credit to the CFPB's
Chairman Shelley involvement in
Moore Capito, mortgage
Subcommittee on servicing
Capital Markets and settlement
Government Sponsored negotiations.
Enterprises Chairman
Scott Garrett,
Subcommittee on
Oversight and
Investigations
Chairman Randy
Neugebauer,
Representative
Patrick McHenry and
Representative
Darrell Issa to The
Honorable Timothy
Geithner, Secretary,
U.S. Department of
Treasury.
June 22, 2011................. From Chairman Spencer Request for a
Bachus and General
Subcommittee on Accountability
Oversight and Office audit of
Investigations the FSOC.
Chairman Randy
Neugebauer to The
Honorable Gene
Dodaro, Comptroller
General, GAO.
June 24, 2011................. From Subcommittee on Public
Oversight and statements made
Investigations by members of
Chairman Randy the FSOC
Neugebauer and regarding plans
Subcommittee on to seek public
Oversight and comment on
Investigations additional
Ranking Member guidance
Michael Capuano to designating non-
The Honorable Timothy bank financial
Geithner, Secretary, companies for
U.S. Department of enhanced
Treasury. supervision and
regulation by
the Federal
Reserve.
July 1, 2011.................. From Subcommittee on Expressing
Oversight and concern for the
Investigations Treasury
Chairman Randy Department's
Neugebauer to The influence on
Honorable Timothy OCC
Geithner, Secretary, rulemakings.
U.S. Department of
Treasury.
July 14, 2011................. From Chairman Spencer The Federal
Bachus to The Trade
Honorable Jon Commission's
Leibowitz, Chairman, enforcement of
Federal Trade the Credit
Commission. Repair
Organizations
Act (CROA) and
the risks that
implementation
could pose in
putting
legitimate
credit repair
organizations
out of
business.
July 28, 2011................. From Chairman Spencer Request for a
Bachus, along with phased
Subcommittee on implementation
International of regulations
Monetary Policy and concerning
Trade Chairman Gary Section 1502 of
Miller, Subcommittee the Dodd-Frank
on International Act
Monetary Policy and
Trade Vice Chairman
Robert Dold, and
Representative Steve
Stivers to The
Honorable Mary
Schapiro, Chairman,
SEC.
July 28, 2011................. From Chairman Spencer Request for
Bachus, Vice Chairman information on
Jeb Hensarling, the SEC-staff
Subcommittee on labor hours and
Capital Markets and amount spent
Government Sponsored associated with
Enterprises Chairman the labor
Scott Garrett, dedicated to
Subcommittee on the proxy
Oversight and access
Investigations rulemaking
Chairman Randy process, the
Neugebauer to The final
Honorable Mary promulgation of
Schapiro, Chairman, the rule, the
SEC. litigation of
the rule, and
total fund
spent on
outside counsel
related.
August 2, 2011................ From Chairman Spencer A provision
Bachus and issued by their
Subcommittee on agencies
Capital Markets and requiring
Government Sponsored securitizers to
Enterprises Chairman set aside the
Scott Garrett to premium from
Secretary of HUD, the sales of
Chairman of the securities in
Federal Reserve, the ``premium
Acting Director of capture cash
the FHFA, the Acting reserves,'' and
Chairman of the FDIC, prevent
the Chairman of the securitizers
SEC, and the Acting from collecting
Comptroller of the a profit until
Currency. up to ten years
later when the
security
matures.
August 2, 2011................ From Chairman Spencer The SEC's
Bachus to The rulemaking
Honorable Mary authority under
Schapiro, Chairman, Section 913 of
SEC. the Dodd-Frank
Act
August 12, 2011............... From Chairman Spencer The SEC's
Bachus, Subcommittee discussion to
on Capital Markets require money
and Government market mutual
Sponsored Enterprises funds to have
Chairman Scott floating net
Garrett and asset values
Republican Members of
the Committee to The
Honorable Mary
Schapiro, Chairman,
SEC.
August 31, 2011............... From Chairman Spencer The Federal
Bachus to The Reserve's
Honorable Ben decision to
Bernanke, Chairman, extend the
Federal Reserve Board. comment period
for Capital One
Financial
Corporation's
acquisition of
ING Direct.
September 8, 2011............. From Chairman Spencer The FSOC's
Bachus and Republican efforts to
Members of the eliminate
Committee to The unnecessary or
Honorable Timothy duplicative
Geithner, Secretary, regulatory
U.S. Department of burdens on the
Treasury. financial
system.
September 14, 2011............ From Subcommittee on Requesting that
Insurance, Housing HUD provide
and Community address
Opportunity Chairman information for
Judy Biggert and both single-
Subcommittee on family projects
Oversight and and multi-
Investigations family projects
Chairman Randy funded with
Neugebauer to HOME Investment
Assistant Secretary Partnership
for Congressional and Program funds
Intergovernmental in order to
Relations at HUD ensure that HUD
Peter Kovar. is keeping an
accurate
database of
past and
current
development
projects
October 13, 2011.............. From Subcommittee on Expressing
Oversight and concerns about
Investigations expenditures
Chairman Randy that Freddie
Neugebauer to Mr. and Fannie made
Edward DeMarco, in connection
Acting Director, FHFA. with the
Mortgage
Bankers
Association
Conference that
had no relation
to furthering
the actual
purposes of the
conservatorship
.
October 21, 2011.............. From Oversight and Expressing
Investigations concern that
Subcommittee Chairman Fannie Mae and
Randy Neugebauer to Freddie Mac
Mr. Edward DeMarco, could incur
Acting Director, FHFA. substantial
costs in
connection with
implementing
President
Obama's
refinancing
plan entitled
``The American
Jobs Act.''
October 26, 2011.............. From Chairman Spencer The CFPB's
Bachus to Mr. Raj position on
Date, Special Advisor implementing
to the Secretary of Regulation E.
the Treasury, CFPB.
November 7, 2011.............. From Chairman Spencer Opposition to
Bachus, Vice Chairman conference
Jeb Hensarling, report language
Subcommittee on to increase the
Insurance, Housing loan limits for
and Community mortgages
Opportunity Chairman insured by the
Judy Biggert, federal
Subcommittee on government
Financial through the FHA
Institutions and or guaranteed
Consumer Credit by the GSEs,
Chairman Shelley Fannie Mae and
Moore Capito, Freddie Mac
Subcommittee on
Capital Markets and
Government Sponsored
Enterprises Chairman
Scott Garrett,
Subcommittee on
Oversight and
Investigations
Chairman Randy
Neugebauer, and
Subcommittee on
Domestic Monetary
Policy and Trade
Chairman Ron Paul to
the Honorable Hal
Rogers, the Honorable
C.W. Bill Young, the
Honorable Jack
Kingston, the
Honorable Robert
Aderholt, the
Honorable John Abney
Culberson, the
Honorable Steven C.
LaTourette, the
Honorable Jerry
Lewis, the honorable
Frank R. Wolf, the
Honorable Tom Latham,
the Honorable JoAnn
Emerson, and the
Honorable John R.
Carter, conferees
appointed to the
conference committee
for H.R. 2112, the
Consolidated and
Further Continuing
Appropriations Act.
November 9, 2011.............. From Oversight and Requesting a
Investigations detailed
Subcommittee Chairman account of how
Randy Neugebauer to the Office of
Counsel to the Financial
Secretary at the Research spent
Department of the the $20.5
Treasury Richard million that
Berner. had been
transferred to
it from the
operating
revenues of the
Federal Reserve
November 15, 2011............. From Oversight and Requesting
Investigations supplemental
Subcommittee Chairman documents
Randy Neugebauer to pertaining to
The Honorable Shaun the HOME
Donovan, Secretary, Investment
HUD. Partnership
Initiative
Program
administered by
HUD
November 18, 2011............. From Oversight and Requesting
Investigations information on
Subcommittee Chairman Freddie Mac's
Randy Neugebauer to yearly
Mr. Edward DeMarco, operating
Acting Director, FHFA. expenses and
questioning
whether those
expenses
furthered the
purpose of
conservatorship
November 18, 2011............. From Oversight and Enterprise core
Investigations activities,
Subcommittee Chairman strategic
Randy Neugebauer to planning,
Mr. Edward DeMarco, decision
Acting Director, FHFA. making,
staffing, loan
level data and
G-fees, and on
FHFA operations
generally
December 2, 2011.............. From Subcommittee on Requesting SEC
Oversight and records related
Investigations to the
Subcommittee Chairman Commission's
Randy Neugebauer to oversight of MF
The Honorable Mary Global and its
Schapiro, Chairman, coordination
SEC. with other
regulators and
with self-
regulatory
organizations
December 6, 2011.............. From Subcommittee on Requesting a
Insurance, Housing study of issues
and Community surrounding
Opportunity Chairman foreclosed
Judy Biggert to The residential
Honorable Gene properties
Dodaro, Comptroller owned or
General, GAO. controlled by
the Federal
Government
through the FHA
or the GSEs
Fannie Mae and
Freddie Mac
December 20, 2011............. From Chairman Spencer Expressing
Bachus and Ranking concerns that
Member Barney Frank were raised by
to The Honorable domestic
Timothy Geithner, institutions
Secretary, U.S. about the
Department of Financial
Treasury. Stability
Board's (FSB)
procedures for
designating
``global
systemically
important
financial
institutions''
or G-SIFIs
December 20, 2011............. From Subcommittee on Expressing
Oversight and concern about
Investigations the cost
Chairman Randy incurred by
Neugebauer, Freddie Mac and
Subcommittee on Fannie Mae in
Insurance, Housing, connection with
and Community paying for the
Opportunity Chairman legal expenses
Judy Biggert, of certain
Subcommittee on former
Financial employees, and
Institutions and asking that the
Subcommittee on Agency take
Financial steps to limit
Institutions and the costs of
Consumer Credit such expenses
Chairman Shelley
Moore Capito, and
Representative Edward
Royce to Mr. Edward
DeMarco, Acting
Director, FHFA.
January 6, 2012............... From Chairman Spencer Seeking
Bachus to The clarification
Honorable Eric about the
Holder, Attorney legality and
General, U.S. constitutionali
Department of Justice. ty of President
Obama's recess
appointment of
Richard Cordray
as Director of
the CFPB
January 12, 2012.............. From Chairman Spencer Requesting
Bachus to Mr. John access to un-
Walsh, Acting redacted
Comptroller of the engagement
Currency, OCC. letters
submitted by
independent
consultants
that have been
retained by
federal savings
association
mortgage
servicers in
their
compliance with
consent orders
issued by the
OCC in April
2011 to correct
deficient and
unsafe or
unsound
foreclosure
practices
January 30, 2012.............. From Chairman Spencer Addressing
Bachus to Chairman of concerns about
the Committee on the CDBG
Foreign Affairs program and
Ileana Ros-Lehtinen. potentially
holding a
hearing on H.R.
2183, the CDBG
Public Services
Flexibility Act
January 30, 2012.............. From Chairman Spencer Seeking
Bachus and Financial clarification
Institutions and about an
Consumer Credit omission in the
Subcommittee Chairman Dodd-Frank Act
Shelley Moore Capito that could
to The Honorable result in
Richard Cordray, regulated
Director, CFPB. institutions
waiving
privileges
against third
parties when
they provide
privileged
information to
the CFPB
February 9, 2012.............. From Subcommittee on Requesting HUD
Oversight and to state why a
Investigations $760,000 cost-
Chairman Randy estimate
Neugebauer to The regarding the
Honorable Shaun Subcommittee's
Donovan, Secretary, November 15,
HUD. 2011 production
request for
HOME program
documents was
accurate in
light of
concerns raised
by GAO
February 10, 2012............. From Chairman Spencer Expressing
Bachus to Chairman of support for the
the Committee on Ways inclusion of a
and Means Dave Camp. provision in
the conference
report designed
to shore up the
FHA's MMIF and
provide the FHA
with additional
tools to manage
its risk
February 15, 2012............. From Chairman Spencer Addressing the
Bachus to financial
Representative Jeff condition of
Fortenberry. the USDA's
housing
programs, which
are
administered by
RHS, and
potentially
holding a
hearing on H.R.
273, the Rural
Housing
Preservation
Act
February 16, 2012............. From Chairman Bachus Stressing the
to The Honorable importance for
Richard Cordray, the CFPB to
Director, CFPB. make the
efficient
implementation
of the SAFE Act
a high priority
February 22, 2012............. From Representatives Requesting
Neugebauer, additional
Fitzpatrick, and information
Renacci to The regarding the
Honorable Richard CFPB's future
Cordray, Director, budgetary plans
CFPB. and reaffirming
the need for
clarity and
transparency in
CFPB operations
March 29, 2012................ From Subcommittee on Requesting
Oversight and documents from
Investigations select HUD
Chairman Randy headquarters
Neugebauer to The and Office of
Honorable Shaun Community
Donovan, Secretary, Planning and
HUD. Development
field office
directors to
assist the
Subcommittee in
conducting
oversight of
HUD's
management of
its HOME
program
March 29, 2012................ From Subcommittee on Regarding the
Oversight and economic and
Investigations compliance
Chairman Randy costs the
Neugebauer and American people
Subcommittee on will bear as a
Financial result of
Institutions and CFPB's rule
Consumer Credit making
Chairman Shelley
Moore Capito to The
Honorable Richard
Cordray, Director,
CFPB.
April 18, 2012................ From Subcommittee on Questioning the
Oversight and OFR's ability
Investigations to properly
Chairman Randy testify to its
Neugebauer to The operations and
Honorable Timothy budget, as the
Geithner, Secretary, individual
U.S. Department of designated by
Treasury. the Secretary
to oversee the
stand up of OFR
refuses to
appear before
the
Subcommittee
April 30, 2012................ From Subcommittee on Rejecting HUD's
Oversight and truncated
Investigations document
Chairman Randy projection as
Neugebauer to The being fully
Honorable Shaun responsive to
Donovan, Secretary, the
HUD. Subcommittee's
March 29, 2012
request for
HOME program
documents
May 1, 2012................... From Chairman Spencer Questioning
Bachus, Subcommittee whether FHFA
on Oversight and can, and
Investigations should,
Chairman Randy authorize
Neugebauer, Vice Freddie Mac and
Chairman Jeb Fannie Mae to
Hensarling, forgive a
Subcommittee on portion of the
Insurance, Housing, outstanding
and Community principal on
Opportunity Chairman mortgages that
Judy Biggert, qualify for
Subcommittee on relief through
Financial the Home
Institutions and Affordable
Consumer Credit Modification
Chairman Shelley Program
Moore Capito,
Subcommittee on
Capital Markets and
Government Sponsored
Enterprise Chairman
Scott Garrett,
Subcommittee on
International
Monetary Policy and
Trade Chairman Gary
Miller, and
Subcommittee on
Domestic Monetary
Policy and Technology
Chairman Ron Paul to
Mr. Edward DeMarco,
Acting Director, FHFA.
May 2, 2012................... From Subcommittee on Requesting
Oversight and detailed
Investigations information
Chairman Randy regarding
Neugebauer, CFPB's Fiscal
Subcommittee on Year 2013
Oversight and budget, hiring
Investigations Vice process, and
Chairman Mike transfer
Fitzpatrick, and requests from
Representative James the Federal
Renacci to The Reserve Board
Honorable Richard of Governors
Cordray, Director, that CFPB did
CFPB. not provide in
its response to
the Members'
February 22,
2012 letter
May 9, 2012................... From Chairman Spencer Requesting
Bachus and information on
Subcommittee on CFPB's
Oversight and conference
Investigations planning
Chairman Randy policies and
Neugebauer to The expenditures
Honorable Richard related to
Cordray, Director, conferences
CFPB. held by CFPB
May 9, 2012................... From Chairman Spencer Requesting
Bachus and information on
Subcommittee on FDIC's
Oversight and conference
Investigations planning
Chairman Randy policies and
Neugebauer to The expenditures
Honorable Martin related to
Gruenberg, Acting conferences
Chairman, FDIC. held by FDIC
May 9, 2012................... From Chairman Spencer Requesting
Bachus and information on
Subcommittee on SEC's
Oversight and conference
Investigations planning
Chairman Randy policies and
Neugebauer to The expenditures
Honorable Mary related to
Schapiro, Chairman, conferences
SEC. held by SEC
May 9, 2012................... From Chairman Spencer Requesting
Bachus and information on
Subcommittee on HUD's
Oversight and conference
Investigations planning
Chairman Randy policies and
Neugebauer to The expenditures
Honorable Shaun related to
Donovan, Secretary, conferences
HUD. held by HUD
May 9, 2012................... From Chairman Spencer Requesting
Bachus and information on
Subcommittee on CFTC's
Oversight and conference
Investigations planning
Chairman Randy policies and
Neugebauer to The expenditures
Honorable Gary related to
Gensler, Chairman, conferences
CFTC. held by CFTC
May 9, 2012................... From Chairman Spencer Requesting
Bachus and information on
Subcommittee on OCC's
Oversight and conference
Investigations planning
Chairman Randy policies and
Neugebauer to The expenditures
Honorable Thomas J. related to
Curry, Comptroller of conferences
the Currency, Office held by OCC
of Comptroller of the
Currency.
May 9, 2012................... From Chairman Spencer Requesting
Bachus and information on
Subcommittee on the OFR's
Oversight and conference
Investigations planning
Chairman Randy policies and
Neugebauer to Dr. expenditures
Richard Berner, related to
Department of the conferences
Treasury. held by OFR
May 9, 2012................... From Chairman Spencer Requesting
Bachus and information on
Subcommittee on Treasury's
Oversight and conference
Investigations planning
Chairman Randy policies and
Neugebauer to The expenditures
Honorable Timothy related to
Geithner, Secretary, conferences
Department of the held by
Treasury. Treasury
May 16, 2012.................. From Chairman Spencer Expressing
Bachus and Ranking concerns about
Member Barney Frank the potential
to Senator Harry lapse of the
Reid, Senator Mitch NFIP if
McConnell, Senator Congress did
Tim Johnson, and not take action
Senator Richard to reauthorize
Shelby. the program by
May 31, 2012
May 22, 2012.................. From Subcommittee on Memorializing in
Oversight and writing the May
Investigations 16, 2012
Chairman Randy agreement
Neugebauer and between the
Ranking Member Chairman,
Michael Capuano to Ranking Member,
The Honorable Shaun and HUD for HUD
Donovan, Secretary, to produce
HUD. records related
to the HOME
program
May 24, 2012.................. From Subcommittee on Regarding
Oversight and Supplemental
Investigations Notice of
Chairman Randy Proposed
Neugebauer to The Rulemaking for
Honorable Ben determining
Bernanke, Chairman, whether a
Federal Reserve Board. company is
``predominately
engaged in
financial
activities''
misinterprets
key provisions
of Dodd-Frank
June 20,2012.................. From Subcommittee on Requesting
Oversight and information on
Investigations OFR's plans to
Chairman Randy mitigate the
Neugebauer to Dr. burden on
Richard B. Berner, financial
Counselor, U.S. companies to
Department of the comply with
Treasury. Section 154 of
the Dodd-Frank
Wall Street
Reform and
Consumer
Protection Act.
July 9, 2012.................. From Subcommittee on Requesting
Oversight and copies of
Investigations transcripts on
Chairman Randy com-munications
Neugebauer to William with Barclays
Dudley, President, PLC regarding
Federal Reserve Bank the setting of
of New York. the London
Interbank
Offered Rate
(LIBOR).
July 23, 2012................. From Subcommittee on Requesting any
Oversight and com-munications
Investigations and documents
Chairman Randy related to the
Neugebauer to William reporting and
Dudley, President, submission of
Federal Reserve Bank the London
of New York. Interbank
Offered Rate
(LIBOR) that
were generated
between August
1, 2007 and
July 20, 2012.
August 2, 2012................ From Chairman Spencer Requesting an
Bachus to The extension of
Honorable Ben the comment
Bernanke, Chairman, period for the
Board of Governors of Basel III
the Federal Reserve proposed rules.
System.
October 5, 2012............... From Chairman Spencer The
Bachus, Subcommittee implementation
on Capital Markets of Title VII of
and Government the Dodd-Frank
Sponsored Enterprises Act.
Chairman Scott
Garrett, Committee on
Agriculture Chairman
Frank Lucas and
Subcommittee on
General Farm
Commodities and Risk
Management Chairman
K. Michael Conaway to
The Honorable Timothy
Geithner, Secretary,
U.S. Department of
the Treasury.
October 10, 2012.............. From Chairman Spencer The U.S.
Bachus, Vice Chairman Commodity
Jeb Hensarling, Futures Trading
Subcommittee on Commission's
Capital Markets and ``Position
Government Sponsored Limits Rule.''
Enterprises Chairman
Scott Garrett, and
Subcommittee on
Oversight and
Investigations
Chairman Randy
Neugebauer to The
Honorable Gary
Gensler, Chairman,
CFTC.
November 20, 2012............. From Subcommittee on Implementation
Capital Markets and of the JOBS
Government Sponsored Act.
Enterprises Chairman
Scott Garrett, The
Honorable Kevin
McCarthy, The
Honorable Patrick
McHenry to The
Honorable Mary
Schapiro, Chairman,
SEC.
November 29, 2012............. From Chairman Spencer Implementation
Bachus and Vice of Section 619
Chairman Jeb of the Dodd-
Hensarling to The Frank Wall
Honorable Ben Street Reform
Bernanke, Chairman, and Consumer
Board of Governors of Protection Act,
the Federal Reserve popularly known
System; The Honorable as the
Mary Schapiro, ``Volcker
Chairman, SEC; The Rule.''
Honorable Martin
Gruenberg, Chairman,
FDIC; The Honorable
Thomas Curry,
Comptroller of the
Currency, OCC; and
The Honorable Gary
Gensler, Chairman,
CFTC.
December 5, 2012.............. From Chairman Spencer The mandatory
Bachus to The sequestration
Honorable Harold order pursuant
Rogers, Chairman, and to the Budget
The Honorable Norm Control Act of
Dicks, Ranking 2011 and its
Member, Committee on impact on the
Appropriations. FASB, PCAOB and
SIPC.
------------------------------------------------------------------------
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. 830....................... 112-25............ FHA Refinance
Program
Termination Act
H.R. 836....................... 112-26............ Emergency Mortgage
Relief Program
Termination Act
H.R. 839....................... 112-31............ The HAMP
Termination Act of
2011
112-31, Part II... The HAMP
Termination Act of
2011
H.R. 861....................... 112-32............ NSP Termination Act
112-32, Part II... NSP Termination Act
H.R. 1315...................... 112-89............ Consumer Financial
Protection Safety
and Soundness
Improvement Act of
2011
112-89, Part II... Consumer Financial
Protection Safety
and Soundness
Improvement Act of
2011
H.R. 1667...................... 112-93............ Bureau of Consumer
Financial
Protection
Transfer
Clarification Act
112-93, Part II... Bureau of Consumer
Financial
Protection
Transfer
Clarification Act
H.R. 1309...................... 112-102........... Flood Insurance
Reform Act of 2011
H.R. 1121...................... 112-107........... Responsible
Consumer Financial
Protection
Regulations Act of
2011
112-107, Part II.. Responsible
Consumer Financial
Protection
Regulations Act of
2011
H.R. 1573...................... 112-109........... To facilitate
implementation of
Title VII of The
Dodd-Frank Wall
Street Reform and
Consumer Financial
Protection Act,
promote regulatory
coordination, and
avoid market
disruption.
112-121........... Of the Committee on
Financial Services
of the House of
Representative
during the One
Hundred Twelfth
Congress pursuant
to Clause 1(D)
Rule XI of the
Rules of the House
of
Representatives.
H.R. 33........................ 112-131........... Church Plan
Investment
Clarification Act
H.R. 1062...................... 112-142........... Burdensome Data
Collection Relief
Act
H.R. 1082...................... 112-143........... Small Business
Capital Access and
Job Preservation
Act
H.R. 2056...................... 112-182........... To instruct the
Inspector General
of the Federal
Deposit Insurance
Corporation to
study the impact
of the insured
depository
institution
failures, and for
other purposes.
H.R. 1751...................... 112-191........... CJ's Home
Protection Act of
2011
H.R. 1539...................... 112-196........... Asset-Backed Market
Stabilization Act
of 2011
H.R. 2072...................... 112-201........... Securing Jobs
through Exports
Act of 2011
H.R. 1070...................... 112-206........... Small Company
Capital Formation
Act of 2011
H.R. 2930...................... 112-262........... Entrepreneur Access
to Capital Act
H.R. 2940...................... 112-263........... Access to Capital
for Job Creators
Act
H.R. 2167...................... 112-327........... Private Company
Flexibility and
Growth Act
H.R. 2682...................... 112-343........... Business Risk
Mitigation and
Price
Stabilization Act
of 2011
H.R. 2779...................... 112-344........... To exempt inter-
affiliate swaps
from certain
regulatory
requirements put
in place by the
Dodd-Frank Wall
Street Reform and
Consumer
Protection Act.
H.R. 2586...................... 112-345........... Swap Execution
Facility
Clarification Act
112-355........... Of the Committee on
Financial Services
of the House of
Representatives
during the One
Hundred Twelfth
Congress pursuant
to Clause 1(D)
Rule XI of the
Rules of the House
of
Representatives.
H.R. 1221...................... 112-366........... Equity in
Government
Compensation Act
of 2011
H.R. 3606...................... 112-406........... Reopening American
Capital Markets to
Emerging Growth
Companies Act of
2011
112-406, Part II.. Reopening American
Capital Markets to
Emerging Growth
Companies Act of
2011
H.R. 940....................... 112-407........... United States
Covered Bond Act
of 2011
H.R. 4014...................... 112-417........... To amend the
Federal Deposit
Insurance Act with
respect to
information
provided to the
Bureau of Consumer
Financial
Protection.
H.R. 2308...................... 112-453........... SEC Regulatory
Accountability Act
H.R. 4235...................... 112-471........... Swap Data
Repository and
Clearinghouse
Indemnification
Correction Act of
2012
H.R. 1838...................... 112-476........... Swaps Bailout
Prevention Act
H.R. 3283...................... 112-477........... Swap Jurisdiction
Certainty Act
H.R. 4235...................... 112-544........... FHA Emergency
Fiscal Solvency
Act of 2012
112-559........... Third Semiannual
Report on the
Activity of the
Committee on
Financial Services
for the 112th
Congress
H.R. 1588...................... 112-565........... Consumer Rental
Purchase Agreement
Act
H.R. 3128...................... 112-566........... A bill to amend the
Dodd-Frank Wall
Street Reform and
consumer
Protection Act to
adjust the date on
which consolidated
assets are
determined for
purposes of
exempting certain
instruments of
smaller
institutions from
capital deductions
H.R. 4367...................... 112-576........... A bill to amend the
Electronic Fund
Transfer Act to
limit the fee
disclosure
requirement for an
automatic teller
machine to the
screen of that
machine
------------------------------------------------------------------------
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 between January 1, 2011 and December 31,
2012.
------------------------------------------------------------------------
Public Law No. Bill No. Title
------------------------------------------------------------------------
112-059....................... H.R. 2447........ To grant the
congressional gold
medal to the
Montford Point
Marines.
112-076....................... H.R. 3421........ Fallen Heroes of 9/11
Act
112-078....................... H.R. 3765........ Temporary Payroll Tax
Cut Continuation Act
of 2011
112-082....................... H.R. 515......... Belarus Democracy and
Human Rights Act of
2011
112-088....................... H.R. 2056........ To instruct the
Inspector General of
the Federal Deposit
Insurance
Corporation to study
the impact of
insured depository
institution
failures, and for
other purposes.
112-096....................... H.R. 3630........ Middle Class Tax
Relief and Job
Creation Act of 2012
112-104....................... H.R. 886......... United States
Marshals Service
225th Anniversary
Commemorative Coin
Act
112-106....................... H.R. 3606........ Jumpstart Our
Business Startups
112-122....................... H.R. 2072........ Export-Import Bank
Reauthorization Act
of 2012
112-123....................... H.R. 5740........ National Flood
Insurance Program
Extension Act
112-136....................... H.R. 5890........ To correct a
technical error in
Public Law 112-122
112-142....................... H.R. 33.......... Church Plan
Investment
Clarification Act
112-148....................... H.R. 3001........ Raoul Wallenberg
Centennial
Celebration Act
112-152....................... H.R. 2527........ National Baseball
Hall of Fame
Commemorative Coin
Act
112-158....................... H.R. 1905........ Iran Threat Reduction
and Syria Human
Rights Act of 2012
112-181....................... H.R. 2139........ Lions Clubs
International
Century of Service
Commemorative Coin
Act
112-192....................... H.R. 6431........ To provide
flexibility with
respect to United
States support for
assistance provided
by international
financial
institutions for
Burma, and for other
purposes.
112-201....................... H.R. 2453........ Mark Twain
commemorative Coin
Act
112-204....................... H.R. 6570........ To amend the American
Recovery and
Reinvestment Act of
2009 and the
Emergency Economic
Stabilization Act of
2008 to consolidate
certain CBO
reporting
requirements.
112-215....................... H.R. 4014........ To amend the Federal
Deposit Insurance
Act with respect to
information provided
to the Bureau of
Consumer Financial
Protection.
112-216....................... H.R. 4367........ To amend the
Electronic Fund
Transfer Act to
limit the fee
disclosure
requirement for an
automatic teller
machine to the
screen of that
machine.
112-.......................... S. 2367.......... 21st Century Language
Act of 2012
------------------------------------------------------------------------
APPENDIX II--COMMITTEE PUBLICATIONS
Part A--Committee Hearings
------------------------------------------------------------------------
Serial No. Title & Subcommittee Date(s)
------------------------------------------------------------------------
112-1............... Promoting Economic Recovery January 26, 2011
and Job Creation: The Road
Forward (Full Committee).
112-2............... GSE Reform: Immediate Steps February 9, 2011
to Protect Taxpayers and
End the Bailout (Capital
Markets).
112-3............... Can Monetary Policy Really February 9, 2011
Create Jobs? (Domestic
Monetary Policy).
112-4............... An Analysis of the Post- February 15, 2011
Conservatorship Legal
Expenses of Fannie Mae and
Freddie Mac (Oversight).
112-5............... Assessing the Regulatory, February 15, 2011
Economic and Market
Implications of the Dodd-
Frank Derivatives Title
(Full Committee).
112-6............... The Final Report of the February 16, 2011
Financial Crisis Inquiry
Commission (Full
Committee).
112-7............... Are There Government February 16, 2011
Barriers to the Housing
Market Recovery? (Housing).
112-8............... Understanding the Federal February 17, 2011
Reserve's Proposed Rule on
Interchange Fees:
Implications and
Consequences of the Durbin
Amendment (Financial
Institutions).
112-9............... Mortgage Finance Reform: An March 1, 2011
Examination of the Obama
Administration's Report to
Congress (Full Committee).
112-10.............. Oversight of the Department March 1, 2011
of Housing and Urban
Development (HUD) (Full
Committee).
112-11.............. Monetary Policy and the March 2, 2011
State of the Economy (Full
Committee).
112-12.............. The Effect of Dodd-Frank on March 2, 2011
Small Financial
Institutions and Small
Businesses (Financial
Institutions).
112-13.............. Legislative Proposals to March 2, 2011
End Taxpayer Funding for
Ineffective Foreclosure
Mitigation Programs
(Housing).
112-14.............. Oversight of the Securities March 10, 2011
and Exchange Commission's
Operations, Activities,
Challenges, and FY 2012
Budget Request (Capital
Markets).
112-15.............. The Role of the Export- March 10, 2011
Import Bank in U.S.
Competitiveness and Job
Creation (International
Monetary Policy).
112-16.............. Legislative Proposals to March 11, 2011
Reform the National Flood
Insurance Program, Part I
(Housing).
112-17.............. Legislative Proposals to March 11, 2011
Create a Covered Bond
Market in the United
States (Capital Markets).
112-18.............. Oversight of the Consumer March 16, 2011
Financial Protection
Bureau (Financial
Institutions).
112-19.............. Legislative Proposals to March 16, 2011
Promote Job Creation,
Capital Formation, and
Market Certainty (Capital
Markets).
112-20.............. The Relationship of March 17, 2011
Monetary Policy and Rising
Prices (Domestic Monetary
Policy).
112-21.............. The Costs of Implementing March 30, 2011
the Dodd-Frank Act:
Budgetary and Economic
(Oversight).
112-22.............. Legislative Hearing on March 31, 2011
Immediate Steps to Protect
Taxpayers from the Ongoing
Bailout of Fannie Mae and
Freddie Mac (Capital
Markets).
112-23.............. Legislative Proposals to April 1, 2011
Reform the National Flood
Insurance Program, Part II
(Housing).
112-24.............. Legislative Proposals to April 6, 2011
Improve the Structure of
the Consumer Financial
Protection Bureau
(Financial Institutions).
112-25.............. Bullion Coin Programs of April 7, 2011
the United States Mint:
Can They Be Improved?
(Domestic Monetary Policy).
112-26.............. Oversight of the Financial April 14, 2011
Stability Oversight
Council (Oversight).
112-27.............. Understanding the April 14, 2011
Implications and
Consequences of the
Proposed Rule on Risk
Retention (Capital
Markets).
112-28.............. Monetary Policy and the May 11, 2011
Debt Ceiling: Examining
the Relationship Between
the Federal Reserve and
Government Debt (Domestic
Monetary Policy).
112-29.............. Legislative Proposals to May 11, 2011
Address the Negative
Consequences of the Dodd-
Frank Whistleblower
Provisions (Capital
Markets).
112-30.............. The Stanford Ponzi Scheme: May 13, 2011
Lessons for Protecting
Investors from the Next
Securities Fraud
(Oversight).
112-31.............. Legislative Proposals on May 24, 2011
Securing American Jobs
Through Exports: Export-
Import Bank
Reauthorization
(International Monetary
Policy).
112-32.............. Legislative Proposals to May 25, 2011
Determine the Future Role
of FHA, RHS and GNMA in
the Single-and Multi-
Family Mortgage Markets
(Housing).
112-33.............. Transparency, Transition May 25, 2011
and Taxpayer Protection:
More Steps to End the GSE
Bailout (Capital Markets).
112-34.............. FDIC Oversight: Examining May 26, 2011
and Evaluating the Role of
the Regulator During the
Financial Crisis and Today
(Financial Institutions).
112-35.............. Federal Reserve Lending June 1, 2011
Disclosure: FOIA, Dodd-
Frank, and the Data Dump
(Domestic Monetary Policy).
112-36.............. Oversight of HUD's HOME June 3, 2011
Program (Full Committee).
112-37.............. Does the Dodd Frank Act End June 14, 2011
``Too Big to Fail''?
(Financial Institutions).
112-38.............. The Role of the U.S. in the June 14, 2011
World Bank and
Multilateral Development
Banks: Bank Oversight and
Requested Capital
Increases (International
Monetary Policy).
112-39.............. Financial Regulatory June 16, 2011
Reform: The International
Context (Full Committee).
112-40.............. Legislative Proposals to June 23, 2011
Reform the Housing Choice
Voucher Program (Housing).
112-41.............. Investigating the Gold: June 23, 2011
H.R. 1495, the Gold
Reserve Transparency Act
of 2011 and the Oversight
of United States Gold
Holdings (Domestic
Monetary Policy).
112-42.............. Oversight of the Mutual June 24, 2011
Fund Industry: Ensuring
Market Stability and
Investor Confidence
(Capital Markets).
112-43.............. Field Hearing entitled June 29, 2011
``Hacked Off: Helping Law
Enforcement Protect
Private Financial
Information'' (Full
Committee).
112-44.............. Joint Hearing entitled July 7, 2011
``Mortgage Servicing: An
Examination of the Role of
Federal Regulators in
Settlement Negotiations
and the Future of Mortgage
Servicing Standards''
(Financial Institutions/
Oversight).
112-45.............. Legislative Proposals July 8, 2011
Regarding Bank Examination
Practices (Financial
Institutions).
112-46.............. Monetary Policy and the July 13, 2011
State of the Economy (Full
Committee).
112-47.............. Mortgage Origination: The July 13, 2011
Impact of Recent Changes
on Homeowners and
Businesses (Housing).
112-48.............. Oversight of the Office of July 14, 2011
Financial Research and the
Financial Stability
Oversight Council
(Oversight).
112-49.............. Examining Rental Purchase July 26, 2011
Agreements and the
Potential Role for Federal
Regulation (Financial
Institutions).
112-50.............. Impact of Monetary Policy July 26, 2011
on the Economy: A Regional
Fed Perspective on
Inflation, Unemployment,
and QE3 (Domestic Monetary
Policy).
112-51.............. Oversight of the Credit July 27, 2011
Rating Agencies Post Dodd-
Frank (Oversight).
112-52.............. The Impact of the World July 27, 2011
Bank and Multilateral
Development Banks on U.S.
Job Creation
(International Monetary
Policy).
112-53.............. Insurance Oversight: Policy July 28, 2011
Implications for U.S.
Consumers, Businesses and
Jobs (Housing).
112-54.............. Field Hearing entitled August 16, 2011
``Potential Mixed
Messages: Is Guidance from
Washington Being
Implemented by Federal
Bank Examiners?''
(Financial Institutions).
112-55.............. Field hearing entitled September 6, 2011
``Combating Terror Post-9/
11: Oversight of the
Office of Terrorism and
Financial Intelligence''
(Oversight).
112-56.............. Field hearing entitled September 7, 2011
``Facilitating Continued
Investor Demand in the
U.S. Mortgage Market
Without a Government
Guarantee'' (Capital
Markets).
112-57.............. Legislative Proposals to September 8, 2011
Determine the Future Role
of FHA, RHS and GNMA in
the Single- and Multi-
Family Mortgage Markets,
Part 2 (Housing).
112-58.............. Ensuring Appropriate September 13, 2011
Regulatory Oversight of
Broker-Dealers and
Legislative Proposals to
Improve Investment Adviser
Oversight (Capital
Markets).
112-59.............. Road Map to Sound Money: A September 13, 2011
Legislative Hearing on
H.R. 1098 and Restoring
the Dollar (Domestic
Monetary Policy).
112-60.............. Cybersecurity: Threats to September 14, 2011
the Financial Sector
(Financial Institutions).
112-61.............. HUD and NeighborWorks September 14, 2011
Housing Counseling
Oversight (Housing).
112-62.............. Fixing the Watchdog: September 15, 2011
Legislative Proposals to
Improve and Enhance the
Securities and Exchange
Commission (Full
Committee).
112-63.............. Legislative Proposals to September 21, 2011
Facilitate Small Business
Capital Formation and Job
Creation (Capital Markets).
112-64.............. The Impact of the World September 21, 2011
Bank and Multilateral
Development Banks on
National Security
(International Monetary
Policy).
112-65.............. An Examination of the September 22, 2011
Availability of Credit for
Consumers (Financial
Institutions).
112-66.............. Joint Hearing with the September 22, 2011
Subcommittee on TARP,
Financial Services and
Bailouts of Public and
Private Programs of the
Committee on Oversight and
Government Reform entitled
``Potential Conflicts of
Interest at the SEC: The
Becker Case'' (Oversight).
112-67.............. Audit the Fed: Dodd-Frank, October 4, 2011
QE3, and Federal Reserve
Transparency (Domestic
Monetary Policy).
112-68.............. The World Bank and October 4, 2011
Multilateral Development
Banks' Authorization
(International Monetary
Policy).
112-69.............. The Obama Administration's October 6, 2011
Response to the Housing
Crisis (Housing).
112-70.............. The Annual Report of the October 6, 2011
Financial Stability
Oversight Council (Full
Committee).
112-71.............. Oversight of the Federal October 12, 2011
Home Loan Bank System
(Oversight).
112-72.............. H.R. 1418: The Small October 12, 2011
Business Lending
Enhancement Act of 2011
(Financial Institutions).
112-73.............. The U.S. Housing Finance October 13, 2011
System in the Global
Context: Structure,
Capital Sources, and
Housing Dynamics
(International Monetary
Policy).
112-74.............. The Section 8 Savings Act October 13, 2011
of 2011: Proposals to
Promote Economic
Independence for Assisted
Families (Housing).
112-75.............. Legislative Proposals to October 14, 2011
Bring Certainty to the
Over-the-Counter
Derivatives Market
(Capital Markets).
112-76.............. The Eurozone Crisis and October 25, 2011
Implications for the
United States
(International Monetary
Policy and Trade).
112-77.............. Insurance Oversight: Policy October 25, 2011
Implications for U.S.
Consumers, Businesses and
Jobs, Part 2 (Housing).
112-78.............. Proposed Regulations to October 27, 2011
Require Reporting of
Nonresident Alien Deposit
Interest Income (Financial
Institutions).
112-79.............. Field Hearing entitled October 31, 2011
``Regulatory Reform:
Examining How New
Regulations are Impacting
Financial Institutions,
Small Businesses and
Consumers'' (Financial
Institutions).
112-80.............. The Consumer Financial November 2, 2011
Protection Bureau: The
First 100 Days (Financial
Institutions).
112-81.............. Joint Hearing entitled November 2, 2011
``Fraud in the HUD HOME
Program'' (Oversight/
Housing).
112-82.............. H.R. __, the Private November 3, 2011
Mortgage Market Investment
Act (Capital Markets).
112-83.............. The Obama Administration's November 3, 2011
Rental Assistance
Demonstration Proposal
(Housing).
112-84.............. Insurance Oversight and November 16, 2011
Legislative Proposals
(Housing).
112-85.............. Joint Hearing entitled November 16, 2011
``H.R. 1697, The
Communities First Act''
(Capital Markets/Financial
Institutions).
112-86.............. Field hearing entitled November 29, 2011
``The State of
Manufactured Housing''
(Housing).
112-87.............. Perspectives on the Health December 1, 2011
of the FHA Single-family
Insurance Fund (Full
Committee).
112-88.............. Oversight of the Federal December 1, 2011
Housing Finance Agency
(Oversight).
112-89.............. Field Hearing entitled December 5, 2011
``Regulatory Reform:
Examining How New
Regulations are Impacting
Financial Institutions,
Small Businesses and
Consumers in Illinois''
(Full Committee).
112-90.............. H.R. 1148, the Stop Trading December 6, 2011
on Congressional Knowledge
Act (Full Committee).
112-91.............. H.R. __, the Private December 7, 2011
Mortgage Market Investment
Act, Part 2 (Capital
Markets).
112-92.............. ``H.R. 3606, the December 15, 2011
``Reopening American
Capital Markets to
Emerging Growth Companies
Act of 2011'' (Capital
Markets).
112-93.............. ``The Homeless Children and December 15, 2011
Youth Act of 2011:
Proposals to Promote
Economic Independence for
Homeless Children and
Youth'' (Housing).
112-94.............. ``The Collapse of MF December 15, 2011
Global'' (Oversight).
112-95.............. Joint hearing entitled January 18, 2012
``Examining the Impact of
the Volcker Rule on
Markets, Businesses,
Investors and Job
Creation'' (Capital
Markets/Financial
Institutions).
112-96.............. ``Implementation of the February 1, 2012
Manufactured Housing
Improvement Act of 2000''
(Housing).
112-97.............. ``H.R. 3461: the Financial February 1, 2012
Institutions Examination
Fairness and Reform Act''
(Financial Institutions).
112-98.............. ``The Collapse of MF February 2, 2012
Global: Part 2''
(Oversight).
112-99.............. ``Legislative Proposals to February 8, 2012
Promote Accountability and
Transparency at the
Consumer Financial
Protection Bureau''
(Financial Institutions).
112-100............. ``Limiting the February 8, 2012
Extraterritorial Impact of
Title VII of the Dodd-
Frank Act'' (Capital
Markets).
112-101............. ``Budget Hearing--Consumer February 15, 2012
Financial Protection
Bureau'' (Oversight).
112-102............. ``Oversight of the February 28, 2012
Department of Housing and
Urban Development''
(Housing).
112-103............. ``Monetary Policy and the February 29, 2012
State of the Economy''
(Full Committee).
112-104............. ``Understanding the Effects March 1, 2012
of the Repeal of
Regulation Q on Financial
Institutions and Small
Businesses'' (Financial
Institutions).
112-105............. ``The Securities Investor March 7, 2012
Protection Corporation:
Past, Present, and
Future'' (Capital Markets).
112-106............. Field hearing entitled ``An March 14, 2012
Examination of the
Challenges Facing
Community Financial
Institutions in Texas''
(Financial Institutions).
112-107............. Field hearing entitled ``An March 15, 2012
Examination of Potential
Private Sector Solutions
to Mitigate Foreclosures
in Nevada'' (Financial
Institutions).
112-108............. ``Hearing to Receive the March 20, 2012
Annual Testimony of the
Secretary of the Treasury
on the State of the
International Financial
System'' (Full Committee).
112-109............. ``H.R. ___, the Swap Data March 21, 2012
Repository and
Clearinghouse
Indemnification Correction
Act of 2012'' (Capital
Markets).
112-110............. ``The Future of Money: How March 22, 2012
Mobile Payments Could
Change Financial
Services'' (Financial
Institutions).
112-111............. ``Federal Reserve Aid to March 27, 2012
the Eurozone: Its Impact
on the U.S. and the
Dollar'' (Domestic
Monetary Policy).
112-112............. ``Accounting and Auditing March 28, 2012
Oversight: Pending
Proposals and Emerging
Issues Confronting
Regulators, Standard
Setters and the Economy''
(Capital Markets).
112-113............. ``The Collapse of MF March 28, 2012
Global: Part 3''
(Oversight).
112-114............. ``The Semi-Annual Report of March 29, 2012
the Consumer Financial
Protection Bureau'' (Full
Committee).
112-115............. Field hearing entitled April 14, 2012
``The Impact of Overhead
High Voltage Transmission
Towers and Lines on
Eligibility for Federal
Housing Administration
(FHA) Insured Mortgage
Programs'' (Housing).
112-116............. Field hearing entitled ``An April 16, 2012
Examination of the
Challenges Facing
Community Financial
Institutions in Ohio''
(Financial Institutions).
112-117............. ``The Future of Money: April 17, 2012
Coinage Production''
(Domestic Monetary Policy).
112-118............. ``Budget Hearing--the April 19, 2012
Office of Financial
Research'' (Oversight).
112-119............. ``Oversight of the U.S. April 25, 2012
Securities and Exchange
Commission'' (Capital
Markets).
112-120............. Field hearing entitled ``An May 7, 2012
Examination of the Federal
Housing Finance Agency's
Real Estate Owned (REO)
Pilot Program'' (Capital
Markets).
112-121............. ``Improving the Federal May 8, 2012
Reserve System: Examining
Legislation to Reform the
Fed and Other
Alternatives'' (Domestic
Monetary Policy).
112-122............. ``Rising Regulatory May 9, 2012
Compliance Costs and Their
Impact on the Health of
Small Financial
Institutions'' (Financial
Institutions).
112-123............. ``Oversight of the Federal May 9, 2012
Housing Administration's
Reverse Mortgage Program
for Seniors'' (Housing).
112-124............. ``The Costs and May 10, 2012
Consequences of Dodd-Frank
Section 1502: Impacts on
America and the Congo''
(International Monetary
Policy).
112-125............. ``The Impact of the Dodd- May 16, 2012
Frank Act: What It Means
to be a Systemically
Important Financial
Institution'' (Financial
Institutions).
112-126............. ``Increasing Market Access May 16, 2012
for U.S. Financial Firms
in China: Update on
Progress of the Strategic
& Economic Dialogue''
(International Monetary
Policy).
112-127............. ``Oversight of the Federal May 16, 2012
Deposit Insurance
Corporation's Structured
Transaction Program''
(Oversight).
112-128............. ``Examining the Settlement May 17, 2012
Practices of U.S.
Financial Regulators''
(Full Committee).
112-129............. ``U.S. Insurance Sector: May 17, 2012
International
Competitiveness and Jobs''
(Housing).
112-130............. ``The Impact of the Dodd- May 18, 2012
Frank Act: Understanding
Heightened Regulatory
Capital Requirements''
(Financial Institutions).
112-131............. ``Cyber Threats to Capital June 1, 2012
Markets and Corporate
Accounts'' (Capital
Markets).
112-132............. H.R. 4624, the Investment June 6, 2012
Adviser Oversight Act of
2012 (Full Committee).
112-133............. An Examination of the June 6, 2012
Federal Reserve's Final
Rule on the CARD Act's
`Ability to Repay'
Requirement (Financial
Institutions).
112-134............. Oversight of Federal June 7, 2012
Housing Administration's
Multifamily Insurance
Programs (Housing).
112-135............. Investor Protection: The June 7, 2012
Need to Protect Investors
from the Government
(Capital Markets).
112-136............. Examining Bank Supervision June 19, 2012
and Risk Management in
Light of JPMorgan Chase's
Trading Loss (Full
Committee).
112-137............. Market Structure: Ensuring June 20, 2012
Orderly, Efficient,
Innovative and Competitive
Markets for Issuers and
Investors (Capital
Markets).
112-138............. Mortgage Disclosures: How June 20, 2012
Do We Cut Red Tape for
Consumers and Small
Businesses? (Housing).
112-139............. Safe and Fair Supervision June 21, 2012
of Money Services
Businesses (Financial
Institutions).
112-140............. Appraisal Oversight: The June 28, 2012
Regulatory Impact on
Consumers and Businesses
(Housing).
112-141............. Fractional Reserve Banking June 28, 2012
and the Federal Reserve:
The Economic Consequences
of High-Powered Money
(Domestic Monetary Policy).
112-142............. The Future of Money: Where June 29, 2012
Do Mobile Payments Fit In
the Current Regulatory
Structure? (Financial
Institutions).
112-143............. The Impact of Dodd-Frank on July 10, 2012
Customers, Credit, and Job
Creators (Capital Markets).
112-144............. The Impact of Dodd-Frank's July 11, 2012
Home Mortgage Reforms:
Consumer and Market
Perspectives (Financial
Institutions).
112-145............. Monetary Policy and the July 18, 2012
State of the Economy (Full
Committee).
112-146............. Who's In Your Wallet? Dodd- July 19, 2012
Frank's Impact on
Families, Communities and
Small Businesses
(Oversight).
112-147............. The Impact of Dodd-Frank on July 19, 2012
Consumer Choice and Access
to Credit (Financial
Institutions).
112-148............. The Impact of the Dodd- July 20, 2012
Frank Act on Municipal
Finance (Capital Markets).
112-149............. Examining Consumer Credit July 24, 2012
Access Concerns, New
Products and Federal
Regulations (Financial
Institutions).
112-150............. The Impact of Dodd-Frank's July 24, 2012
Insurance Regulations on
Consumers, Job Creators,
and the Economy (Housing).
112-151............. The Annual Report of the July 25, 2012
Financial Stability
Oversight Council (Full
Committee).
112-152............. The 10th Anniversary of the July 26, 2012
Sarbanes-Oxley Act
(Capital Markets).
112-153............. Sound Money: Parallel August 2, 2012
Currencies and the Roadmap
to Monetary Freedom
(Domestic Monetary Policy).
112-154............. Field hearing entitled ``An August 20, 2012
Examination of the
Challenges Facing
Community Financial
Institutions in West
Virginia'' (Financial
Institutions).
112-155............. TRIA at Ten Years: The September 11, 2012
Future of the Terrorism
Risk Insurance Program
(Housing).
112-156............. Joint Hearing with the September 13, 2012
Subcommittee on TARP,
Financial Services and
Bailouts of Public and
Private Programs of the
Committee on Oversight and
Government Reform entitled
``The JOBS Act: Importance
of Prompt Implementation
for Entrepreneurs, Capital
Formation, and Job
Creation'' (Capital
Markets).
112-157............. Examining the Uses of September 13, 2012
Consumer Credit Data
(Financial Institutions).
112-158............. Housing for Heroes: September 14, 2012
Examining How Federal
Programs Can Better Serve
Veterans (Housing).
112-159............. The Semi-Annual Report of September 20, 2012
the Consumer Financial
Protection Bureau (Full
Committee).
112-160............. The Price of Money: September 21, 2012
Consequences of the
Federal Reserve's Zero
Interest Rate Policy
(Domestic Monetary Policy).
112-161............. Joint hearing entitled November 29, 2012
``Examining the Impact of
the Proposed Rules to
Implement Basel III
Capital Standards''
(Financial Institutions/
Housing).
112-162............. The Future of Money: November 29, 2012
Dollars and Sense
(Domestic Monetary Policy).
112-163............. Challenges Facing the U.S. December 12, 2012
Capital Markets to
Effectively Implement
Title VII of the Dodd-
Frank Act (Capital
Markets).
112-164............. Examining the Impact of the December 13, 2012
Volcker Rule on Markets,
Businesses, Investors and
Job Creation, Part II
(Full Committee).
------------------------------------------------------------------------
Part B--Committee Prints
------------------------------------------------------------------------
Serial No. Title Date
------------------------------------------------------------------------
112-A................. Rules for the Committee on March 2011
Financial Services for
the 112th Congress.
------------------------------------------------------------------------