[House Report 111-702]
[From the U.S. Government Publishing Office]
111th Congress
2d Session HOUSE OF REPRESENTATIVES Report
111-702
_______________________________________________________________________
Union Calendar No. 425
REPORT ON THE ACTIVITY
of the
COMMITTEE ON FINANCIAL SERVICES
for the
ONE HUNDRED ELEVENTH CONGRESS
January 3, 2011.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
LETTER OF TRANSMITTAL
----------
House of Representatives,
Committee on Financial Services,
Washington, DC, January 3, 2011.
Hon. Lorraine C. Miller,
Clerk, House of Representatives,
Washington, DC.
Dear Ms. Miller: Pursuant to clause 1(d) of rule XI of the
Rules of the House of Representatives for the 111th Congress, I
present herewith a report on the activity of the Committee on
Financial Services for the 111th Congress, including the
Committee's review and study of legislation within its
jurisdiction, and the oversight activities undertaken by the
Committee.
Sincerely,
Barney Frank,
Chairman.
C O N T E N T S
----------
Page
Letter of Transmittal............................................ III
Jurisdiction..................................................... 1
Rules of the Committee........................................... 4
Membership and Organization...................................... 17
Legislative and Oversight Activities............................. 27
Full Committee................................................... 55
Subcommittee on Capital Markets, Insurance, and Government
Sponsored Enterprises.......................................... 89
Subcommittee on Domestic Monetary Policy and Technology.......... 113
Subcommittee on Financial Institutions and Consumer Credit....... 116
Subcommittee on Housing and Community Opportunity................ 125
Subcommittee on International Monetary Policy and Trade.......... 137
Subcommittee on Oversight and Investigations..................... 145
Oversight Plan for the 111th Congress............................ 153
Implementation of the Oversight Plan for the 111th Congress...... 182
House Resolution 40 Hearings..................................... 238
Appendix I--Committee Legislation: Committee Reports and Public
Laws........................................................... 243
Appendix II--Committee Publications: Committee Hearings and
Committee Prints............................................... 244
Union Calendar No. 425
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-702
======================================================================
REPORT ON THE ACTIVITY OF THE COMMITTEE ON FINANCIAL SERVICES FOR THE
111TH CONGRESS
_______
January 3, 2011.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Frank, from the Committee on Financial Services,
submitted the following
R E P O R T
Clause 1(d) of rule XI of the Rules of the House of
Representatives for the 111th Congress requires that each
standing Committee, not later than January 2 of each odd-
numbered year, submit to the House a report on the activities
of that Committee, including separate sections summarizing the
legislative and oversight activities of that Committee during
that Congress.
JURISDICTION
Rules of the House
Clause 1(g) of rule X of the Rules of the House of
Representatives for the 111th Congress sets forth the
jurisdiction of the Committee on Financial Services as
follows--
(1) Banks and banking, including deposit insurance and
Federal monetary policy.
(2) Economic stabilization, defense production,
renegotiation, and control of the price of commodities, rents,
and services.
(3) Financial aid to commerce and industry (other than
transportation).
(4) Insurance generally.
(5) International finance.
(6) International financial and monetary organization.
(7) Money and credit, including currency and the issuance
of notes and redemption thereof; gold and silver, including the
coinage thereof; valuation and revaluation of the dollar.
(8) Public and private housing.
(9) Securities and exchanges.
(10) Urban development.
Memorandum of Understanding
The Committee on Financial Services was established when
the House agreed to H. Res. 5, establishing the Rules of the
House of Representatives for the 107th Congress, on January 3,
2001. The jurisdiction of the Committee on Financial Services
consists of the jurisdiction granted the Committee on Banking
and Financial Services in the 106th Congress, along with
jurisdiction over insurance generally and securities and
exchanges, matters which had previously been within the
jurisdiction of the Committee on Commerce in the 106th and
previous Congresses. On January 20, 2001,\1\ the Speaker
inserted the following memorandum of understanding between the
chairmen of the Committee on Financial Services and the
Committee on Energy and Commerce further clarifying these
jurisdictional changes--
---------------------------------------------------------------------------
\1\ The version of the memorandum printed in the January 20, 2001
Congressional Record contained a typographic error. A corrected version
of the memorandum, which appears below, was printed in the January 30,
2001 edition of the Congressional Record.
---------------------------------------------------------------------------
January 20, 2001.
On January 3, 2001, the House agreed to H. Res. 5,
establishing the rules of the House for the 107th Congress.
Section 2(d) of H. Res. 5 contained a provision renaming the
Banking Committee as the Financial Services Committee and
transferring jurisdiction over securities and exchanges and
insurance from the Commerce Committee to the Financial Services
Committee. The Commerce Committee was also renamed the Energy
and Commerce Committee.
The Committee on Energy and Commerce and the Committee on
Financial Services jointly acknowledge as the authoritative
source of legislative history concerning section 2(d) of H.
Res. 5 the following statement of Rules Committee Chairman
David Dreier during floor consideration of the resolution:
``In what is obviously one of our most significant changes,
Mr. Speaker, section 2(d) of the resolution establishes a new
Committee on Financial Services, which will have jurisdiction
over the following matters:
``(1) banks and banking, including deposit insurance and
Federal monetary policy;
``(2) economic stabilization, defense production,
renegotiation, and control of the price of commodities, rents,
and services;
``(3) financial aid to commerce and industry (other than
transportation);
``(4) insurance generally;
``(5) international finance;
``(6) international financial and monetary organizations;
``(7) money and credit, including currency and the issuance
of notes and redemption thereof; gold and silver, including the
coinage thereof; valuation and revaluation of the dollar;
``(8) public and private housing;
``(9) securities and exchanges; and
``(10) urban development.
``Mr. Speaker, jurisdiction over matters relating to
securities and exchanges is transferred in its entirety from
the Committee on Commerce, which will be redesignated under
this rules change to the Committee on Energy and Commerce, and
it will now be transferred from the new Committee on Energy and
Commerce to this new Committee on Financial Services. This
transfer is not intended to convey to the Committee on
Financial Services jurisdiction currently in the Committee on
Agriculture regarding commodity exchanges.
``Furthermore, this change is not intended to convey to the
Committee on Financial Services jurisdiction over matters
relating to regulation and SEC oversight of multi-State public
utility holding companies and their subsidiaries, which remain
essentially matters of energy policy.
``Mr. Speaker, as a result of the transfer of jurisdiction
over matters relating to securities and exchanges, redundant
jurisdiction over matters relating to bank capital markets
activities generally and depository institutions securities
activities, which were formerly matters in the jurisdiction of
the Committee on Banking and Financial Services, have been
removed from clause 1 of rule X.
``Matters relating to insurance generally, formerly within
the jurisdiction of the redesignated Committee on Energy and
Commerce, are transferred to the jurisdiction of the Committee
on Financial Services.
``The transfer of any jurisdiction to the Committee on
Financial Services is not intended to limit the Committee on
Energy and Commerce's jurisdiction over consumer affairs and
consumer protection matters.
``Likewise, existing health insurance jurisdiction is not
transferred as a result of this change.
``Furthermore, the existing jurisdictions of other
committees with respect to matters relating to crop insurance,
Workers' Compensation, insurance anti-trust matters, disaster
insurance, veterans' life and health insurance, and national
social security policy are not affected by this change.
``Finally, Mr. Speaker, the changes and legislative history
involving the Committee on Financial Services and the Committee
on Energy and Commerce do not preclude future memorandum of
understanding between the chairmen of these respective
committees.''
By this memorandum the two committees undertake to record
their further mutual understandings in this matter, which will
supplement the statement quoted above.
It is agreed that the Committee on Energy and Commerce will
retain jurisdiction over bills dealing broadly with electronic
commerce, including electronic communications networks (ECNs).
However, a bill amending the securities laws to address the
specific type of electronic securities transaction currently
governed by a special SEC regulation as an Alternative Trading
System (ATS) would be referred to the Committee on Financial
Services.
While it is agreed that the jurisdiction of the Committee
on Financial Services over securities and exchanges includes
anti-fraud authorities under the securities laws, the Committee
on Energy and Commerce will retain jurisdiction only over the
issue of setting of accounting standards by the Financial
Accounting Standards Board.
W.J. ``Billy'' Tauzin,
Chairman, Committee on
Energy and Commerce,
Michael G. Oxley,
Chairman, Committee on
Financial Services.
However, on the opening day of the 109th Congress (January
4, 2005), the following announcement was made by the Speaker:
The SPEAKER. Based on discussions with the relevant committees,
the further mutual understandings contained in the final two
paragraphs of the ``Memorandum of Understanding Between Energy
and Commerce Committee and Financial Services Committee'' dated
January 30, 2001, shall no longer provide jurisdictional
guidance.
RULES OF THE COMMITTEE ON FINANCIAL SERVICES FOR THE ONE HUNDRED
ELEVENTH CONGRESS
Rule 1
GENERAL PROVISIONS
(a) The rules of the House are the rules of the Committee
on Financial Services (hereinafter in these rules referred to
as the ``Committee'') and its subcommittees so far as
applicable, except that a motion to recess from day to day, and
a motion to dispense with the first reading (in full) of a bill
or resolution, if printed copies are available, are privileged
motions in the Committee and shall be considered without
debate. A proposed investigative or oversight report shall be
considered as read if it has been available to the members of
the Committee for at least 24 hours (excluding Saturdays,
Sundays, or legal holidays except when the House is in session
on such day).
(b) Each subcommittee is a part of the Committee, and is
subject to the authority and direction of the Committee and to
its rules so far as applicable.
(c) The provisions of clause 2 of rule XI of the Rules of
the House are incorporated by reference as the rules of the
Committee to the extent applicable.
Rule 2
MEETINGS
Calling of Meetings
(a)(1) The Committee shall regularly meet on the first
Tuesday of each month when the House is in session.
(2) A regular meeting of the Committee may be dispensed
with if, in the judgment of the Chairman of the Committee
(hereinafter in these rules referred to as the ``Chair''),
there is no need for the meeting.
(3) Additional regular meetings and hearings of the
Committee may be called by the Chair, in accordance with clause
2(g)(3) of rule XI of the rules of the House.
(4) Special meetings shall be called and convened by the
Chair as provided in clause 2(c)(2) of rule XI of the Rules of
the House.
Notice for Meetings
(b)(1) The Chair shall notify each member of the Committee
of the agenda of each regular meeting of the Committee at least
two calendar days before the time of the meeting.
(2) The Chair shall provide to each member of the
Committee, at least two calendar days before the time of each
regular meeting for each measure or matter on the agenda a copy
of--
(A) the measure or materials relating to the matter
in question; and
(B) an explanation of the measure or matter to be
considered, which, in the case of an explanation of a
bill, resolution, or similar measure, shall include a
summary of the major provisions of the legislation, an
explanation of the relationship of the measure to
present law, and a summary of the need for the
legislation.
(3) The agenda and materials required under this subsection
shall be provided to each member of the Committee at least
three calendar days before the time of the meeting where the
measure or matter to be considered was not approved for full
Committee consideration by a subcommittee of jurisdiction.
(4) The provisions of this subsection may be waived by a
two-thirds vote of the Committee, or by the Chair with the
concurrence of the ranking minority member.
Rule 3
MEETING AND HEARING PROCEDURES
In General
(a)(1) Meetings and hearings of the Committee shall be
called to order and presided over by the Chair or, in the
Chair's absence, by the member designated by the Chair as the
Vice Chair of the Committee, or by the ranking majority member
of the Committee present as Acting Chair.
(2) Meetings and hearings of the Committee shall be open to
the public unless closed in accordance with clause 2(g) of rule
XI of the Rules of the House.
(3) Any meeting or hearing of the Committee that is open to
the public shall be open to coverage by television broadcast,
radio broadcast, and still photography in accordance with the
provisions of clause 4 of rule XI of the Rules of the House
(which are incorporated by reference as part of these rules).
Operation and use of any Committee operated broadcast system
shall be fair and nonpartisan and in accordance with clause
4(b) of rule XI and all other applicable rules of the Committee
and the House.
(4) Opening statements by members at the beginning of any
hearing or meeting of the Committee shall be limited to 5
minutes each for the Chair or ranking minority member, or their
respective designee, and 3 minutes each for all other members.
(5) No person, other than a Member of Congress, Committee
staff, or an employee of a Member when that Member has an
amendment under consideration, may stand in or be seated at the
rostrum area of the Committee rooms unless the Chair determines
otherwise.
Quorum
(b)(1) For the purpose of taking testimony and receiving
evidence, two members of the Committee shall constitute a
quorum.
(2) A majority of the members of the Committee shall
constitute a quorum for the purposes of reporting any measure
or matter, of authorizing a subpoena, of closing a meeting or
hearing pursuant to clause 2(g) of rule XI of the rules of the
House (except as provided in clause 2(g)(2)(A) and (B)) or of
releasing executive session material pursuant to clause 2(k)(7)
of rule XI of the rules of the House.
(3) For the purpose of taking any action other than those
specified in paragraph (2) one-third of the members of the
Committee shall constitute a quorum.
Voting
(c)(1) No vote may be conducted on any measure or matter
pending before the Committee unless the requisite number of
members of the Committee is actually present for such purpose.
(2) A record vote of the Committee shall be provided on any
question before the Committee upon the request of one-fifth of
the members present.
(3) No vote by any member of the Committee on any measure
or matter may be cast by proxy.
(4) In addition to any other requirement of these rules or
the Rules of the House, the Chair shall make the record of the
votes on any question on which a record vote is demanded
available on the Committee's Web site not later than 2 business
days after such vote is taken. Such record shall include a
description of the amendment, motion, order, or other
proposition, the name of each member voting for and each member
voting against such amendment, motion, order, or proposition,
and the names of those members of the committee present but not
voting.
(5) In accordance with clause 2(e)(1)(B) of rule XI, a
record of the vote of each member of the Committee on each
record vote on any measure or matter before the Committee shall
be available for public inspection at the offices of the
Committee, and, with respect to any record vote on any motion
to report or on any amendment, shall be included in the report
of the Committee showing the total number of votes cast for and
against and the names of those members voting for and against.
(6) Postponed record votes.--(A) Subject to subparagraph
(B), the Chairman may postpone further proceedings when a
record vote is ordered on the question of approving any measure
or matter or adopting an amendment. The Chairman may resume
proceedings on a postponed request at any time, but no later
than the next meeting day.
(B) In exercising postponement authority under
subparagraph (A), the Chairman shall take all
reasonable steps necessary to notify members on the
resumption of proceedings on any postponed record vote;
(C) When proceedings resume on a postponed question,
not-withstanding any intervening order for the previous
question, an underlying proposition shall remain
subject to further debate or amendment to the same
extent as when the question was postponed.
Hearing Procedures
(d)(1)(A) The Chair shall make public announcement of the
date, place, and subject matter of any committee hearing at
least one week before the commencement of the hearing, unless
the Chair, with the concurrence of the ranking minority member,
or the Committee by majority vote with a quorum present for the
transaction of business, determines there is good cause to
begin the hearing sooner, in which case the Chair shall make
the announcement at the earliest possible date.
(B) Not less than three days before the commencement of a
hearing announced under this paragraph, the Chair shall provide
to the members of the Committee a concise summary of the
subject of the hearing, or, in the case of a hearing on a
measure or matter, a copy of the measure or materials relating
to the matter in question and a concise explanation of the
measure or matter to be considered. At the same time the Chair
provides the information required by the preceding sentence,
the Chair shall also provide to the members of the Committee a
final list consisting of the names of each witness who is to
appear before the Committee at that hearing. The witness list
may not be modified within 24 hours of a hearing, unless the
Chair, with the concurrence of the ranking minority member,
determines there is good cause for such modification.
(2) To the greatest extent practicable--
(A) each witness who is to appear before the
Committee shall file with the Committee two business
days in advance of the appearance sufficient copies
(including a copy in electronic form), as determined by
the Chair, of a written statement of proposed testimony
and shall limit the oral presentation to the Committee
to a brief summary thereof; and
(B) each witness appearing in a non-governmental
capacity shall include with the written statement of
proposed testimony a curriculum vitae and a disclosure
of the amount and source (by agency and program) of any
Federal grant (or subgrant thereof) or contract (or
subcontract thereof) received during the current fiscal
year or either of the two preceding fiscal years.
(3) The requirements of paragraph (2)(A) may be modified or
waived by the Chair when the Chair determines it to be in the
best interest of the Committee.
(4) The five-minute rule shall be observed in the
interrogation of witnesses before the Committee until each
member of the Committee has had an opportunity to question the
witnesses. No member shall be recognized for a second period of
five minutes to interrogate witnesses until each member of the
Committee present has been recognized once for that purpose.
(5) Whenever any hearing is conducted by the Committee on
any measure or matter, the minority party members of the
Committee shall be entitled, upon the request of a majority of
them before the completion of the hearing, to call witnesses
with respect to that measure or matter during at least one day
of hearing thereon.
Subpoenas and Oaths
(e)(1) Pursuant to clause 2(m) of rule XI of the Rules of
the House, a subpoena may be authorized and issued by the
Committee or a subcommittee in the conduct of any investigation
or series of investigations or activities, only when authorized
by a majority of the members voting, a majority being present,
or pursuant to paragraph (2).
(2) The Chair, with the concurrence of the ranking minority
member, may authorize and issue subpoenas under such clause
during any period for which the House has adjourned for a
period in excess of 3 days when, in the opinion of the Chair,
authorization and issuance of the subpoena is necessary to
obtain the material or testimony set forth in the subpoena. The
Chair shall report to the members of the Committee on the
authorization and issuance of a subpoena during the recess
period as soon as practicable, but in no event later than one
week after service of such subpoena.
(3) Authorized subpoenas shall be signed by the Chair or by
any member designated by the Committee, and may be served by
any person designated by the Chair or such member.
(4) The Chair, or any member of the Committee designated by
the Chair, may administer oaths to witnesses before the
Committee.
Special Procedures
(f)(1)(A) Commemorative medals and coins. It shall not be
in order for the Subcommittee on Domestic Monetary Policy and
Technology to hold a hearing on any commemorative medal or
commemorative coin legislation unless the legislation is
cosponsored by at least two-thirds of the Members of the House.
(B) It shall not be in order for the subcommittee to
approve a bill or measure authorizing commemorative coins for
consideration by the full Committee which does not conform with
the mintage restrictions established by section 5112 of title
31, United States Code.
(C) In considering legislation authorizing Congressional
gold medals, the subcommittee shall apply the following
standards--
(i) the recipient shall be a natural person;
(ii) the recipient shall have performed an
achievement that has an impact on American history and
culture that is likely to be recognized as a major
achievement in the recipient's field long after the
achievement;
(iii) the recipient shall not have received a medal
previously for the same or substantially the same
achievement;
(iv) the recipient shall be living or, if deceased,
shall have been deceased for not less than 5 years and
not more than 25 years;
(v) the achievements were performed in the
recipient's field of endeavor, and represent either a
lifetime of continuous superior achievements or a
single achievement so significant that the recipient is
recognized and acclaimed by others in the same field,
as evidenced by the recipient having received the
highest honors in the field.
(2) Testimony of certain officials.--
(A) Notwithstanding subsection (a)(4), when the Chair
announces a hearing of the Committee for the purpose of
receiving--
(i) testimony from the Chairman of the
Federal Reserve Board pursuant to section 2B of
the Federal Reserve Act (12 U.S.C. 221 et
seq.), or
(ii) testimony from the Chairman of the
Federal Reserve Board or a member of the
President's cabinet at the invitation of the
Chair, the Chair may, in consultation with the
ranking minority member, limit the number and
duration of opening statements to be delivered
at such hearing. The limitation shall be
included in the announcement made pursuant to
subsection (d)(1)(A), and shall provide that
the opening statements of all members of the
Committee shall be made a part of the hearing
record. The Chair shall provide that the
opening statements for all members of the
Committee shall be made a part of the hearing
record.
(B) Not withstanding subsection (a)(4), at any
hearing of the Committee for the purpose of receiving
testimony (other than testimony described in clause (i)
or (ii) of subparagraph (A), the Chair may, after
consultation with the ranking minority member, limit
the duration of opening statements to ten minutes, to
be divided between the chair and Chair of the pertinent
subcommittee, or the Chair's designees, and ten minutes
to be controlled by the ranking minority member, or the
ranking minority member's designees. Following such
time, the duration for opening statements may be
extended by agreement between the Chairman and ranking
minority member to be divided at the discretion of the
Chair or ranking minority member. The Chair shall
provide that the opening statements for all members of
the Committee shall be made a part of the hearing
record.
(C) At any hearing of a subcommittee, the Chair of
the subcommittee may, in consultation with the ranking
minority member of the subcommittee, limit the duration
of opening statements to ten minutes, to be divided
between the majority and minority. Following such time,
the duration for opening statements may be extended by
either the Chair of the subcommittee or ranking
minority member of the subcommittee for an additional
ten minutes each, to be divided at the discretion of
the chair of the subcommittee or ranking minority
member of the subcommittee. The Chair of the
subcommittee shall ensure that opening statements for
all members be made part of the hearing record.
(D) If the chair and ranking minority member acting
jointly determine that extraordinary circumstances
exist necessitating allowing members to make opening
statements, subparagraphs (B) or (C), as the case may
be, shall not apply to such hearing.
Rule 4
PROCEDURES FOR REPORTING MEASURES OR MATTERS
(a) No measure or matter shall be reported from the
Committee unless a majority of the Committee is actually
present.
(b) The Chair of the Committee shall report or cause to be
reported promptly to the House any measure approved by the
Committee and take necessary steps to bring a matter to a vote.
(c) The report of the Committee on a measure which has been
approved by the Committee shall be filed within seven calendar
days (exclusive of days on which the House is not in session)
after the day on which there has been filed with the clerk of
the Committee a written request, signed by a majority of the
members of the Committee, for the reporting of that measure
pursuant to the provisions of clause 2(b)(2) of rule XIII of
the Rules of the House.
(d) All reports printed by the Committee pursuant to a
legislative study or investigation and not approved by a
majority vote of the Committee shall contain the following
disclaimer on the cover of such report: This report has not
been officially adopted by the Committee on Financial Services
and may not necessarily reflect the views of its members.''
(e) The Chair is directed to offer a motion under clause 1
of rule XXII of the Rules of the House whenever the Chair
considers it appropriate.
Rule 5
SUBCOMMITTEES
Establishment and Responsibilities of Subcommittees
(a)(1) There shall be 5 subcommittees of the Committee as
follows:
(A) Subcommittee on capital markets, insurance, and
government sponsored enterprises.--The jurisdiction of
the Subcommittee on Capital Markets, Insurance, and
Government Sponsored Enterprises includes--
(i) securities, exchanges, and finance;
(ii) capital markets activities, including
business capital formation and venture capital;
(iii) activities involving futures, forwards,
options, and other types of derivative
instruments;
(iv) the Securities and Exchange Commission;
(v) secondary market organizations for home
mortgages, including the Federal National
Mortgage Association, the Federal Home Loan
Mortgage Corporation, and the Federal
Agricultural Mortgage Corporation;
(vi) the Office of Federal Housing Enterprise
Oversight;
(vii) the Federal Home Loan Banks;
(viii) the Federal Housing Finance Board;
(ix) terrorism risk insurance; and
(x) insurance generally.
(B) Subcommittee on domestic monetary policy and
technology.--The jurisdiction of the Subcommittee on
Domestic Monetary Policy and Technology includes--
(i) financial aid to all sectors and elements
within the economy;
(ii) economic growth and stabilization;
(iii) defense production matters as contained
in the Defense Production Act of 1950, as
amended;
(iv) domestic monetary policy, and agencies
which directly or indirectly affect domestic
monetary policy, including the effect of such
policy and other financial actions on interest
rates, the allocation of credit, and the
structure and functioning of domestic financial
institutions;
(v) coins, coinage, currency, and medals,
including commemorative coins and medals, proof
and mint sets and other special coins, the
Coinage Act of 1965, gold and silver, including
the coinage thereof (but not the par value of
gold), gold medals, counterfeiting, currency
denominations and design, the distribution of
coins, and the operations of the Bureau of the
Mint and the Bureau of Engraving and Printing;
and
(vi) development of new or alternative forms
of currency.
(C) Subcommittee on financial institutions and
consumer credit.--The jurisdiction of the Subcommittee
on Financial Institutions and Consumer Credit
includes--
(i) all agencies, including the Office of the
Comptroller of the Currency, the Federal
Deposit Insurance Corporation, the Board of
Governors of the Federal Reserve System and the
Federal Reserve System, the Office of Thrift
Supervision, and the National Credit Union
Administration, which directly or indirectly
exercise supervisory or regulatory authority in
connection with, or provide deposit insurance
for, financial institutions, and the
establishment of interest rate ceilings on
deposits;
(ii) the chartering, branching, merger,
acquisition, consolidation, or conversion of
financial institutions;
(iii) consumer credit, including the
provision of consumer credit by insurance
companies, and further including those matters
in the Consumer Credit Protection Act dealing
with truth in lending, extortionate credit
transactions, restrictions on garnishments,
fair credit reporting and the use of credit
information by credit bureaus and credit
providers, equal credit opportunity, debt
collection practices, and electronic funds
transfers;
(iv) creditor remedies and debtor defenses,
Federal aspects of the Uniform Consumer Credit
Code, credit and debit cards, and the
preemption of State usury laws;
(v) consumer access to financial services,
including the Home Mortgage Disclosure Act and
the Community Reinvestment Act;
(vi) the terms and rules of disclosure of
financial services, including the
advertisement, promotion and pricing of
financial services, and availability of
government check cashing services;
(vii) deposit insurance; and
(viii) consumer access to savings accounts
and checking accounts in financial
institutions, including lifeline banking and
other consumer accounts.
(D) Subcommittee on housing and community
opportunity.--The jurisdiction of the Subcommittee on
Housing and Community Opportunity includes--
(i) housing (except programs administered by
the Department of Veterans Affairs), including
mortgage and loan insurance pursuant to the
National Housing Act; rural housing; housing
and homeless assistance programs; all
activities of the Government National Mortgage
Association; private mortgage insurance;
housing construction and design and safety
standards; housing-related energy conservation;
housing research and demonstration programs;
financial and technical assistance for
nonprofit housing sponsors; housing counseling
and technical assistance; regulation of the
housing industry (including landlord/tenant
relations); and real estate lending including
regulation of settlement procedures;
(ii) community development and community and
neighborhood planning, training and research;
national urban growth policies; urban/rural
research and technologies; and regulation of
interstate land sales;
(iii) government sponsored insurance
programs, including those offering protection
against crime, fire, flood (and related land
use controls), earthquake and other natural
hazards, but not including terrorism risk
insurance; and
(iv) the qualifications for and designation
of Empowerment Zones and Enterprise Communities
(other than matters relating to tax benefits).
(E) Subcommittee on international monetary policy and
trade.--The jurisdiction of the Subcommittee on
International Monetary Policy and Trade includes--
(i) multilateral development lending
institutions, including activities of the
National Advisory Council on International
Monetary and Financial Policies as related
thereto, and monetary and financial
developments as they relate to the activities
and objectives of such institutions;
(ii) international trade, including but not
limited to the activities of the Export-Import
Bank;
(iii) the International Monetary Fund, its
permanent and temporary agencies, and all
matters related thereto; and
(iv) international investment policies, both
as they relate to United States investments for
trade purposes by citizens of the United States
and investments made by all foreign entities in
the United States.
(F) Subcommittee on oversight and investigations.--
The jurisdiction of the Subcommittee on Oversight and
Investigations includes--
(i) the oversight of all agencies,
departments, programs, and matters within the
jurisdiction of the Committee, including the
development of recommendations with regard to
the necessity or desirability of enacting,
changing, or repealing any legislation within
the jurisdiction of the Committee, and for
conducting investigations within such
jurisdiction; and
(ii) research and analysis regarding matters
within the jurisdiction of the Committee,
including the impact or probable impact of tax
policies affecting matters within the
jurisdiction of the Committee.
(2) In addition, each such subcommittee shall have specific
responsibility for such other measures or matters as the Chair
refers to it.
(3) Each subcommittee of the Committee shall review and
study, on a continuing basis, the application, administration,
execution, and effectiveness of those laws, or parts of laws,
the subject matter of which is within its general
responsibility.
Referral of Measures and Matters to Subcommittees
(b)(1) The Chair shall regularly refer to one or more
subcommittees such measures and matters as the Chair deems
appropriate given its jurisdiction and responsibilities. In
making such a referral, the Chair may designate a subcommittee
of primary jurisdiction and subcommittees of additional or
sequential jurisdiction.
(2) All other measures or matters shall be subject to
consideration by the full Committee.
(3) In referring any measure or matter to a subcommittee,
the Chair may specify a date by which the subcommittee shall
report thereon to the Committee.
(4) The Committee by motion may discharge a subcommittee
from consideration of any measure or matter referred to a
subcommittee of the Committee.
Composition of Subcommittees
(c)(1) Members shall be elected to each subcommittee and to
the positions of chair and ranking minority member thereof, in
accordance with the rules of the respective party caucuses. The
Chair of the Committee shall designate a member of the majority
party on each subcommittee as its vice chair.
(2) The Chair and ranking minority member of the Committee
shall be ex officio members with voting privileges of each
subcommittee of which they are not assigned as members and may
be counted for purposes of establishing a quorum in such
subcommittees.
(3) The subcommittees shall be comprised as follows:
(A) The Subcommittee on Capital Markets, Insurance,
and Government Sponsored Enterprises shall be comprised
of 50 members, 30 elected by the majority caucus and 20
elected by the minority caucus.
(B) The Subcommittee on Domestic Monetary Policy and
Technology shall be comprised of 17 members, 10 elected
by the majority caucus and 7 elected by the minority
caucus.
(C) The Subcommittee on Financial Institutions and
Consumer Credit shall be comprised of 45 members, 27
elected by the majority caucus and 18 elected by the
minority caucus.
(D) The Subcommittee on Housing and Community
Opportunity shall be comprised of 25 members, 15
elected by the majority caucus and 10 elected by the
minority caucus.
(E) The Subcommittee on International Monetary Policy
and Trade shall be comprised of 15 members, 9 elected
by the majority caucus and 6 elected by the minority
caucus.
(F) The Subcommittee on Oversight and Investigations
shall be comprised of 15 members, 9 elected by the
majority caucus and 6 elected by the minority caucus.
Subcommittee Meetings and Hearings
(d)(1) Each subcommittee of the Committee is authorized to
meet, hold hearings, receive testimony, mark up legislation,
and report to the full Committee on any measure or matter
referred to it, consistent with subsection (a).
(2) No subcommittee of the Committee may meet or hold a
hearing at the same time as a meeting or hearing of the
Committee.
(3) The chair of each subcommittee shall set hearing and
meeting dates only with the approval of the Chair with a view
toward assuring the availability of meeting rooms and avoiding
simultaneous scheduling of Committee and subcommittee meetings
or hearings.
Effect of a Vacancy
(e) Any vacancy in the membership of a subcommittee shall
not affect the power of the remaining members to execute the
functions of the subcommittee as long as the required quorum is
present.
Records
(f) Each subcommittee of the Committee shall provide the
full Committee with copies of such records of votes taken in
the subcommittee and such other records with respect to the
subcommittee as the Chair deems necessary for the Committee to
comply with all rules and regulations of the House.
Rule 6
STAFF
In General
(a)(1) Except as provided in paragraph (2), the
professional and other staff of the Committee shall be
appointed, and may be removed by the Chair, and shall work
under the general supervision and direction of the Chair.
(2) All professional and other staff provided to the
minority party members of the Committee shall be appointed, and
may be removed, by the ranking minority member of the
Committee, and shall work under the general supervision and
direction of such member.
(3) It is intended that the skills and experience of all
members of the Committee staff be available to all members of
the Committee.
Subcommittee Staff
(b) From funds made available for the appointment of staff,
the Chair of the Committee shall, pursuant to clause 6(d) of
rule X of the Rules of the House, ensure that sufficient staff
is made available so that each subcommittee can carry out its
responsibilities under the rules of the Committee and that the
minority party is treated fairly in the appointment of such
staff.
Compensation of Staff
(c)(1) Except as provided in paragraph (2), the Chair shall
fix the compensation of all professional and other staff of the
Committee.
(2) The ranking minority member shall fix the compensation
of all professional and other staff provided to the minority
party members of the Committee.
Rule 7
BUDGET AND TRAVEL
Budget
(a)(1) The Chair, in consultation with other members of the
Committee, shall prepare for each Congress a budget providing
amounts for staff, necessary travel, investigation, and other
expenses of the Committee and its subcommittees.
(2) From the amount provided to the Committee in the
primary expense resolution adopted by the House of
Representatives, the Chair, after consultation with the ranking
minority member, shall designate an amount to be under the
direction of the ranking minority member for the compensation
of the minority staff, travel expenses of minority members and
staff, and minority office expenses. All expenses of minority
members and staff shall be paid for out of the amount so set
aside.
Travel
(b)(1) The Chair may authorize travel for any member and
any staff member of the Committee in connection with activities
or subject matters under the general jurisdiction of the
Committee. Before such authorization is granted, there shall be
submitted to the Chair in writing the following:
(A) The purpose of the travel.
(B) The dates during which the travel is to occur.
(C) The names of the States or countries to be
visited and the length of time to be spent in each.
(D) The names of members and staff of the Committee
for whom the authorization is sought.
(2) Members and staff of the Committee shall make a written
report to the Chair on any travel they have conducted under
this subsection, including a description of their itinerary,
expenses, and activities, and of pertinent information gained
as a result of such travel.
(3) Members and staff of the Committee performing
authorized travel on official business shall be governed by
applicable laws, resolutions, and regulations of the House and
of the Committee on House Administration.
Rule 8
COMMITTEE ADMINISTRATION
Records
(a)(1) There shall be a transcript made of each regular
meeting and hearing of the Committee, and the transcript may be
printed if the Chair decides it is appropriate or if a majority
of the members of the Committee requests such printing. Any
such transcripts shall be a substantially verbatim account of
remarks actually made during the proceedings, subject only to
technical, grammatical, and typographical corrections
authorized by the person making the remarks. Nothing in this
paragraph shall be construed to require that all such
transcripts be subject to correction and publication.
(2) The Committee shall keep a record of all actions of the
Committee and of its subcommittees. The record shall contain
all information required by clause 2(e)(1) of rule XI of the
Rules of the House and shall be available for public inspection
at reasonable times in the offices of the Committee.
(3) All Committee hearings, records, data, charts, and
files shall be kept separate and distinct from the
congressional office records of the Chair, shall be the
property of the House, and all Members of the House shall have
access thereto as provided in clause 2(e)(2) of rule XI of the
Rules of the House.
(4) The records of the Committee at the National Archives
and Records Administration shall be made available for public
use in accordance with rule VII of the Rules of the House of
Representatives. The Chair shall notify the ranking minority
member of any decision, pursuant to clause 3(b)(3) or clause
4(b) of the rule, to withhold a record otherwise available, and
the matter shall be presented to the Committee for a
determination on written request of any member of the
Committee.
Committee Publications on the Internet
(b) To the maximum extent feasible, the Committee shall
make its publications available in electronic form.
MEMBERSHIP AND ORGANIZATION OF THE COMMITTEE ON FINANCIAL SERVICES
ONE HUNDRED ELEVENTH CONGRESS
COMMITTEE ON FINANCIAL SERVICES
(Ratio: 42-29)
BARNEY FRANK, Massachusetts,
Chairman
SPENCER BACHUS, Alabama PAUL E. KANJORSKI, Pennsylvania
MICHAEL N. CASTLE, Delaware MAXINE WATERS, California
PETER KING, New York CAROLYN B. MALONEY, New York
EDWARD R. ROYCE, California LUIS V. GUTIERREZ, Illinois
FRANK D. LUCAS, Oklahoma NYDIA M. VELAZQUEZ, New York
RON PAUL, Texas MELVIN L. WATT, North Carolina
DONALD A. MANZULLO, Illinois GARY L. ACKERMAN, New York
WALTER B. JONES, Jr., North Carolina BRAD SHERMAN, California
JUDY BIGGERT, Illinois GREGORY W. MEEKS, New York
GARY G. MILLER, California DENNIS MOORE, Kansas
SHELLY MOORE CAPITO, West Virginia MICHAEL E. CAPUANO, Massachusetts
JEB HENSARLING, Texas RUBEN HINOJOSA, Texas
SCOTT GARRETT, New Jersey WM. LACY CLAY, Missouri
J. GRESHAM BARRETT, South Carolina CAROLYN McCARTHY, New York
JIM GERLACH, Pennsylvania JOE BACA, California
RANDY NEUGEBAUER, Texas STEPHEN F. LYNCH, Massachusetts
TOM PRICE, Georgia BRAD MILLER, North Carolina
PATRICK T. McHENRY, North Carolina DAVID SCOTT, Georgia
JOHN CAMPBELL, California AL GREEN, Texas
ADAM H. PUTNAM, Florida EMANUEL CLEAVER, Missouri
MICHELE BACHMANN, Minnesota MELISSA L. BEAN, Illinois
KENNY MARCHANT, Texas GWEN MOORE, Wisconsin
THADDEUS McCOTTER, Missouri PAUL W. HODES, New Hampshire
KEVIN McCARTHY, California KEITH ELLISON, Minnesota
BILL POSEY, Florida RON KLEIN, Florida
LYNN JENKINS, Kansas CHARLES A. WILSON, Ohio
CHRISTOPHER LEE, New York ED PERLMUTTER, Colorado
ERIK PAULSEN, Minnesota JOE DONNELLY, Indiana
LEONARD LANCE, New Jersey BILL FOSTER, Illinois
ANDRE CARSON, Indiana
JACKIE SPEIER, California
TRAVIS CHILDERS, Mississippi
WALT MINNICK, Idaho
JOHN H. ADLER, New Jersey
MARY JO KILROY, Ohio
STEVE DREIHAUS, Ohio
SUZANNE KOSMAS, Florida
ALAN GRAYSON, Florida
JIM HIMES, Connecticut
GARY PETERS, Missouri
DAN MAFFEI, New York
Subcommittee Memberships
Subcommittee on Capital Markets, Insurance, and Government Sponsored
Enterprises
(Ratio: 30-20)
PAUL E. KANJORSKI, Pennsylvania,
Chairman
SCOTT GARRETT, New Jersey GARY L. ACKERMAN, New York
TOM PRICE, Georgia BRAD SHERMAN, California
MICHAEL N. CASTLE, Delware MICHAEL E. CAPUANO, Massachusetts
PETER KING, New York RUBEN HINOJOSA, Texas
FRANK. D. LUCAS, Oklahoma CAROLYN McCARTHY, New York
DONALD A. MANZULLO, Illinois JOE BACA, California
EDWARD R. ROYCE, California STEPHEN F. LYNCH, Massachusetts
JUDY BIGGERT, Illinois BRAD MILLER, North Carolina
SHELLEY MOORE CAPITO, West Virigina DAVID SCOTT, Georgia
JEB HENSARLING, Texas NYDIA M. VELAZQUEZ, New York
ADAM PUTNAM, Florida CAROLYN MALONEY, New York
J. GRESHAM BARRETT, South Carolina MELISSA L. BEAN, Illinois
JIM GERLACH, Pennsylvinia GWEN MOORE, Wisconsin
JOHN CAMPBELL, California PAUL W. HODES, New Hampshire
MICHELE BACHMANN, Minnesota RON KLEIN, Florida
THADDEUS McCOTTER, Michigan ED PERLMUTTER, Colorado
RANDY NEUGEBAUER, Texas JOE DONNELLY, Indiana
KEVIN McCARTHY, California ANDRE CARSON, Indiana
BILL POSEY, Florida JACKIE SPEIER, California
LYNN JENKINS, Kansas TRAVIS CHILDERS, Mississippi
SPENCER BACHUS, Alabama, ex officio CHARLES A. WILSON, Ohio
BILL FOSTER, Illinois
WALT MINNICK, Idaho
JOHN ADLER, New Jersey
MARY JO KILROY , Ohio
SUZANNE KOSMAS, Florida
ALAN GRAYSON, Florida
JIM HIMES, Connecticut
GARY PETERS, Michigan
BARNEY FRANK, Massachusetts, ex
officio
Subcommittee on Domestic Monetary Policy and Technology
(Ratio: 10-7)
MELVIN L. WATT, North Carolina,
Chairman
RON PAUL, Texas CAROLYN B. MALONEY, New York
MICHAEL N. CASTLE, Delaware GREGORY W. MEEKS, New York
FRANK D. LUCAS, Oklahoma WILLIAM LACY CLAY, Missouri
JIM GERLACH, Pennsylvania BRAD SHERMAN, California
TOM PRICE, Georgia AL GREEN, Texas
BILL POSEY, Florida EMANUEL CLEAVER, Missouri
LEONARD LANCE, New Jersey KEITH ELLISON, Minnesota
SPENCER BACHUS, Alabama, ex officio JOHN ADLER, New Jersey
SUZANNE KOSMAS, Florida
BARNEY FRANK, Massachusetts, ex
officio
Subcommittee on Financial Institutions and Consumer Credit
(Ratio: 27-18)
LUIS V. GUTIERREZ, Illinois, Chair
JEB HENSARLING, Texas CAROLYN MALONEY, New York
J. GRESHAM BARRETT, South Carolina MELVIN L. WATT, North Carolina
MICHAEL N. CASTLE, Delware GARY L. ACKERMAN, New York
PETER KING, New York BRAD SHERMAN, California
EDWARD R. ROYCE, California DENNIS MOORE, Kansas
WALTER B. JONES, North Carolina PAUL E. KANJORSKI, Pennsylvania
SHELLEY MOORE CAPITO, West Virginia MAXINE WATERS, California
SCOTT GARRETT, New Jersey RUBEN HINOJOSA, Texas
JIM GERLACH, Pennsylvania CAROLYN McCARTHY, New York
RANDY NEUGEBAUER, Texas JOE BACA, California
TOM PRICE, Georgia AL GREEN, Texas
PATRICK T. McHENRY, North Carolina WM. LACY CLAY, Missouri
JOHN CAMPBELL, California BRAD MILLER, North Carolina
KEVIN McCARTHY, California DAVID SCOTT, Georgia
KENNY MARCHANT, Texas EMANUEL CLEAVER, Missouri
CHRISTOPHER LEE, New York MELISSA BEAN, Illinois
ERIK PAULSEN, Minnesota PAUL W. HODES, New Hampshire
LEONARD LANCE, New Jersey KEITH ELLISON, Minnesota
SPENCER BACHUS, Alabama, ex officio RON KLEIN, Florida
CHARLES A. WILSON, Ohio
GREGORY W. MEEKS, New York
BILL FOSTER, Illinois
ED PERLMUTTER, Colorado
JACKIE SPEIER, California
TRAVIS CHILDERS, Mississippi
WALT MINNICK, Idaho
BARNEY FRANK, Massachusetts, ex
officio
Subcommittee on Housing and Community Opportunity
(Ratio: 15-10)
MAXINE WATERS, California,
Chairwoman
SHELLEY MOORE CAPITO, West Virginia NYDIA M. VELAZQUEZ, New York
THADDEUS McCOTTER, Michigan STEPHEN F. LYNCH, Massachusetts
JUDY BIGGERT, Illinois EMANUEL CLEAVER, Missouri
GARY G. MILLER, California AL GREEN, Texas
RANDY NEUGEBAUER, Texas WILLIAM LACY CLAY, Missouri
WALTER B. JONES, North Carolina KEITH ELLISON, Minnesota
ADAM PUTNAM, Florida JOE DONNELLY, Indiana
KENNY MARCHANT, Texas MICHAEL E. CAPUANO, Massachusetts
LYNN JENKINS, Kansas PAUL KANJORSKI, Pennsylvania
CHRISTOPHER LEE, New York LUIS V. GUTIERREZ, Illinois
SPENCER BACHUS, Alabama, ex officio STEVE DRIEHAUS, Ohio
MARY JO KILROY, Ohio
JIM HIMES, Connecticut
DAN MAFFEI, New York
BARNEY FRANK, Massachusetts, ex
officio
Subcommittee on International Monetary Policy and Trade
(Ratio: 9-6)
GREGORY W. MEEKS, New York,
Chairman
GARY G. MILLER, California LUIS V. GUTIERREZ, Illinois
EDWARD R. ROYCE, California MAXINE WATERS, California
RON PAUL, Texas MELVIN L. WATT, North Carolina
DON MANZULLO, Illinois GWEN MOORE, Wisconsin
MICHELE BACHMANN, Minnesota ANDRE CARSON, Indiana
ERIK PAULSEN, Minnesota STEVE DRIEHAUS, Ohio
SPENCER BACHUS, Alabama, ex officio GARY PETERS, Michigan
DAN MAFFEI, New York
BARNEY FRANK, Massachusetts, ex
officio
Subcommittee on Oversight and Investigations
(Ratio: 9-6)
DENNIS MOORE, Kansas, Chairman
JUDY BIGGERT, Illinois STEPHEN F. LYNCH, Massachusetts
PATRICK T. McHENRY, North Carolina RON KLEIN, Florida
RON PAUL, Texas JACKIE SPEIER, California
MICHELE BACHMANN, Minnesota GWEN MOORE, Wisconsin
CHRISTOPHER LEE, New York JOHN ADLER, New Jersey
ERIK PAULSEN, Minnesota MARY JO KILROY, Ohio
SPENCER BACHUS, Alabama ex officio STEVE DRIEHAUS, Ohio
ALAN GRAYSON, Florida
BARNEY FRANK, Massachusetts, ex
officio
COMMITTEE STAFF
Majority Staff
JEANNE ROSLANOWICK, Staff Director
and Chief Counsel
TERRIE ALLISON, Editor/Document
Clerk
STEVE F. ARAUZ, Assistant Systems
Administrator
MICHAEL T. BERESIK, Deputy Staff
Director
JEAN E. CARROLL, Staff Associate
KEO K. CHEA, Counsel
MEREDITH CONNELLY, Professional
Staff Member
FLAVIO CUMPIANO, Subcommittee
Staff Director and Counsel
CASSANDRA M. DUHANEY, Counsel
THOMAS G. DUNCAN, General Counsel
KRISTOFOR S. ERICKSON,
Professional Staff Member
AMANDA FISCHER, Professional Staff
Member
ALFRED FORMAN, Systems
Administrator
THOMAS M. GLASSIC, Counsel
MARCUS M. GOODMAN, Staff Assistant
KARL HADDELAND, Professional Staff
Member
STEPHEN HALL, Counsel
TODD M. HARPER, Subcommittee Staff
Director
ERIKA JEFFERS, Counsel
THOMAS R. KILEY, Communications
Director
KELLIE LARKIN, Senior Counsel
GAIL LASTER, Deputy Chief Counsel
STEPHANE LeBOUDER, Subcommittee
Staff Director
PATRICIA A. LORD, Professional
Staff
MARCOS F. MANOSALVAS, Staff
Associate
KATHRYN J. MARKS, Counsel
RICHARD L. MAURANO, Director of
Legislative Affairs
DOMINIQUE McCOY, Counsel
DANIEL P. McGLINCHEY, Professional
Staff Member
DANIEL S. MEADE, Counsel
ANDREW MILLER, Senior Counsel
JONATHAN OBEE, Professional Staff
Member
SCOTT OLSON, Policy Director,
Housing
ERIC S. ORNER, Counsel
CHARLA OUERTATANI, Subcommittee
Staff Director
JASON PITCOCK, Counsel
SABAHAT QAMAR, Counsel
MARK R. RANSLEM, Staff Associate
LOIS O. RICHERSON, Clerk
JEFFREY L. RILEY, Senior Counsel
KATHERYN E. ROSEN, Senior Policy
Advisor
KIRK SCHWARZBACH, Staff Associate
GLEN R. SEARS, Subcommittee Staff
Director
DENNIS SHAUL, Professional Staff
Member
DAVID A. SMITH, Chief Economist
LAWRANNE STEWART, Deputy Chief
Counsel
ADRIANNE G. THREATT, Counsel
HILARY C. WEST, Professional Staff
Member
ADDIE M. WHISENANT, Press
Secretary
BRENDAN WOODBURY, Professional
Staff Member
WILLIAM M. ZAVARELLO, Professional
Staff Member
Minority Staff
LARRY C. LAVENDER
Chief of Staff
WARREN TRYON
Deputy Chief of Staff
JAMES H. CLINGER
Chief Counsel
SHANNON FLAHERTY
Deputy Chief of Staff-
Communications
CLINTON COLUMBUS JONES, III
General Counsel
------
MICHAEL BORDEN, Senior Counsel
CINDY VOSPER CHETTI, Senior
Professional Staff
ANTHONY J. CIMINO, Professional
Staff
JOHN W. COLE, Research Analyst
KEVIN R. EDGAR, Senior Counsel
ANGELA S. GAMBO, Administrative
Assistant
MARISOL GARIBAY, Communications
Director
JASON M. GOGGINS, Counsel
TALLMAN JOHNSON, Senior
Professional Staff Member
ROSEMARY E. KEECH, Executive Staff
Assistant
FRANCISCO A. MEDINA, Senior
Counsel
DAVID OXNER, Professional Staff
JOE PINDER, Senior Professional
Staff
JAMES KIMBLE RATLIFF, Staff
Assistant
GISELE G. ROGET, Policy Analyst
ERIC J. THOMPSON, Professional
Staff
KIM TRIMBLE, Systems Administrator
ADAM S. TROST, Counsel
ANNA BARTLETT WRIGHT, Staff
Assistant
LEGISLATIVE AND OVERSIGHT ACTIVITIES
During the 111th Congress, 674 bills were referred to the
Committee on Financial Services. The full Committee reported to
the House or was discharged from the further consideration of
36 measures, not including conference reports. Thirty-four
measures regarding matters within the Committee's jurisdiction
were enacted into law.
The following is a summary of the legislative and oversight
activities of the Committee on Financial Services during the
111th Congress, including a summary of the activities taken by
the Committee to implement its Oversight Plan for the 111th
Congress.
COMMITTEE ON FINANCIAL SERVICES
(Ratio: 42-29)
BARNEY FRANK, Massachusetts,
Chairman
SPENCER BACHUS, Alabama PAUL E. KANJORSKI, Pennsylvania
MICHAEL N. CASTLE, Delaware MAXINE WATERS, California
PETER KING, New York CAROLYN B. MALONEY, New York
EDWARD R. ROYCE, California LUIS V. GUTIERREZ, Illinois
FRANK D. LUCAS, Oklahoma NYDIA M. VELAZQUEZ, New York
RON PAUL, Texas MELVIN L. WATT, North Carolina
DONALD A. MANZULLO, Illinois GARY L. ACKERMAN, New York
WALTER B. JONES, Jr., North Carolina BRAD SHERMAN, California
JUDY BIGGERT, Illinois GREGORY W. MEEKS, New York
GARY G. MILLER, California DENNIS MOORE, Kansas
SHELLY MOORE CAPITO, West Virginia MICHAEL E. CAPUANO, Massachusetts
JEB HENSARLING, Texas RUBEN HINOJOSA, Texas
SCOTT GARRETT, New Jersey WM. LACY CLAY, Missouri
J. GRESHAM BARRETT, South Carolina CAROLYN McCARTHY, New York
JIM GERLACH, Pennsylvania JOE BACA, California
RANDY NEUGEBAUER, Texas STEPHEN F. LYNCH, Massachusetts
TOM PRICE, Georgia BRAD MILLER, North Carolina
PATRICK T. McHENRY, North Carolina DAVID SCOTT, Georgia
JOHN CAMPBELL, California AL GREEN, Texas
ADAM H. PUTNAM, Florida EMANUEL CLEAVER, Missouri
MICHELE BACHMANN, Minnesota MELISSA L. BEAN, Illinois
KENNY MARCHANT, Texas GWEN MOORE, Wisconsin
THADDEUS McCOTTER, Michigan PAUL W. HODES, New Hampshire
KEVIN McCARTHY, California KEITH ELLISON, Minnesota
BILL POSEY, Florida RON KLEIN, Florida
LYNN JENKINS, Kansas CHARLES A. WILSON, Ohio
CHRISTOPHER LEE, New York ED PERLMUTTER, Colorado
ERIK PAULSEN, Minnesota JOE DONNELLY, Indiana
LEONARD LANCE, New Jersey BILL FOSTER, Illinois
ANDRE CARSON, Indiana
JACKIE SPEIER, California
TRAVIS CHILDERS, Mississippi
WALT MINNICK, Idaho
JOHN H. ADLER, New Jersey
MARY JO KILROY, Ohio
STEVE DREIHAUS, Ohio
SUZANNE KOSMAS, Florida
ALAN GRAYSON, Florida
JIM HIMES, Connecticut
GARY PETERS, Michigan
DAN MAFFEI, New York
Full Committee Oversight Activities
FINANCIAL CRISIS/THE DODD-FRANK WALL STREET REFORM AND CONSUMER
PROTECTION ACT
The financial crisis that began in 2008 revealed numerous
shortcomings with the U.S. financial system and the framework
governing it. These shortcomings included--
excessive risk taking by the industry in
multiple areas, including excessive use of leverage,
and certain aspects relating to the offering of
products to consumers and investors;
a regulatory framework in which oversight of
financial activities was divided among multiple
agencies based largely on a regulated entity's
corporate form, which permitted regulatory arbitrage
among regulated financial companies and simultaneously
allowed other companies to evade regulation, thereby
contributing to what sometimes is referred to as the
``shadow banking system;''
lack of a specific mandate for financial
regulators to identify and respond to patterns of
behavior that potentially could threaten the financial
system as a whole, in addition to focusing on the
safety and soundness of individual institutions;
lack of transparency and oversight with
respect to certain aspects of the capital markets, such
as derivatives, private pools of capital, and investor
protections; and
lack of an orderly mechanism for liquidating
large, interconnected failing firms in a manner that
takes systemic ramifications of the failure into
account, which resulted in 2008 in the government being
forced to choose between rescuing certain failing firms
or allowing them to fail with devastating consequences
for the broader financial system.
During the first half of 2009, the full Committee held a
series of hearings to probe the causes and effects of the
financial crisis, assess the regulatory shortcomings that the
crisis revealed, and begin laying the groundwork for
comprehensive financial regulatory reform legislation
(``Perspectives on Regulation of Systemic Risk in the Financial
Services Industry'' (March 17, 2009); ``Federal and State
Enforcement of Financial Consumer and Investor Protection
Laws'' (March 20, 2009); ``Exploring the Balance between
Increased Credit Availability and Prudent Lending Standards''
(March 25, 2009); ``Addressing the Need for Comprehensive
Regulatory Reform'' (March 26, 2009); ``H.R. 1728, the Mortgage
Reform and Anti-Predatory Lending Act of 2009'' (April 23,
2009); ``The Effect of the Lehman Brothers Bankruptcy on State
and Local Governments'' (May 5, 2009); ``Compensation Structure
and Systemic Risk'' (June 11, 2009); and ``Regulatory
Restructuring: Enhancing Consumer Products Regulation'' (June
24, 2009)). In addition to these Full Committee hearings, the
Committee's various subcommittees had numerous hearings
relating to discrete aspects of financial regulatory reform
during this same period (see subcommittee discussions below for
details).
After extensive consultation with regulators, members of
Congress, and other interested parties, the Obama
Administration on June 17, 2009, released a White Paper
outlining a proposed framework for comprehensive financial
regulatory reform to address the above-mentioned issues and
other shortcomings with the existing financial regulatory
structure. Between June 30 and August 11, 2009, the Obama
Administration delivered proposed legislative text that would
implement each of the key reforms that were outlined in the
White Paper to the House Committee on Financial Services and
the Senate Banking Committee.
Following release of the Administration's White Paper, the
full Committee had a series of hearings to consider the Obama
Administration's specific legislative proposals; alternatives
to those proposals, including bills and discussion drafts
produced by the Committee; and other issues that informed the
discussion of how best to approach various aspects of financial
regulatory reform (``A Review of the Administration's Proposal
to Regulate the Over-the-Counter Derivatives Market'' (July 10,
2009); ``Banking Industry Perspectives on the Obama
Administration's Financial Regulatory Reform Proposals'' (July
15, 2009); ``Community and Consumer Advocates' Perspectives on
the Obama Administration's Financial Regulatory Reform
Proposals'' (July 16, 2009); ``Industry Perspectives on the
Obama Administration's Financial Regulatory Reform Proposals''
(July 17, 2009); ``Systemic Risk: Are Some Institutions Too Big
to Fail, and if So, What Should We Do about It?'' (July 21,
2009); ``Regulatory Perspectives on the Obama Administration's
Financial Regulatory Reform Proposals, Part I,'' (July 22,
2009); ``Regulatory Perspectives on the Obama Administration's
Financial Regulatory Reform Proposals, Part II'' (July 24,
2009); ``The Administration's Proposals for Financial
Regulatory Reform (September 23, 2009); `` Federal Regulator
Perspectives on Financial Regulatory Reform Proposals''
(September 23, 2009); ``Experts' Perspectives on Systemic Risk
and Resolution Issues'' (September 24, 2009); ``H.R. 1207, the
Federal Reserve Transparency Act of 2009'' (September 25,
2009); Perspectives on the Consumer Financial Protection Agency
(September 30, 2009); ``Federal Reserve Perspectives on
Financial Regulatory Reform Proposals'' (October 1, 2009);
``Capital Markets Regulatory Reform: Strengthening Investor
Protection, Enhancing Oversight of Private Pools of Capital,
and Creating a National Insurance Office (October 6, 2009);
``Reform of the Over-the-Counter Derivatives Market: Limiting
Risk and Ensuring Fairness'' (October 7, 2009); and ``Systemic
Regulation, Prudential Matters, Resolution Authority, and
Securitization'' (October 29, 2009). In addition to these
hearings, various subcommittees held hearings that informed
specific topics or considered specific legislative proposals
related to financial regulatory reform (see subcommittee
discussions below for details).
Between May 21, 2009, and November 3, 2009, members of the
Committee introduced bills dealing with specific regulatory
reform topics. Between October 14, 2009, and December 2, 2009,
seven of these bills were marked up and ordered reported, as
amended, to the House with a favorable recommendation by the
Committee, as follows:
H.R. 3795, the Over-the-Counter Derivatives Act of
2009. The text of the October 2, 2009, discussion draft was
introduced as H.R. 3795 on October 13, 2009, marked up on
October 14-15, 2009, and ordered reported favorably to the
House, as amended, on October 15, 2009.
H.R. 3126, the Consumer Financial Protection
Agency Act of 2009. The bill was introduced on July 8, 2009,
with a subsequent discussion draft, dated September 25, 2009,
marked up as base text on October 22, 2009, and ordered
reported favorably to the House, as amended, on October 22,
2009.
H.R. 3818, Private Fund Investment Advisers
Registration Act of 2009. The text of the October 1, 2009,
discussion draft was introduced as H.R. 3818 on October 15,
2009, marked up on October 27, 2009, and ordered reported
favorably to the House, as amended, on October 27, 2009.
H.R. 3890, the Accountability and Transparency in
Rating Agencies Act. The text of the October 16, 2009,
discussion draft was introduced as H.R. 3890 on October 21,
2009, marked up on October 27-28, 2009, and reported favorably
to the House, as amended, on October 28, 2009.
H.R. 3817, the Investor Protection Act of 2009.
The text of the October 1, 2009, discussion draft was
introduced as H.R. 3817 on October 15, 2009, marked up on
October 28, 2009, and November 3-4, 2009, and ordered reported
favorably to the House, as amended, on November 4, 2009.
H.R. 3996, the Financial Stability Improvement Act
of 2009. The text of the October 29, 2009, discussion draft was
introduced as H.R. 3996 on November 3, 2009, marked up on
November 4-6 and November 17-19, 2009, and ordered reported
favorably to the House, as amended, on December 2, 2009.
H.R. 2609, the Federal Insurance Office Act of
2009. The bill was introduced on May 21, 2009, with a
subsequent discussion draft, dated October 16, 2009, marked up
on December 2, 2009 and ordered reported favorably to the
House, as amended, on December 2, 2009.
H.R. 4173, the Wall Street Reform and Consumer Protection
Act of 2009, which was introduced on December 2, 2009, included
the text of each of the aforementioned bills as reported by the
Committee and the text of H.R. 1664 regarding executive
compensation practices (which was introduced on March 23, 2009,
marked up and reported, as amended, to the House with a
favorable recommendation by the Committee on March 30, 2009,
and passed by the House on April 1, 2009). The rule providing
for consideration of H.R. 4173 appended thereto text that was
virtually identical to that of H.R. 1728, the Mortgage Reform
and Anti-Predatory Lending Act (which was introduced on March
26, 2009, marked up by the Committee on April 28-29, 2009,
reported, as amended, to the House with a favorable
recommendation by the Committee on May 4, 2009, and passed by
the House on May 7, 2009), as well as amendments agreed to
among the various committees with jurisdiction over H.R. 4173.
H.R. 4173 passed the House, as amended, on December 11, 2009.
On May 20, 2010, the Senate passed H.R. 4173, entitled the
Restoring American Financial Stability Act of 2010, amended by
an amendment in the nature of a substitute, in lieu of S. 3217,
the comprehensive financial regulatory reform bill initially
introduced in the Senate on April 15, 2010. The Senate insisted
on its amendments and requested a conference. On June 9, 2010,
the Speaker appointed conferees. The House and Senate conferees
met in conference, with all sessions open to the public and
televised, on June 10, 15, 16, 17, 22, 23, 24-25 and 29, 2010.
The conference report was filed in the House on June 29, 2010,
agreed to by the House on June 30, 2010, and agreed to by the
Senate on July 15, 2010. The conference report was signed into
law by President Obama and became Public Law 111-203 on July
21, 2010.
This law, also known as the Dodd-Frank Wall Street Reform
and Consumer Protection Act, or simply the Dodd-Frank Act,
addresses many of the factors that contributed the financial
crisis that began in 2008 and seeks to ensure that the
government will never again be called upon to rescue individual
failing firms in order to prevent the collapse of the broader
financial system. The Dodd-Frank Act included provisions to
strengthen prudential regulation of financial institutions and
markets in numerous ways, including requiring more stringent
capital, liquidity, and risk management requirements for large,
interconnected financial companies; ensuring that the executive
compensation structure at those and other publicly traded firms
does not encourage excess risk taking; creating a new Bureau of
Consumer Financial Protection and reforming mortgage lending
requirements to include better consumer protections; providing
additional investor protections; creating a more transparent
and centralized system for trading and clearing derivatives and
other financial instruments; and requiring registration of
private pools of capital. If a large, interconnected financial
firm were to experience grave difficulties in spite of this
more stringent regulatory framework, the Dodd-Frank Act
provides a specific mechanism that would enable the government
to liquidate that firm in an orderly manner that protects the
stability of the broader financial system. Costs of such an
orderly liquidation would be allocated first to the firm's
shareholders and creditors and, if necessary, other large
financial institutions instead of to taxpayers. All of the
above-mentioned reforms collectively should ensure that, in the
future, TARP-like programs will be likely not be necessary to
keep the broader financial system sound during times of severe
economic distress.
TROUBLED ASSET RELIEF PROGRAM (TARP) AND OTHER INITIATIVES TO STABILIZE
THE FINANCIAL SYSTEM.
The Committee held several hearings on TARP oversight. The
first of two general oversight hearings, entitled ``Priorities
for the Next Administration: Use of TARP Funds under EESA,''
was held on January 13, 2009. Witness testimony included
testimony from Federal Reserve Board and FDIC regulators, as
well as industry representatives. A second hearing, entitled
``TARP Accountability: Use of Federal Assistance by the First
TARP Recipients,'' was held on February 11, 2009, and focused
on whether the largest recipients of TARP Capital Purchase
Program investments were responsibly using that capital.
Witnesses were the CEOs of Goldman Sachs & Co., JPMorgan Chase
& Co., Bank of New York Mellon, Bank of America, State Street
Corporation, Morgan Stanley, Citigroup, and Wells Fargo & Co.,
representing companies who received TARP Capital Purchase
Program (CPP) investments.
In addition, the Committee held more narrowly focused
oversight hearings on the government intervention into AIG and
the Federal Reserve emergency programs established under the
emergency authority of section 13(3) of the Federal Reserve Act
(e.g., ``An Examination of the Extraordinary Efforts by the
Federal Reserve Bank to Provide Liquidity in the Current
Financial Crisis'' (February 10, 2009); ``Oversight of the
Federal Government's Intervention at American International
Group'' (March 24, 2009); ``Unwinding Emergency Federal Reserve
Liquidity Programs and Implications for Economic Recovery''
(March 25, 2010)).
The Committee held a hearing specifically on the too-big-
to-fail issue on July 21, 2009, entitled ``Systemic Risk: Are
Some Institutions Too Big to Fail and If So, What Should We Do
About It?'' The witnesses were primarily academics with
expertise on the subject. The too-big-too-fail issue was also
addressed repeatedly in the numerous hearings held by the
Committee in 2009 of financial regulatory reform discussed
below.
FINANCIAL SUPERVISION
On March 30, 2009, Chairman Frank and Senate Banking
Committee Chairman Christopher J. Dodd sent a joint letter to
the President of the United States to reiterate their
commitment to work with him to establish a new, more robust
framework for supervision and regulation of the financial
services sector. On October 29, 2009, the Committee held a
legislative hearing entitled ``Systemic Regulation, Prudential
Matters, Resolution Authority and Securitization.'' This
hearing, which specifically requested witnesses to testify
regarding pending reform proposals relating to prudential
oversight of financial institutions, followed numerous other
general policy hearings held in prior months regarding a
broader range of financial regulatory reform proposals (e.g.,
full committee hearings entitled ``Addressing the Need for
Comprehensive Regulatory Reform'' (March 26, 2009); ``Banking
Industry Perspectives on the Obama Administration's Financial
Regulatory Reform Proposals'' (July 15, 2009); ``Industry
Perspectives on the Obama Administration's Financial Regulatory
Reform Proposals'' (July 17, 2009); ``Systemic Risk: Are Some
Institutions Too Big to Fail, and if So, What Should We Do
about It?'' (July 21, 2009); ``Regulatory Perspectives on the
Obama Administration's Financial Regulatory Reform Proposals,
Part I'' (July 22, 2009); ``Regulatory Perspectives on the
Obama Administration's Financial Regulatory Reform Proposals,
Part II'' (July 24, 2009); ``The Administration's Proposals for
Financial Regulatory Reform'' (September 23, 2009); ``Federal
Regulator Perspectives on Financial Regulatory Reform
Proposals'' (September 23, 2009); Experts' Perspectives on
Systemic Risk and Resolution Issues'' (September 24, 2009); and
``Federal Reserve Perspectives on Financial Regulatory Reform
Proposals'' (October 1, 2009).
Witness testimony at the October 29, 2009 hearing included
Treasury Secretary Geithner, federal banking regulators, a
State insurance commissioner representative, and
representatives from various industry and consumer advocate
groups. The hearing focused on a discussion draft of the
``Financial Stability Improvement Act of 2009,'' which would:
(1) address ``too big to fail''; (2) provide for the orderly
resolution of systemically important financial institutions;
and (3) fundamentally reform the current system and structure
of prudential regulation of financial institutions. The
prudential reforms included in the legislation would: (1) merge
the Office of Thrift Supervision into the Office of the
Comptroller of the Currency; (2) maintain the viability of the
federal thrift charter while strengthening regulation of
federal thrifts and thrift holding companies; (3) establish the
Federal Reserve as the regulator for all bank and thrift
holding companies and supplement the Federal Reserve's existing
authority over systemically important financial market
utilities and payment, clearing, and settlement systems; (4)
eliminate outdated barriers to interstate branching authority;
(5) strengthen and improve safety and soundness regulation of
banks and thrifts and their holding companies, and (6)
establish stronger capital requirements for bank holding
companies.
The text of an October 29, 2009, discussion draft of the
``Financial Stability Improvement Act of 2009'' was introduced
by Chairman Frank as H.R. 3996 on November 3, 2009, and was
considered at a committee markup that spanned November 4-6 and
November 17-19, 2009. The bill, as amended, was ordered
reported to the House with a favorable recommendation by the
Committee on December 2, 2009. The content of the bill then was
incorporated into H.R. 4173, which passed the House on December
11, 2009. A final version of the legislation was enacted on
July 21, 2010 as part of Public Law 111-203.
DEPOSIT INSURANCE REFORM
On December 11, 2009, the House passed H.R. 4173, which
included significant reforms to the FDIC's Deposit Insurance
Fund. The legislation made permanent the increase in the
deposit insurance threshold from $100,000 to $250,000,
providing increased certainty for depositors. Additionally, the
legislation made the increase retroactive to January 1, 2008,
to provide equitable treatment to account holders at
institutions that failed prior to the initial increase of
deposit insurance under the Emergency Economic Stabilization
Act of 2008. To better ensure that deposit insurance premiums
are risk-based, the formula for determining the assessment base
on which premiums are calculated was changed to the average
consolidated total assets minus the average tangible equity of
the insured depository institution. On July 21, 2010, the final
version of H.R. 4173, the Dodd-Frank Act, was enacted that
included these same reforms. In addition, the enacted
legislation increased the designated reserve ratio for the
deposit insurance fund to 1.35 percent from 1.15 percent and
holding small community banks harmless for the increased
premiums. FDIC Chairman Sheila Bair had written to Chairman
Frank on June 29, 2010 expressing support for an increase in
the designated reserve ratio. In addition to deposit insurance
reforms, H.R. 4173 as enacted also included a 2-year statutory
extension of the FDIC's Transaction Guaranty Program.
OVERSIGHT OF PROGRESS BY THE BASEL COMMITTEE ON BANKING SUPERVISION
In response to the weaknesses in the current Basel II
capital framework that were exposed during the recent financial
crisis, the Basel Committee on Banking Supervision began work
in 2009 to strengthen the Basel II capital framework, with
particular emphasis on improving the quality of Tier 1 capital
by including more common equity. The new ``Basel III''
framework was proposed for comment in December 2009, modified
on July 26, 2010, and further refined on September 12. The
Basel Committee [presented] the agreed-upon elements to the G20
leaders at the November 2010 summit in Seoul, and [describe
results of 11/2010 G20]. The content of the agreed-upon
elements, the process by which they were crafted, and the
expected impact that their implementation would have on U.S.
banking entities were discussed in detail at a September 22,
2010, hearing entitled ``The State of the International
Financial System, Including International Regulatory Issues
Relevant to the Implementation of the Dodd-Frank Act,'' at
which Treasury Secretary Timothy Geithner was the only witness.
CONSUMER FINANCIAL PROTECTION
The Committee passed comprehensive legislation relating to
consumer financial protection. On October 14, 2009, the
Committee ordered reported H.R. 3126, which creates the
Consumer Financial Protection Agency (CFPA). The new agency
would be responsible for rulemaking, examination and
enforcement for financial institutions that provide consumers
with financial products and services. The rulemaking authority
of the Federal Reserve and other Federal banking agencies under
the existing consumer banking laws would be transferred to the
CFPA. The Agency also would have broad rulemaking authority to
address unfair, deceptive and abusive acts and practices that
the Agency identifies in the future. CFPA also would examine
bank and nonbank institutions for compliance with the consumer
banking laws and CFPA regulations and enforce violations of
those standards.
H.R. 3126 was originally introduced on July 8, 2009, and
was based on legislation that was drafted by the Obama
Administration. Elements of the CFPA had also been included in
H.R. 1705, the Financial Products Safety Commission Act of
2009, which was introduced on March 25, 2009 by Representative
William D. Delahunt and cosponsored by Representative Brad
Miller. Like H.R. 3126, H.R. 1705 would have created a new
independent agency with expanded rulemaking and enforcement
authority over consumer financial products. On September 25,
2009, a revised discussion draft of H.R. 3126 was released,
which was used as the mark up vehicle by the Committee.
The Committee held two hearings that focused specifically
on the CFPA bill. On June 24, 2009, the Committee held a
hearing entitled ``Regulatory Restructuring: Enhancing Consumer
Financial Products Regulation'' This hearing was held seven
days after the Obama Administration's white paper was released
outlining regulatory restructuring plans, including the CFPA
legislation. On September 30, 2009, the Financial Services
Committee held a hearing, which was five days after a revised
discussion draft of the bill was released, entitled
``Perspectives on the Consumer Financial Protection Agency.''
The Committee used this discussion draft as the base text to
mark up the bill.
In addition to these hearings, the Committee heard
testimony from government officials that included discussions
of the CFPA at the following hearings listed below:
``Federal Reserve Perspectives on Financial
Regulatory Reform Proposals,'' October 1, 2009. The
witness at this hearing was The Honorable Ben S.
Bernanke, Chairman, Board of Governors of the Federal
Reserve System;
``The Administration's Proposals for
Financial Regulatory Reform,'' September 23, 2009. The
witness at this hearing was The Honorable Timothy F.
Geithner, Secretary, U.S. Department of the Treasury;
``Federal Regulator Perspectives on
Financial Regulatory Reform Proposals,'' September 23,
2009; and.
``Regulatory Perspectives on the Obama
Administration's Financial Regulatory Reform
Proposals--Part Two,'' July, 24, 2009.
MORTGAGE REFORM
On April 28, 2009, the Committee ordered reported H.R.
1728, the Mortgage Reform and Anti-Predatory Lending Act, which
is intended to reform mortgage lending practices to avert a
recurrence of the current situation of unprecedented levels of
defaults and foreclosures rates. The bill was fashioned after
similar legislation that passed the House in November 2007
(H.R. 3915), but was updated and contains a number of new
provisions. The bill's provision included: (i) imposing
compensation and other restrictions on mortgage brokers and
loan officers, (ii) setting underwriting standards for
mortgages, (iii) imposing liability on securitizers and other
participants in the secondary mortgage market for supporting
irresponsible lending, (iv) setting requirements for
underwriters and other mortgage market participants to retain
credit risk in the mortgages they make and securitize, (v)
expanding the scope of and enhances consumer protections for
high-cost loans under the Home Ownership and Equity Protection
Act (HOEPA), (vi) establishing an Office of Housing Counseling
at HUD that will carry out and coordinate homeownership and
rental housing counseling programs, and (vii) adopting
provisions aimed at stopping or mitigating a number of abusive
and deceptive practices related to escrow accounts, mortgage
servicing, and appraisal practices. A substantial portion of
these provisions were included in the Dodd-Frank Act or other
legislation that passed in this Congress.
The Subcommittee on Financial Institutions and Consumer
Credit held a hearing on March 11, 2009 entitled ``Mortgage
Lending Reform: A Comprehensive Review of the American Mortgage
System.'' The Committee held a hearing on April 23, 2009
entitled ``H.R. 1728: Mortgage Reform and Anti-Predatory
Lending Act''. These hearings focused directly on the
legislation and witnesses from Federal and state governments,
the banking and mortgage industry and consumer, community and
civil rights groups testified at these hearings.
CREDIT CARD REFORM
On April 22, 2009, the Committee approved H.R. 627, the
``Credit Cardholders' Bill of Rights Act of 2009.'' The bill
would prohibit certain unfair and deceptive credit card
practices and provides consumers with tools to manage their
credit card debt responsibly. The bill would prohibit
retroactive rate increases on existing balances except under
limited circumstances, including where the consumer is over 30
days late in making payment, and require creditors to provide
consumers with a reasonable time to pay off the balance. It
would require creditors to provide a written notice of any rate
increase at least 45 days before the increase takes effect, and
to send periodic statements to consumers no less than 21 days
before the due date. The bill would prohibit double cycle
billing and requires creditors to allocate payments in excess
of the minimum to either the highest rate balance first or in a
proportional manner. The bill would limit overlimit fees and
bans fees on interest-only balances. The bill would require
creditors to offer cardholders the ability to prevent any
overlimit transactions on their card. It would prohibit
creditors from knowingly issuing a credit card to a minor who
is not emancipated. The bill would prohibit creditors from
reporting the issuance of any credit card to a credit bureau
until the cardholder uses or activates the card. For credit
cards on which fees in the first year exceed 25 percent of the
initial credit limit, the bill would require that such fees
(except late, overlimit, and insufficient fund fees) be paid
from a source other than the card. The bill also provides for
additional data collection to enable better oversight and
regulation. This bill was signed into law on May 22, 2009.
On October 26, 2009, the Committee approved H.R. 3639--
Expedited CARD Reform for Consumers Act of 2009. H.R. 3639
would accelerate the implementation of certain provisions in
existing law related to the regulation and operations of the
credit card industry. The Credit Card Accountability
Responsibility and Disclosure Act of 2009 (H.R. 627) set
deadlines for implementing various reforms and procedures, with
most of those measures scheduled to take effect in February and
August of 2010. This bill would change those effective dates to
December 1, 2009, subject to exemptions for entities that issue
prepaid gift cards and depository institutions (such as banks
and credit unions) with less than 2 million credit cards in
circulation.
The Committee heard testimony from Federal and state
government authorities, industry representatives and community
and consumer groups on the need for the legislation. On October
8, 2009, the Committee held a hearing entitled ``H.R. 2382, the
Credit Card Interchange Fees Act of 2009 and H.R. 3639, the
Expedited CARD Reform for Consumers Act of 2009.'' On March 19,
2009, the Subcommittee on Financial Institutions and Consumer
Credit held a hearing entitled ``H.R. 627, the Credit
Cardholders' Bill of Rights Act of 2009; and H.R. 1456, the
Consumer Overdraft Protection Fair Practices Act of 2009.''
CREDIT AVAILABILITY IN THE SMALL BUSINESS AND COMMERCIAL REAL ESTATE
MARKETS
On May 19, 2010, the Committee approved the ``Small
Business Lending Fund Act of 2010'' (H.R. 5297), which was
designed to provide support for increased small business
lending by providing additional capital to small banks that
will enable them to increase such lending. The Committee held
numerous hearings on the condition of small business and
commercial real estate lending in local markets. The issues
that were considered at these hearings included the effect
illiquidity in these markets was having on employment, in
general, and on local small business, real estate markets and
community banks. One issue, in particular, that was considered
at several hearings was the issue of whether community banks
were receiving unnecessarily strict examinations of their
commercial real estate portfolios from Federal banking agency
examiners when the management of these agencies are advising
discretion. Testimony at these hearings included Treasury and
the Banking Agencies, banks, small businesses and real estate
developers.
The hearings held by the Committee included the following:
On July 29, 2010, the Committee held a
hearing entitled ``Alternatives for Promoting Liquidity
in the Commercial Real Estate Markets, Supporting Small
Businesses and Increasing Job Growth'';
On May 18, 2010, the Committee held a
hearing entitled ``Initiatives to Promote Small
Business Lending, Jobs and Economic Growth'';
On May 17, 2010, the Subcommittee on
Oversight and Investigations held a hearing entitled
``Commercial Real Estate: A Chicago Perspective on
Current Market Challenges and Possible Responses'';
On February 26, 2010, the Committee held a
hearing entitled ``Condition of Small Business and
Commercial Real Estate Lending in Local Markets'';
On January 21, 2010, the Subcommittee on
Financial Institutions and Consumer Credit held a
hearing entitled ``The Condition of Financial
Institutions: Examining the Failure and Seizure of an
American Bank'';
On November 30, 2009, the Subcommittee on
Oversight held a hearing entitled ``Improving
Responsible Lending to Small Businesses''; and
On March 25, 2009, the Committee held a
hearing entitled ``Exploring the Balance between
Increased Credit Availability and Prudent Lending
Standards''.
H.R. 5297 passed the House on June 17, 2010, and passed the
Senate amended on September 16, 2010. The House concurred in
the Senate amendment on September 23, 2010, and the legislation
became Public Law 111-240 on September 27, 2010.
CONSUMER CREDIT
The Committee held a series of hearings in the Subcommittee
on Financial Institutions and Consumer Credit to review the
impact on the availability and affordability of financial
products on consumers from creditors' reliance on credit scores
and credit information to assess consumers' creditworthiness.
The Subcommittee also reviewed the impact on individuals from
the growing use of credit information beyond lending decisions
such as, the use of credit information by employers for hiring,
promotion and retention purposes.
FAIR LENDING
In April 2008, the Committee asked the Government
Accountability Office (GAO) to conduct a comprehensive review
of the current state of Federal enforcement of the Fair Housing
Act (FHA) and other fair lending statutes. In response to this
request, GAO issued a report in July 2009 entitled, ``FAIR
LENDING: Data Limitations and the Fragmented U.S. Financial
Regulatory Structure Challenge Federal Oversight and
Enforcement Efforts'' (GAO-09-704). GAO recommends in the
report that Congress consider options to expand the data
available to detect potential fair lending violations such as,
requiring certain lenders to report additional data under the
Home Mortgage Disclosure Act (HMDA). The Committee reviewed the
GAO report, and passed several provisions under the Dodd-Frank
Act to try to enhance Federal oversight and enforcement of fair
lending laws, including: (1) establishing an Office of Fair
Lending and Equal Opportunity within the CFPB to ensure the
fair, equitable, and nondiscriminatory access to credit for
both individuals and communities and (2) requiring lenders to
collect and publicly report additional data fields under HMDA.
WORKFORCE DIVERSITY
The Committee continued to monitor the workforce diversity
at Federal financial services agencies and the entities that
they regulate. An amendment during consideration of the
financial services regulatory reform legislation was
incorporated into the Dodd-Frank Act creating Offices of
Minority and Women Inclusion at several Federal financial
services agencies.
GOVERNMENT SPONSORED ENTERPRISES AND HOUSING FINANCE REFORM
The Committee held a series of hearings in the 111th
Congress that addressed the housing crisis, the conservatorship
of Fannie Mae and Freddie Mac, and the reform of the U.S.
housing finance system. Committee staff held frequent
briefings, a majority of which were held on a bipartisan basis,
on matters related to housing finance reform with a broad range
of stakeholders, including both public and private entities, to
assess the current crisis and to lay the groundwork for the
reform of the system.
The Committee held three hearings to address the public and
private sectors' broad views on the critical functions of the
housing finance system. These hearings addressed:
the essential functions that any reformed
housing market and mortgage finance system must be able
to perform;
the steps in the short run that need to be
taken, broadly, to facilitate a housing finance market
recovery;
the functions performed by the housing
government sponsored enterprises (GSEs) that are
essential to a robust market for housing and housing
finance and whether these functions should be performed
by the government; and
whether other entities could achieve the GSE
housing mission objectives while at the same time
ensuring safe and sound operations and minimizing risks
to financial stability.
The first hearing, entitled ``Housing Finance--What Should
the New System Be Able to Do?: Part I--Government and
Stakeholder Perspectives,'' occurred on March 23, 2010, and
consisted of two panels. The Honorable Timothy F. Geithner,
Secretary, U.S. Department on the Treasury, testified alone on
the first panel. The second panel of private sector experts
included Sarah Rosen Wartell, Executive Vice President, Center
for American Progress; Michael Berman, President and CEO,
CWCapital on behalf of the Mortgage Bankers Association; Mark
A. Calabria, Ph.D., Director, Financial Regulation Studies,
Cato Institute; Vincent O'Donnell, Vice President, Affordable
Housing Preservation Initiative, Local Initiatives Support
Corporation (LISC); Robert E. DeWitt, President, CEO, and Vice
Chairman, GID Investment Advisers LLC on behalf of the National
Multi-Housing Council; Janis Bowdler, Deputy Director, Wealth-
Building Policy Project, National Council of La Raza; Anthony
Sanders, Distinguished Professor of Real Estate Finance, School
of Management, George Mason University; and Vince Malta, Vice
President and Liaison to Government Affairs, National
Association of Realtors.
On April 14, 2010, the Committee held the second hearing
entitled ``Housing Finance--What Should the New System Be Able
to Do?: Part II--Government and Stakeholder Perspectives.'' The
Honorable Shaun Donovan, Secretary, U.S. Department of Housing
and Urban Development, testified on the first panel. Presenters
on the second panel included Anthony T. (Tuck) Reed, Executive
Vice President, Capital Markets SunTrust Mortgage, Inc., on
behalf of The Financial Services Roundtable; Sheila Crowley,
President and CEO, National Low Income Housing Coalition; Alex
J. Pollock, Resident Fellow, American Enterprise Institute;
Jack E. Hopkins, President/CEO, CorTrust Bank, NA, on behalf of
the Independent Community Bankers of America; Thomas Gleason,
Executive Director, MassHousing; Anthony M. Randazzo, Director
of Economic Research, Reason Foundation; and Rick Judson, Third
Vice Chairman, National Association of Home Builders.
On September 29, 2010, the Committee held an additional
hearing entitled ``The Future of Housing Finance--A Review of
Proposals to Address Market Structure and Transition.'' This
hearing continued the Committee's investigation of the
principles and proposals of various stakeholders related to
reforming the U.S. housing finance system. The hearing focused
on obtaining non-governmental perspectives on a variety of
topics, including:
the Dodd-Frank Act and its implications for
mortgage origination and securitization;
the implications of the Fannie Mae and Freddie
Mac conservatorships and/or considerations for housing
finance reform;
key considerations for transition to a new
system to facilitate housing finance in the United
States; and
the witnesses' housing finance reform
proposals submitted to the U.S. Department of the
Treasury and the Department of Housing and Urban
Development through a public comment period, if any.
Witnesses for this hearing included Michael J. Heid, Co-
President of Wells Fargo Home Mortgage and Chairman of the
Housing Policy Council of The Financial Services Roundtable;
The Honorable Phillip L. Swagel, McDonough School of Business,
Georgetown University; Susan Wachter, Richard B. Worley
Professor of Financial Management, The Wharton School,
University of Pennsylvania; Christopher Papagianis, Managing
Director, Economics21; Michael Bodaken, President, National
Housing Trust; Ed Pinto, Real Estate Financial Services
Consultant; Michael A.J. Farrell, Chairman, CEO and President,
Annaly Capital Management, Inc. on behalf of Annaly Capital
Management and the National Association of Real Estate
Investment Trusts' Mortgage REIT Council; and Tom Deutsch,
Executive Director, American Securitization Forum.
As noted in the section on the oversight activities of the
Subcommittee on Capital Markets, Insurance, and Government
Sponsored Enterprises, the Committee's three hearings on
housing finance reform complemented the four hearings of the
Capital Markets Subcommittee on these matters.
THE CONSEQUENCES OF THE COLLAPSE OF LEHMAN BROTHERS
On May 5, 2009, the Committee held a hearing entitled ``The
Effect of the Lehman Brothers Bankruptcy on State and Local
Governments.'' The hearing vetted the effects of the bankruptcy
on the more than 100 U.S. municipalities with a total exposure
of approximately $1.7 billion in bonds, notes, commercial paper
and guaranteed investment contracts. The affected
municipalities had formed a coalition to advocate for the
Treasury Department to purchase the defaulted securities and
contracts at their face value.
Representative Jackie Speier and Representative Eshoo
reviewed their legislation, H.R. 467, on the first panel of the
hearing. The legislation would amend the Emergency Economic
Stabilization Act to direct the Treasury Department to purchase
all bonds and debt instruments of Lehman Brothers held by
municipalities on the date of Lehman's bankruptcy. The second
panel's witnesses included The Honorable Karen Rushing, Clerk
of the Circuit Court and County Comptroller of Sarasota County,
Florida; Ron Galatolo, Chancellor, San Mateo County Community
College; The Honorable Richard Gordon, Supervisor, San Mateo
County Board of Supervisors; The Honorable Bob Hullinghorst,
Boulder County Treasurer, Boulder, Colorado; Chris Thornberg,
Economist, Beacon Economics; and The Honorable Chriss W.
Street, Orange County Treasurer, Santa Ana, California.
On March 11, 2010, the Court Appointed Examiner Anton R.
Valukas in response to the request from the U.S. Bankruptcy
Court for the Southern District of New York filed a report
about the bankruptcy of Lehman Brothers Holdings on September
15, 2008. Among the key issues discussed in the report included
the role of risk management at Lehman; the firm's use of ``Repo
105 and 108'' (an accounting tactic to adjust balance sheet
leverage at quarter-end for purposes of reporting); and the
role of governmental entities, such as the U.S. Securities and
Exchange Commission (SEC) and the Federal Reserve Bank of New
York (FRBNY) in regulating and lending to Lehman, respectively.
On April 20, 2010, the Committee held a hearing entitled
``Public Policy Issues Raised by the Report of the Lehman
Bankruptcy Examiner.'' Among other issues, the hearing focused
on the public policy implications raised in the examiner's
review, including:
the extent to which corporate governance
should be enhanced to appropriately manage firm risk;
views regarding the communication,
knowledge, and understanding among risk managers,
boards of directors, and senior management;
the role of the SEC as Lehman's primary
regulator in oversight, examination and enforcement in
advance of Lehman's bankruptcy filing, and the role of
other government agencies, including the FRBNY, that
were monitoring Lehman during the crisis;
the relationship and means of communication,
especially formal and informal information sharing,
between the SEC and FRBNY as Lehman's financial
condition deteriorated as well as between Lehman, the
SEC, the Treasury Department, the Board of Governors of
the Federal Reserve System, and the FRBNY;
the appropriateness of accounting practices
such as Repo 105 or 108 and the adequacy of the
disclosure of such accounting practices; and
the quality of Lehman's Management
Discussion and Analysis disclosures in its public
filings for the 2007 reporting periods.
The four-panel hearing began with testimony from
Representatives Anna G. Eshoo and Ed Perlmutter. The second
panel included senior government officials in their capacity as
regulators in the run up to and the collapse of Lehman
Brothers. These officials included The Honorable Timothy F.
Geithner, Secretary, U.S. Department of the Treasury; The
Honorable Ben S. Bernanke, Chairman, Board of Governors of the
Federal Reserve System; and The Honorable Mary L. Schapiro,
Chairman, U.S. Securities and Exchange Commission.
Anton Valukas, a partner at Jenner & Block and the Court
Appointed Bankruptcy Examiner, testified on the third panel
regarding his report. The fourth panel included members of the
board of directors of Lehman Brothers and an academic.
Witnesses included Richard Fuld, former Chairman and CEO,
Lehman Brothers; Thomas Cruikshank, former member of the board
of directors and chair of Lehman Brothers' audit committee; and
William Black, Professor of Economics and Law at the University
of Missouri--Kansas City.
REFORM OF THE OVER-THE-COUNTER DERIVATIVES MARKET
On July 10, 2009, the Committee held a hearing jointly with
the Committee on Agriculture entitled ``A Review of the
Administration's Proposal to Regulate the Over-the-Counter
Derivatives Market.'' The Honorable Timothy F. Geithner,
Secretary, U.S. Department of the Treasury appeared as the
hearing's sole witness. Secretary Geithner provided an overview
of the views on derivatives regulation contained in the
Administration's white paper entitled ``Financial Regulatory
Reform, A New Foundation: Rebuilding Financial Supervision and
Regulation'' released in June 2009. Secretary Geithner's
testimony also addressed specific questions, including the
level of standardization necessary for central clearing of
derivatives contracts, the trade reporting protocols
recommended by the Administration, and measures in the
Administration's plan that would bring over-the-counter
derivatives trading onto exchanges.
On October 7, 2009, the Committee held a legislative
hearing entitled ``Reform of the Over-the-Counter Derivative
Market: Limiting Risk and Ensuring Fairness.'' At the hearing,
witnesses presented their views on a discussion draft of
legislation released by the Committee on October 2, 2009. The
draft legislation, later reported as H.R. 3795, the Over-the-
Counter Derivatives Markets Act of 2009, proposed a new and
comprehensive framework for regulating swaps and security-based
swaps. Subject to certain exceptions, the bill required
clearing of swap transactions; execution of swap transactions
on exchanges or swap execution facilities; reporting and
recordkeeping of swap transactions; registration and oversight
of participants in the swap markets, including swap dealers,
major swap participants and designated clearing organizations;
and compliance with capital and margin levels.
Witnesses at this hearing included regulators, academics
and derivatives market participants. Participants on the first
panel included The Honorable Gary Gensler, Chairman, Commodity
Futures Trading Commission; and Henry Hu, Director, Division of
Risk, Strategy, and Financial Innovation, U.S. Securities and
Exchange Commission. The witnesses on the second panel included
Jon Hixson, Director, Federal Government Relations, Cargill
Inc.; Ren M. Stulz, Everett D. Reese Chair of Banking and
Monetary Economics, Fisher College of Business, The Ohio State
University; Scott Sleyster, CFA, Chief Investment Officer,
Domestic, Prudential Financial; David Hall, Chief Operating
Officer, Chatham Financial Corp.; James J. Hill, Managing
Director, Morgan Stanley on behalf of the Securities Industry
and Financial Markets Association (SIFMA); Stuart J. Kaswell,
Executive Vice President and Managing Director, General
Counsel, Managed Funds Association; Steven A. Holmes, Director
of Treasury Operations, Treasury Department, Deere & Company;
Christopher Ferreri, Managing Director, ICAP on behalf of the
Wholesale Markets Brokers Association; and Rob Johnson,
Director of Economic Policy for the Roosevelt Institute in New
York on behalf of Americans for Financial Reform.
On October 15, 2009, the Committee met to consider and mark
up H.R. 3795. The bill proposed a comprehensive framework for
the regulation of swaps and security-based swaps. Specifically,
the bill imposed requirements relating to all aspects of the
swaps and security-based swaps market, including clearing,
exchange-trading, registration of market participants,
reporting, recordkeeping, and capital and margin levels. The
Committee reported H.R. 3795 to the House, as amended, with a
favorable recommendation by a record vote of 43 yeas and 26
nays. H.R. 3795 was subsequently combined and reconciled with
H.R. 977, a derivatives bill reported out of the House
Agriculture Committee. The resulting provisions comprised Title
III of H.R. 4173, the Wall Street Reform and Consumer
Protection Act of 2009, the comprehensive financial services
regulatory reform bill passed by the House on December 11,
2009. Many of those provisions on enhanced regulation of swaps
and security-based swaps are reflected in Title VII of the
Dodd-Frank Act.
FINANCIAL REFORM HEARINGS--CAPITAL MARKETS
On October 6, 2009, the Committee held a three-panel
legislative hearing entitled ``Capital Markets Regulatory
Reform: Strengthening Investor Protection, Enhancing Oversight
of Private Pools of Capital, and Creating a National Insurance
Office.'' Each panel at the hearing vetted legislation
introduced by Capital Markets Subcommittee Chairman Paul E.
Kanjorski. These bills formed the foundation of the capital
markets, investor protection and insurance information reforms
ultimately incorporated into the Dodd-Frank Act.
The hearing's first panel addressed a discussion draft of
H.R. 3817, the Investor Protection Act of 2009. Witnesses
included Denise Voigt Crawford, Texas Securities Commissioner,
Securities Administrators Board, on behalf of the North
American Securities Administrators Association; Richard
Ketchum, Chairman and CEO, Financial Industry Regulatory
Authority (FINRA); Mercer E. Bullard, Founder and President,
Fund Democracy, Inc.; John Taft, Head of Wealth Management, RBC
Wealth Management, on behalf of SIFMA; David G. Tittsworth,
Executive Director, Investment Adviser Association; and Bruce
W. Maisel, Vice President and Managing Counsel, General
Counsel's Office, Thrivent Financial for Lutherans, on behalf
of the American Council of Life Insurers.
The second panel addressed a discussion draft of H.R. 3818,
the Private Fund Investment Advisers Registration Act of 2009.
Witnesses on this panel included The Honorable Richard H.
Baker, President, Managed Funds Association; Douglas
Lowenstein, President, Private Equity Council; James S. Chanos,
Chairman, Coalition of Private Investment Companies; and Terry
McGuire, Co-Founder and General Partner, Polaris Venture
Partners, and Chairman, National Venture Capital Association.
The third panel's participants commented on H.R. 2609, the
Federal Insurance Office Act of 2009. Witnesses included Janice
M. Abraham, President and CEO, United Educators Insurance, on
behalf of the Property Casualty Insurers Association of
America; David B. Atkinson, Executive Vice President and Vice
Chairman, RGA Reinsurance Company, on behalf of the Reinsurance
Association of America; Dennis S. Herchel, Assistant Vice
President and Counsel, Massachusetts Mutual Life Insurance
Company, on behalf of the American Council of Life Insurers;
Spencer M. Houldin, President, Ericson Insurance Advisors, on
behalf of the Independent Insurance Agents & Brokers of
America; Therese Vaughan, CEO, National Association of
Insurance Commissioners; and J. Stephen Zielezienski, Senior
Vice President and General Counsel, American Insurance
Association.
MUNICIPAL SECURITIES MARKETS
On May 21, 2009, the Committee held a multi-panel
legislative hearing entitled ``Legislative Proposals to Improve
the Efficiency and Oversight of Municipal Finance.'' The
hearing focused on five legislative proposals:
the Municipal Bond Insurance Enhancement Act
(H.R. 2589 introduced by Representative Emanuel
Cleaver) to establish the Office of Public Finance
within the Treasury Department to provide Federal
reinsurance for municipal-only bond insurers, thus
making it easier for smaller, lesser known bond issuers
to obtain bond insurance and gain access to the capital
markets;
the Municipal Bond Liquidity Enhancement Act
(H.R. 2551 introduced by Representative Bill Foster) to
authorize the Federal Reserve to fund new liquidity
facilities that could redeem variable rate municipal
bonds, thereby enhancing liquidity in that market;
the Municipal Financial Advisors Regulation
Act (H.R. 2550 introduced by Representative Steve
Driehaus) to create a regulatory regime for financial
advisors to municipalities, including registration
obligations, a fiduciary duty and prohibitions against
fraud and manipulation;
the Municipal Bond Fairness Act (H.R. 2549
introduced by Representative Michael E. Capuano) to
impose requirements on Nationally Recognized
Statistical Rating Organizations to ensure that their
municipal bond credit ratings were not unfairly low
relative to their corporate bond ratings; and
the Federal Municipal Bond Marketing Support
and Securitization Act (H.R. 1669 introduced by
Representative Gerald E. Connolly) to give the Treasury
Secretary the authority to provide credit enhancements
to municipal issuers and to purchase municipal bonds in
order to restore activity in the municipal bond market.
Witnesses at the hearing included representatives from
Federal agencies and local governments, as well as participants
in the municipal market. The participants on the first panel
included Martha Mahan Haines, Chief, Office of Municipal
Securities, U.S. Securities and Exchange Commission; Bill
Apgar, Senior Advisor to the Secretary, U.S. Department of
Housing and Urban Development; David W. Wilcox, Deputy
Director, Division of Research and Statistics, Board of
Governors of the Federal Reserve System; The Honorable Thomas
C. Leppert, Mayor of Dallas, Texas, on behalf of the U.S.
Conference of Mayors; and Ben Watkins, Director of the State of
Florida Division of Bond Finance, State Board of
Administration, Florida.
The witnesses on the second panel consisted of Michael J.
Marz, Vice Chairman, First Southwest Company; Laura Levenstein,
Senior Managing Director, Moody's Investors Service; Keith
Curry, Managing Director, PFM Group; Alan B. Ispass, PE, BCEE,
Vice President and Global Director of Utility Management
Solutions, CH2M Hill; Sean W. McCarthy, President and Chief
Operating Officer, Financial Security Assurance, Inc.; Bernard
Beal, CEO, M.R. Beal and Company on behalf of SIFMA; Mary Jo
Ochson, CFA, Senior Vice President, Chief Investment Officer
for the Tax-Exempt Money Market and Municipal Bond Investment
Groups and Senior Portfolio Manager, The Federated Funds; Mike
Allen, Chief Financial Officer, Winona Health; and Sean Egan,
Managing Director, Egan-Jones Ratings Company.
The provisions of the Municipal Financial Advisors
Regulation Act were ultimately incorporated into Title V of the
comprehensive financial services regulatory reform bill passed
by the House on December 11, 2009. Some of those provisions are
also reflected in Subtitle H of Title IX of the Dodd-Frank Act.
SEC CONFIDENTIALITY PROVISION
On September 16, 2010, the Committee held a legislative
hearing entitled ``Legislative Proposals to Address Concerns
Over the SEC's New Confidentiality Provision.'' The hearing
focused on Section 929I of the Dodd-Frank Act, which protected
SEC examination materials from production in response to
Freedom of Information Act (FOIA) requests and subpoenas.
Shortly after passage of the Dodd-Frank Act, some public
interest groups and Members of Congress voiced concern that
Section 929I protected too much information about the SEC from
public scrutiny. The hearing also focused on four bills
introduced to repeal and/or modify Section 929I, namely H.R.
5924 introduced by Representative Darrell E. Issa, H.R. 5948
introduced by Representative John Campbell, H.R. 5970
introduced by Representative Ron Paul, and H.R. 6086 introduced
by Representative Edolphus Towns.
Witnesses at the hearing included bill sponsors and
representatives from the SEC, open-government groups, and
private sector securities lawyers. Specifically, the
participants on the first panel included Representatives Towns
and Issa. The sole witness on the second panel was SEC Chairman
Mary L. Schapiro. Witnesses on the third panel consisted of The
Honorable Harvey L. Pitt, CEO, Kalorama Partners, LLC; Angela
Canterbury, Director of Public Policy, Project on Government
Oversight; Rick Blum, Coordinator, Sunshine in Government
Initiative; Steven Mintz, Partner, Mintz & Gold; and Susan
Merrill, Partner, Bingham McCutchen LLP, on behalf of SIFMA.
On September 21, 2010, the Senate passed S. 3717
(introduced by Senator Patrick Leahy) by unanimous consent. A
companion bill to H.R. 6086, S. 3717 provided for the repeal of
Section 929I. The bill also mitigated the impact on the SEC by
clarifying that the traditional FOIA exemption for exam
materials applied to SEC-regulated entities. S. 3717 did not,
however, preserve any protections for exam-related materials
sought from the SEC by third-party subpoena.
To address concerns about the broad scope of Section 929I
without further delay, the House passed S. 3717 on September
23, 2010, by voice vote, and the bill became law on October 5,
2010 (P.L. 111-257). On the House floor, Financial Services
Chairman Barney Frank and Ranking Member Spencer Bachus, along
with Oversight and Government Reform Chairman Edolphus Towns
and Ranking Member Darrell Issa, affirmed their commitment to
restore some of the protections lost through repeal of Section
929I, so that the SEC will be able to resist attempts by
litigants to obtain exam-related information via third-party
subpoena.
COVERED BONDS
On December 15, 2009, the Committee held a hearing entitled
``Covered Bonds: Prospects for a U.S. Market Going Forward.''
The hearing considered the potential role that covered bonds
could play in U.S. markets and whether covered bonds could
serve as an alternative to mortgage securitization. Witnesses
included Alan Boyce, CEO, Absalon; Scott A. Stengel, Partner,
Orrick, Herrington & Sutcliffe LLP on behalf of the U.S.
Covered Bond Council; Bert Ely, Ely & Company Inc.; Wesley
Phoa, Senior Vice President, Capital International Research,
Inc.; and J. Christopher Hoeffel, Managing Director, Investcorp
International Inc. on behalf of the Commercial Mortgage
Securities Association.
On July 27, 2010, the Committee subsequently held a markup
of and favorably reported H.R. 5823, the United States Covered
Bond Act of 2010, introduced by Capital Markets Subcommittee
Ranking Member Scott Garrett, along with Financial Services
Ranking Member Bachus and Capital Markets Subcommittee Chairman
Kanjorski. In general, the bill establishes a regulatory
framework for a covered bond market in the United States by
providing rule-writing authority and direction to the covered
bond regulator to determine the eligible participants,
appropriate assets for inclusion in covered pools, and a
resolution mechanism in the event of a default of the covered
bond or resolution of an issuer.
INSURANCE REGULATORY REFORM
Although not formally considered by the Committee in the
111th Congress, two insurance regulatory reform bills
previously considered by the Committee passed the House under
suspension of the rules. On September 9, 2009, the House passed
H.R. 2571, the Nonadmitted and Reinsurance Reform Act of 2009,
and on May 21, 2010, the House approved H.R. 2554, the National
Association of Registered Agents and Brokers Reform Act of
2010. The Nonadmitted and Reinsurance Reform Act was
subsequently incorporated into the Dodd-Frank Act and became
law on July 21, 2010.
INSURANCE INFORMATION
Building substantially on the oversight and legislative
activities in the areas of insurance information and insurance
regulatory reform of the Capital Markets Subcommittee during
the 110th Congress and the 111th Congress, on October 6, 2009,
the Committee held a hearing entitled ``Capital Markets
Regulatory Reform: Strengthening Investor Protection, Enhancing
Oversight of Private Pools of Capital, and Creating a National
Insurance Office.'' As noted above in the section on financial
reform hearings, the third panel of witnesses for this hearing
commented on H.R. 2609, the Federal Insurance Office Act of
2009. H.R. 2609 was the 111th Congress iteration of
Subcommittee Chairman Kanjorski's Office of Insurance
Information Act of 2008. Both bills sought to create an
insurance office within the Treasury Department to provide
advice to and expertise on insurance policy to the
Administration and Congress. On December 2, 2009, H.R. 2609
passed the Committee by a unanimous voice vote. The bill was
subsequently incorporated into H.R. 4173 and became public law
as part of the Dodd-Frank Act.
NATIONAL FLOOD INSURANCE PROGRAM EXTENSION AND REFORM
H.R. 5114, the Flood Insurance Reform Priorities Act of
2010, and H.R. 1264, the Multiple Peril Insurance Act of 2009,
were ordered reported by the Committee on April 27, 2010. H.R.
5114 would have reauthorized the National Flood Insurance
Program (NFIP) for five years and provided various reforms to
the program, including the phasing in of actuarial rates for
newly mapped homeowners. H.R. 1264 would have allowed the NFIP
to offer optional wind insurance policies and would have
prohibited insurers from including anti-concurrent causation
provisions in their homeowners' insurance policies. On April
22, 2010, the Committee reported both bills with favorable
recommendations. On July 15, 2010, the House passed H.R. 5114
by a vote of 329 to 90.
The Committee additionally drafted legislation, H.R. 5569,
to continue the NFIP for a three-month period pending the
enactment of a long-term authorization. On July 2, 2010,
President Obama signed H.R. 5569, legislation to continue the
NFIP from June 1 to September 30, 2010. On September 30, 2010,
President Obama subsequently signed S. 3814, legislation to
continue the NFIP through September 30, 2011.
NATURAL DISASTER INSURANCE
H.R. 2555, the Homeowners' Defense Act of 2010, was ordered
reported by the Committee on April 27, 2010, and was favorably
reported to the House on July 13, 2010. H.R. 2555 would provide
Federal encouragement for States to develop State-sponsored
reinsurance programs designed to enhance the efficiency by
which catastrophic risks are transferred into the capital
markets. Specifically, H.R. 2555 would: (1) establish a non-
profit consortium to coordinate catastrophe risk management
actions by the States; (2) provide for a Federal guarantee of
debt obligations issued by eligible state-based catastrophe
insurance programs; (3) establish a Federal program to provide
reinsurance to eligible state-based catastrophe insurance
programs; (4) authorize a new Federal grant program to help the
States prevent and mitigate losses from natural disasters; and
(5) direct the GAO to study and report on the use of risk-based
pricing by state-based catastrophe insurance programs.
FEDERAL INTERVENTION IN THE AMERICAN INTERNATIONAL GROUP
On March 24, 2009, the Committee held a hearing entitled
``Oversight of the Federal Government's Intervention at
American International Group.'' This hearing, chaired
predominantly by Capital Markets Subcommittee Chairman
Kanjorski, consisted of one panel of witnesses featuring
Treasury Secretary Timothy F. Geithner, Federal Reserve
Chairman Ben S. Bernanke, and Federal Reserve Bank of New York
President William Dudley.
The hearing focused broadly on the lead up to and need for
Federal intervention at American International Group (AIG), but
centered substantially on compensation paid to employees at
AIG's failing Financial Products division. This hearing and a
corresponding Capital Markets Subcommittee hearing together
formed only a small part of an extensive series of related
correspondence and ongoing AIG oversight undertaken by the
Committee and Capital Markets Subcommittee throughout the 111th
Congress.
On March 25, 2009, the Committee also considered a
resolution of inquiry, House Resolution 251, directing the
Treasury Secretary to transmit to the U.S. House of
Representatives all information in his possession relating to
specific communications with AIG. The Committee ordered the
resolution reported to the House with a favorable
recommendation by a recorded vote of 64 to zero (H. Rept. 111-
84).
EXECUTIVE COMPENSATION
On March 18 and 24, 2009, the Capital Markets Subcommittee
and the Committee, respectively, held hearings relating to the
Federal intervention at AIG (see the discussion immediately
above). Witnesses for these two hearings included Scott
Polakoff, Acting Director, Office of Thrift Supervision; Joel
Ario, Insurance Commissioner, Pennsylvania Insurance
Department, on behalf of the National Association of Insurance
Commissioners; Orice M. Williams, Director, Financial Markets
and Community Investment, Government Accountability Office;
Rodney Clark, Managing Director, Insurance Ratings, Standard &
Poor's; Edward M. Liddy, Chairman and CEO, AIG; Treasury
Secretary Geithner, Federal Reserve Chairman Bernanke, and
Federal Reserve Bank of New York President Dudley.
These hearings dealt substantially with compensation
practices at AIG following the intervention of the Federal
Government and brought to the forefront the larger issues of
compensation at financial institutions, particularly the
financial institutions that received Federal financial
assistance through the Troubled Asset Relief Program (TARP). In
the immediate aftermath of the March 2009 AIG hearings, on
March 25 the Committee considered H.R. 1664, a bill to amend
the executive compensation provisions of the Emergency Economic
Stabilization Act of 2008 to prohibit unreasonable and
excessive compensation at companies participating in the TARP
program. The Committee ordered H.R. 1664 reported to the House
with a favorable recommendation by a record vote of 38 to 22.
On April 1, 2009, H.R. 1664 passed the House by a recorded vote
of 247 to 171.
On June 11, 2009, the Committee held the first of four
executive compensation hearings conducted during the 111th
Congress. This first hearing, entitled ``Compensation Structure
and Systemic Risk,'' focused broadly on oversight and
regulation of compensation practices in the financial services
industry, particularly in the context of systemic risk
regulatory reform. Witnesses at this hearing included Gene
Sperling, Counselor to the Secretary of the Treasury; Scott
Alvarez, General Counsel, Board of Governors of the Federal
Reserve System; Brian Breheny, Deputy Director of Corporate
Finance, U.S. Securities and Exchange Commission; Lucien
Bebchuk, Professor of Law, Economics, and Finance, and Director
of the Program on Corporate Governance, Harvard Law School;
Nell Minow, Editor and Founder, The Corporate Library; Lynn
Turner, former Chief Accountant, U.S. Securities and Exchange
Commission; Kevin Murphy, Trefftzs Chair in Finance, University
of Southern California; and J.W. Verret, Assistant Professor,
George Mason University School of Law.
This hearing also served as a legislative hearing for H.R.
3269, the Corporate and Financial Institution Compensation
Fairness Act of 2009. H.R. 3269 provides shareholders a non-
binding, advisory vote on their company's pay practices,
requires Federal regulators to proscribe any inappropriate and
imprudently risky compensation practices as part of solvency
regulation of all financial institutions, and mandates
disclosure of compensation structures for financial
institutions with assets in excess of $1 billion. The Committee
favorably reported H.R. 3269 by a recorded vote of 40 to 28 on
July 28, 2009, and the bill passed the House by a recorded vote
of 237 to 185 on July 31, 2009. H.R. 3269 was subsequently
incorporated into H.R. 4173, and became public law as part of
the Dodd-Frank Act.
On January 22, 2010, and February 25, 2010, the Committee
held two hearings respectively entitled ``Compensation in the
Financial Industry'' and ``Compensation in the Financial
Industry--Government Perspectives.'' Building on the
Committee's 2009 compensation oversight and legislative
activities, these two hearings solicited input on financial
industry compensation structures and the anticipated impact of
H.R. 3269 from witnesses including Lucian Bebchuk, Professor of
Law, Economics, and Finance, and Director of the Program on
Corporate Governance, Harvard Law School; Nell Minow, Editor
and Founder, The Corporate Library; Joseph Stiglitz, University
Professor, Columbia Business School; Kenneth Feinberg, Special
Master for TARP Executive Compensation, U.S. Department of the
Treasury; Scott Alvarez, General Counsel, Board of Governors of
the Federal Reserve System; and Edward J. DeMarco, Acting
Director, Federal Housing Finance Agency.
On September 24, 2010, the Committee held a hearing
entitled, ``Executive Compensation Oversight after the Dodd-
Frank Wall Street Reform and Consumer Protection Act.''
Witnesses included Scott Alvarez, General Counsel, Board of
Governors of the Federal Reserve System; Meredith Cross,
Director, Division of Corporation Finance, U.S. Securities and
Exchange Commission; Marc Steckel, Associate Director, Division
of Insurance and Research, Federal Deposit Insurance
Corporation; Martin Baily, Senior Fellow, The Brookings
Institution; and Darla C. Stuckey, Senior Vice President--
Policy & Advocacy, Society of Corporate Secretaries and
Governance Professionals. The hearing focused on the
anticipated impact of the Dodd-Frank Act's executive provisions
on compensation practices, particularly in the financial
services industry.
MORTGAGE FORECLOSURES AND LOAN MODIFICATIONS
The full Committee held three hearings on Federal
foreclosure prevention efforts and programs. On July 9, 2009,
the Committee held a hearing on ``H.R. 3068, the TARP for Main
Street Act of 2009.'' That bill would have used TARP funds,
including dividends, to provide funding for the National
Housing Trust Fund, the Neighborhood Stabilization Program,
Emergency Mortgage Relief in the form of loans to unemployed
homeowners, and HUD multifamily mortgage resolution of troubled
multifamily housing projects. Ultimately, Congress provided, in
the Dodd-Frank reform bill, $1 billion in assistance to
unemployed homeowners, per the provisions of the Emergency
Mortgage Relief section in H.R. 3068. The same bill included a
requirement for HUD to engage in resolution of troubled
multifamily housing projects, consistent with the provisions of
H.R. 3068.
On December 8, 2009, the Committee held a hearing on ``The
Private Sector and Government Response to the Mortgage
Foreclosure Crisis.'' The hearing involved testimony from both
Federal officials and private sector participants on activities
to date to address the growing foreclosure problem, including
the Federal HAMP program, banking regulators' loan modification
activities with respect to institutions it took over, and
private sector loan modifications being made by mortgage
servicers.
On April 13, 2010, the Committee held a hearing on ``Second
Liens and Other Barriers to Principal Reduction as an Effective
Foreclosure Mitigation Program.'' The hearing solicited
testimony from major banking/mortgage servicing firms, on the
challenges posed by second lien mortgage loans and other
factors on the willingness and performance of lenders to offer
troubled borrowers principal reductions in their mortgage
loans, as part of loan modification efforts.
The Committee included language in the American
Reinvestment and Recovery Act of 2009 (P.L. 111-5) protecting
tenants at foreclosure in properties acquired using
Neighborhood Stabilization Funds. These protections were
expanded to tenants in all mortgaged rental properties in the
Protecting Tenants at Foreclosure Act, which was included as
part of the Helping Families Save their Home Act (P.L. 111-22).
Generally, these protections require that tenants residing in
foreclosed properties receive 90 days notice to vacate at
notice of foreclosure, except when the purchaser will occupy
the property as a primary residence.
The Dodd-Frank Act established a competitive program at the
U.S. Department of Housing and Urban Development that would
provide grants to State and local legal organizations for a
full range of legal assistance to low- and moderate-income
homeowners and tenants related to home ownership preservation,
home foreclosure prevention, and tenancy associated with home
foreclosure. Priority would be given to the 125 metropolitan
statistical areas with the highest foreclosure rates.
Language was also included in the FHA Reform Act of 2010
(H.R. 5072) that would allow the Secretary of HUD to provide
servicers of covered mortgages reimbursement for the costs of
obtaining the services of independent third parties to make in-
person contact with mortgagors whose payments are 60 or more
days past due, solely for the purposes of providing information
to such mortgagors on available counseling, available mortgage
loan modification, refinance and assistance programs, and
available counseling regarding financial management and credit
risk. H.R. 5072 passed the House on June 10, 2010, and was sent
to the Senate.
HOUSING PRESERVATION
The Committee held a series of hearings on affordable
housing preservation in 2009 and 2010, which involved receiving
testimony from HUD and a broad range of stakeholders. On July
27, 2010, the Committee ordered favorably reported H.R. 4868,
the ``Housing Preservation and Tenant Protection Act of 2010,''
which would ensure long-term preservation of the HUD's assisted
housing inventory while protecting poor and low-income
residents from being displaced by higher rents once the
affordability restrictions for their unit are lifted.
FEDERAL HOUSING ADMINISTRATION
The Committee examined FHA's ability to oversee approved
lenders and its ability to prevent fraud in a hearing ``FHA
Oversight of Loan Originators'' held on January 9, 2009. The
Committee also examined FHA's FY09 Actuarial Report at a
December 2, 2009 hearing. On April 22, 2010, the Committee
favorably reported out the FHA Reform Act of 2010 (H.R. 5072)
with a favorable recommendation, which provided FHA with
additional tools to improve the health of the Mutual Mortgage
Insurance Fund (MMIF). The Act passed the U.S. House of
Representatives on June 10, 2010 by a margin of 406-4. The
provision in the Act that allows the Secretary to increase the
annual mortgage insurance premium in the single-family mortgage
insurance program became law on August 11, 2010 (P.L. 111-229).
RURAL HOUSING
The Committee held a series of hearings on affordable
housing preservation in 2009 and 2010, which included testimony
from the U.S. Department of Agriculture's Office of Rural
Development and a broad range of stakeholders. On July 27,
2010, the Committee ordered favorably reported H.R. 4868, the
``Housing Preservation and Tenant Protection Act of 2010.''
Title VIII of H.R. 4868, which is similar to H.R. 2876, the
``Rural Housing Preservation Act of 2009,'' would ensure long-
term preservation of the Office of Rural Development's assisted
housing inventory while protecting low-income tenants in rural
communities.
The Committee held a markup on April 22, 2010 and ordered
favorably reported H.R. 5017, a bill to preserve Section 502
single family direct and guaranteed loan programs. On April 27,
2010, H.R. 5017 passed the House by a motion to suspend the
rules with a vote of 352-62. H.R. 5017 was referred to the
Senate Committee on Banking, Housing, and Urban Affairs. On
July 29, 2010, the language from H.R. 5017 was incorporated
into the Supplemental Appropriations Act of 2010, H.R. 4899,
and signed into law as P.L. 111-212.
SECTION 8 HOUSING CHOICE VOUCHER PROGRAM
On July 23, 2009 the Committee ordered reported H.R. 3045,
the Section 8 Voucher Reform Act of 2009. This legislation
would reform and streamline the Section 8 voucher program. The
report was filed on September 30, 2009 (H. Rept. 111-277). No
further action on H.R. 3045 took place in the 111th Congress.
SUPPORTIVE HOUSING
Title VII of H.R. 4868, reformed the Section 202 Supportive
Housing for the Elderly program to facilitate the construction
of new units, and the preservation of existing units. The
Committee ordered favorably reported H.R. 4868 on July 27,
2010.
AFFORDABLE HOUSING PRODUCTION
The National Housing Trust Fund was established to
construct, maintain and preserve affordable rental housing for
the lowest income families in both rural and urban areas. The
Committee reviewed HUD's submission of proposed regulations to
implement the Trust Fund. In H.R. 2847, the House capitalized
the Trust Fund in the amount of $1 billion, as requested in the
Obama Administration's FY2010 budget proposal.
PUBLIC HOUSING
The Committee held several hearings on the current state of
public housing, including the capital needs of the public
housing properties, new proposals to preserve existing
properties and proposals to provide public housing agencies and
residents greater access to supportive services. On June 15,
2009, Chairman Frank, with Subcommittee Chairwoman Waters,
wrote to the Secretary of Housing and Urban Development, Shaun
Donovan, requesting a moratorium on the demolition and
disposition of public housing units to allow the Committee to
work with the Department and other interested stakeholders to
enact legislation that would facilitate the preservation of
public housing units. The Committee held several hearings on
the preservation of public housing. The Committee considered
legislation, H.R. 5814, the Public Housing Reinvestment and
Tenant Protection Act of 2010, to authorize the Choice
Neighborhoods program, reform the public housing disposition
and demolition statute, to increase access to existing funding
resources for public housing rehabilitation, and to authorize a
new program for the training of public housing residents as
home healthcare providers. The Committee ordered reported the
bill favorably on July 27, 2010. The bill included four titles:
the Choice Neighborhoods Initiative Act of 2010, the Public
Housing One-for-One Replacement and Tenant Protection Act of
2010, the Public Housing Preservation and Rehabilitation Act of
2010, and the Together We Care Act of 2010.
The Committee held a hearing on May 25, 2010 on ``The
Administration's Proposal to Preserve and Transform Public
Housing: The Transforming Rental Assistance Initiative'' also
known as PETRA. Witnesses at the hearing included HUD, public
housing agencies, HUD-assisted multifamily housing owners and
tenant representatives and advocates. The Administration's
draft legislation proposed preserving public and HUD-assisted
housing properties through conversion to a unified project-
based assistance, enhancing housing choices for residents and
create more uniform policies across HUD rental assistance
programs. The Committee took no legislative action on PETRA.
HOPE VI AND CHOICE NEIGHBORHOODS
The HOPE VI program provides assistance to public housing
agencies to improve the living environment of residents of
severely distressed public housing projects. The
Administration's budget request for Fiscal Years 2009 and 2010
included funds for the Choice Neighborhoods Initiative, a grant
program to replace the HOPE VI program and provide funds for
the revitalization of public and HUD-assisted rental housing.
On March 17, 2010, the Committee held a hearing on the
Administration's proposal for the Choice Neighborhoods
initiative. Witnesses included representatives from HUD,
affordable housing advocacy groups and industry
representatives. Title I of H.R. 5814, the ``Public Housing
Reinvestment and Tenant Protection Act of 2010, authorizes the
Choice Neighborhood program. In addition, the new Choice
Neighborhoods program would include a number of the important
reforms from previous HOPE VI legislation, including expanding
the number of replacement housing units, ensuring that
residents have access to revitalized sites, requiring
monitoring and tracking of displaced residents, and greater
resident involvement in the planning and re-development
process. The Committee reported the bill favorably on July 27,
2010.
FAIR HOUSING
The Committee favorably reported H.R. 476, the ``Veterans,
Women, Families with Children, and Persons with Disabilities
Housing Fairness Act of 2010,''which would authorize nationwide
fair housing enforcement testing, increase the authorization
level for a Fair Housing Initiatives Program, and create a
competitive matching grant program for private nonprofit
organizations to examine the causes of housing discrimination
and segregation as well as their effects on education, poverty
and economic development.
The Government Accountability Office issued a report (GAO-
10-905) in October 2010 entitled, ``Housing and Community
Grants: HUD Needs to Enhance Its Requirements and Oversight of
Jurisdictions' Fair Housing Plans,'' which was requested by
several Members of the Committee. Members of the Committee who
requested the report have written to HUD to recommend that the
Department implement each of the GAO report's recommendations.
REHABILITATION OF FORECLOSED PROPERTIES
Congress enacted the Neighborhood Stabilization Program
(NSP) as part of the Housing and Economic Recovery Act (P.L.
110-289). NSP provided $4 billion to states and local
governments for the redevelopment of abandoned and foreclosed
homes. A second round of funding in the amount of $2 billion
was included in the American Recovery and Reinvestment Act
(P.L. 111-5), and a third and final round in the amount of $1
billion was included in the Dodd-Frank Wall Street Reform and
Consumer Protection Act (P.L. 111-203). The Committee provided
oversight to HUD on the implementation of the NSP program. On
May 22, the Chairman wrote to HUD Secretary Shaun Donovan
requesting consideration of various implementation and
regulatory issues, including the purchase discount requirement,
the definition of abandoned properties, appraisal requirements,
and rules concerning previously acquired foreclosed properties.
In response, HUD reduced the purchase discount, clarified the
definition of abandoned properties, agreed to a case-by-case
review if necessary of rules concerning previously acquired
properties and noted the Department's agreement with the
appraisal requirements.
HOUSING COUNSELING
The Committee provided oversight of the National
Foreclosure Mitigation Program (NFMC), initially enacted as
part of the Consolidated Appropriations Act of 2008 (P.L. 110-
161). P.L. 110-161 provided $130 million to HUD approved
housing counseling intermediaries, state housing finance
agencies and NeighborWorks America organizations to provide
foreclosure counseling. Subsequent rounds of funding included
$177.5 million in P.L. 110-289 along with $25 million for legal
assistance; $50 million in P.L. 111-8; and $65 million in P.L.
111-117.
On March 22, 2010, the Committee held a briefing to provide
an overview of the housing counseling industry and the role of
nonprofit housing counselors for Congressional staff.
The Dodd-Frank Wall Street Reform and Consumer Protection
Act of 2010 contained a provision to establish an Office of
Housing Counseling within HUD to boost homeownership and rental
housing counseling.
ENERGY EFFICIENCY
On April 22, 2010, the Committee ordered favorably reported
H.R. 2336, the ``GREEN Resources for Energy Efficient
Neighborhoods Act of 2009,'' which would promote greater energy
efficiency within HUD's single and multi-family housing
programs. The report was filed on September 22, 2010 (H. Rept.
111-619). On September 23, 2010, the Committee held a hearing
on H.R. 4690, the ``Livable Communities Act of 2010,'' which
would codify the Office of Sustainable Communities at HUD,
establish an independent, interagency council on sustainable
communities within the Executive Branch, and authorize a
comprehensive planning grant program for municipalities and a
sustainability challenge grant program to help communities
execute their comprehensive regional plans.
HOMELESSNESS
On May 19, 2009, the House approved by a vote of 367-54, S.
896, an omnibus housing bill that included the reauthorization
of the McKinney-Vento homeless programs. The bill was signed
into law the next day as P.L. 111-22. The McKinney-Vento
reauthorization bill that was enacted was virtually identical
to H.R.7211, the ``Homeless Emergency Assistance and Rapid
Transition to Housing Act of 2008, which passed the House on
October 2, 2008, and which had been sponsored by Reps. Gwen
Moore and cosponsored by Reps. Biggert, Capito, Carson, Davis
(Geoff), Frank, and Waters. The legislation was the first major
reauthorization of McKinney-Vento in over 20 years, and makes a
number of changes designed to improve the effectiveness of
Federal homeless programs and assistance, including revising
the definition of ``homeless persons'' and ``chronic
homelessness,'' targeting more funds towards homeless
prevention, and improving the delivery of homeless assistance
in rural areas.
VETERANS HOUSING
On June 16, 2009, the House passed H.R. 403, the ``Homes
for Heroes Act of 2009'' which authorizes 20,000 new housing
vouchers for homeless veterans. H.R. 403 was referred to the
Senate Committee on Banking, Housing, and Urban Affairs on June
17, 2009.
NATIVE AMERICAN HOUSING
On April 20, 2010, H.R. 3553 the ``Indian Veterans Housing
Opportunity Act of 2009,'' a bill to ensure HUD housing
benefits to qualified Native American veterans with
disabilities passed out of the House by voice vote under a
suspension of the Rules and was referred to the Senate. On
September 27, 2010, the Senate passed H.R. 3553 by unanimous
consent without amendment. On October 12, 2010, H.R. 3553 was
signed by the President and became P.L. 111-269.
The Government Accountability Office issued a report (GAO-
10-326) in February 2010, entitled ``Native American Housing:
Tribes Generally View Block Grant Program as Effective, but
Tracking of Infrastructure Plans and Investments Needs
Improvement,'' pursuant to the mandate included in the 2008
reauthorization of the Native American Housing Assistance and
Self-Determination Act of 1996. The mandate required the GAO to
assess the program's effectiveness.
COMMUNITY AND ECONOMIC DEVELOPMENT
The Committee held a hearing on June 19, 2009, on the
Economic Disaster Area Act of 2009 to explore a legislative
proposal to set aside CDBG funds for economic disaster areas.
The Act sought to utilize CDBG as a resource to assist
communities experiencing high and persistent unemployment,
particularly in rural areas. On April 20, 2010, the Chairman
and Subcommittee Chairwoman Waters wrote to the Appropriations
Subcommittee requesting that $6 million in budget authority for
the CDBG Section 109 Loan Guarantee Program be restored.
THE STATE OF THE INTERNATIONAL FINANCIAL SYSTEM
On September 22, 2010, the Committee received the testimony
of the Secretary of the Treasury on the state of the
international financial system, including international
regulatory issues relevant to the implementation of the Dodd-
Frank Act.
INTERNATIONAL FINANCE
In spring 2009, Chairman Frank cautioned Treasury and
International Monetary Fund (IMF) officials that unless a
substantial amount of IMF resources was made available to help
the world's poorest countries that were being increasingly
affected by the global economic crisis, there may not be
sufficient support in the House to secure passage of the
Administration's request to boost IMF resources. The policy
goal of insisting that some of the profits from the proposed
sale of IMF gold should be used to help alleviate the most
vulnerable countries' burdens, was incorporated as a
congressional directive in the ``Supplemental Appropriations
Act, 2009,'' thus strengthening the hand of the Treasury
Secretary to negotiate such an outcome.
On May 13, 2009, Chairman Frank wrote to IMF Managing
Director Dominique Strauss-Kahn to express his appreciation for
the IMF's commitment under Strauss-Kahn's leadership to showing
a greater understanding of the social dimension that must be
present when decisions about economic assistance are made.
On July 8, 2009, Chairman Frank wrote to IMF Managing
Director Dominique Strauss-Kahn emphasizing that he was able to
work to help secure passage of the IMF package in the House in
large part because he was able to assure his Democratic
colleagues that the most vulnerable and poor low-income
countries would not be left behind, and Frank reminded Strauss-
Kahn how important it was to the United States that he push for
an international consensus on this policy among IMF members.
U.S. OVERSIGHT OF THE MULTILATERAL DEVELOPMENT INSTITUTIONS
Throughout the 111th Congress, Committee staff met on a
regular basis with Treasury officials and representatives from
the multilateral development banks (MDBs) to examine MDB
requests for significant general capital increases from donor
countries, and staff closely monitored the status of proposed
reforms at each development institution and emphasized that
these reform agendas would be an integral part of the capital
increase request process.
In spring 2009, Committee staff joined a policy expert from
the AFL-CIO, a Washington representative of the International
Trade Union Confederation, and a trade and labor expert from
the Carnegie Endowment for International Peace to negotiate
with the World Bank a moratorium on the Bank's use of its
``Employing Workers'' Indicator, which encourages the reduction
of workers' protection, in its annual ``Doing Business''
report. The Bank also agreed to convene a consultative group to
propose possible changes to the Indicator and to work to
develop a new workers' protection indicator that would
encourage compliance with core labor standards and improved
social protection.
On March 23, 2010, Chairman Frank spoke at the G-20 meeting
of Labor Ministers in Washington, D.C., on the importance of
governments integrating the expertise of their respective labor
ministries when loans or projects affecting labor markets and
worker rights come before the Boards of the multilateral
development institutions.
On May 25, 2010, Chairman Frank wrote to World Bank
President Zoellick regarding ongoing biases reflected in the
World Bank's annual ``Doing Business'' report.
On February 18, 2009, Chairman Frank and Senate Chairman
Leahy wrote to Treasury Secretary Geithner expressing concern
about the inadequacy of the Asian Development Bank's (AsDF)
third draft of its safeguard policy update, including several
areas in which the AsDF fell short of international standards.
In June 2009, Committee staff participated in the Inter-
American Development Bank's (IDB's) Washington, D.C.,
consultations with IDB officials and civil society
representatives to provide input into a significant overhaul of
the IDB's inspection mechanism. Committee staff followed up
with members of the IDB's executive board, and in particular
with members of the Board's Organization, Board Matters and
Human Resources Committee, to stress that congressional
consideration of any increase in the IDB's capital base would
be linked, in part, to the degree to which the new mechanism
was independent from Bank management, its overall transparency,
the adequacy of the mechanism's budget, the elimination of
conflicts of interest, and the degree of requester
participation in the process.
In July 2009, Committee staff visited projects in Haiti
financed by the Inter-American Development Bank (IDB) and
participated in the meetings of the Governors of the IDB from
the Caribbean member countries.
On September 10, 2009, the Committee held a hearing titled,
``The World Bank's Disclosure Policy Review and the Role of
Democratic Participatory Processes in Achieving Successful
Development Outcomes.'' The Committee reviewed the World Banks'
new proposed policy on information disclosure and examined how
the lack of direct democratic accountability at multilateral
institutions like the World Bank makes it necessary that other
control mechanisms--such as increased and timely access to Bank
documents, greater transparency and parliamentary oversight,
and broad public debate about the Bank's development policies--
are in place to ensure that broad, global international
interests are being promoted. The Committee also examined the
factors that drive or hinder change in complex international
institutions and the principal instruments and mechanisms that
leverage change. The Committee heard testimony from Nobel
Laureate in Economics Joseph E. Stiglitz; Mr. Richard E.
Bissell, Executive Director of the Policy and Global Affairs
Division at the National Academy of Science; Professor Alnoor
Ebrahim, Associate Professor, Harvard Business School; Thomas
S. Blanton, Director of the National Security Archive at George
Washington University; and Ms. Vijaya Ramachandran, Senior
Fellow, Center for Global Development.
After examining at a hearing last Congress the
Administration's proposal to support a multilateral ``Clean
Technology Fund'' to help developing economies deploy clean
technology to reduce greenhouse gas emissions, the Committee
worked with the leadership and the House Appropriations
Committee to include in the ``Consolidated Appropriations Act,
2010''authorization for U.S. contributions to a ``Clean
Technology Fund'' at the World Bank, which included policy
conditions on country and project eligibility, restricted the
types of projects, technologies and economic sectors that could
receive funds, and limited the amount of funds that could be
allocated to any one country.
On March 26, 2010, Chairman Frank and Senate Chairmen Kerry
and Leahy wrote to World Bank President Zoellick asking the
World Bank for more environmental and social commitments from
Eskom Holdings Ltd. before lending the South African utility
$3.75 billion to build one of the world's largest coal-fired
power plants.
On May 26, 2010, Chairman Frank and Representative McGovern
sent a letter to the Department of the Treasury and IDB
President Moreno recommending Ms. Korinna Horta for one of the
five open Panel positions on the IDB's newly established
``Independent Consultation and Investigation Mechanism.'' In
recommending Ms. Horta, the members noted her strong background
in international economic, social, and environmental
development, her extensive investigative fieldwork, her
experience working with indigenous peoples and other vulnerable
population groups, and her understanding of the missions and
policy frameworks of the multilateral development institutions.
On July 21, 2010, Representative Waters and members of the
Committee organized a letter to President Obama urging him to
include an expanded debt relief effort as part of his plan to
work to achieve the Millenium Development Goals.
MULTILATERAL DEVELOPMENT FUNDS
In June 2009, the Committee worked with the House and
Senate Appropriations Committees to incorporate into the
``Supplemental Appropriations Act, 2009'' authorizations for
U.S. contributions to the 15th replenishment of the
International Development Association and the 11th
replenishment of the African Development Fund, as well as
Committee-passed policy language directing the Secretary of the
Treasury to work to reform the anti-worker indicator of the
World Bank's annual ``Doing Business'' report and to increase
the independence and effectiveness of the World Bank's
Inspection Panel.
On July 21, 2009, Chairman Frank, Chairman Obey, Chairman
Lowey, and Chairman Meeks sent a letter to President Obama
cautioning the President that continued insistence on his right
through signing statements to ignore provisions of laws
providing funds to international financial institutions would
make it highly unlikely that such funds would be provided in
the future.
As the 111th Congress began to move towards adjournment,
Committee staff coordinated with the House and Senate
Appropriations Committees and the Senate Foreign Relations
Committee in an effort to include in the year's final
appropriations measure authorizations for U.S. participation in
the Asian Development Bank's 5th general capital increase, the
Asian Development Fund's 9th replenishment, and authorization
and policy language for the Clean Technology Fund.
TRADE IN FINANCIAL SERVICES
The Committee continued to monitor the negotiation of
financial services and investment provisions in the U.S.-Korea
Free Trade Agreement, with particular attention to the
elimination of barriers to the delivery of financial services
in Korea, such as foreign ownership limitations, product and
service restrictions, client restrictions, and non-transparent
regulations.
REVENUE TRANSPARENCY IN THE EXTRACTIVE INDUSTRIES
Building on the Committee's early leadership last Congress
when it held two hearings examining the importance of revenue
transparency in the extractive industries, especially in
resource-rich developing countries, a Senate provision
requiring oil, gas, and mining companies listed on U.S.
exchanges to publicly disclose the payments they make to
governments for the extraction of natural resources was
included as part of the Dodd-Frank financial reform conference
report.
SUDAN AND IRAN SANCTIONS AND DIVESTMENT
On February 23, 2009, Chairman Frank, Representative
Capuano, and Representative Barbara Lee requested a report from
the GAO on the Sudan Accountability and Divestment Act of 2007
(P.L. 110-174) to identify and evaluate actions that have been
taken to implement the voluntary divestment provisions and
compliance with the contract prohibition provisions in the Act.
On April 28, 2009, the Committee marked up H.R. 1327, the
``Iran Sanctions Enabling Act of 2009.'' H.R. 1327 would
outline standard procedures and provide federal authority for
states, local governments, and educational institutions to
divest their public funds, if they choose, from foreign firms
that have $20 million or more invested in Iran's energy sector.
The bill would also prohibit legal action against asset
managers who divest from or elect not to invest in securities
of companies doing that level of business in Iran's energy
sector. The House passed two similar proposals in the last
Congress, although the Senate did not act on either bill. The
Committee ordered the bill to be reported (as amended) by voice
vote. On October 14, 2009, the measure passed the House by a
vote of 414-6 under suspension of the rules.
On April 22, 2010, the Speaker appointed Chairman Frank,
Chairman Meeks, and Representative Garrett as conferees from
the Committee on Financial Services for consideration of
certain provisions of H.R. 2194, the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010, falling
within the jurisdiction of the House Financial Services
Committee. The Senate version of the bill included legislative
language similar to the divestment provisions of the Iran
Sanctions Enabling Act, and this language was successfully
incorporated into the final conference report of the
comprehensive Iran sanctions measure. H.R. 2194 became Public
Law 111-195 on July 1, 2010.
FULL COMMITTEE HEARINGS HELD
------------------------------------------------------------------------
Serial No. Title Date(s)
------------------------------------------------------------------------
111-1................. Promoting Bank Liquidity February 3, 2009
and Lending Through
Deposit Insurance Hope
for Homeowners, and other
Enhancements (Full).
111-3................. An Examination of the February 10, 2009
Extraordinary Efforts by
the Federal Reserve Bank
to Provide Liquidity in
the Current Financial
Crisis (Full).
111-4................. TARP Accountability: Use February 11, 2009
of Federal Assistance by
the First TARP Recipients
(Full).
111-7................. Monetary Policy and the February 25, 2009
State of the Economy,
Part I (Full).
111-8................. Monetary Policy and the February 26, 2009
State of the Economy,
Part II (Full).
111-14................ Perspectives on Regulation March 17, 2009
of Systemic Risk in the
Financial Services
Industry (Full).
111-18................ Federal and State March 20, 2009
Enforcement of Financial
Consumer and Investor
Protection Laws (Full).
111-19................ Seeking Solutions: Finding March 23, 2009
Credit for Small and Mid-
Size Businesses in
Massachusetts (Full).
111-20................ Oversight of the Federal March 24, 2009
Government's Intervention
at American International
Group (Full).
111-21................ Exploring the Balance March 25, 2009
between Increased Credit
Availability and Prudent
Lending Standards (Full).
111-22................ Addressing the Need for March 26, 2009
Comprehensive Regulatory
Reform (Full).
111-25................ H.R. 1728, the Mortgage April 23, 2009
Reform and Anti-Predatory
Lending Act of 2009
(Full).
111-26................ The Effect of the Lehman May 5, 2009
Brothers Bankruptcy on
State and Local
Governments (Full).
111-34................ Capital Loss, Corruption May 19, 2009
and the Role of Western
Financial Institutions
(Full).
111-36................ The Section 8 Voucher May 21, 2009
Reform Act (Full).
111-37................ Legislative Proposals to May 21, 2009
Improve the Efficiency
and Oversight of
Municipal Finance (Full).
111-42................ Compensation Structure and June 11, 2009
Systemic Risk (Full).
111-48................ The Economic Disaster Area June 19, 2009
Act of 2009 (Full).
111-49................ Regulatory Restructuring: June 24, 2009
Enhancing Consumer
Financial Products
Regulation (Full).
111-51................ Legislative Options for June 25, 2009
Preserving Federally- and
State-Assisted Affordable
Housing and Preventing
Displacement of Low-
Income, Elderly and
Disabled Tenants (Full).
111-54................ H.R. 3068, TARP for Main July 9, 2009
Street Act of 2009 (Full).
111-55................ A Review of the July 10, 2009
Administration's Proposal
to Regulate the Over-the-
Counter Derivatives
Market (Full).
111-58................ Banking Industry July 15, 2009
Perspectives on the Obama
Administration's
Financial Regulatory
Reform Proposals (Full).
111-61................ Community and Consumer July 16, 2009
Advocates' Perspectives
on the Obama
Administration's
Financial Regulatory
Reform Proposals (Full).
111-62................ Industry Perspectives on July 17, 2009
the Obama
Administration's
Financial Regulatory
Reform Proposals (Full).
111-64................ Monetary Policy and the July 21, 2009
State of the Economy
(Full).
111-65................ Systemic Risk: Are Some July 21, 2009
Institutions Too Big to
Fail and If So, What
Should We Do About It?
(Full).
111-66................ Regulatory Perspectives on July 22, 2009
the Obama
Administration's
Financial Regulatory
Reform Proposals, Part I
(Full).
111-68................ Regulatory Perspectives on July 24, 2009
the Obama
Administration's
Financial Regulatory
Reform Proposals, Part II
(Full).
111-73................ The World Bank's September 10, 2009
Disclosure Policy Review
and the Role of
Democratic Participatory
Processes in Achieving
Successful Development
Outcomes (Full).
111-74................ Proposals to Enhance the September 16, 2009
Community Reinvestment
Act (Full).
111-76................ The Administration's September 23, 2009
Proposals for Financial
Regulatory Reform (Full).
111-77................ Federal Regulator September 23, 2009
Perspectives on Financial
Regulatory Reform
Proposals (Full).
111-78................ Experts' Perspectives on September 24, 2009
Systemic Risk and
Resolution Issues (Full).
111-80................ H.R. 1207, the Federal September 25, 2009
Reserve Transparency Act
of 2009 (Full).
111-81................ Perspectives on the September 30, 2009
Consumer Financial
Protection Agency (Full).
111-83................ Federal Reserve October 1, 2009
Perspectives on Financial
Regulatory Reform
Proposals (Full).
111-84................ Capital Markets Regulatory October 6, 2009
Reform: Strengthening
Investor Protection,
Enhancing Oversight of
Private Pools of Capital,
and Creating a National
Insurance Office (Full).
111-85................ Reform of the Over-the- October 7, 2009
Counter Derivative
Market: Limiting Risk and
Ensuring Fairness (Full).
111-86................ H.R. 2382, the Credit Card October 8, 2009
Interchange Fees Act of
2009 and H.R. 3639, the
Expedited CARD Reform for
Consumers Act of 2009
(Full).
111-88................ Systemic Regulation, October 29, 2009
Prudential Matters,
Resolution Authority, and
Securitization (Full).
111-89................ The Overdraft Protection October 30, 2009
Act of 2009 (Full).
111-91................ FY09 FHA Actuarial Report December 2, 2009
(Full).
111-92................ H.R. 2266, The Reasonable December 3, 2009
Prudence in Regulation
Act; and H.R. 2267, the
Internet Gambling
Regulation, Consumer
Protection, and
Enforcement Act (Full).
111-93................ The Private Sector and December 8, 2009
Government Response to
the Mortgage Foreclosure
Crisis (Full).
111-95................ Covered Bonds: Prospects December 15, 2009
for a U.S. Market Going
Forward (Full).
111-98................ Compensation in the January 22, 2010
Financial Industry (Full).
111-101............... Prospects for Employment February 23, 2010
Growth: Is Additional
Stimulus Needed? (Full).
111-102............... Monetary Policy and the February 24, 2010
State of the Economy
(Full).
111-103............... Compensation in the February 25, 2010
Financial Industry
Government Perspectives
(Full).
111-104............... Condition of Small February 26, 2010
Business and Commercial
Real Estate Lending in
Local Markets (Full).
111-106............... Community Development March 9, 2010
Financial Institutions
(CDFIs): Their Unique
Role and Challenges
Serving Lower-Income,
Underserved, and Minority
Communities (Full).
111-112............... Examining the Link Between March 17, 2010
Fed Bank Supervision and
Monetary Policy (Full).
111-115............... Housing Finance--What March 23, 2010
Should the New System Be
Able to Do?: Part I--
Government and
Stakeholder Perspectives
(Full).
111-118............... Unwinding Emergency March 25, 2010
Federal Reserve Liquidity
Programs and Implications
for Economic Recovery
(Full).
111-120............... Second Liens and Other April 13, 2010
Barriers to Principal
Reduction as an Effective
Foreclosure Mitigation
Program (Full).
111-121............... Housing Finance--What April 14, 2010
Should the New System Be
Able to Do?: Part II--
Government and
Stakeholder Perspectives
(Full).
111-124............... Public Policy Issues April 20, 2010
Raised by the Report of
the Lehman Bankruptcy
Examiner (Full).
111-137............... Initiatives to Promote May 18, 2010
Small Business Lending,
Jobs, and Economic Growth
(Full).
111-140............... The Administration's May 25, 2010
Proposal to Preserve and
Transform Public and
Assisted Housing: The
Transforming Rental
Assistance Initiative
(Full).
111-146............... H.R. 2267, The Internet July 21, 2010
Gambling Regulation,
Consumer Protection, and
Enforcement Act (Full).
111-147............... Monetary Policy and the July 22, 2010
State of the Economy,
Part I (Full).
111-148............... Monetary Policy and the July 22, 2010
State of the Economy,
Part II (Full).
111-150............... Alternatives for Promoting July 29, 2010
Liquidity in the
Commercial Real Estate
Markets, Supporting Small
Businesses and Increasing
Job Growth (Full).
111-154............... Legislative Proposals to September 16, 2010
Address Concerns Over the
SEC's New Confidentiality
Provision (Full).
111-155............... The State of the September 22, 2010
International Financial
System, Including
International Regulatory
Issues Relevant to the
Implementation of the
Dodd-Frank Act (Full).
111-156............... Implementation of Higher September 22, 2010
FHA Loan Fees and Pending
Legislative Proposals to
Strengthen the FHA MMIF
Fund and Improve Lender
Oversight (Full).
111-157............... Perspectives on the September 23, 2010
Livable Communities Act
of 2010 (Full).
111-160............... Executive Compensation September 24, 2010
Oversight after the Dodd-
Frank Wall Street Reform
and Consumer Protection
Act (Full).
111-164............... The Future of Housing September 29, 2010
Finance--A Review of
Proposals to Address
Market Structure and
Transition (Full).
111-168............... A Proposal to Increase the December 8, 2010
Offering Limit under SEC
Regulation A.
------------------------------------------------------------------------
Subcommittee on Capital Markets, Insurance, and Government Sponsored
Enterprises
(Ratio: 30-20)
PAUL E. KANJORSKI, Pennsylvania,
Chairman
SCOTT GARRETT, New Jersey GARY L. ACKERMAN, New York
TOM PRICE, Georgia BRAD SHERMAN, California
MICHAEL N. CASTLE, Delaware MICHAEL E. CAPUANO, Massachusetts
PETER KING, New York RUBEN HINOJOSA, Texas
FRANK. D. LUCAS, Oklahoma CAROLYN McCARTHY, New York
DONALD A. MANZULLO, Illinois JOE BACA, California
EDWARD R. ROYCE, California STEPHEN F. LYNCH, Massachusetts
JUDY BIGGERT, Illinois BRAD MILLER, North Carolina
SHELLEY MOORE CAPITO, West Virginia DAVID SCOTT, Georgia
JEB HENSARLING, Texas NYDIA M. VELAZQUEZ, New York
ADAM PUTNAM, Florida CAROLYN MALONEY, New York
J. GRESHAM BARRETT, South Carolina MELISSA L. BEAN, Illinois
JIM GERLACH, Pennsylvania GWEN MOORE, Wisconsin
JOHN CAMPBELL, California PAUL W. HODES, New Hampshire
MICHELE BACHMANN, Minnesota RON KLEIN, Florida
THADDEUS McCOTTER, Michigan ED PERLMUTTER, Colorodo
RANDY NEUGEBAUER, Texas JOE DONNELLY, Indiana
KEVIN McCARTHY, California ANDRE CARSON, Indiana
BILL POSEY, Florida JACKIE SPEIER, California
LYNN JENKINS, Kansas TRAVIS CHILDERS, Mississippi
CHARLES A. WILSON, Ohio
BILL FOSTER, Illinois
WALT MINNICK, Idaho
JOHN ADLER, New Jersey
MARY JO KILROY, Ohio
SUZANNE KOSMAS, Florida
ALAN GRAYSON, Florida
JIM HIMES, Connecticut
GARY PETERS, Michigan
SPENCER BACHUS, Alabama, ex officio BARNEY FRANK, Massachusetts, ex
officio
Subcommittee Legislative Activities
INVESTOR PROTECTION ACT OF 2009
(H.R. 3817)
Summary
H.R. 3817, the Investor Protection Act of 2009, would
provide the U.S. Securities and Exchange Commission (SEC) with
additional authorities to protect investors from violations of
the securities laws and to enhance the agency's enforcement
powers. The bill additionally seeks to remedy failures of the
SEC to detect the Madoff Ponzi scheme and Stanford Financial
frauds, two incidents that demonstrated deficiencies in the
existing securities regulatory structure.
H.R. 3817 also includes an expeditious, independent,
comprehensive study of the entire securities industry by a high
caliber body to identify reforms and force the SEC and other
entities to put in place further improvements designed to
ensure superior investor protection. The bill includes a
whistleblower bounty program to create incentives to identify
wrongdoing in our securities markets and reward individuals
whose tips lead to successful enforcement actions. Finally,
among many other provisions, the bill would allow for the
establishment of a fiduciary duty standard for broker-dealers
providing personalized investment advice.
Legislative History
On October 1, 2009, Capital Markets Subcommittee Chairman
Kanjorski released a discussion draft of the Investor
Protection Act.
On October 6, 2009, the Committee held a hearing at which
Subcommittee Chairman Kanjorski presided entitled ``Capital
Markets Regulatory Reform: Strengthening Investor Protection,
Enhancing Oversight of Private Pools of Capital, and Creating a
National Insurance Office.'' The first panel at this hearing
examined the discussion draft of the Investor Protection Act.
Chairman Kanjorski revised and introduced H.R. 3817, the
Investor Protection Act of 2009, on October 15, 2009, and the
bill was referred to the Committee on Financial Services.
On November 4, 2009, the Committee ordered reported H.R.
3817 to the House, as amended, with a favorable recommendation,
by a vote of 41 to 28.
The Committee subsequently consolidated H.R. 3817 along
with several other Committee-passed bills to reform the
regulation of the financial services industry into one
legislative package, and on December 11, 2009, the House passed
H.R. 4173, the Wall Street Reform and Consumer Protection Act,
by a vote of 223 to 202.
After convening a conference to reconcile the House-passed
and Senate-approved financial services regulatory reform bills,
the House adopted the final version of H.R. 4173 on June 29,
2010.
President Obama subsequently signed H.R. 4173, the Dodd-
Frank Wall Street Reform and Consumer Protection Act, into law
on July 21, 2010. Title IX of the law adopts many of the
reforms first proposed in H.R. 3817.
FEDERAL INSURANCE OFFICE ACT
(H.R. 2609)
Summary
The Federal Insurance Office Act establishes a new office
within the U.S. Department of the Treasury to gather
information about the insurance industry, to provide analysis
and advice to the Administration and Congress on insurance
matters, and to monitor the insurance industry for systemic
risk purposes, among other duties and responsibilities.
Legislative History
On May 21, 2009, Capital Markets Subcommittee Chairman
Kanjorski, Oversight Subcommittee Ranking Member Judy Biggert
and five other members of the Financial Services Committee
introduced H.R. 2609, the Insurance Information Act of 2009.
The Capital Markets Subcommittee had approved a substantially
similar bill in the 110th Congress.
On October 1, 2009, Chairman Kanjorski released a
discussion draft of a manager's amendment to H.R. 2609. Among
other modifications, this discussion draft changed the bill's
name to the Federal Insurance Office Act.
On October 6, 2009, the Committee held a hearing entitled
``Capital Markets Regulatory Reform: Strengthening Investor
Protection, Enhancing Oversight of Private Pools of Capital,
and Creating a National Insurance Office.'' The third panel at
this hearing examined H.R. 2609 and the manager's amendment.
On October 16, 2009, the Federal Insurance Office Act was
offered as an amendment in the nature of a substitute to H.R.
2609. On December 2, 2009, the Committee favorably reported
H.R. 2609 by a voice vote.
The Committee subsequently consolidated H.R. 2609 and the
other Committee-passed financial services regulatory reform
bills into one legislative package, and on December 11, 2009,
the House passed H.R. 4173, the Wall Street Reform and Consumer
Protection Act.
After convening a conference to reconcile the House-passed
and Senate-approved financial services regulatory reform bills,
the House adopted the final version of H.R. 4173 on June 29,
2010.
President Obama subsequently signed the Dodd-Frank Wall
Street Reform and Consumer Protection Act into law on July 21,
2010. Subtitle A of Title V of the law creates the Federal
Insurance Office.
ACCOUNTABILITY AND TRANSPARENCY IN RATING AGENCIES ACT
(H.R. 3890)
Summary
H.R. 3890, the Accountability and Transparency in Rating
Agencies Act, would require new disclosures by a Nationally
Recognized Statistical Rating Organization (NRSRO) of revenues;
add a duty to supervise NRSRO employees and give the SEC the
authority to sanction supervisors for failing to do so;
mitigate the conflicts arising from the issuer-pay model;
enhance NRSRO accountability through liability reform; require
each NRSRO to have a board with at least two independent
directors, and provide requirements for compensation, term and
duties; and add a one-year ban on the activities of issuers who
hire former NRSRO employees.
Legislative History
On May 19, 2009, the Capital Markets Subcommittee convened
a hearing entitled ``Approaches to Improving Credit Rating
Agency Regulation.''
On September 25, 2009, Capital Markets Subcommittee
Chairman Kanjorski released a discussion draft of a bill to
enhance the oversight, accountability and transparency of
credit rating agencies called the Accountability and
Transparency in Rating Agencies Act.
On September 30, 2009, the subcommittee held an additional
hearing entitled ``Reforming Credit Rating Agencies.'' The
witnesses testified about their views of the September 25
discussion draft on credit rating agency regulatory reform.
On October 21, 2009, Subcommittee Chairman Kanjorski
introduced a revised version of the Accountability and
Transparency in Rating Agencies Act as H.R. 3890, which was
then referred to the Financial Services Committee.
On October 27, 2010, the Committee held a markup of H.R.
3890. The Committee amended and favorably reported the bill by
a vote of 49 to 14.
The Committee then incorporated H.R. 3890 as Subtitle B of
Title V of H.R. 4173, the Wall Street Reform and Consumer
Protection Act. H.R. 4173 passed the House on December 11,
2009, by a vote of 223 to 202.
Subtitle C of Title IX of the Dodd-Frank Act, which passed
the House on June 29, 2010, included many of the rating agency
reform provisions first considered by the Subcommittee at its
hearings on credit rating agencies.
President Obama signed H.R. 4173, the Dodd-Frank Wall
Street Reform and Consumer Protection Act, into law on July 21,
2010.
PRIVATE FUND INVESTMENT ADVISERS REGISTRATION ACT OF 2009
(H.R. 3818)
Summary
H.R. 3818, the Private Fund Investment Advisers
Registration Act of 2009, would eliminate the private adviser
exemption contained in the Investment Advisers Act of 1940. The
change would subject most private fund advisers to registration
requirements. The bill would also authorize the SEC to require
registered investment advisers to provide reports regarding the
private funds they advise. The legislation additionally
clarifies the authority of the SEC to issue regulations to
define terms and differentiate between persons and matters in
the Investment Advisers Act as it determines necessary.
Legislative History
On May 7, 2009, the Capital Markets Subcommittee held a
hearing entitled ``Perspectives on Hedge Fund Registration.''
Among other things, this hearing examined H.R. 711, the Hedge
Fund Adviser Registration Act of 2009, which Representatives
Michael E. Capuano and Michael N. Castle introduced on January
27, 2009.
October 1, 2009, Capital Markets Subcommittee Chairman
Kanjorski released a discussion draft of the Private Fund
Investment Advisers Registration Act of 2009.
On October 6, 2009, the Committee, with assistance from the
subcommittee, held a three-panel legislative hearing entitled
``Capital Markets Regulatory Reform: Strengthening Investor
Protection, Enhancing Oversight of Private Pools of Capital,
and Creating a National Insurance Office.'' The hearing's
second panel addressed the reforms found in the discussion
draft of the Private Fund Investment Advisers Registration Act
of 2009.
On October 15, 2009, Subcommittee Chairman Kanjorski
introduced the Private Fund Investment Advisers Registration
Act of 2009 as H.R. 3818, and the bill was referred to the
Financial Services Committee.
The Committee marked up H.R. 3818 on October 27, 2010, and
favorably reported the bill, as amended, by a record vote of 67
to 1.
The Committee subsequently incorporated H.R. 3818 as
Subtitle A of Title V of H.R. 4173, the Wall Street Reform and
Consumer Protection Act. H.R. 4173 passed the House on December
11, 2009, by a vote of 223 to 202.
After convening a conference to reconcile the House-passed
and Senate-approved financial services regulatory reform bills,
the House adopted the final version of H.R. 4173 on June 29,
2010. As enacted into law on July 21, 2010, Subtitle C of Title
IX of the Dodd-Frank Act contains many of the provisions
initially found in H.R. 3818.
MORTGAGE SERVICER SAFE HARBOR ACT
(H.R. 788)
Summary
H.R. 788, the Mortgage Servicer Safe Harbor Act, would
provide a safe harbor from investor lawsuits for mortgage
servicers who engage in specified mortgage loan modifications.
Legislative History
Capital Markets Subcommittee Chairman Kanjorski, along with
Chairman Frank and Representative Castle, introduced H.R. 788
on February 2, 2009. The bill was referred to the Financial
Services Committee.
On February 4, 2009, the Committee held a markup of H.R.
788, after which the bill was ordered reported to the House, as
amended, with a favorable recommendation by voice vote.
While H.R. 788 was not voted on separately in the House,
the safe harbor provision became part of H.R. 1106, the Helping
Families Save Their Homes Act, which passed the House on March
5, 2009.
NONADMITTED AND REINSURANCE REFORM ACT OF 2009
(H.R. 2571)
Summary
H.R. 2571, the Nonadmitted and Reinsurance Reform Act of
2009, would streamline the regulation of surplus lines of
insurance and reinsurance through State-based reforms.
Legislative History
On May 21, 2009, Oversight Subcommittee Chairman Dennis
Moore and Representative Garrett reintroduced the Nonadmitted
and Reinsurance Reform Act of 2009 as H.R. 2571, which the
Capital Markets Subcommittee had reviewed and the Committee had
favorably reported in both the 109th Congress and the 110th
Congress.
On September 9, 2009, the House passed H.R. 2571 by a voice
vote.
The text of H.R. 2571 was subsequently added to H.R. 4173,
the Wall Street Reform and Consumer Protection Act, which
passed the House on December 11, 2009.
The House and Senate convened a conference to reconcile
their respective financial services regulatory reform bills.
The House later adopted the final version of H.R. 4173 on June
29, 2010. President Obama subsequently signed H.R. 4173, the
Dodd-Frank Wall Street Reform and Consumer Protection Act, into
law on July 21, 2010. As enacted, Title V of the law contains
in substantially similar form the reforms first proposed by
H.R. 2571.
SHAREHOLDER PROTECTION ACT
(H.R. 4790)
Summary
H.R. 4790, the Shareholder Protection Act, came in response
to the U.S. Supreme Court's 5-4 decision in Citizens United v.
Federal Election Commission, where the Court found that for-
profit and non-profit corporations can spend unlimited amounts
of money from their general treasury funds to influence federal
elections. The bill would make corporate political expenditures
more transparent and give shareholders more say in how those
dollars are spent.
Legislative History
On March 9, 2010, H.R. 4790, the Shareholder Protection Act
of 2010, was referred to the House Financial Services Committee
after the bill's introduction by Representative Capuano.
On March 11, 2010, the Capital Markets Subcommittee held a
hearing entitled ``Corporate Governance after Citizens United''
at which it reviewed H.R. 4790.
On July 29, 2010, the Committee held a mark-up session on
the H.R. 4790. The Committee ordered the bill reported, as
amended, to the full House by a vote of 35 to 28. No further
action was taken on this legislation during the 111th Congress.
SHAREHOLDER EMPOWERMENT ACT OF 2009
(H.R. 2861)
CORPORATE GOVERNANCE REFORM ACT OF 2009
(H.R. 3272)
PROXY VOTING TRANSPARENCY ACT OF 2009
(H.R. 3351)
Summary
H.R. 2861, H.R. 3272 and H.R. 3351 generally would improve
corporate governance by modifying the board election process,
separating the functions of CEO and chairman within a public
company, establishing risk-management committees, and enhancing
voting transparency.
Legislative History
On June 12, 2009, Representative Gary C. Peters and 11
other Members of Congress introduced H.R. 2861, the Shareholder
Empowerment Act of 2009. The bill was referred to the Financial
Services Committee for review.
Representative Keith Ellison introduced H.R. 3272, the
Corporate Governance Reform Act of 2009, on July 21, 2009,
after which the bill was referred to the Financial Services
Committee for review.
Introduced on July 27, 2009, by Representative Mary Jo
Kilroy, H.R. 3351, the Proxy Voting Transparency Act, was
referred to the Financial Services Committee for review.
On April 21, 2010, the Capital Markets Subcommittee held a
hearing entitled ``Corporate Governance and Shareholder
Empowerment.'' The hearing focused on H.R. 2861, H.R. 3272 and
H.R. 3351.
Several corporate governance reform provisions from these
three bills, including the provision on proxy access, were
later included in Title IX of H.R. 4173, the Dodd-Frank Wall
Street Reform and Consumer Protection Act, which President
Obama signed into law on July 21, 2010.
HOMEOWNERS' DEFENSE ACT OF 2010
(H.R. 2555)
Summary
H.R. 2555, Homeowners' Defense Act of 2010, would establish
a nonprofit, nonfederal entity to issue securities linked to
catastrophe risks insured or reinsured through States and
State-sponsored providers of natural catastrophe insurance.
Legislative History
Representative Ron Klein introduced H.R. 2555, the
Homeowners' Defense Act of 2009, on May 21, 2009. The bill was
referred to the Financial Services Committee for review.
On March 10, 2010, the Capital Markets Subcommittee
convened with the Subcommittee on Housing and Community
Opportunity a joint hearing entitled ``Approaches to Mitigating
and Managing Natural Catastrophe Risk: H.R. 2555, The
Homeowners' Defense Act.'' The hearing examined issues related
to natural disaster insurance.
The joint hearing on H.R. 2555 helped to inform the work of
the Committee and with the assistance of Subcommittee staff,
the Committee considered and reported H.R. 2555 to the House,
as amended, with a favorable recommendation by a record vote of
39 yeas and 26 nays, on April 27, 2010.
On September 30, 2010, twenty-five representatives from the
State of Florida wrote to Speaker Pelosi to request that the
bill be brought to the House floor for consideration.
NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS REFORM ACT OF
2010
(H.R. 2554)
Summary
H.R. 2554, the National Association of Registered Agents
and Brokers Reform Act of 2010, would establish a reciprocal
licensing process for insurance agents and brokers across State
lines.
Legislative History
Representative David Scott, along with Representative Randy
Neugebauer, introduced H.R. 2554, the National Association of
Registered Agents and Brokers Reform Act, on May 21, 2009. The
bill was substantially similar to the reforms passed by the
House in the 110th Congress as H.R. 5611, after having been
considered previously by the Subcommittee in a markup.
H.R. 2554 was referred to the Committee and passed the
House by voice vote on March 3, 2010.
UNITED STATES COVERED BOND ACT OF 2010
(H.R. 5823)
Summary
H.R. 5823, the United States Covered Bond Act of 2010,
would establish a regulatory framework for a covered bond
market in the United States by providing rule-writing authority
and direction to the covered bond regulator to determine the
eligible participants, appropriate assets for inclusion in
covered pools, and a resolution mechanism in the event of a
default of the covered bond or resolution of an issuer.
Legislative History
On December 15, 2009, with the assistance of the
Subcommittee, the Committee held a hearing entitled, ``Covered
Bonds: Prospects for a U.S. Market Going Forward.'' The hearing
explored the potential role that covered bonds could play in
U.S. markets and whether covered bonds could serve as an
alternative to mortgage securitization.
On July 22, 2010, Capital Markets Subcommittee Ranking
Member Scott Garrett, along with Financial Services Ranking
Member Spencer Bachus and Capital Markets Subcommittee Chairman
Kanjorski, introduced a revised version of the United States
Covered Bond Act of 2010 as H.R. 5823.
With assistance from the Subcommittee, the Committee
considered and ordered H.R. 5823 reported by a voice vote on
July 28, 2010.
SUBCOMMITTEE OVERSIGHT ACTIVITIES
GOVERNMENT SPONSORED ENTERPRISES AND HOUSING FINANCE REFORM
During the 111th Congress, the Subcommittee on Capital
Markets, Insurance, and Government Sponsored Enterprises
examined the status of the housing government-sponsored
enterprises (GSEs) and began discussions about how to
restructure the U.S. housing finance system. Together, the
Capital Markets Subcommittee and the Committee held a series of
seven hearings to examine the future of the housing finance
system and to conduct oversight of the housing GSEs and their
regulator. At these hearings, the Subcommittee received
testimony from representatives of the Administration, academic
institutions, think tanks, trade associations, consumer groups,
housing advocates and industry participants.
On June 3, 2009, the Subcommittee held a hearing entitled
``The Present Condition and Future Status of Fannie Mae and
Freddie Mac.'' This first congressional hearing on the GSEs in
the 111th Congress reviewed a report of the Federal Housing
Finance Agency (FHFA) about the finances, operations and
mission-related activities of Fannie Mae, Freddie Mac and the
Federal Home Loan Banks. The proceedings also reviewed ideas
for reforming the U.S. housing finance system.
Witnesses from the FHFA at the hearing included The
Honorable James B. Lockhart III, Director, FHFA; accompanied by
Edward J. DeMarco, Chief Operating Officer and Senior Deputy
Director for Housing Mission and Goals, and Christopher
Dickerson, Deputy Director for Enterprise Regulation.
Additional witnesses included Bruce A. Morrison, Chairman of
Morrison Public Affairs Group; Susan M. Wachter, the Richard B.
Worley Professor of Financial Management at The Wharton School
of University of Pennsylvania; Frances Martinez Myers, Senior
Vice President of Fox & Roach/Trident and representing the
National Association of Realtors; Lawrence J. White, the Arthur
E. Imperatore Professor of Economics of the Leonard N. Stern
School of Business at New York University; Michael D. Berman,
CMB, Vice Chairman of the Mortgage Bankers Association; and Joe
Robson of Robson Companies and Chairman of the Board of the
National Association of Home Builders.
On May 26, 2010, the Subcommittee held a second hearing
entitled ``FHFA Oversight: Current State of the Housing
Government Sponsored Enterprises.'' At this hearing, FHFA
Acting Director Edward J. DeMarco testified about:
the performance of the housing GSEs in
carrying out their respective missions;
the importance of the regulated entities in
the current economic environment;
the overall operational and financial
status, including capital positions, of the regulated
entities; and
the material deficiencies in the conduct of
the operations of the regulated entities.
The hearing also reviewed FHFA's plans for the Home Valuation
Code of Conduct, a legal agreement to strengthen the integrity
of the appraisal process entered into in March 2008 between the
New York State Attorney General Andrew Cuomo, Fannie Mae and
Freddie Mac, in consultation with the FHFA.
On July 29, 2010, the Subcommittee held a third hearing
entitled ``Future of Housing Finance: The Role of Private
Mortgage Insurance.'' The hearing examined the structure,
regulation, obligations and performance of mortgage insurers.
The Subcommittee also reviewed the mortgage insurance
industry's experiences during the recent financial crisis and
explored the need to alter the laws currently governing the
industry, as part of the larger effort to reform the U.S.
housing finance system.
Witnesses at this hearing included Patrick Sinks, President
and Chief Operating Officer of Mortgage Guaranty Insurance
Corporation on behalf of the Mortgage Insurance Companies of
America; Marti Rodamaker, President of First Citizens National
Bank of Iowa on behalf of the Independent Community Bankers
Association; Janneke Ratcliffe, Associate Director of the
University of North Carolina Center for Community Capital and
Senior Fellow, Center for American Progress; Anthony B.
Sanders, Distinguished Professor of Finance of George Mason
University and Senior Scholar of the Mercatus Center at George
Mason University; John Taylor, President and CEO of the
National Community Reinvestment Coalition; and Deborah
Goldberg, Hurricane Relief Program Director, National Fair
Housing Alliance.
On September 15, 2010, the Subcommittee held a fourth
hearing entitled ``The Future of Housing Finance Reform: A
Progress Update on the GSEs.'' The hearing focused on the
progress that Fannie Mae and Freddie Mac had made since their
placement into conservatorship, including examining the
strategies that the two GSEs and the FHFA had employed to limit
taxpayer capital infusions into Fannie Mae and Freddie Mac by
the U.S. Department of the Treasury. The hearing also explored
whether to modify the strategies or devise others. Witnesses
included The Honorable Michael S. Barr, Assistant Secretary for
Financial Institutions, U.S. Department of the Treasury, and
Edward J. DeMarco, Acting Director, Federal Housing Finance
Agency.
In addition to these four hearings, the Subcommittee
provided input to and support for each of the following
Committee hearings on the future of housing finance:
``Housing Finance--What Should the New
System Be Able to Do?: Part I--Government and
Stakeholder Perspectives'' on March 23, 2010;
``Housing Finance--What Should the New
System Be Able to Do?: Part II--Government and
Stakeholder Perspectives'' on April 14, 2010; and
``The Future of Housing Finance--A Review of
Proposals To Address Market Structure and Transition''
on September 29, 2010.
On August 13, 2010, Subcommittee Chairman Kanjorski,
Representative Brad Miller and Representative Jackie Speier
also sent a letter to President Obama stating that the FHFA
must vigorously pursue all available legal claims for losses
sustained from the conservatorship of Fannie Mae and Freddie
Mac. The letter stressed that it is critically important to
protect taxpayers and to let the American people know that the
Federal government is acting on their behalf.
Finally, throughout the 111th Congress, Subcommittee
Chairman Kanjorski and the staff of the Capital Markets
Subcommittee reviewed reports and met regularly with interested
parties to obtain information about the performance of the GSEs
and to review proposals to alter the U.S. housing finance
system.
CAPITAL MARKETS REGULATORY REFORM AND INVESTOR PROTECTION
On October 6, 2009, Capital Markets Subcommittee Chairman
Kanjorski presided at a Committee hearing entitled ``Capital
Markets Regulatory Reform: Strengthening Investor Protection,
Enhancing Oversight of Private Pools of Capital, and Creating a
National Insurance Office.'' Capital Markets Subcommittee staff
worked closely with Committee staff to organize the hearing and
to draft the legislative proposals considered at the hearing.
The hearing's investor protection panel focused on the
discussion draft of the Investor Protection Act, which
Subcommittee Chairman Kanjorski prepared and later introduced
as H.R. 3817. This legislation aimed to strengthen the powers
of the U.S. Securities and Exchange Commission (SEC) and other
securities regulators, close regulatory loopholes, better
safeguard investors, hold wrongdoers accountable, and
efficiently regulate the global capital markets.
Among its many provisions, H.R. 3817 included a requirement
that all securities professionals providing personalized
investment advice have a fiduciary duty toward their customers.
Through a harmonized standard, broker-dealers and investment
advisers would have to put investors' interests first. The
Investor Protection Act also significantly expanded the ability
of the SEC to reward those whistleblowers whose tips lead to
successful enforcement actions.
As outlined below in the section about the SEC, the
Subcommittee also examined proposals to reform the SEC's
operations at an oversight hearing on July 14, 2009, and the
implementation of the provisions contained in H.R. 4173, the
Dodd-Frank Wall Street Reform and Consumer Protection Act of
2010, including many of the requirements first proposed in H.R.
3817 at an oversight hearing on July 20, 2010.
HEDGE FUNDS
On May 7, 2009, the Capital Markets Subcommittee held a
hearing entitled ``Perspectives on Hedge Fund Registration.''
The Subcommittee convened the hearing to consider ways to
increase the transparency and improve the oversight of hedge
funds, which had been largely unregulated prior to the start of
the 111th Congress. Among other things, the hearing examined
H.R. 711, the Hedge Fund Adviser Registration Act of 2009,
legislation introduced by Representatives Michael E. Capuano
and Michael N. Castle. The hearing also focused on the
appropriate balance between providing regulation of the
industry to protect investors without unduly inhibiting the
benefits hedge funds provide investors and the market more
broadly.
Witnesses at the Subcommittee hearing included Todd Groome,
Chairman of the Alternative Investment Management Association;
The Honorable Richard H. Baker, President of Managed Funds
Association; James S. Chanos, Chairman of the Coalition of
Private Investment Companies; Orice Williams, Director of
Financial Markets and Community Investment Team, Government
Accountability Office; and Britt Harris, Chief Investment
Officer of the Teacher Retirement System of Texas.
On October 6, 2009, the Committee held a three-panel
legislative hearing entitled ``Capital Markets Regulatory
Reform: Strengthening Investor Protection, Enhancing Oversight
of Private Pools of Capital, and Creating a National Insurance
Office.'' The Subcommittee worked closely with the Committee to
organize this hearing, and Subcommittee Chairman Kanjorski
presided for much of the hearing. The hearing's second panel
addressed the reforms found in a discussion draft of H.R. 3818,
the Private Fund Investment Advisers Registration Act of 2009,
introduced by Subcommittee Chairman Kanjorski. The Committee
marked up H.R. 3818 on October 27, 2009, and the House then
passed H.R. 3818 as part of H.R. 4173 in December 2009. As
enacted into law in July 2010, the Dodd-Frank Act contains many
of the provisions initially found in H.R. 3818.
Finally, on January 15, 2010, Chairman Frank and
Subcommittee Chairman Kanjorski requested a GAO study on the
use of leverage by the portfolio companies of private equity
funds. The study will focus on the performance of these highly
leveraged companies and their ability to weather a financial
crisis vis-a-vis comparable public companies.
CREDIT RATING AGENCIES
On May 19, 2009, the Capital Markets Subcommittee convened
a hearing entitled ``Approaches to Improving Credit Rating
Agency Regulation.'' At the hearing, the Subcommittee examined
credit rating agency regulation and proposals to make credit
rating agencies more accountable. Witnesses included Robert
Auwaerter, Principal and Head of the Fixed Income Group of
Vanguard; Robert Dobilas, President and CEO of Realpoint LLC;
Eugene Volokh, Gary T. Schwartz Professor of Law, UCLA School
of Law; Stephen W. Joynt, President and CEO, Fitch, Inc.; Alex
J. Pollock, Resident Fellow, American Enterprise Institute; and
Gregory Smith, General Counsel, Colorado Public Employees'
Retirement Association.
On September 30, 2009, the Subcommittee held an additional
hearing entitled ``Reforming Credit Rating Agencies.'' The
hearing focused on a discussion draft of legislation to enhance
the oversight, accountability and transparency of credit rating
agencies released on September 25, 2009, by Subcommittee
Chairman Kanjorski.
Witnesses at this hearing included Daniel M. Gallagher, Co-
Acting Director of the Division of Trading and Markets, U.S.
Securities and Exchange Commission; Raymond McDaniel, Chairman
and CEO, Moody's Corporation; Deven Sharma, President, Standard
& Poor's; Stephen W. Joynt, President and Chief Operating
Officer, Fitch Inc.; Robert Dobilas, President and CEO,
RealPoint LLC; James H. Gellert, President and CEO, Rapid
Ratings International Inc.; and Kurt Schacht, Managing
Director, CFA Institute Centre for Financial Market Integrity.
Among other things, the Kanjorski discussion draft of the
Accountability and Transparency in Rating Agencies Act, later
introduced as H.R. 3890:
required new disclosures by Nationally
Recognized Statistical Rating Organization (NRSRO) of
revenues;
added a duty to supervise NRSRO employees
and gave the SEC the authority to sanction supervisors
for failing to do so;
mitigated the conflicts arising from the
issuer-pay model;
enhanced NRSRO accountability through
liability reform;
required each NRSRO to have a board with at
least two independent directors, and provided
requirements for compensation, term and duties; and
added a one-year ban on the activities of
issuers who hire former NRSRO employees.
On October 27, 2009, the Committee held a markup of
Subcommittee Chairman Kanjorski's discussion draft. The
Committee amended and favorably reported the bill.
Subsequently, the Committee incorporated H.R. 3890 into H.R.
4173, which passed the House on December 11, 2009. Subtitle C
of Title IX of the Dodd-Frank Act included many of the rating
agency reform provisions first considered by the Subcommittee
at its hearings on credit rating agencies.
INSURANCE REGULATORY REFORM
While the States have long functioned as the primary
regulators of the insurance marketplace, during the 111th
Congress the Capital Markets Subcommittee continued to examine
both Federal and State efforts to modernize and improve
insurance regulation.
On May 14, 2009, the Capital Markets Subcommittee convened
a hearing entitled ``How Should the Federal Government Oversee
Insurance?'' The hearing focused on insurance regulatory
reform, particularly in light of the larger regulatory reform
questions raised and the interventions and reforms undertaken
as a result of the financial crisis. Witnesses at this hearing
included Baird Webel, Specialist in Financial Economics,
Congressional Research Service; Patricia Guinn, Managing
Director of Global Risk and Financial Services Business, Towers
Perrin; J. Robert Hunter, Director of Insurance, Consumer
Federation of America; Martin F. Grace, James S. Kemper
Professor, Department of Risk Management and Insurance, Georgia
State University; and Scott Harrington, Alan B. Miller
Professor, Wharton School of Business, University of
Pennsylvania.
On June 16, 2009, the Subcommittee subsequently held a
hearing entitled ``Systemic Risk and Insurance.'' The hearing
explored how insurance would fit into a restructuring of the
financial services regulatory system, including an examination
of the complexities of insurance firms and insurance holding
companies. The hearing also reviewed particular types of
insurance products to determine whether they pose a risk to the
insurance or financial services system and are of national
significance.
Participants in the hearing included The Honorable Peter
Skinner, Member, European Parliament; The Honorable Michael T.
McRaith, Director, Illinois Department of Insurance, on behalf
of the National Association of Insurance Commissioners; Teresa
Bryce, President, Radian Guaranty Inc., on behalf of the
Mortgage Insurance Companies of America; Sean McCarthy, Chief
Operating Officer, Financial Security Assurance, Inc.; Kenneth
F. Spence, Executive Vice President and General Counsel,
Travelers; Franklin Nutter, President, Reinsurance Association
of America; Patrick S. Baird, CEO of Aegon USA, LLC, on behalf
of the American Council of Life Insurers; and John T. Hill,
President and Chief Operating Officer, Magna Carta Companies,
on behalf of the National Association of Mutual Insurance
Companies.
On March 18, 2010, the Subcommittee met at a hearing
entitled ``Insurance Holding Company Supervision.'' The hearing
focused on:
the existing authorities of State and
Federal regulators with regard to insurers and
affiliated companies under the same holding company;
the supervision and the coordination among
State and Federal regulators of these financial
entities; and
how insurance holding company regulation
differs from bank and thrift holding company
regulation.
Witnesses included Jon Greenlee, Associate Director,
Division of Banking Supervision and Regulation, Federal Reserve
Board of Governors; Grovetta N. Gardineer, Managing Director
for Corporate and International Activities, Office of Thrift
Supervision; Sean Dilweg, Commissioner of Insurance for the
State of Wisconsin; and Ann Frohman, Director of Nebraska's
Department of Insurance.
PERSPECTIVES ON SYSTEMIC RISK
On March 5, 2009, the Capital Markets Subcommittee held a
hearing entitled ``Perspectives on Systemic Risk.'' The hearing
explored systemic risk issues related to the capital markets,
including hedge funds, derivatives and credit default swaps. At
this hearing, the Subcommittee continued discussions earlier
about how to reform financial services regulation to mitigate
systemic risk. Witnesses at the hearing included Orice
Williams, Director of Financial Markets and Community
Investment, Government Accountability Office; The Honorable
Richard H. Baker, President and CEO of the Managed Funds
Association; The Honorable Steve Bartlett, President and CEO of
the Financial Services Roundtable; Therese Vaughan, CEO of the
National Association of Insurance Commissioners; Robert A.
DiMuccio, President and CEO of Amica Mutual Group; and Timothy
Ryan, Jr., President and CEO of the Securities Industry and
Financial Markets Association.
CORPORATE GOVERNANCE
On March 11, 2010, the Capital Markets Subcommittee held a
hearing entitled ``Corporate Governance after Citizens
United.'' The hearing came in response to the U.S. Supreme
Court's 5-4 decision in Citizens United v. Federal Election
Commission, where the Court found that for-profit and non-
profit corporations can spend unlimited amounts of money from
their general treasury funds to influence federal elections.
The Subcommittee considered potential legislative responses
aimed at limiting the impact of the decision, some by
empowering shareholders through corporate governance reforms
and by increasing disclosure requirements for public companies.
The hearing also reviewed H.R. 4790, the Shareholder Protection
Act. Introduced by Representative Michael E. Capuano, this bill
sought to make corporate political expenditures more
transparent and to give shareholders more say in how those
dollars are spent.
Witnesses at the hearing included John C. Coffee, Jr.,
Adolf A. Berle Professor of Law, Columbia Law School; Karl J.
Sandstrom, Of Counsel, Perkins Coie; Ann Yerger, Executive
Director, Council of Institutional Investors; J.W. Verret,
Assistant Professor of Law, George Mason University School of
Law; Nell Minow, Editor and Co-Founder of The Corporate
Library; Michael Klausner, Nancy and Charles Munger Professor
of Business and Professor of Law, Stanford Law School; and Jan
Baran, Partner at Wiley Rein LLP.
On April 21, 2010, the Capital Markets Subcommittee held an
additional hearing entitled ``Corporate Governance and
Shareholder Empowerment.'' At the hearing, the Subcommittee
focused on corporate governance reform legislation aimed at
modifying the board election process, separating the functions
of CEO and chairman within a public company, establishing risk-
management committees, and enhancing voting transparency. The
hearing considered three specific bills: H.R. 2861, the
Shareholder Empowerment Act of 2009; H.R. 3272, the Corporate
Governance Reform Act of 2009; and H.R. 3351, the Proxy Voting
Transparency Act of 2009. Several corporate governance reforms
from these bills, including the provision on proxy access, were
later included in Title IX of H.R. 4173, the Dodd-Frank Wall
Street Reform and Consumer Protection Act, which became law on
July 21, 2010.
Witnesses at the hearing included The Honorable Steven D.
Irwin, Commissioner, Pennsylvania Securities Commission;
Gregory W. Smith, Chief Operating Officer and General Counsel,
Colorado Public Employees' Retirement Association; Thomas F.
Brier, Deputy Chief Investment Officer and Director of
Corporate Governance, Pennsylvania State Employees' Retirement
System; Alexander M. Cutler, Chairman and CEO of Eaton
Corporation; Brandon J. Rees, Deputy Director, Office of
Investment, AFL-CIO; Robert E. Smith, Vice President of, Deputy
General Counsel to, and Assistant Secretary of NiSource, on
behalf of the Society of Corporate Secretaries and Governance
Professionals; and James Allen, Head of Capital Markets Policy,
CFA Institute.
DERIVATIVES
In response to a request by Capital Markets Subcommittee
Chairman Kanjorski and Financial Services Ranking Member
Spencer Bachus, the GAO completed in early 2009 a study to
review the regulatory oversight of and recent initiatives to
address the systemic risk of credit default swaps. GAO
delivered its findings on these matters as testimony at the
March 5, 2009, Subcommittee hearing entitled ``Perspectives on
Systemic Risk,'' which is discussed above.
On June 9, 2009, the Subcommittee also held a hearing
entitled ``The Effective Regulation of the Over-the-Counter
Derivatives Markets.'' The hearing focused on ways to
strengthen the regulation of the over-the-counter (OTC)
derivatives market to mitigate systemic risk. Specific issues
addressed during the hearing included whether clearing should
be mandatory for all OTC derivatives contracts and how
transparency in the OTC derivatives market could be increased.
Witnesses on the first panel of the hearing included Donald
Fewer, CEO, Standard Credit Group; Robert Pickel, CEO,
International Swaps and Derivatives Association, Inc; Timothy
J. Murphy, Foreign Currency Risk Manager, 3M; Don Thompson,
Managing Director and Associate General Counsel, JPMorgan Chase
& Co.; Christopher Ferreri, Managing Director, ICAP; and
Christian A. Johnson, Professor at University of Utah School of
Law. Participants on the second panel included Thomas Callahan,
CEO, NYSE Liffe; Terrence A. Duffy, Executive Chairman, CME
Group Inc; Christopher Edmonds, CEO, International Derivatives
Clearing Group, LLC; Jeffrey Sprecher, CEO,
IntercontinentalExchange, Inc.; and Larry E. Thompson, Managing
Director and General Counsel, Depository Trust and Clearing
Corporation.
In connection with the June 2009 Subcommittee hearing and
subsequent Committee hearings on the subject of derivatives
regulation, staff of the full Committee and the Subcommittee
regularly attended meetings and briefings with regulators,
market participants and consumer advocates to gather background
information and receive a variety of proposals and
recommendations on regulatory approaches to supervising the
derivatives markets. The findings from these meetings,
briefings and aforementioned hearings also helped to inform the
content of Title VII of the Dodd-Frank Act.
Finally, on April 29, 2010, the Capital Markets
Subcommittee convened a hearing entitled ``Credit Default Swaps
on Government Debt: Potential Implications of the Greek Debt
Crisis.'' The hearing came in response to reports that
speculation by Wall Street banks in the credit default swap
market might have adversely affected the price of debt for the
Greek government. Witnesses at the hearing included Robert
Pickel, Executive Vice Chairman, International Swaps and
Derivatives Association, Inc.; Robert Johnson, Director of
Global Finance, Roosevelt Institute; Darrell Duffie, Professor
of Finance, Graduate School of Business, Stanford University;
Anthony B. Sanders, Distinguished Professor of Real Estate
Finance, George Mason University; and Joseph R. Mason,
Louisiana Bankers Association Endowed Professor of Banking,
Louisiana State University. Additionally, Subcommittee staff
participated in meetings with representatives of the Delegation
of the European Union to the United States and other interested
parties before and after the hearing to evaluate the issue.
SECURITIES AND EXCHANGE COMMISSION
The Subcommittee conducted oversight of and advanced
changes to the structure of the SEC in several ways during the
111th Congress. For example, on June 9, 2009, Capital Markets
Subcommittee Chairman Paul E. Kanjorski wrote to SEC Chairman
Mary L. Schapiro to discern what initiatives the agency planned
to take to improve investor protection and restore confidence
in the financial markets, as well as to identify needed
legislative changes to the laws governing the U.S. capital
markets.
Subsequently, the Subcommittee held a hearing entitled
``SEC Oversight: Current State and Agenda'' on July 14, 2009,
to explore these initiatives and to examine the operations and
organizational structure of the SEC, with particular emphasis
on its supervisory and inspection functions. The hearing also
helped to inform legislative proposals, many of which were
ultimately incorporated into Title IX of the Dodd-Frank Act as
signed into law. SEC Chairman Schapiro testified as the sole
witness at the hearing.
The Subcommittee held a second SEC oversight hearing on
July 20, 2010. At the hearing entitled ``Oversight of the U.S.
Securities and Exchange Commission: Evaluating Present Reforms
and Future Challenges,'' SEC Chairman Schapiro briefed the
Subcommittee on reforms implemented since her appointment in
January 2009. She also explained how the SEC planned to
implement the requirements of the Dodd-Frank Act.
MARKET STRUCTURE
The Capital Markets Subcommittee examined developments in
the structure of the equity and options markets during the
111th Congress. In particular, the Subcommittee exercised its
oversight responsibilities in response to the ``flash crash''
of May 6, 2010, during which the stock market indices
experienced an extreme drop in value only to recover within a
matter of minutes.
On May 6, Subcommittee Chairman Kanjorski wrote to SEC
Chairman Schapiro expressing concern about the market events of
that day and seeking the SEC's views and plan of action related
to those events. At a hearing entitled ``The Stock Market
Plunge: What Happened and What Is Next?'' on May 11, 2010, the
Subcommittee then received testimony from SEC Chairman Schapiro
and CFTC Chairman Gary Gensler. Other participants at the
hearing included Lawrence Leibowitz, Chief Operating Officer,
NYSE Euronext; Eric Noll, Executive Vice President, NASDAQ
Transaction Services; and Terrence A. Duffy, Executive
Chairman, CME Group Inc.
In the months following the hearing, Subcommittee staff met
with and received briefings from the SEC and the CFTC about the
causes of the market volatility and the structural reforms
implemented as a result of the events of May 6, including the
implementation of circuit-breakers for individual stocks.
On September 30, 2010, Chairman Frank and Subcommittee
Chairman Kanjorski wrote to SEC Chairman Schapiro and CFTC
Chairman Gensler requesting that the agencies release their
joint report, also dated September 30, 2010, entitled
``Findings Regarding the Market Events of May 6, 2010: Report
of the Staffs of the CFTC and SEC to the Joint Advisory
Committee on Emerging Regulatory Issues.'' Subcommittee staff
not only reviewed the findings of that report and participated
in regular meetings with parties affected by or interested in
the events of May 6, but also explored related market structure
issues like high-frequency trading, market data fees, the SEC's
modified uptick rule, and short sale restrictions during the
111th Congress.
SECURITIES FRAUD
The Capital Markets Subcommittee responded to the SEC's
failure to detect the $65 billion Ponzi scheme orchestrated by
Mr. Bernard L. Madoff, as well as other sizable securities
frauds in the wake of the financial crisis of 2008 and 2009, by
holding hearings and conducting oversight.
Subcommittee staff worked to organize the first meeting of
the Committee in 2009. Entitled ``Assessing the Madoff Ponzi
Scheme and the Need for Regulatory Reform,'' the Committee's
proceedings took place on January 5, 2009. Witnesses at the
hearing included H. David Kotz, Inspector General, U.S.
Securities and Exchange Commission; Stephen P. Harbeck,
President, Securities Investor Protection Corporation; Allan
Goldstein, a retiree and investor with Bernard L. Madoff
Investment Securities; Tamar Frankel, Professor of Law and
Michaels Faculty Research Scholar, Boston University School of
Law; and Leon Metzger, adjunct faculty member at Columbia
University, Cornell University, New York University, and Yale
University.
Insights gleaned from this Committee meeting resulted in a
subsequent hearing of the Capital Markets Subcommittee on
February 4, 2009, entitled ``Assessing the Madoff Ponzi Scheme
and Regulatory Failures.'' Witnesses at this hearing included
Harry Markopolos, an independent financial fraud investigator
for institutional investors and others seeking forensic
accounting expertise, as well as a Chartered Financial Analyst
and Certified Fraud Examiner; Linda Thomsen, Director, Division
of Enforcement, U.S. Securities and Exchange Commission; Andrew
J. Donohue, Director, Division of Investor Management, U.S.
Securities and Exchange Commission; Erik Sirri, Director,
Division of Trading and Markets, U.S. Securities and Exchange
Commission; Andy Vollmer, Acting General Counsel, U.S.
Securities and Exchange Commission; Lori A. Richards, Director,
Office of Compliance Inspections and Examinations, U.S.
Securities and Exchange Commission; and Stephen Luparello,
Interim CEO, Financial Industry Regulatory Authority.
In combination, these proceedings of the Committee and the
Subcommittee also informed the work of the Subcommittee in
undertaking the most substantial rewrite of the laws governing
the U.S. securities markets since the Great Depression.
To ensure that the Subcommittee received a fulsome and
timely explanation as to why the SEC failed to detect the
Madoff fraud, Capital Markets Subcommittee Chairman Kanjorski
also wrote a number of letters and met with key officials at
the SEC. In January 2009, for instance, he wrote to outgoing
SEC Chairman Christopher Cox to ask why the SEC missed several
red flags that could have helped to identify the Madoff fraud
at an earlier point in time. Chairman Kanjorski additionally
met in February 2009 with SEC Chairman Schapiro shortly after
she took over the agency, and they publicly agreed to maintain
an open, cooperative dialogue regarding the Committee's
examination of the Madoff Ponzi scheme and the SEC's actions
regarding the matter.
Chairman Kanjorski also continued to press for answers into
the SEC's failures related to the Madoff fraud by writing two
letters to the Inspector General of the SEC in June 2009. Both
letters urged the timely completion of the Inspector General's
report on his investigation into the Madoff matter and the
SEC's failure to identify it.
Finally, Chairman Kanjorski monitored the administration of
claims for losses by Madoff victims by writing to the
Securities Investor Protection Corporation (SIPC) in August
2010. In the letter, Chairman Kanjorski requested data on the
status of claims filed by victims of the Madoff fraud. As
outlined in the next section, the Capital Markets Subcommittee
additionally convened two hearings to examine SIPC's
operations.
SECURITIES INVESTOR PROTECTION ACT
In response to complaints raised by investors affected by
the Madoff Ponzi scheme and the Stanford Financial fraud, the
Capital Markets Subcommittee held two hearings on December 9,
2009, and September 23, 2010, to examine the operations,
initiatives and activities of SIPC. The hearings also explored
proposals to better protect investors in today's volatile
markets by reforming certain aspects of the Securities Investor
Protection Act (SIPA).
The December 2009 hearing entitled ``Additional Reforms to
the Securities Investor Protection Act'' considered reforms in
addition to those included in the House-passed H.R. 4173, the
Wall Street Reform and Consumer Protection Act. Witnesses
included Jeannene Langford, an investor in Mot Family
Investors; Joel Green, General Counsel, Upsher-Smith
Laboratories, Inc.; Helen Chaitman, Madoff investor and legal
advisor to the Madoff Coalition for Investor Protection; Pete
Leveton, Co-Chairman, Agile Funds Investor Committee; Gregory
Lancette, Business Manager, Plumbers and Steamfitters Local 267
of Syracuse, New York; John C. Coffee, Adolf A. Berle Professor
of Law, Columbia Law School; Michael Conley, Deputy Solicitor,
U.S. Securities and Exchange Commission; and Steve Harbeck,
President, Securities Investor Protection Corporation.
As a result of the hearing, SIPC formed a Task Force to
review SIPA and to make recommendations for change. On March 3,
2010, Chairman Kanjorski wrote a letter to request that SIPC's
Task Force be comprised of a diverse group of representatives
and that the Task Force broaden its focus to consider, among
other things, how SIPC operates. Participants from this Task
Force testified at the Subcommittee hearing entitled
``Assessing the Limitations of the Securities Investor
Protection Act'' in September 2010. The witnesses included
Joseph Borg, Director, Alabama Securities Commission; The
Honorable Orlan Johnson, Chairman of the Board, Securities
Investor Protection Corporation; John C. Coffee, Adolf A. Berle
Professor of Law, Columbia Law School; Ira Hammerman, Senior
Managing Director and General Counsel, Securities Industry and
Financial Markets Association; and Steven Caruso, Partner at
Maddox, Hargett, & Caruso.
ACCOUNTING AND AUDITING
The Capital Markets Subcommittee held a hearing on March
12, 2009, entitled ``Mark-to-Market Accounting: Practices and
Implications'' to examine the mark-to-market accounting rules
that many contend exacerbated the trouble in the financial
industry and in the broader economy. Witnesses included James
Kroeker, Acting Chief Accountant, U.S. Securities and Exchange
Commission; Robert Herz, Chairman, Financial Accounting
Standards Board; Kevin Bailey, Deputy Comptroller for
Regulatory Policy, Office of the Comptroller of the Currency;
Jeff Mahoney, General Counsel, Council of Institutional
Investors; Cindy Fornelli, Executive Director, Center for Audit
Quality; Thomas Bailey, Chairman, Pennsylvania Association of
Community Bankers, and President and CEO of Brentwood Bank; Lee
Cotton, Past President, Commercial Mortgage Securities
Association; Tanya Beder, Chairman, SBCC Group; Robert D.
McTeer, Distinguished Fellow, National Center for Policy
Analysis; and The Honorable William Isaac, Chairman, Secura
Group of LECG.
Additionally, Chairman Frank, Ranking Member Bachus,
Capital Markets Subcommittee Chairman Kanjorski, and Capital
Markets Ranking Member Garrett sent a letter on April 2, 2009,
to SEC Chairman Schapiro to emphasize the importance of an
independent accounting standard setter and to urge the SEC to
provide leadership in the implementation and application of
accounting standards.
On May 21, 2010, the Subcommittee held an additional
hearing entitled ``Accounting and Auditing Standards: Pending
Proposals and Emerging Issues.'' Witnesses included James
Kroeker, Chief Accountant, U.S. Securities and Exchange
Commission; Robert Herz, Chairman, Financial Accounting
Standards Board; Daniel L. Goelzer, Acting Chairman, U.S.
Public Company Accounting Oversight Board (PCAOB). During the
hearing, witnesses provided an overview of their current and
anticipated rulemaking and standard-setting activities.
Subcommittee staff also explored and worked to incorporate
into the Dodd-Frank Act several reforms related to the PCAOB.
For example, Section 982 of the law expanded the oversight
responsibilities of the PCAOB by requiring auditors of brokers-
dealers, as defined in the Securities Exchange Act, to register
with the PCAOB. This section also authorizes the PCAOB to
develop an inspection program for the auditors of broker-
dealers. Section 981 of the Dodd-Frank Act additionally allows
the PCAOB to share information with foreign auditing
regulators. These reforms were informed, in part, by public
proceedings and hearings held by the Committee and the
Subcommittee in early 2009 after the revelation of the Madoff
Ponzi scheme.
NATURAL DISASTER INSURANCE
On March 10, 2010, the Capital Markets Subcommittee
convened a joint hearing with the Subcommittee on Housing and
Community Opportunity to examine issues related to natural
disaster insurance. Witnesses at the hearing entitled
``Approaches to Mitigating and Managing Natural Catastrophe
Risk: H.R. 2555, The Homeowners' Defense Act'' included James
Lee Witt, former Director of the Federal Emergency Management
Agency, on behalf of ProtectingAmerica.org; Glenn Pomeroy, CEO,
California Earthquake Authority; Steve Ellis, Vice President,
Taxpayers for Common Sense; and Charles McMillan of Coldwell
Banker Residential Brokerage, Dallas-Fort Worth, and Immediate
Past President of the National Association of Realtors.
AMERICAN INTERNATIONAL GROUP (AIG)
On March 18, 2009, the Capital Markets Subcommittee held a
hearing entitled ``American International Group's Impact on the
Global Economy: Before, During, and After Federal
Intervention.'' Witnesses included Scott Polakoff, Acting
Director, Office of Thrift Supervision; The Honorable Joel
Ario, Insurance Commissioner, the Pennsylvania Insurance
Department, on behalf of the National Association of Insurance
Commissioners; Orice M. Williams, Director of Financial Markets
and Community Investment, Government Accountability Office;
Rodney Clark, Managing Director of Insurance Ratings, Standard
& Poor's; and Edward M. Liddy, Chairman and CEO of AIG. The
hearing focused broadly on the lead up to and need for Federal
intervention at AIG, but centered substantially on compensation
paid to employees at AIG's failing Financial Products division.
As follow-up to this hearing, the Subcommittee provided
input and leadership to the March 24, 2009, full Committee
hearing entitled ``Oversight of the Federal Government's
Intervention at American International Group.'' This second
hearing, chaired predominantly by Subcommittee Chairman
Kanjorski, consisted of one panel of witnesses featuring
Treasury Secretary Timothy F. Geithner, Federal Reserve
Chairman Ben S. Bernanke, and Federal Reserve Bank of New York
President William Dudley.
These hearings together formed only a small part of an
extensive series of related correspondence and ongoing AIG
oversight undertaken by the Committee and Subcommittee staff
throughout the 111th Congress.
SECURITIZATIONS OF LIFE SETTLEMENTS
On September 24, 2009, the Capital Markets Subcommittee
held a hearing entitled ``Recent Innovations in
Securitization.'' The hearing focused on the life settlement
industry and its connection to the securities markets. The
hearing examined whether lessons learned from the problems in
real estate securitization were being applied to the
securitization of life settlements.
Witnesses included Paula Dubberly, Associate Director,
Division of Corporation Finance, U.S. Securities and Exchange
Commission; The Honorable Susan E. Voss, Commissioner, the Iowa
Department of Insurance, on behalf of the National Association
of Insurance Commissioners; J. Russel Dorsett, Co-Managing
Director, Veris Settlement Partners, on behalf of the Life
Insurance Settlement Association; Brian Pardo, CEO, Life
Partners Holdings, Inc.; Jack Kelly, Director of Government
Relations, Institutional Life Markets Association; Kurt
Gearhart, Global Head of Regulatory and Execution Risk, Life
Finance Group, Credit Suisse; Steven H. Strongin, Managing
Director and Head of Global Investment Research, Goldman, Sachs
& Co.; and Daniel Curry, President, DBRS, Inc.
After the hearing, Subcommittee and Committee staff
reviewed the report on life settlements prepared by the SEC
staff. Subcommittee and Committee staff also consulted with the
SEC about legislative language to implement the SEC report's
recommendations.
FEDERAL HOME LOAN BANK COMMUNITY AND ECONOMIC DEVELOPMENT
At the request of Capital Markets Subcommittee Chairman
Kanjorski, GAO completed a study released on August 11, 2010,
entitled ``Federal Housing Finance Agency: Oversight of the
Federal Home Loan Banks' Agricultural and Small Business
Collateral Policies Could Be Improved.'' The report found that
the Federal Home Loan Bank System had fallen short in its
efforts to prioritize economic development in communities
throughout the country, as part of its mandate requires it to
do. In response to the report, Chairman Kanjorski wrote to FHFA
Acting Director DeMarco and each of the twelve Federal Home
Loan Bank presidents to request that they outline the steps
they intend to take to improve economic and community
development activities. Subcommittee staff reviewed the
responses.
ECONOMIC STABILITY
In a letter on June 23, 2009, Capital Markets Subcommittee
Chairman Kanjorski urged the Federal Deposit Insurance
Corporation (FDIC) to encourage banks to expand access to
credit, so that big and small businesses alike could weather
the economic crisis, and so that businesses could create much
needed jobs. FDIC Chairman Sheila Bair responded on July 7,
2009, that the FDIC and other banking regulators were
encouraging banks to continue making loans to creditworthy
customers and working with borrowers having difficulty
remaining current on their payments.
On July 31, 2009, Chairman Kanjorski and other Members of
the Financial Services Committee sought to further expand the
availability of credit to businesses by sending a letter to the
U.S. Department of Treasury Secretary and the Board of
Governors of the Federal Reserve System to request the
extension of the Term Asset-Backed Securities Loan Facility
(TALF) through the end of 2010. The Federal Reserve later
extended the TALF from December 31, 2009 to June 30, 2010 in
order to help restart the commercial mortgage-backed securities
market and to enhance liquidity in the commercial real estate
sector.
GLOBAL COMPETITIVENESS OF U.S. FINANCIAL MARKETS
The Capital Markets Subcommittee worked to examine and
maintain the competitiveness of the U.S. capital markets in a
number of ways during the 111th Congress. For example,
Subcommittee Chairman Kanjorski and staff regularly met with
representatives from other nations and the European Parliament
to ascertain developments related to foreign financial markets,
laws and rules.
Additionally, Subcommittee Chairman Kanjorski led a
delegation of the Committee in meetings with European
legislative, regulatory, and financial industry leaders in late
August and early September 2009. The delegation also included
Capital Markets Ranking Member Garrett, Financial Institutions
Subcommittee Chairman Luis V. Gutierrez, and Committee staff.
As part of its agenda, the delegation participated in a hearing
of the European Parliament's Committee on Economic and Monetary
Affairs in Brussels on September 2, 2009. The hearing examined
developments related to financial services regulation across
international borders.
During the debates on the legislation that became the Dodd-
Frank Act, Subcommittee staff also regularly explored
international competitiveness and coordination issues. For
example, Chairman Kanjorski received a letter dated October 22,
2009, from Charlie McGreevy, the then-European Commissioner for
Internal Market and Services, related to H.R. 3817, the
Investor Protection Act. In response to concerns raised in this
letter, the Committee adjusted the bill's provisions related to
international regulatory cooperation on auditing oversight and
the extraterritorial jurisdiction of the antifraud provisions
of Federal securities laws.
FINANCIAL GUARANTEE INSURANCE
The financial guarantee insurance industry with products
like municipal bond insurance, credit default swaps, and
mortgage insurance played a central role in the credit and
liquidity crisis of 2008 and 2009. Following on the Capital
Markets Subcommittee's focus on the bond insurance segment of
the financial guarantee insurance industry in the 110th
Congress, during the 111th Congress the Subcommittee undertook
closer oversight and review of the mortgage insurance segment
of the financial guarantee business.
On July 29, 2010, the Subcommittee held a hearing to
examine the ``Future of Housing Finance Reform: The Role of
Private Mortgage Insurance.'' The proceeding focused on the
business model, structure, regulation, history and performance
of the private mortgage insurance (PMI) industry. The hearing
also reviewed the PMI industry's experiences during the recent
financial crisis and explored the need to alter the laws
currently governing the industry.
Witnesses included Patrick Sinks, President and Chief
Operating Officer, Mortgage Guaranty Insurance Corporation, on
behalf of the Mortgage Insurance Companies of America; Marti
Rodamaker, President, First Citizens National Bank of Iowa, on
behalf of the Independent Community Bankers Association;
Janneke Ratcliffe, Associate Director, Center for Community
Capital, University of North Carolina, and Senior Fellow,
Center for American Progress; Anthony B. Sanders, Distinguished
Professor of Finance, George Mason University, and Senior
Scholar for the Mercatus Center at George Mason University;
John Taylor, President and CEO, National Community Reinvestment
Coalition; and Deborah Goldberg, Hurricane Relief Program
Director, National Fair Housing Alliance.
The Subcommittee monitored the ongoing efforts of the
financial guarantee industry to recapitalize itself, and
Subcommittee staff regularly met with regulators, insurers and
industry experts to examine these matters. On July 7, 2009,
Subcommittee Chairman Kanjorski also sent a letter to the U.S.
Department of the Treasury recommending that the Federal
government help to recapitalize mortgage insurers by providing
funding access to the Troubled Asset Relief Program. Chairman
Kanjorski additionally recommended that the Treasury Department
consider how the mortgage insurance industry could be directly
regulated at the Federal level.
On March 25, 2010, Chairman Kanjorski publicly commented
that the ongoing troubles in the bond insurance industry
demonstrated the need for better information at the Federal
level about developments in the insurance industry. The
Committee favorably reported out of the Committee H.R. 2609,
legislation introduced by Chairman Kanjorski to create a
Federal Insurance Office (FIO) within the Treasury Department.
As enacted into law in Title V, Subtitle A of the Dodd-Frank
Act, the FIO is authorized to gather information about the
insurance industry and to monitor the insurance industry for
systemic risk purposes, among other duties and
responsibilities.
Subcommittee Hearings Held
------------------------------------------------------------------------
Serial No. Title Date(s)
------------------------------------------------------------------------
1111-2................ Assessing the Madoff Ponzi February 4, 2009
Scheme and Regulatory
Failures (Capital
Markets).
111-10................ Perspectives on Systemic March 5, 2009
Risk (Capital Markets).
111-12................ Mark-to-Market Accounting: March 12, 2009
Practices and
Implications (Capital
Markets).
111-15................ American International March 18, 2009
Group's Impact on the
Global Economy: Before,
During, and After Federal
Intervention (Capital
Markets).
111-29................ Perspectives on Hedge Fund May 7, 2009
Registration (Capital
Markets).
111-32................ How Should the Federal May 14, 2009
Government Oversee
Insurance? (Capital
Markets).
111-33................ Approaches to Improving May 19, 2009
Credit Rating Agency
Regulation (Capital
Markets).
111-38................ The Present Condition and June 3, 2009
Future Status of Fannie
Mae and Freddie Mac
(Capital Markets).
111-41................ The Effective Regulation June 9, 2009
of the Over-the-Counter
Derivatives Markets
(Capital Markets).
111-44................ Systemic Risk and June 16, 2009
Insurance (Capital
Markets).
111-57................ SEC Oversight: Current July 14, 2009
State and Agenda (Capital
Markets).
111-79................ Recent Innovations in September 24, 2009
Securitization (Capital
Markets).
111-82................ Reforming Credit Rating September 30, 2009
Agencies (Capital
Markets).
111-94................ Additional Reforms to the December 9, 2009
Securities Investor
Protection Act (Capital
Markets).
111-108............... Approaches to Mitigating March 10, 2010
and Managing Natural
Catastrophe Risk: H.R.
2555, The Homeowners'
Defense Act (Capital
Markets and Housing).
111-109............... Corporate Governance after March 11, 2010
Citizens United (Capital
Markets).
111-114............... Insurance Holding Company March 18, 2010
Supervision (Capital
Markets).
111-125............... Corporate Governance and April 21, 2010
Shareholder Empowerment
(Capital Markets).
111-130............... Credit Default Swaps on April 29, 2010
Government Debt:
Potential Implications of
the Greek Debt Crisis
(Capital Markets).
111-133............... The Stock Market Plunge: May 11, 2010
What Happened and What Is
Next? (Capital Markets).
111-139............... Accounting and Auditing May 21, 2010
Standards: Pending
Proposals and Emerging
Issues (Capital Markets).
111-142............... FHFA Oversight: Current May 26, 2010
State of the Housing
Government Sponsored
Enterprises (Capital
Markets).
111-144............... Oversight of the U.S. July 20, 2010
Securities and Exchange
Commission: Evaluating
Present Reforms and
Future Challenges
(Capital Markets).
111-149............... Future of Housing Finance: July 29, 2010
The Role of Private
Mortgage Insurance
(Capital Markets).
111-153............... The Future of Housing September 15, 2010
Finance: A Progress
Update on the GSEs
(Capital Markets).
111-158............... Assessing the Limitations September 23, 2010
of the Securities
Investor Protection Act
(Capital Markets).
------------------------------------------------------------------------
Subcommittee on Domestic Monetary Policy and Technology
(Ratio: 10-7)
MELVIN L. WATT, North Carolina,
Chairman
RON PAUL, Texas CAROLYN B. MALONEY, New York
MICHAEL N. CASTLE, Delaware GREGORY W. MEEKS, New York
FRANK D. LUCAS, Oklahoma WILLIAM LACY CLAY, Missouri
JIM GERLACH, Pennsylvania BRAD SHERMAN, California
TOM PRICE, Georgia AL GREEN, Texas
BILL POSEY, Florida EMANUEL CLEAVER, Missouri
LEONARD LANCE, New Jersey KEITH ELLISON, Minnesota
SPENCER BACHUS, Alabama, ex officio JOHN ADLER, New Jersey
SUZANNE KOSMAS, Florida
BARNEY FRANK, Massachusetts, ex
officio
Subcommittee Legislative Activities
NEW MARKETS TAX CREDITS (NMTC)
The Subcommittee on Domestic Monetary Policy and Technology
held a hearing on June 18, 2009, entitled ``An Exploration of
Barriers to Full Minority Participation in the New Markets Tax
Credit Program'', receiving testimony from the U.S. Department
of Treasury Community Development Financial Institutions (CDFI)
Fund and the U.S. Government Accountability Office (GAO), along
with Community Development Entities (CDEs), the New Markets Tax
Credit Coalition, the Ohio CDFI Fund and an investment research
firm. The hearing examined challenges and barriers faced by
minority-owned firms in obtaining allocations to the NMTC
program, following up on a GAO report entitled ``NEW MARKETS
TAX CREDIT: Minority Entities Are Less Successful in Obtaining
Awards than Non-Minority Entities'' (GAO-09-536). The GAO
report found: (1) that most minority CDEs did not meet the
minimum threshold for advancing past the first phase of the
NMTC review process; (2) of all the factors that influence
whether a CDE receives a NMTC allocation, the asset size of the
firm is the predominant factor, with smaller CDEs generally
receiving lower application scores and fewer allocations; and
(4) minority status was a significant factor in the probability
of receiving a NMTC award.
While the GAO report does not contain any formal
recommendations, it does discuss potential options for Congress
to consider if it intends for minority CDEs participation in
the NMTC to exceed current levels, including: (1) requiring
that a certain portion of the overall amount of allocation
authority be directed to minority CDEs; (2) exploring the
potential for creating a pool of NMTC allocation authority
dedicated specifically for community banks, including minority-
owned banks; and (3) offering priority points to minority CDEs
that apply for NMTC allocations.
REGULATORY RESTRUCTURING
The Subcommittee held two hearings on regulatory
restructuring. On July 9, 2009, the Subcommittee held a
hearing, entitled ``Regulatory Restructuring: Balancing the
Independence of the Federal Reserve in Monetary Policy with
Systemic Risk Regulation.'' The Vice Chairman of the Board of
Governors of the Federal Reserve testified, along with
executives, economists and academics who study monetary policy,
about how to balance the Federal Reserve's proposed new
authority in systemic risk regulation with its traditional and
important role as the independent authority on monetary policy.
The hearing examined the statutory basis for the independence
of the Federal Reserve and the rationale for independent
central banks in the United States and around the world.
The second Subcommittee regulatory restructuring hearing,
held on July 16, 2009, was entitled ``Regulatory Restructuring:
Safeguarding Consumer Protection and the Role of the Federal
Reserve.'' A Federal Reserve System Governor, representatives
of consumer protection organizations and academics, testified
at the hearing. This hearing, unlike full committee hearings
that were held on enhancing consumer financial products
regulation generally, specifically examined some of the public
policy and operational considerations related to the Consumer
Financial Protection Agency as proposed by the Obama
administration. The primary topic of the hearing was whether,
in light of its responsibilities for writing rules, supervising
institutions, and enforcing the nation's consumer protection
laws, the Federal Reserve should maintain some role in consumer
protection. The hearing explored how the Federal Reserve could
balance such a role in consumer protection with proposed new
responsibilities for systemic risk regulation while also
maintaining its unique role as the nation's independent
authority on monetary policy.
GLOBAL ECONOMIC CRISIS
On May 20, 2010, the Subcommittee held a joint hearing with
the International Monetary Policy and Trade Subcommittee,
entitled ``The Role of the International Monetary Fund and
Federal Reserve in Stabilizing Europe.'' A Federal Reserve
Governor and several academics testified at the hearing about
the global economic crisis and the efforts of governments,
central banks and international financial institutions to
alleviate it. Hearing issues included: (1) the Federal
Reserve's re-opening of temporary U.S. dollar liquidity swap
facilities with foreign central banks and (2) the International
Monetary Fund's (IMF) financial $40 billion commitment as part
of a larger multilateral financing package.
COINS AND CURRENCY
On July 20, 2010, the Subcommittee held a hearing entitled
``The State of U.S. Coins and Currency,'' at which the U.S.
Mint, U.S. Bureau of Engraving & Printing, Federal Reserve's
Reserve Bank Operations and Payment Systems Division and the
U.S. Secret Service testified. These agencies are jointly
responsible for the circulation of all U.S. coins and currency
as well as anti-counterfeiting measures to protect the U.S.
money supply.
The hearing provided general oversight of the current state
of U.S. coins and currency and examined (1) the effectiveness
of anti-counterfeiting measures, (2) rising production costs of
coin and currency, (3) potential oversupply of one dollar
coins, (4) supply of metals for numismatic coin products and
(5) access to currency by the vision-impaired.
Subcommittee Hearings Held
------------------------------------------------------------------------
Serial No. Title Date(s)
------------------------------------------------------------------------
111-47................ An Exploration of Barriers June 18, 2009
to Full Minority
Participation in the New
Markets Tax Credit
Program (Domestic).
111-53................ Regulatory Restructuring: July 9, 2009
Balancing the
Independence of the
Federal Reserve in
Monetary Policy with
Systemic Risk Regulation
(Domestic).
111-60................ Regulatory Restructuring: July 16, 2009
Safeguarding Consumer
Protection and the Role
of the Federal Reserve
(Domestic).
111-138............... The Role of the May 20, 2010
International Monetary
Fund and Federal Reserve
in Stabilizing Europe
(Domestic and
International).
111-145............... The State of U.S. Coins July 20, 2010
and Currency (Domestic).
------------------------------------------------------------------------
Subcommittee on Financial Institutions and Consumer Credit
(Ratio: 27-18)
LUIS V. GUTIERREZ, IL, Chair
JEB HENSARLING, Texas CAROLYN MALONEY, New York
J. GRESHAM BARRETT, South Carolina MELVIN L. WATT, North Carolina
MICHAEL N. CASTLE, Delaware GARY L. ACKERMAN, New York
PETER KING, New York BRAD SHERMAN, California
EDWARD R. ROYCE, California DENNIS MOORE, Kansas
WALTER B. JONES, North Carolina PAUL E. KANJORSKI, Pennsylvania
SHELLEY MOORE CAPITO, West Virginia MAXINE WATERS, California
SCOTT GARRETT, New Jersey RUBEN HINOJOSA, Texas
JIM GERLACH, Pennsylvania CAROLYN McCARTHY, New York
RANDY NEUGEBAUER, Texas JOE BACA, California
TOM PRICE, Georgia AL GREEN, Texas
PATRICK T. McHENRY, North Carolina WM. LACY CLAY, Missouri
JOHN CAMPBELL, California BRAD MILLER, North Carolina
KEVIN McCARTHY, California DAVID SCOTT, Georgia
KENNY MARCHANT, Texas EMANUEL CLEAVER, Missouri
CHRISTOPHER LEE, New York MELISSA BEAN, Illinois
ERIK PAULSEN, Minnesota PAUL W. HODES, New Hampshire
LEONARD LANCE, New Jersey KEITH ELLISON, Minnesota
SPENCER BACHUS. Alabama, ex officio RON KLEIN, Florida
CHARLES A. WILSON, Ohio
GREGORY W. MEEKS, New York
BILL FOSTER, Illinois
ED PERLMUTTER, Colorado
JACKIE SPEIER, California
TRAVIS CHILDERS, Mississippi
WALT MINNICK, Idaho
BARNEY FRANK, Massachusetts, ex
officio
Subcommittee Legislative Activities
CREDIT CARD ACT OF 2009
(H.R. 627)
Summary
H.R. 627, the ``Credit Card Act of 2009,'' provides
consumers protections against anti-competitive, unfair and
deceptive acts and practices in the credit card industry. The
bill: (1) increases notice and disclosures to consumers of
increases in interest rates and other changes to significant
contract terms; (2) ends arbitrary rate increases; (3)
prohibits double-cycle billing and universal default rate
increases; (4) requires the fair allocation of payments for
accounts with multiple balances; (5) requires that penalty fees
be reasonable and proportionate to the omission or error; and
(6) eliminates diminishing value and hidden fees for gift
cards.
Legislative History
H.R. 627, the ``Credit Card Act of 2009'' was introduced by
Rep. Carolyn Maloney and 42 co-sponsors on January 22, 2009 and
was referred to the Committee on Financial Services.
On March 19, 2009, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing
entitled, ``H.R. 627, The Credit Cardholders' Bill of Rights
Act of 2009; and H.R. 1456, the Consumer Overdraft Protection
Fair Practices Act of 2009.'' The hearing focused on provisions
in H.R. 627 that addressed credit card pricing practices, fees
and billing practices, the effectiveness of credit card
disclosures and joint unfair and deceptive acts and practices
rulemaking by federal banking regulators. The hearing also
focused on upcoming Regulation E amendments on overdraft
protections that were proposed by the Federal Reserve and were
relevant to H.R. 1456. The Subcommittee heard testimony from
Sandra F. Braunstein, Director, Division of Consumer and
Community Affairs, Board of Governors of the Federal Reserve
System, Montrice Yakimov, Managing Director, Compliance and
Consumer Protection, Office of Thrift Supervision, Sheila
Albin, Associate General Counsel, National Credit Union
Administration, Kenneth J. Clayton, Senior Vice President/
General Counsel, American Bankers Association Card Policy
Council, Linda Echard, President and CEO ICBA Bancard, on
behalf of the Independent Community Bankers of America, Douglas
Fecher, President and CEO, Wright-Patt Credit Union, Inc., on
behalf of the Credit Union National Association, Oliver I.
Ireland, Partner, Morrison ` Foerster, LLP, Washington, DC,
Todd McCracken, President, National Small Business Association,
Ed Mierzwinski, Senior Fellow, Consumer Program, U.S. PIRG, and
Travis Plunkett, Legislative Director, Consumer Federation of
America.
On April 2, 2009, the Subcommittee met in open session and
ordered the bill to be forwarded to the full Committee, as
amended, with a favorable recommendation on a voice vote.
On April 22, 2009, the full Committee met in open session
and ordered the bill to be reported, as amended, with a
favorable recommendation on a recorded vote of 48 yeas and 19
nays. The Committee reported the bill to the House, H. Rept.
111-88, on April 27, 2009.
On April 30, 2009, the House adopted H. Res. 379 providing
for the consideration of H.R. 627 under a structured rule. Also
on that day, the House passed the bill by a recorded vote of
357 yeas and 70 nays. The bill was received in the Senate the
same day and was read twice and placed on the Senate
Legislative Calendar.
On May 19, 2009, H.R. 627 passed the Senate, as amended, by
a vote of 90 yeas and 5 nays.
On May 20, 2009, the House agreed to the Senate amendment
on H.R. 627 by a vote of 279 yeas and 147 nays.
On May 22, 2009, H.R. 627 was signed into law by the
President and became Public Law 111-24.
CONSUMER OVERDRAFT PROTECTION FAIR PRACTICES ACT
(H.R. 1456)
Summary
H.R. 1456, the Consumer Overdraft Protection Fair Practices
Act amends the Electronic Funds Transfer Act to protect
consumers from unfair and deceptive acts and practices
involving overdraft protections. The bill: (1) requires
affirmative consumer request for overdraft protections; (2)
prohibits manipulation of payments to increase overdraft fees;
(3) restricts overdraft fees and services initiated via an ATM;
(4) prohibits false or misleading claims about the nature of
overdraft fees; (5) prohibits misrepresentation regarding the
coverage of overdraft fees; and (6) authorizes the Federal
Reserve to enact rulemaking to restrict additional acts and
practices.
Legislative History
H.R. 1456, the ``Consumer Overdraft Protection Fair
Practices Act'' was introduced by Rep. Carolyn Maloney and 6
co-sponsors on March 12, 2009 and was referred to the Committee
on Financial Services.
On March 19, 2009, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing
entitled, ``H.R. 627, The Credit Cardholders' Bill of Rights
Act of 2009; and H.R. 1456, the Consumer Overdraft Protection
Fair Practices Act of 2009.'' The hearing focused on provisions
in H.R. 627 that addressed credit card pricing practices, fees
and billing practices, the effectiveness of credit card
disclosures and joint unfair and deceptive acts and practices
rulemaking by federal banking regulators. The hearing also
focused on upcoming Regulation E amendments on overdraft
protections that were proposed by the Federal Reserve and were
relevant to H.R. 1456. The Subcommittee heard testimony from
Sandra F. Braunstein, Director, Division of Consumer and
Community Affairs, Board of Governors of the Federal Reserve
System, Montrice Yakimov, Managing Director, Compliance and
Consumer Protection, Office of Thrift Supervision, Sheila
Albin, Associate General Counsel, National Credit Union
Administration, Kenneth J. Clayton, Senior Vice President/
General Counsel, American Bankers Association Card Policy
Council, Linda Echard, President and CEO ICBA Bancard, on
behalf of the Independent Community Bankers of America, Douglas
Fecher, President and CEO, Wright-Patt Credit Union, Inc., on
behalf of the Credit Union National Association, Oliver I.
Ireland, Partner, Morrison & Foerster, LLP, Washington, DC,
Todd McCracken, President, National Small Business Association,
Ed Mierzwinski, Senior Fellow, Consumer Program, U.S. PIRG, and
Travis Plunkett, Legislative Director, Consumer Federation of
America.
No further legislative activity occurred on H.R. 1456 in
the 111th Congress.
PAYDAY LOAN REFORM ACT OF 2009
(H.R. 1214)
Summary
H.R. 1214, the Payday Loan Reform Act of 2009, would
establish federal protections for consumers from unfair fees
and practices in the payday loan industry. The bill would: (1)
mandate disclosures of the nature of the loan; (2) create a
mandatory repayment plan option for all loans; (3) limit the
amount of fees and interest to 15 cents on the dollar; and (4)
prohibit certain acts and practices that lenders have commonly
used to take advantage of borrowers.
Legislative History
H.R. 1214, the ``Payday Loan Reform Act of 2009'' was
introduced by Rep. Luis Gutierrez and 4 co-sponsors on March
12, 2009 and was referred to the House Committee on Financial
Services.
On April 2, 2009, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing
entitled, ``H.R. 1214, the Payday Loan Reform Act of 2009.''
The hearing was held to give a better understanding of the
industry, its economics, how it function s as well as the
effects, both negative and positive, on consumers. The
Subcommittee heard testimony from Jean Ann Fox, Director of
Financial Services, Consumer Federation of America, Troy
McCullen, President and Chief Executive Officer, Finance
America of Louisiana, G. Michael Flores, Chief Executive
Officer, Bretton Woods, Inc., Gerri Guzman, Montebello,
California.
No further activity on H.R. 1214 occurred in the 111th
Congress.
THE CREDIT UNION SHARE INSURANCE STABILIZATION ACT
(H.R. 2351)
Summary
H.R. 2351, the Credit Union Share Insurance Stabilization
Act, would authorize the necessary steps to stabilize the Share
Insurance Fund of the credit union industry. The bill would:
(1) create a Temporary Corporate Credit Union Stabilization
Fund; (2) permanently increase the authority of the National
Credit Union Administration (NCUA) to borrow from the Treasury
Department; (3) provide short-term authority for the NCUA to
borrow up to $30 billion; (4) authorize the NCUA to establish a
restoration plan if these funds were to fall below desired
levels; and (5) require the NCUA Board to make annual reports
on the operations and financial status of the Fund.
Legislative History
H.R. 2351, the Credit Union Share Insurance Stabilization
Act, was introduced by Rep. Paul Kanjorski and 4 co-sponsors on
May 12, 2009 and was referred to the House Committee on
Financial Services.
On May 20, 2009, the Subcommittee on Financial Institutions
and Consumer Credit held a legislative hearing entitled, ``H.R.
2351, the Credit Union Share Insurance Stabilization Act.'' The
hearing was held to examine the current state of the federal
credit union system and the potential need for Congress to
authorize the creation of a temporary corporate credit union
stabilization fund as proposed by this legislation. The
subcommittee heard testimony from Michael E. Fryzel, Chairman,
National Credit Union Administration, George Reynolds,
Chairman, National Association of State Credit Union
Supervisors; Senior Deputy Commissioner, Georgia Department of
Banking and Finance, Jim Bedinger, Chief Operations Officer,
Chicago Patrolmen's Federal Credit Union on behalf of the
National Association of Federal Credit Unions, William Lavage,
President and Chief Executive Officer, Service 1st Federal
Credit Union on behalf of the Credit Union National
Association.
No further activity on H.R. 2351 occurred in the 111th
Congress.
THE EQUAL EMPLOYMENT FOR ALL ACT
(H.R. 3149)
Summary
H.R. 3149, the Equal Employment for All Act, would prohibit
the use of credit reports for employment purposes with the
exception of jobs that require national security or FDIC
clearance, employment that is at the supervisory, managerial,
professional or executive level, or is otherwise required by
law.
Legislative History
H.R. 3149, the ``Equal Employment for All Act,'' was
introduced by Rep. Steve Cohen with 26 co-sponsors on July 9,
2009 and was referred to the House Committee on Financial
Services.
On September 23, 2010, the Subcommittee on Financial
Institutions and Consumer Credit held a legislative hearing
entitled, ``Legislative Hearing on H.R. 3149, the Equal
Employment for All Act.'' The hearing was held to examine the
current extent to which credit reports play a role in the
hiring practices of companies and the implication of these
practices for job applicants as well as the potential effects
of this legislation on hiring practices. The Subcommittee heard
testimony from Steve Cohen, Member of Congress, Sarah Crawford,
Senior Counsel, Lawyers' Committee on Civil Rights Under Law,
Chi Chi Wu, Staff Attorney, National Consumer Law Center
(NCLC), Donald R. Livingston, Partner, Akin Gump Strauss Hauer
` Feld LLP, on behalf of the U.S. Chamber of Commerce, Adam
Klein, Partner, Outten ` Golden LLP, Judy Gootkind, Vice
President of Finance and Administration, Creative Services; and
Member, National Association of Professional Background
Screeners (NAPBS) Board of Directors, Colleen Parker Denston,
Director of Human Resources, Worcester Preparatory School, on
behalf of Society for Human Resource Management (SHRM), Hilary
Shelton, Senior Vice-President for Advocacy, NAACP.
No further activity on H.R. 3149 occurred in the 111th
Congress.
SUBCOMMITTEE OVERSIGHT ACTIVITIES
TARP OVERSIGHT
On March 4, 2009, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled,
``TARP Oversight: Is TARP Working for Main Street?'' The
hearing focused on the role of TARP and whether or not it had
been successful in freeing up credit for American businesses,
especially the small and medium-sized firms that are vital to
the U.S. economy. The Subcommittee examined whether large TARP
recipient banks have actually decreased their lending to
businesses after receiving TARP funds, and proposals for making
more TARP funds available to regional banks, community banks
and other institutions that are willing and able to immediately
lend those funds to small firms. The Subcommittee heard
testimony from Dr. David Scharfstein, Professor of Finance and
Banking, Harvard Business School, Dr. Dean Baker, Co-Director,
Center for Economic and Policy Research, Robert W. Davenport
President, National Development Council, C.R. Cloutier,
President and CEO, MidSouth Bank NA on behalf of the
Independent Community Bankers of America, Bert Ely, Ely `
Company, Joseph Zucchero, Owner, Mr. Beef Deli.
MORTGAGE LENDING
On March 11, 2009, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled,
``Mortgage Lending Reform: A Comprehensive Review of the
American Mortgage System.'' The hearing examined the current
state of the U.S. mortgage system with a specific focus on
upcoming comprehensive mortgage reform legislation that the
Financial Services Committee took up later in the year. The
witnesses were asked to focus their testimony on recommended
changes to H.R. 3915, ``The Mortgage Reform and Anti-Predatory
Lending Act of 2007'' which passed the House in the 110th
Congress. The Subcommittee heard testimony from Sandra
Braunstein, Director, Division of Consumer and Community
Affairs, Board of Governors of the Federal Reserve System,
Steven Antonakes, Commissioner, Massachusetts Division of Banks
on behalf of the Conference of State Bank Supervisors, David
Berenbaum, Executive Vice President, National Community
Reinvestment Coalition, Julia Gordon, Senior Policy Council,
Center for Responsible Lending, Margot Saunders, Counsel,
National Consumer Law Center, Stephanie Jones, Executive
Director, National Urban League Policy Institute, Graciela
Aponte, Analyst, National Council of La Raza, Michael
Middleton, President and CEO, Community Bank of Tri-County, on
behalf of the American Bankers Association, David G. Kittle,
Chairman, Mortgage Bankers Association, Marc Savitt, President,
National Association of Mortgage Brokers, Charles McMillan,
President, National Association of Realtors, Jim Amorin,
President, Appraisal Institute, Joe Robson, Chairman of the
Board, National Association of Home Builders, Lawrence E.
Platt, Partner, K&L Gates, on behalf of the Securities Industry
and Financial Markets Association, Donald Lampe, Partner,
Womble Carlyle Sandridge & Rice, PLLC.
INTERNATIONAL MONEY TRANSFERS
On June 3, 2009, the Subcommittee on Financial Institutions
and Consumer Credit held a hearing entitled, ``Remittances:
Regulation and Disclosure in a New Economic Environment.'' The
hearing examined consumer access to remittance transfer
outlets, the costs associated with sending remittances, current
levels of transparency regarding fees and exchange rates, and
the effect of competition in the marketplace. The hearing
focused on the progress made by the industry in reducing
consumer fees over the last several years and explored whether
additional consumer disclosures should be mandated by federal
law. The hearing also examined whether or not a federal
regulator is needed to oversee the remittance industry. The
Subcommittee heard testimony from Dr. Manuel Orozco, Senior
Associate and Director of Remittances and Development, Inter-
American Dialogue, Annette LoVoi, Field Director, Appleseed,
Mark Thompson, Associate General Counsel, The Western Union
Company, Scott McClain, Deputy General Counsel, Financial
Services Centers of America.
On March 10, 2010, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled,
``Regulation of Money Service Businesses.'' The hearing
examined the role of remittances and money service businesses
in the world economy, national security concerns around the
remittances industry and the proper role of federal regulators
in the remittances industry. The Subcommittee heard testimony
from Joe Cachey, Chief Compliance Officer and Associate General
Counsel, Western Union, Mr. Scott K. McClain, Partner, Winne
Banta Hetherington Basralian & Kahn, P.C., on behalf of
Financial Service Centers of America, Ms. Deborah Thoren-Peden,
Partner, Pillsbury Winthrop Shaw Pittman LLP.
FINANCIAL LITERACY
On June 25, 2009, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled,
``Improving Consumer Financial Literacy under the New
Regulatory System.'' The hearing examined the continuing need
for financial literacy with a particular focus on the role of
consumer literacy under the President's newly proposed
regulatory framework. Among the issues that were addressed are:
how the consumer friendly ``plain language'' products proposed
under the President's regulatory restructuring plan would be
created and regulated; the efficacy of previous federal
financial literacy efforts; and which agency should have
primacy over financial literacy efforts going forward under the
new plan. The Subcommittee heard testimony from Laura Levine,
Executive Director, Jump$tart Coalition for Personal Financial
Literacy, Lot Diaz, Vice President, Community Development,
National Council of La Raza, Dallas Salisbury, President and
CEO, Employee Benefit Research Institute, Stephanie J. Jones,
Executive Director, National Urban League Policy Institute, Dr.
Gerald Lauber, Chief Senior Advisor, National Urban Alliance,
John Gannon, Senior Vice President, Office of Investor
Education and President of the FINRA Investor Education
Foundation, The Financial Industry Regulatory Authority, Brent
Neiser, Director of Strategic Programs and Alliances, National
Endowment for Financial Education.
FINANCIAL SUPERVISION
On January 21, 2010, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled, ``The
Condition of Financial Institutions: The Failure and Seizure of
an American Bank.'' The hearing examined the condition of the
lending industry by focusing on a case study of a recent bank
failure. The process behind the Federal Deposit Insurance
Corporation's failed bank resolution procedure was examined
along with the federal government's ongoing efforts to restore
stability to our nation's financial system. The Subcommittee
heard testimony from Steven McCullough, Chief Executive
Officer, Bethel New Life, Michael E. Kelly, Chairman and Chief
Executive Officer, FBOP Corporation, Richard Hartnack, Vice
Chairman, U.S. Bank, Jeff Austin III, Vice Chairman, Austin
Bank, Mr. David Miller, Director of Investments, U.S.
Department of the Treasury, Ms. Jennifer Kelly, Senior Deputy
Comptroller for Midsize/Community Bank Supervision, Office of
the Comptroller of the Currency, Mitchell Glassman, Director,
Division of Resolutions and Receiverships, Federal Deposit
Insurance Corporation.
CREDIT SCORES AND REPORTS
On March 24, 2010, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled,
``Keeping Score on Credit Scores: An Overview of Credit Scores,
Credit Reports and Their Impact on Consumers.'' The hearing
examined the role of consumer credit reports and scores on the
economy and an individual's financial life. The hearing focused
on a range of specific issues dealing with consumer credit
reports including: implementation of Federal Trade Commission
rules governing risk-based pricing notices; the accuracy and
integrity of information contained in the credit reports and
the dispute resolution process for known errors; and the effect
that the credit crisis has had on consumer credit scores in
aggregate. The Subcommittee heard testimony from Evan
Hendricks, Editor/Publisher, Privacy Times, Stuart K. Pratt,
President and CEO, Consumer Data Industry Association, Mr. Tom
Quinn, Vice President, Global Scoring Solutions, FICO, Barrett
Burns, President & CEO, VantageScore Solutions, LLC, Chet D.
Wiermanski, Global Chief Scientist, Analytic Decision Services,
TransUnion LLC, Stan Oliai, Senior Vice President, Decision
Sciences, Experian Decision Analytics, Experian, Myra K. Hart,
Ph.D., Senior Vice President, Analytical Services, Equifax
Inc., Ms. Anne P. Fortney, Partner, Hudson Cook, LLP, Sandra
Braunstein, Director, Division of Consumer and Community
Affairs, Federal Reserve Board of Governors, David Vladeck,
Director, Bureau of Consumer Protection, Federal Trade
Commission.
On May 10, 2010, the Subcommittee on Financial Institutions
and Consumer Credit held a hearing entitled, ``Use of Credit
Information Beyond Lending: Issues and Reform Proposals.'' The
hearing reviewed the methodology, use and impact of personal
consumer credit information in the financial services
marketplace. The first panel focused on how credit-based
insurance scores are used in the rating and underwriting of
insurance and efforts to improve the supervision and consumer
understanding of the use of credit-based insurance scores. The
second panel focused on other used of credit information,
including for employment purposes, and the impact of medical
debt on credit reports and scores. The Subcommittee heard
testimony from Michael T. McRaith, Director, Illinois
Department of Insurance, on behalf of the National Association
of Insurance Commissioners, David Snyder, Vice President and
Associate General Counsel, Public Policy, American Insurance
Association, John Wilson, Director, Analytics, LexisNexis Risk
Solutions, Chi Chi Wu, Staff Attorney, National Consumer Law
Center, Mark Rukavina, Executive Director, The Access Project,
Stuart K. Pratt, President and CEO, Consumer Data Industry
Association, Ms. Anne Fortney, Partner, Hudson Cook, LLP.
COMMUNITY REINVESTMENT ACT
On April 15, 2010, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled,
``Perspectives and Proposals on the Community Reinvestment
Act.'' The hearing examined the future of the Community
Reinvestment Act (CRA) given the changes within the financial
services marketplace over the past decade. The hearing also
examined proposals by members of the banking industry,
community advocacy organizations and academics on improvements
to CRA enforceability and effectiveness. The Subcommittee heard
testimony from John Taylor, President, National Community
Reinvestment Coalition, Cy Richardson, Vice President of
Housing and Community Development, National Urban League, Eric
Rodriguez, Vice President of the Office of Research, Advocacy,
and Legislation, National Council of La Raza, William Askew,
Senior Policy Advisor, Financial Services Roundtable, Calvin
Bradford, Board Member, National People's Action, Mark A.
Willis, Resident Research Fellow, Furman Center for Real Estate
and Urban Policy, New York University, Eugene A. Ludwig, Chief
Executive Officer, Promontory Financial Group, LLC, Vincent R.
Reinhart, Resident Scholar, American Enterprise Institute for
Public Policy Research.
Subcommittee Hearings Held
------------------------------------------------------------------------
Serial No. Title Date(s)
------------------------------------------------------------------------
111-9................. TARP Oversight: Is TARP March 4, 2009
Working for Main Street)
(Financial Institutions).
111-11................ Mortgage Lending Reform: A March 11, 2009
Comprehensive Review of
the American Mortgage
System (Financial
Institutions).
111-17................ H.R. 627, the Credit March 19, 2009
Cardholders' Bill of
Rights Act of 2009: and
H.R. 1456, the Consumer
Overdraft Protection Fair
Practices Act of 2009
(Financial Institutions).
111-24................ H.R. 1214, the Payday Loan April 2, 2009
Reform Act of 2009
(Financial Institutions).
111-35................ H.R. 2351, the Credit May 20, 2009
Union Share Insurance
Stabilization Act
(Financial Institutions).
111-39................ Remittance Regulation and June 3, 2009
Disclosure in a New
Economic Environment
(Financial Institutions).
111-50................ Improving Consumer June 25, 2009
Financial Literacy under
the New Regulatory System
(Financial Institutions).
111-97................ The Condition of Financial January 21, 2010
Institutions: Examining
the Failure and Seizure
of an American Bank
(Financial Institutions).
111-107............... Regulation of Money March 10, 2010
Service Businesses
(Financial Institutions).
111-117............... Keeping Score on Credit March 24, 2010
Scores: An Overview of
Credit Scores, Credit
Reports, and their Impact
on Consumers (Financial
Institutions).
111-123............... Perspectives and Proposals April 15, 2010
on the Community
Reinvestment Act
(Financial Institutions).
111-134............... Use of Credit Information May 12, 2010
Beyond Lending: Issues
and Reform Proposals
(Financial Institutions).
111-159............... Legislative Hearing on September 23, 2010
H.R. 3149, the Equal
Employment for All Act
(Financial Institutions).
------------------------------------------------------------------------
Subcommittee on Housing and Community Opportunity
(Ratio: 15-10)
MAXINE WATERS, California,
Chairwoman
SHELLEY MOORE CAPITO, West Virginia NYDIA M. VELAZQUEZ, New York
THADDEUS McCOTTER, Michigan STEPHEN F. LYNCH, Massachusetts
JUDY BIGGERT, Illinois EMANUEL CLEAVER, Minnesota
GARY G. MILLER, California AL GREEN, Texas
RANDY NEUGEBAUER, Texas WILLIAM LACY CLAY, Missouri
WALTER B. JONES, North Carolina KEITH ELLISON, Missouri
ADAM PUTNAM, Florida JOE DONNELLY, Indiana
KENNY MARCHANT, Texas MICHAEL E. CAPUANO, Massachusetts
LYNN JENKINS, Kansas PAUL KANJORSKI, Pennsylvania
CHRISTOPHER LEE, New York LUIS V. GUTIERREZ, Illinois
SPENCER BACHUS, Alabama, ex officio STEVE DRIEHAUS, Ohio
MARY JO KILROY, Ohio
JIM HIMES, Connecticut
DAN MAFFEI, New York
BARNEY FRANK, Massachusetts, ex
officio
Subcommittee Legislative Activities
VETERANS, WOMEN, FAMILIES WITH CHILDREN, PERSONS WITH DISABILITIES
HOUSING FAIRNESS ACT OF 2010
(H.R. 476)
Summary
H.R. 476, the ``Veterans, Women, Families with Children,
Persons with Disabilities Housing Fairness Act of 2010,'' would
authorize HUD to establish a nationwide housing discrimination
testing program with an authorization of $15 million annually
for five years; authorize $42.5 million annually for five years
for the HUD Fair Housing Initiatives Program; and establish a
$5 million competitive grant program to study the root causes
and effects of housing discrimination.
Legislative History
H.R. 476 was introduced by Representative Green on January
13, 2009 and was referred to the Committee on Financial
Services.
On January 15, 2010, the Subcommittee held a legislative
hearing on H.R. 476 and included witnesses from HUD, community
groups, and academics.
On May 27, 2010, the Subcommittee held a markup of H.R. 476
and forwarded the bill out of the subcommittee on a voice vote.
On July 28, 2010, the Committee held a markup of H.R. 476
and ordered the bill reported favorably by voice vote. The
Committee report was filed on December 9, 2010 (H. Rept. 111-
678). No further action on H.R. 476 occurred in the 111th
Congress.
SECTION 8 VOUCHER REFORM
On June 4, 2009, the Subcommittee held a hearing on H.R.
3045, the Section 8 Voucher Reform Act of 2009. This
legislation would reform and streamline the Section 8 voucher
program by reforming the funding formula, simplifying
inspections and deductions, and reforming the Moving-to-Work
panel. Witnesses included HUD, public housing agencies, tenant
advocates, and housing experts. On July 23, 2009 the Committee
marked up the legislation and reported it to the House with a
favorable recommendation on September 30, 2009 (H. Rept. 111-
277). No further action on H.R. 3045 occurred in the 111th
Congress.
FEDERAL HOUSING ADMINISTRATION
The Committee, along with the Subcommittees on Housing and
Community Opportunity and Oversight and Investigations, held a
combined six hearings on various issues related to the Federal
Housing Administration. The first two of those hearings
examined FHA's ability to oversee approved lenders and its
ability to prevent fraud. The first hearing, ``FHA Oversight of
Loan Originators'' was held on January 9, 2009 and the second
hearing, ``Strengthening Oversight and Preventing Fraud in FHA
and Other HUD Programs'' was held on June 18, 2009. At the
January hearing, the Committee heard testimony from HUD's
Deputy Assistant Secretary for Single Family Housing, and from
the HUD Assistant Inspector General for Audit, about processes
used to prevent fraud and possible challenges to FHA oversight
of loan originators. The Committee also heard testimony from
the National Association of Mortgage Brokers and the Mortgage
Bankers Association. At the June hearing, the Committee heard
testimony from the HUD Inspector General as well as industry
participants, as well as the National Community Reinvestment
Coalition, an advocacy organization.
The other four hearings on FHA examined the status of FHA's
Mutual Mortgage Insurance Fund (MMIF), which in FY2009 fell
below the 2 percent mandated under The Cranston-Gonzalez
National Affordable Housing Act (P.L. 101-625), as well as
regulatory, administrative and statutory proposals to improve
the financial health of the MMIF (the first Subcommittee
hearing on FHA's financial condition was held on October 8,
2010; a Committee hearing also examined this topic on December
2, 2009; a legislative hearing in the Subcommittee on the FHA
Reform Act of 2010 was held on March 11, 2010; a hearing on
FHA's implementation of higher loan fees and pending
legislative proposals was held on September 22, 2010). In these
hearings, the Subcommittee and Committee conducted oversight of
FHA's regulatory and administrative actions taken to improve
the financial condition of the MMIF, including: hiring a Chief
Risk Officer; creating stricter guidelines for the streamline
refinance program; announcing new appraisal controls;
increasing net worth requirements for mortgagees; increasing
the upfront mortgage insurance premium; changing downpayment
requirements for borrowers with low credit scores; and reducing
allowable seller concessions.
On April 22, 2010, the Committee reported out the FHA
Reform Act of 2010 (H.R. 5072) with a favorable recommendation,
which provided FHA with additional tools to improve the health
of the MMIF. The Act included a provision to allow the
Secretary to increase the annual mortgage insurance premium for
the single-family mortgage insurance program, which will
increase funds to the MMIF by an estimated $300 million per
month. The Act also extended the Secretary's authority to
require indemnification from Direct Endorsement lenders;
provided the Secretary with the authority to terminate
mortgagee approval on a nationwide basis if the mortgagee
originates or underwrites mortgages with excessive rates of
claim or default; and provided the Secretary with enhanced
ability to review mortgagee performance, including hiring
outside credit risk analysts, reviewing significant or rapid
increases in early defaults or claims, reporting mortgagee
actions taken against other mortgagees, enhancing annual and
quarterly reports on the MMIF, providing default and
origination information by loan servicer and originating direct
endorsement lender, and requiring a GAO report. H.R. 5072
passed the House of Representatives on June 10, 2010 by a
margin of 406-4. The provision in the Act that would allow the
Secretary to increase the annual mortgage insurance premium on
the single-family mortgage insurance program became law on
August 11, 2010 (H.R. 5981, P.L. 111-229).
FLOOD INSURANCE
Due to the lack of a long-term authorization, the National
Flood Insurance program lapsed 3 times during the 111th
Congress: for two days in March 2010, for 18 days in April
2010, and again from June 1 to July 2, 2010. Chairwoman Waters
introduced H.R. 5569 to continue the program for a three-month
period pending the enactment of a long-term authorization,
which was passed by the House on June 23, 2010 and by the
Senate on June 30, 2010. On July 2, President Obama signed this
legislation continuing the program from July 2 through
September 30 into law (P.L. 111-196). On September 30, 2010,
President Obama signed S. 3814, legislation to continue the
program through September 30, 2011 (P.L. 111-250).
On April 21, 2010 the Subcommittee held a hearing on
``Legislative Proposals to Reform the National Flood Insurance
Program.'' The hearing focused on two bills designed to reform
and expand the NFIP: H.R. 5114, the Flood Insurance Reform
Priorities Act of 2010 and H.R. 1264, the Multiple Peril
Insurance Act of 2009. H.R. 5114 would have reauthorized the
flood insurance program for 5 years and provided various
reforms to the program, including the phasing in of actuarial
rates for newly mapped homeowners and the elimination of
subsidized rates over time for certain categories of
properties. H.R. 1264 would have directed the NFIP to offer
actuarially priced optional wind insurance policies and would
have prohibited insurers from including anti-concurrent
causation provisions in their wind insurance policies. On April
22, 2010, both bills were reported out of the Committee with a
favorable recommendation. On July 15, 2010, the House of
Representatives passed H.R. 5114 by a vote of 329-90.
AFFORDABLE HOUSING PRESERVATION
The Subcommittee held two hearings on legislation to
preserve the nation's affordable housing stock. On July 15,
2009, the Subcommittee held a hearing on ``Legislative Options
for Preserving Federally and State Assisted Affordable Housing
and Preventing the Displacement of Low-Income, Elderly, and
Disabled Tenants.'' The hearing focused on a discussion draft
of the ``Housing Preservation and Tenant Protection Act of
2009,'' authored by Chairman Frank. The draft bill would
address the preservation of the nation's housing stock by
providing protections for tenants, incentives for owners, and
better funding streams for certain assisted housing
developments. Witnesses included the Rural Housing Service,
tenant advocates, owners, and affordable housing experts. On
March 24, 2010, the Subcommittee held its second hearing on
this legislation. The hearing was on the draft, which was
introduced on March 17, 2010 as H.R. 4868, the ``Housing
Preservation and Tenant Protection Act of 2010.'' Witnesses
included the Rural Housing Service, HUD, tenant advocates,
owners, and affordable housing experts. H.R. 4868 was marked up
by the Committee on July 29, 2010 and forwarded to the House
with a favorable recommendation.
PUBLIC HOUSING
The Subcommittee held a hearing on July 29, 2010, the
Subcommittee held a hearing on ``Academic Proposals on the
Future of Public Housing.'' At the hearing various academics
testified about the current state of the public housing stock,
resident characteristics, and issues facing the program as
moves into the 21st century. On April 28, 2010, the
Subcommittee held a hearing on ``Legislative Proposals to
Preserve Public Housing.'' The hearing focused on two
discussion drafts. The first, the Public Housing One-for-One
Replacement and Tenant Protection Act of 2010, was designed to
preserve public housing stock through one-for-one replacement
of demolished or disposed units. The second, the Public Housing
Preservation and Rehabilitation Act of 2010, was designed to
provide public housing agencies with various financial tools in
order to facilitate preservation of the stock. Both pieces of
legislation were eventually included in H.R. 5814, the Public
Housing Reinvestment and Tenant Protection Act of 2010. On July
28, 2010, the Committee marked up H.R. 5814 and reported it to
the House with a favorable recommendation.
GREEN DEVELOPMENT
The Subcommittee held two hearings in June 2009 on H.R.
2336, the ``Green Resources for Energy Efficient Neighborhoods
Act of 2009 or GREEN Act of 2009.'' The bill would create
programs within HUD that are designed to make residences energy
efficient to the 2009 International Energy Conservation Code
(IECC), which contains energy efficiency criteria for
residential and commercial buildings and additions to existing
buildings. The witnesses testified about the importance of
green affordable housing, especially for low-income families
living in multi-family housing projects. On April 22, 2010, the
Committee held a markup of H.R. 2336 and ordered the bill
reported by voice vote. On September 22, 2010, the report was
filed (H. Rept. 111-619). No further activity occurred on H.R.
2336 in the 111th Congress.
NATURAL DISASTER INSURANCE
H.R. 2555, the Homeowners Defense Act of 2010, was ordered
reported by the Committee on April 27, 2010, and the report was
filed on July 13, 2010 (H. Rept. 111-534). Specifically, H.R.
2555 would: (1) establish a non-profit consortium to coordinate
catastrophe risk management actions by the States; (2) provide
for a Federal guarantee of debt obligations issued by eligible
state-based catastrophe insurance programs; (3) establish a
Federal program to provide reinsurance to eligible state-based
catastrophe insurance programs; (4) authorize a new Federal
grant program to help the States prevent and mitigate losses
from natural disasters; and (5) direct the GAO to study and
report on the use of risk-based pricing by state-based
catastrophe insurance programs. No further activity on H.R.
2555 occurred in the 111th Congress.
INCLUSIVE HOME DESIGN
On September 29, 2010, the Subcommittee held a hearing on
the Inclusive Home Design Act, which was introduced by
Congresswoman Jan Schakowsky on March 10, 2009 (H.R. 1408). The
bill would require that, with certain exceptions, all newly
built single-family homes and townhouses receiving federal
funds from the U.S. Department of Housing and Urban Development
(HUD), the U.S. Department of Veterans Affairs (VA) or the U.S.
Department of Agriculture (USDA) under title V of the Housing
Act of 1949, meet four specific standards, including: 1) having
at least one accessible (``zero-step'') entrance into the home;
2) ensuring all doorways on the main floor have a minimum of 32
inches of clear passage space; 3) having at least one indoor
room with an area of not less than 70 square feet and one
wheelchair-accessible bathroom on the main floor; and 4)
placing electrical and climate controls at heights reachable
from a wheelchair. Congresswoman Schakowsky testified on her
legislation. Additionally, individuals from across the country
testified on their experiences advocating for inclusive home
design principles, while a researcher testified on the need for
affordable, accessibly-designed housing across the nation.
Subcommittee Oversight Activities
MORTGAGE FORECLOSURES AND LOAN MODIFICATIONS
The Subcommittee held four hearings on the performance of
mortgage servicers in modifying loans and assisting homeowners,
including modifications through the Treasury's Home Affordable
Modification Program (HAMP). At these hearings Treasury and
other government officials, mortgage servicers, academics, and
consumer advocates testified about the status of loan
modifications, problems with the loan modification process, the
implications for homeowners, and other issues related to
mortgage servicing. The Subcommittee on Housing and Community
Opportunity held a hearing on November 18, 2010, to examine
HAMP and other issues related to foreclosure documentation and
due process requirements. Witnesses included housing and
banking regulators, mortgage servicers, consumer advocates,
foreclosure attorneys, and other experts.
In addition, the Subcommittee held a hearing on May 6,
2009, on ``Legislative Solutions for Preventing Loan
Modification and Foreclosure Rescue Fraud.'' The hearing
examined the growing industry of foreclosure consultants who
purport to, for a fee, prevent a foreclosure or obtain a loan
modification on a homeowner's behalf. Legislation to provide
for the regulation of these persons was included in the Dodd-
Frank Wall Street Reform and Consumer Protection Act of 2010
(P.L. 111-203).
PUBLIC HOUSING
The Subcommittee held a hearing on July 29, 2010, on
``Academic Proposals on the Future of Public Housing.'' At the
hearing various academics testified about the HOPE VI program's
record on revitalizing public housing and building mixed-income
communities. The hearing also examined the impact of HOPE VI on
tenants', including tenants' ability to find affordable housing
during HOPE VI rehabilitations and return to their original
communities once redevelopment is complete.
On April 28, 2010, the Subcommittee held a hearing on
``Legislative Proposals to Preserve Public Housing.'' The
hearing focused on two discussion drafts. The first, the Public
Housing One-for-One Replacement and Tenant Protection Act of
2010, was designed to preserve public housing stock through
one-for-one replacement of demolished or disposed units. The
second, the Public Housing Preservation and Rehabilitation Act
of 2010, was designed to provide public housing agencies with
various financial tools in order to facilitate preservation of
the stock. Both pieces of legislation were eventually included
in H.R. 5814, the Public Housing Reinvestment and Tenant
Protection Act of 2010. On July 28, 2010, the Committee marked
up H.R. 5814 and ordered reported it to the House with a
favorable recommendation.
On July 20, 2009, the Subcommittee held a field hearing in
New York City on ``Legislative Proposals to Increase Work and
Health Care Opportunities for Public and Subsidized Housing
Residents.'' The hearing covered two discussion drafts authored
by Representative Velazquez. The first, the Earnings and Living
Opportunity Act would reform the Section 3 program which
provides employment opportunities for residents of public and
assisted housing that live in or near developments that
undergoing rehabilitation or reconstruction. The second, the
Together We Care Act, would create a pilot program to train
public housing residents to become home health care aides to
elderly residents in public housing. Witnesses included
representatives from HUD and New York state and local
government; experts on public housing, employment, and health
care; and residents of public and assisted housing.
Representative Velazquez introduced the Together We Care Act as
H.R. 4224 on December 8, 2009. The legislation was later
included in H.R. 5814, which was ordered reported by the
Committee on July 29, 2010.
On March 17, 2010, the Subcommittee held a legislative
hearing on a discussion draft of the Administration's Choice
Neighborhoods Initiative. Choice Neighborhoods would expand the
HOPE VI program to assisted housing, include transportation and
education as eligible activities, and focus the grant as a
catalyst for revitalization of the neighborhood in which the
housing is located.
On July 28, 2010, the Committee reported out H.R. 5814, the
Public Housing Reinvestment and Tenant Protection Act of 2010
with a favorable recommendation. The bill included four titles:
the Choice Neighborhoods Initiative Act of 2010, the Public
Housing One-for-One Replacement and Tenant Protection Act of
2010, the Public Housing Preservation and Rehabilitation Act of
2010, and the Together We Care Act of 2010.
FEDERAL HOUSING ADMINISTRATION (FHA)
The Committee, along with the Subcommittees on Housing and
Community Opportunity and Oversight and Investigations, held a
combined six hearings on various issues related to the Federal
Housing Administration. The first two of those hearings
examined FHA's ability to oversee approved lenders and its
ability to prevent fraud (the first hearing, ``FHA Oversight of
Loan Originators'' was held on January 9, 2009 and the second
hearing, ``Strengthening Oversight and Preventing Fraud in FHA
and Other HUD Programs'' was held on June 18, 2009). The other
four hearings on FHA examined the status of FHA's Mutual
Mortgage Insurance Fund (MMIF), which in FY2009 fell below the
2 percent mandated under The Cranston-Gonzalez National
Affordable Housing Act (P.L. 101-625), as well as regulatory,
administrative and statutory proposals to improve the financial
health of the MMIF (the first Subcommittee hearing on FHA's
financial condition was held on October 8, 2010; a Committee
hearing also examined this topic on December 2, 2009; a
legislative hearing in the Subcommittee on the FHA Reform Act
of 2010 was held on March 11, 2010; a hearing on FHA's
implementation of higher loan fees and pending legislative
proposals was held on September 22, 2010). In these hearings,
the Subcommittee and Committee conducted oversight of FHA's
regulatory and administrative actions taken to improve the
financial condition of the MMIF, including: hiring a Chief Risk
Officer; creating stricter guidelines for the streamline
refinance program; announcing new appraisal controls;
increasing net worth requirements for mortgagees; increasing
the upfront mortgage insurance premium; changing downpayment
requirements for borrowers with low credit scores; and reducing
allowable seller concessions.
On April 22, 2010, the Committee ordered reported the FHA
Reform Act of 2010 (H.R. 5072) with a favorable recommendation,
which provided FHA with additional tools to improve the health
of the MMIF. The Act included a provision to allow the
Secretary to increase the annual mortgage insurance premium for
the single-family mortgage insurance program, which will
increase funds to the MMIF by an estimated $300 million per
month. The Act also extended the Secretary's authority to
require indemnification from Direct Endorsement lenders;
provided the Secretary with the authority to terminate
mortgagee approval on a nationwide basis if the mortgagee
originates or underwrites mortgages with excessive rates of
claim or default; and provided the Secretary with enhanced
ability to review mortgagee performance, including hiring
outside credit risk analysts, reviewing significant or rapid
increases in early defaults or claims, reporting mortgagee
actions taken against other mortgagees, enhancing annual and
quarterly reports on the MMIF, providing default and
origination information by loan servicer and originating direct
endorsement lender, and requiring a GAO report. H.R. 5072
passed the House on June 10, 2010 by a margin of 406-4. The
provision in the Act that would allow the Secretary to increase
the annual mortgage insurance premium on the single-family
mortgage insurance program became law on August 11, 2010 (P.L.
111-229).
SECTION 8 HOUSING CHOICE VOUCHER PROGRAM
On June 4, 2009, the Subcommittee held a hearing on H.R.
3045, the Section 8 Voucher Reform Act of 2009. This
legislation would reform and streamline the Section 8 voucher
program by reforming the funding formula, simplifying
inspections and deductions, and reforming the Moving-to-Work
panel. Witnesses included HUD, public housing agencies, tenant
advocates, and housing experts. On July 23, 2009 the Committee
marked up the legislation and reported it to the House with a
favorable recommendation.
RURAL HOUSING
The Committee held a markup on April 22, 2010 on H.R. 5017,
a bill to preserve Section 502 single family direct and
guaranteed loan programs. The bill passed out of the Committee
on April 22, 2010. On April 27, 2010, H.R. 5017 passed out of
the House under a suspension of the Rules with a vote of 352-
62. H.R. 5017 was referred to the Senate Committee on Banking,
Housing, and Urban Affairs. On July 29, 2010, the language from
H.R. 5017 was incorporated into the Supplemental Appropriations
Act of 2010, H.R. 4899, and signed into law, P.L. 111-212.
HOMELESSNESS
On March 28, 2009, the Subcommittee held a field hearing in
Los Angeles, California to discuss the impact of the
foreclosure crisis on various populations, including the
specific effect of foreclosures on the homeless population.
Witnesses included state elected officials, state and local
government agencies, community advocates and academics.
Witnesses testified about the growing number of homeless
families and the lack of resources available to the rising
homeless population in both Los Angeles County as well as the
rest of the country. On June 16, 2009, the House passed H.R.
403, the ``Homes for Heroes Act of 2009'' which authorizes
20,000 new housing vouchers for homeless veterans. H.R. 403 was
referred to the Senate Committee on Banking, Housing, and Urban
Affairs on June 17, 2009.
NATIVE AMERICAN HOUSING
On April 10, 2010, the Subcommittee held a legislative
field hearing in Window Rock, Arizona focusing on H.R. 3553,
the ``Indian Veterans Housing Opportunity Act of 2009,'' which
ensures HUD housing benefits to qualified Native American
veterans with disabilities. The hearing addressed the need for
housing services within the Native American veteran community,
especially among those with disabilities. Witnesses included
HUD, local government agencies and elected officials, tribal
leaders, community advocates, and affected veterans. On April
20, 2010, H.R. 3553 passed out of the House under a suspension
of the Rules by voice vote and was referred to the Senate. On
September 27, 2010, the Senate passed H.R. 3553 by unanimous
consent without amendment. On October 12, 2010, H.R. 3553 was
signed by the President and became Public Law 111-269.
NEIGHBORHOOD STABILIZATION PROGRAM
The Subcommittee conducted a field hearing in the Minnesota
Twin Cities on January 23, 2010, that examined the Neighborhood
Stabilization Program (NSP) and how that program is being used
to increase the supply of public and assisted housing across
the country, and specifically in the Twin Cities. The
Subcommittee heard testimony from HUD on the condition of the
housing market in the Twin Cities, and efforts under NSP to
stabilize that market. The Subcommittee also heard from local
government officials about the challenges that foreclosed,
abandoned and vacant property pose to the city and from non-
profit stakeholders about the need for, and challenges in
implementing, NSP. Witness testimony informed Subcommittee work
with HUD on revising relevant regulations to speed up spend out
rates and allow grantees to more effectively stabilize
communities.
COMMUNITY DEVELOPMENT BLOCK GRANTS
Chairwoman Waters requested and received a report by the
Government Accountability Office (GAO) on how CDBG funds are
distributed and expended by grantees to subrecipients at the
local level (Community Development Block Grants: Entitlement
Communities' and States' Methods of Distributing Funds Reflect
Program Flexibility, September 15, 2010). This included a
review of entitlement grantee distribution and expenditure
processes, and methods of distribution used by states. GAO
found that distribution processes varied widely between
grantees, consistent with the flexibility embedded within the
CDBG program.
The Committee also requested and received a report by the
Government Accountability Office on how grantees under the CDBG
and HOME Investment Partnerships Program fulfill their
requirement to prepare planning documents known as Analyses of
Impediments (AI), which are used to identify impediments to
fair housing (such as restrictive zoning or segregated housing)
and actions to overcome them (Housing and Community Grants: HUD
Needs to Enhance Its Requirements and Oversight of
Jurisdictions' Fair Housing Plans, September 14, 2010). The
report found that 29 percent of AIs were out-of-date per HUD
guidance. GAO also found that, in some cases, required
documents may not be maintained by grantees. GAO recommended
that, through regulation, HUD require grantees to update their
AIs periodically, follow a specific format, and submit them for
review.
FEDERAL HOUSING RESPONSE TO NATURAL DISASTERS
The Subcommittee held two days of hearings in 2009 on
August 28 and 29 in New Orleans, Louisiana to examine issues
facing the recovery of the city's housing market 4 years after
Hurricane Katrina. The hearings focused on the status of two
programs critical to the City's housing recovery: the
redevelopment of the Big Four public housing developments and
the Road Home program. Following the hearing, Chairwoman Waters
continued to engage with HUD on the status of these programs,
including writing to the Secretary about actions HUD planned to
take to address allegations that some developers were
implementing illegal work requirements.
NATIONAL FLOOD INSURANCE PROGRAM (NFIP)
Due to the lack of a long-term authorization, the National
Flood Insurance program lapsed 3 times during the 111th
Congress: For 2 days in March 2010, for 18 days in April 2010,
and again from June 1 to July 2, 2010. Chairwoman Waters
drafted legislation, H.R. 5569, to continue the program for a
three-month period pending the enactment of a long-term
authorization. On July 2nd, President Obama signed H.R. 5569,
legislation to continue the program from July 2nd through
September 30th. On September 30, 2010, President Obama signed
S. 3814, legislation to continue the program through September
30, 2011.
On April 21, 2010 the Subcommittee held a hearing on
``Legislative Proposals to Reform the National Flood Insurance
Program.'' The hearing focused on two bills designed to reform
and expand the NFIP: H.R. 5114, the Flood Insurance Reform
Priorities Act of 2010 and H.R. 1264, the Multiple Peril
Insurance Act of 2009. H.R. 5114 would have reauthorized the
flood insurance program for 5 years and provided various
reforms to the program, including the phasing in of actuarial
rates for newly mapped homeowners and the elimination of
subsidized rates over time for certain categories of
properties. H.R. 1264 would have directed the NFIP to offer
actuarially priced optional wind insurance policies and would
have prohibited insurers from including anti-concurrent
causation provisions in their wind insurance policies. On April
22, 2010, both bills were reported out of the Committee with a
favorable recommendation. On July 15, 2010, the House of
Representatives passed H.R. 5114 by a vote of 329-90.
HOUSING COUNSELING
On May 13, 2009, the Subcommittee held a hearing on the
role of NeighborWorks and housing counseling intermediaries in
preventing foreclosures through housing counseling and included
witnesses from NeighborWorks and foreclosure counseling
intermediaries. The hearing focused specifically on challenges
and outcomes under the National Foreclosure Mitigation
Counseling (NFMC) Program, a NeighborWorks program established
to provide foreclosure counseling to troubled homeowners from
qualified foreclosure counseling intermediaries receiving grant
funding under the program. The Dodd-Frank Wall Street Reform
and Consumer Protection Act of 2010 contained a provision to
establish an Office of Housing Counseling within HUD to boost
homeownership and rental housing counseling.
FAIR HOUSING
On January 15, 2010, the Subcommittee held a legislative
hearing on H.R. 476, the ``Veterans, Women, Families with
Children, Persons with Disabilities Housing Fairness Act of
2010.'' The bill would authorize HUD to establish a nationwide
housing discrimination testing program with an authorization of
$15 million annually for five years; authorize $42.5 million
annually for five years for the HUD Fair Housing Initiatives
Program; and establish a $5 million competitive grant program
to study the root causes and effects of housing discrimination.
Witnesses included HUD, community groups, and advocates. On May
27, 2010, the Subcommittee held a subcommittee markup of H.R.
476 and passed the bill out of the subcommittee. On July 28,
2010, the Committee marked up H.R. 476 and ordered the bill
reported by voice vote.
GREEN DEVELOPMENT
The Subcommittee held two hearings in June 2009 on H.R.
2336, the ``Green Resources for Energy Efficient Neighborhoods
Act of 2009 or GREEN Act of 2009.'' The bill would create
programs within HUD that are designed to make residences energy
efficient to the 2009 International Energy Conservation Code
(IECC), which contains energy efficiency criteria for
residential and commercial buildings and additions to existing
buildings. The witnesses included HUD and industry experts who
testified about the importance of green affordable housing,
especially for low-income families living in multi-family
housing projects. On April 22, 2010, the Committee held a
markup of H.R. 2336 and ordered the bill reported by voice
vote. On September 22, 2010, the report was filed (H. Rept.
111-619) and the bill was placed on the Union Calendar.
Subcommittee Hearings Held
------------------------------------------------------------------------
Serial No. Title Date(s)
------------------------------------------------------------------------
111-6................. Loan Modifications: Are February 24, 2009
Mortgage Servicers
Assisting Borrowers with
Unaffordable Mortgages
(Housing).
111-16................ Examining the Making Home March 19, 2009
Affordable Program
(Housing).
111-23................ The Housing Crisis in Los March 28, 2009
Angeles and Responses to
Preventing Foreclosures
and Foreclosure Rescue
Fraud (Housing).
111-28................ Legislative Solutions for May 6, 2009
Preventing Loan
Modification and
Foreclosure Rescue Fraud
(Housing).
111-30................ The Role of NeighborWorks May 13, 2009
and Housing Counseling
Intermediaries in
Preventing Foreclosures
(Housing).
111-40................ The Section 8 Voucher June 4, 2009
Reform Act (Housing).
111-43................ H.R. 2336, the GREEN Act June 11, 2009
of 2009, Part I (Housing).
111-45................ H.R. 2336, the GREEN Act June 16, 2009
of 2009, Part II
(Housing).
111-59................ Legislative Options for July 15, 2009
Preserving Federally- and
State-Assisted Affordable
Housing and Preventing
Displacement of Low-
Income, Elderly and
Disabled Tenants
(Housing).
111-63................ Legislative Proposals to July 20, 2009
Increase Work and Health
Care Opportunities for
Public and Subsidized
Housing Residents
(Housing).
111-69................ Academic Perspectives on July 29, 2009
the Future of Public
Housing (Housing).
111-70................ Implementation of the Road August 20, 2009
Home Program Four Years
after Hurricane Katrina
(Housing).
111-71................ Status of the ``Big Four'' August 21, 2009
Four Years After
Hurricane Katrina
(Housing).
111-72................ Progress of the Making September 9, 2009
Home Affordable Program:
What Are the Outcomes for
Homeowners and What Are
the Obstacles to Success?
(Housing).
111-87................ The Future of the Federal October 8, 2009
Housing Administration's
Capital Reserves:
Assumptions, Predictions,
and Implications for
Homebuyers (Housing).
111-96................ H.R. 476, the Housing January 20, 2010
Fairness Act of 2009
(Housing).
111-99................ The Impact of the January 23, 2010
Foreclosure Crisis on
Public and Affordable
Housing in the Twin
Cities (Housing).
111-108............... Approaches to Mitigating March 10, 2010
and Managing Natural
Catastrophe Risk: H.R.
2555, The Homeowners'
Defense Act (Capital
Markets and Housing).
111-110............... The FHA Reform Act of 2010 March 11, 2010
(Housing).
111-116............... H.R. 4868, The Housing March 24, 2010
Preservation and Tenant
Protection Act of 2010
(Housing).
111-119............... Addressing the Housing April 10, 2010
Needs of Native American
Veterans with
Disabilities (Housing).
111-122............... The Recently Announced April 14, 2010
Revisions to the Home
Affordable Modification
Program (HAMP) (Housing).
111-126............... Legislative Proposals to April 21, 2010
Reform the National Flood
Insurance Program
(Housing).
111-128............... Legislative Proposals to April 28, 2010
Preserve Public Housing
(Housing).
111-135............... Minorities and Women in May 12, 2010
Financial Regulatory
Reform: The Need for
Increasing Participation
and Opportunities for
Qualified Persons and
Businesses (Housing and
Oversight).
111-163............... The Inclusive Home Design September 29, 2010
Act (Housing).
111-166............... Robo-Signing, Chain of November 18, 2010
Title, Loss Mitigation
and Other Issues in
Mortgage Servicing
(Housing).
------------------------------------------------------------------------
Subcommittee on International Monetary Policy and Trade
(Ratio: 9-6)
GREGORY W. MEEKS, New York,
Chairman
GARY G. MILLER, California LUIS V. GUTIERREZ, Illinois
EDWARD R. ROYCE, California MAXINE WATERS, California
RON PAUL, Texas MELVIN L. WATT, North Carolina
DON MANZULLO, Illinois GWEN MOORE, Wisconsin
MICHELE BACHMANN, Minnesota ANDRE CARSON, Indiana
ERIK PAULSEN, Minnesota STEVE DRIEHAUS, Ohio
SPENCER BACHUS, Alabama, ex officio GARY PETERS, Michigan
DAN MAFFEI, New York
BARNEY FRANK, Massachusetts, ex
officio
Subcommittee Legislative Activities
FOREIGN DIVESTMENT STRATEGY
On March 12, 2009, the Subcommittee on International
Monetary Policy and Trade held a legislative hearing entitled
``The Iran Sanctions Enabling Act of 2009''. The Members
discussed the legislation, H.R. 1327, which built on similar
legislation passed in the previous Congress, which makes it the
official policy of the United States to support state and local
governments who seek to divest from, or to prevent investments
in Iran's energy sector, as well as extending safe harbor
provisions to the private sector, to individuals or
corporations who may consider the U.S.-Iran relationship in
their investment decisions. Earlier versions of a similar bill
had been introduced and passed with overwhelming support in the
110th Congress, including H.R. 2347, ``The Iran Sanctions
Enabling Act'' and ``The Comprehensive Iran Sanctions
Accountability and Divestment Act of 2008''. Companion bills
were passed in the Senate; however a final reconciled bill was
never approved during the 110th Congress. The Subcommittee
heard testimony from the Honorable Ted Deutch, State Senator
from Florida, Mr. Trita Parsi, President, National Iranian-
American Council, Mr. Jason Isaacson, Director of Government
and International Affairs, American Jewish Committee and
Professor Orde F. Kittrie, Professor of Law, Sandra Day
O'Connor College of Law, Arizona State University.
DEBT RELIEF
On March 4, 2010, the Subcommittee on International
Monetary Policy and Trade held a legislative hearing entitled
``Haiti Debt Relief''. The Members discussed the legislation,
H.R. 4573 the ``Debt Relief for Earthquake Recovery in Haiti
Act of 2010''. Following the devastating January 12, 2010
earthquake that struck Haiti, the world rallied to mobilize
resources to assist the nation and its population in the
immediate aftermath of the destruction. Indeed, on February 4,
2010, U.S. Treasury Secretary Tim Geithner stated that ``[t]he
earthquake in Haiti was a catastrophic setback to the Haitian
people who are now facing tremendous emergency humanitarian and
reconstruction needs, and meeting Haiti's financing needs will
require a massive multilateral effort,[. . .] we are voicing
our support for what Haiti needs and deserves--comprehensive
multilateral debt relief.'' In 2009, following Haiti's
successful completion of the Heavily Indebted Poor Countries
(HIPC) process, the Inter-American Development Bank, World Bank
and the International Monetary Fund forgave $1.2 billion of
Haiti's debts. However, this process only included debts
accrued by the government of Haiti up to 2004. Since then,
however, and before the January 12 earthquake, Haiti had
accrued additional sovereign debts, including $447 million owed
to the IDB, $165 million owed to the IMF, and $38.6 million to
the World Bank. Since 2007, however, the IDB has worked with
Haiti strictly on a grants basis. Similarly, the World Bank now
works in Haiti primarily through the International Development
Association (IDA), its grants facility aimed at the poorest,
most vulnerable nations. The Subcommittee heard testimony from
Ms. Nancy Lee, Deputy Assistant Secretary, U.S. Department of
the Treasury, Ms. Melinda St. Louis, Deputy Director, Jubilee
USA Network, Mr. Tom Hart, Senior Director, ONE, and the
Honorable Timothy D. Adams, The Lindsey Group.
Subcommittee Oversight Activities
G-20
On May 13, 2009, the Subcommittee on International Monetary
Policy and Trade held a legislative hearing entitled
``Implications of the G-20 Leaders Summit for Low Income
Countries and the Global Economy''. The hearing focused on the
G-20 communique section entitled ``Strengthening our global
financial institutions'', which highlighted the prominence of
emerging markets in the discussions, and makes explicit the
importance of incorporating them in earnest in any strategy for
a global economic recovery. Indeed, the G-20 leaders stated
that ``Emerging markets and developing countries, which have
been the engine of recent world growth, are also now facing
challenges which are adding to the current downturn in the
global economy. It is imperative for global confidence and
economic recovery that capital continues to flow to them. This
will require a substantial strengthening of the international
financial institutions, particularly the IMF. We have therefore
agreed today to make available an additional $850 billion of
resources through the global financial institutions to support
growth in emerging market and developing countries by helping
to finance counter-cyclical spending, bank recapitalizations,
infrastructure, trade finance, balance of payments support,
debt rollover, and social support.'' The Subcommittee heard
testimony from Mr. Amar Bhattacharya, Director,
Intergovernmental Group of Twenty Four, Ms. Nancy Birdsall,
Founding President, Center for Global Development, Mr. Simon
Johnson, Professor, Sloan School of Management, Massachusetts
Institute of Technology, The Honorable Timothy D. Adams,
Managing Director, The Lindsey Group.
MICROFINANCE
On January 27, 2010, the Subcommittee on International
Monetary Policy and Trade held a legislative hearing entitled
``The State of Global Microfinance: How Public and Private
Funds Can Effectively Promote Financial Inclusion for All''.
The members discussed the microfinance industry, which is one
of the great success stories of foreign aid and multilateral
development banks' private sector initiatives, providing
millions of poor people with basic financial services. Current
estimates suggest that over 150 million poor people are being
reached by microcredit. Microinsurance, which was virtually
unheard of a decade ago, is now reaching millions with crop,
health, life and other forms of insurance. Yet there are still
gaps in the availability of microfinance funding. Only 14
percent of investment capital is estimated to go to Africa and
Asia combined. Much of the gap is due to lack of capacity to
run microfinance programs, and weak capital market frameworks
that limit the flows and effectiveness of capital. The lack of
access is particularly severe in sub-Saharan Africa (SSA),
where the World Bank estimates that structured microfinance is
only reaching a small percentage of the economically active
population. The Financial Access Initiative (FAI), a research
consortium based at New York University, estimates that 2.5
billion adults worldwide still do not have a savings or credit
account with either a traditional or alternative financial
institution. Data indicate that countries can improve levels of
financial inclusion by creating effective policy and regulatory
oversight. Further, the new focus on Social Performance
Management (SPM) can help ensure that the social mission of
microfinance is preserved. The Subcommittee heard testimony
from Mr. Wagane Diouf, Managing Partner, Mecene Investment, Ms.
Susy Cheston, Senior Vice President, Opportunity International,
Ms. Elisabeth Rhyne, Managing Director, Center for Financial
Inclusion at ACCION International, Mr. Robert Annibale, Global
Director, Citi Microfinance, Mr. Damian von Stauffenberg,
Founder and Chairman, MicroRate, Mr. Donald F. Terry, former
head of the Inter-American Development Bank's Multilateral
Investment Fund.
HAITI
On March 16, 2010, the Subcommittee on International
Monetary Policy and Trade held a legislative hearing entitled
``Rebuilding Haiti's Competitiveness and Private Sector''. The
Members discussed the post-earthquake economic situation in
Haiti. Following the devastating January 12, 2010 earthquake
that struck Haiti, the world rallied to mobilize resources to
assist the nation and its population. As the scope of the
damage, and the commensurate reconstruction and economic
recovery effort become clear, increased focus has shifted to
the capital needs of the Government of Haiti, and the critical
role to play of the development banks and international
financial institutions, particularly by the Inter-American
Development Bank (IDB), the World Bank, and the International
Monetary Fund (IMF). The IDB estimated total cumulative
reconstruction costs of at least $14 billion, about double the
national GDP. According to State Department figures, some
230,000 people lost their lives as a result of the earthquake,
and up to 40 percent of civil servants are estimated to have
perished, 28 of 29 government ministry buildings were
destroyed, 70 percent of the population was unemployed, 80
percent of the population was living on less than $2 per day,
and 24 percent of Haitians were suffering from chronic
malnutrition. The hearing focused on the work that the
government of Haiti and the private sector had been doing prior
to the earthquake to identify a long-term economic strategy
focused on a select list of industry clusters in which the
nation could compete domestically and internationally.
Following the passage of the Haiti debt relief bill in the full
House of Representatives on March 10, 2010, this hearing
explored the role of the international institutions, in
enabling a long-term economic recovery strategy under the
leadership of the Haitian people themselves. The Subcommittee
heard testimony from Mr. Michael C. Fairbanks, Founder,
S.E.V.E.N Fund, Mr. Pierre-Marie Boisson, Chairman, Sogesol,
Mr. Mark D'Sa, Senior Director, Gap International Sourcing--
Americas, Ms. Nancy Birdsall, Founding President, Center for
Global Development, Mr. Francis J. Skrobiszewski, Associate,
VisionAmericas LLC.
On April 28, 2010, the Subcommittee on International
Monetary Policy and Trade held a legislative hearing entitled
``Promoting Small and Micro Enterprise in Haiti''. The Members
discussed the state of small enterprise in Haiti, the poorest
country in the western hemisphere. Indeed, more than half its
population lives on less than one dollar a day and 78 percent
on less than two. Haiti ranks 146th out of 177 countries on the
United Nations Development Program (UNDP) Human Development
Index. More than two-thirds of the labor force do not have
formal jobs. Most Haitians depend on agriculture and micro-
entrepreneurial activities for survival and operate in the
informal economy. Informal sector activity in Haiti is
estimated to represent well over half of the country's economy.
Formal and sustainable entrepreneurship initiatives,
particularly in the poorer parts of Haiti, are almost entirely
absent. Most small and micro-enterprises in Haiti confront
difficulties that limit their competitiveness and lead to high
failure rates. The predominant informality of the Haitian
private sector also dramatically limits the government's tax
base, regulatory oversight, and overall formal employment
creation. The Subcommittee heard testimony from Mr. Simon
Winter, Senior Vice President, Development, TechnoServe Inc,
Mr. Mathias Pierre, GaMa Consulting S.A., Mr. Olivier Barrau,
Managing Director, Alternative Insurance Company, Mr. David
Roodman, Research Fellow, Center for Global Development, Mr.
John Sanbrailo, Executive Director, Pan American Development
Foundation.
GREECE
On May 20, 2010, the Subcommittee on International Monetary
Policy and Trade and the Subcommittee on Domestic Monetary
Policy and Technology held a joint legislative hearing entitled
``The Role of the International Monetary Fund and Federal
Reserve in Stabilizing Europe''. The Members discussed the
recently announced plan to stabilize Europe, including the
Federal Reserve plan to re-open temporary U.S. dollar liquidity
swap facilities with foreign central banks, including the
European Central Bank (ECB), Bank of England (BOE), Swiss
National Bank (SNB), Bank of Japan (BOJ) and the Bank of Canada
(BOC). Members also discussed the International Monetary Fund
(IMF), which has taken on a significant role in the effort to
foster financial stability in Europe. The IMF committed
approximately $40 billion of IMF funds, as part of a larger
multilateral financing package, to help the Greek government
address its economic challenges. The funding will assist Greece
in its efforts to restore confidence and fiscal sustainability,
restore market competitiveness and safeguard financial sector
stability. IMF Managing Director Dominique Strauss-Kahn stated
that the IMF was ``ready to support our European members'
individual adjustment and recovery programs through the design
and monitoring of economic measures as well as through
financial assistance, when requested.'' The subcommittees heard
testimony from the Honorable Daniel K. Tarullo, Governor, Board
of Governors of the Federal Reserve; Ms. Carmen Reinhart,
Professor of Economics, University of Maryland, Mr. Edwin M.
Truman, Senior Fellow, The Peterson Institute for International
Economics, Mr. Peter Morici, Professor, Robert H. Smith School
of Business, University of Maryland.
EXPORT-IMPORT BANK
On September 29, 2010, the Subcommittee on Oversight and
Investigation and the Subcommittee on International Monetary
Policy and Trade held a joint hearing entitled ``Ex-Im Bank
Oversight: The Role of Trade Finance in Doubling Exports over
Five Years''. This hearing focused on the work of the Export-
Import Bank of the United States (``Ex-Im Bank''). The
Subcommittees reviewed its activities to promote export growth,
especially since the onset of the global financial crisis and
recession, which made credit availability more challenging for
businesses. The Subcommittees also examined what role Ex-Im
Bank is and should be playing in the Obama Administration's
National Export Initiative to double exports over five years.
Another key issue was ensuring small businesses had adequate
access to trade finance through Ex-Im. The Subcommittee Chairs
and Ranking Members transmitted a letter to GAO the day of the
hearing, asking that they review ``how Ex-Im's efforts compare
to the export financing efforts of other export credit
agencies,'' and report back to Congress. This initial hearing
lays the groundwork for reauthorizing the Export-Import Bank
when their authority expires in 2011. The Subcommittee heard
testimony from the Honorable Fred P. Hochberg, Chairman and
President, Export-Import Bank of the United States, Mr. Osvaldo
Luis Gratacos, Acting Inspector General, Export-Import Bank of
the United States, Mr. Loren Yager, Director, International
Affairs and Trade, U.S. Government Accountability Office (GAO),
Mr. John Hardy, President, Coalition for Employment Through
Exports (CEE).
FINANCIAL CRISIS IN AFRICA
On November 16, 2010, the Subcommittee on International
Monetary Policy and Trade held a legislative hearing entitled
``The Global Financial Crisis and Financial Reforms in
Nigeria''. The Members discussed the impact of the global
financial crisis in Africa, and financial reforms being
implemented in Nigeria. Sub-Saharan Africa (Africa) suffered
from the secondary effects of the global financial crisis as
demand and prices for Africa's primary exports collapsed, along
with falling remittances. Economic growth across much of the
continent slowed dramatically. International response to the
crisis included a dramatic increase in IMF resources, with some
reweighting of SDR allocations, to the benefit of developing
countries, including in Africa. Windfall profits from planned
IMF gold sales garnered an estimated $6 billion in additional
capital available for least developed countries, of which
Africa is expected to be a primary beneficiary. The World Bank
and African Development Bank dramatically increased lending and
grant programs to Africa in response to the crisis. Nigeria,
Africa's most populous country with an estimated 149 million
people, is also its second largest economy after South Africa.
The governor of the Central Bank of Nigeria (CBN) is leading
efforts to modernize Nigeria's financial sector. The CBN
conducted a series of audits or ``stress tests'' of Nigeria's
largest banking institutions, which revealed that nine banks
were near collapse. The Nigerian government provided a U.S. $4
billion bailout to the banks and stringent new capital rules
were introduced. Nigeria is establishing an Asset Management
Company, or a ``bad bank,'' to buy toxic loans in exchange for
government bonds in an effort to get banks lending again. Other
bank reforms being implemented include differentiated banking
licenses, to allow the creation of ``specialized banks'' to
meet the financial needs of specific demographic groups.
Nigeria's financial sector reforms also include reforming the
capital markets. The subcommittee heard testimony from Mr.
Lamido Sanusi, Governor, Central Bank of Nigeria, Ms. Arunma
Oteh, Director General, Securities and Exchange Commission of
Nigeria, Mr. Todd Moss, Vice President for Programs and Senior
Fellow, Center for Global Development.
FOREIGN DIVESTMENT STRATEGY
On November 30, 2010, the Subcommittee on International
Monetary Policy and Trade held a legislative hearing entitled
``Investments Tied to Genocide: Sudan Divestment and Beyond.''
The members discussed the impact of the Sudan Accountability
and Divestment Act (SADA), which Congress passed in 2007. This
law authorizes States and investment companies to divest from
companies with certain business ties to Sudan and prohibits
these companies from federal contracting. By drafting SADA in a
manner that gives States and investment companies the right,
but not the obligation to divest from, or prevent investment in
select companies with business ties to the Sudan Government in
Khartoum, the Act empowers investors to refrain from providing
financial support to businesses that may be seen as supporting
a civil war and genocide, while providing investment managers
safe harbor from prosecution for doing so. Witnesses spoke to
the documented impact of SADA, and lessons learned thus far
from the experience of SADA's implementation. In particular, a
GAO report indicates that American investors have indeed
withdrawn funds from targeted companies and investments.
Witnesses and members discussed the tradeoff between American
engagement in conflict areas such as Sudan, including by
American companies and investors who may promote social and
civic engagement that help to alleviate the suffering of
affected people, versus the withdrawal of American capital
which may open the door for other investors and businesses who
may not seek to promote any resolution to the conflict, or be
supportive of local humanitarian initiatives. The subcommittee
heard testimony from Mr. Thomas Melito, Director, International
Affairs & Trade, U.S. Government Accountability Office, Mr.
Eric Cohen, Chairperson, Investors Against Genocide, Mr. Adam
M. Kanzer, Esq., Managing Director & General Counsel, Domini
Social Investments LLC and Mr. Richard S. Williamson, Former
Special Envoy to Sudan.
AFRICA
In an effort to further understand the impact of the global
financial crisis on development efforts in Africa, and to
better understand the role of international financial
institutions and multilateral development banks, Rep. Meeks led
a bipartisan Congressional Delegation (CODEL) to Tunisia,
Rwanda and Zimbabwe, from August 27 to September 4, 2009.
Tunisia is the temporary home of the African Development
Bank (AfDB). In Tunisia, the delegation met with the senior
leadership of the AfDB for extended discussions about the
institution's work across the continent, and ongoing reforms
within the institution. Members also met with senior Tunisian
government officials, including the Prime Minister,
Parliamentarians, as well as a roundtable discussion with
private sector leaders, including representatives of American
businesses in Tunisia.
Rwanda has achieved exceptional economic growth since the
genocide. Its rapid, trade-driven development may serve as an
example for others in the region. In Rwanda, the delegation
conducted site visits of development projects, including a
small-holder farm benefiting from agricultural technical
assistance, a road and bridge construction site, the Kigali
University Teaching Hospital and a textile factory. Members met
with senior Rwandan government officials, including the
President, Minister of Finance, the Rwanda Development Board,
and representatives of the private sector, including American
companies.
Dubbed ``the world's fastest shrinking economy,''
Zimbabwe's Gross Domestic Product (GDP) has declined over 50
percent since 1998. World Bank and International Monetary Fund
(IMF) lending have been suspended since 2000 due to nonpayment
of arrears. Zimbabwe has stabilized under a fragile unity
government, following particularly violent national elections
in 2008. In Zimbabwe, members met with the President, Prime
Minister, Minister of Finance, parliamentarians responsible for
drafting the new constitution, and representatives of civil
society.
Rep. Meeks led a CODEL to Africa, jointly with Rep. Watt
from February 14-21, 2010. The bipartisan CODEL traveled to
Nigeria, Ethiopia, Zimbabwe and Botswana. The purpose of the
trip was to evaluate the role of international financial
institutions and multilateral development banks on the
continent, the role of central banks in establishing stable
monetary policy that leads to economic growth, as well as
financial and regulatory reforms being implemented in Africa's
major economies to achieve sustained economic recovery from the
global financial crisis.
Nigeria, is undergoing significant reform of its energy and
financial sectors, yielding hopes that it will finally reach
its potential as the economic engine of Africa. Nigeria is also
a major shareholder of the African Development Bank (AfDB), in
which the U.S. is also a major shareholder. In Nigeria, members
met with the central bank governor and representatives of the
leading financial companies.
Ethiopia, a country of 85 million people that has undergone
exceptional economic transformation in the past 15 years, is
home to the African Union (AU). Since the first democratic
elections in the country's history in 1995, Ethiopia has
emerged as an economic engine in East Africa and a critical
player in the East African region, despite continued conflicts
in neighboring Somalia and Sudan and recurrent food security
concerns. Members met with senior government officials,
including the Prime Minister, Minister of Finance and Central
Bank Governor, as well as senior leadership of the AU. Members
also visited the Ethiopian Commodity Exchange.
Following up on the September CODEL, members returned to
Zimbabwe to evaluate progress of the unity government and
economic reforms. Members met with senior government officials,
including the President and Minister of Finance, and conducted
a site visit to a low-income, semi-rural savings and loan and
income support initiative supported by U.S. government funds.
Botswana has been one of the strongest sustained performers
in Africa in the area of social and economic development,
consistently achieved superior economic growth relative to its
peers. However, in addition to its continued struggle against
the AIDS pandemic, this mineral-rich nation has been especially
hard hit by the global financial crisis and collapsing demand
and prices for its exports, including mainly diamonds. Members
met with senior Botswana government officials, including the
President, Minister of Finance, and Central Bank Governor,
visited the world's largest diamond production operation, and
representatives of the private sector.
Subcommittee Hearings Held
------------------------------------------------------------------------
Serial No. Title Date(s)
------------------------------------------------------------------------
111-13................ The Iran Sanctions March 12, 2009
Enabling Act of 2009
(International).
111-31................ Implications of the G-20 May 13, 2009
Leaders Summit for Low
Income Countries and the
Global Economy
(International).
111-100............... The State of Global January 27, 2010
Microfinance: How Public
and Private Funds Can
Effectively Promote
Financial Inclusion for
All (International).
111-105............... Haiti Debt Relief March 4, 2010
(International).
111-111............... Rebuilding Haiti's March 16, 2010
Competitiveness and
Private Sector
(International).
111-127............... Promoting Small and Micro April 28, 2010
Enterprise in Haiti
(International).
111-138............... The Role of the May 20, 2010
International Monetary
Fund and Federal Reserve
in Stabilizing Europe
(Domestic and
International).
111-162............... Ex-Im Bank Oversight: The September 29, 2010
Role of Trade Finance in
Doubling Exports over
Five Years (Oversight and
International).
111-165............... The Global Financial November 16, 2010
Crisis and Financial
Reforms in Nigeria
(International).
111-167............... Investments Tied to November 30, 2010
Genocide: Sudan
Divestment and Beyond
(International).
------------------------------------------------------------------------
Subcommittee on Oversight and Investigations
(Ratio: 10-7)
DENNIS MOORE, Kansas, Chair
JUDY BIGGERT, Illinois STEPHEN LYNCH, Massachusetts
PATRICK McHENRY, North Carolina RON KLEIN, Florida
RON PAUL, Texas JACKIE SPEIER, California
MICHELE BACHMANN, Minnesota GWEN MOORE, Wisconsin
CHRISTOPHER LEE, New York JOHN ADLER, New Jersey
ERIK PAULSEN, Minnesota MARY JO KILROY, Ohio
SPENCER BACHUS, Alabama, ex officio STEVE DRIEHAUS, Ohio
ALAN GRAYSON, Florida
BARNEY FRANK, Massachusetts, ex
officio
Subcommittee Oversight Activities
OVERSIGHT OF THE TARP AND THE FINANCIAL STABILITY PLAN
When Congress enacted the Emergency Economic Stabilization
Act of 2008 (EESA, P.L. 110-343), it authorized the
establishment of the Troubled Asset Relief Program (TARP)
within the Treasury Department, and created the Office of
Financial Stability within Treasury to implement TARP and other
financial stability efforts. The Treasury Department has
issued, as required by Sec. 105(a) of EESA, monthly reports to
Congress on the status of promoting financial stability.
The Act also established a regulatory framework for
overseeing the implementation of the program. EESA created the
Congressional Oversight Panel (COP) and the Special Inspector
General for TARP (SIGTARP). It also established new audit and
oversight duties for the Government Accountability Office
(GAO). The multiple layers of oversight included in EESA were
designed to ensure effective oversight, accountability, and
transparency. COP, SIGTARP and GAO have produced thousands of
pages of oversight reports, audits and investigations to ensure
taxpayers are fully protected.
Since the Emergency Economic Stabilization Act was signed
into law on October 3, 2008, the Subcommittee on Oversight and
Investigations held a number of hearings about TARP oversight,
accountability and transparency. The goal of these hearings was
to look at key issues exposed by the financial crisis and the
next steps to continue improving financial stability in an
economic recovery.
The Subcommittee held its first hearing entitled, ``A
Review of TARP Oversight, Accountability and Transparency for
U.S. Taxpayers'' on February 24, 2009. The Subcommittee heard
from Neil Barofsky, the Special Inspector General for TARP
(SIGTARP), Professor Elizabeth Warren who chaired the
Congressional Oversight Panel for TARP, and Acting Comptroller
General Gene Dodaro of the Government Accountability Office.
Mr. Barofsky urged Congress to give SIGTARP more authority and
staff to better track all the TARP funds. After the hearing,
Chairman Moore filed H.R. 1341 with Ranking Member Biggert to
do that, and the House approved the Senate version of the bill
on March 25, 2009, with a unanimous 423-0 vote. The measure was
enacted into law on April 24, 2009 (P.L. 111-15). The
legislation has strengthened the SIGTARP's hiring authority and
other enforcement powers to provide vigorous oversight of the
$700 billion TARP program.
In its work overseeing the implementation of TARP, the
Subcommittee has focused several of its hearings on the warrant
repurchasing process. When TARP recipient repays its original
Capital Purchase Program (CPP) investment, they have the right
to repurchase its warrants at an agreed upon fair market value.
This is done through direct negotiations with Treasury, which
has established a multiple step process to value the warrants
before they agree to sell them. If an institution decides not
to repurchase its warrants, Treasury has indicated a preference
to sell the warrants to a third party through a public auction.
On June 2, 2009, Chairman Moore wrote Treasury Secretary
Geithner regarding concerns that: ``financial institutions that
have received TARP funds are lobbying to buy back warrants the
U.S. government received for providing taxpayer assistance at a
reduced or minimal value. I strongly urge you to utilize your
authority to maximize the best deal for taxpayers.'' On July
22, 2009, the Subcommittee held its second TARP oversight
hearing entitled ``TARP Oversight: Warrant Repurchases and
Protecting Taxpayers.'' TARP's new administrator, Herb Allison,
testified on the status of the TARP, as well as issues
surrounding the repurchasing of TARP warrants by banks.
Professor Warren discussed COP's July report focused on
maximizing taxpayer returns in the warrant repurchasing
process. The day of the hearing, Goldman Sachs announced an
agreement with Treasury to repurchase their TARP warrants for a
higher-than-expected $1.1 billion, marking a new trend of
higher returns for taxpayers.
The Subcommittee's third TARP oversight hearing, entitled
``Utilizing Technology to Improve TARP and Financial
Oversight'', was held on September 17, 2009. The hearing
focused on the role of technology in efforts to provide
transparency and accountability for programs, such as TARP, and
using technology to ensure federal agencies provide strong,
coordinated oversight of financial services activity. Rep.
Carolyn Maloney's TARP database and monitoring bill, H.R. 1242,
was noted as a good idea to improve TARP transparency. The
House approved H.R. 1242 on December 2, 2009. A week later, the
Treasury Department announced an open government plan to ``to
increase transparency in government and maintain accountability
of taxpayer dollars''. This included a new commitment by the
Office of Financial Stability to release a TARP Transaction
Report for every new TARP transaction including investments
made and funds repaid. In an effort to make the reports user-
friendly, they would be made available in XML format for easy
sorting of data.
The fourth TARP oversight hearing, entitled ``TARP
Oversight: An Update on Warrant Repurchases and Benefits to
Taxpayers'' was held on May 11, 2010. The Subcommittee received
a SIGTARP audit focused on the TARP warrants program. Witnesses
included Treasury and other experts reviewing the benefits
taxpayers reaped from the TARP warrants program. One academic
witness testified that ``oversight works'' with respect to
TARP, and both SIGTARP and COP agreed that the TARP warrants
program generally succeeded.
As a result of the Subcommittee's oversight efforts with
respect to the TARP warrant repurchasing program, this program
has generated over $7 billion of extra returns for taxpayers
with even more expected, and that's in addition to over $200
billion of repayments of the initial TARP investment as of
November 2010.
EMERGING LESSONS FROM THE 2007-09 FINANCIAL CRISIS
The Subcommittee held a three-part series where it focused
on lessons learned from the recent financial crisis. The series
of hearings was inspired by the cover story from the April 6,
2009, issue of Time magazine, entitled ``The End of Excess: Why
this crisis is good for America,'' written by Kurt Andersen.
The first hearing in this series was held on May 6, 2010, and
was entitled ``Reversing Our Addiction to Debt and Leverage.''
This hearing centered on the role debt and leverage has played
in the past decade, both in the U.S. economy and in the
financial sector, leading up to the financial crisis. Witnesses
included Tom Hoenig, Kansas City Federal Reserve Bank
President, and David Walker, former Comptroller General of the
United States.
The second and third hearings in the series were field
hearings held in the Midwest. The second hearing was held in
Overland Park, Kansas, on August 23, 2010, on the topic of
``Too Big Has Failed: Learning from Midwest Banks and Credit
Unions.'' The Subcommittee examined the recent performance and
success of many community banks, regional banks and credit
unions in the Midwest. The Subcommittee explored key trends and
lessons that can be learned from responsible financial
intermediaries that can be applied to promote a stronger, more
stable financial system in the United States. At the hearing,
the recently enacted and landmark Dodd-Frank Wall Street Reform
and Consumer Protection Act (``Dodd-Frank Act'') was discussed,
focusing on how the new law shielded community banks, credit
unions, and small businesses from unnecessary regulatory
burdens while ending the notion that any large financial firm
is ``too big to fail''.
The third and final hearing in this series was held in
Lawrence, Kansas, on August 24, 2010, to focus on the question:
``Empowering Consumers: Can Financial Literacy Education
Prevent Another Financial Crisis?'' The Subcommittee examined
what kinds of programs have worked well in promoting greater
financial literacy. The hearing focused on the recent financial
crisis, and what lessons should be learned in terms of what
role financial literacy should play in a safer, more stable
financial system, including examining how best to coordinate
efforts, and utilizing limited resources most efficiently to
increase access to quality financial education for all people.
Also discussed were several key provisions included in the
Dodd-Frank Act to promote financial literacy, including the
creation of an Office of Financial Education within the newly
created Bureau of Consumer Financial Protection.
THE ROLE OF FINANCE IN AN ECONOMIC RECOVERY
Another key topic the Subcommittee focused on was the role
of various components of finance and how it can promote a
strong economic recovery across the board--for homeowners,
workers, women, minorities and small businesses. A number of
these were field hearings so that the Subcommittee could hear
directly from various stakeholders how the Great Recession was
impacting them and their communities, and discuss what ways
finance can promote a strong economic recovery.
The Subcommittee went to West Palm Beach, Florida, and held
a hearing on July 2, 2009, on the issue of ``The Homeowners'
Insurance Crisis: Solutions for Homeowners, Communities, and
Taxpayers''. Rep. Ron Klein had reintroduced H.R. 2555 to
address the concern that demand for homeowners' insurance in
Atlantic and Gulf Coast states has outpaced supply, making
affordable homeowners insurance difficult to find. At the
hearing, the Subcommittee heard from local residents,
businesses and government officials on how proposed solutions
can help homeowners. Following the hearing, the Committee
reported H.R. 2555 out favorably on July 13, 2010.
On November 30, 2009, the Subcommittee travelled to
Southfield, Michigan, to a hold a hearing entitled ``Improving
Responsible Lending to Small Businesses.'' Rep. Gary Peters
invited the subcommittee to visit this suburb of Detroit to
hear about the problems the local business community has had in
accessing finance and credit, the pressure banks and credit
unions are under from bank examiners to make fewer loans, and
the challenges facing bank regulators as bank failures rise. As
a result of the hearing, Rep. Peters and Chairman Moore
introduced H.R. 5302, the State Small Business Credit
Initiative Act. A version of the measure was included in the
Small Business Jobs and Credit Act that was enacted into law on
September 27, 2010 (P.L. 111-240).
The Subcommittee held a joint hearing with the Subcommittee
on Housing and Community Opportunity entitled: ``Minorities and
Women in Financial Regulatory Reform: The Need for Increasing
Participation and Opportunities for Qualified Persons and
Businesses,'' on May 12, 2010. The Subcommittees received an
update from GAO on the level of professional opportunities for
women and minorities in the financial industry and financial
regulatory agencies. The Subcommittee Chairs--Chairman Moore
and Chairwoman Waters--request GAO research the matter further
and report back to Congress with their updated findings.
On May 17, 2010, the Subcommittee held a field hearing in
Chicago, Illinois on the issue of ``Commercial Real Estate: A
Chicago Perspective on Current Market Challenges and Possible
Responses.'' The Subcommittee heard from a wide variety of
local industry representatives, experts and regulators on the
state of commercial real estate, and its impact on an economy
recovery. The aforementioned Small Business Jobs and Credit Act
included important provisions to aid commercial real estate
lending.
Another important hearing the Subcommittee held was
entitled ``Ex-Im Bank Oversight: The Role of Trade Finance in
Doubling Exports over Five Years,'' held on September 29, 2010.
This hearing was held jointly with the Subcommittee on
International Monetary Policy & Trade and focused on the work
of the Export-Import Bank of the United States (``Ex-Im
Bank''). The Subcommittees reviewed its activities to promote
export growth, especially since the onset of the global
financial crisis and recession, which made credit availability
more challenging for businesses. The Subcommittees also
examined what role Ex-Im Bank is and should be playing in the
Obama Administration's National Export Initiative to double
exports over five years. Another key issue was ensuring small
businesses had adequate access to trade finance through Ex-Im.
The Subcommittee Chairs and Ranking Members transmitted a
letter to GAO the day of the hearing, asking that they review
``how Ex-Im's efforts compare to the export financing efforts
of other export credit agencies,'' and report back to Congress.
This initial hearing lays the groundwork for reauthorizing the
Export-Import Bank when their authority expires in 2011.
MINIMIZING WASTE, FRAUD AND ABUSE IN FINANCIAL REGULATION
The Subcommittee reviewed a variety of ways in how
financial regulation could be improved to protect taxpayers and
minimize any waste, fraud and abuse in federal programs. A new
addition to the Rules of the House sponsored by Rep. John
Tanner (H. Res. 40) requires House committees to hold at least
one hearing every four months ``on the topic of waste, fraud,
abuse, or mismanagement in Government programs. . . .'' The
Subcommittee on Oversight and Investigations, along with the
Full Committee and other Financial Services subcommittees have
far exceeded this requirement by holding over 65 oversight
hearings in the 111th Congress that qualify under the Tanner
Rule. These hearings have resulted in legislation to provide
better oversight and eliminate waste, fraud and abuse with
respect to financial agency programs.
For example, on May 5, 2009, the Subcommittee held a
hearing on ``The Role of Inspectors General: Minimizing and
Mitigating Waste, Fraud and Abuse.'' This hearing focused on
the work of the Inspectors General (IGs) at Treasury, Federal
Reserve and FDIC, in particular the concern the IGs have that
mandated Material Loss Reviews (MLR) are overloading their
resources, preventing them to investigate other high priority
concerns to expose waste, fraud and abuse. Rep. Steve Driehaus,
Chairman Moore, Rep. Christopher Lee and Ranking Member Biggert
introduced H.R. 3330, the Improved Oversight by Financial
Inspectors General Act, to reform the MLR system and the House
unanimously approved it by voice vote on July 29, 2009. A
modified version of the bill was included in the Dodd-Frank
Wall Street Reform and Consumer Protection Act (987-988, P.L.
111-203).
Additionally, the Dodd-Frank Act includes provisions
originally offered by Subcommittee Chairman Moore and Rep.
Stephen Lynch as a financial reform amendment which creates a
new Council of Inspectors General on Financial Oversight,
connecting existing financial agency Inspectors General and
requiring financial agencies to respond to their oversight
recommendations. The Moore-Lynch amendment also requires a
mandatory Inspector General review be performed on future large
financial firms that fail, as well as new GAO reporting
requirements, which will better inform the Congress and
financial agencies as the new regulatory system is implemented.
Another key area the Subcommittee focused on was mortgage
fraud and improving oversight of FHA and other HUD programs. On
June 18, 2009, the Subcommittee held a hearing entitled:
``Strengthening Oversight and Preventing Fraud in FHA and other
HUD Programs.'' HUD's Inspector General, Kenneth Donohue, and
other housing experts discussed combating fraud in the housing
and mortgage market. The hearing focused on FHA, the importance
of independent appraisals and the need for adequate resources
at HUD to mitigate waste, fraud and abuse. Chairman Moore
joined Judiciary Committee Chairman John Conyers as a sponsor
of the Fight Fraud Act, which the House approved on May 6,
2009, by a vote of 367-59, giving the HUD IG more resources to
combat financial and mortgage fraud. The measure was enacted
into law two weeks later (P.L. 111-21).
The Subcommittee also held a hearing on July 13, 2009, on
the issue of ``Preventing Unfair Trading by Government
Officials.'' The Subcommittee examined cases of unfair trading
by government officials, including the Securities and Exchange
Commission's Inspector General's findings of alleged
inappropriate trading by SEC enforcement officials. The
Subcommittee also reviewed H.R. 682, the Stop Trading on
Congressional Knowledge Act, sponsored by Reps. Brian Baird and
Louise Slaughter, which would prohibit insider trading by
Members of Congress or their staff.
COMBATING TERRORISM FINANCING AND MONEY LAUNDERING
Another key oversight priority for the Subcommittee has
been focused on strengthening the federal government's efforts
in combating terrorism financing and money laundering. On April
28, 2010, the Subcommittee held a hearing on ``Reviewing FinCEN
Oversight Reports.'' The Subcommittee received an update from
the Financial Crimes Enforcement Network's (FinCEN) Director
and examined oversight reports issued by GAO and the Treasury
Department's Inspector General that looked at FinCEN's efforts
with respect to Suspicious Activity Reports, Bank Secrecy Act
compliance, and anti-money laundering. The Treasury Department
established FinCEN in 1990 to provide a government-wide
multisource financial intelligence and analysis network.
FinCEN's operation was later expanded to include the
responsibilities for administering the Bank Secrecy Act.
The Subcommittee held its second hearing on these issues on
May 26, 2010, focused on ``Anti-Money Laundering: Blocking
Terrorist Financing and Its Impact on Lawful Charities.'' The
Subcommittee reviewed ongoing efforts by the Treasury
Department to stop the financing of terrorism. The hearing
focused on various controls, disclosure and decision-making
processes to ensure innocent individuals and charities receive
due process while efforts to block terrorist financing remain
robust.
Another Subcommittee hearing was held on September 28,
2010, entitled: ``A Review of Current and Evolving Trends in
Terrorism Financing.'' This hearing focused on a broader
perspective offered by non-governmental witnesses on the
current and evolving trends in terrorism financing today. The
Subcommittee focused on how terrorist organizations continue to
finance their activities and how these organizations are
altering their financing techniques to avoid current methods
exercised by the U.S. government to stem the flow of money to
terrorists. The Subcommittee reviewed potential vulnerabilities
in the financial institutions systems of the United States and
the world that could be exploited by terrorist organizations.
Subcommittee Hearings Held
------------------------------------------------------------------------
Serial No. Title Date(s)
------------------------------------------------------------------------
111-5................. A Review of TARP February 24, 2009
Oversight,
Accountability, and
Transparency for U.S.
Taxpayers (Oversight).
111-27................ The Role of Inspectors May 5, 2009
General: Minimizing and
Mitigating Waste, Fraud,
and Abuse (Oversight).
111-46................ Strengthening Oversight June 18, 2009
and Preventing Fraud in
FHA and other HUD
Programs (Oversight).
111-52................ The Homeowners' Insurance July 2, 2009
Crisis: Solutions for
Homeowners, Communities,
and Taxpayers (Oversight).
111-56................ Preventing Unfair Trading July 13, 2009
by Government Officials
(Oversight).
111-67................ TARO Oversight: Warrant July 22, 2009
Repurchases and
Protecting Taxpayers
(Oversight).
111-75................ Utilizing Technology to September 17, 2009
Improve TARP and
Financial Oversight
(Oversight).
111-90................ Improving Responsible November 30, 2009
Lending to Small
Businesses (Oversight).
111-129............... Reviewing FinCEN Oversight April 28, 2010
Reports (Oversight).
111-131............... The End of Excess (Part May 6, 2010
One): Reversing Our
Addiction to Debt and
Leverage (Oversight).
111-132............... TARP Oversight: An Update May 11, 2010
on Warrant Repurchases
and Benefits to Taxpayers
(Oversight).
111-135............... Minorities and Women in May 12, 2010
Financial Regulatory
Reform: The Need for
Increasing Participation
and Opportunities for
Qualified Persons and
Businesses (Oversight and
Housing).
111-136............... Commercial Real Estate: A May 17, 2010
Chicago Perspective on
Current Market Challenges
and Possible Responses
(Oversight).
111-141............... Anti-Money Laundering: May 26, 2010
Blocking Terrorist
Financing and Its Impact
on Lawful Charities
(Oversight).
111-143............... After the Financial July 13, 2010
Crisis: Ongoing
Challenges Facing Delphi
Retirees (Oversight).
111-151............... Too Big Has Failed: August 23, 2010
Learning from Midwest
Banks and Credit Unions
(Oversight).
111-152............... Empowering Consumers: Can August 24, 2010
Financial Literacy
Education Prevent Another
Financial Crisis?
(Oversight).
111-161............... A Review of Current and September 28, 2010
Evolving Trends in
Terrorism Financing
(Oversight).
111-162............... Ex-Im Bank Oversight: The September 29, 2010
Role of Trade Finance in
Doubling Exports over
Five Years (Oversight and
International).
------------------------------------------------------------------------
OVERSIGHT PLAN FOR THE 111TH CONGRESS
Clause 2(d) of rule X of the Rules of the House of
Representatives for the 111th Congress requires that each
standing committee in the first session of a congress adopt an
oversight plan for the two-year period of the Congress and
submit the plan to the Committee on Oversight and Government
Reform and the Committee on House Administration.
Clause 1(d)(1) of rule XI requires each committee to submit
to the House not later than January 2 of each odd-numbered
year, a report on the activities of that committee under rules
X and XI during the Congress ending on January 3 of such year.
Clause 1(d)(3) of rule XI also requires that the report include
a summary of the oversight plans submitted pursuant to clause
2(d) of rule X; a summary of the actions taken and
recommendations made with respect to each such plan; and a
summary of any additional oversight activities undertaken by
the committee and any recommendations made or actions taken
thereon.
Part A of this section contains the Oversight Plan of the
Committee on Financial Services for the One Hundred Eleventh
Congress, which the Committee considered and adopted on
February 12, 2009.
Part B of this section contains a summary of the actions
taken to implement that plan and the recommendations made with
respect to the plan. Additional oversight activities undertaken
by the Committee, and the recommendations made or actions taken
thereon, are contained in the specific sections relating to the
activities of the full Committee and each of the subcommittees.
Part A
OVERSIGHT PLAN OF THE COMMITTEE ON FINANCIAL SERVICES FOR
THE ONE HUNDRED ELEVENTH CONGRESS
----------
February 12, 2009.--Approved by the Committee on Financial Services
----------
Mr. FRANK, from the Committee on Financial Services,
submitted to the Committee on Oversight and Government Reform
and the Committee on House Administration the following
REPORT
Clause 2(d)(1) of rule X of the Rules of the House of
Representatives for the 111th Congress requires each standing
committee, not later than February 15 of the first session to
adopt an oversight plan for the 111th Congress. The oversight
plan must be submitted simultaneously to the Committee on
Oversight and Government Reform and the Committee on House
Administration.
The following agenda constitutes the oversight plan of the
Committee on Financial Services for the 111th Congress. It
includes areas in which the Committee and its subcommittees
expect to conduct oversight during this Congress, but does not
preclude oversight or investigation of additional matters or
programs as they arise. Any areas mentioned in the oversight
plan may be considered by the Financial Services Committee, the
five subcommittees of jurisdiction or the Subcommittee on
Oversight and Investigations. The Committee will consult, as
appropriate, with other committees of the House that may share
jurisdiction on any of the subjects listed below. The Committee
will also comply with House Resolution 40, adopted earlier this
Congress, by holding periodic hearings on the topic of waste,
fraud, abuse, or mismanagement in Government programs
authorized by this Committee.
Financial Institutions
Troubled Asset Relief Program (TARP) and other Initiatives
to Stabilize the Financial System. The Committee will continue
to examine closely the operation of the TARP program authorized
by Emergency Economic Stabilization Act (EESA). This oversight
will include working with the Government Accountability Office,
the Congressional Oversight Panel, and the Special Inspector
General for TARP in order to ensure that the program adequately
protects taxpayer interests; that the program properly
addresses the mortgage foreclosure crisis; and that the
program's operations are properly transparent and accountable.
The Committee will also ensure that the Treasury Department
reports to the Committee on its progress in establishing a
program to insure troubled assets as set forth in section 102
of Public Law 110-343; and that Treasury regularly reports to
the Committee on matters of lending, liquidity, and safety and
soundness related to those financial institutions receiving
TARP funds or guarantees. The Committee will look into trends
related to financial fraud, including mortgage and securities
fraud, as well as unsound lending practices of financial
institutions and financial institutions affiliated with those
that received TARP funds or guarantees, which contributed to
the crises and lack of confidence in the U.S. financial
industry and led to the creation of TARP.
The Committee will also examine carefully whether the
recipients of TARP funds are spending the money appropriately,
with special attention paid to any instances of waste, fraud,
and abuse. The Committee will concentrate on issues related to
the distortion of TARP fund distribution caused by political
pressure and interference rather than the judgment of the
regulators. The Committee will carefully analyze the viability
of any new TARP initiatives, such as the newly announced
measures by the Treasury to create ``bad banks'' funded in part
with taxpayer dollars, and assess whether TARP funding is
deployed by recipient institutions in a manner consistent with
Congressional priorities and with restoring liquidity and
promoting the stability of the financial system. The Committee
will also continue to examine non-TARP efforts by the Treasury,
the Federal Reserve, the Federal Deposit Insurance Corporation
(FDIC), and other agencies to stabilize the financial system
and promote economic recovery.
The Committee also will examine the application by Federal
regulators of the ``too big to fail'' doctrine and the
designation of ``systemically significant'' institutions to
determine if these are effective, fair or rational public
policy distinctions. The Committee will ask if this doctrine
means that other institutions are ``too small to save'' and if
recent initiatives by the Treasury Department and Federal
Reserve have prejudiced local and community banks and credit
unions at the expense of institutions the regulators believe
are ``too big to fail.'' During this review, the Committee will
study the ways that financial institutions have expanded and
the incentives that drove them to grow. The Committee will try
to determine if it is possible to have a government regulator
unwind a systemically important institution in an orderly
fashion to prevent systemic disruptions.
Financial Supervision. The Committee will continue to
examine Federal regulators safety and soundness supervision of
the banking, thrift and credit union industries, to ensure that
systemic risks or other structural weaknesses in the financial
sector are identified and addressed promptly. The trend toward
consolidation in the banking industry and the growing number of
large credit unions serving broad fields of membership requires
that Federal regulators maintain the expertise and risk
evaluation systems necessary to oversee the activities of the
increasingly complex institutions under their supervision. The
Committee will also seek updates on consumer compliance
supervision of financial institutions and review the regulatory
enforcement of the Community Reinvestment Act, consumer
protections, and agency customer service.
Consumer Protections. In addition to issues addressed
throughout this oversight plan that relate to consumers of
financial services, the Committee will consider other specific
consumer protection issues within its jurisdictional purview,
including, but not limited to, disparate interpretations and
applications of individual States' laws related to national
banks, Federal thrifts and their affiliates or subsidiaries,
marketing tactics, rising fees, and penalties on credit card,
payday, mortgages and other consumer loans, unfair or deceptive
acts or practices such as foreclosure rescue scams, the use of
credit reports to change the rates and terms of preexisting
accounts, to ensure that the financial services industry
fulfills its responsibility to treat its customers fairly and
fully disclose the terms on which financial products and
services are offered to the public. The Committee will also
consider industry practices with respect to overdraft
protection programs, deposit hold periods, and other fees.
Data Security and Identity Theft. Building on the
Committee's long-standing role in developing laws governing
companies handling of sensitive personal financial information
about consumers, including the Gramm-Leach-Bliley Act and the
Fair and Accurate Credit Transactions Act (FACT Act), the
Committee will continue to seek legislation that better
protects the security and confidentiality of such information
from any loss, unauthorized access, or misuse. The Committee
will also monitor major data security breaches at government
agencies to ensure that personal financial information is
properly safeguarded and that the affected individuals receive
prompt notification where that is appropriate.
Implementation of FACT Act. The Committee will monitor
government and private sector implementation of the Fair and
Accurate Credit Transactions (FACT) Act (Public Law 108-159),
the 2003 legislation that renewed certain provisions of the
Fair Credit Reporting Act (FCRA) and gave consumers new rights
and protections against identity theft, including the ability
to obtain free credit reports annually. The Committee may
examine whether, after the FACT Act is implemented, there
remain barriers for consumers in maintaining accurate and
complete consumer files. The Committee will seek to determine
if additional efforts need to be undertaken to promote
voluntary reporting of data not currently being supplied to
credit reporting agencies, to facilitate greater access to
affordable financial products and services. As part of this
review, the Committee will continue to review the use of credit
scores by lenders in assessing consumers' creditworthiness to
determine whether credit is extended to them and on what terms,
including the growing practice of using nontraditional data to
measure creditworthiness.
Mortgage Lending. The Committee will study the complex
problem of, and potential solutions to, abusive and deceptive
lending in the mortgage industry. The Committee recognizes that
extending credit to under-served segments of the population has
positive aspects and the Committee's effort will be to decrease
the amount of abuses without undermining such access to credit.
In targeting abusive practices, the Committee will be cognizant
of the need to avoid policy prescriptions that result in
shutting off credit to underserved borrowers. Although the
Committee recognizes the limitations inherent in data analysis,
Home Mortgage Disclosure Act (HMDA) data continues to show
substantial disparities in the incidence of higher-priced
lending across racial and ethnic lines, with Black and Hispanic
borrowers more likely to obtain loans with prices above the
pricing thresholds than non-Hispanic white borrowers. The
Committee will continue to examine HMDA data to help assess
patterns of home mortgage lending to minority populations. The
Committee will extend its inquiry to examine all relevant
factors.
Deposit Insurance Reform. The Committee will monitor the
implementation of the Deposit Insurance Reform Act of 2005 and
the Federal Deposit Insurance Reform Conforming Amendments Act
of 2005, to ensure that deposit insurance continues to serve
its historic function as a source of stability in the banking
system and a valued safety net for depositors. During the
consideration of the Emergency Economic Stabilization Act,
deposit insurance coverage for banks and credit unions was
expanded from $100,000 per account to $250,000. This was
particularly important for small businesses, which rely on
their bank deposits to meet payroll and other critical needs.
The increase will ensure that they have access to their working
capital at all times, and discourage them from moving funds due
to concerns about a particular institution. According to the
Federal Reserve, for the smallest businesses (less than 10
employees, which are 80 percent of small businesses, raising
the limit will have a major impact: 75 percent fewer firms will
have uninsured deposits and the amount of their deposits
remaining uninsured will fall by two-thirds. The insurance
increase also gives small banks greater parity with the
temporary money market fund insurance recently implemented by
the Treasury Department. This will help keep deposits in banks
and promote their stability. The Committee will monitor the
implementation and effects of this expansion.
Credit Unions. The Committee will review issues relating to
the conversion policies and procedures, safety and soundness
and regulatory treatment of the credit union industry. In the
110th, the Committee supported the lifting of the statutory
borrowing cap on National Credit Union Administration's Central
Liquidity Fund and will continue to monitor its ability to meet
the liquidity needs of credit unions.
Regulatory Burden Reduction. The Committee will continue to
review the current regulatory burden on banks, thrifts, and
credit unions with the goal of reducing unnecessary,
duplicative, or overly burdensome regulations, consistent with
consumer protection and safe and sound banking practices. The
Committee's starting point will be H.R. 6312, the Credit Union,
Bank and Thrift Regulatory Relief Act, which passed the House
by voice vote in the 110th Congress.
Remittances. The Committee will continue to review the
marketing and disclosure practices of financial institutions
and money transmitters who offer international remittance
services to consumers seeking to send funds to relatives in
other countries.
Payment System Innovations. The Committee will review
government and private sector efforts to achieve greater
innovations and efficiencies in the payments system. The
Committee will continue to assess the appropriateness of the
current maximum hold periods and dollar amount limits provided
under the Expedited Funds Availability Act. The Committee will
also review improvements to the payments system, including ACH
debit entries, wire transfers, and international remittances.
Internet Gambling. The Committee will continue to examine
the implications of the Unlawful Internet Gambling Enforcement
Act (UIGEA) and whether the final regulations drafted by the
Treasury Department and Federal Reserve, in consultation with
the Justice Department, impose unreasonable compliance burdens
on financial institutions. Legislation which would have
prevented the implementation of these regulations was ordered
reported by the Committee in the 110th Congress after such a
measure had once been defeated.
Access to Financial Services. The Committee will continue
to explore ways to expand access to mainstream financial
services by traditionally underserved segments of the U.S.
population, particularly those without any prior banking
history (commonly referred to as ``the unbanked''). One area of
review will be an assessment of the Treasury Department's First
Accounts Program--a grant program intended to provide financial
services to low- and moderate-income Americans without bank
accounts.
Credit Card Regulation. The Committee will continue its
review of credit card industry practices, particularly relating
to marketing, fees and disclosures. The Committee will monitor
the implementation of recent Federal Reserve regulations: (i)
defining unfair and deceptive credit card industry practices
and (ii) making the format and content of credit card
disclosures required by Truth in Lending more effective. These
regulations become effective on July 1, 2010.
Community Development Financial Institution Fund. The
Committee will continue to oversee the operations of the
Community Development Financial Institutions Fund (Fund) which
was created in 1994 to promote economic revitalization and
community development. The Committee will examine the Fund's
contributions to community revitalization and measure its
impact on efforts in rural, urban, suburban, and Native
American communities. In addition, the Committee will assess
the Fund's progress in implementing reforms to make the grant
making process more fair and transparent. The Committee will
also monitor the Fund's administration of the New Markets Tax
Credit program (NMTC), including reviewing the efforts being
taken by the Fund to assist minority-owned community
development entities to effectively compete for allocations
under the NMTC program.
Community Reinvestment Act of 1977. The Committee will
continue to review developments and issues related to the
Community Reinvestment Act of 1977 (CRA). Particular focus will
be placed on ensuring that regulators are accurately
interpreting the law and consistently applying regulations to
all institutions. In addition, the Committee will examine how
well institutions are complying with the CRA and will seek to
ensure that CRA loans, services, and investments are
efficiently directed to low- and moderate-income communities.
The Committee will also explore recommendations for updating
CRA to make it more effective in light of changes in the
financial services sector.
Credit Counseling. The Committee will continue to review
the credit counseling industry which provides financial
education and debt management services to consumer seeking to
address excessive levels of personal indebtedness. A particular
focus will include examining complaints regarding abusive and
deceptive practices by some for-profit industry groups.
Financial Literacy. The Committee will continue its efforts
to promote greater financial literacy and awareness among the
public. As part of these efforts, the Committee will monitor
the operations, and evaluate the efficacy, of the Financial
Literacy and Education Commission. The Commission was
established to coordinate efforts of the Federal government and
encourage government and private sector initiatives to promote
financial literacy.
Payday Lending. The Committee will review practices by the
payday lending industry, with a particular emphasis on
marketing, consumer disclosures, interest rates, and fees
charged.
Discrimination in Lending. The Committee will examine the
effectiveness of Federal fair lending oversight and enforcement
efforts, including a review of the policies and procedures used
by primary regulators to assess lenders' compliance with fair
lending laws and a review of the steps taken by the enforcement
agencies to investigate potential violations of fair lending
laws. As part of this review, the Committee will assess the
adequacy of the current reporting requirements under the Home
Mortgage Disclosure Act (HMDA) to evaluate the patterns of home
mortgage lending to underserved populations. In April 2008,
several members of the Committee asked the Government
Accountability Office (GAO) to conduct a comprehensive
assessment of the current state of Federal enforcement of the
Equal Credit Opportunity Act, the Fair Housing Act, and other
related laws and regulations. The Committee will review this
report when it is completed. The Committee will also continue
to review the adequacy of the data sources currently used by
regulators and researchers to detect possible discrimination in
non-mortgage lending.
Diversity in Financial Services. The Committee will
continue to explore financial services industry's efforts to
attract and retain a diverse workforce, particularly at the
senior management level. The Committee will also review the
policies, programs, and initiatives used by Federal financial
services agencies to promote, obtain, and report on supplier
diversity, particularly with the use of asset managers,
investment bankers, and other providers of professional
services under any programs to assist troubled financial
institutions. The Committee will continue to monitor Federal
regulators' efforts to promote and preserve minority-owned
financial institutions, including the steps taken to implement
the goals outlined in a report issued by the Government
Accountability Office (GAO) entitled, ``MINORITY BANKS:
Regulators Need to Better Assess Effectiveness of Support
Efforts,'' (GAO-07-6) in October 2006.
Money Laundering and the Financing of Terrorism. The
Committee will review enforcement of anti-money laundering laws
and regulations. The Committee's work in this area will include
an examination of (1) the costs and benefits of ongoing
regulatory and filing requirements, and (2) opportunities to
decrease the burden of complying with these and similar
statutes without impairing the operations of law enforcement.
The Committee will also monitor the Office of Terrorism and
Financial Intelligence, to ensure that adequate resources are
applied efficiently, and in particular will monitor the
effectiveness of the Financial Crimes Enforcement Network
(FinCEN) and ongoing changes at the Office of Foreign Assets
Control (OFAC). The Committee will also monitor the practice of
data mining and examination of personal financial information
conducted by government agencies, to ensure that an appropriate
balance is struck between law enforcement priorities and the
protection of civil liberties.
Money Service Businesses' Access to Financial Institution
Services. The Committee will examine why financial institutions
continue to sever their relationships with Money Services
Businesses (MSBs) and assess the effectiveness of FinCEN
regulatory guidance to both MSBs and financial institutions,
and review actions that regulators can take to ensure that such
MSBs are not denied access to the banking system.
New Technologies and Cash Alternatives. The Committee will
examine cash alternatives, such as prepaid credit cards, the
use of telephones to transfer and hold sums of money, websites
that serve as alternatives to the banking system, and informal
money transfer systems, businesses or networks, to determine
their susceptibility to money laundering and terrorism
financing, and other financial crimes.
Appraisals. The Government Accountability Office in a 2003
study found that 69 percent of states need more staffing for
appraisal industry oversight, and 40 percent needed more
resources to support related litigation efforts. Since then,
anecdotal media reports about appraisal fraud, lender pressure,
and faulty appraisals have continued to grow. The Committee
will examine these matters, the effectiveness of the Appraisal
Subcommittee of the Federal Financial Institutions Examination
Counsel in overseeing State-based appraisal enforcement and
licensing programs, and the need for appraisal regulatory
reform. It will also explore the implementation of the
appraisal independence standards adopted by the Federal Reserve
in its 2008 rulemaking under the Home Ownership and Equity
Protection Act.
Capital Markets and Securities
Reforming Oversight of Financial Services. The Committee
will assess the effectiveness of the current regulatory regime
for the financial services industry and work to establish a
more efficient oversight structure that may include a systemic
risk regulator. As a part of this effort, the Committee will
consider whether and how best to eliminate duplicative
oversight functions among agencies, consolidate regulatory
functions where appropriate, prevent charter shopping, and
impose oversight over previously unregulated or lightly
regulated activities, products, and market participants. The
Committee will also review proposals to combine securities and
futures regulation, establish appropriate new safeguards for
investment banking functions, and set uniform standards for and
combine the regulation of broker-dealers and investment
advisers.
Derivatives and Credit Default Swaps. The Committee will
monitor market developments regarding over-the-counter
derivatives, including credit default swaps. In its
examinations, the Committee will specifically explore the need
to create new statutory and regulatory safeguards to mitigate
possible systemic risks posed by these products. The Committee
will also examine the efforts of regulators and dealers to
create credit default swap clearing platforms as a way to
manage this risk.
Oversight and Restructuring of the Securities and Exchange
Commission (SEC). The Committee will carefully examine the
operations and organizational structure of the SEC, placing an
emphasis on its supervisory and inspection functions. The
Committee will additionally consider and review proposals to
enhance the overall effectiveness of the agency in light of
recent scandals and the ongoing turmoil in the securities
markets. Part of those discussions will include an evaluation
of the sufficiency of the SEC's available resources and
staffing levels. The Committee will also consider the impact of
separating the SEC's exam and policy functions and whether such
functions should be consolidated. The Committee will also
consider how the SEC fits into the broader regulatory
restructuring framework the Committee will pursue.
Securities Fraud. In light of the December 2008 emergence
of a $50 billion Ponzi scheme committed by Bernard Madoff's
financial services firm, the Committee will review the failure
to detect this massive securities fraud particularly, as well
as other smaller securities frauds generally. As part of its
comprehensive review of financial services regulation, the
Committee will also scrutinize the internal operations of the
SEC, especially its compliance, inspections, examinations, and
enforcement functions.
Impact of Emergency Economic Stabilization Act (EESA) on
Capital Markets. The Committee will closely monitor the
Administration's implementation of the $700 billion provided
for in the EESA to determine whether the program is having its
desired effect of easing the credit crisis. In its reviews, the
Committee will consider whether the Administration uses funds
within the Troubled Asset Relief Program (TARP) to satisfy the
statutory objectives, including mortgage foreclosure prevention
efforts, whether the Administration vigorously pursues EESA's
executive compensation limitations, and whether banks receiving
TARP funds increase lending efforts. The Committee will also
focus on the auto companies who received aid via TARP to ensure
that they establish viability plans and spend taxpayer dollars
wisely.
Loan Modifications in Securitized Pools. As a part of its
ongoing efforts to mitigate foreclosures, the Committee will
continue to consider methods to encourage and facilitate
sustainable modifications of mortgages that have been
securitized by servicers.
Auction Rate Securities. The Committee will continue to
monitor the efforts of the SEC, the Financial Industry
Regulatory Authority, state securities regulators, and other
law enforcement agencies to reach settlements with financial
institutions to buy back illiquid auction rate securities from
retail investors. The Committee will also examine the sales
practices--particularly with respect to disclosure concerning
the liquidity of the securities--as well as the training and
education of broker-dealers that sold auction rate securities
to investors, including those securities issued by
municipalities and student lenders.
Equity/Options Markets. The Committee will review recent
developments in the U.S. equity and option markets that are
increasingly made up of global, for-profit, shareholder-owned
and multi-product institutions. The Committee will explore the
impact that the ongoing credit crisis has had on exchange
trading system volatility. It will also review the impact that
the removal of the uptick rule and short-selling restrictions
may have had on liquidity. The Committee will additionally
study the growth of the options market and efforts of the U.S.
options markets to implement decimal pricing for quoting
options contracts. Finally, to better protect investors, the
Committee will reexamine the need for legislation to permit the
effective cross-margining of futures and securities products.
Mutual Funds. The Committee will review the current state
of regulation of investment companies and their advisors with
respect to mutual fund operations, governance, disclosure, and
sales, including the impact on investors of recent rule changes
and court decisions. The Committee also will review the
effectiveness and efficiency of the approval process for new
products, such as exchange-traded funds. In addition, the
Committee will continue to monitor the impact of the credit
crisis on money market mutual funds, the stability provided by
the Treasury Department's Guarantee Fund, and the liquidity of
auction rate preferred stock issued by closed-end funds.
Covered Bonds. Due to the success of covered bonds in other
countries, the Committee will continue to monitor the emergence
of covered bonds as a potential tool to ease the strain in U.S.
capital markets. The Committee will review the potential for
covered bonds to increase mortgage financing, improve
underwriting standards, and strengthen U.S. financial
institutions by providing a new funding source that could
diversify their overall portfolio. The Committee will also
examine the treatment of covered bonds as qualified financial
contracts with insured depository institutions.
Public Company Accounting Oversight Board (PCAOB). The
Committee will review the effectiveness of the PCAOB in
responding to the concerns of capital markets participants. The
Committee will review the PCAOB's oversight of public company
auditors, including reforms of auditing standards and the
results of the PCAOB's inspection program. The Committee will
also explore expanding the PCAOB's oversight to include
auditors of broker-dealers, previously excluded from the
regulatory regime, and the impact this increased oversight may
have on the PCAOB's budget and funding. In conjunction with
that change, the Committee will consider other proposals to
improve oversight of auditors more broadly.
Financial Accounting Standards Board (FASB). The Committee
will review FASB's responsiveness to all segments of the
capital markets, FASB's relationship with the SEC, and
proposals to enhance Congressional oversight of the FASB. The
Committee will monitor and review the work of the FASB to
improve financial accounting standards, paying careful
attention to the appropriate form for standards and the need
for additional guidance concerning the development of standards
regarding market valuations for accounting purposes.
Convergence of International Accounting Standards. The
Committee will review efforts by the SEC and the FASB to
achieve robust, uniform international accounting standards. The
Committee will also monitor the SEC's plans to incorporate
those standards as a part of U.S. financial reporting
requirements.
Mark-to-Market Accounting. In conjunction with regulators,
the Committee will review mark-to-market accounting rules and
consider whether there is a need for: (i) clearer and more
specific guidance; (ii) new and additional changes to the
current standard; and/or (iii) viable alternatives exist to
pricing distressed assets in an inactive market, such as
separating ``liquidity'' and ``credit'' risk. The SEC has
recently issued its EESA-mandated study on mark-to-market
accounting. The Committee will review that study and consider
its conclusions and recommendations, and ensure that the SEC
takes all additional and necessary steps to revisit and address
these issues accordingly. The Committee will examine the extent
to which mark-to-market accounting may have exacerbated the
current credit and market crisis and explore possible reforms
that would revitalize financial institutions, deploy capital
throughout the economy and lead to job creation.
Corporate Governance. The Committee will review
developments and issues concerning corporate governance in
public companies, including proposals to increase
accountability to shareholders through enhanced shareholder
access to management's proxy, shareholder nomination of
directors, and majority voting. In addition, the Committee will
review the role of proxy advisory firms in the shareholder
voting process. The Committee also will review issues raised
with respect to the integrity of the shareholder voting
process. Additionally, the Committee will monitor the SEC's
regulatory proposals for enhanced disclosure regarding
executive compensation and other corporate governance issues.
Executive Compensation. The Committee will review proposals
to increase accountability to shareholders in public companies
with regard to executive compensation. The Committee will also
generally explore other current executive compensation and
disclosure issues. In addition, the Committee will focus
special attention on ongoing compliance with and the impact of
the executive compensation restrictions imposed on institutions
participating in programs established under the EESA.
Oversight of Self-Regulatory Organizations (SROs). As a
part of its comprehensive review of the oversight of the
financial services industry, the Committee will examine the
effectiveness of SROs in today's markets and assess the impact
of SRO mergers on the oversight of securities markets, market
participants, and investors. The Committee also will consider
limitations or regulatory gaps in the current SRO system and
ways to streamline and strengthen the regulatory, compliance,
examination, and enforcement structure. This review will
additionally examine the impact of mandatory arbitration
requirements on securities investors, as well as the balance,
fairness, and efficiency of the current arbitration system.
Hedge Funds and Private Pools of Capital. The Committee
will examine the current state of the hedge fund, private
equity and alternative investment industry. The Committee will
review the role hedge funds and private pools of capital serve
in the capital markets, and their interaction with investors,
financial intermediaries, and public companies. The Committee
will also examine issues related to pension funds' investments
in hedge funds. The Committee will further consider whether
hedge funds should be subject to greater oversight under a
revised regulatory regime. Finally, the Committee will examine
whether hedge funds and other private pools of capital may have
contributed to and had an effect on the ongoing credit crisis.
Federal/State Allocation of Enforcement Responsibilities.
The Committee will examine the impact of several pieces of
legislation over the last decade streamlining securities
registration and allocating responsibilities between state and
Federal authorities. In particular, the Committee will examine
the impact of these laws on the enforcement of the securities
laws and whether loopholes have been created that permit
fraudulent securities offerings to escape either Federal or
state law enforcement. The Committee will also examine whether
there is a need to raise the threshold for investment adviser
registration--currently those advisers who have over $25
million in assets under management--to allow the SEC to better
focus on the largest investment advisers and the states on the
smaller advisers.
Capital Allocation to New Technologies. For years, the
United States has supported the Overseas Private Investment
Corporation to promote growth in emerging markets abroad. In
order to now promote long-term, sustainable economic growth and
productivity at home, the Committee will explore how to create
incentives in the capital markets aimed at facilitating the
growth of emerging innovative technologies and promising
industrial sectors.
Business Development Companies (BDCs). The Committee will
examine the regulations governing BDCs, which could play a
larger role in the nation's economic recovery. The Committee
will also continue to monitor BDCs' minimum capital
requirements. Given the current credit crisis, the Committee
may consider proposals related to altering the BDCs' required
leverage ratios.
Credit Rating Agencies. The Committee will monitor the
SEC's ongoing implementation of the Credit Rating Agency Reform
Act, which became effective in 2007. The Committee will also
examine ways to limit the conflicts associated with the way
credit rating agencies are compensated, approaches to increase
their accountability and the possibility of regulatory fee
assessments. In addition, the Committee will examine the
current methodology for rating tax-exempt municipal bonds and
consider possible changes to the Credit Rating Agency Reform
Act to ensure the ratings on municipal bonds accurately reflect
the risk of loss posed to an investor.
Securities Investor Protection Corporation (SIPC). The
Committee will examine the operations, initiatives, and
activities of SIPC, and possible opportunities to better
protect investors in today's volatile markets. In light of
SIPC's exposure to the failure of Bernard L. Madoff Investment
Securities, the Committee will examine SIPC's existing
reserves, access to private and public lines of credit,
coverage levels, and its prior decision to significantly lower
the annual assessments of participating broker-dealers.
Fair Fund. The Committee will examine the operations of the
Fair Fund established under the Sarbanes-Oxley Act and the
success of Federal regulators in implementing the Fair Fund.
The Committee also will review options for expediting
collection of civil fines and ill-gotten gains from corporate
wrongdoers and the distribution of recovered amounts to
defrauded investors.
Business Continuity Planning/Critical Infrastructure
Protection. The Committee will monitor the implementation of
the Interagency Paper on Sound Practices to Strengthen the
Resilience of the U.S. Financial System as well as the related
efforts of all participants in the securities industry to
improve business continuity planning to protect investors
against the effects of natural disasters, terrorism events, and
pandemics. The Committee will also review the impact of global
mergers and alliances and their impact on business continuity
planning. The Committee will additionally review the Government
Accountability Office's work related to planning and
preparation efforts of financial organizations to minimize the
disruptions of critical operations in the event of a pandemic
and the ability of the United States telecommunication
infrastructure to support telecommuting during a pandemic.
Sarbanes-Oxley Act of 2002. The Committee will continue to
monitor the impact of the Sarbanes-Oxley Act on investors,
public companies--particularly non accelerated filers--and
markets, particularly with respect to the ongoing credit and
financial markets crisis. The Committee will review the efforts
of the SEC and PCAOB to improve the efficiency of
implementation of the internal control requirements under
section 404 of that Act, the impact of the Act's corporate
governance reforms, and the adequacy of investor protections
provided by the Act generally.
Global Competitiveness of U.S. Financial Markets. The
Committee may examine studies, concerning the competitive
position of U.S. financial market participants. The Committee
also will assess proposals to enhance the competitiveness of
U.S. markets, including those to streamline and consolidate
regulation and oversight of U.S. financial markets,
institutions, and exchanges.
Municipal Securities. The Committee will review the state
of the $2.5 trillion municipal securities market that is
accessed by more than 55,000 state and local issuers including
present efforts to make the municipal bond market more
efficient and improve issuers' access to capital. The Committee
will also examine how different segments of the market are
regulated including the role of independent financial advisors,
including those involved in derivative transactions, and
disclosure requirements. The Committee will also examine the
Municipal Securities Rulemaking Board's recently launched
Electronic Municipal Market Access (EMMA) document and real-
time trade price database of municipal securities.
Government Sponsored Enterprises
Charter Restructuring for Government Sponsored Enterprises
(GSEs). On September 7, 2008, the Federal Housing Finance
Agency placed Fannie Mae and Freddie Mac into conservatorship.
As part of this conservatorship, the two GSEs have signed
contracts to issue new senior preferred stock to the Treasury,
which has agreed to purchase up to $100 billion of this stock
from each of them. The decision to place the two GSEs into
conservatorship has raised questions about their public-private
organizational structure, as well. The Committee will therefore
examine proposals to modify the statutory charters of the GSEs.
GSE Regulatory Reform. The Committee will monitor the
Federal Housing Finance Agency, the new regulator for the
Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, and
will consider ways to improve the effectiveness of the new
regulator. The Committee will also consider, as part of its
comprehensive review of the oversight of the financial services
industry, proposals to improve, or otherwise alter the purpose
and functions of the GSEs and their appropriate roles in the
mortgage market.
Federal Home Loan Bank (FHLB) System. The Committee will
monitor the capital requirements, financial health, and
stability of the FHLB System, as well as the FHLB System's
ability to fulfill its housing mission and provide liquidity to
the cooperative's member banks in a safe and sound manner
during the ongoing credit crisis. The Committee will pay
particular attention to recent reports that several of the
Federal Home Loan Banks may fall below required capital levels
as a result of troubled mortgage assets held on their books.
GSE Appraisal Standards. The Committee will examine the
implementation of the Home Valuation Code of Conduct by Fannie
Mae and Freddie Mac and how it affects the appraisal industry.
It will also review the implementation of a new regulation by
the Federal Housing Finance Agency requiring the use of loan-
level appraiser identifiers to combat fraud in mortgage
lending.
FHLB Community and Economic Development. The Committee will
focus on the efforts to advance community and economic
development within the FHLB System, including the
implementation of the enhanced targeted economic development
lending for small business, small farms, and small agri-
businesses allowed under the Gramm-Leach-Bliley Act and of the
performance of the FHLBs in implementing the community
investment cash advance regulation. The Committee will review
the effects of the estimated $8 billion in community-related
financing the FHLBs have already provided to community
financial institutions and examine whether the FHLBs can
accomplish more to help the nation overcome the continuing
economic crisis.
Resolution Funding Corporation (REFCorp) Payments. The
Committee will monitor the efforts of the housing GSEs to pay
the obligations of REFCorp established to cover the costs of
resolving the savings-and-loan crisis and the policy
implications for the GSEs upon the satisfaction of the
remaining REFCorp debts.
Housing
Mortgage Foreclosures and Loan Modifications. The Committee
will continue its comprehensive focus on Federal efforts to
address the rising delinquency and foreclosure rate, including
hearings and legislation designed to avert foreclosures.
Agencies and programs of focus may include the Federal Housing
Administration (including Hope for Homeowners and FHA's ongoing
refinance efforts), Fannie Mae, Freddie Mac, and the Federal
Home Loan Banks, Federal programs which provide funds for
foreclosure prevention, housing counseling, foreclosure
protections, purchase of foreclosed properties, and efforts to
spur appropriate levels of home purchase. The Committee will
also consider proposals to protect the rights of bona fide
tenants subject to foreclosure.
The Committee will also conduct a hearing or a series of
hearings on the status of mortgage loan modifications as a
means of helping struggling borrowers to avoid foreclosure.
Successful mortgage modifications change the terms of the loan
so that it is more affordable to the borrower over the long
term. The Committee will also examine systematic approaches to
mortgage modification, such as the program implemented by the
Federal Deposit Insurance Corporation at IndyMac Federal Bank
and the recently announced Federal Reserve Homeownership
Preservation Policy. In addition, the Committee will review
foreclosure prevention plans originated from the private
sector, such as HOPE Now. As part of that examination, the
Committee will seek to define the criteria in determining which
borrowers should receive help in modifying their loans. For
those that are determined to be ineligible for loan
modifications, the Committee will investigate appropriate
alternatives for providing assistance.
In its examination of foreclosure prevention and loan
modification proposals the Committee will also take into
account that most borrowers continue to make on-time payments
in spite of economic hardship and will consider the moral
hazards associated with systematic loan modification and
foreclosure mitigation.
Housing Preservation. The Committee will consider proposals
to preserve federally assisted housing, including the challenge
of maintaining affordability for those federally assisted
properties scheduled to experience mortgage maturities in the
next decade. The Committee may review HUD's policies and
performance in approving proposals by owners to preserve and
rehabilitate older assisted housing projects. In addition, the
Committee may also explore other related topics, such as
prepayment policies, troubled projects, renewal of expiring
project-based voucher contracts and transfer of project-based
section 8 contracts. The Committee will continue to monitor the
role of the Office of Affordable Housing Preservation in
overseeing and preserving HUD-assisted multi-family housing.
The Committee may examine HUD's property disposition program,
and the extent to which HUD has worked with local housing
authorities and non-profit organizations to preserve the
affordability of HUD's inventory of multi-family housing
following foreclosure by the borrower. Further, the Committee
may review the circumstances by which current owners choose to
leave the program and how incentives can be used, coupled with
a reduced regulatory burden, to encourage continued
participation by the private sector. The Committee will review
programs aimed at preservation to determine the cost effective
and efficient means of promoting preservation including the
impact of one-for-one replacement policies, prohibitions on
demolition of existing properties and transfer of subsidy from
one property to another.
FY 2010 Budget for the Department of Housing and Urban
Development, the Rural Housing Service, the Neighborhood
Reinvestment Corporation and the National Flood Insurance
Program. The Committee will conduct a hearing or a series of
hearings to consider Administration FY 2010 budget proposals
for these agencies and programs, including receiving testimony
from relevant agencies. Such hearings will concentrate on the
Department's efforts to be responsive to current market
challenges as well as ensuring decent affordable housing.
During these hearings the Committee will examine spend out
rates for assisted programs in addition to program oversight
and accountability measures.
Public Housing. The Committee will conduct a hearing or a
series of hearings on the state of public housing programs,
including, but not limited to, the public housing operating and
capital funds the HOPE VI program, current spend-out rates and
potential funding sources with which public housing agencies
can supplement their efforts to maintain and operate public
housing units. The Committee also will review HUD's
implementation of the Quality Housing Work Responsibility Act
of 1998 (QHWRA); the Community Service requirement; the
performance to date of Moving to Work agencies; and areas where
unnecessary regulation could be curtailed, while fully
maintaining protections for tenants.
HOPE VI. The Committee will review the HOPE VI program and
the need for reauthorization, including, but not limited to,
the needs of distressed public housing developments, a
prohibition on demolition-only grants, a one for one
replacement requirement, tenant eligibility standards on the
availability of decent and affordable housing and the benefits
of mixed-use communities. The Committee will review the
progress by past HOPE VI award recipients of implementing and
completing their revitalization plans, including the amount of
funds that remain unspent in some HOPE VI accounts.
Additionally, the Committee will examine the effects of HOPE VI
revitalization projects on tenants, including the ability of
tenants to find alternative housing during rehabilitation, as
well as their ability to return once rehabilitation is
completed.
Affordable Housing Production. The Committee may conduct a
hearing on preserving a dedicated source of funding and
identifying additional funding mechanisms for the newly created
National Housing Trust Fund. The Housing Trust Fund was
established to construct, maintain and preserve affordable
rental housing for the lowest income families in both rural and
urban areas. The Committee will review HUD's progress in
developing regulations to implement the Trust Fund, including
oversight policies for Trust Fund grantees, and whether
additional legislation is required to clarify and enhances
issues that cannot be resolved by regulation.
Housing Tax Credit Programs. The Committee may conduct a
hearing or series of hearings on legislative and administrative
proposals to address the recent dislocations in the funding of
Low Income Housing Tax Credit (LIHTC) program, including
legislative efforts to address such dislocations. The Committee
may conduct hearings reviewing the implementation of provisions
included in Public Law 110-289 which were designed to
facilitate the use of housing tax credits in conjunction with
HUD and Rural Housing Service programs. In any evaluations of
reforms to the LIHTC program the Committee will examine the
role of syndicators and investors in affordable housing
production.
Federal Housing Administration (FHA). The Committee will
conduct hearings on the FHA single family loan program, on
issues which may include the financial status of the program,
the recent growth in loan volume, oversight of FHA loan
originators, FHA loan limits, implementation of provisions
enacted under Public Law 110-289, FHA loss mitigation, and the
recently eliminated FHA gift downpayment program. In hearings
the Committee will also examine legislative proposals affecting
the financial viability of the FHA insurance fund. Other areas
of focus will include the FHA reverse mortgage loan program and
the Title 1 manufactured home loan program, both of which
underwent major reforms as part of Public Law 110-289. In
addition, the Committee will continue to monitor FHA's ability
to oversee FHA-approved lenders/licensees, employ appropriate
technology and manage its human capital.
Section 8 Housing Choice Voucher Program. The Committee
will resume its efforts to complete comprehensive reform of the
Section 8 voucher program, through efforts to enact the Section
8 Voucher Reform Act (SEVRA).
Rural Housing. The Committee will consider proposals to
create a revitalization program at the Rural Housing Service
(RHS) to preserve and rehabilitate affordable housing under the
Section 502 single family direct and guaranteed loan programs
as well as the Section 514, 515 and 516 multi-family housing
programs. The Committee will monitor the loan commitment
authority of Section 502 programs and examine innovative
proposals to address potential funding shortfalls in all RHS
single family and multifamily programs. The Committee will also
review the effectiveness of HUD programs that address the
various affordable and basic housing needs of rural and
colonias communities.
Section 202 Elderly and Section 811 Disabled Housing. The
Committee will review the Section 202 and 811 supportive
housing programs for the elderly and disabled, including
proposals to facilitate the timely production of new units,
preserve the existing housing stock of 202 and 811 projects and
increase refinancing flexibility for such projects to carry out
needed rehabilitation of older properties. The Committee will
continue to monitor the ease of use for layered financing
limited partnership arrangements between non-profit and for-
profit project sponsors. Additionally, the Committee will
explore the availability and provision of supportive services
to residents.
Homelessness. The Committee will review the McKinney-Vento
homeless assistance program, including resuming its effort to
enact comprehensive homeless reform legislation, as was passed
by the House last Congress, the ``Homeless Emergency Assistance
and Rapid Transition to Housing Act of 2008.'' The Committee
will also review HUD homeless assistance programs and services
for veterans who are homeless or at risk of becoming homeless.
The Committee will look at the impact of homeless programs on
families and children.
Native American Housing. The Committee will review issues
arising out of Native American housing programs at HUD,
particularly the implementation of the Native American Housing
and Self Determination Act (NAHASDA--Public Law 110-411), and a
report to be published by the General Accountability Office as
required by the legislation.
Neighborhood Stabilization Program. The Committee will
conduct a hearing or a series of hearings on the Neighborhood
Stabilization Program, including whether there is a need for
statutory changes regarding the program's efficiency and
effectiveness. The Committee will consider the need for
alterations to the funding formula, the program spend out rate,
as well as the role of nonprofits and local government capacity
in carrying out the program. The Committee will examine the
effectiveness of accountability language inserted in Public Law
110-289 that was designed to ensure proper transparency and
oversight of eligible entities for Neighborhood Stabilization
funding.
Community Development Block Grants. The Committee will
conduct a hearing or a series of hearings on the Community
Development Block Grant (CDBG) program, including the role of
Congressional input and oversight in CDBG projects, the use of
block grant funds at the local level, and program waivers. The
Committee will also review the impact of environmental and
economic benefit mandates on the timely expenditure of CDBG
funds. The Committee may also review the current allocation
formula for CDBG funds.
Federal Housing Response to Natural Disasters. The
Committee will continue to review the progress of housing
reconstruction in the Gulf Coast, including the availability of
affordable housing for low-income families, the impact of
disasters on public and assisted housing, the ability of
displaced residents to return home and the impact on
surrounding communities. In addition, the Committee will
continue to examine the role of government in long-term
disaster housing and conduct oversight of recovery efforts in
effected areas receiving Federal recovery assistance. The
Committee will review the role of government in long-term
housing, as well as economic and infrastructure recovery of the
Gulf Coast region and the ability of homeowners to rebuild,
including the availability of homeowner's insurance. Finally,
the Committee will examine potential funding sources for the
production, repair, and reconstruction of affordable housing in
areas affected by natural disasters.
The Committee will also continue to monitor efforts by HUD
and the Federal Emergency Management Agency (FEMA) to
coordinate efforts to provide funding to public housing
developments that are damaged or destroyed by natural disaster
or emergencies. Such review will be in coordination with the
Committee on Transportation and Infrastructure, which has
jurisdiction over FEMA.
National Flood Insurance Program (NFIP). During the 110th
Congress, the House passed the Flood Insurance Reform and
Modernization Act of 2007, H.R. 3121. The Committee remains
committed to the comprehensive reform and long-term
reauthorization of the NFIP. To this end the Committee will
continue its general review of NFIP participation, rate
setting, map modernization, loss mitigation, claims handling,
and rate subsidization for repetitive loss properties and
second homes. The Committee will continue its efforts to
achieve reforms that phase-in more actuarially sound premium
rates in the short term.
HUD Mission, Management Reform and Staffing. The Committee
will review the overall mission, organization, human resources
and information technology capabilities of the Department of
Housing and Urban Development to determine whether the
Department is meeting and addressing housing issues in the most
efficient manner. The Committee will continue to track the
transparency, accountability and oversight protocols for all
HUD grant and loan recipients, including non-profit
organizations. The Committee will consider the need for
additional personnel to properly administer and monitor new and
expanded HUD programs designed to address the current mortgage
foreclosure crisis and increasing affordable housing needs.
Project-Based Section 8 Program. The Committee will
continue to review the timeliness of Housing Assistance
Payments for project-based Section 8 properties and may review
the need to make statutory changes to ensure the timeliness of
Housing Assistance Payments.
Housing Counseling. The Committee will review current
housing counseling programs, which includes Federal, state,
private and nonprofit efforts, to help ensure that such
programs are an effective tool in minimizing defaults and
foreclosures. The Committee will also consider whether
improvements could be made to enhance consumer education as
well as prevent abusive lending practices.
Fair Housing. The Committee will review a report to be
published by the Government Accountability Office regarding
fair lending enforcement by regulatory agencies, including HUD
and may hold a hearing, or series of hearings, on the GAO
report.
Green Development. The Committee will monitor proposals to
promote green development in Federally assisted housing,
including legislation from the last Congress entitled the Green
Resources for Energy Efficient Neighborhoods Act of 2008, and
any voluntary, private sector green building standards already
in place that encourage cost effective energy efficiency for
affordable housing.
Housing and Services. The Committee will conduct a hearing
or a series of hearings on the delivery of housing-based social
services, including child care, education, and employment
training for low income families, and mental health and
substance addiction services for chronically homeless
individuals. The Committee will also examine the extent to
which affordable housing developers and their social service
provider partners face challenges in financing these services.
Oversight of Federal Housing Programs. The Committee will
hold oversight hearings on other Federal housing programs run
by HUD and the Rural Housing Service. In addition to examining
whether these programs are meeting their housing missions, they
will focus on the costs, spend out rates and oversight and
accountability measures governing these programs.
Real Estate Settlement Procedures Act (RESPA). The
Committee may review issues related to RESPA including
implementation of the RESPA rule promulgated by HUD in November
2008. The Committee will also examine HUD's recommendations for
statutory reforms to RESPA.
Escrows. The Committee will generally explore problems
related to establishing and servicing escrow accounts. This
examination will also focus on the need to advance Federal
reforms to require escrow accounts for those homeowners with
less-than-perfect credit scores or high-cost mortgages.
Mortgage Broker Licensing and Oversight. The Committee will
monitor implementation of the S.A.F.E. Mortgage Licensing Act
of 2008 which established a mortgage originator licensing
system and registry to better protect homebuyers.
Impact of Bankruptcy Cram Down on the Mortgage Market. The
Committee will conduct oversight on the impact of bankruptcy
cram down legislation on the mortgage market, in general, and
specifically on the programs operated by the FHA and the RHS.
The oversight review will include the impact of bankruptcy cram
down on continued lender participation, the solvency of the FHA
Mutual Mortgage Insurance Fund and the solvency of the RHS
Section 502 program. The Committee will also conduct oversight
on the impact of cram down legislation on primary mortgage
interest rates, overall access to mortgage credit, especially
for borrowers with weaker credit histories and the future of
the GSE's and the securitization market.
Oversight of Entities Receiving Government Funds. The
Committee will conduct oversight over the use of Federal funds
by non-profits, for-profits and third-party institutions. The
scope of the review will assess the policies and practices of
the agencies under this Committee's jurisdiction (HUD, RHS, and
Neighborworks) to ensure that eligible entities are using
Federal funds for eligible purposes. The Committee will monitor
the agencies' policies to assess and ensure that Federal funds
paid out to these entities are being used for their intended
purposes and in a cost effective and efficient manner. In
addition, the Committee will look at specific requirements and
procedures in place in agencies under the Committee's
jurisdiction, to evaluate entities' applications to participate
in government programs, particularly with respect to the
agency's ability to identify illegal activities on the part of
applicants.
Insurance
Insurance Regulatory Modernization. The States have long
had the primary responsibility for regulating the business of
insurance. In recent years, there has also been both a state
and Federal effort to modernize and improve insurance
regulation. During the 110th Congress, the Capital Markets
Subcommittee held a series of hearings on reforming insurance
regulation and approved a number of incremental reforms,
including a bill to strengthen the corporate governance
standards and improve the effectiveness of risk retention
groups, as well as other legislation described below. In the
111th Congress, the Committee will reconsider these previously
approved reforms and, as part of its ongoing comprehensive
review of the oversight of the financial services industry,
will evaluate new policy alternatives for modernizing insurance
regulation.
Financial Guarantee Insurance. The financial guarantee
insurance industry lies at the center of the ongoing credit and
liquidity crisis that has roiled financial markets in recent
months. Turmoil within this sector has caused tens of billions
of dollars of losses to investors and financial institutions,
and an unraveling of many secondary debt markets. The Committee
will therefore monitor the ongoing efforts of the financial
guarantee insurance industry to recapitalize itself and the
efforts of individual financial guarantee insurers to restore
their triple-A credit ratings. The Committee will also review
the consequences of the actions by financial guarantee insurers
to expand their business model beyond traditional insurance
into financial products guaranteeing the credit worthiness of
more complex securities, including those backed by subprime
mortgages. The Committee will further examine the ability of
municipal issuers to access the capital markets in an
unfavorable credit environment. In this regard, the Committee
will explore the possibility of Federal participation in the
municipal bond or reinsurance marketplace.
Insurer Access to the Troubled Asset Relief Program (TARP).
The Federal Government has taken unprecedented measures to
rescue American International Group (AIG), a financial services
holding company with major insurance components. AIG has been
given access to more than $170 billion in taxpayer funds,
including $40 billion from TARP under the Emergency Economic
Stabilization Act. Some insurance companies (generally life
insurers and financial guarantee insurers) have also sought
access to Federal bailout funds through the TARP. To date, the
Treasury Department has approved Federal assistance for
Federally-regulated entities only. As a result, numerous
insurance companies have recently sought to convert themselves
into savings-and-loan holding companies subject to Federal
regulation. The Committee will review the need for insurer
access to TARP funds and the resulting implications of any
Federal aid to insurers.
Regulation of Insurer Systemic Risks. As part of its
overhaul of systemic risk regulation, the Committee will look
at the role insurance plays in the economy and its
interconnectedness with other sectors of the financial services
system. As noted above, insurers offering financial guarantee
products, like AIG and the municipal bond insurers, have
demonstrated that insurers and their holding companies can
create systemic risks. The Committee therefore will work to
identify solutions aimed at mitigating the systemic risks posed
by insurers or their holding companies.
Terrorism Risk Insurance. During the 110th Congress,
Congress revised and reauthorized the Terrorism Risk Insurance
Program through December 31, 2014 with passage of the Terrorism
Risk Insurance Program Reauthorization Act of 2007. In order to
ensure the continued availability of terrorism insurance
coverage and protect the economic security of the United
States, the Committee will review Treasury Department's
implementation of new and revised elements of the program.
Furthermore, the Committee will monitor the continued impact of
the program on the terrorism insurance marketplace and the
utilization by the marketplace of the coverage provided through
the program, paying particular attention to: (i) The
applicability of the program to single-risk, captive insurers
created since 2002; (ii) the implications of the program's
failure to cover nuclear, chemical, biological and radiological
events; and (iii) lessons learned from the program that relate
to the private sector's capacity to provide insurance coverage
for the risk of extreme catastrophic events and the larger
topic of insurance regulatory reform.
Agent and Broker Licensing Reform. As part of the Gramm-
Leach-Bliley Act, Congress sought to establish greater
reciprocity or uniformity thresholds for non-resident producer
licensing. Although many States have made considerable progress
in streamlining their producer licensing systems, during the
110th Congress the House passed H.R. 5611, a bill to create the
National Association of Registered Agents and Brokers (NARAB)
and further streamline insurance producer licensing by allowing
NARAB to establish minimum licensing reciprocity standards
through which an insurance agent or broker licensed in one
State could automatically qualify as a broker or agent in any
other State. The Committee will continue its incremental
efforts to facilitate insurance producer licensing within the
current regulatory system. As part of the larger topic of
financial services regulatory reform, the Committee may
consider other measures intended to promote even greater
insurance producer licensing uniformity and reciprocity while
still assuring sufficient consumer protections.
Surplus Lines and Reinsurance. In the 109th and 110th
Congresses, the House passed the Nonadmitted and Reinsurance
Reform Act. To promote greater efficiency in the surplus lines
and reinsurance marketplaces used by large and sophisticated
entities to obtain coverage against losses, the Committee will
continue its review of these matters and renew its efforts to
achieve positive incremental reforms that benefit insurance
consumers.
Guarantee Funds. To protect policyholders in the event of
an insolvency of an insurer, each State has in place a system
of guarantee funds. In this period of growing financial
insecurity, the Committee will monitor the effectiveness of
these systems to protect policyholders in the event of an
insurer's insolvency and study whether changes should be made
to the present guarantee system if broader changes are made to
the regulation of insurance.
Insurance Investments. Insurance companies seek to match
long-term obligations with long-term investments. In doing so,
many insurance companies invest in real estate, with an
emphasis on commercial real estate. As the real estate sector
faces unprecedented loss, life insurance companies sought
capital and surplus relief from State regulators in late 2008.
The Committee will monitor the financial health of insurance
companies. Separately, the Committee may also examine the two
investment pools in Massachusetts, one for property-and-
casualty insurers and one for life insurers, working to help
fund the development of affordable housing, commercial and
industrial real estate, small business, and other community
projects.
Insurance Information. After the September 11, 2001,
terrorist attacks and Hurricane Katrina, many noted that the
Federal Government lacked an in-house resource for obtaining
information about the insurance industry. The current economic
crisis further points out the significant role insurance can
have in our economy, and the lack of information within the
Federal Government of the industry. The ratings downgrades of
bond insurers in 2007 and 2008 resulted in a tighter credit for
municipalities and other bond issuers, even though the bond
insurers account for only 0.3 percent of the total premium
written for the entire insurance industry. Moreover, the
American taxpayer is now a major shareholder in AIG, after the
unprecedented intervention of the Federal Government into the
financial services holding company to prevent a systemic
collapse. The Committee therefore will continue to review ways
to increase the Federal knowledge base on insurance issues,
including establishing an Office of Insurance Information. Such
a centralized insurance informational resource center within
the Federal Government could help to better coordinate
responses after disasters, enhance international discussions on
insurance issues, and provide expert advice to both Congress
and Federal financial regulators on issues affecting the
insurance industry.
Credit Scoring and Insurance. During the 110th Congress the
Committee examined the use of consumer credit information to
underwrite personal lines of insurance, including automobile
and homeowners insurance. On July 19, 2007, the Federal Trade
Commission also released the first portion of a statutorily
required, two-part report entitled, ``Credit-Based Insurance
Scores: Impacts on Consumers of Automobile Insurance.'' The
pending second portion of that report, addressing homeowners
insurance, will be reviewed by this Committee when it is
completed. The Committee will also continue to monitor the
effects of the use of consumer credit information by insurance
companies to underwrite and rate in all personal lines of
insurance to assess its impact on consumers, including whether
its use is accurate and fair in assessing insurance risks and
whether it is effective in assuring accessibility and
affordability to all consumers.
Natural Catastrophe Insurance. Over the past decade,
insurance markets throughout all regions of the United States
have experienced ever increasing issues surrounding the
availability and affordability of natural catastrophe
insurance. When combined with the complexities of single- and
multi-peril coverage and coverage exclusions, these nationwide
issues of availability and affordability often result in
otherwise insurable properties being uninsured or underinsured
in the event of a natural disaster. Uninsured natural disaster
losses are not only a financial burden to individual property
owners, but impose financial costs on the properties'
inhabitants, private insurers, lenders, and Federal, State and
local governments. To address these interrelated, growing
national issues, the Committee will continue to collect
information and review the general availability, affordability,
and uptake rates of personal and commercial natural catastrophe
insurance across the United States. The Committee will also
continue its study of how those at risk for natural
catastrophes are informed of the availability of Federal
programs and private insurance coverage, and how well
individuals, businesses, and local governments understand the
risks they assume for uninsured disaster losses as a result of
their choices. Further, the Committee will explore existing
programs in foreign countries and the States, as well as
proposals initiated by private market insurers, for providing
insurance or reinsurance for natural catastrophes. Given the
volume and complexity of the information to be collected on
this topic, the Committee may explore the creation of a
commission to gather relevant information and report on a range
of potential legislative, private market, and public-private
solutions to improve the availability, affordability, and
uptake rates of natural catastrophe insurance. While committed
to reforming and reauthorizing the National Flood Insurance
Program for the immediate future, the Committee will include
flood insurance as part of any discussion of natural
catastrophe insurance. Likewise, the Committee will examine
ways to ensure that any comprehensive approach to natural
catastrophe insurance include effective loss mitigation
measures and responsible land management provisions. Finally,
the Committee will consider legislative solutions designed to
maximize the use of private market insurance and minimize the
instability of temporary and extreme fluctuations in the
availability, affordability and utilization of natural
catastrophe insurance.
Retirement Products. Given Americans increased reliance on
personally controlled retirement savings and the proliferation
of increasingly complex retirement products, the Committee will
continue to monitor the response of the insurance industry to
these developments, including review of the expected impact of
the Security and Exchange Commission's recently finalized
indexed annuities rule, Rule 151(A). In its review, the
Committee will explore the ability of financial regulators to
adequately protect consumers of annuity products, especially in
the current volatile markets, and whether any gaps in
functional oversight exist.
Reinsurance. As an essential tool for spreading and
managing risk, reinsurance and its regulation directly impact
the availability and affordability of all insurance coverage
available in the United States. The Committee will review
existing economic and regulatory constraints on the United
States' reinsurance marketplace and seek to identify
legislative approaches designed to foster reinsurance
availability without sacrificing necessary consumer
protections. As part of the larger topic of insurance
regulatory reform, the Committee will also explore alternate
systems of national reinsurance regulation.
International Developments. Though regulated on a State-by-
State basis, the business of insurance has for many decades
transcended State boundaries. The capital pools provided by the
reinsurance industry and the adoption of international trade
agreements have long since made the insurance industry a global
one. For these reasons, the Committee will continue to monitor
developments in international insurance regulation. As part of
the larger topic of insurance regulatory reform, the Committee
will also explore how the current State-by-State insurance
regulatory system fits into an increasingly evolving global
insurance marketplace.
International Finance
Annual Report and Testimony by the Secretary of the
Treasury on the State of the International Financial System and
International Monetary Fund Reform. The Committee will review
and assess the annual report to Congress from the Secretary of
the Treasury on the state of the international financial system
and the International Monetary Fund (IMF). Pursuant to section
613 of Public Law 105-277, the Committee will hear annual
testimony from the Secretary of the Treasury on the contents of
this report, as well as on matters relating to the
international financial institutions and international economic
issues generally. The Committee will also consider the capacity
of the IMF to fulfill its mission in the current global
economic crisis and any requests from the Administration for
legislation to authorize U.S. commitments pursuant to an IMF
reform agreement.
Exchange Rates. The Committee will review and assess the
semi-annual report to Congress from the Secretary of the
Treasury on International Economic and Exchange Rate Policies
pursuant to the Omnibus Trade and Competitiveness Act of 1988.
The Committee will monitor developments related to the exchange
rate policies of the United States' major trading partners and
will pay particular attention to the policies of countries that
seek to maintain a fixed exchange rate for their currencies.
The Committee will assess the effects of these currency
practices on the competitiveness of U.S. firms and on the
stability of the international financial system.
Global Capital Flows. The Committee will monitor the
effects of the flow of capital globally, and in particular,
trends in foreign countries' investments of their large
currency reserves in the United States and other countries. The
Committee will assess the effects of the investment of these
reserves on global financial stability and on multilateral
policy initiatives. The Committee will also assess U.S. and
multilateral policies on the regulation of capital flows.
Trade in Financial Services. The Committee will remain
active in the oversight of trade negotiations and discussions
as they pertain to investment and trade in financial services.
The Committee will also monitor the progress of the United
States' trading partners in meeting their financial services
and investment commitments under existing trade and investment
agreements.
Export-Import Bank of the United States. The Committee will
assess the role of the Export-Import Bank in providing trade
finance particularly in light of the current credit
retrenchment by private sources of trade finance. The Committee
will consider the adequacy of the current authorization level
for Bank lending as well as other potential constraints on the
Bank's ability to play a greater role in filling the gap in
trade finance. The Committee will also closely monitor the
Bank's competitiveness relative to foreign credit agencies
(ECAs), with particular attention to competitiveness with the
export credit practices of countries that are not members of
the Organization for Economic Co-Operation and Development.
International Clean Technology Fund. The Committee will be
prepared to consider a possible Administration request for
funding of the U.S. commitment under the 2008 agreement to
establish an international Clean Technology Fund to be
administered by the World Bank. The Committee will pay
particular attention to the standards and requirements for the
funding of projects under the CTF, including eligibility of
countries, types of projects, eligible technologies and
economic sectors, and the level of funds allocated to any one
country.
Counter-Terrorism Financing Policy. The Committee will
continue to monitor the role of the Treasury Department in
promoting the adoption and implementation of counter-terrorism
standards around the world through the Financial Action Task
Force (FATF), the IMF, and the MDBs as well as the evolution of
the standards themselves as promulgated FATF. The Committee
will also monitor the Office of Technical Assistance at
Treasury, its coordination with the other agencies in the
Terrorist Financing Working Group and its assessment and
alignment of resources in the delivery of counter-terrorism
financing training and technical assistance abroad. The
Committee will also monitor FinCEN and its coordination with
Egmont as our nation's foreign intelligence unit (FIU).
U.S. Oversight Over the International Financial
Institutions (IFIs). The Committee will review U.S.
participation in, and the effectiveness of U.S. policy toward,
the International Financial Institutions, including the
International Monetary Fund, the World Bank, and the regional
development banks.
The Committee will continue to press for increased
accountability, openness and transparency within the
multilateral institutions. The Committee will examine the
importance of public participation in these institutions as a
critical component of effective development and growth, which
includes access to information and documents, as well as
increased consultation with civil society in the development of
the institutions' social and environmental safeguard policies.
The Committee will examine the role of trade, investment
and private sector activity in helping to promote growth and
reduce poverty. It will also explore the essential role of the
state in addressing market excesses and in helping to assure
that the gains of economic growth are more fairly distributed
throughout society.
The Committee will continue to closely examine the World
Bank's policies and operations in areas relating to labor
markets, extractive industries and the expanded collaboration
between IDA and the World Bank's private sector affiliate, the
International Finance Corporation. With regard to labor market
and employment policies, the Committee will continue to closely
examine the ``Employing Workers'' and ``Paying Taxes'' indices
of the World Bank's annual ``Doing Business'' report, and their
implications with regard to the ability of countries to comply
with the labor standards and conventions of the International
Labor Organization and to maintain adequate social safety nets.
With regard to extractive industries, the Committee will
continue to examine standards and policies of revenue
transparency that can help ensure that citizens in resource-
rich countries benefit from the sale of these resources.
With regard to enhanced collaboration between the IDA and
IFC, the Committee will examine how recipient countries can
maintain an appropriate role for the state as these
institutions expand the role of the private sector in
development.
Replenishment of the International Development Association
(IDA) and the African Development Fund (AfDF). The Committee
will work to enact legislation authorizing U.S participation
in, and the commitment of U.S. funds for, the IDA-15 and AfDF-
11 replenishments requested by the Administration.
Replenishment of the Asian Development Fund. The Committee
will consider legislation to authorize the commitment of U.S.
funds for the 10th replenishment of the Asian Development Fund.
In considering the authorization of this replenishment, the
Committee will consider the degree to which the current Asian
Development Bank's Safeguard Policy Update exercise preserves
or strengthens the social and environment policies of the
institution.
International Debt Relief. For many years, this Committee
has worked in a bipartisan way on the issue of debt relief for
the world's poorest countries as an essential component in the
overall effort to help alleviate the desperate poverty and
misery that exists in many parts of the world. Following House
passage of the ``Jubilee Act for Responsible Lending and
Expanded Debt Cancellation'' in the 110th Congress, the
Committee will evaluate the need for expanded debt cancellation
to eligible low-income countries and will continue to examine
the extent to which economic and policy conditionality has
negative consequences, such as deepening poverty, degrading the
environment, and reducing the policy flexibility required for
governments to respond to national interests as conveyed
through democratic processes. In addition, in light of the
findings of a recent GAO report on debt relief, the Committee
will examine the ways in which poverty alleviation through debt
relief is measured, as well as the impact of U.S. arrearages to
IDA on funding for debt relief.
The Committee will closely monitor the dire economic
situation facing the people of Haiti and will consider
appropriate policy responses to help alleviate one of the worst
cases of human misery in the hemisphere.
Institutionalizing Democratic Accountability at the IFIs.
Because international economic institutions like the World Bank
are at some distance from direct democratic accountability, the
Committee will begin to examine ways to increase democratic
participation and accountability within the IFIs. Based on
their charters, the international financial institutions are
accountable to the finance ministers of member countries, who
may not always be impartial representatives of the people. The
Committee will be calling on experts to undertake a study of
various options to improve parliamentary oversight, including
the possibility of forming an international parliamentarian
committee, which would include both donor and recipient
countries, before which officials of the IMF and World Bank
could appear to review their institution's agendas and
procedures.
Sudan Accountability and Divestment Act. The Committee will
hold a hearing to look at the degree to which the Sudan
Accountability and Divestment Act of 2007 has affected the
decisions of individual states and private asset fund managers
to divest Sudan-related assets from their portfolios as a way
of pressuring the government of Sudan to end its systematic
atrocities against the people in the Darfur region.
Strengthening Sanctions Against Iran. Following House
passage of the ``Iran Sanctions Enabling Act'' in the 110th
Congress, the Committee will assess the need to step up
financial pressures on Iran including proposals to remove
certain legal barriers to make it easier for state and local
pension funds and other asset managers to divest their funds
from Iranian investments should they choose to do so.
The Economy, Domestic Monetary Policy, and Technology
The Economy and Its Impact on Living Standards. The
Committee will examine the extent to which changes in the
economy, and in particular changes in labor and capital
markets, as well as changes in public policy, have altered the
way in which policymakers should think about the relationship
between economic growth, productivity growth, and growth in
employment and incomes. The Committee will examine these
relationships in an effort to determine policy responses that
will increase our ability to improve the standard of living for
American families. The Committee will examine the consequences
of taking unprecedented monetary and fiscal policy moves
simultaneously in an effort to stimulate new economic growth,
and attempt both to determine the consequences of such moves
and to discover actions that might be taken to avoid any severe
negative effects.
Conduct of Monetary Policy by the Board of Governors of the
Federal Reserve System. The Committee will hold hearings to
receive the Chairman of the Board of Governors of the Federal
Reserve System's semi-annual reports on the conduct of monetary
policy. As part of this effort, the Committee will review
issues associated with monetary policy and the state of the
economy, including whether the current path of monetary policy
is consistent with the triple goals--maximum employment, stable
prices, and moderate long-term interest rates--set forth in the
Federal Reserve Reform Act of 1977 (Public Law 95-188). The
Committee will continue to monitor the Federal Reserve Board to
see if ways can be found to make its activities more
transparent, consistent with the increased transparency the
institution has shown over the past decade and a half.
Management of Reform of the Federal Reserve System. The
Committee will conduct oversight of the operations of the
Federal Reserve System, including the System's management
structure, its role in providing financial services, its
conduct of monetary policy, and its role as a regulator with
particular attention to compliance with anti-money laundering
and anti-terrorist financing laws and regulations.
Defense Production Act. The Committee will act on
legislation to reauthorize the Defense Production Act (DPA)
before its expiration in 2009. As part of this effort, the
Committee will consider the effectiveness of the DPA
authorities in promoting national security. The Committee's
review of DPA will consider the findings and recommendations of
the Government Accountability Office's June 2008 report,
``Defense Production Act: Agencies Lack Policies and Guidance
for Use of Key Authorities,'' as well as the April 2008
interagency report that was mandated by the 9/11 Commission Act
of 2007. Committee action on DPA will also include
consideration of defense contract offsets and their impact on
the U.S. economy.
Committee on Foreign Investment in the United States. The
Committee will monitor the implementation of the Foreign
Investment and National Security Act of 2007, which reformed
the Committee on Foreign Investment in the United States
(CFIUS). The Committee will closely monitor CFIUS actions to
seek to ensure that foreign investments that pose legitimate
threats to national security are either rejected or the threats
are effectively mitigated. The Committee will also monitor the
extent to which the United States maintains a policy of
openness toward foreign investment, so that investments that
pose no threat to national security are able to go forward.
Management of the Nation's Money: Activities of the Bureau
of the Mint and the Bureau of Engraving and Printing. The
Committee will conduct oversight of the activities of these
Treasury bureaus as they relate to the printing and minting of
U.S. currency and coins, and of the operation of U.S. Mint
programs for producing Congressionally authorized commemorative
coins and Congressional gold medals. The Committee will examine
methods to reduce the cost of minting coins through the use of
alternative metals. The Committee will examine efforts to make
currency more accessible to the visually impaired. The
Committee will continue its review of efforts to detect and
combat the counterfeiting of U.S. coins and currency in the
United States and abroad.
The U.S. Treasury Department's Financial Crimes Enforcement
Network (FinCEN). The Committee will continue to oversee the
operations of FinCEN and the Bureau's ongoing efforts to
implement its regulatory mandates pursuant to the Bank Secrecy
Act (BSA), as amended, to fight against money laundering and
terrorist financing activities. The Committee will examine the
filing process of Suspicious Activity Reports (SARs) and
Currency Transaction Reports (CTRs) with the Bureau, including
the utility of the forms, electronic filing, organizational
structure of the filing process, and burden to financial
institutions in filing these reports. The Committee will
examine means to reduce the burden on financial institutions in
complying with BSA regulations, while maintaining the utility
of the material gathered by these filings to law enforcement.
The Committee will examine the protections for consumer privacy
in the filing of these BSA reports and the sharing of this
sensitive information among the agencies and law enforcement
entities that utilize this data. The Committee will examine the
guidance issued by FinCEN to BSA examiners to foster more
uniform examination and enforcement practices. The Committee
will examine the balance of responsive work and analytical work
performed by FinCEN and their relative benefit to law
enforcement. The Committee will oversee FinCEN's efforts to
implement a statutory provision in section 6302 of the
Intelligence Reform and Terrorism Prevention Act of 2004
(Public Law 108-458), that required the Treasury Secretary to
certify the benefit of certain cross-border electronic
transfers to law enforcement, compared to the related cost to
financial institutions and the government, before issuing
regulations requiring financial institutions to report certain
cross-border electronic transfers to FinCEN.
Treasury's Office of Foreign Asset Control (OFAC). The
Committee will continue to monitor the functions of OFAC as its
workload increases, and study ways of improving its working
relationship with financial institutions.
Part B
IMPLEMENTATION OF THE OVERSIGHT PLAN OF THE COMMITTEE ON FINANCIAL
SERVICES FOR THE ONE HUNDRED ELEVENTH CONGRESS
----------
Financial Institutions
Troubled Asset Relief Program (TARP) and other Initiatives
to Stabilize the Financial System.
TARP implementation and oversight reports: The Treasury
Department has issued--as required by Sec. 105(a) of the
Emergency Economic Stabilization Act of 2008 (EESA, P.L. 110-
343)--monthly reports to Congress on the status of promoting
financial stability (http://www.financialstability.gov/latest/
reportsanddocs.html). EESA also established a regulatory
framework for overseeing the implementation of the program.
EESA created the Congressional Oversight Panel (COP) and the
Special Inspector General for TARP (SIGTARP). It also
established new audit and oversight duties for the Government
Accountability Office (GAO). The multiple layers of oversight
included in EESA were designed to ensure effective oversight,
accountability, and transparency. COP (http://cop.senate.gov/),
SIGTARP (http://www.sigtarp.gov/) and GAO (http://www.gao.gov/
docsearch/featured/financialmarketsandhousing.html) have
produced thousands of pages of oversight reports, audits and
investigations to ensure taxpayers are fully protected.
Committee staff was regularly briefed by these TARP oversight
entities on the details and findings of these reports.
TARP oversight hearings: The Subcommittee on Oversight &
Investigations (O&I) has conducted four hearings specifically
on TARP oversight. The O&I Subcommittee held its first hearing
entitled, ``A Review of TARP Oversight, Accountability and
Transparency for U.S. Taxpayers'' on February 24, 2009. The
Subcommittee heard from Neil Barofsky, the Special Inspector
General for TARP (SIGTARP), Professor Elizabeth Warren who
chaired the Congressional Oversight Panel for TARP, and Acting
Comptroller General Gene Dodaro of the Government
Accountability Office. Mr. Barofsky urged Congress to give
SIGTARP more authority and staff to better track all the TARP
funds. After the hearing, Chairman Moore filed H.R. 1341 with
Ranking Member Biggert to do that, and the House approved the
Senate version of the bill on March 25, 2009, with a unanimous
423-0 vote. The measure was enacted into law on April 24, 2009
(P.L. 111-15). The legislation has strengthened the SIGTARP's
hiring authority and other enforcement powers to provide
vigorous oversight of the $700 billion TARP program.
In its work overseeing the implementation of TARP, the O&I
Subcommittee has focused several of its hearings on the warrant
repurchasing process. When TARP recipient repays its original
Capital Purchase Program (CPP) investment, they have the right
to repurchase its warrants at an agreed up on fair market
value. This is done through direct negotiations with Treasury,
which has established a multiple step process to value the
warrants before they agree to sell them. If an institution
decides not to repurchase its warrants, Treasury has indicated
a preference to sell the warrants to a third party through a
public auction.
On June 2, 2009, Chairman Moore wrote Treasury Secretary
Geithner regarding concerns that: ``financial institutions that
have received TARP funds are lobbying to buy back warrants the
U.S. government received for providing taxpayer assistance at a
reduced or minimal value. I strongly urge you to utilize your
authority to maximize the best deal for taxpayers.'' On July
22, 2009, the Subcommittee held its second TARP oversight
hearing entitled ``TARP Oversight: Warrant Repurchases and
Protecting Taxpayers''. TARP's new administrator, Herb Allison,
testified on the status of the TARP, as well as issues
surrounding the repurchasing of TARP warrants by banks.
Professor Warren discussed COP's July report focused on
maximizing taxpayer returns in the warrant repurchasing
process. The day of the hearing, Goldman Sachs announced an
agreement with Treasury to repurchase their TARP warrants for a
higher-than-expected $1.1 billion, marking a new trend of
higher returns for taxpayers.
The O&I Subcommittee's third TARP oversight hearing,
entitled ``Utilizing Technology to Improve TARP and Financial
Oversight'', was held on September 17, 2009. The hearing
focused on the role of technology in efforts to provide
transparency and accountability for programs, such as TARP, and
using technology to ensure federal agencies provide strong,
coordinated oversight of financial services activity. Rep.
Carolyn Maloney's TARP database and monitoring bill, H.R. 1242,
was noted as a good idea to improve TARP transparency. The
House approved H.R. 1242 on December 2, 2009. A week later, the
Treasury Department announced an open government plan to ``to
increase transparency in government and maintain accountability
of taxpayer dollars''. This included a new commitment by the
Office of Financial Stability to release a TARP Transaction
Report for every new TARP transaction including investments
made and funds repaid. In an effort to make the reports user-
friendly, they would be made available in XML format for easy
sorting of data.
The fourth O&I TARP oversight hearing, entitled ``TARP
Oversight: An Update on Warrant Repurchases and Benefits to
Taxpayers'' was held on May 11, 2010. The O&I Subcommittee
received a SIGTARP audit focused on the TARP warrants program.
Witnesses included Treasury and other experts reviewing the
benefits taxpayers reaped from the TARP warrants program. One
academic witness testified that ``oversight works'' with
respect to TARP, and both SIGTARP and COP agreed that the TARP
warrants program generally succeeded.
As a result of the Committee's oversight efforts with
respect to the TARP warrant repurchasing program, this program
has generated over $7 billion of extra returns for taxpayers
with even more expected, in addition to over $200 billion of
repayments of the initial TARP investment as of November 2010.
Lessons from the financial crisis and fraud prevention
efforts: On June 18, 2009, the O&I Subcommittee held a hearing
entitled: ``Strengthening Oversight and Preventing Fraud in FHA
and other HUD Programs.'' HUD's Inspector General, Kenneth
Donohue, and other housing experts discussed combating fraud in
the housing and mortgage market. The hearing focused on FHA,
the importance of independent appraisals and the need for
adequate resources at HUD to mitigate waste, fraud and abuse.
Chairman Moore joined Judiciary Committee Chairman John Conyers
as a sponsor of the Fight Fraud Act, which the House approved
on May 6, 2009, by a vote of 367-59, giving the HUD IG more
resources to combat financial and mortgage fraud. The measure
was enacted into law two weeks later (P.L. 111-21), and also
included the establishment of a bipartisan Financial Crisis
Inquiry Commission, which is authorized to investigate the
financial crisis and issue a report to Congress on December 15,
2010.
Financial Supervision. OTS backdating of capital infusions:
The Oversight & Investigations Subcommittee held a hearing on
May 5, 2009, entitled ``The Role of Inspectors General:
Minimizing and Mitigating Waste, Fraud and Abuse.'' This
hearing focused on the work of the Inspectors General (IGs) at
Treasury, Federal Reserve and FDIC, in particular the concern
the IGs have that mandated Material Loss Reviews (MLR) are
overloading their resources, preventing them to investigate
other high priority concerns to expose waste, fraud and abuse.
During the hearing, the Treasury Inspector General indicated
that in an investigation, they found that a senior Office of
Thrift Supervision (OTS) official approved a capital
contribution to be backdated to a previous quarter so that
IndyMac would maintain its well-capitalized position for that
quarter. Less than four months later, IndyMac failed. Through
additional work by the IG's office, they learned that OTS
permitted, and in one case directed, other thrifts to backdate
capital contributions. As a result of their inquiry, OTS
removed the senior official involved with the IndyMac backdated
capital contribution. That individual has since retired from
federal service. As a result of another backdating episode, the
one directed by OTS, the responsible OTS official was placed on
administrative leave pending a departmental review. Following
the hearing, on May 21, 2009, the Treasury IG issued a report
with their full findings of their investigation entitled
``SAFETY AND SOUNDNESS: OTS Involvement With Backdated Capital
Contributions by Thrifts'' (OIG-09-037). That same day, Rep.
Dennis Moore wrote the OTS Acting Director, John Bowman, about
the IG's investigation including a question about why the
former Acting Director of OTS had not been terminated given the
findings of the report. Less than a month later, the OTS
official elected to retire. On July 8, 2009, OTS Acting
Director Bowman wrote back with a detailed response, and OTS
staff provided Committee staff a briefing explaining what
corrective steps the agency has taken to prevent this kind of
capital infusion backdating to be tolerated.
Consumer Protections. In addition to issues addressed
throughout this oversight plan that relate to consumers of
financial services, the Committee will consider other specific
consumer protection issues within its jurisdictional purview,
including, but not limited to, disparate interpretations and
applications of individual States' laws related to national
banks, Federal thrifts and their affiliates or subsidiaries,
marketing tactics, rising fees, and penalties on credit card,
payday, mortgages and other consumer loans, unfair or deceptive
acts or practices such as foreclosure rescue scams, the use of
credit reports to change the rates and terms of preexisting
accounts, to ensure that the financial services industry
fulfills its responsibility to treat its customers fairly and
fully disclose the terms on which financial products and
services are offered to the public. The Committee will also
consider industry practices with respect to overdraft
protection programs, deposit hold periods, and other fees.
Data Security and Identity Theft. Building on the
Committee's long-standing role in developing laws governing
companies' handling of sensitive personal financial information
about consumers, including the Gramm-Leach-Bliley Act and the
Fair and Accurate Credit Transactions Act (FACT Act), the
Committee will continue to seek legislation that better
protects the security and confidentiality of such information
from any loss, unauthorized access, or misuse. The Committee
will also monitor major data security breaches at government
agencies to ensure that personal financial information is
properly safeguarded and that the affected individuals receive
prompt notification where that is appropriate.
Implementation of FACT Act. On October 2, 2009, the
Committee considered H.R. 3763, a bill to amend the Fair Credit
Reporting Act (FCRA) to exempt health care, accounting or legal
practices with twenty employees or fewer as well as other
businesses meeting certain criteria from having to comply with
Federal Trade Commission's (FTC) Red Flags rule. While the
House passed H.R. 3763 by a vote of 400 to 0 on October 20,
2009, no action on that bill was taken in the Senate. On
October 29, 2009, Chairman Barney Frank, along with Ranking
Member Spencer Bachus and Representatives Mike Simpson, John
Adler, Paul Broun, Chris Lee, and Daniel Maffei wrote to the
FTC to request it delay enforcement of the Red Flags rule to
give the Senate sufficient time to act on the matter. The full
House passed a revised bill to H.R. 3763, S. 3987, the (Red
Flag Program Clarification Act of 2010, (on December 7, 2010,
that will exempt creditors from having to comply with the rule
to those that: (1) obtain or use consumer reports in connection
with a credit transaction; (2) furnish information to consumer
reporting agencies in connection with a credit transaction; (3)
advance funds to or on behalf of a person based on an
obligation of the person to repay the funds or are repayable
from specific property pledged by or on behalf of the person.
S. 3987 was presented to the President for signature on
December 9, 2010, and became P.L. 111-319 on December 18, 2010.
The Committee continued to monitor the use of credit scores
by lenders in assessing consumers' creditworthiness in
determining whether credit is extended to them and on what
terms. In order to obtain more information on consumers'
awareness of and ability to understand how creditors are using
creditor scores, the Committee included a provision under
Section 1078 of the Dodd-Frank Act directing the CBPB to
conduct a study and report back to Congress within one year on
the nature, range, and size of variations between the credit
scores sold to creditors and those sold by consumers on a
nationwide basis, and whether such variations disadvantage
consumers.
The Committee also supported a provision under Section
1100F, which will require creditors to provide consumers with a
free credit score, along with at least four factors that have
negatively impacted the score, as part of adverse action and
risk-based pricing notices under the FCRA. These notices are
used to alert consumers when the use of their credit
information by creditors has resulted in them either being
denied credit or receiving credit on materially less favorable
terms than a substantial portion of other consumers.
Mortgage Lending. In April 2008, the Committee asked the
Government Accountability Office (GAO) to conduct a
comprehensive review of the current state of Federal
enforcement of the Fair Housing Act (FHA) and other fair
lending statutes. In response to this request, GAO issued a
report in July 2009 entitled, ``FAIR LENDING: Data Limitations
and the Fragmented U.S. Financial Regulatory Structure
Challenge Federal Oversight and Enforcement Efforts'' (GAO-09-
704). GAO recommends in the report that Congress consider
options to expand the data available to detect potential fair
lending violations such as, requiring certain lenders to report
additional data under the Home Mortgage Disclosure Act (HMDA).
The Committee reviewed the GAO report, and passed several
provisions under the Dodd-Frank Act to try to enhance Federal
oversight and enforcement of fair lending laws, including: (1)
establishing an Office of Fair Lending and Equal Opportunity
within the CFPB to ensure the fair, equitable, and
nondiscriminatory access to credit for both individuals and
communities and (2) requiring lenders to collect and publicly
report additional data fields under HMDA.
Deposit Insurance Reform. The Committee will monitor the
implementation of the Deposit Insurance Reform Act of 2005 and
the Federal Deposit Insurance Reform Conforming Amendments Act
of 2005, to ensure that deposit insurance continues to serve
its historic function as a source of stability in the banking
system and a valued safety net for depositors. During the
consideration of the Emergency Economic Stabilization Act,
deposit insurance coverage for banks and credit unions was
expanded from $100,000 per account to $250,000. This was
particularly important for small businesses, which rely on
their bank deposits to meet payroll and other critical needs.
The increase will ensure that they have access to their working
capital at all times, and discourage them from moving funds due
to concerns about a particular institution. According to the
Federal Reserve, for the smallest businesses (less than 10
employees, which are 80 percent of small businesses, raising
the limit will have a major impact: 75 percent fewer firms will
have uninsured deposits and the amount of their deposits
remaining uninsured will fall by two-thirds. The insurance
increase also gives small banks greater parity with the
temporary money market fund insurance recently implemented by
the Treasury Department. This will help keep deposits in banks
and promote their stability. The Committee will monitor the
implementation and effects of this expansion.
Credit Unions. The Committee reviewed issues relating to
the conversion policies and procedures, safety and soundness
and regulatory treatment of the credit union industry in the
111th Congress. The Committee also continued its support of the
lifting of the statutory borrowing cap on the Central Liquidity
Fund of the National Credit Union Administration (NCUA) and
continued to monitor the fund's ability to meet the liquidity
needs of credit unions.
In addition, the Committee worked to enact deposit
insurance reform legislation (S. 896) that contained provisions
to enhance the liquidity and stability of insured depository
institutions to ensure the availability of credit and reduce
foreclosures. Specifically, S. 896 extended through 2013 the
temporary increase in deposit insurance coverage for both the
FDIC Deposit Insurance Fund and the National Credit Union Share
Insurance Fund (NCUSIF) to $250,000 (the temporary increase was
currently scheduled to sunset on December 31, 2009). The Dodd-
Frank Act made this extension permanent.
In addition, S. 896 provides the FDIC and the NCUA an
increase in Treasury borrowing authority and contains the
Corporate Credit Union Stabilization Fund, a fund separate from
the NCUSIF, first proposed by the NCUA to allow credit unions
to spread the entire cost of replenishing the losses
experienced by the conservatorship of several corporate credit
unions over a seven-year period. Representatives Paul E.
Kanjorski, Luis V. Gutierrez, and Ed Royce, among others,
introduced this plan in the House as H.R. 2351, the Credit
Union Share Insurance Stabilization Act. The Subcommittee on
Financial Institutions and Consumer Credit convened a hearing
to examine H.R. 2351 on May 20, 2009. Witnesses at the hearing
included Federal and State regulators, as well as credit union
executives.
The Dodd-Frank Act also preserved the independent credit
union charter, and ensured that small banks and credit unions,
which play a key role in their communities, and were not the
cause of the subprime crisis, are not subject to undue
regulatory burdens. In addition, credit unions under $10
billion in assets will continue to have their consumer
protection examinations done by their existing regulators.
Moreover, the law provides the NCUA Chairman with a seat on the
Financial Stability Oversight Council.
Finally, the Committee explored opportunities for credit
unions to advance economic growth by increasing member business
lending, including proposals like H.R. 3380, the Promoting
Lending to America's Small Businesses Act of 2009, introduced
by Representatives Kanjorski and Royce. Participants from the
credit union movement testified at Committee hearings on
February 26, 2010, and May 18, 2010, entitled ``Condition of
Small Business and Commercial Real Estate Lending in Local
Markets'' and ``Initiatives to Promote Small Business Lending,
Jobs and Economic Growth,'' respectively.
Regulatory Burden Reduction. The Committee continued to
review the current regulatory burden on banks, thrifts and
credit unions. As a result of the Committee's work, the Dodd-
Frank Act ensured that credit unions with less than $10 billion
in assets will continue to have their consumer protection
examinations done by their existing regulators. That law also
included provisions that were previously introduced in various
regulatory relief bills, including the removal of the
prohibition on paying interest on demand deposits, and reducing
the hurdles or prohibitions to banks establishing de novo
interstate branches.
Reps. Erik Paulsen, Dennis Moore and Peter Roskam
introduced the Eliminate Privacy Notice Confusion Act in 2009,
H.R. 3506. In the 110th Congress, this legislation was included
in the Credit Union, Bank and Thrift Regulatory Relief Act,
which the House approved but the Senate did not consider. H.R.
3506 would help minimize confusion consumers have about their
privacy rights regarding two conflicting provisions of two
prior laws. The Fair Debt Collection Practices Act specifically
prohibits subject companies from sharing personal information
with third parties. Yet the Gramm-Leach-Bliley Act still
requires these firms to provide annual privacy notices that
allow consumers to opt out of having their information shared
with third parties. Since this practice is already prohibited
by law, these annual notices only confuse the consumers that
receive them. H.R. 3506 was approved by the House on April 14,
2010, by voice vote.
Remittances. The Committee continued its review of the
marketing and disclosure practices of financial institutions
and money transmitters who offer international remittance
services to consumers seeking to send funds to relatives in
other countries, enacting significant reforms to this area as
part of the Dodd-Frank Act.
Payment System Innovations. The Committee will review
government and private sector efforts to achieve greater
innovations and efficiencies in the payments system. The
Committee will continue to assess the appropriateness of the
current maximum hold periods and dollar amount limits provided
under the Expedited Funds Availability Act. The Committee will
also review improvements to the payments system, including ACH
debit entries, wire transfers, and international remittances.
Internet Gambling. The Committee continued to examine the
implications of the Unlawful Internet Gambling Enforcement Act
(UIGEA) and the level of unreasonable compliance burdens
imposed on financial institutions by the final regulations
issued by the Treasury Department and Federal Reserve, in
consultation with the Justice Department. Legislation which
would have prevented the implementation of these regulations
was ordered reported by the Committee in the 110th Congress
after such a measure had once been defeated. Multiple hearings
were held in this Congress on these regulations, as well as the
legislation that would protect consumers by licensing and
regulating internet gambling, and this legislation, H.R. 2267
was reported out of Committee on July 28, 2010, and the report
was filed on September 29, 2010 (H. Rept. 111-656 part I).
Access to Financial Services. The Committee will continue
to explore ways to expand access to mainstream financial
services by traditionally underserved segments of the U.S.
population, particularly those without any prior banking
history (commonly referred to as ``the unbanked''). One area of
review will be an assessment of the Treasury Department's First
Accounts Program--a grant program intended to provide financial
services to low- and moderate-income Americans without bank
accounts.
Credit Card Regulation. On April 22, 2009, the Committee
ordered reported H.R. 627, the ``Credit Cardholders' Bill of
Rights Act of 2009.'' The bill would prohibit certain unfair
and deceptive credit card practices and provides consumers with
tools to manage their credit card debt responsibly. The bill
passed the House on April 30, 2009 and passed the Senate
amended on May 19, 2009. The House concurred in the Senate
amendment on May 20, 2009, and this bill was signed into law on
May 22, 2009.
On October 26, 2009, the Committee approved H.R. 3639--
Expedited CARD Reform for Consumers Act of 2009. H.R. 3639
would accelerate the implementation of certain provisions in
existing law related to the regulation and operations of the
credit card industry. The Credit Card Accountability
Responsibility and Disclosure Act of 2009 (H.R. 627) set
deadlines for implementing various reforms and procedures, with
most of those measures scheduled to take effect in February and
August of 2010. This bill would change those effective dates to
December 1, 2009, subject to exemptions for entities that issue
prepaid gift cards and depository institutions (such as banks
and credit unions) with less than 2 million credit cards in
circulation
Community Development Financial Institution Fund. On March
9, 2010, the Committee held a hearing entitled, ``Community
Development Financial Institutions (CDFIs): Their Unique Role
and Challenges Serving Lower-Income, Underserved and Minority
Communities.'' Witnesses included representatives of the
Treasury Department and the range of CDFIs, including community
development banks, credit unions and loan funds. The hearing
examined the state of CDFIs, especially in light of the
economic downturn, the communities they serve and their unique
needs and demands.
The CDFI Fund received $100 million as part of the Recovery
Act, which the Committee supported. In addition, the committee
sent letters to the leadership of the Appropriations Committee
requesting an increase in overall funding for the CDFIs various
programs to $300 million for FY 2011. Additionally, the
Committee sent letters to the Treasury Department requesting
that CDFIs receive assistance under the TARP program. In
connection with those efforts, the Treasury Department
announced the Community Development Capitalization Initiative
(CDCI) which lends to CDFIs at a dividend rate of 2 percent for
up to eight years. So far, the program has served 84
institutions. As part of the Small Business Jobs Act of 2010,
there were two initiatives that will be run by the CDFI Fund.
First, the Small Business Lending Facility sets aside 1
percent, or up to $300 million, in lending authority for low
cost loans to community development loan funds. This program
parallels the CDCI program for community development banks and
credit unions under TARP. Programs must be certified to qualify
and their activities must be targeted to small business
lending. Secondly, that law creates CDFI Bond Guarantee program
for community and economic development. These bonds will be a
source of long-term capital for CDFIs which can be sold in
capital markets.
The committee continues to explore the connections between
CDFIs and the New Markets Tax Credit (NMTC) program,
coordinating these efforts with the Ways and Means Committee,
which has primary jurisdiction over the tax portion of this
program run out of the CDFI Fund.
Community Reinvestment Act of 1977. The Committee held a
hearing entitled ``Proposals to Enhance the Community
Reinvestment Act'' on September 16, 2009. The hearing explored
recommendations for updating CRA to make it more effective in
light of changes in the financial services sector. On September
29, 2010, Committee members introduced H.R. 6334, ``The
American Community Reinvestment Reform Act of 2010,'' which
would reform and enhance the Community Reinvestment Act.
Credit Counseling. The Committee will continue to review
the credit counseling industry which provides financial
education and debt management services to consumer seeking to
address excessive levels of personal indebtedness. A particular
focus will include examining complaints regarding abusive and
deceptive practices by some for-profit industry groups.
Financial Literacy. The Committee enacted a series of
measures designed to improve and expand financial literacy and
access to financial services. Specifically, as part of Title
XII of the Dodd-Frank Act, the Bank On USA program was
authorized to bring unbanked residents into the financial
mainstream by offering financial services and education to help
underserved people save and build assets through grants to
financial institutions. Additionally, Title XII created the
Small Dollar Consumer Loan program. This program, pending
funding through the appropriations process, would enable
entities to offset their loan loss reserve funds to mitigate
the risk of offering small dollar (under $2,500) loans to
customers at low interest rates as an alternative to pay day
loans. Finally, Congress established the Office of Financial
Education as part of the new Consumer Finance Protection Bureau
which will be a clearinghouse of research, education and
program guidance for organizations nationwide which are
interested in providing financial literacy programs in their
communities. In addition, the committee will continue to
monitor the activities of the Financial Literacy and Education
Commission (FLEC), coordinated by the Treasury Dept.
The O`I Subcommittee held a field hearing in Lawrence,
Kansas, on August 24, 2010, to focus on the question:
``Empowering Consumers: Can Financial Literacy Education
Prevent Another Financial Crisis?'' The Subcommittee examined
what kinds of programs have worked well in promoting greater
financial literacy. The hearing focused on the recent financial
crisis, and what lessons should be learned in terms of what
role financial literacy should play in a safer, more stable
financial system, including examining how best to coordinate
efforts, and utilizing limited resources most efficiently to
increase access to quality financial education for all people.
Also discussed were several key provisions included in the
Dodd-Frank Act to promote financial literacy, including the
creation of an Office of Financial Education within the newly
created Bureau of Consumer Financial Protection.
Payday Lending. The Dodd-Frank Act included provisions
specifically subjecting payday lenders to the authority of the
Consumer Financial Protection Bureau.
Discrimination in Lending. In order to combat any issues in
discrimination in lending going forward, under Section 1014 of
the Dodd-Frank Act, the Committee pushed to ensure the
membership of the Consumer Advisory Board within the CFPB
includes experts on fair lending and civil rights, consumer
financial products or services and representatives of
depository institutions that primarily serve underserved
communities, and representatives of communities that have been
significantly impacted by higher-priced mortgage loans.
Based on many of the recommendations contained in the GAO
report entitled, ``FAIR LENDING: Data Limitations and the
Fragmented U.S. Financial Regulatory Structure Challenge
Federal Oversight and Enforcement Efforts'' (GAO-09-704), under
Section 1094 of the Dodd-Frank Act, the Committee expanded the
type of data that lenders will be required to collect and
report under the HMDA. The new data will provide more specific
loan pricing information on mortgage loans such as, the total
points and fees payable at origination in connection with the
mortgage loan, the difference between the annual percentage
rate of the loan and a benchmark rate or rates for all loans,
the actual or proposed term of any introductory period after
which the interest rate may change, and the actual or proposed
term of the mortgage loan. The new data will provide more
transparency on underwriting practices and patterns in mortgage
lending and help improve the oversight and enforcement of fair
lending laws.
In order to ensure the enforcement of fair lending laws for
borrowers of nonmortgage credit and enable communities,
governmental entities, and creditors to identify business and
community development needs and opportunities of women-owned,
minority-owned, and small businesses, the Committee also pushed
to require lenders to collect and report data, including
personal characteristic data, on some business loans. The new
requirements under Section 1071 of the Dodd-Frank Act are
based, in part, on concerns raised, and recommendations issued,
in a GAO report entitled, ``FAIR LENDING: Race and Gender Data
Are Limited for NonMortgage Lending'' that was released in June
2008 (GAO-08-698).
Diversity in Financial Services. The Committee continued to
monitor the workforce diversity within the financial services
industry, particularly at the management level, and steps that
the industry has taken to try to promote diversity. Based on
findings from a GAO report entitled, ``FINANCIAL SERVICES
INDUSTRY: Overall Trends in Management-Level Diversity and
Diversity Initiatives, 1993-2004'' issued in June 2006 (GAO-06-
617) and follow-up research from the GAO discussed in written
testimony in February 2008 (GAO-08-445T) and in May 2010 (GAO-
10-736T), the Committee supported the creation of Offices of
Minority and Women Inclusion (Offices) under Section 342 of the
Dodd-Frank Act at several Federal financial services agencies,
including the Board of Governors of the Federal Reserve system,
the Federal Housing Finance Agency, each of the Federal Reserve
banks, the National Credit Union Administration, the Office of
the Comptroller of the Currency, and the CFPB. The directors of
these Offices will be responsible for: (1) developing standards
for equal employment opportunities and workforce diversity at
all levels within each agency; (2) increasing the participation
of minority-owned and women-owned businesses in the programs
and contracts of teach agency, including standards for
coordinating technical assistance to these businesses; and (3)
assessing the diversity policies and practices of entities
regulated by each agency.
The Committee also continued to monitor Federal regulators'
efforts to promote and preserve minority-owned financial
institutions. Based in part on recommendations from a GAO
report entitled, ``MINORITY BANKS: Regulators Need to Better
Assess Effectiveness of Support Efforts'' issued in October
2006 (GAO-07-6) and written testimony in October 2007,
``MINORITY BANKS: Regulators' Assessments of the Effectiveness
of Support Efforts Have Been Limited'' (GAO-08-233T), the
Committee supported expanding the requirements under Section
308 of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 to additional financial services
agencies, which was accomplished under Section 367 of the Dodd-
Frank Act.
The Subcommittee on Oversight ` Investigations and
Subcommittee on Housing and Community Opportunity held a joint
hearing entitled: ``Minorities and Women in Financial
Regulatory Reform: The Need for Increasing Participation and
Opportunities for Qualified Persons and Businesses,'' on May
12, 2010. The Subcommittees received an update from GAO on the
level of professional opportunities for women and minorities in
the financial industry and financial regulatory agencies.
Subcommittee Chairs Moore and Waters formally requested GAO
research the matter further and report back to Congress with
their updated findings.
Money Laundering and the Financing of Terrorism. The
Subcommittee on Oversight ` Investigations (O`I) held a series
of hearings looking at strengthening the federal government's
efforts in combating terrorism financing and money laundering.
On April 28, 2010, the O`I Subcommittee held a hearing on
``Reviewing FinCEN Oversight Reports.'' The Subcommittee
received an update from the Financial Crimes Enforcement
Network's (FinCEN) Director and examined oversight reports
issued by GAO and the Treasury Department's Inspector General
that looked at FinCEN's efforts with respect to Suspicious
Activity Reports, Bank Secrecy Act compliance, and anti-money
laundering. The Treasury Department established FinCEN in 1990
to provide a government-wide multisource financial intelligence
and analysis network. FinCEN's operation was later expanded to
include the responsibilities for administering the Bank Secrecy
Act.
The O`I Subcommittee held its second hearing on these
issues on May 26, 2010, focused on ``Anti-Money Laundering:
Blocking Terrorist Financing and Its Impact on Lawful
Charities.'' The Subcommittee reviewed ongoing efforts by the
Treasury Department to stop the financing of terrorism. The
hearing focused on various controls, disclosure and decision-
making processes to ensure innocent individuals and charities
receive due process while efforts to block terrorist financing
remain robust.
Another O`I Subcommittee hearing was held on September 28,
2010, entitled: ``A Review of Current and Evolving Trends in
Terrorism Financing.'' This hearing focused on a broader
perspective offered by non-governmental witnesses on the
current and evolving trends in terrorism financing today. The
Subcommittee focused on how terrorist organizations continue to
finance their activities and how these organizations are
altering their financing techniques to avoid current methods
exercised by the U.S. government to stem the flow of money to
terrorists. The Subcommittee reviewed potential vulnerabilities
in the financial institutions systems of the United States and
the world that could be exploited by terrorist organizations.
Committee staff met regularly with staff of FinCEN and
representatives of financial institutions to discuss the issue
of the costs of Bank Secrecy Act (BSA) compliance relative to
the utility of this information to law enforcement and the
issue of privacy concerns related to the examination and
storage of personal financial information and BSA reports.
Money Service Businesses' Access to Financial Institution
Services. On March 10, 2010, the Subcommittee on Financial
Institutions and Consumer Credit held a hearing entitled
``Regulation of Money Service Businesses.'' The hearing
examined the issue of financial institutions severing their
ties to money service businesses and included testimony from
related industry on proposals to reform regulations related to
money laundering and money service businesses.
Committee staff met regularly with staff of FinCEN and
representatives of money service businesses and financial
institutions to discuss the issue of financial institutions
severing their ties to money service businesses and proposals
to reform related regulations.
New Technologies and Cash Alternatives. On September 28,
2010, the Subcommittee on Oversight and Investigations held a
hearing entitled ``A Review of Current and Evolving Trends in
Terrorism Financing.'' The hearing examined how terrorist
organizations continue to finance their activities, how these
organizations have altered their financing techniques to avoid
current methods exercised by the U.S. Government to stem the
flow of money to terrorists, and potential vulnerabilities in
the financial institutions system of the U.S. and the world
that could be exploited by terrorist organizations.
Committee staff met regularly with staff of FinCEN and
representatives of the cash-alternative technology industry to
discuss potential susceptibility of these technologies to money
laundering and terrorism financing.
Appraisals. The Committee continued its work in the 111th
Congress to protect against appraisal fraud and improve
appraisal regulation. Specifically, in April 2009 the Committee
approved and in May 2009 the House passed H.R. 1728, the
Mortgage Reform and Anti-Predatory Lending Act. Drafted by
Capital Markets Subcommittee Chairman Paul E. Kanjorski with
the support of Oversight Subcommittee Ranking Member Judy
Biggert, Title VI of H.R. 1728 contains the first update of
Federal appraisal laws in a generation, including provisions to
improve consumer protection, establish a national appraisal
independence standard, enhance appraisal licensing standards,
better State appraisal regulation, and strengthen Federal
oversight of State appraisal programs, among other things. The
Kanjorski-Biggert appraisal reforms became law as part of
Subtitle F of Title XIV of the Dodd-Frank Act. Committee staff
also reviewed and met with interested parties about the interim
final appraisal independence rules issued pursuant to the Dodd-
Frank Act by the Federal Reserve.
On June 18, 2009, the O`I Subcommittee held a hearing
entitled: ``Strengthening Oversight and Preventing Fraud in FHA
and other HUD Programs.'' HUD's Inspector General, Kenneth
Donohue, and other housing experts discussed combating fraud in
the housing and mortgage market. One of the key issues the
hearing focused on was appraisal abuse and the importance of
independent appraisals.
Capital Markets and Securities
Reforming Oversight of Financial Services. The Committee
considered and reported proposals ultimately incorporated into
the Dodd-Frank Wall Street Reform and Consumer Protection Act
of 2010 (Dodd-Frank Act) to reform the regulatory regime for
the financial services industry, including the U.S. capital
markets and the securities sector, and to establish a more
efficient oversight structure. The new structure, for the first
time, requires monitoring for systemic risks and empowers the
Federal Government to preemptively rein in and break up too-
big-to-fail, excessively risky and overly concentrated
financial firms in order to protect the broader economy.
To identify appropriate reforms, the Committee held
multiple hearings to consider whether and how best to eliminate
duplicative oversight functions among agencies, consolidate
regulatory functions where appropriate, prevent charter
shopping, and impose oversight of previously unregulated or
lightly regulated activities, products and market participants.
The Committee additionally reviewed proposals to combine
securities and futures regulation, establish appropriate new
safeguards for investment banking functions, and set uniform
fiduciary duty standards for broker-dealers and investment
advisers. The Committee also explored combining the regulation
of broker-dealers and investment advisers.
Some of the hearings convened in the 111th Congress by the
Committee and its Subcommittee on Capital Markets, Insurance,
and Government Sponsored Enterprises related to exploring
reforms for financial services regulation included:
``Perspectives on Systemic Risk'' on March
5, 2009;
``Perspectives on Regulation of Systemic
Risk in the Financial Services Industry'' on March 18,
2009;
``Approaches to Improving Credit Rating
Agency Regulation'' on May 19, 2009;
``Compensation Structure and Systemic Risk''
on June 11, 2009;
``A Review of the Administration's Proposal
to Regulate the Over-the-Counter Derivatives Market''
on July 10, 2009;
``Regulatory Perspectives on the Obama
Administration's Financial Regulatory Reform
Proposals'' on July 22, 2009 and July 24, 2009;
``Reforming Credit Rating Agencies'' on
September 30, 2009;
``Capital Markets Regulatory Reform:
Strengthening Investor Protection, Enhancing Oversight
of Private Pools of Capital, and Creating a National
Insurance Office'' on October 6, 2009; and
``Reform of the Over-the-Counter Derivative
Market: Limiting Risk and Ensuring Fairness'' on
October 7, 2009.
As part of this process, the Committee considered and
favorably reported several bills affecting the regulation of
securities products and the U.S. capital markets. These bills
included:
H.R. 1728, the Mortgage Reform and Anti-
Predatory Lending Act of 2009, on May 7, 2009;
H.R. 3269, the Corporate and Financial
Institution Compensation Fairness Act of 2009, on July
28, 2009;
H.R. 3795, the Over-the-Counter Derivatives
Markets Act of 2009, on October 15, 2009;
H.R. 3818, the Private Fund Investment
Advisers Registration Act, on October 27, 2009;
H.R. 3890, the Accountability and
Transparency in Rating Agencies Act, on October 28,
2009;
H.R. 3817, the Investor Protection Act, on
November 4, 2009; and
H.R. 3996, the Financial Stability
Improvement Act, on December 2, 2009.
The Committee subsequently consolidated these bills into
one legislative package, and on December 11, 2009, the House
passed, H.R. 4173, the Wall Street Reform and Consumer
Protection Act. After convening a conference to reconcile the
House-passed and Senate-approved financial services regulatory
reform bills, the House adopted the final version of H.R. 4173
on June 29, 2010. President Obama subsequently signed the Dodd-
Frank Wall Street Reform and Consumer Protection Act into law
on July 21, 2010.
Derivatives and Credit Default Swaps. The Committee and its
Capital Markets Subcommittee held a series of hearings to
examine ways to strengthen the regulation of the over-the-
counter derivatives market in order to mitigate systemic risk.
These hearings included:
``The Effective Regulation of the Over-the-
Counter Derivatives Markets'' on June 9, 2009;
``A Review of the Administration's Proposal
to Regulate the Over-the-Counter Derivatives Market''
on July 10, 2009; and
``Reform of the Over-the-Counter Derivatives
Market: Limiting Risk and Ensuring Fairness'' on
October 7, 2009.
To better understand derivatives and the challenges of
regulating these financial products effectively, staff of the
Committee and the Capital Markets Subcommittee regularly
attended meetings and briefings with regulators, market
participants, and consumer advocates. At these meetings, staff
gathered background information and received a variety of
proposals and recommendations on approaches to regulating the
derivatives markets.
On October 15, 2009, the Committee convened to mark up H.R.
3795, the Over-the-Counter Derivatives Markets Act of 2009. The
bill proposed a comprehensive framework for the regulation of
swaps and security-based swaps. Subject to certain exceptions,
it required:
clearing of swap transactions;
execution of swap transactions on exchanges
or swap execution facilities;
reporting and recordkeeping of swap
transactions;
registration and oversight of participants
in the swap markets, including swap dealers, major swap
participants, and designated clearing organizations;
and
compliance with capital and margin levels.
The Committee reported H.R. 3795, as amended, to the House by a
favorable vote of 43 yeas and 26 nays.
On November 3, 2009, Chairman Barney Frank also wrote a
letter to Securities and Exchange Commission Chairman Mary L.
Schapiro and Commodity Futures Trading Commission Chairman Gary
Gensler emphasizing the need to ensure that final legislation
regulating swaps (1) gives regulators, not market participants,
the authority to determine which swaps are subject to mandatory
clearing, and (2) limits the trading and clearing exemption to
bona fide end-users, not speculators masquerading as such.
H.R. 3795 was ultimately combined and reconciled with H.R.
977, a derivatives bill reported out of the House Agriculture
Committee, and the resulting compromise was folded into Title
III of H.R. 4173, the Wall Street Reform and Consumer
Protection Act. The House passed H.R. 4173 on December 11,
2009. Many of those provisions on enhanced regulation of swaps
and security-based swaps are reflected in Title VII of the
Dodd-Frank Act, which became law on July 21, 2010.
Oversight and Restructuring of the Securities and Exchange
Commission (SEC). The Committee conducted oversight and
advanced changes to the structure of the SEC in several ways
during the 111th Congress. For example, on June 9, 2009,
Capital Markets Subcommittee Chairman Paul E. Kanjorski wrote
to SEC Chairman Schapiro to discern what initiatives the agency
planned to take to improve investor protection and restore
confidence in the financial markets, as well as to identify
needed legislative changes to the laws governing the U.S.
capital markets.
Subsequently, the Capital Markets Subcommittee held a
hearing on July 14, 2009, to explore these initiatives and to
examine the operations and organizational structure of the SEC,
with particular emphasis on its supervisory and inspection
functions. The hearing also helped inform legislative
proposals, many of which were ultimately incorporated into
Title IX of the Dodd-Frank Act.
Regarding the future structure of the SEC, Section 967 of
the Dodd-Frank Act requires an organizational study of the
SEC's operations by an independent consultant of high caliber
and with expertise in organizational restructuring. The section
further requires the SEC to report to Congress on a regular
basis about the agency's efforts to implement the study's
recommendations.
Section 991 of the Dodd-Frank Act additionally makes
changes to the SEC's funding mechanism. Among other things,
this section builds in flexibility for the SEC for multi-year
budget authority and addressing unanticipated needs. Like H.R.
3817 and H.R. 4173, which passed the Committee and the House,
respectively, the Dodd-Frank Act authorizes a graduated
doubling of authorized funding levels for the SEC between
Fiscal Years 2011 and 2015.
The Capital Markets Subcommittee held an additional
oversight hearing on July 20, 2010, to evaluate the status of
the initiatives and reforms implemented by the SEC and to
ascertain plans to implement the legislative mandates included
in the Dodd-Frank Act, including the promulgation of more than
90 rules by the SEC and the creation of several new offices
within the SEC related to credit rating agencies, municipal
securities, and an investor advocate, among others.
Securities Fraud. The Committee and its Capital Markets
Subcommittee responded to the SEC's failure to detect the $65
billion Ponzi scheme orchestrated by Mr. Bernard L. Madoff, as
well as other sizable securities frauds in the wake of the
financial crisis of 2008 and 2009, by holding high-profile
hearings. Prior to the formal organization of the Committee,
the Committee first met to hear from witnesses at a meeting
entitled ``Assessing the Madoff Ponzi Scheme and the Need for
Regulatory Reform,'' on January 5, 2009. Insights gleaned from
these proceedings resulted in a subsequent hearing of the
Capital Markets Subcommittee on February 4, 2009, entitled
``Assessing the Madoff Ponzi Scheme and Regulatory Failures.''
In combination these hearings informed the work of the
Committee in undertaking the most substantial rewrite of the
laws governing the U.S. securities markets since the Great
Depression.
To ensure that the Committee received a fulsome and timely
explanation as to why the SEC failed to detect the Madoff
fraud, Capital Markets Subcommittee Chairman Kanjorski also
wrote a number of letters and met with key officials at the
SEC. In January 2009, for instance, he wrote to outgoing SEC
Chairman Christopher Cox to ask why the SEC missed several red
flags that could have helped to identify the Madoff fraud at an
earlier point in time. Chairman Kanjorski additionally met in
February 2009 with SEC Chairman Schapiro shortly after she took
over the agency, and they publicly agreed to maintain an open,
cooperative dialogue regarding the Committee's examination of
the Madoff Ponzi scheme and the SEC's actions regarding the
matter.
Chairman Kanjorski also continued to press for answers into
the SEC's failures related to the Madoff fraud by writing two
letters to the Inspector General of the SEC in June 2009. Both
letters urged the timely completion of the Inspector General's
report on his investigation into the Madoff matter and the
SEC's failure to identify it.
Chairman Kanjorski further monitored the administration of
claims for losses by Madoff victims by writing to the
Securities Investor Protection Corporation (SIPC) a letter in
August 2010. In that letter, Chairman Kanjorski requested data
on the status of claims filed by victims of the Madoff fraud.
The Capital Markets Subcommittee additionally convened two
hearings to examine SIPC's operations in December 2009 and
September 2010.
Impact of Emergency Economic Stabilization Act (EESA) on
Capital Markets. The Committee continued to monitor the
implementation of EESA, including the restructuring of U.S.
auto companies, mortgage foreclosure prevention efforts,
limitations on executive compensation, bank lending, and the
Federal Government's investment in American International Group
(AIG) by holding hearings and by reaching out to and regularly
obtaining information from senior industry leaders and
Executive Branch officials.
On March 18 and 24, 2009, the Capital Markets Subcommittee
and the Committee, respectively, held hearings relating to the
Federal Government's intervention at AIG. These hearings dealt
substantially with compensation practices at AIG following the
Federal Government's intervention and brought to the forefront
the larger issues of compensation at financial institutions,
particularly financial institutions that received Federal
financial assistance through the Troubled Asset Relief Program
(TARP) created by ESSA.
In the immediate aftermath of these two AIG hearings, the
Committee considered H.R. 1664, a bill to amend the executive
compensation provisions of EESA to prohibit unreasonable and
excessive compensation at companies participating in the TARP
program. The Committee ordered H.R. 1664 reported to the House
with a favorable recommendation by a vote of 38 to 22. On April
1, 2009, H.R. 1664 passed the House by a recorded vote of 247
to 171.
Outreach by the Speaker of the House and Chairman Frank to
the Chairman and Chief Executive Officer of Chrysler LLC, and
the Chairman and Chief Executive Officer of General Motors
Corporation, also contributed to the emergence of restructuring
plans from both automakers that minimized taxpayer losses and
kept the American automotive industry viable. This outreach
effort additionally helped to bring about a process that
allowed the two manufacturing companies to emerge quickly from
bankruptcy.
On March 4, 2010, Chairman Frank sent a letter to the CEOs
of the four largest holders of second liens, namely Bank of
America Corporation, Wells Fargo and Company, Citigroup, Inc.,
and JPMorgan Chase and Company. The letter urged the four
institutions to take immediate action to write down second
mortgages, which would allow principal reduction modifications
on the underlying first lien to take place. On April 27, 2009,
Chairman Frank previously sent a letter to Citigroup's CEO
expressing dismay about Citigroup's reluctance to modify
troubled second liens, and requesting that Citigroup
participate in the Administration's foreclosure mitigation
programs.
In a letter on June 23, 2009, Capital Markets Chairman
Kanjorski urged the Federal Deposit Insurance Corporation
(FDIC) to encourage banks to expand access to credit, so that
big and small businesses alike could weather the economic
crisis, and so that businesses could create much needed jobs.
FDIC Chairman Sheila Bair responded on July 7, 2009, that the
FDIC and other banking regulators were encouraging banks to
continue making loans to creditworthy customers and working
with borrowers having difficulty remaining current on their
payments.
On July 31, 2009, Chairman Kanjorski and other Members of
the Financial Services Committee sought to further expand the
availability of credit to businesses by sending a letter to the
U.S. Department of Treasury Secretary and the Board of
Governors of the Federal Reserve System to request the
extension of the Term Asset-Backed Securities Loan Facility
(TALF) through the end of 2010. The Federal Reserve later
extended the TALF from December 31, 2009, to June 30, 2010, in
order to help restart the commercial mortgage-backed securities
market and to enhance liquidity in the commercial real estate
sector.
Finally, on July 21, 2010, the Dodd-Frank Act became law.
With respect to EESA, the Dodd-Frank Act reduced the
authorization of appropriations for TARP from $700 billion
outstanding at any one time, to a maximum of $475 billion.
Loan Modifications in Securitized Pools. The Committee
continued its legislative work in the 111th Congress on
mitigating foreclosures. On February 2, 2009, Capital Markets
Subcommittee Chairman Kanjorski, along with Chairman Frank and
Representative Castle, introduced H.R. 788, the Mortgage
Servicer Safe Harbor Act, to provide a safe harbor from
investor lawsuits for mortgage servicers who engage in
specified mortgage loan modifications. The safe harbor
provision in H.R. 788 became part of H.R. 1106, the Helping
Families Save Their Homes Act, which passed the House on March
5, 2009.
Auction Rate Securities. The Capital Markets Subcommittee
received a letter from SEC Chairman Schapiro on July 5, 2009,
detailing steps the agency had taken since her arrival as
Chairman to better protect investors and to restore confidence
in the marketplace for Auction Rate Securities (ARS).
On March 29, 2010, concerned with the adverse effect on
regulatory capital caused by the write-downs of ARS in
depository institution portfolios, pension plans, and
charitable organizations, Chairman Frank and Capital Markets
Subcommittee Chairman Kanjorski, joined by Representative Don
Young, wrote letters to a number of Chief Executive Officers of
financial institutions that underwrite ARS in general and more
specifically, student loan-backed ARS. The letters urged the
institutions to meet with credit unions and depository
institutions that hold student loan-backed ARS to work out a
mutually agreeable solution to address the illiquidity of the
paper and pare back portfolio losses.
Equity/Options Markets. The Capital Markets Subcommittee
examined developments in the structure of the equity and
options markets during the 111th Congress. In particular, the
Subcommittee expeditiously exercised its oversight
responsibilities in response to the ``flash crash'' of May 6,
2010, during which the stock market indices experienced an
extreme drop in value only to recover within a matter of
minutes. On May 6, Capital Markets Subcommittee Chairman
Kanjorski wrote to SEC Chairman Schapiro expressing concern
about the market events of that day and seeking the SEC's views
and plan of action related to those events. The Subcommittee
then received testimony from SEC Chairman Schapiro and CFTC
Chairman Gensler, among others, at a hearing entitled ``The
Stock Market Plunge: What Happened and What Is Next?'' on May
11, 2010. In the following months, Committee staff met with and
received briefings from the SEC and the CFTC about the causes
of the market volatility and the structural reforms implemented
as a result of the events of May 6, including the
implementation of circuit-breakers for individual stocks.
On September 30, 2010, Chairman Frank and Capital Markets
Subcommittee Chairman Kanjorski wrote to SEC Chairman Schapiro
and CFTC Chairman Gensler requesting that the agencies release
their joint report, also dated September 30, 2010, entitled
``Findings Regarding the Market Events of May 6, 2010: Report
of the Staffs of the CFTC and SEC to the Joint Advisory
Committee on Emerging Regulatory Issues.'' Committee staff also
reviewed the findings of that report. Committee staff
additionally participated in regular meetings with parties
affected by or interested in not only the events of May 6, but
also related market structure issues like high-frequency
trading, market data fees, the SEC's modified uptick rule, and
short sale restrictions.
Finally, the Dodd-Frank Act incorporated a proposal first
passed in Committee as part of H.R. 3817, the Investor
Protection Act, and then approved by the House as part of H.R.
4173, the Wall Street Reform and Consumer Protection Act, to
extend SIPC coverage and allow for the cross-margining of
securities and futures products. This provision ultimately was
included in Section 983 of the Dodd-Frank Act.
Mutual Funds. Committee staff held numerous meetings with
interested parties about the status of the Reserve Primary
Fund, which collapsed in September 2008, and the effect of
failures in the ARS market on the mutual fund industry. On
January 27, 2010, the SEC also adopted new rules aimed at
better regulating money market mutual funds, and Committee
staff received briefings from the SEC about these new
regulations. The SEC issued the rules to improve investor
protection by further regulating the risks associated with
money market funds.
Additionally, Committee staff continued to monitor
developments related to the President's Working Group on
Financial Markets (PWG) report drafted in response to the
crisis in 2008 which highlights specific policy proposals
addressing reform of money market mutual funds and mitigating
systemic risk. According to the report, despite the development
and adoption of some reforms, more must be done in this area to
stem the recurrence of a similar crisis and to better protect
investors. The PWG has also proposed that the Financial
Stability Oversight Council, established by the Dodd-Frank Act,
take the report's policy ideas under advisement and pursue
whichever reforms it deems necessary.
Covered Bonds. The Committee explored the emergence of
covered bonds as a potential tool to ease the strain in U.S.
capital markets. On December 15, 2009, the Committee held a
hearing entitled, ``Covered Bonds: Prospects for a U.S. Market
Going Forward.'' The hearing explored the potential role that
covered bonds could play in U.S. markets and whether covered
bonds could serve as an alternative to mortgage securitization.
The Committee additionally considered H.R. 5823, the United
States Covered Bond Act of 2010, introduced by Capital Markets
Subcommittee Ranking Member Scott Garrett, along with Financial
Services Ranking Member Spencer Bachus and Capital Markets
Subcommittee Chairman Kanjorski. As part of the bill's
consideration, Chairman Frank also requested that FDIC Chairman
Bair offer her views regarding the treatment of covered bonds
as qualified financial contracts with insured depository
institutions. On July 28, 2010, the Committee ordered H.R. 5823
reported by a voice vote.
Public Company Accounting Oversight Board (PCAOB). The
Committee explored and incorporated into the Dodd-Frank Act
several reforms related to the PCAOB. For example, Section 982
of the law expanded the oversight responsibilities of the PCAOB
by requiring auditors of brokers-dealers, as defined in the
Securities Exchange Act, to register with the PCAOB. This
section also authorizes the PCAOB to develop an inspection
program for the auditors of broker-dealers. Section 981 of the
Dodd-Frank Act additionally allows the PCAOB to share
information with foreign auditing regulators. These reforms
were informed, in part, by public proceedings and hearings held
by the Committee and the Capital Markets Subcommittee in early
2009 after the revelation of the Madoff Ponzi scheme.
The Capital Markets Subcommittee also held an oversight
hearing on May 21, 2010, at which the Acting Chairman of the
PCAOB provided an update on PCAOB's current and anticipated
rulemaking activities, budget and funding, staffing, and
ongoing efforts to implement the auditing reforms required by
the Sarbanes-Oxley Act.
Financial Accounting Standards Board (FASB). On May 21,
2010, the Capital Markets Subcommittee held a hearing to review
what the FASB has done and what more the standard setter
intends to do to promote principles-based accounting standards
and what the FASB has done to improve the understandability,
consistency and overall utility of the existing accounting
literature. As outlined below, the Capital Markets Subcommittee
also held a hearing in March 2009 related to FASB's mark-to-
market accounting standards. Committee staff additionally
received regular briefings about FASB's initiatives and the
application of fair value measures in financial statements.
Convergence of International Accounting Standards. On May
21, 2010, the Capital Markets Subcommittee held a hearing
entitled ``Accounting and Auditing Standards: Pending Proposals
and Emerging Issues.'' At this hearing the Subcommittee
reviewed efforts by the SEC and the FASB to achieve robust,
uniform international accounting standards. The Committee also
monitored the SEC's plans to incorporate those standards into
U.S. financial reporting requirements.
Mark-to-Market Accounting. The Capital Markets Subcommittee
held a hearing on March 12, 2009, to examine the mark-to-market
accounting rules that many contend exacerbated the trouble in
the financial industry and in the broader economy during the
financial crisis of 2008 and 2009. Shortly after this hearing,
the FASB provided additional guidance on the application of the
mark-to-market accounting rules on April 2, 2009. Additionally,
Chairman Frank, Ranking Member Bachus, Capital Markets
Subcommittee Chairman Kanjorski, and Capital Markets Ranking
Member Garrett sent a letter on April 2, 2009, to SEC Chairman
Schapiro to emphasize the importance of an independent
accounting standard setter and to urge the SEC to provide
leadership in the implementation and application of accounting
standards.
Corporate Governance. The Committee engaged in many
activities aimed at altering corporate governance rules during
the 111th Congress. For example, the Capital Markets
Subcommittee held hearings entitled ``Corporate Governance
after Citizens United'' and ``Corporate Governance and
Shareholder Empowerment'' on March 11, 2010, and April 21,
2010, respectively. At these hearings, the Subcommittee
explored corporate governance reforms found in bills like:
H.R. 4537, the Shareholder Protection Act of
2010;
H.R. 2861, the Shareholder Empowerment Act
of 2009;
H.R. 3272, the Corporate Governance Reform
Act of 2009; and
H.R. 3351, the Proxy Voting Transparency Act
of 2009.
As part of the initial markups on the legislative proposals
incorporated into H.R. 4173, the Wall Street Reform and
Consumer Protection Act, the Committee also adopted an
amendment by Housing Subcommittee Chairman Maxine Waters and
Representative Gary C. Peters to clarify the ability of the SEC
to issue rules regarding the nomination by shareholders of
individuals to serve on the boards of public companies. These
provisions regarding proxy access aimed to enhance democratic
participation in corporate governance. As signed into law,
Section 971 of the Dodd-Frank Act includes proxy access
language similar the Waters-Peters proposal first adopted by
the Committee.
Finally, on July 28, 2010, the Committee considered and
favorably reported H.R. 4790, the Shareholder Protection Act of
2010, introduced by Representative Michael E. Capuano. In
response to the U.S. Supreme Court's ruling in the Citizen's
United case, this bill proposes corporate governance and
disclosure reforms related to the expenditures by public
corporations on political activities.
Executive Compensation. On June 11, 2009, the Committee
held the first of four executive compensation hearings
conducted during the 111th Congress. Entitled ``Compensation
Structure and Systemic Risk'', this initial hearing focused
broadly on the oversight and regulation of compensation
practices in the financial services industry, particularly in
the context of systemic regulatory reform. This first hearing
also served as a legislative hearing for H.R. 3269, the
Corporate and Financial Institution Compensation Fairness Act
of 2009.
H.R. 3269 provides shareholders a nonbinding, advisory vote
on their company's pay practices, requires Federal regulators
to proscribe any inappropriate and imprudently risky
compensation practices as part of solvency regulation of all
financial institutions, and mandates disclosure of compensation
structures for financial institutions with assets in excess of
$1 billion. The Committee favorably reported H.R. 3269 by a
recorded vote of 40 to 28 on July 28, 2009, and the legislation
passed the House by a recorded vote of 237 to 185 on July 31,
2009. H.R. 3269 was subsequently folded into H.R. 4173, and
became law as part of the Dodd-Frank Act.
On January 22, 2010, and February 25, 2010, the Committee
held two additional hearings respectively entitled
``Compensation in the Financial Industry'' and ``Compensation
in the Financial Industry--Government Perspectives.'' Building
on the Committee's 2009 compensation oversight and legislative
activities, these two additional hearings solicited input on
financial industry compensation structures and the anticipated
impact of H.R. 3269.
On September 24, 2010, the Committee held a fourth hearing
on CEO pay entitled ``Executive Compensation Oversight after
the Dodd-Frank Act.'' The hearing focused on the anticipated
impact of the Dodd-Frank Act's executive compensation
provisions on compensation practices, particularly in the
financial industry.
For additional information about the executive compensation
activities of the Committee, please refer to the discussion of
the ``Impact of the Emergency Economic Stabilization Act (EESA)
on Capital Markets'' found above.
Oversight of Self-Regulatory Organizations (SROs). Through
meetings and briefings, Committee staff monitored the
effectiveness of SROs in policing the capital markets and the
impact of SRO mergers on the oversight of securities markets,
market participants, and investors.
As part of the Committee's efforts to streamline the
functioning of SROs, Section 916 of the Dodd-Frank Act imposes
new deadlines by which the SEC is required to publish and act
upon proposed rule changes submitted by SROs. Additionally,
Section 416 of the Dodd-Frank Act requires a Government
Accountability Office (GAO) study on the feasibility of forming
an SRO to oversee private funds. Section 914 of the Dodd-Frank
Act also requires a study by the SEC about, among other things,
the extent to which having Congress authorize the SEC to
designate one or more SROs to augment the SEC's efforts in
overseeing investment advisers would improve the frequency of
examinations of investment advisers.
Finally, Section 921 of the Dodd-Frank Act authorizes the
SEC to prohibit, or impose conditions or limitations on the use
of agreements that require customers or clients of any broker,
dealer or municipal securities dealer to arbitrate any future
dispute between them arising under the Federal securities laws,
the rules and regulations thereunder, or the rules of an SRO if
the SEC finds that such prohibition, imposition of conditions,
or limitations are in the public interest and for the
protection of investors.
Hedge Funds and Private Pools of Capital. The Committee
addressed issues related to hedge funds and private pools of
capital and their regulatory framework during the 111th
Congress. On May 7, 2009, the Capital Markets Subcommittee held
a hearing entitled ``Perspectives on Hedge Fund Registration.''
The hearing examined H.R. 711, the Hedge Fund Adviser
Registration Act of 2009, introduced by Representatives Capuano
and Castle. The hearing also focused on the appropriate balance
between providing regulation of the industry to protect
investors without unduly inhibiting the benefits hedge funds
provide investors and the market more broadly.
On October 6, 2009, the Committee held a three panel
legislative hearing entitled, ``Capital Markets Regulatory
Reform: Strengthening Investor Protection, Enhancing Oversight
of Private Pools of Capital, and Creating a National Insurance
Office.'' The second panel of the hearing addressed the reforms
found in the discussion draft of H.R. 3818, the Private Fund
Investment Advisers Registration Act of 2009, introduced by
Capital Markets Subcommittee Chairman Kanjorski.
On October 27, 2010, the Committee held a markup of H.R.
3818. This legislation broadly amends the Investment Advisers
Act of 1940 by eliminating exemptions for private fund advisers
and authorizing the SEC to require registered investment
advisers to maintain records of information from private fund
advisers. In December 2009, the House then passed H.R. 3818 as
part of H.R. 4173. As enacted into law in July 2010, the Dodd-
Frank Act contains many of the provisions initially found in
H.R. 3818.
Finally, on January 15, 2010, Chairman Frank and Capital
Markets Subcommittee Chairman Kanjorski requested a GAO study
on the use of leverage by the portfolio companies of private
equity funds. The study will focus on the performance of these
highly leveraged companies and their ability to weather a
financial crisis vis-a-vis comparable public companies.
Federal/State Allocation of Enforcement Responsibilities.
On March 20, 2009, the Committee held a hearing entitled
``Federal and State Enforcement of Financial Consumer and
Investor Protection Laws.'' Issues explored at the hearing
included reforms to the States' ability to protect investors
from fraud and abuse, including limits on Federal preemption, a
Federal grant program to support State enforcement efforts, and
improved cooperation and communication between Federal and
State regulators.
On October 6, 2009, the Committee held an additional
hearing entitled ``Capital Markets Regulatory Reform:
Strengthening Investor Protection, Enhancing Oversight of
Private Pools of Capital, and Creating a National Insurance
Office.'' At this hearing, Denise Voigt Crawford, President of
the North American Securities Administrators Association and
Texas Securities Commissioner, advocated for a variety of
investor protection reforms, including an increase in the
States' authority over investment advisers.
On October 27, 2009, the Committee held a markup of H.R.
3817, the Investor Protection Act of 2009, introduced by
Capital Markets Subcommittee Chairman Kanjorski. The Committee
favorably reported the bill to the House by a vote of 41 yeas
and 28 nays. Among other things, H.R. 3817 contained a
provision that reallocated Federal and State authority over
investment advisers by raising the limit for State registration
from $25 million to $100 million in assets under management.
The intent was to increase the States' responsibility for
regulating smaller investment advisers so that the SEC could
devote more resources to oversight of the larger advisers.
H.R. 3817 also contained a provision enhancing the States'
ability to protect senior citizens from fraud and abuse,
through enforcement and investor education. Specifically, the
legislation established a Federal grant program for States that
have adopted rules restricting the use of misleading senior
designations in the sale of securities or insurance products.
The bill also provided for grants to States that impose
suitability requirements in connection with the sale of
securities or annuities.
H.R. 3817 was incorporated into H.R. 4173, the Wall Street
Reform and Consumer Protection Act of 2009, which passed the
House in December 2009. The provisions on State oversight of
investment advisers and grant funding to States for the
protection of senior investors both appear, in substantially
the same form as proposed, in Section 410 and Section 989A,
respectively, of the Dodd-Frank Act.
The Dodd-Frank Act further strengthened the regulation of
private securities offerings under Rule 506 of SEC Regulation
D. Both the SEC and State securities regulators have expressed
concerns about the degree of fraud and abuse associated with
Rule 506 offerings, which are exempt from Federal and State
registration requirements. To police this segment of our
capital markets more effectively, Section 926 of the Dodd-Frank
Act makes the registration exemption under Rule 506 unavailable
if the issuer or its principals have been the subject of civil,
criminal or administrative disciplinary proceedings, including
actions brought by State securities, banking, or insurance
regulators. This provision enhances the oversight of Rule 506
offerings under both State and Federal law.
Capital Allocation to New Technologies. In order to create
incentives in the U.S. capital markets aimed at facilitating
the growth of emerging innovative technologies and promising
industrial sectors, Subcommittee staff reviewed a proposal
first approved by the Committee in the 106th Congress known as
the America's Private Investment Companies Act.
Business Development Companies (BDCs). Committee staff
continued to monitor the regulations governing BDCs,
particularly those regarding BDCs' minimum capital requirements
and required leverage ratios. In response to a December 2008
letter from Capital Markets Subcommittee Chairman Kanjorski
about the regulatory accounting rules applied to BDCs, SEC
Chairman Schapiro responded on February 2, 2009, with a staff
memorandum on the subject and by noting that BDCs serve as an
important source of capital for small and mid-sized companies.
Credit Rating Agencies. The financial crisis highlighted
the level of accountability and liability assumed by the credit
rating agencies in regard to assessing the credit quality of
securities, especially in the structured finance market. In
many legal battles about the liability for faulty assessments
of a company's credit risk, however, the credit rating agencies
have successfully invoked a First Amendment defense.
In considering H.R. 4173, the Committee therefore reviewed
a proposal from the Administration for a mandatory SEC
registration regime for credit rating agencies. At the request
of Chairman Frank and Capital Markets Subcommittee Chairman
Kanjorski, the Department of Justice's Office of Legal Counsel
provided a brief defending the constitutionality of the
mandatory regime initially requested by the Treasury
Department.
On May 19, 2009, the Capital Markets Subcommittee held a
hearing entitled ``Approaches To Improving Rating Agency
Regulation.'' The witnesses addressed the issue of credit
rating agency regulation, focusing in particular on ways to
make credit rating agencies more accountable.
On September 30, 2009, the Capital Markets Subcommittee
held a second hearing entitled ``Reforming Credit Rating
Agencies.'' The hearing examined a discussion draft of
legislation to enhance the oversight, accountability and
transparency of credit rating agencies released five days
earlier by Capital Markets Subcommittee Chairman Kanjorski.
On October 27, 2010, the Committee then held a markup of
Chairman Kanjorski's discussion draft. The proposed legislation
amended the Securities Exchange Act of 1934 to enhance the
accountability of the Nationally Recognized Statistical Rating
Organizations (NRSROs) by:
clarifying the ability of individuals to sue
NRSROs;
clarifying the limitation on the SEC or any
State not to regulate the substance of credit ratings
or ratings methodologies does not afford a defense
against civil anti-fraud actions;
mitigating conflicts of interest between
NRSROs and the issuers they rate; and
providing the marketplace greater disclosure
of ratings methodologies and the NRSRO fee structure.
The Kanjorski discussion draft was ordered reported by the
Committee as H.R. 3890 and incorporated into H.R. 4173, which
passed the House on December 11, 2009. Mandatory registration
of credit rating agencies was passed on the floor of the House
as part of Title V, Subtitle B of H.R. 4173, but the final
version of the credit agency reform legislation incorporated
into the Dodd-Frank Act did not include the Administration's
mandatory registration provisions.
Securities Investor Protection Corporation (SIPC). In
response to complaints raised by investors affected by the
Madoff Ponzi scheme and the Stanford Financial fraud, the
Capital Markets Subcommittee held two hearings on December 9,
2009, and September 23, 2010, to examine the operations,
initiatives, and activities of SIPC. The hearings also explored
proposals to better protect investors in today's volatile
markets by reforming certain aspects of the Securities Investor
Protection Act (SIPA).
On March 3, 2010, Chairman Kanjorski wrote a letter to
request that SIPC's Task Force to explore reforms to SIPA be
comprised of a diverse group of representatives and that the
Task Force broaden its focus to consider, among other things,
how SIPC operates. Participants from this Task Force testified
at the September 2010 hearing.
In addition to these SIPC hearings, the Investor Protection
Act, as approved by the Committee as H.R. 3817, contained
several SIPA reforms. In December 2009, the House adopted these
SIPA amendments as part of H.R. 4173, and the Dodd-Frank Act as
enacted contains several SIPA reforms found in Section 929C,
Section 929H, Section 929V, and Section 983 to increase
customer cash advance limits, provide coverage for futures held
in portfolio margin accounts, and raise minimum assessments
paid by brokerages for SIPC coverage, among other things.
Fair Funds. During the 111th Congress, the Committee
examined the operations of the Fair Funds established under the
Sarbanes-Oxley Act and the success of Federal regulators in
implementing the Fair Funds provision. On September 16, 2009,
Oversight Subcommittee Chairman Moore requested that the GAO
update the Committee on the status of Fair Funds collections
and distributions, and the actions that the SEC had taken to
address the GAO's previous recommendations in this area. In
response, on April 22, 2010, the GAO issued a report entitled
``Securities and Exchange Commission: Information on Fair Fund
Collections and Distributions'' (GAO-10-44BR).
The Wall Street Reform and Consumer Protection Act provided
additional authority for the SEC to collect civil penalty
payments on behalf of victims of securities law violations and
add them to Fair Funds to recompense defrauded investors. The
provision was first incorporated into H.R. 3817, the Investor
Protection Act, introduced by Capital Markets Subcommittee
Chairman Kanjorski. On July 21, 2010, President Obama signed
the Dodd-Frank Act into law, including the Fair Funds
provisions previously passed in the House.
Business Continuity Planning/Critical Infrastructure
Protection. The Committee continued to monitor the
implementation of the Interagency Paper on Sound Practices to
Strengthen the Resilience of the U.S. Financial System as well
as the related efforts of all participants in the securities
industry to improve business continuity planning to protect
investors against the effects of natural disasters, terrorism
events, and pandemics. In particular, Committee staff reviewed
the October 26, 2009, GAO-issued report entitled ``Influenza
Pandemic: Key Securities Market Participants Are Making
Progress, but Agencies Could Do More to Address Potential
Internet Congestion and Encourage Readiness.''
Sarbanes-Oxley Act of 2002. The Committee continued to
examine the effects of the Sarbanes-Oxley Act on investors,
public companies and the capital markets at public hearings and
in staff meetings with experts. The Committee also considered
and adopted proposals to amend the law during the 111th
Congress.
Specifically, the Committee reviewed issues related to the
Sarbanes-Oxley Act at the SEC oversight hearings held by the
Capital Markets Subcommittee on July 14, 2009, and on July 20,
2010. On May 21, 2010, the Capital Markets Subcommittee also
held a hearing entitled ``Accounting and Auditing Standards:
Pending Proposals and Emerging Issues'' to examine, among other
matters, the activities of and reforms affecting the PCAOB, the
body to regulate auditors created by the Sarbanes-Oxley Act.
As part of the markup on H.R. 3817, the Investor Protection
Act, the Committee approved, as detailed above in the
discussion about the PCAOB, reforms aimed at improving the
effectiveness of the PCAOB and better protecting investors.
These reforms ultimately became law as part of the Dodd-Frank
Act in July 2010.
During the debate on H.R. 3817, the Committee also
considered and adopted an amendment by Capital Markets Ranking
Member Garrett and Representative John H. Adler to permanently
exempt public companies with market capitalizations of $75
million or less from the external audit of internal controls
requirement of Section 404(b) of the Sarbanes-Oxley Act. The
Garrett-Adler provision passed the House as part of H.R. 4173
and became law as Section 989G of the Dodd-Frank Act.
Global Competitiveness of U.S. Financial Markets. The
Committee worked to examine and maintain the competitiveness of
the U.S. capital markets in a number of ways during the 111th
Congress. For example, Chairman Frank, Capital Markets
Subcommittee Chairman Kanjorski and Committee staff regularly
met with representatives from other nations and the European
Parliament to ascertain developments related to foreign
financial markets, laws and rules.
Additionally, Capital Markets Subcommittee Chairman
Kanjorski led a delegation of the Committee in meetings with
European legislative, regulatory, and financial industry
leaders in late August and early September 2009. The delegation
also included Capital Markets Ranking Member Garrett, Financial
Institutions Subcommittee Chairman Luis V. Gutierrez, and
Committee staff. As part of its agenda, the delegation
participated in a hearing of the European Parliament's
Committee on Economic and Monetary Affairs in Brussels on
September 2, 2009. The hearing examined developments related to
financial services regulation across international borders.
During the debates on the legislation that became the Dodd-
Frank Act, the Committee also regularly explored international
competitiveness and coordination issues. For example, Capital
Markets Subcommittee Chairman Kanjorski received a letter dated
October 22, 2009, from Charlie McGreevy, the then-European
Commissioner for Internal Market and Services, related to H.R.
3817, the Investor Protection Act. In response to concerns
raised in this letter, the Committee adjusted the bill's
provisions related to international regulatory cooperation on
auditing oversight and the extraterritorial jurisdiction of the
antifraud provisions of Federal securities laws.
In addition, during the debates in the House-Senate
conference on the Volcker Rule, which was ultimately
incorporated as Section 619 into the Dodd-Frank Act, Chairman
Frank received a letter from Treasury Secretary Timothy F.
Geithner on June 24, 2010, indicating that the Administration
would push for the adoption by other countries of rules to
address off-balance sheet exposures, too-big-to-fail, and
excessive leverage.
To further protect the competitiveness of the U.S.
financial markets, as part of the original Kanjorski ``too-big-
to-fail'' amendment to H.R. 3996, the Financial Stability
Improvement Act of 2009, the Committee adopted a provision
concerning international policy coordination that became part
of Section 175 of the Dodd-Frank Act in substantially the same
form. This provision authorizes the Administration to
coordinate through all available international policy channels
similar policies as those found in U.S. law relating to
limiting the scope, nature, size, scale, concentration and
interconnectedness of financial companies, in order to protect
financial stability and the global economy.
Finally, on May 6, 2010, and on May 14, 2010, Chairman
Frank wrote to leaders of the European Parliament,
representatives of the European Commission, and European
finance ministers about provisions contained in the European
Union's proposed directive on Alternative Investment Fund
Managers (AIFM) that would pose significant implications for
the U.S. banking system and potentially increase systemic risk.
These letters also expressed concerns about the discriminatory
treatment of third country funds and managers included in the
draft AIFM directive. The letters urged modifications to the
AIFM proposal to ensure a level playing field for all financial
market participants.
Municipal Securities. On March 20, 2009, Chairman Frank,
Capital Markets Subcommittee Chairman Kanjorski, and 25
additional Members of the Committee sent a letter to Federal
Reserve Chairman Ben Bernanke and Treasury Secretary Geithner
urging them to create a temporary lending facility to improve
access to the bond market by State and local governments in
need of capital.
On May 1, 2009, Chairman Frank wrote another letter to 12
organizations representing the interests of State and local
governments, affirming his intention to advance H.R. 2549, the
Municipal Bond Fairness Act, which would require rating
agencies to rate corporate and municipal bonds on the same
footing. The letter also expressed support for a number of
other bills that would significantly improve conditions in the
distressed municipal securities market.
On May 21, 2009, the Committee held a hearing entitled
``Legislative Proposals to Improve the Efficiency and Oversight
of Municipal Finance.'' The hearing focused on five draft
bills:
the Municipal Bond Insurance Enhancement Act
to establish the Office of Public Finance within the
Treasury Department to provide Federal reinsurance for
municipal-only bond insurers, thus making it easier for
smaller, lesser known bond issuers to obtain bond
insurance and gain access to the capital markets;
the Municipal Bond Liquidity Enhancement Act
to authorize the Federal Reserve to fund new liquidity
facilities that could redeem variable rate municipal
bonds, thereby enhancing liquidity in that market;
the Municipal Financial Advisors Regulation
Act to establish a regulatory regime for financial
advisors to municipalities, including registration
obligations, a fiduciary duty, and prohibitions against
fraud and manipulation;
the Municipal Bond Fairness Act to impose
requirements on NRSROs to ensure that their municipal
bond credit ratings were not unfairly low relative to
their corporate bond ratings; and
The Federal Municipal Bond Marketing Support
and Securitization Act (H.R. 1669) to give the Treasury
Secretary the authority to provide credit enhancements
to municipal issuers and to purchase municipal bonds in
order to restore activity in the municipal bond market.
A markup amendment by Representative Steve Driehaus
incorporated the provisions of the Municipal Financial Advisors
Regulation Act first into H.R. 3817, the Investor Protection
Act, and subsequently into Section 7801 through Section 7803 of
H.R. 4173, the Wall Street Reform and Consumer Protection Act.
In addition, H.R. 4173 included a provision requiring the
Municipal Securities Rulemaking Board (MSRB) to be comprised of
a majority of independent public representatives at all times.
As enacted into law, Sections 975 through 979 of the Dodd-
Frank Act instituted similar reforms in the regulation of the
municipal securities market, including a registration regime
for municipal advisers, the imposition of a fiduciary duty and
other standards of conduct on those advisers, and changes in
the composition of the MSRB to ensure its independence. The
Dodd-Frank Act also requires the GAO to study the municipal
securities market and the adequacy of the disclosures that
municipal issuers must make to investors. Finally, the Dodd-
Frank Act established an Office of Municipal Securities within
the SEC, to administer the rules applicable to participants in
the municipal securities markets and to coordinate with the
MSRB.
Government Sponsored Enterprises
Charter Restructuring for Government Sponsored Enterprises
(GSEs). In general, the Committee held seven hearings during
the 111th Congress on the status of the housing government
sponsored enterprises and the U.S. housing finance system,
monitoring the conservatorships of Fannie Mae and Freddie Mac,
conducting oversight of the Federal Home Loan Banks, reviewing
the work of the Federal Housing Finance Agency (FHFA), and
considering proposals to reform the housing finance markets.
Committee staff additionally participated in multiple meetings
with interested parties to discuss the future of the U.S.
housing finance system and proposals to modify this system.
Section 1074 of the Dodd-Frank Act also requires that the U.S.
Department of the Treasury develop and submit to Congress a
proposal to reform the housing finance system by January 31,
2011.
To examine the status of the GSE conservatorships and
strategies for protecting taxpayers, the Capital Markets
Subcommittee convened two hearings during the 111th Congress.
On June 3, 2009, the Subcommittee held a hearing entitled ``The
Present Condition and Future Status of Fannie Mae and Freddie
Mac'' to review an FHFA report about the finances, operations
and mission-related activities of the enterprises, and
proposals to reform the U.S. housing finance system. On
September 15, 2010, the Capital Markets Subcommittee convened a
second hearing entitled ``The Future of Housing Finance Reform:
A Progress Update on the GSEs'' to examine the progress the
enterprises have made since being placed into conservatorship
and the strategies that the two enterprises and the FHFA had
employed to limit capital infusions by the Treasury Department
into Fannie Mae and Freddie Mac. The Subcommittee hearing also
explored whether to modify the strategies and devise others.
Discussions about the future of Fannie Mae and Freddie Mac
further arose during a May 26, 2010, Capital Markets
Subcommittee hearing entitled ``FHFA Oversight: Current State
of the Housing Government Sponsored Enterprises.''
The Committee convened three additional hearings that
considered proposals to improve, or otherwise alter the purpose
and functions of the GSEs and their appropriate roles in the
mortgage market. These hearings included:
``Housing Finance--What Should the New
System Be Able to Do?: Part I--Government and
Stakeholder Perspectives'' on March 23, 2010;
``Housing Finance--What Should the New
System Be Able to Do?: Part II--Government and
Stakeholder Perspectives'' on April 14, 2010; and
``The Future of Housing Finance--A Review of
Proposals to Address Market Structure and Transition''
on September 29, 2010.
In addition to reviewing wider proposals to reform the
housing finance system, on July 29, 2010, the Capital Markets
Subcommittee examined the mortgage insurance industry's
experiences during the recent financial crisis and the need to
alter the laws currently governing the industry in a hearing
entitled ``Future of Housing Finance: The Role of Private
Mortgage Insurance.''
On March 19, 2009, Chairman Frank also wrote to then-FHFA
Director James B. Lockhart III to urge him to rescind the
retention bonus programs at Fannie Mae and Freddie Mac, to
prohibit any further payment of bonuses to executives under
that program, and to pursue repayment of any already-paid
bonuses. Director Lockhart responded to Chairman Frank on March
20, 2009, stating that ``it is very important to work with the
current management teams and employees to encourage them to
stay and to continue to make important improvements to the
Enterprises.'' The Director stated that FHFA working with the
new CEOs of the enterprises, an outside pay consultant and with
the consultation of Treasury had developed employee-retention
programs.
On June 16, 2009, Chairman Frank and Representative Anthony
D. Weiner wrote to Fannie Mae CEO Michael Williams and Freddie
Mac Interim CEO John Koskinen regarding condominium standards
for loan purchase at the GSEs. The letter solicited the GSEs'
detailed guidelines for occupancy and other requirements
relating to the eligibility of single-family home loans
purchased by the GSEs.
On August 13, 2010, Capital Markets Subcommittee Chairman
Kanjorski, Representative Brad Miller and Representative Jackie
Speier wrote a letter to President Obama stating that the FHFA
must vigorously pursue all available legal claims for losses
sustained from the conservatorship of Fannie Mae and Freddie
Mac. They stressed that it is critically important to protect
the taxpayer and to let the American people know that the
government is acting on their behalf.
On July 31, 2010, Chairman Frank additionally requested in
a letter to Douglas Elmendorf, Director of the Congressional
Budget Office (CBO), that the CBO calculate budget projections
for Fannie Mae and Freddie Mac employing the Federal Credit
Reform methodology in addition to the ``fair-value''
methodology that had been published in the CBO's January 2010
report. Chairman Frank also asked that the CBO add this
approach to its analysis of the impact of Fannie Mae and
Freddie Mac activities, in order to have a consistent view of
the cost to the taxpayer going forward.
On September 16, 2010, Chairman Frank received a response
to his request to the CBO to estimate the budgetary impact of
the activities of Fannie Mae and Freddie Mac using the approach
of the Federal Credit Reform Act of 1990. The letter also
discussed alternative budgetary treatments for the GSEs, the
rationale for using fair-value subsidy estimates, and the
usefulness of alternative treatments in congressional decision
making.
GSE Regulatory Reform. During the 110th Congress, the
Housing and Economic Recovery Act of 2008 became law. Among
other things, this statute created the FHFA to regulate the
safety and soundness, as well as the mission, of Fannie Mae,
Freddie Mac and the Federal Home Loan Banks. The law also
requires annual testimony by the FHFA Director before Congress.
During the 111th Congress, the Capital Markets Subcommittee
therefore convened hearings on June 3, 2009, and May 26, 2010,
as noted in the section immediately above, to receive this
testimony and to review the work of the FHFA. Committee staff
also regularly met with FHFA staff and reviewed FHFA reports
regarding the work and solvency of the Federal Home Loan Banks,
Fannie Mae and Freddie Mac.
Federal Home Loan Bank (FHLB) System. The Committee
monitored the capital requirements, financial health and
stability of the FHLB System, as well as the System's ability
to fulfill its housing mission and provide liquidity to the
cooperative's member banks in a safe and sound manner during
the ongoing credit crisis. Committee staff held numerous
meetings and discussions with representatives from the FHLBs
and industry. The Committee staff additionally monitored the
capital levels of the FHLBs as a result of the troubled
mortgage assets held on their books. Finally, many of the
witnesses in the series of hearings held in the 111th Congress
on the future of housing finance addressed the role of the FHLB
System in supporting the U.S. housing finance framework.
GSE Appraisal Standards. The Committee reviewed the
implementation of the Home Valuation Code of Conduct (HVCC), a
legal agreement reached in March 2008 by New York Attorney
General Andrew Cuomo with Fannie Mae and Freddie Mac in
response to failures to ensure the independence of appraisals
and to prevent inflated appraisals on residential properties.
In response to complaints about the HVCC, the Committee
also approved an amendment to H.R. 3126, the Consumer Financial
Protection Agency Act of 2009, offered by Representative Gary
G. Miller, Representative Travis W. Childers, and others to
adopt a national appraisal independence standard to apply to
all residential mortgages, not just those purchased and
guaranteed by Fannie Mae and Freddie Mac. The amendment
additionally sunset the HVCC upon the adoption of the national
appraisal independence standard, and it required that lenders
and their agents compensate appraisers at a rate that is
customary and reasonable for their services. As enacted into
law, Section 1472 of the Dodd-Frank Act contains provisions
substantially similar to the Miller-Childers amendment.
FHLB Community and Economic Development. At the request of
Capital Markets Subcommittee Chairman Kanjorski, GAO completed
a study released on August 11, 2010, entitled ``Federal Housing
Finance Agency: Oversight of the Federal Home Loan Banks'
Agricultural and Small Business Collateral Policies Could Be
Improved.'' The report found that the FHLB System had fallen
short in its efforts to prioritize economic development in
communities throughout the country, as part of its mandate
requires it to do. In response to the report, Chairman
Kanjorski wrote to FHFA Acting Director Edward DeMarco and each
of the twelve FHLB presidents to request that they outline the
steps they intend to take to improve economic and community
development activities.
Resolution Funding Corporation (REFCorp) Payments. Although
the Committee took no direct oversight action on REFCorp
payments by the FHLBs, Committee staff continued to monitor
developments in this area throughout the 111th Congress. The
REFCorp obligation is presently expected to be met in 2012.
Housing
Mortgage Foreclosures and Loan Modifications. The Committee
held a number of hearings on Federal and private sector
activities with respect to loan modifications and foreclosure
prevention. Topics of the hearings included the Federal HAMP
loan modification program, the extent to which lenders were
making offers to reduce the principal amount on troubled,
underwater mortgages, forbearance and financial assistance to
unemployed homeowners, and other related topics.
The Subcommittee on Housing and Community Opportunity held
four hearings on the performance of mortgage servicers in
modifying loans and assisting homeowners, including
modifications through the Treasury's Home Affordable
Modification Program (HAMP). On October 21, 2009, Chairwoman
Waters and Congresswoman Castor wrote to Secretary Geithner
requesting information on the total number of HAMP trial
modifications started and the total number of trial period plan
offers extended to borrowers, disaggregated by State,
Metropolitan Statistical Area (MSA) and Congressional district.
In October 2009, the Treasury Department began providing
disaggregated HAMP data by State. The Department began
providing disaggregated data by MSA in November 2009. To date,
no data disaggregated by Congressional district has been
provided.
On September 30, 2010, Chairwoman Waters wrote to Federal
Housing Administration (FHA) Commissioner Stevens on the extent
to which FHA servicers were complying with FHA servicing
guidelines, in light of reports of servicer misconduct and
documentation fraud.
On October 4, 2010, Chairwoman Waters wrote to the CEOs of
Wells Fargo, Citigroup, HSBC, PNC Bank, and US Bank to request
that the banks thoroughly review their servicing practices and
impose a moratorium on all foreclosures pending the outcome of
that review.
Chairwoman Waters wrote to Secretary Geithner on October 4,
2010 asking about the status of the programs and the actions
the Treasury has taken to monitor and penalize servicers, if
necessary, in light of allegations of widespread servicer
misconduct.
On October 4, 2010, Chairwoman Waters wrote to Federal
Housing Finance Agency Acting Director DeMarco to request that
his agency review the servicing practices of firms servicing
loans it owns and to suspend all foreclosures on loans it owns
pending such a review.
On October 6, 2010, Chairwoman Waters wrote to California
Attorney General Edmund Brown asking him to examine the extent
to which that State's unfair and deceptive acts and practices
(UDAP) statutes could be used to prevent further improper
foreclosures.
The Subcommittee on Housing and Community Opportunity held
a hearing on November 18, 2010, to examine HAMP and other
issues related to foreclosure documentation and due process
requirements. Witnesses included housing and banking
regulators, mortgage servicers, consumer advocates, foreclosure
attorneys, and other experts.
In addition, the Subcommittee on Housing and Community
Opportunity held a hearing on May 6, 2009 on ``Legislative
Solutions for Preventing Loan Modification and Foreclosure
Rescue Fraud.'' The hearing examined the growing industry of
foreclosure consultants who purport to, for a fee, prevent a
foreclosure or obtain a loan modification on a homeowner's
behalf. Legislation to provide for the regulation of these
persons was included in the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010 (PL 111-203).
On March 18, 2009, Chairwoman Waters wrote to the Federal
Trade Commission, the Federal Communications Commission, and
the Department of Housing and Urban Development (HUD) about web
sites fraudulently purporting to offer Federal loan
modification assistance to unsuspecting homeowners. She
requested that the web sites be taken down as soon as possible.
On April 30, 2009, Chairwoman Waters wrote to the Federal
Trade Commission, asking the Commission to take immediate steps
to prevent foreclosure consultants from featuring the images
and words of Members of Congress on their website or in their
marketing.
Housing Preservation. The Committee held a series of
hearings on affordable housing preservation in 2009 and 2010,
which involved receiving testimony from HUD and a broad range
of stakeholders. On July 27, 2010, the Committee favorably
reported H.R. 4868, the ``Housing Preservation and Tenant
Protection Act of 2010,'' which would ensure long-term
preservation of HUD's assisted housing inventory while
protecting poor and low-income residents from being displaced
by higher rents once the affordability restrictions for their
unit are lifted.
FY 2010 Budget for the Department of Housing and Urban
Development, the Rural Housing Service, the Neighborhood
Reinvestment Corporation and the National Flood Insurance
Program. The Committee will conduct a hearing or a series of
hearings to consider Administration FY 2010 budget proposals
for these agencies and programs, including receiving testimony
from relevant agencies. Such hearings will concentrate on the
Department's efforts to be responsive to current market
challenges as well as ensuring decent affordable housing.
During these hearings the Committee will examine spend out
rates for assisted programs in addition to program oversight
and accountability measures.
Public Housing. The Committee held several hearings on the
current state of public housing, including the capital needs of
the public housing properties, new proposals to preserve
existing properties, and proposals to provide public housing
agencies and residents greater access to supportive services.
On June 15, 2009, Chairman Frank, with Subcommittee
Chairwoman Waters, wrote to the Secretary of Housing and Urban
Development, Shaun Donovan, requesting a moratorium on the
demolition and disposition of public housing units to allow the
Committee to work with the Department and other interested
stakeholders to enact legislation that would facilitate the
preservation of public housing units. The Committee held
several hearings concerning the preservation of public housing.
The Committee considered legislation, H.R. 5814, the ``Public
Housing Reinvestment and Tenant Protection Act of 2010,'' to
authorize the Choice Neighborhoods program, reform the public
housing disposition and demolition statute, increase access to
existing funding resources for public housing rehabilitation,
and authorize a new program for the training of public housing
residents as home healthcare providers. The Committee reported
the bill favorably on July 27, 2010. The bill included four
titles: the Choice Neighborhoods Initiative Act of 2010, the
Public Housing One-for-One Replacement and Tenant Protection
Act of 2010, the Public Housing Preservation and Rehabilitation
Act of 2010, and the Together We Care Act of 2010.
The Committee held a hearing on May 25, 2010 on ``The
Administration's Proposal to Preserve and Transform Public
Housing: The Transforming Rental Assistance Initiative'' also
known as PETRA. Witnesses at the hearing included HUD
officials, public housing agencies, HUD-assisted multifamily
housing owners, and tenant representatives and advocates. The
Administration's draft legislation proposes preserving public
and HUD-assisted housing properties through conversion to a
unified project-based assistance, enhancing housing choices for
residents and creating more uniform policies across HUD rental
assistance programs. The Committee took no legislative action
on PETRA.
On July 29, 2009, the Subcommittee on Housing and Community
Opportunity held a hearing on ``Academic Proposals on the
Future of Public Housing.'' At the hearing various academics
testified about the current state of the public housing stock,
resident characteristics, and issues facing the program as it
moves into the 21st century. On April 28, 2010, the
Subcommittee held a hearing on ``Legislative Proposals to
Preserve Public Housing.'' The hearing focused on two
discussion drafts. The first, the Public Housing One-for-One
Replacement and Tenant Protection Act of 2010, was designed to
preserve public housing stock through one-for-one replacement
of demolished or disposed units. The second, the Public Housing
Preservation and Rehabilitation Act of 2010, was designed to
provide public housing agencies with various financial tools in
order to facilitate preservation of the stock. Both pieces of
legislation were eventually included in HR 5814, the Public
Housing Reinvestment and Tenant Protection Act of 2010.
On July 20, 2009, the Subcommittee on Housing and Community
Opportunity held a field hearing in New York City on
``Legislative Proposals to Increase Work and Health Care
Opportunities for Public and Subsidized Housing Residents.''
The hearing covered two discussion drafts authored by Rep.
Velazquez. The first, the Earnings and Living Opportunity Act
would reform the Section 3 program which provides employment
opportunities for residents of public and assisted housing that
live in or near developments that undergoing rehabilitation or
reconstruction. The second, the Together We Care Act, would
create a pilot program to train public housing residents to
become home health care aides to elderly residents in public
housing. Witnesses included representatives from HUD and New
York State and local government; experts on public housing,
employment, and health care; and residents of public and
assisted housing. The Together We Care Act was also included in
HR 5814.
On June 30, 2010, Chairwoman Waters wrote to Secretary
Donovan in support of a qualified application of Moving-to-Work
(MTW) status by the Housing Authority of the City of Los
Angeles (HACLA), provided the MTW contract between HACLA and
HUD included one-for-one replacement, tenant protections,
preservation of units, and social services and employment
training programs.
HOPE VI. The HOPE VI program provides assistance to public
housing agencies to improve the living environment for
residents of severely distressed public housing projects. The
Administration's budget request for Fiscal Year 2009 and 2010
included funds for the Choice Neighborhoods Initiative, a grant
program to replace the HOPE VI program and provide funds for
the revitalization of public and HUD-assisted rental housing.
On March 17, 2010, the Committee held a hearing on the
Administration's proposal for the Choice Neighborhoods
initiative. Witnesses included representatives from HUD,
affordable housing advocacy groups and industry. Title I of
H.R. 5814, the Public Housing Reinvestment and Tenant
Protection Act of 2010, authorizes the Choice Neighborhood
program. In addition, the new Choice Neighborhoods program
would include a number of the important reforms from previous
HOPE VI legislation, including expanding the number of
replacement housing units, ensuring that residents have access
to revitalized sites, requiring monitoring and tracking of
displaced residents, and greater resident involvement in the
planning and re-development process. The Committee ordered
reported the bill favorably on July 27, 2010.
The Subcommittee on Housing and Community Opportunity
reviewed the HOPE VI program in light of the Administration's
proposal to replace the program with its Choice Neighborhood
Initiative, which was put forward first in the FY2010 budget
for the Department of Housing and Urban Development and again
in the FY2011 budget. During the July 29, 2009 Subcommittee
hearing on academic perspectives on the future of public
housing, expert witnesses discussed the HOPE VI program's
record on revitalizing public housing and building mixed-income
communities. The hearing also examined the impact of HOPE VI on
tenants', including tenants' ability to find affordable housing
during HOPE VI rehabilitations and return to their original
communities once redevelopment is complete. On March 17, 2010,
the Subcommittee held a legislative hearing on a discussion
draft of the Administration's Choice Neighborhoods Initiative.
The Choice Neighborhoods Initiative Act of 2010 was included
under Title I of H.R. 5814, which the Committee reported with a
favorable recommendation on July 27, 2010. The Initiative would
build upon the successes of HOPE VI, and expand the program by
allowing certain assisted and privately-owned housing to be
rehabilitated using program funds, allow non-profits to act as
primary applicants and for-profit developers to act as co-
applicants on grant applications, and allow certain non-housing
activities to be undertaken with program funds.
Affordable Housing Production. The committee did not hold
hearings or take action on the legislation adopted in the prior
Congress to establish a National Housing Trust Fund program.
However, the full House did approve $1 billion in funding for
the Fund, as part of a broader jobs bill, H.R. 2847.
Housing Tax Credit Programs. The committee did not hold
hearings on these programs, as they are not in the committee's
jurisdiction. However, as part of the enacted stimulus bill,
Congress approved authority for states to exchange up to 40
percent of their 2009 tax credit allocation, plus carryover
credits, for cash, for projects otherwise eligible for the low
income housing tax credit.
Federal Housing Administration (FHA). The Committee held
hearings on the health of the FHA fund and program, as well as
Administration budget proposals to raise annual FHA premiums
and to give FHA increased powers to crack down on FHA loan
originators that don't follow underwriting guidelines or are
not qualified to underwrite FHA loans. Ultimately, the
committee favorably reported and the House approved, H.R. 5072,
the ``FHA Reform Act of 2010,'' which included the
Administration's FHA proposals, plus a number of other
provisions designed to improve the operations of FHA and to
strengthen provisions focused on the financial health of the
FHA fund. Subsequently, the House approved legislation (H.R.
5981), which was enacted into law, that authorized the increase
in annual premiums that was included in the Administration's
original FHA budget proposal.
The Committee, along with the Subcommittees on Housing and
Community Opportunity and Oversight and Investigations, held a
combined six hearings on various issues related to the Federal
Housing Administration. The first two of those hearings
examined FHA's ability to oversee approved lenders and its
ability to prevent fraud (the first hearing, ``FHA Oversight of
Loan Originators'' was held on January 9, 2009 and the second
hearing, ``Strengthening Oversight and Preventing Fraud in FHA
and Other HUD Programs'' was held on June 18, 2009). The other
four hearings on FHA examined the status of FHA's Mutual
Mortgage Insurance Fund (MMIF), which in FY2009 fell below the
2 percent mandated under The Cranston-Gonzalez National
Affordable Housing Act (P.L. 101-625), as well as regulatory,
administrative and statutory proposals to improve the financial
health of the MMIF (the first Subcommittee hearing on FHA's
financial condition was held on October 8, 2010; a Committee
hearing also examined this topic on December 2, 2009; a
legislative hearing by the Subcommittee on the FHA Reform Act
of 2010 was held on March 11, 2010; a hearing on FHA's
implementation of higher loan fees and pending legislative
proposals was held on September 22, 2010). In these hearings,
the Subcommittee and Committee conducted oversight of FHA's
regulatory and administrative actions taken to improve the
financial condition of the MMIF, including: hiring a Chief Risk
Officer; creating stricter guidelines for the streamline
refinance program; announcing new appraisal controls;
increasing net worth requirements for mortgagees; increasing
the upfront mortgage insurance premium; changing downpayment
requirements for borrowers with low credit scores; and reducing
allowable seller concessions.
On April 22, 2010, the Committee reported out the FHA
Reform Act of 2010 (H.R. 5072) with a favorable recommendation,
which provided FHA with additional tools to improve the health
of the MMIF. The Act included a provision to allow the
Secretary to increase the annual mortgage insurance premium for
the single-family mortgage insurance program, which will
increase funds to the MMIF by an estimated $300 million per
month. The Act also extended the Secretary's authority to
require indemnification from Direct Endorsement lenders;
provided the Secretary with the authority to terminate
mortgagee approval on a nationwide basis if the mortgagee
originates or underwrites mortgages with excessive rates of
claim or default; and provided the Secretary with enhanced
ability to review mortgagee performance, including hiring
outside credit risk analysts, reviewing significant or rapid
increases in early defaults or claims, reporting mortgagee
actions taken against other mortgagees, enhancing annual and
quarterly reports on the MMIF, providing default and
origination information by loan servicer and originating direct
endorsement lender, and requiring a GAO report. The Act passed
the U.S. House of Representatives on June 10, 2010 by a margin
of 406-4. The provision in the Act that would allow the
Secretary to increase the annual mortgage insurance premium on
the single-family mortgage insurance program became law on
August 11, 2010 (P.L. 111-229).
Section 8 Housing Choice Voucher Program. On June 4, 2009,
the Subcommittee on Housing and Community Opportunity held a
hearing on H.R. 3045, the Section 8 Voucher Reform Act of 2009.
This legislation would reform and streamline the Section 8
voucher program by reforming the funding formula, simplifying
inspections and deductions, and reforming the Moving-to-Work
panel. Witnesses included HUD, public housing agencies, tenant
advocates, and housing experts. On July 23, 2009 the Committee
marked up the legislation and favorably ordered it reported to
the House.
Rural Housing. On April 22, 2010, the Committee held a
markup on April 22, 2010 on H.R. 5017, the ``Rural Housing
Preservation and Stabilization Act of 2010. The bill would
preserve Section 502 single family direct and guaranteed loan
programs. The Committee favorably reported the bill on April
22, 2010. On April 27, 2010, the House passed the bill under
suspension of the rules by a vote of 352 to 62. H.R. 5017
subsequently was referred to the Senate Subcommittee on
Banking, Housing, and Urban Affairs for further consideration.
The Committee conducted oversight of the Rural Housing
Services' multifamily mortgage restructuring and preservation
program as part of its series of hearings on affordable housing
preservation and H.R. 4868, the ``Housing Preservation and
Tenant Protection Act of 2010.'' The Committee held a hearing
and enacted legislation designed to make the RHS single-family
loan guarantee program self-financing. The Committee
subsequently held a series of meetings intended to ensure that
the legislation was quickly implemented.
On March 4, 2010, the Subcommittee on Housing and Community
Opportunity submitted a letter to the Subcommittee on
Appropriations to support funding of $27 million in FY2010 for
the Rural Housing Service Multifamily Housing Revitalization
Demonstration Program, which helps to finance Sections 514,
515, and 516 multifamily rental housing programs. On July 29,
2010, the language from H.R. 5017 was incorporated into the
Supplemental Appropriations Act of 2010, H.R. 4899. The
President signed H.R. 4899 into law (P.L. 111-212) on July 29,
2010.
On March 15, 2010, Chairwoman Waters, Chairman Frank, and
other members wrote to the U.S. Department of Agriculture,
requesting that the Rural Housing Service work with Congress on
a solution to provide for the continued solvency of the Section
502 single family loan guarantee program.
On September 28, 2010, the Chairwoman Waters, Chairman
Frank, and other Members wrote to the U.S. Department of
Agriculture requesting that the Rural Housing Service take
immediate steps to implement a mortgage servicing program to
help Section 502 Guaranteed and Direct loan borrowers avoid
foreclosure.
Section 202 Elderly and Section 811 Disabled Housing. Title
VII of H.R. 4868 reforms the Section 202 Supportive Housing for
the Elderly program to facilitate the construction of new
units, and the preservation of existing units. The Committee
ordered reported H.R. 4868 favorably on July 27, 2010. On
December 18, 2010, the Senate passed by unanimous consent its
versions of legislation to reform the Sections 202 and 811
programs--S. 118, the ``Section 202 Supportive Housing for the
Elderly Act of 2010'' and S. 1481, the ``Frank Melville
Supportive Housing Investment Act of 2010.'' On December 21,
2010, both bills passed the House on a voice vote.
Homelessness. The House approved an omnibus housing bill
that included the reauthorization of the McKinney-Vento
homeless programs, which was subsequently enacted into law
(P.L.111-22). The McKinney-Vento programs include provisions
designed to improve the effectiveness of federal homeless
programs and assistance, including revising the definition of
``homeless persons'' and ``chronic homelessness,'' targeting
more funds towards homeless prevention, and improving the
delivery of homeless assistance in rural areas.
On March 28, 2009, the Subcommittee on Housing and
Community Opportunity held a field hearing in Los Angeles,
California to discuss the impact of the foreclosure crisis on
various populations, including the specific effect of
foreclosures on the homeless population. Witnesses testified
about the growing number of homeless families and the lack of
resources available to the rising homeless population in both
Los Angeles County, as well as the rest of the country. On June
16, 2009, the House passed H.R. 403, the ``Homes for Heroes Act
of 2009'' which authorizes 20,000 new housing vouchers for
homeless veterans. H.R. 403 was referred to the Senate
Subcommittee on Banking, Housing, and Urban Affairs on June 17,
2009. The Subcommittee reviewed a report by the Government
Accountability Office and public comments submitted to HUD
regarding the proposed definition of homelessness under the
Homeless Emergency Assistance and Rapid Transition to Housing
Act of 2008.
On July 28, 2010, Chairwoman Waters sent a letter to the
Regulations Division of the Office of General Counsel at HUD in
support of a comment letter submitted by the John Burton
Foundation for Children Without Homes on June 16, 2010 in
response to the HUD public comment phase for defining the term
``homeless'' under the Homeless Emergency Assistance and Rapid
Transition to Housing Act. The letter supported the Burton
Foundation's letter proposing changes to the documentation
required to establish homelessness, the number of times a youth
must move prior to applying for aid, the required employment
barriers a youth must face to qualify for aid, and the lack of
coverage for youth leaving foster care.
Native American Housing. The Committee met with staff from
the Government Accountability Office on several occasions as
the GAO carried out a congressionally-mandated report on the
effectiveness of NAHASDA. The GAO subsequently published its
report (GAO-10-326) in February 2010, entitled ``Native
American Housing: Tribes Generally View Block Grant Program as
Effective, but Tracking of Infrastructure Plans and Investments
Needs Improvement.''
On April 10, 2010, the Subcommittee on Housing and
Community Opportunity held a legislative field hearing in
Window Rock, Arizona focusing on H.R. 3553, and the ``Indian
Veterans Housing Opportunity Act of 2009,'' which would ensure
HUD housing benefits to qualified Native American veterans with
disabilities. The hearing addressed the need for housing
services within the Native American veteran community,
especially among those with disabilities. On April 20, 2010,
H.R. 3553 passed out of the House under a suspension of the
Rules by voice vote and was referred to the Senate. On
September 27, 2010, the Senate passed H.R. 3553 by unanimous
consent without amendment. The President signed H.R. 3553 into
law (P.L. 111-269) on October 12, 2010,
Neighborhood Stabilization Program (NSP). The Committee
provided oversight to HUD on the implementation of NSP. On May
22, the Chairman wrote to HUD Secretary Shaun Donovan
requesting consideration of various implementation and
regulatory issues, including the purchase discount requirement,
the definition of abandoned properties, appraisal requirements,
and rules concerning previously acquired foreclosed properties.
In response, HUD reduced the purchase discount, clarified the
definition of abandoned properties, agreed to a case-by-case
review, if necessary, of rules concerning previously acquired
properties and noted the Department's agreement with the
appraisal requirements. The Subcommittee on Housing and
Community Opportunity conducted a field hearing in the Twin
Cities on January 23, 2010 that examined NSP and how that
program is being used to increase the supply of public and
assisted housing across the country, and specifically in the
Twin Cities. The Subcommittee heard testimony from HUD on the
condition of the housing market in the Twin Cities as well as
efforts under NSP to stabilize that market. The Subcommittee
also heard from local government officials about the challenges
that foreclosed, abandoned, and vacant property pose to the
city and from non-profit stakeholders about the need for NSP
and challenges in its implementation. Witness testimony
informed Subcommittee work with HUD on revising relevant
regulations to expedite spend out rates and allow grantees to
more effectively stabilize communities.
On May 13, 2010, Chairwoman Waters wrote to the Federal
Housing Administration, JPMorgan Chase, Citigroup, Wells Fargo
and Bank of America regarding the processes they use to dispose
of real estate-owned (REO) properties in their inventory and
asked that they attend a briefing in Los Angeles with the real
estate community.
Community Development Block Grants. The Committee held a
hearing on June 19, 2009 on the Economic Disaster Area Act of
2009 to explore a legislative proposal to set aside CDBG funds
for economic disaster areas. The act sought to utilize CDBG as
a resource to assist communities experiencing high and
persistent unemployment, particularly in rural areas. On April
20, 2010, the Chairman and Subcommittee Chairwoman Waters wrote
to the Appropriations Subcommittee requesting that $6 million
in budget authority for the CDBG Section 108 Loan Guarantee
Program be restored.
The Subcommittee on Housing and Community Opportunity
requested and received a report by the Government
Accountability Office (GAO) on how CDBG funds are distributed
and expended by grantees to subrecipients at the local level
(Community Development Block Grants: Entitlement Communities'
and States' Methods of Distributing Funds Reflect Program
Flexibility, September 15, 2010). This included a review of
entitlement grantee distribution and expenditure processes, and
methods of distribution used by states. GAO found that
distribution processes varied widely between grantees,
consistent with the flexibility embedded within the CDBG
program.
Federal Housing Response to Natural Disasters. The
Subcommittee on Housing and Community Opportunity held 2 days
of hearings in 2009 on August 28th and 29th in New Orleans,
Louisiana to examine issues facing the recovery of the city's
housing market 4 years after Hurricane Katrina. The hearings
focused on the status of two programs' critical to the City's
housing recovery: the redevelopment of the Big Four public
housing developments and the Road Home program.
On October 7, 2009, Chairwoman Waters wrote to HUD
Secretary Donovan concerning actions HUD planned to take to
address allegations that some developers were implementing
illegal work requirements.
On October 7, 2009, Chairwoman Waters wrote to Attorney
General Holder asking that he investigate repeated violations
of the Fair Housing Act by officials in St. Bernard Parish who
were blocking the development of an affordable rental housing
development in violation of a court order.
On April 14, 2010, Chairwoman Waters wrote to Attorney
General Holder and HUD Secretary Donovan to request that the
Department of Justice and HUD remedy the unequal funding
distribution formula that disadvantaged minority homeowners
through the State of Louisiana's Road Home Program.
On July 22, 2010, Chairwoman Waters wrote to Federal
Emergency Management Administrator Fugate to request that his
agency improve the safety of travel trailers that were used as
temporary housing units after Hurricane Katrina.
National Flood Insurance Program (NFIP). Due to the lack of
a long-term authorization, the National Flood Insurance program
lapsed three times during the 111th Congress: for two days in
March 2010, for 18 days in April 2010, and again from June 1 to
July 2, 2010. The Housing Subcommittee drafted legislation,
H.R. 5569, to continue the program for a three-month period
pending the enactment of a long-term authorization. On July 2,
2010, President Obama signed H.R. 5569, legislation to continue
the program from June 1 to September 30, 2010. On September 30,
2010, President Obama signed S. 3814, legislation to continue
the program through September 30, 2011 (P.L. 111-250).
On April 21, 2010 the Housing Subcommittee held a hearing
on ``Legislative Proposals to Reform the National Flood
Insurance Program.'' The hearing focused on two bills designed
to reform and expand the NFIP: H.R. 5114, the Flood Insurance
Reform Priorities Act of 2010 and H.R. 1264, the Multiple Peril
Insurance Act of 2009. H.R. 5114 would reauthorize the flood
insurance program for five years and provide various reforms to
the program, including the phasing in of actuarial rates for
newly mapped homeowners and the elimination of subsidized rates
over time for certain categories of properties. H.R. 1264 would
direct the NFIP to offer actuarially priced optional wind
insurance policies and would prohibit insurers from including
anti-concurrent causation provisions in their homeowners
insurance policies. On April 22, 2010, both bills were ordered
favorably reported; on July 15, 2010, the House of
Representatives passed H.R. 5114 by a recorded vote of 329 to
90.
HUD Mission, Management Reform and Staffing. Both the
Committee and Subcommittee provided oversight of HUD's mission,
management reform, and staffing with numerous hearings and
legislation as well as correspondence and meetings with HUD and
other federal agency officials; state and local housing
officials; the housing industry; and affordable housing,
consumer and civil rights advocates. Specific areas of HUD's
mission, management, and staffing that the Committee and
Subcommittee focused on include FHA, public housing, Section 8,
HUD-assisted housing, the Neighborhood Stabilization Program,
the McKinney-Veneto Homeless Programs; housing counseling, fair
housing, green development, veterans housing, disaster
assistance, Native American housing, Community Development
Block Grant Program, RESPA, and the SAFE Act.
Project-Based Section 8 Program. The Committee will
continue to review the timeliness of Housing Assistance
Payments for project-based Section 8 properties and may review
the need to make statutory changes to ensure the timeliness of
Housing Assistance Payments.
Housing Counseling. The Committee held a briefing on March
22, 2010, to provide an overview of the housing counseling
industry and the role of nonprofit housing counselors for
Congressional staff. The Dodd-Frank Act contained a provision
to establish an Office of Housing Counseling within HUD to
boost homeownership and rental housing counseling.
On May 13, 2009, the Subcommittee on Housing and Community
Opportunity held a hearing on the role of NeighborWorks and
housing counseling intermediaries in preventing foreclosures
through housing counseling. The hearing focused specifically on
challenges and outcomes under the National Foreclosure
Mitigation Counseling (NFMC) Program, a NeighborWorks program
established to provide foreclosure counseling to troubled
homeowners by qualified foreclosure counseling intermediaries
receiving grant funding under the program.
Fair Housing. The Committee met with staff from the
Government Accountability Office on several occasions as the
GAO carried out a report requested by Members of the Committee
on HUD's oversight and enforcement of the statutory mandate to
ensure that HUD programs affirmatively further fair housing.
The GAO issued a report (GAO-10-905) in October 2010 entitled
``Housing and Community Grants: HUD Needs to Enhance Its
Requirements and Oversight of Jurisdictions' Fair Housing
Plans.'' Members of the Committee who requested the report have
written to HUD to recommend that the Department implement each
of the GAO report's recommendations.
On January 20, 2010, the Subcommittee on Housing and
Community Opportunity held a legislative hearing on H.R. 476,
the ``Veterans, Women, Families with Children, and Persons with
Disabilities Housing Fairness Act of 2010.'' The bill would
authorize HUD to establish a nationwide housing discrimination
testing program with an authorization of $15 million annually
for five years; authorize $42.5 million annually for five years
for the HUD Fair Housing Initiatives Program; and establish a
$5 million competitive grant program to study the root causes
and effects of housing discrimination. On May 27, 2010, the
Subcommittee held a subcommittee markup of H.R. 476 and passed
the bill out of the subcommittee. The full Committee favorably
reported the bill by voice vote on July 28, 2010.
Green Development. On September 19, 2010, the Committee
held a hearing on H.R. 4690, the ``Livable Communities Act of
2010,'' which would codify the Office of Sustainable
Communities at HUD, establish an independent, interagency
council on sustainable communities within the Executive Branch,
and authorize a comprehensive planning grant program for
municipalities and a sustainability challenge grant program to
help communities execute their comprehensive regional plans.
The Subcommittee on Housing and Community Opportunity held
two hearings in June 2009 on H.R. 2336, the ``Green Resources
for Energy Efficient Neighborhoods Act of 2009 or GREEN Act of
2009.'' The bill would create programs within HUD that are
designed to make residences energy efficient to the 2009
International Energy Conservation Code (IECC), which contains
energy efficiency criteria for residential and commercial
buildings, as well as additions to existing buildings. The
witnesses testified about the importance of affordable green
housing, especially for low-income families living in multi-
family housing projects. On April 22, 2010, the Committee
favorably reported H.R. 2336 by voice vote.
Housing and Services. The Committee will conduct a hearing
or a series of hearings on the delivery of housing-based social
services, including child care, education, and employment
training for low income families, and mental health and
substance addiction services for chronically homeless
individuals. The Committee will also examine the extent to
which affordable housing developers and their social service
provider partners face challenges in financing these services.
Oversight of Federal Housing Programs. The Committee will
hold oversight hearings on other Federal housing programs run
by HUD and the Rural Housing Service. In addition to examining
whether these programs are meeting their housing missions, they
will focus on the costs, spend out rates and oversight and
accountability measures governing these programs.
Real Estate Settlement Procedures Act (RESPA). The
Committee provided oversight of RESPA implementation through
meetings with stakeholders and with HUD. The final RESPA rule
was published on November 17, 2009 (73 FR 68204) and went into
full effect January 1, 2010. The Dodd-Frank Wall Street Reform
and Consumer Protection Act of 2010 (P.L. 111-203) contained
provisions to transfer enforcement of RESPA to the Bureau of
Consumer Financial Protection in order to streamline and
strengthen consumer protections during the real estate
settlement process.
Escrows. As part of the debate on H.R. 1728, the Mortgage
Reform and Anti-Predatory Lending Act, the Committee explored
problems related to the establishment and servicing escrow
accounts. Title V of H.R. 1728 contained reforms drafted by
Representatives Paul E. Kanjorski and Judy Biggert requiring
the establishment of escrow accounts for homeowners with less-
than-perfect credit scores. The title also established new
disclosures for homeowners who waive escrow services and
required lenders to include escrow estimates in repayment
analysis prepared in conjunction with the establishment of a
mortgage on a residential property. H.R. 1728 passed the
Committee on April 29, 2009, and the House on May 7, 2009. The
Kanjorski-Biggert escrow reform provisions contained in H.R.
1728 became law in Subtitle E, Title XIV of the Dodd-Frank Act.
Mortgage Broker Licensing and Oversight. The Committee
provided oversight of the promulgation of the S.A.F.E. Mortgage
Licensing Act of 2008, which established a mortgage originator
licensing system and registry to better protect homebuyers. The
Chairman wrote to HUD on May 13, 2010 requesting that HUD
clarify application of the Act to activities concerning
compensation and gain. The Chairman also wrote to HUD on July
22, 2010 requesting guidance on the S.A.F.E. Act implementation
date, information regarding the unique status of manufactured
housing retailers, and the consideration of a state imposed de
minimis standard. HUD agreed to clarify the application of the
S.A.F.E. Act towards activities concerning compensation and
gain, provided guidance on the implementation date, declined to
agree that states have authority to implement a de minimis
standard, and indicated it would consider the unique status of
manufactured housing retailers in a final rule. The Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010
contained provisions to transfer enforcement of the S.A.F.E.
Act to the Bureau of Consumer Financial Protection to further
enhance consumer protections with respect to mortgage loan
origination and licensing.
Impact of Bankruptcy Cram Down on the Mortgage Market. The
Committee will conduct oversight on the impact of bankruptcy
cram down legislation on the mortgage market, in general, and
specifically on the programs operated by the FHA and the RHS.
The oversight review will include the impact of bankruptcy cram
down on continued lender participation, the solvency of the FHA
Mutual Mortgage Insurance Fund and the solvency of the RHS
Section 502 program. The Committee will also conduct oversight
on the impact of cram down legislation on primary mortgage
interest rates, overall access to mortgage credit, especially
for borrowers with weaker credit histories and the future of
the GSE's and the securitization market.
Oversight of Entities Receiving Government Funds. Both the
Committee and Subcommittee provided oversight of for-profit and
non-profit entities receiving government funds through federal
housing programs administered by HUD, FEMA, the Departments of
Agriculture and Treasury. This oversight included GAO reports,
hearings and legislation, as well as correspondence and
meetings with relevant officials and stakeholders. Specific
areas of review include loan modifications and mortgage
foreclosure prevention, public housing, FHA, Section 8, HUD-
assisted housing, rural housing, the Neighborhood Stabilization
Program, the McKinney-Vento Homeless Programs, housing
counseling, fair housing, disaster assistance, and the
Community Development Block Grant Program.
Insurance
Insurance Regulatory Modernization. While the States have
long functioned as the primary regulators of the insurance
marketplace, during the 111th Congress the Subcommittee on
Capital Markets, Insurance and Government Sponsored Enterprises
continued to examine both Federal and State efforts to
modernize and improve insurance regulation. On May 14, 2009,
for example, the Capital Markets Subcommittee convened a
hearing entitled ``How Should the Federal Government Oversee
Insurance?'' The hearing focused on insurance regulatory
reform, particularly in light of the larger regulatory reform
questions raised and efforts undertaken as a result of the
financial crisis.
On June 16, 2009, the Capital Markets Subcommittee
subsequently held a hearing entitled ``Systemic Risk and
Insurance.'' The hearing explored how insurance would fit into
a restructuring of the financial services regulatory system,
including an examination of the complexities of insurance firms
and insurance holding companies. The hearing also reviewed
particular types of insurance products to determine whether
they pose a risk to the insurance or financial services system
and are of national significance.
On March 18, 2010, the Capital Markets Subcommittee met at
a hearing entitled ``Insurance Holding Company Supervision.''
The hearing focused on:
the existing authorities of State and
Federal regulators with regard to insurers and
affiliated companies under the same holding company;
the supervision and the coordination among
State and Federal regulators of these financial
entities; and
how insurance holding company regulation
differs from bank and thrift holding company
regulation.
Since the 109th Congress, the Committee has additionally
favorably reported and the House has repeatedly passed a
version of the Nonadmitted and Reinsurance Reform Act. This
legislation to streamline the regulation of surplus lines
insurance and reinsurance was included in House-passed H.R.
4173 in the 111th Congress and became law as part of the Dodd-
Frank Act on July 21, 2010. Likewise, those sections of the
Dodd-Frank Act addressing the enhanced supervision and orderly
resolution of systemically significant financial institutions
drew heavily on the ongoing insurance regulatory modernization
inquiries of the Capital Markets Subcommittee in the 110th and
111th Congresses and represent significant advances in the
modernization of insurance supervision in the United States.
Financial Guarantee Insurance. The financial guarantee
insurance industry with products like municipal bond insurance,
credit default swaps, and mortgage insurance played a central
role in the credit and liquidity crisis of 2008 and 2009.
Following on the Committee's focus on the bond insurance
segment of the financial guarantee insurance industry in the
110th Congress, during the 111th Congress the Committee
undertook closer oversight and review of the mortgage insurance
segment of the financial guarantee insurance industry.
On July 29, 2010, the Capital Markets Subcommittee held a
hearing to examine the ``Future of Housing Finance Reform: The
Role of Private Mortgage Insurance.'' The proceeding focused on
the business model, structure, regulation, history and
performance of the private mortgage insurance (PMI) industry.
The hearing also reviewed the PMI industry's experiences during
the recent financial crisis and explored the need to alter the
laws currently governing the industry.
The Committee monitored the ongoing efforts of the
financial guarantee industry to recapitalize itself, and
Committee staff regularly met with regulators, insurers and
industry experts to examine these matters. On July 7, 2009,
Capital Markets Subcommittee Chairman Kanjorski also sent a
letter to the U.S. Department of the Treasury recommending that
the Federal government help to recapitalize mortgage insurers
by providing funding access to the Troubled Asset Relief
Program. Chairman Kanjorski additionally recommended that the
Treasury Department consider how the mortgage insurance
industry could be directly regulated at the Federal level.
On March 25, 2010, Capital Markets Subcommittee Chairman
Kanjorski publicly commented that the ongoing troubles in the
bond insurance industry demonstrated the need for better
information at the Federal level about developments in the
insurance industry. The Committee favorably reported out of the
Committee H.R. 2609, legislation introduced by Chairman
Kanjorski to create a Federal Insurance Office (FIO) within the
Treasury Department. As enacted into law in Title V, Subtitle A
of the Dodd-Frank Act, the FIO is authorized to gather
information about the insurance industry and to monitor the
insurance industry for systemic risk purposes, among other
duties and responsibilities.
Insurer Access to the Troubled Asset Relief Program (TARP).
In addition to its oversight of the general market impacts of
the TARP program and the Emergency Economic Stabilization Act
of 2008, the Committee gave particular attention to issues
surrounding insurer access to TARP during the 111th Congress.
Most notably, in March 2009 the Committee and the Capital
Markets Subcommittee held a pair of hearings that focused
substantially on the Federal intervention at the American
International Group (AIG). Leading up to and following these
hearings the Committee maintained constant, ongoing
communication with officials at the Federal Reserve Bank of New
York, the Treasury Department, the Government Accountability
Office and AIG to monitor progressive changes to and plans for
the winding-up of the substantial Federal assistance made
available to AIG in late 2008 and early 2009. Likewise, the
Committee conducted ongoing oversight and regular reviews of
the limited additional insurance company participation in the
TARP program. The Committee received confirmation of the
repayment of TARP fund by all insurers, other than AIG, and
received detailed information on the planned repayment of TARP
funds by AIG.
Regulation of Insurer Systemic Risks. On March 5, 2009, the
Capital Markets Subcommittee held a hearing entitled
``Perspectives on Systemic Risk'' that began the Committee's
examination into systemic risk at complex financial
institutions, including insurers. This examination and
Committee's ongoing reviews culminated with the inclusion of
insurers into the Dodd-Frank Act's provisions designed to
address the supervision and orderly resolution of systemically
significant financial institutions.
Terrorism Risk Insurance. Throughout the 111th Congress,
Committee staff monitored developments related to the
implementation of the Terrorism Risk Insurance Program,
reviewed studies about the economic security initiative, and
examined budget proposals by the Administration to alter the
program.
Agent and Broker Licensing Reform. H.R. 2554, the National
Association of Registered Agents and Brokers Reform Act of
2010, was forwarded by the Committee to the House, where the
legislation passed by voice vote on March 3, 2010. H.R. 2554
establishes a completely reciprocal licensing process for
insurance agents and brokers. No further action occurred on
H.R. 2554 in the 111th Congress.
Surplus Lines and Reinsurance. As in the prior two
Congresses, the House in the 111th Congress passed H.R. 2571,
the Nonadmitted and Reinsurance Reform Act, on September 9,
2009. The measure, similar to versions previously approved by
other Congresses, updates State-based laws with respect to
surplus lines insurance and reinsurance markets. During the
initial consideration of the comprehensive financial services
regulatory reform in the House in December 2009, Oversight
Subcommittee Chairman Moore and Capital Markets Ranking Member
Garrett successfully offered an amendment on the floor to
incorporate H.R. 2571 into H.R. 4173, the Wall Street Reform
and Consumer Protection Act of 2009. The Moore-Garrett
amendment remained in the Dodd-Frank Act and became law as
Title V, Subtitle B.
Guarantee Funds. The role and appropriate reliance on the
system of State insurance guarantee funds remained a
consideration of the Committee during the debate on the broader
regulatory reform provisions designed to address the
supervision and orderly resolution of systemically significant
financial institutions. As a result, the Committee specifically
addressed the central role and importance of State insurance
guarantee funds in the orderly resolution of complex financial
institutions that include insurance affiliates or subsidiaries.
The Committee's conclusions in this regard were incorporated
into the FDIC dissolution provisions of Title II of the Dodd-
Frank Act and became public law on July 21, 2010.
Insurance Investments. Committee staff reviewed proposals
like those found in H.R. 1479, the Community Reinvestment
Modernization Act, to require greater disclosures about the
availability of insurance products and information about the
investments of insurers. Committee staff also reviewed State
insurer requirements to help fund the development of affordable
housing, commercial and industrial real estate projects, small
businesses, and other community initiatives.
Insurance Information. Building substantially on the
oversight and legislative activities in the areas of insurance
information and insurance regulatory reform of the Capital
Markets Subcommittee throughout the 110th and 111th Congresses,
the Committee held a hearing on October 6, 2009, entitled
``Capital Markets Regulatory Reform: Strengthening Investor
Protection, Enhancing Oversight of Private Pools of Capital,
and Creating a National Insurance Office.'' The third panel at
this hearing examined H.R. 2609, the Insurance Information Act
of 2009. H.R. 2609 was the 111th Congress iteration of Capital
Markets Subcommittee Chairman Kanjorski's Office of Insurance
Information Act of 2008. Both bills create a first ever
resource center within the Treasury Department to provide
advice and expertise on insurance policy to the Administration
and Congress.
On December 2, 2009, H.R. 2609 passed the Committee by a
voice vote. The legislation to create the Federal Insurance
Office subsequently passed the House as part of H.R. 4173 and
became law as part of the Dodd-Frank Act. Since then, Committee
staff has monitored efforts by the Treasury Department to
implement the Federal Insurance Office Act of 2010 and to
appoint the first Director of the Federal Insurance Office.
Credit Scoring and Insurance. On May 12, 2010, the
Subcommittee on Financial Institutions and Consumer Credit held
a hearing entitled ``Use of Credit Information Beyond Lending:
Issues and Reform Proposals.'' The hearing reviewed the
methodology, use and impact of personal consumer credit
information in the financial services marketplace. The first
panel focused on how credit-based insurance scores are used in
the rating and underwriting of insurance and efforts to improve
the supervision and consumer understanding of the use of
credit-based insurance scores. The second panel focused on
other uses of credit information.
Natural Catastrophe Insurance. On March 10, 2010, the
Capital Markets Subcommittee and the Subcommittee on Housing
and Community Opportunity jointly held a hearing entitled
``Approaches to Mitigating and Managing Natural Catastrophe
Risk: H.R. 2555, The Homeowners' Defense Act.'' The hearing
focused on H.R. 2555 which would provide Federal encouragement
for States to develop State-sponsored reinsurance programs
designed to enhance the efficiency by which catastrophic risks
are transferred into the capital markets. Specifically, H.R.
2555 would: (1) establish a non-profit consortium to coordinate
catastrophe risk management actions by the States; (2) provide
for a Federal guarantee of debt obligations issued by eligible
state-based catastrophe insurance programs; (3) establish a
Federal program to provide reinsurance to eligible state-based
catastrophe insurance programs; (4) authorize a new Federal
grant program to help the States prevent and mitigate losses
from natural disasters; and (5) direct the GAO to study and
report on the use of risk-based pricing by state-based
catastrophe insurance programs. H.R. 2555 passed the Committee
on April 27, 2010, and was favorably reported to the House on
July 13, 2010.
Retirement Products. Throughout the 111th Congress, the
Committee monitored ongoing developments regarding the
regulation of indexed annuities and litigation surrounding the
U.S. Securities and Exchange Commission's indexed annuities
rule, commonly known as Rule 151(A). Seeking to await judicial
resolution of the issues relating to Rule 151(A), the Committee
undertook no formal action with regard to the regulation of
indexed annuities. The Committee's deference to the judicial
process in this regard was overtaken by the inclusion in the
conference on the Dodd-Frank Act of Section 989J, legislative
language intended to preclude oversight of the sale of indexed
annuities by the Securities and Exchange Commission.
Reinsurance. During the Committee's consideration of H.R.
2609, the Insurance Information Act of 2009, Oversight
Subcommittee Chairman Dennis Moore and Representative John
Campbell offered an amendment requiring the new office to
conduct a study on the global reinsurance market and the
critical role it plays supporting the U.S. insurance markets.
The Moore-Campbell amendment was ultimately incorporated into
the Dodd-Frank Act and enhanced to include an additional study
by the new Federal Insurance Office focused on the ability of
State regulators to access reinsurance information for
regulated companies in their jurisdictions following the
enactment of the Nonadmitted and Reinsurance Reform Act as part
of the Dodd-Frank Act.
International Developments. In its ongoing review and
legislative actions in the areas of insurance regulatory reform
and insurance information, the Capital Markets Subcommittee and
the Committee sought out and incorporated, as appropriate,
information regarding international developments in insurance
regulatory oversight. Most notably, during its hearing entitled
``Systemic Risk and Insurance'' on June 16, 2009, the Capital
Markets Subcommittee received testimony from the European
Parliament's rapporteur (sponsor) for legislation to create a
European Supervisory Authority for Insurance. Throughout the
development of the insurance-related sections of the Dodd-Frank
Act, the Committee also sought and received frequent input from
foreign governments, foreign insurers and reinsurers operating
in the United States, and public advocacy experts specializing
in the possible consumer and international trade implications
of the insurance regulatory and insurance information
provisions.
International Finance
Annual Report and Testimony by the Secretary of the
Treasury on the State of the International Financial System and
International Monetary Fund Reform. Pursuant to 22 U.S.C. 262r-
4, the Secretary of the Treasury submitted a report to Congress
in October 2009 regarding the state of the international
financial system. On September 22, 2010, the Committee held a
hearing, entitled ``The State of the International Financial
System, Including International Regulatory Issues Relevant to
the Implementation of the Dodd-Frank Act,'' at which Timothy
Geithner, Secretary of the Treasury, was the only witness. This
hearing, which was intended to assess the contents of the
October report and discuss other timely issues regarding the
state of the international financial system, focused primarily
on the state of efforts by the Basel Committee on Banking
Supervision to reach a new international capital accord, with
emphasis on how the new capital accord being crafted could be
expected to affect U.S. banking entities.
In spring 2009, Chairman Frank cautioned Treasury and
International Monetary Fund (IMF) officials that unless a
substantial amount of IMF resources was made available to help
the world's poorest countries that were being increasingly
affected by the global economic crisis, there may not be
sufficient support in the House to secure passage of the
Administration's request to boost IMF resources. The policy
goal of insisting that some of the profits from the proposed
sale of IMF gold should be used to help alleviate the most
vulnerable countries' burdens, was incorporated as a
congressional directive in the ``Supplemental Appropriations
Act, 2009,'' thus strengthening the hand of the Treasury
Secretary to negotiate such an outcome.
On May 13, 2009, Chairman Frank wrote to IMF Managing
Director Dominique Strauss-Kahn to express his appreciation for
the IMF's commitment under Strauss-Kahn's leadership to showing
a greater understanding of the social dimension that must be
present when decisions about economic assistance are made.
On May 13, 2009, the Subcommittee on International Monetary
Policy and Trade held a hearing entitled, ``Implications of the
G-20 Leaders Summit for Low-Income Countries and the Global
Economy.'' The hearing focused on the challenges faced by
emerging markets and developing countries in the current global
economic downturn and the importance of providing resources
through the international financial institutions to emerging
markets and developing countries to help finance
countercyclical spending, bank recapitalization,
infrastructure, trade finance, balance of payments support,
debt rollover, and social support.
On July 8, 2009, Chairman Frank wrote to IMF Managing
Director Dominique Strauss-Kahn emphasizing that he was able to
work to help secure passage of the IMF package in the House in
large part because he was able to assure his Democratic
colleagues that the most vulnerable and poor low-income
countries would not be left behind, and Frank reminded Strauss-
Kahn how important it was to the United States that he push for
an international consensus on this policy among IMF members.
On January 27, 2010, the Subcommittee on International
Monetary Policy and Trade held a hearing entitled ``The State
of Global Microfinance: How Public and Private Funds Can
Effectively Promote Financial Inclusion for All.'' Members
examined the microfinance industry as one of the great success
stories of foreign aid and multilateral development banks'
private sector initiatives, providing millions of poor people
with basic financial services. Yet there are still gaps in the
availability of microfinance funding, especially in Sub-Saharan
Africa, in part due to lack of capacity to run microfinance
programs, and weak capital market frameworks that limit the
flows and effectiveness of capital. Data indicate that
countries can improve levels of financial inclusion by creating
effective policy and regulatory oversight.
On November 16, 2010, the Subcommittee on International
Monetary Policy and Trade held a hearing entitled ``The Global
Financial Crisis and Financial Reforms in Nigeria.'' This
hearing examined the financial reforms being implemented in
Nigeria and the impact of the global financial crisis in Sub-
Saharan Africa, which suffered from the secondary effects of
the global financial crisis as demand and prices for Africa's
primary exports collapsed, along with falling remittances.
International response to the crisis included a dramatic
increase in IMF resources, with some reweighting of SDR
allocations to the benefit of developing countries, including
in Africa. Windfall profits from planned IMF gold sales
garnered an estimated $6 billion in additional capital
available for least developed countries, of which Africa is
expected to be a primary beneficiary. The World Bank and
African Development Bank dramatically increased lending and
grant programs to Africa in response to the crisis. In Nigeria,
the governor of the Central Bank led efforts to modernize the
country's financial and capital markets, with the Nigerian
government providing a $4 billion bailout to several domestic
banks that were near collapse while introducing stringent new
capital rules.
On May 20, 2010, the Subcommittee on International Monetary
Policy and Trade and the Subcommittee on Domestic Monetary
Policy and Technology held a joint hearing entitled ``The Role
of the International Monetary Fund and Federal Reserve in
Stabilizing Europe.'' Members discussed the Federal Reserve's
plan to re-open temporary U.S. dollar liquidity swap facilities
with foreign central banks and the significant role of the
International Monetary Fund in the effort to help foster
financial stability in Europe, including a committment of
approximately $40 billion of IMF funds, as part of a larger
multilateral financing package, to help the Greek government
address its economic challenges.
Exchange Rates. The Committee will review and assess the
semi-annual report to Congress from the Secretary of the
Treasury on International Economic and Exchange Rate Policies
pursuant to the Omnibus Trade and Competitiveness Act of 1988.
The Committee will monitor developments related to the exchange
rate policies of the United States' major trading partners and
will pay particular attention to the policies of countries that
seek to maintain a fixed exchange rate for their currencies.
The Committee will assess the effects of these currency
practices on the competitiveness of U.S. firms and on the
stability of the international financial system.
Trade in Financial Services. The Committee continued to
monitor the negotiation of financial services and investment
provisions in the U.S.-Korea Free Trade Agreement, with
particular attention to the elimination of barriers to the
delivery of financial services in Korea, such as foreign
ownership limitations, product and service restrictions, client
restrictions, and non-transparent regulations.
Global Capital Flows. The Committee will monitor the
effects of the flow of capital globally, and in particular,
trends in foreign countries' investments of their large
currency reserves in the United States and other countries. The
Committee will assess the effects of the investment of these
reserves on global financial stability and on multilateral
policy initiatives. The Committee will also assess U.S. and
multilateral policies on the regulation of capital flows.
Trade in Financial Services. The Committee continued to
monitor the negotiation of financial services and investment
provisions in the U.S.-Korea Free Trade Agreement, with
particular attention to the elimination of barriers to the
delivery of financial services in Korea, such as foreign
ownership limitations, product and service restrictions, client
restrictions, and non-transparent regulations.
Export-Import Bank of the United States. The Subcommittee
on Oversight and Investigations (O&I) and the Subcommittee on
International Monetary Policy and Trade (IMPT) held a hearing
entitled ``Ex-Im Bank Oversight: The Role of Trade Finance in
Doubling Exports over Five Years,'' held on September 29, 2010.
The hearing focused on the work of the Export-Import Bank of
the United States (``Ex-Im Bank''). The Subcommittees reviewed
its activities to promote export growth, especially since the
onset of the global financial crisis and recession, which made
credit availability more challenging for businesses. The
Subcommittees also examined what role Ex-Im Bank is and should
be playing in the Obama Administration's National Export
Initiative to double exports over five years. Another key issue
was ensuring small businesses had adequate access to trade
finance through Ex-Im.
The O&I and IMPT Subcommittee Chairs and Ranking Members
transmitted a letter to GAO the day of the hearing, asking that
they review ``how Ex-Im's efforts compare to the export
financing efforts of other export credit agencies,'' and report
back to Congress. This initial hearing lays the groundwork for
reauthorizing the Export-Import Bank when their authority
expires in 2011.
International Clean Technology Fund. After examining at a
hearing last Congress the Administration's proposal to support
a multilateral ``Clean Technology Fund'' to help developing
economies develop clean technology to reduce greenhouse gas
emissions, the Committee worked with the leadership and the
House Appropriations Committee to include in the ``Consolidated
Appropriations Act, 2010'' authorization for U.S. contributions
to a ``Clean Technology Fund'' at the World Bank, which
included policy conditions on country and project eligibility,
restricted the types of projects, technologies, and economic
sectors that could receive funds, and limited the amount of
funds that could be allocated to any one country.
Counter-Terrorism Financing Policy. On May 26, 2010, the
Subcommittee on Oversight and Investigations held a hearing
entitled ``Anti-Money Laundering: Blocking Terrorist Financing
and Its Impact on Lawful Charities.'' The hearing examined how
money laundering laws and regulations are enforced with respect
to charitable organizations and government efforts to stop the
flow of money to terrorist organizations.
On September 28, 2010, the Subcommittee on Oversight and
Investigations held a hearing entitled ``A Review of Current
and Evolving Trends in Terrorism Financing.'' The hearing
examined how terrorist organizations continue to finance their
activities, how these organizations have altered their
financing techniques to avoid current methods exercised by the
U.S. government to stem the flow of money to terrorists, and
potential vulnerabilities in the financial institutions system
of the U.S. and the world that could be exploited by terrorist
organizations.
Committee staff met regularly with staff of FinCEN to
discuss issues related to the Terrorist Financing Working Group
and FinCEN's role as our nation's foreign intelligence unit
(FIU) in coordinating with Egmont and the Financial Action Task
Force (FATF).
U.S. Oversight Over the International Financial
Institutions (IFIs). Throughout the 111th Congress, Committee
staff met on a regular basis with Treasury officials and
representatives from the multilateral development banks (MDBs)
to examine MDB requests for significant general capital
increases from donor countries, and staff closely monitored the
status of proposed reforms at each development institution and
emphasized that these reform agendas would be an integral part
of the capital increase request process.
In spring 2009, Committee staff joined a policy expert from
the AFL-CIO, a Washington representative of the International
Trade Union Confederation, and a trade and labor expert from
the Carnegie Endowment for International Peace to negotiate
with the World Bank a moratorium on the Bank's use of its
``Employing Workers'' Indicator, which encourages the reduction
of workers' protection, in its annual ``Doing Business''
report. The Bank also agreed to convene a consultative group to
propose possible changes to the Indicator and to work to
develop a new workers' protection indicator that would
encourage compliance with core labor standards and improved
social protection.
In June 2009, Committee staff participated in the Inter-
American Development Bank's (IDB's) Washington, D.C.,
consultations with IDB officials and civil society
representatives to provide input into a significant overhaul of
the IDB's inspection mechanism. Committee staff followed up
with members of the IDB's executive board, and in particular
with members of the Board's Organization, Board Matters and
Human Resources Committee, to stress that congressional
consideration of any increase in the IDB's capital base would
be linked, in part, to the degree the new mechanism was
independence from Bank management, its overall transparency,
the adequacy of the mechanism's budget, the elimination of
conflicts of interest, and the degree of requester
participation in the process.
On September 10, 2009, the Committee held a hearing titled,
``The World Bank's Disclosure Policy Review and the Role of
Democratic Participatory Processes in Achieving Successful
Development Outcomes.'' The hearing focused on the World Bank's
proposed updated policy on information disclosure and examined
how the lack of direct democratic accountability at
multilateral institutions like the World Bank makes it
necessary that other control mechanisms--such as increased and
timely access to Bank documents, greater transparency and
parliamentary oversight, and broad public debate about the
Bank's development policies--are in place to ensure that broad,
global international interests are being promoted. The hearing
also examined the factors that drive or hinder change in
complex international institutions and the principal
instruments and mechanisms that leverage change.
On March 23, 2010, Chairman Frank spoke at the G-20 meeting
of Labor Ministers in Washington, D.C., on the importance of
governments integrating the expertise of their respective labor
ministries when loans or projects affecting labor markets and
worker rights come before the Boards of the multilateral
development institutions.
On March 26, 2010, Chairman Frank and Senate Chairmen Kerry
and Leahy wrote to World Bank President Zoellick asking the
World Bank for more environmental and social commitments from
Eskom Holdings Ltd. before lending the South African utility
$3.75 billion to build one of the world's largest coal-fired
power plants.
On May 25, 2010, Chairman Frank wrote to World Bank
President Zoellick regarding ongoing biases reflected in the
World Bank's annual ``Doing Business'' Report.
On May 26, 2010, Chairman Frank and Representative McGovern
sent a letter to the Department of the Treasury and IDB
President Moreno recommending Ms. Korinna Horta for one of the
five open Panel positions on the IDB's newly established
``Independent Consultation and Investigation Mechanism.'' In
recommending Ms. Horta, the members noted her strong background
in international economic, social, and environmental
development, her extensive investigative fieldwork, her
experience working with indigenous peoples and other vulnerable
population groups, and her understanding of the missions and
policy frameworks of the multilateral development institutions.
From August 27 to September 4, 2009, in an effort to better
understand the role of the multilateral development banks and
the impact of the global financial crisis on development
efforts in Africa, Representative Meeks led a bipartisan
Congressional delegation to Tunisia, Rwanda, and Zimbabwe. In
each country, the members met with top government officials,
parliamentarians, civil society leaders, and representatives of
the private sector, including American companies. As the
temporary home of the African Development Bank (AfDB), in
Tunisia the delegation met with the senior leadership of the
AfDB for extended discussions about the institution's work
across the continent, and ongoing reforms within the
institution. In Rwanda, the delegation conducted site visits of
development projects, including a small-holder farm benefiting
from agricultural technical assistance, a road and bridge
construction site, the Kigali University Teaching Hospital, and
a textile factory. World Bank and International Monetary Fund
lending to Zimbabwe has been suspended since 2000 due to
nonpayment of arrears. Following particularly violent national
elections in 2008, Zimbabwe has begun to stabilize under a
fragile unity government. Members met with the President, the
Prime Minister, the Minister of Finance, and parliamentarians
responsible for drafting Zimbabwe's new constitution.
From February 14-21, 2010, Representative Meeks and
Representative Watt led a bipartisan congressional delegation
to Nigeria, Ethiopia, Zimbabwe, and Botswana. The purpose of
the trip was to evaluate the role of international financial
institutions on the continent, the role of central banks in
establishing stable monetary policy that leads to economic
growth, and the financial and regulatory reforms being
implemented in Africa's major economies to achieve sustained
economic recovery from the global financial crisis.
Replenishment of the International Development Association
(IDA) and the African Development Fund (AfDF). In June 2009,
the Committee worked with the House and Senate Appropriations
Committees to incorporate into the ``Supplemental
Appropriations Act, 2009'' authorizations for U.S.
contributions to the 15th replenishment of the International
Development Association and the 11th replenishment of the
African Development Fund, as well as Committee-passed policy
language directing the Secretary of the Treasury to seek reform
of the anti-worker indicator of the World Bank's annual ``Doing
Business'' report and to increase the independence and
effectiveness of the World Bank's Inspection Panel.
On July 21, 2009, Chairman Frank, Chairman Obey, Chairman
Lowey, and Chairman Meeks sent a letter to President Obama
cautioning the President that continued insistence on his right
through signing statements to ignore provisions of laws
providing funds to international financial institutions would
make it highly unlikely that such funds would be provided in
the future.
Replenishment of the Asian Development Fund. On February
18, 2009, Chairman Frank and Senate Chairman Leahy wrote to
Treasury Secretary Geithner expressing concern about the
inadequacy of the Asian Development Bank' s (AsDF) third draft
of its safeguard policy update, including several areas in
which the AsDF fell short of international standards.
As the 111th Congress began moving towards adjournment,
Committee staff coordinated with the House and Senate
Appropriations Committees and the Senate Foreign Relations
Committee in an effort to include in the year's final
appropriations measure authorizations for U.S. participation in
the Asian Development Bank's 5th general capital increase, the
Asian Development Fund's 9th replenishment, and authorization
and policy language for the Clean Technology Fund.
International Debt Relief. On July 21, 2010, Representative
Waters and members of the Committee organized a letter to
President Obama urging him to include an expanded debt relief
effort as part of his plan to work to achieve the Millennium
Development Goals.
Institutionalizing Democratic Accountability at the IFIs.
Because international economic institutions like the World Bank
are at some distance from direct democratic accountability, the
Committee will begin to examine ways to increase democratic
participation and accountability within the IFIs. Based on
their charters, the international financial institutions are
accountable to the finance ministers of member countries, who
may not always be impartial representatives of the people. The
Committee will be calling on experts to undertake a study of
various options to improve parliamentary oversight, including
the possibility of forming an international parliamentarian
committee, which would include both donor and recipient
countries, before which officials of the IMF and World Bank
could appear to review their institution's agendas and
procedures.
Sudan Accountability and Divestment Act. On February 23,
2009, Chairman Frank, Representative Capuano, and
Representative Barbara Lee requested a report from the GAO on
the Sudan Accountability and Divestment Act of 2007 (P.L. 110-
174) to identify and evaluate actions that have been taken to
implement the voluntary divestment provisions and compliance
with the contract prohibition provisions in the Act.
On November 30, 2010, the Subcommittee on International
Monetary Policy and Trade held a hearing entitled ``Investments
Tied to Genocide: Sudan Divestment and Beyond.'' The members
discussed the impact of the Sudan Accountability and Divestment
Act (SADA), which Congress passed in 2007. The law authorizes
States and investment companies to divest from companies with
certain business ties to Sudan and prohibits these companies
from receiving any U.S. federal contracts. By drafting SADA in
a manner that gives States and investment companies the right,
but not the obligation to divest from, or prevent investment in
select companies with business ties to the Sudan Government in
Khartoum, the Act empowers investors to refrain from providing
financial support to businesses that they believe are
supporting a civil war and genocide, while providing investment
managers safe harbor from prosecution for doing so. Witnesses
spoke to the documented impact of SADA, and lessons learned
thus far from the experience of SADA's implementation. In
particular, the GAO report indicates that American investors
have indeed withdrawn funds from targeted companies and
investments. Witnesses and members discussed the tradeoff
between American engagement in conflict areas such as Sudan,
including by American companies and investors who may promote
social and civic engagement that help to alleviate the
suffering of affected people, versus the withdrawal of American
capital which may open the door for other investors and
businesses who may not seek to promote any resolution to the
conflict, or be supportive of local humanitarian initiatives.
Strengthening Sanctions Against Iran. On March 12, 2009,
the Subcommittee on International Monetary Policy and Trade
held a legislative hearing on H.R. 1327, the ``Iran Sanctions
Enabling Act of 2009.'' H.R. 1327 would outline standard
procedures, and provide federal authority, for states, local
governments and educational institutions to divest, if they
choose, their public pension funds from foreign firms that have
$20 million or more invested in Iran's energy sector. The bill
would also prohibit legal action against asset managers who
divest from or elect not to invest in securities of companies
doing that level of business in Iran's energy sector. The House
passed two similar proposals in the 110th Congress, although
the Senate did not act on either bill. On April 28, 2009, the
Committee considered the bill and ordered it to be reported (as
amended) by voice vote. On October 14, 2009, the measure passed
the House by a vote of 414-6 under suspension of the rules.
On April 22, 2010, the Speaker appointed Chairman Frank,
Chairman Meeks, and Representative Garrett as conferees from
the Committee on Financial Services for consideration of
certain provisions of H.R. 2194, the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010, which
fall within the jurisdiction of the House Financial Services
Committee. The Senate version of the bill included legislative
language very similar to the divestment provisions of the Iran
Sanctions Enabling Act, and this language was successfully
incorporated into the final conference report of the
comprehensive Iran sanctions measure. H.R. 2194 became Public
Law 111-195 on July 1, 2010.
The Economy, Domestic Monetary Policy, and Technology
The Economy and Its Impact on Living Standards. The
Committee will examine the extent to which changes in the
economy, and in particular changes in labor and capital
markets, as well as changes in public policy, have altered the
way in which policymakers should think about the relationship
between economic growth, productivity growth, and growth in
employment and incomes. The Committee will examine these
relationships in an effort to determine policy responses that
will increase our ability to improve the standard of living for
American families. The Committee will examine the consequences
of taking unprecedented monetary and fiscal policy moves
simultaneously in an effort to stimulate new economic growth,
and attempt both to determine the consequences of such moves
and to discover actions that might be taken to avoid any severe
negative effects.
Conduct of Monetary Policy by the Board of Governors of the
Federal Reserve System. The Committee conducted hearings in
February and July, 2009 and 2010, to receive the semi-annual
reports of the Chairman of the Board of Governors of the
Federal Reserve System on the conduct of monetary policy.
Management of Reform of the Federal Reserve System. The
Committee will conduct oversight of the operations of the
Federal Reserve System, including the System's management
structure, its role in providing financial services, its
conduct of monetary policy, and its role as a regulator with
particular attention to compliance with anti-money laundering
and anti-terrorist financing laws and regulations.
Defense Production Act. Through bipartisan and bicameral
cooperation, the Defense Production Act was re-authorized for
an additional 5 years by Public Law 111-67.
Committee on Foreign Investment in the United States. The
Committee will monitor the implementation of the Foreign
Investment and National Security Act of 2007, which reformed
the Committee on Foreign Investment in the United States
(CFIUS). The Committee will closely monitor CFIUS actions to
seek to ensure that foreign investments that pose legitimate
threats to national security are either rejected or the threats
are effectively mitigated. The Committee will also monitor the
extent to which the United States maintains a policy of
openness toward foreign investment, so that investments that
pose no threat to national security are able to go forward.
Management of the Nation's Money: Activities of the Bureau
of the Mint and the Bureau of Engraving and Printing. On July
20, 2010, the Subcommittee on Domestic Monetary Policy and
Technology held a hearing entitled ``The State of U.S. Coins
and Currency.'' The Directors of the U.S. Mint and U.S. Bureau
of Engraving and Printing, representatives of the Board of
Governors of the Federal Reserve and U.S. Secret Service, and
individuals representing the private sector, testified on
issues related to the production and circulation of coins and
currency and on numismatic items.
Throughout the 111th Congress Committee staff met regularly
with staff of the United States Mint and the Bureau of
Engraving and Printing on a variety of issues, and Committee
staff met with the directors of the two bureaus. Committee
staff also met regularly with staff of the Board of Governors
of the Federal Reserve System on matters related to the
distribution and circulation of coins and currency.
The U.S. Treasury Department's Financial Crimes Enforcement
Network (FinCEN): On April 28, 2010, the O`I Subcommittee held
a hearing on ``Reviewing FinCEN Oversight Reports.'' The
Subcommittee received an update from the Financial Crimes
Enforcement Network's (FinCEN) Director and examined oversight
reports issued by GAO and the Treasury Department's Inspector
General that looked at FinCEN's efforts with respect to
Suspicious Activity Reports, Bank Secrecy Act compliance, and
anti-money laundering. The Treasury Department established
FinCEN in 1990 to provide a government-wide multisource
financial intelligence and analysis network. FinCEN's operation
was later expanded to include the responsibilities for
administering the Bank Secrecy Act.
Committee staff met with the Director of FinCEN and FinCEN
staff regularly to discuss issues relating to the enforcement
of Bank Secrecy Act (BSA) reporting requirements and
examination practices, the promulgation of new regulations, the
balance of responsive and analytical work performed by FinCEN
and its utility to law enforcement, and the development of a
cross-border money transfer monitoring program.
Treasury's Office of Foreign Asset Control (OFAC). The O`I
Subcommittee held its second hearing on these issues on May 26,
2010, focused on ``Anti-Money Laundering: Blocking Terrorist
Financing and Its Impact on Lawful Charities.'' The
Subcommittee reviewed ongoing efforts by the Treasury
Department to stop the financing of terrorism. The hearing
focused on various controls, disclosure and decision-making
processes to ensure innocent individuals and charities receive
due process while efforts to block terrorist financing remain
robust.
Committee staff met regularly with staff of OFAC throughout
the 111th Congress to discuss its increasing workload and ideas
to increase its working relationship with financial
institutions and charitable organizations.
House Resolution 40 Hearings
On January 14, 2009, the House adopted House Resolution 40,
amending the rules of the House to require committees, or their
subcommittees, to:
(1) hold at least one hearing during every 120-day
period on the topic of waste, fraud, abuse or
mismanagement in authorized programs, focusing on
inspector general or GAO reports on egregious instances
of waste;
(2) hold at least one hearing per session where
auditors have been unable to audit financial
statements; and
(3) hold at least one hearing on programs on GAO's
``high-risk'' list for waste, fraud or abuse or in need
of broad-based transformation. This list for 2009-2010
included two programs within the jurisdiction of this
Committee: modernizing the financial regulatory system
and flood insurance.
Finally, the resolution requires the Activity Report to
delineate any hearings held pursuant to this rule. During the
111th Congress, the following hearings comply with the
resolution:
------------------------------------------------------------------------
Committee/
Date Hearing title Subcommittee
------------------------------------------------------------------------
February 4, 2009.............. ``Assessing the Madoff Capital Markets
Ponzi Scheme and
Regulatory Failures''.
February 24, 2009............. ``A Review of TARP Oversight and
Oversight, Investigations
Accountability and
Transparency for U.S.
Taxpayers''.
March 4, 2009................. ``TARP Oversight: Is Financial
TARP Working for Main Institutions
Street?''.
March 5, 2009................. ``Perspectives on Capital Markets
Systemic Risk''.
March 17, 2009................ ``Perspectives on Full Committee
Regulation of
Systemic Risk in the
Financial Services
Industry''.
March 18, 2009................ ``American Capital Markets
International Group's
Impact on the Global
Economy: Before,
During and After
Federal
Intervention''.
March 20, 2009................ ``Federal and States Full Committee
Enforcement of
Financial Consumer
and Investor
Protection Laws''.
March 24, 2009................ ``Oversight of the Full Committee
Federal Government's
Intervention at
American
International Group''.
March 26, 2009................ ``Addressing the Need Full Committee
for Comprehensive
Regulatory Reform''.
May 5, 2009................... ``The Effect of the Full Committee
Lehman Brothers
Bankruptcy on State
and Local
Governments''.
May 5, 2009................... ``The Role of Oversight and
Inspectors General: Investigations
Minimizing and
Mitigating Waste,
Fraud and Abuse''.
May 6, 2009................... ``Legislative Housing
Solutions for
Preventing Loan
Modification and
Foreclosure Rescue
Fraud''.
May 7, 2009................... ``Perspectives on Capital Markets
Hedge Fund
Registration''.
May 14, 2009.................. ``How Should the Capital Markets
Federal Government
Oversee Insurance?''.
May 19, 2009.................. ``Approaches to Capital Markets
Improving Credit
Rating Agency
Regulation''.
May 21, 2009.................. ``Legislative Full Committee
Proposals to Improve
the Efficiency and
Oversight of
Municipal Finance''.
June 3, 2009.................. ``The Present Capital Markets
Condition and Future
Status of Fannie Mae
and Freddie Mac''.
June 3, 2009.................. ``Remittances: Financial
Regulation and Institutions
Disclosure in a New
Economic
Environment''.
June 9, 2009.................. ``The Effective Capital Markets
Regulation of the
Over-the-Counter
Derivatives Market''.
June 11, 2009................. ``Compensation Full Committee
Structure and
Systemic Risk''.
June 16, 2009................. ``Systemic Risk and Capital Markets
Insurance''.
June 18, 2009................. ``Strengthening Oversight and
Oversight and Investigations
Preventing Fraud in
FHA and other HUD
Programs''.
June 18, 2009................. ``The Administration's Full Committee
Plan for the
Restructuring of the
American Financial
Regulatory System''.
June 24, 2009................. ``Regulatory Full Committee
Restructuring:
Enhancing Consumer
Financial Products
Regulation''.
June 25, 2009................. ``Improving Consumer Full Committee
Financial Literacy
under the New
Regulatory System''.
July 9, 2009.................. ``Regulatory Domestic
Restructuring: Monetary Policy
Balancing the
Independence of the
Federal Reserve in
Monetary Policy with
Systemic Risk
Regulation''.
July 13, 2009................. ``Preventing Unfair Oversight and
Trading by Government Investigations
Officials''.
July 14, 2009................. ``SEC Oversight: Capital Markets
Current State and
Agenda''.
July 15, 2009................. ``Banking Industry Full Committee
Perspectives on the
Obama
Administration's
Financial Regulatory
Reform Proposals''.
July 16, 2009................. ``Regulatory Domestic
Restructuring: Monetary Policy
Safeguarding Consumer
Protection and the
Role of the Federal
Reserve''.
July 16, 2009................. ``Community and Full Committee
Consumer Advocates'
Perspectives on the
Obama
Administration's
Financial Regulatory
Reform Proposals''.
July 17, 2009................. ``Industry Full Committee
Perspectives on the
Obama
Administration's
Financial Regulatory
Reform Proposals''.
July 21, 2009................. ``Systemic Risk: Are Full Committee
Some Institutions Too
Big to Fail and If
So, What Should We Do
About It?''.
July 22, 2009................. ``Regulatory Full Committee
Perspectives on the
Obama
Administration's
Financial Regulatory
Reform Proposals''.
July 22, 2009................. ``TARP Oversight: Oversight and
Warrant Repurchases Investigations
and Protecting
Taxpayers''.
July 24, 2009................. ``Regulatory Full Committee
Perspectives on the
Obama
Administration's
Financial Regulatory
Reform Proposals--
Part Two''.
September 17, 2009............ ``Utilizing Technology Oversight and
to Improve TARP and Investigations
Financial Oversight''.
September 23, 2009............ ``The Administration's Full Committee
Proposals for
Financial Regulatory
Reform''.
September 23, 2009............ ``Federal Regulator Full Committee
Perspectives on
Financial Regulatory
Reform Proposals''.
September 24, 2009............ ``Experts' Full Committee
Perspectives on
Systemic Risk and
Resolution Issues''.
September 25, 2009............ ``H.R. 1207, the Full Committee
Federal Reserve
Transparency Act of
2009''.
September 30, 2009............ ``Perspectives on the Full Committee
Consumer Financial
Protection Agency''.
September 30, 2009............ ``Reforming Credit Capital Markets
Rating Agencies''.
October 1, 2009............... ``Federal Reserve Full Committee
Perspectives on
Financial Regulatory
Reform Proposals''.
October 6, 2009............... ``Capital Markets Full Committee
Regulatory Reform:
Strengthening
Investor Protection,
Enhancing Oversight
of Private Pools of
Capital, and Creating
a National Insurance
Office''.
October 7, 2009............... ``Reform of the Over- Full Committee
the-Counter
Derivatives Market:
Limiting Risk and
Ensuring Fairness''.
October 29, 2009.............. ``Systemic Regulation, Full Committee
Prudential Matters,
Resolution Authority
and Securitization''.
December 2, 2009.............. ``FY09 FHA Actuarial Full Committee
Report''.
January 21, 2010.............. ``The Condition of Financial
Financial Institutions
Institutions:
Examining the Failure
and Seizure of an
American Bank''.
March 11, 2010................ ``The FHA Reform Act Housing and
of 2010''. Community
Opportunity
March 23, 2010................ ``Housing Finance-- Full Committee
What Should the New
System Be Able to
Do?: Part I--
Government and
Stakeholder
Perspectives''.
April 14, 2010................ ``Housing Finance-- Full Committee
What Should the New
System Be Able to
Do?: Part II--
Government and
Stakeholder
Perspectives''.
April 20, 2010................ ``Public Policy Issues Full Committee
Raised by the Report
of the Lehman
Bankruptcy Examiner''.
April 21, 2010................ ``Legislative Housing and
Proposals to Reform Community
the National Flood Opportunity
Insurance Program''.
April 28, 2010................ ``Reviewing FinCEN Oversight and
Oversight Reports''. Investigations
May 6, 2010................... ``The End of Excess Oversight and
(Part One): Reviewing Investigations
Our Addiction to Debt
and Leverage''.
May 11, 2010.................. ``TARP Oversight: An Oversight and
Update on Warrant Investigations
Repurchases and
Benefits for
Taxpayers''.
May 26, 2010.................. ``FHFA Oversight: Capital Markets
Current State of the
House Government
Sponsored
Enterprises''.
July 13, 2010................. ``After the Financial Oversight and
Crisis: Ongoing Investigations
Challenges Facing
Delphi Retirees''.
July 20, 2010................. ``Oversight of the Capital Markets
U.S. Securities and
Exchange Commission:
Evaluating Present
Reforms and Future
Challenges''.
July 29, 2010................. ``Future of Housing Capital Markets
Finance: The Role of
Private Mortgage
Insurance''.
July 29, 2010................. ``Alternatives for Full Committee
Promoting Liquidity
in the Commercial
Real Estate Markets,
Supporting Small
Businesses and
Increasing Job
Growth''.
August 23, 2010............... ``Too Big Has Failed: Oversight and
Learning from Midwest Investigations
Banks and Credit
Unions''.
August 24, 2010............... ``Empowering Oversight and
Consumers: Can Investigations
Financial Literacy
Education Prevent
Another Financial
Crisis?''.
September 15, 2010............ ``The Future of Capital Markets
Housing Finance: A
Progress Update on
the GSEs''.
September 16, 2010............ ``Legislative Full Committee
Proposals to Address
Concerns Over the
SEC's New
Confidentiality
Provision''.
------------------------------------------------------------------------
APPENDIX I--COMMITTEE LEGISLATION
Part A--Committee Reports
Reports Filed by the Committee on Financial Services With the House
------------------------------------------------------------------------
Bill No. H.Rept. No. Title
------------------------------------------------------------------------
H.R. 787................... 111-12 To Make Improvements in the
HOPE for Homeowners
Program, and for Other
Purposes
H.R. 788................... 111-13 To Provide a Safe Harbor
for Mortgage Servicers Who
Engage in Specified
Mortgage Loan
Modifications, and for
Other Purposes
H.R. 786................... 111-18 To Make Permanent the
Temporary Increase in
Deposit Insurance
Coverage, and for Other
Purposes
S. 383..................... 111-41 Special Inspector General
for the Troubled Asset
Relief Program Act of 2009
H.R. 1664.................. 111-64 Amending the Executive
Compensation Provisions of
the Emergency Economic
Stabilization Act of 2008
to Prohibit Unreasonable
and Excessive Compensation
and Compensation Not Based
on Performance Standards
H.Res. 251................. 111-84 Directing the Secretary of
the Treasury to Transmit
to the House of
Representatives All
Information in His
Possession Relating to
Specific Communications
with American
International Group, Inc.
(AIG)
H.R. 627................... 111-88 Credit Cardholders' Bill of
Rights Act of 2009
H.R. 1728.................. 111-94 Mortgage Reform and Anti-
Predatory Lending Act
H.Res. 591................. 111-231 Requesting That the
President Transmit to the
House of Representatives
All Information in His
Possession Relating to
Certain Specific
Communications with and
Financial Assistance
Provided to General Motors
Corporation and Chrysler
LLC
H.R. 3269.................. 111-236 Corporate and Financial
Institution Compensation
Fairness Act of 2009
H.R. 3045.................. 111-277 Section 8 Voucher Reform
Act of 2009
H.R. 3639.................. 111-314 Expedited Card Reform for
Consumers Act of 2009
H.R. 5072.................. 111-476 FHA Reform Act of 2010
H.R. 5114.................. 111-495 Flood Insurance Reform
Priorities Act of 2010
H.R. 5297.................. 111-499 To Create the Small
Business Lending Fund
Program to Direct the
Secretary of the Treasury
to Make Capital
Investments in Eligible
Institutions in Order to
Increase the Availability
of Credit for Small
Businesses, and for Other
Purposes
H.R. 2555.................. 111-534 Homeowners' Defense Act of
2010
H.R. 1264.................. 111-551 Multiple Peril Insurance
Act of 2009
H.R. 2336.................. 111-619 Green Resources for Energy
Efficient Housing Act of
2010
H.R. 4790.................. 111-620 Shareholder Protection Act
of 2010
H.R. 3421.................. 111-629 Medical Debt Relief Act of
2010
H.R. 2267.................. 111-656 Internet Gambling
Regulation, Consumer
Protection, and
Enforcement Act
H.R. 476................... 111-678 Veterans, Women, Families
with Children, and Persons
with Disabilities Housing
Fairness Act of 2010
H.R. 3890.................. 111-685 Accountability and
Transparency in Rating
Agencies Act
H.R. 3818.................. 111-686 Private Fund Investment
Advisers Registration Act
of 2009
H.R. 3817.................. 111-687 Investor Protection Act of
2009
------------------------------------------------------------------------
Part B--Public Laws
This table lists measures which contained matters within
the jurisdiction of the Committee on Financial Services which
were enacted into law during the 111th Congress.
Public Laws
------------------------------------------------------------------------
Public Law No. Bill No. Title
------------------------------------------------------------------------
111-15..................... S. 383 Special Inspector General
for the Troubled Asset
Relief Program Act of 2009
111-21..................... S. 386 Fraud Enforcement and
Recovery Act of 2009
111-22..................... S. 896 Helping Families Save Their
Homes Act of 2009;
Homeless Emergency
Assistance and Rapid
Transition to Housing Act
of 2009
111-24..................... H.R. 627 Credit CARD Act of 2009
111-40..................... S. 614 To award a Congressional
Gold Medal to the Women
Airforce Service Pilots
(``WASP'')
111-44..................... H.R. 2245 New Frontier Congressional
Gold Medal Act
111-67..................... S. 1677 Defense Production Act
Reauthorization of 2009
111-86..................... H.R. 621 Girl Scouts USA Centennial
Commemorative Coin Act
111-91..................... H.R. 1209 Medal of Honor
Commemorative Coin Act
111-93..................... H.R. 3606 Credit CARD Technical
Corrections Act of 2009
111-144.................... H.R. 4691 Temporary Extension Act
111-157.................... H.R. 4851 Continuing Extension Act
111-158.................... H.R. 4573 Haiti Debt Relief and
Earthquake Recovery Act of
2010
111-195.................... H.R. 2194 Comprehensive Iran
Sanctions, Accountability
and Divestment Act of 2010
111-196.................... H.R. 5569 National Flood Insurance
Program Extension Act of
2010
111-203.................... H.R. 4173 Dodd-Frank Wall Street
Reform and Consumer
Protection Act
111-209.................... H.R. 5502 To amend the effective date
of the gift card
provisions of the Credit
card Accountability,
Responsibility, and
Disclosure Act of 2009
111-221.................... H.R. 4684 National September 11
Memorial Museum
Commemorative Medal Act of
2010
111-228.................... H.R. 5872 General and Special Risk
Insurance Funds
Availability Act of 2010
111-229.................... H.R. 5981 To insure the flexibility
of the Secretary of
Housing and Urban
Development with respect
to the amount of premiums
charged for FHA single
family housing mortgage
insurance and for other
purposes
111-232.................... H.R. 2097 Star-Spangled Banner
Commemorative Coin Act
111-240.................... H.R. 5297 Small Business Jobs and
Credit Act of 2010
111-250.................... S. 3814 National Flood Insurance
Program Reextension Act of
2010
111-253.................... S. 846 To award a congressional
gold medal to Dr. Muhammed
Yunus, in recognition of
his contributions to the
fight against global
poverty
111-254.................... S. 1055 To grant the congressional
gold medal, collectively,
to the 100th Infantry
Battalion and the 442nd
Regimental Combat Team,
United States Army, in
recognition of their
dedicated service during
World War II
111-257.................... S. 3717 To amend the Securities
Exchange Act of 1934, the
Investment Company Act of
1940 and the Investment
Advisers Act of 1940 to
provide for certain
disclosures under section
552 of title 5, United
States Code (commonly
referred to as the Freedom
of Information Act), and
for other purposes
111-262.................... H.R. 1177 5-Star Generals
Commemorative Coin Act
111-269.................... H.R. 3553 Indian Veterans Housing
Opportunity Act of 2010
111-302.................... H.R. 6162 Coin Modernization,
Oversight and Continuity
Act of 2010
111-303.................... H.R. 303 American Eagle Palladium
Coin Act of 2010
111-319.................... S. 3987 Red Flag Program
Clarification Act of 2010
111-....................... S. 118 Section 202 Supportive
Housing for the Elderly
Act
111-....................... S. 1481 Frank Melville Supportive
Housing Investment Act
111-....................... S. 4036 To clarify the National
Credit Union
Administration authority
to make stabilization fund
expenditures without
borrowing from the
Treasury
------------------------------------------------------------------------
Appendix II--Committee Publications
Part A--Committee Hearings
------------------------------------------------------------------------
Serial No. Title & Subcommittee Date(s)
------------------------------------------------------------------------
111-1................. Promoting Bank Liquidity February 3, 2009
and Lending Through
Deposit Insurance Hope
for Homeowners, and other
Enhancements (Full).
111-2................. Assessing the Madoff Ponzi February 4, 2009
Scheme and Regulatory
Failures (Capital
Markets).
111-3................. An Examination of the February 10, 2009
Extraordinary Efforts by
the Federal Reserve Bank
to Provide Liquidity in
the Current Financial
Crisis (Full).
111-4................. TARP Accountability: Use February 11, 2009
of Federal Assistance by
the First TARP Recipients
(Full).
111-5................. A Review of TARP February 24, 2009
Oversight,
Accountability, and
Transparency for U.S.
Taxpayers (Oversight).
111-6................. Loan Modifications: Are February 24, 2009
Mortgage Servicers
Assisting Borrowers with
Unaffordable Mortgages?
(Housing).
111-7................. Monetary Policy and the February 25, 2009
State of the Economy,
Part I (Full).
111-8................. Monetary Policy and the February 26, 2009
State of the Economy,
Part II (Full).
111-9................. TARP Oversight: Is TARP March 4, 2009
Working for Main Street?
(Financial Institutions).
111-10................ Perspectives on Systemic March 5, 2009
Risk (Capital Markets).
111-11................ Mortgage Lending Reform: A March 11, 2009
Comprehensive Review of
the American Mortgage
System (Financial
Institutions).
111-12................ Mark-to-Market Accounting: March 12, 2009
Practices and
Implications (Capital
Markets).
111-13................ The Iran Sanctions March 12, 2009
Enabling Act of 2009
(International).
111-14................ Perspectives on Regulation March 17, 2009
of Systemic Risk in the
Financial Services
Industry (Full).
111-15................ American International March 18, 2009
Groups Impact on the
Global Economy: Before,
During, and After Federal
Intervention (Capital
Markets).
111-16................ Examining the Making Home March 19, 2009
Affordable Program
(Housing).
111-17................ H.R. 627, the Credit March 19, 2009
Cardholders' Bill of
Rights Act of 2009; and
H.R. 1456, the Consumer
Overdraft Protection Fair
Practices Act of 2009
(Financial Institutions).
111-18................ Federal and State March 20, 2009
Enforcement of Financial
Consumer and Investor
Protection Laws (Full).
111-19................ Seeking Solutions: Finding March 23, 2009
Credit for Small and Mid-
Size Businesses in
Massachusetts (Full).
111-20................ Oversight of the Federal March 24, 2009
Government's Intervention
at American International
Group (Full).
111-21................ Exploring the Balance April 25, 2009
between Increased Credit
Availability and Prudent
Lending Standards (Full).
111-22................ Addressing the Need for March 26, 2009
Comprehensive Regulatory
Reform (Full).
111-23................ The Housing Crisis in Los March 28, 2009
Angeles and Responses to
Preventing Foreclosures
and Foreclosure Rescue
Fraud (Housing).
111-24................ H.R. 1214, the Payday Loan April 2, 2009
Reform Act of 2009
(Financial Institutions).
111-25................ H.R. 1728, the Mortgage April 23, 2009
Reform and Anti-Predatory
Lending Act of 2009
(Full).
111-26................ The Effect of the Lehman May 5, 2009
Brothers Bankruptcy on
State and Local
Governments (Full).
111-27................ The Role of Inspectors May 5, 2009
General: Minimizing and
Mitigating Waste, Fraud,
and Abuse (Oversight).
111-28................ Legislative Solutions for May 6, 2009
Preventing Loan
Modification and
Foreclosure Rescue Fraud
(Housing).
111-29................ Perspectives on Hedge Fund May 7, 2009
Registration (Capital
Markets).
111-30................ The Role of NeighborWorks May 13, 2009
and Housing Counseling
Intermediaries in
Preventing Foreclosures
(Housing).
111-31................ Implications of the G-20 May 13, 2009
Leaders Summit for Low
Income Countries and the
Global Economy
(International).
111-32................ How Should the Federal May 14, 2009
Government Oversee
Insurance? (Capital
Markets).
111-33................ Approaches to Improving May 19, 2009
Credit Rating Agency
Regulation (Capital
Markets).
111-34................ Capital Loss, Corruption May 19, 2009
and the Role of Western
Financial Institutions
(Full).
111-35................ H.R. 2351, the Credit May 20, 2009
Union Share Insurance
Stabilization Act
(Financial Institutions).
111-36................ The Section 8 Voucher May 21, 2009
Reform Act (Full).
111-37................ Legislative Proposals to May 21, 2009
Improve the Efficiency
and Oversight of
Municipal Finance (Full).
111-38................ The Present Condition and June 3, 2009
Future Status of Fannie
Mae and Freddie Mac
(Capital Markets).
111-39................ Remittance Regulation and June 3, 2009
Disclosure in a New
Economic Environment
(Financial Institutions).
111-40................ The Section 8 Voucher June 4, 2009
Reform Act (Housing).
111-41................ The Effective Regulation June 9, 2009
of the Over-the-Counter
Derivatives Markets
(Capital Markets).
111-42................ Compensation Structure and June 11, 2009
Systemic Risk (Full).
111-43................ H.R. 2336, the GREEN Act June 11, 2009
of 2009, Part I (Housing).
111-44................ Systemic Risk and June 16, 2009
Insurance (Capital
Markets).
111-45................ H.R. 2336, the GREEN Act June 16, 2009
of 2009, Part II
(Housing).
111-46................ Strengthening Oversight June 18, 2009
and Preventing Fraud in
FHA and other HUD
Programs (Oversight).
111-47................ An Exploration of Barriers June 18, 2009
to Full Minority
Participation in the New
Markets Tax Credit
Program (Domestic).
111-48................ The Economic Disaster Area June 19, 2009
Act of 2009 (Full).
111-49................ Regulatory Restructuring: June 24, 2009
Enhancing Consumer
Financial Products
Regulation (Full).
111-50................ Improving Consumer June 25, 2009
Financial Literacy under
the New Regulatory System
(Financial Institutions).
111-51................ Legislative Options for June 25, 2009
Preserving Federally- and
State-Assisted Affordable
Housing and Preventing
Displacement of Low-
Income, Elderly and
Disabled Tenants (Full).
111-52................ The Homeowners' Insurance July 2, 2009
Crisis: Solutions for
Homeowners, Communities,
and Taxpayers (Oversight).
111-53................ Regulatory Restructuring: July 9, 2009
Balancing the
Independence of the
Federal Reserve in
Monetary Policy with
Systemic Risk Regulation
(Domestic).
111-54................ H.R. 3068, TARP for Main July 9, 2009
Street Act of 2009 (Full).
111-55................ A Review of the July 10, 2009
Administration's Proposal
to Regulate the Over-the-
Counter Derivatives
Market (Full).
111-56................ Preventing Unfair Trading July 13, 2009
by Government Officials
(Oversight).
111-57................ SEC Oversight: Current July 14, 2009
State and Agenda (Capital
Markets).
111-58................ Banking Industry July 15, 2009
Perspectives on the Obama
Administration's
Financial Regulatory
Reform Proposals (Full).
111-59................ Legislative Options for July 15, 2009
Preserving Federally- and
State-Assisted Affordable
Housing and Preventing
Displacement of Low-
Income, Elderly and
Disabled Tenants
(Housing).
111-60................ Regulatory Restructuring: July 16, 2009
Safeguarding Consumer
Protection and the Role
of the Federal Reserve
(Domestic).
111-61................ Community and Consumer July 16, 2009
Advocates' Perspectives
on the Obama
Administration's
Financial Regulatory
Reform Proposals (Full).
111-62................ Industry Perspectives on July 17, 2009
the Obama
Administration's
Financial Regulatory
Reform Proposals (Full).
111-63................ Legislative Proposals to July 20, 2009
Increase Work and Health
Care Opportunities for
Public and Subsidized
Housing Residents
(Housing).
111-64................ Monetary Policy and the July 21, 2009
State of the Economy
(Full).
111-65................ Systemic Risk: Are Some July 21, 2009
Institutions Too Big to
Fail and If So, What
Should We Do About It?
(Full).
111-66................ Regulatory Perspectives on July 22, 2009
the Obama
Administration's
Financial Regulatory
Reform Proposals, Part I
(Full).
111-67................ TARP Oversight: Warrant July 22, 2009
Repurchases and
Protecting Taxpayers
(Oversight).
111-68................ Regulatory Perspectives on July 24, 2009
the Obama
Administration's
Financial Regulatory
Reform Proposals, Part II
(Full).
111-69................ Academic Perspectives on July 29, 2009
the Future of Public
Housing (Housing).
111-70................ Implementation of the Road August 20, 2009
Home Program Four Years
After Hurricane Katrina
(Housing).
111-71................ Status of the ``Big Four'' August 21, 2009
Four Years After
Hurricane Katrina
(Housing).
111-72................ Progress of the Making September 9, 2009
Home Affordable Program:
What Are the Outcomes for
Homeowners and What Are
the Obstacles to Success?
(Housing).
111-73................ The World Bank's September 10, 2009
Disclosure Policy Review
and the Role of
Democratic Participatory
Processes in Achieving
Successful Development
Outcomes (Full).
111-74................ Proposals to Enhance the September 16, 2009
Community Reinvestment
Act (Full).
111-75................ Utilizing Technology to September 17, 2009
Improve TARP and
Financial Oversight
(Oversight).
111-76................ The Administration's September 23, 2009
Proposals for Financial
Regulatory Reform (Full).
111-77................ Federal Regulator September 23, 2009
Perspectives on Financial
Regulatory Reform
Proposals (Full).
111-78................ Experts' Perspectives on September 24, 2009
Systemic Risk and
Resolution Issues (Full).
111-79................ Recent Innovations in September 24, 2009
Securitization (Capital
Markets).
111-80................ H.R. 1207, the Federal September 25, 2009
Reserve Transparency Act
of 2009 (Full).
111-81................ Perspectives on the September 30, 2009
Consumer Financial
Protection Agency (Full).
111-82................ Reforming Credit Rating September 30, 2009
Agencies (Capital
Markets).
111-83................ Federal Reserve October 1, 2009
Perspectives on Financial
Regulatory Reform
Proposals (Full).
111-84................ Capital Markets Regulatory October 6, 2009
Reform: Strengthening
Investor Protection,
Enhancing Oversight of
Private Pools of Capital,
and Creating a National
Insurance Office (Full).
111-85................ Reform of the Over-the- October 7, 2009
Counter Derivative
Market: Limiting Risk and
Ensuring Fairness (Full).
111-86................ H.R. 2382, the Credit Card October 8, 2009
Interchange Fees Act of
2009; and H.R. 3639, the
Expedited CARD Reform for
Consumers Act of 2009
(Full).
111-87................ The Future of the Federal October 8, 2009
Housing Administration's
Capital Reserves:
Assumptions, Predictions,
and Implications for
Homebuyers (Housing).
111-88................ Systemic Regulation, October 29, 2009
Prudential Matters,
Resolution Authority, and
Securitization (Full).
111-89................ The Overdraft Protection October 30, 2009
Act of 2009 (Full).
111-90................ Improving Responsible November 30, 2009
Lending to Small
Businesses (Oversight).
111-91................ FY09 FHA Actuarial Report December 2, 2009
(Full).
111-92................ H.R. 2266, the Reasonable December 3, 2009
Prudence in Regulation
Act; and H.R. 2267, the
Internet Gambling
Regulation, Consumer
Protection, and
Enforcement Act (Full).
111-93................ The Private Sector and December 8, 2009
Government Response to
the Mortgage Foreclosure
Crisis (Full).
111-94................ Additional Reforms to the December 9, 2009
Securities Investor
Protection Act (Capital
Markets).
111-95................ Covered Bonds: Prospects December 15, 2009
for a U.S. Market Going
Forward (Full).
111-96................ H.R. 476, the Housing January 20, 2010
Fairness Act of 2009
(Housing).
111-97................ The Condition of Financial January 21, 2010
Institutions: Examining
the Failure and Seizure
of an American Bank
(Financial Institutions).
111-98................ Compensation in the January 22, 2010
Financial Industry (Full).
111-99................ The Impact of the January 23, 2010
Foreclosure Crisis on
Public and Affordable
Housing in the Twin
Cities (Housing).
111-100............... The State of Global January 27, 2010
Microfinance: How Public
and Private Funds Can
Effectively Promote
Financial Inclusion for
All (International).
111-101............... Prospects for Employment February 23, 2010
Growth: Is Additional
Stimulus Needed? (Full).
111-102............... Monetary Policy and the February 24, 2010
State of the Economy
(Full).
111-103............... Compensation in the February 25, 2010
Financial Industry
Government Perspectives
(Full).
111-104............... Condition of Small February 26, 2010
Business and Commercial
Real Estate Lending in
Local Markets (Full).
111-105............... Haiti Debt Relief March 4, 2010
(International).
111-106............... Community Development March 9, 2010
Financial Institutions
(CDFIs): Their Unique
Role and Challenges
Serving Lower-Income,
Underserved, and Minority
Communities (Full).
111-107............... Regulation of Money March 10, 2010
Service Businesses
(Financial Institutions).
111-108............... Approaches to Mitigating March 10, 2010
and Managing Natural
Catastrophe Risk: H.R.
2555, The Homeowners'
Defense Act (Capital
Markets and Housing).
111-109............... Corporate Governance after March 11, 2010
Citizens United (Capital
Markets).
111-110............... The FHA Reform Act of 2010 March 11, 2010
(Housing).
111-111............... Rebuilding Haiti's March 16, 2010
Competitiveness and
Private Sector
(International).
111-112............... Examining the Link Between March 17, 2010
Fed Bank Supervision and
Monetary Policy (Full).
111-113............... The Administration's March 17, 2010
Proposal to Revitalize
Severely Distressed
Public and Assisted
Housing: The Choice
Neighborhoods Initiative
(Full).
111-114............... Insurance Holding Company March 18, 2010
Supervision (Capital
Markets).
111-115............... Housing Finance--What March 23, 2010
Should the New System Be
Able to Do?: Part I--
Government and
Stakeholder Perspectives
(Full).
111-116............... H.R. 4868, the Housing March 24, 2010
Preservation and Tenant
Protection Act of 2010
(Housing).
111-117............... Keeping Score on Credit March 24, 2010
Scores: An Overview of
Credit Scores, Credit
Reports, and their Impact
on Consumers (Financial
Institutions).
111-118............... Unwinding Emergency March 25, 2010
Federal Reserve Liquidity
Programs and Implications
for Economic Recovery
(Full).
111-119............... Addressing the Housing April 10, 2010
Needs of Native American
Veterans with
Disabilities (Housing).
111-120............... Second Liens and Other April 13, 2010
Barriers to Principal
Reduction as an Effective
Foreclosure Mitigation
Program (Full).
111-121............... Housing Finance--What April 14, 2010
Should the New System Be
Able to Do?: Part II--
Government and
Stakeholder Perspectives
(Full).
111-122............... The Recently Announced April 14, 2010
Revisions to the Home
Affordable Modification
Program (HAMP) (Housing).
111-123............... Perspectives and Proposals April 15, 2010
on the Community
Reinvestment Act
(Financial Institutions).
111-124............... Public Policy Issues April 20, 2010
Raised by the Report of
the Lehman Bankruptcy
Examiner (Full).
111-125............... Corporate Governance and April 21, 2010
Shareholder Empowerment
(Capital Markets).
111-126............... Legislative Proposals to April 21, 2010
Reform the National Flood
Insurance Program
(Housing).
111-127............... Promoting Small and Micro April 28, 2010
Enterprise in Haiti
(International).
111-128............... Legislative Proposals to April 28, 2010
Preserve Public Housing
(Housing).
111-129............... Reviewing FinCEN Oversight April 28, 2010
Reports (Oversight).
111-130............... Credit Default Swaps on April 29, 2010
Government Debt:
Potential Implications of
the Greek Debt Crisis
(Capital Markets).
111-131............... The End of Excess (Part May 6, 2010
One): Reversing Our
Addiction to Debt and
Leverage (Oversight).
111-132............... TARP Oversight: An Update May 11, 2010
on Warrant Repurchases
and Benefits to Taxpayers
(Oversight).
111-133............... The Stock Market Plunge: May 11, 2010
What Happened and What Is
Next? (Capital Markets).
111-134............... Use of Credit Information May 12, 2010
Beyond Lending: Issues
and Reform Proposals
(Financial Institutions).
111-135............... Minorities and Women in May 12, 2010
Financial Regulatory
Reform: The Need for
Increasing Participation
and Opportunities for
Qualified Persons and
Businesses (Housing and
Oversight).
111-136............... Commercial Real Estate: A May 17, 2010
Chicago Perspective on
Current Market Challenges
and Possible Responses
(Oversight).
111-137............... Initiatives to Promote May 18, 2010
Small Business Lending,
Jobs, and Economic Growth
(Full).
111-138............... The Role of the May 20, 2010
International Monetary
Fund and Federal Reserve
in Stabilizing Europe
(Domestic and
International).
111-139............... Accounting and Auditing May 21, 2010
Standards: Pending
Proposals and Emerging
Issues (Capital Markets).
111-140............... The Administration's May 25, 2010
Proposal to Preserve and
Transform Public and
Assisted Housing: The
Transforming Rental
Assistance Initiative
(Full).
111-141............... Anti-Money Laundering: May 26, 2010
Blocking Terrorist
Financing and Its Impact
on Lawful Charities
(Oversight).
111-142............... FHFA Oversight: Current May 26, 2010
State of the Housing
Government Sponsored
Enterprises (Capital
Markets).
111-143............... After the Financial July 13, 2010
Crisis: Ongoing
Challenges Facing Delphi
Retirees (Oversight).
111-144............... Oversight of the U.S. July 20, 2010
Securities and Exchange
Commission: Evaluating
Present Reforms and
Future Challenges
(Capital Markets).
111-145............... The State of U.S. Coins July 20, 2010
and Currency (Domestic).
111-146............... H.R. 2267, the Internet July 21, 2010
Gambling Regulation,
Consumer Protection, and
Enforcement Act (Full).
111-147............... Monetary Policy and the July 22, 2010
State of the Economy,
Part I (Full).
111-148............... Monetary Policy and the July 22, 2010
State of the Economy,
Part II (Full).
111-149............... The Future of Housing July 29, 2010
Finance: The Role of
Private Mortgage
Insurance (Capital
Markets).
111-150............... Alternatives for Promoting July 29, 2010
Liquidity in the
Commercial Real Estate
Markets, Supporting Small
Businesses and Increasing
Job Growth (Full).
111-151............... Too Big Has Failed: August 23, 2010
Learning from Midwest
Banks and Credit Unions
(Oversight).
111-152............... Empowering Consumers: Can August 24, 2010
Financial Literacy
Education Prevent Another
Financial Crisis?
(Oversight).
111-153............... The Future of Housing September 15, 2010
Finance: A Progress
Update on the GSEs
(Capital Markets).
111-154............... Legislative Proposals to September 16, 2010
Address Concerns Over the
SEC's New Confidentiality
Provision (Full).
111-155............... The State of the September 22, 2010
International Financial
System, Including
International Regulatory
Issues Relevant to the
Implementation of the
Dodd-Frank Act (Full).
111-156............... Implementation of Higher September 22, 2010
FHA Loan Fees and Pending
Legislative Proposals to
Strengthen the FHA MMIF
Fund and Improve Lender
Oversight (Full).
111-157............... Perspectives on the September 23, 2010
Livable Communities Act
of 2010 (Full).
111-158............... Assessing the Limitations September 23, 2010
of the Securities
Investor Protection Act
(Capital Markets).
111-159............... Legislative Hearing on September 23, 2010
H.R. 3149, the Equal
Employment for All Act
(Financial Institutions).
111-160............... Executive Compensation September 24, 2010
Oversight after the Dodd-
Frank Wall Street Reform
and Consumer Protection
Act (Full).
111-161............... A Review of Current and September 28, 2010
Evolving Trends in
Terrorism Financing
(Oversight).
111-162............... Ex-Im Bank Oversight: The September 29, 2010
Role of Trade Finance in
Doubling Exports over
Five Years (Oversight and
International).
111-163............... The Inclusive Home Design September 29, 2010
Act (Housing).
111-164............... The Future of Housing September 29, 2010
Finance--A Review of
Proposals to Address
Market Structure and
Transition (Full).
111-165............... The Global Financial November 16, 2010
Crisis and Financial
Reforms in Nigeria
(International).
111-166............... Robo-Signing, Chain of November 18, 2010
Title, Loss Mitigation
and Other Issues in
Mortgage Servicing
(Housing).
111-167............... Investments Tied to November 30, 2010
Genocide: Sudan
Divestment and Beyond
(International).
111-168............... A Proposal to Increase the December 8, 2010
Offering Limit under SEC
Regulation A (Full).
------------------------------------------------------------------------
Part B--Committee Prints
------------------------------------------------------------------------
Serial No. Title Date
------------------------------------------------------------------------
111-A................. Rules of the Committee on February 2009
Financial Services for
the 111th Congress.
111-B................. Assessing the Madoff Ponzi January 5, 2009
Scheme and the Need for
Regulatory Reform.
111-C................. FHA Oversight of Loan January 9, 2009
Originators.
111-D................. Priorities for the Next January 13, 2009
Administration: Use of
TARP Funds under EESA.
------------------------------------------------------------------------