Union Calendar No. 499

107TH CONGRESS REPORT " HOUSE OF REPRESENTATIVES ! 2d Session 107–798

REPORT ON THE ACTIVITY OF THE COMMITTEE ON 

FINANCIAL SERVICES FOR THE 107TH CONGRESS 

JANUARY 2, 2003.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. OXLEY, from the Committee on Financial Services, submitted 

the following 

REPORT

Clause 1(d) of rule XI of the Rules of the House of Representatives requires 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.

CONTENTS 

Page 

Letter of Transmittal ............................................................................................... 2

Jurisdiction ............................................................................................................... 3

Rules of the Committee ........................................................................................... 7

Membership and Organization ............................................................................... 19

Legislative and Oversight Activities ...................................................................... 27

Full Committee ..................................................................................................... 29

Subcommittee on Capital Markets, Insurance, and Government Sponsored 

Enterprises ........................................................................................................ 41

Subcommittee on Domestic Monetary Policy, Technology, and Economic 

Growth ............................................................................................................... 53

Subcommittee on Financial Institutions and Consumer Credit ....................... 59

Subcommittee on Housing and Community Opportunity ................................. 69

Subcommittee on International Monetary Policy and Trade ........................... 83

Subcommittee on Oversight and Investigations ................................................ 93

Oversight Plan for the 107th Congress .................................................................. 103

Implementation of the Oversight Plan for the 107th Congress ........................... 119

Appendix I—Measures Reported and Public Laws ............................................... 131

Appendix II—Committee Publications ................................................................... 133

LETTER OF TRANSMITTAL 

2

HOUSE OF REPRESENTATIVES, COMMITTEE ON FINANCIAL SERVICES, Washington, DC, January 2, 2003. 

Hon. JEFF TRANDAHL

Clerk, United States House of Representatives, Washington, D.C.

DEAR MR. TRANDAHL: Pursuant to clause 1(d) of rule XI of the 

Rules of the House of Representatives for the 107th Congress, I 

present herewith a report on the activity of the Committee on Financial Services for the 107th Congress, including the Committee’s 

review and study of legislation within its jurisdiction, and the oversight activities undertaken by the Committee. 

Sincerely, 

MICHAEL G. OXLEY, 

Chairman. 

(3)

1The 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.

JURISDICTION 

RULES OF THE HOUSE

Clause 1(g) of rule X of the Rules of the House of Representatives 

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—

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 ComVerDate Dec 13 2002 21:53 Jan 02, 2003 Jkt 019006 PO 00000 Frm 00003 Fmt 6601 Sfmt 6601 E:\HR\OC\HR798.XXX HR798
4

mittee 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. 

5

‘‘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.

(7)

RULES OF THE COMMITTEE ON FINANCIAL SERVICES FOR 

THE ONE HUNDRED SEVENTH 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. 

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(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 twothirds 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. 

9

Quorum 

(b)(1) For the purpose of taking testimony and receiving evidence, two members of the Committee shall constitute a quorum. 

(2) A majority of the members of the Committee shall constitute a quorum for the purposes of reporting any measure or 

matter, of authorizing a subpoena, of closing a meeting or 

hearing pursuant to clause 2(g) of rule XI of the rules of the 

House (except as provided in clause 2(g)(2)(A) and (B)) or of releasing executive session material pursuant to clause 2(k)(7) of 

rule XI of the rules of the House. 

(3) For the purpose of taking any action other than those 

specified in paragraph (2) one-third of the members of the 

Committee shall constitute a quorum. 

Voting 

(c)(1) No vote may be conducted on any measure or matter pending before the Committee unless the requisite number of members 

of the Committee is actually present for such purpose. 

(2) A record vote of the Committee shall be provided on any 

question before the Committee upon the request of one-fifth of 

the members present. 

(3) No vote by any member of the Committee on any measure or matter may be cast by proxy. 

(4) In accordance with clause 2(e)(1)(B) of rule XI, a record 

of the vote of each member of the Committee on each record 

vote on any measure or matter before the Committee shall be 

available for public inspection at the offices of the Committee, 

and, with respect to any record vote on any motion to report 

or on any amendment, shall be included in the report of the 

Committee showing the total number of votes cast for and 

against and the names of those members voting for and 

against. 

Hearing Procedures 

(d)(1)(A) The Chair shall make public announcement of the date, 

place, and subject matter of any committee hearing at least one 

week before the commencement of the hearing, unless the Chair, 

with the concurrence of the ranking minority member, or the Committee by majority vote with a quorum present for the transaction 

of business, determines there is good cause to begin the hearing 

sooner, in which case the Chair shall make the announcement at 

the earliest possible date. 

(B) Not less than three days before the commencement 

of a hearing announced under this paragraph, the Chair 

shall provide to the members of the Committee a concise 

summary of the subject of the hearing, or, in the case of 

a hearing on a measure or matter, a copy of the measure 

or materials relating to the matter in question and a concise explanation of the measure or matter to be considered. 

(2) To the greatest extent practicable—

(A) each witness who is to appear before the Committee 

shall file with the Committee two business days in advance of the appearance sufficient copies (including a copy 

10

in electronic form), as determined by the Chair, of a written statement of proposed testimony and shall limit the 

oral presentation to the Committee to brief summary 

thereof; and 

(B) each witness appearing in a non-governmental capacity shall include with the written statement of proposed 

testimony a curriculum vitae and a disclosure of the 

amount and source (by agency and program) of any Federal grant (or subgrant thereof) or contract (or subcontract 

thereof) received during the current fiscal year or either of 

the two preceding fiscal years. 

(3) The requirements of paragraph (2)(A) may be modified or 

waived by the Chair when the Chair determines it to be in the 

best interest of the Committee. 

(4) The five-minute rule shall be observed in the interrogation of witnesses before the Committee until each member of 

the Committee has had an opportunity to question the witnesses. No member shall be recognized for a second period of 

5 minutes to interrogate witnesses until each member of the 

Committee present has been recognized once for that purpose. 

(5) Whenever any hearing is conducted by the Committee on 

any measure or matter, the minority party members of the 

Committee shall be entitled, upon the request of a majority of 

them before the completion of the hearing, to call witnesses 

with respect to that measure or matter during at least one day 

of hearing thereon. 

Subpoenas and Oaths 

(e)(1) Pursuant to clause 2(m) of rule XI of the Rules of the 

House, a subpoena may be authorized and issued by the Committee 

or a subcommittee in the conduct of any investigation or series of 

investigations or activities, only when authorized by a majority of 

the members voting, a majority being present, or pursuant to paragraph (2). 

(2) The Chair, with the concurrence of the ranking minority 

member, may authorize and issue subpoenas under such clause 

during any period for which the House has adjourned for a period in excess of 3 days when, in the opinion of the Chair, authorization and issuance of the subpoena is necessary to obtain 

the material or testimony set forth in the subpoena. The Chair 

shall report to the members of the Committee on the authorization and issuance of a subpoena during the recess period as 

soon as practicable, but in no event later than one week after 

service of such subpoena. 

(3) Authorized subpoenas shall be signed by the Chair or by 

any member designated by the Committee, and may be served 

by any person designated by the Chair or such member. 

(4) The Chair, or any member of the Committee designated 

by the Chair, may administer oaths to witnesses before the 

Committee. 

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Special Procedures 

(f)(1)(A) COMMEMORATIVE MEDALS AND COINS.—It shall not be in 

order for the Subcommittee on Domestic Monetary Policy, Technology, and Economic Growth to hold a hearing on any commemorative medal or commemorative coin legislation unless the legislation is cosponsored by at least two-thirds of the members of the 

House and has been recommended by the U.S. Mint’s Citizens 

Commemorative Coin Advisory Committee in the case of a commemorative coin. 

(B) It shall not be in order for the subcommittee to approve a bill or measure authorizing commemorative coins 

for consideration by the full Committee which does not 

conform with the mintage restrictions established by section 5112 of title 31, United States Code. 

(C) In considering legislation authorizing Congressional 

gold medals, the subcommittee shall apply the following 

standards—

(i) the recipient shall be a natural person; 

(ii) the recipient shall have performed an achievement that has an impact on American history and culture that is likely to be recognized as a major achievement in the recipient’s field long after the achievement; 

(iii) the recipient shall not have received a medal 

previously for the same or substantially the same 

achievement; 

(iv) the recipient shall be living or, if deceased, shall 

have been deceased for not less than 5 years and not 

more than 25 years; 

(v) the achievements were performed in the recipient’s field of endeavor, and represent either a lifetime 

of continuous superior achievements or a single 

achievement so significant that the recipient is recognized and acclaimed by others in the same field, as 

evidenced by the recipient having received the highest 

honors in the field. 

(2) TESTIMONY OF CERTAIN OFFICIALS.—

(A) Notwithstanding subsection (a)(4), when the Chair 

announces a hearing of the Committee for the purpose of 

receiving—

(i) testimony from the Chairman of the Federal Reserve Board pursuant to section 2B of the Federal Reserve Act (12 U.S.C. 221 et seq.), or 

(ii) testimony from the Chairman of the Federal Reserve Board or a member of the President’s cabinet at 

the invitation of the Chair,the Chair may, in consultation with the ranking minority member, limit the 

number and duration of opening statements to be delivered at such hearing. The limitation shall be included in the announcement made pursuant to subsection (d)(1)(A), and shall provide that the opening 

statements of all members of the Committee shall be 

made a part of the hearing record. 

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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 7 calendar days (exclusive of days on which the House is not in session) after the day 

on which there has been filed with the clerk of the Committee a 

written request, signed by a majority of the members of the Committee, for the reporting of that measure pursuant to the provisions 

of clause 2(b)(2) of rule XIII of the Rules of the House. 

(d) All reports printed by the Committee pursuant to a legislative 

study or investigation and not approved by a majority vote of the 

Committee shall contain the following disclaimer on the cover of 

such report: ‘‘This report has not been officially adopted by the 

Committee on Financial Services and may not necessarily reflect 

the views of its Members.’’

RULE 5

SUBCOMMITTEES

Establishment and Responsibilities of Subcommittees 

(a)(1) There shall be 6 subcommittees of the Committee as follows: 

(A) SUBCOMMITTEE ON CAPITAL MARKETS, INSURANCE, AND GOVERNMENT SPONSORED ENTERPRISES.—The jurisdiction of the Subcommittee on Capital Markets, Insurance, 

and Government Sponsored Enterprises includes— (i) securities, exchanges, and finance; 

(ii) capital markets activities; 

(iii) activities involving futures, forwards, options, 

and other types of derivative instruments; 

(iv) secondary market organizations for home mortgages including the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, 

and the Federal Agricultural Mortgage Corporation; 

(v) the Office of Federal Housing Enterprise Oversight; 

(vi) the Federal Home Loan Banks; and 

(vii) insurance generally. 

(B) SUBCOMMITTEE ON DOMESTIC MONETARY POLICY, 

TECHNOLOGY, AND ECONOMIC GROWTH.—The jurisdiction of 

the Subcommittee on Domestic Monetary Policy, Technology, and Economic Growth 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; 

13

(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 

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(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 OPPOR- TUNITY.—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; 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 INVESTIGA- TIONS.—The jurisdiction of the Subcommittee on Oversight 

and Investigations includes—

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mittee, 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 47 members, 25 elected by the majority caucus and 22 

elected by the minority caucus. 

(B) The Subcommittee on Domestic Monetary Policy, 

Technology, and Economic Growth shall be comprised of 26 

members, 14 elected by the majority caucus and 12 elected 

by the minority caucus. 

16

(C) The Subcommittee on Financial Institutions and 

Commercial Credit shall be comprised of 47 members, 25 

elected by the majority caucus and 22 elected by the minority caucus. 

(D) The Subcommittee on Housing and Community Opportunity shall be comprised of 26 members, 14 elected by 

the majority caucus and 12 elected by the minority caucus. 

(E) The Subcommittee on International Monetary Policy 

and Trade shall be comprised of 26 members, 14 elected by 

the majority caucus and 12 elected by the minority caucus. 

(F) The Subcommittee on Oversight and Investigations 

shall be comprised of 20 members, 11 elected by the majority caucus and 9 elected by the minority caucus. 

Subcommittee Meetings and Hearings 

(d)(1) Each subcommittee of the Committee is authorized to 

meet, hold hearings, receive testimony, mark up legislation, and report to the full Committee on any measure or matter referred to 

it, consistent with subsection (a). 

(2) No subcommittee of the Committee may meet or hold a 

hearing at the same time as a meeting or hearing of the Committee. 

(3) The Chair of each subcommittee shall set hearing and 

meeting dates only with the approval of the Chair with a view 

toward assuring the availability of meeting rooms and avoiding 

simultaneous scheduling of Committee and subcommittee 

meetings or hearings. 

Effect of a Vacancy 

(e) Any vacancy in the membership of a subcommittee shall not 

affect the power of the remaining members to execute the functions 

of the subcommittee as long as the required quorum is present. 

Records 

(f) Each subcommittee of the Committee shall provide the full 

Committee with copies of such records of votes taken in the subcommittee and such other records with respect to the subcommittee 

as the Chair deems necessary for the Committee to comply with all 

rules and regulations of the House. 

RULE 6

STAFF

In General 

(a)(1) Except as provided in paragraph (2), the professional and 

other staff of the Committee shall be appointed, and may be removed by the Chair, and shall work under the general supervision 

and direction of the Chair. 

(2) All professional and other staff provided to the minority 

party members of the Committee shall be appointed, and may 

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17

mittee, 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 

18

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. 

(19)

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

†The following members are on leave from the Committee on Financial Services: Mr. Dreier, 

ranking immediately after Mr. Bereuter; Ms. Pryce and Mr. Linder, ranking immediately after 

Mr. Baker; Ms. Myrick, ranking immediately after Mr. Paul; and Mr. Sessions, ranking immediately after Mr. Riley.

MEMBERSHIP AND ORGANIZATION OF THE COMMITTEE ON 

FINANCIAL SERVICES

ONE HUNDRED SEVENTH CONGRESS

(Ratio: 37-32-1)

COMMITTEE ON FINANCIAL SERVICES 

MICHAEL G. OXLEY, Ohio, Chairman 

JAMES A. LEACH, Iowa 

MARGE ROUKEMA, New Jersey 

Vice Chair

DOUG BEREUTER, Nebraska†

RICHARD H. BAKER, Louisiana†

SPENCER BACHUS, Alabama 

MICHAEL N. CASTLE, Deleware 

PETER T. KING, New York 

EDWARD R. ROYCE, California 

FRANK D. LUCAS, Oklahoma 

ROBERT W. NEY, Ohio 

BOB BARR, Georgia 

SUE W. KELLY, New York 

RON PAUL, Texas†

PAUL E. GILLMOR, Ohio 

CHRISTOPHER COX, California 

DAVE WELDON, Florida 

JIM RYUN, Kansas 

BOB RILEY, Alabama†

STEVEN C. LATOURETTE, Ohio 

DONALD A. MANZULLO, Illinois 

WALTER B. JONES, North Carolina 

DOUG OSE, California 

JUDY BIGGERT, Illinois 

MARK GREEN, Wisconsin 

PATRICK J. TOOMEY, Pennsylvania 

CHRISTOPHER SHAYS, Connecticut 

JOHN B. SHADEGG, Arizona 

VITO FOSSELLA, New York 

GARY G. MILLER, California 

ERIC CANTOR, Virginia 

FELIX J. GRUCCI, Jr., New York 

MELISSA A. HART, Pennsylvania 

SHELLEY MOORE CAPITO, West Virginia 

MIKE FERGUSON, New Jersey 

MIKE ROGERS, Michigan 

PATRICK J. TIBERI, Ohio 

JOHN J. LAFALCE, New York 

BARNEY FRANK, Massachusetts 

PAUL E. KANJORSKI, Pennsylvania 

MAXINE WATERS, California 

CAROLYN B. MALONEY, New York 

LUIS V. GUTIERREZ, Illinois 

NYDIA M. VELA ́ ZQUEZ, New York 

MELVIN L. WATT, North Carolina 

GARY L. ACKERMAN, New York 

KEN BENTSEN, Texas 

JAMES H. MALONEY, Connecticut 

DARLENE HOOLEY, Oregon 

JULIA CARSON, Indiana 

BRAD SHERMAN, California 

MAX SANDLIN, Texas 

GREGORY W. MEEKS, New York 

BARBARA LEE, California 

FRANK MASCARA, Pennsylvania 

JAY INSLEE, Washington 

JANICE D. SCHAKOWSKY, Illinois 

DENNIS MOORE, Kansas 

CHARLES A. GONZALEZ, Texas 

STEPHANIE TUBBS JONES, Ohio 

MICHAEL E. CAPUANO, Massachusetts 

HAROLD E. FORD, Jr., Tennesee 

RUBE ́ N HINOJOSA, Texas 

KEN LUCAS, Kentucky 

RONNIE SHOWS, Mississippi 

JOSEPH CROWLEY, New York 

WILLIAM LACY CLAY, Missouri 

STEVE ISRAEL, New York 

MIKE ROSS, Arkansas 

BERNARD SANDERS, Vermont*

20

SUBCOMMITTEE MEMBERSHIPS

SUBCOMMITTEE ON CAPITAL MARKETS, INSURANCE AND GOVERNMENT SPONSORED

ENTERPRISES

(Ratio: 25-22)

RICHARD H. BAKER, Louisiana, Chairman 

ROBERT W. NEY, Ohio 

Vice Chairman

CHRISTOPHER SHAYS, Connecticut 

CHRISTOPHER COX, California 

PAUL GILLMOR, Ohio 

RON PAUL, Texas 

SPENCER BACHUS, Alabama 

MICHAEL N. CASTLE, Deleware 

EDWARD R. ROYCE, California 

FRANK D. LUCAS, Oklahoma 

BOB BARR, Georgia 

WALTER B. JONES, Jr., North Carolina 

STEVEN C. LATOURETTE, Ohio 

JOHN B. SHADEGG, Arizona 

DAVE WELDON, Florida 

JIM RYUN, Kansas 

BOB RILEY, Alabama 

VITO FOSSELLA, New York 

JUDY BIGGERT, Illinois 

GARY C. MILLER, California 

DOUG OSE, California 

PATRICK J. TOOMEY, Pennsylvania 

MIKE FERGUSON, New Jersey 

MELISSA A. HART, Pennsylvania 

MIKE ROGERS, Michigan 

MICHAEL G. OXLEY, Ohio 

Ex Officio

PAUL E. KANJORSKI, Pennsylvania 

GARY L. ACKERMAN, New York 

NYDIA M. VELA ́ ZQUEZ, New York 

KEN BENTSEN, Texas 

MAX SANDLIN, Texas 

JAMES H. MALONEY, Connecticut 

DARLENE HOOLEY, Oregon 

FRANK R. MASCARA, Pennsylvania 

STEPHANIE TUBBS JONES, Ohio 

MICHAEL CAPUANO, Massachusetts 

BRAD SHERMAN, California 

GREGORY MEEKS, New York 

JAY INSLEE, Washington 

DENNIS MOORE, Kansas 

CHARLIE GONZALEZ, Texas 

HAROLD E. FORD, Jr., Tennesee 

RUBE ́ N HINOJOSA, Texas 

KEN LUCAS, Kentucky 

RONNIE SHOWS, Mississippi 

JOSEPH CROWLEY, New York 

STEVE ISRAEL, New York 

MIKE ROSS, Arkansas 

JOHN J. LAFALCE, New York 

Ex Officio

21

SUBCOMMITTEE ON DOMESTIC MONETARY POLICY, TECHNOLOGY, AND ECONOMIC

GROWTH

(Ratio: 14-12)

PETER T. KING, New York, Chairman 

JAMES A. LEACH, Iowa 

Vice Chairman

EDWARD R. ROYCE, California 

FRANK D. LUCAS, Oklahoma 

RON PAUL, Texas 

STEVEN C. LATOURETTE, Ohio 

DOUG OSE, California 

MARK GREEN, Wisconsin 

CHRISTOPHER SHAYS, Connecticut 

JOHN B. SHADEGG, Arizona 

VITO FOSSELLA, New York 

FELIX J. GRUCCI, Jr., New York 

MELISSA A. HART, Pennsylvania 

SHELLEY MOORE CAPITO, West Virginia 

MICHAEL G. OXLEY, Ohio 

Ex Officio

CAROLYN B. MALONEY, New York 

BARNEY FRANK, Massachusetts 

GREGORY MEEKS, New York 

BERNIE SANDERS, Vermont 

JAMES H. MALONEY, Connecticut 

DARLENE HOOLEY, Oregon 

MAX SANDLIN, Texas 

CHARLIE GONZALEZ, Texas 

MICHAEL CAPUANO, Massachusetts 

RUBE ́ N HINOJOSA, Texas 

WILLIAM LACY CLAY, Missouri 

MIKE ROSS, Arkansas 

JOHN J. LAFALCE, New York 

Ex Officio

22

5Ms. Vela ́zquez was added to the Subcommittee on Financial Institutions and Consumer 

Credit on May 9, 2001, replacing Ms. Lee, who was removed by unanimous consent.

SUBCOMMITTEE ON FINANCIAL INSTITUTIONS AND CONSUMER CREDIT

(Ratio: 25-22)

SPENCER BACHUS, Alabama, Chairman 

DAVE WELDON, Florida 

Vice Chairman

MARGE ROUKEMA, New Jersey 

DOUG BEREUTER, Nebraska 

RICHARD H. BAKER, Louisiana 

MICHAEL N. CASTLE, Deleware 

EDWARD R. ROYCE, California 

FRANK D. LUCAS, Oklahoma 

BOB BARR, Georgia 

SUE W. KELLY, New York 

PAUL E. GILLMOR, Ohio 

JIM RYUN, Kansas 

BOB RILEY, Alabama 

STEVEN C. LATOURETTE, Ohio 

DONALD A. MANZULLO, Illinois 

WALTER B. JONES, North Carolina 

JUDY BIGGERT, Illinois 

PATRICK J. TOOMEY, Pennsylvania 

ERIC CANTOR, Virginia 

FELIX J. GRUCCI, JR., New York 

MELISSA A. HART, Pennsylvania 

SHELLEY MOORE CAPITO, West Virginia 

MIKE FERGUSON, New Jersey 

MIKE ROGERS, Michigan 

PATRICK J. TIBERI, Ohio 

MICHAEL G. OXLEY, Ohio 

Ex Officio

MAXINE WATERS, California 

CAROLYN MALONEY, New York 

MELVIN WATT, North Carolina 

GARY ACKERMAN, New York 

KEN BENTSEN, Texas 

BRAD SHERMAN, California 

MAX SANDLIN, Texas 

GREGORY MEEKS, New York 

LUIS GUTIERREZ, Illinois 

FRANK MASCARA, Pennsylvania 

DENNIS MOORE, Kansas 

CHARLES A. GONZALEZ, Texas 

PAUL KANJORSKI, Pennsylvania 

NYDIA M. VELA ́ ZQUEZ, New York5

JAMES H. MALONEY, Connecticut 

DARLENE HOOLEY, Oregon 

JULIA CARSON, Indiana 

HAROLD E. FORD, JR., Tennesee 

RUBE ́ N HINOJOSA, Texas 

KEN LUCAS, Kentucky 

RONNIE SHOWS, Mississippi 

JOSEPH CROWLEY, New York 

JOHN J. LAFALCE, New York 

Ex Officio

23

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

6Ms. Lee was added to the Subcommittee on International Monetary Policy and Trade on May 

9, 2001, replacing Ms. Vela ́zquez who was removed by unanimous consent.

SUBCOMMITTEE ON HOUSING AND COMMUNITY OPPORTUNITY

(Ratio: 14-12)

MARGE ROUKEMA, New Jersey, Chair 

MARK GREEN, Wisconsin 

Vice Chairman

DOUG BEREUTER, Nebraska 

SPENCER BACHUS, Alabama 

PETER T. KING, New York 

ROBERT W. NEY, Ohio 

BOB BARR, Georgia 

SUE W. KELLY, New York 

BOB RILEY, Alabama 

GARY G. MILLER, California 

ERIC CANTOR, Virginia 

FELIX J. GRUCCI, JR., New York 

MIKE ROGERS, Michigan 

PATRICK J. TIBERI, Ohio 

MICHAEL G. OXLEY, Ohio 

Ex Officio

BARNEY FRANK, Massachusetts 

NYDIA VELA ́ ZQUEZ, New York 

JULIA CARSON, Indiana 

BARBARA LEE, California 

JAN SCHAKOWSKY, Illinois 

STEPHANIE TUBBS JONES, Ohio 

MICHAEL CAPUANO, Massachusetts 

MAXINE WATERS, California 

BERNARD SANDERS, Vermont*

MELVIN WATT, North Carolina 

WILLIAM LACY CLAY, Missouri 

STEVE ISRAEL, New York 

JOHN J. LAFALCE, New York 

Ex Officio

SUBCOMMITTEE ON INTERNATIONAL MONETARY POLICY AND TRADE

(Ratio: 14-12)

DOUG BEREUTER, Nebraska, Chairman 

DOUG OSE, California 

Vice Chairman

MARGE ROUKEMA, New Jersey 

RICHARD H. BAKER, Louisiana 

MICHAEL N. CASTLE, Deleware 

JIM RYUN, Kansas 

DONALD A. MANZULLO, Illinois 

JUDY BIGGERT, Illinois 

MARK GREEN, Wisconsin 

PATRICK J. TOOMEY, Pennsylvania 

CHRISTOPHER SHAYS, Connecticut 

GARY G. MILLER, California 

SHELLEY MOORE CAPITO, West Virginia 

MIKE FERGUSON, New Jersey 

MICHAEL G. OXLEY, Ohio 

Ex Officio

BERNARD SANDERS, Vermont*

MAXINE WATERS, California 

BARNEY FRANK, Massachusetts 

MELVIN L. WATT, North Carolina 

JULIA CARSON, Indiana 

BARBARA LEE, California6

PAUL E. KANJORSKI, Pennsylvania 

BRAD SHERMAN, California 

JANICE D. SCHAKOWSKY, Illinois 

CAROLYN B. MALONEY, New York 

LUIS V. GUTIERREZ, Illinois 

KEN BENTSEN, Texas 

JOHN J. LAFALCE, New York 

Ex Officio

24

7Ms. Jones of Ohio was added to the Subcommittee on Oversight and Investigations on May 

9, 2001, replacing Mr. Bentsen who was removed by unanimous consent.

SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS

(Ratio: 11-9)

SUE KELLY, New York, Chair 

RON PAUL, Texas 

Vice Chairman

PETER T. KING, New York 

ROBERT W. NEY, Ohio 

CHRISTOPHER COX, California 

DAVE WELDON, Florida 

WALTER B. JONES, North Carolina 

JOHN B. SHADEGG, Arizona 

VITO FOSSELLA, New York 

ERIC CANTOR, Virginia 

PATRICK J. TIBERI, Ohio 

MICHAEL G. OXLEY, OH 

Ex Officio

LUIS V. GUTIERREZ, Illinois 

JAY INSLEE, Washington 

JANICE D. SCHAKOWSKY, Illinois 

DENNIS MOORE, Kansas 

STEPHANIE TUBBS JONES, Ohio7

MICHAEL E. CAPUANO, Massachusetts 

RONNIE SHOWS, Mississippi 

JOSEPH CROWLEY, New York 

WILLIAM LACY CLAY, Missouri 

JOHN J. LAFALCE, New York 

Ex Officio

25

COMMITTEE STAFF

MAJORITY STAFF

TERRY L. HAINES

Chief Counsel and Staff Director

ROBERT U. FOSTER

Deputy Staff Director

PEGGY A. PETERSON

Communications Director

HUGH NATHANIAL HALPERN

Parliamentarian and Director of Legislative Operations

JAMES K. CONZELMAN

Counselor to the Chairman

—————

SINDEY J. BLACKMER, Special Counsel 

DALE EDWARD BROWN, Senior Professional Staff 

MADDILINE K. BURNS, Assistant Communications Director for 

Research 

JOHN L. BUTLER, Professional Staff Member 

CINDY VOSPER CHETTI, Senior Professional Staff Member 

JAMES H. CLINGER, Senior Counsel 

ANDREW R. COCHRAN, Senior Counsel 

SUSAN M. COLE, Executive Staff Assistant 

JUSTIN D. DALY, Counsel 

DALE MICHELE DORR, Executive Assisstant 

SCOTT DUNCAN, Assistant Communications Director 

DAVID M. EPPSTEIN, Counsel 

GEORGE M. FOOTE, Staff Assistant 

ANGELA S. GAMBO, Administrative Assistant 

ALFRED V. GARESCHE, Professional Staff Member 

SAMUEL K. GEDULDIG, Director of Coalitions 

KYLE GILSTER, Counsel 

ROBERT GORDON, Senior Counsel 

CLINTON COLUMBUS JONES, III Senior Counsel 

PAUL M. KANGAS, Professional Staff Member 

ROSEMARY ELIZABETH KEECH, Executive Staff Assistant 

KAREN M. LYNCH, Counsel 

KEVIN MACMILLAN, Counsel 

THOMAS MCCROCKLIN, JR. Counsel 

CARTER K. MCDOWELL, Senior Counsel 

BROOKLY MCLAUGHLIN, Assistant Communications Director 

THOMAS C. MONTGOMERY, Senior Counsel 

ANGELA L. PALMER, Staff Assistant 

JOE PINDER, Senior Professional Staff 

BEVERLY B. PRICE, Staff Assistant 

LINDA DALLAS RICH, Senior Counsel 

CHARLES E. SYMINGTON, JR. Counsel 

FRANK A. TILLOTSON, Counsel 

MATTHEW R. TIMOTHY, Staff Assistant 

KIM TRIMBLE, Calendar, Documents, and Systems Administrator

26

HEATHER C. WHEELER, Staff Assistant 

EARNESTINE B. WORELDS, Staff Assistant 

JANICE MARIE ZANARDI, Executive Staff Assistant 

GREG ZERZAN, Senior Counsel

MINORITY STAFF

JEANNE ROSLANOWICK

Staff Director and General Counsel

——————

DONALD AUERBACH, Professional Staff 

AVA BOYD, Counsel 

ROY DYE, III, Professional Staff 

SANDRA GIBBS, Professional Staff 

JENNIFER PORTER GORE, Press Secretary 

WARREN GUNNELS, Professional Staff 

TODD HARPER, Professional Staff 

JAIME LIZARRAGA, Senior Professional Staff 

PATRICIA LORD, Professional Staff 

GARY LUCZAK, Professional Staff 

DANIEL MCGLINCHEY, Professional Staff 

HOWARD MENELL, Special Counsel 

SCOTT MORRIS, Economist 

ROGER OLSON, Professional Staff 

MICHAEL PAESE, Counsel 

SABINE PHILIPPE, Professional Staff 

ALANNA PORTER, Staff Assistant 

DEAN SAGAR, Senior Policy Analyst 

LAWRANNE STEWART, Counsel 

KENNETH SWAB, Professional Staff 

ANNIE TORO, Professional Staff 

(27)

LEGISLATIVE AND OVERSIGHT ACTIVITY 

During the 107th Congress, 368 bills were referred to the Committee on Financial Services. The Full Committee reported to the 

House or was discharged from the further consideration of 33 

measures (not including conference reports). Nineteen measures regarding issues 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 107th 

Congress, including a summary of the activities taken by the Committee to implement its Oversight Plan for the 107th Congress. 

(29)

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

COMMITTEE ON FINANCIAL SERVICES 

FULL COMMITTEE

(Ratio: 37-32-1)

MICHAEL G. OXLEY, Ohio, Chairman 

JAMES A. LEACH, Iowa 

MARGE ROUKEMA, New Jersey 

Vice Chair

DOUG BEREUTER, Nebraska 

RICHARD H. BAKER, Louisiana 

SPENCER BACHUS, Alabama 

MICHAEL N. CASTLE, Deleware 

PETER T. KING, New York 

EDWARD R. ROYCE, California 

FRANK D. LUCAS, Oklahoma 

ROBERT W. NEY, Ohio 

BOB BARR, Georgia 

SUE W. KELLY, New York 

RON PAUL, Texas 

PAUL E. GILLMOR, Ohio 

CHRISTOPHER COX, California 

DAVE WELDON, Florida 

JIM RYUN, Kansas 

BOB RILEY, Alabama 

STEVEN C. LATOURETTE, Ohio 

DONALD A. MANZULLO, Illinois 

WALTER B. JONES, North Carolina 

DOUG OSE, California 

JUDY BIGGERT, Illinois 

MARK GREEN, Wisconsin 

PATRICK J. TOOMEY, Pennsylvania 

CHRISTOPHER SHAYS, Connecticut 

JOHN B. SHADEGG, Arizona 

VITO FOSSELLA, New York 

GARY G. MILLER, California 

ERIC CANTOR, Virginia 

FELIX J. GRUCCI, Jr., New York 

MELISSA A. HART, Pennsylvania 

SHELLEY MOORE CAPITO, West Virginia 

MIKE FERGUSON, New Jersey 

MIKE ROGERS, Michigan 

PATRICK J. TIBERI, Ohio 

JOHN J. LAFALCE, New York 

BARNEY FRANK, Massachusetts 

PAUL E. KANJORSKI, Pennsylvania 

MAXINE WATERS, California 

CAROLYN B. MALONEY, New York 

LUIS V. GUTIERREZ, Illinois 

NYDIA M. VELA ́ ZQUEZ, New York 

MELVIN L. WATT, North Carolina 

GARY L. ACKERMAN, New York 

KEN BENTSEN, Texas 

JAMES H. MALONEY, Connecticut 

DARLENE HOOLEY, Oregon 

JULIA CARSON, Indiana 

BRAD SHERMAN, California 

MAX SANDLIN, Texas 

GREGORY W. MEEKS, New York 

BARBARA LEE, California 

FRANK MASCARA, Pennsylvania 

JAY INSLEE, Washington 

JANICE D. SCHAKOWSKY, Illinois 

DENNIS MOORE, Kansas 

CHARLES A. GONZALEZ, Texas 

STEPHANIE TUBBS JONES, Ohio 

MICHAEL E. CAPUANO, Massachusetts 

HAROLD E. FORD, Jr., Tennesee 

RUBE ́ N HINOJOSA, Texas 

KEN LUCAS, Kentucky 

RONNIE SHOWS, Mississippi 

JOSEPH CROWLEY, New York 

WILLIAM LACY CLAY, Missouri 

STEVE ISRAEL, New York 

MIKE ROSS, Arkansas 

BERNARD SANDERS, Vermont*

LEGISLATIVE ACTIVITIES

FINANCIAL ANTI-TERRORISM ACT

Public Law 107-56 (H.R. 3162; H.R. 3004) 

To combat the financing of terrorism and other financial crimes, 

and for other purposes. 

30

Summary 

Title III of H.R. 3162 contained many of the provisions of H.R. 

3004, the Financial Anti-Terrorism Act. The legislation contains 

provisions to strengthen law enforcement authorities, as well as enhance public-private cooperation between government and industry 

in disrupting terrorist funding. The legislation (1) makes it a crime to smuggle over $10,000 into or out of the United States, and to transport more than $10,000 in 

criminal proceeds across State lines; (2) gives the Justice Department new prosecutorial tools to combat terrorist-related and other 

money laundering through U.S. financial institutions; (3) provides 

statutory authorization for the Financial Crimes Enforcement Network (FinCEN), which analyzes reports filed by financial institutions on currency transactions and suspicious financial activity; (4) 

sets up a unit in FinCEN directed at oversight and analysis of 

hawalas and other underground black market banking systems; (5) 

directs the Treasury to develop regulations to guide financial institutions in verifying the identity of customers who open accounts at 

the institution; (6) directs the Treasury Department to establish a 

secure web site to receive electronic filings of Suspicious Activity 

Reports (SARs) and provide financial institutions with alerts and 

other information regarding patterns of terrorist or other suspicious activity that warrant enhanced scrutiny; (7) requires the 

Secretary of the Treasury to report quarterly to industry on how 

SARs are used to assist law enforcement in combating terrorism 

and other crimes; (8) authorizes intelligence agency access to reports filed by financial institutions and expands government access 

to consumer financial records and credit histories; (9) sets a December 31, 2001, deadline for proposed regulations on SAR reporting 

requirements for broker-dealers and authorizes the Department of 

the Treasury to require SARs of certain commodity futures traders; 

(11) authorizes the Secretary of the Treasury to impose ‘special 

measures’ if a foreign country, financial institution, transaction, or 

account is deemed to be a ‘primary money laundering concern’; (12) 

prohibits U.S. financial institutions from providing banking services to ‘shell’ banks that have no physical presence in any country 

nor any affiliation with a financial institution; (13) requires greater 

due diligence for certain correspondent and private banking accounts; (14) authorizes Treasury to regulate concentration accounts; (15) requires financial institutions to have anti-money laundering programs; and (16) updates U.S. anti-counterfeiting laws. 

Legislative History 

H.R. 3004, the Financial Anti-Terrorism Act, was introduced by 

Mr. Oxley and 17 original cosponsors on October 3, 2001, and referred to the Committee on Financial Services, and additionally to 

the Committees on the Judiciary, and Ways and Means. On October 11, 2001, the Committee on Financial Services met in open session and ordered the bill reported by a record vote of 62 yeas and 

1 nay. 

On October 17, 2001, the Committee on Financial Services reported the bill to the House (H. Rept. 107-250, Part I) and the 

Committees on Judiciary and Ways and Means were discharged 

from the further consideration of the bill. On October 17, 2001, the 

31

House considered H.R. 3004 under suspension of the rules and 

passed the bill by a record vote of 412 yeas and 1 nay. The bill was 

received in the Senate and referred to the Senate Committee on 

Banking, Housing, and Urban Affairs. 

The provisions of H.R. 3004, as negotiated with the Senate, were 

incorporated into title III of H.R. 3162, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001. 

H.R. 3162 was introduced by Mr. Sensenbrenner and one original 

cosponsor of on October 23, 2001 and referred to the Committee on 

the Judiciary and additionally to the Committees on Intelligence 

(Permanent Select), Financial Services, International Relations, 

Energy and Commerce, Education and the Workforce, Transportation and Infrastructure, and Armed Services. 

On October 23, 2001, the House considered H.R. 3162 under suspension of the rules and passed the bill on October 24, 2001 by a 

record vote of 357 yeas and 66 nays. The bill was received in the 

Senate on October 24, 2001 and passed by unanimous consent on 

October 25, 2001, clearing the bill for the White House. 

H.R. 3162 was presented to the President on October 25, 2001, 

and signed into law on October 26, 2001, becoming public law 107-

56. 

THE TERRORISM RISK INSURANCE ACT OF 2002

Public Law 107-297 (H.R. 3210; S. 2600) 

To ensure the continued financial capacity of insurers to provide 

coverage for risks from terrorism. 

Summary 

The Act establishes the Terrorism Insurance Program in the Department of the Treasury under which the Federal government will 

share the risk of loss from future terrorist attacks with the commercial property and casualty insurance marketplace, for a temporary period of time. The Secretary of the Treasury will administer the Program and pay the Federal share of compensation for 

insured losses. The Federal government pays 90 percent of insured 

losses in excess of an insurer’s deductible, while the insurer pays 

10 percent. Insurers may reinsure their insurer deductibles and 10 

percent co-shares. Losses covered by the Program will be capped at 

$100 billion per year; above this amount, Congress will determine 

the procedures for and the source of any payments. 

Before receiving Federal assistance under this Act, an insurer 

must certify its claim for payment of insured losses, that a policyholder (or person acting on the policyholder’s behalf) has filed a 

claim for such loss, and the insurer’s compliance with the Act. The 

Secretary may not reimburse an insurer for such losses unless the 

insurer has provided clear and conspicuous disclosure to the policyholder of the premium charged for terrorism coverage and the Federal share of compensation. This disclosure to the policyholder 

must occur at the time of offer, purchase, and renewal of the policy 

for policies issued after the date of enactment, and must be made 

on a separate line item in the policy with respect to policies issued 

more than 90 days after enactment. For policies issued before the 

32

date of enactment, the disclosure must be made within 90 days of 

such date. Insurers must submit premium and claims information 

to the Secretary who may investigate and audit all claims under 

the Program. 

Each entity meeting the definition of insurer under this legislation is required to participate in the Program. During the first two 

years of the Program each such insurer must make available in all 

of its property and casualty insurance policies coverage for insured 

losses, and shall make such coverage available on terms that do 

not differ materially from the terms, amounts, and other coverage 

limitations applicable to losses arising from events other than acts 

of terrorism. The Secretary has discretion to extend this requirement to the third year of the Program, to preserve this important 

option for policyholders. 

The Secretary can require full repayment of any Federal assistance by the industry, with mandatory repayment for any Federal 

assistance provided for non-catastrophic losses under the established retention levels. This insurance marketplace retention is set 

at $10 billion in Program year 1 (including any remainder of 2002), 

$12.5 billion in Program year 2, and $15 billion in Program year 

3. Federal assistance within the retention above the insurer 

deductibles and 10 percent co-shares must be recouped while additional amounts of Federal assistance may be recouped based on 

economic factors in the judgment of the Secretary. Mandatory 

recoupment within the insurance marketplace retention is through 

terrorism loss risk-spreading premiums (surcharges) paid by all 

commercial property and casualty policyholders based on premium 

rates with any year’s surcharge (mandatory and discretionary combined) capped at 3 percent of the premium charged for property 

and casualty insurance coverage under the policy in each such 

year. The Secretary has discretion over the timing of recoupment, 

and to adjust amounts for urban, smaller commercial, and rural 

areas, as well as for different lines of insurance, so long as the 

mandatory amounts are ultimately recouped. The Secretary may 

assess civil penalties on insurers for submission of false or misleading information or failure to repay the Secretary for any 

amount required to be repaid, or for other failure to comply with 

the provisions of this title. 

The Secretary is also directed to conduct an expedited study to 

determine whether adequate and affordable catastrophe reinsurance for acts of terrorism is available to group life insurers and 

whether the threat of terrorism is reducing the availability of 

group life insurance for consumers. Should the Secretary determine 

that terrorism coverage is not or will not be reasonably available 

to insurers and consumers, the Secretary would be required to include group life insurance in the Terrorism Insurance Program. In 

so doing, the Secretary would have discretion to determine the 

most appropriate way to include group life insurance in the Program. 

The Secretary, after consultation with the NAIC, is also directed 

to conduct a study of the potential effects of acts of terrorism on 

the availability of life insurance generally and other lines of insurance coverage, including personal lines, to be submitted to Congress not later than 9 months from the date of enactment. 

33

Commercial property and casualty terrorism insurance exclusions that are in force on the date of the enactment of this legislation are voided to the extent that they exclude losses that would 

otherwise be insured losses. Any State approval of any commercial 

property and casualty terrorism insurance exclusion in force on the 

date of enactment is also void to the extent that it excludes losses 

that would otherwise be insured losses. 

Until the end of 2003, States will be required to allow rate and 

form changes to take effect immediately but retain authority to disapprove any rates as excessive, inadequate, or unfairly discriminatory and, where a State has prior approval authority for forms, 

subsequent review of such forms is permitted. 

The Program creates an exclusive Federal action to address 

claims arising from terrorist attacks, preempting corollary State actions and jurisdiction (although State substantive law would continue to apply). Claims can be consolidated in the appropriate Federal courts by the Judicial Panel on Multidistrict Litigation. The 

Program does not provide payments for punitive damages from the 

Federal government. 

The Program backstop lasts for slightly over 3 years, terminating 

on December 31, 2005. Title II allows victims of terrorism to obtain 

satisfaction of judgments from blocked assets of terrorists. Title III 

creates certain emergency authority of the Board of Governors of 

the Federal Reserve System. 

Legislative History 

H.R. 3210 was introduced in the House on November 1, 2001, by 

Mr. Oxley and 30 original cosponsors. The bill was referred to the 

Committee on Financial Services and in addition to the Committee 

on Ways and Means and the Committee on the Budget. 

The House Committee on Financial Services held two hearings 

and a roundtable discussion prior to introduction of the bill On 

September 26, 2001, the Full Committee held a hearing entitled, 

‘‘America’s Insurance Industry: Keeping the Promise.’’ The Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises held a hearing October 24, 2001, entitled, ‘‘Protecting Policymakers from Terrorism: Private Sector Solutions.’’ Finally, the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises held a roundtable Discussion on 

Terrorism Risk Insurance on October 31, 2001. 

The Committee on Financial Services met in open session on November 7, 2001, and ordered H.R. 3210 reported to the House with 

a favorable recommendation, with an amendment, by a voice vote. 

On November 19, 2001 the Committee on Ways and Means met in 

open session and ordered H.R. 3210 reported to the House, with an 

amendment, by a voice vote. On November 26, 2001, the Committees on the Budget and Judiciary were discharged from the further 

consideration of the bill. 

On November 28, 2001 the Committee on Rules met and reported 

a rule providing for consideration of H.R. 3210 with one hour of 

general debate (H. Res. 297) and making a specified amendment in 

order. 

34

On November 29, H.Res. 297 was agreed to by a record vote of 

216 yeas and 202 nays. The House then considered and passed 

H.R. 3210 by a record vote of 227 yeas and 193 nays. 

On November 30, 2001, H.R. 3210 was received in the Senate, 

read the first time and placed on the Senate Legislative Calendar 

under Read the First Time. On December 3, 2001, H.R. 3210 was 

read the second time and placed on the Senate Legislative Calendar under General Orders. 

On November July 25, 2002, H.R. 3210 was laid before Senate 

by unanimous consent, the Senate struck all after the Enacting 

Clause and substituted the language of S. 2600 as amended, and 

H.R. 3210 passed the Senate with an amendment by Unanimous 

Consent. A Conference was requested and conferees were appointed. 

On September 10, 2002, the House instructed conferees with respect to a provision regarding satisfaction of judgments by terrorist 

victims of blocked assets of terrorists, by a vote of 373-0. 

On November 13, 2002, the conference report to accompany H.R. 

3210 (H. Rept. 107-779) was filed in the House. 

On November 13, 2002, the Committee on Rules reported a rule 

providing for the consideration of the conference report (H.Res. 

607), which was agreed to on November 14, 2002, by a voice vote. 

On November 14, 2002, the conference report was agreed to in the 

House by voice vote. 

On November 19, 2002, the conference report was agreed to in 

the Senate by a roll call vote of 86 yeas and 11 nays, clearing the 

bill for the White House. The bill was presented to the President 

on November 22, 2002, and signed into law on November 26, 2002, 

becoming public law number 107-297. 

SECOND EXPORT-IMPORT BANK EXTENSION

Public Law 107-186 (H.R. 4782) 

To extend the authority of the Export-Import Bank until June 

14, 2002. 

Summary 

The bill extended the authority of the Export-Import Bank 

through June 14, 2002. 

Legislative History 

On May 21, 2002, H.R. 4782 was introduced in the House by Mr. 

Oxley and referred to the Committee on Financial Services. On 

May 21, 2002, the House considered H.R. 4782 under suspension 

of the rules and passed the bill by a voice vote. 

On May 22, 2002, the bill was received in the Senate, and passed 

by unanimous consent, clearing it for the White House. H.R. 4782 

was presented to the President on May 29, 2002, and signed into 

law on May 30, 2002, becoming public law 107-186. 

35

DEFENSE PRODUCTION AMENDMENTS ACT OF 2001

Public Law 107-47 (H.R. 2510) 

To extend the expiration date of the Defense Production Act of 

1950, and for other purposes. 

Summary 

H.R. 2510 authorized the extension of the Defense Production 

Act of 1950 (DPA) for two years beyond its September 30, 2001 expiration. The legislation also makes technical corrections to the 

DPA. The underlying act itself uses economic tools to provide 

prompt, adequate and uninterrupted supplies of industrial resources to satisfy both national security needs and needs arising 

from civil emergencies. 

Legislative History 

H.R. 2510 was introduced on July 17, 2001 by Mr. King (by request), with one original cosponsor. The Committee on Financial 

Services met in open session on July 25, 2001 and ordered H.R. 

2510 reported to the House with a favorable recommendation, by 

a voice vote. The Committee reported the bill to the House on July 

30, 2001 (H. Rept. 107-173). 

On September 5, 2001, the House considered the bill under suspension of the rules and agreed to by voice vote. 

On September 6, 2001, the bill was received in the Senate and 

referred to the Committee on Banking, Housing, and Urban Affairs. The committee discharged the legislation by Unanimous Consent on September 21, 2001 and the measure was laid before the 

Senate by unanimous consent. On September 21, 2001, the Senate 

passed the bill with an amendment by unanimous consent. 

On September 25, 2001, the House concurred in the Senate 

amendment with further amendments by unanimous consent. On 

September 26, 2001, the Senate agreed to the House amendments 

to the Senate Amendments by unanimous consent and clearing the 

bill for the White House. 

On October 1, 2001, the legislation was presented to the President, and signed on October 5, 2001 becoming public law number 

107-47. 

MARK-TO-MARKET EXTENSION ACT

Public Law 107-116 (H.R. 2589; H.R. 3061) 

To amend the Multifamily Assisted Housing Reform and Affordability Act of 1997 to reauthorize the Office of Multifamily Housing 

Assistance Restructuring, and for other purposes. 

Summary 

H.R. 2589, the Mark-to-Market Extension Act of 2001, extends 

the Office of Multifamily Housing Assistance Restructuring 

through October 1, 2004, and reauthorizes the mark-to-market program through October 1, 2006. In addition, H.R. 2589 simplifies 

issues of jurisdiction and coordination by requiring the Program DiVerDate Dec 13 2002 21:53 Jan 02, 2003 Jkt 019006 PO 00000 Frm 00035 Fmt 6601 Sfmt 6601 E:\HR\OC\HR798.XXX HR798
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rector to report directly to the Federal Housing Commissioner and 

eliminates the need for Senate confirmation of the Director. 

Legislative History 

H.R. 2589 was introduced by Mrs. Roukema and one original cosponsor on July 23, 2001 and referred to the Committee on Financial Services. 

The Committee met in open session on July 25, 2001 to consider 

H.R. 2589 and ordered the bill reported to the House with a favorable recommendation by a voice vote. The Committee reported the 

bill to the House on September 5, 2001 (H. Rept. 107-196). 

On September 24, 2001, the House considered H.R. 2589 under 

suspension of the rules and passed the bill by a voice vote. The bill 

was received in the Senate on September 25, 2001 and placed on 

the Senate legislative calendar. No further action was taken on this 

measure in the 107th Congress. 

The text of the measure was included in title VI of H.R. 3061, 

the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2002. The conference report to accompany H.R. 3061 (H. Rept. 107-342) was considered by the House on December 19, 2001, and agreed to by a 

record vote of 393 yeas and 30 nays. The Senate considered the 

conference report by unanimous consent on December 20, 2001 and 

agreed to the conference report by a record vote of 90 yeas and 7 

nays, clearing the bill for the White House. 

The bill was presented to the President on January 4, 2002, and 

signed into law on January 10, 2001, becoming public law 107-116. 

EMERGENCY SECURITIES RESPONSE ACT OF 2001

(H.R. 3060) 

To provide the Securities and Exchange Commission (SEC) with 

enhanced authority to respond to extraordinary market disturbances. 

Summary 

H.R. 3060, the Emergency Securities Response Act of 2001, extends the duration of a SEC emergency order issued pursuant to 

section 12(k)(2) of the Securities Exchange Act of 1934 (15 U.S.C. 

78l(k)(2)) from ten to 30 business days, and under certain circumstances, up to a total of 90 calendar days. 

Legislative History 

On September 26, 2001, the Committee held a hearing on the 

state of the nation’s financial markets in the wake of the terrorist 

attacks of September 11, at which SEC Chairman Harvey Pitt testified with respect to the Nation’s securities markets. Pursuant to 

requests by Members of the Committee at that hearing, Chairman 

Pitt submitted a request for expanded emergency authority under 

section 12(k)(2). 

H.R. 3060 was introduced in the House by Mr. Oxley and 4 original cosponsors on October 9, 2001 and was referred to the Committee on Financial Services. 

37

On November 11, 2001, the Committee met in open session and 

ordered H.R. 3060 reported with a favorable recommendation to 

the House, without amendment, by a voice vote. The Committee reported the bill to the House on November 13, 2001 (H.Rept. 107-

283). 

H.R. 3060 was considered by the House under suspension of the 

rules on November 13, 2001 and passed the House by a voice vote. 

On November 14, 2001, the bill was received in the Senate and referred to the Senate Committee on Banking, Housing, and Urban 

Affairs. 

No further action was taken on H.R. 3060 in the 107th Congress. 

NORTH AMERICAN DEVELOPMENT BANK

(H.R. 5400) 

To authorize the President of the United States to agree to certain amendments to the Agreement between the Government of the 

United States of America and the Government of the United Mexican States concerning the establishment of a Border Environment 

Cooperation Commission and a North American Development 

Bank, and for other purposes. 

Summary 

H.R. 5400 authorizes the President to agree to the amendments 

to the North American Development Bank (NADBank) Cooperation 

Agreement that do the following: enable the NADBank to make 

grants and non-market rate loans out of its paid-in capital resources with the approval of its Board; and amend the definition 

of the NADBank ‘‘border region’’ to include the area in the United 

States that is within 100 kilometers of the international boundary 

between the United States and Mexico, and the area in Mexico that 

is within 300 kilometers of the international boundary line between 

the Mexico and the United States. H.R. 5400 requires Treasury to 

submit an annual report to Congress on the NADBank. H.R. 5400 

also contains a series of sense of Congresses which address the 

water conservation fund of the NADBank. 

Legislative History 

On September 18, 2002, Mr. Bereuter introduced H.R. 5400 with 

3 original cosponsors, and the bill was referred to the Committee 

on Financial Services. On September 26, 2002, the Committee on 

Financial Services met in open session and ordered H.R. 5400 reported to the House, with an amendment, by a voice vote. The 

Committee on Financial Services reported the bill to the House on 

October 3, 2002 (H. Rept. 107-720). The Committee filed a supplemental report containing the cost estimate of the Congressional 

Budget Office on October 7, 2002 (H. Rept. 107-720, Part II). 

On October 10, 2002, the House passed H.R. 5400 by unanimous 

consent. The bill was received in the Senate on October 15, 2002. 

No further action was taken on this measure in the 107th Congress. 

38

OVERSIGHT ACTIVITIES

REPORTS ON THE CONDUCT OF MONETARY POLICY

On February 28 and July 18, 2001, and February 27 and July 

17, 2002, the Committee received testimony from the Chairman of 

the Federal Reserve Board, Alan Greenspan, on the conduct of 

monetary policy. The report continued a tradition of twice-yearly 

reports by the Fed Chairman to the committees of jurisdiction in 

the House and Senate that formerly were referred to as ‘‘Humphrey-Hawkins’’ hearings after the act that required the testimony. 

TERRORISM INSURANCE

On September 26, 2001, the Committee on Financial Services 

held a Full Committee hearing entitled America’s Insurance Industry: Keeping the Promise. The hearing focused on the insurance industry’s response to the September 11th terrorist attacks. The 

hearing began with an update on the Nation’s financial markets 

from Securities and Exchange Chairman Harvey Pitt. The New 

York Insurance Department, National Association of Insurance 

Commissioners, and several insurance industry CEOs then discussed how the immediate human needs of the victims of the September 11th tragedy were being met by insurers, and confirmed 

the financial strength of the U.S. insurance industry. An analyst 

from A.M. Best Company also spoke to the strength of the industry 

and its ability to pay claims in response to the tragedy. Also raised 

at the hearing was the possible need for the Federal government 

to create a backstop for terrorism insurance for any future terrorist 

events. 

THE WORLDCOM FRAUD

On July 8, 2002 the Committee on Financial Services held a 

hearing entitled, ‘‘Wrong Numbers: the Accounting Problems at 

WorldCom.’’ On June 25, 2002, WorldCom announced that an internal audit found transfers of expenses from expense accounts to capital expenditure accounts (thereby deferring and not immediately 

recognizing the costs), in violation of generally accepted accounting 

principles (GAAP). The amount of the transfers was $3.055 billion 

for 2001 and $797 million for first quarter 2002. Without these 

transfers, the company would have reported a net loss for 2001 and 

for the first quarter of 2002. The purpose of the hearing was to 

gain further insight into the scope and nature of the fraudulent 

transactions and the individuals involved at WorldCom. 

TERRORIST FINANCING: A PROGRESS REPORT ON IMPLEMENTATION OF

THE USA PATRIOT ACT

On September 19, 2002, the full Committee held a hearing to review the government’s implementation of the terrorist finance and 

anti-money laundering provisions of the USA PATRIOT Act, enacted into law on October 26, 2001. The hearing highlighted the 

Bush administration’s efforts to identify and disrupt the channels 

used to finance global terrorism, including informal or underground 

financial networks, charitable organizations, and the precious metVerDate Dec 13 2002 21:53 Jan 02, 2003 Jkt 019006 PO 00000 Frm 00038 Fmt 6601 Sfmt 6601 E:\HR\OC\HR798.XXX HR798
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als trade. The hearing also examined the Treasury Department’s 

progress in developing regulations implementing specific provisions 

of the PATRIOT Act, as well as the administration’s diplomatic initiatives to enlist the cooperation of other countries in combating 

terrorist financing. Testifying were Robert S. Mueller, Director of 

the Federal Bureau of Investigation; Deputy Secretary of Treasury 

Kenneth W. Dam; and Alan Larson, Under Secretary of State for 

Economic, Business and Agricultural Affairs. 

HUD RESPA REFORM

On July 29, 2002, HUD published its proposed rule to reform the 

Real Estate Settlement Procedures Act RESPA in the Federal Register (67 Fed. Reg. 49134) for a 90-day public comment period 

which ended on October 28, 2002. 

The proposal addresses the issue of loan originator compensation. 

It improves HUD’s Good Faith Estimate (GFE) settlement cost disclosures and HUD’s related RESPA regulations. Also, the rule promotes competition by removing regulatory barriers to allow guaranteed packages of settlement services and mortgages to be made 

available to consumers. 

The Committee on Financial Services held a hearing on October 

3, 2002, entitled ‘‘Reforming the Real Estate Settlement Procedure: 

Review of HUD’s proposed RESPA Rule’’. The Honorable Mel Martinez, Secretary of the Department of Housing and Urban Development, was the only witness to testify. 

HEARINGS HELD

Conduct of Monetary Policy. Hearing to receive the testimony of 

the Chairman of the Federal Reserve Board of Governors on monetary policy and the state of the economy. February 28, 2001. 

PRINTED, serial no. 107-1. 

State of the International Financial System and IMF Reform.

Hearing to receive the testimony of the Secretary of the Treasury 

on the state of the international financial system and IMF reform. 

May 22, 2001. PRINTED, serial no. 107-19. 

The California Energy Crisis: Causes, Impacts, and Remedies.

Hearing entitled ‘‘The California Energy Crisis: Causes, Impacts, 

and Remedies.’’ June 20, 2001. PRINTED, serial no. 107-26. 

Conduct of Monetary Policy. Hearing to receive the testimony of 

the Chairman of the Federal Reserve Board of Governors on monetary policy and the state of the economy. July 18, 2001. PRINTED, 

serial no. 107-35. 

America’s Insurance Industry: Keeping the Promise. Hearing entitled ‘‘America’s Insurance Industry: Keeping the Promise.’’ September 26, 2001. PRINTED, serial no. 107-45. 

Dismantling the Financial Infrastructure of Global Terrorism.

Hearing entitled ‘‘Dismantling the Financial Infrastructure of Global Terrorism.’’ October 3, 2001. PRINTED, serial no. 107-46. 

Conduct of Monetary Policy. Hearing to receive the testimony of 

the Chairman of the Federal Reserve Board of Governors on monetary policy and the state of the economy. February 27, 2002. 

PRINTED, serial no. 107-56. 

40

State of the International Financial System and IMF Reform.

Hearing to receive the testimony of the Secretary of the Treasury 

on the state of the international financial system and IMF reform. 

February 28, 2002. PRINTED, serial no. 107-58. 

Corporate and Auditing Accountability, Responsibility, and 

Transparency Act of 2002. Legislative hearing on H.R. 3763, the 

Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002. March 13 and 20, and April 9, 2002. PRINTED, serial no. 107-60. 

European Union’s Financial Services Action Plan and its Implications for the American Financial Services Industry. Hearing on the 

European Union’s Financial Services Action Plan and its implications for the American financial services industry. May 22, 2002. 

Serial no. 107-70. 

Wrong Numbers: The Accounting Problems at WorldCom. Hearing entitled ‘‘Wrong Numbers: The Accounting Problems at 

WorldCom. July 8, 2002. Serial no. 107-74. 

Conduct of Monetary Policy. Hearing to receive the testimony of 

the Chairman of the Federal Reserve Board of Governors on monetary policy and the state of the economy. July 17, 2002. Serial no. 

107-76. 

Terrorist Financing: A Progress Report on the Implementation of 

the USA PATRIOT Act. Hearing entitled ‘‘Terrorist Financing: A 

Progress Report on the Implementation of the USA PATRIOT Act. 

September 19, 2002. Serial no. 107-83. 

Reforming the Real Estate Settlement Procedure: Review of HUD’s 

Proposed RESPA Rule. Hearing entitled ‘‘Reforming the Real Estate Settlement Procedure: Review of HUD’s Proposed RESPA 

Rule.’’ October 3, 2002. Serial no. 107-85. 

(41)

SUBCOMMITTEE ON CAPITAL MARKETS, INSURANCE, AND 

GOVERNMENT SPONSORED ENTERPRISES

(Ratio: 25-22)

RICHARD H. BAKER, Louisiana, Chairman 

ROBERT W. NEY, Ohio 

Vice Chairman

CHRISTOPHER SHAYS, Connecticut 

CHRISTOPHER COX, California 

PAUL GILLMOR, Ohio 

RON PAUL, Texas 

SPENCER BACHUS, Alabama 

MICHAEL N. CASTLE, Deleware 

EDWARD R. ROYCE, California 

FRANK D. LUCAS, Oklahoma 

BOB BARR, Georgia 

WALTER B. JONES, Jr., North Carolina 

STEVEN C. LATOURETTE, Ohio 

JOHN B. SHADEGG, Arizona 

DAVE WELDON, Florida 

JIM RYUN, Kansas 

BOB RILEY, Alabama 

VITO FOSSELLA, New York 

JUDY BIGGERT, Illinois 

GARY C. MILLER, California 

DOUG OSE, California 

PATRICK J. TOOMEY, Pennsylvania 

MIKE FERGUSON, New Jersey 

MELISSA A. HART, Pennsylvania 

MIKE ROGERS, Michigan 

MICHAEL G. OXLEY, Ohio 

Ex Officio

PAUL E. KANJORSKI, Pennsylvania 

GARY L. ACKERMAN, New York 

NYDIA M. VELA ́ ZQUEZ, New York 

KEN BENTSEN, Texas 

MAX SANDLIN, Texas 

JAMES H. MALONEY, Connecticut 

DARLENE HOOLEY, Oregon 

FRANK R. MASCARA, Pennsylvania 

STEPHANIE TUBBS JONES, Ohio 

MICHAEL CAPUANO, Massachusetts 

BRAD SHERMAN, California 

GREGORY MEEKS, New York 

JAY INSLEE, Washington 

DENNIS MOORE, Kansas 

CHARLIE GONZALEZ, Texas 

HAROLD E. FORD, Jr., Tennesee 

RUBE ́ N HINOJOSA, Texas 

KEN LUCAS, Kentucky 

RONNIE SHOWS, Mississippi 

JOSEPH CROWLEY, New York 

STEVE ISRAEL, New York 

MIKE ROSS, Arkansas 

JOHN J. LAFALCE, New York 

Ex Officio

LEGISLATIVE ACTIVITIES

INVESTOR AND CAPITAL MARKETS FEE RELIEF ACT

Public Law 107-123 (H.R. 1088, S. 143) 

To amend the Securities Exchange Act of 1934 to reduce fees collected by the Securities and Exchange Commission, and for other 

purposes. 

Summary 

H.R. 1088, the Investor and Capital Markets Fee Relief Act, addresses the excessive fees paid by participants in the capital markets, which had generated revenues exceeding the budget of the Securities and Exchange Commission (SEC) by over 600 percent. The 

Act reduces all SEC fees, including transaction fees, registration 

fees, merger/tender fees, and single stock future transaction fees. 

In addition, the Act addresses the problem of the difficulty of the 

SEC to retain top professional staff at current pay levels, especially 

in light of the disparate pay that SEC staff received as compared 

with the staff at the Federal banking regulatory agencies. AccordVerDate Dec 13 2002 21:53 Jan 02, 2003 Jkt 019006 PO 00000 Frm 00041 Fmt 6601 Sfmt 6601 E:\HR\OC\HR798.XXX HR798
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ingly, the Act provides for pay parity for SEC staff, in order to 

bring their pay up to the level of comparable employees at those 

other financial regulatory agencies. 

Legislative History 

H.R. 1088 was introduced in the House by Mr. Fossella and 3 

original cosponsors on March 19, 2001. The bill was referred solely 

to the Committee on Financial Services. On March 20, 2001, the 

bill was referred to the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises. 

The Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held a hearing entitled ‘‘Saving Investors Money: Reducing Excessive SEC fees’’ on March 7, 2001. The 

Subcommittee received testimony from the Securities and Exchange Commission, the Senate sponsors of a similar measure, S. 

143, and various market participants. 

The Subcommittee met in open session on March 21, 2001 and 

approved the bill for full Committee consideration by a voice vote. 

The full Committee met on March 28, 2001 and ordered the bill reported to the House, with an amendment, with a favorable recommendation by a voice vote. The Committee reported the bill to 

the House on May 1, 2001 (H.Rept. 107-52, Part I) and the bill was 

sequentially referred to the House Committee on Government Reform. The Committee on Government Reform was discharged of the 

further consideration of the bill on May 25, 2001. 

On June 12, 2001, the Committee on Rules reported a modified 

closed rule providing for the consideration of H.R. 1088 (H.Res. 

161) which was agreed to on June 14, 2001 by a record vote of 408 

yeas and 12 nays. The House considered and passed the bill on 

June 14, 2001 by a record vote of 404 yeas and 22 nays. 

The bill was received in the Senate on June 14, 2001 and placed 

on the Senate legislative calendar. On December 20, 2001, the Senate passed the bill by unanimous consent, clearing the bill for the 

White House. 

H.R. 1088 was presented to the President on January 4, 2002 

and signed into law on January 16, 2002, becoming public law 

number 107-123. 

SARBANES-OXLEY ACT OF 2002

Public Law 107-204 (H.R. 3763; H.R. 3764; S. 2673) 

To protect investors by improving the accuracy and reliability of 

corporate disclosures made pursuant to the securities laws, and for 

other purposes. 

Summary 

The legislation provides for new controls and monitoring mechanisms over the accounting and investment banking industries, and 

establishes new rules on corporate governance. The Act’s major 

provisions include: creation of the Public Company Accounting 

Oversight Board, an independent oversight body to oversee public 

accountants; requiring companies to disclose, on a rapid and current basis, material changes in their financial condition or operations; increased criminal penalties for white collar crime; enVerDate Dec 13 2002 21:53 Jan 02, 2003 Jkt 019006 PO 00000 Frm 00042 Fmt 6601 Sfmt 6601 E:\HR\OC\HR798.XXX HR798
43

hanced SEC review of corporate disclosures; prevention of sales of 

securities by insiders during blackout periods that apply to employees’ stock holdings in retirement plans; prohibitions of loans to executives; authorization for the SEC to direct funds it collects in 

connection with civil penalties against securities law violators to be 

included in disgorgement funds for investors; requirement that 

CEO and CFO certify financial statements; restrictions on nonaudit services to audit clients; mandatory audit partner rotation; 

and enhanced firewalls at investment banks between securities research analysts and investment bankers. 

Legislative History 

H.R. 3763, the Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002, was introduced on February 

14, 2002 by Mr. Oxley and 26 cosponsors and referred to the Committee on Financial Services. H.R. 3764, the Securities and Exchange Commission Authorization Act of 2002, was also introduced 

on February 14, 2002 with 22 original cosponsors. On March 4, 

2002, both bills were referred to the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises. 

The full Committee held 3 days of a legislative hearing on H.R. 

3764 on March 13, 20, and April 9, 2002, and heard from a number 

of public and private witnesses regarding the merits of the legislation. On April 11, the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises was discharged from 

the further consideration of the bill by unanimous consent, and the 

full Committee met in open session to consider H.R. 3763 and H.R. 

3764. H.R. 3764 was ordered reported to the House with a favorable recommendation, with an amendment, by a voice vote. The 

Committee continued its consideration of H.R. 3763 on April 16, 

2002, when the bill was ordered reported to the House with a favorable recommendation, with an amendment, by a voice vote. 

Both H.R. 3763 and H.R. 3764 were reported to the House on 

April 22, 2002 (H.Rept. 107-414 and H.Rept. 107-415, respectively). 

A supplemental report on H.R. 3764, containing the cost estimate 

of the Congressional Budget Office, was filed with the House on 

April 24, 2002 (H.Rept. 107-415, Part II). 

On April 23, 2002, the Committee on Rules reported a modified 

closed rule to the House (H.Res. 395). The House agreed to H.Res. 

395 on April 24, 2002 by a voice vote. The House considered and 

passed H.R. 3763 by a record vote of 334 yeas and 90 nays on April 

24, 2002. 

The bill was received in the Senate and referred to the Senate 

Committee on Banking, Housing, and Urban Affairs on April 25, 

2002. 

On June 25, 2002, the House considered H.R. 3764 under suspension of the rules, and the House passed the bill on June 26, 

2002 by a record vote of 422 yeas and 4 nays. H.R. 3764 was received in the Senate and referred to the Senate Committee on 

Banking, Housing, and Urban Affairs. 

On July 15, 2002, the Senate Committee on Banking, Housing, 

and Urban Affairs was discharged from the further consideration 

of H.R. 3763 by unanimous consent. The measure was laid before 

the Senate, amended with the text of S. 2673 as amended, and 

44

passed by unanimous consent. The Senate insisted on its amendment, and appointed conferees on July 17, 2002. 

On July 17, 2002, the House disagreed to the Senate amendment 

and agreed to the conference requested by the Senate by unanimous consent. A motion to instruct conferees offered by Mr. Conyers was not agreed to by a record vote of 207 yeas and 218 nays. 

Conferees were appointed from the Committee on Financial Services, the Committee on Education and the Workforce, the Committee on Energy and Commerce, the Committee on the Judiciary, 

and the Committee on Ways and Means. 

The provisions of H.R. 3764 were included in the conference report to accompany H.R. 3763. 

The Conferees met on July 19, 2002, the House chairing, and the 

conference report was filed in the House on July 24, 2002 (H.Rept. 

107-610). The Conference report was considered pursuant to a 

unanimous consent agreement on July 25, 2002, and agreed to by 

a record vote of 423 yeas and 3 nays. 

On July 25, 2002, the Senate agreed to the conference report by 

a record vote of 99 yeas and no nays, clearing the measure for the 

White House. The bill was presented to the President on July 26, 

2002 and signed on July 30, 2002, becoming public law number 

107-204. 

FINANCIAL SERVICES ANTIFRAUD NETWORK ACT

(H.R. 1408) 

To safeguard the public from fraud in the financial services industry, to streamline and facilitate the antifraud information-sharing efforts of Federal and State regulators, and for other purposes. 

Summary 

H.R. 1408, the Financial Services Antifraud Network Act of 2001, 

directs Federal and State financial regulators, to the extent practicable and appropriate, to develop procedures to provide for a network for the sharing of antifraud information. In addition to coordinating the different regulators’ computer systems, H.R. 1408 establishes the first industry-wide comprehensive protections for confidentiality, privacy, and security, of government information 

shared through the network on regulated entities. It also directs 

the regulators to provide certain minimum due process rights 

where adverse actions are taken against a person. To further protect information shared between regulators, H.R. 1408 establishes 

certain limited legal privileges and confidentiality and liability protections for regulatory and supervisory information. 

H.R. 1408 also allows State insurance regulators to perform FBI 

fingerprint background checks on insurance applicants to obtain 

relevant criminal records, subject to certain limitations and protections against misuse. Finally, H.R. 1408 limits the ability of persons to work in the securities industry if they have been disciplined 

by banking, thrift, credit union, or insurance regulators. 

Legislative History 

H.R. 1408 was introduced in the House on April 4, 2001, by Mr. 

Rogers from Michigan and 4 original cosponsors. The bill was reVerDate Dec 13 2002 21:53 Jan 02, 2003 Jkt 019006 PO 00000 Frm 00044 Fmt 6601 Sfmt 6601 E:\HR\OC\HR798.XXX HR798
45

ferred to the Committee on Financial Services in addition to the 

Committee on the Judiciary and the Committee on Agriculture. 

Within the Committee on Financial Services, the bill was referred 

to the Subcommittee on Financial Institutions and Consumer Credit and the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises. 

The Subcommittee on Financial Institutions and Consumer Credit met in open session on May 9 and June 13, 2001. On June 13, 

the Subcommittee approved H.R. 1408 for full Committee consideration, with an amendment, by a record vote of 20 yeas and 1 nay. 

On June 22, 2001, the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises was discharged from 

the further consideration of the bill. 

On June 27, 2001, the Committee on Financial Services met in 

open session and ordered H.R. 1408 reported to the House, with an 

amendment, with a favorable recommendation by a voice vote. 

On August 2, 2001, the Committee on Financial Services reported H.R. 1408 to the House (H.Rept. 107-192, Part I) and the 

Committee on the Agriculture was discharged from the further consideration of the bill pursuant to an exchange of correspondence between the committees. On October 10, 2001, the Committee on the 

Judiciary met in open session and ordered H.R. 1408 reported to 

the House, with an amendment, with a favorable recommendation 

by voice vote. The Committee on the Judiciary reported the bill to 

the House on October 16, 2001 (H.Rept. 107-192, Part II). 

The House considered H.R. 1408 on November 6, 2001, under 

suspension of the rules. H.R. 1408 passed by a record vote of 392 

yeas and 4 nays. 

On November 7, 2001, H.R. 1408 was received in the Senate, 

read twice, and referred to the Senate Committee on Banking, 

Housing, and Urban Affairs. No further action was taken on this 

legislation in the 107th Congress. 

SECONDARY MORTGAGE MARKET ENTERPRISES REGULATORY

IMPROVEMENT ACT

(H.R. 1409) 

To reform the regulation of certain housing-related Governmentsponsored enterprises. 

Summary 

H.R. 1409, the Secondary Mortgage Market Enterprises Regulatory Improvement Act, transfers the regulation of Fannie Mae 

and Freddie Mac to the Federal Reserve Board. Under the bill, the 

Board takes over the safety and soundness responsibilities of the 

Office of Federal Housing Enterprise Oversight (OFHEO) and the 

mission setting responsibilities of the Secretary of Housing and 

Urban Development (HUD), except that the Secretary would keep 

his responsibility for affordable housing goals and Fair Housing Act 

compliance. The Board has the authority to approve new activities 

and to review on-going activities of an enterprise to ensure legal 

compliance. Prompt corrective action and enforcement powers are 

provided to the Board. 

46

Legislative History 

H.R. 1409 was introduced in the House by Mr. Baker on April 

4, 2001 and was referred to the Committee on Financial Services. 

The bill was referred to the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises on May 11, 2001. 

On July 11, 2001, the Subcommittee on Capital Markets held a 

legislative hearing on reform of the housing Government Sponsored 

Enterprises, including H.R. 1409 and the report by the Congressional Budget Office entitled ‘‘Federal Subsidies and the Housing 

GSEs’’ (May 2001). Witnesses giving testimony included senior corporate officers from Fannie Mae and Freddie Mac and representatives from trade associations, consulting firms, and academia. 

No further action was taken on this legislation in the 107th Congress. 

OVERSIGHT ACTIVITIES

INSURANCE REGULATION

On May 16, 2001, the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held an oversight 

hearing entitled ‘‘NARAB & Beyond: Achieving Nationwide Uniformity in Agent Licensing.’’ The hearing reviewed the status of 

State reforms implementing reciprocity and the longer-term goal of 

uniformity and explored what Congress could do to keep the process moving forward. The Subcommittee received testimony from 

The Honorable Sue Kelly, one of the chief sponsors of the NARAB 

provisions in the Gramm-Leach-Bliley Act, the National Association of Insurance Commissioners (NAIC), and various insurance 

agent/broker groups. Ms. Kelly spoke to the history of agent licensing reform and the passage of the NARAB provisions. The NAIC 

discussed the current status of reform and described NAIC initiatives to achieve nationwide reciprocity and uniformity. The insurance agent/broker groups gave their differing views on the status 

of producer licensing reform and what additional legislation or 

oversight Congress should consider. 

On June 21, 2001, the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held an oversight 

hearing entitled ‘‘Insurance Product Approval: The Need for Modernization.’’ The hearing continued the Committee’s oversight of insurance regulatory improvements. The hearing examined the status of insurance product regulation and the need for uniformity, efficiency, and timeliness in the regulatory review of insurance rates 

and forms. The Subcommittee received testimony from the NAIC 

and the National Conference of Insurance Legislators (NCOIL), numerous insurance industry associations, as well as a consumer representative and a former State insurance commissioner. The NAIC 

and NCOIL discussed the status of State-based regulation and reform initiatives. The American Council of Life Insurers focused 

mainly on the need for uniform policy standards and a single point 

of filing mechanism for life insurance policies. Property/casualty 

trade associations focused on problems in the approval of forms and 

rates and discussed the need for a market-oriented regulatory 

structure. The Consumer Federation of America and the former IlVerDate Dec 13 2002 21:53 Jan 02, 2003 Jkt 019006 PO 00000 Frm 00046 Fmt 6601 Sfmt 6601 E:\HR\OC\HR798.XXX HR798
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linois insurance director discussed the academic research on rate 

regulation including the experience of different States with their 

regulatory reform efforts. 

The Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held a hearing over several days in 

June, 2002 on insurance regulation entitled ‘‘Insurance Regulation 

and Competition for the 21st Century’’. The purpose of the hearing 

was to discuss the numerous issues the Committee will need to 

consider in analyzing proposals to increase the efficiency and uniformity of insurance regulation. At each day of the hearing, witnesses assessed these issues in light of the current regulatory 

structure and under various reform proposals for the future. 

On June 4, 2002, the Subcommittee focused on the history of insurance regulation (including the role of the State regulator associations and various modeling and rating entities), the economics 

of the industry (including how industry regulation is funded), and 

the role of alternative markets, State residual markets/disaster 

pools, risk retention groups, captives, and surplus lines providers. 

On June 11, 2002, the Subcommittee reviewed the insurance product approval process, efforts by the States to coordinate financial 

exams and the evolution of the NAIC’s accreditation program, the 

importance of uniform U.S. insurance regulation in maintaining 

U.S. competitiveness in world trade and strengthening our negotiating position with the E.U. and other international markets, the 

various E.U. models for financial regulation, and international 

issues facing the reinsurance industry. On June 18, 2002, the Subcommittee analyzed regulatory models used in other financial services sectors and different reform philosophies, as well as market 

conduct regulation and consumer protection issues. In addition to 

addressing individual issues panelists discussed their support for 

or opposition to various reform proposals. Witnesses included State 

insurance regulators, consumers, agents and brokers, banks, financial services firms, and insurance companies. 

The Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises continued its review of proposals to 

improve insurance regulation with a ‘‘roundtable discussion’’ on Insurance Regulatory Reform on September 17, 2002. The Roundtable examined the entire gamut of reform philosophies and proposals including: State by State reforms, coordination of State regulation through the National Association of Insurance Commissioners, Federal promotion of State uniformity, and an optional 

Federal charter. 

TERRORISM INSURANCE

The Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held a hearing on October 24, 2001, 

entitled ‘‘Protecting Policyholders from Terrorism: Private Sector 

Solutions.’’ The hearing examined whether there was an impending 

availability crisis for terrorism insurance following September 11th 

and provided a forum to discuss possible solutions to any crisis. 

Witnesses testifying included Secretary of the Treasury Paul 

O’Neill and Glenn Hubbard, Chairman of the Council of Economic 

Advisers on the presence of a potential availability and affordability crisis for terrorism insurance; representatives from an airVerDate Dec 13 2002 21:53 Jan 02, 2003 Jkt 019006 PO 00000 Frm 00047 Fmt 6601 Sfmt 6601 E:\HR\OC\HR798.XXX HR798
48

port which spoke to their inability to obtain affordable terrorism insurance at pre-September 11 levels and the effect on the airport’s 

business; an insurance broker, who analyzed the terrorism coverage market; and the General Accounting Office, which summarized a number of domestic and international approaches that have 

been used to address difficult-to-insure risks. Also testifying were 

academic experts, consumer groups, and insurance company executives who spoke to the pros and cons of various approaches that 

could be used to ensure terrorism insurance coverage for America’s 

consumers and businesses. 

The Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises continued a review of the various approaches that could be used to ensure terrorism insurance coverage 

on October 31, 2001, when it held a ‘‘roundtable discussion’’ on Terrorism Risk Insurance. Participating in this event were representatives from Federal and State government, primary and reinsurance 

company representatives, academics, consumer groups, and commercial policyholders. 

RISK BASED CAPITAL FOR GOVERNMENT SPONSORED ENTERPRISES

On Wednesday, August 1, 2001, the Subcommittee on Capital 

Markets, Insurance, and Government Sponsored Enterprises held a 

hearing to consider the Office of Federal Housing Enterprise Oversight (OFHEO) final rule on risk-based capital standards for 

Fannie Mae and Freddie Mac. The hearing was conducted pursuant to the Subcommittee’s responsibilities under the Congressional 

Review Act for major rules. OFHEO’s rule specifies the stress test 

to be used in determining the risk-based capital requirement and, 

along with the minimum capital requirement, the capital classification for purposes of possible supervisory action. OFHEO’s stress 

test will determine the amount of total capital each enterprise 

needs to survive a ten-year period of severe economic stress in the 

housing and credit markets. OFHEO’s Director testified before the 

Subcommittee. 

SUBSIDIES FOR HOUSING GOVERNMENT SPONSORED ENTERPRISES

On Wednesday, May 23, 2001, the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held a 

hearing on Federal subsidies for the housing government sponsored 

enterprises (GSEs)—Fannie Mae, Freddie Mac, and the Federal 

Home Loan Banks. The purpose of the hearing was to receive an 

update from the Congressional Budget Office (CBO) of its 1996 estimate of the value of the subsidies provided by Congress to the 

housing GSEs. The GSEs benefit from their government ties 

through a funding advantage and tax and regulatory exemptions. 

CBO found that the housing GSEs receive a substantial Federal 

subsidy as a result of their special status, estimated to be $13.6 billion in 2000. CBO also found that the GSEs pass through some but 

not all of that subsidy to mortgage borrowers, about $7 billion in 

2000. CBO’s Director testified before the Subcommittee. 

On Wednesday, July 11, 2001, the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held a second hearing on the CBO report on subsidies for the housing GSEs. 

49

Testifying before the Subcommittee were senior corporate officers 

from Fannie Mae and Freddie Mac and representatives from trade 

associations, consulting firms, and academia. 

INTERNATIONAL ACCOUNTING STANDARDS

On Thursday, June 7, 2001, the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held a 

hearing on promotion of international capital flow through accounting standards. The purpose of the hearing was to consider the issue 

of convergence in international financial reporting requirements 

and the impact of the establishment of international accounting 

standards on the world’s capital markets and investors. The Subcommittee reviewed the work of international and domestic accounting standard setters to ensure that those standards promote 

fair and efficient capital flows, and to ensure that the standards facilitate investor access to the highest quality information about the 

capital markets and their participants. Testifying before the Subcommittee were representatives from an international accounting 

standards body, a corporation, and an accounting firm. 

REVIEW OF VOLUNTARY AGREEMENT BY FANNIE MAE AND FREDDIE

MAC

On Tuesday, March 27, 2001, the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held a 

hearing to review the voluntary agreement by Fannie Mae and 

Freddie Mac on to improve their capitalization, information disclosure, and market discipline. The purpose of the hearing was to review the commitments made, the progress that Fannie Mae and 

Freddie Mac made to date, and plans for further implementation. 

Fannie Mae and Freddie Mac are privately owned, Federally chartered companies, created by Congress to supplement the flow of 

housing credit. Witnesses testifying before the Subcommittee were 

senior corporate officers from Fannie Mae and Freddie Mac. 

MARKET DATA AND TRANSPARENCY

On March 14th, 2001, the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held a hearing 

entitled ‘‘Public Access to Market Data—Improving Transparency 

and Competition.’’ The purpose of the hearing was to examine how 

current regulations could be changed to take advantage of modern 

technology to provide investors with more efficient and accurate information flows. The subcommittee examined how market data is 

disseminated, the transparency of information about the costs and 

revenues associated with market data dissemination, and the need 

for modernization of the regulatory structure governing the production and dissemination of market data. 

On July 26th, 2001, the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held a hearing 

entitled ‘‘Market Data II: Implications to Investors and Market 

Transparency of Granting Ownership Rights over Stock Quotes.’’

This hearing focused on the debate surrounding the regulations 

governing market data: the issue of whether market data 

consolidators, which have government-granted exclusive rights over 

50

market data distribution, need, or should receive, a new legal ownership right over the stock quotes that make up stock market data. 

FAIR DISCLOSURE AND REGULATION FD

On May 17, 2001, The Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held a hearing entitled ‘‘Fair Disclosure or Flawed Disclosure: Is Reg FD helping or 

hurting investors.’’ On August 10, 2000 the SEC adopted Regulation Fair Disclosure (Reg FD), a rule governing the disclosure of information by publicly traded companies. Reg FD requires companies to disclose all material nonpublic information at once. The 

purpose of the hearing was to examine whether Reg FD had been 

successful in reaching its objective to provide a level playing field 

regarding information access for all investors. 

WALL STREET ANALYSTS AND CONFLICTS OF INTEREST

On June 14th and July 31st, 2001 the Subcommittee on Capital 

Markets, Insurance, and Government Sponsored Enterprises held a 

hearing over two days entitled ‘‘Analyzing the Analysts.’’ The purpose of the hearings was to examine Wall St. research practices. 

On the first day, the Subcommittee heard from a broad range of 

witnesses assessing the question of whether conflicts of interest 

facing securities analysts preclude research that is objective and 

free of bias. On the second day, the subcommittee broadened the 

scope of its inquiry to examine the role of other participants in 

Wall Street research beyond analysts, such as institutional investors, corporate issuers, and the medial. 

THE ENRON COLLAPSE

The Subcommittee on Capital Market, Insurance, and Government Sponsored Enterprises held 2 hearings entitled ‘‘The Enron 

Collapse: Impact on Investors and Financial Markets’’ to examine 

the implications of the Enron bankruptcy, the largest corporate 

bankruptcy in history at that time. The Subcommittee’s investigation included such matters as: whether the current financial reporting and disclosure model is outdated and needs to be modernized 

so that investors can receive more transparent, useful, and timely 

information; whether the accounting profession requires greater 

oversight; why equity analysts failed to warn investors about 

Enron’s decline; and whether credit rating agencies failed to downgrade Enron in a timely manner. The Subcommittee held a joint 

hearing with the Subcommittee on Oversight and Investigations on 

December 12, 2001, and a further hearing on February 4, 2002, 

and February 5, 2002. 

ACCOUNTING REFORM AND CORPORATE GOVERNANCE

On May 1 and 14, 2002, the Subcommittee held a hearing to review the generally accepted accounting principles and discretionary 

accounting practices that American companies use every day to report on their operations. Among those under critical review by regulators, Congress, and the press included principles and practices 

for reporting revenue from the sale of a business; changes to acVerDate Dec 13 2002 21:53 Jan 02, 2003 Jkt 019006 PO 00000 Frm 00050 Fmt 6601 Sfmt 6601 E:\HR\OC\HR798.XXX HR798
51

counts receivable; company loans to corporate insiders; special accounting mechanisms designed to minimize taxes; and pension 

fund transactions. The Subcommittee also examined the adequacy 

of the current regulatory system to appropriately and timely assess 

the accuracy of financial reporting statements based on historical 

cost. Witnesses during the two hearings addressed the costs to investors and employees of reliance on GAAP-based financial statements; the theories behind many of the most controversial transactions and structures; and the potential impact of alternatives, including ‘‘value reporting,’’ to the current GAAP-based model. Witnesses included the chief accountant of the SEC; the chairman of 

the Financial Accounting Standards Board; and other experts from 

academia, a financial analysis firm, a public interest group, and 

the Attorney General of the State of Ohio. 

HEARINGS HELD

Saving Investors Money: Reducing Excessive SEC Fees. Hearing 

on saving investors money: reducing excessive SEC fees. March 7, 

2001. PRINTED, serial no. 107-3. 

Public Access to Stock Market Data: Improving Transparency and 

Competition. Hearing entitled ‘‘Public Access to Stock Market Data: 

Improving Transparency and Competition.’’ March 14, 2001. 

PRINTED, serial no. 107-5. 

Review of the Voluntary Agreement by Fannie Mae and Freddie 

Mac. Hearing on the review of the voluntary agreement by Fannie 

Mae and Freddie Mac. March 27, 2001. PRINTED, serial no. 107-

7. 

Promotion of Capital Availability to American Businesses. Joint 

hearing with the Subcommittee on Financial Institutions and Consumer Credit on the promotion of capital availability to American 

businesses. April 4, 2001. PRINTED, serial no. 107-9. 

NARAB & Beyond. Hearing entitled ‘‘NARAB & Beyond.’’ May 

16, 2001. May 16, 2001. PRINTED, serial no. 107-17. 

Fair Disclosure or Flawed Disclsoure: Is Reg FD Helping or Hurting Investors? Hearing entitled ‘‘Fair Disclosure or Flawed 

Disclsoure: Is Reg FD Helping or Hurting Investors?’’ May 17, 

2001. PRINTED, serial no. 107-18. 

CBO Report on Federal Subsidies for the Housing GSEs. Hearing 

on the CBO report on Federal subsidies for the Housing GSEs. May 

23, 2001. PRINTED, serial no. 107-20. 

Promotion of International Capital Flow through Accounting 

Standards. Hearing entitled ‘‘Promotion of International Capital 

Flow through Accounting Standards.’’ June 7, 2001. PRINTED, serial no. 107-22. 

Analyzing the Analysts. Hearing entitled ‘‘Analyzing the Analysts.’’ June 14 and July 31, 2001. PRINTED, serial no. 107-25. 

Insurance Product Approval: The Need for Modernization. Hearing entitled ‘‘Insurance Product Approval: The Need for Modernization.’’ June 21, 2001. PRINTED, serial no. 107-28. 

Reforming Fannie Mae and Freddie Mac. Hearing on reforming 

Fannie Mae and Freddie Mac. July 11, 2001. PRINTED, serial no. 

107-32. 

52

Market Data: Implications to Investors. Hearing entitled ‘‘Market 

Data: Implications to Investors.’’ July 26, 2001. PRINTED, serial 

no. 107-40. 

OFHEO Risk-Based Capital Rule. Hearing on the OFHEO riskbased capital rule. August 1, 2001. PRINTED, serial no. 107-41. 

Pushing Back the Pushouts: The SEC’s Broker-Dealer Rules.

Joint hearing with the Subcommittee on Financial Institutions and 

Consumer Credit entitled ‘‘Pushing Back the Pushouts: The SEC’s 

Broker-Dealer Rules.’’ August 2, 2001. PRINTED, serial no. 107-43. 

Protecting Policyholders from Terrorism: Private Sector Solutions.

Hearing entitled ‘‘Protecting Policyholders from Terrorism: Private 

Sector Solutions.’’ October 24, 2001. PRINTED, serial no. 107-48. 

The Enron Collapse: Impact on Investors and Financial Markets.

Joint hearing with the Subcommittee on Oversight and Investigations entitled ‘‘The Enron Collapse: Impact on Investors and Financial Markets.’’ December 12, 2001. PRINTED, serial no. 107-51, 

Part I. 

The Enron Collapse: Impact on Investors and Financial Markets.

Hearing entitled ‘‘The Enron Collapse: Impact on Investors and Financial Markets.’’ February 4 and 5, 2002. PRINTED, serial no. 

107-51, Part II. 

Corporate Accounting Practices: Is there a Credibility GAAP?

Hearing entitled ‘‘Corporate Accounting Practices: Is there a Credibility GAAP?’’ May 1 and 14, 2002. PRINTED, serial no. 107-67. 

Insurance Regulation and Competition for the 21st Century.

Hearing entitled ‘‘Insurance Regulation and Competition for the 

21st Century.’’ June 4, 11, and 18, 2002. Serial no. 107-72. 

Treasury’s Policy on Housing Government Sponsored Enterprises.

Hearing on the Department of the Treasury’s policy on housing 

government sponsored enterprises. July 16, 2002. PRINTED, serial 

no. 107-75. 

OFHEO’s Risk-Based Capital Stress Test for Fannie Mae and 

Freddie Mac. Hearing on the Office of Federal Housing Enterprise 

Oversight’s risk-based capital stress test for Fannie Mae and 

Freddie Mac. July 23, 2001. PRINTED, serial no. 107-79. 

(53)

SUBCOMMITTEE ON DOMESTIC MONETARY POLICY, 

TECHNOLOGY, AND ECONOMIC GROWTH

(Ratio: 14-12)

PETER T. KING, New York, Chairman 

JAMES A. LEACH, Iowa 

Vice Chairman

EDWARD R. ROYCE, California 

FRANK D. LUCAS, Oklahoma 

RON PAUL, Texas 

STEVEN C. LATOURETTE, Ohio 

DOUG OSE, California 

MARK GREEN, Wisconsin 

CHRISTOPHER SHAYS, Connecticut 

JOHN B. SHADEGG, Arizona 

VITO FOSSELLA, New York 

FELIX J. GRUCCI, Jr., New York 

MELISSA A. HART, Pennsylvania 

SHELLEY MOORE CAPITO, West Virginia 

MICHAEL G. OXLEY, Ohio 

Ex Officio

CAROLYN B. MALONEY, New York 

BARNEY FRANK, Massachusetts 

GREGORY MEEKS, New York 

BERNIE SANDERS, Vermont 

JAMES H. MALONEY, Connecticut 

DARLENE HOOLEY, Oregon 

MAX SANDLIN, Texas 

CHARLIE GONZALEZ, Texas 

MICHAEL CAPUANO, Massachusetts 

RUBE ́ N HINOJOSA, Texas 

WILLIAM LACY CLAY, Missouri 

MIKE ROSS, Arkansas 

JOHN J. LAFALCE, New York 

Ex Officio

LEGISLATIVE ACTIVITIES

GENERAL SHELTON GOLD MEDAL ACT

Public Law 107-127 (H.R. 2751) 

To authorize the President to award a gold medal on behalf of 

the Congress to General Henry H. Shelton and to provide for the 

production of bronze duplicates of such medals for sale to the public. 

Summary 

H.R. 2751, the General Shelton Gold Medal Act, authorizes the 

President to present, on behalf of the Congress, to General Henry 

H. Shelton a gold medal of appropriate design in recognition of his 

performance as a military leader in coordinating the planning, 

strategy, and execution of the United States and NATO combat action and his invaluable contributions to the United States and to 

the successful return to peace in the Balkans as Chairman of the 

Joint Chiefs of Staff. 

Legislative History 

H.R. 2751 was introduced by Mr. Etheridge on August 2, 2001 

with 11 original cosponsors and referred to the House Committee 

on Financial Services. On August 24, 2001 the bill was referred to 

the Subcommittee on Domestic Monetary Policy, Technology and 

Economic Growth. 

On December 19, 2001, the House considered the bill under suspension of the rules and passed H.R. 2751 by a voice vote, with an 

amendment. 

54

On December 20, 2001 H.R. 2751 was received in the Senate, 

read twice, considered, read the third time, and passed without 

amendment by unanimous consent, clearing the bill for the White 

House. The bill was presented to the President on January 1, 2002, 

and signed into law on January 16, 2002, becoming public law 

number 107-127. 

BUREAU OF ENGRAVING AND PRINTING SECURITY PRINTING

AMENDMENTS ACT

(H.R. 2509; H.R. 3004) 

To authorize the Secretary of the Treasury to produce currency, 

postage stamps, and other security documents at the request of foreign governments on a reimbursable basis. 

Summary 

H.R. 2509 would authorize the Secretary of the Treasury to 

produce currency, postage stamps, and other security documents 

for foreign governments (subject to a determination by the Secretary of State that such production is consistent with U.S. foreign 

policy) on a reimbursable basis. 

Legislative History 

H.R. 2509 was introduced by Mr. King on July 17, 2001 (by request), with one original cosponsor, and referred to the Committee 

on Financial Services. The bill was referred to the Subcommittee 

on Domestic Monetary Policy, Technology, and Economic Growth 

on July 31, 2001. 

The text of H.R. 2509 was included in H.R. 3004, the Financial 

Antiterrorism Act of 2001. While provisions of H.R. 3004 were included in H.R. 3162, the USA PATRIOT Act, the specific provisions 

of H.R. 2509 were not. For further action on H.R. 3004, please see 

the entry for H.R. 3004 in the full Committee section. 

The bill was considered under suspension of the rules on March 

19, 2002 and passed the House by a record vote of 403 yeas and 

11 nays. On March 20, 2002, H.R. 2509 was received in the Senate 

and read twice and referred to the Committee on Banking, Housing, and Urban Affairs. No further action was taken on this measure in the 107th Congress. 

TRUE AMERICAN HEROES ACT

(H.R. 3054; H.R. 5138) 

To award Congressional gold medals on behalf of government 

workers who responded to the attacks on the World Trade Center 

and perished and on behalf of people aboard United Airlines Flight 

93 who helped resist the hijackers and caused the plane to crash. 

Summary 

H.R. 3054, the True American Heroes Act, authorizes the President to present on behalf of Congress a gold medal to the next of 

kin or other representative of each officer, emergency worker, or 

employee of a State and local government agency, including the 

Port Authority of New York and New Jersey, and of the Federal 

55

Government, who responded to the attacks on the World Trade 

Center in New York City, and perished in the tragic events of September 11, 2001 (including those who are missing and presumed 

dead). The bill also authorizes the President to award posthumously, on behalf of Congress and in recognition of heroic service to the Nation, gold medals to any passengers or crew members 

on board United Airlines Flight 93 who are identified by the Attorney General as having aided in the effort to resist the hijackers on 

board the plane. 

Further, H.R. 3054 expresses the sense of Congress that the 

medals: (1) should be designed, struck, and presented within 90 

days after enactment of this Act; and (2) be struck at the U.S. Mint 

at West Point, New York, to the greatest extent possible. The bill 

also authorizes the Secretary of the Treasury to strike and sell 

bronze duplicates and requires that the proceeds from such sale to 

be deposited in a fund to be used to erect a memorial for the fallen 

emergency responders. 

Legislative History 

H.R. 3054 was introduced on October 5, 2001 by Mr. King and 

one original cosponsor and referred to the Committee on Financial 

Services. The bill was referred to the Subcommittee on Domestic 

Monetary Policy, Technology and Economic Growth on November 2, 

2001. 

On December 18, 2001, the House considered the bill under suspension of the rules and passed H.R. 3054 by a record vote of 392 

yeas and 2 nays. 

On December 19, 2001 H.R. 3054 was received in the Senate and 

referred to the Committee on Banking, Housing, and Urban Affairs. 

On July 16, 2002, Mr. King introduced H.R. 5138, the True 

American Heroes Act of 2002, with 6 original cosponsors, and the 

bill was referred to the Committee on Financial Services. The text 

of the bill was similar to H.R. 3054, but included provisions intended to respond to certain concerns raised by members of the 

Senate. On July 22, 2002, the House considered the bill under suspension of the rules and the bill passed by a voice vote. H.R. 5138 

was received in the Senate and referred to the Senate Committee 

on Banking, Housing, and Urban Affairs on July 23, 2002. 

No further action was taken on either measure in the 107th Congress. 

CODE TALKERS RECOGNITION ACT

(H.R. 3250) 

To authorize the presentation of gold medals on behalf of Congress to Native Americans who served as Code Talkers during foreign conflicts in which the United States was involved during the 

20th Century in recognition of their service to the nation. 

Summary 

H.R. 3250 declares that the purposes of the medals authorized by 

this Act are to express recognition by the United States and its citizens and to honor the Native American Code Talkers who distinVerDate Dec 13 2002 21:53 Jan 02, 2003 Jkt 019006 PO 00000 Frm 00055 Fmt 6601 Sfmt 6601 E:\HR\OC\HR798.XXX HR798
56

guished themselves in performing highly successful communications operations that greatly assisted in saving countless lives and 

in hastening the end of World War I and World War II. 

The bill provides for the award on behalf of Congress (where appropriate, posthumously) of a congressional gold medal to named 

Sioux Indians who served as Sioux Code Talkers during World War 

II, to named Comanche Code Talkers of World War II in recognition of their contributions to the Nation, and to the Choctaw Code 

Talkers who transmitted information in their native language 

which was highly successful in saving men and munitions during 

World War I. 

Further, H.R. 3250 authorizes the Secretary of the Treasury to 

strike and sell duplicates in bronze of the gold medals struck under 

this Act and to deposit the proceeds in the United States Mint Public Enterprise Fund to pay for the costs of the medals awarded 

under the legislation. 

Legislative History 

H.R. 3250 was introduced by Mr. Thune on November 7, 2001 

and referred to the House Committee on Financial Services. On 

November 19, 2001, the bill was referred to the Subcommittee on 

Domestic Monetary Policy, Technology, and Economic Growth. 

On June 18, 2002, the House considered the bill under suspension of the rules and passed the bill, with an amendment, by a 

voice vote. 

The bill was received in the Senate and referred to the Committee on Banking, Housing, and Urban Affairs. No further action 

was taken on this measure in the 107th Congress. 

OVERSIGHT ACTIVITIES

REAUTHORIZATION OF THE DEFENSE PRODUCTION ACT OF 1950

On June 13, 2001, the Subcommittee on Domestic Monetary Policy, Technology and Economic Growth held a hearing on the reauthorization of the Defense Production Act of 1950. As part of its 

economic development portfolio, the Committee has sole jurisdiction over the DPA, which uses economic tools to provide prompt, 

adequate and uninterrupted supplies of industrial resources, including transportation, to satisfy both national security needs and 

needs arising from civil emergencies. The Act would have expired 

at the end of fiscal year 2001. 

DESIGN AND SECURITY OF CURRENCY

On July 24,, 2001, the Subcommittee on Domestic Monetary Policy, Technology and Economic Growth held a hearing on the Design 

and Security of Currency. The hearing focused on efforts to make 

United States currency as resistant to counterfeiting as possible 

and on the impending introduction in 2003 of a new series of American currency with anti-counterfeiting features, including colored 

inks not before seen on U.S. currency. Witnesses also testified on 

the merits of H.R. 2509, the Bureau of Engraving and Printing Security Printing Amendments Act of 2001, and on H.R. 1021, the 

Liberty Bill Act. 

57

BEYOND THE TAX CUTS: UNLEASHING THE ECONOMY

On March 29, 2001, the Subcommittee on Domestic Monetary 

Policy, Technology and Economic Growth held a hearing entitled 

‘‘Beyond the Tax Cuts: Unleashing the Economy.’’ The hearing focused on additional economic stimuli needed—in addition to the 

Administration’s then-proposed tax-relief package—to restore confidence in and ensure the long-term health of the economy. Witnesses included the Majority Leader of the House, Mr. Armey; E. 

Floyd Kvamme, Co-Chairman of the President’s Council of Advisors 

for Science and Technology; Lawrence Kudlow, CEO of Kudlow & 

Co., LLP; James Glassman, resident fellow at the American Enterprise Institute; and Dr. Martin Baily, senior fellow at the International Institute for Economics. 

ENCOURAGING CAPITAL FORMATION IN KEY SECTORS OF THE

ECONOMY

On April 18, 2002, the Subcommittee on Domestic Monetary Policy, Technology and Economic Growth held a hearing on ‘‘Encouraging Capital Formation in Key Sectors of the Economy.’’ The hearing focused on what measures Congress can undertake to promote 

economic growth and foster competition in two key areas vital to 

American competitiveness. The hearing examined ongoing Federal 

efforts in areas related to the energy and telecommunications industries that have profound impacts on the ability—or lack thereof—of market participants to attract capital, and the failure of Congress to be responsive to new developments in these sectors. 

ENCOURAGING THE USE OF ELECTRONIC SIGNATURES IN THE

FINANCIAL INDUSTRY

On June 28, 2001 the Subcommittee on Domestic Monetary Policy, Technology and Economic Growth heard testimony on a joint 

report by the Federal Trade Commission and the Department of 

Commerce that had been mandated by section 105(b) of the ESIGN 

Act (Public Law 106-229). The study focused on the ‘‘reasonable 

demonstration’’ requirements of the consumer consent provisions in 

the ESIGN Act. The FTC testified that it was too soon to make an 

affirmative determination of the effect the ‘‘reasonable demonstration’’ requirements had on the usage of electronic signatures. Witnesses included representatives of the Federal Trade Commission, 

the American Insurance Association, Alston & Bird LLC, the Electronic Financial Services Council, the Financial Services Roundtable and Consumers Union. 

HEARINGS HELD

Beyond the Tax Cut: Unleashing the Economy. Hearing entitled 

‘‘Beyond the Tax Cut: Unleashing the Economy.’’ March 29, 2001. 

PRINTED, serial no. 107-8. 

Reauthorization of the Defense Production Act. Hearing on the reauthorization of the Defense Production Act of 1950. June 13, 2001. 

PRINTED, serial no. 107-24. 

ESIGN—Encouraging the Use of Electronic Signatures in the Financial Services Industry. Hearing entitled ‘‘ESIGN—Encouraging 

58

the Use of Electronic Signatures in the Financial Services Industry.’’ June 28, 2001. PRINTED, serial no. 107-31. 

Design and Security of Currency. Hearing on the design and security of currency. July 24, 2001. PRINTED, 107-38. 

Encouraging Capital Formation in Key Sectors of the Economy.

Hearing entitled ‘‘Encouraging Capital Formation in Key Sectors of 

the Economy.’’ April 18, 2002. PRINTED, serial no. 107-66

(59)

SUBCOMMITTEE ON FINANCIAL INSTITUTIONS AND 

CONSUMER CREDIT

(Ratio: 25-22)

SPENCER BACHUS, Alabama, Chairman 

DAVE WELDON, Florida 

Vice Chairman

MARGE ROUKEMA, New Jersey 

DOUG BEREUTER, Nebraska 

RICHARD H. BAKER, Louisiana 

MICHAEL N. CASTLE, Deleware 

EDWARD R. ROYCE, California 

FRANK D. LUCAS, Oklahoma 

BOB BARR, Georgia 

SUE W. KELLY, New York 

PAUL E. GILLMOR, Ohio 

JIM RYUN, Kansas 

BOB RILEY, Alabama 

STEVEN C. LATOURETTE, Ohio 

DONALD A. MANZULLO, Illinois 

WALTER B. JONES, North Carolina 

JUDY BIGGERT, Illinois 

PATRICK J. TOOMEY, Pennsylvania 

ERIC CANTOR, Virginia 

FELIX J. GRUCCI, JR., New York 

MELISSA A. HART, Pennsylvania 

SHELLEY MOORE CAPITO, West Virginia 

MIKE FERGUSON, New Jersey 

MIKE ROGERS, Michigan 

PATRICK J. TIBERI, Ohio 

MICHAEL G. OXLEY, Ohio 

Ex Officio

MAXINE WATERS, California 

CAROLYN MALONEY, New York 

MELVIN WATT, North Carolina 

GARY ACKERMAN, New York 

KEN BENTSEN, Texas 

BRAD SHERMAN, California 

MAX SANDLIN, Texas 

GREGORY MEEKS, New York 

LUIS GUTIERREZ, Illinois 

FRANK MASCARA, Pennsylvania 

DENNIS MOORE, Kansas 

CHARLES A. GONZALEZ, Texas 

PAUL KANJORSKI, Pennsylvania 

NYDIA M. VELA ́ ZQUEZ, New York 

JAMES H. MALONEY, Connecticut 

DARLENE HOOLEY, Oregon 

JULIA CARSON, Indiana 

HAROLD E. FORD, JR., Tennesee 

RUBE ́ N HINOJOSA, Texas 

KEN LUCAS, Kentucky 

RONNIE SHOWS, Mississippi 

JOSEPH CROWLEY, New York 

JOHN J. LAFALCE, New York 

Ex Officio

LEGISLATIVE ACTIVITIES

UNLAWFUL INTERNET GAMBLING FUNDING PROHIBITION ACT

(H.R. 556) 

To prevent the use of certain bank instruments for unlawful 

Internet gambling, and for other purposes. 

Summary 

H.R. 556, the Unlawful Internet Gambling Funding Prohibition 

Act, prohibits the acceptance of any bank instrument for unlawful 

Internet gambling. It defines certain terms for purposes of the Act; 

establishes civil remedies, criminal penalties, and regulatory enforcement authorities; encourages cooperation by foreign governments in the enforcement of the Act; and requires the Secretary of 

the Treasury to report annually to Congress on deliberations between the United States and other countries on issues relating to 

Internet gambling. Its primary purpose is to give U.S. law enforcement a new, more effective, tool for combating offshore Internet 

60

gambling sites that illegally extend their services to U.S. citizens 

via the Internet. 

Legislative History 

H.R. 556 was introduced by Mr. Leach on February 12, 2001, and 

referred to the Committee on Financial Services, and was additionally referred to the Committee on the Judiciary. 

The Financial Services Committee’s Subcommittee on Financial 

Institutions and Consumer Credit held a hearing on July 24, 2001 

on H.R. 556 and other Internet gambling proposals. 

On October 31, 2001, the Subcommittee on Financial Institutions 

and Consumer Credit was discharged from the further consideration of H.R. 556 by unanimous consent and the Committee on Financial Services met in open session and ordered H.R. 556 reported 

to the House with a favorable recommendation, with an amendment, by a record vote of 34 yeas and 18 nays. The bill was reported to the House by the Committee on Financial Services on December 13, 2001 (H. Rept. 107-339, Part I). 

The Judiciary Committee’s Subcommittee on Crime held a hearing on November 29, 2001 on H.R. 556 and on H.R. 3215, the Combating Illegal Gambling Reform and Modernization Act, a bill on 

the same topic. 

On December 13, 2001, the Committee on Judiciary was granted 

an extension for further consideration of H.R. 556 ending not later 

than December 21, 2001. On December 20, 2001, the Committee on 

Judiciary was granted an extension for further consideration of 

H.R. 556 ending not later than March 29, 2002. The Committee on 

the Judiciary was discharged from the further consideration of the 

bill on March 29, 2002. 

On March 21, 2002, the House considered H.R. 556 under suspension of the rules and passed the bill by a voice vote. On October 

2, 2002, the bill was received in the Senate and referred to the 

Committee on the Judiciary. No further action was taken on this 

measure in the 107th Congress. 

CONSUMER RENTAL PURCHASE AGREEMENT ACT

(H.R. 1701) 

To amend the Consumer Credit Protection Act to assure meaningful disclosures of the terms of rental-purchase agreements, including disclosures of all costs to consumers under such agreements, to provide certain substantive rights to consumers under 

such agreements, and for other purposes. 

Summary 

H.R. 1701, the Consumer Rental Purchase Agreement Act, establishes certain minimum standards governing rental-purchase transactions, in which consumers rent merchandise on a week-to-week 

or month-to-month basis, usually with no down payment required, 

and are free to terminate the arrangement at the end of any rental 

period. H.R. 1701 requires the merchant in a rent-to-own transaction to make a comprehensive set of disclosures regarding the 

total cost of the transaction to the consumer. The bill sets a Federal floor of protections in rental-purchase transactions, while leavVerDate Dec 13 2002 21:53 Jan 02, 2003 Jkt 019006 PO 00000 Frm 00060 Fmt 6601 Sfmt 6601 E:\HR\OC\HR798.XXX HR798
61

ing undisturbed those State laws that are determined by Federal 

regulators to offer greater protections to consumers. H.R. 1701 establishes as a matter of Federal law that rental-purchase transactions are leases rather than credit sales, consistent with their 

treatment under the laws of 46 of the 50 States. The treatment of 

these transactions as credit sales by 4 States would be preempted. 

Legislative History 

H.R. 1701 was introduced in the House on May 3, 2001, by Mr. 

Jones of North Carolina and 12 original cosponsors. The bill was 

referred to the Committee on Financial Services. On May 14, 2001, 

the bill was referred to the Subcommittee on Financial Institutions 

and Consumer Credit. 

On July 12, 2001, the Subcommittee on Financial Institutions 

and Consumer Credit held a hearing on H.R. 1701. 

The Subcommittee on Financial Institutions and Consumer Credit met in open session on September 6 and November 28, 2001, and 

approved H.R. 1701 for full Committee consideration, as amended, 

by a record vote of 24 yeas and 4 nays. 

The Committee on Financial Services met in open session on 

June 26 and 27, 2002, and ordered H.R. 1701 reported to the 

House with a favorable recommendation, with an amendment, by 

a record vote of 29 yeas and 9 nays. The Committee on Financial 

Services reported the bill to the House on July 18, 2002 (H. Rept. 

107-590, Part I). 

H.R. 1701 was sequentially referred to the Committee on the Judiciary which met in open session on September 5, 2002, and ordered H.R. 1701 reported to the House with a favorable recommendation by a record vote of 14 yeas and 12 nays. The Committee on the Judiciary reported the bill to the House on September 9, 2002 (H. Rept. 107-590, Part II). 

On September 17, 2002, the Committee on Rules reported a 

modified closed rule providing for the consideration of H.R. 1701 

(H. Res. 528). On September 18, 2002, H. Res. 528 passed the 

House by a record vote of 213 yeas and 178 nays. The House considered H.R. 1701 pursuant to the rule, and passed the bill by a 

record vote of 215 yeas and 201 nays. 

On September 19, 2002, H.R. 556 was received in the Senate and 

referred to the Senate Committee on Banking, Housing, and Urban 

Affairs. No further action was taken on this measure in the 107th 

Congress. 

COMMUNITY CHOICE IN REAL ESTATE ACT

(H.R. 3424) 

To amend the Bank Holding Company Act of 1956 and the Revised Statutes of the United States to prohibit financial holding 

companies and national banks from engaging, directly or indirectly, 

in real estate brokerage or real estate management activities, and 

for other purposes. 

Summary 

H.R. 3424, the Community Choice in Real Estate Act, amends 

the Bank Holding Company Act of 1956 and the Revised Statutes 

62

of the United States to prohibit the Board of Governors of the Federal Reserve System and the Secretary of the Treasury, respectively, from making a determination that real estate brokerage activity or real estate management activity is an activity that is either financial in nature or incidental to any financial activity, or 

is complementary to a financial activity. 

Legislative History 

H.R. 3424 was introduced in the House on December 6, 2001, by 

Mr. Calvert and 32 original cosponsors and referred to the Committee on Financial Services. On December 27, 2001, the bill was 

referred to the Subcommittee on Financial Institutions and Consumer Credit. 

On July 24, 2002, the Subcommittee on Financial Institutions 

and Consumer Credit held a hearing on H.R. 3424. No further action was taken on this measure during the 107th Congress. 

FINANCIAL SERVICES REGULATORY RELIEF ACT OF 2002

(H.R. 3951) 

To provide regulatory relief and improve productivity for insured 

depository institutions, and for other purposes. 

Summary 

H.R. 3951 will alter or eliminate statutory banking provisions in 

order to lessen the regulatory compliance burden on insured depository institutions and improve their productivity, as well as to 

make needed technical corrections to current statutes. It is also intended to counterbalance the additional regulatory burden placed 

on insured depository institutions in the USA PATRIOT Act to 

focus their compliance efforts on combating money laundering and 

terrorist financing. H.R. 3951 would allow financial institutions to 

devote more resources to the business of lending to consumers and 

less to compliance with outdated and unneeded regulations. 

Legislative History 

H.R. 3951, the Financial Services Regulatory Relief Act of 2002, 

was introduced by Ms. Capito and 3 original cosponsors on March 

13, 2002, and was referred to the Committee on Financial Services. 

The bill was referred to the Subcommittee on Financial Institutions 

and Consumer Credit on March 14, 2002. 

The Subcommittee on Financial Institutions and Consumer Credit held a legislative hearing on H.R. 3951 on March 14 and April 

25, 2002. 

On May 8, 2002, the Subcommittee on Financial Institutions and 

Consumer Credit met in open session and approved H.R. 3951 for 

full Committee consideration, as amended, by a voice vote. 

On June 6, 2002, the Committee on Financial Services met in 

open session and ordered H.R. 3951 reported to the House with a 

favorable recommendation, with an amendment, by a voice vote. 

The Committee reported the bill to the House on June 18, 2002 (H. 

Rept. 107-516, Part I). 

H.R. 3951 was sequentially referred to the Committee on the Judiciary and, on July 17, 2002, that committee met in open session 

63

and ordered H.R. 3951 reported to the House with a favorable recommendation, with an amendment, by a voice vote. The Committee 

on the Judiciary reported the bill to the House on July 22, 2002 

(H. Rept. 107-516, Part II). 

No further action was taken on this measure in the 107th Congress. 

CHECK CLEARING FOR THE 21ST CENTURY ACT

(H.R. 5414) 

To facilitate check truncation by authorizing substitute checks, to 

foster innovation in the check collection system without mandating 

receipt of checks in electronic form, and to improve the overall efficiency of the Nation’s payments system, and for other purposes. 

Summary 

H.R. 5414, the Check Clearing for the 21st Century Act, will promote greater efficiency in the overall payments system and reduce 

the system’s current reliance on the nation’s transportation grid. 

H.R. 5414 is a proposal to modernize the check clearing process by 

removing legal impediments to electronic check processing. After 

the September 11, 2001, terrorist attacks on America, when the air 

traffic system was brought to a standstill for several days, the 

check collection process experienced significant disruptions. 

Legislative History 

H.R. 5414 was introduced on September 19, 2002 by Mr. Ferguson and one original cosponsor, and was referred to the Committee on Financial Services. On September 23, 2002 the bill was 

referred to the Subcommittee on Financial Institutions and Consumer Credit. 

On September 25, 2002, the Subcommittee on Financial Institutions and Consumer Credit held a legislative hearing on H.R. 5414, 

the Check Clearing for the 21st Century Act. 

No further action was taken on this measure in the 107th Congress. 

FEDERAL DEPOSIT INSURANCE REFORM ACT OF 2002

(H.R. 3717) 

To reform the Federal deposit insurance system, and for other 

purposes. 

Summary 

H.R. 3717, the Federal Deposit Insurance Reform Act of 2002, 

will preserve the value of insured deposits at insured depository institutions, advance the national priority of enhancing retirement 

security for all Americans, and ensure that the value, benefit and 

costs of deposit insurance are allocated equitably and fairly. The 

bill merges the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF); increases the standard maximum 

deposit insurance limit from $100,000 to $130,000, and indexes it 

every 5 years for inflation; doubles the new coverage level for certain retirement accounts; and increases the coverage amount for inVerDate Dec 13 2002 21:53 Jan 02, 2003 Jkt 019006 PO 00000 Frm 00063 Fmt 6601 Sfmt 6601 E:\HR\OC\HR798.XXX HR798
64

State municipal deposits. Federally chartered credit unions are provided with parity in general standard maximum deposit insurance 

coverage, coverage for retirement accounts and municipal deposits. 

H.R. 3717 removes legal constraints on the authority of the Federal Deposit Insurance Corporation (FDIC) to charge risk-based 

premium assessments, so that all insured depository institutions 

pay for the value and benefit of deposit insurance fairly and equitably. The legislation authorizes the FDIC to set the ratio of reserves to estimated insured deposits within a range of 1.15-1.40 

percent, replacing the 1.25 percent ’’hard target’’ mandated by current law. The bill also returns assessments in the form of refunds, 

credits, and dividends to insured depository institutions for overpayments they have made and/or whenever the fund’s level is considered strong and the financial and economic outlook is considered 

favorable. Dividends are provided to qualified insured depository 

institutions whenever the upper limits of the designated reserve 

ratio (DRR) are exceeded. 

Finally, the legislation directs the FDIC to study its administrative and managerial processes and alternative means for administering the deposit insurance system. These studies will ensure 

that the deposit insurance fund and the overall deposit insurance 

system are managed and operated as efficiently and as effectively 

as possible. 

Legislative History 

H.R. 3717, the Federal Deposit Insurance Reform Act of 2002, 

was introduced on February 12, 2002 by Mr. Bachus and 15 original cosponsors and referred to the Committee on Financial Services. The bill was referred to the Subcommittee on Financial Institutions and Consumer Credit on March 1, 2002. 

The Subcommittee on Financial Institutions and Consumer Credit met in open session on March 7, 2002 and approved H.R. 3717 

for full Committee consideration, as amended, by a voice vote. 

The Committee on Financial Services met in open session on 

April 17, 2002 and ordered H.R. 3717 reported to the House with 

an amendment by a record vote of 52 yeas and 2 nays. 

The House considered H.R. 3717 under suspension of the rules 

and passed the bill by a record vote of 408 yeas and 18 nays. H.R. 

3717 was received in the Senate on May 23, 2002 and referred to 

the Committee on Banking, Housing, and Urban Affairs. No further action was taken on this measure in the 107th Congress. 

BUSINESS FREEDOM CHECKING ACT

(H.R. 1009) 

To repeal the prohibition on the payment of interest on demand 

deposits. 

Summary 

H.R. 1009, the Business Checking Freedom Act of 2002, permits 

the payment of interest on business checking accounts held by 

businesses, and allow up to 24 transfers per month between accounts by any account holder. Current law forbids such accounts 

from drawing interest. The legislation also authorizes the Federal 

65

Reserve to pay interest on deposits with a Federal Reserve Bank 

that a bank is required by law to hold as reserves against customer 

deposits. The legislation directs the Federal Reserve to conduct a 

survey of bank fees and services. The legislation would also require 

the Federal Reserve to transfer surplus funds to the general fund 

of the Treasury. 

Legislative History 

H.R. 1009 was introduced in the House on March 13, 2001 by 

Mr. Toomey with 6 original cosponsors and referred to the Committee on Financial Services. The bill was referred to the Subcommittee on Financial Institutions and Consumer Credit on 

March 21, 2001. 

The Subcommittee on Financial Institutions and Consumer Credit met in open session on March 21, 2001, and approved H.R. 1009 

for full Committee consideration by a voice vote. On March 28, 

2001, the Committee on Financial Services met in open markup 

session and approved an amendment to H.R. 974, the Small Business Interest Checking Act of 2001, containing the text of H.R. 

1009. Accordingly, the Committee laid H.R. 1009 upon the table by 

unanimous consent. 

Due to Senate inaction on H.R. 974, on April 9, 2002 the House 

considered H.R. 1009 under suspension of the rules and passed the 

bill by a voice vote. No further action was taken on the measure 

in the 107th Congress. 

SMALL BUSINESS INTEREST CHECKING ACT

(H.R. 974) 

To increase the number of interaccount transfers which may be 

made from business accounts at depository institutions, to authorize the Board of Governors of the Federal Reserve System to pay 

interest on reserves, and for other purposes. 

Summary 

H.R. 974, the Small Business Interest Checking Act of 2001, permits the payment of interest on business checking accounts held. 

Current law forbids such accounts from drawing interest. The legislation also authorizes the Federal Reserve to pay interest on deposits with a Federal Reserve Bank that a bank is required by law to 

hold as reserves against customer deposits. Current law does not 

provide for interest payments on such deposits, leading to the characterization of such deposits as ‘‘sterile reserves’’. By allowing the 

Federal Reserve to pay interest on such deposits, H.R. 974 would 

create an incentive for banks to avoid circumventing the reserve 

deposit requirement, and would help the Federal Reserve conduct 

monetary policy. The legislation would also require the Federal Reserve to transfer surplus funds to the general fund of the Treasury. 

Legislative History 

H.R. 974 was introduced on March 13, 2001 by Ms. Kelly and 2 

original cosponsors, and was referred to the Committee on Financial Services. On March 20, 2002, the bill was referred to the Subcommittee on Financial Institutions and Consumer Credit. 

66

The Subcommittee on Financial Institutions and Consumer Credit met in open session on March 21, 2001, and approved H.R. 974 

for full Committee consideration by a voice vote. On March 28, 

2001, the Committee on Financial Services met in open markup 

session and ordered H.R. 974 reported to the House with an 

amendment consisting of the text of H.R. 1009, the Small Business 

Interest Checking Act of 2001. The Committee on Financial Services reported the measure to the House on April 3, 2001 (H. Rept. 

107-38). On April 3, 2001 the House considered the bill under suspension of the rules and passed H.R. 974 by a voice vote. No further action was taken on this measure in the 107th Congress. 

OVERSIGHT ACTIVITIES

GIVING CONSUMERS CREDIT: HOW IS THE CREDIT CARD INDUSTRY

TREATING ITS CUSTOMERS?

On November 1, 2001, the Subcommittee on Financial Institutions and Consumer Credit held a hearing on credit card industry 

practices. Among the issues addressed were how the credit card industry sets interest rates and how these rates compare to the cost 

of other forms of consumer credit; the processing practices of the 

industry, including the posting of payments and the handling of 

customer complaints; industry compliance with Federal consumer 

protection laws; and the credit card industry’s treatment of customers whose mail service was disrupted by the terrorist attacks 

of September 11, 2001, and subsequent episodes of bioterrorism. 

Witnesses testifying at the hearing included officials from the Federal Reserve Board and the Federal Trade Commission, as well as 

representatives of various consumer groups and major credit card 

associations, including MasterCard International and VISA U.S.A. 

RECOVERING DICTATORS’ PLUNDER

On May 9, 2002, the Subcommittee on Financial Institutions and 

Consumer Credit held a hearing on international efforts to facilitate the recovery of assets looted from countries by corrupt foreign 

officials. Official corruption has had a debilitating impact in many 

parts of the developing world, exacerbating poverty, disease, and 

malnutrition, as well as creating the conditions of despair and resentment in which terrorism is more likely to breed. The hearing 

focused on strategies for tracing and repatriating the proceeds of 

corruption, including the successful efforts of the Swiss government 

to arrange the return to Nigeria of nearly a billion dollars allegedly 

stolen by that country’s former military ruler Sani Abacha. The 

hearing featured testimony by private sector experts on corruption, 

financial crime, and asset recovery. 

HEARINGS HELD

Protecting Consumers: What Can Congress Do to Help Financial 

Regulators Coordinate Efforts to Fight Fraud? Joint hearing with 

the Subcommittee on Oversight and Investigations. March 6, 2001. 

PRINTED, serial no. 107-2. 

Proposals to Permit Payment of Interest on Business Checking Accounts and Sterile Reserves Maintained at Federal Reserve Banks. 

67

Hearing on proposals to permit payment of interest on business 

checking accounts and sterile reserves maintained at Federal reserve banks. March 13, 2001. PRINTED, serial no. 107-4. 

Promotion of Capital Availability to American Businesses. Joint 

hearing with the Subcommittee on Capital Markets, Insurance, and 

Government Sponsored Enterprises on the promotion of capital 

availability to American businesses. April 4, 2001. PRINTED, serial no. 107-9. 

Federal Reserve Board and Treasury Department Rule Proposal.

Hearing on the rule proposal of the Federal Reserve Board and the 

Treasury Department. May 2, 2001. PRINTED, serial no. 107-12. 

Deposit Insurance Reform. Hearing on deposit insurance reform. 

May 16, 2001. PRINTED, serial no. 107-16. 

Consumer Rental Purchase Agreement Act. Legislative hearing on 

H.R. 1701, the Consumer Rental Purchase Agreement Act. July 12, 

2001. PRINTED, serial no. 107-33. 

Unlawful Internet Gambling Funding Prohibition Act. Legislative 

hearing on H.R. 556, the Unlawful Internet Gambling Funding 

Prohibition Act and other Internet gambling proposals. July 24, 

2001. PRINTED, serial no. 107-37. 

Viewpoints of Select Regulators on Deposit Insurance Reform.

Hearing entitled ‘‘Viewpoints of Select Regulators of Deposit Insurance Reform.’’ July 26, 2001. PRINTED, serial no. 107-39. 

Pushing Back the Pushouts: the SEC’s Broker Dealer Rules. Joint 

hearing with the Subcommittee on Capital Markets, Insurance, and 

Government Sponsored Enterprises entitled ‘‘Pushing Back the 

Pushouts: the SEC’s Broker Dealer Rules.’’ August 2, 2001. PRINTED, serial no. 107-43. 

Viewpoints of the FDIC and Select Industry Experts on Deposit 

Insurance Reform. Hearing entitled ‘‘Viewpoints of the FDIC and 

Select Industry Experts on Deposit Insurance Reform. October 17, 

2001. PRINTED, serial no. 107-47. 

Giving Consumers Credit: How is the Credit Card Industry Treating its Customers? Hearing entitled ‘‘Giving Consumers Credit: 

How is the Credit Card Industry Treating its Customers?’’ November 1, 2001. PRINTED, serial no. 107-49. 

Financial Services Regulatory Relief Act. Legislative hearing on 

H.R. 3951, the Financial Services Regulatory Relief Act of 2002. 

March 14 and April 25, 2002. PRINTED, serial no. 107-62. 

Recovering Dictators’ Plunder Hearing on recovering dictator’s 

plunder. May 9, 2002. PRINTED, serial no. 107-69. 

Community Choice in Real Estate Act. Legislative hearing on 

H.R. 3424, the Community Choice in Real Estate Act. July 24, 

2002. Serial no. 107-80. 

Check Clearing for the 21st Century Act Legislative hearing on 

H.R. 5414, the Check Clearing for the 21st Century Act. September 

25, 2002. Serial no. 107-84. 

(69)

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

SUBCOMMITTEE ON HOUSING AND COMMUNITY 

OPPORTUNITY

(Ratio: 14-12)

MARGE ROUKEMA, New Jersey, Chair 

MARK GREEN, Wisconsin 

Vice Chairman

DOUG BEREUTER, Nebraska 

SPENCER BACHUS, Alabama 

PETER T. KING, New York 

ROBERT W. NEY, Ohio 

BOB BARR, Georgia 

SUE W. KELLY, New York 

BOB RILEY, Alabama 

GARY G. MILLER, California 

ERIC CANTOR, Virginia 

FELIX J. GRUCCI, JR., New York 

MIKE ROGERS, Michigan 

PATRICK J. TIBERI, Ohio 

MICHAEL G. OXLEY, Ohio 

Ex Officio

BARNEY FRANK, Massachusetts 

NYDIA VELA ́ ZQUEZ, New York 

JULIA CARSON, Indiana 

BARBARA LEE, California 

JAN SCHAKOWSKY, Illinois 

STEPHANIE TUBBS JONES, Ohio 

MICHAEL CAPUANO, Massachusetts 

MAXINE WATERS, California 

BERNARD SANDERS, Vermont*

MELVIN WATT, North Carolina 

WILLIAM LACY CLAY, Missouri 

STEVE ISRAEL, New York 

JOHN J. LAFALCE, New York 

Ex Officio

LEGISLATIVE ACTIVITIES

MANUFACTURED HOUSING FEES

Public Law 107-18 (S. 1029) 

A bill to clarify the authority of the Department of Housing and 

Urban Development with respect to the use of fees during fiscal 

year 2001 for the manufactured housing program. 

Summary 

S. 1029 clarifies the authority of the Department of Housing and 

Urban Development on the use of fees during FY 2001 for the manufactured housing program. 

Legislative History 

On June 13, 2001, Mr. Sarbanes introduced S. 1029 in the Senate with 10 original cosponsors and the Senate passed the bill by 

unanimous consent. On June 14, the bill was received in the 

House. 

On June 20, 2001, the House considered the bill under suspension of the rules and passed the bill by a voice vote, clearing S. 

1029 for the White House. The bill was presented to the President 

on June 26, 2001 and signed into law on July 5, 2001, becoming 

public law number 107-18. 

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FHA MULTIFAMILY HOUSING MORTGAGE LOAN LIMIT ADJUSTMENT ACT

Public Law 107-73 (H.R. 1629; H.R. 2620) 

To increase the mortgage loan limits under the National Housing 

Act for multifamily housing mortgage insurance. 

Summary 

H.R. 1629, the FHA Multifamily Housing Mortgage Loan Limit 

Adjustment Act of 2001, amends the National Housing Act to increase the mortgage loan limits for housing mortgage insurance. 

Legislative History 

H.R. 1629, the FHA Multifamily Housing Mortgage Loan Limit 

Adjustment Act of 2001, was introduced by Mrs. Roukema and one 

original cosponsor on April 26, 2001 and referred to the Committee 

on Financial Services. The bill was referred to the Subcommittee 

on Housing and Community Opportunity on May 10, 2001. 

The text of the measure was included in section 213 of H.R. 

2620, the Departments of Veterans Affairs and Housing and Urban 

Development, and Independent Agencies Appropriations Act, 2002. 

The conference report to accompany H.R. 2620 was considered by 

the House on November 8, 2001, and agreed to by a record vote of 

401 yeas and 18 nays. The Senate considered the conference report 

by unanimous consent on November 8, 2001 and agreed to the conference report by a record vote of 87 yeas and 7 nays, clearing the 

bill for the White House. 

The bill was presented to the President on November 15, 2001, 

and signed into law on November 26, 2001, becoming public law 

107-73. 

SENIORS COMMISSION EXTENSION ACT

Public Law 108-73 (H.R. 1850; H.R. 2620) 

To extend the Commission on Affordable Housing and Health Facility Needs for Seniors in the 21st Century and to make technical 

corrections to the law governing the Commission. 

Summary 

H.R. 1850, the Senior Housing Commission Extension Act of 

2001 would make a technical correction to extend the dates authorizing the Commission’s reporting date from December 21, 2001 to 

December 31, 2002; extend the Commission termination date from 

June 30, 2002, to March 31, 2003. In addition, H.R. 1850 gives the 

Commission the authority to use employees from any agency to assist in its completion of the report on a non-reimbursable nature. 

Legislative History 

H.R. 1850, the Senior Housing Commission Extension Act of 

2001, was introduced by Mrs. Roukema and one original cosponsor 

on May 15, 2001 and referred to the Committee on Financial Services. The bill was referred to the Subcommittee on Housing and 

Community Opportunity on May 29, 2001. 

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On June 27, 2001, the Subcommittee on Housing and Community Opportunity was discharged from the further consideration of 

H.R. 1850 by unanimous consent and the full Committee met in 

open session to consider H.R. 1850. The Committee ordered H.R. 

1850 reported to the House with a favorable recommendation by a 

voice vote. The Committee reported the bill to the House on July 

19, 2001 (H. Rept. 107-147). 

On September 24, 2001, the House considered H.R. 1850 under 

suspension of the rules and passed the bill by a voice vote. The bill 

was received in the Senate on September 25, 2001 and referred to 

the Senate Committee on Banking, Housing, and Urban Affairs. No 

further action was taken on this measure in the 107th Congress. 

A modified version of the text of the measure was included in 

H.R. 2620, the Departments of Veterans Affairs and Housing and 

Urban Development, and Independent Agencies Appropriations 

Act, 2002. The conference report to accompany H.R. 2620 was considered by the House on November 8, 2001, and agreed to by a 

record vote of 401 yeas and 18 nays. The Senate considered the 

conference report by unanimous consent on November 8, 2001 and 

agreed to the conference report by a record vote of 87 yeas and 7 

nays, clearing the bill for the White House. 

The bill was presented to the President on November 15, 2001, 

and signed into law on November 26, 2001, becoming public law 

107-73. 

TECHNICAL CORRECTION FOR JACKSONVILLE, FLORIDA CONTINUUM OF

CARE HOMELESS ASSISTANCE PROGRAM APPLICATION

Public Law 107-151 (H.R. 3699) 

To revise certain grants for continuum of care assistance for 

homeless individual and families. 

Summary 

The bill directs the Secretary of Housing and Urban Development to limit the amount of a grant (pursuant to the Notice of 

Funding Availability for Continuum of Care Homeless Assistance 

Programs for FY 2001) to the Liberty Center for the Homeless Incorporated. States that if an award has been made in excess of 

such amount prior to enactment of this Act, the Secretary shall 

modify the award and distribute such excess to other applicants 

from the Jacksonville, Florida, Continuum of Care in the order listed in the project priority list. 

Legislative History 

H.R. 3699 was introduced by Mr. Crenshaw and one original cosponsor on February 7, 2002 and referred to the Committee on Financial Services. On March 4, 2002, the bill was referred to the 

Subcommittee on Housing and Community Opportunity. 

On February 12, 2002, the House considered the bill under suspension of the rules and passed H.R. 3699 by a record vote of 421 

yeas and no nays. 

The bill was received in the Senate on February 13, 2002 and referred to the Senate Committee on Banking, Housing, and Urban 

Affairs. On February 25, 2002, the Senate Committee on Banking, 

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Housing, and Urban Affairs was discharged from the further consideration of the bill and the Senate passed the bill by unanimous 

consent, clearing the bill for the White House. 

The bill was presented to the President on March 1, 2002 and 

signed into law on March 13, 2002, becoming public law number 

107-151. 

FHA DOWN PAYMENT SIMPLIFICATION ACT

Public Law 107-326 (S. 2239; H.R. 3995) 

A bill to amend the National Housing Act to simplify the down 

payment requirements for FHA mortgage insurance for single family home buyers, repeal the increase of the GNMA guarantee fee, 

and index FHA multifamily loan limits. 

Summary 

The bill amended the National Housing Act to make permanent 

a down payment formula used in FHA mortgage insurance transactions that determines what is calculated as the 3 percent down 

payment requirement. The simplified formula was used in a demonstration and was scheduled to expire on December 30, 2002. This 

bill made the simplification demonstration permanent. Additionally, the FHA multifamily loan limits were indexed to reflect future 

increases in costs, such as construction and land as measured by 

the Consumer Price Index for All Urban Consumers (CPI-U), applied by the Federal Reserve Board. Finally, the bill repealed a provision included in the 1998 Higher Education Act Amendments 

(Public Law 105-244) to increase by 50 percent (to nine basis 

points) the annual fee charged beginning in FY 2005. 

Legislative History 

S. 2239 was introduced in the Senate on April 24, 2002 by Mr. 

Sarbanes. The Senate Committee on Banking, Housing, and Urban 

Affairs approved the bill on October 15, 2002 with amendments 

and the Senate passed the bill by unanimous consent on October 

17, 2002. 

The provisions included in S. 2239 were included in H.R. 3995, 

the Housing Affordability Act for America approved by the Committee on Financial Services on July 10, 2002. 

S. 2239 was received in the House on October 21, 2002 and referred to the House Committee on Financial Services. The bill was 

referred to the Subcommittee on Housing and Community Opportunity on October 25, 2002. 

On November 15, 2002, the Committee on Financial Services was 

discharged from the further consideration of S. 2239 and the House 

passed the bill by unanimous consent, clearing S. 2239 for the 

White House. 

The bill was presented to the President on November 22, 2002, 

and signed by the President on December 4, 2002, becoming public 

law number 107-326. 

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NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION

REAUTHORIZATION ACT

Public Law 107-292 (S. 1210; H.R. 3995) 

A bill to reauthorize the Native American Housing Assistance 

and Self-Determination Act of 1996. 

Summary 

S. 1210, the Native American Housing Assistance and Self-Determination Reauthorization Act of 2001, The bill reauthorized the 

housing and community development block grant for Native American tribes recognized by the Federal government, and to a limited 

extent, some tribes recognized by their state governments. The bill 

also provides for comprehensive planning and clarifies that the creation of the Land Titles Commission does not need a specific advance appropriation in order for the HUD Secretary to appoint 

Commission members. 

Legislative History 

S. 1210 was introduced in the Senate on April 24, 2002 by Mr. 

Campbell and referred to the Senate Committee on Indian Affairs. 

The Senate Committee on Indian Affairs reported the bill to the 

Senate with an amendment on August 28, 2002 (S. Rept. 107-246) 

and the bill was sequentially referred to the Senate Committee on 

Banking, Housing, and Urban Affairs for a period not to exceed 60 

days. The Senate Committee on Banking, Housing, and Urban Affairs reported the bill to the Senate on September 17, 2002 without 

a written report. 

The Senate passed the bill by unanimous consent on October 7, 

2002 and the bill was received in the House on the same day. The 

bill was referred to the Committee on Financial Services and, on 

October 15, 2002, the bill was referred to the Subcommittee on 

Housing and Community Opportunity. 

The provisions included in S. 1210 were included in H.R. 3995, 

the Housing Affordability Act for America approved by the Committee on Financial Services on July 10, 2002. 

On October 16, 2002, the Committee on Financial Services was 

discharged from the further consideration of S. 1210 and the House 

passed the bill by unanimous consent, clearing S. 1210 for the 

White House. 

The bill was presented to the President on November 4, 2002, 

and signed by the President on November 13, 2002, becoming public law number 107-292. 

TORNADO SHELTERS ACT

(H.R. 247) 

To amend the Housing and Community Development Act of 1974 

to authorize communities to use community development block 

grant funds for construction of tornado-safe shelters in manufactured home parks. 

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Summary 

The Tornado Shelters Act would authorize, as an eligible activity, 

funds from the Community Development Block Grant program to 

be used toward construction of community tornado shelters in manufactured home parks. 

Legislative History 

H.R. 247, the Tornado Shelters Act, was introduced by Mr. Bachus on January 30, 2001 and referred to the Committee on Financial 

Services. On March 2, 2001, the bill was referred to the Subcommittee on Housing and Community Opportunity. 

On March 20, 2001, the Committee on Rules reported a modifiedopen rule providing for the consideration of the bill (H. Res. 93). 

On March 22, 2001, H. Res. 93 was agreed to by a record vote of 

246 yeas and 169 nays. The House considered and passed H.R. 247, 

as amended, by a record vote of 401 yeas and 6 nays. 

On March 22, 2001, the bill was received in the Senate and referred to the Senate Committee on Banking, Housing, and Urban 

Affairs. No further action was taken on this measure in the 107th 

Congress. 

HOUSING AFFORDABILITY FOR AMERICA ACT OF 2002

(H.R. 3995) 

To amend and extend certain laws relating to housing and community opportunity, and for other purposes. 

Summary 

H.R. 3995, the Housing Affordability for America Act made reforms to existing housing programs to increase flexibility for local 

governments and programs, increase the availability of affordable 

housing and expand home ownership opportunities across the country. 

Section 101, as introduced, amended the HOME program to provide specific funding and targeted HOME funds for multifamily 

production and rehabilitation of units primarily for very-low income 

and extremely-low income families and individuals. The Committee, during markup, approved an amendment replacing section 

101 with a matching grant program to State and local housing 

trust funds. Of the total money available for matching funds, 40 

percent would go to participating States and 60 percent to participating jurisdictions. These grants would be administered through 

the HOME investment partnership program. States and localities 

would be required to use these grants for the production, preservation or rehabilitation of affordable housing for very low and extremely low-income families. H.R. 3995 authorized a down payment 

assistance initiative under the HOME program to provide low income families with down payment assistance in order to achieve 

the goal of home ownership. Additional changes to increase flexibility and improve the efficiency and effectiveness of the HOME 

program were included. 

H.R. 3995 provided new and more efficient ways to assist firsttime home buyers, including helping low-income buyers purchase 

75

their first home is the FHA program, encouraging home ownership 

opportunities, and increasing the supply of affordable rental housing nationwide. 

In the FHA Multifamily Housing program, H.R. 3995 indexed 

FHA mortgage multifamily limits to reflect building, land and impact fee cost increases in the future; and, increased the maximum 

high-cost percentage allowing for production in extremely expensive markets. Moreover, the bill included provisions to modernize 

the thirty-year old healthcare mortgage insurance programs of sections 232 and 242 of the National Housing Act to make them more 

consistent with today’s method of delivering healthcare and assisted living services for the elderly, sick, injured and disabled. 

Regarding the FHA Single Family Housing program, H.R. 3995 

made permanent the FHA down payment simplification calculation; modified the cap on FHA adjustable-rate mortgages; and established a uniform national loan limit for HECM. H.R. 3995 also 

made changes to the FHA program to tighten requirements and administration of the 203(k) FHA—the single family rehabilitation 

loan program. 

For the elderly, H.R. 3995 provided ways to rehabilitate and preserve existing elderly housing by establishing a demonstration program for elderly housing for multigenerational families and for 

grandparent-headed households; authorized grants for the repair of 

Federally assisted housing for the elderly; and set uniform loan 

limits for reverse mortgages used by senior homeowners. 

To better meet the housing needs of low income families, H.R. 

3995 included provisions to increase payment standards and to 

allow Public Housing Authorities to use up to 2 percent of funds 

to house ‘‘hard to house families.’’ It also included several administrative changes to the Public Housing programs designed to improve the efficiency and success of Public Housing Authorities. 

Under the HOPE VI program, which was designed to rehabilitate, 

demolish and/or reconstruct public housing for the most severely 

distressed developments, H.R. 3995 provided incentives for PHAs 

and private entities to form partnerships and create mixed-finance 

and mixed-income affordable housing; allowed smaller communities 

to participate in the program; and ensured that recipients used the 

money in a timely and cost-effective manner. 

Regarding homelessness, H.R. 3995 reauthorized HUD’s homeless programs through FY 2004 and funded renewals of contracts 

through the Housing Certificate Fund. In addition, the legislation 

set a national goal to end homelessness within 10 years. Moreover, 

H.R. 3995 reauthorized HOPWA (Housing Opportunities for Persons with AIDS), which houses individuals diagnosed with HIV/

AIDS and their families through 2004. 

H.R. 3995 reauthorized The Native American Housing Assistance 

and Self-Determination Act of 1996 (NAHASDA), which expired on 

September 30, 2002. The block grant program was established to 

provide housing assistance to eligible Indian Tribes or their tribally 

designated housing entities (TDHEs). Eligible tribes include both 

Federally recognized and, to a limited degree, certain State-recognized Indian tribes formerly eligible under the 1937 Act. 

Title VIII of H.R. 3995 was designed to heighten public awareness of the costs to housing affordability of certain regulations 

76

when there is a significant adverse impact on housing affordability. 

H.R. 3995 required a housing impact analysis of any new rule of 

a Federal agency that has an economic housing impact of 

$100,000,000 or more. 

Legislative History 

On March 19, 2002, Mrs. Roukema and 22 cosponsors introduced 

H.R. 3995, the Housing Affordability for America Act of 2002, and 

the bill was referred to the Committee on Financial Services, and 

additionally to the Committee on the Judiciary. On April 10, 2002, 

the bill was referred to the Subcommittee on Housing and Community Opportunity. 

The Subcommittee on Housing and Community Opportunity held 

a 3-day legislative hearing on H.R. 3995 on April 10, 23, and 24, 

2002. On June 18, 2002, the Subcommittee met in open session and 

approved H.R. 3995 for full Committee consideration, with an 

amendment. 

The Committee on Financial Services met in open markup session on June 20 and July 10, 2002, and ordered H.R. 3995 reported 

to the House with a favorable recommendation, with an amendment. The Committee on Financial Services reported the bill to the 

House on September 17, 2002 (H. Rept. 107-640, Part II). 

The Committee on the Judiciary referred H.R. 3995 to the Subcommittee on Commercial and Administrative Law on May 6, 2002. 

The Subcommittee on Commercial and Administrative Law met in 

open session on July 16, 2002 and approved the bill for full committee consideration. The Committee on the Judiciary met in open 

session on July 23, 2002 and ordered H.R. 3995 reported to the 

House, with a favorable recommendation. The Committee on the 

Judiciary reported the bill to the House on September 4, 2002 (H. 

Rept. 107-640, Part I). 

No further action was taken on this measure in the 107th Congress. 

BROWNFIELDS REDEVELOPMENT ENHANCEMENT ACT

(H.R. 2941) 

To facilitate the provision of assistance by the Department of 

Housing and Urban Development for the cleanup and economic redevelopment of brownfields. 

Summary 

H.R. 2941, the Brownfields Redevelopment Enhancement Act, increased access to brownfields redevelopment funds for America’s 

small communities by de-linking Section 108 loan guarantees from 

HUD’s Brownfields Economic Development Initiative (BEDI) 

grants. The bill focused on providing access to capital for local entities that traditionally have had trouble obtaining financing for 

brownfields redevelopment activities. The bill also authorized HUD 

to establish a pilot program for a common brownfields redevelopment loan pool. 

77

Legislative History 

H.R. 2941 was introduced on September 21, 2001 by Mr. Gary 

G. Miller of California and three original cosponsors. The bill was 

referred to the Committee on Financial Services and to the Subcommittee on Housing and Community Opportunity on October 4, 

2001. A hearing in the Subcommittee was held on March 6, 2002. 

Immediately following the hearing the Subcommittee met in open 

session and approved H.R. 2941 for full Committee consideration, 

as amended. On April 11, 2002, the Committee met in open session 

and ordered H.R. 2941 reported to the House with a favorable recommendation, with an amendment, by a voice vote. The Committee 

reported the bill to the House on May 8, 2002 (H. Rept. 107-448). 

On June 4, 2002, the House considered the bill under suspension 

of the rules and passed the bill by a voice vote. On June 5, 2002, 

the bill was received in the Senate and referred to the Committee 

on Banking, Housing, and Urban Affairs. 

No further action was taken on this measure in the 107th Congress. 

OVERSIGHT ACTIVITIES

FHA FINANCIAL HEALTH

On March 20, 2001, the Subcommittee on Housing and Community Opportunity held a hearing entitled ‘‘The Financial Health of 

the Federal Housing Administration’s (FHA) Single-Family Mutual 

Mortgage Insurance Fund.’’ The impetus for the hearing were a 

GAO report, a HUD IG audit, and a CBO October 23, 2000 letter 

related to the Mutual Mortgage Insurance Fund (MMI). The first 

report represented the results of a GAO review of the adequacy of 

the statutorily required capital ratio standards. The second report 

presented the results of an annual audit of FHA’s financial statements by the HUD Inspector General. The third document is an 

October 23, 2000 response to the Senate Housing Subcommittee regarding a MMI surplus. GAO, HUD IG, and CBO provided different perspectives on the health of the MMI and to what extent 

policymakers can make judgments. The health of the MMI is directly related to potential new home ownership initiatives that may 

require, for example, lower FHA premiums, targeted programs to 

vulnerable/selected populations, or the creation of a new housing 

production program. 

HUD PROPOSED BUDGET FOR FISCAL YEAR 2002

On April 26, 2001, the Subcommittee held a hearing on the HUD 

FY 2002 proposed budget where Secretary of Housing and Urban 

Development Mel Martinez outlined the Administration’s proposed 

a budget for the Department of Housing and Urban Development 

(HUD) of approximately $30.4 billion. The HUD budget maintained 

funding for the Department’s core programs, including CDBG and 

HOME, and requested 34,000 additional (incremental) section 8 

vouchers. The Administration’s budget also contained a number of 

new initiatives, including a ‘‘Down Payment Assistance Initiative’’

that would allow $200 million for matching downpayment assistance provided to families by third parties, up to $1,500 per family 

78

(set aside from the HOME program funds). The funds would be administered by State housing finance agencies and each year would 

help over 130,000 first-time low-income homebuyers. 

In addition, the Administration proposed a new hybrid adjustable-rate mortgage that would work with tax incentives for savings, 

and proposed tax credits for rehabilitation and construction, to expand homeownership. Other initiatives provided in the Administration’s HUD budget, included the ‘‘Community Technology Centers 

Initiative’’, which enhanced the Department’s Neighborhood Net- works program by providing $80 million in competitive grants to 

help communities create or expand technology centers in high poverty urban communities. Community Development Block Grant 

funding of $20 million would also be designated for use in the ‘‘Improving Access Initiative’’, to help religious and civic organizations, 

with limited resources, make their facilities accessible to the disabled. 

HOUSING AFFORDABILITY

On May 3, 2001, the Subcommittee held the first in a series of 

hearings to outline the parameters of the problem of a lack of affordable housing and the complexity of the issues involved, as well 

as beginning discussions as to possible approaches to solutions. The 

witnesses in this hearing identified certain problems including, 

among others: inefficiencies in the HUD section 8 program that 

lead to low utilization rates, in various areas, of section 8 vouchers; 

income-targeting levels that are too low in the HOME and CDBG 

programs so that families that require assistance in high-cost areas 

are unassisted; burdensome and unnecessary local regulations that 

increase the cost of producing housing (such as ‘‘no-growth ordinances’’); and multifamily loan limits on FHA multifamily loans 

that are too low to be effective in certain markets. 

The second hearing, held on May 22, 2001, highlighted private 

activity and public/private partnerships that address affordable 

housing among various income sectors, as well as community development experts representing State and local governments specifically working with the Community Development Block Grant 

(CDBG) and HOME Investment Partnerships (HOME) programs. 

The third hearing, held on June 21, 2001, focused on the underutilization of section 8 vouchers, as well as the specific problems 

faced by the homeless and disabled populations in finding affordable housing. In certain communities, voucher under-utilization is 

a significant problem. Under-utilization of vouchers was attributed 

to various causes including the tight rental market, poor performance by PHAs, targeting of a large percentage of vouchers to very 

low-income individuals, low fair market rents and rent caps of 40 

percent of adjusted monthly income. While approximately 2.3 to 3 

million people are homeless some part of the year, there are 

150,000-200,000 people who are ‘‘chronically homeless.’’ These individuals are not only poor, but also suffer from some sort of chronic 

health problem such as mental illness, alcoholism, drug abuse or 

HIV/AIDS. Under the Clinton Administration, HUD’s strategy was 

to combine housing with services, known as ‘‘continuum of care,’’ where HUD provided social services in addition to housing. Secretary Martinez has signaled an interest in shifting responsibility 

79

for care of the homeless with mental health or substance abuse 

problems to HHS. 

The fourth hearing, held on July 17, 2001, focused on elderly 

housing programs and the difficult problems faced by the elderly in 

finding suitable affordable housing, as well as the coordination of 

housing and services. The Federal government operates several 

programs that provide housing for large numbers of elderly residents. For the past 40 years, the primary housing program for the 

elderly has been the Section 202 program. Since its inception, this 

program has produced approximately 350,000 housing units for occupancy by the elderly. Witnesses discussed the special needs of elderly residents and the integration of services with housing, as well 

as planning for aging-in-place. They also addressed the current 

supply of elderly housing, the prospects for maintaining the units 

within the various Federal programs, and suggestions for better operation of the existing programs. 

NATIONAL FLOOD INSURANCE PROGRAM

On Thursday, July 19, 2001, the Subcommittee held a hearing 

regarding the National Flood Insurance Program (NFIP) and repetitive flood losses. The hearing addressed the flood program proposal contained in the Administration’s FY 2002 budget proposal as 

well as two legislative proposals: H.R. 1428, the Two Floods and 

You are Out of the Taxpayer’s Pocket Act of 2001, and H.R. 1551, 

the Repetitive Flood Loss Reduction Act of 2001. The National 

Flood Insurance Program was created as part of the National Flood 

Insurance Act of 1968. Prior to that time, insurance companies generally did not offer coverage for flood disasters because of the high 

risks involved. The legislation as amended in 1973 and 1994 authorizes the Federal Insurance Administration (FIA) and Mitigation Directorate to administer the NFIP as part of FEMA. 

HUD PROPOSED BUDGET FOR FISCAL YEAR 2003

On February 13, 2002, the Subcommittee held a hearing on the 

proposed budget of the Department of Housing and Urban Development for fiscal year 2003 where the Honorable Mel Martinez, Secretary of Housing and Urban Development, was the only witness. 

The Administration proposed a total HUD budget of $31.497 billion, which is a $2.1 billion increase from the enacted FY 2002 

budget, representing close to a seven percent increase from $29.471 

billion. This increase would account for several new initiatives to 

expand home ownership, increase rental vouchers for non-elderly 

disabled, provide flexible financing for public housing modernization, redirect community development resources to the Colonias as 

well as make housing counseling a separate program for coordination and targeting. 

REVIEW OF THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM

On March 14, 2002, the Subcommittee held a hearing entitled 

‘‘Review of the Community Development Black Grant Program’’. 

The Community Development Block Grant (CDBG) program is the 

largest source of Federal community development assistance to 

State and local governments. Communities may undertake eligible 

80

housing, community development, economic development, and public services activities. Funded activities must principally benefit 

low-and moderate-income persons, or eliminate or prevent slums 

and blight, or address a need that poses a threat to the health or 

safety of a community. Several witnesses provided testimony regarding proposals for improving the program. Specifically, witnesses addressed H.R. 1191, introduced by Ms. Meeks, which aims 

to restore the original intent of the CDBG program, to ‘‘principally’’ benefit lower income people. 

REVIEW OF EMPOWERMENT ZONES AND RENEWAL COMMUNITIES

On April 10, 2002, the Subcommittee held a hearing entitled ‘‘Review of the Empowerment Zone/Enterprise Community program’’. The hearing examined the EZ/EC program generally and focused 

on the discrepancy in funding between the Round I, II, and III 

zones. Witnesses addressed the progress of EZs in their respective 

States. Hearing testimony also addressed H.R. 2637, the Round II 

EZ/EC Flexibility Act of 2001, which authorizes appropriations to 

the Secretaries of Housing and Urban Development and Agriculture for specified urban and rural empowerment zones and permits the use of those funds for zone or community strategic plan 

implementation. The legislation also provided for the use of Federal 

funds to pay matching fund requirements and prevents an empowerment zone or enterprise community from losing Federal funding because of reclassification as a renewal community. 

LEAKING UNDERGROUND STORAGE TANKS AND ITS AFFECT ON

HOUSING & NEIGHBORHOODS

On Thursday, September 12, 2002, the Subcommittee on Housing 

and Community Opportunity held a hearing entitled ‘‘The Erosion 

of Communities and Home Values by Leaking Underground Storage Tanks’’. To address a nationwide problem of leaking underground storage tanks (LUSTs), Congress established a prevention, 

detection, and corrective action program in 1984. In 1986, Congress 

subsequently created the Leaking Underground Storage Tank 

Trust Fund to help the Environmental Protection Agency (EPA) 

and states cover the costs of responding to petroleum LUSTs where 

owners fail to do so, and to oversee LUST cleanup activities. Witnesses testified about the public health and economic problems associated with leaking underground storage tanks and initiatives 

being undertaken to deal with them on the local, State and national levels. The witnesses also highlighted the impact that 

LUSTs have in the areas of environmental remediation, community 

and economic development, and safe housing. 

NON-PROFIT CAPACITY BUILDING AND TECHNICAL ASSISTANCE

On Tuesday, September 17, 2002, the Subcommittee held a hearing on technical assistance and capacity building programs to promote housing and economic development. Over the past fifteen 

years, the nation’s 3,600 community-based development corporations (CDCs) have built 550,000 homes and apartments, produced 

71 million square feet of commercial and industrial space, loaned 

$1.9 billion to 59,000 businesses, and created 247,000 private secVerDate Dec 13 2002 21:53 Jan 02, 2003 Jkt 019006 PO 00000 Frm 00080 Fmt 6601 Sfmt 6601 E:\HR\OC\HR798.XXX HR798
81

tor jobs. ‘‘Technical assistance’’ is any measure designed to build 

the capacity of a CDC to carry out initiatives in its community. 

Witnesses testified about local needs and on the need to ensure 

that community development groups are able to secure the resources needed to continue the important work of revitalizing communities. 

MOLD: A GROWING PROBLEM

On Thursday, July 18, 2002, the Subcommittees on Housing and 

Community Opportunity and on Oversight and Investigations held 

a joint hearing to examine the extent of problems in the insurance 

and housing industry over mold. Mold-related claims by homeowners rose to over a billion dollars last year in just one State, approximately a five-fold increase over the previous year’s nationwide 

total. Across the U.S., homeowners’ insurers paid out $1.18 in 

losses and expenses for every $1 earned in premiums. Members of 

the scientific community testified on the current understanding of 

mold issues, and discussed the literature review by the Centers for 

Disease Control (CDC) now underway and due out this spring. 

Other witnesses discussed the sudden spike in mold litigation and 

remediation claims, and how these lawsuits are affecting the home 

building industry, unions, small businesses, and the insurance industry. In particular, the witnesses talked about the lack of scientific standards for measuring mold and determining the extent 

of any mold dangers, and the need for better guidance or proactive 

statements by Federal agencies. 

HEARINGS HELD

Financial Health of the Federal Housing Administration’s SingleFamily Mutual Mortgage Insurance Fund.—Hearing entitled ‘‘Financial Health of the Federal Housing Administration’s SingleFamily Mutual Mortgage Insurance Fund.’’ March 20, 2001. 

PRINTED, serial no. 107-6. 

Proposed Budget of the Department of Housing and Urban Development for Fiscal Year 2002.—Hearing on the proposed budget of 

the Department of Housing and Urban Development for fiscal year 

2002. April 26, 2001. PRINTED, serial no. 107-11. 

Housing Affordability Issues.—Hearing on housing affordability 

issues. May 3, 22, June 21, and July 17, 2001. PRINTED, serial no. 

107-14. 

The National Flood Insurance Program and Repetitive Loss Properties.—Hearing on the National Flood Insurance Program and repetitive loss properties. July 19, 2001. PRINTED, serial no. 107-36. 

Proposed Budget of the Department of Housing and Urban Development for Fiscal Year 2003.—Hearing on the proposed budget of 

the Department of Housing and Urban Development for fiscal year 

2003. February 13, 2002. PRINTED, serial no. 107-54. 

Brownfields Redevelopment Enhancement Act.—Legislative hearing on H.R. 2941, the Brownfields Redevelopment Enhancement 

Act. March 6, 2002. PRINTED, serial no. 107-59. 

Review of the Community Development Block Grant Program.—

Hearing entitled ‘‘Review of the Community Development Block 

Grant Program.’’ March 14, 2002. PRINTED, serial no. 107-61. 

82

Housing Affordability for America Act.—Legislative hearing on 

H.R. 3995, the Housing Affordability for America Act of 2002. April 

10, 23, and 24, 2002. PRINTED, serial no. 107-64. 

Review of the Current Status of Empowerment Zones and Renewal Communities.—Hearing entitled ‘‘Review of the Current Status of Empowerment Zones and Renewal Communities.’’ April 10, 

2002. PRINTED, serial no. 107-65. 

Fighting Discrimination against the Disabled and Minorities 

through Fair Housing Enforcement.—Joint hearing with the Subcommittee on Oversight and Investigations entitled ‘‘Fighting Discrimination against the Disabled and Minorities through Fair 

Housing Enforcement.’’ June 25, 2002. PRINTED, serial no. 107-73. 

Mold: A Growing Problem.—Joint hearing with the Subcommittee on Oversight and Investigations entitled ‘‘Mold: A Growing Problem.’’ July 18, 2002. PRINTED, serial no. 107-77. 

Erosion of Communities and Home Values by Leaking Underground Storage Tanks.—Hearing entitled ‘‘Erosion of Communities 

and Home Values by Leaking Underground Storage Tanks.’’ September 12, 2002. Serial no. 107-81. 

Technical Assistance and Capacity Building Programs to Promote 

Housing and Economic Development—Hearing on technical assistance and capacity building programs to promote housing and economic development. September 17, 2002. Serial no. 107-82. 

(83)

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

SUBCOMMITTEE ON INTERNATIONAL MONETARY POLICY 

AND TRADE

(Ratio: 14-12)

DOUG BEREUTER, Nebraska, Chairman 

DOUG OSE, California 

Vice Chairman

MARGE ROUKEMA, New Jersey 

RICHARD H. BAKER, Louisiana 

MICHAEL N. CASTLE, Deleware 

JIM RYUN, Kansas 

DONALD A. MANZULLO, Illinois 

JUDY BIGGERT, Illinois 

MARK GREEN, Wisconsin 

PATRICK J. TOOMEY, Pennsylvania 

CHRISTOPHER SHAYS, Connecticut 

GARY G. MILLER, California 

SHELLEY MOORE CAPITO, West Virginia 

MIKE FERGUSON, New Jersey 

MICHAEL G. OXLEY, Ohio 

Ex Officio

BERNARD SANDERS, Vermont*

MAXINE WATERS, California 

BARNEY FRANK, Massachusetts 

MELVIN L. WATT, North Carolina 

JULIA CARSON, Indiana 

BARBARA LEE, California 

PAUL E. KANJORSKI, Pennsylvania 

BRAD SHERMAN, California 

JANICE D. SCHAKOWSKY, Illinois 

CAROLYN B. MALONEY, New York 

LUIS V. GUTIERREZ, Illinois 

KEN BENTSEN, Texas 

JOHN J. LAFALCE, New York 

Ex Officio

LEGISLATIVE ACTIVITIES

EXPORT-IMPORT BANK REAUTHORIZATION ACT

Public Law 107-189 (H.R. 2871; S. 1372) 

To reauthorize the Export-Import Bank of the United States, and 

for other purposes. 

Summary 

The Export-Import Bank Reauthorization Act of 2002 extends the 

charter of the U.S. Export-Import Bank for 4 years and creates offices on Small Business Exporters and on Africa within the Bank. 

The legislation also improves the operation of the Tied Aid Credit 

Program, increases the value of transactions that the Bank can 

hold in its portfolio at any time, and raises the percentage of small 

business transactions the Bank must pursue. This measure further 

mandates that the Bank take into consideration U.S. trade laws, 

corrupt practices of a recipient company and a country’s efforts to 

combat terrorism when considering a transaction. 

Legislative History 

H.R. 2871 was introduced in the House by Mr. Bereuter on September 10, 2001 and referred to the Committee on Financial Services. The bill was referred to the Subcommittee on International 

Monetary Policy and Trade on September 14, 2002. 

On September 21, 2001, the Subcommittee on International Monetary Policy and Trade met in open session and approved H.R. 

84

2871, as amended, for full Committee consideration by a voice vote. 

On October 31, 2001, the Committee met in open session and ordered H.R. 2871 reported to the House with a favorable recommendation, with an amendment, by a voice vote. The Committee 

on Financial Services reported H.R. 2871 to the House on November 15, 2001 (H. Rept. 107-292). 

On August 3, 2001, the Senate Committee on Banking, Housing, 

and Urban Affairs reported an original measure, S. 1372, the Export Import Bank Reauthorization Act of 2001, to the Senate (S. 

Rept. 107-52). On March 14, 2002, the Senate laid S. 1372 before 

the Senate and passed the bill with an amendment by unanimous 

consent. The bill was received in the House on March 18, 2002 and 

held at the desk. 

On April 30, 2002, the Committee on Rules reported a modifiedclosed rule providing for the consideration of H.R. 2871 (H.Res. 

402). On May 1, 2002, H. Res. 402 was agreed to by a voice vote. 

The House considered and passed H.R. 2871 by a voice vote. Pursuant to the provisions of H.Res. 402, H.R. 2871 was laid upon the 

table, and the House amended S. 1372 with the text of H.R. 2871 

and requested a conference. The Speaker appointed conferees from 

the Committee on Financial Services, and from the Committee on 

Government Reform for consideration of section 7 of the Senate bill 

and modifications committed to conference. 

On May 9, the Senate disagreed from the House amendment, 

agreed to the conference requested by the House, and appointed 

conferees. On May 21, the conference met (the Senate chairing), 

and agreed to the conference report to accompany S. 1372. On May 

24, 2002, the conference report to accompany S.1372 was filed in 

the House (H. Rept. 107-487). 

On June 4, 2002, the Committee on Rules reported a rule providing for the consideration of the conference report to accompany 

S. 1372 (H. Res. 433). On June 5, 2002, the House considered and 

passed H. Res. 433 by a voice vote. On June 5, 2002, the House 

agreed to the conference report to accompany S. 1372, by a record 

vote of 344 yeas and 78 nays. 

On June 6, 2002, the Senate approved the conference report to 

accompany S.1372 by unanimous consent, clearing the bill for the 

White House. The bill was presented to the President on June 11, 

2002, and signed into law on June 14, 2002, becoming public law 

number 107-189. 

EXPORT-IMPORT BANK EXTENSION

Public Law 107-156 (H.R. 3987; S. 2019) 

To extend the authority of the Export-Import Bank through April 

30, 2002. 

Summary 

The bill extended the authority of the Export-Import Bank 

through April 30, 2002. 

Legislative History 

H.R. 3987 was introduced on March 18, 2002, by Mr. Bereuter 

and referred to the Committee on Financial Services. The bill was 

85

referred to the Subcommittee on International Monetary Policy and 

Trade on April 15, 2002. 

The Senate’s companion legislation, S. 2019, was introduced by 

Mr. Sarbanes on March 14, 2002 and passed by unanimous consent. 

On March 18, 2002, the bill was received in the House and referred to the Committee on Financial Services. On March 19, 2002, 

S. 2019 was considered under suspension of the rules and passed 

by a voice vote, clearing the bill for the White House. On March 

20, 2002, the bill was presented to the President and signed into 

law on March 31, 2002, becoming public law 107-156. 

ZIMBABWE DEMOCRACY AND ECONOMIC RECOVERY ACT

Public Law 107-99 (S. 494) 

To provide for a transition to democracy and to promote economic 

recovery in Zimbabwe. 

Summary 

S. 494, the Zimbabwe Democracy and Economic Recovery Act of 

2001, establishes that it is U.S. policy to support the people of 

Zimbabwe in their current struggles to effect peaceful, democratic 

change and achieve economic growth. It supports those goals by requiring the Secretary of the Treasury to review the feasibility of bilateral debt relief upon Presidential certification that certain conditions relating to democratic elections and the rule of law have been 

fulfilled. It expresses the sense of the Congress that if such a certification is made, the U.S. should propose a review of the feasibility of multilateral debt relief. Until such time as a Presidential 

certification is made, it instructs U.S. executive directors to the relevant international financial institutions to oppose financial assistance to Zimbabwe, except for basic human needs. The bill also authorizes bilateral assistance for land reform and democratic governance and expresses the sense of Congress that the President should 

consult with foreign governments on possible action against individuals responsible for the breakdown of the rule of law in 

Zimbabwe and the identification of overseas assets of those individuals. 

Legislative History 

S. 494 was introduced by Senator Frist on March 8, 2001. On 

July 12, 2001, the bill, as amended by a substitute, was ordered reported by the Committee on Foreign Relations without a written 

report. The legislation passed the Senate by unanimous consent on 

August 1, 2001. 

S. 494, as amended, was received in the House on August 2, 

2001, at which time it was referred to the Committee on Financial 

Services, and additionally to the Committee on International Relations. 

On August 24, 2001, the bill was referred to the House Financial 

Services Committee’s Subcommittee on International Monetary Policy and Trade. 

On November 28, 2001, the House Committee on International 

Relations met in open session and ordered S. 494, as amended, reVerDate Dec 13 2002 21:53 Jan 02, 2003 Jkt 019006 PO 00000 Frm 00085 Fmt 6601 Sfmt 6601 E:\HR\OC\HR798.XXX HR798
86

ported. During the markup, amendments were adopted that addressed those portions of the bill which fell within the jurisdiction 

of the Committee on Financial Services and were acceptable to the 

Committee on Financial Services. The bill, as amended, was reported on December 4, 2001 (H. Rept. 107-312, Part I). 

On December 4, the Committee on Financial Services was discharged from the further consideration of S. 494 pursuant to an exchange of correspondence between the Committees. 

On December 4, 2001, the bill was considered under suspension 

of the rules. On December 5, the House passed S. 494 by a record 

vote of 396 yeas and 11 nays. 

On December 5, the bill was received in the Senate and on December 11, the Senate agreed to the House amendment, clearing 

the bill for the White House. S. 494 was presented to the President 

on On December 14 and the bill was signed into law by the President, becoming public law 107-99. 

SUDAN PEACE ACT

Public Law 107-245 (H.R. 5531; H.R. 931; H.R. 2052; S. 180) 

To facilitate famine relief efforts and a comprehensive solution to 

the war in Sudan. 

Summary 

The Sudan Peace Act states that Congress condemns violations 

of human rights on all sides of the conflict in Sudan (including actions by the Sudanese Government) and recognizes the need for 

continued leadership by the United States in that country. The bill 

authorizes the President to provide increased assistance to the 

areas of Sudan that are not controlled by the Government of Sudan 

to prepare the population for peace and democratic governance. To 

this end, appropriations are authorized for each of the fiscal years 

2003, 2004, and 2005. The bill also expresses the sense of the Congress that the United Nations should help facilitate peace and recovery in Sudan and mandates annual reports by the Secretary of 

State on oil exploitation by the Government of Sudan as well as the 

status of humanitarian relief in Sudan. 

Legislative History 

H.R. 931, the Sudan Peace Act, was introduced in the House on 

March 7, 2001, by Mr. Tancredo and 23 original cosponsors and referred to the Committee on International Relations. On May 16, 

2001, the Subcommittee on Africa met in open session and approved H.R. 931 for full Committee consideration, as amended, by 

a voice vote. 

H.R. 2052, legislation similar to H.R. 931 as amended, was introduced in the House on June 5, 2001 by Mr. Tancredo and 21 original cosponsors and referred to the Committee on International Relations, and additionally to the Committee on Financial Services. 

On June 6, 2001, the Committee on International Relations met 

in open session and ordered H.R. 2052 reported to the House by a 

voice vote. The Committee on International Relations reported the 

bill to the House on June 8, 2001 (H. Rept. 107-92, Part I) and the 

Committee on Financial Services was discharged from the further 

87

consideration of the bill pursuant to an exchange of correspondence 

between the committees of jurisdiction. 

On June 12, 2001, the Committee on Rules reported an open rule 

providing for the consideration of H.R. 2052 (H. Res. 162). On June 

13, 2001, H. Res. 162 passed the House by a voice vote. The House 

considered H.R. 2052 and passed the bill by a record vote of 422 

yeas and 2 nays on June 13, 2001. 

The bill was received in the Senate on June 14, 2001 and referred to the Committee on Foreign Relations on June 21, 2001. 

S. 180, the Sudan Peace Act, was introduced in the Senate on 

January 25, 2001 and referred to the Senate Committee on Foreign 

Relations. On July 12, the Senate Committee on Foreign Relations 

met in open session and ordered the bill reported favorably with an 

amendment. S. 180 was reported to the Senate without written report on July 16, 2001. On July 19, 2001, the Senate passed the bill 

with an amendment by unanimous consent. 

On July 20, 2001, S. 180 was received in the House and referred 

to the House Committee on International Relations. On November 

15, 2001, the Committee on International Relations was discharged 

from the further consideration of the bill, and the House passed S. 

180 with an amendment consisting of the text of H.R. 2052 as 

passed by the House by unanimous consent. The House insisted on 

its amendment, and requested a conference with the Senate on S. 

180 by unanimous consent. The Speaker appointed conferees from 

the Committee on International Relations, and from the Committee 

on Financial Services for consideration of sections 8 and 9 of the 

House amendment. 

H.R. 5531 was introduced in the House on October 2, 2002 by 

Mr. Tancredo and four original cosponsors. The bill was referred to 

the Committee on International Relations and to the Committee on 

Financial Services. 

On October 7, 2002, the House considered the bill under suspension of the rules and passed H.R. 5531 by a record vote of 359 yeas 

and 8 nays. The bill was received in the Senate on October 8, 2002. 

On October 9, 2002, the bill was approved in the Senate without 

amendment by unanimous consent, clearing the bill for the White 

House. The bill was presented to the President on October 11, 2002 

and signed into law on October 21, becoming public law 107-245. 

GLOBAL ACCESS TO HIV/AIDS PREVENTION, AWARENESS, EDUCATION

AND TREATMENT ACT OF 2001

(H.R. 2069; H.R. 2209; S. 2525) 

To amend the Foreign Assistance Act of 1961 and the Global 

AIDS and Tuberculosis Relief Act of 2000 to authorize assistance 

to prevent, treat, and monitor HIV/AIDS in sub-Saharan Africa 

and other developing countries. 

Summary 

H.R. 2069, the Global Access to HIV/AIDS Prevention, Awareness, Education and Treatment Act of 2001, as passed by the 

House, authorizes bilateral and multilateral assistance to combat 

the HIV/AIDS pandemic in countries in sub-Saharan Africa and 

other developing countries, and reinforces U.S. policy input into the 

88

negotiation of an international HIV/AIDS trust fund and the role 

of the World Bank as fiduciary for the fund. 

H.R. 2209, the World Bank AIDS Trust Fund Amendments Act 

of 2001, amends the Global AIDS and Tuberculosis Relief Act of 

2000 (Public Law 106-264) to increase the authorization for the 

AIDS trust fund, expand the focus of the fund to include malaria, 

as well as make clear that tuberculosis is also covered by the legislation. The bill also extends the deadline for a General Accounting 

Office (GAO) report on the effectiveness of the fund. The introduction of the bill followed Subcommittee hearings on May 15, 2001 

and June 12, 2001, at which witnesses from the Treasury Department, UNAIDS, and the private sector testified regarding the development of an international HIV/AIDS trust fund. 

Legislative History 

H.R. 2069 was introduced by Mr. Hyde and referred to the Committee on International Relations. On June 27, 2001, the Committee on International Relations, meeting in open session, ordered 

H.R. 2069 reported, as amended. The bill was reported to the 

House on July 12, 2001 (H. Rept. 107-137). 

On June 18, 2001, Mr. Bereuter introduced H.R. 2209, the World 

Bank AIDS Trust Fund Amendments Act of 2001. The bill was referred to the Committee on Financial Services on June 18, 2001, 

and on June 25, 2001 was referred to the Subcommittee on International Monetary Policy and Trade. 

On December 11, 2001, H.R. 2069, with amendments, was considered under suspension of the rules. These amendments included 

section 4 of H.R. 2209 as well as additional references to the Global 

AIDS and Tuberculosis Relief Act (Public Law 106-264) and the 

role of the World Bank in the AIDS trust fund. H.R. 2069 was 

passed by voice vote on December 11, 2001. 

Thereafter, the Senate passed similar legislation, S. 2525, the 

United States Leadership Against HIV/AIDS, Tuberculosis, and 

Malaria Act of 2002, on July 12, 2002. Title III of the Senate bill 

expands the Highly Indebted Poor Country (HIPC) program by establishing an additional revenue-based criterion for debt relief. The 

House version of H.R. 2069 does not address multilateral debt relief. 

The Senate amended H.R. 2069 with the text of S. 2525 as 

amended on July 12, 2002. The bill was received in the House on 

July 15, 2002. No further action was taken on this measure in the 

107th Congress. 

REGIONAL MULTILATERAL DEVELOPMENT BANK AUTHORIZATIONS

(H.R. 2604) 

To authorize the United States to participate in and contribute 

to the seventh replenishment of the resources of the Asian Development Fund and the fifth replenishment of the resources of the 

International Fund for Agricultural Development, and to set forth 

additional policies of the United States towards the African Development Bank, the African Development Fund, the Asian Development Bank, the Inter-American Development Bank, and the European Bank for Reconstruction and Development. 

89

Summary 

H.R. 2604 authorizes U.S. contributions of $412 million to the 

Asian Development Fund (AsDF) and $30 million to the International Fund for Agricultural Development (IFAD) for the replenishment of these two institutions. Additionally, this measure directs the U.S. Executive Directors of the regional multilateral development banks (Asian Development Bank/Fund; the African Development Bank/Fund; the Inter-American Development Bank; the 

European Bank for Reconstruction and Development); and IFAD to 

use their voice and votes to address issues relating to transparency, 

user fees, HIV/AIDS, projects that include dams, international terrorism, privatization of government-held industries, opposition to 

reducing minimum wages below internationally recognized poverty 

levels, and arsenic in drinking water in South Asia. 

Legislative History 

H.R. 2604 was introduced by Mr. Bereuter and 6 original cosponsors on July 24, 2001, and was referred to the Committee on Financial Services. On August 8, 2001, the bill was referred to the 

Subcommittee on International Monetary Policy and Trade. 

On September 21, 2001, the Subcommittee on International Monetary Policy and Trade met in open session and approved H.R. 

2604 for full Committee consideration, as amended, by a voice vote. 

On October 31, 2001, the Committee met in open session and ordered H.R. 2604 reported to the House with a favorable recommendation, with an amendment, by a voice vote. 

The Committee on Financial Services reported H.R. 2604 to the 

House on November 15, 2001 (H. Rept. 107-291). On May 1, 2002, 

the House considered H.R. 2604 under suspension of the rules and 

passed the bill by a voice vote. On May 2, 2002, H.R. 2604 was received in the Senate and referred to the Committee on Foreign Relations. No further action was taken on H.R. 2604 in the 107th 

Congress. 

OVERSIGHT ACTIVITIES

STATE OF THE INTERNATIONAL FINANCIAL SYSTEM AND IMF REFORM

On May 22, 2001 The Full Committee on Financial Services 

heard testimony from Treasury Secretary Paul O’Neill on the state 

of the international financial system and International Monetary 

Fund (IMF) reform. This hearing is required to occur annually by 

the FY 1999 Foreign Operations Appropriations legislation, which 

also granted an $18 billion increase in U.S. contributions to the 

IMF. Secretary O’Neill highlighted the need to carefully review the 

operations of the IMF and the multilateral development banks 

(MDBs). Specifically, Secretary O’Neill called for increased transparency in these institutions, clear and essential goals for the 

MDBs, a movement from loans to grants and a focus on resultsbased performance indicators. 

On February 28, 2002, the Full Committee on Financial Services 

held the second hearing of the 107th Congress on the state of the 

international financial system and IMF reform. The Committee 

again heard testimony from Secretary of the Treasury Paul O’Neill 

90

in which he called for the need to strengthen international cooperation to achieve economic growth and stability. Additionally, Secretary O’Neill outlined efforts to combat the financing of terrorist 

activities and to promote global free trade. Specifically, Secretary 

O’Neill discussed in detail the Administration’s proposal to shift 

some of the financial aid provided by the World Bank from loans 

to grants. 

WORLD BANK AND IMF ACTIVITIES IN AFRICA

On May 15, 2001, the Subcommittee on International Monetary 

Policy and Trade held an oversight hearing on the activities of the 

World Bank and the International Monetary Fund (IMF) in Africa. 

At the hearing witnesses from the General Accounting Office, a 

representative from the Carnegie Endowment for Peace, the Joint 

United Nations Program on HIV/AIDS, the staff for the World 

Health Organization’s Commission on Macroeconomics and Health, 

and a representative of a non-governmental organization provided 

testimony on the activities of the World Bank and the IMF in Africa. Concerns were raised relating to the HIV/AIDS pandemic and 

user fees attached to loans from the World Bank and the IMF. 

TRADE IN FINANCIAL SERVICES

On June 26, 2001, the Subcommittee on International Monetary 

Policy and Trade conducted a hearing on current issues and future 

developments in trade in financial services. Witnesses on behalf of 

the American Insurance Association, the Bankers’ Association for 

Trade and Finance, the Securities Industry Association, and the 

Center for Economic and Policy Research testified on the current 

state of trade in financial services and the outlook for expansion of 

this trade. Specifically, several members of the panel called for passage of Trade Promotion Authority, which many of the witnesses 

testified would strengthen the ability of U.S. negotiators to gain access to foreign markets for financial services. 

ARGENTINA’S ECONOMIC MELTDOWN

On February 6, 2002, the Subcommittee on International Monetary Policy and Trade held a hearing on the economic crisis facing 

Argentina. Undersecretary of the Treasury John Taylor testified, 

and outlined the economic dilemmas facing Argentina and the U.S. 

policy relating to this issue. Undersecretary Taylor stated that the 

Administration would not support additional funds for Argentina 

from the IMF until Argentina implements significant economic and 

institutional changes. 

On March 5, 2002, the Subcommittee held a second hearing on 

the economic crisis in Argentina. Witnesses on behalf of Carnegie 

Mellon University, Johns Hopkins University, the Institute for 

International Economics, and the Center for Economic Policy and 

Research testified before the Subcommittee, and outlined the 

causes and their proposed solutions to the dilemmas facing Argentina. Several witnesses called for a continued halt in financial aid 

until economic reforms are undertaken. 

91

CHANGES TO THE INTERNATIONAL DEVELOPMENT ASSOCIATION

The Subcommittee on International Monetary Policy and Trade 

held three hearings on issues related to the International Development Association (IDA). On May 2, 2002, the Subcommittee received testimony from the Director of International Affairs and 

Trade at the General Accounting Office (GAO). At this hearing, the 

GAO outlined proposals to move from loans to developing countries 

to grants to qualified countries. 

On July 19, 2002, the Subcommittee received testimony from 

representatives of the Bretton Woods Committee, Bread for the 

World, OXFAM America and the AFL-CIO on proposed changes to 

the IDA. Witnesses voiced support for a movement from loans to 

grants and called for additional debt relief through the HIPC Trust 

Fund. 

On July 25, 2002, the Subcommittee received testimony from Undersecretary of the Treasury John Taylor on the Administration’s 

authorization request for the IDA. Additionally, the Undersecretary 

discussed the authorization of the African Development Fund. 

THE EUROPEAN UNION’S FINANCIAL SERVICES ACTION PLAN AND

IMPLICATIONS FOR THE AMERICAN FINANCIAL SERVICES INDUSTRY

On May 22, 2002, the Full Committee on Financial Services conducted a hearing on The European Union’s Financial Services Action Plan (FSAP) and implications for the American financial services industry. In an effort to become the most competitive and dynamic knowledge-based economy in the world by 2010, the EU has 

embarked upon an ambitious plan to overhaul its financial services 

sector. Witnesses on behalf of the Federal Reserve Board, Treasury, 

the Securities and Exchange Commission, the Securities Industry 

Association and academia testified on the FSAP and its short- and 

long-term effects. According to many of the witnesses, the EU’s actions will generally have positive benefits for American financial 

services firms, and the U.S. government agencies represented at 

the hearing are working closely with their European counterparts. 

The Committee will continue to follow the FSAP as its provisions 

are implemented in the coming years. 

NORTH AMERICAN DEVELOPMENT BANK

The Subcommittee on International Monetary Policy and Trade 

conducted two hearings which addressed the North American Development Bank (NADBank). On May 2, 2002, the Subcommittee 

conducted a hearing where private sector witnesses testified on the 

need to reform the NADBank. At this hearing, the Subcommittee 

heard testimony from the following witnesses: a mayor and city 

manager of two communities along the Texas/Mexico border; the 

former chief executive officer of the NADBank; and a mortgage 

banker who uses the NADBank. Furthermore, on July 25, Undersecretary John Taylor of the Department of Treasury testified, 

among other things, on the Administration’s request to reform the 

NADBank. 

92

HEARINGS HELD

Reauthorization of the Export-Import Bank—Hearing on the activities of the Export-Import Bank and its reauthorization. Hearing 

held on May 2 and 8, 2001. PRINTED, serial number 107-13. 

U.S. Policy Towards the African Development Bank and the African Development Fund—Hearing examining U.S. policy in the African Development Bank and Fund. Hearing held on April 25, 2001. 

PRINTED, serial number 107-10. 

World Bank and IMF Activities in Africa—Oversight hearing on 

the activities of the World Bank and the IMF in Africa. Hearing 

held on May 15, 2001. PRINTED, serial number 107-15. 

FY 2002 Authorization Requests for International Financial Institutions, and Activities of the African Development Bank, the World 

Bank, and the IMF in Africa—Hearing on the Administration’s FY 

2002 authorization requests. PRINTED, serial Number 107-23. 

Trade in Financial Services—Current Issues and Future Developments—Hearing on U.S. trade in financial services. Hearing held 

on June 26, 2001. PRINTED, serial Number 107-30. 

Argentina’s Economic Meltdown: Causes and Remedies—Two 

hearings on the economic crisis facing Argentina featuring witnesses from the Treasury Department and private sector economists. February 6 and March 5, 2002. PRINTED, serial Number 

107-52. 

Proposed Changes to Both the World Bank—International Development Association and the North American Development Bank—

Hearing on Administration requests for the World Bank and North 

American Development Bank. PRINTED, serial Number 107-68. 

Expected Authorization Request on the U.S. Participation in the 

World Bank—International Development Association (IDA)—Hearing on the expected authorization requests for the IDA featuring 

witnesses from nongovernmental organizations. Hearing held on 

July 19, 2002. 

Expected Authorization Request on the U.S. Participation in the 

World Bank—International Development Association (IDA) and the 

African Development Fund—Hearing on authorization requests featuring John Taylor, Undersecretary of the Treasury. Hearing held 

on July 25, 2002. 

(93)

SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS

(Ratio: 11-9)

SUE KELLY, New York, Chair 

RON PAUL, Texas 

Vice Chairman

PETER T. KING, New York 

ROBERT W. NEY, Ohio 

CHRISTOPHER COX, California 

DAVE WELDON, Florida 

WALTER B. JONES, North Carolina 

JOHN B. SHADEGG, Arizona 

VITO FOSSELLA, New York 

ERIC CANTOR, Virginia 

PATRICK J. TIBERI, Ohio 

MICHAEL G. OXLEY, OH 

Ex Officio

LUIS V. GUTIERREZ, Illinois 

JAY INSLEE, Washington 

JANICE D. SCHAKOWSKY, Illinois 

DENNIS MOORE, Kansas 

STEPHANIE TUBBS JONES, Ohio 

MICHAEL E. CAPUANO, Massachusetts 

RONNIE SHOWS, Mississippi 

JOSEPH CROWLEY, New York 

WILLIAM LACY CLAY, Missouri 

JOHN J. LAFALCE, New York 

Ex Officio

OVERSIGHT ACTIVITIES

EFFORTS BY FINANCIAL REGULATORS TO FIGHT FRAUD AND PROTECT

CONSUMERS

On March 6, 2001, the Subcommittee on Oversight and Investigations and the Subcommittee on Financial Institutions and Consumer Credit held a joint hearing to examine ways in which financial regulators of the insurance, banking, and securities sectors are 

working together to protect consumers, as is required under the 

Gramm-Leach-Bliley Act. The need to do so was highlighted by 

Martin Frankel, who migrated to the insurance industry after 

being barred from the securities industry. Frankel stole over $200 

million from insurance companies before being captured. Witnesses 

included senior officials of the Treasury Department, FBI, SEC, insurance and business associations, and the General Accounting Office. 

HOUSING AUTHORITY OF NEW ORLEANS

On June 4, 2001, the Subcommittee held a field hearing in New 

Orleans on the report issued by the HUD Inspector General on the 

lack of decent, safe, and sanitary housing provided by the Housing 

Authority of New Orleans (HANO). The report disclosed a lack of 

progress in providing quality housing since HUD and the City of 

New Orleans signed a 1996 Cooperative Endeavor Agreement. The 

report stated that after spending over $139 million of the $243 million it received just for modernization activities in the previous 

eight years, HANO had not revitalized even one of its conventional 

housing sites. HUD had spent, in total, over $800 million on HANO 

since 1992, without an improvement in housing for residents. The 

hearing also examined ways in which a judicial receivership could 

result in long-term improvements to the housing managed by 

94

HANO. Witnesses included the Mayor of New Orleans, the Regional Inspector General from HUD, a senior HUD official, and 

long-time residents of HANO. Committee and other New Orleansarea Members continued to discuss HANO’s future with the HUD 

Secretary throughout the year. 

IMPLEMENTATION OF EFT REQUIREMENTS OF THE DEBT COLLECTION

IMPROVEMENT ACT OF 1996 AND THE USE OF ETAS

On June 20, 2001, the Subcommittee held a hearing to examine 

the status of the Electronic Funds Transfer requirements of the 

Debt Collection Improvement Act of 1996, known as the EFT 99 

program, and to discuss the use Electronic Transfer Accounts, or 

ETAs. The purpose of the hearing was to determine the progress 

made towards a checkless system for paying Federal salaries, pensions, vendor payments, and Social Security benefits, whether the 

change has reduced costs, and whether low- and middle-income 

Federal payment recipients who do not have bank accounts are receiving their funds electronically through ETAs. Witnesses included 

the Treasury Department Assistant Secretary with responsibility 

over the program, the CEO of Banco Popular, which is heavily involved in the ETA program, and the Managing Attorney of the National Consumer Law Center. At the hearing, Chairwoman of the 

Subcommittee and its ranking minority member released a letter 

to GAO requesting a study of the EFT and ETA programs and recommendations for improvements. 

THE SEC’S ROLE IN CAPITAL FORMATION

On June 26, 2001, the Subcommittee held a hearing to examine 

the SEC’s role in capital formation. Capital formation has been an 

implicit responsibility of the SEC since it was first created. In 

1996, securities laws were amended by the National Securities 

Markets Improvement Act to explicitly provide that capital formation is an important responsibility of the SEC. In that act, the SEC 

was given general exemptive authority to allow them to waive specific requirements on a case-by-case basis, in order to give the SEC 

additional flexibility in assisting businesses access to the capital 

markets. The hearing reviewed the progress the SEC has made in 

furtherance of its statutory responsibilities to assist capital formation and explored suggestions as to how the SEC’s could make 

greater progress. Witnesses included representatives of venture 

capital firms and the Vice Chairman of the American Conservative 

Union. 

FINANCIAL ASPECTS OF INTERNET GAMBLING

On July 12, 2001, the Subcommittee held a hearing to examine 

whether to take legislative action against internet gambling. In a 

few short years, the Internet gambling industry has exploded. According to an Internet gambling committee of the National Association of Attorneys General, there were less than 25 such sites on the 

Web in the mid-1990s. Today, one of the Nation’s leading securities 

firms estimates that there are between 1,200 and 1,400 e-gaming 

Web sites. In 2000, the House Banking Committee approved legislation that would have tackled prohibited gambling operations from 

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accepting credit cards, checks, or other bank instruments in connection with illegal Internet gambling. The 106th Congress adjourned without enacting that or any other legislation. The hearing 

examined the changes in the industry since the previous Congress 

and the possible impacts of legislation. Witnesses included officials 

from gaming associations, law enforcement agencies, State lotteries, the NCAA, and addiction treatment organizations. 

OVER-REGULATION OF AUTOMOBILE INSURANCE

On August 1, 2001, the Subcommittee held a hearing on the effects of State over-regulation of auto insurance on consumer choice. 

In New Jersey, over one-half of the 15 largest auto insurers in the 

country have either left or will leave in the near future, claiming 

excessive rate regulation as the reason. Over one million people in 

New Jersey will lose their automobile insurance, with a dwindling 

supply of alternative companies willing to do business in the State. 

In Massachusetts, two-thirds of those same 15 largest insurers either write little or no business or refuse to do business at all in 

the State, for the same reason as in New Jersey. Conversely, in Illinois and South Carolina, there are numerous auto insurance companies providing consumers with real choices at competitive prices 

without subsidizing risky drivers with bad records. In South Carolina, the number of insurers accessible to consumers has doubled 

since the State eliminated artificial price controls. Witnesses included representatives from three major insurance associations, a 

Vice President of the Brookings Institution, and the Director of Insurance from the Consumer Federation of America. 

PROBLEMS IN THE HUD SECTION 203(K) HOUSING PROGRAM

On September 10, 2001, the Subcommittee held a field hearing 

in Harlem, New York, on the fraud and severe management problems in the Section 203(k) housing program, under which HUD 

guarantees loans made to purchase and renovate single-family 

housing. Reports by the GAO and HUD OIG, and news organizations disclosed massive fraud in Harlem, Brooklyn, and the Bronx 

by speculators who took advantage of poor HUD oversight to bilk 

HUD and individual homebuyers out of tens of millions of dollars 

from 1995-2000. The HD OIG has obtained convictions against several dozen people involved in the schemes. The hearing examined 

the extent of the fraud and the impacts on individual homebuyers 

and community development. Witnesses included the HUD Assistant Secretary with responsibility for the program, senior officials 

from GAO and the HUD OIG, local development leaders, the Commissioner of the New York City housing authority, and victims. 

The HUD Assistant Secretary announced HUD’s intention to work 

with the New York City housing authority towards a solution to 

the problems. Late in December, 2001, HUD Secretary Martinez 

and New York City Mayor Giuliani announced a program under 

which HUD would contribute significantly to the completion of 

work on hundreds of units. 

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IDENTITY THEFT OF THE DECEASED

On November 8, 2001, the Subcommittee held a joint hearing 

with the Subcommittee on Social Security of the Committee on 

Ways and Means on preventing identity theft of the deceased by 

terrorists and criminals. The purpose of the hearing was to seek 

ways to ensure that the Death Master File (DMF) is transmitted 

more quickly from the Social Security Administration to the financial services industry, in order to protect families of the deceased 

from theft and financial fraud. The issue arose when a man detained in Great Britain, and suspected of training four of the terrorists who hijacked the airliners on September 11, was found to 

have used the Social Security number of a New Jersey woman who 

died in 1991. Witnesses included senior officials from the Social Security Administration and Commerce Department, GAO analysts 

who testified on the transmission and use of the DMF, attorneys 

representing the financial services industry, a special counsel with 

expertise in identity theft, and privacy advocates. 

The Chairwoman of the Subcommittee, Ms. Kelly, secured the 

commitments of the parties towards a more rapid distribution of 

the DMF. Thereafter, the Social Security Administration and Commerce Department announced that beginning in February 2002, 

they would jointly reduce the amount of time needed to release the 

DMF from over 35 days to approximately 10 days. 

IMPACTS OF ENRON COLLAPSE ON INVESTORS AND FINANCIAL

MARKETS

On December 12, 2001, the Subcommittee held a joint hearing 

with the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises on the impacts of the collapse of 

Enron, Inc., the biggest bankruptcy in American history. The hearing examined the causes of the collapse as known at that time, including the use of special purpose entities and other accounting 

techniques by Enron that were reviewed and ratified by Arthur Andersen, Enron’s auditor. The hearing also touched upon the SEC’s 

oversight of the financial statements certified by accountants; the 

accounting rules that permitted Enron to not report billions of dollars in debt; and the actions of securities analysts following Enron, 

who failed to warn investors of its weakness. Witnesses included 

the Chief Accountant of the SEC, the Chief Executive Officer of Arthur Andersen, the Secretary-Treasurer of the AFL-CIO, and an 

expert on securities analysts. 

THE PATRIOT ACT OVERSIGHT: INVESTIGATING PATTERNS OF

TERRORIST FINANCING

On February 12, 2002, the Subcommittee held a hearing to examine the initial progress under title III of the USA PATRIOT Act 

(Public Law 107-56), signed by President Bush on October 26, 

2001. The Act provided new tools to law enforcement to identify the 

patterns of financing used by terrorists and hence stop them before 

any future acts could occur. The Act also contained a number of 

provisions that seek to combat underground ‘‘Hawala’’ networks, 

and the hearing examined the investigative efforts have brought us 

closer to closing illegal Hawalas. Witnesses from the Treasury and 

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Justice Department, the FBI, and private industry discussed the 

multilateral efforts to gather, disseminate, and use information 

about monetary flows in new ways to detect and prevent terrorism. 

Recent cases against suspected terrorist financiers were highlighted, and the witnesses discussed the balancing between investigatory requirements and the protection of civil liberties. 

RETIREMENT PROTECTIONS: FIGHTING FRAUD IN THE SALE OF DEATH

On February 26, 2002, the Subcommittee held a hearing on the 

use and potential abuse of viatical settlements. Viatical settlements 

involve companies paying cash to purchase life insurance policies 

from terminally ill people at a fraction of the policy value and then 

reselling the policies to investors. The terminally ill individual gets 

immediate up-front cash, and the investors can get a significant return when the individual dies. Additional commissions go to the 

broker who negotiates the deal, the agent who finds the investors, 

the evaluators who review the individual’s medical files, and the 

settlement company and escrow service. The hearing witnesses 

from the industry and State regulators talked about the importance of fighting viatical fraud and educating consumers about 

these investments, and in particular, the need to promote better 

consumer education for retirement planning by the elderly. The 

witnesses also discussed the critical need for coordination among 

Federal and State agencies, and the ongoing desirability of expanded coordination and access to criminal and disciplinary databases, such as through the Financial Services Antifraud Network 

Act of 2001. 

HOW MUCH ARE AMERICANS AT RISK UNTIL CONGRESS PASSES

TERRORISM INSURANCE PROTECTION?

On February 27, 2002, the Subcommittee held the first Congressional hearing to examine the implications of a lack of terrorism insurance. In the five months since September 11, the risk for terrorism-related losses had been shifted from reinsurers to primary 

insurers and then to the insured. Reinsurers and insurers had 

begun shedding their exposure to terrorism risk as insurance contracts came up for renewal, leaving policy holders increasingly exposed to losses from a terrorist attack. Numerous officials for the 

insurance and construction industries, the Treasury Department, 

State regulators, the GAO, and other interested parties testified or 

submitted statements for the record on the negative impacts that 

the lack of insurance was having on major construction projects 

and employment. 

THE EFFECTS OF THE GLOBAL CROSSING BANKRUPTCY ON INVESTORS, 

MARKETS, AND EMPLOYEES

On March 21, 2002, the Subcommittee held the first Congressional hearing on the impacts and causes of the bankruptcy of 

Global Crossing, Ltd., then the fourth biggest bankruptcy in the 

history of the United States. The hearing examined the impacts 

and propriety of the accounting model for the recognition of income 

from trades, or ‘‘swaps,’’ of high-speed fiber-optic telecom cable capacity. Each telecom company reports expected income from such 

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swaps, or ‘‘pro forma’’ results, differently, since such future earnings need not be reported for in accordance with generally accepted 

accounting principles. Witnesses included the Chief Executive Officer and the Chief Financial Officer of Global Crossing; senior executives from Qwest Communications International, WorldCom, 

Inc., and Cable & Wireless Global; a representative from the SEC; 

and two telecom analysts. After the hearing, the Committee continued to investigate the bankruptcy, the sale of the company to foreign interests, and the company’s ties to stock analysts and investment banking firms (see below). In August, Qwest officials clarified 

and corrected its testimony after investigations revealed discrepancies in its accounting for swaps, resulting in sizable restatements 

in earnings for prior periods. 

ONE BROKER GONE BAD: PUNISHING THE CRIMINAL, MAKING VICTIMS

WHOLE

On May 23, 2002, the Subcommittee held the first Congressional 

hearing to examine the activities of indicted former Cleveland 

stockbroker, Frank Gruttadauria. Gruttadauria was the manager 

of the Cleveland branch of Lehman Brothers, and at the time of the 

hearing was alleged to have stood accused of having defrauded his 

clients of as much as $300 million over a 15-year period. The goals 

of the hearing were to determine the extent of the losses suffered 

by his clients, and whether control systems in the industry and the 

SEC failed to detect and thwart his activity. Committee reviews of 

SEC documents prior to the hearing revealed that the SEC missed 

1993 evidence of ‘‘account-churning’’ that could have prevented 

years of fraud and millions of dollars in victim losses. The Speaker 

of the House introduced his constituent, who suffered major losses 

due to Gruttadauria’s activities. The SEC and witnesses from Lehman Brothers, SG Cowen and CO., the NYSE, the NASD, and 

NASAA pledged their cooperation in strengthening compliance departments and placing more emphasis on tougher enforcement. The 

hearings made it clear that appropriate efforts need to be undertaken by the SEC and the Self-Regulatory Agencies (SROs) to ensure improvements in information sharing and revisions in relevant rules, regulations and guidelines against nefarious activities 

by broker/dealers. The NYSE and NASD thereafter proposed new 

rules for the SEC’s approval. On November 14, 2002, Gruttadauria 

was sentenced to seven years in prison for his illegal acts. 

FIGHTING DISCRIMINATION AGAINST THE DISABLED AND MINORITIES

THROUGH FAIR HOUSING ENFORCEMENT

On June 25, 2002, the Subcommittees on Housing and Community Opportunity and on Oversight and Investigations held a joint 

hearing on the extent of discrimination against the disabled and 

minorities and HUD’s efforts to fight such discrimination. Past 

leadership at HUD failed to process fair housing cases in a timely 

manner. At the end of FY 2000, the percentage of fair housing 

cases remaining open past the statutory deadline of 100 days was 

over 80 percent. At the end of the first fiscal year of the Bush Administration, FY 2001, the aged-case inventory had been reduced 

to 37.1 percent, the first time since the passage of Fair Housing Act 

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Amendments of 1988 that HUD’s aged-case backlog has dropped 

below 50 percent. Housing consultants and a senior HUD official 

testified about the past lack of attention to the caseload and current HUD leadership’s efforts to reduce the caseload. 

MOLD: A GROWING PROBLEM

On Thursday, July 18, 2002, the Subcommittees on Housing and 

Community Opportunity and on Oversight and Investigations held 

a joint hearing to examine the extent of problems in the insurance 

and housing industry over mold. Mold-related claims by homeowners rose to over a billion dollars last year in just one State, approximately a five-fold increase over the previous year’s nationwide 

total. Across the U.S., homeowners’ insurers paid out $1.18 in 

losses and expenses for every $1 earned in premiums. Members of 

the scientific community testified on the current understanding of 

mold issues, and discussed the literature review by the Centers for 

Disease Control (CDC) now underway and due out this spring. 

Other witnesses discussed the sudden spike in mold litigation and 

remediation claims, and how these lawsuits are affecting the home 

building industry, unions, small businesses, and the insurance industry. In particular, the witnesses talked about the lack of scientific standards for measuring mold and determining the extent 

of any mold dangers, and the need for better guidance or proactive 

statements by Federal agencies. 

CATASTROPHIC BONDS: SPREADING RISK

On October 8, 2002, the Subcommittee held a hearing on the role 

of risk-linked securities-in particular, ‘‘cat’’ bonds-to facilitate 

greater capacity in traditional catastrophic insurance markets. The 

General Accounting Office presented a report, requested by the 

House Financial Services Committee, examining the role of these 

securities and current factors affecting their use. The report findings were categorized into four regulatory, accounting, tax, and investor areas: (1) regulatory—the regulatory accounting treatment 

of securitization, and how risk transfer from non-indemnity based 

coverage (securitization compensation based on the size of an 

event) can be adjusted to allow credit similar to traditional indemnity based reinsurance (compensation based on an insurer’s losses); 

(2) accounting—the effect of a proposed capitalization requirement 

interpretation on SPRV’s as put forward by FASB, and whether increasing the equity requirements in these vehicles would prohibitively increase the costs of securitization; (3) tax—allowing for 

‘‘pass-through’’ tax treatment of these instruments at the SPRV 

level (whether there’s a double taxation of the investment); and (4) 

investment—the difficulty of assessing and disclosing the risks of 

these instruments by fund managers and other institutional investors. The Subcommittee received additional testimony and from the 

National Association of Insurance Commissioners regarding their 

activities to facilitate and reduce regulatory barriers to the catastrophic financial market, as well as the bond market industry, a 

reinsurance company, and one of the largest bond placement companies in the United States. 

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HEARINGS HELD

Protecting Consumers: What Can Congress Do to Help Financial 

Regulators Coordinate Efforts to Fight Fraud. Joint hearing with 

the Subcommittee on Financial Institutions and Consumer Credit 

entitled ‘‘Protecting Consumers: What Can Congress Do to Help Financial Regulators Coordinate Efforts to Fight Fraud.’’ March 6, 

2001. March 6, 2001. PRINTED, serial no. 107-2. 

Inspector General’s Report on the Housing Authority of New Orleans. Field hearing in New Orleans, Louisiana on the Inspector 

General’s report on the Housing Authority of New Orleans. June 

4, 2001. PRINTED, serial no. 107-21. 

Implementation of EFT Requirements. Hearing on the implementation of EFT requirements. June 20, 2001. PRINTED, serial no. 

107-27. 

The SEC’s Role in Capital Formation: Help or Hinderance? Hearing entitled ‘‘The SEC’s Role in Capital Formation: Help or 

Hinderance?’’ June 26, 2001. PRINTED, serial no. 107-29. 

Financial Aspects of Internet Gaming: Good Gamble or Bad Bet?

Hearing entitled ‘‘Financial Aspects of Internet Gaming: Good 

Gamble or Bad Bet?’’ July 12, 2001. PRINTED, serial no. 107-34. 

Over-Regulation of Automobile Insurance: A Lack of Consumer 

Choice. Hearing entitled ‘‘Over-Regulation of Automobile Insurance: A Lack of Consumer Choice.’’ August 1, 2001. PRINTED, serial no. 107-42. 

Section 203(k) Housing Program. Field hearing in New York, 

New York, on the section 203(k) housing program. September 10, 

2001. PRINTED, serial no. 107-44. 

Preventing Identity Theft by Terrorists and Criminals. Joint hearing with the Committee on Ways and Means Subcommittee on Social Security on preventing identity theft by terrorists and criminals. November 8, 2001. PRINTED, serial no. 107-50. 

The Enron Collapse: Impact on Investors and Financial Markets.

Joint hearing with the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises entitled ‘‘The Enron 

Collapse: Impact on Investors and Financial Markets.’’ December 

12, 2001. PRINTED, serial no. 107-51, Part I. 

PATRIOT Act Oversight: Investigating Patterns of Terrorist Financing. Hearing entitled ‘‘PATRIOT Act Oversight: Investigating 

Patterns of Terrorist Financing.’’ February 12, 2001. PRINTED, serial no. 107-53. 

Retirement Protection: Fighting Fraud in the Sale of Death. Hearing entitled ‘‘Retirement Protection: Fighting Fraud in the Sale of 

Death.’’ February 26, 2002. PRINTED, serial no. 107-55. 

How Much are Americans at Risk Until Congress Passes Terrorism Insurance Protection? Hearing entitled ‘‘How Much are 

Americans at Risk Until Congress Passes Terrorism Insurance Protection?’’ February 27, 2002. PRINTED, serial no. 107-57. 

The Effects of the Global Crossing Bankruptcy on Investors, Markets, and Employees. Hearing entitled ‘‘The Effects of the Global 

Crossing Bankruptcy on Investors, Markets, and Employees.’’

March 21, 2001. PRINTED, serial no. 107-63. 

One Broker Gone Bad: Punishing the Criminal, Making Victims 

Whole. Hearing entitled ‘‘One Broker Gone Bad: Punishing the 

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Criminal, Making Victims Whole.’’ May 23, 2001. PRINTED, serial 

no. 107-71. 

Fighting Discrimination Against the Disabled and Minorities 

through Fair Housing Enforcement. Joint hearing with the Subcommittee on Housing and Community Opportunity entitled 

‘‘Fighting Discrimination Against the Disabled and Minorities 

through Fair Housing Enforcement.’’ June 25, 2002. Serial no. 107-

73. 

Mold: A Growing Problem Joint hearing with the Subcommittee 

on Housing and Community Opportunity entitled ‘‘Mold: A Growing Problem.’’ July 18, 2002. PRINTED, serial no. 107-77. 

Catastrophe Bonds: Spreading Risk. Hearing entitled ‘‘Catastrophe Bonds: Spreading Risk.’’ October 8, 2002. Serial no. 107-86. 

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OVERSIGHT PLAN FOR THE 107TH CONGRESS 

Clause 2(d) of rule X of the Rules of the House of Representatives for the 107th Congress requires that each standing committee 

in the first session of a congress adopt an oversight plan for the 

two-year period of the Congress and submit the plan to the Committee on Government Reform and the Committee on House Administration. 

Clause 1(d)(1) of rule XI requires each committee to submit to 

the House not later than January 2 of each odd-numbered year, a 

report on the activities of that committee under rules X and XI 

during the Congress ending on January 3 of such year. Clause 

1(d)(3) of rule XI also requires that the report include a summary 

of the oversight plans submitted pursuant to clause 2(d) of rule X; 

a summary of the actions taken and recommendations made with 

respect to each such plan; and a summary of any additional oversight activities undertaken by the committee and any recommendations made or actions taken thereon. 

Part A of this section contains the Oversight Plan of the Committee on Financial Services for the One Hundred Seventh Congress., which the Committee considered and adopted on February 

14, 2001. 

Part B of this section conatins 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 acitivites 

of the full Committee and each of the subcommittees. 

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Part A 

OVERSIGHT PLAN FOR THE COMMITTEE ON FINANCIAL 

SERVICES FOR THE ONE HUNDRED SEVENTH CONGRESS 

February 14, 2001.—Approved by the Committee on 

Financial Services 

Clause 2(d)(1) of rule X of the Rules of the House requires each 

standing Committee, not later than February 15 of the first session, to adopt an oversight plan for the 107th Congress. The oversight plan must be submitted simultaneously to the Committee on 

Government Reform and the Committee on House Administration. 

The following agenda constitutes the oversight plan of the Committee on Financial Services for the 107th Congress. It includes 

areas in which the Committee and its subcommittees expect to conduct oversight during this Congress but does not preclude oversight 

or investigation of additional matters or programs as they arise. 

The Committee will consult, as appropriate, with other committees 

of the House that may share jurisdiction on any of the subjects listed below. 

MONETARY POLICY ISSUES

Federal Reserve’s Conduct of Monetary Policy. The Committee 

will hold hearings on the Federal Reserve Board’s (Fed’s) semi-annual reports on the conduct of U.S. monetary policy. The Chairman 

of the Board of Governors will appear regularly before the Committee to address issues associated with monetary policy and the 

state of the economy, such as past and prospective developments in 

employment, productivity, and investment. 

INTERNATIONAL FINANCIAL ISSUES

Annual report and testimony by the Secretary of the Treasury on 

International Monetary Fund (IMF) Reform and the State of the 

International Financial System. The Committee will review and 

hold hearings on the annual reports to Congress from the Secretary 

of the Treasury on the IMF and the state of the international financial system. Pursuant to Section 613 of Public Law 105-277, the 

Committee will hear annual testimony from the Secretary of the 

Treasury on: (1) progress made in reforming the IMF; (2) the status 

of efforts to reform the international financial system; and (3) compliance by borrower countries with the terms and conditions of IMF 

assistance. 

106

Reauthorization of the Export-Import Bank of the United States. 

With the authority of the Export-Import Bank of the United States 

set to expire at the end of FY 2001, the Committee will review the 

merits of extending and revising the charter of the Bank. In particular, the Committee will examine the extent to which the Bank’s 

competitiveness has been eroded through the use of ‘‘untied aid’’ arrangements by foreign export credit agencies, as well as the development of so-called ‘‘market window’’ lending institutions by several trade competitors. In addition, the Committee will assess the 

appropriateness of current guidelines under which the President 

(acting through the Secretary of State) may block Exim financing 

because of foreign policy considerations. 

U.S. Contributions to the International Financial Institutions.

The Committee will review U.S. participation in, and the effectiveness of U.S. policy toward, the IMF, the World Bank Group, and 

the regional development banks. 

Trade in Financial Services. The Committee will review the 

International Fund for Agricultural Development (IFAD) organization, the Administration’s efforts in the World Trade Organization 

(WTO) Services Negotiations, and through bilateral agreements 

(such as the proposed free trade agreements with Chile and Singapore, and the secret memorandum developed as part of the United 

States - Japan bilateral insurance agreement) to achieve marketopening liberalization in financial services. The Committee will include in its review current efforts to open foreign insurance markets and maintain transparency in insurance regulation and negotiation. 

International Financial Services Privacy. The Committee will review the implementation and negotiation of international privacy 

standards, and the application of those standards to American companies. The review will be conducted in coordination with the Committee’s oversight of the financial privacy provisions of the GrammLeach-Bliley Act (GLB) discussed below. 

Coordination of International Financial Services Programs. The 

Committee will review the coordination among various Executive 

branch agencies in promoting financial services trade, including the 

priority and rank of such programs and program officials. 

World Bank AIDS Trust Fund. The Committee will monitor and 

conduct necessary oversight activities regarding the implementation of legislation passed by the 106th Congress (Public Law 106-

264) to authorize an international trust fund, led by the U.S. and 

other donors, to address the AIDS crisis through support of HIV/

AIDS prevention, education and treatment efforts in sub-Saharan 

Africa and other hard-hit regions. 

Holocaust Claims. The Committee will actively review efforts to 

ensure that restitution is made to Holocaust victims and heirs for 

confiscated bank accounts or payable insurance claims. 

Basel Capital Rules. The Committee will review new rules for 

bank capital under consideration by the Basel Commission. 

International Debt Relief. The Committee will monitor and conduct necessary oversight activities regarding the implementation of 

legislation passed by the 106th Congress to authorize U.S. funding 

for the Enhanced Heavily Indebted Poor Country (HIPC) Initiative. 

The Committee will assess progress made by the IMF and World 

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Bank in granting multilateral debt relief to qualified HIPC countries. The Committee will also monitor the development and adoption of poverty reduction strategies by the HIPC countries, and will 

assess compliance with other conditions on U.S. funding specified 

in the authorizing legislation. 

ECONOMIC GROWTH

Capital Formation. The Committee recognizes that capital formation is a crucial economic issue, particularly in the global information economy. New businesses must be able to attract capital to 

enter the marketplace. Established businesses must be able to attract capital to expand and compete. The Committee will closely examine all laws, policies, and regulations within its jurisdiction to 

encourage capital formation and eliminate barriers to it, including 

barriers with respect to underserved communities. 

Investment Company Act of 1940 and New Economy Businesses.

The Committee will review the impact of the Investment Company 

Act of 1940 on ‘‘incubator funds’’ and other capital formation vehicles that have been important to new economy businesses. 

Development of Economic Opportunities. The Committee will review economic development programs under the Committee’s jurisdiction, including programs administered by the Appalachian Regional Commission, the Economic Development Administration, 

and the newly created Delta Regional Authority. 

Community Development Financial Institutions (CDFI) Fund. In 

reviewing the expired authorization of the CDFI Fund, created in 

1994 to promote economic revitalization and community development, the Committee will examine the record of the Fund in implementing reforms pledged in 1997 to eliminate irregularities in the 

grant making process identified during the course of an investigation by the Subcommittee on General Oversight. The Committee 

will monitor the CDFI Fund’s implementation of the New Markets 

Tax Credits program, which was part of the Renewable Communities and New Markets initiative enacted into law during the 

106th Congress. 

PRIME. The Committee will examine the implementation of a 

new microenterprise lending program—the Program for Investment 

in Microentrepeneurs Act, otherwise known as the PRIME Act—

that was included in GLB. 

Reauthorization of the Defense Production Act. The Committee 

will review the performance of the Defense Production Act in preparation for its possible reauthorization. 

FINANCIAL SERVICES INDUSTRY/CONSUMER PROTECTION

FINANCIAL INSTITUTIONS

Implementation of Gramm-Leach-Bliley Act (GLB). The Committee will undertake a comprehensive review of implementation of 

the Gramm-Leach-Bliley Act (Public Law 106-102), the landmark 

financial modernization legislation enacted in the 106th Congress. 

Among the issues that may be examined are regulatory and industry implementation of the Act’s provisions governing financial privacy, merchant banking, financial holding company requirements, 

108

the implementation of GLB consumer protections governing the 

sale of insurance, securities, and banking products, and Community Reinvestment Act (CRA) sunshine provisions. The review may 

also identify potential changes to GLB to facilitate innovation in 

the financial services sector while protecting the safety and soundness of financial institutions. 

Financial Privacy and Consumers. In addition to reviewing implementation of the privacy provisions of GLB, the Committee will 

hold hearings to identify and address existing and emerging 

threats to the privacy of financial information and assess the adequacy of governmental and industry efforts to combat such threats. 

The Committee will consider whether further reforms may be needed to protect consumer identities and to allocate further responsibility for protecting and fixing consumer credit after an identity 

theft occurs. The Committee will consult, as appropriate, with 

other relevant Committees in addressing these issues. 

Electronic Signatures Legislation: Effect on Financial Services Industry. In light of the recent enactment of the Electronic Signatures in Global and National Commerce Act (Public Law 106-229), 

the Committee will monitor the financial services industry to ensure that it is able to provide new services to consumers without 

the potentially anti-competitive obstacles of outdated statutes, and 

that consumers continue to receive appropriate disclosures as required by law. 

Money Laundering. The Committee will review enforcement of 

anti-money laundering laws and regulations, including the annual 

National Money Laundering Strategy submitted by the administration pursuant to 31 U.S.C. 5341 (Public Law 105-310), and the 

money laundering vulnerabilities associated with so-called ‘‘offshore 

secrecy havens’’. 

Contract Netting Improvement. The Committee will review banking and bankruptcy insolvency laws with respect to the termination 

and netting of financial contracts. Legislation which would have 

ensured the orderly disposition of financial contracts held by bankrupt counterparties passed the House three times in the 106th 

Congress, and passed the Senate as part of a comprehensive bankruptcy reform package which was vetoed by the previous Administration. 

Deposit Insurance Reform. The Committee will conduct a comprehensive analysis of all aspects of Federal deposit insurance to 

determine whether any changes to the system are necessary. The 

Committee seeks to ensure the continued safety and soundness of 

the financial system and reduce the possibility of a crisis similar 

to the savings and loan debacle of the late 1980’s and early 1990’s. 

The review will encompass issues relating to the banking, thrift, 

and credit union industries. Some of the specific issues that may 

be included in this analysis are: (1) merger of the Bank Insurance 

Fund (BIF) and the Savings Association Insurance Fund (SAIF) to 

reduce the risk of fund insolvency; (2) options regarding deposit insurance pricing and coverage; (3) the appropriateness of the current minimum ratio of the funds to insured deposits and the effect 

of changes in the deposit insurance system on the reserve ratio and 

potential taxpayer liability; anc (4) examination of whether any 

109

cost savings to banks and thrifts resulting from deposit insurance 

reform are passed on to customers. 

First Accounts/ETAs. The Consolidated Appropriations Act for 2001, H.R. 4490, included $2 million in funding for a pilot program 

of the Administration’s First Accounts Initiative. This initiative is 

intended to extend traditional banking services to Americans who, 

for various reasons, do not now have checking or savings accounts 

or any other relationship with a bank or other financial services 

firm, and rely upon usually higher-cost alternatives to cash checks 

or make payments. In addition to monitoring the First Accounts 

Initiative, the Committee will continue to monitor the Administration’s implementation of EFT 99-which required most social security, veterans benefits, and other Federal payments to be made by 

electronic funds transfer rather than paper check-and review the 

implementation, including the costs and benefits, of the new electronic transfer accounts (ETAs). 

Benefits and Risks of Industry Consolidation. The Committee will 

review the benefits derived from consolidation in the financial services industry as well as the findings of a G-10 report on potential 

systemic risks associated with consolidation. Potential issues for 

oversight include financial institution examinations, market discipline, taxpayer liability, and global implications. 

State of the Industry. The Committee will require the Federal 

regulators to report periodically on the state of the banking, thrift, 

and credit union industries in order to alert Congress to any 

emerging weaknesses in the financial sector and supervisory measures being taken to counter such weaknesses. Recent reports on 

weaknesses in credit quality and decreased earnings performance 

highlight the need to exercise Congressional oversight. Conflicting 

issues, such as tightened underwriting standards versus the potential for a credit crunch, illustrate the complexity and importance of 

such oversight. Additionally, recent warnings on credit quality underscore the importance of ensuring that bank regulators and bank 

management have sufficient flexibility to set appropriate levels of 

loan loss reserves. Finally, the Committee will continue to monitor 

proposed changes to accounting standards relating to loan loss reserves. 

The Riegle-Neal Interstate Banking and Branching Efficiency Act 

of 1994. This statute updated Federal law to provide a framework 

for mergers and acquisitions of banks across State lines. The Committee will review whether the widespread use of the Internet and 

the evolution of the financial services industry since enactment of 

this law have made its provisions obsolete. Additionally, the Committee will review redundant geographic restrictions under the 

Home Owners’ Loan Act (HOLA), national and State caps on deposit concentrations, and issues relating to preemption of State 

laws by the Office of Thrift Supervision (OTS) and the Office of 

Comptroller of the Currency (OCC). 

Credit Unions. The Committee will continue its oversight of the 

implementation of the Credit Union Membership Access Act of 

1998 by the National Credit Union Administration (NCUA). Other 

issues relating to the credit union industry will also be reviewed, 

including powers of Federally-chartered credit unions versus Statechartered institutions. 

110

Fair Credit Reporting Act (FCRA). The Committee will conduct 

a comprehensive review of the FCRA, with a focus on such issues 

as legislation pertaining to the Federal Trade Commission staff 

opinion letter (the so-called ‘‘Vail letter’’) relating to employer investigations of employee misconduct, the accuracy of consumer 

credit reports, and the disclosure of credit scores. 

Fair Debt Collection Practices Act (FDCPA). The Committee will 

review this statute, particularly in view of the growth of routine 

bundling and selling of loans by the loan originator. 

Brokered Certificates of Deposit. The Committee will review 

whether adequate protections and disclosures exist for purchasers 

of brokered CDs. 

Regulatory Burden Reduction. The Committee will continue to 

analyze measures to reduce unnecessary burdens resulting from 

outdated and unnecessary laws and regulations. Included in this 

area are proposals to end the prohibition on banks paying interest 

on business checking accounts and to permit the Federal Reserve 

to pay interest on reserves of depository institutions held at Federal Reserve Banks. The Committee will review whether cost savings achieved through regulatory burden reduction are passed on 

to customers. 

‘‘Know-Your-Customer’’ Rules. In light of the controversy over the 

‘‘Know Your Customer’’ anti-money laundering regulation proposed 

and later withdrawn by Federal banking regulators, the Committee 

will review recent regulatory and industry initiatives to promote 

enhanced scrutiny of so-called ‘‘high-risk’’ accounts or transactions. 

Ergonomics Rule and the Financial Services Industry. The Committee will review the regulatory impact, including potential costs 

and benefits, of the new Federal ergonomics rule on the financial 

services industry. 

Consumer Protections. In addition to consumer issues addressed 

elsewhere in this oversight plan, the Committee will consider other 

issues concerning protections for consumers of financial services, 

such as recent financial literacy initiatives; the effect on consumers 

of industry consolidation, including acquisitions of commercial lending operations by insured depository institutions; the growth of alternatives to traditional banking branches and services; enforcement of the provisions of the Consumer Leasing Act; and the scheduled sunset of the Truth in Savings Act’s civil liability provisions. 

SECURITIES

Securities Market Structure. The Committee will initiate a comprehensive review of the regulatory structure of the National Market System, including international considerations, with an eye toward overhauling the Securities Exchange Act of 1934 to promote 

greater competition, efficiency and transparency in the securities 

markets. 

Improving Market Interconnection and Competition. The Committee will review the intermarket trading system, including its 

present and emerging international features, which connects various market centers and consider how that system can be improved 

to take better advantage of modern technologies and thereby promote greater competition and efficiency in the marketplace. 

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Regulatory Conflicts Arising From Increasing Convergence of Financial Services Firms. The Committee will examine the implications of increasing affiliations among financial services firms in the 

wake of GLB. Included in this review will be the implications for 

investors of certain restrictions under section 17 of the Investment 

Company Act of 1940. 

Accessibility of Market Data. The Committee will review the regulations governing securities market data and other financial market databases, and consider proposals to improve the content and 

accessibility of market data, as well as to promote competition and 

efficiency in the provision of that data. This review will include 

consideration of legislative proposals affecting the rights of users 

and publishers of financial market databases. 

Securities and Exchange Commission (SEC) Reauthorization and 

Review. The Committee will review the budget request by the SEC 

and consider reauthorization of the Commission. In addition, the 

Committee will review the organizational structure of the Commission, including the functioning of each division, as well as the Office of Economic Analysis, to ensure the Commission is efficiently 

and effectively carrying out its mission to promote capital formation and protect investors. 

SEC Fees. The Committee will consider proposals to reduce fees 

charged to securities markets participants. These fees, originally 

imposed to finance the SEC, have generated revenues exceeding 

the cost of running the agency by several times, effectively resulting in a tax on capital and a significant burden on investors. 

Social Security and Investor-Directed Retirement Accounts. The 

Committee will examine proposals to reform Social Security by providing for investor-directed retirement accounts, and consider these 

proposals’ impact on the capital markets and their implications for 

investors. The Committee will consider changes to the Federal securities laws to promote competition and ensure investor protection 

in connection with the creation of such investor-directed retirement 

accounts. 

Stock Options. The Committee will examine the regulations governing the use of, and accounting for, stock options, and consider 

what improvements might be needed to enhance their utility for 

public companies and their investors and employees. In conducting 

this review, the Committee will consult, as appropriate, with other 

Committees. 

Investor Access to Initial Public Offerings. The Committee will 

consider the allocation of IPOs and the efficiency and fairness of 

their allocation, including public access to IPOs as well as how IPO 

allocation affects the efficient promotion of capital formation. 

Technology in the Securities Markets. The Committee will review 

the extent to which SEC regulations promote the efficient use of 

the Internet to provide investors access to information about investments, including prospectus delivery. The Committee will also 

review practices by, and regulations governing, on-line brokerage 

firms as well as questions raised by the use of the Internet and 

other new technologies in connection with securities transactions. 

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ties markets online to ensure robust competition and continued investor protection. 

Decimal Trading. The Committee will closely monitor and review 

the implementation of decimal pricing in the securities markets to 

ensure speedy and efficient implementation of decimal pricing 

throughout the securities marketplace, consistent with the goal of 

the Common Cents Stock Pricing Act of 1997. 

Mutual Fund Disclosure. The Committee will monitor the implementation of new rules regarding disclosure of after-tax returns to 

mutual fund investors, as well as other disclosure requirements, to 

ensure these requirements maximize useful information for investors, consistent with efficiency and competition in the mutual fund 

marketplace. 

Bond Market. The Committee will monitor the implementation of 

the Trade Reporting and Comparison Entry Service (TRACE) and 

consider methods to improve transparency and competition in the 

bond market. 

Self-Regulatory Organizations. The Committee will examine the 

implications for competition in the marketplace of the existing SRO 

structures, in light of imminent public offerings by several SROs, 

as well as the implications to competition in the marketplace of 

SRO regulations, and the role of the SEC in overseeing those regulations. 

SEC Exemptive Authority. The National Securities Markets Improvement Act of 1996 provided new exemptive authority to the 

SEC. The Committee will monitor the Commission’s use of this authority to promote more efficient regulation and greater competition in the marketplace, and to eliminate burdensome regulation. 

Commodity Futures Modernization Act Implementation. The 

Committee will review the implementation of the Commodity Futures Modernization Act of 2000 to ensure the continued success of 

the U.S. derivatives markets and prevent unnecessary regulatory 

burdens on those markets. The Committee will monitor the actions 

of the SEC and the Commodities Futures Trading Commission 

(CFTC) to ensure the agencies’ actions are consistent with the deregulatory spirit of the Act. In addition, the Committee will review 

disclosure and other requirements for the accounting of derivatives 

by financial institutions to ensure antifraud protections in place 

are consistent with investor protection, capital formation, competition, and efficiency in the securities markets. 

Accounting Standards: Protection Against Fraud and International Harmonization. The Committee will review accounting 

standards and interpretations set forth by the Financial Accounting Standards Board as they pertain to anti-fraud provisions under 

the Federal securities laws, including the accounting standards 

used for mergers and acquisitions. The Committee will also consider initiatives by the SEC and others to harmonize international 

accounting standards. 

Organized Crime and Securities Markets. The Committee will examine issues relating to the integrity of the securities exchanges, 

including recent allegations of organized crime involvement in manipulating markets and defrauding individual investors. 

Investment Company Act of 1940 and the Employee Retirement 

Income Security Act (ERISA). The Committee will examine reguVerDate Dec 13 2002 21:53 Jan 02, 2003 Jkt 019006 PO 00000 Frm 00112 Fmt 6601 Sfmt 6601 E:\HR\OC\HR798.XXX HR798
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latory inconsistencies between the Investment Company Act of 

1940 and ERISA to determine what legislative or other changes are 

necessary to improve the effectiveness of each of those Acts for mutual fund investors. In conducting this review, the Committee will 

consult, as appropriate, with other Committees. 

Securities Investor Protection Corporation. The Committee will 

review the operations of the Securities Investor Protection Corporation and proposals to improve its effectiveness. 

Timely stock trade execution. The Committee will review industry 

practices with respect to t+3 stock execution to ensure stock executions are not delayed and to enhance the ability of market participants to move to t+1 execution. 

INSURANCE

Workers Compensation Insurance. The Committee will examine 

the current state of workers compensation insurance to determine 

the reasonableness of the types of claims and charges being made, 

and to consider whether further efficiencies or anti-fraud mechanisms can be developed. 

Insurance Marketing. The Committee will examine a number of 

consumer protection issues concerning the marketing of insurance 

products, potentially including the churning of life insurance, sales 

and marketing representations, coercion and pressure tactics, product bundling, excessive premium charges for credit insurance and 

mortgage insurance, and Internet marketing of insurance products. 

Insurance Solvency Regulation. The Committee will examine the 

current accreditation program of the National Association of Insurance Commissioners (NAIC) that judges the adequacy of State insurance regulatory systems. 

Insurance Fraud. The Committee will examine the efforts by the 

States, the NAIC, and other entities, to locate and fight insurance 

fraud, particularly in implementing reforms developed after the 

Martin Frankel scandal. 

NARAB Implementation. The Committee will determine whether 

a sufficient number of States are implementing uniform or reciprocal insurance agency licensing rules as required under the National Association of Registered Agents and Brokers Title of GLB, 

and what further measures are necessary to promote uniformity in 

insurance licensing. 

Preemption of State Insurance Law. The Committee will review 

any efforts by Federal agencies to preempt State laws governing insurance activities, and will also examine any controversial State insurance laws to ensure that they do not significantly interfere with 

Federally authorized powers of financial institutions. 

Insurance Product Approval. The Committee will review the 50 

State approval process for allowing new insurance products and 

forms to be admitted into the insurance markets. 

National Insurance Uniformity. The Committee will review various alternatives for modernizing the regulation of insurance, including reform efforts by the NAIC, development of interstate and 

regional regulatory compacts, facilitation of nationwide State-run 

insurance regulation programs, proposals for an optional Federal 

insurance charter, and other reforms for improving the efficiency 

and effectiveness of insurance regulation. 

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Insurance Consumer Protections. The Committee will examine 

the regulatory systems established by the States to protect consumers’ insurance interests, such as efforts to prevent discrimination against victims of domestic violence, to ensure adequacy of reimbursement of overpayments that are the result of racial or gender discrimination, and to ensure that consumer policy rights and 

recovery procedures are fully protected. The Committee will also 

examine how consumer inquiries are recorded as part of consumer 

claim records. 

Seniors’ Retirement Needs. The Committee will review the insurance needs particular to those contemplating or currently in retirement, including the use of annuities and other insurance pension 

programs, as well as nursing care insurance and other old age insurance programs. 

Class Action Insurance Litigation. The Committee will review 

issues surrounding class action suits filed in the name of insurance 

policy holders, examining the reasonableness of fees and compensation awarded and determining to what degree the settlements 

serve the parties’ interests. The Committee will also examine the 

effect of large awards on costs for consumers as well as the impact 

on State regulation of insurance. As appropriate, the Committee 

will consult with other Committees in reviewing these issues. 

FEDERAL AGENCIES/AGENCY PROGRAM ISSUES

Government Sponsored Enterprises (GSEs). The Committee will 

continue its comprehensive review of the three housing GSEs— Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. 

Areas to be covered include: (1) review of implementation by 

Fannie Mae and Freddie Mac of their October 2000 voluntary 

agreement to enhance market discipline and transparency; (2) the 

governmental structure and authorities for conducting safety and 

soundness and mission regulation; (3) new leverage and risk-based 

capital rules; and (4) compliance with HUD’s recently announced 

increases in affordable housing goals. 

Management/Reform of the Federal Reserve System. The Committee will conduct oversight of the operations of the Federal Reserve System, such as the System’s role in providing financial services as well as its management structure and consolidation of operations, use of technology, control and oversight mechanisms, budget processes, pay and benefit levels, and systemwide strategic planning. 

Corrections Recommended by the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency 

(OCC), and Office of Thrift Supervision (OTS). The Committee will 

consider a number of technical and other corrective changes recommended by the FDIC, OCC, and OTS to the Federal Deposit Insurance Act (FDIA), the International Banking Act of 1978, the National Bank Act, the Home Owners’ Loan Act (HOLA), and other 

banking laws relating to FDIC, OCC, and OTS authorities in the 

area of contracting, foreign banks, resolution of insured depository 

institutions, and other issues. 

Management of the Nation’s Money: Activities of the Bureau of the 

Mint and the Bureau of Engraving and Printing (BEP). The Committee will oversee the activities of these Treasury bureaus as they 

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relate to the printing and production of U.S. currency and the financing and minting of circulating and commemorative coins. The 

Committee will review the efficiency and productivity of Mint and 

BEP manufacturing operations, as well as the Numismatic Public 

Enterprise Fund. Technical changes to the authorizing statute for 

the latter will also be considered. 

Anti-Fraud Agency Coordination Efforts. The Committee will examine the efforts of the financial services regulators to coordinate 

their anti-fraud efforts, including disciplinary records and other 

consumer protection records. 

Central Liquidity Facility. The Central Liquidity Facility (CLF), 

a government corporation managed by the NCUA, is a valuable 

source of loans for meeting the seasonal and emergency liquidity 

needs of credit unions. The CLF borrows from the Treasury Department’s Federal Financing Bank, though Congress has imposed 

borrowing and lending caps. Last year, the General Accounting Office (GAO) audited CLF operations and raised some questions. Subsequently, the conference report accompanying the FY 2001 VAHUD appropriations bill directed the NCUA to develop policies and 

procedures to clarify credit union access to the CLF. The Committee may conduct an oversight hearing or other activities relating to the CLF in preparation for advising the Appropriations Committee on CLF-related decisions. 

Farm Credit Administration’s National Charter Initiative. In consultation with other Committees, the Financial Services Committee 

will continue to monitor the GSE-related issues involved in the 

Farm Credit Administration’s national charter initiative. 

Reports of Inspectors General or Other Investigative Agencies. The 

Committee will review and, where appropriate, hold hearings on 

the findings of investigations and audits conducted by the GAO and 

the Inspectors General of the agencies that fall within the Committee’s jurisdiction. 

Government Performance and Results Act. The Committee will 

continue to review the strategic plans, annual performance plans, 

and annual performance reports of departments and agencies 

under its jurisdiction. 

HOUSING ISSUES

Mortgage Finance Reform/Real Estate Settlement Procedures 

Act/Truth-in-Lending Act/Predatory Lending. The Committee may 

conduct hearings on comprehensive mortgage finance reform to address the evolution of mortgage finance for the 21st century and to 

assess what regulatory and statutory changes are necessary to curb 

predatory lending practices. As the financial services industry and 

mortgage markets adapt to technological changes, the Committee 

will review the Real Estate Settlement Procedures Act and the 

Truth-in-Lending Act. In the area of predatory lending, the Committee will review regulatory initiatives and the application of 

laws, such as the Home Ownership and Equity Protection Act, in 

order to distinguish between subprime lending activity, which provides needed capital for many historically underserved consumers, 

and the abusive practices associated with predatory lending. 

HUD Management Reform and Staffing. The Committee will conduct a comprehensive review of the management reform initiatives 

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implemented in the past five years. Between 1994 and 2001, all 

programs of the Department of Housing and Urban Development 

(HUD) were designated by GAO as being at ‘‘high risk’’ for waste, 

fraud, and abuse. However, on January 17, 2001, GAO reported a 

reduction in the number of HUD programs deemed to be high-risk 

due to HUD’s improvement in Community Development Block 

Grant (CDBG) management controls. Yet GAO cited continuing, 

significant weaknesses in two of the department’s major programs—the single-family mortgage insurance and the rental housing assistance programs. The report also noted management challenges related to information and financial management data systems and staffing. The significant weaknesses cover approximately 

70 percent of HUD’s programs and involve potential liabilities up 

to $454 billion in the single-family portfolio and excess subsidy 

rental payments up to $3.1 billion over the last four years. 

HUD Related Reauthorizations. The Committee will review, for 

appropriate action, expired—and expiring—authorizations relating 

to HUD. 

HUD Federal Housing Administration (FHA) Mutual Mortgage 

Insurance Fund Capital Ratio Standards. The Committee will review the Mutual Mortgage Insurance Fund capital ratio standards 

to assess whether current ratio requirements are appropriate. In 

1990, Congress enacted legislation requiring a capital ratio of 2 

percent by 2000. The fund reached the 2 percent goal by 1995, 

aided by an economic expansion, and currently has a reserve fund 

in excess of $16 billion. In the 106th Congress, the Subcommittee 

on Housing and Community Opportunity asked GAO to review the 

adequacy of the capital ratio standards. GAO is scheduled to report 

to the Committee by late February and the Committee will evaluate the report at that time. 

Private Mortgage Insurance (PMI). The Committee will review 

the effectiveness of laws requiring cancellation of private mortgage 

insurance once certain equity thresholds are achieved. The Committee will also review the ability of the Federal Housing Administration to grant similar consumer rights and will consider whether 

further consumer disclosures are appropriate. 

Real Estate Activities. The Committee will review the benefits 

and concerns relating to the entrance of financial services firms 

and Internet firms into the real estate agency markets. 

Minorities and Homeownership. The Committee will conduct 

hearings to review homeownership rates, particularly for underserved markets, e.g., minorities, inner-city neighborhoods, and 

women. The overall homeownership rate is approximately 68 percent; however, the average homeownership rate for African Americans is in the 40th percentile and Hispanics register as low as the 

20th. The Committee will focus on homeownership disparity in 

order to fine-tune government policies, practices, and incentives 

that may preclude successful lending and ownership. 

Flood Insurance. The Committee will review the National Flood 

Insurance Program (NFIP) and the implementation of reforms initiated by the Riegle Community Development and Regulatory Improvement Act of 1994 (Public Law 103-325). The Committee will 

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ment Agency reports addressing subsidy reductions and repetitive 

losses. 

Catastrophic Insurance Protection. The Committee will review 

the current and projected future ability of the insurance industry 

to survive a catastrophic natural disaster, and will examine the solvency of various State disaster pools and other disaster solvency 

programs. 

Rural Housing Prepayment. The Committee will review the rural 

multifamily rental program and specific housing laws prohibiting 

prepayment of the debt of government-financed mortgage loans. 

CDBG/HOME Oversight. The Committee will review the CDBG 

program and the Home Investments Partnerships Act (HOME) to 

assess the impact of funds in low- and very-low income neighborhoods. Given GAO’s assessment that these programs are not at 

high risk for waste, fraud, and abuse, the Committee will focus on 

management and operation of the programs, including the timely 

expenditure of CDBG funds. As of February 2000, according to 

GAO, 239 of the over 950 entitlement grantees had unexpended 

balances that were excessive and represented approximately $1.6 

billion. These two programs will be reviewed in connection with 

consideration of their reauthorization. 

Oversight of the Puerto Rico Public Housing Authority. The Committee will review measures taken by HUD to correct widespread 

abuse in contracting and program management uncovered at the 

Puerto Rico Public Housing Authority, the second-largest public 

housing authority in the country. In July 2000, HUD’s Inspector 

General wrote to Congress and expressed serious concern with the 

adequacy of the measures HUD had taken to address the waste 

and loss of Federal funds by the Puerto Rico Public Housing Authority. 

Oversight of HUD’s Real Estate Assessment Center (REAC) and 

Public Housing Assessment System (PHAS). The Committee will review the functions of HUD’s REAC and PHAS assessment programs. REAC and PHAS have been severely criticized for being unduly complex and unworkable from a management perspective. In 

2000, the Department maintained that initial barriers to the implementation of REAC and PHAS were adequately addressed. However, the Committee continues to be concerned about complaints received from public housing authorities. 

CURRENCY AND PAYMENT SYSTEM ISSUES

Electronic Commerce and Payment Systems. The Committee will 

continue to assess the domestic and international implications of 

new innovations in electronic money and electronic payment systems. Among the issues the Committee may examine are soundness, security, privacy, access to new electronic payment methods, 

eligibility criteria for issuing new payment methods, competing 

government regulation, and threats posed to critical infrastructures 

such as the payments system. 

Counterfeiting. The Committee will continue its review of efforts 

to detect and combat the counterfeiting of U.S. currency in the 

United States and abroad. 

Dollar Coin. The Committee will examine issues relating to the 

introduction in 2000 of the new one-dollar coin, including U.S. Mint 

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production-allocation decisions, a true unit cost of production, management of the program throughout its life to date, the type and 

nature of fees paid for the design of the coin, and the Mint’s expenditures on outside advertising and public relations firms for this 

and other initiatives. 

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PART B 

IMPLEMENTATION OF THE COMMITTEE ON FINANCIAL 

SERVICES OVERSIGHT PLAN FOR THE 107TH CONGRESS 

MONETARY POLICY ISSUES

Federal Reserve’s Conduct of Monetary Policy. The Committee 

held statutorily required hearings on the Chairman of the Federal 

Reserve Board of Governors’ semi-annual reports on monetary policy on February 28, 2001, July 18, 2001, February 27, 2002, and 

July 17, 2002. The Chairman of the Board of Governors testified 

at each hearing. 

INTERNATIONAL FINANCIAL ISSUES

Annual report and testimony by the Secretary of the Treasury on 

International Monetary Fund (IMF) Reform and the State of the 

International Financial System. The Committee held hearings on 

the annual report on May 22, 2001 and February 28, 2002. The 

Secretary of the Treasury testified at each hearing. 

Reauthorization of the Export-Import Bank of the United States. 

The Subcommittee on International Monetary Policy and Trade 

held hearings on the reauthorization of the Export-Import Bank on 

May 2 and 8, 2001. On October 31, 2001, the Committee passed 

H.R. 2871, the Export-Import Bank Reauthorization Act of 2001. 

The House passed the bill, as amended, on May 1, 2002. After passage of S 1372 by the Senate, the House passed the conference report on June 5, 2002. The Senate passed the conference report on 

June 6, 2002, and the President signed the Act (Public Law 107-

189) on June 14, 2002. 

U.S. Contributions to the International Financial Institutions.

The Subcommittee on International Monetary Policy and Trade 

held hearings on the African Development Bank and African Development Fund on April 25, 2001; on World Bank and IMF activities 

in Africa on May 15, 2001; and on fiscal year 2002 authorization 

requests for international programs on June 12, 2001. 

On October 31, 2001, the Committee passed H.R. 2604, a bill replenishing the resources of the Asian Development Fund and the 

International Fund for Agricultural Development, and setting forth 

additional policies of the United States towards the African Development Bank, the African Development Fund, the Asian Development Bank, the Inter-American Development Bank, and the European Bank for Reconstruction and Development. The House passed 

H.R. 2604 on May 2, 2002. The Subcommittee on International 

Monetary Policy and Trade held a hearing on the causes of the 

120

meltdown in the Argentinean economy, including the IMF’s role, on 

February 26, 2002. 

The Subcommittee on International Monetary Policy and Trade 

held hearings on proposed changes to the authorizations for the 

World Bank-International Development Association and the North 

American Development Bank on May 2, 2002; July 19, 2002; and 

July 25, 2002. The Committee referred H.R. 5400, a bill to authorize the establishment of a Border Environment Cooperation Commission and a North American Development Bank, and for other 

purposes, to the House floor, and it passed the House by voice vote 

on October 10, 2002. No further action was taken on these measures during the 107th Congress. 

Trade in Financial Services. The Subcommittee on International 

Monetary Policy and Trade held a hearing on current international 

insurance, banking, and securities trade issues and recent developments on June 26, 2001. The Committee held a hearing on the European Union’s Financial Services Action Plan and its implications 

for the American financial services industry on May 22, 2002. 

International Financial Services Privacy. On May 11, 2002, the 

Chairman of the full Committee and the chairs of all of the subcommittees wrote a letter to the Secretary of the Treasury, requesting that he consult with the Committee during negotiations with 

the European Union (EU) on its privacy policy. This issue was then 

discussed during the Committee’s hearing on May 22, 2002, on the 

European Union’s Financial Services Action Plan. 

Coordination of International Financial Services Programs. Although the Committee took no direct oversight action on this topic, 

the Committee monitored the developments in this area throughout 

the 107th Congress. 

World Bank AIDS Trust Fund. The Subcommittee on International Monetary Policy and Trade held a hearing on World Bank 

and IMF activities in Africa, including those focused on the HIV/

AIDS pandemic, on May 15, 2001. Provisions addressing these matters were included in H.R. 2604, referred to above. 

Holocaust Claims. The Committee monitored the efforts by the 

International Holocaust Commission to ensure that restitution is 

made to Holocaust victims and heirs of confiscated accounts. 

Basel Capital Rules. Although the Committee took no direct oversight action on this topic, the Committee monitored the developments in this area throughout the 107th Congress. 

International Debt Relief. This issue was considered during hearings on the World Bank and Africa cited above. 

ECONOMIC GROWTH

Capital Formation. The Subcommittee on Domestic Monetary 

Policy, Technology, and Economic Growth held a hearing on measures needed to stimulate capital formation on March 29, 2001. The 

Subcommittee on Oversight and Investigations held a hearing on 

the SEC’s role in capital formation on June 26, 2001. 

Investment Company Act of 1940 and New Economy Businesses.

The Committee took no direct oversight action on these matters in 

the 107th Congress, but continued to monitor the activities of these 

companies. 

121

Development of Economic Opportunities. Although the Committee 

took no direct oversight action on this topic, the Committee monitored the developments in this area throughout the 107th Congress. 

Community Development Financial Institutions (CDFI) Fund. Although the Committee took no direct oversight action on this topic, 

the Committee monitored the developments in this area throughout 

the 107th Congress. 

PRIME. Although the Committee took no direct oversight action 

on this topic, the Committee monitored the developments in this 

area throughout the 107th Congress. 

Reauthorization of the Defense Production Act. The Subcommittee 

on Domestic Monetary Policy, Technonogy, and Economic Growth 

held a hearing on the reauthorization on June 13, 2001. The Committee passed H.R. 2510, the Defense Production Act Amendments 

of 2001, on July 25, 2001. The House passed the bill on September 

5, 2001. The President signed the Act (Public Law 107-47) on October 5, 2001. 

FINANCIAL SERVICES INDUSTRY/CONSUMER PROTECTION

FINANCIAL INSTITUTIONS

Implementation of Gramm-Leach-Bliley Act (GLB). On April 4, 

2001, the Subcommittee on Financial Institutions and Consumer 

Credit and the Subcommittee on Capital Markets, Insurance, and 

Government-Sponsored Enterprises held a joint hearing on the use 

of the authority granted by GLB for financial holding companies 

(FHCs) and bank holding companies (BHCs) to conduct merchant 

banking investment activities. 

On July 19, 2001, Chairman Oxley and the six subcommittee 

chairman sent a letter to the acting Chairwoman of the Securities 

and Exchange Commission, expressing concerns about a draft SEC 

ruling applying new SEC regulatory requirements to bank brokerage activities governed by GLB. On August 2, 2001, the Financial 

Institutions and Subcommittee on Capital Markets, Insurance, and 

Government Sponsored Enterprises held a joint hearing to address 

the SEC ruling. 

Financial Privacy and Consumers. The Subcommittee on Oversight and Investigations held a hearing jointly with the Social Security Subcommittee of the Committee on Ways and Means on 

identity theft of the deceased on November 8, 2001. The Chairwoman of the Subcommittee on Oversight and Investigations convened a task force to address the issue. On November 15, she sent 

a letter to the Treasury requesting that they support a death 

verification system that was undergoing testing by the Social Security Administration. 

Electronic Signatures Legislation: Effect on Financial Services Industry. The Subcommittee on Domestic Monetary Policy, Technology, and Economic Growth held a hearing on June 28, 2001 on 

this issue. 

Money Laundering. The Committee held a hearing on the financial infrastructure of global terrorism on October 3, 2001. The Committee passed H.R. 3004, the Financial Anti-Terrorism Act of 2001, 

on October 11, 2001. It was incorporated into the USA PATRIOT 

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Act, H.R. 3162, which was signed into law on October 26, 2001. 

The Subcommittee on Oversight and Investigations held a hearing 

on patterns of terrorist financing on February 12, 2002. The Committee held a hearing on the implementation of the USA PATRIOT 

Act on September 19, 2002. 

Contract Netting Improvement. Although the Committee took no 

direct oversight action on this topic, the Committee monitored the 

developments in this area throughout the 107th Congress. Further, 

provisions of H.R. 333, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2001, addressed this matter and the Committee participated in their development. 

Deposit Insurance Reform. The Subcommittee on Financial Institutions and Consumer Credit held hearings on aspects of deposit 

insurance reform on July 26 and October 17, 2001. On March 7, 

2002, the Subcommittee on Financial Institutions and Consumer 

Credit approved H.R. 3717, Federal Deposit Insurance Reform Act 

of 2002 for full Committee consideration. The full Committee 

passed H.R. 3717 on April 17, 2002, and the House passed it on 

May 22, 2002. No further action was taken on this legislation in 

the 107th Congress. 

First Accounts/ETAs. The Subcommittee on Oversight and Investigations held a hearing on EFT requirements and the use of ETAs 

on June 20, 2001. The Chairman and Ranking Member asked GAO 

to conduct a study on the issue, which was completed and released 

in October 2002. 

Benefits and Risks of Industry Consolidation. Although the Committee took no direct oversight action on this topic, the Committee 

monitored the developments in this area throughout the 107th 

Congress. 

State of the Industry. In the wake of the terrorist attacks of September 11, 2001, the Committee reviewed the state of the financial 

services industry and the ability to recover. On September 13, senior regulatory officials briefed Committee members about the restoration of full operations. The Committee met on September 26 to 

receive an update on recovery operations from securities and insurance regulators and industry leaders. On October 11, 2001, the 

Committee asked GAO to monitor the recovery process and report 

to us on its implications for the U.S. financial markets and their 

participants. 

The Riegle-Neal Interstate Banking and Branching Efficiency Act 

of 1994. Although the Committee took no direct oversight action on 

this topic, the Committee monitored the developments in this area 

throughout the 107th Congress. 

Credit Unions. A number of regulatory provisions affecting credit 

unions were included in H.R. 3951, the Financial Services Regulatory Relief Act of 2001 and the Subcommittee on Financial Institutions and Consumer Credit conducted oversight of these financial 

institutions during the course of the development of that legislation. 

Fair Credit Reporting Act (FCRA). Although the Committee took 

no direct oversight action on this topic, the Committee monitored 

the developments in this area throughout the 107th Congress. 

Fair Debt Collection Practices Act (FDCPA). Although the Committee took no direct oversight action on this topic, the Committee 

123

monitored the developments in this area throughout the 107th 

Congress. 

Brokered Certificates of Deposit. Although the Committee took no 

direct oversight action on this topic, the Committee monitored the 

developments in this area throughout the 107th Congress. 

Regulatory Burden Reduction. The Subcommittee on Financial 

Institutions and Consumer Credit held a legislative hearing on 

H.R. 3951, the Financial Services Regulatory Relief Act of 2002, on 

March 14, 2002. The Subcommittee on Financial Institutions and 

Consumer Credit passed the bill on May 8, 2002. No further action 

was taken on this measure during the 107th Congress. ‘‘Know-Your-Customer’’ Rules. This issue was considered by the 

Committee during the course of deliberations on H.R. 3004, the Financial Anti-Terrorism Act of 2001. New provisions requiring financial institutions to gather information about customers were incorporated into H.R. 3162, the USA PATRIOT Act. 

Ergonomics Rule and the Financial Services Industry. This issue 

was considered during the course of deliberations on H. Res. 79 

and S.J.Res. 6, a joint resolution providing for congressional disapproval of the rule submitted by the Department of Labor relating 

to ergonomics. The resolution was enacted as public law 107-5 on 

March 20, 2001. 

Consumer Protections. The Subcommittee on Financial Institutions and Consumer Credit held a hearing on November 1, 2001, 

to address the credit card industry’s practice of issuing credit to 

worthy customers without saturating the market with uncollectible 

debt. On December 11, 2001, Chairman Oxley, with representatives 

from the credit card industry and the U.S. Postal Service, announced an agreement intended to protect consumers in the event 

of a mail disruption caused by biological, chemical, or radiological 

attack. 

SECURITIES

Securities Market Structure. Although the Committee took no direct oversight action on this topic, the Committee monitored the developments in this area throughout the 107th Congress. 

Improving Market Interconnection and Competition. Although the 

Committee took no direct oversight action on this topic, the Committee monitored the developments in this area throughout the 

107th Congress. 

Regulatory Conflicts Arising from Increasing Convergence of Financial Services Firms. On April 4, 2001, the Subcommittee on Financial Institutions and Consumer Credit and the Subcommittee 

on Capital Markets, Insurance, and Government Sponsored Enterprises held a joint hearing on the use of the authority granted by 

GLB to the Federal Reserve Board, the Office of the Comptroller 

of the Currency, Department of the Treasury, and Federal Deposit 

Insurance Corporation to enable financial holding companies 

(FHCs) and bank holding companies (BHCs) to conduct merchant 

banking investment activities. 

Accessibility of Market Data. The Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held hearings on the collection, ownership, and distribution of market data 

on March 14 and July 26, 2001. 

124

Securities and Exchange Commission Reauthorization and Review. The Committee passed H.R. 3764, a bill to authorize appropriations for the SEC, on April 11, 2002. The House passed H.R. 

3764 on June 26, 2002. The provisions of H.R. 3764 were included 

in the conference report to accompany H.R. 3763. Additionally, in 

the wake of the September 11 attacks, the Committee passed H.R. 

3060, the Emergency Securities Response Act, to allow the SEC to 

extend emergency orders for up to 30 business days and in some 

cases for up to 90 calendar days, from the current 10 days. The bill 

would also widen the SEC’s emergency relief scope to include all 

Federal securities laws. The House passed H.R. 3060 on November 

11, 2001. The Senate did not consider the bill before the end of the 

session. 

SEC Fees. The Subcommittee on Capital Markets, Insurance, and 

Government Sponsored Enterprises held a hearing entitled ‘‘Saving 

Investors Money: Reducing Excessive SEC Fees’’ on March 7, 2001. 

The Subcommittee passed H.R. 1088, the Investor and Capital 

Markets Fee Relief Act, on March 21, 2001. The Committee passed 

H.R. 1088 on March 28, 2001. The House passed the bill on June 

14, 2001, and the Senate passed the bill on December 20, 2001. The 

President signed the Act, on January 16, 2002, becoming public law 

number 107-123,. 

Social Security and Investor-Directed Retirement Accounts. Although the Committee took no direct oversight action on this topic, 

the Committee monitored the developments in this area throughout 

the 107th Congress. 

Stock Options. Although the Committee took no direct oversight 

action on this topic, the Committee monitored the developments in 

this area throughout the 107th Congress. 

Investor Access to Initial Public Offerings. The Committee considered these issues during its investigation of links between investment banking business and issuance of shares in initial public offerings described above. 

Technology in the Securities Markets. Although the Committee 

took no direct oversight action on this topic, the Committee monitored the developments in this area throughout the 107th Congress. 

New Investment Products. Although the Committee took no direct 

oversight action on this topic, the Committee monitored the developments in this area throughout the 107th Congress. 

Decimal Trading. Although the Committee took no direct oversight action on this topic, the Committee monitored the developments in this area throughout the 107th Congress. 

Mutual Fund Disclosure. Although the Committee took no direct 

oversight action on this topic, the Committee monitored the developments in this area throughout the 107th Congress. 

Bond Market. Although the Committee took no direct oversight 

action on this topic, the Committee monitored the developments in 

this area throughout the 107th Congress. 

Self-Regulatory Organizations. Although the Committee took no 

direct oversight action on this topic, the Committee monitored the 

developments in this area throughout the 107th Congress. 

125

SEC Exemptive Authority. Although the Committee took no direct oversight action on this topic, the Committee monitored the developments in this area throughout the 107th Congress. 

Commodity Futures Modernization Act Implementation. On July 

27, 2001, Chairman Oxley wrote to the acting SEC chairwoman, 

the chairman of the Commodity Futures Trading Commission, and 

the commissioner of the Internal Revenue Service (IRS), to request 

a progress report on their agencies’ implantation of the Commodities Futures Modernization Act (CFMA). On October 15, 2001, 

Chairman Oxley and Agriculture Committee Chairman Combest 

sent a letter to the chairmen of the SEC and CFTC, supporting the 

extension of the comment period on rules for the trading of security 

futures products after December 21, 2001, as a result of the terrorist attacks on September 11. 

Accounting Standards: Protection Against Fraud and International Harmonization. The Subcommittee on Capital Markets, 

Insurance, and Government Sponsored Enterprises held a hearing 

on June 7, 2001 on the promotion of international capital flows 

through harmonization of international accounting standards. The 

Subcommittee on Capital Markets, Insurance, and Government 

Sponsored Enterprises held hearings on May 1 and May 14, 2002, 

on the credibility of GAAP in light of corporate accounting scandals 

and the collapse of major companies. This issue was also raised 

during the Committee’s hearing on May 22, 2002, on the EU’s Financial Services Financial Services Action Plan, and in the consideration of the Sarbanes-Oxley Act of 2002. 

Organized Crime and Securities Markets. Although the Committee took no direct oversight action on this topic, the Committee 

monitored the developments in this area throughout the 107th 

Congress. 

Investment Company Act of 1940 and the Employee Retirement 

Income Security Act (ERISA). Although the Committee took no direct oversight action on this topic, the Committee monitored the developments in this area throughout the 107th Congress. 

Securities Investor Protection Corporation. Although the Committee took no direct oversight action on this topic, the Committee 

monitored the developments in this area throughout the 107th 

Congress. 

Timely stock trade execution. Although the Committee took no direct oversight action on this topic, the Committee monitored the developments in this area throughout the 107th Congress. 

INVESTIGATION OF LINKS BETWEEN INVESTMENT BANKING BUSINESS

AND ISSUANCE OF SHARES IN INITIAL PUBLIC OFFERINGS

Following the July 8, 2002 WorldCom hearing, the Committee 

began the first Congressional investigation of Wall Street practices 

for the issuance of shares in initial public offerings to investment 

banking clients. Based on information developed in connection with 

that hearing, the Committee requested and subpoenaed thousands 

of pages of documents from Citigroup, Goldman Sachs, and Credit 

Suisse First Boston. The documents revealed that preferred investors involved in over 30 companies (including Enron, Global Crossing, and WorldCom) reaped profits from initial public offering 

shares and ‘‘spun’’ investment banking business back to the firms. 

126

For instance, subpoenaed documents revealed that former 

WorldCom CEO Bernie Ebbers made $11 million in personal gains 

from initial public offering shares. Additionally, evidence indicates 

that ratings of stock analysts, such as Jack Grubman, were influenced by the prospect for investment banking business, despite previous denials by the analysts and firm management. Analysts’ compensation appears to have been tied, in part, to the volume of such 

business. The SEC initiated investigations to determine whether 

securities laws were violated, and also initiated regulatory actions 

to prevent future direct linkages. 

INSURANCE

Workers Compensation Insurance. Although the Committee took 

no direct oversight action on this topic, the Committee monitored 

the developments in this area throughout the 107th Congress. 

Insurance Marketing. The Subcommittee on Oversight and Investigations held a hearing on February 26, 2002 entitled ‘‘Retirement 

Protections: Fighting Fraud in the Sale of Death’’ which addressed 

the marketing of viatical policies. For more information on this 

hearing, see the appropriate portion of the Subcommittee on Oversight and Investigations section. 

Insurance Solvency Regulation. The Subcommittee on Capital 

Markets, Insurance, and Government Sponsored Enterprises held 

hearings on this issue on June 4, 11, and 18, 2002. 

Insurance Fraud. The Subcommittee on Oversight and Investigations held a hearing on February 26, 2002, on fraud in the sale of 

viatical insurance products. For more information on this hearing, 

see the appropriate portion of the Subcommittee on Oversight and 

Investigations section. 

NARAB Implementation. The Subcommittee on Capital Markets, 

Insurance, and Government Sponsored Enterprises held a hearing 

on the NARAB provisions of GLB on May 16, 2001. 

Preemption of State Insurance Law. Although the Committee 

took no direct oversight action on this topic, the Committee monitored the developments in this area throughout the 107th Congress. 

Insurance Product Approval. The Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held a 

hearing on this issue on June 21, 2001. 

National Insurance Uniformity. The Subcommittee on Capital 

Markets, Insurance, and Government Sponsored Enterprises held 

hearings on this issue on June 4, 11, and 18, 2002. 

Insurance Consumer Protections. Although the Committee took 

no direct oversight action on this topic, the Committee monitored 

the developments in this area throughout the 107th Congress. 

Seniors’ Retirement Needs. Although the Committee took no direct oversight action on this topic, the Committee monitored the developments in this area throughout the 107th Congress. 

Class Action Insurance Litigation. Although the Committee took 

no direct oversight action on this topic, the Committee monitored 

the developments in this area throughout the 107th Congress. 

127

FEDERAL AGENCIES/AGENCY PROGRAM ISSUES

Government-Sponsored Enterprises (GSEs). The Subcommittee on 

Capital Markets, Insurance, and Government Sponsored Enterprises held hearings on various aspects of this issue on May 23 and 

July 11, 2001, and on July 16 and July 23, 2002. For more information regarding the Committee’s activities, please see the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises section. 

Management/Reform of the Federal Reserve System. Although 

the Committee took no direct oversight action on this topic, the 

Committee monitored the developments in this area throughout the 

107th Congress. 

Corrections Recommended by the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency 

(OCC), and Office of Thrift Supervision (OTS). During the Committee’s consideration of H.R. 3951, the Financial Services Regulatory 

Relief Act of 2001, the Committee considered a variety of suggestions from the regulators of banks, thrifts, and credit unions. 

Management of the Nation’s Money: Activities of the Bureau of the 

Mint and the Bureau of Engraving and Printing (BEP). Although 

the Committee took no direct oversight action on this topic, the 

Committee closely monitored the activities of this agency, and undertook numerous informal efforts to improve the management and 

operations of the Mint and Bureau of Engraving and Printing. The 

Committee did consider H.R. 2509, the Bureau of Engraving and 

Printing Security Printing Amendments Act. For more information 

on these activities, please see the appropriate entries in the Subcommittee on Domestic Monetary Policy, Technology, and Economic 

Growth section. 

Anti-Fraud Agency Coordination Efforts. The Subcommittee on 

Oversight and Investigations and the Subcommittee on Financial 

Institutions and Consumer Credit held a joint hearing on March 6, 

2001 on potential actions by financial regulators and Congress to 

protect consumers from financial fraud. The Subcommittee on Financial Institutions and Consumer Credit passed H.R. 1408, the 

Financial Services Antifraud Network Act of 2001, on June 13, 

2001. The Committee passed the bill on June 27, 2001. The House 

passed the bill on November 6, 2001. The Senate did not consider 

the bill before the end of the session. 

Central Liquidity Facility. Although the Committee took no direct oversight action on this topic, the Committee closely monitored 

the developments in this area throughout the 107th Congress and 

in particular after the events of September 11, 2001. 

Farm Credit Administration’s National Charter Initiative. Although the Committee took no direct oversight action on this topic, 

the Committee monitored the developments in this area throughout 

the 107th Congress. 

Reports of Inspectors General or Other Investigative Agencies. The 

Subcommittee on Oversight and Investigations cited reports from 

the HUD Inspector General in two hearings, discussed in more detail below. 

128

HOUSING ISSUES

Mortgage Finance Reform/Real Estate Settlement Procedures Act 

/Truth-in-Lending Act/Predatory Lending. The Committee held a 

hearing on HUD’s proposed RESPA rule on October 3, 2002. 

HUD Management Reform and Staffing. The Subcommittee on 

Housing and Community Development held a hearing on HUD’s 

proposed FY 2001 budget on April 26, 2001. The Subcommittee on 

Oversight and Investigations held a hearing on September 10, 2001 

on fraud in the single-family mortgage program. On December 4, 

2001, members of the Committee wrote to the chairman and ranking member of the Appropriations Committee in support of additional appropriations of $20 million to cure deficiencies in HUD’s 

Office of Multifamily Housing Assistance and Restructuring Technical Assistance. The Subcommittee on Housing and Community 

Opportunity held a hearing on HUD’s proposed FY 2002 budget on 

February 13, 2002. 

HUD-Related Reauthorizations. The Committee passed H.R. 

2589, the Office of Multifamily Housing Assistance Restructuring 

Extension Act of 2001, on July 25, 2001. The House passed the bill 

on September 24, 2001. The Senate did not consider the bill before 

the end of the session. Other HUD-related authorizations were incorporated into H.R. 3995, the Housing Affordability for America 

Act of 2002, which the Committee passed on July 10, 2002. No further action was taken on this measure in the 107th Congress. 

HUD Federal Housing Administration (FHA) Mutual Mortgage 

Insurance Fund Capital Ratio Standards. The Subcommittee on 

Housing and Community Opportunity held a hearing on this issue 

on March 20, 2001. 

Private Mortgage Insurance (PMI). Although the Committee took 

no direct oversight action on this topic, the Committee monitored 

the developments in this area throughout the 107th Congress. 

Real Estate Activities. The Subcommittee on Financial Institutions and Consumer Credit held a hearing on May 2, 2001, on the 

Federal Reserve Board and Treasury Department proposal to permit banks to offer certain real estate services. The Subcommittee 

held a hearing on July 24, 2002, on the Community Choice in Real 

Estate Act, H.R. 3424, which would have prohibited financial holding companies and national banks from engaging, directly or indirectly, in real estate brokerage or management services. The Committee took no action with respect to the bill before the end of the 

session. 

Minorities and Homeownership. This issue was considered during 

hearings on housing affordability on May 3, May 22, June 21, and 

July 17, 2001, and during hearings on H.R. 3995, the Housing Affordability for America Act of 2002, on April 10, 23, and 24, 2002. 

Flood Insurance. The Subcommittee on Housing and Community 

Opportunity held a hearing on the National Flood Insurance Program and repetitive loss properties on July 19, 2001. Further, the 

Committee considered the future of the program in connection with 

its consideration of H.R. 5005, the Homeland Security Act of 2002, 

which transferred the Federal Emergency Management Agency 

from its status as an independent executive-branch agency to an 

entity within the Department of Homeland Security. 

129

Catastrophic Insurance Protection. This issue was incorporated 

into hearings on the need for terrorism insurance on September 26 

and October 24, 2001, and on February 27, 2002. On January 16, 

2002, the Chairman asked GAO to conduct a review of the need for 

terrorism insurance, the findings of which were presented on February 27. H.R. 3210, the Terrorism Risk Insurance Act of 2002, 

was adopted by the Committee on November 7, 2001, passed the 

House on November 29, 2001, passed the Senate as S. 2600 on July 

25, 2002, and was signed into law as P.L. 107-297 on November 26, 

2002. 

Rural Housing Prepayment. Although the Committee took no direct oversight action on this topic, the Committee monitored the developments in this area throughout the 107th Congress. 

CDBG/HOME Oversight. The Subcommittee on Housing and 

Community Opportunity held a hearing on the CDBG program on 

March 14, 2002. The HOME program was an issue considered during the hearings on housing affordability in 2001 and 2002. 

Oversight of the Puerto Rico Public Housing Authority. Although 

the Committee took no direct oversight action on this topic, the 

Committee monitored the developments in this area throughout the 

107th Congress. 

Oversight of HUD’s Real Estate Assessment Center (REAC) and 

Public Housing Assessment System (PHAS). This issue was considered during hearings on HUD’s management and proposed budgets 

in 2001 and 2002. 

CURRENCY AND PAYMENT SYSTEM ISSUES

Electronic Commerce and Payment Systems. Although the Committee took no direct oversight action on this topic, the Committee 

monitored the developments in this area throughout the 107th 

Congress. 

Counterfeiting. The Subcommittee on Domestic Monetary Policy, 

Technonogy, and Economic Growth held a hearing on July 24, 

2001, on the design and security of currency. On March 19, 2002, 

the House passed H.R. 2509, The Bureau of Engraving and Printing Security Printing Amendments Act of 2002, sponsored by the 

Subcommittee on Domestic Monetary Policy, Technonogy, and Economic Growth Chairman. The legislation would have allowed the 

United States to produce currency, postage stamps, and other security documents at the request of foreign governments on a reimbursable basis. The Senate did not consider the bill before the end 

of the session. 

Dollar Coin. This issue was considered during the Subcommittee 

on Domestic Monetary Policy, Technonogy, and Economic Growth 

hearing on July 24, 2001. 

(131)

APPENDIX I—COMMITTEE LEGISLATION

This list includes: (1) bills reported by the Committee on Financial Services, (2) bills referred to, but not acted upon by, the Committee and enacted into law, and (3) bills refered to, but not acted 

upon by, the Committee and reported by another committee of jurisdiction.

Public laws and measures reported 

Public Law Rept. No. Bill Title 

H. Rept. 107-3* H.R. 333 Bankruptcy Abuse Prevention and Consumer Protection Act of 

2002

H. Rept. 107-339 H.R. 556 Leach-LaFalce Internet Gambling Enforcement Act 

H. Rept. 107-38 H.R. 974 Small Business Interest Checking Act of 2001

P.L. 107-123 H. Rept. 107-52 H.R. 1088 Investment and Capital Markets Fee Relief Act 

H. Rept. 107-192 H.R. 1408 Financial Services Antifraud Network Act of 2001

H. Rept. 107-590 H.R. 1701 Consumer Rental Purchase Agreement Act 

H. Rept. 107-147 H.R. 1850 Senior Housing Commission Extension Act of 2001

P.L. 107-24 H. Rept. 107-107* H.R. 1954 ILSA Extension Act of 2001

P.L. 107-245 H. Rept. 107-92* H.R. 5531; H.R. 

2052

Sudan Peace Act 

H. Rept. 107-199* H.R. 2368 Vietnam Human Rights Act 

P.L. 107-47 H. Rept. 107-173 H.R. 2510 Defense Production Act Amendments of 2001

H. Rept. 107-196 H.R. 2589 Office of Multifamily Housing Assistance Restructuring Extension Act of 2001

H. Rept. 107-291 H.R. 2604 To authorize the United States to participate in and contribute 

to the seventh replenishment of the resources of the Asian 

Development Fund and the fifth replenishment of the resources of the International Fund for Agricultural Development, and to set forth additional policies of the United 

States towards the African Development Bank, the African 

Development Fund, the Asian Development Bank, the InterAmerican Development Bank, and the European Bank for Reconstruction and Development. 

P.L. 107-73 * H.R. 2620; H.R. 

1629; H.R. 

1850

FHA Multifamily Mortgage Loan Limit Adjustment Act of 2001; 

Senior Housing Commission Extension Act of 2001

P.L. 107-95 H. Rept. 107-241* H.R. 2716 Homeless Veterans Comprehensive Assistance Act of 2001

P.L. 107-127 H.R. 2751 General Shelton Congressional Gold Medal Act 

P.L. 107-189 1 H. Rept. 107-292 H.R. 2871 Export-Import Bank Reauthorization Act of 2001

H. Rept. 107-448 H.R. 2941 Brownfields Redevelopment Enhancement Act 

P.L. 107-56 H. Rept. 107-250 H.R. 3162; H.R. 

3004

Financial Anti-Terrorism Act of 2001 (USA PATRIOT Act) 

H. Rept. 107-283 H.R. 3060 Emergency Securities Response Act of 2001

P.L. 107-297 H. Rept. 107-300 H.R. 3210 Terrorism Risk Protection Act 

H. Rept. 107-406* H.R. 3347 General Aviation Industry Reparations Act of 2002

P.L. 107-151 * H.R. 3699 To revise certain grants for continuum of care assistance for 

homeless individual and families 

H. Rept. 107-467 H.R. 3717 Federal Deposit Insurance Reform Act of 2002

H. Rept. 107-383* H.R. 3762 Pension Security Act of 2002

P.L. 107-204 H. Rept. 107-414 H.R. 3763 Sarbanes-Oxley Act of 2002

H. Rept. 107-415 H.R. 3764 Securities and Exchange Commission Authorization Act of 2002

H. Rept. 107-516 H.R. 3951 Financial Services Regulatory Relief Act of 2001

P.L. 107-156 * S. 2019; H.R. 

3987

To extend the authority of the Export-Import Bank through April 

30, 2002. 

H. Rept. 107-640 H.R. 3995 Housing Affordability For America Act of 2002

132

Public laws and measures reported—Continued

Public Law Rept. No. Bill Title 

P.L. 107-186 H.R. 4782 To extend the authority of the Export-Import Bank until June 14, 

2002

H. Rept. 107-609* H.R. 5005 Homeland Security Act of 2002

H. Rept. 107-720 H.R. 5400 To authorize the President of the United States to agree to certain amendments to the Agreement between the Government 

of the United States of America and the Government of the 

United Mexican States concerning the establishment of a 

Border Environment Cooperation Commission and a North 

American Development Bank, and for other purposes 

P.L. 107-245 H. Rept. 107-92* H.R. 5531; H.R. 

2052

Sudan Peace Act 

P.L. 107-99 H. Rept. 107-312* S. 494 Zimbabwe Democracy and Economic Recovery Act of 2001

P.L. 107-18 * S. 1029 To clarify the authority of the Department of Housing and 

Urban Development with respect to the use of fees during 

fiscal year 2001 for the manufactured housing program 

P.L. 107-156 * S. 2019; H.R. 

3987

To extend the authority of the Export-Import Bank through April 

30, 2002. 

P.L. 107-201 * S. 2594 2 Support of Eagle Silver Bullion Program Act 

* S. 1210 Native American Housing Assistance and Self-Determination 

Reauthroization Act of 2002

* S. 2239 FHA Downpayment Simplification Act of 2002

* Measure not reported by the Committee on Financial Services. 

1 Enacted bill was S. 1372. 

2 For prior House action, see H.R. 4971. 

(133)

APPENDIX II 

PART A

Hearings of the Committee on Financial Services 

Serial No. Hearing Title Hearing Date(s) 

107-1 Conduct of Monetary Policy (Full Committee) February 28, 2001

107-2 Protecting Consumers: What Can Congress Do to Help Financial Regulators Coordinate Efforts to Fight Fraud? (Subcommittee on Oversight and Investigations and 

Subcommittee on Financial Institutions and Consumer Credit) 

March 6, 2001

107-3 Saving Investors Money: Reducing Excessive SEC Fees (Subcommittee on Capital 

Markets, Insurance, and Government Sponsored Enterprises) 

March 7, 2001

107-4 Proposals to Permit Payment of Interest on Business Checking Accounts and Sterile 

Reserves Maintained at Federal Reserve Banks (Subcommittee on Financial Institutions and Consumer Credit) 

March 13, 2001

107-5 Public Access to Market Data: Improving Transparency and Competition (Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises) March 14, 2001

107-6 The Financial Health of the Federal Housing Administration (FHA) Single Family Mutual Mortgage Insurance Fund (Subcommittee on Housing and Community 

Opportuntity) 

March 20, 2001

107-7 Review of the Voluntary Agreement by Fannie Mae and Freddie Mac (Subcommittee 

on Capital Markets, Insurance, and Government Sponsored Enterprises) 

March 27, 2001

107-8 Beyond the Tax Cut: Unleashing the Economy (Subcommittee on Domesitic Monetary 

Policy, Technology, and Economic Growth) 

March 29, 2001

107-9 Promotion of Capital Availability to American Businesses (Subcommittee on Capital 

Markets, Insurance, and Government Sponsored Enterprises and the Subcommittee 

on Financial Institutions and Consumer Credit) 

April 4, 2001

107-10 U.S. Policy Towards the African Development Bank and the African Development Fund 

(Subcommittee on International Monetary Policy and Trade) 

April 25, 2001

107-11 The Budget of the Department of Housing and Urban Development (HUD) (Subcommittee on Housing and Community Opportunity) April 26, 2001

107-12 Federal Reserve Board and Treasury Department Rule Proposal (Subcommittee on Financial Institutions and Consumer Credit) May 2, 2001

107-13 Reauthorization of the Export-Import Bank (Subcommittee on International Monetary 

Policy and Trade) 

May 2 and 8, 2001

107-14 Housing Affordability Issues (Subcommittee on Housing and Community Opportunity) May 3, May 22, June 

21, and July 17, 

2001

107-15 World Bank and IMF Activities in Africa (Subcommittee on International Monetary Policy and Trade) May 15, 2001

107-16 Deposit Insurance Reform (Subcommittee on Financial Institutions and Consumer 

Credit) 

May 16, 2001

107-17 NARAB & Beyond (Subcommittee on Capital Markets, Insurance, and Government 

Sponsored Enterprises) 

May 16, 2001

107-18 Fair Disclosure or Flawed Disclosure: Is Reg FD Helping or Hurting Investors? (Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises) May 17, 2001

107-19 The State of the International Financial System and IMF Reform (Full Committee) May 22, 2001

107-20 CBO Report on Federal Subsidies for the Housing GSEs (Subcommittee on Capital 

Markets, Insurance, and Government Sponsored Enterprises) 

May 23, 2001

107-21 Inspector General’s Report on the Housing Authority of New Orleans (Subcommittee 

on Oversight and Investigations) 

June 4, 2001

107-22 Promotion of International Capital Flow through Accounting Standards (Subcommittee 

on Capital Markets, Insurance, and Government Sponsored Enterprises) 

June 7, 2001

107-23 FY 2002 Authorization Requests for International Programs (Subcommittee on International Monetary Policy and Trade) June 12, 2001

107-24 Reauthorization of the Defense Production Act of 1950 (Subcommittee on Domesitic 

Monetary Policy, Technology, and Economic Growth) 

June 13, 2001

134

Hearings of the Committee on Financial Services—Continued

Serial No. Hearing Title Hearing Date(s) 

107-25 Analyzing the Analysts (Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises) June 14 and July 31, 

2001

107-26 The California Energy Crisis: Causes, Impacts, and Remedies (Full Committee) June 20, 2001

107-27 Implementation of EFT Requirements (Subcommittee on Oversight and Investigations) June 20, 2001

107-28 Insurance Product Approval: The Need for Modernization (Subcommittee on Capital 

Markets, Insurance, and Government Sponsored Enterprises) 

June 21, 2001

107-29 The SEC’s Role in Capital Formation: Help or Hinderance? (Subcommittee on Oversight and Investigations) June 26, 2001

107-30 Trade in Financial Services: Current Issues and Future Developments (Subcommittee 

on International Monetary Policy and Trade) 

June 26, 2001

107-31 ESIGN: Encouraging the Use of Electronic Signatures in the Financial Services Industry (Subcommittee on Domestic Monetary Policy, Technology, and Economic Growth) June 28, 2001

107-32 Reforming Fannie Mae and Freddie Mac (Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises) July 11, 2001

107-33 H.R. 1701, the Consumer Rental Purchase Agreement Act (Subcommittee on Financial 

Institutions and Consumer Credit) 

July 12, 2001

107-34 Financial Aspects of Internet Gaming: Good Gamble or Bad Bet? (Subcommittee on 

Oversight and Investigations) 

July 12, 2001

107-35 Conduct of Monetary Policy (Full Committee) July 18, 2001

107-36 The National Flood Insurance Program and Repetitive Loss Properties (Subcommittee 

on Housing and Community Opportunity) 

July 19, 2001

107-37 H.R. 556, the Unlawful Internet Gambling Fundraising Prohibition Act and Other 

Internet Gambling Proposals (Subcommittee on Financial Institutions and Consumer Credit) 

July 24, 2001

107-38 Design and Security of Currency (Subcommittee on Domestic Monetary Policy, Technology, and Economic Growth) July 24, 2001

107-39 Viewpoints of Select Regulators on Deposit Insurance Reform (Subcommittee on Financial Institutions and Consumer Credit) July 26, 2001

107-40 Market Data: Implications to Investors (Subcommittee on Capital Markets, Insurance, 

and Government Sponsored Enterprises) 

July 26, 2001

107-41 OFHEO Risk-Based Capital Rule (Subcommittee on Capital Markets, Insurance, and 

Government Sponsored Enterprises) 

August 1, 2001

107-42 Over-Regulation of Automobile Insurance: A Lack of Consumer Choice (Subcommittee 

on Oversight and Investigations) 

August 1, 2001

107-43 Pushing Back the Pushouts: the SEC’s Broker-Dealer Rules (Subcommittee on Capital 

Markets, Insurance, and Government Sponsored Enterprises and the Subcommittee 

on Financial Institutions and Consumer Credit) 

August 2, 2001

107-44 The Section 203(k) Housing Program (Subcommittee on Oversight and Investigations) September 10, 2001

107-45 America’s Insurance Industry: Keeping the Promise (Full Committee) September 26, 2001

107-46 Dismantling the Financial Infrastructure of Global Terrorism (Full Committee) October 3, 2001

107-47 Viewpoints of the FDIC and Select Industry Experts on Deposit Insurance Reform 

(Subcommittee on Financial Institutions and Consumer Credit) 

October 17, 2001

107-48 Protecting Policyholders from Terrorism: Private Sector Solutions (Subcommittee on 

Capital Markets, Insurance, and Government Sponsored Enterprises) 

October 24, 2001

107-49 Giving Consumers Credit: How is the Credit Card Industry Treating its Customers? 

(Subcommittee on Financial Institutions and Consumer Credit) 

November 1, 2001

107-50 Preventing Identity Theft by Terrorists and Criminals (Subcommittee on Oversight and 

Investigations and Committee on Ways and Means Subcommittee on Social Security) 

November 8, 2001

107-51 

Part 1

The Enron Collapse: Impact on Investors and Financial Markets (Subcommittee on 

Capital Markets, Insurance, and Government Sponsored Enterprises and the Subcommittee on Oversight and Investigations) 

December 12, 2001

107-51 

Part 2

The Enron Collapse: Impact on Investors and Financial Markets (Subcommittee on 

Capital Markets, Insurance, and Government Sponsored Enterprises) 

February 4 and 5, 

2002

107-52 Argentina’s Economic Meltdown: Causes and Remedies (Subcommittee on International Monetary Policy and Trade) February 6 and March 

5, 2002

107-53 The PATRIOT Act Oversight: Investigationg Patterns of Terrorist Financing (Subcommittee on Oversight and Investigations) February 12, 2002

107-54 The Proposed Budget of the Department of Housing and Urban Development (Subcommittee on Housing and Community Opportunity) February 13, 2002

107-55 Retirement Protections: Fighting Fraud in the Sale of Death (Subcommittee on Oversight and Investigations) February 26, 2002

107-56 Conduct of Monetary Policy (Full Committee) February 27, 2002

135

Hearings of the Committee on Financial Services—Continued

Serial No. Hearing Title Hearing Date(s) 

107-57 How Much are Americans at Risk Until Congress Passes Terrorism Insurance Protection? (Subcommittee on Oversight and Investigations) February 27, 2002

107-58 The State of the International Financial System and IMF Reform (Full Committee) February 28, 2002

107-59 H.R. 2941, the Brownfields Redevelopment Enhancement Act (Subcommittee on Housing and Community Opportunity) March 6, 2002

107-60 H.R. 3763, the Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002 (Full Committee) March 13, 20, and 

April 9, 2002

107-61 Review of the Community Development Block Grant Program (Subcommittee on Housing and Community Opportunity) March 14, 2002

107-62 H.R. 3951—The Financial Services Regulatory Relief Act of 2002 (Subcommittee on 

Financial Institutions and Consumer Credit) 

March 14 and April 25, 

2002

107-63 The Effects of the Global Crossing Bankruptcy on Investors, Markets, and Employees 

(Subcommittee on Oversight and Investigations) 

March 21, 2002

107-64 H.R. 3995, the Housing Affordability for America Act of 2002 (Subcommittee on 

Housing and Community Opportunity) 

April 10, 23, and 24, 

2002

107-65 Review of the Current Status of Empowerment Zones and Renewal Communities 

(Subcommittee on Housing and Community Opportunity) 

April 10, 2002

107-66 Encouraging Capital Formation in Key Sectors of the Economy (Subcommittee on Domestic Monetary Policy, Technology, and Economic Growth) April 18, 2002

107-67 Corporate Accounting Practices: Is There a Credibility GAAP? (Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises) May 1 and 14, 2002

107-68 Proposed Changes to Both the World Bank-International Development Association and 

the North American Development Bank (Subcommittee on International Monetary 

Policy and Trade) 

May 2, 2002

107-69 Recovering Dictators’ Plunder (Subcommittee on Financial Institutions and Consumer 

Credit) 

May 9, 2002

107-70 European Union’s Financial Services Action Plan and its Implications for the American Financial Services Industry (Full Committe) May 22, 2002

107-71 One Broker Gone Bad: Punishing the Criminal, Making Victims Whole (Subcommittee 

on Oversight and Investigations) 

May 23, 2002

107-72* Insurance Regulation and Competition for the 21st Century (Subcommittee on Capital 

Markets, Insurance, and Government Sponsored Enterprises) 

June 4, 11, and 18, 

2002

107-73 Fighting Discrimination Against the Disabled and Minorities Through Fair Housing 

Enforcement (Subcommittee on Financial Institutions and Consumer Credit and 

the Subcommittee on Overisght and Investigations) 

June 25, 2002

107-74* Wrong Numbers: the Accounting Problems at WorldCom (Full Committee) July 8, 2002

107-75 Treasury’s Policy on Housing GSEs (Subcommittee on Capital Markets, Insurance, and 

Government Sponsored Enterprises) 

July 16, 2002

107-76* Conduct of Monetary Policy (Full Committee) July 17, 2002

107-77 Mold: A Growing Problem (Subcommittee on Oversight and Investigations and the 

Subcommittee on Housing and Community Opportunity) 

July 18, 2002

107-78* Expected Authorization Requests on the U.S. Participartion in the International Development Association and the African Development Fund (Subcommittee on International Monetary Policy and Trade) 

July 19 and 25, 2002

107-79 OFHEO Risk-Based Capital Stress Test for Fannie Mae and Freddie Mac (Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises) July 23, 2002

107-80* H.R. 3424, the Community Choice in Real Estate Act (Subcommittee on Financial Institutions and Consumer Credit) July 24, 2002

107-81* Erosion of Communities and Home Values by Leaking Underground Storage Tanks 

(Subcommittee on Housing and Community Opportunity) 

September 12, 2002

107-82* Technical Assistance and Capacity Building Programs to Promote Housing and Economic Development (Subcommittee on Housing and Community Opportunity) September 17, 2002

107-83* Terrorist Financing: A Progress Report on Implementation of the USA PATRIOT Act 

(Full Committee) 

September 19, 2002

107-84* H.R. 5414, the Check Clearing for the 21st Century Act (Subcommittee on Financial 

Institutions and Consumer Credit) 

September 25, 2002

107-85* Reforming the Real Estate Settlement Procedure: Review of HUD’s Proposed RESPA 

Rule (Full Committee) 

October 3, 2002

107-86* Catastrophe Bonds: Spreading Risk (Subcommittee on Oversight and Investigations) October 8, 2002

* Not yet in print. 

136

PART B

Committee Prints 

Serial No. Title 

107-A Rules of the Committee on Financial Services—Feburary 2001. (Full Committee.) 

107-B Compilation of Securities Laws—March 2001. (Full Committee.) 

107-C Compilation of Basic Banking Laws—May 2001. (Full Committee.) 

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