IB 

Union Calendar No. 253 

114TH CONGRESS 

1ST SESSION H. R. 3189 

[Report No. 114–332, Part I] 

To amend the Federal Reserve Act to establish requirements for policy rules 

and blackout periods of the Federal Open Market Committee, to establish 

requirements for certain activities of the Board of Governors of the 

Federal Reserve System, and to amend title 31, United States Code, 

to reform the manner in which the Board of Governors of the Federal 

Reserve System is audited, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 23, 2015 

Mr. HUIZENGA of Michigan introduced the following bill; which was referred 

to the Committee on Financial Services, and in addition to the Committee 

on Oversight and Government Reform, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

NOVEMBER 16, 2015 

Additional sponsors: Mr. EMMER of Minnesota, Mr. FINCHER, Mr. MESSER, 

Mr. WILLIAMS, Mr. STUTZMAN, Mr. GARRETT, Mr. MULVANEY, Mr. 

ROTHFUS, Mr. HULTGREN, Mr. GUINTA, Mr. MOONEY of West Virginia, 

Mr. ALLEN, Mr. BENISHEK, Mr. WEBER of Texas, Mr. WITTMAN, Mr. 

GOHMERT, Mr. GOSAR, Mr. FLORES, Mr. TIPTON, and Mr. PITTENGER

NOVEMBER 16, 2015 

Reported from the Committee on Financial Services with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

NOVEMBER 16, 2015 

The Committee on Oversight and Government Reform discharged; committed 

to the Committee of the Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on July 23, 2015] 

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A BILL 

To amend the Federal Reserve Act to establish requirements 

for policy rules and blackout periods of the Federal Open 

Market Committee, to establish requirements for certain 

activities of the Board of Governors of the Federal Reserve System, and to amend title 31, United States Code, 

to reform the manner in which the Board of Governors 

of the Federal Reserve System is audited, and for other 

purposes. 

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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the ‘‘Fed 

5 Oversight Reform and Modernization Act of 2015’’ or the 

6 ‘‘FORM Act of 2015’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Requirements for policy rules of the Federal Open Market Committee. 

Sec. 3. Federal Open Market Committee blackout period. 

Sec. 4. Membership of Federal Open Market Committee. 

Sec. 5. Requirements for stress tests and supervisory letters for the Board of Governors of the Federal Reserve System. 

Sec. 6. Frequency of testimony of the Chairman of the Board of Governors of the 

Federal Reserve System to Congress. 

Sec. 7. Vice Chairman for Supervision report requirement. 

Sec. 8. Economic analysis of regulations of the Board of Governors of the Federal 

Reserve System. 

Sec. 9. Salaries, financial disclosures, and office staff of the Board of Governors 

of the Federal Reserve System. 

Sec. 10. Requirements for international processes. 

Sec. 11. Amendments to powers of the Board of Governors of the Federal Reserve 

System. 

Sec. 12. Interest rates on balances maintained at a Federal Reserve bank by depository institutions established by Federal Open Market Committee. 

Sec. 13. Audit reform and transparency for the Board of Governors of the Federal 

Reserve System. 

9 SEC. 2. REQUIREMENTS FOR POLICY RULES OF THE FED10 ERAL OPEN MARKET COMMITTEE. 

11 The Federal Reserve Act (12 U.S.C. 221 et seq.) is 

12 amended by inserting after section 2B the following new 

13 section: 

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1 ‘‘SEC. 2C. DIRECTIVE POLICY RULES OF THE FEDERAL 

2 OPEN MARKET COMMITTEE. 

3 ‘‘(a) DEFINITIONS.—In this section the following defi4 nitions shall apply: 

5 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT6 TEES.—The term ‘appropriate congressional commit7 tees’ means the Committee on Financial Services of 

8 the House of Representatives and the Committee on 

9 Banking, Housing, and Urban Affairs of the Senate. 

10 ‘‘(2) DIRECTIVE POLICY RULE.—The term ‘Direc11 tive Policy Rule’ means a policy rule developed by the 

12 Federal Open Market Committee that meets the re13 quirements of subsection (c) and that provides the 

14 basis for the Open Market Operations Directive. 

15 ‘‘(3) GDP.—The term ‘GDP’ means the gross do16 mestic product of the United States as computed and 

17 published by the Department of Commerce. 

18 ‘‘(4) INTERMEDIATE POLICY INPUT.—The term 

19 ‘Intermediate Policy Input’— 

20 ‘‘(A) may include any variable determined 

21 by the Federal Open Market Committee as a nec22 essary input to guide open-market operations; 

23 ‘‘(B) shall include an estimate of, and the 

24 method of calculation for, the current rate of in25 flation or current inflation expectations; and 

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1 ‘‘(C) shall include, specifying whether the 

2 variable or estimate is historical, current, or a 

3 forecast and the method of calculation, at least 

4 one of— 

5 ‘‘(i) an estimate of real GDP, nominal 

6 GDP, or potential GDP; 

7 ‘‘(ii) an estimate of the monetary ag8 gregate compiled by the Board of Governors 

9 of the Federal Reserve System and Federal 

10 reserve banks; or 

11 ‘‘(iii) an interactive variable or a net 

12 estimate composed of the estimates described 

13 in clauses (i) and (ii). 

14 ‘‘(5) LEGISLATIVE DAY.—The term ‘legislative 

15 day’ means a day on which either House of Congress 

16 is in session. 

17 ‘‘(6) OPEN MARKET OPERATIONS DIRECTIVE.— 

18 The term ‘Open Market Operations Directive’ means 

19 an order to achieve a specified Policy Instrument 

20 Target provided to the Federal Reserve Bank of New 

21 York by the Federal Open Market Committee pursu22 ant to powers authorized under section 14 of this Act 

23 that guide open-market operations. 

24 ‘‘(7) POLICY INSTRUMENT.—The term ‘Policy In25 strument’ means— 

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1 ‘‘(A) the nominal Federal funds rate; 

2 ‘‘(B) the nominal rate of interest paid on 

3 nonborrowed reserves; or 

4 ‘‘(C) the discount window primary credit 

5 interest rate most recently published on the Fed6 eral Reserve Statistical Release on selected inter7 est rates (daily or weekly), commonly referred to 

8 as the H.15 release. 

9 ‘‘(8) POLICY INSTRUMENT TARGET.—The term 

10 ‘Policy Instrument Target’ means the target for the 

11 Policy Instrument specified in the Open Market Oper12 ations Directive. 

13 ‘‘(9) REFERENCE POLICY RULE.—The term ‘Ref14 erence Policy Rule’ means a calculation of the nomi15 nal Federal funds rate as equal to the sum of the fol16 lowing: 

17 ‘‘(A) The rate of inflation over the previous 

18 four quarters. 

19 ‘‘(B) One-half of the percentage deviation of 

20 the real GDP from an estimate of potential 

21 GDP. 

22 ‘‘(C) One-half of the difference between the 

23 rate of inflation over the previous four quarters 

24 and two percent. 

25 ‘‘(D) Two percent. 

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1 ‘‘(b) SUBMITTING A DIRECTIVE POLICY RULE.—Not 

2 later than 48 hours after the end of a meeting of the Federal 

3 Open Market Committee, the Chairman of the Federal Open 

4 Market Committee shall submit to the appropriate congres5 sional committees and the Comptroller General of the 

6 United States a Directive Policy Rule and a statement that 

7 identifies the members of the Federal Open Market Com8 mittee who voted in favor of the Rule. 

9 ‘‘(c) REQUIREMENTS FOR A DIRECTIVE POLICY

10 RULE.—A Directive Policy Rule shall— 

11 ‘‘(1) identify the Policy Instrument the Directive 

12 Policy Rule is designed to target; 

13 ‘‘(2) describe the strategy or rule of the Federal 

14 Open Market Committee for the systematic quan15 titative adjustment of the Policy Instrument Target to 

16 respond to a change in the Intermediate Policy In17 puts; 

18 ‘‘(3) include a function that comprehensively 

19 models the interactive relationship between the Inter20 mediate Policy Inputs; 

21 ‘‘(4) include the coefficients of the Directive Pol22 icy Rule that generate the current Policy Instrument 

23 Target and a range of predicted future values for the 

24 Policy Instrument Target if changes occur in any In25 termediate Policy Input; 

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1 ‘‘(5) describe the procedure for adjusting the sup2 ply of bank reserves to achieve the Policy Instrument 

3 Target; 

4 ‘‘(6) include a statement as to whether the Direc5 tive Policy Rule substantially conforms to the Ref6 erence Policy Rule and, if applicable— 

7 ‘‘(A) an explanation of the extent to which 

8 it departs from the Reference Policy Rule; 

9 ‘‘(B) a detailed justification for that depar10 ture; and 

11 ‘‘(C) a description of the circumstances 

12 under which the Directive Policy Rule may be 

13 amended in the future; 

14 ‘‘(7) include a certification that such Rule is ex15 pected to support the economy in achieving stable 

16 prices and maximum natural employment over the 

17 long term; and 

18 ‘‘(8) include a calculation that describes with 

19 mathematical precision the expected annual inflation 

20 rate over a 5-year period. 

21 ‘‘(d) GAO REPORT.—The Comptroller General of the 

22 United States shall compare the Directive Policy Rule sub23 mitted under subsection (b) with the rule that was most 

24 recently submitted to determine whether the Directive Pol25 icy Rule has materially changed. If the Directive Policy 

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1 Rule has materially changed, the Comptroller General shall, 

2 not later than 7 days after each meeting of the Federal Open 

3 Market Committee, prepare and submit a compliance report 

4 to the appropriate congressional committees specifying 

5 whether the Directive Policy Rule submitted after that meet6 ing and the Federal Open Market Committee are in compli7 ance with this section. 

8 ‘‘(e) CHANGING MARKET CONDITIONS.— 

9 ‘‘(1) RULE OF CONSTRUCTION.—Nothing in this 

10 Act shall be construed to require that the plans with 

11 respect to the systematic quantitative adjustment of 

12 the Policy Instrument Target described under sub13 section (c)(2) be implemented if the Federal Open 

14 Market Committee determines that such plans cannot 

15 or should not be achieved due to changing market con16 ditions. 

17 ‘‘(2) GAO APPROVAL OF UPDATE.—Upon deter18 mining that plans described in paragraph (1) cannot 

19 or should not be achieved, the Federal Open Market 

20 Committee shall submit an explanation for that deter21 mination and an updated version of the Directive 

22 Policy Rule to the Comptroller General of the United 

23 States and the appropriate congressional committees 

24 not later than 48 hours after making the determina25 tion. The Comptroller General shall, not later than 48 

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1 hours after receiving such updated version, prepare 

2 and submit to the appropriate congressional commit3 tees a compliance report determining whether such 

4 updated version and the Federal Open Market Com5 mittee are in compliance with this section. 

6 ‘‘(f) DIRECTIVE POLICY RULE AND FEDERAL OPEN

7 MARKET COMMITTEE NOT IN COMPLIANCE.— 

8 ‘‘(1) IN GENERAL.—If the Comptroller General of 

9 the United States determines that the Directive Policy 

10 Rule and the Federal Open Market Committee are not 

11 in compliance with this section in the report sub12 mitted pursuant to subsection (d), or that the updated 

13 version of the Directive Policy Rule and the Federal 

14 Open Market Committee are not in compliance with 

15 this section in the report submitted pursuant to sub16 section (e)(2), the Chairman of the Board of Gov17 ernors of the Federal Reserve System shall, if re18 quested by the chairman of either of the appropriate 

19 congressional committees, not later than 7 legislative 

20 days after such request, testify before such committee 

21 as to why the Directive Policy Rule, the updated 

22 version, or the Federal Open Market Committee is not 

23 in compliance. 

24 ‘‘(2) GAO AUDIT.—Notwithstanding subsection 

25 (b) of section 714 of title 31, United States Code, 

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1 upon submitting a report of noncompliance pursuant 

2 to subsection (d) or subsection (e)(2) and after the pe3 riod of 7 legislative days described in paragraph (1), 

4 the Comptroller General shall audit the conduct of 

5 monetary policy by the Board of Governors of the 

6 Federal Reserve System and the Federal Open Market 

7 Committee upon request of the appropriate congres8 sional committee. Such committee may specify the pa9 rameters of such audit. 

10 ‘‘(g) CONGRESSIONAL HEARINGS.—The Chairman of 

11 the Board of Governors of the Federal Reserve System shall, 

12 if requested by the chairman of either of the appropriate 

13 congressional committees and not later than 7 legislative 

14 days after such request, appear before such committee to ex15 plain any change to the Directive Policy Rule.’’. 

16 SEC. 3. FEDERAL OPEN MARKET COMMITTEE BLACKOUT PE17 RIOD. 

18 Section 12A of the Federal Reserve Act (12 U.S.C. 263) 

19 is amended by adding at the end the following new sub20 section: 

21 ‘‘(d) BLACKOUT PERIOD.— 

22 ‘‘(1) IN GENERAL.—During a blackout period, 

23 the only public communications that may be made by 

24 members and staff of the Committee with respect to 

25 macroeconomic or financial developments or about 

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1 current or prospective monetary policy issues are the 

2 following: 

3 ‘‘(A) The dissemination of published data, 

4 surveys, and reports that have been cleared for 

5 publication by the Board of Governors of the 

6 Federal Reserve System. 

7 ‘‘(B) Answers to technical questions specific 

8 to a data release. 

9 ‘‘(C) Communications with respect to the 

10 prudential or supervisory functions of the Board 

11 of Governors. 

12 ‘‘(2) BLACKOUT PERIOD DEFINED.—For pur13 poses of this subsection, and with respect to a meeting 

14 of the Committee described under subsection (a), the 

15 term ‘blackout period’ means the time period that— 

16 ‘‘(A) begins immediately after midnight on 

17 the day that is one week prior to the date on 

18 which such meeting takes place; and 

19 ‘‘(B) ends at midnight on the day after the 

20 date on which such meeting takes place. 

21 ‘‘(3) EXEMPTION FOR CHAIRMAN OF THE BOARD

22 OF GOVERNORS.—Nothing in this section shall pro23 hibit the Chairman of the Board of Governors of the 

24 Federal Reserve System from participating in or 

25 issuing public communications.’’. 

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1 SEC. 4. MEMBERSHIP OF FEDERAL OPEN MARKET COM2 MITTEE. 

3 Section 12A(a) of the Federal Reserve Act (12 U.S.C. 

4 263(a)) is amended— 

5 (1) in the first sentence, by striking ‘‘five’’ and 

6 inserting ‘‘six’’; 

7 (2) in the second sentence, by striking ‘‘One by 

8 the board of directors’’ and all that follows through 

9 the period at the end and inserting the following: 

10 ‘‘One by the boards of directors of the Federal Reserve 

11 Banks of New York and Boston; one by the boards of 

12 directors of the Federal Reserve Banks of Philadelphia 

13 and Cleveland; one by the boards of directors of the 

14 Federal Reserve Banks of Richmond and Atlanta; one 

15 by the boards of directors of the Federal Reserve 

16 Banks of Chicago and St. Louis; one by the boards of 

17 directors of the Federal Reserve Banks of Minneapolis 

18 and Kansas City; and one by the boards of directors 

19 of the Federal Reserve Banks of Dallas and San 

20 Francisco.’’; and 

21 (3) by inserting after the second sentence the fol22 lowing: ‘‘In odd numbered calendar years, one rep23 resentative shall be elected from each of the Federal 

24 Reserve Banks of Boston, Philadelphia, Richmond, 

25 Chicago, Minneapolis, and Dallas. In even-numbered 

26 calendar years, one representative shall be elected 

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1 from each of the Federal Reserve Banks of New York, 

2 Cleveland, Atlanta, St. Louis, Kansas City, and San 

3 Francisco.’’. 

4 SEC. 5. REQUIREMENTS FOR STRESS TESTS AND SUPER5 VISORY LETTERS FOR THE BOARD OF GOV6 ERNORS OF THE FEDERAL RESERVE SYSTEM. 

7 (a) STRESS TEST RULEMAKING, GAO REVIEW, AND

8 PUBLICATION OF RESULTS.—Section 165(i)(1)(B) of the 

9 Dodd-Frank Wall Street Reform and Consumer Protection 

10 Act (12 U.S.C. 5365(i)(1)(B)) is amended— 

11 (1) by amending clause (i) to read as follows: 

12 ‘‘(i) shall— 

13 ‘‘(I) issue regulations, after pro14 viding for public notice and comment, 

15 that provide for at least 3 different sets 

16 of conditions under which the evalua17 tion required by this subsection shall 

18 be conducted, including baseline, ad19 verse, and severely adverse, and meth20 odologies, including models used to es21 timate losses on certain assets; and 

22 ‘‘(II) provide copies of such regu23 lations to the Comptroller General of 

24 the United States and the Panel of 

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1 sional Budget Office before publishing 

2 such regulations;’’; and 

3 (2) in clause (v), by inserting before the period 

4 the following: ‘‘, including any results of a resub5 mitted test’’. 

6 (b) APPLICATION OF CCAR.—Section 165(i)(1) of such 

7 Act is further amended by adding at the end the following 

8 new subparagraph: 

9 ‘‘(C) APPLICATION TO CCAR.—The require10 ments of subparagraph (B) shall apply to all 

11 stress tests performed under the Comprehensive 

12 Capital Analysis and Review exercise established 

13 by the Board of Governors.’’. 

14 (c) PUBLICATION OF THE NUMBER OF SUPERVISORY

15 LETTERS SENT TO THE LARGEST BANK HOLDING COMPA16 NIES.—Section 165 of such Act is further amended by add17 ing at the end the following new subsection: 

18 ‘‘(l) PUBLICATION OF SUPERVISORY LETTER INFOR19 MATION.—The Board of Governors shall publicly disclose— 

20 ‘‘(1) the aggregate number of supervisory letters 

21 sent to bank holding companies described in sub22 section (a) since the date of the enactment of this sec23 tion, and keep such number updated; and 

24 ‘‘(2) the aggregate number of such letters that are 

25 designated as ‘Matters Requiring Attention’ and the 

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1 aggregate number of such letters that are designated 

2 as ‘Matters Requiring Immediate Attention’.’’. 

3 SEC. 6. FREQUENCY OF TESTIMONY OF THE CHAIRMAN OF 

4 THE BOARD OF GOVERNORS OF THE FED5 ERAL RESERVE SYSTEM TO CONGRESS. 

6 (a) IN GENERAL.—Section 2B of the Federal Reserve 

7 Act (12 U.S.C. 225b) is amended— 

8 (1) by striking ‘‘semi-annual’’ each place it ap9 pears and inserting ‘‘quarterly’’; and 

10 (2) in subsection (a)(2)— 

11 (A) by inserting ‘‘and October 20’’ after 

12 ‘‘July 20’’ each place it appears; and 

13 (B) by inserting ‘‘and May 20’’ after ‘‘Feb14 ruary 20’’ each place it appears. 

15 (b) CONFORMING AMENDMENT.—Paragraph (12) of 

16 section 10 of the Federal Reserve Act (12 U.S.C. 247b(12)) 

17 is amended by striking ‘‘semi-annual’’ and inserting ‘‘quar18 terly’’. 

19 SEC. 7. VICE CHAIRMAN FOR SUPERVISION REPORT RE20 QUIREMENT. 

21 Paragraph (12) of section 10 of the Federal Reserve 

22 Act (12 U.S.C. 247(b)) is amended— 

23 (1) by redesignating such paragraph as para24 graph (11); and 

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1 (2) in such paragraph, by adding at the end the 

2 following: ‘‘In each such appearance, the Vice Chair3 man for Supervision shall provide written testimony 

4 that includes the status of all pending and antici5 pated rulemakings that are being made by the Board 

6 of Governors of the Federal Reserve System. If, at the 

7 time of any appearance described in this paragraph, 

8 the position of Vice Chairman for Supervision is va9 cant, the Vice Chairman for the Board of Governors 

10 of the Federal Reserve System (who has the responsi11 bility to serve in the absence of the Chairman) shall 

12 appear instead and provide the required written testi13 mony. If, at the time of any appearance described in 

14 this paragraph, both Vice Chairman positions are va15 cant, the Chairman of the Board of Governors of the 

16 Federal Reserve System shall appear instead and pro17 vide the required written testimony.’’. 

18 SEC. 8. ECONOMIC ANALYSIS OF REGULATIONS OF THE 

19 BOARD OF GOVERNORS OF THE FEDERAL RE20 SERVE SYSTEM. 

21 (a) AMENDMENT TO FEDERAL RESERVE ACT.—Sec22 tion 11 of the Federal Reserve Act (12 U.S.C. 248) is 

23 amended by inserting after subsection (l) the following new 

24 subsection: 

25 ‘‘(m) CONSIDERATION OF ECONOMIC IMPACTS.— 

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1 ‘‘(1) IN GENERAL.—Before issuing any regula2 tion, the Board of Governors of the Federal Reserve 

3 System shall— 

4 ‘‘(A) clearly identify the nature and source 

5 of the problem that the proposed regulation is de6 signed to address and assess the significance of 

7 that problem; 

8 ‘‘(B) assess whether any new regulation is 

9 warranted or, with respect to a proposed regula10 tion that the Board of Governors is required to 

11 issue by statute and with respect to which the 

12 Board has the authority to exempt certain per13 sons from the application of such regulation, 

14 compare— 

15 ‘‘(i) the costs and benefits of the pro16 posed regulation; and 

17 ‘‘(ii) the costs and benefits of a regula18 tion under which the Board exempts all 

19 persons from the application of the proposed 

20 regulation, to the extent the Board is able; 

21 ‘‘(C) assess the qualitative and quantitative 

22 costs and benefits of the proposed regulation and 

23 propose or adopt a regulation only on a reasoned 

24 determination that the benefits of the proposed 

25 regulation outweigh the costs of the regulation; 

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1 ‘‘(D) identify and assess available alter2 natives to the proposed regulation that were con3 sidered, including any alternative offered by a 

4 member of the Board of Governors of the Federal 

5 Reserve System or the Federal Open Market 

6 Committee and including any modification of an 

7 existing regulation, together with an explanation 

8 of why the regulation meets the regulatory objec9 tives more effectively than the alternatives; and 

10 ‘‘(E) ensure that any proposed regulation is 

11 accessible, consistent, written in plain language, 

12 and easy to understand and shall measure, and 

13 seek to improve, the actual results of regulatory 

14 requirements. 

15 ‘‘(2) CONSIDERATIONS AND ACTIONS.— 

16 ‘‘(A) REQUIRED ACTIONS.—In deciding 

17 whether and how to regulate, the Board shall as18 sess the costs and benefits of available regulatory 

19 alternatives, including the alternative of not reg20 ulating, and choose the approach that maximizes 

21 net benefits. Specifically, the Board shall— 

22 ‘‘(i) evaluate whether, consistent with 

23 achieving regulatory objectives, the regula24 tion is tailored to impose the least impact 

25 on the availability of credit and economic 

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1 growth and to impose the least burden on 

2 society, including market participants, in3 dividuals, businesses of different sizes, and 

4 other entities (including State and local 

5 governmental entities), taking into account, 

6 to the extent practicable, the cumulative 

7 costs of regulations; 

8 ‘‘(ii) evaluate whether the regulation is 

9 inconsistent, incompatible, or duplicative of 

10 other Federal regulations; and 

11 ‘‘(iii) with respect to a proposed regu12 lation that the Board is required to issue by 

13 statute and with respect to which the Board 

14 has the authority to exempt certain persons 

15 from the application of such regulation, 

16 compare— 

17 ‘‘(I) the costs and benefits of the 

18 proposed regulation; and 

19 ‘‘(II) the costs and benefits of a 

20 regulation under which the Board ex21 empts all persons from the application 

22 of the proposed regulation, to the extent 

23 the Board is able. 

24 ‘‘(B) ADDITIONAL CONSIDERATIONS.—In 

25 addition, in making a reasoned determination of 

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1 the costs and benefits of a proposed regulation, 

2 the Board shall, to the extent that each is rel3 evant to the particular proposed regulation, take 

4 into consideration the impact of the regulation, 

5 including secondary costs such as an increase in 

6 the cost or a reduction in the availability of 

7 credit or investment services or products, on— 

8 ‘‘(i) the safety and soundness of the 

9 United States banking system; 

10 ‘‘(ii) market liquidity in securities 

11 markets; 

12 ‘‘(iii) small businesses; 

13 ‘‘(iv) community banks; 

14 ‘‘(v) economic growth; 

15 ‘‘(vi) cost and access to capital; 

16 ‘‘(vii) market stability; 

17 ‘‘(viii) global competitiveness; 

18 ‘‘(ix) job creation; 

19 ‘‘(x) the effectiveness of the monetary 

20 policy transmission mechanism; and 

21 ‘‘(xi) employment levels. 

22 ‘‘(3) EXPLANATION AND COMMENTS.—The Board 

23 shall explain in its final rule the nature of comments 

24 that it received and shall provide a response to those 

25 comments in its final rule, including an explanation 

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1 of any changes that were made in response to those 

2 comments and the reasons that the Board did not in3 corporate concerns related to the potential costs or 

4 benefits in the final rule. 

5 ‘‘(4) POSTADOPTION IMPACT ASSESSMENT.— 

6 ‘‘(A) IN GENERAL.—Whenever the Board 

7 adopts or amends a regulation designated as a 

8 ‘major rule’ within the meaning of section 

9 804(2) of title 5, United States Code, it shall 

10 state, in its adopting release, the following: 

11 ‘‘(i) The purposes and intended con12 sequences of the regulation. 

13 ‘‘(ii) The assessment plan that will be 

14 used, consistent with the requirements of 

15 subparagraph (B), to assess whether the reg16 ulation has achieved the stated purposes. 

17 ‘‘(iii) Appropriate postimplementation 

18 quantitative and qualitative metrics to 

19 measure the economic impact of the regula20 tion and the extent to which the regulation 

21 has accomplished the stated purpose of the 

22 regulation. 

23 ‘‘(iv) Any reasonably foreseeable indi24 rect effects that may result from the regula25 tion. 

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1 ‘‘(B) REQUIREMENTS OF ASSESSMENT PLAN

2 AND REPORT.— 

3 ‘‘(i) REQUIREMENTS OF PLAN.—The 

4 assessment plan required under this para5 graph shall consider the costs, benefits, and 

6 intended and unintended consequences of 

7 the regulation. The plan shall specify the 

8 data to be collected, the methods for collec9 tion and analysis of the data, and a date 

10 for completion of the assessment. The assess11 ment plan shall include an analysis of any 

12 jobs added or lost as a result of the regula13 tion, differentiating between public and pri14 vate sector jobs. 

15 ‘‘(ii) SUBMISSION AND PUBLICATION

16 OF REPORT.—The Board shall, not later 

17 than 2 years after the publication of the 

18 adopting release, publish the assessment 

19 plan in the Federal Register for notice and 

20 comment. If the Board determines, at least 

21 90 days before the deadline for publication 

22 of the assessment plan, that an extension is 

23 necessary, the Board shall publish a notice 

24 of such extension and the specific reasons 

25 why the extension is necessary in the Fedmstockstill on DSK4VPTVN1PROD with BILLS

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1 eral Register. Any material modification of 

2 the assessment plan, as necessary to assess 

3 unforeseen aspects or consequences of the 

4 regulation, shall be promptly published in 

5 the Federal Register for notice and com6 ment. 

7 ‘‘(iii) DATA COLLECTION NOT SUBJECT

8 TO NOTICE AND COMMENT REQUIRE9 MENTS.—If the Board has published the as10 sessment plan for notice and comment at 

11 least 30 days before the adoption of a regu12 lation designated as a major rule, the collec13 tion of data under the assessment plan shall 

14 not be subject to the notice and comment re15 quirements in section 3506(c) of title 44, 

16 United States Code (commonly referred to 

17 as the Paperwork Reduction Act). Any ma18 terial modification of the plan that requires 

19 collection of data not previously published 

20 for notice and comment shall also be exempt 

21 from such requirements if the Board has 

22 published notice in the Federal Register for 

23 comment on the additional data to be col24 lected, at least 30 days before the initiation 

25 of data collection. 

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1 ‘‘(iv) FINAL ACTION.—Not later than 

2 180 days after publication of the assessment 

3 plan in the Federal Register, the Board 

4 shall issue for notice and comment a pro5 posal to amend or rescind the regulation, or 

6 shall publish a notice that the Board has 

7 determined that no action will be taken on 

8 the regulation. Such a notice will be deemed 

9 a final agency action. 

10 ‘‘(5) COVERED REGULATIONS AND OTHER AC11 TIONS.—Solely as used in this subsection, the term 

12 ‘regulation’— 

13 ‘‘(A) means a statement of general applica14 bility and future effect that is designed to imple15 ment, interpret, or prescribe law or policy, or to 

16 describe the procedure or practice requirements 

17 of the Board of Governors, including rules, or18 ders of general applicability, interpretive re19 leases, and other statements of general applica20 bility that the Board of Governors intends to 

21 have the force and effect of law; and 

22 ‘‘(B) does not include— 

23 ‘‘(i) a regulation issued in accordance 

24 with the formal rulemaking provisions of 

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1 section 556 or 557 of title 5, United States 

2 Code; 

3 ‘‘(ii) a regulation that is limited to the 

4 organization, management, or personnel 

5 matters of the Board of Governors; 

6 ‘‘(iii) a regulation promulgated pursu7 ant to statutory authority that expressly 

8 prohibits compliance with this provision; or 

9 ‘‘(iv) a regulation that is certified by 

10 the Board of Governors to be an emergency 

11 action, if such certification is published in 

12 the Federal Register.’’. 

13 (b) RULE OF CONSTRUCTION.—Nothing in this section 

14 shall apply to the requirements regarding the conduct of 

15 monetary policy described in section 2. 

16 SEC. 9. SALARIES, FINANCIAL DISCLOSURES, AND OFFICE 

17 STAFF OF THE BOARD OF GOVERNORS OF 

18 THE FEDERAL RESERVE SYSTEM. 

19 (a) IN GENERAL.—Section 11 of the Federal Reserve 

20 Act (12 U.S.C. 248) is amended— 

21 (1) by redesignating the second subsection (s) 

22 (relating to ‘‘Assessments, Fees, and Other Charges for 

23 Certain Companies’’) as subsection (t); and 

24 (2) by adding at the end the following new sub25 sections: 

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1 ‘‘(u) ETHICS STANDARDS FOR MEMBERS AND EM2 PLOYEES.— 

3 ‘‘(1) PROHIBITED AND RESTRICTED FINANCIAL

4 INTERESTS AND TRANSACTIONS.—The members and 

5 employees of the Board of Governors of the Federal 

6 Reserve System shall be subject to the provisions 

7 under section 4401.102 of title 5, Code of Federal 

8 Regulations, to the same extent as such provisions 

9 apply to an employee of the Securities and Exchange 

10 Commission. 

11 ‘‘(2) TREATMENT OF BROKERAGE ACCOUNTS AND

12 AVAILABILITY OF ACCOUNT STATEMENTS.—The mem13 bers and employees of the Board of Governors of the 

14 Federal Reserve System shall— 

15 ‘‘(A) disclose all brokerage accounts that 

16 they maintain, as well as those in which they 

17 control trading or have a financial interest (in18 cluding managed accounts, trust accounts, in19 vestment club accounts, and the accounts of 

20 spouses or minor children who live with the 

21 member or employee); and 

22 ‘‘(B) with respect to any securities account 

23 that the member or employee is required to dis24 close to the Board of Governors, authorize their 

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1 brokers and dealers to send duplicate account 

2 statements directly to Board of Governors. 

3 ‘‘(3) PROHIBITIONS RELATED TO OUTSIDE EM4 PLOYMENT AND ACTIVITIES.—The members and em5 ployees of the Board of Governors of the Federal Re6 serve System shall be subject to the prohibitions re7 lated to outside employment and activities described 

8 under section 4401.103(c) of title 5, Code of Federal 

9 Regulations, to the same extent as such prohibitions 

10 apply to an employee of the Securities and Exchange 

11 Commission. 

12 ‘‘(4) ADDITIONAL ETHICS STANDARDS.—The 

13 members and employees of the Board of Governors of 

14 the Federal Reserve System shall be subject to— 

15 ‘‘(A) the employee responsibilities and con16 duct regulations of the Office of Personnel Man17 agement under part 735 of title 5, Code of Fed18 eral Regulations; 

19 ‘‘(B) the canons of ethics contained in sub20 part C of part 200 of title 17, Code of Federal 

21 Regulations, to the same extent as such subpart 

22 applies to the employees of the Securities and 

23 Exchange Commission; and 

24 ‘‘(C) the regulations concerning the conduct 

25 of members and employees and former members 

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1 and employees contained in subpart M of part 

2 200 of title 17, Code of Federal Regulations, to 

3 the same extent as such subpart applies to the 

4 employees of the Securities and Exchange Com5 mission. 

6 ‘‘(v) DISCLOSURE OF STAFF SALARIES AND FINANCIAL

7 INFORMATION.—The Board of Governors of the Federal Re8 serve System shall make publicly available, on the website 

9 of the Board of Governors, a searchable database that con10 tains the names of all members, officers, and employees of 

11 the Board of Governors who receive an annual salary in 

12 excess of the annual rate of basic pay for GS–15 of the Gen13 eral Schedule, and— 

14 ‘‘(1) the yearly salary information for such indi15 viduals, along with any nonsalary compensation re16 ceived by such individuals; and 

17 ‘‘(2) any financial disclosures required to be 

18 made by such individuals.’’. 

19 (b) OFFICE STAFF FOR EACH MEMBER OF THE BOARD

20 OF GOVERNORS.—Subsection (l) of section 11 of the Federal 

21 Reserve Act (12 U.S.C. 248) is amended by adding at the 

22 end the following: ‘‘Each member of the Board of Governors 

23 of the Federal Reserve System may employ, at a minimum, 

24 2 individuals, with such individuals selected by such mem25 ber and the salaries of such individuals set by such member. 

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1 A member may employ additional individuals as deter2 mined necessary by the Board of Governors.’’. 

3 SEC. 10. REQUIREMENTS FOR INTERNATIONAL PROCESSES. 

4 (a) BOARD OF GOVERNORS REQUIREMENTS.—Section 

5 11 of the Federal Reserve Act (12 U.S.C. 248), as amended 

6 by section 9 of this Act, is further amended by adding at 

7 the end the following new subsection: 

8 ‘‘(w) INTERNATIONAL PROCESSES.— 

9 ‘‘(1) NOTICE OF PROCESS; CONSULTATION.—At 

10 least 30 calendar days before any member or em11 ployee of the Board of Governors of the Federal Re12 serve System participates in a process of setting fi13 nancial standards as a part of any foreign or multi14 national entity, the Board of Governors shall— 

15 ‘‘(A) issue a notice of the process, including 

16 the subject matter, scope, and goals of the proc17 ess, to the Committee on Financial Services of 

18 the House of Representatives and the Committee 

19 on Banking, Housing, and Urban Affairs of the 

20 Senate; 

21 ‘‘(B) make such notice available to the pub22 lic, including on the website of the Board of Gov23 ernors; and 

24 ‘‘(C) solicit public comment, and consult 

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1 graph (A), with respect to the subject matter, 

2 scope, and goals of the process. 

3 ‘‘(2) PUBLIC REPORTS ON PROCESS.—After the 

4 end of any process described under paragraph (1), the 

5 Board of Governors shall issue a public report on the 

6 topics that were discussed during the process and any 

7 new or revised rulemakings or policy changes that the 

8 Board of Governors believes should be implemented as 

9 a result of the process. 

10 ‘‘(3) NOTICE OF AGREEMENTS; CONSULTATION.— 

11 At least 90 calendar days before any member or em12 ployee of the Board of Governors of the Federal Re13 serve System participates in a process of setting fi14 nancial standards as a part of any foreign or multi15 national entity, the Board of Governors shall— 

16 ‘‘(A) issue a notice of agreement to the Com17 mittee on Financial Services of the House of 

18 Representatives and the Committee on Banking, 

19 Housing, and Urban Affairs of the Senate; 

20 ‘‘(B) make such notice available to the pub21 lic, including on the website of the Board of Gov22 ernors; and 

23 ‘‘(C) consult with the committees described 

24 under subparagraph (A) with respect to the namstockstill on DSK4VPTVN1PROD with BILLS

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1 ture of the agreement and any anticipated effects 

2 such agreement will have on the economy. 

3 ‘‘(4) DEFINITION.—For purposes of this sub4 section, the term ‘process’ shall include any official 

5 proceeding or meeting on financial regulation of a 

6 recognized international organization with authority 

7 to set financial standards on a global or regional 

8 level, including the Financial Stability Board, the 

9 Basel Committee on Banking Supervision (or a simi10 lar organization), and the International Association 

11 of Insurance Supervisors (or a similar organiza12 tion).’’. 

13 (b) FDIC REQUIREMENTS.—The Federal Deposit In14 surance Act (12 U.S.C. 1811 et seq.) is amended by adding 

15 at the end the following new section: 

16 ‘‘SEC. 51. INTERNATIONAL PROCESSES. 

17 ‘‘(a) NOTICE OF PROCESS; CONSULTATION.—At least 

18 30 calendar days before the Board of Directors participates 

19 in a process of setting financial standards as a part of any 

20 foreign or multinational entity, the Board of Directors 

21 shall— 

22 ‘‘(1) issue a notice of the process, including the 

23 subject matter, scope, and goals of the process, to the 

24 Committee on Financial Services of the House of Repmstockstill on DSK4VPTVN1PROD with BILLS

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1 resentatives and the Committee on Banking, Housing, 

2 and Urban Affairs of the Senate; 

3 ‘‘(2) make such notice available to the public, in4 cluding on the website of the Corporation; and 

5 ‘‘(3) solicit public comment, and consult with the 

6 committees described under paragraph (1), with re7 spect to the subject matter, scope, and goals of the 

8 process. 

9 ‘‘(b) PUBLIC REPORTS ON PROCESS.—After the end of 

10 any process described under subsection (a), the Board of 

11 Directors shall issue a public report on the topics that were 

12 discussed at the process and any new or revised rulemakings 

13 or policy changes that the Board of Directors believes should 

14 be implemented as a result of the process. 

15 ‘‘(c) NOTICE OF AGREEMENTS; CONSULTATION.—At 

16 least 90 calendar days before the Board of Directors partici17 pates in a process of setting financial standards as a part 

18 of any foreign or multinational entity, the Board of Direc19 tors shall— 

20 ‘‘(1) issue a notice of agreement to the Committee 

21 on Financial Services of the House of Representatives 

22 and the Committee on Banking, Housing, and Urban 

23 Affairs of the Senate; 

24 ‘‘(2) make such notice available to the public, in25 cluding on the website of the Corporation; and 

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1 ‘‘(3) consult with the committees described under 

2 paragraph (1) with respect to the nature of the agree3 ment and any anticipated effects such agreement will 

4 have on the economy. 

5 ‘‘(d) DEFINITION.—For purposes of this section, the 

6 term ‘process’ shall include any official proceeding or meet7 ing on financial regulation of a recognized international 

8 organization with authority to set financial standards on 

9 a global or regional level, including the Financial Stability 

10 Board, the Basel Committee on Banking Supervision (or 

11 a similar organization), and the International Association 

12 of Insurance Supervisors (or a similar organization).’’. 

13 (c) TREASURY REQUIREMENTS.—Section 325 of title 

14 31, United States Code, is amended by adding at the end 

15 the following new subsection: 

16 ‘‘(d) INTERNATIONAL PROCESSES.— 

17 ‘‘(1) NOTICE OF PROCESS; CONSULTATION.—At 

18 least 30 calendar days before the Secretary partici19 pates in a process of setting financial standards as a 

20 part of any foreign or multinational entity, the Sec21 retary shall— 

22 ‘‘(A) issue a notice of the process, including 

23 the subject matter, scope, and goals of the proc24 ess, to the Committee on Financial Services of 

25 the House of Representatives and the Committee 

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1 on Banking, Housing, and Urban Affairs of the 

2 Senate; 

3 ‘‘(B) make such notice available to the pub4 lic, including on the website of the Department 

5 of the Treasury; and 

6 ‘‘(C) solicit public comment, and consult 

7 with the committees described under subpara8 graph (A), with respect to the subject matter, 

9 scope, and goals of the process. 

10 ‘‘(2) PUBLIC REPORTS ON PROCESS.—After the 

11 end of any process described under paragraph (1), the 

12 Secretary shall issue a public report on the topics 

13 that were discussed at the process and any new or re14 vised rulemakings or policy changes that the Sec15 retary believes should be implemented as a result of 

16 the process. 

17 ‘‘(3) NOTICE OF AGREEMENTS; CONSULTATION.— 

18 At least 90 calendar days before the Secretary partici19 pates in a process of setting financial standards as a 

20 part of any foreign or multinational entity, the Sec21 retary shall— 

22 ‘‘(A) issue a notice of agreement to the Com23 mittee on Financial Services of the House of 

24 Representatives and the Committee on Banking, 

25 Housing, and Urban Affairs of the Senate; 

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1 ‘‘(B) make such notice available to the pub2 lic, including on the website of the Department 

3 of the Treasury; and 

4 ‘‘(C) consult with the committees described 

5 under subparagraph (A) with respect to the na6 ture of the agreement and any anticipated effects 

7 such agreement will have on the economy. 

8 ‘‘(4) DEFINITION.—For purposes of this sub9 section, the term ‘process’ shall include any official 

10 proceeding or meeting on financial regulation of a 

11 recognized international organization with authority 

12 to set financial standards on a global or regional 

13 level, including the Financial Stability Board, the 

14 Basel Committee on Banking Supervision (or a simi15 lar organization), and the International Association 

16 of Insurance Supervisors (or a similar organiza17 tion).’’. 

18 (d) OCC REQUIREMENTS.—Chapter 1 of title LXII of 

19 the Revised Statutes of the United States (12 U.S.C. 21 et 

20 seq.) is amended— 

21 (1) by adding at the end the following new sec22 tion: 

23 ‘‘SEC. 5156B. INTERNATIONAL PROCESSES. 

24 ‘‘(a) NOTICE OF PROCESS; CONSULTATION.—At least 

25 30 calendar days before the Comptroller of the Currency 

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1 participates in a process of setting financial standards as 

2 a part of any foreign or multinational entity, the Comp3 troller of the Currency shall— 

4 ‘‘(1) issue a notice of the process, including the 

5 subject matter, scope, and goals of the process, to the 

6 Committee on Financial Services of the House of Rep7 resentatives and the Committee on Banking, Housing, 

8 and Urban Affairs of the Senate; 

9 ‘‘(2) make such notice available to the public, in10 cluding on the website of the Office of the Comptroller 

11 of the Currency; and 

12 ‘‘(3) solicit public comment, and consult with the 

13 committees described under paragraph (1), with re14 spect to the subject matter, scope, and goals of the 

15 process. 

16 ‘‘(b) PUBLIC REPORTS ON PROCESS.—After the end of 

17 any process described under subsection (a), the Comptroller 

18 of the Currency shall issue a public report on the topics 

19 that were discussed at the process and any new or revised 

20 rulemakings or policy changes that the Comptroller of the 

21 Currency believes should be implemented as a result of the 

22 process. 

23 ‘‘(c) NOTICE OF AGREEMENTS; CONSULTATION.—At 

24 least 90 calendar days before the Comptroller of the Cur25 rency participates in a process of setting financial standmstockstill on DSK4VPTVN1PROD with BILLS

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1 ards as a part of any foreign or multinational entity, the 

2 Board of Directors shall— 

3 ‘‘(1) issue a notice of agreement to the Committee 

4 on Financial Services of the House of Representatives 

5 and the Committee on Banking, Housing, and Urban 

6 Affairs of the Senate; 

7 ‘‘(2) make such notice available to the public, in8 cluding on the website of the Office of the Comptroller 

9 of the Currency; and 

10 ‘‘(3) consult with the committees described under 

11 paragraph (1) with respect to the nature of the agree12 ment and any anticipated effects such agreement will 

13 have on the economy. 

14 ‘‘(d) DEFINITION.—For purposes of this section, the 

15 term ‘process’ shall include any official proceeding or meet16 ing on financial regulation of a recognized international 

17 organization with authority to set financial standards on 

18 a global or regional level, including the Financial Stability 

19 Board, the Basel Committee on Banking Supervision (or 

20 a similar organization), and the International Association 

21 of Insurance Supervisors (or a similar organization).’’; and 

22 (2) in the table of contents for such chapter, by 

23 adding at the end the following new item: 

‘‘5156B. International processes.’’. 

24 (e) SECURITIES AND EXCHANGE COMMISSION RE25 QUIREMENTS.—Section 4 of the Securities Exchange Act of 

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1 1934 (15 U.S.C. 78d) is amended by adding at the end the 

2 following new subsection: 

3 ‘‘(j) INTERNATIONAL PROCESSES.— 

4 ‘‘(1) NOTICE OF PROCESS; CONSULTATION.—At 

5 least 30 calendar days before the Commission partici6 pates in a process of setting financial standards as a 

7 part of any foreign or multinational entity, the Com8 mission shall— 

9 ‘‘(A) issue a notice of the process, including 

10 the subject matter, scope, and goals of the proc11 ess, to the Committee on Financial Services of 

12 the House of Representatives and the Committee 

13 on Banking, Housing, and Urban Affairs of the 

14 Senate; 

15 ‘‘(B) make such notice available to the pub16 lic, including on the website of the Commission; 

17 and 

18 ‘‘(C) solicit public comment, and consult 

19 with the committees described under subpara20 graph (A), with respect to the subject matter, 

21 scope, and goals of the process. 

22 ‘‘(2) PUBLIC REPORTS ON PROCESS.—After the 

23 end of any process described under paragraph (1), the 

24 Commission shall issue a public report on the topics 

25 that were discussed at the process and any new or remstockstill on DSK4VPTVN1PROD with BILLS

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1 vised rulemakings or policy changes that the Commis2 sion believes should be implemented as a result of the 

3 process. 

4 ‘‘(3) NOTICE OF AGREEMENTS; CONSULTATION.— 

5 At least 90 calendar days before the Commission par6 ticipates in a process of setting financial standards as 

7 a part of any foreign or multinational entity, the 

8 Commission shall— 

9 ‘‘(A) issue a notice of agreement to the Com10 mittee on Financial Services of the House of 

11 Representatives and the Committee on Banking, 

12 Housing, and Urban Affairs of the Senate; 

13 ‘‘(B) make such notice available to the pub14 lic, including on the website of the Commission; 

15 and 

16 ‘‘(C) consult with the committees described 

17 under subparagraph (A) with respect to the na18 ture of the agreement and any anticipated effects 

19 such agreement will have on the economy. 

20 ‘‘(4) DEFINITION.—For purposes of this sub21 section, the term ‘process’ shall include any official 

22 proceeding or meeting on financial regulation of a 

23 recognized international organization with authority 

24 to set financial standards on a global or regional 

25 level, including the Financial Stability Board, the 

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1 Basel Committee on Banking Supervision (or a simi2 lar organization), and the International Association 

3 of Insurance Supervisors (or a similar organiza4 tion).’’. 

5 SEC. 11. AMENDMENTS TO POWERS OF THE BOARD OF GOV6 ERNORS OF THE FEDERAL RESERVE SYSTEM. 

7 (a) IN GENERAL.—Section 13(3) of the Federal Re8 serve Act (12 U.S.C. 343(3)) is amended— 

9 (1) in subparagraph (A)— 

10 (A) by inserting ‘‘that pose a threat to the 

11 financial stability of the United States’’ after 

12 ‘‘unusual and exigent circumstances’’; and 

13 (B) by inserting ‘‘and by the affirmative 

14 vote of not less than nine presidents of the Fed15 eral reserve banks’’ after ‘‘five members’’; 

16 (2) in subparagraph (B)— 

17 (A) in clause (i), by inserting at the end the 

18 following: ‘‘Federal reserve banks may not accept 

19 equity securities issued by the recipient of any 

20 loan or other financial assistance under this 

21 paragraph as collateral. Not later than 6 months 

22 after the date of enactment of this sentence, the 

23 Board shall, by rule, establish— 

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1 ‘‘(I) a method for determining the 

2 sufficiency of the collateral required 

3 under this paragraph; 

4 ‘‘(II) acceptable classes of collat5 eral; 

6 ‘‘(III) the amount of any discount 

7 of such value that the Federal reserve 

8 banks will apply for purposes of calcu9 lating the sufficiency of collateral 

10 under this paragraph; and 

11 ‘‘(IV) a method for obtaining 

12 independent appraisals of the value of 

13 collateral the Federal reserve banks re14 ceive.’’; and 

15 (B) in clause (ii)— 

16 (i) by striking the second sentence; and 

17 (ii) by inserting after the first sentence 

18 the following: ‘‘A borrower shall not be eligi19 ble to borrow from any emergency lending 

20 program or facility unless the Board and 

21 all federal banking regulators with jurisdic22 tion over the borrower certify that, at the 

23 time the borrower initially borrows under 

24 the program or facility, the borrower is not 

25 insolvent.’’; 

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1 (3) by inserting ‘‘financial institution’’ before 

2 ‘‘participant’’ each place such term appears; 

3 (4) in subparagraph (D)(i), by inserting ‘‘finan4 cial institution’’ before ‘‘participants’’; and 

5 (5) by adding at the end the following new sub6 paragraphs: 

7 ‘‘(F) PENALTY RATE.— 

8 ‘‘(i) IN GENERAL.—Not later than 6 

9 months after the date of enactment of this 

10 subparagraph, the Board shall, with respect 

11 to a recipient of any loan or other financial 

12 assistance under this paragraph, establish 

13 by rule a minimum interest rate on the 

14 principal amount of any loan or other fi15 nancial assistance. 

16 ‘‘(ii) MINIMUM INTEREST RATE DE17 FINED.—In this subparagraph, the term 

18 ‘minimum interest rate’ shall mean the sum 

19 of— 

20 ‘‘(I) the average of the secondary 

21 discount rate of all Federal Reserve 

22 banks over the most recent 90-day pe23 riod; and 

24 ‘‘(II) the average of the difference 

25 between a distressed corporate bond 

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1 yield index (as defined by rule of the 

2 Board) and a bond yield index of debt 

3 issued by the United States (as defined 

4 by rule of the Board) over the most re5 cent 90-day period. 

6 ‘‘(G) FINANCIAL INSTITUTION PARTICIPANT

7 DEFINED.—For purposes of this paragraph, the 

8 term ‘financial institution participant’— 

9 ‘‘(i) means a company that is pre10 dominantly engaged in financial activities 

11 (as defined in section 102(a) of the Dodd12 Frank Wall Street Reform and Consumer 

13 Protection Act (12 U.S.C. 5311(a))); and 

14 ‘‘(ii) does not include an agency de15 scribed in subparagraph (W) of section 

16 5312(a)(2) of title 31, United States Code, 

17 or an entity controlled or sponsored by such 

18 an agency.’’. 

19 (b) CONFORMING AMENDMENT.—Section 11(r)(2)(A) 

20 of such Act is amended— 

21 (1) in clause (ii)(IV), by striking ‘‘; and’’ and 

22 inserting a semicolon; 

23 (2) in clause (iii), by striking the period at the 

24 end and inserting ‘‘; and’’; and 

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1 (3) by adding at the end the following new 

2 clause: 

3 ‘‘(iv) the available members secure the affirma4 tive vote of not less than nine presidents of the Fed5 eral reserve banks.’’. 

6 SEC. 12. INTEREST RATES ON BALANCES MAINTAINED AT A 

7 FEDERAL RESERVE BANK BY DEPOSITORY IN8 STITUTIONS ESTABLISHED BY FEDERAL 

9 OPEN MARKET COMMITTEE. 

10 Subparagraph (A) of section 19(b)(12) of the Federal 

11 Reserve Act (12 U.S.C. 461(b)(12)(A)) is amended by in12 serting ‘‘established by the Federal Open Market Com13 mittee’’ after ‘‘rate or rates’’. 

14 SEC. 13. AUDIT REFORM AND TRANSPARENCY FOR THE 

15 BOARD OF GOVERNORS OF THE FEDERAL RE16 SERVE SYSTEM. 

17 (a) IN GENERAL.—Notwithstanding section 714 of title 

18 31, United States Code, or any other provision of law, the 

19 Comptroller General of the United States shall complete an 

20 audit of the Board of Governors of the Federal Reserve Sys21 tem and the Federal reserve banks under subsection (b) of 

22 such section 714 within 12 months after the date of the en23 actment of this Act. 

24 (b) REPORT.— 

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1 (1) IN GENERAL.—Not later than 90 days after 

2 the audit required pursuant to subsection (a) is com3 pleted, the Comptroller General— 

4 (A) shall submit to Congress a report on 

5 such audit; and 

6 (B) shall make such report available to the 

7 Speaker of the House, the majority and minority 

8 leaders of the House of Representatives, the ma9 jority and minority leaders of the Senate, the 

10 Chairman and Ranking Member of the com11 mittee and each subcommittee of jurisdiction in 

12 the House of Representatives and the Senate, and 

13 any other Member of Congress who requests the 

14 report. 

15 (2) CONTENTS.—The report under paragraph (1) 

16 shall include a detailed description of the findings 

17 and conclusion of the Comptroller General with re18 spect to the audit that is the subject of the report, to19 gether with such recommendations for legislative or 

20 administrative action as the Comptroller General 

21 may determine to be appropriate. 

22 (c) REPEAL OF CERTAIN LIMITATIONS.—Subsection 

23 (b) of section 714 of title 31, United States Code, is amend24 ed by striking the second sentence. 

25 (d) TECHNICAL AND CONFORMING AMENDMENTS.— 

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1 (1) IN GENERAL.—Section 714 of title 31, 

2 United States Code, is amended— 

3 (A) in subsection (d)(3), by striking ‘‘or (f)’’ 

4 each place such term appears; 

5 (B) in subsection (e), by striking ‘‘the third 

6 undesignated paragraph of section 13’’ and in7 serting ‘‘section 13(3)’’; and 

8 (C) by striking subsection (f). 

9 (2) FEDERAL RESERVE ACT.—Subsection (s) (re10 lating to ‘‘Federal Reserve Transparency and Release 

11 of Information’’) of section 11 of the Federal Reserve 

12 Act (12 U.S.C. 248) is amended— 

13 (A) in paragraph (4)(A), by striking ‘‘has 

14 the same meaning as in section 714(f)(1)(A) of 

15 title 31, United States Code’’ and inserting 

16 ‘‘means a program or facility, including any 

17 special purpose vehicle or other entity established 

18 by or on behalf of the Board of Governors of the 

19 Federal Reserve System or a Federal reserve 

20 bank, authorized by the Board of Governors 

21 under section 13(3), that is not subject to audit 

22 under section 714(e) of title 31, United States 

23 Code’’; 

24 (B) in paragraph (6), by striking ‘‘or in 

25 section 714(f)(3)(C) of title 31, United States 

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1 Code, the information described in paragraph 

2 (1) and information concerning the transactions 

3 described in section 714(f) of such title,’’ and in4 serting ‘‘the information described in paragraph 

5 (1)’’; and 

6 (C) in paragraph (7), by striking ‘‘and sec7 tion 13(3)(C), section 714(f)(3)(C) of title 31, 

8 United States Code, and’’ and inserting ‘‘, sec9 tion 13(3)(C), and’’. 

10 SEC. 14. REPORTING REQUIREMENT FOR EXPORT-IMPORT 

11 BANK. 

12 The Board of Governors of the Federal Reserve System 

13 shall include, as part of the monthly Federal Reserve statis14 tical release titled ‘‘Industrial Production or Capacity Uti15 lization’’ (or any successor release), an analysis of— 

16 (1) the impact on the index described in the sta17 tistical release due to the operation of the Export-Im18 port Bank; and 

19 (2) the amount of foreign industrial production 

20 supported by foreign export credit agencies, using the 

21 same method used to measure industrial production 

22 in the statistical release and scaled to be comparable 

23 to the industrial production measurement for the 

24 United States. 

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49 

•HR 3189 RH

1 SEC. 15. MEMBERSHIP OF BOARD OF DIRECTORS OF THE 

2 FEDERAL RESERVE BANKS. 

3 Section 4 of the Federal Reserve Act (12 U.S.C. 302) 

4 is amended— 

5 (1) in the eleventh undesignated paragraph (re6 lating to Class B), by striking ‘‘and consumers’’ and 

7 inserting ‘‘consumers, and traditionally underserved 

8 communities and populations’’; and 

9 (2) in the twelfth undesignated paragraph (relat10 ing to Class C), by striking ‘‘and consumers’’ and in11 serting ‘‘consumers, and traditionally underserved 

12 communities and populations’’. 

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Union Calendar No. 253 

114TH CONGRESS 

1ST SESSION H. R. 3189 

[Report No. 114–332, Part I] 

A BILL 

To amend the Federal Reserve Act to establish reand for other purposes. ernors of the Federal Reserve System is audited, to reform the manner in which the Board of Gov- tem, and to amend title 31, United States Code, Board of Governors of the Federal Reserve Sys- lish requirements for certain activities of the of the Federal Open Market Committee, to estab- quirements for policy rules and blackout periods 

NOVEMBER 16, 2015 

Reported from the Committee on Financial Services with 

an amendment 

NOVEMBER 16, 2015 

The Committee on Oversight and Government Reform 

printed House on the State of the Union and ordered to be discharged; committed to the Committee of the Whole 

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