I 

114TH CONGRESS 

1ST SESSION H. R. 3189 

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 

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. 

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


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Fed Oversight Reform and Modernization Act of 2015’’ 

4 or the ‘‘FORM Act of 2015’’. 

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

6 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. 

7 SEC. 2. REQUIREMENTS FOR POLICY RULES OF THE FED8 ERAL OPEN MARKET COMMITTEE. 

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

10 amended by inserting after section 2B the following new 

11 section: 

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

13 OPEN MARKET COMMITTEE. 

14 ‘‘(a) DEFINITIONS.—In this section the following 

15 definitions shall apply: 


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1 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT2 TEES.—The term ‘appropriate congressional com3 mittees’ means the Committee on Financial Services 

4 of the House of Representatives and the Committee 

5 on Banking, Housing, and Urban Affairs of the Sen6 ate. 

7 ‘‘(2) DIRECTIVE POLICY RULE.—The term ‘Di8 rective Policy Rule’ means a policy rule developed by 

9 the Federal Open Market Committee that meets the 

10 requirements of subsection (c) and that provides the 

11 basis for the Open Market Operations Directive. 

12 ‘‘(3) GDP.—The term ‘GDP’ means the gross 

13 domestic product of the United States as computed 

14 and published by the Department of Commerce. 

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

16 ‘Intermediate Policy Input’— 

17 ‘‘(A) may include any variable determined 

18 by the Federal Open Market Committee as a 

19 necessary input to guide open-market oper20 ations; 

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

22 method of calculation for, the current rate of 

23 inflation or current inflation expectations; and 

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

25 variable or estimate is historical, current, or a 


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1 forecast and the method of calculation, at least 

2 one of— 

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

4 GDP, or potential GDP; 

5 ‘‘(ii) an estimate of the monetary ag6 gregate compiled by the Board of Gov7 ernors of the Federal Reserve System and 

8 Federal reserve banks; or 

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

10 estimate composed of the estimates de11 scribed in clauses (i) and (ii). 

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

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

14 is in session. 

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

16 The term ‘Open Market Operations Directive’ means 

17 an order to achieve a specified Policy Instrument 

18 Target provided to the Federal Reserve Bank of 

19 New York by the Federal Open Market Committee 

20 pursuant to powers authorized under section 14 of 

21 this Act that guide open-market operations. 

22 ‘‘(7) POLICY INSTRUMENT.—The term ‘Policy 

23 Instrument’ means— 

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


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

2 nonborrowed reserves; or 

3 ‘‘(C) the discount window primary credit 

4 interest rate most recently published on the 

5 Federal Reserve Statistical Release on selected 

6 interest rates (daily or weekly), commonly re7 ferred to as the H.15 release. 

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

9 ‘Policy Instrument Target’ means the target for the 

10 Policy Instrument specified in the Open Market Op11 erations Directive. 

12 ‘‘(9) REFERENCE POLICY RULE.—The term 

13 ‘Reference Policy Rule’ means a calculation of the 

14 nominal Federal funds rate as equal to the sum of 

15 the following: 

16 ‘‘(A) The rate of inflation over the pre17 vious four quarters. 

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

19 of the real GDP from an estimate of potential 

20 GDP. 

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

22 rate of inflation over the previous four quarters 

23 and two percent. 

24 ‘‘(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 Fed3 eral Open Market Committee, the Chairman of the Fed4 eral Open Market Committee shall submit to the appro5 priate congressional committees and the Comptroller Gen6 eral of the United States a Directive Policy Rule and a 

7 statement that identifies the members of the Federal Open 

8 Market Committee 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 Direc12 tive 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 

16 to respond to a change in the Intermediate Policy 

17 Inputs; 

18 ‘‘(3) include a function that comprehensively 

19 models the interactive relationship between the In20 termediate Policy Inputs; 

21 ‘‘(4) include the coefficients of the Directive 

22 Policy Rule that generate the current Policy Instru23 ment Target and a range of predicted future values 

24 for the Policy Instrument Target if changes occur in 

25 any Intermediate Policy Input; 


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1 ‘‘(5) describe the procedure for adjusting the 

2 supply of bank reserves to achieve the Policy Instru3 ment Target; 

4 ‘‘(6) include a statement as to whether the Di5 rective Policy Rule substantially conforms to the 

6 Reference 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 

2 shall, not later than 7 days after each meeting of the Fed3 eral Open Market Committee, prepare and submit a com4 pliance report to the appropriate congressional committees 

5 specifying whether the rule submitted after that meeting 

6 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 

10 this Act shall be construed to require that the plans 

11 with respect to the systematic quantitative adjust12 ment of the Policy Instrument Target described 

13 under subsection (c)(2) be implemented if the Fed14 eral Open Market Committee determines that such 

15 plans cannot or should not be achieved due to 

16 changing market conditions. 

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 de21 termination and an updated version of the Directive 

22 Policy Rule to the Comptroller General of the 

23 United States and the appropriate congressional 

24 committees not later than 48 hours after making the 

25 determination. The Comptroller General shall, not 


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1 later than 48 hours after receiving such updated 

2 version, prepare and submit a compliance report de3 termining whether such updated version and the 

4 Federal Open Market Committee are in compliance 

5 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 

9 of the United States determines that the Directive 

10 Policy Rule and the Federal Open Market Com11 mittee are not in compliance with this section in the 

12 report submitted pursuant to subsection (d), or that 

13 the updated version of the Directive Policy Rule and 

14 the Federal Open Market Committee are not in com15 pliance with this section in the report submitted pur16 suant to subsection (e)(2), the Chairman of the 

17 Board of Governors of the Federal Reserve System 

18 shall, not later than 7 legislative days after the date 

19 of submission of such a report, testify before the ap20 propriate congressional committees as to why the 

21 Directive Policy Rule, the updated version, or the 

22 Federal Open Market Committee is not in compli23 ance. 

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 

3 period of 7 legislative days described in paragraph 

4 (1), the Comptroller General shall audit the conduct 

5 of monetary policy by the Board of Governors of the 

6 Federal Reserve System and the Federal Open Mar7 ket Committee upon request of the appropriate con8 gressional committee. Such committee may specify 

9 the parameters of such audit. 

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

11 the Board of Governors of the Federal Reserve System 

12 shall, if requested by either of the appropriate congres13 sional committees and not later than 7 legislative days 

14 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 

17 PERIOD. 

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

19 263) is amended by adding at the end the following new 

20 subsection: 

21 ‘‘(d) BLACKOUT PERIOD.— 

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

23 the only public communications that may be made 

24 by members and staff of the Committee with respect 

25 to 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 spe8 cific to a data release. 

9 ‘‘(C) Communications with respect to the 

10 prudential or supervisory functions of the 

11 Board of Governors. 

12 ‘‘(2) BLACKOUT PERIOD DEFINED.—For pur13 poses of this subsection, and with respect to a meet14 ing of the Committee described under subsection (a), 

15 the term ‘blackout period’ means the time period 

16 that— 

17 ‘‘(A) begins immediately after midnight on 

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

19 which such meeting takes place; and 

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

21 date on which such meeting takes place. 

22 ‘‘(3) EXEMPTION FOR CHAIRMAN OF THE

23 BOARD OF GOVERNORS.—Nothing in this section 

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1 ernors of the Federal Reserve System from partici2 pating in or issuing public communications.’’. 

3 SEC. 4. MEMBERSHIP OF FEDERAL OPEN MARKET COM4 MITTEE. 

5 Section 12A(a) of the Federal Reserve Act (12 

6 U.S.C. 263(a)) is amended— 

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

8 inserting ‘‘six’’; 

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

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

11 the period at the end and inserting the following: 

12 ‘‘One by the boards of directors of the Federal Re13 serve Banks of New York and Boston; one by the 

14 boards of directors of the Federal Reserve Banks of 

15 Philadelphia and Cleveland; one by the boards of di16 rectors of the Federal Reserve Banks of Richmond 

17 and Atlanta; one by the boards of directors of the 

18 Federal Reserve Banks of Chicago and St. Louis; 

19 one by the boards of directors of the Federal Re20 serve Banks of Minneapolis and Kansas City; and 

21 one by the boards of directors of the Federal Re22 serve Banks of Dallas and San Francisco.’’; and 

23 (3) by inserting after the second sentence the 

24 following: ‘‘In odd numbered calendar years, one 

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1 eral Reserve Banks of Boston, Philadelphia, Rich2 mond, Chicago, Minneapolis, and Dallas. In even3 numbered calendar years, one representative shall be 

4 elected from each of the Federal Reserve Banks of 

5 New York, Cleveland, Atlanta, St. Louis, Kansas 

6 City, and San Francisco.’’. 

7 SEC. 5. REQUIREMENTS FOR STRESS TESTS AND SUPER8 VISORY LETTERS FOR THE BOARD OF GOV9 ERNORS OF THE FEDERAL RESERVE SYSTEM. 

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

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

12 Dodd-Frank Wall Street Reform and Consumer Protec13 tion Act (12 U.S.C. 5365(i)(1)(B)) is amended— 

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

15 ‘‘(i) shall— 

16 ‘‘(I) issue regulations, after pro17 viding for public notice and comment, 

18 that provide for at least 3 different 

19 sets of conditions under which the 

20 evaluation required by this subsection 

21 shall be conducted, including baseline, 

22 adverse, and severely adverse, and 

23 methodologies, including models used 

24 to estimate losses on certain assets; 

25 and 


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1 ‘‘(II) provide copies of such regu2 lations to the Comptroller General of 

3 the United States and the Panel of 

4 Economic Advisors of the Congres5 sional Budget Office before publishing 

6 such regulations;’’; and 

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

8 the following: ‘‘, including any results of a resub9 mitted test’’. 

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

11 such Act is further amended by adding at the end the fol12 lowing new subparagraph: 

13 ‘‘(C) APPLICATION TO CCAR.—The require14 ments of subparagraph (B) shall apply to all 

15 stress tests performed under the Comprehensive 

16 Capital Analysis and Review exercise estab17 lished by the Board of Governors.’’. 

18 (c) PUBLICATION OF THE NUMBER OF SUPERVISORY

19 LETTERS SENT TO THE LARGEST BANK HOLDING COM20 PANIES.—Section 165 of such Act is further amended by 

21 adding at the end the following new subsection: 

22 ‘‘(l) PUBLICATION OF SUPERVISORY LETTER INFOR23 MATION.—The Board of Governors shall publicly dis24 close— 


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1 ‘‘(1) the aggregate number of supervisory let2 ters sent to bank holding companies described in 

3 subsection (a) since the date of the enactment of 

4 this section, and keep such number updated; and 

5 ‘‘(2) the aggregate number of such letters that 

6 are designated as ‘Matters Requiring Attention’ and 

7 the aggregate number of such letters that are des8 ignated as ‘Matters Requiring Immediate Atten9 tion’.’’. 

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

11 THE BOARD OF GOVERNORS OF THE FED12 ERAL RESERVE SYSTEM TO CONGRESS. 

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

14 Act (12 U.S.C. 225b) is amended— 

15 (1) by striking ‘‘semi-annual’’ each place it ap16 pears and inserting ‘‘quarterly’’; and 

17 (2) in subsection (a)(2)— 

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

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

20 (B) by inserting ‘‘and May 20’’ after 

21 ‘‘February 20’’ each place it appears. 

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

23 section 10 of the Federal Reserve Act (12 U.S.C. 

24 247b(12)) is amended by striking ‘‘semi-annual’’ and in25 serting ‘‘quarterly’’. 


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1 SEC. 7. VICE CHAIRMAN FOR SUPERVISION REPORT RE2 QUIREMENT. 

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

4 Act (12 U.S.C. 247(b)) is amended— 

5 (1) by redesignating such paragraph as para6 graph (11); and 

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

8 following: ‘‘In each such appearance, the Vice Chair9 man for Supervision shall provide written testimony 

10 that includes the status of all pending and antici11 pated rulemakings that are being made by the 

12 Board of Governors of the Federal Reserve System. 

13 If, at the time of any appearance described in this 

14 paragraph, the position of Vice Chairman for Super15 vision is vacant, the Vice Chairman for the Board of 

16 Governors of the Federal Reserve System (who has 

17 the responsibility to serve in the absence of the 

18 Chairman) shall appear instead and provide the re19 quired written testimony. If, at the time of any ap20 pearance described in this paragraph, both Vice 

21 Chairman positions are vacant, the Chairman of the 

22 Board of Governors of the Federal Reserve System 

23 shall appear instead and provide the required writ24 ten testimony.’’. 


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1 SEC. 8. ECONOMIC ANALYSIS OF REGULATIONS OF THE 

2 BOARD OF GOVERNORS OF THE FEDERAL RE3 SERVE SYSTEM. 

4 (a) AMENDMENT TO FEDERAL RESERVE ACT.—Sec5 tion 11 of the Federal Reserve Act (12 U.S.C. 248) is 

6 amended by inserting after subsection (l) the following 

7 new subsection: 

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

9 ‘‘(1) IN GENERAL.—Before issuing any regula10 tion, the Board of Governors of the Federal Reserve 

11 System shall— 

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

13 of the problem that the proposed regulation is 

14 designed to address and assess the significance 

15 of that problem; 

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

17 warranted or, with respect to a proposed regu18 lation that the Board of Governors is required 

19 to issue by statute and with respect to which 

20 the Board has the authority to exempt certain 

21 persons from the application of such regulation, 

22 compare— 

23 ‘‘(i) the costs and benefits of the pro24 posed regulation; and 

25 ‘‘(ii) the costs and benefits of a regu26 lation under which the Board exempts all 


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1 persons from the application of the pro2 posed regulation, to the extent the Board 

3 is able; 

4 ‘‘(C) assess the qualitative and quan5 titative costs and benefits of the proposed regu6 lation and propose or adopt a regulation only 

7 on a reasoned determination that the benefits 

8 of the proposed regulation outweigh the costs of 

9 the regulation; 

10 ‘‘(D) identify and assess available alter11 natives to the proposed regulation that were 

12 considered, including any alternative offered by 

13 a member of the Board of Governors of the 

14 Federal Reserve System or the Federal Open 

15 Market Committee and including any modifica16 tion of an existing regulation, together with an 

17 explanation of why the regulation meets the 

18 regulatory objectives more effectively than the 

19 alternatives; and 

20 ‘‘(E) ensure that any proposed regulation 

21 is accessible, consistent, written in plain lan22 guage, and easy to understand and shall meas23 ure, and seek to improve, the actual results of 

24 regulatory requirements. 

25 ‘‘(2) CONSIDERATIONS AND ACTIONS.— 


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

2 whether and how to regulate, the Board shall 

3 assess the costs and benefits of available regu4 latory alternatives, including the alternative of 

5 not regulating, and choose the approach that 

6 maximizes net benefits. Specifically, the Board 

7 shall— 

8 ‘‘(i) evaluate whether, consistent with 

9 achieving regulatory objectives, the regula10 tion is tailored to impose the least impact 

11 on the availability of credit and economic 

12 growth and to impose the least burden on 

13 society, including market participants, in14 dividuals, businesses of different sizes, and 

15 other entities (including State and local 

16 governmental entities), taking into ac17 count, to the extent practicable, the cumu18 lative costs of regulations; 

19 ‘‘(ii) evaluate whether the regulation 

20 is inconsistent, incompatible, or duplicative 

21 of other Federal regulations; and 

22 ‘‘(iii) with respect to a proposed regu23 lation that the Board is required to issue 

24 by statute and with respect to which the 

25 Board has the authority to exempt certain 


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1 persons from the application of such regu2 lation, compare— 

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

4 proposed regulation; and 

5 ‘‘(II) the costs and benefits of a 

6 regulation under which the Board ex7 empts all persons from the application 

8 of the proposed regulation, to the ex9 tent the Board is able. 

10 ‘‘(B) ADDITIONAL CONSIDERATIONS.—In 

11 addition, in making a reasoned determination of 

12 the costs and benefits of a proposed regulation, 

13 the Board shall, to the extent that each is rel14 evant to the particular proposed regulation, 

15 take into consideration the impact of the regu16 lation, including secondary costs such as an in17 crease in the cost or a reduction in the avail18 ability of credit or investment services or prod19 ucts, on— 

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

21 United States banking system; 

22 ‘‘(ii) market liquidity in securities 

23 markets; 

24 ‘‘(iii) small businesses; 

25 ‘‘(iv) community banks; 


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1 ‘‘(v) economic growth; 

2 ‘‘(vi) cost and access to capital; 

3 ‘‘(vii) market stability; 

4 ‘‘(viii) global competitiveness; 

5 ‘‘(ix) job creation; 

6 ‘‘(x) the effectiveness of the monetary 

7 policy transmission mechanism; and 

8 ‘‘(xi) employment levels. 

9 ‘‘(3) EXPLANATION AND COMMENTS.—The 

10 Board shall explain in its final rule the nature of 

11 comments that it received and shall provide a re12 sponse to those comments in its final rule, including 

13 an explanation of any changes that were made in re14 sponse to those comments and the reasons that the 

15 Board did not incorporate concerns related to the 

16 potential costs or benefits in the final rule. 

17 ‘‘(4) POSTADOPTION IMPACT ASSESSMENT.— 

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

19 adopts or amends a regulation designated as a 

20 ‘major rule’ within the meaning of section 

21 804(2) of title 5, United States Code, it shall 

22 state, in its adopting release, the following: 

23 ‘‘(i) The purposes and intended con24 sequences of the regulation. 


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

2 used, consistent with the requirements of 

3 subparagraph (B), to assess whether the 

4 regulation has achieved the stated pur5 poses. 

6 ‘‘(iii) Appropriate postimplementation 

7 quantitative and qualitative metrics to 

8 measure the economic impact of the regu9 lation and the extent to which the regula10 tion has accomplished the stated purpose 

11 of the regulation. 

12 ‘‘(iv) Any reasonably foreseeable indi13 rect effects that may result from the regu14 lation. 

15 ‘‘(B) REQUIREMENTS OF ASSESSMENT

16 PLAN AND REPORT.— 

17 ‘‘(i) REQUIREMENTS OF PLAN.—The 

18 assessment plan required under this para19 graph shall consider the costs, benefits, 

20 and intended and unintended consequences 

21 of the regulation. The plan shall specify 

22 the data to be collected, the methods for 

23 collection and analysis of the data, and a 

24 date for completion of the assessment. The 

25 assessment plan shall include an analysis 


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1 of any jobs added or lost as a result of the 

2 regulation, differentiating between public 

3 and private sector jobs. 

4 ‘‘(ii) SUBMISSION AND PUBLICATION

5 OF REPORT.—The Board shall, not later 

6 than 2 years after the publication of the 

7 adopting release, publish the assessment 

8 plan in the Federal Register for notice and 

9 comment. If the Board determines, at least 

10 90 days before the deadline for publication 

11 of the assessment plan, that an extension 

12 is necessary, the Board shall publish a no13 tice of such extension and the specific rea14 sons why the extension is necessary in the 

15 Federal Register. Any material modifica16 tion of the assessment plan, as necessary 

17 to assess unforeseen aspects or con18 sequences of the regulation, shall be 

19 promptly published in the Federal Register 

20 for notice and comment. 

21 ‘‘(iii) DATA COLLECTION NOT SUB22 JECT TO NOTICE AND COMMENT REQUIRE23 MENTS.—If the Board has published the 

24 assessment plan for notice and comment at 

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1 ulation designated as a major rule, the col2 lection of data under the assessment plan 

3 shall not be subject to the notice and com4 ment requirements in section 3506(c) of 

5 title 44, United States Code (commonly re6 ferred to as the Paperwork Reduction Act). 

7 Any material modification of the plan that 

8 requires collection of data not previously 

9 published for notice and comment shall 

10 also be exempt from such requirements if 

11 the Board has published notice in the Fed12 eral Register for comment on the addi13 tional data to be collected, at least 30 days 

14 before the initiation of data collection. 

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

16 180 days after publication of the assess17 ment plan in the Federal Register, the 

18 Board shall issue for notice and comment 

19 a proposal to amend or rescind the regula20 tion, or shall publish a notice that the 

21 Board has determined that no action will 

22 be taken on the regulation. Such a notice 

23 will be deemed a final agency action. 


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1 ‘‘(5) COVERED REGULATIONS AND OTHER AC2 TIONS.—Solely as used in this subsection, the term 

3 ‘regulation’— 

4 ‘‘(A) means a statement of general applica5 bility and future effect that is designed to im6 plement, interpret, or prescribe law or policy, or 

7 to describe the procedure or practice require8 ments of the Board of Governors, including 

9 rules, orders of general applicability, interpre10 tive releases, and other statements of general 

11 applicability that the Board of Governors in12 tends to have the force and effect of law; and 

13 ‘‘(B) does not include— 

14 ‘‘(i) a regulation issued in accordance 

15 with the formal rulemaking provisions of 

16 section 556 or 557 of title 5, United States 

17 Code; 

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

19 organization, management, or personnel 

20 matters of the Board of Governors; 

21 ‘‘(iii) a regulation promulgated pursu22 ant to statutory authority that expressly 

23 prohibits compliance with this provision; or 

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

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1 gency action, if such certification is pub2 lished in the Federal Register.’’. 

3 (b) RULE OF CONSTRUCTION.—Nothing in this sec4 tion shall apply to the requirements regarding the conduct 

5 of monetary policy described in section 2. 

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

7 STAFF OF THE BOARD OF GOVERNORS OF 

8 THE FEDERAL RESERVE SYSTEM. 

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

10 Act (12 U.S.C. 248) is amended— 

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

12 (relating to ‘‘Assessments, Fees, and Other Charges 

13 for Certain Companies’’) as subsection (t); and 

14 (2) by adding at the end the following new sub15 sections: 

16 ‘‘(u) ETHICS STANDARDS FOR MEMBERS AND EM17 PLOYEES.— 

18 ‘‘(1) PROHIBITED AND RESTRICTED FINANCIAL

19 INTERESTS AND TRANSACTIONS.—The members and 

20 employees of the Board of Governors of the Federal 

21 Reserve System shall be subject to the provisions 

22 under section 4401.102 of title 5, Code of Federal 

23 Regulations, to the same extent as such provisions 

24 apply to an employee of the Securities and Exchange 

25 Commission. 


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1 ‘‘(2) TREATMENT OF BROKERAGE ACCOUNTS

2 AND AVAILABILITY OF ACCOUNT STATEMENTS.—The 

3 members and employees of the Board of Governors 

4 of the Federal Reserve System shall— 

5 ‘‘(A) disclose all brokerage accounts that 

6 they maintain, as well as those in which they 

7 control trading or have a financial interest (in8 cluding managed accounts, trust accounts, in9 vestment club accounts, and the accounts of 

10 spouses or minor children who live with the 

11 member or employee); and 

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

13 that the member or employee is required to dis14 close to the Board of Governors, authorize their 

15 brokers and dealers to send duplicate account 

16 statements directly to Board of Governors. 

17 ‘‘(3) PROHIBITIONS RELATED TO OUTSIDE EM18 PLOYMENT AND ACTIVITIES.—The members and em19 ployees of the Board of Governors of the Federal 

20 Reserve System shall be subject to the prohibitions 

21 related to outside employment and activities de22 scribed under section 4401.103(c) of title 5, Code of 

23 Federal Regulations, to the same extent as such pro24 hibitions apply to an employee of the Securities and 

25 Exchange Commission. 


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

2 members and employees of the Board of Governors 

3 of the Federal Reserve System shall be subject to— 

4 ‘‘(A) the employee responsibilities and con5 duct regulations of the Office of Personnel 

6 Management under part 735 of title 5, Code of 

7 Federal Regulations; 

8 ‘‘(B) the canons of ethics contained in sub9 part C of part 200 of title 17, Code of Federal 

10 Regulations, to the same extent as such subpart 

11 applies to the employees of the Securities and 

12 Exchange Commission; and 

13 ‘‘(C) the regulations concerning the con14 duct of members and employees and former 

15 members and employees contained in subpart M 

16 of part 200 of title 17, Code of Federal Regula17 tions, to the same extent as such subpart ap18 plies to the employees of the Securities and Ex19 change Commission. 

20 ‘‘(v) DISCLOSURE OF STAFF SALARIES AND FINAN21 CIAL INFORMATION.—The Board of Governors of the Fed22 eral Reserve System shall make publicly available, on the 

23 website of the Board of Governors, a searchable database 

24 that contains the names of all members, officers, and em25 ployees of the Board of Governors who receive an annual 


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1 salary in excess of the annual rate of basic pay for GS– 

2 15 of the General Schedule, and— 

3 ‘‘(1) the yearly salary information for such indi4 viduals, along with any nonsalary compensation re5 ceived by such individuals; and 

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

7 made by such individuals.’’. 

8 (b) OFFICE STAFF FOR EACH MEMBER OF THE

9 BOARD OF GOVERNORS.—Subsection (l) of section 11 of 

10 the Federal Reserve Act (12 U.S.C. 248) is amended by 

11 adding at the end the following: ‘‘Each member of the 

12 Board of Governors of the Federal Reserve System may 

13 employ, at a minimum, 2 individuals, with such individuals 

14 selected by such member and the salaries of such individ15 uals set by such member. A member may employ addi16 tional individuals as determined necessary by the Board 

17 of Governors.’’. 

18 SEC. 10. REQUIREMENTS FOR INTERNATIONAL PROC19 ESSES. 

20 (a) BOARD OF GOVERNORS REQUIREMENTS.—Sec21 tion 11 of the Federal Reserve Act (12 U.S.C. 248), as 

22 amended by section 9 of this Act, is further amended by 

23 adding at the end the following new subsection: 

24 ‘‘(w) INTERNATIONAL PROCESSES.— 


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

2 least 30 calendar days before any member or em3 ployee of the Board of Governors of the Federal Re4 serve System participates in a process of setting fi5 nancial standards as a part of any foreign or multi6 national entity, the Board of Governors shall— 

7 ‘‘(A) issue a notice of the process, includ8 ing the subject matter, scope, and goals of the 

9 process, to the Committee on Financial Services 

10 of the House of Representatives and the Com11 mittee on Banking, Housing, and Urban Affairs 

12 of the Senate; 

13 ‘‘(B) make such notice available to the 

14 public, including on the website of the Board of 

15 Governors; and 

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

17 with the committees described under subpara18 graph (A), with respect to the subject matter, 

19 scope, and goals of the process. 

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

21 end of any process described under paragraph (1), 

22 the Board of Governors shall issue a public report 

23 on the topics that were discussed during the process 

24 and any new or revised rulemakings or policy 


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1 changes that the Board of Governors believes should 

2 be implemented as a result of the process. 

3 ‘‘(3) NOTICE OF AGREEMENTS; CONSULTA4 TION.—At least 90 calendar days before any mem5 ber or employee of the Board of Governors of the 

6 Federal Reserve System participates in a process of 

7 setting financial standards as a part of any foreign 

8 or multinational entity, the Board of Governors 

9 shall— 

10 ‘‘(A) issue a notice of agreement to the 

11 Committee on Financial Services of the House 

12 of Representatives and the Committee on Bank13 ing, Housing, and Urban Affairs of the Senate; 

14 ‘‘(B) make such notice available to the 

15 public, including on the website of the Board of 

16 Governors; and 

17 ‘‘(C) consult with the committees described 

18 under subparagraph (A) with respect to the na19 ture of the agreement and any anticipated ef20 fects such agreement will have on the economy. 

21 ‘‘(4) DEFINITION.—For purposes of this sub22 section, the term ‘process’ shall include any official 

23 proceeding or meeting on financial regulation of a 

24 recognized international organization with authority 

25 to set financial standards on a global or regional 


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1 level, including the Financial Stability Board, the 

2 Basel Committee on Banking Supervision (or a simi3 lar organization), and the International Association 

4 of Insurance Supervisors (or a similar organiza5 tion).’’. 

6 (b) FDIC REQUIREMENTS.—The Federal Deposit 

7 Insurance Act (12 U.S.C. 1811 et seq.) is amended by 

8 adding at the end the following new section: 

9 ‘‘SEC. 51. INTERNATIONAL PROCESSES. 

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

11 30 calendar days before the Board of Directors partici12 pates in a process of setting financial standards as a part 

13 of any foreign or multinational entity, the Board of Direc14 tors shall— 

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

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

17 the Committee on Financial Services of the House of 

18 Representatives and the Committee on Banking, 

19 Housing, and Urban Affairs of the Senate; 

20 ‘‘(2) make such notice available to the public, 

21 including on the website of the Corporation; and 

22 ‘‘(3) solicit public comment, and consult with 

23 the committees described under paragraph (1), with 

24 respect to the subject matter, scope, and goals of the 

25 process. 


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

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

3 of Directors shall issue a public report on the topics that 

4 were discussed at the process and any new or revised 

5 rulemakings or policy changes that the Board of Directors 

6 believes should be implemented as a result of the process. 

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

8 least 90 calendar days before the Board of Directors par9 ticipates in a process of setting financial standards as a 

10 part of any foreign or multinational entity, the Board of 

11 Directors shall— 

12 ‘‘(1) issue a notice of agreement to the Com13 mittee on Financial Services of the House of Rep14 resentatives and the Committee on Banking, Hous15 ing, and Urban Affairs of the Senate; 

16 ‘‘(2) make such notice available to the public, 

17 including on the website of the Corporation; and 

18 ‘‘(3) consult with the committees described 

19 under paragraph (1) with respect to the nature of 

20 the agreement and any anticipated effects such 

21 agreement will have on the economy. 

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

23 term ‘process’ shall include any official proceeding or 

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1 ards on a global or regional level, including the Financial 

2 Stability Board, the Basel Committee on Banking Super3 vision (or a similar organization), and the International 

4 Association of Insurance Supervisors (or a similar organi5 zation).’’. 

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

7 31, United States Code, is amended by adding at the end 

8 the following new subsection: 

9 ‘‘(d) INTERNATIONAL PROCESSES.— 

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

11 least 30 calendar days before the Secretary partici12 pates in a process of setting financial standards as 

13 a part of any foreign or multinational entity, the 

14 Secretary shall— 

15 ‘‘(A) issue a notice of the process, includ16 ing the subject matter, scope, and goals of the 

17 process, to the Committee on Financial Services 

18 of the House of Representatives and the Com19 mittee on Banking, Housing, and Urban Affairs 

20 of the Senate; 

21 ‘‘(B) make such notice available to the 

22 public, including on the website of the Depart23 ment of the Treasury; 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), 

5 the Secretary shall issue a public report on the top6 ics that were discussed at the process and any new 

7 or revised rulemakings or policy changes that the 

8 Secretary believes should be implemented as a result 

9 of the process. 

10 ‘‘(3) NOTICE OF AGREEMENTS; CONSULTA11 TION.—At least 90 calendar days before the Sec12 retary participates in a process of setting financial 

13 standards as a part of any foreign or multinational 

14 entity, the Secretary shall— 

15 ‘‘(A) issue a notice of agreement to the 

16 Committee on Financial Services of the House 

17 of Representatives and the Committee on Bank18 ing, Housing, and Urban Affairs of the Senate; 

19 ‘‘(B) make such notice available to the 

20 public, including on the website of the Depart21 ment of the Treasury; and 

22 ‘‘(C) consult with the committees described 

23 under subparagraph (A) with respect to the na24 ture of the agreement and any anticipated ef25 fects such agreement will have on the economy. 


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1 ‘‘(4) DEFINITION.—For purposes of this sub2 section, the term ‘process’ shall include any official 

3 proceeding or meeting on financial regulation of a 

4 recognized international organization with authority 

5 to set financial standards on a global or regional 

6 level, including the Financial Stability Board, the 

7 Basel Committee on Banking Supervision (or a simi8 lar organization), and the International Association 

9 of Insurance Supervisors (or a similar organiza10 tion).’’. 

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

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

13 21 et seq.) is amended— 

14 (1) by adding at the end the following new sec15 tion: 

16 ‘‘SEC. 5156B. INTERNATIONAL PROCESSES. 

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

18 30 calendar days before the Comptroller of the Currency 

19 participates in a process of setting financial standards as 

20 a part of any foreign or multinational entity, the Comp21 troller of the Currency shall— 

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

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

24 the Committee on Financial Services of the House of 


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1 Representatives and the Committee on Banking, 

2 Housing, and Urban Affairs of the Senate; 

3 ‘‘(2) make such notice available to the public, 

4 including on the website of the Office of the Comp5 troller of the Currency; and 

6 ‘‘(3) solicit public comment, and consult with 

7 the committees described under paragraph (1), with 

8 respect to the subject matter, scope, and goals of the 

9 process. 

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

11 of any process described under subsection (a), the Comp12 troller of the Currency shall issue a public report on the 

13 topics that were discussed at the process and any new or 

14 revised rulemakings or policy changes that the Comp15 troller of the Currency believes should be implemented as 

16 a result of the process. 

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

18 least 90 calendar days before the Comptroller of the Cur19 rency participates in a process of setting financial stand20 ards as a part of any foreign or multinational entity, the 

21 Board of Directors shall— 

22 ‘‘(1) issue a notice of agreement to the Com23 mittee on Financial Services of the House of Rep24 resentatives and the Committee on Banking, Hous25 ing, and Urban Affairs of the Senate; 


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1 ‘‘(2) make such notice available to the public, 

2 including on the website of the Office of the Comp3 troller of the Currency; and 

4 ‘‘(3) consult with the committees described 

5 under paragraph (1) with respect to the nature of 

6 the agreement and any anticipated effects such 

7 agreement will have on the economy. 

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

9 term ‘process’ shall include any official proceeding or 

10 meeting on financial regulation of a recognized inter11 national organization with authority to set financial stand12 ards on a global or regional level, including the Financial 

13 Stability Board, the Basel Committee on Banking Super14 vision (or a similar organization), and the International 

15 Association of Insurance Supervisors (or a similar organi16 zation).’’; and 

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

18 adding at the end the following new item: 

‘‘5156B. International processes.’’. 

19 (e) SECURITIES AND EXCHANGE COMMISSION RE20 QUIREMENTS.—Section 4 of the Securities Exchange Act 

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

22 the following new subsection: 

23 ‘‘(j) INTERNATIONAL PROCESSES.— 

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

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1 ticipates in a process of setting financial standards 

2 as a part of any foreign or multinational entity, the 

3 Commission shall— 

4 ‘‘(A) issue a notice of the process, includ5 ing the subject matter, scope, and goals of the 

6 process, to the Committee on Financial Services 

7 of the House of Representatives and the Com8 mittee on Banking, Housing, and Urban Affairs 

9 of the Senate; 

10 ‘‘(B) make such notice available to the 

11 public, including on the website of the Commis12 sion; and 

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

14 with the committees described under subpara15 graph (A), with respect to the subject matter, 

16 scope, and goals of the process. 

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

18 end of any process described under paragraph (1), 

19 the Commission shall issue a public report on the 

20 topics that were discussed at the process and any 

21 new or revised rulemakings or policy changes that 

22 the Commission believes should be implemented as a 

23 result of the process. 

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1 mission participates in a process of setting financial 

2 standards as a part of any foreign or multinational 

3 entity, the Commission shall— 

4 ‘‘(A) issue a notice of agreement to the 

5 Committee on Financial Services of the House 

6 of Representatives and the Committee on Bank7 ing, Housing, and Urban Affairs of the Senate; 

8 ‘‘(B) make such notice available to the 

9 public, including on the website of the Commis10 sion; and 

11 ‘‘(C) consult with the committees described 

12 under subparagraph (A) with respect to the na13 ture of the agreement and any anticipated ef14 fects such agreement will have on the economy. 

15 ‘‘(4) DEFINITION.—For purposes of this sub16 section, the term ‘process’ shall include any official 

17 proceeding or meeting on financial regulation of a 

18 recognized international organization with authority 

19 to set financial standards on a global or regional 

20 level, including the Financial Stability Board, the 

21 Basel Committee on Banking Supervision (or a simi22 lar organization), and the International Association 

23 of Insurance Supervisors (or a similar organiza24 tion).’’. 


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1 SEC. 11. AMENDMENTS TO POWERS OF THE BOARD OF 

2 GOVERNORS OF THE FEDERAL RESERVE SYS3 TEM. 

4 (a) IN GENERAL.—Section 13(3) of the Federal Re5 serve Act (12 U.S.C. 343(3)) is amended— 

6 (1) in subparagraph (A)— 

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

8 financial stability of the United States’’ after 

9 ‘‘unusual and exigent circumstances’’; and 

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

11 vote of not less than nine presidents of the Fed12 eral reserve banks’’ after ‘‘five members’’; 

13 (2) in subparagraph (B)— 

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

15 the following: ‘‘Federal reserve banks may not 

16 accept equity securities issued by the recipient 

17 of any loan or other financial assistance under 

18 this paragraph as collateral. Not later than 6 

19 months after the date of enactment of this sen20 tence, the Board shall, by rule, establish— 

21 ‘‘(I) a method for determining 

22 the sufficiency of the collateral re23 quired under this paragraph; 

24 ‘‘(II) acceptable classes of collat25 eral; 


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1 ‘‘(III) the amount of any dis2 count of such value that the Federal 

3 reserve banks will apply for purposes 

4 of calculating the sufficiency of collat5 eral under this paragraph; and 

6 ‘‘(IV) a method for obtaining 

7 independent appraisals of the value of 

8 collateral the Federal reserve banks 

9 receive.’’; and 

10 (B) in clause (ii)— 

11 (i) by striking the second sentence; 

12 and 

13 (ii) by inserting after the first sen14 tence the following: ‘‘A borrower shall not 

15 be eligible to borrow from any emergency 

16 lending program or facility unless the 

17 Board and all federal banking regulators 

18 with jurisdiction over the borrower certify 

19 that, at the time the borrower initially bor20 rows under the program or facility, the 

21 borrower is not insolvent.’’; 

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

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

24 (4) in subparagraph (D)(i), by inserting ‘‘finan25 cial institution’’ before ‘‘participants’’; and 


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1 (5) by adding at the end the following new sub2 paragraphs: 

3 ‘‘(F) PENALTY RATE.— 

4 ‘‘(i) IN GENERAL.—Not later than 6 

5 months after the date of enactment of this 

6 subparagraph, the Board shall, with re7 spect to a recipient of any loan or other fi8 nancial assistance under this paragraph, 

9 establish by rule a minimum interest rate 

10 on the principal amount of any loan or 

11 other financial assistance. 

12 ‘‘(ii) MINIMUM INTEREST RATE DE13 FINED.—In this subparagraph, the term 

14 ‘minimum interest rate’ shall mean the 

15 sum of— 

16 ‘‘(I) the average of the discount 

17 rate of all Federal Reserve banks over 

18 the most recent 90-day period; and 

19 ‘‘(II) the average of the dif20 ference between a corporate bond 

21 yield index (as defined by rule of the 

22 Board) and a bond yield index of debt 

23 issued by the United States (as de24 fined by rule of the Board) over the 

25 most recent 90-day period. 


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1 ‘‘(G) FINANCIAL INSTITUTION PARTICI2 PANT DEFINED.—For purposes of this para3 graph, the term ‘financial institution partici4 pant’— 

5 ‘‘(i) means a company that is pre6 dominantly engaged in financial activities 

7 (as defined in section 102(a) of the Dodd8 Frank Wall Street Reform and Consumer 

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

10 ‘‘(ii) does not include an agency de11 scribed in subparagraph (W) of section 

12 5312(a)(2) of title 31, United States Code, 

13 or an entity controlled or sponsored by 

14 such an agency.’’. 

15 (b) CONFORMING AMENDMENT.—Section 

16 11(r)(2)(A) of such Act is amended— 

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

18 inserting a semicolon; 

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

20 end and inserting ‘‘; and’’; and 

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

22 clause: 

23 ‘‘(iv) the available members secure the af24 firmative vote of not less than nine presidents 

25 of the Federal reserve banks.’’. 


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

2 FEDERAL RESERVE BANK BY DEPOSITORY 

3 INSTITUTIONS ESTABLISHED BY FEDERAL 

4 OPEN MARKET COMMITTEE. 

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

6 Reserve Act (12 U.S.C. 461(b)(12)(A)) is amended by in7 serting ‘‘established by the Federal Open Market Com8 mittee’’ after ‘‘rate or rates’’. 

9 SEC. 13. AUDIT REFORM AND TRANSPARENCY FOR THE 

10 BOARD OF GOVERNORS OF THE FEDERAL RE11 SERVE SYSTEM. 

12 (a) IN GENERAL.—Notwithstanding section 714 of 

13 title 31, United States Code, or any other provision of law, 

14 the Comptroller General of the United States shall com15 plete an audit of the Board of Governors of the Federal 

16 Reserve System and the Federal reserve banks under sub17 section (b) of such section 714 within 12 months after 

18 the date of the enactment of this Act. 

19 (b) REPORT.— 

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

21 the audit required pursuant to subsection (a) is com22 pleted, the Comptroller General— 

23 (A) shall submit to Congress a report on 

24 such audit; and 

25 (B) shall make such report available to the 

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1 ity leaders of the House of Representatives, the 

2 majority and minority leaders of the Senate, the 

3 Chairman and Ranking Member of the com4 mittee and each subcommittee of jurisdiction in 

5 the House of Representatives and the Senate, 

6 and any other Member of Congress who re7 quests the report. 

8 (2) CONTENTS.—The report under paragraph 

9 (1) shall include a detailed description of the find10 ings and conclusion of the Comptroller General with 

11 respect to the audit that is the subject of the report, 

12 together with such recommendations for legislative 

13 or administrative action as the Comptroller General 

14 may determine to be appropriate. 

15 (c) REPEAL OF CERTAIN LIMITATIONS.—Subsection 

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

17 amended by striking the second sentence. 

18 (d) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

20 United States Code, is amended— 

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

22 (f)’’ each place such term appears; 

23 (B) in subsection (e), by striking ‘‘the 

24 third undesignated paragraph of section 13’’ 

25 and inserting ‘‘section 13(3)’’; 


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1 (C) by striking subsection (f). 

2 (2) FEDERAL RESERVE ACT.—Subsection (s) 

3 (relating to ‘‘Federal Reserve Transparency and Re4 lease of Information’’) of section 11 of the Federal 

5 Reserve Act (12 U.S.C. 248) is amended— 

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

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

8 title 31, United States Code’’ and inserting 

9 ‘‘means a program or facility, including any 

10 special purpose vehicle or other entity estab11 lished by or on behalf of the Board of Gov12 ernors of the Federal Reserve System or a Fed13 eral reserve bank, authorized by the Board of 

14 Governors under section 13(3), that is not sub15 ject to audit under section 712(e) of title 31, 

16 United States Code’’; 

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

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

19 Code, the information described in paragraph 

20 (1) and information concerning the transactions 

21 described in section 714(f) of such title,’’ and 

22 inserting ‘‘the information described in para23 graph (1)’’; and 

24 (C) in paragraph (7), by striking ‘‘and sec25 tion 13(3)(C), section 714(f)(3)(C) of title 31, 


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48 

•HR 3189 IH

1 United States Code, and’’ and inserting ‘‘, sec2 tion 13(3)(C), and’’. 

Æ 


smartinez on DSK4TPTVN1PROD with BILLS