I 

113TH CONGRESS 

2D SESSION H. R. 3928 

To improve the accountability and transparency of the Board of Governors 

of the Federal Reserve System, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 27, 2014 

Mr. GARRETT introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To improve the accountability and transparency of the Board 

of Governors of the Federal Reserve System, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Reserve Ac5 countability and Transparency Act of 2014’’. 

6 SEC. 2. ECONOMIC ANALYSIS. 

7 Section 11 of the Federal Reserve Act (12 U.S.C. 

8 248) is amended by inserting after subsection (l) the fol9 lowing: 

10 ‘‘(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 

6 designed to address, as well as assess the sig7 nificance of that problem, to enable assessment 

8 of whether any new regulation is warranted; 

9 ‘‘(B) assess the costs and benefits, both 

10 qualitative and quantitative, of the intended 

11 regulation and propose or adopt a regulation 

12 only on a reasoned determination that the bene13 fits of the intended regulation outweigh the 

14 costs of the regulation; 

15 ‘‘(C) identify and assess available alter16 natives to the regulation that were considered, 

17 including modification of an existing regulation, 

18 together with an explanation of why the regula19 tion meets the regulatory objectives more effec20 tively than the alternatives; and 

21 ‘‘(D) ensure that any regulation is acces22 sible, consistent, written in plain language, and 

23 easy to understand and shall measure, and seek 

24 to improve, the actual results of regulatory re25 quirements. 


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1 ‘‘(2) CONSIDERATIONS AND ACTIONS.— 

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

3 whether and how to regulate, the Board shall 

4 assess the costs and benefits of available regu5 latory alternatives, including the alternative of 

6 not regulating, and choose the approach that 

7 maximizes net benefits. Specifically, the Board 

8 shall— 

9 ‘‘(i) evaluate whether, consistent with 

10 obtaining regulatory objectives, the regula11 tion is tailored to impose the least burden 

12 on society, including market participants, 

13 individuals, businesses of differing sizes, 

14 and other entities (including State and 

15 local governmental entities), taking into ac16 count, to the extent practicable, the cumu17 lative costs of regulations; and 

18 ‘‘(ii) evaluate whether the regulation 

19 is inconsistent, incompatible, or duplicative 

20 of other Federal regulations. 

21 ‘‘(B) ADDITIONAL CONSIDERATIONS.—In 

22 addition, in making a reasoned determination of 

23 the costs and benefits of a potential regulation, 

24 the Board shall, to the extent that each is rel25 evant to the particular proposed regulation, 


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1 take into consideration the impact of the regu2 lation on— 

3 ‘‘(i) investor choice; 

4 ‘‘(ii) market liquidity in the securities 

5 markets; 

6 ‘‘(iii) small businesses; 

7 ‘‘(iv) economic growth; 

8 ‘‘(v) cost and access to capital; 

9 ‘‘(vi) market stability; 

10 ‘‘(vii) global competitiveness; 

11 ‘‘(viii) job creation; 

12 ‘‘(ix) rate of inflation; and 

13 ‘‘(x) employment levels. 

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

15 Board shall explain in its final rule the nature of 

16 comments that it received, including those from the 

17 industry or consumer groups concerning the poten18 tial costs or benefits of the proposed rule or pro19 posed rule change, and shall provide a response to 

20 those comments in its final rule, including an expla21 nation of any changes that were made in response 

22 to those comments and the reasons that the Board 

23 did not incorporate those industry group concerns 

24 related to the potential costs or benefits in the final 

25 rule. 


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1 ‘‘(4) POST-ADOPTION IMPACT ASSESSMENT.— 

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

3 adopts or amends a regulation designated as a 

4 ‘major rule’ within the meaning of section 

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

6 state, in its adopting release, the following: 

7 ‘‘(i) The purposes and intended con8 sequences of the regulation. 

9 ‘‘(ii) Appropriate post-implementation 

10 quantitative and qualitative metrics to 

11 measure the economic impact of the regu12 lation and to measure the extent to which 

13 the regulation has accomplished the stated 

14 purposes. 

15 ‘‘(iii) The assessment plan that will be 

16 used, consistent with the requirements of 

17 subparagraph (B), to assess whether the 

18 regulation has achieved the stated pur19 poses. 

20 ‘‘(iv) Any reasonably foreseeable indi21 rect effects that may result from the regu22 lation. 

23 ‘‘(B) REQUIREMENTS OF ASSESSMENT

24 PLAN AND REPORT.— 


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1 ‘‘(i) REQUIREMENTS OF PLAN.—The 

2 assessment plan required under this para3 graph shall consider the costs, benefits, 

4 and intended and unintended consequences 

5 of the regulation. The plan shall specify 

6 the data to be collected, the methods for 

7 collection and analysis of the data and a 

8 date for completion of the assessment. The 

9 assessment plan shall include an analysis 

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

11 regulation, differentiating between public 

12 and private sector jobs. 

13 ‘‘(ii) SUBMISSION AND PUBLICATION

14 OF REPORT.—The Board shall, not later 

15 than 2 years after the publication of the 

16 adopting release, cause the assessment re17 port to be published in the Federal Reg18 ister for notice and comment. If the Board 

19 determines, at least 90 days before such 

20 date, that an extension is necessary, the 

21 Board shall publish a notice of such exten22 sion in the Federal Register, along with 

23 the specific reasons why the extension is 

24 necessary. Any material modification of the 

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1 pects or consequences of the regulation, 

2 shall be promptly published in the Federal 

3 Register for notice and comment. 

4 ‘‘(iii) DATA COLLECTION NOT SUB5 JECT TO NOTICE AND COMMENT REQUIRE6 MENTS.—If the Board has published its 

7 assessment plan for notice and comment, 

8 specifying the data to be collected and 

9 method of collection, at least 30 days prior 

10 to adoption of a final regulation or amend11 ment, such collection of data shall not be 

12 subject to the notice and comment require13 ments in section 3506(c) of title 44, 

14 United States Code (commonly referred to 

15 as the Paperwork Reduction Act). Any ma16 terial modifications of the plan that require 

17 collection of data not previously published 

18 for notice and comment shall also be ex19 empt from such requirements if the Board 

20 has published notice for comment in the 

21 Federal Register of the additional data to 

22 be collected, at least 30 days prior to initi23 ation of data collection. 

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

25 180 days after publication of the assessVerDate Mar 15 2010 04:36 Jan 29, 2014 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3928.IH H3928

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1 ment report in the Federal Register, the 

2 Board shall issue for notice and comment 

3 a proposal to amend or rescind the regula4 tion, or publish a notice that the Board 

5 has determined that no action will be taken 

6 on the regulation. Such a notice will be 

7 deemed a final agency action. 

8 ‘‘(5) COVERED REGULATIONS AND OTHER AC9 TIONS.—Solely as used in this subsection, the term 

10 ‘regulation’— 

11 ‘‘(A) means a statement of general applica12 bility and future effect that is designed to im13 plement, interpret, or prescribe law or policy or 

14 to describe the procedure or practice require15 ments of the Board of Governors, including 

16 rules, orders of general applicability, interpre17 tive releases, and other statements of general 

18 applicability that the Board of Governors in19 tends to have the force and effect of law; and 

20 ‘‘(B) does not include— 

21 ‘‘(i) a regulation issued in accordance 

22 with the formal rulemaking provisions of 

23 section 556 or 557 of title 5, United States 

24 Code; 


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

2 organization, management, or personnel 

3 matters of the Board of Governors; 

4 ‘‘(iii) a regulation promulgated pursu5 ant to statutory authority that expressly 

6 prohibits compliance with this provision; 

7 and 

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

9 the Board of Governors to be an emer10 gency action, if such certification is pub11 lished in the Federal Register.’’. 

12 SEC. 3. FEDERAL OPEN MARKET COMMITTEE BLACKOUT 

13 PERIOD. 

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

15 263) is amended by adding at the end the following: 

16 ‘‘(d) BLACKOUT PERIOD.— 

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

18 the only public communications that may be made 

19 by members and staff of the Committee with respect 

20 to macroeconomic or financial developments or about 

21 current or prospective monetary policy issues are the 

22 following: 

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

24 surveys, and reports that have been cleared for 


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1 publication by the Board of Governors of the 

2 Federal Reserve System. 

3 ‘‘(B) Answering technical questions specific 

4 to a data release. 

5 ‘‘(C) Communications with respect to the 

6 prudential or supervisory functions of the 

7 Board of Governors. 

8 ‘‘(2) BLACKOUT PERIOD DEFINED.—For pur9 poses of this subsection, and with respect to a meet10 ing of the Committee described under subsection (a), 

11 the term ‘blackout period’ means the time period 

12 that— 

13 ‘‘(A) begins immediately after midnight on 

14 the day that is 1-week prior to the date on 

15 which such meeting takes place; and 

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

17 date on which such meeting takes place.’’. 

18 SEC. 4. STAFF TERM LIMITS, PAY, ETHICS STANDARDS, AND 

19 FINANCIAL DISCLOSURES. 

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

21 Act (12 U.S.C. 248) is amended— 

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

23 (relating to assessments, fees, and other charges) as 

24 subsection (t); and 

25 (2) by adding at the end the following: 


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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

12 AND AVAILABILITY OF ACCOUNT STATEMENTS.—The 

13 members and employees of the Board of Governors 

14 of the 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 

6 Reserve System shall be subject to the prohibitions 

7 related to outside employment and activities de8 scribed under section 4401.103(c) of title 5, Code of 

9 Federal Regulations, to the same extent as such pro10 hibitions apply to an employee of the Securities and 

11 Exchange Commission. 

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

13 members and employees of the Board of Governors 

14 of the Federal Reserve System shall be subject to— 

15 ‘‘(A) the employee responsibilities and con16 duct regulations of the Office of Personnel 

17 Management under part 735 of title 5, Code of 

18 Federal 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 con25 duct of members and employees and former 


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1 members and employees contained in subpart M 

2 of part 200 of title 17, Code of Federal Regula3 tions, to the same extent as such subpart ap4 plies to the employees of the Securities and Ex5 change Commission. 

6 ‘‘(v) ADDITIONAL EMPLOYEES REQUIRED TO MAKE

7 A PUBLIC FINANCIAL DISCLOSURE.—For purposes of the 

8 financial disclosure requirements under part 2634 of title 

9 5, Code of Federal Regulations, an employee of the Board 

10 of Governors shall be deemed a public filer if the employee 

11 is an attorney, accountant, examiner, auditor, investi12 gator, or deals with information technology security. 

13 ‘‘(w) DISCLOSURE OF STAFF SALARIES AND FINAN14 CIAL INFORMATION.—The Board of Governors of the Fed15 eral Reserve System shall make publicly available, on the 

16 website of the Board of Governors, a searchable database 

17 that contains the names of all Members, officers, and em18 ployees of the Board of Governors of the Federal Reserve 

19 System and each Federal reserve bank, and— 

20 ‘‘(1) the yearly salary information for such indi21 viduals, along with any non-salary compensation re22 ceived by such individuals; and 

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

24 made by such individuals.’’. 


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1 (b) LIMITATION ON FEDERAL RESERVE SYSTEM

2 STAFF PAY AND TERMS OF OFFICE.—The Federal Re3 serve Act is amended— 

4 (1) in the provision enumerated ‘‘Fifth’’ of the 

5 fourth undesignated paragraph of section 4, by in6 serting after the first sentence the following: ‘‘Such 

7 president, vice presidents, and other officers and em8 ployees may not be paid a salary in excess of 99 per9 cent of the salary of the Chairman of the Board of 

10 Governors of the Federal Reserve System. No person 

11 may serve for more than 6 years in any one of the 

12 following positions: general counsel, deputy general 

13 counsel, senior adviser, director, deputy director, 

14 senior associate director, and assistant director.’’; 

15 and 

16 (2) in section 11(l), by adding at the end the 

17 following: ‘‘No attorney, expert, assistant, clerk, or 

18 other employee of the Board of Governors of the 

19 Federal Reserve System may be paid a salary in ex20 cess of 99 percent of the salary of the Chairman of 

21 the Board of Governors of the Federal Reserve Sys22 tem. No person may serve for more than 6 years in 

23 any one of the following positions: general counsel, 

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1 uty director, senior associate director, and assistant 

2 director.’’. 

3 (c) OFFICE STAFF FOR EACH MEMBER OF THE

4 BOARD OF GOVERNORS.—Section 11(t) of the Federal Re5 serve Act, as amended by subsection (b), is further amend6 ed by adding at the end the following: ‘‘Each member of 

7 the Board of Governors of the Federal Reserve System 

8 may employ 4 individuals for the purpose of staffing the 

9 member’s office, with such individuals selected by such 

10 member and the salaries of such individuals set by such 

11 member.’’. 

12 (d) GAO STUDY.— 

13 (1) IN GENERAL.—The Comptroller General of 

14 the United States shall carry out a study on— 

15 (A) employee pay and the employee pay 

16 scale used by the Board of Governors of the 

17 Federal Reserve System, including— 

18 (i) how individual employee compensa19 tion relates to job function, educational at20 tainment, and work experience; and 

21 (ii) how the pay scale compares to the 

22 pay scales used by other Federal depart23 ments and agencies, especially other finan24 cial regulators; and 


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1 (B) requiring the Board of Governors of 

2 the Federal Reserve System to be funded 

3 through the regular appropriations process. 

4 (2) REPORT.—Not later than the end of the 

5 180-day period beginning on the date of the enact6 ment of this Act, the Comptroller General shall issue 

7 a report to the Congress containing— 

8 (A) all findings and determinations made 

9 by the Comptroller General in carrying out the 

10 study required under paragraph (1); 

11 (B) recommendations on how to make the 

12 pay scale used by the Board of Governors more 

13 consistent with pay scales used by other Fed14 eral departments and agencies; and 

15 (C) a report on the pay amounts for em16 ployees at the Board of Governors, broken down 

17 by division and job function. 

18 SEC. 5. VICE CHAIRMAN FOR SUPERVISION REPORT RE19 QUIREMENT. 

20 Section 10 of the Federal Reserve Act is amended— 

21 (1) by redesignating paragraph (12) as para22 graph (11); and 

23 (2) in paragraph (11), as so redesignated, by 

24 adding at the end the following: ‘‘In each such ap25 pearance, the Vice Chairman for Supervision shall 


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1 provide written testimony that includes the status of 

2 all pending and anticipated rulemakings that are 

3 being made by the Board of Governors of the Fed4 eral Reserve System. If, at the time of any appear5 ance described in this paragraph, the position of 

6 Vice Chairman for Supervision is vacant, the Vice 

7 Chairman for the Board of Governors of the Federal 

8 Reserve System (who has the responsibility to serve 

9 in the absence of the Chairman) shall appear instead 

10 and provide the required written testimony. If, at 

11 the time of any appearance described in this para12 graph, both Vice Chairman positions are vacant, the 

13 Chairman of the Board of Governors of the Federal 

14 Reserve System shall appear instead and provide the 

15 required written testimony.’’. 

16 SEC. 6. FEDERAL RESERVE COMMUNICATIONS WITH CON17 GRESS. 

18 Section 2B of the Federal Reserve Act (12 U.S.C. 

19 225b) is amended— 

20 (1) in subsection (a), by adding at the end the 

21 following: 

22 ‘‘(3) QUESTION PERIOD.—During any appear23 ance before a committee of the Congress, the Chair24 man or any other official or employee of the Board 

25 of Governors making such appearance shall remain 


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1 as long as members of the committee have questions, 

2 but no later than 5 p.m.’’; 

3 (2) in subsection (b)— 

4 (A) in the heading for such subsection, by 

5 striking ‘‘REPORT’’ and inserting ‘‘REPORTS, 

6 QUESTIONS, AND MEETINGS’’; 

7 (B) by striking ‘‘The Board’’ and inserting 

8 the following: 

9 ‘‘(1) IN GENERAL.—The Board’’; and 

10 (C) by adding at the end the following: 

11 ‘‘(2) RESPONSES TO CONGRESSIONAL COM12 MITTEE QUESTIONS.— 

13 ‘‘(A) IN GENERAL.—Not later than the 

14 end of the 6-week period following the date on 

15 which any member or employee of the Board of 

16 Governors of the Federal Reserve System ap17 pears before a committee of the Congress, the 

18 Board shall respond, in writing, to any ques19 tions submitted by such committee. 

20 ‘‘(B) INABILITY TO MEET DEADLINE.—If 

21 the written response described under subpara22 graph (A) cannot be provided within the 6-week 

23 period described under such subparagraph, the 

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1 man of the appropriate committee, in writing, 

2 within such 6-week period— 

3 ‘‘(i) as to why the Board is unable to 

4 provide the written response within the 6- 

5 week period; and 

6 ‘‘(ii) the expected date on which the 

7 Board will respond to such questions. 

8 ‘‘(3) CONGRESSIONAL MEETING REQUEST AC9 COUNTABILITY.— 

10 ‘‘(A) IN GENERAL.—Upon receiving a 

11 meeting request from a member or staff mem12 ber serving on the Committee of Financial 

13 Services or Budget of the House of Representa14 tives or the Committee of Banking, Housing, 

15 and Urban Affairs or Budget of the Senate, the 

16 Board of Governors of the Federal Reserve Sys17 tem shall— 

18 ‘‘(i) respond, within 3 business days, 

19 to notify such member or staff member 

20 that the request has been received; and 

21 ‘‘(ii) include in such response whether 

22 the meeting request can be accommodated 

23 and, if so, the dates and times when offi24 cers and employees of the Board are avail25 able for such meeting. 


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1 ‘‘(B) INABILITY TO ACCOMMODATE MEET2 ING.—If, in a response described under sub3 paragraph (A), the Board states that the meet4 ing cannot be accommodated within the 2-week 

5 period following such response, the Chairman of 

6 the Board shall accompany such response with 

7 a detailed written explanation to the chairman 

8 of the committee as to why the meeting cannot 

9 be accommodated within such period and when 

10 the request will be accommodated. 

11 ‘‘(4) SALARY FREEZE WHILE IN VIOLATION.— 

12 During any period of time with respect to which the 

13 Board of Governors or the Chairman of the Board 

14 of Governors is in violation of any provision of this 

15 subsection, no employee of the Board of Governors 

16 may receive an increase in salary or other compensa17 tion.’’. 

18 SEC. 7. TRANSPARENCY OF REGULATORY ACTIVITIES. 

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

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

21 Dodd-Frank Wall Street Reform and Consumer Protec22 tion Act (12 U.S.C. 5365(i)(1)(B)) is amended— 

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

24 ‘‘(i) shall— 


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1 ‘‘(I) issue regulations, after pro2 viding for public notice and comment, 

3 that provide for at least 3 different 

4 sets of conditions under which the 

5 evaluation required by this subsection 

6 shall be conducted, including baseline, 

7 adverse, and severely adverse, and 

8 methodologies including models used 

9 to estimate losses on certain assets; 

10 ‘‘(II) provide copies of such regu11 lations to the Comptroller General of 

12 the United States and the Panel of 

13 Economic Advisors of the Congres14 sional Budget Office before publishing 

15 such regulations;’’; and 

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

17 the following: ‘‘, including any results of a resub18 mitted test’’. 

19 (b) PUBLICATION OF THE NUMBER OF SUPERVISORY

20 LETTERS SENT TO THE LARGEST BANK HOLDING COM21 PANIES.—Section 165 of the Dodd-Frank Wall Street Re22 form and Consumer Protection Act (12 U.S.C. 5365) is 

23 amended by adding at the end the following: 


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1 ‘‘(l) PUBLICATION OF SUPERVISORY LETTER INFOR2 MATION.—The Board of Governors shall publicly dis3 close— 

4 ‘‘(1) the aggregate number of supervisory let5 ters sent to bank holding companies described in 

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

7 this section, and keep such number updated; and 

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

9 are designated as ‘Matters Requiring Attention’ and 

10 the aggregate number of such letters that are des11 ignated as ‘Matters Requiring Immediate Atten12 tion’.’’. 

13 (c) DISCLOSURE OF AUDITS AND REVIEWS TO AP14 PROPRIATE COMMITTEES.— 

15 (1) IN GENERAL.—Not later than the end of 

16 the 30-day period beginning on the date of the en17 actment of this Act, the Board of Governors of the 

18 Federal Reserve System shall submit to the Com19 mittee on Financial Services of the House of Rep20 resentatives and the Committee on Banking, Hous21 ing, and Urban Affairs of the Senate unredacted 

22 copies of— 

23 (A) the Board of Governors’ Review of 

24 Regulatory Supervisory Audit; 


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1 (B) the Board of Governors’ 2003–2008 

2 Performance Review; and 

3 (C) each performance review performed by 

4 the Board of Governors after the date of the 

5 enactment of this Act. 

6 (2) NOTICE OF SENSITIVE INFORMATION.—The 

7 Board of Governors shall ensure that the documents 

8 described under paragraph (1) are accompanied by 

9 a list of any sections in such documents that the 

10 Board of Governors deems to be sensitive informa11 tion that should not be made public. 

12 SEC. 8. TREATMENT OF CERTAIN DIRECTORS AND PRESI13 DENTS. 

14 (a) ELIMINATION OF CLASS C DIRECTORS.—Section 

15 4 of the Federal Reserve Act is amended— 

16 (1) in the provision enumerated ‘‘Fifth’’ of the 

17 fourth undesignated paragraph, by striking ‘‘and 

18 Class C’’; 

19 (2) in the ninth undesignated paragraph, by 

20 striking ‘‘classes A, B, and C’’ and inserting ‘‘class21 es A and B’’; 

22 (3) in the tenth undesignated paragraph, by 

23 striking ‘‘three members’’ and inserting ‘‘four mem24 bers’’; 


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1 (4) in the eleventh undesignated paragraph, by 

2 striking ‘‘three members’’ and inserting ‘‘five mem3 bers’’; 

4 (5) by striking the twelfth and fifteenth undes5 ignated paragraphs; 

6 (6) by amending the twentieth undesignated 

7 paragraph to read as follows: 

8 ‘‘(20) DESIGNATION OF CHAIRMAN AND DEP9 UTY CHAIRMAN.— 

10 ‘‘(A) DESIGNATION OF CHAIRMAN.— 

11 ‘‘(i) IN GENERAL.—One of the class A 

12 or B directors who has tested banking ex13 perience shall be designated by the Board 

14 of Governors of the Federal Reserve Sys15 tem as chairman of the board of directors 

16 of the Federal reserve bank and as Federal 

17 reserve agent. 

18 ‘‘(ii) DUTIES.—The chairman shall— 

19 ‘‘(I) maintain, under regulations 

20 to be established by the Board of Gov21 ernors of the Federal Reserve System, 

22 a local office of said board on the 

23 premises of the Federal reserve bank; 


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1 ‘‘(II) make regular reports to the 

2 Board of Governors of the Federal 

3 Reserve System; and 

4 ‘‘(III) act as the official rep5 resentative of the Board of Governors 

6 for the performance of the functions 

7 conferred upon it by this Act. 

8 ‘‘(iii) COMPENSATION.—The chairman 

9 shall receive an annual compensation to be 

10 fixed by the Board of Governors of the 

11 Federal Reserve System and paid monthly 

12 by the Federal reserve bank to which the 

13 chairman is designated. 

14 ‘‘(B) DESIGNATION OF DEPUTY CHAIR15 MAN.—One of the class A or B directors shall 

16 be appointed by the Board of Governors of the 

17 Federal Reserve System as deputy chairman to 

18 exercise the powers of the chairman of the 

19 board when necessary.’’; and 

20 (7) by amending the twenty-fourth undesig21 nated paragraph to read as follows: 

22 ‘‘(24) TERM OF DIRECTORS; VACANCIES.— 

23 ‘‘(A) TERM OF DIRECTORS.—Every direc24 tor of a Federal reserve bank shall hold office 

25 for a term of three years, and such terms shall 


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1 be staggered, from the date of the enactment of 

2 this paragraph, such that— 

3 ‘‘(i) with respect to the four class A 

4 directors, one director’s term shall expire 

5 in each of the first and second years and 

6 two directors’ terms shall expire in the 

7 third year; and 

8 ‘‘(ii) with respect to the five class B 

9 directors, one director’s term shall expire 

10 in the first year and two directors’ terms 

11 shall expire in each of the second and third 

12 years. 

13 ‘‘(B) VACANCIES.—Vacancies that may 

14 occur in the several classes of directors of Fed15 eral reserve banks may be filled in the manner 

16 provided for the original selection of such direc17 tors, such appointees to hold office for the un18 expired terms of their predecessors.’’. 

19 (b) APPOINTMENT OF BANK PRESIDENT AND VICE

20 PRESIDENT.—The provision enumerated ‘‘Fifth’’ of the 

21 fourth undesignated paragraph of section 4 of the Federal 

22 Reserve Act is amended by striking ‘‘with the approval 

23 of the Board of Governors of the Federal Reserve Sys24 tem,’’. 


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1 SEC. 9. INTERNATIONAL TRAVEL AND NEGOTIATIONS. 

2 (a) INTERNATIONAL TRAVEL.—Section 11 of the 

3 Federal Reserve Act (12 U.S.C. 248), as amended by sec4 tion 4, is further amended by adding at the end the fol5 lowing: 

6 ‘‘(x) TEMPORARY AUTHORIZATION FOR INTER7 NATIONAL TRAVEL.— 

8 ‘‘(1) IN GENERAL.—Members and employees of 

9 the Board of Governors of the Federal Reserve Sys10 tem may not travel outside of the United States for 

11 the purposes of performing any function on behalf of 

12 the Board of Governors of the Federal Reserve Sys13 tem after the end of the 2-year period beginning on 

14 the date of enactment of this subsection. 

15 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

16 apply to travel through another country for purposes 

17 of traveling from one part of the United States to 

18 another part of the United States.’’. 

19 (b) INTERNATIONAL NEGOTIATIONS.—Section 11 of 

20 the Federal Reserve Act (12 U.S.C. 248), as amended by 

21 subsection (a), is further amended by adding at the end 

22 the following: 

23 ‘‘(y) INTERNATIONAL NEGOTIATIONS.— 

24 ‘‘(1) NOTICE OF NEGOTIATIONS; CONSULTA25 TION.—At least 90 calendar days before any Mem26 ber or employee of the Board of Governors of the 


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1 Federal Reserve System enters into negotiations 

2 with any foreign or multinational entity, the Board 

3 of Governors shall— 

4 ‘‘(A) issue a notice of negotiations 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 Board of 

10 Governors; and 

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

12 with the committees described under subpara13 graph (A), with respect to the topic matter, 

14 scope, and goals of the negotiations. 

15 ‘‘(2) PUBLIC REPORTS ON NEGOTIATIONS.— 

16 After the end of any negotiation described under 

17 paragraph (1), the Board of Governors shall issue a 

18 public report on the topics that were discussed at 

19 the negotiation and any new or revised rulemakings 

20 or policy changes that the Board of Governors be21 lieve should be enacted as a result of the negotia22 tions. 

23 ‘‘(3) NOTICE OF AGREEMENTS; CONSULTA24 TION.—At least 90 calendar days before any Mem25 ber or employee of the Board of Governors of the 


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1 Federal Reserve System enters into any agreement 

2 with any foreign or multinational entity, the Board 

3 of Governors 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 Board of 

10 Governors; and 

11 ‘‘(C) consult with such committees with re12 spect to the nature of the agreement and any 

13 anticipated effects such agreement will have on 

14 the economy.’’. 

15 SEC. 10. IMPROVEMENTS TO THE FINANCIAL INSTITUTIONS 

16 EXAMINATION COUNCIL. 

17 (a) ECONOMIC ANALYSIS.—Section 1008 of the Fed18 eral Financial Institutions Examination Council Act of 

19 1978 (12 U.S.C. 3305) is amended by adding at the end 

20 the following: 

21 ‘‘(d) CONSIDERATION OF ECONOMIC IMPACTS.— 

22 ‘‘(1) IN GENERAL.—Before issuing any regula23 tion, the Council shall— 

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

25 of the problem that the proposed regulation is 


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1 designed to address, as well as assess the sig2 nificance of that problem, to enable assessment 

3 of whether any new regulation is warranted; 

4 ‘‘(B) assess the costs and benefits, both 

5 qualitative and quantitative, of the intended 

6 regulation and propose or adopt a regulation 

7 only on a reasoned determination that the bene8 fits of the intended regulation outweigh the 

9 costs of the regulation; 

10 ‘‘(C) identify and assess available alter11 natives to the regulation that were considered, 

12 including modification of an existing regulation, 

13 together with an explanation of why the regula14 tion meets the regulatory objectives more effec15 tively than the alternatives; and 

16 ‘‘(D) ensure that any regulation is acces17 sible, consistent, written in plain language, and 

18 easy to understand and shall measure, and seek 

19 to improve, the actual results of regulatory re20 quirements. 

21 ‘‘(2) CONSIDERATIONS AND ACTIONS.— 

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

23 whether and how to regulate, the Council shall 

24 assess the costs and benefits of available regu25 latory alternatives, including the alternative of 


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1 not regulating, and choose the approach that 

2 maximizes net benefits. Specifically, the Council 

3 shall— 

4 ‘‘(i) evaluate whether, consistent with 

5 obtaining regulatory objectives, the regula6 tion is tailored to impose the least burden 

7 on society, including market participants, 

8 individuals, businesses of differing sizes, 

9 and other entities (including State and 

10 local governmental entities), taking into ac11 count, to the extent practicable, the cumu12 lative costs of regulations; and 

13 ‘‘(ii) evaluate whether the regulation 

14 is inconsistent, incompatible, or duplicative 

15 of other Federal regulations. 

16 ‘‘(B) ADDITIONAL CONSIDERATIONS.—In 

17 addition, in making a reasoned determination of 

18 the costs and benefits of a potential regulation, 

19 the Council shall, to the extent that each is rel20 evant to the particular proposed regulation, 

21 take into consideration the impact of the regu22 lation on— 

23 ‘‘(i) investor choice; 

24 ‘‘(ii) market liquidity in the securities 

25 markets; 


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1 ‘‘(iii) small businesses; 

2 ‘‘(iv) economic growth; 

3 ‘‘(v) cost and access to capital; 

4 ‘‘(vi) market stability; 

5 ‘‘(vii) global competitiveness; 

6 ‘‘(viii) job creation; 

7 ‘‘(ix) rate of inflation; and 

8 ‘‘(x) employment levels. 

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

10 Council shall explain in its final rule the nature of 

11 comments that it received, including those from the 

12 industry or consumer groups concerning the poten13 tial costs or benefits of the proposed rule or pro14 posed rule change, and shall provide a response to 

15 those comments in its final rule, including an expla16 nation of any changes that were made in response 

17 to those comments and the reasons that the Council 

18 did not incorporate those industry group concerns 

19 related to the potential costs or benefits in the final 

20 rule. 

21 ‘‘(4) POST-ADOPTION IMPACT ASSESSMENT.— 

22 ‘‘(A) IN GENERAL.—Whenever the Council 

23 adopts or amends a regulation designated as a 

24 ‘major rule’ within the meaning of section 


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1 804(2) of title 5, United States Code, it shall 

2 state, in its adopting release, the following: 

3 ‘‘(i) The purposes and intended con4 sequences of the regulation. 

5 ‘‘(ii) Appropriate post-implementation 

6 quantitative and qualitative metrics to 

7 measure the economic impact of the regu8 lation and to measure the extent to which 

9 the regulation has accomplished the stated 

10 purposes. 

11 ‘‘(iii) The assessment plan that will be 

12 used, consistent with the requirements of 

13 subparagraph (B), to assess whether the 

14 regulation has achieved the stated pur15 poses. 

16 ‘‘(iv) Any reasonably foreseeable indi17 rect effects that may result from the regu18 lation. 

19 ‘‘(B) REQUIREMENTS OF ASSESSMENT

20 PLAN AND REPORT.— 

21 ‘‘(i) REQUIREMENTS OF PLAN.—The 

22 assessment plan required under this para23 graph shall consider the costs, benefits, 

24 and intended and unintended consequences 

25 of the regulation. The plan shall specify 


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1 the data to be collected, the methods for 

2 collection and analysis of the data and a 

3 date for completion of the assessment. The 

4 assessment plan shall include an analysis 

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

6 regulation, differentiating between public 

7 and private sector jobs. 

8 ‘‘(ii) SUBMISSION AND PUBLICATION

9 OF REPORT.—The Council shall, not later 

10 than 2 years after the publication of the 

11 adopting release, cause the assessment re12 port to be published in the Federal Reg13 ister for notice and comment. If the Coun14 cil determines, at least 90 days before such 

15 date, that an extension is necessary, the 

16 Council shall public a notice of such exten17 sion in the Federal Register, along with 

18 the specific reasons why the extension is 

19 necessary. Any material modification of the 

20 plan, as necessary to assess unforeseen as21 pects or consequences of the regulation, 

22 shall be promptly published in the Federal 

23 Register for notice and comment. 

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1 MENTS.—If the Council has published its 

2 assessment plan for notice and comment, 

3 specifying the data to be collected and 

4 method of collection, at least 30 days prior 

5 to adoption of a final regulation or amend6 ment, such collection of data shall not be 

7 subject to the notice and comment require8 ments in section 3506(c) of title 44, 

9 United States Code (commonly referred to 

10 as the Paperwork Reduction Act). Any ma11 terial modifications of the plan that require 

12 collection of data not previously published 

13 for notice and comment shall also be ex14 empt from such requirements if the Coun15 cil has published notice for comment in the 

16 Federal Register of the additional data to 

17 be collected, at least 30 days prior to initi18 ation of data collection. 

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

20 180 days after publication of the assess21 ment report in the Federal Register, the 

22 Council shall issue for notice and comment 

23 a proposal to amend or rescind the regula24 tion, or publish a notice that the Council 

25 has determined that no action will be taken 


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1 on the regulation. Such a notice will be 

2 deemed a final agency action. 

3 ‘‘(5) COVERED REGULATIONS AND OTHER AC4 TIONS.—Solely as used in this subsection, the term 

5 ‘regulation’— 

6 ‘‘(A) means a statement of general applica7 bility and future effect that is designed to im8 plement, interpret, or prescribe law or policy or 

9 to describe the procedure or practice require10 ments of the Council, including rules, orders of 

11 general applicability, interpretive releases, and 

12 other statements of general applicability that 

13 the Council intends to have the force and effect 

14 of law; and 

15 ‘‘(B) does not include— 

16 ‘‘(i) a regulation issued in accordance 

17 with the formal rulemaking provisions of 

18 section 556 or 557 of title 5, United States 

19 Code; 

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

21 organization, management, or personnel 

22 matters of the Council; 

23 ‘‘(iii) a regulation promulgated pursu24 ant to statutory authority that expressly 


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1 prohibits compliance with this provision; 

2 and 

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

4 the Council to be an emergency action, if 

5 such certification is published in the Fed6 eral Register.’’. 

7 (b) ETHICS STANDARDS.—Section 1008 of the Fed8 eral Financial Institutions Examination Council Act of 

9 1978 (12 U.S.C. 3305), as amended by subsection (a), is 

10 further amended by adding at the end the following: 

11 ‘‘(e) ETHICS STANDARDS.— 

12 ‘‘(1) PROHIBITED AND RESTRICTED FINANCIAL

13 INTERESTS AND TRANSACTIONS.—The members and 

14 employees of the Council shall be subject to the pro15 visions under section 4401.102 of title 5, Code of 

16 Federal Regulations, to the same extent as such pro17 visions apply to an employee of the Securities and 

18 Exchange Commission. 

19 ‘‘(2) TREATMENT OF BROKERAGE ACCOUNTS

20 AND AVAILABILITY OF ACCOUNT STATEMENTS.—The 

21 members and employees of the Council shall— 

22 ‘‘(A) disclose all brokerage accounts that 

23 they maintain, as well as those in which they 

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1 vestment club accounts, and the accounts of 

2 spouses or minor children who live with the 

3 member or employee); and 

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

5 that the member or employee is required to dis6 close to the Council, authorize their brokers and 

7 dealers to send duplicate account statements di8 rectly to Council. 

9 ‘‘(3) PROHIBITIONS RELATED TO OUTSIDE EM10 PLOYMENT AND ACTIVITIES.—The members and em11 ployees of the Council shall be subject to the prohibi12 tions related to outside employment and activities 

13 described under section 4401.103(c) of title 5, Code 

14 of Federal Regulations, to the same extent as such 

15 prohibitions apply to an employee of the Securities 

16 and Exchange Commission. 

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

18 members and employees of the Council shall be sub19 ject to— 

20 ‘‘(A) the employee responsibilities and con21 duct regulations of the Office of Personnel 

22 Management under part 735 of title 5, Code of 

23 Federal Regulations; 

24 ‘‘(B) the canons of ethics contained in sub25 part C of part 200 of title 17, Code of Federal 


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1 Regulations, to the same extent as such subpart 

2 applies to the employees of the Securities and 

3 Exchange Commission; and 

4 ‘‘(C) the regulations concerning the con5 duct of members and employees and former 

6 members and employees contained in subpart M 

7 of part 200 of title 17, Code of Federal Regula8 tions, to the same extent as such subpart ap9 plies to the employees of the Securities and Ex10 change Commission. 

11 ‘‘(f) ADDITIONAL EMPLOYEES REQUIRED TO MAKE

12 A PUBLIC FINANCIAL DISCLOSURE.—For purposes of the 

13 financial disclosure requirements under part 2634 of title 

14 5, Code of Federal Regulations, an employee of the Coun15 cil shall be deemed a public filer if the employee is an 

16 attorney, accountant, examiner, auditor, investigator, or 

17 deals with information technology security. 

18 ‘‘(g) DISCLOSURE OF STAFF SALARIES AND FINAN19 CIAL INFORMATION.—The Council shall make publicly 

20 available, on the website of the Council, a searchable data21 base that contains the names of all Members and employ22 ees of the Council, and— 

23 ‘‘(1) the yearly salary information for such indi24 viduals, along with any non-salary compensation re25 ceived by such individuals; and 


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

2 made by such individuals.’’. 

3 SEC. 11. IMPROVEMENTS TO THE FINANCIAL STABILITY 

4 OVERSIGHT COUNCIL. 

5 (a) ECONOMIC ANALYSIS.—Section 111 of the Finan6 cial Stability Act of 2010 (12 U.S.C. 5321) is amended 

7 by adding at the end the following: 

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

9 ‘‘(1) IN GENERAL.—Before issuing any regula10 tion, the Council shall— 

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

12 of the problem that the proposed regulation is 

13 designed to address, as well as assess the sig14 nificance of that problem, to enable assessment 

15 of whether any new regulation is warranted; 

16 ‘‘(B) assess the costs and benefits, both 

17 qualitative and quantitative, of the intended 

18 regulation and propose or adopt a regulation 

19 only on a reasoned determination that the bene20 fits of the intended regulation outweigh the 

21 costs of the regulation; 

22 ‘‘(C) identify and assess available alter23 natives to the regulation that were considered, 

24 including modification of an existing regulation, 

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1 tion meets the regulatory objectives more effec2 tively than the alternatives; and 

3 ‘‘(D) ensure that any regulation is acces4 sible, consistent, written in plain language, and 

5 easy to understand and shall measure, and seek 

6 to improve, the actual results of regulatory re7 quirements. 

8 ‘‘(2) CONSIDERATIONS AND ACTIONS.— 

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

10 whether and how to regulate, the Council shall 

11 assess the costs and benefits of available regu12 latory alternatives, including the alternative of 

13 not regulating, and choose the approach that 

14 maximizes net benefits. Specifically, the Council 

15 shall— 

16 ‘‘(i) evaluate whether, consistent with 

17 obtaining regulatory objectives, the regula18 tion is tailored to impose the least burden 

19 on society, including market participants, 

20 individuals, businesses of differing sizes, 

21 and other entities (including State and 

22 local governmental entities), taking into ac23 count, to the extent practicable, the cumu24 lative costs of regulations; and 


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1 ‘‘(ii) evaluate whether the regulation 

2 is inconsistent, incompatible, or duplicative 

3 of other Federal regulations. 

4 ‘‘(B) ADDITIONAL CONSIDERATIONS.—In 

5 addition, in making a reasoned determination of 

6 the costs and benefits of a potential regulation, 

7 the Council shall, to the extent that each is rel8 evant to the particular proposed regulation, 

9 take into consideration the impact of the regu10 lation on— 

11 ‘‘(i) investor choice; 

12 ‘‘(ii) market liquidity in the securities 

13 markets; 

14 ‘‘(iii) small businesses; 

15 ‘‘(iv) economic growth; 

16 ‘‘(v) cost and access to capital; 

17 ‘‘(vi) market stability; 

18 ‘‘(vii) global competitiveness; 

19 ‘‘(viii) job creation; 

20 ‘‘(ix) rate of inflation; and 

21 ‘‘(x) employment levels. 

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

23 Council shall explain in its final rule the nature of 

24 comments that it received, including those from the 

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1 tial costs or benefits of the proposed rule or pro2 posed rule change, and shall provide a response to 

3 those comments in its final rule, including an expla4 nation of any changes that were made in response 

5 to those comments and the reasons that the Council 

6 did not incorporate those industry group concerns 

7 related to the potential costs or benefits in the final 

8 rule. 

9 ‘‘(4) POST-ADOPTION IMPACT ASSESSMENT.— 

10 ‘‘(A) IN GENERAL.—Whenever the Council 

11 adopts or amends a regulation designated as a 

12 ‘major rule’ within the meaning of section 

13 804(2) of title 5, United States Code, it shall 

14 state, in its adopting release, the following: 

15 ‘‘(i) The purposes and intended con16 sequences of the regulation. 

17 ‘‘(ii) Appropriate post-implementation 

18 quantitative and qualitative metrics to 

19 measure the economic impact of the regu20 lation and to measure the extent to which 

21 the regulation has accomplished the stated 

22 purposes. 

23 ‘‘(iii) The assessment plan that will be 

24 used, consistent with the requirements of 

25 subparagraph (B), to assess whether the 


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1 regulation has achieved the stated pur2 poses. 

3 ‘‘(iv) Any reasonably foreseeable indi4 rect effects that may result from the regu5 lation. 

6 ‘‘(B) REQUIREMENTS OF ASSESSMENT

7 PLAN AND REPORT.— 

8 ‘‘(i) REQUIREMENTS OF PLAN.—The 

9 assessment plan required under this para10 graph shall consider the costs, benefits, 

11 and intended and unintended consequences 

12 of the regulation. The plan shall specify 

13 the data to be collected, the methods for 

14 collection and analysis of the data and a 

15 date for completion of the assessment. The 

16 assessment plan shall include an analysis 

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

18 regulation, differentiating between public 

19 and private sector jobs. 

20 ‘‘(ii) SUBMISSION AND PUBLICATION

21 OF REPORT.—The Council shall, not later 

22 than 2 years after the publication of the 

23 adopting release, cause the assessment re24 port to be published in the Federal Reg25 ister for notice and comment. If the CounVerDate Mar 15 2010 04:36 Jan 29, 2014 Jkt 039200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\H3928.IH H3928

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1 cil determines, at least 90 days before such 

2 date, that an extension is necessary, the 

3 Council shall public a notice of such exten4 sion in the Federal Register, along with 

5 the specific reasons why the extension is 

6 necessary. Any material modification of the 

7 plan, as necessary to assess unforeseen as8 pects or consequences of the regulation, 

9 shall be promptly published in the Federal 

10 Register for notice and comment. 

11 ‘‘(iii) DATA COLLECTION NOT SUB12 JECT TO NOTICE AND COMMENT REQUIRE13 MENTS.—If the Council has published its 

14 assessment plan for notice and comment, 

15 specifying the data to be collected and 

16 method of collection, at least 30 days prior 

17 to adoption of a final regulation or amend18 ment, such collection of data shall not be 

19 subject to the notice and comment require20 ments in section 3506(c) of title 44, 

21 United States Code (commonly referred to 

22 as the Paperwork Reduction Act). Any ma23 terial modifications of the plan that require 

24 collection of data not previously published 

25 for notice and comment shall also be exVerDate Mar 15 2010 04:36 Jan 29, 2014 Jkt 039200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\H3928.IH H3928

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1 empt from such requirements if the Coun2 cil has published notice for comment in the 

3 Federal Register of the additional data to 

4 be collected, at least 30 days prior to initi5 ation of data collection. 

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

7 180 days after publication of the assess8 ment report in the Federal Register, the 

9 Council shall issue for notice and comment 

10 a proposal to amend or rescind the regula11 tion, or publish a notice that the Council 

12 has determined that no action will be taken 

13 on the regulation. Such a notice will be 

14 deemed a final agency action. 

15 ‘‘(5) COVERED REGULATIONS AND OTHER AC16 TIONS.—Solely as used in this subsection, the term 

17 ‘regulation’— 

18 ‘‘(A) means a statement of general applica19 bility and future effect that is designed to im20 plement, interpret, or prescribe law or policy or 

21 to describe the procedure or practice require22 ments of the Council, including rules, orders of 

23 general applicability, interpretive releases, and 

24 other statements of general applicability that 


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1 the Council intends to have the force and effect 

2 of law; and 

3 ‘‘(B) does not include— 

4 ‘‘(i) a regulation issued in accordance 

5 with the formal rulemaking provisions of 

6 section 556 or 557 of title 5, United States 

7 Code; 

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

9 organization, management, or personnel 

10 matters of the Council; 

11 ‘‘(iii) a regulation promulgated pursu12 ant to statutory authority that expressly 

13 prohibits compliance with this provision; 

14 and 

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

16 the Council to be an emergency action, if 

17 such certification is published in the Fed18 eral Register.’’. 

19 (b) ETHICS STANDARDS.—Section 111 of the Finan20 cial Stability Act of 2010 (12 U.S.C. 5321), as amended 

21 by subsection (a), is further amended by adding at the 

22 end the following: 

23 ‘‘(l) ETHICS STANDARDS.— 

24 ‘‘(1) PROHIBITED AND RESTRICTED FINANCIAL

25 INTERESTS AND TRANSACTIONS.—The members and 


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1 employees of the Council shall be subject to the pro2 visions under section 4401.102 of title 5, Code of 

3 Federal Regulations, to the same extent as such pro4 visions apply to an employee of the Securities and 

5 Exchange Commission. 

6 ‘‘(2) TREATMENT OF BROKERAGE ACCOUNTS

7 AND AVAILABILITY OF ACCOUNT STATEMENTS.—The 

8 members and employees of the Council shall— 

9 ‘‘(A) disclose all brokerage accounts that 

10 they maintain, as well as those in which they 

11 control trading or have a financial interest (in12 cluding managed accounts, trust accounts, in13 vestment club accounts, and the accounts of 

14 spouses or minor children who live with the 

15 member or employee); and 

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

17 that the member or employee is required to dis18 close to the Council, authorize their brokers and 

19 dealers to send duplicate account statements di20 rectly to Council. 

21 ‘‘(3) PROHIBITIONS RELATED TO OUTSIDE EM22 PLOYMENT AND ACTIVITIES.—The members and em23 ployees of the Council shall be subject to the prohibi24 tions related to outside employment and activities 

25 described under section 4401.103(c) of title 5, Code 


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1 of Federal Regulations, to the same extent as such 

2 prohibitions apply to an employee of the Securities 

3 and Exchange Commission. 

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

5 members and employees of the Council shall be sub6 ject to— 

7 ‘‘(A) the employee responsibilities and con8 duct regulations of the Office of Personnel 

9 Management under part 735 of title 5, Code of 

10 Federal Regulations; 

11 ‘‘(B) the canons of ethics contained in sub12 part C of part 200 of title 17, Code of Federal 

13 Regulations, to the same extent as such subpart 

14 applies to the employees of the Securities and 

15 Exchange Commission; and 

16 ‘‘(C) the regulations concerning the con17 duct of members and employees and former 

18 members and employees contained in subpart M 

19 of part 200 of title 17, Code of Federal Regula20 tions, to the same extent as such subpart ap21 plies to the employees of the Securities and Ex22 change Commission. 

23 ‘‘(m) ADDITIONAL EMPLOYEES REQUIRED TO MAKE

24 A PUBLIC FINANCIAL DISCLOSURE.—For purposes of the 

25 financial disclosure requirements under part 2634 of title 


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1 5, Code of Federal Regulations, an employee of the Coun2 cil shall be deemed a public filer if the employee is an 

3 attorney, accountant, examiner, auditor, investigator, or 

4 deals with information technology security. 

5 ‘‘(n) DISCLOSURE OF STAFF SALARIES AND FINAN6 CIAL INFORMATION.—The Council shall make publicly 

7 available, on the website of the Council, a searchable data8 base that contains the names of all Members and employ9 ees of the Council, and— 

10 ‘‘(1) the yearly salary information for such indi11 viduals, along with any non-salary compensation re12 ceived by such individuals; and 

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

14 made by such individuals.’’. 

Æ 


jbell on DSK7SPTVN1PROD with BILLS