I

105TH CONGRESS

1ST SESSION H. R. 703

To refocus the mission of the Federal Reserve System on stabilization of

the currency and provide greater public scrutiny of the operations of

the Board of Governors of the Federal Reserve System, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 12, 1997

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

Committee on Banking and Financial Services

A BILL

To refocus the mission of the Federal Reserve System on

stabilization of the currency and provide greater public

scrutiny of the operations 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 Sys5 tem Accountability Act of 1997’’.
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1 SEC. 2. FINANCIAL AND MANAGERIAL AUDITS OF THE FED

2 ON AN ANNUAL BASIS.

3 Section 714(b) of title 31, United States Code, is

4 amended to read as follows:

5 ‘‘(b) IN GENERAL.—

6 ‘‘(1) AUDITS.—Under regulations prescribed by

7 the Comptroller General, the Comptroller General

8 shall audit each agency.

9 ‘‘(2) FEDERAL RESERVE SYSTEM.—The audits

10 of the Board of Governors of the Federal Reserve

11 System and the Federal reserve banks—

12 ‘‘(A) shall be conducted annually;

13 ‘‘(B) shall include a full financial and man14 agerial audit; and

15 ‘‘(C) may not include transactions for or

16 with a foreign central bank, government of a

17 foreign country, or nonprivate international fi18 nancing organization or any part of any discus19 sion or communication among or between mem20 bers of the Board of Governors of the Federal

21 Reserve System or officers or employees of such

22 Board which is related to any such trans23 action.’’.
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1 SEC. 3. APPLICABILITY OF GOVERNMENT IN THE SUN2 SHINE ACT TO FED.

3 Section 552b(a)(1) of title 5, United States Code, is

4 amended by inserting ‘‘including the Board of Governors

5 of the Federal Reserve System,’’ after ‘‘advice and consent

6 of the Senate,’’.

7 SEC. 4. PRIMARY MISSION OF FED IS TO MAINTAIN STABLE

8 CURRENCY WITH MINIMAL FLUCTUATION IN

9 INTEREST RATES.

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

11 247a) is amended by adding at the end the following new

12 subsection:

13 ‘‘(k) PRIMARY MISSION.—The primary mission of the

14 Board is to regulate the money supply so as to maintain

15 a stable currency with minimal fluctuation in interest

16 rates.’’.

17 SEC. 5. TRANSFER OF ADMINISTRATION OF BANK HOLDING

18 COMPANY ACT OF 1956 FROM FED TO FDIC.

19 (a) IN GENERAL.—The Bank Holding Company Act

20 of 1956 (12 U.S.C. 1841 et seq.) is amended by striking

21 ‘‘Board’’ each place such term appears and inserting

22 ‘‘Corporation’’.

23 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

24 (1) Section 2(f) of the Bank Holding Company

25 Act of 1956 (12 U.S.C. 1841(f)) is amended to read

26 as follows:
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1 ‘‘(f) CORPORATION.—The term ‘Corporation’ means

2 the Federal Deposit Insurance Corporation.’’.

3 (2) Section 3(q) of the Federal Deposit Insur4 ance Act (12 U.S.C. 1813(q)) is amended—

5 (A) in paragraph (2)—

6 (i) by inserting ‘‘and’’ after the semi7 colon at the end of subparagraph (D);

8 (ii) by striking ‘‘and’’ at the end of

9 subparagraph (E); and

10 (iii) by striking subparagraph (F);

11 and

12 (B) in paragraph (3)—

13 (i) by striking ‘‘or’’ after ‘‘District

14 bank),’’; and

15 (ii) by inserting ‘‘, or any bank hold16 ing company and any subsidiary of any

17 bank holding company (other than a

18 bank)’’ before the semicolon at the end.

19 (3) Section 8(b)(3) of the Federal Deposit In20 surance Act (12 U.S.C. 1818(b)(3)) is amended by

21 striking ‘‘Board of Governors of the Federal Reserve

22 System’’ and inserting ‘‘Corporation’’.

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