I 
108TH CONGRESS 
1ST SESSION H. R. 2043
To establish a mechanism for developing uniform United States positions 
on issues before the Basel Committee on Banking Supervision at the 
Bank for International Settlements, to require a review on the most 
recent recommendation of the Basel Committee for an accord on capital 
standards, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 9, 2003
Mr. BACHUS (for himself, Mrs. MALONEY, Mr. OXLEY, and Mr. FRANK of 
Massachusetts) introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To establish a mechanism for developing uniform United 
States positions on issues before the Basel Committee 
on Banking Supervision at the Bank for International 
Settlements, to require a review on the most recent rec-
ommendation of the Basel Committee for an accord on 
capital standards, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘United States Finan-
cial Policy Committee For Fair Capital Standards Act’’.
SEC. 2. UNITED STATES FINANCIAL POLICY COMMITTEE. 
(a) ESTABLISHMENT.—There is hereby established 
an inter-agency committee, to be known as the ‘‘United 
States Financial Policy Committee’’ (hereafter in this Act 
referred to as the ‘‘Committee’’), which shall consist of—
(1) the Secretary of the Treasury, who shall 
serve as the Chairperson of the Committee; 
(2) the Chairman of the Board of Governors of 
the Federal Reserve System; 
(3) the Comptroller of the Currency; and 
(4) the Chairperson of the Federal Deposit In-
surance Corporation. 
(b) PURPOSE.—The purpose of the Committee is to 
develop uniform United States positions on proposals 
made to, and issues before, the Basel Committee on Bank-
ing Supervision that, if implemented, may directly or indi-
rectly affect United States financial institutions. 
(c) MEETINGS.—The Committee shall meet before 
any meeting of the Basel Committee on Banking Super-
vision and any other time the Chairperson or any member 
of the Committee calls for a meeting. 
(d) ADHERENCE TO COMMITTEE POSITION.—
(1) IN GENERAL.—Each member of the Com-
mittee that is a participant on the Basel Committee 
on Banking Supervision shall adhere to the positions
of the Committee in any negotiations of the Basel 
Committee on Banking Supervision. 
(2) LACK OF UNIFORM POSITION.—If the mem-
bers of the Committee that are participants on the 
Basel Committee on Banking Supervision are unable 
to agree on a uniform position on an issue, the posi-
tion of the Secretary of the Treasury shall be deter-
minative for purposes of paragraph (1) with respect 
to such issue. 
(e) REPORTS TO THE CONGRESS.—
(1) ANNUAL REPORT.—
(A) IN
GENERAL.—The Committee shall 
submit an annual report to the Congress on the 
proceedings of the Committee during the period 
covered by the report. 
(B) CONTENTS OF REPORT.—The report 
shall include—
(i) a brief description of issues that 
were addressed by the Committee; 
(ii) a brief description of the uniform 
positions developed by the Committee with 
respect to such issues; and 
(iii) in the case of any issue for which 
a uniform policy was not agreed to, a brief 
description of the positions of the parties
to the disagreement and an explanation of 
the reasons why the parties could not 
reach an agreement. 
(2) REPORTS
TO
THE
CONGRESS
PRIOR
TO 
AGREEMENT ON ANY BASEL ACCORD.—
(A) IN
GENERAL.—No Federal banking 
agency (as defined in section 3(z) of the Fed-
eral Deposit Insurance Act) may agree to any 
proposed recommendation of the Basel Com-
mittee on Banking Supervision before the agen-
cy submits a report on the proposed rec-
ommendation to the Congress. 
(B) CONSULTATIONS.—The head of any 
Federal banking agency that submits a report 
to the Congress under subparagraph (A) shall 
consult with the Congress concerning the pro-
posal. 
(3) EVALUATION OF NEW BASEL CAPITAL AC-
CORD BEFORE REPORT.—Before submitting a report 
to the Congress under paragraph (2) with respect to 
the New Basel Capital Accord, as revised through 
the Third Consultative Paper published on April 29, 
2003, or any subsequent revisions or final agree-
ment, the Federal banking agencies (as defined in 
section 3(z) of the Federal Deposit Insurance Act),
in consultation with the Secretary of the Treasury, 
shall evaluate the impact of the revised Capital Ac-
cord, taking into account the following factors, and 
shall include such evaluation in the report: 
(A) The cost and complexity of the pro-
posal. 
(B) The impact of the proposal on small, 
medium, and large financial institutions. 
(C) The impact of the proposal on real es-
tate markets. 
(D) The effect of an operational risk cap-
ital standard on the resilience of the Nation’s 
financial system and competition. 
(E) The impact of the proposal on com-
petition between banks and other financial in-
stitutions. 
(F) The need for additional training for 
supervision and examination personnel. 
(G) Any comments filed by the public after 
notice and an opportunity to comment for a pe-
riod of not less than 60 days. 
(H) The relative impact of compliance by 
domestic banks. 
(f) ADMINISTRATIVE
SUPPORT
SERVICES.—Each 
agency represented on the Committee shall provide such
administrative support services as may be necessary for 
the Committee to carry out its responsibilities under this 
Act.
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