I 
114TH CONGRESS 
1ST SESSION H. R. 2625 
To amend the Federal Reserve Act to reform the Federal Reserve System. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 3, 2015 
Mr. GARRETT (for himself and Mr. CAPUANO) introduced the following bill; 
which was referred to the Committee on Financial Services, and in addi-
tion to the Committees on Rules and 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 reform the Federal 
Reserve System. 
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 ‘‘Bailout Prevention Act 
of 2015’’. 
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SEC. 2. DISCOUNTS FOR INDIVIDUALS, PARTNERSHIPS, 
AND CORPORATIONS. 
Section 13(3)(B) of the Federal Reserve Act (12 
U.S.C. 343(3)(B)) is amended by striking clauses (ii) and 
(iii) and inserting the following: 
‘‘(ii)(I) The Board shall establish proce-
dures to prohibit borrowing from programs and 
facilities by borrowers that are insolvent. A bor-
rower shall not be eligible to borrow from any 
emergency lending program or facility unless 
the Board and all Federal banking regulators 
with jurisdiction over the borrower certify that, 
at the time the borrower initially borrows under 
the program or facility, the borrower is not in-
solvent. Solvency shall be assessed by examining 
the last 4 months of relevant financial data and 
determining whether the fair value of the bor-
rower’s assets exceeds the fair value of the bor-
rower’s liabilities, with appropriate adjustment 
for temporary illiquidity in relevant markets. 
‘‘(II) A borrower shall be considered insol-
vent for purposes of this subparagraph if the 
borrower is— 
‘‘(aa) in bankruptcy, resolution under 
title II of the Dodd-Frank Wall Street Re-
form and Consumer Protection Act (12 
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U.S.C. 5381 et seq.), or any other Federal 
or State insolvency proceeding; or 
‘‘(bb) a bridge financial company (as 
defined in section 201(a) of the Dodd- 
Frank Wall Street Reform and Consumer 
Protection Act (12 U.S.C. 5381(a))) or a 
bridge depository institution (as defined in 
section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813)). 
‘‘(III) If the Board or any other banking 
regulator makes a certification of solvency, the 
Board or banking regulator, as applicable, shall 
issue a contemporaneous public statement pro-
viding a detailed explanation of the certification 
decision. 
‘‘(iii) A program or facility shall be consid-
ered a program or facility with broad-based eli-
gibility only if not fewer than 5 companies are 
eligible to participate in the program or facility 
in a significant manner.’’. 
SEC. 3. PENALTY RATE REQUIREMENT; CONGRESSIONAL 
APPROVAL REQUIREMENT. 
Section 13(3) of the Federal Reserve Act (12 U.S.C. 
343(3)) is amended by adding at the end the following: 
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‘‘(F) Any emergency lending under this 
paragraph shall be provided at an annual inter-
est rate not less than 500 basis points greater 
than the cost of borrowing for the United 
States Treasury for a commensurate loan term. 
‘‘(G)(i) If the Board determines that the 
Board shall create an emergency lending pro-
gram or facility that does not comply with the 
broad-based eligibility requirement described in 
subparagraph (B)(iii) or the penalty rate re-
quirement described in subparagraph (F), the 
Board— 
‘‘(I) may create such a program or fa-
cility; and 
‘‘(II) not later than 3 days after the 
date on which a program or facility is cre-
ated under clause (i), shall submit to Con-
gress a report that describes the reasons 
why the Board is unable to comply with 
any requirement described in the matter 
preceding subclause (I). 
‘‘(ii)(I) A program or facility created under 
clause (i)(I) shall terminate on the date that is 
30 calendar days after the date on which Con-
gress receives a report described in clause 
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(i)(II) unless there is enacted into law a joint 
resolution approving the program or facility not 
later than 30 calendar days after the date on 
which the report is received. Any loan offered 
through the program or facility that are out-
standing as of the date on which the facility is 
terminated shall be repaid in full not later than 
30 calendar days after the date on which the 
program or facility is terminated. 
‘‘(II) For the purpose of this section, the 
term ‘joint resolution’ means only a joint reso-
lution— 
‘‘(aa) that is introduced not later than 
3 calendar days after the date on which 
the report referred to in clause (i)(I) is re-
ceived by Congress; 
‘‘(bb) that does not have a preamble; 
‘‘(cc) the title of which is as follows: 
‘Joint resolution relating to the approval of 
a program or facility created by the Board 
of Governors of the Federal Reserve Sys-
tem’; and 
‘‘(dd) the matter after the resolving 
clause of which is as follows: ‘That Con-
gress approves the program or facility cre-
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ated by the Board of Governors of the 
Federal 
Reserve 
System 
on 
llllllllll.’ (The blank space 
being appropriately filled in). 
‘‘(III)(aa) Upon receipt of a report under 
subsection (a)(3), the Speaker, if the House 
would otherwise be adjourned, shall notify the 
Members of the House that, pursuant to this 
section, the House shall convene not later than 
the second calendar day after receipt of such 
report. 
‘‘(bb) Any committee of the House of Rep-
resentatives to which a joint resolution is re-
ferred shall report it to the House not later 
than 5 calendar days after the date of receipt 
of the report described in clause (i)(II). If a 
committee fails to report the joint resolution 
within that period, the committee shall be dis-
charged from further consideration of the joint 
resolution and the joint resolution shall be re-
ferred to the appropriate calendar. 
‘‘(cc) After each committee authorized to 
consider a joint resolution reports it to the 
House or has been discharged from its consid-
eration, it shall be in order, not later than the 
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sixth day after Congress receives the report de-
scribed in clause (i)(II), to move to proceed to 
consider the joint resolution in the House. All 
points of order against the motion are waived. 
Such a motion shall not be in order after the 
House has disposed of a motion to proceed on 
the joint resolution. The previous question shall 
be considered as ordered on the motion to its 
adoption without intervening motion. The mo-
tion shall not be debatable. A motion to recon-
sider the vote by which the motion is disposed 
of shall not be in order. 
‘‘(dd) The joint resolution shall be consid-
ered as read. All points of order against the 
joint resolution and against its consideration 
are waived. The previous question shall be con-
sidered as ordered on the joint resolution to its 
passage without intervening motion except 2 
hours of debate equally divided and controlled 
by the proponent and an opponent. A motion to 
reconsider the vote on passage of the joint reso-
lution shall not be in order. 
‘‘(IV)(aa) Upon receipt of a report under 
clause (i)(II), if the Senate has adjourned or re-
cessed for more than 2 days, the majority lead-
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er of the Senate, after consultation with the mi-
nority leader of the Senate, shall notify the 
Members of the Senate that, pursuant to this 
subparagraph, the Senate shall convene not 
later than the second calendar day after receipt 
of such message. 
‘‘(bb) Upon introduction in the Senate, the 
joint resolution shall be placed immediately on 
the calendar. 
‘‘(cc)(AA) Notwithstanding Rule XXII of 
the Standing Rules of the Senate, it is in order 
at any time during the period beginning on the 
fourth day after the date on which Congress re-
ceives a report described in clause (i)(II) and 
ending on the sixth day after the date on which 
Congress receives the report (even though a 
previous motion to the same effect has been dis-
agreed to) to move to proceed to the consider-
ation of the joint resolution, and all points of 
order against the joint resolution (and against 
consideration of the joint resolution) are 
waived. The motion to proceed is not debatable. 
The motion is not subject to a motion to post-
pone. A motion to reconsider the vote by which 
the motion is agreed to or disagreed to shall not 
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be in order. If a motion to proceed to the con-
sideration of the resolution is agreed to, the 
joint resolution shall remain the unfinished 
business until disposed of. 
‘‘(BB) Debate on the joint resolution, and 
on all debatable motions and appeals in connec-
tion therewith, shall be limited to not more than 
10 hours, which shall be divided equally be-
tween the majority and minority leaders or 
their designees. A motion further to limit de-
bate is in order and not debatable. An amend-
ment to, or a motion to postpone, or a motion 
to proceed to the consideration of other busi-
ness, or a motion to recommit the joint resolu-
tion is not in order. 
‘‘(CC) The vote on passage shall occur im-
mediately following the conclusion of the debate 
on a joint resolution, and a single quorum call 
at the conclusion of the debate if requested in 
accordance with the rules of the Senate. 
‘‘(DD) Appeals from the decisions of the 
Chair relating to the application of the rules of 
the Senate, as the case may be, to the proce-
dure relating to a joint resolution shall be de-
cided without debate. 
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‘‘(V)(aa) If, before the passage by one 
House of a joint resolution of that House, that 
House receives from the other House a joint 
resolution, then the following procedures shall 
apply: 
‘‘(AA) The joint resolution of the 
other House shall not be referred to a com-
mittee. 
‘‘(BB) With respect to a joint resolu-
tion of the House receiving the resolu-
tion— 
‘‘(CC) the procedure in that House 
shall be the same as if no joint resolution 
had been received from the other House; 
but 
‘‘(DD) the vote on passage shall be on 
the joint resolution of the other House. 
‘‘(bb) If one House fails to introduce or 
consider a joint resolution under this section, 
the joint resolution of the other House shall be 
entitled to expedited floor procedures under this 
section. 
‘‘(cc) If, following passage of the joint res-
olution in the Senate, the Senate then receives 
the companion measure from the House of Rep-
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resentatives, the companion measure shall not 
be debatable. 
‘‘(dd) If the President vetoes the joint res-
olution, the period beginning on the date the 
President vetoes the joint resolution and ending 
on the date the Congress receives the veto mes-
sage with respect to the joint resolution shall be 
disregarded in computing the 30-calendar-day 
period described in subclause (I) and debate on 
a veto message in the Senate under this section 
shall be 1 hour equally divided between the ma-
jority and minority leaders or their designees. 
‘‘(ee) This subclause and subclauses (II), 
(III), and (IV) are enacted by Congress— 
‘‘(AA) as an exercise of the rule-
making power of the Senate and House of 
Representatives, respectively, and as such 
it is deemed a part of the rules of each 
House, respectively, but applicable only 
with respect to the procedure to be fol-
lowed in that House in the case of a joint 
resolution, and it supersedes other rules 
only to the extent that it is inconsistent 
with such rules; and 
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‘‘(BB) with full recognition of the 
constitutional right of either House to 
change the rules (so far as relating to the 
procedure of that House) at any time, in 
the same manner, and to the same extent 
as in the case of any other rule of that 
House.’’. 
SEC. 4. PUBLIC DISCLOSURE OF INFORMATION RELATED 
TO CREDIT FACILITIES. 
(a) 
REPORTS
ON
GAO 
AUDITS.—Section 
714(f)(3)(C)(iii) of title 31, United States Code, is amend-
ed— 
(1) by striking ‘‘1 year’’ and inserting ‘‘60 
days’’; and 
(2) by striking ‘‘24 months’’ and inserting ‘‘60 
days’’. 
(b) PUBLIC DISCLOSURES BY THE BOARD OF GOV-
ERNORS.—Section 11 of the Federal Reserve Act (12 
U.S.C. 248(s)) is amended— 
(1) in the first subsection (s) (relating to trans-
parency and the release of information)— 
(A) in paragraph (2)— 
(i) in subparagraph (A), by striking 
‘‘1 year’’ and inserting ‘‘60 days’’; and 
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(ii) in subparagraph (B), by striking 
‘‘the last day of the eighth calendar quar-
ter following the calendar quarter in 
which’’ and inserting ‘‘the date that is 60 
days after the date on which’’; and 
(B) in paragraph (5), by striking ‘‘24- 
month’’ and inserting ‘‘60 days’’; and 
(2) by redesignating the second subsection (s) 
(relating to assessments, fees, and other charges) as 
subsection (t). 
Æ 
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