I
107TH CONGRESS
2D SESSION
H. R. 5356
To abolish the Board of Governors of the Federal Reserve System and
the Federal reserve banks, to repeal the Federal Reserve Act, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 10, 2002
Mr. PAUL introduced the following bill; which was referred to the Committee
on Financial Services
A BILL
To abolish the Board of Governors of the Federal Reserve
System and the Federal reserve banks, to repeal the
Federal Reserve Act, 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 ‘‘Federal Reserve Board
Abolition Act’’.
SEC. 2. FEDERAL RESERVE BOARD ABOLISHED.
(a) IN GENERAL.—Effective at the end of the 1-year
period beginning on the date of the enactment of this Act,
the Board of Governors of the Federal Reserve System
and each Federal reserve bank are hereby abolished.
(b) REPEAL OF FEDERAL RESERVE ACT.—Effective
at the end of the 1-year period beginning on the date of
the enactment of this Act, the Federal Reserve Act is here-
by repealed.
(c) DISPOSITION OF AFFAIRS.—
(1) MANAGEMENT
DURING
DISSOLUTION
PE-
RIOD.—During the 1-year period referred to in sub-
section (a), the Chairman of the Board of Governors
of the Federal Reserve System—
(A) shall, for the sole purpose of winding
up the affairs of the Board of Governors of the
Federal Reserve System and the Federal re-
serve banks—
(i) manage the employees of the
Board and each such bank and provide for
the payment of compensation and benefits
of any such employee which accrue before
the position of such employee is abolished;
and
(ii) manage the assets and liabilities
of the Board and each such bank until
such assets and liabilities are liquidated or
assumed by the Secretary of the Treasury
in accordance with this subsection; and
(B) may take such other action as may be
necessary, subject to the approval of the Sec-
retary of the Treasury, to wind up the affairs
of the Board and the Federal reserve banks.
(2) LIQUIDATION OF ASSETS.—
(A) IN GENERAL.—The Director of the Of-
fice of Management and Budget shall liquidate
all assets of the Board and the Federal reserve
banks in an orderly manner so as to achieve as
expeditious a liquidation as may be practical
while maximizing the return to the Treasury.
(B) TRANSFER TO TREASURY.—After sat-
isfying all claims against the Board and any
Federal reserve bank which are accepted by the
Director of the Office of Management and
Budget and redeeming the stock of such banks,
the net proceeds of the liquidation under sub-
paragraph (A) shall be transferred to the Sec-
retary of the Treasury and deposited in the
General Fund of the Treasury.
(3) ASSUMPTION
OF
LIABILITIES.—All out-
standing liabilities of the Board of Governors of the
Federal Reserve System and the Federal reserve
banks at the time such entities are abolished, includ-
ing any liability for retirement and other benefits for
former officers and employees of the Board or any
such bank in accordance with employee retirement
and benefit programs of the Board and any such
bank, shall become the liability of the Secretary of
the Treasury and shall be paid from amounts depos-
ited in the general fund pursuant to paragraph (2)
which are hereby appropriated for such purpose
until all such liabilities are satisfied.
(d) REPORT.—At the end of the 18-month period be-
ginning on the date of the enactment of this Act, the Sec-
retary of the Treasury and the Director of the Office of
Management and Budget shall submit a joint report to
the Congress containing a detailed description of the ac-
tions taken to implement this Act and any actions or
issues relating to such implementation that remain
uncompleted or unresolved as of the date of the report.
Æ