I
103D CONGRESS
2D SESSION
H. R. 4261
To establish the Commission on International Coordination of Financial
Regulation, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 20, 1994
Mr. GONZALEZ introduced the following bill; which was referred to the
Committee on Banking, Finance and Urban Affairs
A BILL
To establish the Commission on International Coordination
of Financial Regulation, 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 ‘‘Commission on Inter-
national Coordination of Financial Regulation Act’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress hereby finds the fol-
lowing:
(1) Innovation in financial services and prod-
ucts is outpacing the ability of regulatory bodies to
monitor and control the stability of the international
financial system.
(2) The rapid growth and integration of inter-
national capital markets has resulted in a volume of
financial transactions that exceeds the resources of
any single country and any single regulatory body.
(3) Although most countries have regulatory
bodies that govern the operation of each such coun-
try’s 
financial 
markets 
and 
participants, 
the
globalization of the financial markets requires better
efforts to coordinate international regulation and su-
pervision.
(4) Financial regulators in the United States
pursue separate strategies for dealing with inter-
national financial issues, including derivative finan-
cial instruments, often with inadequate communica-
tion among themselves and their foreign counter-
parts.
(5) Given the increased globalization of finan-
cial markets, it is imperative that regulators estab-
lish an effective system of crisis management to deal
with any shock to international financial markets.
(6) As market participants continue to globalize
their operations, financial regulatory bodies must de-
velop a coordinated approach to enforcement actions.
(6) Analyze the major clearing and settlement
systems and the differences among those systems in
terms of volume, risk, and efficiency and evaluate
the impact each system has on the stability of the
other major payments and settlements systems.
(7) Propose solutions for improving coordina-
tion among the major clearing and settlement sys-
tems, including programs to raise the quality of the
weaker systems.
(8) Identify all so-called ‘‘off-shore tax havens’’
and analyze their role in the international capital
markets and the reasons for their growth.
(9) Propose solutions for minimizing any ad-
verse effect the growth of the ‘‘tax havens’’ may
have on the international financial system, including,
if warranted, a proposal for curbing the growth of
such havens.
SEC. 5. MEMBERSHIP.
(a) NUMBER AND APPOINTMENT.—The Commission
shall consist of 15 members as follows:
(1) The Chairman of the Board of Governors of
the Federal Reserve System or the Chairman’s des-
ignee.
(2) The Secretary of the Treasury or the Sec-
retary’s designee.
(3) The Chairman of the Securities and Ex-
change Commission or the Chairman’s designee.
(4) 6 members appointed by the President.
(5) 3 members appointed by the Speaker and
the minority leader of the House of Representatives,
acting jointly, not more than 2 of whom may be
members of the same political party.
(6) 3 members appointed by the majority leader
and the minority leader of the Senate, acting jointly,
not more than 2 of whom may be members of the
same political party.
(b) QUALIFICATIONS OF APPOINTED MEMBERS.—
The members appointed pursuant to paragraphs (4), (5),
and (6) of subsection (a) shall be appointed from among
individuals who—
(1) are specially qualified to serve on the Com-
mission by reason of their education, training, and
experience in international finance and business, ac-
counting, currency transactions, the international
payment system, trade matters, banking, or securi-
ties; and
(2) have a broad understanding of the global
economy.
(c) TERMS.—Members shall be appointed for the life
of the Commission.
(d) INITIAL APPOINTMENTS.—The initial members of
the Commission shall be appointed before the end of the
30-day period beginning on the date of the enactment of
this Act.
(e) VACANCY.—A vacancy on the Commission shall
be filled in the manner in which the original appointment
was made.
(f) REMOVAL.—An appointed member of the Com-
mission may be removed only for malfeasance in office.
(g) QUORUM.—5 members shall constitute a quorum.
(h) CHAIRPERSON.—The President shall designate a
chairperson of the Commission from among members ap-
pointed under paragraph (4), (5), or (6) of subsection (a).
(i) MEETINGS.—The Commission shall meet at the
call of the Chairperson or a majority of the members.
(j) POLICY ACTIONS.—No action establishing a policy
or recommendation of the Commission may be adopted
without the approval of at least 8 members.
(k) TRAVEL AND PER DIEM.—Members of the Com-
mission shall be paid actual travel expenses and per diem
in lieu of subsistence expenses in accordance with section
5703 of title 5, United States Code.
SEC. 6. DIRECTOR AND STAFF.
(a) DIRECTOR.—The principal administrative officer
of the Commission shall be a director who shall—
(1) be appointed by the Commission;
(2) be paid at a rate not to exceed the maxi-
mum rate payable under section 5376 of title 5,
United States Code; and
(3) serve on a full-time basis.
(b) STAFF.—
(1) IN
GENERAL.—With the approval of the
Commission, the director may appoint and fix the
pay of such personnel as the director determines to
be appropriate.
(2) APPLICABILITY OF CERTAIN CIVIL SERVICE
LAWS.—The staff of the Commission shall be ap-
pointed subject to the provisions of title 5, United
States Code, governing appointments in the competi-
tive service, and shall be paid in accordance with the
provisions of chapter 51 and subchapter III of chap-
ter 53 of that title relating to classification and Gen-
eral Schedule pay rates.
(3) TEMPORARY STAFF.—With the approval of
the Commission, the director may appoint such em-
ployees as may be necessary to carry out the func-
tions of the Commission for a period of not more
than 1 year, without regard to the provisions of title
5, United States Code, governing appointments in
the competitive service, and without regard to the
provisions of chapter 51 and subchapter III of chap-
ter 53 of such title, except that the rates of pay for
such temporary staff shall not exceed the maximum
rate payable under section 5376 of title 5, United
States Code.
(c) EXPERTS
AND CONSULTANTS.—With the ap-
proval of the Commission, the director may procure tem-
porary and intermittent services under section 3109(b) of
title 5, United States Code at rates for individuals not
to exceed the maximum rate payable under section 5376
of title 5, United States Code.
(d) STAFF OF FEDERAL AGENCIES.—Upon the re-
quest of the Commission, the head of any Federal depart-
ment or agency may detail any of the personnel of that
department or agency to the Commission to assist the
Commission in carrying out its duties under this Act.
SEC. 7. POWERS OF THE COMMISSION.
(a) HEARINGS
AND SESSIONS.—The Commission
may, for the purpose of carrying out this Act—
(1) hold hearings, sit and act at times and
places, take testimony, and receive evidence as the
Commission considers appropriate; and
(2) administer oaths or affirmations to wit-
nesses appearing before the Commission.
(b) OBTAINING OFFICIAL DATA.—
(1) IN GENERAL.—The Commission may secure
directly from any department or agency of the
United States information necessary to enable it to
carry out this Act.
(2) PROVISION
OF
INFORMATION.—Upon the
request of the Chairperson of the Commission, the
head of any department or agency of the United
States shall furnish that information to the Commis-
sion.
(c) GIFTS, BEQUESTS, AND DEVISES.—
(1) IN
GENERAL.—The Commission may ac-
cept, use, and dispose of gifts, bequests, or devises
of services or property, both real and personal, for
the purpose of aiding or facilitating the work of the
Commission.
(2) DEPOSIT AND DISBURSEMENT.—Gifts, be-
quests, or devises of money and proceeds from sales
of other property received as gifts, bequests, or de-
vises shall be deposited in the Treasury and shall be
available for disbursement upon order of the Com-
mission.
(d) ADMINISTRATIVE SUPPORT SERVICES.—Upon
the request of the Commission, the Administrator of Gen-
eral Services shall provide to the Commission, on a reim-
bursable basis, the administrative support services nec-