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.
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 Sys-
tem Accountability Act of 1997’’.
SEC. 2. FINANCIAL AND MANAGERIAL AUDITS OF THE FED
ON AN ANNUAL BASIS.
Section 714(b) of title 31, United States Code, is
amended to read as follows:
‘‘(b) IN GENERAL.—
‘‘(1) AUDITS.—Under regulations prescribed by
the Comptroller General, the Comptroller General
shall audit each agency.
‘‘(2) FEDERAL RESERVE SYSTEM.—The audits
of the Board of Governors of the Federal Reserve
System and the Federal reserve banks—
‘‘(A) shall be conducted annually;
‘‘(B) shall include a full financial and man-
agerial audit; and
‘‘(C) may not include transactions for or
with a foreign central bank, government of a
foreign country, or nonprivate international fi-
nancing organization or any part of any discus-
sion or communication among or between mem-
bers of the Board of Governors of the Federal
Reserve System or officers or employees of such
Board which is related to any such trans-
action.’’.
SEC. 3. APPLICABILITY OF GOVERNMENT IN THE SUN-
SHINE ACT TO FED.
Section 552b(a)(1) of title 5, United States Code, is
amended by inserting ‘‘including the Board of Governors
of the Federal Reserve System,’’ after ‘‘advice and consent
of the Senate,’’.
SEC. 4. PRIMARY MISSION OF FED IS TO MAINTAIN STABLE
CURRENCY WITH MINIMAL FLUCTUATION IN
INTEREST RATES.
Section 10 of the Federal Reserve Act (12 U.S.C.
247a) is amended by adding at the end the following new
subsection:
‘‘(k) PRIMARY MISSION.—The primary mission of the
Board is to regulate the money supply so as to maintain
a stable currency with minimal fluctuation in interest
rates.’’.
SEC. 5. TRANSFER OF ADMINISTRATION OF BANK HOLDING
COMPANY ACT OF 1956 FROM FED TO FDIC.
(a) IN GENERAL.—The Bank Holding Company Act
of 1956 (12 U.S.C. 1841 et seq.) is amended by striking
‘‘Board’’ each place such term appears and inserting
‘‘Corporation’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 2(f) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1841(f)) is amended to read
as follows:
‘‘(f) CORPORATION.—The term ‘Corporation’ means
the Federal Deposit Insurance Corporation.’’.
(2) Section 3(q) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813(q)) is amended—
(A) in paragraph (2)—
(i) by inserting ‘‘and’’ after the semi-
colon at the end of subparagraph (D);
(ii) by striking ‘‘and’’ at the end of
subparagraph (E); and
(iii) by striking subparagraph (F);
and
(B) in paragraph (3)—
(i) by striking ‘‘or’’ after ‘‘District
bank),’’; and
(ii) by inserting ‘‘, or any bank hold-
ing company and any subsidiary of any
bank holding company (other than a
bank)’’ before the semicolon at the end.
(3) Section 8(b)(3) of the Federal Deposit In-
surance Act (12 U.S.C. 1818(b)(3)) is amended by
striking ‘‘Board of Governors of the Federal Reserve
System’’ and inserting ‘‘Corporation’’.
Æ