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house Bill H.R. 974

Should the Fed be Required to Give Congress Annual Updates on its Regulatory Activities?

Argument in favor

The Federal Reserve needs to keep congressional committees updated about its regulatory activities. Someone from the Fed should provide testimony to that effect even if the position of vice chair for supervision isn’t filled.

Victoria 's Opinion
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03/11/2019
The more transparency in government, the better.
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IllWill's Opinion
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03/11/2019
Congress should hear regularly from the Fed about regulatory matters. The Federal Reserve has an immense amount of responsibility regarding the health of our financial system and our economy in general and our representatives in Congress need to be updated on the activities of this institution.
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Cndrla's Opinion
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03/11/2019
Transparency is a good. Please support this legislation.
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Argument opposed

History shows that there’s no significant risk to forgoing these updates to Congress. There wasn’t a Vice Chairman for Supervision at the Fed during the Obama administration & committees can always ask the chair directly.

MFein10's Opinion
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03/11/2019
The Federal Reserve should stay away from political interference and grandstanding members of Congress. Also, Congress doesn’t need more days away from legislating.
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Dolores's Opinion
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03/11/2019
Totally seperAte from president and Congress so can operate without political or partisan pressures. That was how and why it was set up. There were flaws uncovered in 2008, absolutely and fixes were put in place. Watch a rerun of last nights 60 Minutes for a great discussion on this topic. Consider the greater risk of hacking our financial systems and accounts by foreign entities!
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Linda's Opinion
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03/11/2019
I oppose. This information is available to Congress. Adding another committee is unnecessary. If Congress needs a brief, requesting a review & report can be requested. Now if they could not request information, I’d agree to an annual report. This repetitive action will just waste time. Congress needs to spend on priority issues.
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bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
      senate Committees
      Committee on Banking, Housing, and Urban Affairs
  • The house has not voted
      house Committees
      Committee on Financial Services
    IntroducedFebruary 5th, 2019

What is House Bill H.R. 974?

This bill — the Federal Reserve Supervision Testimony Clarification Act — would require the Chairman of the Federal Reserve (aka the Fed) or a designee to appear before the Senate Banking Committee and the House Financial Services Committee at annual hearings if the position of Vice Chairman for Supervision of the Federal Reserve is vacant. The topic of these hearings is the Fed’s efforts, activities, objectives, and plans with respect to the conduct of supervision and regulation of depository institution holding companies and other financial firms supervised by the Fed.

Impact

The Fed; Senate Committee on Banking, Housing, and Urban Affairs; House Committee on Financial Services; Vice Chairman for Supervision of the Fed; and the Fed Chairman.

Cost of House Bill H.R. 974

$0.00
When this bill was introduced in the 115th Congress, the CBO estimated that implementing it wouldn’t significantly affect the Fed’s budget.

More Information

In-DepthRep. Josh Gottheimer (D-NJ) reintroduced this bill from the 115th Congress to require the Fed’s Vice Chairman to provide written testimony on board efforts regarding certain financial institutions’ supervision. Rep. Frank Lucas (R-OK), who introduced this bill in the 115th Congress, said the following in a floor speech introducing this bill to the full House after its unanimous passage out of the House Financial Services Committee:

“Congress gave the Federal Reserve much greater regulatory authority under Dodd-Frank. The bill established the Vice Chair for Supervision position to oversee those efforts. But the first confirmed appointee to that position took office only last year, a full 7 years since Dodd-Frank. During that time, Congress received minimal testimony on regulatory issues from the Fed. Typically, other officials who didn't oversee regulatory efforts gave testimony in this regard. But the key point is, Dodd-Frank requires only the Vice Chair for Supervision to give that testimony. While we are grateful that other Fed officials decided to speak to Congress on regulatory issues, they didn't have to under the law. My bill would prevent that situation from arising ever again. Under my bill, if there is no Vice Chair for Supervision, either the Fed Chair or their designee will be required to give annual testimony on regulatory matters… [T]his bill is about the oversight authority of Congress and the constituents we represent. It remains vitally important that we and our Senate friends hear from these agencies. Not only that, we should hear from the officials who are very knowledgeable on the issues in their areas, particularly when these regulations have a large effect on capital and money markets. Otherwise, our constituents will become even more distrustful of government. Transparency is key. In fact, it is one of our greatest responsibilities as Members of Congress. My bill promotes that responsibility, and, thus, deserves to be passed.”

This bill has one cosponsor, Rep. Frank Lucas (R-OK), in the current session of Congress. Last Congress, Rep. Lucas introduced this bill without any cosponsors, and it passed the full House but failed to receive a Senate committee vote.


Of NoteThe Dodd-Frank Act established the position of Vice Chair for Supervision at the Fed’s Board of Governors. The Vice Chairman for Supervision is responsible for developing policy recommendations for the Fed on the supervision and regulation of depository institution holding companies and other financial firms supervised by the Fed. He or she is also responsible for overseeing the supervision and regulation of such firms.

Under current law, the Vice Chairman for Supervision of the Board of Governors of the Fed is required to appear before the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on FInancial Services at annual hearings. At these hearings, the Vice Chairman for Supervision is required to give a report regarding the Fed’s efforts, activities, objectives, and plans with respect to the conduct of supervision and regulation of depository institution holding companies and other financial firms supervised by the Fed. Currently, when the Vice Chairman for Supervision position is vacant, these hearings simply don’t happen.

The Obama administration failed to appoint a Vice Chairman for Supervision, so former Fed Governor Daniel Tarullo served as the de facto Vice Chairman for Supervision. However, since he wasn’t formally appointed as Vice Chairman for Supervision, Tarullo wasn’t required to attend the semi-annual Congressional hearings.


Media:

Summary by Lorelei Yang

(Photo Credit: iStockphoto.com / traveler1116)

AKA

Federal Reserve Supervision Testimony Clarification Act

Official Title

To amend the Federal Reserve Act to require the Vice Chairman for Supervision of the Board of Governors of the Federal Reserve System to provide a written report, and for other purposes.

    The more transparency in government, the better.
    Like (33)
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    The Federal Reserve should stay away from political interference and grandstanding members of Congress. Also, Congress doesn’t need more days away from legislating.
    Like (8)
    Follow
    Share
    Congress should hear regularly from the Fed about regulatory matters. The Federal Reserve has an immense amount of responsibility regarding the health of our financial system and our economy in general and our representatives in Congress need to be updated on the activities of this institution.
    Like (18)
    Follow
    Share
    Transparency is a good. Please support this legislation.
    Like (16)
    Follow
    Share
    Totally seperAte from president and Congress so can operate without political or partisan pressures. That was how and why it was set up. There were flaws uncovered in 2008, absolutely and fixes were put in place. Watch a rerun of last nights 60 Minutes for a great discussion on this topic. Consider the greater risk of hacking our financial systems and accounts by foreign entities!
    Like (6)
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    Share
    Monetary policy is supposed to be set by Congress. Since this is not already occurring it is clear that Congress is just maintaining its ongoing disdain for doing its constitutional responsibilities unless it is politically convenient.
    Like (6)
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    I oppose. This information is available to Congress. Adding another committee is unnecessary. If Congress needs a brief, requesting a review & report can be requested. Now if they could not request information, I’d agree to an annual report. This repetitive action will just waste time. Congress needs to spend on priority issues.
    Like (5)
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    Best to be monitored so we do not repeat 2008
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    Not just to Congress but to the American people also they MYST undergo a full independent audit
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    Duh! What a frigging stupid question. Leave we're wasting time and space on the floor to vote on some stupid shit like this.
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    It’s called transparency
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    We need to have transparency between Federal agencies and the legislative branch
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    Yes
    Like (4)
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    How can laws be passed if congress is not updated
    Like (4)
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    Yes. This needs to happen. Congress needs to know how much funding is in the purse it controls. The Bureau of Fiscal Service & US Treasury don't report all funding it receives to Congress. I know this to be true because I sent funding to the Gifts to the United States Fund. I then watched for it to be added in. It never was. I have requested the IRS to look into the matter since my EIN number was written on the payment. Someone kept it.
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    Absolutely! Transparency, transparency, transparency...
    Like (3)
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    The more transparency t
    Like (3)
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    Someone should keep an eye on them so they don’t kill us via deregulation. Obviously, the average garden variety Americans are of no interest to them.
    Like (3)
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    Yes. Fed should give Congress info.
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    End the Fed. Are we still supposed to believe it helps the economy? Maybe after the next bubble, eh?
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