[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5018 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5018

 To amend the Federal Reserve Act to establish requirements for policy 
  rules and blackout periods of the Federal Open Market Committee, to 
establish requirements for certain activities of the Board of Governors 
         of the Federal Reserve System, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 7, 2014

 Mr. Huizenga of Michigan (for himself and Mr. Garrett) introduced the 
   following bill; which was referred to the Committee on Financial 
Services, and in addition to the Committee on 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 establish requirements for policy 
  rules and blackout periods of the Federal Open Market Committee, to 
establish requirements for certain activities of the Board of Governors 
         of the Federal Reserve System, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Reserve Accountability and 
Transparency Act of 2014''.

SEC. 2. REQUIREMENTS FOR POLICY RULES OF THE FEDERAL OPEN MARKET 
              COMMITTEE.

    (a) In General.--The Federal Reserve Act (12 U.S.C. 221 et seq.) is 
amended by inserting after section 2B the following new section:

``SEC. 2C. DIRECTIVE POLICY RULES OF THE FEDERAL OPEN MARKET COMMITTEE.

    ``(a) Definitions.--In this section the following definitions shall 
apply:
            ``(1) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means the Committee on 
        Financial Services of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate.
            ``(2) Directive policy rule.--The term `Directive Policy 
        Rule' means a policy rule developed by the Federal Open Market 
        Committee that meets the requirements of subsection (c) and 
        that provides the basis for the Open Market Operations 
        Directive.
            ``(3) GDP.--The term `GDP' means the gross domestic product 
        of the United States as computed and published by the 
        Department of Commerce.
            ``(4) Intermediate policy input.--The term `Intermediate 
        Policy Input'--
                    ``(A) may include any variable determined by the 
                Federal Open Market Committee as a necessary input to 
                guide open-market operations;
                    ``(B) shall include an estimate of, and the method 
                of calculation for, the current rate of inflation or 
                current inflation expectations; and
                    ``(C) shall include, specifying whether the 
                variable or estimate is historical, current, or a 
                forecast and the method of calculation, at least one 
                of--
                            ``(i) an estimate of real GDP, nominal GDP, 
                        or potential GDP;
                            ``(ii) an estimate of the monetary 
                        aggregate compiled by the Board of Governors of 
                        the Federal Reserve System and Federal reserve 
                        banks; or
                            ``(iii) an interactive variable or a net 
                        estimate composed of the estimates described in 
                        clauses (i) and (ii).
            ``(5) Legislative day.--The term `legislative day' means a 
        day on which either House of Congress is in session.
            ``(6) Open market operations directive.--The term `Open 
        Market Operations Directive' means an order to achieve a 
        specified Policy Instrument Target provided to the Federal 
        Reserve Bank of New York by the Federal Open Market Committee 
        pursuant to powers authorized under section 14 of this Act that 
        guide open-market operations.
            ``(7) Policy instrument.--The term `Policy Instrument' 
        means--
                    ``(A) the nominal Federal funds rate;
                    ``(B) the nominal rate of interest paid on 
                nonborrowed reserves; or
                    ``(C) the discount window primary credit interest 
                rate most recently published on the Federal Reserve 
                Statistical Release on selected interest rates (daily 
                or weekly), commonly referred to as the H.15 release.
            ``(8) Policy instrument target.--The term `Policy 
        Instrument Target' means the target for the Policy Instrument 
        specified in the Open Market Operations Directive.
            ``(9) Reference policy rule.--The term `Reference Policy 
        Rule' means a calculation of the nominal Federal funds rate as 
        equal to the sum of the following:
                    ``(A) The rate of inflation over the previous four 
                quarters.
                    ``(B) One-half of the percentage deviation of the 
                real GDP from an estimate of potential GDP.
                    ``(C) One-half of the difference between the rate 
                of inflation over the previous four quarters and two.
                    ``(D) Two.
    ``(b) Submitting a Directive Policy Rule.--Not later than 48 hours 
after the end of a meeting of the Federal Open Market Committee, the 
Chairman of the Federal Open Market Committee shall submit to the 
appropriate congressional committees and the Comptroller General of the 
United States a Directive Policy Rule and a statement that identifies 
the members of the Federal Open Market Committee who voted in favor of 
the Rule.
    ``(c) Requirements for a Directive Policy Rule.--A Directive Policy 
Rule shall--
            ``(1) identify the Policy Instrument the Directive Policy 
        Rule is designed to target;
            ``(2) describe the strategy or rule of the Federal Open 
        Market Committee for the systematic quantitative adjustment of 
        the Policy Instrument Target to respond to a change in the 
        Intermediate Policy Inputs;
            ``(3) include a function that comprehensively models the 
        interactive relationship between the Intermediate Policy 
        Inputs;
            ``(4) include the coefficients of the Directive Policy Rule 
        that generate the current Policy Instrument Target and a range 
        of predicted future values for the Policy Instrument Target if 
        changes occur in any Intermediate Policy Input;
            ``(5) describe the procedure for adjusting the supply of 
        bank reserves to achieve the Policy Instrument Target;
            ``(6) include a statement as to whether the Directive 
        Policy Rule substantially conforms to the Reference Policy Rule 
        and, if applicable--
                    ``(A) an explanation of the extent to which it 
                departs from the Reference Policy Rule;
                    ``(B) a detailed justification for that departure; 
                and
                    ``(C) a description of the circumstances under 
                which the Directive Policy Rule may be amended in the 
                future;
            ``(7) include a certification that such Rule is expected to 
        support the economy in achieving stable prices and maximum 
        natural employment over the long term; and
            ``(8) include a calculation that describes with 
        mathematical precision the expected annual inflation rate over 
        a 5-year period.
    ``(d) GAO Report.--The Comptroller General of the United States 
shall compare the Directive Policy Rule submitted under subsection (b) 
with the rule that was most recently submitted to determine whether the 
Directive Policy Rule has materially changed. If the Directive Policy 
Rule has materially changed, the Comptroller General shall, not later 
than 7 days after each meeting of the Federal Open Market Committee, 
conduct an audit of the Rule and submit a report to the appropriate 
congressional committees specifying whether the Rule submitted after 
that meeting and the Federal Open Market Committee are in compliance 
with this section.
    ``(e) Changing Market Conditions.--
            ``(1) Rule of construction.--Nothing in this Act shall be 
        construed to require that the plans with respect to the 
        systematic quantitative adjustment of the Policy Instrument 
        Target described under subsection (c)(2) be implemented if the 
        Federal Open Market Committee determines that such plans cannot 
        or should not be achieved due to changing market conditions.
            ``(2) GAO approval of update.--Upon determining that plans 
        described in paragraph (1) cannot or should not be achieved, 
        the Federal Open Market Committee shall submit an explanation 
        for that determination and an updated version of the Directive 
        Policy Rule to the Comptroller General of the United States and 
        the appropriate congressional committees not later than 48 
        hours after making the determination. The Comptroller General 
        shall, not later than 48 hours after receiving such updated 
        version, conduct an audit and issue a report determining 
        whether such updated version and the Federal Open Market 
        Committee are in compliance with this section.
    ``(f) Directive Policy Rule and Federal Open Market Committee Not 
in Compliance.--
            ``(1) In general.--If the Comptroller General of the United 
        States determines that the Directive Policy Rule and the 
        Federal Open Market Committee are not in compliance with this 
        section in the report submitted pursuant to subsection (d), or 
        that the updated version of the Directive Policy Rule and the 
        Federal Open Market Committee are not in compliance with this 
        section in the report submitted pursuant to subsection (e)(2), 
        the Chairman of the Board of Governors of the Federal Reserve 
        System shall, not later than 7 legislative days after the date 
        of submission of such a report, testify before the appropriate 
        congressional committees as to why the Directive Policy Rule, 
        the updated version, or the Federal Open Market Committee is 
        not in compliance.
            ``(2) GAO audit.--Notwithstanding subsection (b) of section 
        714 of title 31, United States Code, upon submitting a report 
        of noncompliance pursuant to subsection (d) or subsection 
        (e)(2) and after the period of 7 legislative days described in 
        paragraph (1), the Comptroller General shall audit the conduct 
        of monetary policy by the Board of Governors of the Federal 
        Reserve System and the Federal Open Market Committee upon 
        request of the appropriate congressional committee. Such 
        committee may specify the parameters of such audit.
    ``(g) Congressional Hearings.--The Chairman of the Board of 
Governors of the Federal Reserve System shall, if requested by either 
of the appropriate congressional committees and not later than 7 
legislative days after such request, appear before such committee to 
explain any change to the Directive Policy Rule.''.
    (b) Conforming Amendment.--The second sentence of subsection (b) of 
section 714 of title 31, United States Code, is amended by striking 
``Audits'' and inserting ``Except as provided in section 2C(f) of the 
Federal Reserve Act, audits''.

SEC. 3. FEDERAL OPEN MARKET COMMITTEE BLACKOUT PERIOD.

    Section 12A of the Federal Reserve Act (12 U.S.C. 263) is amended 
by adding at the end the following new subsection:
    ``(d) Blackout Period.--
            ``(1) In general.--During a blackout period, the only 
        public communications that may be made by members and staff of 
        the Committee with respect to macroeconomic or financial 
        developments or about current or prospective monetary policy 
        issues are the following:
                    ``(A) The dissemination of published data, surveys, 
                and reports that have been cleared for publication by 
                the Board of Governors of the Federal Reserve System.
                    ``(B) Answers to technical questions specific to a 
                data release.
                    ``(C) Communications with respect to the prudential 
                or supervisory functions of the Board of Governors.
            ``(2) Blackout period defined.--For purposes of this 
        subsection, and with respect to a meeting of the Committee 
        described under subsection (a), the term `blackout period' 
        means the time period that--
                    ``(A) begins immediately after midnight on the day 
                that is one week prior to the date on which such 
                meeting takes place; and
                    ``(B) ends at midnight on the day after the date on 
                which such meeting takes place.''.

SEC. 4. REQUIREMENTS FOR STRESS TESTS AND SUPERVISORY LETTERS FOR THE 
              BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.

    (a) Stress Test Rulemaking, GAO Review, and Publication of 
Results.--Section 165(i)(1)(B) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (12 U.S.C. 5365(i)(1)(B)) is amended--
            (1) by amending clause (i) to read as follows:
                            ``(i) shall--
                                    ``(I) issue regulations, after 
                                providing for public notice and 
                                comment, that provide for at least 3 
                                different sets of conditions under 
                                which the evaluation required by this 
                                subsection shall be conducted, 
                                including baseline, adverse, and 
                                severely adverse, and methodologies, 
                                including models used to estimate 
                                losses on certain assets; and
                                    ``(II) provide copies of such 
                                regulations to the Comptroller General 
                                of the United States and the Panel of 
                                Economic Advisors of the Congressional 
                                Budget Office before publishing such 
                                regulations;''; and
            (2) in clause (v), by inserting before the period the 
        following: ``, including any results of a resubmitted test''.
    (b) Publication of the Number of Supervisory Letters Sent to the 
Largest Bank Holding Companies.--Section 165 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (12 U.S.C. 5365) is further 
amended by adding at the end the following new subsection:
    ``(l) Publication of Supervisory Letter Information.--The Board of 
Governors shall publicly disclose--
            ``(1) the aggregate number of supervisory letters sent to 
        bank holding companies described in subsection (a) since the 
        date of the enactment of this section, and keep such number 
        updated; and
            ``(2) the aggregate number of such letters that are 
        designated as `Matters Requiring Attention' and the aggregate 
        number of such letters that are designated as `Matters 
        Requiring Immediate Attention'.''.

SEC. 5. FREQUENCY OF TESTIMONY OF THE CHAIRMAN OF THE BOARD OF 
              GOVERNORS OF THE FEDERAL RESERVE SYSTEM TO CONGRESS.

    (a) In General.--Section 2B of the Federal Reserve Act (12 U.S.C. 
225b) is amended--
            (1) by striking ``semi-annual'' each place it appears and 
        inserting ``quarterly''; and
            (2) in subsection (a)(2)--
                    (A) by inserting ``and October 20'' after ``July 
                20'' each place it appears; and
                    (B) by inserting ``and May 20'' after ``February 
                20'' each place it appears.
    (b) Conforming Amendment.--Paragraph (12) of section 10 of the 
Federal Reserve Act (12 U.S.C. 247b(12)) is amended by striking ``semi-
annual'' and inserting ``quarterly''.

SEC. 6. VICE CHAIRMAN FOR SUPERVISION REPORT REQUIREMENT.

    Section 10 of the Federal Reserve Act is amended--
            (1) by redesignating paragraph (12) as paragraph (11); and
            (2) in paragraph (11), as so redesignated, by adding at the 
        end the following: ``In each such appearance, the Vice Chairman 
        for Supervision shall provide written testimony that includes 
        the status of all pending and anticipated rulemakings that are 
        being made by the Board of Governors of the Federal Reserve 
        System. If, at the time of any appearance described in this 
        paragraph, the position of Vice Chairman for Supervision is 
        vacant, the Vice Chairman for the Board of Governors of the 
        Federal Reserve System (who has the responsibility to serve in 
        the absence of the Chairman) shall appear instead and provide 
        the required written testimony. If, at the time of any 
        appearance described in this paragraph, both Vice Chairman 
        positions are vacant, the Chairman of the Board of Governors of 
        the Federal Reserve System shall appear instead and provide the 
        required written testimony.''.

SEC. 7. ECONOMIC ANALYSIS OF REGULATIONS OF THE BOARD OF GOVERNORS OF 
              THE FEDERAL RESERVE SYSTEM.

    Section 11 of the Federal Reserve Act (12 U.S.C. 248) is amended by 
inserting after subsection (l) the following new subsection:
    ``(m) Consideration of Economic Impacts.--
            ``(1) In general.--Before issuing any regulation, the Board 
        of Governors of the Federal Reserve System shall--
                    ``(A) clearly identify the nature and source of the 
                problem that the proposed regulation is designed to 
                address, assess the significance of that problem, and 
                assess whether any new regulation is warranted;
                    ``(B) assess the qualitative and quantitative costs 
                and benefits of the proposed regulation and propose or 
                adopt a regulation only on a reasoned determination 
                that the benefits of the proposed regulation outweigh 
                the costs of the regulation;
                    ``(C) identify and assess available alternatives to 
                the proposed regulation that were considered, including 
                any alternative offered by a member of the Board of 
                Governors of the Federal Reserve System or the Federal 
                Open Market Committee and including any modification of 
                an existing regulation, together with an explanation of 
                why the regulation meets the regulatory objectives more 
                effectively than the alternatives; and
                    ``(D) ensure that any proposed regulation is 
                accessible, consistent, written in plain language, and 
                easy to understand and shall measure, and seek to 
                improve, the actual results of regulatory requirements.
            ``(2) Considerations and actions.--
                    ``(A) Required actions.--In deciding whether and 
                how to regulate, the Board shall assess the costs and 
                benefits of available regulatory alternatives, 
                including the alternative of not regulating, and choose 
                the approach that maximizes net benefits. Specifically, 
                the Board shall--
                            ``(i) evaluate whether, consistent with 
                        achieving regulatory objectives, the regulation 
                        is tailored to impose the least impact on the 
                        availability of credit and economic growth and 
                        to impose the least burden on society, 
                        including market participants, individuals, 
                        businesses of different sizes, and other 
                        entities (including State and local 
                        governmental entities), taking into account, to 
                        the extent practicable, the cumulative costs of 
                        regulations; and
                            ``(ii) evaluate whether the regulation is 
                        inconsistent, incompatible, or duplicative of 
                        other Federal regulations.
                    ``(B) Additional considerations.--In addition, in 
                making a reasoned determination of the costs and 
                benefits of a proposed regulation, the Board shall, to 
                the extent that each is relevant to the particular 
                proposed regulation, take into consideration the impact 
                of the regulation, including secondary costs such as an 
                increase in the cost or a reduction in the availability 
                of credit or investment services or products, on--
                            ``(i) the safety and soundness of the 
                        United States banking system;
                            ``(ii) market liquidity in securities 
                        markets;
                            ``(iii) small businesses;
                            ``(iv) community banks;
                            ``(v) economic growth;
                            ``(vi) cost and access to capital;
                            ``(vii) market stability;
                            ``(viii) global competitiveness;
                            ``(ix) job creation;
                            ``(x) the effectiveness of the monetary 
                        policy transmission mechanism; and
                            ``(xi) employment levels.
            ``(3) Explanation and comments.--The Board shall explain in 
        its final rule the nature of comments that it received and 
        shall provide a response to those comments in its final rule, 
        including an explanation of any changes that were made in 
        response to those comments and the reasons that the Board did 
        not incorporate concerns related to the potential costs or 
        benefits in the final rule.
            ``(4) Postadoption impact assessment.--
                    ``(A) In general.--Whenever the Board adopts or 
                amends a regulation designated as a `major rule' within 
                the meaning of section 804(2) of title 5, United States 
                Code, it shall state, in its adopting release, the 
                following:
                            ``(i) The purposes and intended 
                        consequences of the regulation.
                            ``(ii) The assessment plan that will be 
                        used, consistent with the requirements of 
                        subparagraph (B), to assess whether the 
                        regulation has achieved the stated purposes.
                            ``(iii) Appropriate postimplementation 
                        quantitative and qualitative metrics to measure 
                        the economic impact of the regulation and the 
                        extent to which the regulation has accomplished 
                        the stated purpose of the regulation.
                            ``(iv) Any reasonably foreseeable indirect 
                        effects that may result from the regulation.
                    ``(B) Requirements of assessment plan and report.--
                            ``(i) Requirements of plan.--The assessment 
                        plan required under this paragraph shall 
                        consider the costs, benefits, and intended and 
                        unintended consequences of the regulation. The 
                        plan shall specify the data to be collected, 
                        the methods for collection and analysis of the 
                        data, and a date for completion of the 
                        assessment. The assessment plan shall include 
                        an analysis of any jobs added or lost as a 
                        result of the regulation, differentiating 
                        between public and private sector jobs.
                            ``(ii) Submission and publication of 
                        report.--The Board shall, not later than 2 
                        years after the publication of the adopting 
                        release, publish the assessment plan in the 
                        Federal Register for notice and comment. If the 
                        Board determines, at least 90 days before the 
                        deadline for publication of the assessment 
                        plan, that an extension is necessary, the Board 
                        shall publish a notice of such extension and 
                        the specific reasons why the extension is 
                        necessary in the Federal Register. Any material 
                        modification of the assessment plan, as 
                        necessary to assess unforeseen aspects or 
                        consequences of the regulation, shall be 
                        promptly published in the Federal Register for 
                        notice and comment.
                            ``(iii) Data collection not subject to 
                        notice and comment requirements.--If the Board 
                        has published the assessment plan for notice 
                        and comment at least 30 days before the 
                        adoption of a regulation designated as a major 
                        rule, the collection of data under the 
                        assessment plan shall not be subject to the 
                        notice and comment requirements in section 
                        3506(c) of title 44, United States Code 
                        (commonly referred to as the Paperwork 
                        Reduction Act). Any material modification of 
                        the plan that requires collection of data not 
                        previously published for notice and comment 
                        shall also be exempt from such requirements if 
                        the Board has published notice in the Federal 
                        Register for comment on the additional data to 
                        be collected, at least 30 days before the 
                        initiation of data collection.
                            ``(iv) Final action.--Not later than 180 
                        days after publication of the assessment plan 
                        in the Federal Register, the Board shall issue 
                        for notice and comment a proposal to amend or 
                        rescind the regulation, or shall publish a 
                        notice that the Board has determined that no 
                        action will be taken on the regulation. Such a 
                        notice will be deemed a final agency action.
            ``(5) Covered regulations and other actions.--Solely as 
        used in this subsection, the term `regulation'--
                    ``(A) means a statement of general applicability 
                and future effect that is designed to implement, 
                interpret, or prescribe law or policy, or to describe 
                the procedure or practice requirements of the Board of 
                Governors, including rules, orders of general 
                applicability, interpretive releases, and other 
                statements of general applicability that the Board of 
                Governors intends to have the force and effect of law; 
                and
                    ``(B) does not include--
                            ``(i) a regulation issued in accordance 
                        with the formal rulemaking provisions of 
                        section 556 or 557 of title 5, United States 
                        Code;
                            ``(ii) a regulation that is limited to the 
                        organization, management, or personnel matters 
                        of the Board of Governors;
                            ``(iii) a regulation promulgated pursuant 
                        to statutory authority that expressly prohibits 
                        compliance with this provision; or
                            ``(iv) a regulation that is certified by 
                        the Board of Governors to be an emergency 
                        action, if such certification is published in 
                        the Federal Register.''.

SEC. 8. SALARIES, FINANCIAL DISCLOSURES, AND OFFICE STAFF OF THE BOARD 
              OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.

    (a) In General.--Section 11 of the Federal Reserve Act (12 U.S.C. 
248) is further amended--
            (1) by redesignating the second subsection (s) (relating to 
        assessments, fees, and other charges for certain companies) as 
        subsection (t); and
            (2) by adding at the end the following new subsections:
    ``(u) Ethics Standards for Members and Employees.--
            ``(1) Prohibited and restricted financial interests and 
        transactions.--The members and employees of the Board of 
        Governors of the Federal Reserve System shall be subject to the 
        provisions under section 4401.102 of title 5, Code of Federal 
        Regulations, to the same extent as such provisions apply to an 
        employee of the Securities and Exchange Commission.
            ``(2) Treatment of brokerage accounts and availability of 
        account statements.--The members and employees of the Board of 
        Governors of the Federal Reserve System shall--
                    ``(A) disclose all brokerage accounts that they 
                maintain, as well as those in which they control 
                trading or have a financial interest (including managed 
                accounts, trust accounts, investment club accounts, and 
                the accounts of spouses or minor children who live with 
                the member or employee); and
                    ``(B) with respect to any securities account that 
                the member or employee is required to disclose to the 
                Board of Governors, authorize their brokers and dealers 
                to send duplicate account statements directly to Board 
                of Governors.
            ``(3) Prohibitions related to outside employment and 
        activities.--The members and employees of the Board of 
        Governors of the Federal Reserve System shall be subject to the 
        prohibitions related to outside employment and activities 
        described under section 4401.103(c) of title 5, Code of Federal 
        Regulations, to the same extent as such prohibitions apply to 
        an employee of the Securities and Exchange Commission.
            ``(4) Additional ethics standards.--The members and 
        employees of the Board of Governors of the Federal Reserve 
        System shall be subject to--
                    ``(A) the employee responsibilities and conduct 
                regulations of the Office of Personnel Management under 
                part 735 of title 5, Code of Federal Regulations;
                    ``(B) the canons of ethics contained in subpart C 
                of part 200 of title 17, Code of Federal Regulations, 
                to the same extent as such subpart applies to the 
                employees of the Securities and Exchange Commission; 
                and
                    ``(C) the regulations concerning the conduct of 
                members and employees and former members and employees 
                contained in subpart M of part 200 of title 17, Code of 
                Federal Regulations, to the same extent as such subpart 
                applies to the employees of the Securities and Exchange 
                Commission.
    ``(v) Disclosure of Staff Salaries and Financial Information.--The 
Board of Governors of the Federal Reserve System shall make publicly 
available, on the website of the Board of Governors, a searchable 
database that contains the names of all members, officers, and 
employees of the Board of Governors and each Federal reserve bank who 
receive an annual salary in excess of the annual rate of basic pay for 
GS-15 of the General Schedule, and--
            ``(1) the yearly salary information for such individuals, 
        along with any nonsalary compensation received by such 
        individuals; and
            ``(2) any financial disclosures required to be made by such 
        individuals.''.
    (b) Office Staff for Each Member of the Board of Governors.--
Subsection (l) of section 11 of the Federal Reserve Act (12 U.S.C. 248) 
is amended by adding at the end the following: ``Each member of the 
Board of Governors of the Federal Reserve System may employ, at a 
minimum, 2 individuals, with such individuals selected by such member 
and the salaries of such individuals set by such member. A member may 
employ additional individuals as determined necessary by the Board of 
Governors.''.

SEC. 9. REQUIREMENTS FOR INTERNATIONAL NEGOTIATIONS.

    (a) Board of Governors Requirements.--Section 11 of the Federal 
Reserve Act (12 U.S.C. 248), as amended by section 8 of this Act, is 
further amended by adding at the end the following new subsection:
    ``(w) International Negotiations.--
            ``(1) Notice of negotiations; consultation.--At least 90 
        calendar days before any member or employee of the Board of 
        Governors of the Federal Reserve System enters into 
        negotiations with any foreign or multinational entity, the 
        Board of Governors shall--
                    ``(A) issue a notice of negotiations to the 
                Committee on Financial Services of the House of 
                Representatives and the Committee on Banking, Housing, 
                and Urban Affairs of the Senate;
                    ``(B) make such notice available to the public, 
                including on the website of the Board of Governors; and
                    ``(C) solicit public comment, and consult with the 
                committees described under subparagraph (A), with 
                respect to the topic matter, scope, and goals of the 
                negotiations.
            ``(2) Public reports on negotiations.--After the end of any 
        negotiation described under paragraph (1), the Board of 
        Governors shall issue a public report on the topics that were 
        discussed at the negotiation and any new or revised rulemakings 
        or policy changes that the Board of Governors believes should 
        be implemented as a result of the negotiations.
            ``(3) Notice of agreements; consultation.--At least 90 
        calendar days before any member or employee of the Board of 
        Governors of the Federal Reserve System enters into any 
        agreement with any foreign or multinational entity, the Board 
        of Governors shall--
                    ``(A) issue a notice of agreement to the Committee 
                on Financial Services of the House of Representatives 
                and the Committee on Banking, Housing, and Urban 
                Affairs of the Senate;
                    ``(B) make such notice available to the public, 
                including on the website of the Board of Governors; and
                    ``(C) consult with such committees with respect to 
                the nature of the agreement and any anticipated effects 
                such agreement will have on the economy.''.
    (b) FDIC Requirements.--The Federal Deposit Insurance Act (12 
U.S.C. 1811 et seq.) is amended by adding at the end the following new 
section:

``SEC. 50. INTERNATIONAL NEGOTIATIONS.

    ``(a) Notice of Negotiations; Consultation.--At least 90 calendar 
days before the Board of Directors enters into negotiations with any 
foreign or multinational entity, the Board of Directors shall--
            ``(1) issue a notice of negotiations to the Committee on 
        Financial Services of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate;
            ``(2) make such notice available to the public, including 
        on the website of the Corporation; and
            ``(3) solicit public comment, and consult with the 
        committees described under paragraph (1), with respect to the 
        topic matter, scope, and goals of the negotiations.
    ``(b) Public Reports on Negotiations.--After the end of any 
negotiation described under subsection (a), the Board of Directors 
shall issue a public report on the topics that were discussed at the 
negotiation and any new or revised rulemakings or policy changes that 
the Board of Directors believes should be implemented as a result of 
the negotiations.
    ``(c) Notice of Agreements; Consultation.--At least 90 calendar 
days before the Board of Directors enters into any agreement with any 
foreign or multinational entity, the Board of Directors shall--
            ``(1) issue a notice of agreement to the Committee on 
        Financial Services of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate;
            ``(2) make such notice available to the public, including 
        on the website of the Corporation; and
            ``(3) consult with such committees with respect to the 
        nature of the agreement and any anticipated effects such 
        agreement will have on the economy.''.
    (c) Treasury Requirements.--Section 325 of title 31, United States 
Code, is amended by adding at the end the following new subsection:
    ``(d) International Negotiations.--
            ``(1) Notice of negotiations; consultation.--At least 90 
        calendar days before the Secretary enters into negotiations 
        with any foreign or multinational entity, the Secretary shall--
                    ``(A) issue a notice of negotiations to the 
                Committee on Financial Services of the House of 
                Representatives and the Committee on Banking, Housing, 
                and Urban Affairs of the Senate;
                    ``(B) make such notice available to the public, 
                including on the website of the Department of the 
                Treasury; and
                    ``(C) solicit public comment, and consult with the 
                committees described under subparagraph (A), with 
                respect to the topic matter, scope, and goals of the 
                negotiations.
            ``(2) Public reports on negotiations.--After the end of any 
        negotiation described under paragraph (1), the Secretary shall 
        issue a public report on the topics that were discussed at the 
        negotiation and any new or revised rulemakings or policy 
        changes that the Secretary believes should be implemented as a 
        result of the negotiations.
            ``(3) Notice of agreements; consultation.--At least 90 
        calendar days before the Secretary enters into any agreement 
        with any foreign or multinational entity, the Secretary shall--
                    ``(A) issue a notice of agreement to the Committee 
                on Financial Services of the House of Representatives 
                and the Committee on Banking, Housing, and Urban 
                Affairs of the Senate;
                    ``(B) make such notice available to the public, 
                including on the website of the Department of the 
                Treasury; and
                    ``(C) consult with such committees with respect to 
                the nature of the agreement and any anticipated effects 
                such agreement will have on the economy.''.
                                 <all>