Report text available as:

  • TXT
  • PDF   (PDF provides a complete and accurate display of this text.) Tip ?

115th Congress }                                       { Rept. 115-1010
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                       { Part 1

======================================================================
 
CONGRESSIONAL ACCOUNTABILITY FOR EMERGENCY LENDING PROGRAMS ACT OF 2017

                                _______
                                

                November 6, 2018.--Ordered to be printed

                                _______
                                

Mr. Hensarling, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 4302]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 4302) to amend the Federal Reserve Act to create 
congressional accountability for emergency lending programs, 
and for other purposes, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                          Purpose and Summary

    On November 8, 2017, Representative Scott Tipton introduced 
H.R. 4302 the ``Congressional Accountability for Emergency 
Lending Programs Act of 2017'', which requires Congress to 
ratify Federal Reserve loans issued under Section 13(3) of the 
Federal Reserve Act while allowing any such loan to remain 
outstanding for up to 60 days without ratification, makes 
supervisory information more readily available to emergency 
lending decisions, and establishes a more prudent minimum 
interest rate for emergency loans.

                  Background and Need for Legislation

    H.R. 4302 clearly defines responsibilities of the Board of 
Governors of the Federal Reserve System (Federal Reserve) and 
the United States Congress to both preserve the Federal 
Reserve's capacity to extend emergency credit in a timely 
manner and hold Congress accountable for the fiscal 
consequences.
    The Federal Reserve enjoys political independence to 
conduct monetary policy. It does so, however, with 
accountability to Congress to comply with its dual legislative 
mandate of price stability and full employment.
    Accountability for fiscal policy, on the other hand, lies 
immediately with Congress. And while the Federal Reserve can 
effectively serve as our government's fiscal agent, it must 
absolutely avoid the expansion of its mandate to include a 
principal-role in credit policies. Nevertheless, Americans have 
repeatedly watched their monetary authority stretch its mandate 
to the breaking point, with the unfortunate result of increased 
financial fragility and decreased economic opportunity.
    Doing better requires a brighter line between 
accountability for monetary and credit policies. Announcing the 
bipartisan legislation with former U.S. Senator David Vitter of 
Louisiana, Senator Elizabeth Warren (D-MA) highlighted the 
consequences of our continued failure to do so:\1\
---------------------------------------------------------------------------
    \1\Senator Elizabeth Warren, ``Warren, Vitter Introduced Bailout 
Prevention Act,'' May 13, 2015. Press release available at https://
www.warren.senate.gov/?p=press_release&id=818.

          If big financial institutions know they can get cheap 
        cash from the Fed in a crisis, they have less incentive 
        to manage their risks carefully--which further 
---------------------------------------------------------------------------
        increases the chance of another financial crisis.

    Sounding a similar alarm while questioning the Honorable 
Alice Rivlin during a full-Committee hearing, Representative 
Brad Sherman (D-CA) emphasized that:\2\
---------------------------------------------------------------------------
    \2\Full-Committee hearing entitled ``Rethinking the Federal 
Reserve's Many Mandates on its 100-Year Anniversary,'' December 12, 
2013, available at https://financialservices.house.gov/
calendar/eventsingle.aspx?EventID=363599.

          I hope we look at Section 13(3), which remains the 
        most dangerous economic provision in our statute books. 
        It allows unlimited lending by the Fed, trillions of 
        dollars at times. And we at least ought to make sure 
        that those loans are default-risk-free, or as close to 
---------------------------------------------------------------------------
        that as they can achieve.

    Unfortunately, the ``danger'' that Congressman Sherman 
highlights will metastasize again if there is no accountability 
for credit policies. Following the introduction of the 
``Warren-Vitter'' legislation, Dennis Kelleher, President and 
CEO of Better Markets, thus warned that:\3\
---------------------------------------------------------------------------
    \3\Dennis Kelleher, ``Better Markets Statement on the Introduction 
of the Bailout Prevention Act,'' May 13, 2015. Accessed at https://
bettermarkets.com/newsroom/better-markets-statement-introduction-
bailout-prevention-act.

          While the much smaller $700 billion TARP program 
        received widespread scrutiny, the Fed's trillions in 
        bailouts did not. In fact, the public and even its 
        elected officials in Congress were mostly kept in the 
        dark about these bailouts. That was wrong. The Dodd-
        Frank Wall Street Reform and Consumer Protection Act 
        made some modest changes to limit the Fed's ability to 
        bailout Wall Street in the future, but more needs to be 
        done if taxpayers are to be protected, bailouts are to 
        be limited, too big to fail is to be ended and market 
        discipline is to apply to Wall Street like the rest of 
---------------------------------------------------------------------------
        America's banks and businesses.

    Observations like these led Columbia University's Charles 
Calomiris and Stanford University's Stephen Haber to ask a 
simple question: ``why do citizens tolerate this?''\4\ The 
Congressional Accountability for Emergency Lending Act answers 
that questions and would allow the Federal Reserve to serve as 
an agent for the government's credit policies, but only with 
the resolution of a Congress that is accountable to voters.
---------------------------------------------------------------------------
    \4\Charles W. Calomiris and Stephen H. Haber, Fragile by Design, 
Princeton University Press, 2014, p. 10.
---------------------------------------------------------------------------
    H.R. 4302 adopts the ``Warren-Vitter'' framework of 
Congressional authorization for emergency banking credit, which 
MIT Professor, Simon Johnson characterized:\5\
---------------------------------------------------------------------------
    \5\Senator Elizabeth Warren, ``Warren, Vitter Introduced Bailout 
Prevention Act,'' May 13, 2015. Press release available at https://
www.warren.senate.gov/?p=press_release&id=818.

          This bill proposes a major improvement to the 
        emergency powers of the Federal Reserve System. The 
        ability of the Fed to react to systemic danger remains 
        strong. But in this proposal, under certain 
        circumstances, the Fed would need not to just explain 
        its actions but also seek congressional approval. It 
        makes sense to fast track the approval process--so the 
        Fed will get a fair hearing and Members of Congress 
        must vote on whether to support what the Fed has done. 
        We retain sufficient flexibility and fire-fighting 
        capacity for the Fed, along with significantly more 
        democratic accountability. This is the best way to 
        safeguard our financial system while also ensuring that 
---------------------------------------------------------------------------
        the Fed retains its political legitimacy.

    By insulating monetary policy from the political pressures 
of credit policy, the Congressional Accountability for 
Emergency Lending Act can improve both monetary policy and 
credit policy, and do so in a manner that Americans for 
Financial Reform\6\ characterized as aligning ``not only with 
the intent of the Dodd-Frank Act, but with traditional 
principles of central bank lending that go back centuries.''\7\
---------------------------------------------------------------------------
    \6\``About AFR: Americans for Financial Reform is a nonpartisan and 
nonprofit coalition of more than 200 civil rights, consumer, labor, 
business, investor, faith-based, and civic and community groups. Formed 
in the wake of the 2008 crisis, we are working to lay the foundation 
for a strong, stable, and ethical financial system--one that serves the 
economy and the nation as a whole. AFR has been called ``the leading 
voice for Wall Street accountability'' in Washington (by Zach Carter of 
the Huffington Post).'' (Source: http://ourfinancialsecurity.org/about/
).
    \7\Quoted from Senator Elizabeth Warren, ``Warren, Vitter 
Introduced Bailout Prevention Act,'' May 13, 2015. Press release 
available at https://www.warren.senate.gov/?p=press_release&id=818.
---------------------------------------------------------------------------

                                Hearings

    The Committee on Financial Services Subcommittee on 
Monetary Policy and Trade held a hearing examining matters 
relating to H.R. 4302 on November 7, 2017.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
November 14, 2017, and ordered H.R. 4302 to be reported 
favorably to the House without amendment by a recorded vote of 
34 yeas to 25 nays (Record vote no. FC-100), a quorum being 
present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. The 
sole recorded vote was on a motion by Chairman Hensarling to 
report the bill favorably to the House without amendment. The 
motion was agreed to by a recorded vote of 34 yeas to 25 nays 
(Record vote no. FC-100), a quorum being present.


                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the findings and recommendations of 
the Committee based on oversight activities under clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
are incorporated in the descriptive portions of this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee states that H.R. 4302 
will provide for a more accountable emergency lending facility 
by providing for the Congressional approval of Federal Reserve 
loans issued under Section 13(3) of the Federal Reserve Act, 
making supervisory information more readily available to 
lending decisions, and establishing a more prudent minimum 
interest rate.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                 Congressional Budget Office Estimates

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 18, 2018.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4302, the 
Congressional Accountability for Emergency Lending Programs Act 
of 2017.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Nathaniel 
Frentz.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 4302--Congressional Accountability for Emergency Lending Programs 
        Act of 2017

    H.R. 4302 would amend the Federal Reserve's authority under 
section 13(3) of the Federal Reserve Act to create and use 
certain lending facilities.
    Under current law, the Federal Reserve has broad discretion 
to make loans to banks and nonbanks under unusual and exigent 
circumstances. Such lending requires the approval of the 
Secretary of the Treasury and at least five members of the 
Board of Governors of the Federal Reserve, must have broad-
based participant eligibility, and cannot be made to insolvent 
firms.
    In 2008, the Federal Reserve exercised its section 13(3) 
authority to create new lending facilities to provide liquidity 
in the context of the financial crisis. That lending resulted 
in interest earnings for the Federal Reserve that increased its 
remittances to the Treasury, which are recorded in the budget 
as revenues.
    H.R. 4302 would make a number of changes to the Federal 
Reserve's Section 13(3) lending authority:
           Limit eligibility to firms predominantly 
        engaged in financial activities,
           Require that emergency lending be used only 
        for circumstances that pose a threat to the financial 
        stability of the United States,
           Require approval of the Secretary of the 
        Treasury and two-thirds of the members of the Federal 
        Open Market Committee for emergency lending,
           Prohibit the Federal Reserve from accepting 
        equity capital as collateral for emergency lending and 
        require the Federal Reserve to issue a rule with 
        standards for collateral taken against emergency 
        lending,
           Add, as a condition of emergency lending, 
        that all federal banking regulators with jurisdiction 
        over a borrower to certify that the borrower is not 
        insolvent,
           Require a joint resolution of Congress 
        approving an emergency facility or else it is 
        terminated within 30 days of receiving a report 
        notifying Congress of recent lending activity, and 
        provide for a fast-track procedure for such a joint 
        resolution, and,
           Require that a minimum interest rate be 
        charged on emergency lending.
    Because enacting H.R. 4302 could affect revenues, pay-as-
you-go procedures apply. However, CBO has no basis for 
estimating the magnitude or direction of the effects on 
revenues. Based on its own analysis of historical lending and 
information provided by the Federal Reserve, CBO estimates that 
the amount of any emergency lending that would occur in the 
future would likely be reduced by the bill, in part from the 
new restrictions on eligible firms but primarily from the new 
required minimum interest rate. That lower amount of lending, 
at a higher interest rate, could either increase or decrease 
the Federal Reserve's earnings and thereby its remittances. Any 
such effects would be significantly discounted given the low 
probability of any emergency lending occurring over the next 10 
years.
    To the extent that such lending has effects on the broader 
economy, a reduction in the amount or types of lending could 
have budgetary effects that are much larger than any effect on 
Federal Reserve remittances.
    CBO has no basis for estimating whether enacting H.R. 4302 
would significantly increase net direct spending or on-budget 
deficits in any of the four consecutive 10-year periods 
beginning in 2029.
    H.R. 4302 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    The CBO staff contact for this estimate is Nathaniel 
Frentz. The estimate was reviewed by John McClelland, Assistant 
Director, Tax Analysis Division.

                       Federal Mandates Statement

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995.
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of the section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                    Duplication of Federal Programs

    In compliance with clause 3(c)(5) of rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes: (1) a 
program of the Federal Government known to be duplicative of 
another Federal program; (2) a program included in any report 
from the Government Accountability Office to Congress pursuant 
to section 21 of Public Law 111-139; or (3) a program related 
to a program identified in the most recent Catalog of Federal 
Domestic Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This Section cites H.R. 4302 as the Congressional 
Accountability for Emergency Lending Act of 2017.

Section 2. Congressional accountability for emergency lending programs

    This Section provides for the Congressional approval of 
Federal Reserve loans issued under Section 13(3) of the Federal 
Reserve Act, makes supervisory information more readily 
available to lending decisions, and establishes a more prudent 
minimum interest rate.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                          FEDERAL RESERVE ACT



           *       *       *       *       *       *       *
                    powers of federal reserve banks.

  Sec. 13. Any Federal reserve bank may receive from any of its 
member banks or other depository institutions, and from the 
United States, deposits of current funds in lawful money, 
national-bank notes, Federal reserve notes, or checks, and 
drafts, payable upon presentation or other items, and also, for 
collection, maturing notes and bills; or, solely for purposes 
of exchange or of collection, may receive from other Federal 
reserve banks deposits of current funds in lawful money, 
national-bank notes, or checks upon other Federal reserve 
banks, and checks and drafts, payable upon presentation within 
its district or other items, and maturing notes and bills 
payable within its district; or, solely for the purposes of 
exchange or of collection, may receive from any nonmember bank 
or trust company or other depository institution deposits of 
current funds in lawful money, national-bank notes, Federal 
reserve notes, checks and drafts payable upon presentation or 
other items, or maturing notes and bills: Provided, Such 
nonmember bank or trust company or other depository institution 
maintains with the Federal reserve bank of its district a 
balance in such amount as the Board determines taking into 
account items in transit, services provided by the Federal 
Reserve bank, and other factors as the Board may deem 
appropriate: Provided further, That nothing in this or any 
other section of this Act shall be construed as prohibiting a 
member or nonmember bank or other depository institution from 
making reasonable charges, to be determined and regulated by 
the Board of Governors of the Federal Reserve System, but in no 
case to exceed 10 cents per $100 or fraction thereof, based on 
the total of checks and drafts presented at any one time, for 
collection or payment of checks and drafts and remission 
therefor by exchange or otherwise; but no such charges shall be 
made against the Federal reserve banks.
   Upon the indorsement of any of its member banks, which shall 
be deemed a waiver of demand, notice and protest by such bank 
as to its own indorsement exclusively, any Federal reserve bank 
may discount notes, drafts, and bills of exchange arising out 
of actual commercial transactions; that is, notes, drafts, and 
bills of exchange issued or drawn for agricultural, industrial, 
or commercial purposes, or the proceeds of which have been 
used, or are to be used, for such purposes, the Board of 
Governors of the Federal Reserve System to have the right to 
determine or define the character of the paper thus eligible 
for discount, within the meaning of this Act. Nothing in this 
Act contained shall be construed to prohibit such notes, 
drafts, and bills of exchange, secured by staple agricultural 
products, or other goods, wares, or merchandise from being 
eligible for such discount, and the notes, drafts, and bills of 
exchange of factors issued as such making advances exclusively 
to producers of staple agricultural products in their raw state 
shall be eligible for such discount; but such definition shall 
not include notes, drafts, or bills covering merely investments 
or issued or drawn for the purpose of carrying or trading in 
stocks, bonds, or other investment securities, except bonds and 
notes of the Government of the United States. Notes, drafts, 
and bills admitted to discount under the terms of this 
paragraph must have a maturity at the time of discount of not 
more than 90 days, exclusive of grace.
  (3)(A) In unusual and exigent circumstances that pose a 
threat to the financial stability of the United States , the 
Board of Governors of the Federal Reserve System, by [the 
affirmative vote of not less than five members] the prior 
approval of the Secretary of the Treasury and not less than \2/
3\ of the members of the Federal Open Market Committee , may 
authorize any Federal reserve bank, during such periods as the 
said board may determine, at rates established in accordance 
with the provisions of section 14, subdivision (d), of this 
Act, to discount for any financial institution participant in 
any program or facility with broad-based eligibility, notes, 
drafts, and bills of exchange when such notes, drafts, and 
bills of exchange are indorsed or otherwise secured to the 
satisfaction of the Federal Reserve bank: Provided, That before 
discounting any such note, draft, or bill of exchange, the 
Federal reserve bank shall obtain evidence that such financial 
institution participant in any program or facility with broad-
based eligibility is unable to secure adequate credit 
accommodations from other banking institutions. All such 
discounts for any financial institution participant in any 
program or facility with broad-based eligibility shall be 
subject to such limitations, restrictions, and regulations as 
the Board of Governors of the Federal Reserve System may 
prescribe.
          (B)(i) As soon as is practicable after the date of 
        enactment of this subparagraph, the Board shall 
        establish, by regulation, in consultation with the 
        Secretary of the Treasury, the policies and procedures 
        governing emergency lending under this paragraph. Such 
        policies and procedures shall be designed to ensure 
        that any emergency lending program or facility is for 
        the purpose of providing liquidity to the financial 
        system, and not to aid a failing financial company, and 
        that the security for emergency loans is sufficient to 
        protect taxpayers from losses and that any such program 
        is terminated in a timely and orderly fashion. The 
        policies and procedures established by the Board shall 
        require that a Federal reserve bank assign, consistent 
        with sound risk management practices and to ensure 
        protection for the taxpayer, a lendable value to all 
        collateral for a loan executed by a Federal reserve 
        bank under this paragraph in determining whether the 
        loan is secured satisfactorily for purposes of this 
        paragraph. Federal reserve banks may not accept equity 
        securities issued by the recipient of any loan or other 
        financial assistance under this paragraph as 
        collateral. Not later than 6 months after the date of 
        the enactment of this sentence, the Board shall, by 
        rule, establish--
                          (I) a method for determining the 
                        sufficiency of the collateral required 
                        under this paragraph; 
                          (II) acceptable classes of 
                        collateral; 
                          (III) the amount of any discount on 
                        the value of the collateral that the 
                        Federal reserve banks will apply for 
                        purposes of calculating the sufficiency 
                        of collateral under this paragraph; and 

                          (IV) a method for obtaining 
                        independent appraisals of the value of 
                        collateral the Federal reserve banks 
                        receive. 
                  (ii) The Board shall establish procedures to 
                prohibit borrowing from programs and facilities 
                by borrowers that are insolvent. A borrower 
                shall not be eligible to borrow from any 
                emergency lending program or facility unless 
                the Board and all Federal banking regulators 
                with jurisdiction over the borrower certify 
                that, at the time the borrower initially 
                borrows under the program or facility, the 
                borrower is not insolvent. [Such procedures may 
                include a certification from the chief 
                executive officer (or other authorized officer) 
                of the borrower, at the time the borrower 
                initially borrows under the program or facility 
                (with a duty by the borrower to update the 
                certification if the information in the 
                certification materially changes), that the 
                borrower is not insolvent.] A borrower shall be 
                considered insolvent for purposes of this 
                subparagraph, if the borrower is in bankruptcy, 
                resolution under title II of the Dodd-Frank 
                Wall Street Reform and Consumer Protection Act, 
                or any other Federal or State insolvency 
                proceeding.
                  (iii) A program or facility that is 
                structured to remove assets from the balance 
                sheet of a single and specific company, or that 
                is established for the purpose of assisting a 
                single and specific company avoid bankruptcy, 
                resolution under title II of the Dodd-Frank 
                Wall Street Reform and Consumer Protection Act, 
                or any other Federal or State insolvency 
                proceeding, shall not be considered a program 
                or facility with broad-based eligibility.
                  [(iv) The Board may not establish any program 
                or facility under this paragraph without the 
                prior approval of the Secretary of the 
                Treasury.]
          (C) The Board shall provide to the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and 
        the Committee on Financial Services of the House of 
        Representatives--
                  (i) not later than 7 days after the Board 
                authorizes any loan or other financial 
                assistance under this paragraph, a report that 
                includes--
                          (I) the justification for the 
                        exercise of authority to provide such 
                        assistance;
                          (II) the identity of the recipients 
                        of such assistance;
                          (III) the date and amount of the 
                        assistance, and form in which the 
                        assistance was provided; and
                          (IV) the material terms of the 
                        assistance, including--
                                  (aa) duration;
                                  (bb) collateral pledged and 
                                the value thereof;
                                  (cc) all interest, fees, and 
                                other revenue or items of value 
                                to be received in exchange for 
                                the assistance;
                                  (dd) any requirements imposed 
                                on the recipient with respect 
                                to employee compensation, 
                                distribution of dividends, or 
                                any other corporate decision in 
                                exchange for the assistance; 
                                and
                                  (ee) the expected costs to 
                                the taxpayers of such 
                                assistance; and
                  (ii) once every 30 days, with respect to any 
                outstanding loan or other financial assistance 
                under this paragraph, written updates on--
                          (I) the value of collateral;
                          (II) the amount of interest, fees, 
                        and other revenue or items of value 
                        received in exchange for the 
                        assistance; and
                          (III) the expected or final cost to 
                        the taxpayers of such assistance.
          (D) The information required to be submitted to 
        Congress under subparagraph (C) related to--
                  (i) the identity of the financial institution 
                participants in an emergency lending program or 
                facility commenced under this paragraph;
                  (ii) the amounts borrowed by each financial 
                institution participant in any such program or 
                facility;
                  (iii) identifying details concerning the 
                assets or collateral held by, under, or in 
                connection with such a program or facility,
                shall be kept confidential, upon the written 
                request of the Chairman of the Board, in which 
                case such information shall be made available 
                only to the Chairpersons or Ranking Members of 
                the Committees described in subparagraph (C).
          (E) If an entity to which a Federal reserve bank has 
        provided a loan under this paragraph becomes a covered 
        financial company, as defined in section 201 of the 
        Dodd-Frank Wall Street Reform and Consumer Protection 
        Act, at any time while such loan is outstanding, and 
        the Federal reserve bank incurs a realized net loss on 
        the loan, then the Federal reserve bank shall have a 
        claim equal to the amount of the net realized loss 
        against the covered entity, with the same priority as 
        an obligation to the Secretary of the Treasury under 
        section 210(b) of the Dodd-Frank Wall Street Reform and 
        Consumer Protection Act.
          (G) Joint resolution of approval.--
                  (i) In general.--A program or facility 
                created under subparagraph (A) shall terminate 
                on the date that is 30 calendar days after the 
                date on which Congress receives a report 
                described in subparagraph (C) unless there is 
                enacted into law a joint resolution approving 
                the program or facility not later than 30 
                calendar days after the date on which the 
                report is received. Any loan offered through 
                the program or facility that is outstanding as 
                of the date on which the program or facility is 
                terminated shall be repaid in full not later 
                than 30 calendar days after the date on which 
                the program or facility is terminated.
                  (ii) Contents of joint resolution.--For the 
                purpose of this subparagraph, the term ``joint 
                resolution'' means only a joint resolution--
                          (I) that is introduced not later than 
                        3 calendar days after the date on which 
                        the report described in subparagraph 
                        (C) is received by Congress;
                          (II) that does not have a preamble;
                          (III) the title of which is as 
                        follows: ``Joint resolution relating to 
                        the approval of a program or facility 
                        created by the Board of Governors of 
                        the Federal Reserve System''; and
                          (IV) the matter after the resolving 
                        clause of which is as follows: ``That 
                        Congress approves the program or 
                        facility created by the Board of 
                        Governors of the Federal Reserve System 
                        on __________.'' (The blank space being 
                        appropriately filled in).
                  (iii) Fast track consideration in house of 
                representatives.--
                          (I) Reconvening.--Upon receipt of a 
                        report under subparagraph (C), the 
                        Speaker, if the House would otherwise 
                        be adjourned, shall notify the Members 
                        of the House that, pursuant to this 
                        subparagraph, the House shall convene 
                        not later than the second calendar day 
                        after receipt of such report.
                          (II) Reporting and discharge.--Any 
                        committee of the House of 
                        Representatives to which a joint 
                        resolution is referred shall report it 
                        to the House not later than 5 calendar 
                        days after the date of receipt of the 
                        report described in subparagraph (C). 
                        If a committee fails to report the 
                        joint resolution within that period, 
                        the committee shall be discharged from 
                        further consideration of the joint 
                        resolution and the joint resolution 
                        shall be referred to the appropriate 
                        calendar.
                          (III) Proceeding to consideration.--
                        After each committee authorized to 
                        consider a joint resolution reports it 
                        to the House or has been discharged 
                        from its consideration, it shall be in 
                        order, not later than the sixth day 
                        after Congress receives the report 
                        described in subparagraph (C), to move 
                        to proceed to consider the joint 
                        resolution in the House. All points of 
                        order against the motion are waived. 
                        Such a motion shall not be in order 
                        after the House has disposed of a 
                        motion to proceed on the joint 
                        resolution. The previous question shall 
                        be considered as ordered on the motion 
                        to its adoption without intervening 
                        motion. The motion shall not be 
                        debatable. A motion to reconsider the 
                        vote by which the motion is disposed of 
                        shall not be in order.
                          (IV) Consideration.--The joint 
                        resolution shall be considered as read. 
                        All points of order against the joint 
                        resolution and against its 
                        consideration are waived. The previous 
                        question shall be considered as ordered 
                        on the joint resolution to its passage 
                        without intervening motion except 2 
                        hours of debate equally divided and 
                        controlled by the proponent and an 
                        opponent. A motion to reconsider the 
                        vote on passage of the joint resolution 
                        shall not be in order.
                  (iv) Fast track consideration in senate.--
                          (I) Reconvening.--Upon receipt of a 
                        report under subparagraph (C), if the 
                        Senate has adjourned or recessed for 
                        more than 2 days, the majority leader 
                        of the Senate, after consultation with 
                        the minority leader of the Senate, 
                        shall notify the Members of the Senate 
                        that, pursuant to this subparagraph, 
                        the Senate shall convene not later than 
                        the second calendar day after receipt 
                        of such report.
                          (II) Placement on calendar.--Upon 
                        introduction in the Senate, the joint 
                        resolution shall be placed immediately 
                        on the calendar.
                          (III) Floor consideration.--
                                  (aa) In general.--
                                Notwithstanding Rule XXII of 
                                the Standing Rules of the 
                                Senate, it is in order at any 
                                time during the period 
                                beginning on the fourth day 
                                after the date on which 
                                Congress receives a report 
                                described in subparagraph (C) 
                                and ending on the sixth day 
                                after the date on which 
                                Congress receives the report 
                                (even though a previous motion 
                                to the same effect has been 
                                disagreed to) to move to 
                                proceed to the consideration of 
                                the joint resolution, and all 
                                points of order against the 
                                joint resolution (and against 
                                consideration of the joint 
                                resolution) are waived. The 
                                motion to proceed is not 
                                debatable. The motion is not 
                                subject to a motion to 
                                postpone. A motion to 
                                reconsider the vote by which 
                                the motion is agreed to or 
                                disagreed to shall not be in 
                                order. If a motion to proceed 
                                to the consideration of the 
                                resolution is agreed to, the 
                                joint resolution shall remain 
                                the unfinished business until 
                                disposed of.
                                  (bb) Debate.--Debate on the 
                                joint resolution, and on all 
                                debatable motions and appeals 
                                in connection therewith, shall 
                                be limited to not more than 10 
                                hours, which shall be divided 
                                equally between the majority 
                                and minority leaders or their 
                                designees. A motion further to 
                                limit debate is in order and 
                                not debatable. An amendment to, 
                                or a motion to postpone, or a 
                                motion to proceed to the 
                                consideration of other 
                                business, or a motion to 
                                recommit the joint resolution 
                                is not in order.
                                  (cc) Vote on passage.--The 
                                vote on passage shall occur 
                                immediately following the 
                                conclusion of the debate on a 
                                joint resolution, and a single 
                                quorum call at the conclusion 
                                of the debate if requested in 
                                accordance with the rules of 
                                the Senate.
                                  (dd) Rulings of the chair on 
                                procedure.--Appeals from the 
                                decisions of the Chair relating 
                                to the application of the rules 
                                of the Senate, as the case may 
                                be, to the procedure relating 
                                to a joint resolution shall be 
                                decided without debate.
                  (v) Coordination with action by other 
                house.--
                          (I) In general.--If, before the 
                        passage by one House of a joint 
                        resolution of that House, that House 
                        receives from the other House a joint 
                        resolution, then the following 
                        procedures shall apply:
                                  (aa) The joint resolution of 
                                the other House shall not be 
                                referred to a committee.
                                  (bb) With respect to a joint 
                                resolution of the House 
                                receiving the resolution--
                                          (AA) the procedure in 
                                        that House shall be the 
                                        same as if no joint 
                                        resolution had been 
                                        received from the other 
                                        House, but
                                          (BB) the vote on 
                                        passage shall be on the 
                                        joint resolution of the 
                                        other House.
                          (II) Treatment of joint resolution of 
                        other house.--If one House fails to 
                        introduce or consider a joint 
                        resolution under this section, the 
                        joint resolution of the other House 
                        shall be entitled to expedited floor 
                        procedures under this section.
                          (III) Consideration after passage.--
                        If, following passage of the joint 
                        resolution in the Senate, the Senate 
                        then receives the companion measure 
                        from the House of Representatives, the 
                        companion measure shall not be 
                        debatable.
                          (IV) Vetoes.--If the President vetoes 
                        the joint resolution, the period 
                        beginning on the date the President 
                        vetoes the joint resolution and ending 
                        on the date the Congress receives the 
                        veto message with respect to the joint 
                        resolution shall be disregarded in 
                        computing the 30-calendar day period 
                        described in clause (i) and debate on a 
                        veto message in the Senate under this 
                        section shall be 1 hour equally divided 
                        between the majority and minority 
                        leaders or their designees.
                          (V) Rules of house of representatives 
                        and senate.--This subparagraph is 
                        enacted by Congress--
                                  (aa) as an exercise of the 
                                rulemaking power of the Senate 
                                and House of Representatives, 
                                respectively, and as such it is 
                                deemed a part of the rules of 
                                each House, respectively, but 
                                applicable only with respect to 
                                the procedure to be followed in 
                                that House in the case of a 
                                joint resolution, and it 
                                supersedes other rules only to 
                                the extent that it is 
                                inconsistent with such rules; 
                                and
                                  (bb) with full recognition of 
                                the constitutional right of 
                                either House to change the 
                                rules (so far as relating to 
                                the procedure of that House) at 
                                any time, in the same manner, 
                                and to the same extent as in 
                                the case of any other rule of 
                                that House.
          (H) Penalty rate.--
                  (i) In general.--Not later than 6 months 
                after the date of enactment of this 
                subparagraph, the Board shall, with respect to 
                a recipient of any loan or other financial 
                assistance under this paragraph, establish by 
                rule a minimum interest rate on the principal 
                amount of any loan or other financial 
                assistance.
                  (ii) Minimum interest rate defined.--In this 
                subparagraph, the term ``minimum interest 
                rate'' shall mean the sum of--
                          (I) the average of the secondary 
                        discount rate of all Federal reserve 
                        banks over the most recent 90-day 
                        period; and
                          (II) the average of the difference 
                        between a distressed corporate bond 
                        yield index (as defined by rule of the 
                        Board) and a bond yield index of debt 
                        issued by the United States (as defined 
                        by rule of the Board) over the most 
                        recent 90-day period.
          (I) Financial institution participant defined.--For 
        purposes of this paragraph, the term ``financial 
        institution participant''--
                  (i) means a company that is predominantly 
                engaged in financial activities (as defined in 
                section 102(a) of the Financial Stability Act 
                of 2010 (12 U.S.C. 5311(a))); and
                  (ii) does not include an agency described in 
                subparagraph (W) of section 5312(a)(2) of title 
                31, United States Code, or an entity controlled 
                or sponsored by such an agency.
   Upon the indorsement of any of its member banks, which shall 
be deemed a waiver of demand, notice, and protest by such bank 
as to its own indorsement exclusively, and subject to 
regulations and limitations to be prescribed by the Board of 
Governors of the Federal Reserve System, any Federal reserve 
bank may discount or purchase bills of exchange payable at 
sight or on demand which grow out of the domestic shipment or 
the exportation of nonperishable, readily marketable 
agricultural and other staples and are secured by bills of 
lading or other shipping documents conveying or securing title 
to such staples: Provided, That all such bills of exchange 
shall be forwarded promptly for collection, and demand for 
payment shall be made with reasonable promptness after the 
arrival of such staples at their destination: Provided further, 
That no such bill shall in any event be held by or for the 
account of a Federal reserve bank for a period in excess of 
ninety days. In discounting such bills Federal reserve banks 
may compute the interest to be deducted on the basis of the 
estimated life of each bill and adjust the discount after 
payment of such bills to conform to the actual life thereof.
   The aggregate of notes, drafts, and bills upon which any 
person, copartnership, association, or corporation is liable as 
maker, acceptor, indorser, drawer, or guarantor, rediscounted 
for any member bank, shall at no time exceed the amount for 
which such person, copartnership, association, or corporation 
may lawfully become liable to a national banking association 
under the terms of section 5200 of the Revised Statutes, as 
amended: Provided, however, That nothing in this paragraph 
shall be construed to change the character or class of paper 
now eligible for rediscount by Federal reserve banks.
   Any Federal reserve bank may discount acceptances of the 
kinds hereinafter described, which have a maturity at the time 
of discount of not more than 90 days' sight, exclusive of days 
of grace, and which are indorsed by at least one member bank: 
Provided, That such acceptances if drawn for an agricultural 
purpose and secured at the time of acceptance by warehouse 
receipts or other such documents conveying or securing title 
covering readily marketable staples may be discounted with a 
maturity at the time of discount of not more than six months' 
sight exclusive of days of grace.
  (7)(A) Any member bank and any Federal or State branch or 
agency of a foreign bank subject to reserve requirements under 
section 7 of the International Banking Act of 1978 (hereinafter 
in this paragraph referred to as ``institutions''), may accept 
drafts or bills of exchange drawn upon it having not more than 
six months' sight to run, exclusive of days of grace--
          (i) which grow out of transactions involving the 
        importation or exportation of goods;
          (ii) which grow out of transactions involving the 
        domestic shipment of goods; or
          (iii) which are secured at the time of acceptance by 
        a warehouse receipt or other such document conveying or 
        securing title covering readily marketable staples.
  (B) Except as provided in subparagraph (C), no institution 
shall accept such bills, or be obligated for a participation 
share in such bills, in an amount equal at any time in the 
aggregate to more than 150 per centum of its paid up and 
unimpaired capital stock and surplus or, in the case of a 
United States branch or agency of a foreign bank, its dollar 
equivalent as determined by the Board under subparagraph (H).
  (C) The Board, under such conditions as it may prescribe, may 
authorize, by regulation or order, any institution to accept 
such bills, or be obligated for a participation share in such 
bills, in an amount not exceeding at any time in the aggregate 
200 per centum of its paid up and unimpaired capital stock and 
surplus or, in the case of a United States branch or agency of 
a foreign bank, its dollar equivalent as determined by the 
Board under subparagraph (H).
  (D) Notwithstanding subparagraphs (B) and (C), with respect 
to any institution, the aggregate acceptances, including 
obligations for a participation share in such acceptances, 
growing out of domestic transactions shall not exceed 50 per 
centum of the aggregate of all acceptances, including 
obligations for a participation share in such acceptances, 
authorized for such institution under this paragraph.
  (E) No institution shall accept bills, or be obligated for a 
participation share in such bills, whether in a foreign or 
domestic transaction, for any one person, partnership, 
corporation, association or other entity in an amount equal at 
any time in the aggregate to more than 10 per centum of its 
paid up and unimpaired capital stock and surplus, or, in the 
case of a United States branch or agency of a foreign bank, its 
dollar equivalent as determined by the Board under subparagraph 
(H), unless the institution is secured either by attached 
documents or by some other actual security growing out of the 
same transaction as the acceptance.
  (F) With respect to an institution which issues an 
acceptance, the limitations contained in this paragraph shall 
not apply to that portion of an acceptance which is issued by 
such institution and which is covered by a participation 
agreement sold to another institution.
  (G) In order to carry out the purposes of this paragraph, the 
Board may define any of the terms used in this paragraph, and, 
with respect to institutions which do not have capital or 
capital stock, the Board shall define an equivalent measure to 
which the limitations contained in this paragraph shall apply.
  (H) Any limitation or restriction in this paragraph based on 
paid-up and unimpaired capital stock and surplus of an 
institution shall be deemed to refer, with respect to a United 
States branch or agency of a foreign bank, to the dollar 
equivalent of the paid-up capital stock and surplus of the 
foreign bank, as determined by the Board, and if the foreign 
bank has more than one United States branch or agency, the 
business transacted by all such branches and agencies shall be 
aggregated in determining compliance with the limitation or 
restriction.
  Any Federal reserve bank may make advances for periods not 
exceeding fifteen days to its member banks on their promissory 
notes secured by the deposit or pledge of bonds, notes, 
certificates of indebtedness or Treasury bills of the United 
States, or by the deposit or pledge of debentures or other such 
obligations of Federal intermediate credit banks which are 
eligible for purchase by Federal reserve banks under section 13 
(a) of this Act, or by the deposit or pledge of bonds issued 
under the provisions of subsection (c) of section 4 of the Home 
Owners' Loan Act of 1933, as amended; and any Federal reserve 
bank may make advances for periods not exceeding ninety days to 
its member banks on their promissory notes secured by such 
notes, drafts, bills of exchange, or bankers' acceptances as 
are eligible for rediscount or for purchase by Federal reserve 
banks under the provisions of this Act, or secured by such 
obligations as are eligible for purchase under section 14(b) of 
this Act. All such advances shall be made at rates to be 
established by such Federal reserve banks, such rates to be 
subject to the review and determination of the Board of 
Governors of the Federal Reserve System. If any member bank to 
which any such advance has been made shall, during the life or 
continuance of such advance, and despite an official warning of 
the reserve bank of the district or of the Board of Governors 
of the Federal Reserve System to the contrary, increase its 
outstanding loans secured by collateral in the form of stocks, 
bonds, debentures, or other such obligations, or loans made to 
members of any organized stock exchange, investment house, or 
dealer in securities, upon any obligation, note, or bill, 
secured or unsecured, for the purpose of purchasing and/or 
carrying stocks, bonds, or other investment securities (except 
obligations of the United States) such advance shall be deemed 
immediately due and payable, and such member bank shall be 
ineligible as a borrower at the reserve bank of the district 
under the provisions of this paragraph for such period as the 
Board of Governors of the Federal Reserve System shall 
determine: Provided, That no temporary carrying or clearance 
loans made solely for the purpose of facilitating the purchase 
or delivery of securities offered for public subscription shall 
be included in the loans referred to in this paragraph.
  The discount and rediscount and the purchase and sale by any 
Federal reserve bank of any bills receivable and of domestic 
and foreign bills of exchange, and of acceptances authorized by 
this Act, shall be subject to such restrictions, limitations, 
and regulations as may be imposed by the Board of Governors of 
the Federal Reserve System. (Omitted from U.S. Code)
  That in addition to the powers not vested by law in national 
banking associations organized under the laws of the United 
States any such association located and doing business in any 
place the population of which does not exceed five thousand 
inhabitants, as shown by the last preceding decennial census, 
may, under such rules and regulations as may be prescribed by 
the Comptroller of the Currency, act as the agent for any fire, 
life, or other insurance company authorized by the authorities 
of the State in which said bank is located to do business in 
said State, by soliciting and selling insurance and collecting 
premiums on policies issued by such company; and may receive 
for services so rendered such fees or commissions as may be 
agreed upon between the said association and the insurance 
company for which it may act as agent: Provided, however, That 
no such bank shall in any case assume or guarantee the payment 
of any premium on insurance policies issued through its agency 
by its principal: And provided further, That the bank shall not 
guarantee the truth of any statement made by an assured in 
filing his application for insurance.
  Any member bank may accept drafts or bills of exchange drawn 
upon it having not more than three months' sight to run, 
exclusive of days of grace, drawn under regulations to be 
prescribed by the Board of Governors of the Federal Reserve 
System by banks or bankers in foreign countries or dependencies 
or insular possessions of the United States for the purpose of 
furnishing dollar exchange as required by the usages of trade 
in the respective countries, dependencies, or insular 
possessions. Such drafts or bills may be acquired by Federal 
reserve banks in such amounts and subject to such regulations, 
restrictions, and limitations as may be prescribed by the Board 
of Governors of the Federal Reserve System: Provided, however, 
That no member bank shall accept such drafts or bills of 
exchange referred to this paragraph for any one bank to an 
amount exceeding in the aggregate ten per centum of the paid-up 
and unimpaired capital and surplus of the accepting bank unless 
the draft or bill of exchange is accompanied by documents 
conveying or securing title or by some other adequate security: 
Provided further, That no member bank shall accept such drafts 
or bills in an amount exceeding at any time the aggregate of 
one-half of its paid-up and unimpaired capital and surplus. 
(Omitted from U.S. Code)
  Subject to such limitations, restrictions and regulations as 
the Board of Governors of the Federal Reserve System may 
prescribe, any Federal reserve bank may make advances to any 
individual, partnership or corporation on the promissory notes 
of such individual, partnership or corporation secured by 
direct obligations of the United States or by any obligation 
which is a direct obligation of, or fully guaranteed as to 
principal and interest by, any agency of the United States. 
Such advances shall be made for periods not exceeding 90 days 
and shall bear interest at rates fixed from time to time by the 
Federal reserve bank, subject to the review and determination 
of the Board of Governors of the Federal Reserve System.
  Subject to such restrictions, limitations, and regulations as 
may be imposed by the Board of Governors of the Federal Reserve 
System, each Federal Reserve bank may receive deposits from, 
discount paper endorsed by, and make advances to any branch or 
agency of a foreign bank in the same manner and to the same 
extent that it may exercise such powers with respect to a 
member bank if such branch or agency is maintaining reserves 
with such Reserve bank pursuant to section 7 of the 
International Banking Act of 1978. In exercising any such 
powers with respect to any such branch or agency, each Federal 
Reserve bank shall give due regard to account balances being 
maintained by such branch or agency with such Reserve bank and 
the proportion of the assets of such branch or agency being 
held as reserves under section 7 of the International Banking 
Act of 1978. For the purposes of this paragraph, the terms 
``branch,''``agency,'' and ``foreign bank'' shall have the same 
meanings assigned to them in section 1 of the International 
Banking Act of 1978.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    Democrats share the view that the Federal Reserve cannot 
have free rein in exercising its emergency lending powers, and 
agree that any provision of credit must be broad-based, cannot 
be made to an insolvent entity or used for the purpose of 
preventing an institution or group of institutions from 
entering bankruptcy or otherwise failing, must entail a penalty 
rate, and must enclose a high degree of public transparency. 
These restrictions are critical to preventing moral hazard--the 
risk that institutions will take excessive risks with an 
expectation that the Federal Reserve will come to the rescue.
    Democrats' support for these reasonable constraints is 
precisely why we support the reforms included in the Dodd-Frank 
Wall Street Reform and Consumer Protection Act, as well as the 
additional restrictions included in the Federal Reserve's final 
implementing regulation, which ended the ability for the 
Federal Reserve to save individual firms like AIG and Bear 
Stearns, as it did in response to the 2008 financial crisis.
    To prevent a situation where any firm would be rescued, 
Democrats passed the Dodd-Frank Act to establish a mechanism to 
provide for the orderly resolution of failing firms, strengthen 
the resiliency of the financial sector, and enhance the 
supervision and regulation of systemic risks. We believe that 
as long as these reforms are not undercut either by 
Congressional deregulation or by the Trump Administration, they 
will reduce the likelihood that the Federal Reserve's emergency 
lending powers will ever be used.
    However, reducing the likelihood that emergency lending 
will be needed and placing reasonable constraints on the terms 
and conditions under which the authority can be used, do not 
eliminate the need for emergency lending powers altogether. 
Indeed, Democrats view the Federal Reserve's lender-of-last 
resort function as a core function of our central bank, and an 
authority that is critical to the Federal Reserve's ability to 
promote the stability of our financial system.
    H.R. 4302 goes too far in curtailing the Federal Reserve's 
ability to exercise its emergency lending powers, which would 
likely render this critical role unworkable and ineffectual in 
a time of crisis--precisely the time when it is needed most.
    In particular, we are concerned that requiring Congress to 
approve all credit facilities established within 30 days would 
effectively make Congress the lender of last resort and put it 
in a position of making highly-technical judgments that the 
Federal Reserve, as our central bank, was established to do and 
is far better equipped to make. According to a statement by 
Better Markets, this requirement ``in the context of a fast-
moving, catastrophic financial crisis in the future where 
information will be incomplete, ambiguous and continually 
changing, will almost certainly result in political paralysis 
and cripple the Fed's ability to respond to emergencies.''
    Furthermore, the provisions in the bill that require 
emergency credit facilities to be approved by a super-majority 
of the Federal Open Market Committee and all relevant Federal 
banking regulators would erect further barriers to a program's 
timely deployment.
    The penalty rate called for in the bill is convoluted and 
may be too opaque and punitive to make the Fed's emergency 
lending effective. Currently, the Federal Reserve's final 
emergency lending rule outlines a number of factors that the 
Board will now take into account when setting a penalty rate, 
and the adequacy of these factors should be carefully 
considered prior to enacting a less coherent penalty formula. 
For example, these factors include the condition of the 
affected markets and the financial system generally, the 
historical rate of interest for loans of comparable terms and 
maturity during normal times, the purpose of the program or 
facility, the risk of repayment, the collateral supporting the 
credit and the duration, terms and amount of credit. At a 
legislative hearing held by the Subcommittee on Monetary Policy 
and Trade to examine this proposal, Dr. Jared Bernstein 
testified that, ``the prescribed formula could return an overly 
punitive rate that would potentially undermine the Fed's lender 
of last resort function.''
    For these reasons we oppose the bill.

                                   Maxine Waters.
                                   Nydia M. Velazquez.
                                   Vincente Gonzalez (TX).
                                   Keith Ellison.
                                   Wm. Lacy Clay.
                                   Daniel T. Kildee.
                                   Stephen F. Lynch.
                                   Joyce Beatty.
                                   Al Green.
                                   Michael E. Capuano.
                                   Carolyn B. Maloney.
                                   Ruben J. Kihuen.

                                  [all]