Rule X, clause 2 (d) of the Rules of the House requires each standing
Committee, not later than February 15 of the first session of
a Congress, to adopt an oversight plan for that Congress. The
oversight plan must be submitted simultaneously to the Committee
on Government Reform and Oversight and to the Committee on House
Oversight.
The following agenda is the oversight plan of the Committee on
Banking and Financial Services for the 105th Congress.
It includes the areas in which the Committee and its Subcommittees
expect to conduct oversight during this Congress, but does not
preclude oversight or investigation of additional matters or programs
as the need arises.
Credit Unions. The Subcommittee on Financial Institutions
will consider the state of the credit union industry. Among the
issues that the Subcommittee will focus on is the recent court
decision that found that credit unions, by expanding their membership
to include a variety of unaffiliated businesses, violated the
law requiring that members share a common bond. The case has been
stayed, in part, pending a determination by the U.S. Supreme Court
whether to hear the case. (Winter /Spring 1997)
Interest on Small Business Checking Accounts and Interest
on Sterile Reserves. The Subcommittee on Financial Institutions
will consider the ramifications of current law that prohibits
banks and savings associations from paying interest on checking
accounts maintained by businesses. Some argue that current restrictions
on these types of accounts make depository institutions less competitive
in serving the financial needs of small business customers. The
Subcommittee may consider whether these laws are putting U.S.
depositories at a competitive disadvantage. (Summer/Fall
1997)
Interstate Banking and Branching. The Subcommittee on Financial
Institutions will consider holding hearings on the implementation
of the Riegle-Neal Interstate Banking and Branching Act of 1994.
The Subcommittee will focus on how the Act is affecting the banking
industry and consumers, especially as it relates to interstate
branching, which will be permitted on June 1, 1997. (Spring 1997)
Expedited Funds Availability Act. The Subcommittees on
Financial Institutions and General Oversight will review the Federal
Reserve's recommendation that the Expedited Funds Availability
Act be amended to give banks three days instead of two to clear
local checks. The Federal Reserve believes such a change in the
availability schedule is necessary to combat fraud. Consumer groups
argue that the change would allow depository institutions to earn
extra interest while denying customers early access to money.
(Winter/Spring 1997)
Trade in Financial Services. The Subcommittee on Domestic
and International Monetary Policy will review Administration's
efforts in the upcoming World Trade Organization (WTO) financial
services negotiations to attain open and non-discriminatory financial
markets on a global scale. The Subcommittee will assess whether
the WTO negotiations, based on the General Agreement on Trade
in Services, secure real market access and full national treatment
for U.S. financial service providers. (1997)
Money Laundering. The Committee and the Subcommittee on
General Oversight will hold hearings to review private banking
departments, the use of non-bank financial institutions in money
laundering activities, and the implementation of money laundering
laws in general. (Winter 1997 and ongoing)
Stored Value Cards. The Subcommittee on Financial Institutions
may review whether Regulation E should be applied to stored value
cards. (Summer 1998)
Microenterprise Lending. The Committee will review microenterprise
lending initiatives, both domestically and internationally. On
the domestic front, existing programs which are facilitated by
the Community Development Financial Institutions Fund, the Community
Reinvestment Act, and other federal programs will be studied.
The Committee will investigate ways to utilize financial intermediaries,
such as the Federal Home Loan Bank System, to encourage microenterprise
lending. The success of microenterprise lending overseas by international
financial institutions will also be a focus of Committee review.
(1997)
Stability of Financial Markets. The Committee will review
the legislative and regulatory safeguards that exist to prevent,
or mitigate the impact of, a stock market crash on the U.S. financial
system. The issues to be examined include the impact of bank margin
and collateral requirements on the stability of the securities
markets; the role of the Federal Reserve as the U.S. central bank;
the ability of the settlement, clearance and payment systems to
withstand a major drop in the stock market; and the impact of
the internationalization of financial markets.
(Winter 1998)
Economic Development Opportunities. The Subcommittee on
Domestic and International Monetary Policy will review the economic
development programs under the Committee's jurisdiction, including
those programs administered by the Appalachian Regional Commission
and the Economic Development Administration. (1997 and 1998)
The Administration's Empowerment Zone Program. The Housing
Subcommittee will review HUD's Empowerment Zone and Enterprise
Community designation process and the progress of the Zones. The
HUD Inspector General (IG) indicated a possible violation of the
HUD Reform Act of 1989 when the Secretary based selection on the
"perception" of need and geographic diversity, as opposed
to legal requirements for competitive criteria. (Summer 1997)
Commodity Futures Trading Commission. The Subcommittee
on Capital Markets will review the adequacy of CFTC regulation
of exchange trade financial derivatives and examine proposed changes
in the Commodities Exchange Act, including the Treasury amendment.
(Spring 1997)
Derivatives. The Subcommittee on Capital Markets will review
the derivatives market, and examine the adequacy of regulation
surrounding the derivatives market, risks and issues regarding
the unregulated over-the-counter derivatives market, actions taken
and planned by the regulators, and any need for further regulation.
(Summer 1997)
Defense Production Act. The Subcommittee on Domestic and
International Monetary Policy will consider the need to reauthorize
the Defense Production Act, which expires on September 30, 1998.
(Summer 1998)
Economic Growth and Regulatory Paperwork Reduction Act.
The Committee will review the Federal Reserve's and FTC's findings
on their studies (as mandated by the 1996 Omnibus Banking Act)
on the availability of sensitive consumer identification information,
including social security numbers, by entities not subject to
the Fair Credit Reporting Act. The 1996 Omnibus Banking Act contained
a number of provisions designed to reduce regulatory burdens without
sacrificing consumer protections and safety and soundness. The
Committee will review how the act is being implemented with special
focus on the implementation of the BIF-SAIF provisions. (Winter
1998)
Financial Institution Examinations. The Subcommittee on
Financial Institutions will review last year's GAO report that
found that gross disparities exist between the examinations conducted
by the various federal banking regulators. The report was highly
critical of the agencies' examination performance. The GAO has
been asked to conduct a follow-up report.
(Spring/ Summer 1997)
Management/Reform of the Federal Reserve System. The Subcommittee
on Domestic and International Monetary Policy will review the
operations of the Federal Reserve System, including the System's
role in providing financial services, management structure and
consolidation of operations, use of technology, control and oversight
mechanisms, budget process, pay and benefit levels, and systemwide
strategic planning. (1997 and 1998)
Community Reinvestment Act Reform (CRA). The Subcommittee
on Financial Institutions will evaluate examinations of financial
institutions' CRA performance under new agency guidelines. Specifically,
the Subcommittee may evaluate whether examinations under the regulations
are satisfactory. (Summer/Fall 1997)
Appraisal Procedures. The Housing Subcommittee will review
the Federal Housing Administration's (FHA) appraisal assignments
to determine whether its mortgage insurance funds are subject
to unreasonable risk. Section 322 of the 1990 Cranston-Gonzalez
National Affordable Housing Act directed HUD, in the course of
FHA related mortgage insurance transactions, to utilize licensed
and certified appraisers who meet the state licensing and certification
requirements established by Title XI of the Financial Institutions
Reform, Recovery and Enforcement Act of 1989 (FIRREA). Subsequent
FHA regulations and directives created a single registry list of appraisers available for FHA
assignments. Preliminary indications from GAO and the appraisal
community suggest a lack of appropriate HUD oversight. (Fall 1997)
Implementation of the Foreign Bank Supervision and Enforcement
Act (FBSEA). The Subcommittee on Financial Institutions will
consider whether FBSEA is being adequately implemented and whether
the risk management, internal control models and enforcement of
the Act are satisfactory. In May, 1997, the GAO is scheduled to
release a report on the implementation of FBSEA, especially as
it relates to recent scandals involving foreign bank operations
in the U.S. (Summer/Fall 1997)
Flood Insurance Program - Federal Emergency Management Agency.
The Housing Subcommittee will review the solvency of the National
Flood Insurance Fund and the implementation of flood insurance
reform legislation from the 103rd Congress. (Summer
1997)
Oversight of Agencies and The Government Performance and Results
Act. The Committee and the Subcommittee on General Oversight
will conduct oversight hearings to review the operations and effectiveness
of the agencies, both executive branch and independent, that fall
within the Committee's jurisdiction. The hearings may be broad
or specific depending on the issues in need of review, and will
include a review of the management of agencies as well as the
implementation of legislation. Specifically, the Committee will
review how agencies are implementing the Government Performance
and Results Act of 1993 (GPRA), which requires the Federal government to measure its performance and report to the Congress on its results. The GPRA was signed into law in July
1993 (Public Law 103-62) and will be phased in over the next few
years in all federal departments and agencies. (Spring 1997 and
ongoing)
Federal Home Loan Bank System. The Subcommittee on Capital
Markets will conduct a series of oversight hearings on the various
components of the Federal Home Loan Bank System, including the
Federal Housing Finance Board (FHFB), the Office of Finance, and
the twelve Federal Home Loan Banks. Oversight of the FHFB will
include a review of the quality of bank regulation. The hearing
will also review recent decisions by the FHFB that have resulted
in several new financing pilot projects. The FHFB's budget, staffing,
and general organization will also be reviewed. Additionally,
the Subcommittee will review the Office of Finance, including
its budget, funding and hedging strategies.
Oversight of the Federal Home Loan Banks will also include a review
of the banks' affordable housing and community investment activities,
their general investment practices, and bank board composition
and involvement. Additionally, the Subcommittee will be examining
bank membership as well as who receives advances. (Spring/Summer
1997)
Office of Federal Housing Enterprise Oversight. The Subcommittee
on Capital Markets will conduct oversight of OFHEO which will
include a review of the Office's risk-based capital model, which
is scheduled to be released on 3/31/97. The Subcommittee will
also analyze OFHEO's examination procedures of Fannie Mae and
Freddie Mac. Additionally, the Subcommittee will review OFHEO's
budget, as well as its staffing and organization. (Spring/Summer
1997)
Farmer Mac. The Subcommittee on Capital Markets will review
the Federal Agricultural Mortgage Corporation (Farmer Mac), including
the Corporation's mission, budget, staffing, and organization.
(Winter 1998)
Disaster Relief Insurance. The Committee, principally the
Subcommittee on Housing, will conduct hearings on the need for
Federal legislation to ensure the availability of property insurance
(homeowners or other) in areas that are prone to natural disasters.
(Spring 1997)
Comprehensive HUD Oversight. The Housing Subcommittee will
conduct a comprehensive review of the Department of Housing and
Urban Development (HUD) in response to past and upcoming reports
on the mismanagement and lack of core public policy mission. These
hearings will review HUD's management process since the 1994 NAPA
(National Academy of Public Administration) report on HUD's lack
of clear legislative mandate and recommendations that HUD be dismantled
if no progress is made by 1999. GAO is conducting an investigation
of HUD's "high risk" designation. The HUD Inspector
General (IG) continues to issue reports detailing management failures
at HUD, including: 1) findings that HUD's FY95 financial statements
failed to reconcile $1.9 billion in funds with the U.S. Treasurer's
account; 2) violations of the HUD Reform Act of 1989 where
HUD awarded $300 million in Economic Development Initiative (EDI)
grants to communities on a non-competitive basis; 3) lack of necessary
data and management processes; and, 4) FHA Section 203(k) investor loan
defaults and fraud. (Spring 1997/Spring 1998)
FHA/HUD Mortgage Sales Initiatives and Procurement Procedures.
The Housing Subcommittee will review HUD's mortgage sales
program to determine whether procurement procedures were violated.
The mortgage sales program is designed to sell (auction) defaulted
and HUD-owned real estate mortgages to private investors. Since
the program's inception, HUD has aggressively removed approximately
79,700 defaulted and HUD-owned mortgages from its books and management,
with a net savings of $1.3 billion. (Spring 1997)
Real Estate Settlement Procedures Act (RESPA) and Truth In
Lending Act (TILA). The Subcommittees on Financial Institutions
and Housing will consider simplifying the mortgage lending process
by reviewing RESPA and TILA to avoid duplicative disclosure requirements
at settlement. (Spring /Summer 1997)
Comprehensive Rural Housing Service (RHS) Oversight. The
Housing Subcommittee will review the Rural Housing Service's programs
and administrative functions in light of a February 1996 USDA
Inspector General (IG) evaluation report. The report highlights
several legislative initiatives that would provide RHS with tools
similar to HUD in pursuing program beneficiaries who
abuse the programs. Although the 104th Congress made
modest changes, the Committee will review testimony from the IG
and the RHS Administrator on both legislative and administrative
recommendations. (Spring 1997)
Native American Housing. The Housing Subcommittee will
review Native American housing programs at HUD, in light of recent
media attention to fraud and abuse. This review will also include
the enactment and implementation of the Native American Housing
Assistance and Self-Determination Act of 1996 (P.L. 104-330).
(Winter 1998)
Troubled Public Housing Authorities and Assessments. The
Housing Subcommittee will review public housing policy, particularly
troubled Public Housing Authorities (PHAs), to understand and
clarify federal management take-over, management agreements and
local government control where there is a long-standing management
and fiscal problem. Included in this review is the reliability
of PHMAP (Public Housing Management Assessment Program), which
measures the performance of PHAs and where, in some cases, possible
fraudulent practices (including destruction of official government records) and violations
to HUD policy skewed the authority assessment and precluded "troubled"
designations. (Winter 1997 and 1998)
Low Income Housing Tax Credit (LIHTC). The Housing Subcommittee
will review the effectiveness of the Low Income Housing Tax Credit
(LIHTC), with the Committee on Ways and Means Subcommittee on
Oversight, and consideration of issues such as permanent authorization
vs. intermittent authorization sunsets; LIHTC impact of very-low
and low-income families; and, federal and state monitoring of
the LIHTC program. (Spring 1997)
Fannie Mae and Freddie Mac. The Subcommittee on Capital
Markets will examine the affordable housing goals of the Federal
National Mortgage Association (Fannie Mae) and the Federal Home
Loan Mortgage Corporation (Freddie Mac) and their responses to
those goals. Additionally, the Subcommittee will review Fannie
and Freddie's capital adequacy. (Spring/Summer 1997)
Community Development Block Grant Program. The Subcommittee
on Housing will review the Community Development Block Grant (CDBG)
program and its effectiveness in providing economic opportunity
for communities, especially economically distressed areas. The
Subcommittee is interested in the program's use of Federal funds
to provide or lure businesses and jobs at the expense of other
jurisdictions and whether those funds are used appropriately.
(Summer 1997)
Federal Reserve's Conduct/Implementation of Monetary Policy.
The Subcommittee on Domestic and International Monetary Policy
will hold hearings on the Federal Reserve Board semi-annual reports
on the conduct of the nation's monetary policy. The Humphrey-Hawkins
Act requires these reports no later than February 20 and July
20 of each year. (Winter and Summer of 1997 and 1998)
European Monetary Union. The Subcommittee on Domestic and
International Monetary Policy will examine the impact of the European
Monetary Union, scheduled for 1999, on U.S. international economic
interests and the world economy. (1997 and 1998)
Activities of the Bureau of the Mint and Bureau of Engraving
and Printing. The Subcommittee on Domestic and International
Monetary Policy will review the activities of these Treasury bureaus
as they relate to the printing and production of U.S. currency
and coins. The efficiency and productivity of Mint and BEP manufacturing
operations will be reviewed. The financing and minting of commemorative
coins, including a circulating commemorative coin, will also be
studied. In addition, the cost/benefit of replacing the one dollar
bill with a one dollar coin will be reviewed. (Spring 1997 and
1998)
Counterfeiting. The Committee, principally the Subcommittees
on Domestic and International Monetary Policy and General Oversight,
will review the Administration's efforts in detecting and combating
the counterfeiting of U.S. currency in the U.S. and abroad, including
the Treasury Department's redesign of U.S. currency in order to
deter counterfeiting. (1997 and 1998)
Payment System. The Committee will review the payment clearance
and settlement systems as a follow up to the Committee's request
last year that the GAO review issues surrounding the systems,
including their efficiency and stability. (Summer/Winter 1997)
Future of Money: Electronic Money and Payment Systems.
The Subcommittee on Domestic and International Monetary Policy
will assess the domestic and international implications of new
innovations in electronic money and electronic payment systems.
Among the issues the Subcommittee will examine are soundness,
security, privacy, and access to new electronic payment methods,
who will be permitted to issue new payment methods, competing
government regulation, threats posed to critical infrastructures
such as the payment system, and the impact of the "year 2000"
computer issue on bank information systems. (1997 and 1998)
Reports of Inspectors General or Investigative Reports.
The Subcommittee on General Oversight will hold periodic hearings
to review the findings of investigations conducted by the General
Accounting Office ("GAO") and the Inspectors General
of agencies that fall within the Committee's oversight jurisdiction.
For example, the Subcommittee intends to review with the GAO its
findings regarding the effectiveness of efforts by the Department
of the Treasury to combat international counterfeiting of U.S.
currency. (Spring 1997 and ongoing)
Assets of Holocaust Victims/Nazi gold. The Committee will
continue to monitor and, as appropriate, hold hearings on the
progress of the Administration, Swiss authorities and the two
historical commissions in resolving the questions surrounding
the disposition of Holocaust victims' assets deposited in Swiss
banks and of the gold acquired by the Swiss central bank during World
War II. (1997 and 1998 as needed)
Reauthorization of the Export-Import Bank. The Subcommittee
on Domestic and International Monetary Policy will review the
merits of extending the authority of the Export-Import Bank and
other export financing programs. The authority for the operations
of the Export-Import Bank expires on September 30, 1997. (Spring
1997)
U.S. Participation in International Financial Institutions.
The Subcommittee on Domestic and International Monetary Policy
will review U.S. participation in the International Monetary Fund,
World Bank Group, Inter-American Development Bank, Asian Development
Bank, African Development Bank, European Bank for Reconstruction
and Development, Middle East Development Bank, and the North American
Development Bank.
Highlights of the U.S. Treasury Department's likely authorization
requests to the Banking Committee includes $3.8 billion for U.S.
participation in the IMF's "New Arrangement to Borrow,"
and $1.6 billion for the World Bank's International Development
Association. Additional authorization requests for the IMF and
regional development banks are likely. (Spring 1997 and 1998)
International Lending Mechanisms. The Subcommittee on General Oversight intends to review the use of domestic and international lending mechanisms to stabilize international monetary developments, such as the Exchange Stabilization Fund. (Summer 1997)