Sound Dollar Act of 2012 - Amends the Federal Reserve Act (FRA) to direct the Board of Governors of the Federal Reserve System (Board) and the Federal Open Market Committee (FOMC) to: (1) promote the goal of long-term price stability, and (2) establish metrics to evaluate whether long-term price stability is being achieved.
Prescribes procedures for the establishment and evaluation of such metrics.
Directs the Board and the FOMC to: (1) make such information available to the public on a website, and (2) report to Congress each time such metrics are set or revised.
Directs the Board to include in its semiannual report to Congress: (1) the results of the evaluation process, (2) whether the goal of long-term price stability is being met, (3) the main monetary policy instruments and strategy used by the Board and the FOMC to achieve long-term price stability, and (4) an analysis of how the policies of the Board and the FOMC are affecting the foreign exchange rate value of the U.S. dollar.
Directs the Board to clearly articulate its lender-of-last-resort policy.
Revamps FOMC membership to consist of one representative from each of the Federal Reserve banks (in addition to members of the Board).
Directs the FOMC to release meeting transcripts to the public within three years after each meeting.
Redesignates the Department of the Treasury stabilization fund as the Special Drawing Rights Fund. Instructs the Secretary of the Treasury to liquidate all property in the Fund (other than Special Drawing Rights) and to use all such amounts to reduce the public debt.
Limits the availability of the Fund solely to stabilize exchange rates and arrangements. Repeals the authority of the Secretary to deal in U.S. instruments of credit and securities. Permits only Special Drawing Rights to be deposited into the Fund. Requires funds that would otherwise have been deposited into the Fund to be paid, instead, to the Secretary to reduce the public debt.
Amends the FRA to authorize the FOMC, in unusual and exigent circumstances, by the affirmative vote of two-thirds of its members, to grant any Federal Reserve bank emergency authority to buy and sell U.S. debt obligations and revenue bonds in anticipation of the collection of taxes or the receipt of assured revenues by any state or local governmental entity, as well as obligations of, or guaranteed by, a foreign government or agency.
Amends the Consumer Financial Protection Act of 2010 to repeal: (1) funding for the Consumer Financial Protection Bureau (CFPB), and (2) the Bureau of Consumer Financial Protection Fund.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4180 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 4180
To amend the Federal Reserve Act to improve the functioning and
transparency of the Board of Governors of the Federal Reserve System
and the Federal Open Market Committee, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 8, 2012
Mr. Brady of Texas (for himself, Mr. Pence, Mr. Garrett, Mr. Petri, Mr.
Rokita, Mr. Flores, Mr. Kingston, Mr. Mulvaney, Mr. Flake, Mr.
Lankford, Mr. Pitts, Mr. Franks of Arizona, Mr. Fleming, Mr. Gowdy, Mr.
Burgess, Mrs. Lummis, Mr. Walsh of Illinois, Mr. Ribble, Mr. Duncan of
South Carolina, Mr. Jones, Mr. Cole, Mr. Lamborn, Mr. Pearce, Mr.
Manzullo, Mr. McClintock, and Mr. Sullivan) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal Reserve Act to improve the functioning and
transparency of the Board of Governors of the Federal Reserve System
and the Federal Open Market Committee, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Sound Dollar Act
of 2012''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--SINGLE MANDATE FOR PRICE STABILITY ACT
Sec. 101. Findings.
Sec. 102. Price stability mandate.
TITLE II--FINANCIAL STABILITY AND MORAL HAZARD MITIGATION ACT
Sec. 201. Findings.
Sec. 202. Lender-of-last-resort policy.
TITLE III--DIVERSIFYING THE FEDERAL OPEN MARKET COMMITTEE TO REFLECT A
21ST CENTURY ECONOMY ACT
Sec. 301. Findings.
Sec. 302. Federal Open Market Committee membership.
TITLE IV--DEMYSTIFICATION OF MONETARY POLICY DECISIONS ACT
Sec. 401. Findings.
Sec. 402. Release of transcripts.
TITLE V--EXCHANGE RATE RESPONSIBILITY ACT
Sec. 501. Findings.
Sec. 502. Report on the effect of exchange rate policy.
Sec. 503. Renaming of Exchange Stabilization Fund.
Sec. 504. Conversion to all-SDR Fund.
TITLE VI--CREDIT ALLOCATION NEUTRALITY ACT
Sec. 601. Findings.
Sec. 602. Limitation on certain non-emergency security purchases.
TITLE VII--BUREAU OF CONSUMER FINANCIAL PROTECTION FUNDING ACT
Sec. 701. Findings.
Sec. 702. Bureau of Consumer Financial Protection Funding.
TITLE I--SINGLE MANDATE FOR PRICE STABILITY ACT
SEC. 101. FINDINGS.
The Congress finds the following:
(1) Monetary policy can only affect the level of employment
in the short term because nonmonetary factors determine the
level of employment in the long term. At best, the Federal
Reserve may temporarily increase the level of employment
through monetary policy, but such efforts risk the possibility
of price inflation and increased business cycle volatility in
the future. However, the Federal Reserve can achieve price
stability in the long term through monetary policy. Price
stability is desirable because both price inflation and price
deflation damage the U.S. economy. Therefore, to maximize long-
term economic growth and achieve the highest sustainable level
of real output and employment, price stability should be the
objective of monetary policy.
(2) Countries whose central bank has a single mandate for
price stability generally have a better record of achieving
stable prices than countries whose central bank has a mandate
that gives equal weight to other objectives such as maximum
employment or low interest rates.
(3) In general, an overly accommodative monetary policy
inflates both asset prices and prices for goods and services.
However, an overly accommodative monetary policy may sometimes
cause a misallocation of capital that inflates asset prices
disproportionately, creating unsustainable bubbles in asset
prices, while prices indices for goods and services do not
register significant price inflation. When asset bubbles burst,
many investments must be liquidated at considerable cost to the
U.S. economy in terms of lower real output and employment.
(4) Price stability cannot always be measured solely
through price indices for goods and services since such indices
exclude changes in asset prices. Therefore, the Federal Reserve
should monitor (A) the prices of, and the expected returns
from, major asset classes (including equities, residential real
estate, commercial and industrial real estate, agricultural
real estate, gold and other commodities, corporate bonds, U.S.
Government bonds, State and local government bonds, and other
securities), (B) the value of the U.S. dollar relative to other
currencies, and (C) the value of the United States dollar
relative to gold, as metrics to determine whether the Federal
Reserve's monetary policy is consistent with long-term price
stability.
SEC. 102. PRICE STABILITY MANDATE.
(a) In General.--Section 2A of the Federal Reserve Act is amended--
(1) by striking ``goals of maximum employment, stable
prices, and moderate long-term interest rates'' and inserting
``goal of long-term price stability'';
(2) by striking ``The Board of Governors'' and inserting
the following:
``(a) In General.--The Board of Governors''; and
(3) by adding at the end the following:
``(b) Price Stability Metrics.--
``(1) In general.--The Board of Governors of the Federal
Reserve System and the Federal Open Market Committee shall--
``(A) define the term `long-term price stability'
for purposes of subsection (a); and
``(B) establish metrics that the Board and the
Committee will use to evaluate whether long-term price
stability is being achieved.
``(2) Establishment of metrics.--In establishing the
metrics described under paragraph (1)(B), the Board and
Committee shall--
``(A) take into consideration price indices of
goods and services; and
``(B) evaluate, on an ongoing basis--
``(i) whether such metrics are
comprehensively reflecting price movements in
the economy; and
``(ii) whether any price movements not
captured by the price indices of goods and
services are causing a significant
misallocation of capital in the United States
economy.
``(3) Metric evaluation.--The Board and Committee shall,
with respect to the evaluation process required pursuant to
paragraph (2)(B), monitor--
``(A) the prices of, and the expected returns from,
major asset classes (including equities, residential
real estate, commercial and industrial real estate,
agricultural real estate, commodities, corporate bonds,
State and local government bonds, and other securities)
and the allocation of capital in financial markets and
the broader economy;
``(B) the value of the United States dollar
relative to other currencies; and
``(C) the value of the United States dollar
relative to gold.
``(4) Public disclosure; report to the congress.--The Board
and the Committee shall, with respect to the definition of
long-term price stability and the establishment of metrics set
pursuant to paragraph (1)--
``(A) make such definition and metrics available to
the public on a website maintained by the Board or the
Committee; and
``(B) each time such definition and metrics are set
or revised, issue a report to the Congress stating such
definition and metrics.''.
(b) Additional Evaluations and Determinations Included in Semi-
Annual Report to Congress.--Section 2B(b) of the Federal Reserve Act is
amended--
(1) by striking ``containing a discussion'' and inserting
the following:
``containing--
``(1) a discussion'';
(2) by striking the period and inserting a semicolon; and
(3) by adding at the end the following:
``(2) the results of the evaluation process conducted
pursuant to section 2A(b)(2)(B);
``(3) a determination of whether the goal of long-term
price stability is being met and, if such goal is not being
met, an explanation of why the goal is not being met and the
steps that the Board and the Federal Open Market Committee will
take to ensure that the goal is met in the future;
``(4) a description of the main monetary policy instruments
used by the Board and the Federal Open Market Committee and a
description of the strategy of the Board and the Committee with
respect to using such instruments to achieve the goal of long-
term price stability; and''.
TITLE II--FINANCIAL STABILITY AND MORAL HAZARD MITIGATION ACT
SEC. 201. FINDINGS.
The Congress finds the following:
(1) The Federal Reserve performs an essential function for
financial stability by serving as lender of last resort in
order to--
(A) prevent the unnecessary failures of otherwise
solvent United States banks and other financial
institutions;
(B) reduce the likelihood of financial contagion
and disruptions in United States financial markets; and
(C) minimize any adverse effects on real output and
employment in the United States economy.
(2) In acting as the lender of last resort, the Federal
Reserve, may--
(A) buy debt securities at fair market value; or
(B) provide short-term credit, secured by
appropriate collateral in proper margin, to otherwise
solvent banks and other financial institutions that
encounter funding difficulties during a financial
crisis.
(3) Nevertheless, in its nearly 100-year history, the
Federal Reserve has never clearly articulated its lender-of-
last-resort policy.
(4) The absence of an official lender-of-last-resort policy
has led to--
(A) increased economic uncertainty because no one
knows with certainty how the Federal Reserve may
behave;
(B) financially distressed firms seeking political
solutions in the form of pressure from Congress or the
Administration being placed on the Federal Reserve to
act to save them; and
(C) a moral hazard problem from financial
institutions taking greater risks and increasing
leverage based upon assumptions of how the Federal
Reserve will act, though there is no formal statement
assuring how the Federal Reserve will act.
(5) By establishing a formal lender-of-last-resort policy,
the Federal Reserve would decrease uncertainty in the market
during times of financial crisis and mitigate the moral hazards
created by recent bailouts.
(6) An official lender-of-last-resort policy should provide
that once a financial crisis has dissipated, the Federal
Reserve should, in an orderly way, sell any debt securities
that--
(A) the Federal Reserve acquired acting as lender
of last resort; and
(B) the Federal Reserve does not normally own for
its System Account.
(7) Further, to reduce moral hazard, the Federal Reserve's
lender-of-last-resort policy should make clear that credit in
any form will not be provided to insolvent banks or other
financial institution.
SEC. 202. LENDER-OF-LAST-RESORT POLICY.
(a) In General.--Not later than the end of the 1-year period
beginning on the date of the enactment of this Act, the Board of
Governors of the Federal Reserve System shall clearly articulate the
Board's lender-of-last-resort policy.
(b) Consultation.--In articulating the policy required under
subsection (a), the Board of Governors shall consult with--
(1) the Federal Reserve bank presidents;
(2) the Comptroller of the Currency;
(3) the Chairperson of the Federal Deposit Insurance
Corporation;
(4) the Securities and Exchange Commission;
(5) the Commodity Futures Trading Commission; and
(6) such other persons with expertise in financial services
regulation and monetary policy as the Board of Governors may
determine appropriate.
TITLE III--DIVERSIFYING THE FEDERAL OPEN MARKET COMMITTEE TO REFLECT A
21ST CENTURY ECONOMY ACT
SEC. 301. FINDINGS.
The Congress finds the following:
(1) The Federal Reserve Act delineates specific
requirements for the seven governors charged with oversight of
the Federal Reserve System.
(2) In a reflection of the Federal Reserve System's
decentralized structure that broadly distributes power and
responsibility across the Nation, the Act mandates that the
presidentially appointed governors come from a wide range of
geographic locations and professional backgrounds.
Specifically, the first undesignated paragraph under section 10
of the Federal Reserve Act states that ``In selecting the
members of the Board, not more than one of whom shall be
selected from any one Federal Reserve District, the President
shall have due regard to a fair representation of the
financial, agricultural, industrial, and commercial interests
and geographical divisions of the country.''.
(3) The Federal Open Monetary Committee consists of members
of the Board of Governors and the President or Vice President
of the Federal Reserve Bank of New York on a permanent basis
and rotates voting membership among the remaining Regional
Reserve Banks.
(4) The existing structure of the Federal Open Market
Committee places too much authority in the hands of Washington
and New York at the expense of the remainder of the United
States.
(5) Monetary policy should be conducted in the interest of
all Americans and that policy goal is best achieved by a
Federal Open Market Committee that provides greater
representation and voice in policy decisions to the entire
Nation as represented by the Regional Reserve Banks. This
objective is best achieved by reforming the voting membership
of the Federal Open Market Committee to include all Regional
Reserve Banks on a permanent basis.
SEC. 302. FEDERAL OPEN MARKET COMMITTEE MEMBERSHIP.
Section 12A(a) of the Federal Reserve Act (12 U.S.C. 263(a)) is
amended--
(1) by striking ``five representatives of the Federal
Reserve banks to be selected as hereinafter provided.'' and
inserting ``1 representative from each of the Federal Reserve
banks.''; and
(2) by striking ``and, beginning with the election for the
term commencing March 1, 1943, shall be elected annually as
follows: One by the board of directors of the Federal Reserve
Bank of New York, one by the boards of directors of the Federal
Reserve Banks of Boston, Philadelphia, and Richmond, one by the
boards of directors of the Federal Reserve Banks of Cleveland
and Chicago, one by the boards of directors of the Federal
Reserve Banks of Atlanta, Dallas, and St. Louis, and one by the
boards of directors of the Federal Reserve Banks of
Minneapolis, Kansas City, and San Francisco. In such elections
each board of directors shall have one vote; and the details of
such elections may be governed by regulations prescribed by the
committee, which may be amended from time to time.'' and
inserting ``and shall be elected by the board of directors of
the Federal Reserve bank that they are to represent.''.
TITLE IV--DEMYSTIFICATION OF MONETARY POLICY DECISIONS ACT
SEC. 401. FINDINGS.
The Congress finds the following:
(1) A more efficient release of transcripts from the
Federal Reserve would result in better guidance for market
participants, and hence more economically efficient
decisionmaking.
(2) According to Federal Reserve Chairman Ben Bernanke,
``when the monetary policy committee regularly provides
information about objectives, economic outlook, and policy
plans, two benefits result: (1) markets will price assets more
efficiently, and (2) a closer alignment between market
participants' expectations about the course of future short-
term interest rates and'' the views of policymakers.
(3) The Federal Reserve is able to release transcripts more
efficiently without compromising their decisionmaking process.
SEC. 402. RELEASE OF TRANSCRIPTS.
Section 12A(a) of the Federal Reserve Act (12 U.S.C. 263(a)) is
amended by adding at the end the following:
``(d) Release of Transcripts.--The Committee shall release meeting
transcripts to the public not later than the end of the 3-year period
following each meeting.''.
TITLE V--EXCHANGE RATE RESPONSIBILITY ACT
SEC. 501. FINDINGS.
The Congress finds as follows:
(1) The Board of Governors of the Federal Reserve System
and the Federal Open Market Committee exercise control over the
supply of U.S. dollars, which is a major factor affecting the
foreign exchange rate value of the United States dollar.
Therefore, the Board of Governors and Federal Open Market
Committee should report to Congress on the impact of monetary
policy on the foreign exchange rate value of the United States
dollar.
(2) Over the last several decades, Secretaries of the
Treasury have repeatedly used the Exchange Stabilization Fund
for purposes that were not envisioned by Congress. To prevent
further abuses, the Exchange Stabilization Fund should be
renamed as the Special Drawing Rights Fund. The Special Drawing
Rights Fund should hold the Special Drawing Rights that the
International Monetary Fund provided to the United States. Any
other assets currently in the Exchange Stabilization Fund
should be liquidated, and the proceeds used to reduce the
public debt.
SEC. 502. REPORT ON THE EFFECT OF EXCHANGE RATE POLICY.
Section 2B(b) of the Federal Reserve Act, as amended by section
102(b), is further amended by adding at the end the following:
``(5) an analysis of how the policies of the Board and the
Federal Open Market Committee are affecting the foreign
exchange rate value of the United States dollar.''.
SEC. 503. RENAMING OF EXCHANGE STABILIZATION FUND.
(a) In General.--Section 5302 of title 31, United States Code, is
amended by striking ``stabilization fund'' each place such term appears
and inserting ``Special Drawing Rights Fund''.
(b) Conforming Amendments.--
(1) Balanced budget and emergency deficit control act of
1985.--Section 255(g)(1)(A) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(A))
is amended by striking ``Exchange Stabilization Fund'' and
inserting ``Special Drawing Rights Fund''.
(2) Emergency economic stabilization act of 2008.--The
Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et
seq.) is amended--
(A) in section 131, by striking ``Exchange
Stabilization Fund'' each place such term appears in
headings and text and inserting ``Special Drawing
Rights Fund''; and
(B) in the item relating to section 131 in the
table of contents of such Act, by striking ``Exchange
Stabilization Fund'' and inserting ``Special Drawing
Rights Fund''.
(3) International financial institutions act.--Section 1704
of the International Financial Institutions Act (22 U.S.C.
262r-3) is amended by striking ``stabilization fund'' each
place such term appears and inserting ``Special Drawing Rights
Fund''.
(4) Special drawing rights act.--The Special Drawing Rights
Act (22 U.S.C. 286n et seq.) is amended by striking ``Exchange
Stabilization Fund'' each place such term appears and inserting
``Special Drawing Rights Fund''.
(c) References.--Any reference in a law, regulation, document,
paper, or other record of the United States to the ``Exchange
Stabilization Fund'' shall be deemed a reference to the ``Special
Drawing Rights Fund''.
SEC. 504. CONVERSION TO ALL-SDR FUND.
(a) Funds Used To Reduce the Debt.--The Secretary of the Treasury
shall liquidate all property in the Special Drawing Rights Fund (as so
renamed under section 503), other than Special Drawing Rights, and use
all such amounts to reduce the public debt.
(b) Limitation on Fund.--Section 5302 of title 31, United States
Code, is amended--
(1) in subsection (a)(1)--
(A) by striking ``is available to carry out'' and
inserting ``is only available to carry out''; and
(B) by striking ``, and for investing in
obligations of the United States Government those
amounts in the fund the Secretary of the Treasury, with
the approval of the President, decides are not required
at the time to carry out this section. Proceeds of
sales and investments, earnings, and interest shall be
paid into the fund and are available to carry out this
section. However, the fund is not available to pay
administrative expenses''; and
(2) by striking subsection (b) and inserting the following:
``(b) Fund Only To Hold Special Drawing Rights.--Notwithstanding
any other provision of law, only Special Drawing Rights may be
deposited into the Special Drawing Rights Fund.''.
(c) Conforming Amendments.--
(1) Bretton woods agreements act.--Section 18 of the
Bretton Woods Agreements Act (22 U.S.C. 286e-3) is hereby
repealed.
(2) Support for east european democracy (seed) act of
1989.--The Support for East European Democracy (SEED) Act of
1989 (22 U.S.C. 5401 et seq.) is amended--
(A) in section 101(b)(1), by striking ``such as--''
and all that follows through the end of the paragraph
and inserting ``such as the authority provided in
section 102(c) of this Act.''; and
(B) in section 102(a), by striking ``section
101(b)--'' and all that follows through the end of the
subsection and inserting ``section 101(b), should work
closely with the European Community and international
financial institutions to determine the extent of
emergency assistance required by Poland for the fourth
quarter of 1989.''.
(d) Treatment of Certain Funds.--Funds that would otherwise have
been deposited into the Special Drawing Rights Fund (as so renamed
under subsection (a)), but for the amendments made by this section,
shall instead be paid to the Secretary of the Treasury, and the
Secretary of the Treasury shall use such funds to reduce the public
debt.
(e) Wind Down Period for Certain Transactions.--Notwithstanding any
other provision of this section, during the 3-year period beginning on
the date of the enactment of this Act, property other than Special
Drawing Rights may be deposited, and maintained, in the Special Drawing
Rights Fund as needed to fulfill any outstanding obligations on the
Fund.
TITLE VI--CREDIT ALLOCATION NEUTRALITY ACT
SEC. 601. FINDINGS.
The Congress finds the following:
(1) In conducting open market operations, the Federal Open
Market Committee should not allocate credit among households,
firms, and sectors of the United States economy.
(2) To assure the credit allocation neutrality of open
market operations among households, firms, and sectors of the
United States economy, the Federal Open Market Committee should
conduct open market operations in United States Government
securities, and repurchase and reverse repurchase agreements
that have a term of 1 year or less, except in unusual and
exigent circumstances.
SEC. 602. LIMITATION ON CERTAIN NON-EMERGENCY SECURITY PURCHASES.
(a) In General.--The Federal Reserve Act is amended--
(1) in section 12A, by adding at the end the following:
``(d) Emergency Purchasing Authority.--
``(1) In general.--In unusual and exigent circumstances,
the Committee, by the affirmative vote of at least \2/3\ of the
members of the Committee, may authorize any Federal reserve
bank, during such period as the Committee may determine--
``(A) to buy and sell, at home or abroad, bills,
notes, revenue bonds, and warrants with a maturity from
date of purchase of not exceeding six months, issued in
anticipation of the collection of taxes or in
anticipation of the receipt of assured revenues by any
State, county, district, political subdivision, or
municipality in the continental United States,
including irrigation, drainage and reclamation
districts, and obligations of, or fully guaranteed as
to principal and interest by, a foreign government or
agency thereof; and
``(B) to buy and sell in the open market, under the
direction and regulations of the Committee, any
obligation which is a direct obligation of, or fully
guaranteed as to principal and interest by, any agency
of the United States.
``(2) Maximum holding period.--Any bond, bill, note,
revenue bond, warrant, or other obligation purchased by a
Federal reserve bank pursuant to paragraph (1) shall be
disposed of before the end of the 5-year period beginning on
the end of the period determined by the Committee under
paragraph (1).
``(3) Report.--The Committee 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, not later than 7 days after the Committee
makes an authorization under this subsection, a report that
includes--
``(A) the justification for the exercise of
authority to provide;
``(B) the identity of the person to or from which
purchases or sales were made;
``(C) the date and amount of the purchases or
sales; and
``(D) the material terms of the purchases or
sales.''; and
(2) in section 14(b)--
(A) in paragraph (1), by striking ``bonds issued
under the provisions of subsection (c) of section 4 of
the Home Owners' Loan Act of 1933, as amended, and
having maturities from date of purchase of not
exceeding six months, and bills, notes, revenue bonds,
and warrants with a maturity from date of purchase of
not exceeding six months, issued in anticipation of the
collection of taxes or in anticipation of the receipt
of assured revenues by any State, county, district,
political subdivision, or municipality in the
continental United States, including irrigation,
drainage and reclamation districts, and obligations of,
or fully guaranteed as to principal and interest by, a
foreign government or agency thereof,''; and
(B) by amending paragraph (2) to read as follows:
``(2) To enter into security repurchase agreements and
reverse repurchase agreements that have a term of 1 year or
less, in accordance with rules and regulations prescribed by
the Board of Governors of the Federal Reserve System.''.
(b) Transition Provision.--Each Federal reserve bank that holds
bonds, bills, notes, revenue bonds, warrants, or other obligations
purchased under the authority granted by a provision struck under
subsection (a)(2) shall dispose of such obligations not later than the
end of the 5-year period beginning on the date of the enactment of this
Act.
TITLE VII--BUREAU OF CONSUMER FINANCIAL PROTECTION FUNDING ACT
SEC. 701. FINDINGS.
The Congress finds the following:
(1) As our Nation's central bank, the Federal Reserve
conducts United States monetary policy and necessarily
exercises broad oversight responsibility to ensure the safety,
soundness, and smooth functioning of the Nation's banking and
payments systems.
(2) There exists a broad consensus among policymakers,
academics, and most informed commentators that central bank
independence is necessary to the proper and effective conduct
of monetary policy and those regulatory activities necessary
for the implementation of such monetary policy.
(3) In order to preserve the independence of its
activities, the Federal Reserve should remain operationally and
financially autonomous within the United States Government.
(4) However, those activities that do not relate to the
functions listed in paragraph (1) should not occur outside of
the constitutionally granted authority of Congress to authorize
and oversee the expenditure of public funds.
(5) Therefore, the Bureau of Consumer Financial Protection
should be subject to the Federal appropriations process to
ensure effective Congressional oversight over its activities
and use of public funds.
SEC. 702. BUREAU OF CONSUMER FINANCIAL PROTECTION FUNDING.
(a) In General.--Section 1017 of the Consumer Financial Protection
Act of 2010 is amended--
(1) in subsection (a)--
(A) by amending the heading of such subsection to
read as follows: ``Budget, Financial Management, and
Audit.--'';
(B) by striking paragraphs (1), (2), and (3);
(C) by redesignating paragraphs (4) and (5) as
paragraphs (1) and (2), respectively; and
(D) in paragraph (1), as so redesignated--
(i) by striking subparagraph (E); and
(ii) by redesignating subparagraph (F) as
subparagraph (E);
(2) by striking subsections (b) and (c);
(3) by redesignating subsections (d) and (e) as subsections
(b) and (c), respectively; and
(4) in subsection (c), as so redesignated--
(A) by striking paragraphs (1), (2), and (3) and
inserting the following:
``(1) Authorization of appropriations.--There is authorized
to be appropriated such funds as may be necessary to carry out
this title.''; and
(B) by redesignating paragraph (4) as paragraph
(2).
(b) Effective Date.--The amendments made by this section shall take
effect on October 1, 2012.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on Domestic Monetary Policy and Technology.
Referred to the Subcommittee on Financial Institutions and Consumer Credit.
Subcommittee Hearings Held.
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