An Act to extend the authority for the flexible regulation of interest rates on deposits and accounts in depository institutions, to promote the accountability of the Federal Reserve System, and for other purposes.

(Measure passed Senate, amended)

=Title I: Regulation of Interest Rates= - Extends the authority of the Board of Governors of the Federal Reserve System to regulate interest rates on deposits and accounts in insured institutions by one year until December 15, 1978.

=Title II: Amendments to the Federal Reserve Act= - Federal Reserve Reform Act - Amends the Federal Reserve Act to require the Board of Governors of the Federal Reserve System and the Federal Open Market Committee to maintain the long-run growth of the monetary and credit aggregates commensurate with the economy's production potential.

Prohibits discrimination in the selection of the Board of Directors of the Federal Reserve System.

Requires Senate confirmation of the Chairman and Vice Chairman of the Board of Governors, effective in 1979. States that such officers will have four-year terms.

Makes it a criminal offense for a Federal Reserve Bank officer, employee, or director to participate in specified activities affecting personal financial interests.

=Title III: Amendments to the Bank Holding Company Act of 1956= - Amends the Bank Holding Company Act of 1956 to authorize the Board of Governors of the Federal Reserve System upon application of a bank holding company to extend the two-year period during which a company may dispose of shares acquired in the course of securing or collecting a debt.

Permits the waiver of the 30-day notice requirement for acquisitions of banks by holding companies and the immediate consummation of such transaction when the transaction would facilitate the acquisition of a failing bank.