▶ 0:00:00But as my colleagues on the other side of the aisle have already expressed, simply eliminating the penny without a well-crafted plan for the orderly phase out of the penny won't accomplish that goal and could actually make things worse. As it stands, there's been no time provided for states, retailers, or consumers to prepare for a penniless economy. We need to do that responsibly and thoughtfully.
▶ 0:00:27While I appreciate the efforts of my colleagues, Congresswoman Mlan and Congressman Lucas in getting the Common Sense Act into the place it is today, I do have some concerns with the current text. In order to discuss those concerns, would my colleague and friend Congressman Lucas be willing to engage in a colloquy with me regarding the Common Sense Act? I absolutely I would be pleased to. Well, thank you.
▶ 0:00:50One of my concerns, Congressman Lucas, and and committee members, is surrounding the current version of the Common Sense Act is that it does not provide for a plan for the orderly withdrawal of the penny from circulation, which I believe is essential for minimizing disruptions from this momentous policy change.
▶ 0:01:07Additionally, while I greatly appreciate the fact that this bill seeks to change the composition of the nickel to lower costs, I would like to see technical changes to the composition requirements of the nickel to require a tighter weight specification that narrows the electronic signature and makes the coin more secure as well as helping to get the anticipated cost of new nickels below 5 cents.
▶ 0:01:32Lastly, during the phase out period, I believe it is important that the mint continue to produce pennies to ensure that the unanticipated shortages uh do not occur. At this time, I'd like to ask my colleague, Congressman Lucas, if he would be willing to commit to work with me to address these concerns. First, let me state I very much appreciate the sincerity of the gentleman's efforts in addressing this issue. It is a very important matter as stressed by the ranking member.
▶ 0:01:58I would note for the record that there are 100 billion 1-centent pieces in circulation. And by the way, to my numismatic friends, I apologize. It is a 1- cent piece, even though we commonly refer to it as a penny in the United States. That's an English coin. That was never an American coin. And I would also stress to my colleagues, yes, as we work through this process, I would enthusiastically, I believe, uh, Congressman Mlan and I would discuss these issues with you. Well, thank you, uh, Congressman Lucas.
▶ 0:02:25And with those assurances that I've received, I will vote in favor of the Common Sense Act and and I'll encourage all my colleagues to do the same. And I yield back the balance. Gentleman yields back. Does the gentleman from Ohio seek recognition? I do move to strike the last word. Gentleman's recognized for five minutes. Uh thank you, Chairman. I want to thank you and Congresswoman Mlan for working on this common sense proposal. Uh I'm glad to see and know I share Mr. Rose's passion for cash.
▶ 0:02:53I I hope that we do move uh his bill um locking in the legal tender currency of the country as an actual means of payment. We're seeing too many places where cash uh isn't accepted and you know I applaud many of our Democratic colleagues who share that view as well. So, I hope this Congress we have the ability to protect cash, but the idea that you can't really use cash unless you can use pennies.
▶ 0:03:21Um, well, we won't confront that challenge for a long time. So, uh, as you pointed out, one of the reasons I wanted to strike the last word, there are plenty of pennies in existence. There just aren't plenty of pennies in circulation. So, we tend to produce lots of pennies that we don't really need to because people just keep them parked because it takes too much effort to convert them into something that's actually liquid. So, uh then this may create some demand for pennies to become in circulation.
▶ 0:03:51Who knows where it goes? But the idea that we need to keep producing these by the mint, uh I think is a time that probably has passed. And if we find that it hasn't, we could always turn them back on. Uh but I do think that that that this moment uh is a great opportunity to move forward with this common sense act and you know I I'm glad to see that our colleague Mr.
▶ 0:04:13Rose is on board with this proposal and share some of the concerns about implementation and you know frankly I think Treasury is already confronting some of those challenges now uh and we're in fact working to keep up with the administration. So, as we found on a number of issues, it's hard to move at the speed of Trump. Uh, and I don't mean that to be a partisan thing. I think that our Democratic colleagues would be wise to provide their input in this process as well and support this uh good bill. With that, I yield back.
▶ 0:04:42Gentleman yields back. The Does the gentleman seek recognition? I do. Last word. Gentleman's recognized for five minutes. Oh, thank you. Um, you know, I I just looked up the uh you know, when I was uh when I was born, uh the least count for any payment was 1 cent. And the value of that 1 cent today is 12 cents. And you know, back when I was born, the economy seemed to work pretty well. And so I think that it's fairly obvious that that we got a problem here.
▶ 0:05:11And we have to and other countries have have done this. You know, for example, I believe the French went by a factor of 10 and maybe even a hundred as they saw much higher inflation than we've been seeing over the last over my lifetime. But they they said at some point they just said we're going to rename um things by, you know, just shift the whole scale by a factor of 10 or more, which many countries have done.
▶ 0:05:34Um and and for those of you who are worried about poor people who are saving jars full of pennies will now find themselves, you know, with a worthless jar full of pennies, the the metallic value in those uh are is greater than the than the transactional value of those. So they if we simply drop the law that says you can no longer melt pennies down, they'll be able to capitalize on that big jar full of pennies for a lot more than the face value of its thing.
▶ 0:06:01so that they will be they will actually get their monies back for their their savings of pennies. Um but the real the real issue for me as a representative from Illinois is Abraham Lincoln. You know, this is this is something that um you know, there's so few unifying characters in our nation right now and Abraham Lincoln is one of them. You know, it's a reminder if nothing else of a time when the Republican party had a strong moral core that is hard to see these days.
▶ 0:06:29as something that both parties will will support. Um and and so this will leave a gaping hole in the coinage of our country. There's an obvious solution to that um which is the $1 coin. This is something that's we've been thrashing around trying to get a $1 coin that the government that the the people can really support. I think I remember at some point George Bush issued a $1 coin that was going to cycle through all of the presidents or something like this. So, we've been thrashing around without success.
▶ 0:06:58And if we simply say, okay, Abraham Lincoln is someone we would we should continue to cherish. Um, and and maybe move him to the $1 coin. Um, I'm sure the representatives of Illinois would strongly support this. I, you know, I I'm not sure how I'll vote on this. I support the effort and I think we need a lot more study to make sure it goes smoothly, but this is uh something whose time has come and I I thank you for for bringing it up. Yield back. Gentleman yields back. Gentleman from North Carolina, Mr. Moore, you're recognized to strike the last word.
▶ 0:07:28Move to strike the last word. You're recognized for five minutes. Thank you, Mr. Chairman. This is actually a bill and an idea that I've heard a lot about from folks back home. And and I'll tell a couple of quick stories. I I I don't know how many folks go to a fast food restaurant.
▶ 0:07:44You can look at me and tell I probably go a little too often, but uh when I pay with cash, if you've done this before, sometimes you'll give the clerk or someone cash and if you try to, let's say it's $6.51 and you give somebody sometimes $10.51, you'll see a blank stare. I think we need to improve some of the math. But I'll say I learned my math growing up working in my dad's convenience store starting in about the third grade. And um and I actually love the penny.
▶ 0:08:11I think it's the foundation of it is the it is the foundation of our currency and and my law years of law practice I remember times that I would have to go in on an account for an estate where I had to justify where 3 cents was. That was a little aggravating but I think it shows the fact that things need to be precise to the penny.
▶ 0:08:30Um I do share the concern of the bill sponsors about the cost and I'm curious it it when this bill was being discussed or this idea u looking at less alternative ways ways to make the penny less expensive. Right now the penny is composed of 97.5% zinc and 2.5% copper. Uh some other alternatives that are cheaper would be to use steel which is less and then really cheap would be aluminum. So think about aluminum how inexpensive it is.
▶ 0:08:59We use it for single-use cans. Aluminum is very inexpensive. Why aren't we looking at those kinds of ideas? But I just find it bothersome. And I know that uh my late grandfather would would have some words for me when I see him later on uh when I pass away when I see him about why I got rid of the penny because one of the lessons I learned as a kid was that pennies make dollars, dollars make hundreds, etc. and so forth.
▶ 0:09:27So respectfully, I will oppose the bill, but would also ask if there's I don't know if there's any discussion about having hearings on this or discussions about maybe other ways to save money and not eliminate this uh I guess the the lowest denominator currency that we have. With that, I yield back, Mr. Gentleman yields back. Who seeks Chairman, I wish strike the last word. Chairman of the Monetary Policy Task Force, Mr. Lucas, you're recognized to strike the last word for five minutes. Thank you, Mr. Chairman.
▶ 0:09:55Once again, it's worth noting that the language before us today uh addresses the thing we commonly refer to as the penny, the one cent piece, which now cost 4 cents to produce. And last year, the mint lost $85 million from one cent production. Uh this is the 19th consecutive year the United States government has lost money keeping the 1-cent piece in circulation.
▶ 0:10:22The first US 1-cent piece was meanted in 1793 and had the equivalent buying power of 29 cents. Now remember the monetary system that was set up in by the Met Act of 1792. Every coin had to contain the metal of its issue value in it. A 1-centent piece had 1 cent worth of copper in it. A half cent had a half cent worth of copper. A silver dollar had a dollars worth of silver. A $10 gold piece had $10 worth of gold.
▶ 0:10:50But that's not the system we work under Our economic targets, the things we tell the Fed to do, calls for 2% inflation every year. That's a 2% reduction in buying power. So over time, the value of our currency, paper, and coin continues to drop. And we have to reflect that. We have to make changes that address that. And it's not just the one cent piece.
▶ 0:11:14And by the way, the mint says there's nothing they can use that will cost less than a cent to produce. During the Second World War, they discussed plastic one-cent pieces. We did iron one cent pieces for a time. The one cent piece, which you see in the parking lots at quick stops scattered across the ground, has run its course. That original 1792 Mint Act called for half cents.
▶ 0:11:42They dropped those in 1857 because they weren't practical anymore. Even though the buying power was dramatically greater and it didn't wreck the economy, the 5-cent piece, as the ranking member of the full committee alluded to, now cost almost 14 cents to produce. We address that in this bill, too. And you talk about recycling and saving. Think about all the billions and billions of 1-centent pieces out there.
▶ 0:12:10When we go from a nickel nickel, which by the way didn't exist until 1866 because we had something called a silver half dime before that, it was a it was a monetary saving issue at the time. We'll go to a zinc coated planchet. And by the way, your coin collector friends don't refer to them as blanks. They're planchets. And that will make it affordable. Issue those again.
▶ 0:12:36We'll recycle, I predict, all of these one cent pieces, these billions out there to make the nickels. Uh this is just something we have to do. And we brought oursel to the point where when it costs dramatically more to produce a penny, a one cent piece or a nickel than it's worth, uh this will expand across the board.
▶ 0:13:00Bottom line is this bill doesn't order the men to do anything, but it gives it the flexibility to do what they have told us has to be done. And I'm certainly willing to discuss with the ranking member of the full committee her questions about rounding before we get to the final product. And my colleague uh Congresswoman Mlan is very focused on doing the right thing. But the world has changed and we've created a situation that's made this necessary.
▶ 0:13:29Let's just be practical and move forward, Mr. Chairman. Uh, and with that, there's a hundred billion of them out there. You'll have plenty for nostalgia long after everything we know doesn't exist anymore. They'll still be 1-centent pieces floating around, just as there are Roman and Greek coins from 2,000 years still in existence. It's our mark on history.
▶ 0:13:54And by the way, I've always been an advocate of a higher and a focused degree on artistry in our coinage because of the legacy it leaves. After that sermonet, Mr. Chairman, I yield back. I didn't want it to stop. I thank Mr. Lucas. Mr. Lucas yields back. Does anyone else seek recognition on this measure? Hearing none, we'll move to amendments. Does anyone wish to offer an amendment to this bill?
▶ 0:14:24Ranking member Waters, I have an amendment at the desk. We'll pause for the amendment to be Mr. Chairman and members, order, Mr. Chair, just a moment. We'll wait for it to be I reserve a point of order, Mr. And Mr.
▶ 0:14:39Lucas has reserved a point of Clerk
▶ 0:15:52will report the amendment. An amendment to the amendment in the nature of a substitute to HR 3074 offered by Miss Waters of California designated as HR 307402. Without objection, the amendment is considered red and the gentleoman from California, Mrs. Waters, is recognized for five minutes to describe her Uh, thank you so very much, Mr. Chairman. I was hoping uh that Congresswoman Mlan um would be here. I see that she's left.
▶ 0:16:20I certainly wanted her to hear uh the discussion uh that was going to take place about the penny. I'm deeply concerned that eliminating the penny would also fuel the already high cost of goods that Americans face.
▶ 0:16:37This is especially true given that many Americans still will soon experience more hardship from sweeping cuts to programs like Medicaid, SNAP, and more. Through this bill, we would literally nickel and dime lowincome communities who do not see pennies as real money and real value.
▶ 0:17:05Before eliminating the penny, I believe that local communities should have a seat at the table. My amendment would delay the end of the penny until after a task force made up of local and state entities have evaluated the effects of stopping penny production.
▶ 0:17:28In particular, the task force will consider the impact on low-income communities and debanked and underbanked groups and how potential rounding guidance should be implemented. The task force would then provide a recommendation to the Treasury on whether the agency should cease production of pennies for circulation under my amendment.
▶ 0:17:55If the Treasury then determines it is in the public interest to cease penny production, it will issue a report to Congress and end production of the new pennies. It is critical to take in consideration the views of communities that will be dealing with the day-to-day reality of these changes. My amendment would ensure we consider their views before moving forward.
▶ 0:18:21I would ask my colleagues just consider going around the country, engaging giving them a place at the table to talk about the penny. Now, we sit here as members of Congress, and many of these members when they make purchases, they can say, "Keep the change.
▶ 0:18:41Uh they don't need the pennies." But I want you to know I don't want us to be seen as so elitist that we don't care about what other people perhaps poor people think about the penny. Why not engage the country? Why not have communities uh on a task force that would set up all of these engagements and have people in all these communities talking about the penny?
▶ 0:19:11I think that instead of looking as if we're so elitist uh that we just want to get rid of the penny, uh that constituents would appreciate the opportunity to give their views about the penny. And so I indicated when I first spoke about the penny that yes, I'm a big supporter of the penny.
▶ 0:19:36And I told my staff a uh little story about what I heard about someone who saw someone just literally throwing pennies aside and saying, "Is that person rich? They can get rid of money." And so it really made me think that is real money. And I'd like us to think about it in that fashion.
▶ 0:19:58And I would like us to think about wouldn't this be a wonderful way to engage uh everyone in this country in you know these communities to talk about the penny and what they think about it. I think they would respect us for not simply allowing treasury because the president came up with another idea uh to just eliminate the penny. I yield back the balance of my time. Gentleoman yields back. Who seeks recognition? Gentlemen, chairman.
▶ 0:20:28Uh, move strike. Last word. Okay. I'll do louder next. No, it's Mr. Lucas, you're recognized. Thank you, Mr. Chairman. Uh, I'd first say to my friend and colleague, the ranking member, I think we should discuss her concepts as we work through the legislative process. But I would also note that nothing in the bill ends the legal tender status of the one- piece.
▶ 0:20:53And remember the the the currency value of a coin or a paper note is because Congress by statute gives it legal tender status. It has value. The one cent piece will continue to have value. Matter of fact, unlike many countries in the world, the United States is unique in that all currency and coins, virtually all issued since the founding of the country are still legal tender.
▶ 0:21:21If you have a one- cent piece from 1793, it is still legal tender. If you have a $1 bill from 1863, it is still legal tender. Most countries cancel all of their currencies every so many years. So, we are unique in that regard and that continues. So, anyone with a jar full of pennies still has value. They can still use those. The question about manufacturing the penny, the president has directed the treasury and the mint to no longer purchase blanchets.
▶ 0:21:50the blanks to make pennies. So when the existing stock is done at the mints, they're not going to make So the question is not continuing the present issue. That's been decided by the administration. The real question is where do we go forward and in the long term? And I think that is still the underlying principle of this bill.
▶ 0:22:13Again, I'm enthusiastic about listening and discussing with the ranking member her ideas, but I must respectfully oppose her language when I have an opportunity to vote in a little bit. And yield back. Gentlemen yields back. The gentleman from Texas is recognized to strike the last word. Thank you, Mr. Chairman.
▶ 0:22:34I write to support the ranking members uh amendment to ensure that the elimination of the penny does not disproportionately impact communities that rely on cash for everyday transactions. Back home in Texas, many families still rely on cash to buy groceries, to get gas, and pay rent. And that means sometimes pennies make the difference between getting a hot meal or going without food for the day.
▶ 0:23:01The amendment takes into consideration the impact that eliminating the penny would have on older Americans and unbanked groups who use cash more than the average American. So in my district, cash is king. We know that every penny counts. If you're paying in cash every day and prices get rounded up or down over a month, that really means something to them because every penny counts.
▶ 0:23:28And that's money coming out of people's pocketbooks. And it's money that low-income families use for for everyday things. Families, seniors, and folks on fixed incomes simply can't afford to lose this penny. And as I mentioned earlier, you know, what is the stock market going to do? Stop selling penny stocks and make them nickel stocks. What are we going to do?
▶ 0:23:56Require shoe makers to stop making penny loafers and make them into nickel loafers. Well, songwriters have to start singing nickels from heaven. I could go on and on, but the bottom line is that this hurts people the most that are at the bottom of the bracket in our country. We need to make sure that there's no negative impact on them in their pocketbooks.
▶ 0:24:22While the penny might seem like a collector's item to most Americans, it still makes a difference in communities like mine and the ranking and the ranking members too. That is why I urge the adoption of the ranking members amendment. Will the gentlewoman yield? I yield the balance of my time. Thank you so very much for your statement uh your concerns that you have addressed about the penny.
▶ 0:24:48You know, I was sitting here thinking the fact that we seem to pay attention more to what the rich care about than what the average person or poor people think.
▶ 0:25:05When I sit here and I think about what has happened with cryptocurrency and how, you know, the president of the United States and his family are going to make billions of dollars and how the the market makers and others are going to make billions of dollars.
▶ 0:25:28It just seems that we ought to care more about what the poor people or working people think about money. They know that they'll never perhaps have the opportunity to have access to the kind of riches that we support here over and over again.
▶ 0:25:51I think the perception is such that we care more about what rich people think than we do about what the average person thinks. And so the penny is worth having a national discussion about. It is worth us paying attention so that we don't seem so elitist that somehow the penny is not important.
▶ 0:26:15And so for all of the reasons that I have given earlier about the rounding and all of that, I'm also concerned about how we are viewed and the perception that somehow the penny is not important and that we're too elitist uh to want to give real thought to how we maintain that penny. I know some people won't agree with this argument, but that's mine.
▶ 0:26:45And so I give it and I yield back to the gentle lady from Texas. Turn your mic on, please. I'm sorry. Um, you know, I think the penny is as American as the flag is baseball and apple pie. I mean, you get rid of the penny and you're just kind of piercing the heart of the Statute of Liberty.
▶ 0:27:11Uh, people really really like pennies and and again, it could be the songs of like pennies from heaven. It could be the the sayings of penny for your thoughts. I mean, people have penny in their everyday language. They use it. They talk it. We should not be taking something away from Americans that they love so much. With that, I yield back. Gentleoman yields back. Does the gentleman from Oklahoma insist on his point of order? I failed to clear that. I uh would seek to withdraw my point of order. And by the way, Mr.
▶ 0:27:39Chairman ask you unanimous request to enter a letter of support for the Common Sense Act from the United Steel Workers. Without objection, that'll be included as a part of our record. Thank you. Who seeks recognition? The gentleman from Mr. M. Oh, sorry. Mr. May alternate. I didn't see Mr. Sherman. I apologize. Mr. Sherman, you're recognized as strike last word. Thank you.
▶ 0:28:01I uh headed the largest sales tax agency in this country for several years and in fact almost every transaction is already being rounded. Uh if you uh buy something for $412 in our state it was 7% sales tax you actually owe the merchant $4.484 and they round it to the nearest penny.
▶ 0:28:32And uh now uh rounding to the nearest nickel can be done the same way. In addition, if you are hellbent on making sure that everything is rounded down rather than rounded up. If you're going to buy, it is the the customer who decides whether to go to the checkout stand and buy one box of paper clips knowing that that might be rounded down or two boxes.
▶ 0:28:59So if you're planning to buy two boxes, you can buy them separately or together. And so it's the customer who can determine whether um whether the transaction would be one that would be rounded up to the nearest nickel or down to the nearest nickel. Um, keep in mind uh this bill and so I I can't agree that we need a three-year study.
▶ 0:29:23We've studied this for a long time, but the under this bill, the pennies remain in circulation for many years to come. And so, uh, I I think that it would be a very slow process. And look, if we determine that uh we uh want to uh reissue the penny, we can do that at any time.
▶ 0:29:46From an environmental standpoint, uh there is a lot uh that goes on in mining zinc uh and mining nickel. If this program goes through, we will be mining less. Um now, it'll probably be less mining of nickel because we'll use the zinc and uh along with nickel to make a nickel.
▶ 0:30:07Um but whether it is nickel or whether it you know having many many tons of metal created for the purpose of having a penny uh is and I I do think there will be an adjustment. I think the word penny will continue to be a part of our vocabulary and a penny will still be involved in all of our non uh cash uh transactions.
▶ 0:30:35But having grown up in a society where every transaction at the checkout st uh countered was already subject to rounding. And keep in mind the amount of rounding. Uh 70 80 years ago you rounded to the nearest penny. Rounding to the nearest nickel is less rounding because the penny 80 years ago is worth more than the nickel today. So uh I I think it's time to move forward on this.
▶ 0:31:05We consult we dealt with this in this committee room. I think it was 15 20 years ago. Um, and uh I think that it is it is time I think that uh Abraham Lincoln will continue to be remembered on the $5 bill. Uh and that uh um people people will will adjust.
▶ 0:31:31Uh with that uh I uh see no one who wants me to yield them time and yes uh Mr. Foster. Yeah. If I could just make one quick point about rounding. Let's say you have an entry-level job, uh, 18 bucks an hour at a that's sort of a warehouse job in the Chicago metro area. You're being paid one penny every two seconds. So, if you're worried about poor people being treated unfairly, let's worry about wage theft at for warehouse workers.
▶ 0:32:00You know, two, that's a bigger issue than rounding. And I think we really ought to focus on things that are really, really important. And I'm not sure that the rounding part of this is a really has a big impact on on poor people. It is a joy to hear someone on this side of the issue from the state of Illinois back uh decades ago. Uh the uh the concern was memor remembering Abraham Oh, you you missed my earlier point. I did not let that slide. Oh, okay.
▶ 0:32:29Then uh I uh I I I I I'm confident that Abraham Lincoln will be appropriately remembered in many many different ways. Will the gentleman yield? I will yield to the ranking member. Uh to Mr. Foster, there is no more warehouse workers. The robots are doing the job. Yield back. I'll yield back to the chair. I thank the dialogue. Gentleman yields back. Now recognize the gentleman from Georgia, Mr. Ladder. You're recognized to strike the last word. Well, thank you, Mr.
▶ 0:32:58chairman, our uh my good friend and resident bull fighter from Oklahoma addressed basically every point that uh I thought we needed to make. But I I will I will say this as I we make this common sense adjustment to modernize our our monetary system. Maybe we could talk to our friends over in ENC about doing something about this 9/10en of 1 cent tax on fuel. So I yield back. Yes, I'll yield to the gentleman from Oklahoma. Thank you sir.
▶ 0:33:28I would just simply note once again this is an inevitable outcome of policies that we are looking at on monetary task force. The 2% inflation target by the Federal Reserve system means that we will lose 2% of our buying power every year. You don't have to be much of an economist to calculate the compounding effect at what point when the zinc core coins won't be producable or the copper clad coins that we do for dimes, nickels, quarters, and halves.
▶ 0:33:59This is a designed problem that has come to rest upon us. We're just trying to fix the policies that all my Keynesian friends here support. Would the gentleman yield? Yes, sir. Is is the gentleman want to go back to the gold standard? I said if he does, I'm I'm always interested in in engaging on that conversation. I've sat for a number of your next years next to Dr.
▶ 0:34:26Ron Paul who was a very strong proponent of the gold standard and we've discussed this in nuances beyond what you would believe. But I say this, Mr. Chairman, there is an example of deinflating the economy after the American Civil War, as you're well aware of, when we reduced the currency in circulation, uh, lowered the price of gold, and went back to gold standard. I'm not sure the American public is ready for that kind of an experience in your lifetime or mine again.
▶ 0:34:50Well, I I raised it with my friend from Oklahoma because I think he illustrates the critical nature of why price stability should be the principal objective of the Federal Reserve system. No matter how many mandates they have, their real role in our society to protect the poor uh and the productive sector of the economy is to have a price stability that doesn't have a depreciating currency. I thank the gentleman in your states, Mr. Chairman. Yield back.
▶ 0:35:20Uh is there further debate on Mrs. Waters amendment? If there's no further debate, the question now occurs on the amendment. All those in favor of the amendment, please say I. All those opposed shall signify by saying nay. In the pin the chair, the naysay have it. The nays have an amendment is not adopted. We'll now move to the next amendment. Is there additional The gentleoman has requested a recorded vote. All those in favor of recorded vote, raise your hands.
▶ 0:35:50A sufficient number having raised their hand, a recorded vote is so ordered. Pursuant to subsection C5 of rule three, the committee rules further proceedings on the amendment are postponed. We'll now move to the next amendment. Is there another amendment to Miss Mlan's underlying bill?
▶ 0:36:14Seeing no further amendments, without objection, the previous question on the substitute is ordered and recorded votes on the pending amendment have been postponed. Once those votes are taken, the committee will immediately vote on the adoption amendment and nature of a substitute and then consider the question to report the measure. We'll now move to the next bill.
▶ 0:36:36Pursuant to notice, I call up HR 4478, the Tailored Regulatory Updates for Supervisory Testing or Trust Act of The bill was introduced by Representative Moore of North Carolina. The clerk will report the bill, which was distributed in advance.
▶ 0:36:54HR 4478 to amend the Federal Deposit Insurance Act to permit federal banking a agencies to examine qualifying insured depository institutions with under 6 billion in total assets not less than once during each 18-month period and for other purposes. Without objection, the bill is considered read and it's open to amendment at any point. I now call on the distinguished gentleman from North Carolina. Mr. Moore, you're recognized to explain your bill for 5 minutes. Thank you, Mr. Chairman.
▶ 0:37:23In my home state of North Carolina, particularly in the rural communities in the western part of the state, community banks are lifelines and we and they do accept pennies for deposit as well, Mr. Chairman. Uh but under the current regulatory framework, too many of these institutions are spending more time navigating examiner checklist than serving their customers. This overly burdensome environment discourages growth and leaves communities communities with fewer banking options.
▶ 0:37:48The tailored regulatory updates for supervising testing act or the trust act of 2025 will bring muchneeded regulatory balance back to our financial system and strengthen community banking. The trust act raises the consolidated asset threshold from $3 billion to $6 billion for well-managed insured depository institutions to qualify for an 18-month examination cycle. This is a common sense bipartisan update to a rule that has not kept pace with the changing financial landscape.
▶ 0:38:19These institutions do not pose a systemic risk and the trust act does not weaken any safety or soundest soundness standards. This it's important to point out this applies only to small community focused institutions, those with no recent change in control, no outstanding enforcement actions and strong examination ratings. They are well- capitalized banks with a track record of doing things right.
▶ 0:38:44These community banks are essential for small business lending and economic development in communities across this country. Back in 2018, Congress recognized this reality and passed the bipartisan reforms to promote smarter, more tailored regulation. The trust act builds on that effort by updating the asset threshold to ensure the same percentage of well-performing community banks that qualify for longer examination cycles.
▶ 0:39:10I want to thank my colleague Congressman Torres for co-leading this effort with me and Chairman Hill and Subcommittee Chair Bar for their work. Mr. Chairman, let's stand with the institutions that know their customers by name and invest in our communities. Thank you and I yield Gentleman yields back. Who seeks uh recognition? Gentlewoman from California. I move to strike the last word. You're recognized for five minutes.
▶ 0:39:39I want to thank Representative Moore and Representative Torres for their work on this bipartisan bill to provide further exam relief for our community banks. This bill raises the asset threshold from three billion to six billion for well capitalized and well-managed banks to qualify for an 18month examination cycle instead of a 12month exam.
▶ 0:40:05Like the smart act, this incentivizes community banks to manage their businesses well. And if they do, then they're able to get less frequent exams. Congress last raised the threshold to three billion in 2018 which covered of banks by raising the threshold to six billion today.
▶ 0:40:29We will update this threshold to cover roughly the same number of banks 94.6% of banks that have less than six billion in assets. Again, while Republicans have pressed for much higher thresholds, as high as 25 billion, this 6 billion threshold is more reasonable approach. I urge the members to support this bill and I yield back the balance of my time.
▶ 0:40:57Thank the rank member yields back. Mr. Loudermilk, you're recognized to strike the last word. Thank you, Mr. Chairman. I support the Trust Act, a bill that reflects a thoughtful approach to modernizing how regulators supervise community banks.
▶ 0:41:11This legislation addresses a long overdue update to the Federal Deposit Insurance Act by increasing the asset threshold for extended examination cycles from three billion to six It is a targeted technical correction that acknowledges how significantly the community banking landscape has changed over the past decade. Since the threshold was last set, inflation has risen, the number of smaller banks has declined, and the average size of healthy institutions have has grown.
▶ 0:41:40Yet, the rules have not kept pace. Today, many well-run institutions are being examined more frequently than necessary, not because of risk, but because of an outdated regulatory that diverts time and resources away from lending and customer service. Importantly, the trust act preserves all the existing safeguards. Only institutions that are well capitalized, well-managed, and free from enforcement actions will qualify for the extended 18-month exam cycle.
▶ 0:42:10Regulators also retain full authority to conduct more frequent exams if conditions warranted. The Trust Act does not lower standards. Instead, it reflects a regulatory approach that is responsive to a bank's condition and recognizes the difference between genuine supervisory concerns and institutions that are simply growing This is a smart common sense adjustment that will help community banks stay focused on what they do best, serving the real economy.
▶ 0:42:38I thank Representative Moore and Torres for their leadership and I urge my colleagues to support this bill and I yield back. gentleman from Georgia yields back who seeks recognition. Seeing no other speakers, I recognize myself for five minutes in support of Mr. Moore's bill. I'm proud to support the Trust Act offered by the gentleman from New York and the gentleman from North Carolina.
▶ 0:43:03This is common sense legislation that updates a now outdated threshold in the Federal Deposit Insurance Act, increasing the asset threshold from three billion to six billion for insured depository institutions that qualify. I think ranking member Waters described it quite effectively.
▶ 0:43:20This too was such a heart of the business I was in before I was in Congress and I can't tell you how much this will be appreciated by boards of directors, management teams of well-managed, highly rated community banks. This is just really a major contribution to managing their affairs and lowering their uh annual planning costs.
▶ 0:43:44It's a simple targeted fits that reflects the evolution of our financial system and the modern risk landscape facing our community banks. To be clear, this bill does not lower supervisory standards. I think that bears repeating or reduce regulatory scrutiny. It simply provides tailored supervisory relief for community banks that are doing the right thing. Bottom line, we're incentivizing actually good behavior. With that, I support Mr. Moore's fine work and his co-sponsor, Mr. Torres.
▶ 0:44:15I urge a yes vote on both sides of the aisle and I yield back. Does anyone else seek recognition on the Moore bill? We'll turn hearing none. We'll turn to amendments. Does anybody have an amendment to Mr. Moore's bill? I see there's no additional amendments, no further discussion. So, the question now occurs on ordering this bill to be reported to the House with a favorable recommendation. Those in favor shall signify by saying I. I. Those opposed signify by saying nay.
▶ 0:44:45Opinion of the chair the eyes have it. Mr. Chairman, the gentleman is I request a recorded vote. The gentleman rec requests a recorded vote. All those in favor of recorded vote raise your hands. A sufficient number having raised their hand. A recorded vote is ordered. Pursuant to subsection C5 of rule three, the committee rules this vote is postponed. We'll now move to the next bill.
▶ 0:45:09Pursuant to notice, I call up HR 3446, the FDIC Board Accountability Act, which was introduced by the committee's vice chairman, Representative Heisinga. The clerk will report the bill, which was distributed in advance. HR 3446 to amend the Federal Deposit Insurance Act to revise the membership requirements for the board of directors of the Federal Deposit Insurance Corporation and for other purposes. Without objection, the bill is considered read and open to amendment at any point.
▶ 0:45:38I now call on our vice chairman, the gentleman from Michigan. You're recognized for five minutes to describe your amendment. Thank you, uh, Mr. Chairman. I appreciate that. And in the fall of 2021, the director of the CFPB using his position as a board member of the Federal Deposit Insurance Company Corporation, sorry, FDIC, upended an agency with over 88 years of collaboration and independence as its history.
▶ 0:46:04Uh, as a result of then Director Chopra's hostile takeover, the FDIC's core mission, which is to protect depositors, suddenly felt like an afterthought. Fast forward to November of 2023, the Wall Street Journal reported allegations of a quote toxic workplace culture, uh, which then included harassment and discrimination from the FDI's own leadership.
▶ 0:46:28Um, subsequent year-long investigation by this committee concluded that the agency fostered a toxic culture that employees endured and suffered under for years. Information obtained through testimony, document requests, staff interviews showed the consequences of former chairman Grunberg's leadership at the agency for 20 years. Mr. Chairman, the FDIC was established in 1933 and served the American banking system very well.
▶ 0:46:56However, given the actions during the last administration, I believe that reforms are needed. The FDIC Board Accountability Act would address many of the problems that we have previously outlined. And first, the FDIC board members should not serve in perpetuity. Uh this shouldn't be a lifelong Supreme Courtlike uh appointment. Uh we need to have some uh some uh terms to that.
▶ 0:47:23Fresh ideas and leadership are critical to keeping up with the rapid expanding and modernizing American banking system. My bill will limit board service to more no more than two terms and a maximum of 12 years in total, reducing the potential for entrenched partisanship. Second, the bill would move the director of the CFPB from a voting to a non- voting member.
▶ 0:47:45This change would allow the director to participate in board meetings, provide valuable input concerning consumer protection, yet not dominate and run the run the uh the the board. So I want to note while testifying before this committee, Director Chopra was quick to remind just about anyone listening that he was in fact not a regulator. Uh I feel it is appropriate to move that position if you're not a regulator to an observer status. In addition, this change is not without precedent.
▶ 0:48:14Similarly, the Financial Stability Oversight Council FSOC has five non- voting members, all representing government or industry perspective. And lastly, the FDIC Board Accountability Act would require that of the four board members appointed by the president and confirmed by the US Senate. One shall have state bank supervisory experience and one shall have demonstrated primary experience working in or with depository institutions having less than 10 billion in assets.
▶ 0:48:45Mr. Chairman, we we know that this discussion that happens and you with your background uh know that sometimes those smaller community banks can kind of get lost in the wash and uh we need to make sure that they have a voice at that table. So, I believe that these changes are common sense. Uh, and as community financial institutions continue to bear the burden of overreaching regulations, it's important that they have a voice represented on the board. So, Mr. Chairman, I look forward to advancing this legislation.
▶ 0:49:12I want to thank Chairman Bar for his continued support of my bill and yield back the balance of my time. Gentleman yields back. Who seeks recognition? Ranking member of the full communist waters. You're recognized. I move to strike the last. You're recognized for five minutes.
▶ 0:49:28Unlike many of the bipartisan bills we are considering this week, this bill is a partisan attack against the Consumer Financial Protection Bureau and an attempt to relitigate past fights at the Federal Deposit Insurance Corporation.
▶ 0:49:49It also does nothing to help community banks or consumers, but is instead offered to distract the public from the fact that Trump is gutting the CFPB and half of financial regulations protecting our financial system.
▶ 0:50:08Instead, House Republicans are claiming that previous Democratic members of the FDIC board, including the CFPB director, exceeded their authority by seeking to advance a proposal to request public comment on how the FDIC could strengthen their bank merger review policies over then Republican Chairwoman M.
▶ 0:50:38I wrote a letter to Chair M. Williams raising strong concerns about her effort to block the majority of the FDIC board from acting and ask her what legal authority allowed her to do this. Chair M. Williams decided to resign shortly thereafter.
▶ 0:50:59And the Department of Justice analyzed what happened and wrote a legal opinion making clear that the Democratic members acted appropriately and that an FDIC chair lacks authority to block a proposal supported by the majority of the FDIC board. That's because there were three Democrats on the board and only one Republican. Mr. Chairman, that's called a majority.
▶ 0:51:28Nevertheless, House Republicans introduced this bill to quote, "Ensure, the FDIC remains an independent agency removed from the political whims of partisan ideologues like we saw on December 9th, quote unquote." So, how do Republicans accomplish this?
▶ 0:51:50By removing the only voting portion on the FDIC board that is a consumer financial protection expert, the CFPB directive. It is laughable that the supporters of this bill claim they want to strengthen FDIC independence or that this bill would do anything of this sort.
▶ 0:52:14President Trump has already undermined the independence of federal agencies by firing independent board directors and forcing all bank and regulator rules to be approved by the White House. The Trump White House is even now approving the budget of the FDIC, deciding how many resources they can use on regulatory staff, bank examiners, or enforcement attorneys.
▶ 0:52:45Have the Republicans raised any objections to this? No, of course not. Trump and his allies have also attacked the Fed repeatedly, threatening to fire J. Paul for no good reason whatsoever except that Trump needs lower interest rates to fix the problem he created with a chaotic tariff plan that no one wants.
▶ 0:53:11This bill does nothing to reverse those reckless actions by Trump or otherwise strengthen the actual independence of agencies like the FDIC. I urge members to oppose this partisan bill. This is outrageous and I yield back the balance of my time. Ranking member yields back. A gentleman from Georgia. You're recognized. Strike the last word. Well, thank you, Mr. Chairman.
▶ 0:53:38I support HR 3446, the FDIC board accountability act offered by my good friend, Mr. Heisinga. Ensuring the FDIC is well functioning and free from undue political pressures is critical to maintaining a safe financial system and protecting depositors. Unfortunately, we've heard troubling testimony about dysfunction at the highest levels of the FDIC, including partisan infighting and senseless power grabs. This is unacceptable and undermines the trust of this critical agency.
▶ 0:54:07Accountability and transparency should be the foundation for every financial regulator. This bill requires one member of the board to demonstrate primary experience working in or supervising depository institutions having less than $10 billion in total assets. This bill does not micromanage the FDIC, but affirms that board governance should be a collaborative and not a dominated not dominated by one political appointee.
▶ 0:54:34Meaningful term limits on the number of terms a board member may be appointed will decrease political pressures on the agency and will lead to better outcomes for financial institutions and their depositors. When it comes to making decisions that affect the safety and soundness of our banking system and the savings of millions of Americans, we should expect open communication and collaboration. This bill also ensures that FDIC board members are well suited to address the pressing needs of the agency.
▶ 0:55:01That includes shifting the director of the CFPB to a non- voting observer. The CFPPPB director should be squarely focused on enforcing federal consumer protection laws, not weighing in on credential regulation, supervisory matters, or deliberations on deposit insurance. This is a meaningful and targeted bill that places guard rails on the FDI's leadership structure. an independent agency tasked with guarding our nation's depositors should remain just that, independent.
▶ 0:55:32I urge all of my colleagues to support this bill and I yield back. Will the gentleman yield? I yield to my friend from Well, thank you. I I appreciate uh your leadership on this and um just to remind everybody what was going on. Um this uh this story at the FDI broke in the Wall Street Journal. Uh it uh it caused a couple of investigations. Those investigations findings and the investigation itself were bipartisan.
▶ 0:56:02They were open to everybody. And uh we had a number of transcribed interviews that clearly demonstrated that the reign of terror that uh that Marty Groomberg had at the FDIC was real. People literally were scared to speak out.
▶ 0:56:18uh and we started getting whistleblowers coming to us before there was even a whistleblower avenue for them to come that was formally set up and uh and and and I think sort of time has maybe turned some people's memories a little hazy on uh on the details of what was happening over there.
▶ 0:56:39Uh it it was uh abhorrent abhorrent the way that that had been run and uh screaming at employees, harassing employees, intimidating employees uh and creating a culture that uh that that was allowed to then affect others and uh it just was uh it was just a a horrible horrible situation. We are trying to make sure that that never happens again.
▶ 0:57:07And uh it shouldn't matter whether there's an R or a D attached behind anybody's name that's leading that uh that organization. It simply is how you treat people. Uh that should count. And uh and that is not the way that uh those those government employees at the FDI uh should have been treated.
▶ 0:57:26So, I I just wanted to re-emphasize again that uh you know that both sides of the aisle uh were in on those transcribed interviews, those that investigation that was happening was open and accessible to everyone on this committee. And uh Mr. Chairman, we think that this is a logical step. So, I yield back to the gentleman from Georgia. I yield back the balance of my time. Gentleman from Georgia yields back. The gentleoman from Texas is seeking Thank you, Mr.
▶ 0:57:55chairman and I rise to uh oppose this bill while I'm very aware of the situation. You're recognized to strike the last Yes, sir. I I move to strike the last word. I apologize. U you know, I'm aware of the situation at the IC, but I don't think this bill is the answer. I think this bill is more of a more of targeting the consumer financial protection uh bureau and having a director being on there and this term limits and other things that he's talking about.
▶ 0:58:26In fact, when he started describing the the lack of respect to employees and the harassment, etc. I thought he was talking about Mr. Musk and the Deutsch Cotts team uh because that's exactly some of the reports we got uh from a lot of employee groups.
▶ 0:58:42Uh, so I would hope that that as adamantly as he's focused on the FDIC employees that he focuses on that for all employees, including our own employees here at our cafeteria in our dining room who are being moved and and um losing their jobs. Uh, but enough said about that. I think it's important that also to note that this bill does nothing uh to ensure the FDIC remains independent.
▶ 0:59:09Uh, I strongly am opposed to this bill and with that I yield to the ranking member the balance of my Thank you very much. Mr. Chairman, I would like to ask you a brief question. This week we mark the 15th anniversary of DoddFrank, but our committee has failed to hold one of its required hearings this year. I wrote you in February asking when we would have our statutoily required hearing with the CFPB acting director.
▶ 0:59:40We've had required hearings with the Fed chair twice this year and the Treasury Secretary once. Last Congress, former Chair Mckenry and the CFPB director testified three times, but it has been more than a year since we had our semianual CFPB hearing. Even former acting director Mick Mulaney testified five months into his tenure.
▶ 1:00:07Since you have not scheduled the hearing yet, here is another letter from me requesting you to do so. Consumers deserve to know what is going on at the CFPB. So, when will you schedule this overdue hearing? Can we finally have this hearing in September? With that, I respectfully give to you the letter. I thank the gentleoman for the personal curring of a of a letter. Thank you for that.
▶ 1:00:35We that's not to implicate implicate either you or I about the inner office male or the US Postal Service. I thank you for the letter. It's been my preference from the very beginning of of this Congress that we have President Trump's nominee uh confirmed by the Senate to testify before this this body on the Trump administration's plans for the the bureau.
▶ 1:00:57And unfortunately, as the ranking member certainly knows, uh the person nominated to take that job withdrew their name and and subsequently has now been appointed to a position in the United States Treasury Department. So, we can continue to wait for the Trump administration to appoint and the Senate to confirm a new bureau head, but I take her uh request seriously and and we'll follow up with her and I thank her for the time. Thank you very much, Mr. Chairman.
▶ 1:01:26Uh, Miss Garcia, it's still your time. I reclaim my time, but we'll yield it back. Thank you. The gentleoman yields back. Is someone else seek recognition to speak on this Seeing none, I recognize myself for five minutes. Well, let me thank my good friend, our committee vice chair, Mr. Heisinga for introducing this bill. Also want to thank him for the due diligence and careful scrutiny he used in thinking through the parameters of this bill.
▶ 1:01:54This is not just a legislative measure that um has come up in any casual way. He served as our chair of the oversight committee in the last Congress and was quite diligently in looking at the terrible situation that we found in the abuse and mismanagement at the FDIC under the Biden Harris administration. A well functioning FDIC is critical critical to maintaining the safety and soundness of the US banking system.
▶ 1:02:25Many people come to this committee. We have a lot of conversations about the importance of the Federal Reserve and it is important particularly as it relates to monetary policy and particular as it relates to price stability. But when it comes to our banking system across the country and particularly for our small banks, our 4,500 banks that are under$10 billion, there's not a more important uh agency than the the FDI. So I think the vice chairman's bill is about good governance.
▶ 1:02:55It's not about in any way attacking or dealing with the Consumer Financial Protection Bureau. Uh FDIC's supervisory function should be creating certainty and stability for depositors particularly in times of stress. But it's hard to fulfill that mission when internal strife paralyzes the agency. And that's what then chairman Heisinger of our oversight committee found to be the case.
▶ 1:03:23And this committee took full committee witness testimony to that effect. And when governance is concentrated in the hands of partisan actors who lack expertise or bas in some cases based decency, you have a breakdown in the oversight of the agency. Recent disturbing events involving board dysfunction damage the agency's reputation and integrity.
▶ 1:03:45And I would remind this committee of the testimony we've taken on a full committee basis in the last Congress on the workplace violations and abuse uncovered from whistleblowers in the agencies about the incompetence of the previous agency head even to the point where the Biden administration basically said he would be replaced.
▶ 1:04:10And finally, what about the substantive lack of leadership and incompetence in the Silicon Valley challenging weeks? The former head of the agency demonstrated again a lack of capability in that instance as well. In my personal view, HR 3466 is a target approach to implement the necessary reforms in the FDIC structure.
▶ 1:04:32This bill will increase accountability by requiring expertise among board members and setting a balanced term limits to ensure all board members are informed and have equal opportunity to the decision-making process. It will also ensure that the CFPB remains focused on issues that are actually it's actually equipped to address protecting consumers and not dealing in as both Mr. Louderdermilk and Mr.
▶ 1:04:55Heisa pointed out bank safety and soundness or deposit insurance or merger and acquisition matters which is the core function of the agency and again the reason why I assert that I don't find the CFPB uh comments from the minority particularly compelling is 90% of the FDI seed insured banks are under 10 billion and therefore the CFPB actually isn't supposed to be examining them or particularly involved in their lives.
▶ 1:05:25and the FDIC, the Office of the Control of the Currency, the Federal Reserve of the Credit Union Association are all involved in consumer protection, all involved in consumer compliance. They're all doing it. We did not get one agency through DoddFrank. We got a new agency on top of all the other agencies doing this exact supervisory work.
▶ 1:05:45So, I think the gentleman's idea of having them be a non- voting director is good for coordination of uh consumer protection related matters. I urge all my colleagues to support his bill and restore public confidence in the FDIC charged with safeguarding our financial system and I yield back. Does anyone else seek recognition on this bill? Hearing none, we'll move to amendments. Does anyone have an amendment on Mr. Heisinger's bill.
▶ 1:06:18There being no further discussion or amendments to the bill, the question now occurs on ordering the bill to be reported to the House with a favorable recommendation. Those in favor shall signify by saying I. I. All those opposed shall signify by saying nay. In the opinion of the chair, the eyes have it. For what purpose the gentleman from Michigan seek recognition? I request a recorded vote. Gentlemen request a recorded vote. Those in favor of recorded vote, raise your hand. A sufficient number having raised their hand, a recorded vote is so ordered.
▶ 1:06:43Pursuant to subsection C5 of rule three, the committee rules the vote on this question is postponed. We'll now move to the next measure. Pursuant to notice, I call up HR 3390, the bringing the discount window into the 21st century act. This bill was introduced by Representative Dela Cruz. The clerk will report the bill, which was distributed in advance.
▶ 1:07:10HR 3390 to amend the Federal Reserve Act to require the board of governors of the Federal Reserve System to carry out a review of discount window operations and to implement improvements to such operations and for other purposes. Without objection, the bill is considered read open to amendment at any point. Representative Dela Cruz has an amendment in the nature of a substitute, copies of which have been distributed in advance. The clerk will now report that An amendment in the nature of a substitute to HR 3390.
▶ 1:07:40offered by Miss Dea Cruz of Texas designated as de la Cruz 037. Without objection, the amendment's considered read and will serve as the base text for purposes of amendment. The gentleoman from Texas, Miss Dela Cruz, is now recognized for five minutes to explain her amendment. Thank you, Mr. Chair. I'd like to thank you for including my bill bringing the discount window into the 21st Century Act in today's markup.
▶ 1:08:07I would also like to thank task force chair Lucas and subcommittee chair Muer for co-sponsoring this legislation. My bill is simple and clearcut. It would require the Federal Reserve to conduct a comprehensive review of its discount window operations. The discount window is a key source of liquidity that banks rely on in times of stress.
▶ 1:08:36This bill has several common sense provisions like evaluating discount window hours of operation, reviewing how the Federal Reserve banks communicate about the discount window with their memberships, and taking a look at the current state of tech of the technological infrastructure that supports this key program to ensure that it is running smoothly. All common sense.
▶ 1:09:05Importantly, the bill also directs the Federal Reserve to examine the interaction between the discount window and critical lending provided by the federal home loan banks, which community banks depend on to support loans for homeowners, small businesses, and farmers.
▶ 1:09:24preventing issues with discount window lending during times of crisis or economic stress when such access is most critical will enhance the financial stability and help ensure credit remains available to our constituents. This committee on both sides of the aisle knows the importance of the Fed's discount window.
▶ 1:09:51The review mandated by this bill will help ensure the Fed is ready for the future and that the discount window is too. I urge my colleagues to support this build bill. I yield back. Gentleman yields back. Who seeks recognition on Dela Cruz? Uh Mr. Foster. Yeah. Yeah. Well, thank you. I guess I strike the last word. Strike the last word.
▶ 1:10:20Um, yeah, I want to thank my Republican colleagues for bringing forth a clear and focused version of this bill as a standalone measure. I also want to thank the chairman for advancing our second bill this year to respond to the Silicon Valley Bank and the other regional bank failures two years ago. As the chairman's aware, Democrats have numerous bills with bipartisan support that would further address problems associated with the failure of Silicon Valley Bank, many of which hurt community banks through no fault of their own.
▶ 1:10:48So, uh, we support this bill and I encourage the chairman to continue to expand his bipartisan efforts in this area and I yield back. Appreciate the gentleman from Illinois. Mr. Loudermilk, you're recognized to strike the last word. Thank you, Mr. Chairman. I support HR 3390 bringing the discount window into the 21st century act. And I want to thank my good friend, Miss Dela Cruz, for her leadership on this legislation.
▶ 1:11:13The Fed's role as a lender of last resort is of critical importance to the safety and soundness of the financial system. However, it needs improvements and updates to better respond to the potential speed of today's financial panics. Last Congress, the financial institution subcommittee held the most bipartisan hearing we've ever had when we examined the Federal Reserve's role as the lender of last resort. In that hearing, members on both sides of the aisle raised concerns with the inefficiency and lack of transparency around the discount window operations.
▶ 1:11:44For decades, the Fed's emergency lending off authority has evolved in response to new threats to financial stability. Following the March 2023 bank failures, the Fed has been working to reexamine its discount window operations given the clunky process that that event made evident.
▶ 1:12:03HR 3390 will direct the Fed to conduct a comprehensive review of its discount window lending programs, including a consideration of the effectiveness of our discount window and providing liquidity to the financial institutions in times of financial stress. It will also require consideration of whether the technological infrastructure is sufficient to support the timely provision of liquidity. There are a number of simple improvements the Fed can implement to reach this goal and we will continue to encourage the Fed to make such changes.
▶ 1:12:33I encourage all members of the committee to support this bipartisan legislation on a topic of critical importance and I yield back. Gentleman yields back. Is there further debate on Miss Dela Cruz's bill? Hearing none, we'll turn to amendments. Uh have we got amendments on Mr. Dela Cruz's bill? Dr. Dr. Foster has an amendment at the We'll pause for it to be distributed.
▶ 1:13:05Mr. Chair, can I reserve a point of The gentleman from Michigan reserves a point of order on the Foster amendment. Got it. Okay.
▶ 1:14:09Clerk will report the amendment. An amendment to the amendment in the nature of a substitute to HR 3390 offered by Mr. Foster of Illinois designated as Foster 044. Thank you very much. Uh the without objection amendment will be considered as read and the gentleman is now recognized for five minutes to discuss his amendment. Uh thank you Mr. Chairman. And I think this is a relevant and important bill and I'm glad that we're considering it as a standalone bill here today.
▶ 1:14:39In the last Congress, similar language was offered as part of a broader package that cumulatively I could not support. But during the markup of that package, I offered an amendment similar to this one and offered to work together on this proposal. I've appreciated your willingness to work on this bill and I believe that this is a friendly amendment that's in line with the spirit of the bill.
▶ 1:15:00The this amendment makes several technical adjustments that are intended to encourage collaboration in the review by relevant banking regulation regulators and others to ensure proper oversight of the process. The bill also makes adjustments to the parameters of the review to capture other areas of the discount windows operation that were identified as problematic during the recent banking turmoil in 2023 when record numbers of financial institutions borrowed from the discount window at record rates.
▶ 1:15:27First, this amendment requires the Federal Reserve to review the effectiveness of communications between the Federal Reserve Banks, financial institutions, the board of governors, FDIC and OC, and the Treasury Department, ensuring regulators are able to rapidly communicate during the regarding the functionality of the discount window. Secondly, it will require a a review of different financial institutions access to the discount window, ensuring that access is consistent across the entire Federal Reserve system.
▶ 1:15:57Third, it will re require a view on how mobile banking and instant communications technologies impact depositor behavior and liquidity risk posed by financial institutions and whether changes can be made to the discount window to better address the rapid liquidity demands that will be faced by banks in the near future. I feel like the last point is incredibly relevant given the issues that we saw in n in 2023 with the collapse of Silicon Valley Bank.
▶ 1:16:25In addition to the bank's poor management, the firm had a concentrated depositor base that was tightly interconnected. My guess is that many of them were on the same signal chain. So when rumors began swirling online about the bank solvency, depositors pulled $42 billion from Silicon Valley Bank within 24 hours and regulators determined that if the bank had not been taken into receiverhip, around 100 billion would have been withdrawn the following day.
▶ 1:16:52The failure of SVB was followed closely by the failures of Signature Bank and First Republic Bank. And the failure of those firms resulted in record high amounts of outstanding loans from the discount window, more than 152 billion on March 15, 2023. To put that number in comparison, the maximum amount borrowed by financial institutions at any point during the pandemic was $51 billion and the maximum amount during the 2008 financial crisis was 111 billion.
▶ 1:17:22So, it's clear that bank runs can be triggered and can escalate more rapidly than ever before. And I believe it's essential to include this language in the scope of the review. In 2023, we saw a bank run take place at the speed of internet gossip. Within a few years, I believe this will be at the speed of artificial intelligence. Personal AI agents and financial advisers will have an obligation uh to their owners to move money to safety at the first sign of trouble.
▶ 1:17:51And I believe this can only make liquidity risks and bank runs more intense and contagious. So I again I support this legislation and I hope my colleagues will support this constructive amendment. Thank you Mr. Chairman and I yield back. Appreciate the gentleman from Illinois. Does the gentleman seek on his insist on his point of order? Gentleman from Michigan withdraws his point of order. Who seeks recognition on the on the bill? Miss Dela Cruz. Strike the last word on the foster Yes.
▶ 1:18:21I move to strike the the last word. Um, I rise in support of the foster amendment to HR 3390. It strengthens the underlining bill by improving the review of the discount window and adding a sunset clause for when the board's remediation plan has been fully implemented. I thank Congressman Foster and his staff for working with us to get the best possible version of this legislation.
▶ 1:18:50I urge my colleagues to support this amendment. I yield back. Appreciate the gentleoman's uh acceptance. Uh is there further debate on the Foster amendment? Seeing none, then what's the question occurs on the Foster amendment? All those in favor of the amendment shall say I. I. All those opposed signify by saying nay. in the penet show that eyes have it.
▶ 1:19:20The eyes have it and the amendment is adopted. We'll now consider uh another amendment. Dr. Foster. Yes, I have an amendment at the desk that I'm presenting on behalf of ranking member Waters. We have a waters amendment at the desk. We'll wait for that to be distributed. The gentleman from Michigan reserves a point of order.
▶ 1:20:14And this is The clerk will report the amendment.
▶ 1:20:43An amendment to the amendment in the nature of a substitute to HR 3390 offered by Miss Waters of California designated as Waters077. Without objection, amendments considered read and the gentleman, Mr. Foster, gentleman from Illinois, will describe Mrs. Waters amendments. You have five Thank you, Mr. Chair. Uh, we have heard minority depository institutions and other community banks express frustration with accessing various Fed facilities in the past.
▶ 1:21:10This was an issue during the pandemic when some institutions had initial challenges accessing the Fed's paycheck protection program liquidity fund to help support their banks work to deploy PPP loans to small businesses that needed them. During the regional failures in 2023, we heard from a number of banks that had challenges accessing the Fed's discount window.
▶ 1:21:30Our amendment here will help ensure that the Fed looks at various challenges in accessing the accessing the discount window, including operational issues, pricing, and terms of loans to help ensure banks can get access to emergency liquidity when it needs it. I've also heard community banks bankers express concern about the stigma of using the discount window given that their participation is publicly disclosed two years after they get a loan.
▶ 1:21:56uh they're concerned that may be perceived as weakness and thus may be reluctant to get emergency liquidity even if it is totally appropriate for them to do so. So my amendment would ensure that the Fed seeks ways to reduce this stigma to remove other barriers. I want to thank Chairman Hill and his staff for working with us on this in drafting this amendment. I urge members to support it and if it gets adopted I will urge members to support also the underlying Appreciate the gentleman from Illinois yields back.
▶ 1:22:25Does the gentleman from Michigan insist on his point of order? I withdrawn. Point of order is withdrawn. The gentleoman from Texas uh strike the last word on the waters amendment. Yes. I move to strike the last word. I rise in support of the amendment to HR 3390.
▶ 1:22:43It expands the board's review to consider the stigma associated with the use of the discount window in ways to improve access, operational efficiency, transparency, and the timeliness of the process for financial institutions seeking advances.
▶ 1:23:01The stigma is a widely recognized issue with the discount window today and something that this committee heard expert testimony about in our hearing on the discount window last February. I thank the ranking member Waters for her engagement and support for the underlying legislation. I urge my colleagues to support this amendment. I yield back. Gentleoman yields back. Is there further debate on the waters amendment? There's no further debate.
▶ 1:23:30The question now occurs on the waters amendment. All those in favor? Oh, yeah. I guess me pause on that. I'd like to speak on the both the bill and these amendments. If I could, I'll yield myself five minutes for that. I want to thank Miss Dela Cruz for her good work on this bill. This is a bill that members on both sides of the aisle have been focused on and observing and taking testimony on and thinking through literally since the financial crisis.
▶ 1:24:00uh when the DoddFrank Act um in some of the improvements to try to prevent global contagion and setting a high standard on um Federal Reserve policies and uh improved liquidity really did not do much to clear up the stigma associated with inday borrowing from the Fed, the so-called discount window. So moder modernizing the discount window operations is a a real topic of bipartisan agreement.
▶ 1:24:30And you've seen that evidenced today with these two very important, helpful uh clarifying and directive amendments. One from the gentleman from Illinois and one from our ranking member, Mrs. Waters. Last Congress, the committee held a hearing on the Fed's role as the lender of last resort.
▶ 1:24:48We heard from experts about several simple pragmatic changes the Federal Reserve can implement to improve its efficiency and providing critical liquidity for solvent institutions facing times of financial stress. The discount window should be that central bank's primary tool for stabilizing the financial system in times of stress by ensuring adequate liquidity for banks with strong collateral.
▶ 1:25:12But in practice, it's been underused due to the stigma that's been addressed today by members on both sides of the aisle. We saw this quite clearly in the failures at Silicon Valley and Signature Bank. Instead of accessing the discount window early, banks delayed action for fear of sending a negative signal to the market only to fail days later. Modern of the discount windows operations can be changed can be changed in simple yet meaningful ways.
▶ 1:25:41extended hours for institutions on the West Coast, streamlining operational requirements for pledging and withdrawing loan collateral, and updating the user user experience will all help meet that goal. As Dr. Foster reverenced, bank runs have gotten faster with the rise of social media. A few trending posts online can destabilize a solvent institution by spreading fear and distrust among depositors.
▶ 1:26:06This bill will ensure the Federal Reserve takes meaningful steps to address these issues and increase the transparency of this facility by carrying out a review of the discount window, submit a plan to Congress with actionable steps, regularly updating us on its implementation.
▶ 1:26:22For example, having looked into the Silicon Valley Bank case and others, personally, I hope that the Federal Reserve will consider the benefits of placing collateral pools backing central bank lines on a blockchain application so that they're available 24 hours a day, 7 days a week, and that uh both the bank and the central bank will know the status of that collateral.
▶ 1:26:45HR 3390 is targeted, practical set of reforms that will build on the Fed's request for information on discount window operations and inform Congress on how we can strengthen our financial systems ability to weather the next storm. I thank members on both sides of the aisle and I urge our colleagues on both sides of the aisle to support this bill as importantly amended this morning and I yield back.
▶ 1:27:11Does anyone uh seek uh further debate on uh the waters amendment? If there's no further debate, we'll now occur. We'll now ask the question on the amendment. All those in favor of the waters amendment shall signifi signify by saying I. I. All those opposed signify by saying nay. In the opinion, the eyes have it. The eyes have it and the amendment is adopted. We will now move on to a next amendment on Mr.
▶ 1:27:40Dela Cruz's underlying Not seeing any other further discussion or amendments to Miss Dela Cruz's bill. The question now occurs on the adoption of her amendment in the nature of a substitute. All those in favor shall signify by saying I. All those opposed signify by saying nay. In the pin chair, the eyes have it. Amendment is adopted. The question now occurs on ordering the bill as amended to be reported to the House with a favorable recommendation. Those in favor shall signify by saying I. I.
▶ 1:28:10All those opposed shall signify by saying nay. In the opinion of the eyes have it. Mr. Chairman, the gentleoman, I would like to request a recorded vote on my bill, please. Gentleoman from Texas requests a recorded vote. All those in favor of recorded vote raise your hands. A sufficient number having raised their hand. A recorded vote is ordered. Pursuant to subsection C5 of rule three of the committee rules, the vote on this question is postponed. We'll now move to the next bill.
▶ 1:28:40Pursuant to notice, I call up HR 4460, the Stop Agency Fiat Enforcement of Guidance Act, which was introduced by Representative Muer, the chair of our oversight subcommittee. The clerk will report the bill, which was distributed in advance. HR 4460 to require a guidance clarity statement on certain financial agency guidance and for other purposes. Without objection, the bill is considered read and open to amendment at any point. The gentleman from Pennsylvania, Mr.
▶ 1:29:08Muer, you're now recognized for five minutes to discuss your bill. Thank you very much, Mr. Chairman. I move to strike the last word. I urge my colleagues to support my bill the Safe Guidance Act. This legislation takes a simple common sense step to prevent future regulatory overreach.
▶ 1:29:27It requires financial regulators to include a guidance clarity statement on their documents making clear on page one that guidance is not binding, does not have the force of law, and that non-compliance alone does not create a legal violation.
▶ 1:29:43Operation Chokepoint 2.0 know exposed how Biden regulators quietly used informal tools like guidance to pressure banks into cutting off lawful industries from crypto firms uh to energy companies to firearm dealers. This committee's oversight and investigation subcommittee brought those tactics to light.
▶ 1:30:03For example, under the previous administration, the FDIC and the Federal Reserve issued guidance documents warning institutions about the reputational risks of serving crypto firms, creating a chilling effect throughout the financial system. Thankfully, during the Trump administration, much of that guidance has been withdrawn. But guidance shouldn't be used as a weapon.
▶ 1:30:24It should be an aid, a tool to help businesses interpret complex regulatory rules, not a means to intimidate and drive lawful businesses out of the financial system. So, Congress has already made it clear it supports fair, transparent regulation for emerging industries. We recently passed the Bipartisan Genius Act and Clarity Act, affirming that crypto deserves clear rules of the road.
▶ 1:30:48Instead of supporting Congress's intent, Biden regulators tried to substitute their own judgment and force policy through back channels. Let's support the spirit of genius and clarity and ensure Congress, not unelected regulators, sets policy and laws for our financial system. Using guidance as a veiled threat is a regulatory overreach and it must be corrected. So, I urge my colleagues to support and I yield back.
▶ 1:31:20Gentleman yields back. Is there further debate on Mr. Muser's bill? Mr. Foster. Yeah. Well, I moved to strike the last Gentleman's recognized for five minutes. I appreciate the chance to present the ranking members views on on this bill. Unfortunately, this bill is another partisan attack against the Consumer Financial Protection Bureau and an attempt to undermine their efforts to protect consumers.
▶ 1:31:42It's also an attempt to distract our other regulators like the Federal Reserve and SEC from focusing on their mission to promote a stable economy and to protect investors. This bill would require Treasury, HUD, and all federal financial regulators to add disclosures to an enormous number of written comments, statements, and post the agency or agency officials make on a variety of platforms to stipulate that they don't have legal effect and entities cannot be prosecuted based on that statement. Of course they don't.
▶ 1:32:11But nevertheless, this would chill how these agencies communicate with the public in a way that could hinder guidance that could be helpful for industry participants to understand their legal obligations. In fact, it's unclear that Republicans want better guidance for the industry at all. Trump CFPB recently rescended nearly 70 guidance documents that the agency published to help entities understand what their legal obligations were to protect consumers. They've also dropped dozens of enforcement cases.
▶ 1:32:39and Republicans recently voted to slash the CFPB's budget in half. So, forgive me for uh concluding that this is yet another attempt to chip away bit by bit at having a strong CFPB and other regulators who are fighting for the public's interest. Moreover, Republicans turn a blind eye to the reckless guidance that President Trump issues every day, if not every hour, on his personal social media platform. Meanwhile, they attack our regulators and try to make their jobs much harder to do.
▶ 1:33:07So I urge members to reject this misguided bill and yield back. Gentleman yields back. Gentleman from Georgia recognized. Thank you, Mr. Chairman. I move strike the last word. I'm proud to support HR 4460, the Safe Guidance Act offered by Mr. Muer. Here's the problem. For years now, regulators have increasingly relied upon informal guidance such as press releases, letters, or even blog posts to steer market behavior, or even upend decades of precedent.
▶ 1:33:39In many cases, that guidance has been treated by examiners and supervised entities as if it were binding law, even though it has not gone through the notice and comment process required by the Administrative Procedures Act. Not only does the APA support accountability, it also improves the quality of regulations by allowing public input prior to finalization.
▶ 1:34:01When regulators treat guidance as enforceable law, they bypass notice and comment, avoid judicial review, and deprive regulated institutions of due process. This is not how regulation should work. This issue is especially important when dealing with the CFPB, an agency that has consistently used guidance to reshape markets and reinterpret decades of precedent in everything from fair lending to so-called junk fees.
▶ 1:34:27This approach to regulation creates more confusion, compliance risk, and lack of certainty for financial institutions trying to serve their customers. Importantly, HR 4460 does not prevent the federal bank agencies from issuing guidance. This bill simply ensures agency the agency goes through a robust, transparent and accountable process so that supervised entities know what guidance and what is enforcable law.
▶ 1:34:55That clarity is essential for the stable, predictable regulatory environment businesses need to make investments in their growth and in the growth of the economy. And I yield back. Gentleman yields back. Who seeks Let me recognize myself for five minutes. Uh, I support the stop agency fiat enforcement of guidance act offered by Mr. Muer, chair of our oversight investigation subcommittee.
▶ 1:35:21The bill brings about long overdue transparency and accountability to how federal financial regulators issue and enforce supervisory guidance. For too long, the federal financial regulators have blurred the line between formal rulemaking and informal guidance. And this creates tremendous confusion in our supervised entities, our our commercial banks, our credit unions.
▶ 1:35:45In recent years, financial institutions and firms have been expected to treat blog posts, frequently asked questions, and press as binding law, binding compliance obligations, even when they don't go through notice and comment in a public rulemaking process required by the Administrative Procedures Act. I I don't know what's so earthshattering about this. It is confusing. It is costly.
▶ 1:36:14And yes, as the as my friend from Illinois noted, one one administration will withdraw a big block of guidance and another administration will admit it. And if we simply use the process that's been set up for eight decades of going through a rulemaking process, we would have an open, transparent uh way to go about this.
▶ 1:36:35And as the gentleman from Georgia said, this has been especially true when it comes to the 15-year-old Consumer Financial Protection Bureau, which has repeatedly used guidance as a backdoor way to set up new standards, impose new liabilities, and pressure market behavior without any direction from Congress or following the require requirements of the APA. I don't think we're breaking new ground here. I think what Chairman Chairman Muser is doing is common sense and way overdue.
▶ 1:37:04As a former community banker CEO both in public companies and private companies as well as a former CEO of a brokerage in the brokerage business, this is vitally important. Vague shifting guidance is not a rule and it's certainly not a law. Financial institutions and firms should be able to refer to the Federal Registerers to clearly understand the regulations that apply to them. Instead, they waste resources on a teams of attorneys who must sift through press releases and tweets to confirm their adherence to shifting compliance obligations.
▶ 1:37:35This bill fixes that by reaffirming that guidance is just that, guidance on an existing regulation, not something new or binding. This bill ensures that when regulators want to create binding obligations, they have to go through the proper rulemaking process. The APA is not a suggestion. It's a legal requirement that guarantees rules and regulations undergo a thorough process allowing stakeholders to express their concerns and proposed improvements through public comment.
▶ 1:38:03This will help market participants, especially community banks and credit unions understand what's expected of them without fear of today's open quote suggestion close quote becoming tomorrow's enforcement action. All Democrats and Republicans should assess and rally around the rule of law. the end of the Chevron deference and the fundamental clarity that is offered by the use of the APA as it's applied across the board no matter what administration is in charge.
▶ 1:38:34I urge all my colleagues to support Mr. Muser's bill and I yield back. Someone else seek recognition on Mr. Muser's bill. Hearing none, we'll move to amendments. Are there amendments to Mr. Muser's There are no amendments. Uh then no further discussion. The question now occurs on ordering the bill to be reported to the house with a favorable recommendation. Those in favor shall signify by saying I. Those opposed signify by saying nay. And pin chair the eyes have it. Mr.
▶ 1:39:02Chairman, gentleman from request a recorded vote. Gentleman from Pennsylvania requests a recorded vote. All those in favor of recorded vote raise your hands. A sufficient number having raised their hand. A recorded vote is ordered. Pursuant to subsection C5 of rule three of the committee rules, the vote on this question is postponed. We'll now move to the next bill.
▶ 1:40:10Pursuant to notice, I call up HR4544, the American Access to Banking Act, which was introduced by ranking member Waters. The clerk will report the bill, which has been distributed in advance. HR 4544 to direct certain federal banking and credit union agencies to promote the formation of denovo regulated institutions through the review of application processes, the review of capital raising by denovo regulated institutions and the establishment of various outreach programs and for other purposes.
▶ 1:40:39Without objection, the bill is considered read and open to amendment at any point. Ranking member Waters has an amendment in the nature of a substitute, copies of which have been distributed in advance. The clerk will report the An amendment in the nature of a substitute to HR4544 offered by Miss Waters of California designated as Waters076. Without objection, the amendment is considered read and will serve as the base text for purposes of amendment. The gentleoman from California, Miss Waters, is recognized for five minutes.
▶ 1:41:09Thank you very much. The number of new banks and credit unions called denovo institutions that were formed over the past 15 years has been very low. There are only six new bank charters issued annually the past 15 years and only 29 new credit unions formed between 2014 and 2023.
▶ 1:41:36During that time we saw about onethird of all minority depository institution or MDR disappear including half of our blackowned banks. Now research from the Federal Reserve and others found a strong correlation between the interest rate environment and the new bank formation.
▶ 1:42:00In fact, we did have historically low interest rates at 0% for many years as we slowly recovered from the crisis. But there is more than we can do to help. Earlier this year, Ronda Young testified before our committee about the challenges she is facing in trying to establish an MDI in Iowa. Ms. A young story is remarkable.
▶ 1:42:30When she was a small business owner with a popcorn business, she tried to get a loan and she was discriminated against by bank after bank. What did she do? She joined with other entrepreneurs and sued the Consumer Financial Protection Bureau for dragging its feet and not implementing section 1071 to ensure we have a more fair and transparent small business loan market.
▶ 1:42:57Her lawsuit helped push the CFPB to finalize that overdue rule. But Miss Young did not stop there. She decided to start her own bank so that she could provide the kind of small business loan to others that she was repeatedly denied for. Miss Young's story is an American story. When you get knocked down, you get back up and keep pushing for a better way.
▶ 1:43:26Not only that, but you work to help others in your community so they can have chances that you never had. In her testimony, Miss Young highlighted a few changes about the denovo process like a lengthening application checklist. My bill would require these outdated procedures to be streamlined.
▶ 1:43:50My bill would also minimize duclative data request and require regulators to review capital raising challenges they chase in consultation with the SEC. My bill also requires the designation of a caseworker as a single point of contact to assist denovo applicants throughout the process.
▶ 1:44:16HR 4544 further requires the development of outreach and education programs and federal regulator engagement with stakeholders as well as coordination with state regulators to support them in chartering doovo firms.
▶ 1:44:36My bill has broad support including from the American Bankers Association, America's Credit Union unions, Consumer Federation of America, Defense Credit Union Council, National Bankers Association, and National Community Reinvestment Coalition. For any American like Miss Young who wants to start a bank or a credit union, they should have that chance.
▶ 1:45:04and the American Access to Banking Act will help give them that chance. I urge members to support my bill and I yield back the balance of my the gentleoman yields back. Is there further debate on the amendment and nature of a substitute? Seeing none, I recognize myself for five I support HR 4544, the American Access to Banking Act, offered by the ranking member, Miss Waters.
▶ 1:45:32Every member of this committee understands the need for more community banks and the critical services they provide to our constituents. That is why I was happy to see the financial services committee vote on a bipartisan basis in April to pass Representative Bar's bill, the promoting new bank formation act. I'm also pleased that the ranking member has offered this bill to help denovo financial institution applicants have the necessary resources to grow sustainability and safely.
▶ 1:46:00I have seen firsthand how excessive capital and regulatory requirements have all but choked off new bank formation in rural communities. The ranking member and representative Bar have each offered approaches to address this problem over the past several years.
▶ 1:46:15So I'm pleased that both of these efforts have broad support from the committee this HR 4544 directs the federal bank regulatory agencies to take a holistic view of the denovo process and to provide meaningful changes that will make application simpler and more seamless.
▶ 1:46:33This bill also ensures regulators are working handin glove with applicants to provide technical assistance and guidance to avoid common mistakes and increase communication between the agency and applicants. Entrepreneurs already face enough hurdles when it comes to starting or investing in a new bank, and Congress has the responsibility to act where it can. HR 4544 alongside Representative Bar's bill would help denovo bank applicants have a safe and durable on-ramp to success.
▶ 1:47:04I want to thank the ranking member for her tireless support of community banks and for offering this thoughtful piece of legislation. I encourage all of my colleagues to vote yes, and I yield back. Is there further debate on the ANS? Hearing none, we'll move to amendments. Does anyone wish to offer an amendment to the ANS?
▶ 1:47:38There being no further discussion or amendments to the bill, the question now occurs on the adoption of the amendment in the nature of a substitute. All those in favor shall signify by saying I. I. All those opposed signify by saying nay. In the opinion of the chairs, the eyes have it and the amendment is The question now occurs on ordering the bill as amended to be reported to the House with a favorable recommendation.
▶ 1:48:05Those in favor shall signify by saying Those opposed shall signify by saying nay. In the opinion of the chair, the eyes have it. A recorded vote has been requested. All those in favor of a recorded vote, raise your hands. A sufficient number having raised their hands, a recorded vote is ordered. Pursuant to subsection C5 of rule three of the committee rules, the vote on this question is postponed.
▶ 1:48:34We will now, pursuant to the previous order, the chair declares the committee in recess subject to the call of the chair. We will reconvene at 12:30 p.m. for votes. The committee stands in recess. All right. Thank you, sir.
▶ 2:18:14Thank you.
▶ 2:21:29Heat. Heat.
▶ 2:22:39Heat. Heat.
▶ 2:23:49Heat. Heat.
▶ 2:30:22Pursuant to the chair's previous order, we will now take for postponed votes on the pending amendments to HR 3074. The question is on the fourth amendment offered by ranking member Waters. This is HR 30742. The clerk will open the vote.
▶ 2:31:10Is there any member who hasn't voted? Any member who would like to change their vote? Stand by. Miss Mlan. No. It happens every day. It's amazing. Is there any member who hasn't voted or would like to change their vote? The clerk will close the vote and report. Mr. Chairman, on this vote, the eyes are 21 and the naysay are 26.
▶ 2:31:41A majority having vote against the amendment, the amendment is not agreed to. Question now occurs on the adoption of the amendment and the nature of a substitute. All those in favor shall signify by saying I. I. All those opposed signify by saying nay. In the opinion of the chair, the eyes have it. The eyes have it. The amendment in the nature of a substitute is adopted. The question now occurs on ordering the bill as amended favorably reported to the house. Those in favor shall signify by saying I. I. All those opposed signify by saying nay.
▶ 2:32:09In the opinion of the chair of the eyes have it. What for what purposes the gentleoman from Michigan seek I have an amendment at the desk. woman ask for a requested vote. Sorry, ask for a requested vote. The gentleoman has requested the yays and nays. All those in favor of recorded vote, raise your hand. A sufficient number having raised their hand of recorded vote is ordered.
▶ 2:32:40We will now take the vote on ordering the bill as amended favorably reported. The clerk will open the vote. Is there any member who has not voted or
▶ 2:33:10would like to change their vote? The clerk will close the vote and report. Mr. Mr. Chairman, on this vote, the eyes are 35 and the naysay are 13. A majority having voted in favor of HR 3074 is amended. The bill is ordered favorably reported to the House. Without objection, a motion to reconsider is laid on the table. We'll now take the vote pending on ordering HR 4478 to be favorably reported.
▶ 2:33:40The clerk will open the vote. Is there any member who has not voted or would like to change their vote?
▶ 2:34:10Clerk will close the vote and report. Mr. Chairman, on this vote, the eyes's are 49 and the naysay are zero. A majority having voted in favor of HR 4478, the bills ordered favorably reported to the House. Without objection, a motion to reconsider is laid on the table. We will now take the vote pending on ordering HR 3446 to be favorably reported. The clerk will open the vote.
▶ 2:34:50Is there any member who has not voted or would like to change their vote? The clerk will close the vote and Mr. Chairman, on this vote, the eyes are 26 and the nays are 23. A majority having voted in favor of HR 3446. The bill is ordered favorably reported to the House. Without objection, a motion to reconsider is laid on the table. We'll now take the vote pending on ordering HR 3390 as amended, favorably reported. Members will vote electronically. The clerk will open the vote.
▶ 2:35:36Is there any member who has not voted or would like to change their vote? The clerk will close the vote and Mr. Chairman, on this vote, the eyes are 48 and the nays are one. A majority having voted in favor of HR 3390 is amended. The bill is ordered favorably reported to the House. Without objection, a motion to reconsider is laid on the table.
▶ 2:36:01We'll now consider the vote pending on ordering HR 4460 to be favorably reported. The clerk will open the vote. Is there any member who has not voted or would
▶ 2:36:31like to change their vote? The clerk will close the vote and Mr. Chairman, on this vote, the eyes are 26 and the nays are 23. A majority having voted in favor of HR 4460, the bill is ordered favorably reported to the House. Without objection, a motion to reconsider is laid on the table. We'll now take this uh take the vote pending to order HR4544 as amended. Favorably reported. Members will vote electronically.
▶ 2:37:10Let me uh as we're I see people are getting up and leaving. I want to make two comments to all of you. First of all, on behalf of the committee and the staff, we want to wish all of you a very, very safe uh district work period. As you're home with your constituents and your families, we wish you a very good August. And also, I want to congratulate Mr. Garbino for being elected to the chair of the Homeland Security Committee.
▶ 2:37:38Is there any member who Yeah, I'll let you take up that up with him personally. Is there any member who has not voted or would like to change their vote? The clerk will close and report. Mr. Chairman, on this vote, the eyes's are 49 and the nazs are zero. A majority having voted in favor of HR 4544 is amended. The bill is ordered favorably reported to the House. Without objection, a motion to reconsider is laid on the table.
▶ 2:38:08Please exit quietly. Thank you. Without objection, staff are authoriz No, that was exit quietly. Our clerks cannot hear. Without objection, staff are authorized to make necessary and conforming changes to the bill considered. And pursuant to House Rule 11, clause 2L, I give notice that all members have the requisite number of days to file supplemental, minority, additional, or descending views.
▶ 2:38:38There being no further business pending, the committee stands adjourned.