The U.S. House of Representatives on Sept. 26 approved by voice vote proposed legislation sponsored by U.S. Rep. Frank Lucas (R-OK) that would require increased accountability and transparency at the Federal Reserve Board.
The Federal Reserve Supervision Testimony Clarification Act, H.R. 4753, introduced on Jan. 10 by Rep. Lucas, would mandate that the vice chairman for supervision at the Federal Reserve Board provide a written report on the status of pending and anticipated board rulemakings, and ensure another board representative covered that duty if the chairman slot was vacant, according to the congressional record summary.
“Dodd-Frank established the vice chair for supervision position to oversee those efforts, but the first confirmed appointee to that position took office only last year, a full seven years since Dodd-Frank,” said Rep. Frank Lucas. “During that time, Congress received minimal testimony on regulatory issues from the Fed.”
When relevant testimony on supervisory issues at the Federal Reserve Board did get provided, Rep. Lucas said it typically came from “other officials who don’t oversee regulatory efforts.”
“The key point is Dodd-Frank requires only the vice chair for supervision to give that testimony,” the congressman added. “While we are grateful that other Fed officials decided to speak to Congress on regulatory issues, they didn’t have to under the law.”
The Dodd-Frank Wall Street Reform and Consumer Protection Act is a United States federal law signed in 2010 by former U.S. President Barack Obama that places regulation of the financial industry in the hands of the government.
Despite the simplicity of H.R. 4753, according to an Oct. 1 statement from Rep. Lucas’ office, the measure addresses the oversight authority of Congress, which under Dodd-Frank provided the Federal Reserve with additional regulatory authority. Therefore, Congress must receive testimony from the board’s chairman of supervision, according to Lucas’ statement.
Additionally, more transparency in government agencies results when Congress receives expert witness testimonies on the specific issues in their areas, especially when these regulations significantly impact the nation’s capital and money markets, according to the statement.
The U.S. Senate on Sept. 27 received H.R. 4753 and has referred it to the U.S. Senate Banking, Housing, and Urban Affairs Committee for consideration.