Michael Oxley

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, I recognize the gentleman from Pennsylvania (Mr. Fitzpatrick), the author of the legislation, for 4 minutes.

Mr. OXLEY. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, 4 years ago Congress passed the Sarbanes-Oxley Act to rectify the troubling accounting and reporting issue exposed by the largest corporate scandals in U.S. history. This landmark legislation strengthened the role of auditors, boards of directors, and audit committees, and in doing so stabilized America's capital markets. By enhancing the transparency and accountability of our public companies, Sarbanes-Oxley sought to fortify the pillars upon which our securities laws stand. Within the many sweeping reforms implemented by the act was a provision, little noticed at the time, which required the SEC to examine credit rating agencies. Four years, one SEC report, over seven House and Senate hearings, and countless committee hours later, I stand before my colleagues in support of final action to bring much needed competition to the credit rating agencies. S. 3850, the Credit Rating Agency Reform Act, closely follows and makes minor additions to H.R. 2990, the Credit Rating Agency Duopoly Relief Act, which was introduced by Congressman Michael Fitzpatrick in June 2005, and passed the House on July 12 of this year. Like Mr. Fitzpatrick's bill, S. 3850 levels the playing field in the ratings industry by replacing an SEC designation process that benefits a privileged few with a voluntary registration system available to all. Credit ratings are vital to our capital markets, providing investors with an evaluation of the creditworthiness of the debt issued by America's corporations and municipalities. High-profile mistakes made by prominent rating agencies, including missteps in the rating of Enron and WorldCom, highlight an industry in drastic need of increased competition and improved transparency. As it now stands, the SEC designates rating agencies as nationally recognized statistical ratings organizations, or NRSROs, through an opaque process that provides applicants little guidance on the substance and procedure by which they will be evaluated. Currently, only five rating agencies are designated as NRSROs by the SEC. Understandably, many more aspire to attain that designation, as NRSRO status confers a significant competitive advantage. However, new applicants languish for years without an up-or-down vote in admission into this elite club. In fact, the Department of Justice commented upon the SEC designation process in 1998, calling it a ``nearly insurmountable barrier to entry.'' The SEC's opaque designation process has created an artificial government-sponsored barrier to entry that has stifled competition and helped the top two rating agencies, Moody's and Standard & Poor's, garner an 80 percent market share, clearly a duopoly. Without true competition in this industry, fees have skyrocketed and ratings quality has deteriorated. Ultimately, individual investors will benefit from a voluntary registration system that produces cheaper, more accurate ratings. In the many years that I, Capital Markets Subcommittee Chairman Richard Baker, and the rest of the Financial Services Committee have studied and deliberated over credit ratings, we have heard from countless parties, including the SEC, industry, academia, and the rating agencies themselves about the conflicts of interest that pervade the industry. Ratings firms have expanded into new areas which, many commentators have suggested, further compromise their objectivity. In addition, it has been alleged that leading rating agencies engage in certain abusive practices, to the detriment of smaller market players. S. 3850 closes the door on this behavior by requiring disclosure of conflict of interest and prohibiting abusive practices. I want to commend the leading credit rating agencies, Moody's and Standard & Poor's, for lending support for this measure despite their initial opposition. Taking the handoff from Congressman Fitzpatrick and H.R. 2990, S. 3850 provides a strong framework for advancing the credit rating industry for the 21st century. As for Senator Sarbanes and me, the bill provides a logical follow-up to the Sarbanes-Oxley Act and our efforts to restore integrity to the capital markets. I reserve the balance of my time.

Mr. OXLEY. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Mr. OXLEY. Mr. Speaker, I move to suspend the rules and pass the Senate bill (S. 3850) to improve ratings quality for the protection of investors and in the public interest by fostering accountability, transparency, and competition in the credit rating agency industry.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Mr. OXLEY. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, today is a historic moment in the evolution of our insurance marketplace. The Nonadmitted and Reinsurance Reform Act is an important reform for consumers, helping American homeowners and businesses to obtain more available and more affordable insurance coverage. It will especially help consumers in high-cost areas, such as coastal regions and urban cities vulnerable to terrorist risk. But equally important, this bill is the next critical step in a long journey towards comprehensive reform of how insurance is regulated at the State and Federal levels. In 1995, I chaired some of the first hearings in the new Republican Congress on insurance reform and helped shape the largest financial services modernization bill of the last decade, the Gramm-Leach-Bliley Act. We finally got GLBA enacted in the waning days of 1999, but it wasn't easy. The Congress had been working on regulatory reform for some 66 years, enough time for three generations of lobbyists to put their children through college. The debate on GLBA underscored the importance of the financial services industry to our country and the critical need for additional reform. To facilitate further legislative reforms and continue building on our hard-fought success, the House leadership created the Committee on Financial Services, which I have had the privilege of chairing for nearly its 6 years in existence. Since then, we have had dozens of hearings with hundreds of witnesses on insurance regulation. We have heard that, starting back in 1871, the State insurance regulators committed to modernizing their regulations to provide for more uniformity and coordination and that they continue to hope to some day reach that goal. We have sorted through numerous State and Federal proposals to address the problems of a sluggish insurance marketplace beset by inefficient regulation and the threats of terrorism and other catastrophic disasters. And we have completed numerous investigations of how insurance providers and regulators have lived up to their promises to consumers and the marketplace. After Gramm-Leach-Bliley, the heads of the State insurance regulators approached our committee to work together in forging several formal policy papers making a commitment towards uniformity and reform, culminating in an agreement to pursue Federal legislation to help the States achieve their own modernization goals. These policy discussions culminated in the State Modernization and Regulatory Transparency Act, or SMART, as a template for further reform. Two of the SMART titles that appeared to have the greatest bipartisan consensus now form the basis of the legislation before us being moved forward by the leadership of Representative Ginny Brown- Waite, Representative Moore, Capital Market Subcommittee Chairman Baker, Representative Wasserman Schultz, and several others. Insurance reform is never easy and never quick. Believe me, it is never quick. Each success that we have had has been the result of strong bipartisan cooperation in working together to overcome the turf and vested interests that will always cling to the status quo. I am proud though to have had the opportunity to work with my colleagues to finish one stage of modernization and help launch the next, and I wish my colleagues well as they continue down this long journey towards modernization of insurance regulation. I again compliment the bill cosponsors, subcommittee Chairman Baker and Ranking Members Frank and Kanjorski for their help and leadership. I look forward to passing this measure to improve the availability and affordability of insurance and taking another giant leap forward in this historical step towards insurance reform. Mr. Speaker, I reserve the balance of my time.

Mr. OXLEY. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5637) to streamline the regulation of nonadmitted insurance and reinsurance, and for other purposes, as amended.

Mr. OXLEY. Mr. Speaker, I am pleased to yield such time as she may consume to the gentlewoman from Florida (Ms. Ginny Brown-Waite), one of the leaders and the lead sponsor of this legislation.

Mr. OXLEY. Mr. Speaker, I am pleased to yield 2 minutes to the gentleman from Bucks County, Pennsylvania (Mr. Fitzpatrick).

Mr. OXLEY. Mr. Speaker, I am pleased now to recognize the chairman of the Capital Markets Subcommittee, Mr. Baker, for 2 minutes.

Mr. OXLEY. Mr. Speaker, this was, again, in the great tradition of our committee, a good bipartisan effort by a lot of members that have been mentioned heretofore, and it is really what makes our committee very special. I am very proud of the work product that was put out. It is a somewhat controversial subject, the overall issue; but to be able to take a chunk of this, a very important chunk, and move it separately I think was a wise decision that our staff participated in as well as the members. Mr. Speaker, I yield back the balance of my time.

Mr. OXLEY. Mr. Speaker, on that I demand the yeas and nays.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, on that I demand the yeas and nays.

Mr. OXLEY. Mr. Speaker, I yield back the balance of my time.

Mr. OXLEY. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 6115) to extend the authority of the Secretary of Housing and Urban Development to restructure mortgages and rental assistance for certain assisted multifamily housing.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, I move to suspend the rules and pass the Senate bill (S. 2856) to provide regulatory relief and improve productivity for insured depository institutions, and for other purposes, as amended.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, I rise in support of S. 418, the Military Personnel Financial Services Protection Act, which protects the men and women serving in our Nation's military from deceptive financial practices and unsuitable financial products. I want to pay a particular tribute to the sponsor of the House legislation that came through the Financial Services Committee. This bill that we have before us is almost identical to the bill that passed out of our committee. Mr. Davis, a veteran and West Point graduate, led the way in protecting our military men and women on this issue early last year. Early last year he secured a bipartisan voice vote in committee and a resounding 405-2 bipartisan victory in the House. Congratulations also go to former Congressman Max Burns of Georgia who led the charge protecting our military personnel in the 108th Congress. We are pleased with giving the Senate credit for their bill number if we get to enact the protections for our military as envisioned by Mr. Davis and Max Burns. Mr. Speaker, since the tragic day of September 11, 2001, our country has been at war with terrorism around the world. In the prosecution of that war, our armed services have performed heroically. Many have made the ultimate sacrifice for the cause of freedom, and all have worried about the safety and security of their loved ones as they leave to serve our country. Unfortunately, there are a few bad actors in the financial services industry who have been taking financial advantage of our soldiers. These unscrupulous companies and their sales teams infiltrate our military installations and use aggressive, misleading, and often illegal sales tactics to sell high-cost products of dubious value that are unsuitable for any investor, and are particularly unsuitable for most military personnel. The Pentagon has issued directives intended to prevent these abuses. But with the ongoing confusion over regulatory jurisdiction, the lack of communication among government agencies, and the lack of sufficient investor protection standards for certain financial products, it is clear that our military personnel can never be adequately protected unless Congress enacts this bill. The Davis bill bans bad financial products and coercive sales practices on military bases, including obscure and high-cost ``contractual plans.'' It clarifies the regulatory jurisdiction on military installations within the U.S. and abroad, adds appropriate consumer protections and disclosures for financial products sold on military bases, and ensures proper reporting systems between our military and the financial regulators to catch bad actors before they can do more harm. It also makes the process of selecting a financial adviser more transparent for all investors by providing online access to background information on broker-dealers, including disciplinary actions. This last provision was taken from legislation introduced by the gentleman from Arizona (Mr. Shadegg) that passed the House in April 2005. The overwhelmingly bipartisan support for this bill within Congress and the military is the result of strong leadership by the gentleman from Kentucky (Mr. Davis) as well as former Member Max Burns, as well as the chairman of the Subcommittee on Capital Markets, Mr. Baker, who led our committee's investigation into abusive practices and bad products, Congressman Jim Ryun and Congressman Steve Israel. Mr. Ryun and Mr. Israel worked closely together on the reporting requirements of this bill, and the gentlewoman from Florida (Ms. Ginny Brown-Waite) for ensuring appropriate SEC review of broker-dealer sales practices on military installations. Their hard work and passion for protecting our military personnel is well reflected on this legislation. I urge my colleagues in the full House to vote ``yes'' on S. 418.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, I rise today to urge support of S. 2784, the ``Fourteenth Dalai Lama Congressional Gold Medal Act,'' and urge its immediate passage. This legislation was introduced by the Senator from California, Mrs. Feinstein, and is identical to H.R. 4562, introduced by the gentle lady from Florida, Ms. Ros-Lehtinen. The House version currently has 312 co- sponsors, is compliant with all House and Financial Services Committee rules, and has been scored as budget-neutral by CBO. Under the legislation, the Speaker and the President Pro Tempore of the Senate are authorized to present, on behalf of Congress, a gold medal to Tenzin Gyatso, the Fourteenth Dalai Lama, or spiritual, cultural and, in effect, governmental leader of Tibet, who has lived in exile from his native country since 1959, when he fled the power of the People's Republic of China. Mr. Speaker, the Dalai Lama has spent the 47 years of his exile peacefully seeking to establish a form of autonomous self rule for Tibet. In doing so, he has earned the great respect of the world community for the quiet, disciplined and non-violent way he has chosen to lead his struggle--in fact, the respect is so great that in 1989, he was awarded the Nobel Peace Prize. The Nobel Committee said the award came ``for his consistent resistance to the use of violence in his people's struggle to regain their liberty . . . He has instead advocated peaceful solutions based upon tolerance and mutual respect in order to preserve the historical and cultural heritage of his people.'' Mr. Speaker, Tibet is a long way from the United States, and a far different land about which most Americans know little. But the Dalai Lama's basic beliefs--peace, human rights, preservation of culture and of the environment, and the promotion of harmony and respect among religions--are so familiar to all of us that we may feel we know this quiet man in some special way, and he us. In fact, at a ceremony in the Capitol Rotunda in 1991, the Dalai Lama said of his childhood view of the United States: ``What truly inspired me were your ideas of freedom and democracy. I felt that your principles were identical to my own, the Buddhist belief in fundamental human rights, freedom, equality, tolerance and compassion for all.'' Mr. Speaker, the Congressional Gold Medal is the highest civilian honor the Congress can bestow. Previous recipients have included Pope John Paul II, Mother Teresa and Elie Wiesel. His Holiness, the Fourteenth Dalai Lama, stands with them in his beliefs, and in the way his life embodies them. It is appropriate and, perhaps, overdue that we confer upon him this medal, this mark of respect and admiration. I urge immediate passage of this bill.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, today I rise in strong support of H.R. 6033, the Thomas J. Manton Post Office Building Designation Act. The legislation would designate a United States Postal Service Office in New York as the Thomas J. Manton Post Office Building. Thomas Manton served this country with honor and integrity. He was a true public servant. His distinguished public servant career includes: serving in the military, police officer with the New York City Police Department, serving in the New York City Council and being a Member of Congress representing the people of New York's 7th congressional district. Thomas Manton always fought for the people he represented and New Yorkers are better off because of his work. I am honored to have worked with Thomas Manton while he was in Congress. We were both members of the Energy and Commerce Committee, and he was ranking member on the Subcommittee that I chaired. We sat through many long hearings together. Throughout his life he approached his work with integrity. The dedication in Thomas Manton's honor will preserve his legacy and remind his constituents of his long and distinguished public career. I urge my colleagues to vote ``yes'' on this legislation.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, it is my honor today to pay tribute to Jeanne Oates Angulo, President of the Capital Chapter of the National Multiple Sclerosis Society. After twelve years of outstanding service to this organization, Jeanne will be retiring at the end of the year. Jeanne was tapped to serve as president in 1994 after a successful career in television and radio, including a stint as General Manager of WPGC AM/FM in Washington, D.C. During this time, she was honored with the Advertising Club of Washington's Silver Medal Award, and was recognized as a Woman of the Year by Washington Woman magazine. Her tenure at the MS Society has been equally distinguished. Jeanne has presided over an explosion in contributions to the Capital Chapter from $2 million to more than $5 million annually. She has overseen such fundraising staples as the MS Walk, the MS Bike Tour, and the Women Against MS Annual Luncheon. It has been my pleasure to work with Jeanne on the annual MS Ambassadors Ball, a salute to members of the diplomatic corps for their many contributions to humanitarian efforts. My wife, Pat, has co- chaired this event on two occasions, and joins me in praising Jeanne for her determination in soliciting in-kind donations to the Ball to keep overhead expenses low. Jeanne's enthusiasm and drive in this area has ensured that more funds are spent on the Society's mission: ending the devastating effects of MS, supporting MS research, and providing for MS advocacy efforts. Jeanne has also dedicated her time to service on the boards of many community organizations, including the March of Dimes, the Metropolitan Police Boys and Girls Club, the USO, the Wolf Trap Farm Park for the Performing Arts, and the Women of Washington. Her tireless devotion to volunteerism is an outstanding model for others, and has been a tremendous asset to her as she works to get more people involved in charitable efforts. Mr. Speaker, I know that the entire Board of Directors of the National MS Society, everyone at the Capital Chapter, and all whose lives she has touched join me in thanking Jeanne for her continued efforts to help find a cure for MS. We wish Jeanne and her husband, Al, the very best as they move on to a new chapter in their lives

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, I rise today in support of H.R. 2808, the Abraham Lincoln Commemorative Coin Act, sponsored by the gentleman from Illinois, Mr. LaHood. The legislation calls for the Secretary of the Treasury to mint and issue not more than 500,000 one-dollar silver coins in 2009, to mark the bicentennial of the birth of one of our greatest Presidents, Abraham Lincoln. The Nation's 16th President, he was born February 12, 1809, in present-day LaRue County, Kentucky. Mr. Speaker, we all know the story of the tall, craggy man who went on to become a lawyer in Springfield, Illinois. Later, by dint of honesty, integrity, intelligence and compassion, became President, and served through some of the most trying times of our Nation. We all know the tragic story of his death after being shot at Ford's Theater on April 15, 1865. And we all know the Gettysburg Address and the Emancipation Proclamation. Few of us know, I think, the history of that famous proclamation. Although it ended up as a proclamation by the President using his war powers, it started life as a normal piece of legislation. In fact, its existence first was reported 144 years ago in the famous Harper's Weekly magazine of July 26, 1862, which said: ``The following message was delivered to Congress on Monday: FELLOW-CITIZENS OF THE SENATE AND HOUSE OF REPRESENTATIVES--Herewith is the draft of the bill to compensate any State which may abolish slavery within its limits, the passage of which, substantially as presented, I respectfully recommend. ABRAHAM LINCOLN.'' Congress and President Lincoln already had started down the road to emancipation, freeing slaves in the District of Columbia on April 16 of that year and in U.S. territories two months later. Lincoln issued a preliminary emancipation proclamation on September 22 of 1862, shortly after the Union victory at Antietam, and the final proclamation January 1, 1863. The Thirteenth Amendment made the proclamation permanent late in 1865. Mr. Speaker, those were astonishing actions, even for a time of war, and serve to remind us how truly remarkable Abraham Lincoln was. These coins called for in this legislation, and the surcharges on the sales of the coins that will be paid to the Abraham Lincoln Bicentennial Commission, will further illuminate Abraham Lincoln's life. Mr. Speaker, this legislation has more than the 290 cosponsors required for consideration, and will proceed at no cost to the taxpayers. Companion legislation already has passed the other body. I recommend its immediate passage. I enclose the following exchange of correspondence: House of Representatives, Committee on Financial Services, Washington, DC, September 5, 2006. Hon. William M. Thomas, Chairman, Committee on Ways and Means, House of Representatives, Washington, DC. Dear Chairman Thomas: I am writing concerning H.R. 2808, the ``Abraham Lincoln Commemorative Coin Act,'' which was introduced in the House and referred to the Committee on Financial Services on June 8, 2006. It is my expectation that this bill will be scheduled for floor consideration in the near future. As you know, section 7 of the bill establishes a surcharge for the sale of commemorative coins that are minted under the bill. I acknowledge your committee's jurisdictional interest in such surcharges as revenue matters. However, I request that your committee forego action on H.R. 2808 in order to allow the bill to come to the floor expeditiously. I appreciate your cooperation in so doing, and agree that your decision to forego further action on this bill will not prejudice the Committee on Ways and Means with respect to its jurisdictional prerogatives on this or similar legislation. I would support your request for conferees on those provisions within your jurisdiction should this bill be the subject of a House-Senate conference. I will include a copy of this letter and your response in the Congressional Record when this bill is considered by the House. Thank you again for your assistance. Yours truly, Michael G. Oxley, Chairman. House of Representatives, Committee on Ways and Means, Washington, DC, September 5, 2006. Hon. Michael G. Oxley, Chairman, Committee on Financial Services, Washington, DC. Dear Chairman Oxley: I am writing concerning H.R. 2808, the ``Abraham Lincoln Commemorative Coin Act,'' which is scheduled to be on the House floor on September 6, 2006. As you know, the Committee on Ways and Means maintains jurisdiction over matters that concern raising revenue. H.R. 2808 contains a provision that establishes a surcharge for the sale of commemorative coins that are minted under the bill, and thus falls within the jurisdiction of the Committee on Ways and Means. However, in order to expedite this bill for floor consideration, the Committee will forgo action. This is being done with the understanding that it does not in any way prejudice the Committee with respect to the appointment of conferees or its jurisdictional prerogatives on this bill or similar legislation. I appreciate and agree to your offer to include this exchange of letters on this matter in the Congressional Record during floor consideration. Best regards, Bill Thomas, Chairman.

Mr. OXLEY

Mr. OXLEY. Mr. Speaker, I yield 2 minutes to the gentleman from Florida (Mr. Foley), a distinguished member of the Ways and Means Committee.

Mr. OXLEY. Mr. Speaker, I am now pleased to yield 2 minutes to the gentleman from Florida (Mr. Stearns) of the aforementioned Energy and Commerce Committee. (Mr. STEARNS asked and was given permission to revise and extend his remarks.)

Mr. OXLEY. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5337) to ensure national security while promoting foreign investment and the creation and maintenance of jobs, to reform the process by which such investments are examined for any effect they may have on national security, to establish the Committee on Foreign Investment in the United States, and for other purposes, as amended.

Mr. OXLEY. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on this legislation and to insert extraneous material thereon.