July 27, 1994
TO: BOARD OF GOVERNORS NO. 66-94
FEDERAL LEGISLATION COMMITTEE NO. 16-94
FEDERAL LEGISLATION MEMBERS NO. 13-94
RE: FAIR TRADE LEGISLATION PUT OFF
__________________________________________________________
Despite strong support from the Administration, the Institute,
and virtually all major domestic financial services trade
associations, on July 25 the Conference Committee considering broad
banking legislation could not agree to report the "Fair Trade in
Financial Services Act", and deleted it from the larger bill. (See
memos to Federal Legislation Members No. 3-94, dated January 28,
1994, and No. 4-94, dated February 15, 1994)
The FTFS provisions had generated tremendous conflict among
three Committees of the House of Representatives, as it cut across
jurisdictional lines. The bill, as passed by the Senate, would
have given the Treasury Department the lead role in negotiating
financial services issues in bilateral and multilateral trade
negotiations -- a role currently filled by the U.S. Trade
Representative.
Despite failure to act by the Conference Committee, the need
for an aggressive voice for U.S. firms in trade negotiations
resulted in Acting House Ways and Means Trade Subcommittee Chairman
Robert Matsui (D-CA) agreeing to hold hearings on the issues that
led to FTFS legislation. Also, when the Ways and Means Committee
considered legislation to implement the General Agreement on
Tariffs and Trade (GATT), they discussed foreign barriers to U.S.
financial services firms and the need for U.S. trade negotiators to
deal with this issue.
We will keep you informed of further developments. If you
wish additional information, please call the Legislative Affairs
Department at 202/326-5890.
This memo can also be found in FUNDS, the Institute's Fund
User Network and Delivery System, under Legislative Affairs;
Washington Update.
Julie Domenick
Senior Vice President
Legislative Affairs