FDIC Enforcement Enhancement Act

Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, I would like to, first of all, thank the gentleman from New Jersey (Mr. Sires) for his work on this bill, and I urge my colleagues to support H.R. 2547, the FDIC Enforcement Enhancement Act.

In May I was pleased to join my colleague, Congressman Sires, in introducing this bill which gives the Federal Deposit Insurance Corporation new tools to protect our constituents from financial scam artists.

After the great stock market crash in 1929 and the numerous bank closures during the Great Depression, Congress passed, in 1933, the Glass-Steagall Act, which created the FDIC. Congress created this independent Federal agency and charged it with a most important mission: To instill and maintain ``the stability and the public's confidence in the Nation's financial system.''

For over 70 years, the FDIC has worked to meet its mission. The FDIC's name, seal, abbreviation, and other indicators are well known, and they are symbols that the public uses to identify a financial institution or a product as being legitimate, federally insured, sound, and supervised. These are easily identifiable FDIC symbols and they can be found in a range of places, from the bank teller's window to a financial institution's Web site.

Unfortunately, over the years, criminals have taken advantage of the public's confidence in the FDIC name and used it for malicious purposes. Criminals have fraudulently used the FDIC's name to deceive consumers, most often the elderly, into saving or investing their money in a criminal's illegitimate product offered by a criminal's illegitimate financial institution.

For example, some of you may have received or known individuals who have received e-mails from these scam artists. The e-mails, that are actually from criminals, claim to be from the FDIC and request that the e-mail recipient provide highly sensitive, on-line banking information. However, the e-mails are fraudulent and not from the FDIC.

Current law prohibits this criminal activity, but H.R. 2547 strengthens the FDIC's enforcement powers so that it can take immediate action against criminals that are fraudulently hiding behind the good name of the FDIC and to immediately stop such criminal activity so that the consumer's money doesn't disappear.

The act allows the FDIC to enter cease and desist orders against this conduct and impose fines up to $1 million per day on any person who falsely represents the nature of the product offered or the FDIC's insurance coverage available. In addition, the proposed legislation would clarify the FDIC's authority to seek injunctive relief against such person under the rules of any Federal, State or foreign court of competent jurisdiction.

The language of this act is similar or is identical to the act of 2005, the Financial Service Regulatory Relief, section 615, which the Committee on Financial Services approved by a vote of 67-0 in November of 2005. The House has approved this bill by a voice vote.

So I would urge my colleagues to again support the language and vote for today's bill. This bill gives the FDIC the ability to help prevent our constituents from becoming victims of financial scam artists and, like Glass-Steagall, aims to give our constituents confidence in the Nation's financial system.

Madam Speaker, I have no further requests for time, and I yield back the balance of my time.

Madam Speaker, I move to suspend the rules and pass the bill (H.R. 2547) to amend the Federal Deposit Insurance Act to prevent misrepresentation about deposit insurance coverage, and for other purposes, as amended.

Madam 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.

Madam Speaker, I yield myself as much time as I may consume.

First, I would like to thank Chairman Frank for moving this legislation through the committee and bringing it to the floor today.

I would also like to thank Congresswoman Biggert for sponsoring this legislation with me. I was happy to have such a strong proponent of consumer protection join me in introducing this bill.

We hear all types of stories about trademarks registered to a specific company being used inappropriately. In some cases, multimillion-dollar lawsuits are filed for copyright and patent infringement.

We have the same thing going on with the FDIC. Their trusted logo is being used to deceive consumers, but they have no recourse.

H.R. 2547 will allow the FDIC to levy cease and desist orders against any persons or entity that uses the FDIC's name, logo, abbreviation or any other FDIC-recognized indicator fraudulently and without the FDIC's permission. This legislation will also allow the FDIC to impose fines of up to $1 million per day against any person or entity engaging in falsely representing the FDIC's backing of a product.

This is important consumer protection legislation that is necessary to preserve the trusted name of one of the most recognized Federal agencies. In fact, the FDIC believes this legislation is necessary to help them to continue to fight financial scams.

I ask my colleagues to support H.R. 2547.

Madam Speaker, I reserve the balance of my time.

Madam Speaker, I have no further requests for time, and I yield back the balance of my time.

Madam Speaker, on that I demand the yeas and nays.

Mr. Speaker, I ask unanimous consent that the ordering of the yeas and nays be vacated with respect to the motion to suspend the rules and pass H.R. 2547, as amended, to the end that the Chair put the question de novo.