Floor Statements

Madam Speaker, I rise today to ask you and my esteemed colleagues in the House of Representatives to pay tribute to Joseph and Joan Przywara, of West Nanticoke, Pennsylvania, as they celebrate 50 years of marriage.

On September 14, 1957, Mr. and Mrs. Przywara were joined in marriage at St. Mary's of the Immaculate Conception Church in Wilkes-Barre.

Mr. Przywara began his working career at first in the anthracite coal mines in the Wyoming Valley and then worked for General Motors in New Jersey, McGregor Sportswear in Nanticoke, Woodlawn Farm Dairy in Wilkes-Barre and Dairylea in Scranton. In 1974, he established the West Side Dairy and the couple's two sons, Joseph and Robert, soon joined him in business. In 1982, he acquired the Dream Whip ice cream business in Nanticoke.

Mr. Przywara has served his community in several capacities over the years, not the least of which was his many contributions of time and energy to promote Democratic Party principles and candidates.

He was also highly instrumental in establishing the Plymouth Township Recreation Association on land he helped acquire from the Glen Alden Coal Company. He coached little league baseball for many years and also served as a PIAA baseball and softball official and as an ASA softball umpire.

Mrs. Przywara worked at Pennsylvania Wholesale Drug Company, Heavenly Shoe Company, the United States Social Security Administration and the United States Department of Labor Mine Safety and Health Administration for many years. She currently manages Dream Whip Ice Cream which employs nine people. She is a past member of the Plymouth Township Recreation Association Auxiliary.

Mr. and Mrs. Przywara had three children, Joseph, who is deceased; Robert and Lisa Bonar. They also have four grandchildren.

Mr. and Mrs. Przywara are shining examples of hard working, family and community minded Americans who enrich the quality of life not only for themselves but for all whose lives they have touched. Mr. Speaker, please join me in congratulating Mr. and Mrs. Przywara on this special occasion.

Madam Speaker, I rise today to ask you and my esteemed colleagues in the House of Representatives to pay tribute to Pasquale ``Pat'' Bangor, of Hazleton, Luzerne County, Pennsylvania, who was named ``Person of the Year'' by the Italian American Association of Luzerne County.

Mr. Bangor is a son of the late Neil and Phyllis Cerullo Bangor. He has two sisters, Camella O'Donnell and the late Rose Realo and one brother, John.

He was married to Dorothy Gutosky Bangor for 30 years until her death in 1983. He has been married to Vanda Molinaro Bangor for the past 21 years.

Mr. Bangor has three daughters: Patricia Conahan, Carol Ann Brown and the late Jacqueline Cardillo. He also has three step-daughters: Rose Esposito, Wanda Rosenbaum and Lydia Hunsinger. He is also blessed with grandchildren, step-grandchildren and great grandchildren.

A graduate of Hazleton High School in 1946; he served in the United States Army during the Korean Conflict. Following his military service, he was a self employed printer in the Hazleton area for more than 40 years.

In retirement, Mr. Bangor has remained active by driving a school bus for special needs children in the Hazleton Area School District and working part-time at a local carpet store.

He has been an active member of Our Lady of Grace Church in Hazleton all his life and has served on the church's financial council.

Mr. Bangor was a member of the Hazleton Elks Club for several years and has been an active and dedicated member of the Italian American Association of Luzerne County where he served many years on its board of directors.

Mr. and Mrs. Bangor spend much of their time with their children and grandchildren. They also enjoy dancing and world travel.

Madam Speaker, please join me in congratulating Pat Bangor on this auspicious occasion. Mr. Bangor is a shining example of a family and community minded citizen whose contributions of time and energy has improved the quality of life for all whose lives he has touched.

Madam Speaker, I rise today to ask you and my esteemed colleagues in the House of Representatives to pay tribute to Sandy Insalaco, of Luzerne County, Pennsylvania, who is this year's recipient of the ``Lifetime Achievement Award'' given by the Italian American Association of Luzerne County.

A principal of Insalaco Development Group, Sandy's company develops, owns and operates commercial real estate in Pennsylvania, New York and New Jersey.

He is president and chief executive officer of Nature's Way Purewater, a bottler of private label spring, distilled and reverse osmosis water for supermarket chain stores and other clients throughout the United States and Canada.

Mr. Insalaco is chairman of the board of directors of Landmark Community Bank headquartered in Pittston, Pennsylvania, and with offices in Forty Fort, Scranton and Stroudsburg Pennsylvania.

He is a past chairman and now a member of the board of trustees of Misericordia University.

Mr. Insalaco has served on the board of trustees of the Mercy HealthCare Foundation since it was established by the late Monsignor Andrew J. McGowan and he served as chairman of that foundation. Mercy HealthCare Foundation supports health initiatives for the underserved in northeastern Pennsylvania.

Mr. Insalaco started his business career in 1957, joining his brother, Michael, in the retail food business. The company grew from one small store to 14 supermarkets located in Luzerne, Lackawanna, Monroe and Wayne Counties in Pennsylvania. The company was sold in 1993.

Mr. Insalaco served on the board of directors of the former United Penn Bank in Wilkes-Barre. He also served as chairman and a member of the board of directors of Affiliated Food Distributors, Inc., Scranton, Pennsylvania.

He has been actively involved with fund-raising for St. Maria Goretti Church, the Greater Hazleton Philharmonic Society, the Greater Pittston Memorial Library, Mercy HealthCare Foundation and Misericordia University.

Mr. Insalaco and his wife, Marlene, have 2 sons, Sandy Jr., and Michael. They also have five grandchildren.

Madam Speaker, please join me in congratulating Mr. Insalaco on this special occasion which honors a lifetime of extraordinary achievement that has touched the lives of many people and improved the quality of life throughout northeastern Pennsylvania.

Mr. Speaker, I move to suspend the rules and agree to the resolution (H. Res. 658) supporting the goals and ideals of Federal Credit Union Month and recognizing the importance of Federal credit unions to the economy, and their critical mission in serving those of modest means.

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

Mr. Speaker, I rise today to offer my thoughts about House Resolution 658, of which I am proud to be a cosponsor. House Resolution 658 would designate September as National Credit Union Month. America's credit union movement began during the Great Depression with the passage of the Federal Credit Union Act. With its mission of helping people of modest means, the credit union movement has blossomed, and these financial institutions help to keep our economy vibrant. Today, credit unions serve more than 89 million members at more than 9,000 State and federally chartered institutions. These financial entities are cooperative organizations that are owned and controlled by their members. From my perspective, the credit union movement represents democratic capital of our society. The movement also represents the grass-roots of our democracy.

Among other things, credit unions provide much-needed services to young families and small businesses, often offering mortgages and startup loans at low rates. In addition, credit unions invest in the areas where they are located by assisting in community revitalization and economic renewal efforts, as well as working with underserved populations to help them gain access to our Nation's banking system.

More than 9 years ago, we passed the Credit Union Membership Access Act, which I helped to introduce. This legislation modernized Federal credit union laws. Unfortunately, however, it also imposed severe restrictions on credit unions in several areas like capital standards, business lending, and the ability of some credit unions to provide services to underserved areas. From my perspective, we should revisit these areas and work to help credit unions operate more effectively and efficiently in the years ahead.

In closing, I am proud to be a supporter of the credit union movement and am pleased to speak in support of recognizing September as National Credit Union Month.

Mr. Speaker, I urge my colleagues to support this important resolution.

Mr. Speaker, I reserve the balance of my time.

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

Madam Speaker, I rise today to ask you and my esteemed colleagues in the House of Representatives to pay tribute to the Forty Fort Meeting House which is celebrating its 200th anniversary as a place for citizens to congregate for the purpose of worshipping God and serving their communities.

A national historic landmark, the Forty Fort Meeting House, located in the Wyoming Valley of Luzerne County, Pennsylvania, is the oldest existing house of worship in northeastern Pennsylvania.

Two hundred years ago, the colonists viewed the discussion of religion and politics as fundamental to the success and prosperity of their community and they created an institution strictly for that purpose--the meeting house.

The origins of the Forty Fort Meeting House are rooted in colonial New England where members of the local community gathered inside plain wooden structures twice on Sunday to worship and during the midweek to discuss community affairs and elect local officials.

The Forty Fort Meeting House served as a place of worship until 1837 when the Presbyterians and Methodists built their own churches, leaving the Meeting House and adjoining cemetery to become neglected.

In 1860, the Forty Fort Cemetery Association was established and with it came a renewed sense of responsibility for stewardship of the Meeting House. William Swetland, the association's first president, replaced the roof, painted the exterior and repaired the fence. For the next 130 years, the structure received only cosmetic repairs to the exterior.

Today, efforts are underway to restore the structure through an endowment project that seeks to raise funds for the work and to continue preservation well into the future.

The Forty Fort Meeting House stands as a legacy to the spiritual fortitude, fierce determination and moral courage of the Connecticut Yankees who settled the Wyoming Valley.

Madam Speaker, please join me in celebrating the 200th anniversary of the Forty Fort Meeting House and in urging citizens from throughout the region to support the ongoing preservation project fund raiser to insure that a vital part of our Nation's past remains intact so future generations can appreciate how their ancestors laid the foundation for our present great society.

Mr. Speaker, I rise to support this resolution setting forth the terms of debate for considering H.R. 2761 on the House floor.

The adoption of this rule will allow the House to debate this must- pass legislation to extend the Terrorism Risk Insurance Program. We need to move this process forward as quickly as possible.

I know that some participants in today's debate will raise concerns about the structure of the rule concerning the method by which it addresses issues related to the PAYGO rules. I must concede to them that the proposed rule is imperfect in this regard.

Throughout the debate on this legislation, the chairman of the Financial Services Committee, the gentleman from Massachusetts, and I have agreed that the Terrorism Risk Insurance program is very important. It protects America's economy from terrorist attacks. Certainly, the Federal Government has a role in protecting our Nation from terrorist events.

Moreover, this Federal backstop only responds to an emergency situation and only becomes implemented after a terrorist attack. Because TRIA plans ahead for an emergency caused by terrorists, Congress should treat spending under this law as an emergency.

PAYGO is an important rule that keeps Congress fiscally responsible. PAYGO, however, should not apply to all pieces of legislation, especially those bills that plan ahead for national emergencies caused by terrorists. My view is that all legislation should be fiscally responsible to the maximum extent possible.

Accordingly, I have had concerns about costs throughout the development and debate of this legislation. In fact, I voted, in many instances, to control those costs, such as limiting the length of the extension and increasing the private sector's responsibilities after a reset.

TRIA is not an entitlement program. It is a program for protecting the economic security of our Nation. H.R. 2761 is a necessary piece of legislation that will maintain stability in our economy after a terrorist attack on our Nation, rather than waiting for the government to develop an ad hoc plan after an event.

While we cannot predict when or where the terrorists may choose to attack us, we can prudently plan ahead for such a possibility. Like many participants familiar with this debate, I have concerns about the requirement in this rule to have a separate vote of Congress on funding for the program after an attack. With Federal payments conditioned on a congressional vote even under expedited procedures, much of the certainty of the program is taken away. It is my hope, therefore, that we will continue to work on a better solution before this bill comes back to the House floor in a conference report.

That said, Mr. Speaker, we must move the process forward. I, therefore, urge my colleagues to support this rule on H.R. 2761.

Mr. Chairman, I rise in support of H.R. 2761, the Terrorism Risk Insurance Revision and Extension Act. Because the supply of terrorism reinsurance has not returned to its pre-September 11 levels, we must now act to extend TRIA before the law expires on December 31.

Terrorism insurance plays a critical role in protecting jobs and promoting our Nation's economic security. While this legislation may contain a few provisions that cause me concern, passage of this bill today will move the process forward. This extension makes several meaningful and necessary reforms to the program.

First, this bill eliminates the distinction between foreign and domestic acts of terrorism. Terrorism, regardless of its cause or perpetrator, aims to destabilize the government. We must protect against that risk.

Second, H.R. 2761 incorporates group life insurance as a covered line. The original TRIA did not include group life. I am pleased that this House, as it did in 2005, has decided to correct that oversight. We need to protect individuals, not just buildings they work in, by adding group life to TRIA.

Third, the bill improves protection against acts of nuclear, biological, chemical and radiological terrorism. This coverage properly represents the most significant reform of this extension effort.

We designed TRIA to protect the economic security of our Nation against terrorist threats. Congress, therefore, should address the possible threat of an attack by nuclear, biological, chemical or radiological means. Recognizing insurers' difficulty of modeling and pricing these events, this package limits the exposure of insurers on this risk, but allows the market to grow over time. H.R. 2761 further allows Treasury to exempt certain small insurers from this requirement. We need each of these prior modifications in order to sustain our Nation's economic recovery after a terrorist event.

This legislation is not about helping the insurance industry. The Terrorist Risk Insurance Program is about the continued availability and affordability of terrorism coverage and keeping America's markets strong.

That said, I do have some lingering concerns about some provisions in the product before us. When considering this legislation in the Financial Services Committee, I recognized the need for a longer extension period, but a 15-year extension is too long in my view.

Additionally, we should improve the bill's reset mechanism going forward. A reset mechanism can help both the area suffering an attack and the Nation to recover after a terrorist event. It can also help insurers to rebuild capacity. However, we ought to make sure that the size of the reset is in proportion to the size of the loss and to rebuild private capacity as quickly as possible.

In closing, Mr. Chairman, this is not a Democratic or a Republican issue. As I have previously said on this floor, it is an American issue, a business issue, an economic security issue.

I encourage my colleagues, including Mr. Baker, to put your doubts aside and help us move this process forward so that over the next 110 days we can provide the coverage necessary to keep the American economy growing.

Madam Speaker, I rise today to ask you and my esteemed colleagues in the House of Representatives to pay tribute to the Building Industry Association of Northeastern Pennsylvania, the members of which are celebrating their 50th anniversary.

From humble beginnings a half century ago, this group, the first of its kind in the Commonwealth of Pennsylvania and the ninth largest among 39 similar groups across the State, has committed itself to professionalism and consumer advocacy.

At 450 members, the BIA today continues a tradition established by its founders to represent the interests of those associated with the building industry and to provide a source

of information and protection for those seeking quality, affordable housing.

Peter Restaino, the president of the BIA, is committed to honoring the group's origins and to connect current members with that proud tradition. He has directed Matthew Hodorowski, a former BIA president, to compile a history of the organization that will be shared with those participating in the anniversary celebration to be held at the historic Wilkes-Barre Westmoreland Club.

Mr. Restaino has stated that the BIA's focus has been to consistently represent the interests of the building community and to assure an adequate supply of quality housing at fair prices across northeastern Pennsylvania.

Services provided by the BIA include education, a group insurance program and sharing information about the interests of members with all levels of government.

Madam Speaker, please join me in congratulating the Building Industry Association of Northeastern Pennsylvania for 50 years of service to the people of northeastern Pennsylvania. Their commitment to the principles of professionalism, tradesmanship and honorable business practices has earned them an enviable reputation throughout the northeastern Pennsylvania region.

Parliamentary inquiry, Mr. Speaker.

Madam Speaker, I rise today to ask you and my esteemed colleagues in the House of Representatives to pay tribute to the late CAPT Ann Bernatitus of Exeter Borough, Luzerne County, Pennsylvania, on the occasion of the placement of a monument in her memory in front of her hometown municipal building.

Captain Bernatitus is being honored by the people of Exeter because of her extraordinary service as a United States Navy nurse during the battles of Bataan and Corregidor in the Pacific theater of combat during World War II and also because she was the first person to receive the prestigious Legion of Merit award that was authorized by Congress in 1942. Others who were awarded the Legion of Merit include Dwight D. Eisenhower, George Patton, and Colin Powell.

Captain Bernatitus served as a nurse in the Philippines at the outbreak of the war, always on the front lines of combat. In the citation that accompanied the Legion of Merit award, it was noted that ``Nurse Bernatitus courageously withstood the dangers and rigors of tropical combat, rendering efficient and devoted service during the tense days of the prolonged siege and evacuation.''

Then a Navy lieutenant, she gained nationwide attention because of her dramatic rescue aboard a U.S. Navy submarine from Corregidor shortly after Japanese forces occupied the island.

Her epic journey aboard the USS Spearfish began on May 3, 1942, when Bataan had fallen and Corregidor's fall was imminent. She and 12 other nurses were evacuated and as soon as they were on board the vessel, it was forced to dive to escape the searching lights of the invading Japanese.

During their 17-day saga, the submarine continually ran on the surface from dusk to dawn and submerged during the day to avoid the threat of Japanese surface warships.

Following her arrival in Australia, she was sent home aboard a troop ship, arriving in the United States in July 1942. She was then assigned to Bethesda Naval Hospital in Maryland, eventually working with the Navy's public relations department assisting in bond drives.

After 22\1/2\ years in the Navy, she retired April 1, 1959, with the rank of captain after which she returned to her home in Exeter. She died in March 2003 at the age of 91.

Captain Bernatitus exemplified a life of fearless and selfless devotion to country and compassion for her fellow Americans. Her personal determination, coupled with her highly skilled nursing ability, was responsible for saving the lives of many American warfighters committed to answering the call to duty following the horrific events at Pearl Harbor.

Madam Speaker, please join me in remembering the many sacrifices made by Captain

Bernatitus on behalf of a grateful Nation and in celebrating her life of service.

Madam Speaker, I rise today to ask you and my esteemed colleagues in the House of Representatives to pay tribute to William and Esther Davidowitz who are being honored as Amudei Tzibur, or Pillars of the Community, by Temple Israel in Wilkes-Barre, Pennsylvania.

Mr. and Mrs. Davidowitz will be formally honored at Temple Israel's annual dinner to be held Wednesday, June 13, 2007.

Mr. and Mrs. Davidowitz are regarded as exemplary role models due to their achievements in both the Jewish community and the greater Wyoming Valley community.

Born in Brooklyn, New York and raised in Hazleton, Pennsylvania, Mr. Davidowitz served in the United States Army during World War II and later attended Penn State University where he graduated with a bachelor's degree in business administration. He joined his family's shoe business in Hazleton and later moved to the Wilkes-Barre area to establish the Penn Footwear Company in Nanticoke.

Mr. Davidowitz is a past chairman of the United Jewish Appeal and he remains active in the Jewish Federation and he is a trustee at the Jewish Community Center in Wilkes-Barre. He has served on the boards of Temple Israel, the Jewish Community Center, Fox Hill Country Club and Penn State University, Lehman Campus.

Mr. and Mrs. Davidowitz were instrumental in the creation and dedication of many community projects including the United Hebrew Institute Art Room, the Davidowitz Lounge at the Jewish Community Center and the building

addition to the United Hebrew Institute in 1980.

The Seligman J. Strauss Lodge of B'nai B'rith presented Mr. Davidowitz with its Community Service Award and the trustees of the Luzerne County Community College recognized his efforts as vice chairman of the building authority responsible for the construction of the Nanticoke campus.

Mrs. Davidowitz serves on the board of the Jewish Community Center. She is a past board member of Temple Israel and Wilkes University and has held leadership roles at the Northeast Ethics Institute, Luzerne County Area Agency on Aging, King's College, Ballet Northeast, College Misericordia, Wyoming Seminary, John Heinz Institute, Penn State Lehman Campus, Northeast Pennsylvania Philharmonic, United Hebrew Institute and the Wyoming Valley Jewish Campaign, which she chaired in 1990.

Mrs. Davidowitz is a member of the Klezmer Band, ``Freilox and Bagels,'' where she has played both the harp and the flute. She has served as the non-governmental representative to the United Nations for the National Council of Jewish Women and as a local representative to the United States Holocaust Memorial Council.

Mrs. Davidowitz has received tributes from the Greater Wilkes-Barre Anti-Defamation League of B'nai B'rith, the National Council of Jewish Women, the Jewish Federation of Greater Wilkes-Barre and the Seligman J. Strauss Lodge of B'nai B'rith.

Mr. and Mrs. Davidowitz are the parents of four sons, Jeffrey, Ivan, Steven and Benjamin. They now have nine grandchildren.

Madam Speaker, please join me in congratulating Mr. and Mrs. Davidowitz on this auspicious occasion. Their inexhaustible energy and devotion to family and community is an inspiration for all. Their volunteer service is an extraordinary example of how two people can make a huge difference in the quality of life in America.

Madam Speaker, I rise today to ask you and my esteemed colleagues in the House of Representatives to pay tribute to Monsignor John J. Bendik, pastor of the parish community of St. Casimir, St. John the Baptist, St. John the Evangelist and St. Joseph in Pittston, Luzerne County, Pennsylvania, who is celebrating his 40th anniversary in the priesthood.

Over the years, Monsignor Bendik has distinguished himself as a priestly shepherd to his many parishioners, and most especially, as a staunch advocate of education at all levels.

A son of the late John and Helen Sterbinsky Bendik, Monsignor Bendik was born in Wilkes-Barre and graduated from St. Meinrad Seminary in Indiana before his ordination on May 27, 1967 by Most. Rev. J. Carroll McCormick, then bishop of the Scranton Diocese.

Monsignor Bendik served parishes in East Stroudsburg, Stroudsburg, Delaware Water Gap and Bushkill. He taught at Notre Dame High School and ministered to the students at East Stroudsburg University. Later, he served as chaplain to students at College Misericordia in Dallas, Pa.

During his long campus ministry, he served in many local, State and national leadership roles. He was the first president of the Pennsylvania Campus Ministry Association and was a founding member of the National Association of Diocesan Directors of Campus Ministry and the National Catholic Student Coalition. He served as team member for the Frank J. Lewis Campus Ministry Training School and also was a member of the Northeast Regional Ministry in Higher Education and the Associates for Religion and the Intellectual Life.

Prior to his current assignment, Monsignor Bendik also served at Our Lady of Snows in Clarks Summit, St. Benedict in Newton Township and St. Mary of Czestochowa in the Greenwood section of Scranton.

Monsignor Bendik serves on the Board of Trustees at College Misericordia, the Board of Regents of the University of Scranton and the Board of Trustees at St. Meinrad School of Theology. He has also served as a member of the Board of Pastors of Seton Catholic High School and the Greater Pittston Ministerium.

Monsignor Bendik also serves in many capacities on the diocesan level including the post of Dean of priests for northern Luzerne County.

Madam Speaker, please join me in congratulating Monsignor Bendik on his 40th anniversary as a Catholic priest. His selfless service and wise counsel to his many parishioners and students will be forever remembered and respected. Monsignor Bendik has truly enriched the lives of so many as he has labored to improve the quality of life throughout his community.

Mr. Chairman, I would like to extend my congratulations to Chairman Frank and to Ranking Member Bachus, two individuals that may sound more in disagreement today than they really are.

I want to talk about, particularly, the passage of this bill, and let us understand that since March of 2000, we have had hearings and have attempted to get to a new regulator for the government-sponsored enterprises of Fannie Mae and Freddie Mac, and ultimately the Federal Home Loan Banks. We came very close 2 years ago. We passed it through this House. It didn't make it through the other body. We have an opportunity in this Congress to accomplish that.

As a matter of fact, one of the compliments to Mr. Frank is he didn't run out there wholesale and create all kinds of new gadgets in this bill. Basically, this bill is 99.44 of 100 percent the same as we did in 2005.

What will it accomplish? It is going to get us a world-class independent regulator, as the ranking member said, for $4.9 trillion worth of securities. I think that is important.

Here the major opposition that is being discussed is really philosophical in nature. I think Maxine Waters was very correct in that analysis. We are arguing over $500 million a year, and we are talking about an institution that has $4.9 trillion that we have to regulate, and know that in the last several years, there were errors and mistakes and potentially even fraud committed in these organizations as a result of the weakness of our regulators.

So we went to great lengths in a bipartisan way to have these hearings over the last 7 years and to say, let's create a regulator that we can all be proud of. But more than being proud of, that we can be relatively certain that the securities market and the investments of the United States in the real estate area are going to be safe and secure, and I think this bill does that.

Now this little argument that we have over the trust fund, $500 million a year potentially, if you think about it, it amounts to about a day and a half of what we spend in Iraq every damn day. A day and a half.

Now you can argue that we don't need any housing in the United States, and I think you can credibly make that argument if you are of that philosophical bent. And of course, on this side of the aisle, because we probably are closer to the people who do need that housing, we can make the argument that there is need. But never in anybody's mind should an argument of that minute an amount stop the passage of legislation which will allow us to get control and containment over $4.9 trillion of American taxpayer money.

Mr. Chairman, I offer an amendment.

Mr. Chairman, this amendment is drawn for the purposes of clarifying the process used by the new regulator's advisory committee to recommend candidates to serve as independent directors on the boards of each of the Federal Home Loan Banks. This proposal is a simple, yet important, corporate governance reform.

Today, the Federal Home Loan Banks benefit from the service and the guidance of individuals appointed by the regulator to serve on the boards of each of the Federal Home Loan Banks in addition to those board directors elected by member financial institutions. Because the public-private partnership in guiding and monitoring the activities of a Federal Home Loan Bank is an important one, H.R. 1427 would preserve the election and appointment systems for constituting the Federal Home Loan Bank boards.

Under the bill the advisory committee would recommend a list of individuals to serve as appointed independent directors to the head of the new regulatory agency. This individual would then make the final determination about whom to appoint to the independent director seats on the boards of each of the Federal Home Loan Banks.

Independent directors help to focus a Federal Home Loan Bank on its statutory mission. These public appointees also help to ensure that each board has the knowledge, skills, and expertise needed to properly direct and supervise the management of the Federal Home Loan Bank. For this appointment system to work best and for independent directors to perform the role that Congress intended, the director of the new regulatory agency overseeing the housing government-sponsored enterprises should have a choice among a variety of qualified candidates when making appointments just as the voters should have a choice of candidates in elections. My amendment would allow such a choice to occur via two specific methods:

First, it would allow the advisory board to establish its own independent process for identifying individuals to serve as appointed directors. Second, the amendment would build on the rulemaking recently adopted by the existing regulator that has the boards at each of the Federal Home Loan Banks recommending individuals to serve as independent directors.

Under this second route, each board of directors at a Federal Home Loan Bank would put forward at least two candidates for each vacant independent director seat. If a board submitted just one name for consideration, we could create a system by which the independent directors could become beholden to the group that nominated them.

For the appointed directors to remain effective and push the system's mission, we need to make sure that we keep their independence in place. By mandating that a Federal Home Loan Bank board provide at least two recommendations, we will help to prevent these unusually cozy relationships from ever developing.

In sum, Mr. Chairman, my amendment refines the processes to be used by the Federal Housing Enterprise Board in recommending individuals to serve as appointed directors on the boards of the Federal Home Loan Banks in a way that helps to preserve their independence and to ensure that they help a Federal Home Loan Bank to achieve its intended mandatory objectives.

I urge the adoption of this proposal.

I yield to the gentleman from Massachusetts.

Mr. Chairman, I offer an amendment.

Mr. Chairman, simply stated, my amendment would ensure a continued independent public voice in the corporate governance of Fannie Mae and Freddie Mac.

This amendment also has the support of the National Association of Home Builders and the National Association of Realtors. The bill before us would make a dramatic change in the board structures of the two government-sponsored enterprises, and this issue deserves a public debate. The charters of Fannie Mae and Freddie Mac presently require that the boards of both enterprises shall, at all times, have five members appointed by the President.

Unfortunately, the bill before us today would eliminate the requirement for presidential appointees on the boards of Fannie Mae and Freddie Mac. In my view, requiring presidential appointees to serve on the boards of Fannie Mae and Freddie Mac is entirely appropriate, given the unique nature of their charters and their important public missions.

Government-sponsored enterprises, by their very nature, are public, private entities, and they need to have a public voice at the highest levels of governance. The Presidential appointments, therefore, signal that each entity is not only accountable to its shareholders, but also to a broader national public policy interest. Additionally, the presidential appointment system gives citizens a needed voice in ensuring the viability of our Nation's housing finance system, and that the benefits of this system are widely distributed. Maintaining public representation on the GSE boards is therefore critical to ensuring continued public trust in these very important financial institutions.

This amendment would accordingly restore the presidential board appointment assistance for the GSEs. It would also restore a change made in the bill that passed the House in the last Congress by a voice vote. This change provides flexibility in the size of the corporate boards that Fannie Mae and Freddie Mac established.

This commonsense amendment to retain an independent voice on the GSE boards also has the backing of those who know our housing markets best, like the National Association Home Builders and the National Association of Realtors.

In a recent letter to me about this amendment, the home builders note that ``a diverse governing board of directors that is well balanced in knowledge and expertise in the full range of GSE-related issues and activities is critical.'' They also believe that the amendment ``will help ensure that the GSEs' board of directors are best equipped to make informed, sound judgments in fulfilling their duties, including monitoring risk management activities of the GSEs' executives.''

In sum, this amendment is one that deserves the support of everyone who wants to preserve a public voice within these public, private entities and promote good corporate governance. It has the support, as I said before, of the homeowners and the realtors.

Mr. Chairman, I urge its adoption.