Eurocurrency Market Control Act of 1979
Latest action. Referred to House Committee on Banking, Finance and Urban Affairs.
Eurocurrency Market Control Act of 1979 - Amends the Federal Reserve Act to require the Federal Reserve Board to establish reserve requirements on certain Eurocurrency liabilities and other transactions of foreign branches and agencies of member and nonmember banks, Federal or State branches and agencies of foreign banks operating within the United States, and certain corporations (Edge Act corporations) engaging in international or foreign banking or financial operations. Stipulates that such reserve ratios for deposits shall not be less than ten percent nor more than 22 percent. Stipulates that such reserve ratios shall be reduced by 75 percent during the first calendar year, 50 percent during the second calendar year, and 25 percent during the third calendar year. States that such reductions shall take effect upon the determination by the Chairman of the Federal Reserve Board that countries representing 75 percent of all foreign-denominated deposits within banks and other financial institutions in their jurisdiction have agreed to adopt comparable reserve requirements on Eurocurrency liabilities and other transactions. Requires the Chairman to report to the appropriate committees of the Senate and the House of Representatives one year after the date of enactment of this Act on the progress of efforts to have major banking countries establish reserve requirements and not later than ten days after a determination that the required percentage of countries have agreed to adopt reserve requirements. Prohibits the Board of Governors of the Federal Reserve Board from approving the establishment of any specially designated international banking facility or special exemptions from interest rate regulations and reserve requirements prior to December 31, 1980. Directs the Board of Governors to report to the Congress as to the advisability of the adoption of such proposals and on the role of United States banks and other financial institutions in the Eurocurrency market and in foreign exchange markets. Lists information such report shall give emphasis to including, but not limited to, the implications for the Federal Reserve Board (as lender of last resort) of Eurocurrency activity, foreign exchange trading, and any speculative activity of United States banks and other financial institutions and the advisability of them maintaining unhedged, speculative positions in foreign currency markets. Requires the Federal Reserve Board to submit to the Congress one year after enactment of this Act specific recommendations for changes in legislation or regulations to: (1) prohibit transfer of any asset across national borders for the purpose of minimizing tax liability within any national jurisdiction; (2) limit banks and other financial institutions from holding "uncovered" contracts to buy and sell foreign exchange to a fixed percentage of capital for each national currency in which they deal; and (3) limit the responsibility of the Federal Reserve Board as lender of last resort in the event that a bank violates any rule or regulation the Board may establish.
Written by analysts at the Congressional Research Service and published on Congress.gov, not by Civibrief. Summarized at the "Introduced in House" stage on May 7, 1979. It describes the bill, it is not the legal text.
Where is it in the process, and what happens next?
4 steps remain before this bill could become law.
The record's latest action, on May 7, 1979: Referred to House Committee on Banking, Finance and Urban Affairs.
- Clearing the committees it was referred to, and being scheduled for a floor vote
- Passage by the House
- Passage by the Senate
- The President's signature. If the President vetoes it, two-thirds of both chambers must vote to override.
How likely is it to become law?
Civibrief does not forecast outcomes and this page has no opinion about this one. What the record supports is a base rate, which is a fact about the whole pile, not a prediction about this measure.
In the 96th Congress (1979-80), 613 of the 12,581 bills and joint resolutions introduced became law, about 4.9 percent. That count covers every measure at every stage, including the many that never left committee.
This one is not there yet: 4 steps are still outstanding, listed above.
Has anyone actually voted on it?
No. No roll call in this Congress cites this measure. That is the ordinary outcome: most measures never reach a recorded floor vote, and a committee ends most of them simply by not acting.
A vote is not the only thing that happens to a measure. Hearings, markups, and referrals are all recorded actions, and none of them is a vote of the full chamber.
Who is behind it?
JIM LEACH (R-IA) introduced it on May 7, 1979. No cosponsors are recorded.
Cosponsoring is a formal signature on the text. It is not a commitment to vote for the measure, it does not bind anyone's party, and a long list of cosponsors is a measure of attention rather than of prospects.
How long has it been in play?
It was introduced on May 7, 1979, 17293 days ago. The most recent recorded action was 17293 days ago, on May 7, 1979.
Measures do not carry over. Anything the 96th Congress has not finished by January 3, 1981 dies when the term ends, and has to be introduced again from the start in the next Congress.
Every answer above is assembled from this measure's own record on Congress.gov and from published counts of what Congress has passed before. Civibrief does not predict outcomes and takes no position on any measure.
Vote history
- HouseIn committee, no floor vote yet
- SenateAwaits House passage
- PresidentAwaits both chambers