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HR10198FEDERALIN_COMMITTEE

Proposed Law to Increase Diversity in Federal Reserve Investment Contracts

Original title: Promoting Diverse Investment Advisers Act

November 21, 2024

financefederal-reservediversityinvestmentbanking-regulation

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Where This Stands

Introduced
Committee
Floor Vote
Passed
Signed

Currently IN_COMMITTEE. The next step in the legislative lifecycle is Floor Vote.

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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The Frame

What this does

The bill changes the procurement requirements for the Federal Reserve's emergency lending facilities, potentially shifting which financial firms are hired to manage billions of dollars in assets during economic crises.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Federal Reserve System

The agency must update its investment management agreements and reporting procedures to include diversity goals.

Diverse-owned investment firms

These firms may see changes in their opportunities to serve as intermediaries for Federal Reserve investment management agreements.

What changed

Current stage: IN_COMMITTEE.

What's next

Floor Vote.

Background

  • The Federal Reserve's 'unusual and exigent circumstances' authority is granted under Section 13(3) of the Federal Reserve Act, allowing it to provide emergency liquidity to the financial system. context

Summary

This bill requires the Federal Reserve to set goals for using diverse-owned firms as investment advisers, brokers, and dealers when managing emergency financial programs. It mandates that these goals be included in existing reporting requirements to ensure transparency in how the Federal Reserve selects its financial .

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Why It Matters

The bill changes the procurement requirements for the Federal Reserve's emergency lending facilities, potentially shifting which financial firms are hired to manage billions of dollars in assets during economic crises.

Frequently Asked Questions

What firms qualify as 'diverse' under this bill?
Firms that are at least 51% owned by women, minorities, or veterans, or firms where the daily operations and management are at least 51% controlled by these groups (or governed by a board with a majority of these individuals for publicly traded firms).
Does this apply to all Federal Reserve activities?
No, it specifically applies to s related to the Board of Governors' 'unusual and exigent circumstances' authority (emergency lending programs).

News Coverage

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Sponsors

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift100% confidence

Expansion of Minority Definition

The bill explicitly expands the definition of 'minority' to include indigenous persons in the United States and its territories, beyond standard existing statutory definitions.

Federal Reserve System

Connected Entities

bill_numberSecurities Exchange Act of 1934“Used for defining broker and dealer.”Map →
personMrs. Beatty“The bill sponsor”Map →
organizationBoard of Governors of the Federal Reserve System“The entity responsible for enacting the changes.”Map →
bill_numberFederal Reserve Act“The law being amended.”Map →
bill_numberInvestment Company Act of 1940“Used for defining affiliated persons.”Map →
bill_numberFinancial Institutions Reform, Recovery, and Enforcement Act of 1989“Used for defining minority.”Map →
bill_numberInvestment Advisers Act of 1940“Used for defining investment adviser.”Map →
otherUnited States Code“Reference to the legal code.”Map →

Analysis Score

0–100
  • Significance65
    How much this matters to a regular citizen
  • Controversy40
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz25
    Current news / social attention level

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