The speaker pro tempore the gentlelady from california is recognized. Ms. Waters i have no further requests for time and im prepared to close. The speaker pro tempore the gentlelady is prepared to close. The gentlelady is recognized. Ms. Waters i yield myself the remainder of my time. Madam speaker, its become par for the course for the majority to recklessly advance harmful deregulatory packages like h. R. 3978. My friends on the other side of the aisle are moving forward with regulatory roadblocks at a furious pace, pushing dangerous bills through the house nearly every week. It appears that they may have already completely forgotten the way that lax Financial Regulation allowed the crisis in 2008 to occur that. Crisis badly damaged the occur. That crisis badly damaged the whole economy and harmed all of our constituents. The impact was enormous. 13 trillion in Household Wealth was lost. 11 Million People lost their homes to foreclosure. And the Unemployment Rate reached 10 . Democrats responded by enacting wall street reform, to ensure that consumers, investors and our economy were protected from reckless actors and bad practices. But now republicans cannot wait to take us back to the bad old days. It makes no sense. The package of bills before us guts important protections when markets are already experiencing turmoil and would allow High Frequency traders to manipulate the stock markets undetected, encourage regulatory race to the bottom at our nations stock exchanges, and harm investors by weakening efforts to detect accounting fraud at Smaller Public Companies this package of bills threatens important progress, made to reduce risk in the Financial System and return Investor Confidence in in recent weeks we have seen volatile markets that threaten the save offings hardworking american families. These circumstances should serve as a leer reminder that congress should be strengthening oversight of the financial ystem, not weakening it by undermining or removing important protections. H. R. 3917 is strongly opposed by our state securities cops at the front line of combating fraud and it is opposed by groups representing consumers, investor, and unions. For all of these reasons, i urge members to oppose h. R. 3978 and yield back the balance of my time. The speaker pro tempore the gentlelady yields back. The gentleman from texas is recognized. Mr. Hensarling may i inquire how much time i have remaining, mr. Speaker . The speaker pro tempore the gentleman has seven minutes remaining. Mr. Hensarling there may be other speakers come, at the moment, i yield myself four minutes, madam speaker. The speaker pro tempore the gentleman is recognized. Mr. Hensarling again, all over america today, fortunately because of the tax cut and jobs act, people are waking up to new opportunities. Theyre finally seeing their wages begin to grow. Weve seen the greatest wage growth in almost a decades, madam speaker. Again, thanks to President Trump, thanks to a Republican Congress a bill that was opposed by every single democrat. But as they wake up to these new opportunities, madam speaker, they also need new credit. So as their incomes rise, this is good, but they still need credit in order to buy a home. In order to purchase that car. And sometimes just to put groceries on the table. Unfortunately, over the last eight years of the obama administration, where we saw probably one of the greatest increases in the cost, expense, burden of costly washington red tape, we have seen fewer Credit Opportunities and so now, fortunately today, there are men and women, good men and women on both sides of the aisle who are trying to Work Together to bring some rationale and reason to the regulatory burden. Many members on the other side of the aisle do realize that doddfrank did not come down as tablets from mount sinai. That it isnt chiseled into stone. That maybe there are some improvements that could be made. So today were taking a number of very bipartisan bills to the house floor. Protecting consumers access to credit act, which we debated earlier, madam speaker, passed by 4217. The trade improvement act by mr. Hill of arkansas passed in our committee 5 5. 90 . Almost all the democrats. But the Ranking Member. Supported the bill. Protection of source code. 4614. Fostering innovation. I see the gentlelady from arizona is now on the floor, passed by a vote of 4812. A democrat bill. National Securities Exchange regulatory parity act. 4614. So we have a lot of bipartisan bills, but with one exception, title 5 of the trade improvement act, none of them were supported, unfortunately, by the Ranking Member. So theres again a lot of bipartisan work were trying to get done here. Unfortunately, very little of it is supported by the Ranking Member. Why is this important . Its important, madam speaker, because every day were still hearing from our constituents who need access to competitive Affordable Credit and because of this washington red tape and regulatory burden, theyre not getting it. You know, it wasnt that long ago we heard from ann of wisconsin who said, quote, my husband and i had very high credit scores. We have plenty of equity in our home, but because my husband has a seasonal job and finds other employment in the winter, many banks we contacted rejected our loan request. They based our annual income only on the job he has currently and said that was part of the new regulation. Part of the new regulations. Theres somebody who cant get a home. I heard from Mortgage Bank for the North Carolina who said, last year we declined a young man and his family fixed rate financing to purchase a primary home the applicant recently relocated to work for a family business. Prior to doddfrank it would have been easy to qualify, but no more. Another potential American Home buyer denied credit was of this regulatory burden. And madam speaker, thats what many of us on both sides of the aisle are trying to remedy today. At this time, madam chair, im pleased to yield two minutes to the gentlelady from arizona, ms. Sinema, sponsor of title iii of the act of fostering innovation. The speaker pro tempore the gentlelady is recognized for two minutes. Ms. Sinema i rise in support of h. R. 3978, a package of commonsense solutions, each pass with support of both parties. Thank you to congressman hill of arkansas for his leadership in moving the package forward. One of these solutions is h. L. 1635, the fostering innovation act, legislation we introduced to help arizona Biopharmaceutical Companies make lifesaving breakthroughs. Business expenses always involve tradeoffs. When arizona businesses spend money on costly regulations that provide little public benefit, less to invest in job creation for arizona families. Thats why i introduced this bill this fix ensures businesses have the time and capital to protect and develop scientific breakthroughs. Right now they are exempted only for five years from these costly external audit requirements. Thats often not enough time for the emerging companies to prepare innovations for commercialization. Our bill temporarily exempts extension for an additional five years for a small subseth of the e. G. C. s with an annual rev lieu of less than 50 million and less than 700 million in public float. This empowersen innovative Arizona Companies to use valuable resources to remain competitive, stable, and ultimately successful. H. T. Zpwamplet tucsonbased developer of targeted molecular technology. Their innovation ensures genetic testing can be turned around accurately and quickly in as little as 24 hours. For patients, doctors, and those grappling with unexplained symptoms or illnesses, those can provide critical insights into life 46 saving treatments. This is what Companies Like h. G. C. Should use their resources to fund, not costly paperwork. I urge my colleagues to pass this act. Thank you in particular to chairman hensarling and congressman hollingsworth of indiana for working with me on a consensus solution that cut red tape and supports innovative and potentially lifesaving medical research. Thank you, mr. Speaker, i yield back. The speaker pro tempore the gentlelady yields back. The gentleman is recognized. Mr. Hensarling how much time do i have remaining . The speaker pro tempore one minute remaining. Mr. Hensarling once again, i want to hear the voice os half of hardworking americans, not just washington, d. C. , letterhead groups. We heard from a local banker who said a local union member wanted to refinance his residence, he was laid off dooth winter season. His tax return showed he was generally laid off for about six weeks each yore during the extreme cold but was always called back when weather improve. Since he was laid off we could not meet the requirement to validate his current income that would continue for three years. We had to deny the loan. Yet again, mr. Speaker, more washington red tape, taking away home opportunities from hardworking americans. It is wrong. It is wrong. We must do something about it. And its why on a bipartisan basis so many of us have gotten together to pass h. R. 3978. Yes, we want to make sure that people can buy homes, they can buy cars, they can put groceries on the table and right now when the economy is finally starting to improve, thanks to President Trump and the tax cut and jobs act, we want them to have opportunities. I encourage all members to support h. R. 3978 and i yield back the balance of my time. The speaker pro tempore the gentleman from texas yields back. All time for debate has expired. For what purpose does the gentleman from illinois seek recognition . Mr. Chairman, i have an amendment at the desk. The speaker pro tempore the clerk will designate the amendment. The clerk amendment number 1 printed in part c of house report 115559, offered by mr. Foster of illinois. The speaker pro tempore pursuant to the rule, the gentleman from illinois, mr. Foster, and a member opposed each will control five minutes. The chair recognizes the gentleman from illinois. Mr. Foster my amendment clarifies this bill is only intended to apply to the source ode underpinning algo rhythmic training. The algo rhythmic source code of a trading firm are its crown jewels and its basically the core of its existence and its intellectual property. It is not merely historical or descriptive like books of records that regulators routinely have access to. Its not a broad expression of strategies they may use in the future. Rather its a specific and prescriptive algorithm. The firms that rely on algo rhythmic trading have ph. D. Scientists researching correlations that lead that these relationships between the inputs and outputs. These may be simple but may also be incredibly complex, involving multiple inouts inputs that do not rea appear related at first glance this complexity coupled with the fact that they are written largely in computer code limits the effectiveness of examining source code. It is rather the behavior of the firm in the market that represents violation of security laws. Manipulative behavior like display argue canceling orders should prompt regulators to ask the firm to explain it. Source code would be and will be a valuable part of any investigation or enforcement action into observed manipulation of the market but this is not the basis and should not be the basis for casual inspection. It would be probably be central to providing the element of intent in an enforcement action because it demonstrates the algorithm was designed to engage in for example, manipulative or abusive behavior. To this end, its imperative that the firms achieve archived versions in effect at any fwiven time and log modifications to the algorithms and who made them at any time the code is altered. These should always be available by subpoena. Additionally, i believe most firms would allow the regulators on site to examine the source code on an air gap computer. To treat the source code would not limit the regulator to leglation regulation but would allow the staff to request it which has real dangers. Buzz of the value of the firm carries with its proprietary algorithms, it makes sense theyd be reluck tabt to allow any undue access to its crown jewels. And that is really, i believe, and i think the majority of my colleagues believe, that is something that should be accessible only via subpoena. So my amendment simply clarifies that it is only the algo rhythmic trading code and related information that should be covered. I urge my colleagues to support my amendment and upon its adoption to support the bill on final passage. Thank you and i reserve the balance of my time. The speaker pro tempore the gentleman reserves. For what purpose does the gentlelady from california seek rick in addition . Ms. Waters to claim time in opposition to the amendment. The speaker pro tempore the gentlelady is recognized. Ms. Waters the current code would require s. E. C. Examination to obtain a subpoena before it could inspect any source code whatsoever, including, for example, computer code reflecting the firms adherence to the s. E. C. s Cyber Security regulations, the amendment offered by mr. Foster would narrow the requirement in title 2 to only apply to proprietary source code related to algo rhythmic trading. While i applaud mr. Foster and the amendments cosponsor for narrowing the overbroad language f title 2, it cannot fix the untimely and illadvised legislation. En as amended, title 2 would effectively undermine oversight of creators who stand to benefit from the kind of extreme market volatility we have seen in the last few week. Lets not forget that on may 6, 2010, in an event referred to as the flash crash, major ugs stock indices inexplicably plummeted one trillion in less than an hour before mostly rebounding. They took five minutes to determine the flash crash was caused by a combination of a flawed execution algorithm of one Institutional Investor and trading algorithmic by f. T. S. While its too early to tell what caused volatility in the u. S. Stock markets, market analysts have suggested that lgogh myth rick Algorithmic Trading may be it. The biggest one day point drop in history happened last week. Treasury secretary Steve Mnuchin testified before the House Financial Services committee that Algorithmic Trading, quote, definitely had an impact on market moves, quoteunquote. Given this trading in our stock market, this information enabled such activity merely because it is it existed in an electronic format. Americans that have trillions of dollars in 401k and other retirement and savings plans deserve the s. E. C. s best efforts in investigating and mitigating computerdriven market disruptions. For this reason and for all of these reasons and given my broader concerns that the bill would significantly harm Investor Confidence in our markets even if the amendment is adopted, i am urging a no vote on h. R. 3978. I yield back the balance of my time. The speaker pro tempore the gentlelady from california yields back the balance of her time. The gentleman from illinois is recognized. Mr. Foster id like to simply reiterate it should be the actions in the market that are the first indications that the regulators should have a look at. When they see suspicious activity in the market, that is the time to get the subpoena and go after the source code. And so with that i just urge the adoption of the amendment and passage of the underlying bill. I yield back the balance. The speaker pro tempore the gentleman from illinois yields back the balance of his time. All time expiring on the amendment, pursuant to the rule, the question is on the question is on the amendment offered by the gentleman from illinois, mr. Foster. The question is on the amendment offered by the gentleman from illinois, mr. Foster. In the opinion of the chair, the ayes have it and the mendment is agreed to. Third reading of the bill. Those in favor say aye. Those opposed, no. The ayes have it. Third reading. To amend the Ll Real Estate settlement procedures act of 1974 to modify requirements related to mortgage disclosures and for other purposes. Mr. Capuano moves to report the same back to the house forthwith with the following amendment mr. Capuano mr. Speaker, without objection, i ask the reading be waived . You want to read it . Mr. Hensarling reserve a point of order. The speaker pro tempore the gentleman from texas reserves a point of order. Is there objection to request for waiving the reading of the amendment or the motion to recommit . There is objection. Clerk will read. The clerk page 5, line 13, strike page 5, line 14, strike the period and insert and. Page 5 after line 14 insert the following d. Has clawback policies to require any executive office incentive base compensation to the claw back in the event the issuer is required to prepare an accounting restatement due to the material noncompliance of the issuer without any Financial Reporting requirement under the securities laws as desectioned in 3a of the Securities Exchange act of 1934 regardless of whether such compensation was paid to an officer who was a party to the actions that resulted in such restatement. The speaker pro tempore pursuant to the rule, the gentleman from massachusetts is recognized for five minutes in support of his motion. Mr. Capuano thank you, mr. Speaker. My amendment simply requires a company to have a policy in place to claw back executives incentive base pay if it is materially noncompliant with Financial Reporting requirements. Now, those words matter because the words materially noncompliant means something in the accounting world. It has to be a big change. Not a little accounting error. This amendment should be noncontroversial. Its shortsighted a decad