House of Representatives

On Tuesday a House of Representatives committee stated that it would subpoena the Federal Reserve to make the central bank to provide documents related to its role in Bank of America’s takeover of Merrill Lynch in 2008. The statement comes several days before Kenneth Lewis will testify before the House Oversight Committee which is conducting an investigation into what Lewis knew about Merrill's financial condition and potential regulatory pressure to complete the deal.

On Tuesday U.S. Representative Barney Frank, chairman of the House of Representatives Financial Services Committee, stated that next week he will introduce a bill to overthrow an infamous and long pestered U.S. ban on online gambling. According to Frank the bill aimed at overturning the law which was imposed during the Bush reign and which hurt U.S. trading ties with Europe is being drafted this week.

On Wednesday the bill that imposes restrictions on bonus payments at banks that receive governmental bailout funds passed on a 247-171 vote in the U.S. House of Representatives. Under the new legislation the U.S. Treasury will have much power to ban "unreasonable and excessive" compensation and bonuses that are not based on performance standards.

This week on March 31 the U.S. Senate Banking Committee will be discussing the introduction of the new pro-consumer "Credit Card Accountability Responsibility and Disclosure Act of 2009" legislation, reports Reuters. The legislation is aimed at preventing unfair and deceptive practices leading to consumers' unexpected fees and rate hikes.