July 11, 2007

Dodd, Frank, Shelby, Bachus, and Maloney Laud House Passage of CFIUS Reform Legislation

Bill strengthens national security review of prospective foreign investments in the United States

WASHINGTON, D.C. – Senators Chris Dodd (D-CT) and Richard Shelby (R-AL) and Representatives Barney Frank (D-MA), Spencer Bachus (R-AL), and Carolyn Maloney (D-NY), today applauded both the House and Senate for passing needed reforms of the Committee on Foreign Investments in the United States (CFIUS) for reviewing direct foreign investments for national security purposes. The Foreign Investment and National Security Act of 2007, H.R. 556, which passed the House in February and the Senate last month, will strengthen the role of the Director of National Intelligence, mandate the designation of a lead agency for each covered transaction, and provide for a thirty-day review of transactions covered by CFIUS to determine its effects on national security, among other provisions. The measure now moves to the White House for the President’s signature. “Foreign direct investment is a great thing for our country, and the general rule should be that we welcome foreign direct investment. After Dubai World Ports, a concern grew in the rest of the world that we were not fully supportive of foreign direct investment, and that is why the House passed the bill last year and why we acted again early this year to restart the process. I congratulate Senator Dodd for getting the bill through the Senate this year,” said Barney Frank, the Chairman of the House Financial Services Committee. “House approval of this legislation is a very important step toward implementing needed reforms to existing government procedures for assessing the national security implications of foreign investments in the United States,” said Senator Dodd, Chairman of the Senate Banking, Housing and Urban Affairs Committee. “Our nation’s economy and security are advanced by a comprehensive and transparent process for reviewing the national security impact of otherwise job creating direct foreign investments. This bipartisan legislation will strengthen the current CFIUS and thereby provide greater security during this perilous time. It also enhances the oversight role of Congress in monitoring foreign direct investment trends in the United States. I commend Senator Shelby for his leadership on this bill, as well as Representatives Frank and Maloney, and hope for a timely signature by the President to enact this law.” Senator Shelby, the Ranking Member of the Senate Banking, Housing and Urban Affairs Committee said, “I am pleased that the House moved expeditiously to pass this important legislation and send it to the President’s desk for his signature. We must encourage foreign direct investment in the U.S. economy provided that such investment does not compromise our national security. I believe that this carefully crafted compromise simultaneously achieves these objectives by establishing a thorough process with a clear line of accountability for CFIUS to review transactions, and I am hopeful that the President will soon sign it into law.” “The clarity this legislation brings should lead to greater foreign investment in America, investment that is essential to job creation and our economic prosperity going forward,” stated House Financial Services Ranking Member Spencer Bachus. “This is a balanced, sensible reform bill that will strengthen our nation’s security, protect American jobs, and encourage foreign investment through a more predictable CFIUS review process. We have struck the right balance with a bill that protects both our national and economic security. I want to thank Chairman Frank and Ranking Member Bachus for their leadership on this important issue,” said Congresswoman Maloney, Chairwoman of the House Financial Services Subcommittee on Financial Institutions. A complete summary of the bill can be found at financialservices.house.gov.