Fed Dividend Issue Expected to Arise in House

Also on Capitol Hill this week, the House is expected to vote on a long-term transportation funding package. News reports have indicated that a revenue-raising provision significantly reducing the dividends paid to Federal Reserve member banks — a measure ABA strongly opposes — may be included. The Senate has already passed a transportation bill with a similar funding mechanism.

Federal Reserve Chairman Janet Yellen will testify before the House Financial Services Committee on Wednesday. The panel’s Housing and Insurance Subcommittee will hold a field hearing in New Orleans on Friday on the post-Hurricane Katrina housing recovery.

The Senate Banking Committee will hold a confirmation hearing tomorrow for Adam Szubin, nominated as under secretary of the Treasury for terrorism and financial crimes.