James A. Leach: “first let me just congratulate particularly the chairman of the subcommittee of jurisdiction, the gentleman from North…”

“first let me just congratulate particularly the chairman of the subcommittee of jurisdiction, the gentleman from North Carolina [Mr. Neal]. This is a crowning achievement in his glorious career here. Also I want to congratulate my ranking member of the subcommittee, the gentleman from Florida [Mr. McCollum]. As people may not know, on the Committee on Banking, Finance and Urban Affairs, I am somewhat reluctant about this approach, but I am kind of a 19th century mentality when it comes to some aspects of banking, and this is a 21st century bill. In any case, there are a lot of changes that have occurred in the banking system both in terms of law as well as in picture, and it is probably about the appropriate time for Congress to recognize that these changes are taking place. Let me just say from a consumer point of view, I am pleased that the leaders on this particular issue have included a provision that I have long been identified with, and that is a prohibition against what I call deposit production offices to ensure that larger interstate banks simply do not go into States and try to sweep deposits without a concomitant loan obligation in the areas in which those offices might be. This section requires a branch, owned by an out-of-State bank, to make at least 50 percent of the loans that its in-State peers are making, in the host State. If the number of loans falls below this level, the branch has to be closed.”