On the recordDecember 2, 2014
I strongly, strongly support Representative Pittenger's Reg D Study Act. Again, as my colleague from Missouri has indicated, this is a technical bill, but it is extremely important. Commentators have argued that the maintenance of these reserves imposes opportunity costs on depository institutions, namely, by requiring them to hold funds in abeyance that could otherwise be lent out, and I think that it is worth GAO studying the issue and reporting back to Congress. I just want to make a point, Mr. Speaker, and to stress this: reserve requirements are separate and distinct from capital requirements, liquidity, and leverage rules, which protect the safety and soundness of the financial system. This bill does not take away those important protections. I reserve the balance of my time.
