Thank you, Mr. Chairman.

Today, we will be conducting the first of this Committee's hearings; on S. 1405, the Shelby-Mack regulatory relief bill. I am very proud to be an original cosponsor of this legislation.

Banks and thrifts are currently subject to excessive regulatory burdens, which end up hurting the consumer by increasing the costs of financial services. A prime example of this is the current prohibition on interest-bearing business checking accounts.

In response to the massive number of bank failures between 1929 and 1933, Congress included in the Glass-Steagall Act of 1933 a provision that prohibited banks from providing interest on checking accounts. Congress did this because, at the time, it wanted to bolster the solvency of existing banks by reducing the competitive pressures on them. Unfortunately, both consumers and businesses suffered from this price control by not being able to get any return off of the funds kept in their checking accounts.

It was not until 1980, with the Depository Institutions Deregulation and Monetary Control Act, that Congress permitted interest on consumer checking accounts. And finally, after 65 years, the bill that we are reviewing today will end the remaining prohibition on interest on business checking accounts.

Senator Shelby, I commend you for your work, and the work of your staff, on this important and historic piece of legislation. Small businesses across America will benefit if we pass this legislatation this year.

With this in mind, I look forward to hearing from our distinguished witnesses today.

Thank you, Mr. Chairman.

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