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STATEMENT BY BRUCE A. MORRISON

ON INTRODUCTION OF S. 1423

I strongly commend and thank Senator Chuck Hagel of Nebraska for his introduction of S. 1423, which contains provisions removing problems and inefficiencies in the structures of the FHLBanks. These provisions, which build constructively on the FHLBank amendments contained in H.R. 10, indicate increasing consensus in both houses of Congress to act on reforms that will enable the System to meet the needs of its members in the 21st century.

I am particularly pleased with provisions that would ease membership requirements for smaller institutions and allow them wider use of FHLBank System advances. The proposed legislation acknowledges the difficulty that many community institutions have experienced in recent years in funding their assets with local deposits. It recognizes the inherent strength of the System to empower these institutions to continue to serve their communities in housing and community investment finance.

I urge both the House and the Senate Banking Committee Chairs to move these FHLBank provisions promptly, and separately from H.R. 10.

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