Increasing Shareholder Threshold for SEC Registration

Floor Speech

Mrs. CAPITO. I thank the chairman of the committee, for recognizing me.

I would like to speak in support of the gentleman from Connecticut's legislation, H.R. 1965, which would amend the securities law to establish certain thresholds for shareholder registration.

We all recognize that capital is tight for lenders and for businesses, and this bill, along with several others that were passed out of the Financial Services Committee, will address the issue of capital formation and allow institutions much needed resources to stimulate our economy. More capital equals more jobs, equals more people back to work, equals a growing economy.

Cost of public companies to register with the SEC can be very, very burdensome, and this cost is augmented when it's applied to smaller institutions. They don't have the resources to be able to meet the demands that larger companies do. So this bill would allow banks and bank holding companies access to more capital for that very precious and much needed impetus of job creation.

By raising the threshold from 500 to 2,000, it would permit easier deregistration, and the expenses that are tied up with registering would then go to stimulating our economy. More lending, more lending for a florist, a restaurant. I noticed in Charleston, a long-time restaurant that had been out of business was reopened under new ownership just this morning. And that's good news, and that's the kind of capital that small businesses need to be able to create jobs and stimulate the economy.

I believe this is a good piece of legislation whose effect on the economy will far outweigh any risks that it could propose, and I heartily endorse the gentleman from Connecticut's legislation, H.R. 1965.

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