mr. chairman , i rise in opposition to the leach amendment . 
h.r. 1461 clearly stipulates that the new regulator for fannie , freddie , and the home loan banks has the authority to increase the minimum capital levels `` to the extent needed to ensure that the regulated entities operate in a safe and sound manner. '' this is a broad grant of authority to this new regulator . 
the leach amendment , however , begins to limit the discretion of the regulator by adding several competitive issues in the determination of the minimum capital . 
the leach amendment would effectively establish minimum capital at an arbitrary decision , by equating that to banks . 
let us be very clear that these entities are not banks . 
one of the things that we need to make sure of is that if we are going to form a world-class regulator for these entities and that we are going to put in place people to manage that process and to regulate these entities , we need to give them the discretion that they need to make sure that as they set those capital levels that they are considering the economy , the state of the markets at that particular time , and have the ability to regulate to those entities and not try to make those entities something that they are not , and these entities are not banks . 
the gentleman 's amendment does not do anything to increase the safeness and the soundness of these institutions . 
by the very fact that the regulators will have the ability to do that , set those minimum capital levels at a level that they need to be , gives them the flexibility to do that . 
and so i would urge members to vote against the leach amendment . 
