The subcommittee heard testimony on banking reform proposals, and the possible effects of the proposals on bank depositors. Banking reform measures included legislation that would allow stable banking institutions to offer new financial products to consumers, such as insurance services or money-market funds, and legislation that would allow large branching systems for well capitalized banks. Items cited by the U.S. Treasury that directly affect banking consumers included a federal banking insurance program that would be less apt to use taxpayers' money to cover deposits in failed banking institutions, a larger choice of financial products and added convenience for bank patrons, and lower interest rates and improved credit for consumers and communities. Consumer representatives showed concern over the possibility that overseas banks could use loosened bank branching laws to acquire a large part of American banking capital, which may have far-ranging effects on credit. Comparisons were drawn between the deregulation of the savings and loan industry and the stated goals of the banking legislation. The testimony was marked with sharp exchanges between consumer advocates and Rep. Barnard, who supported the Treasury’s legislation.