The committee heard testimony on methods of restructuring the U.S. banking system. In particular, the committee heard testimony on a plan introduced by Rep. Schumer to make federal deposit insurance available only to "core" banks that would make loans in small amounts and would provide low interest rates on deposits. Riskier financial activities, such as commercial lending, would be conducted by separately financed banking institutions without the protection of Federal deposit insurance. The proposal is intended to reduce the financial strain on the Federal Deposit Insurance Corporation by making the insurance apply only to low-risk financial activities. Mr. Powell said the proposal would only lead to reduced credit to consumers and would result in lessened international competitiveness for American banks. He said approximately $1.5 trillion would be removed from the American banking system under the plan. Mr. Seidman also criticized the plan, saying it amounted to price controls, which never work.