HR146-119

2. Prohibition on payment of earnings on surplus reserves Section 19(b)(12) of the Federal Reserve Act (12 U.S.C. 461(b)(12)) is amended— in the heading, by inserting required reserve before balances; in subparagraph (A), by inserting after Balances the following: of reserves required to be maintained by a depository institution under paragraph (2) that are; by redesignating subparagraph (C) as subparagraph (D); and by inserting after subparagraph (B) the following: A Federal reserve bank may not pay earnings on balances maintained at a Federal reserve bank by or on behalf of a depository institution except as provided under this paragraph. (C)Prohibition on other earningsA Federal reserve bank may not pay earnings on balances maintained at a Federal reserve bank by or on behalf of a depository institution except as provided under this paragraph..