Statement no. 73 additional comment on deposit insurance reform legislation

• Book ID: 104626215
• Publisher: Springer
• Year: 1992
• Tongue: English
• Weight: 51 KB
• Volume: 5
• Category: Article
• ISSN: 0920-8550
• DOI: 10.1007/bf00115325

✦ Synopsis

On May 20, 1991, in Policy Statement No. 70, the Shadow Financial Regulatory Committee generally supported H.R. 2094, a bill that provides for funding the Bank Insurance Fund (BIF) and deposit insurance reform through structured early intervention and resolution. This legislation appears to be stalling in Congress, as various lobbying interests battle over provisions of the bill that affect bank operating powers, in particular, securities and insurance, as well as geographic expansion.

In addition, various misguided schemes that would radically restrict the activities that may be performed by an insured commercial bank confuse the process even more. One of these plans--the Schumer proposal--would even reimpose ceilings on deposit interest rates.

Since the Committee's inception over five years ago, it has urged deposit insurance reform. (