Date: 1986-09-16
Speaker: SIT GERMAIN (democrat)
Chamber: H

Mr. .Speaker. it is essential that we rmove inporlant banking and coosumer legislation before this 99th Congress adjourns. .Today. 4 have issued .a release announcing a plan for packaging "must" items and. 11xpefufly. moving them -to finl enactment .Mr. Speaker. a cqpy f the news irelease .follows: xWasammm. DiC. Smzrrum lIn an attempt to break the .deadlock on lbankilng and consumer measuresChairanm Fmmand 3. :St Garmain announced loday be would ask his Committee to consider an omnibus paclage of -must- legislation In a markup session .on Tuesday. September 23. He said -he iwould attempt to anove the legislation (to theSenate In time for =ction before le end of the 99th Congress. "If this effort to salvage .essentl legislation is to be successful .it afill require The tcooperationsome give And takeon kthe part of everyonethe 1Members of the Bankring Committee. the Rules Committee. the Reagan Administration and tbhe House -and Senate." Mr.St Germaenwarne .2 t 1M be a true test of the CongresE ablrity to overcome the nanw Interests of the warous lnancial lobbyists." Mr. St Germain said It would be his Jntention that the onibus package Iclude the regulators bill and the FSLIC xecapltalization bill as proposed by the Administration rd amended by the Flnandal Institutions Subcommittee. the checdthold bill -passed by The Mouse in J= iar the Truth in SavJngs Art includirg -credit card disclosure as rePorted -by ithe ..inancial Institutions .Subcommittee. legislation to upgrade financial examination staffs .as reported -by the Committee and a modified version of the nonbank bank legislation reported by the Committee In June of 1.985. He said he aso .planned to confer with House Subcomrritte C airn EHenrF 1B. Gon aez about the possibility tof nclluding HIR. L the mniu -housing tblU passed by the House in July. "I am fully aware that ILR. 20the nonbank bank legislationhas generated -ontroversy. and in the spirit of cooperation. I will recommend that the measure be -sharply narrowed to cover only .the )nonbank loophole for ommerdia banks.- the Banking Chairman said. "The iBafking Committee contended the mesre brhuld Tbe broader. but the P.nes Committee tas inot agreed and has refused for the past 15 monilhs to move ithe legislation to the fioor. .I] propose this compromise and hope (hat this action will generate an (equal spirit of .conpromise on the part of the Rules Committee and the Reagan Administration." *Mr. St Germain said he "Jeels strongly" that the unregulated bolding companies wvvih own .nontbnk .commercial banks pose a p6tentially "sertious ithreat -to bank safety and oundness and sa futther drain on the federal depository insurance xystvm" The Banking Committee Chairman said it is important that the Faderal Linancial supervisors .have the powers and the regulatory fleibility .encompassed by the.socalled "regulators bill" and the FSLIC recapitalizatilon legislation. "As the orlginal !sponsor of the GainSt Genrniin regultary rescue package cf :1982. I have long xecognized the need for ithe agencies to have ithe power to take extraordinary iteps to prevent failing institutions from dragging down the financial system and the insurance funds." benoted. M. St .Germain said. however. thatit was "absolutdly necessary" for ithe Congress to .recognize the equally waaid olaims of consumers fr basic Tghts in tie inancial sueretplace." tt .is morally wmng and politIcalLy foolish to ask the American consumer to hold the safety net for finaxaAl- institUtions and refuse to Tequire banks to perform properly In advertising lhe rates on savings amounts and credit cards and to give cuStomers timely access to their own deposits." Mr. St Germain said. "So let it be clearly under.stood that imy imove is as much to save needed consumer legislation is it Is to save financial institutions I.ramdisaster2" Mr. St Germain sald he hoped that the Members of the Banking Committee ould recognize the time constraints and limit amendments since all 1he legislation has previongly been tconside..d n the Cmumittee. and insome (cases by the House. "If the Members truly want legislation and are willing to cooperate. we can move this package quickly and fhen seek the co.operation of the Rules Committee. the full House. and the. Senste.- M. St .Germain sald. "I have no llusions. It will be a tough go. butI am covinced we mnt make the effort to move tls essential lgislation." Mr. St Germain -said he .was asking .Secretary of the Treasury James Baker. and the Federal .supervisory officiais Land others In the Administration "to lend their support nd urge cooperation lrm the Republicans -in both the House and Senate." "hs Is a plea for help for a ipadkage of legislation that its crLtically needed and -which balarces the Interests of 1inancial institutions and consumers." Mr. St Germain said.