Date: 1982-10-01
Speaker: ST GERMAIN (democrat)
Chamber: H

Mr. Speaker. the report on this legislation was printed delivered to everybodys office this morning. We have had substantial debate on the substance of the legislation during consideration of the rule. The hour is late. The legislation is important. I trust that the Membership will allow me to expedite consideration of this legislation. Mr. Speaker. today. the House is considering a conference report on legislation which represents another milestone in the development of our financial system. For almost two decades the Congress and the public have been debating and studying the statutory and regulatory framework of the Nations financial system. The Hunt Commission report and the Commission on Money and Credit each recommended major changes in the framework within which our depository institutions should operate. The House Banking Committees extensive hearings and report on the "FINE (Financial Institutions in the Nations Economy) Discussion Principles" helped to shape developments which have occurred in the last several Congresses. In the 96th Congress legislation pro. viding a major first step in the process of deregulating the operations of our depository institutions began. That legislation recognized that competition and freedom from governmentally Imposed restraints on the amount of interest depository institutions could pay to their customers was necessary. In doing so. that legislation also provided some flexibility for banks. savings and loans. savings banks. and credit unions to operate with more flexibility on the tsset side of their balance sheets as well. This bill is a further step in that process. During this Congress the House and Senate Banking Committees have held extensive hearings on the matters contained in this legislation. The House has passed several separate bills which are contained in the conference report. These are the Net -"orth Guarantee Act The Deposit Insurance Flexibility Act and the Reserve Rquirements Reform Act of 1982. In addition. the committee during hearings on these bills. on monetary policy. on competition in the marketplace lor deposits. heard witnesses from th. executive departments. the agerules. and the public testify on the .ieed for and description of the powers that depository institutions and the depository institution regulatory agencies need for the years to come. Coming away from those hearings and from our work in producing the bills which came to the House. I am convinced that we must provide the FDIC and the FSLIC with better tools to handle the problems so clearly evident in the financial system today. we must provide banks and thrifts with a deposit instrument which will allow them to compete with uregulated financial institutions and to offer the consumer. the small saver. with a further opportunity to receive a mtarket rate on his deposits. In addition depository institutions must also have more flexibility to generate earnings on the assets side of their balance sheets to be able to pay higher rates on their deposits. This conference reported bill addresses each of these concerns. The House and Senate conferees have met and considered the differences between the two bills and have developed legislation which addresses the real needs of our insuring agencies and of depository institutions both in the short and the long term. The product is a bill supported by the vast maJority of the members of the House and Senate Banking Committees. It is a bill supported by the Federal Reserve Board. the FHLBB. the FDIC. the Comptroller of the Currency. the Department of the Treasury. NCUA. and every trade group affected except the Independent Bankers Association. The administration is fully supportive of this legislation and considers it to be a priority item.