Bush Task Group Statement

American Banker, February 2, 1984 | Go to article overview

Bush Task Group Statement


The Task Group on Regulation of Financial Services, chaired by Vice President George Bush, with Treasury Secretary Donald Regan as vice chairman, today unanimously endorsed a proposal to substantially reorganize the federal agencies that regulate commercial banks.

The proposal adopted by the task group, whose members include the heads of all seven federal financial regulatory agencies, would constitute a sweeping revision of the federal regulatory system for commercial banks. The proposal would strengthen the current supervisory system, while greatly simplifying and streamlining compliance burdens for regulated firms.

While none of the existing agencies would be eliminated, the proposal would substantially revise the current allocations of authorities among the three federal agencies that currently regulate banks and significantly reduce overlap and duplication.

The task group's proposed revision of the federal financial regulatory system is also designed to complement the legislation proposed by the administration (currently incorporated in omnibus legislation introduced by Sen. Jake Garn, R-Utah) concerning broadened powers and services for holding companies of depository institutions and simplified procedures under the Bank Holding Company Act. 'The Most Comprehensive Revision'

Vice President George Bush told the task group at its final session:

"Taken as a whole, the task group's regulatory proposals, together with the administration's pending legislation concerning product deregulation, would represent the most comprehensive revision of federal law affecting financial institutions in the last 50 years. This comprehensive reform would significantly benefit the public by reducing unnecessary waste and inefficiency, encouraging innovation and competition, and putting the overall regulatory structure in a position to protect the integrity and stability of financial markets over the coming decades."

The task group's recommendations call for the creation of a new agency, the Federal Banking Agency, within the Treasury Department, with the current Office of the Comptroller of the Currency as its nucleus. The Federal Banking Agency would be responsible for regulating all national banks, with approximately 60% of aggregate U.S. bank deposits.

In addition, the Federal Banking Agency would assume from the Federal Reserve Board the authority to regulate the holding companies of all national banks, except for a limited number of the very largest institutions whose holding companies would remain subject as they are today to board superivision. This would include approximately 35 holding companies of national banks among such firms. Responsibility for Definitions

Another significant proposal adopted by the task group would fundamentally alter the responsibility for defining and interpreting the nonbanking activities that bank holding companies can engage in under applicable legislation. This responsibility is currently exercised solely by the board.

Under the new system, the board's current authority to define permissible nonbanking activities would be transferred entirely to the Federal Banking Agency, which would exercise such responsibilities for all bank holding companies in the United States.

The board could disapprove regulations of the Federal Banking Agency that establish or implement the so-called laundry list of permitted activities but only if the board of governors determined by a 2/3 vote that any such activity would be likely to undermine the stability of the entire U.S. banking system or have a seriously adverse effect on safe and sound financial practices.

Proposals to streamline regulatory procedures for bank holding companies as currently included in the administration's proposed Financial Institutions Deregulation Act were also endorsed and recommended by the task group. Fed Member-Bank Duties Unchanged

Under the proposal, the board, which previously was responsible for federal regulation of more than 1,000 state-chartered member banks and all of the approximately 5,000 U. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Bush Task Group Statement
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.