Magazine article American Banker

Regulators Urge House Leaders to Approve Funding for the RTC

Magazine article American Banker

Regulators Urge House Leaders to Approve Funding for the RTC

Article excerpt

WASHINGTON -- On the eve of a scheduled House floor vote, the heads of the four federal banking agencies mounted a new drive to persuade lawmakers to approve funding for failed savings and loans.

"Failure to provide timely funding for the RTC can only undermine confidence in the government's willingness to honor its most solemn promises," the four said, referring to the Resolution Trust Corp.

"Those promises backstop the safety and stability of our entire financial system, and provide incalculable benefits to millions of Americans not directly involved in the thrift cleanup."

Action Expected Today

The letter, signed by the heads of the Federal Reserve Board, the Federal Deposit Insurance Corp., the Office of Thrift Supervision, and the Office of the Comptroller of the Currency, was sent to House Speaker Thomas S. Foley, D-Wash., and Republican leader Robert Michel of Illinois.

The House Rules Committee, which serves as the gatekeeper to the House floor, is scheduled to take up the funding package today, with floor action following.

Although banking committee sources said last week they were confident the long-delayed vote would be held this week, the House leadership remains nervous about the vote count. A defeat would be seen as a setback for the Clinton administration.

Another Warning

The bill approved by the House Banking Committee would free up $18.3 billion in previously authorized money for the RTC, and would make $16 billion available to the infant Savings Association Insurance Fund. …

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