Magazine article American Banker

Garn Pushes Interstate Rescue Measure; Omnibus Bank Powers Bill to Follow; Senate Passage of Both Sought by June 15

Magazine article American Banker

Garn Pushes Interstate Rescue Measure; Omnibus Bank Powers Bill to Follow; Senate Passage of Both Sought by June 15

Article excerpt

Garn Pushes Interstate Rescue Measure

WASHINGTON -- Senate Banking Committee Chairman Jake Garn late last week introduced legislation drafted by federal regulators that calls for relaxing rules on emergency interstate acquisitions.

Mr. Garn, R-Utah, is aiming for Senate passage by June 15 of the regulators' bill as well as a more ambitious banking powers package, according to M. Danny Wall, Mr. Garnhs chief banking aide.

The interstate bill would permit federal regulators to invite out-of-state bidders for failing banks that have as little as $250 million in assets. Current law requires that banks being acquired have at least $500 million in assets and be closed.

The House Banking Committee begins hearings on the substance of the bill on Thursday. Senate hearings will begin after that, according to Mr. Wall.

Once the regulators' initiative is passed, Mr. Garn will push another and more comprehensive bill, said Mr. Wall. The first part of that bill will authorize recapitalization of the Federal Savings and Loan Insurance Corp. The Federal Home Loan Bank Board is expected to submit a plan next week calling for as much as $10 billion in capital from the 12 Federal Home Loan Banks.

Also part of this broader bill will be Mr. Garn's long-promised omnibus bank powers legislation. Similar legislation passed the Senate in 1984, but stalled in the House.

"We hope to have everything through the Senate by June 15," said Mr. Wall.

Congressional lobbyists are skeptical of the prospects for Mr. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.