Newspaper article THE JOURNAL RECORD

Bidding, Reciprocity Revisions Proposed / for Interstate Banking

Newspaper article THE JOURNAL RECORD

Bidding, Reciprocity Revisions Proposed / for Interstate Banking

Article excerpt

A unified bidding process and a stricter reciprocity provision were being considered Wednesday in a new draft of the propos ed interstate banking bill, Rep. Benny Vanatta said Wednesday.

The proposed revisions in the bill apparently will delay its introduction - expected today - until Monday, according to Vanatta, D-Sapulpa, chairman of the House Banking and Finance Committee.

Lawyers and lobbyists for the Oklahoma Bankers Association, Liberty National Bank & Trust Co. of Oklahoma City and Bank of Oklahoma Inc. also spent most of Wednesday poring over copies of the latest draft of the bill.

"We want to make sure we get it right," Vanatta said.

Meanwhile on Wednesday, Missouri Gov. John Ashcroft signed into law a regional reciprocal banking act that goes into effect Aug. 13.

The basic thrust of Oklahoma's proposed interstate banking bill remains the same: to provide an immediate effective date for interstate acquisition of failed or failing banks and purchases of healthy banks by July 1, 1987.

"None of these revisions are deal-breakers," said Robert Harris, executive vice president of the Oklahoma Bankers Association.

Harris and Laura Pringle, the Oklahoma Bankers' leading spokesmen, declined comment Wednesday on the latest draft, except to say:

"It's our position that the two-tiered bidding on failed banks makes sense."

But some bankers are concerned about the two-tiered bidding process for failed banks, required in the bill's original draft, which was released Monday, Vanatta said.

"There's a lot of concern about letting Oklahoma banks bid first," Vanatta said.

"We'd like to hang on to that, if we could," he said.

The original version of the bill requires the solicitation of bids exclusively from Oklahoma banking interests, individuals or groups.

If those bidders do not meet minimum bid requirements, then the Federal Deposit Insurance Corp. shall extend the bid solicitation to qualified out-of-state bank holding companies, the bill's original draft said.

Oklahoma banking interests are then given the opportunity to match the out-of-state bank's bid, under the original proposal.

"Some think that two-step bidding process is too slow, especially when you consider that we normally close a bank on a Friday and try to re-open it under a new owner by Monday," Vanatta said.

The alternative, proposed in the draft reviewed Wednesday, is to solicit bids simultaneously from Oklahoma and out-of-state banking interests, Vanatta said.

"It would be a unified bidding procedure," Vanatta said. …

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