Two Key Senators Support Open-Bank Assistance Plan

By Atkinson, Bill | American Banker, March 26, 1992 | Go to article overview

Two Key Senators Support Open-Bank Assistance Plan


Atkinson, Bill, American Banker


WASHINGTON - Two key members of the Senate Banking Committee endorsed on Wednesday's a controversial proposal to use deposit insurance funds for open-bank assistance.

The banking and savings and loan industries also threw their support behind the plan to merge weak institutions - those with capital ratios of 2% to 3% - with healthier ones, even if it amounts to using government funds to rescue some stock- and bondholders.

Sen. Try Sanford, D-N.C., and Sen. Christopher J. Dodd, D-Conn., said the early intervention proposal by T. Timothy Ryan, director of the Office of Thrift Supervision, is less costly to the government than waiting for banks and S&Ls to fail.

Creativity Called for

"The time has clearly come to try some bold, creative new approaches," Sen. Sanford told a packed hearing held by the Thrift Depositor Protection Oversight Board, which would have to approve the policy change.

"It is penny-wise and pound-foolish to reject early resolution out of hand," said Sen. Dodd.

The senators' support is important because, thus far, criticisms of the plan have been prevalent on Capitol Hill, especially among House Banking Committee members. One committee member testifying Wednesday, Rep. James A. Leach, R-Iowa characterized the plan as "social dynamite" and a "risky economic undertaking, with so many philosophical pitfalls."

Financial Groups Supportive

The U.S. League of Savings Institutions, Independent Bankers Association of Bank Holding Companies all said the early resolution plan would be a less costly way for regulators to deal with troubled institutions.

"This program could be effective and productive for all-sized financial institutions. …

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
  • A full archive of books and articles related to this one
  • 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

Two Key Senators Support Open-Bank Assistance Plan
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?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    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

    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.