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HOUSE/SENATE CONFEREES AGREE ON BANKING BILL; THANKSGIVING MESSAGE TO IBAA MAIN STREET AMBASSADORS

 HOUSE/SENATE CONFEREES AGREE ON BANKING BILL;
 THANKSGIVING MESSAGE TO IBAA MAIN STREET AMBASSADORS
 WASHINGTON, Nov. 27 /PRNewswire/ -- At 5 a.m. this morning House and Senate conferees agreed on a dramatically scaled down bill recapitalizing FDIC-BIF. With the help of Main Street Coalition members, the IBAA met all of its major policy objectives.
 -- Deposit insurance coverage levels were not cut as proposed earlier this year by the administration and both Banking Committee chairmen.
 -- Nationwide banking and branching, including the Senate's unacceptable opt-out plan, was dropped by the conferees.
 -- Glass-Steagall repeal -- permitting common ownership of commercial banks and securities firms earlier failed, thanks largely to Chairman Dingell.
 -- Administration's proposals to permit commercial firms to buy banks and revamp the regulatory structure to the detriment of independent agencies (FDIC, Fed) were soundly defeated.
 The final legislation is expected to be voted on before Congress adjourns today. The President is expected to sign the bill. The following are highlights of the bill:
 -- BIF recaptialization: $25 billion in Treasury Borrowing authority, $45 billion in working capital to be repaid in 15 years.
 -- Regulatory changes: Early intervention required for undercapitalized institutions. FDIC must use least cost in resolving institutions. New foreign bank regulations.
 -- Too-big-to-fail -- Foreign Deposits: Treasury, the Fed, and the FDIC may invoke too-big-to-fail to deal with "systemic risk.": If foreign deposits are protected the cost will be paid by a special assessment based on assets less capital. This indirectly assesses foreign deposits if they are protected.
 -- State-bank powers: Delaware banks may only underwrite insurance for
in-state customers. Bar to state-bank securities underwriting dropped. Real estate investments must be approved by the FDIC.
 -- Consumer provisions: Credit card rate cap dropped. Truth-in- savings legislation, which IBAA opposed, included.
 -- Appraisals: Deadline for licensing and certification extended to Dec. 31, 1992. GAO to study need for de minimis level for commercial real estate. Appraisal Subcommittee of Federal Financial Institutions Examination Council cannot set de minimis levels.
 The IBAA is the only national trade association which exclusively represents the interests of the nation's community banks.
 -0- 11/27/91
 /CONTACT: Kenneth Guenther of the Independent Bankers Association of America, 202-659-8111/ CO: Independent Bankers Association of America ST: District of Columbia IN: FIN SU: LEG


SB-MH -- DC009 -- 7751 11/27/91 13:03 EST
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Publication:PR Newswire
Date:Nov 27, 1991
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