[Congressional Record Volume 141, Number 146 (Tuesday, September 19, 1995)]
[Extensions of Remarks]
[Page E1810]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     INTRODUCTION OF BIF/SAIF BILL

                                 ______


                           HON. MARGE ROUKEMA

                             of new jersey

                    in the house of representatives

                       Tuesday, September 19, 1995

  Mrs. ROUKEMA. Mr. Speaker, today, I, together with my colleagues are 
introducing legislation that will have a monumental impact on the 
financial services industry. Its purpose is to provide a comprehensive 
reform of the deposit insurance funds and will merge the bank and 
thrift charters. This BIF/SAIF legislation reflects the hard work of a 
bipartisan working group of the Financial Institutions Subcommittee, 
which I chair, that was developed over the last several months.
  Since the spring, the subcommittee has held three hearings on BIF/
SAIF. The last of these hearings brought forth strong support for a 
comprehensive approach to the problem, which this legislation being 
marked up today represents.
  In brief, the legislation provides a financial solution to the 
problem of the insurance funds similar to that proposed by the 
administration. It recapitalizes the SAIF and through the use of a one-
time special assessment of SAIF members. It spreads the FICO costs 
proportionately among all members of the FDIC as of the date of 
enactment. In addition, it merges the BIF/SAIF.
  What is critical here, is that it goes beyond the administration-
sponsored financial fix and merges the bank and thrift charters on 
January 1, 1998, requiring thrifts to convert to banks. It tackles the 
complex tax treatment of bad debt reserves by advocating a fresh start 
approach, to avoid giving thrifts another lump sum obligation that 
would amount to billions of dollars. Finally, it provides for refunds 
for FDIC funds in excess of the designated reserve ratio.
  It is my intention, given the requirements of the reconciliation 
process as determined by Banking Committee Chairman Leach, that the 
movement of the BIF/SAIF legislation will be a two-track process. A 
markup of a similar provision in the Full Committee's markup of its 
budget reconciliation package is based on staff recommendations and is 
revenue-driven. My legislation will move in regular order and is based 
solely on crafting good public policy. In this regard, it is my 
commitment to continue to refine this legislation through a markup at 
subcommittee and hopefully at the full committee as it moves through 
the process in regular order to insure that there is a final