[Congressional Record Volume 143, Number 17 (Tuesday, February 11, 1997)]
[Extensions of Remarks]
[Pages E217-E218]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             DEPOSITORY INSTITUTION AFFILIATION ACT OF 1997

                                 ______
                                 

                         HON. RICHARD H. BAKER

                              of louisiana

                    in the house of representatives

                       Tuesday, February 11, 1997

  Mr. BAKER. Mr. Speaker, today I am introducing the Depository 
Institution Affiliation Act of 1997, which is legislation designed to 
enhance the competitiveness of our financial services sector in 
preparation for the 21st century. This legislation is similar to H.R. 
814 which I introduced in the 104th Congress. I am pleased to introduce 
this legislation again in the 105th Congress. It is my hope that our 
efforts this year will be successful in framing the debate on financial 
services modernization.
  Senator Alfonse D'Amato, chairman of the Senate Banking, Housing, and 
Urban Affairs Committee, is also joining me in introducing similar 
legislation in the Senate today. Senator D'Amato and I share both a 
belief in the merits of this approach, and a commitment to pass 
financial modernization during this Congress.
  I want to make it clear that I am totally committed to passage of the 
most far-reaching financial modernization package possible in the 105th 
Congress. The introduction of the Depository Institution Affiliations 
Act of 1997 signals that I am committed to an approach that allows for 
the broadest possible reforms and recognizes the reality of the current 
marketplace. This reality is that today's dynamic financial marketplace 
is being ill-served by the

[[Page E218]]

artificial and arbitrary market segmentation that is at best 
anachronistic, and at worst anticompetitive and economically harmful. 
If financial modernization indeed is broad in scope, then American 
consumers will benefit by improved competition, more available 
services, and more rapid technological innovation in the marketplace. 
This modernization must be crafted in a manner that gives consumers the 
certainty that their financial services are provided within a safe and 
sound framework.
  At this unique point in time, we have an historic opportunity to 
achieve fundamental reforms in our Nation's financial services 
structure. That opportunity must not be squandered by leaving in place 
significant barriers in the market that will undoubtedly prove to be 
shortsighted. The restructuring of the financial services sector should 
recognize the market's evolution to date, and provide for market 
innovations to continue well into the future in a safe and sound 
manner.
  The legislation I offer today is virtually identical to that 
legislation I sponsored last Congress with significant bipartisan 
support. As we move ahead toward the goal of modernization, I fully 
anticipate garnering wide bipartisan support for my approach. In the 
coming months, as the administration grows more engaged on this issue, 
it will be essential to develop a bipartisan approach to financial 
services modernization.
  I believe this legislation is a good starting point for developing 
just such a bipartisan consensus in this modernization debate. The 
Depository Institution Affiliation Act also serves as my personal 
starting point on this issue in the 105th Congress, as I plan to hold 
hearings and introduce additional legislation in the coming months. The 
House Banking Committee should have before it all the available options 
in addressing the difficult issues posed by financial services 
modernization.
  I want to commend my colleague, chairman of the House Banking 
Committee, Jim Leach for his commitment and leadership in pushing for 
early action on financial modernization in the 105th Congress. I look 
forward to participating in all hearings the House Banking Committee 
will hold on this important issue.
  As chairman of the Subcommittee on Capital Markets, GSE's, and 
Securities, I plan to hold hearings that deal with two issues I believe 
are very important in this debate: the issue of allowing banking and 
commerce to mix; and the proper scope of holding company regulation. I 
believe that putting together an effective consensus on these two 
issues will be the key to successful passage of a financial 
modernization package. Mr. Speaker, I look forward to working with you 
and all Members of the House in order to bring real reforms to our 
Nation's financial marketplace.

                          ____________________