[Congressional Record Volume 145, Number 157 (Tuesday, November 9, 1999)]
[Extensions of Remarks]
[Page E2315]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                FICO ASSESSMENT ELIMINATION ACT OF 1999

                                 ______
                                 

                          HON. FRANK D. LUCAS

                              of oklahoma

                    in the house of representatives

                       Tuesday, November 9, 1999

  Mr. LUCAS of Oklahoma. Mr. Speaker, I rise today as a member of the 
Banking Committee having just introduced a bill that will infuse $780 
million annually into our economy. The FICO Assessment Elimination Act 
of 1999 will eliminate an assessment on banks and thrifts that is no 
longer necessary.
  My legislation will eliminate FICO assessments for all financial 
institutions that are insured by either the Bank Insurance Fund or the 
Savings Association Insurance Fund. Under current law, banks and 
thrifts are assessed in order to pay obligations on bonds issued by the 
Financing Corporation in the last 80's.
  Currently, the Bank Insurance Fund and Savings Association Insurance 
Fund are overcapitalized. There is far more money in these accounts 
than is needed to insure the safety of the institutions they safeguard. 
Moreover, these funds have been invested in Government bonds and 
generate approximately $2 billion in interest earnings every year.
  I propose that we use this excess income and reserve level in FDIC 
funds to pay for the interest due on FICO bonds, and eliminating the 
FDIC assessment on banks and thrifts completely. I see no reason to 
charge these institutions $780 million a year when we have a fund that 
is growing in far excess of what we need to maintain prudential 
reserves.
  Just imagine what that $780 million accomplish in each of our 
communities. It is estimated that my bill would make $10 billion of 
credit available next year. This is $10 billion of new credit that 
would be available for banks and thrifts to lend. This is money that 
our financial institutions could lend to a first time home buyer or an 
individual interested in starting a small business. The opportunities 
this money could provide are endless.
  Put this $780 million to work in your community. Support the FICO 
Assessment Elimination Act of 1999.

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