[Congressional Record Volume 146, Number 26 (Thursday, March 9, 2000)]
[Extensions of Remarks]
[Page E266]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     INTRODUCTION OF THE DEPOSIT INSURANCE FUNDS MERGER ACT OF 2000

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                          HON. JOHN J. LaFALCE

                              of new york

                    in the house of representatives

                        Thursday, March 9, 2000

  Mr. LaFALCE. Mr. Speaker, today I join my colleagues, the Chair of 
the Financial Institutions Subcommittee of the Banking Committee, Marge 
Roukema, in introducing the Deposit Insurance Funds Merger Act of 2000. 
I would like to thank Congresswoman Roukema for her leadership in 
putting forward this timely legislation.
  I believe the merger of the Bank Insurance Fund (BIF) and Savings 
Association Insurance Fund (SAIF) is a matter of substantial public 
policy importance that should be addressed on its independent merits. A 
merger of the BIF and SAIF would clearly benefit the deposit insurance 
system by creating a single, more diversified fund that is less 
vulnerable to regional economic problems. In addition, a merger of the 
funds would more accurately reflect the reality of today's financial 
services industry, in which 46 percent of the SAIF deposits are held by 
commercial banks and FDIC-regulated state savings banks. In fact, the 
funds have lost their independent identities, and we should rationalize 
their structure. Both industries should support the change as bringing 
needed rationality and stability to the deposit insurance funds.
  The merger of the funds is an issue that I therefore believe merits 
independent consideration and Congressional action in the near term.
  I look forward to working closely with my colleagues on this very 
critical issue.

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