    [Public Papers of the Presidents of the United States: George H. W. Bush (1991, Book I)]
    [May 6, 1991]
    [Pages 477-478]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Letter to Congressional Leaders on Banking Reform Legislation
    May 6, 1991

    Dear Mr. Chairman: (Dear Representative:)
        As the Committee on Banking, Finance and Urban Affairs moves forward
    with legislation addressing banking reform, let me reiterate my strong
    support for the Administration's proposal to modernize the Nation's
    financial system. I applaud your Committee's bipartisan decision to use
    this comprehensive proposal as the foundation for Committee action
    before the end of June. My Administration stands ready to work closely
    with you in every stage of this process.
        I believe the time has come to address the fundamental problems of
    our banking system. We must have a comprehensive legislative solution to
    fuel economic growth through stronger, more competitive banks--ones that
    are better able to lend to customers in good times and bad. Without
    comprehensive reform the economy is exposed to the potential of future
    credit crunches. This is why the Administration has proposed such broad-
    based reforms.
        The decision of your Committee to reject

    [[Page 478]]

    a much more narrow approach was the right one. A bill that would merely
    recapitalize the Bank Insurance Fund and make minor changes to the law
    would be shortsighted. We must fix the fundamental problems in the
    banking industry, not just fund them. If the Congress fails to adopt a
    broad-based solution along the lines I have suggested, we may have to
    face another recapitalization of the insurance fund. This additional
    exposure of the Bank Insurance Fund imposes risks on savers and
    taxpayers that no one can seriously desire.
        We have taken the first step toward comprehensive reform by laying a
    broad-based proposal before the Congress. You have taken the second step
    by agreeing to take up this proposal in your Committee. Let us now work
    together to craft the broad banking reform legislation that this country
    needs.
        Sincerely,

                                                                 George Bush

                        Note: Identical letters were sent to Representatives
                            Henry B. Gonzalez and Chalmers P. Wylie,
                            chairman and ranking member of the House
                            Banking, Finance and Urban Affairs Committee;
                            and Frank Annunzio, chairman of the Financial
                            Institutions Supervision, Regulation, and
                            Insurance Subcommittee.