    [Public Papers of the Presidents of the United States: George H. W. Bush (1991, Book I)]
    [May 6, 1991]
    [Page 477]
    [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 Senator:)
        As the Committee on Banking, Housing, 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 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.
        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. 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 Senators Donald
                            W. Riegle, Jr., and Jake Garn, chairman and
                            ranking member of the Senate Banking, Housing,
                            and Urban Affairs Committee.