[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.