[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.