"And If Elected, I Promise..."

Newswatchers tell us that the banking industry may be in for a hard time during the coming sessions of Congress this fall and winter.

Congress will be in Washington only until early October, and then lawmakers will go home for fall election campaigns.

When they return in November for what is commonly known as a "lame duck" session, it will be "safe" for them to work on controversial issues.

The importance of this session to the banking industry becomes apparent when we realize some of the issues they may consider.

They may have the inclination to tackle such things as mandatory check cashing; providing low-cost services for the poor; reducing the current coverage to less than $100,000 per account; eliminating mortgage interest as a deduction; and allowing another increase by FDIC for insurance premiums. One proposal to be considered is to provide only a limited amount of insurance to depositors, and requiring the individual to pay for additional coverage on their deposits if they want it.

Also on the agenda for definite consideration by Congress are provisions giving broader powers to law enforcement in the prosecution of money laundering, a Truth-in-Savings law and proposals regarding crime penalties which could affect directors as well as officers of financial institutions.

This is not going to be an easy time for people in the banking industry...but I didn't have to tell you that, did I?

Copyright © 1990 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 1, No. 9, 9/90