Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
323150644
label
Savings and Loan Signing 8/9/89
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
323150644
contentType
document
title
Savings and Loan Signing 8/9/89
citationUrl
identifierLocal
13500-001
collections
Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Speech Draft Files
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
323150644
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
a251f3f3516744bc
ocrText
Originally Processed With FOIA(s):
FOIA Number:
S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Speechwriting, White House Office of
Series:
Speech File Draft Files
Subseries:
Chron File, 1989-1993
OA/ID Number:
13500
Folder ID Number:
13500-001
Folder Title:
Savings and Loan Signing 8/9/89
Stack:
Row:
Section:
Shelf:
Position:
G
25
6
4
6
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
August 9, 1989
REMARKS BY THE PRESIDENT
AT SAVINGS & LOAN SIGNING CEREMONY
The Rose Garden
10:49 A.M. EDT
THE PRESIDENT: Thank you all for coming. Well, the
Secretary Brady and Secretary Jack Kemp, Chairman Greenspan,
Senators Riegle and Gramm and Congressmen Wylie and Gonzalez and
other distinguished members of the House and Senate, ladies and
gentlemen, and friends.
Thomas Jefferson once observed that "the care of human
legitimate object of good government."
life and happiness, and not their destruction, is the first and only
And today, we gather here to sign legislation -- the
which reaffirms those words.
Financial Institutions Reform, Recovery, and Enforcement Act of 1989,
our savings and loan industry. It'll safeguard and stabilize
This legislation comes to grips with the problems facing
America's financial system. And put in place permanent reforms so
these problems will never happen again.
And moreover, it says to tens of millions of S&L
depositors: "You will not be the victim of others' mistakes. We
will see -- guarantee -- that your insured deposits are secure.'
And this, of course, was government's intent when in 1933
it created the Federal Deposit Insurance. And yet as that system
incurred massive loans over the past couple of decades, the fund
designed to protect depositors itself became insolvent.
And the crisis has been told and re-told. The federal
insurance fund was unable to make good on its commitments to the
public, or to close insolvent institutions. And their losses
mounting, operating. hundreds of bankrupt institutions were allowed to continue
On February 6, I announced a plan to change all that. To
protect insured depositors. And to responsibly finance the closing
or other resolution of all insolvent institutions. And we sought to
abolish lax regulations; to increase penalties for wrongdoing; and to
reform the financial system. And above all, we sought to protect
those obligations. who have relied on government to faithfully fulfill its
I take a special pleasure in the historic legislation
that I will sign here this morning. For the Task Group on Regulation
of Financial Services, which I was proud to chair, began the effort
to strengthen our financial system. And its work, and that of many
others was debated and refined by the United States Congress. Änd
you see it here -- all 371 pages of it -- and no, the bill is not
public confidence. H.R. 1278 is responsive and responsible. And for
perfect, but it is a first step -- a crucial step toward restoring
that I salute the Congress. This bill balances America's need for
financial security, competitiveness and equity.
In particular, I want to thank two committee chairmen --
Senator Don Riegle and Representative Henry B. Gonzalez, here with us
today -- for their superb leadership in an extraordinarily difficult
MORE
- 2 -
proceedings. And they were aided by Senator Jake Garn and
Representative Chalmers Wylie, who helped make these proposals a
reality. And, of course, Senator Phil Gramm who I mentioned earlier.
And numerous other members of the banking and other committees, from
both interest. sides of the aisle, who took up the cause of the public's
And then there's my friend, the Treasury Secretary, Nick
Brady, whose dedicated efforts have been vital and whose leadership
has been truly outstanding. And so have those of Director Dick
Darman, over here, the head of the OMB. I'd also like to mention
Richard Breeden of the White House. I'd be remiss not to salute
hundreds of others on the staffs of the various regulatory agencies
and congressional committees. They, too, deserve our thanks.
And because of them, of you here today, and so many
others, this legislation will give us the tools to make our thrift
institutions and our financial system as a whole strong and stable.
With this bill's substantial funding, we will begin -- here, and now
-- to eliminate the ongoing losses of the insolvent firms. And to
depositor. ensure that not one dollar of insured funds will be lost by any
Toward that end, this legislation abolishes the agency
once responsible for thrift supervision. And in its place a new
agency will operate as part of the Treasury Department -- ensuring
the taxpayers' interests will always come first.
And at the same time, a completely new insurance fund
will protect deposits in thrift institutions. The obligations of the
new fund -- called Savings Association Insurance Fund SAIF will
be fully guaranteed by the full faith and credit of the United
States. The new seal displayed here symbolizes this new fund and our
commitment to protecting depositors.
Good steps? I'd say vital steps. And this legislation
goes still further.
Beginning today, penalties for wrongdoing by officers and
directors of insured institutions will be increased up to $1 million
per day. And criminal penalties will be toughened from yesterday's
slap on the wrist to the clang of a prison door. Those who try and
loot the savings of their fellow citizens deserve, and will receive,
swift and severe punishment.
And also, starting today, tougher requirements for safe
and sound operating practices will begin to take effect. Never again
will America allow any insured institution to operate normally if
owners lack sufficient tangible capital to protect depositors and
taxpayers alike. And today, too, we begin using the new resources
available to accelerate the resolution of failed institutions, and to
recover every possible dollar from their assets for the taxpayer.
And at the same time, we will seek to minimize adverse impact on
local markets.
These reforms will help our system right itself. For
while the S&L crisis isn't behind us, we have met -- and passed --
our first critical test. More hard choices, more challenges lie
ahead. But we will meet them as we have this challenge --
consulting, cooperating, between Congress and the Executive Branch.
And as we do, we will keep the new Federal Deposit
Insurance System solvent, and help serve those millions of small
savers who make America great: The local paperboy looking ahead to
college or the young couple dreaming of their first home; the retired
teacher whose savings are her entire lifetime. We have a commitment
to protect the savings of these Americans and millions like them
across this country. And we will honor that commitment.
And SO together Republicans and Democrats -- we can
MORE
- 3 -
keep America's economy number one in the world. We can and will
preserve a safe, efficient, and equitable financial system for
ourselves and, yes, for our kids.
So, thank you all very much for coming here and for your
support, both past and future, because plenty of work lies ahead.
Thank you all very much and now, I'm proud to sign this monster.
(Applause.)
END
11:58 A.M. EDT
Document No.
061617
WHITE HOUSE STAFFING MEMORANDUM
DATE: 08/08/89
ACTION/CONCURRENCE/COMMENT DUE BY:
SUBJECT: PRESIDENTIAL REMARKS: SAVINGS & LOAN SIGNING
(08/08 draft four)
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
BREEDEN
ROGERS
CARD
PINKERTON
CICCONI
WINSTON
BOSKIN
DEMAREST
FITZWATER
GRAY
HAGIN
REMARKS:
The attached has been forwarded to the President.
RESPONSE:
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
THE WHITE HOUSE
WASHINGTON
1989 AUG Pil 8.
August 8, 1989
INFORMATION
MEMORANDUM FOR THE PRESIDENT
THROUGH:
CHRISS WINSTON
FROM:
CURT SMITH
as
SUBJECT:
SAVINGS AND LOAN BILL SIGNING
I. SUMMARY
On Wednesday, August 9, at 10:45 a.m., you will address
about 220 people in the Rose Garden. The occasion is the signing
of the "Financial Institutions Reform, Recovery, and Enforcement
Act of 1989. " Among those flanking you on the dais will be
Secretary Brady, Senator Riegle, Congressmen Wylie and Gonzalez,
and Richard Darman.
II. DISCUSSION
The attached remarks (8 minutes; no teleprompter) discuss
the specific aspects and objectives of this legislation. They
focus on how the bill will safeguard and stabilize America's
financial system, and protect America's small savers.
(Smith/Martin)
Draft Four
August 8, 1989
S&L
PRESIDENTIAL REMARKS: SAVINGS & LOAN SIGNING
ROSE GARDEN
WEDNESDAY, AUGUST 9, 1989
10:45 A.M.
Secretary Brady, Director Darman, Senators Riegle and Gramm,
Congressmen Wylie and Gonzalez, Other members of the House and
Senate, Ladies and gentlemen, Friends.
Thomas Jefferson once observed that "The care of human life
and happiness, and not their destruction, is the first and only
legitimate object of good government."
Today, we gather here to sign legislation -- the "Financial
Institutions Reform, Recovery, and Enforcement Act of 1989" --
which reaffirms those words.
This legislation comes to grips with the problems facing our
savings and loan industry. It will safeguard and stabilize
America's financial system. And put in place permanent reforms
so these problems will never happen again.
Moreover, it says to tens of millions of S&L depositors:
"You will not be the victim of others' mistakes. We will see --
guarantee -- that your insured deposits are secure."
This, of course, was government's intent when Federal
Deposit Insurance was created in 1933. Yet as that system
incurred massive losses over the past two decades, the fund
designed to protect depositors itself became insolvent.
2
The crisis has been told, and re-told. The federal
insurance fund was unable to make good on its commitments to the
public, or to close insolvent institutions. Their losses
mounting, hundreds of bankrupt institutions were allowed to
continue operating.
On February 6, I announced a plan to change all that. To
protect insured depositors. And to responsibly finance the
closing or other resolution of all insolvent institutions. We
sought to abolish lax regulations; to increase penalties for
wrongdoing; and to reform the financial system. And above all,
we sought to protect those who have relied on government to
faithfully fulfill its obligations.
I take special pleasure in the historic legislation I will
sign this morning. For the Task Group on Regulation of Financial
Services, which I was proud to chair, began the effort to
strengthen our financial system. Its work, and that of many
others, was debated and refined by Congress. You see it here:
All 371 pages of it. No, the bill's not perfect. But it is a
first step, a crucial step, toward restoring public confidence.
H.R. 1278 is responsive, and responsible. And for that I salute
the Congress. This bill balances America's need for financial
security, competitiveness, and equity.
In particular, I want to thank two committee chairmen --
Senator Donald Riegle and Representative Henry B. Gonzalez -- for
their leadership. And they were aided by Senator Jake Garn and
Representative Chalmers Wylie, who helped make these proposals a
3
reality. And Senator Phil Gramm. And numerous other members of
the banking and other committees, from both sides of the aisle,
who took up the cause of the public's interest.
Then there's Treasury Secretary Nick Brady, whose dedicated
efforts have been vital and whose leadership has been truly
outstanding. And so have those of Director Dick Darman. And I
would be remiss not to salute hundreds of others on the staffs of
the various regulatory agencies and Congressional committees.
They, too, deserve our thanks.
Because of them, of you here today, and so many others, this
legislation will give us the tools to make our thrift
institutions and our financial system as a whole strong and
stable. With this bill's substantial funding, we will begin --
here, and now -- to eliminate the ongoing losses of the insolvent
firms. And to ensure that not one dollar of insured funds will
be lost by any depositor.
Toward that end, this legislation abolishes the agency once
responsible for thrift supervision. In its place a new agency
will operate as part of the Treasury Department -- ensuring the
taxpayers' interests will always come first.
At the same time, a completely new insurance fund will
protect deposits in thrift institutions. The obligations of this
new fund -- called SAIF [SAFE] -- will be fully guaranteed by the
full faith and credit of the United States. The new seal
displayed here symbolizes this new fund, and our commitment to
protecting depositors.
4
Good steps? Vital steps. And this legislation goes still
further.
Beginning today, penalties for wrongdoing by officers and
directors of insured institutions will be increased to up to $1
million per day. And criminal penalities will be toughened from
yesterday's slap on the wrist to the clang of a prison door.
Those who try and loot the savings of their fellow citizens
deserve, and will receive, swift and severe punishment.
Also: Starting today, tougher requirements for safe and
sound operating practices will begin to take effect. Never again
will America allow any insured institution to operate normally if
owners lack sufficient tangible capital to protect depositors and
taxpayers alike. And today, too, we begin using the new
resources available to accelerate the resolution of failed
institutions. And to recover every possible dollar from their
assets for the taxpayers. At the same time, seeking to minimize
adverse impact on local markets.
These reforms will help our system right itself. For while
the S&L crisis isn't behind us, we have met -- and passed -- our
first critical test. More hard choices, and challenges, lie
ahead. But we will meet them as we have this challenge --
consulting, cooperating, between Congress and the Executive
Branch.
As we do, we will keep the new Federal Deposit Insurance
System solvent. And help serve those millions of small savers
who make America great: The local paperboy looking ahead to
5
college; the young couple dreaming of their first home; the
retired teacher whose savings are her life line. We have a
commitment to protect the savings of these Americans and millions
like them across the Nation. And we will honor that commitment.
Together -- Republicans and Democrats -- we can keep
America's economy No. 1 in the world. We can -- and will --
preserve a safe, efficient, and equitable financial system for
ourselves and, yes, for our kids.
Thank you for coming here and for your support, both past
and future. And now, it is my honor to sign the legislation
which will protect our Nation's financial system, and tens of
millions of our fellow Americans.
#
#
#
#
D2
TO
ABOARD AIR FORCE ONE
"conteryst" - oxe
Will Rogers 1 ?
Beefup Brady
THE WHITE HOUSE
WASHINGTON
August 8, 1989
INFORMATION
MEMORANDUM FOR THE PRESIDENT
THROUGH:
CHRISS WINSTON
FROM:
CURT SMITH
as
SUBJECT:
SAVINGS AND LOAN BILL SIGNING
I. SUMMARY
On Wednesday, August 9, at 10:45 a.m., you will address
about 220 people in the Rose Garden. The occasion is the signing
of the "Financial Institutions Reform, Recovery, and Enforcement
Act of 1989. " Among those flanking you on the dais will be
Secretary Brady, Senator Riegle, Congressmen Wylie and Gonzalez,
and Richard Darman.
II. DISCUSSION
The attached remarks (8 minutes; no teleprompter) discuss
the specific aspects and objectives of this legislation. They
focus on how the bill will safeguard and stabilize America's
financial system, and protect America's small savers.
(Smith/Martin)
Draft Four
August 8, 1989
S&L
PRESIDENTIAL REMARKS: SAVINGS & LOAN SIGNING
ROSE GARDEN
WEDNESDAY, AUGUST 9, 1989
10:45 A.M.
Secretary Brady, Director Darman, Senators Riegle and Gramm,
Congressmen Wylie and Gonzalez, Other members of the House and
Senate, Ladies and gentlemen, Friends.
Thomas Jefferson once observed that "The care of human life
and happiness, and not their destruction, is the first and only
legitimate object of good government."
Today, we gather here to sign legislation -- the "Financial
Institutions Reform, Recovery, and Enforcement Act of 1989" --
which reaffirms those words.
This legislation comes to grips with the problems facing our
savings and loan industry. It will safeguard and stabilize
America's financial system. And put in place permanent reforms
SO these problems will never happen again.
Moreover, it says to tens of millions of S&L depositors:
"You will not be the victim of others' mistakes. We will see --
guarantee -- that your insured deposits are secure."
This, of course, was government's intent when Federal
Deposit Insurance was created in 1933. Yet as that system
incurred massive losses over the past two decades, the fund
designed to protect depositors itself became insolvent.
2
The crisis has been told, and re-told. The federal
insurance fund was unable to make good on its commitments to the
public, or to close insolvent institutions. Their losses
mounting, hundreds of bankrupt institutions were allowed to
continue operating.
On February 6, I announced a plan to change all that. To
protect insured depositors. And to responsibly finance the
closing or other resolution of all insolvent institutions. We
sought to abolish lax regulations; to increase penalties for
wrongdoing; and to reform the financial system. And above all,
we sought to protect those who have relied on government to
faithfully fulfill its obligations.
I take special pleasure in the historic legislation I will
sign this morning. For the Task Group on Regulation of Financial
Services, which I was proud to chair, began the effort to
strengthen our financial system. Its work, and that of many
others, was debated and refined by Congress. You see it here:
All 371 pages of it. No, the bill's not perfect. But it is a
first step, a crucial step, toward restoring public confidence.
H.R. 1278 is responsive, and responsible. And for that I salute
the Congress. This bill balances America's need for financial
security, competitiveness, and equity.
In particular, I want to thank two committee chairmen --
Senator Donald Riegle and Representative Henry B. Gonzalez -- for
their leadership. And they were aided by Senator Jake Garn and
Representative Chalmers Wylie, who helped make these proposals a
3
reality. And Senator Phil Gramm. And numerous other members of
the banking and other committees, from both sides of the aisle,
who took up the cause of the public's interest.
Then there's Treasury Secretary Nick Brady, whose dedicated
efforts have been vital and whose leadership has been truly
outstanding. And so have those of Director Dick Darman. And I
would be remiss not to salute hundreds of others on the staffs of
the various regulatory agencies and Congressional committees.
They, too, deserve our thanks.
Because of them, of you here today, and so many others, this
legislation will give us the tools to make our thrift
institutions and our financial system as a whole strong and
stable. With this bill's substantial funding, we will begin --
here, and now -- to eliminate the ongoing losses of the insolvent
firms. And to ensure that not one dollar of insured funds will
be lost by any depositor.
Toward that end, this legislation abolishes the agency once
responsible for thrift supervision. In its place a new agency
will operate as part of the Treasury Department -- ensuring the
taxpayers' interests will always come first.
At the same time, a completely new insurance fund will
protect deposits in thrift institutions. The obligations of this
new fund -- called SAIF [SAFE] -- will be fully guaranteed by the
full faith and credit of the United States. The new seal
displayed here symbolizes this new fund, and our commitment to
protecting depositors.
4
Good steps? Vital steps. And this legislation goes still
further.
Beginning today, penalties for wrongdoing by officers and
directors of insured institutions will be increased to up to $1
million per day. And criminal penalities will be toughened from
yesterday's slap on the wrist to the clang of a prison door.
Those who try and loot the savings of their fellow citizens
deserve, and will receive, swift and severe punishment.
Also: Starting today, tougher requirements for safe and
sound operating practices will begin to take effect. Never again
will America allow any insured institution to operate normally if
owners lack sufficient tangible capital to protect depositors and
taxpayers alike. And today, too, we begin using the new
resources available to accelerate the resolution of failed
institutions. And to recover every possible dollar from their
assets for the taxpayers. At the same time, seeking to minimize
adverse impact on local markets.
These reforms will help our system right itself. For while
the S&L crisis isn't behind us, we have met -- and passed -- our
first critical test. More hard choices, and challenges, lie
ahead. But we will meet them as we have this challenge --
consulting, cooperating, between Congress and the Executive
Branch.
As we do, we will keep the new Federal Deposit Insurance
System solvent. And help serve those millions of small savers
who make America great: The local paperboy looking ahead to
5
college; the young couple dreaming of their first home; the
retired teacher whose savings are her life line. We have a
commitment to protect the savings of these Americans and millions
like them across the Nation. And we will honor that commitment.
Together -- Republicans and Democrats -- we can keep
America's economy No. 1 in the world. We can -- and will --
preserve a safe, efficient, and equitable financial system for
ourselves and, yes, for our kids.
Thank you for coming here and for your support, both past
and future. And now, it is my honor to sign the legislation
which will protect our Nation's financial system, and tens of
millions of our fellow Americans.
#
#
#
#
we spil plane I in
roj
(Smith/Martin)
Draft Two
nb
August 8, 1989
S&L
PRESIDENTIAL REMARKS: SAVINGS & LOAN SIGNING
ROSE GARDEN
WEDNESDAY, AUGUST 9, 1989
10:45 A.M.
Members of the House and Senate, Ladies and gentlemen,
Friends.
That great patriot, Daniel Webster, once referred to "the
people's government -- made for the people, made by the people,
and answerable to the people."
Today, we gather here to sign legislation -- the "Financial
Institution Reform, Recovery, and Enforcement Act of 1989" --
which reaffirms those words. And converts them into deeds.
This legislation comes to grips with the problems facing our
savings and loan industry. And will safeguard and stabilize
America's financial system. Moreover, it says to tens of
millions of S&L depositors: "You will not be the victim of
others' mistakes. We will see -- guarantee -- that your deposits
are secure."
This, of course, was government's intent when S&L
institutions were created at the Federal level in 1933. Yet as
that system incurred massive losses over the past two decades,
the fund designed to protect depositors itself became insolvent.
The crisis has been told, and re-told. The fund was unable
to make good on its commitments to the public, or to close
usi
and
and
is
'S
2
insolvent
institutions.
Poorly supervised, their losses
mounting, hundreds of bankrupt institutions were allowed to
continue. And who bore all their risks, and all of those
losses? Yes, the American taxpayer.
On February 6, I announced a plan to change all that. To
protect insured depositors. And to finance -- responsibly, and
fairly -- the closing or other resolution of all insolvent
institutions. We sought to abolish lax regulations; to increase
penalties for wrongdoing; and to reform the financial system.
And above all, to protect the citizens who have relied on
government to do what is legally, and morally, right.
The historic legislation I will sign this morning was tested
and refined by Congress. You see it here: All
pages of it.
No, the bill's not perfect. And it is only a first step toward
restoring public confidence to Tull health But H.R. 1278 is
responsive, and responsible. For it balances America's financial
need for security, competitiveness, and equity.
You know, that famous philosopher, Yogi Berra, once
writing
observed, "It's never over 'til it's over.' Of course, Yogi also
taxter
said: "You observe a lot by watching." Well, I'm sure there
were times you thought these negotiations would never be over.
But you observed, and bargained in good faith, and did your
Nation proud. To all of you in the Congress, my congratulations.
In particular, I want to thank two committee chairmen ---
Senator Donald Riegle and Representative Henry B. Gonzalez -- for
their leadership. And they were aided by Senator Jake Garn and
wills
and
I
3
Representative Chalmers Wylie, who helped make these proposals a
reality. And Senator Phil Gramm. And numerous other members of
the banking and other committees, from both sides of the aisle,
who were "answerable to the people."
Then there's Treasury Secretary Nick Brady: His efforts
have been vital. And so have those of Director Dick Darman and
Richard Breeden, who have worked on this issue from the
beginning. And I would be remiss not to salute hundreds of
others in the staffs of the various regulatory agencies and
Congressional committees. They, too, deserve our thanks.
Because of them -- of you -- this legislation will give us
the tools to make our thrift institutions strong and stable. And
our financial system as a whole. No, I don't promise a Rose
Garden in the Rose Garden. But I do say: With this bill's
substantial funding, we will begin -- here, now -- to eliminate
the ongoing losses of the insolvent firms. And to ensure that
not one dollar of insured funds will be lost by any depositor
Toward that end, this legislation abolishes the agency once
responsible for thrift supervision. In its place a new agency
will operate as part of the Treasury Department ---- ensuring the
taxpayers' interests will always come first.
At the same time, a completely new insurance fund will
protect deposits in thrift institutions. The obligations of this
new fund -- called SAIF [SAFE] -- will be fully guaranteed by the
full faith and credit of the United States. The new seal
men
jesterds
4
displayed here symbolizes this new fund, and our commitment to
protecting depositors.
goes everfusther
Good steps? Vital steps. And this legislation boasts more
Beginning today, penalties for wrongdoing by insured
officers and directors of insured institutions will be increased
to up to $1 million per day. And' criminal penalities will be
increased from a slap on the wrist to the clang of a prison door.
Those who try and loot the savings of their fellow citizens
will
deserve, and must receive, our contempt.
provel
Also: Beginning today, tougher requirements for safe and
well
sound operating practices will take effect. Never again should
America allow any insured institution to operate normally if
owners lack, substantial capital at risk in front of depositors
and taxpayers And today, too, we begin the task of resolving
failed institutions and recovering every possible dollar from
their assets for the taxpayers. Yet we will seek to minimize
adverse impact on local markets.
And to be sensitive to the need
of local communities for low-cost affordable housing
These reforms will help our system right itself. For while
the S&L crisis isn't behind us, the worst -- I believe -- is
over. Yes, we will face more hard choices ahead, and
challenges. Yet we will meet them as we have this challenge: As
friends, and bi-partisan colleagues -- consulting, cooperating,
between Congress and the Executive Branch.
The great American humorist, Will Rogers, was once asked
5
about the place of politics. "Politics isn't worrying our
people," he said, "half as much as parking space." And he was
right. Americans shouldn't have to worry about politics, or
public honesty, or our financial system. We must do our job, so
that they can do theirs.
Ladies and gentlemen, in Winston Churchill's words, "this is
not the end" of our quest to combat the S&L crisis. "It is not
even the beginning of the end. But it is, perhaps, the end of
the beginning."
With your help, we can keep America's economy No. 1 in the
world. And by remaining "answerable to the people," we can --
and will -- preserve a safe, efficient, and equitable financial
system for ourselves and, yes, for our kids.
Thank you for coming here. And your support, both past and
future. And now, it is my honor to sign the legislation which
protects tens of millions of Savings and Loan depositors.
#
#
#
#
deposites.
061617SS
Document No.
WHITE HOUSE STAFFING MEMORANDUM
8/8/89
8/8/89 5:30 PM
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
PRESIDENTIAL REMARKS: SAVINGS AND LOAN SIGNING
SUBJECT:
5:05/5:35
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE N/C phone
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT M/C phone
BATES
UNTERMEYER
BREEDEN
ROGERS
CARD
WINSTON
CICCONI
PINKERTON
DEMAREST stenside folder)
BOSKIN
N/C
FITZWATER
GRAY Rob 7953 N/C phone
HAGIN
REMARKS:
Please forward any comments directly to Chriss Winston, Rm. 122,
x2930, no later than 5:30 TODAY, Tuesday, August 8, with a copy
to my office. Thank you.
RESPONSE:
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
(Smith/Martin)
Draft Three
1989 AUG - 8 P.I 3.
August 8, 1989
S&L
PRESIDENTIAL REMARKS: SAVINGS & LOAN SIGNING
ROSE GARDEN
WEDNESDAY, AUGUST 9, 1989
10:45 A.M.
Members of the House and Senate, Ladies and gentlemen,
Friends.
That great patriot, Daniel Webster, once referred to "the
Beft.
people's government -- made for the people, made by the people,
and answerable to the people."
Today, we gather here to sign legislation -- the "Financial
Institution Reform, Recovery, and Enforcement Act of 1989" --
which reaffirms those words.
This legislation comes to grips with the problems facing our
It
savings and loan industry. And will safeguard and stabilize
But
America's financial systemk Moreover, it says to tens of
millions of S&L depositors: "You will not be the victim of
others' mistakes. We will see -- guarantee -- that your (insured deposits
are secure."
Federal deposit
This, of course, was government's intent when S&L
insurance was
institutions were created at the Federal level in 1933. Yet as
that system incurred massive losses over the past two decades,
the fund designed to protect depositors itself became insolvent
Federal insurance)
The crisis has been told, and re-told. The fund was unable
to make good on its commitments to the public, or to close
and put in place permanent reforms so the problems will
never Rec happen again
Soger 2 resulated
insolvent institutions. Poorly supervised, their losses
mounting, hundreds of bankrupt institutions were allowed to
continue*
operating
On February 6, I announced a plan to change all that. To
protect insured depositors. And to finance responsibly and
fairly the closing or other resolution of all insolvent
institutions. We sought to abolish lax regulations; to increase
penalties for wrongdoing; and to reform the financial system.
we sought
And above all, to protect those who have relied on government to
faithfully fulfill its obligations
do what is both legally and morally right.
debated
The historic legislation I will sign this morning was tested
?
and refined by Congress. You see it here: All 371 pages of it.
But
a
crucial step
No, the bill's not perfect. And it is only a first step toward
restoring public confidence. But H.R. 1278 is responsive, and
responsible. And for that I salute the Congress. For this bill
balances America's need for financial security, competitiveness,
and equity.
In particular, I want to thank two committee chairmen --
Senator Donald Riegle and Representative Henry B. Gonzalez -- for
their leadership. And they were aided by Senator Jake Garn and
Representative Chalmers Wylie, who helped make these proposals a
reality. And Senator Phil Gramm. And numerous other members of
the banking and other committees, from both sides of the aisle,
took up the cause of Dipartis public interest.
who were "answerable to the people. "
whose dedicated have been
vital
whose
Then there's Treasury Secretary Nick Brady: His efforts and
leadership and have been truly autotanding
have been vital And SO have those of Director Dick Darman & who
3 mpo
has worked on this issue from the beginning. And I would be
on
remiss not to salute hundreds of others in the staffs of the
various regulatory agencies and Congressional committees. They,
too, deserve our thanks.
here today and someing others,
Because
of
them
-- of you you this legislation will give us
and our financial system as a w tale
the tools to make our thrift institutions strong and stable. And
our financial system as a whole. With this bill's substantial
funding, we will begin -- here, and now to eliminate the
and
west
A
ongoing losses of the insolvent firms. And to recover every
move
wentby
possible dollar from their assets for the taxpayers.
Toward that end, this legislation abolishes the agency once
responsible for thrift supervision. In its place a new agency
will operate as part of the Treasury Department -- ensuring the
taxpayers' interests will always come first.
At the same time, a completely new insurance fund will
protect deposits in thrift institutions. The obligations of this
new fund -- called SAIF [SAFE] -- will be fully guaranteed by the
full faith and credit of the United States. The new seal
displayed here symbolizes this new fund, and our commitment to
protecting depositors.
Good steps? Vital steps. And this legislation goes still
further.
Beginning today, penalties for wrongdoing by insured
officers and directors of insured institutions will be increased
to up to $1 million per day. And criminal penalities will be
toughened from yesterday's slap on the wrist to the clang of a
4
stet
prison door. Those who try and loot the savings of their fellow
swift punishment.
citizens deserve, and will receive, our contempt.
stating
Also: Beginning today, tougher requirements for safe and
besine
sound operating practices will, take effect. Never again will
continute stet
America allow any insured institution to operate normally if
stet
Jangible
owners lack sufficient capital to protect depositors and
using the new resources available to accelerat
taxpayers alike. And today, too, we begin the task of resolving
the resolution of failed institutions. Yet we will also seek ng to minimize adverse
menth at the same time)
impact on local markets.
Six
we have met and
passed our fwst critea
test.
These reforms will help our system right tself. For while
we readed the point
the S&L crisis isn't behind us, the worst I believe -- is
lie alood
over. Yes we will face more hard choices ahead, and challenges*
But
Yet we will meet them as we have this challenge: As friends, and
bi-partisan colleagues -- consulting, cooperating, between
Congress and the Executive Branch.
The great American humorist, Will Rogers, was once asked
about the place of politics. Politics isn't worrying our
people," he said, "half as much as parking space. And he was
right. Americans shouldn't have to worry about politics, or
bridge
public honesty, or our financial system. We must do our job, so
that they can do theirs.
As
(new federal a eposit insurance)
If we do, we will keep the system solvent. And help serve
those millions of small savers who make America great: The local
paperboy looking ahead to college; the young couple dreaming of
their first home; the retired teacher whose savings are her life
We have a auter to
and we must meet that duty.
line. They have earned our help. And they must have it.
We have a commitment to protect the sawmgs of these americans
and millions like then news the nation. and we will honor
that commitment.
5
Together -- Republicans and Democrats -- we can keep
America's economy No. 1 in the world. And by remaining
"answerable to the people," we can -- and will -- preserve a
safe, efficient, and equitable financial system for ourselves
and, yes, for our kids.
Sor
Thank you for coming herex And your support, both past and
future. And now, it is my honor to sign the legislation which will
our fellow
protects tens of millions of Savings and Loan depositors.
# # # #
and
our nations Sinancial system
is the fruit
061617SS
Document No.
WHITE HOUSE STAFFING MEMORANDUM
8/8/89
8/8/89 5:30 PM
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
PRESIDENTIAL REMARKS: SAVINGS AND LOAN SIGNING
SUBJECT:
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
BREEDEN
ROGERS
CARD
WINSTON
CICCONI
PINKERTON
DEMAREST
BOSKIN
FITZWATER
GRAY
HAGIN
REMARKS:
Please forward any comments directly to Chriss Winston, Rm. 122,
x2930, no later than 5:30 TODAY, Tuesday, August 8, with a copy
to my office. Thank you.
RESPONSE: See comments
89 AUG 8 AUG P5
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
I UNITED / STATE
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
NOTICE:
Enclosed are comments from staff members of the Office of
Management and Budget (OMB). Such comments do not necessarily
represent the official position of the Director of OMB or of the
Office of Management and Budget. If you wish to have the
Director's personal comments, please let me know -- and contact
me if you have any questions.
David J. Haun
Executive Assistant
to the Director
(Smith/Martin)
Draft Three
3.
August 8, 1989
S&L
PRESIDENTIAL REMARKS: SAVINGS & LOAN SIGNING
ROSE GARDEN
WEDNESDAY, AUGUST 9, 1989
10:45 A.M.
Members of the House and Senate, Ladies and gentlemen,
Friends.
That great patriot, Daniel Webster, once referred to "the
people's government -- made for the people, made by the people,
and answerable to the people."
Today, we gather here to sign legislation -- the "Financial
Institutions Reform, Recovery, and Enforcement Act of 1989" --
which reaffirms those words.
This legislation comes to grips with the problems facing our
It
al-Sama
savings and loan industry. And will safeguard and stabilize
America's financial system. Moreover, it says to tens of
this
millions of S&L depositors: "You will not be the victim of
others' mistakes. We will see -- guarantee -- that your deposits
topay yes can ?
are secure."
federal deposit insurance an
the for federal regulatory structure
Rgd X4516
This, of course, was government's intent whenVS&L
in the early 1930s
institutions were created [at the Federal level in 1933. [¥et
as
Ryder
x451
that system incurred massive losses over the past two decades,
the fund designed to protect depositors itself became insolvent.]
federal insurance
The crisis has been told, and re-told. The ^ fund was unable
to make good on its commitments to the public, or to close
2
insolvent institutions. Poorly supervised, their losses
mounting, hundreds of bankrupt institutions were allowed to
Roderst
continue.
We sought
On February 6, I announced a plan to change all that. N/O NIO
protect insured depositors. And to finance -- responsibly, and
fairly -- the closing or other resolution of all insolvent
institutions. [we sought to abolish lax regulations; to increase
"
penalties for wrongdoing; and to reform the financial system.
And above all, to protect those who have relied on government to
Rysxur
do what is both legally and morally right.
debated -?
The historic legislation I will sign this morning was [tested]
and refined by Congress. You see it here: All 371 pages of it.
Regder
No, the bill's not perfect. And it is only a first step toward X 4516
restoring public confidence. But H.R. 1278 is responsive, and
responsible. And for that I salute the Congress. For this bill
balances America's need for financial security, competitiveness,
and equity.
In particular, I want to thank two committee chairmen --
Senator Donald Riegle and Representative Henry B. Gonzalez -- for
their leadership. And they were aided by Senator Jake Garn and
Representative Chalmers Wylie, who helped make these proposals a
reality. And Senator Phil Gramm. And numerous other members of
the banking and other committees, from both sides of the aisle,
who were "answerable to the people."
Then there's Treasury Secretary Nick Brady: His efforts
have been vital. And so have those of Director Dick Darman, who
3
has worked on this issue from the beginning. And I would be
remiss not to salute hundreds of others in the staffs of the
various regulatory agencies and Congressional committees. They,
too, deserve our thanks.
Because of them -- of vou -- this legislation will give us
the tools to make our thrift institutions strong and stable. And to mal
our financial system as a whole With this bill's substantial Mollin
strong and stable
funding, we will begin -- here, and now -- to eliminate the
x306
ongoing losses of the insolvent firms. And to recover every
possible dollar from their assets for the taxpayers.
Toward that end, this legislation abolishes the agency once
responsible for thrift supervision. In its place a new agency
will operate as part of the Treasury Department -- ensuring, that the
taxpayers' interests will always come first.
At the same time, a completely new insurance fund will
protect deposits in thrift institutions. The obligations of this
new fund -- called SAIF [SAFE] -- will be fully guaranteed by the
full faith and credit of the United States. The new seal
displayed here symbolizes this new fund, and our commitment to
protecting depositors.
Good steps? Vital steps. And this legislation goes still
further.
Beginning today, penalties for wrongdoing by [insured] Rugder
X4516
officers and directors of insured institutions will be increased
to up to $1 million per day. And criminal penalities will be
toughened from yesterday's slap on the wrist to the clang of a
4
prison door. Those who try and loot the savings of their fellow
citizens deserve, and will receive, our contempt.
Also: Beginning today, tougher requirements for safe and
sound operating practices will take effect. Never again will
continue
America allow any insured institution to operat hormally if
Reydar
X4516
owners lack sufficient capital to protect depositors and
taxpayers alike. And today, too, we begin [the task of resolving
using the new resources available to
failed institutions. Yet we will also seek to minimize adverse acceler
the nes,
impact on local markets.
tion o'
These reforms will help our system right itself. For while
Ryde
the S&L crisis isn't behind us, the worst -- I believe -- is
x451
over. Yes, we will face more hard choices ahead, and challenges.
Yet we will meet them as we have this challenge: As friends, and
bi-partisan colleagues -- consulting, cooperating, between
Congress and the Executive Branch.
The great American humorist, Will Rogers, was once asked
about the place of politics. "Politics isn't worrying our
people," he said, "half as much as parking space. And he was
right. Americans shouldn't have to worry about politics, or
public honesty, or our financial system. We must do our job, so
that they can do theirs.
new federal deposit insurance
Reyder
x4511
If we do, we will keep the system solvent. And help serve
those millions of small savers who make America great: The local
paperboy looking ahead to college; the young couple dreaming of
their first home; the retired teacher whose savings are her life
line. They have earned our help. And they must have it.
5
Together -- Republicans and Democrats -- we can keep
America's economy No. 1 in the world. And by remaining
"answerable to the people," we can -- and will -- preserve a
safe, efficient, and equitable financial system for ourselves
and, yes, for our kids.
Thank you for coming here, And your support, both past and
future. And now, it is my honor to sign the legislation which
protects tens of millions of Savings and Loan depositors.
#
#
#
#
and ensure that the
Ryder
x4516
tarpayer interests are
also addressed.
061617SS
Document No.
WHITE HOUSE STAFFING MEMORANDUM
8/8/89
8/8/89 5:30 PM
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
PRESIDENTIAL REMARKS: SAVINGS AND LOAN SIGNING
SUBJECT:
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
BREEDEN
ROGERS
CARD
WINSTON
CICCONI
PINKERTON
BOSKIN
DEMAREST
FITZWATER
GRAY
HAGIN
REMARKS:
Please forward any comments directly to Chriss Winston, Rm. 122,
x2930, no later than 5:30 TODAY, Tuesday, August 8, with a copy
to my office. Thank you.
RESPONSE:
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
(Smith/Martin)
Draft Three
1939 AUG 8 III 3.
August 8, 1989
S&L
PRESIDENTIAL REMARKS: SAVINGS & LOAN SIGNING
ROSE GARDEN
WEDNESDAY, AUGUST 9, 1989
10:45 A.M.
Members of the House and Senate, Ladies and gentlemen,
we want
x
Friends.
Re-insert my first paragraph
That great patriot, Daniel Webster once referred to "the
people's government -- made for the people, made by the people,
and answerable to the people."
twis mess true that The
Today, we gather here to sign legislation -- the "Financial
3
Jim
or
Institution Reform, Recovery, and Enforcement Act of 1989" --
Cata
they
which reaffirms those words.
This legislation comes to grips with the problems facing our
savings and loan industry. And will safeguard and stabilize
America's financial system. Moreover, it says to tens of
millions of S&L depositors: "You will not be the victim of
insured
others' mistakes. We will see -- guarantee -- that your deposits
are secure."
deral
This, of course, was government's intent when S&L
what was ?
deposit mourance was
institutions were created at the Federal level in 1933. Yet as
that system incurred massive losses over the past two decades,
the fund designed to protect depositors itself became insolvent.
The crisis has been told, and re-told. The fund was unable
to make good on its commitments to the public, or to close
2
insolvent institutions.
Poorly supervised,
their losses
mounting, hundreds of bankrupt institutions were allowed to
continue operating
On February 6, I announced a plan to change all that.
This To program
intended
protect insured depositors, And to finance responsibly and
fairly
the closing or other resolution of all insolvent
institutions. We sought to abolish lax regulations; to increase
penalties for wrongdoing; and to reform the financial system.
sought
And above all, to protect those who have relied on government to
do what is both legally and morally right.
The historic legislation I will sign this morning was tested
and refined by Congress. You see it here: All
pages of it.
No, the bill's not perfect. And it is only a first step toward
restoring public confidence. But H.R. 1278 is responsive, and
for its work.
responsible. And for that I salute the Congress For this bill
balances America's need for financial security, competitiveness,
and equity.
an excellent bill
a
In particular, I want to thank two committee chairmen --
isn't perfect,
Senator Donald Riegle and Representative Henry B. Gonzalez -- for
but overall
their leadership. And they were aided by Senator Jake Garn and
it is an
excellent
Representative Chalmers Wylie, who helped make these proposals a
bill that
reality. And Senator Phil Gramm. And numerous other members of
of the vital
vico prates
the banking and other committees, from both sides of the aisle,
elements
who were answerable to the people.
took up the cause of responsible legislation.
necessary to restorg
Then there's Treasury Secretary Nick Brady: His efforts
a
safe and
have been vital. And so have those of Director Dick Darman, who
stable system
and to begin eliminating the further looses of insolvent forms.
3
has worked on this issue from the beginning. And I would be
remiss not to salute hundreds of others in the staffs of the
various regulatory agencies and Congressional committees. They,
too, deserve our thanks.
Because of them of this legislation will give us
for restoring strength and stability
the tools to make our thrift institutions strong and and stable. And
^
our financial system as a whole. With this bill's substantial
funding, we will begin -- here, and now -- to eliminate the
ongoing losses of the insolvent firms.
And to recover every
In
possible dollar from their assets for the taxpayers.
This accomplishing effort, not
Toward that end, this legislation abolishes the agency once
This
one dollar
responsible for thrift supervision. In its place a new agency
agency
of issured
not have
will operate as part of the Treasury Department -- ensuring the
funds will be
to do anything with
taxpayers' interests will always come first.
asset
loot by any
recoveries
depositn.
At the same time, a completely new insurance fund will
protect deposits in thrift institutions. The obligations of this
new fund -- called SAIF [SAFE] -- will be fully guaranteed by the
full faith and credit of the United States. The new seal
displayed here symbolizes this new fund, and our commitment to
protecting depositors.
Good steps? Vital steps. And this legislation goes still
further.
Beginning today, penalties for wrongdoing by insured
officers and directors of insured institutions will be increased
to up to $1 million per day. And criminal penalities will be
toughened from yesterday's slap on the wrist to the clang of a
to 4
Too Weak
of
A
bigor
5
the Five bill Minimum in julitically mandaton sentences such
for
person
prison door. Those who try and loot the savings of their fellow
citizens deserve, and will receive our contempt
[substance,
Also: Beginning today, tougher requirements for safe and
begin to
not
style
sound operating practices will take effect. Never again will
N
some are
America allow any insured institution to operate normally if the
others uninedreffective,
do not have substantial levels of tansible
owners A lack sufficient capital to protect depositors and
not
taxpayers alike. And today, too, we begin the task of resolving
At The same time,
this of
failed institutions
Yet we will also seek to minimize adverse
impact on local markets.
emplies Dictor
X from
These reforms will help our system right itself. For while
who
and
have
we
3
the S&L crisis isn't behind us the worst I believe is
actepts
over Yes, we will face more hard choices ahead, and challenges.
Yet we will meet them as we have this challenge: As friends, and
and
we
bi-partisan colleagues -- consulting cooperating between
threater
veto
Congress and the Executive Branch.
very
300 B
The great American humorist, Will Rogers, was once asked
fight nasty.
publice
about the place of politics. "Politics isn't worrying our
friend
handly
people," he said, "half as much as parking space 18 And he was
be
right. Americans shouldn't have to worry about politics, or
a.
We must do our job, so
parking to lot
public honesty, or our financial system.
that they can do
the Americans theirs every walk slife
and security.
If we do, we will keep the system solvent. And help serve
those millions of small savers who make America great: The local
Very
paperboy looking ahead to college; the young couple dreaming of
Big
their first home; the retired teacher whose savings are her life
line. They have earned our help. And they must have it.
mixes moral ob up gating ment + run legal we to
*
From This moment Forward this problem
unimize
will begin be reduced steadily, rather allowed than
being
seek
eliminate
arow.
5
Together -- Republicans and Democrats -- we can keep
America's economy No. 1 in the world. And by remaining
"answerable to the people," we can -- and will -- preserve a
safe, efficient, and equitable financial system for ourselves
and, yes, for our kids.
Thank you for coming here. And your support, both past and
future. And now, it is my honor to sign the legislation which
protects tens of millions of Savings and Loan depositors.
#
#
#
#
will pat as on The
peth
help protect our
[nating
markets,
strengthens Bill
financial system]
mush more
than S+Ls
bouling too ]
THE WHITE HOUSE
WASHINGTON
August 8, 1989
MEMORANDUM FOR CHRISS WINSTON
DEPUTY ASSISTANT TO THE PRESIDENT
FOR COMMUNICATIONS
FROM:
ROBERT J. PORTMAN
PSP
ASSOCIATE COUNSEL TO THE PRESIDENT
SUBJECT:
Presidential Remarks: Savings and Loan Signing
Pursuant to James W. Cicconi's staffing request of August 8,
1989, Counsel's Office has reviewed the above-referenced
Presidential remarks. We have no legal objection to the contents
of these remarks.
Thank you for bringing this matter to our attention.
CC: James W. Cicconi
85:5d 8 AUG 68
SS/T9T90
Document No.
WHITE HOUSE STAFFING MEMORANDUM
8/8/89
8/8/89 5:30 PM
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
PRESIDENTIAL REMARKS: SAVINGS AND LOAN SIGNING
SUBJECT:
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
BREEDEN
ROGERS
CARD
WINSTON
CICCONI
PINKERTON
DEMAREST
BOSKIN
FITZWATER
GRAY
HAGIN
REMARKS:
Please forward any comments directly to Chriss Winston Rm. 122,
x2930, no later than 5:30 TODAY, Tuesday, August 8, with a copy
to my office. Thank you.
RESPONSE:
AUG 8 UG 8 P5: 39
see Comments
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
(Smith/Martin)
Draft Three
1939 MUG 3 ::: 3.
August 8, 1989
S&L
PRESIDENTIAL REMARKS: SAVINGS & LOAN SIGNING
ROSE GARDEN
WEDNESDAY, AUGUST 9, 1989
10:45 A.M.
Members of the House and Senate, Ladies and gentlemen,
Friends.
That great patriot, Daniel Webster, once referred to "the
people's government -- made for the people, made by the people,
and answerable to the people."
Today, we gather here to sign legislation -- the "Financial
Institution Reform, Recovery, and Enforcement Act of 1989" --
which reaffirms those words.
This legislation comes to grips with the problems facing our
It
savings and loan industry. And will safeguard and stabilize
America's financial system. Moreover, it says to tens of
millions of S&L depositors: "You will not be the victim of
others' mistakes. We will see -- guarantee -- that your deposits
are secure."
This, of course, was government's intent when S&L
institutions were created at the Federal level in 1933. Yet as
that system incurred massive losses over the past two decades,
the fund designed to protect depositors itself became insolvent.
The crisis has been told, and re-told. The fund was unable
to make good on its commitments to the public, or to close
- Michael Jackson 2800 -cabinet affairs.
2
insolvent institutions. Poorly supervised, their losses
mounting, hundreds of bankrupt institutions were allowed to
continue.
On February 6, I announced a plan to change all that. To
protect insured depositors. And to finance -- responsibly, and
fairly -- the closing or other resolution of all insolvent
institutions. We sought to abolish lax regulations; to increase
penalties for wrongdoing; and to reform the financial system.
And above all, to protect those who have relied on government to
do what is both legally and morally right.
The historic legislation I will sign this morning was tested
and refined by Congress. You see it here: All
pages of it.
But
andacrucial
No, the bill's not perfect. And it is only a first step toward Step,
restoring public confidence. But H.R. 1278 is responsive, and
responsible. And for that I salute the Congress. For this bill
balances America's need for financial security, competitiveness,
and equity.
In particular, I want to thank two committee chairmen --
Senator Donald Riegle and Representative Henry B. Gonzalez -- for
their leadership. And they were aided by Senator Jake Garn and
Representative Chalmers Wylie, who helped make these proposals a
reality. And Senator Phil Gramm. And numerous other members of
the banking and other committees, from both sides of the aisle,
who were "answerable to the people."
Then there's Treasury Secretary Nick Brady: His efforts
have been vital. And so have those of Director Dick Darman, who
) took
3
has worked on this issue from the beginning. And I would be
remiss not to salute hundreds of others in the staffs of the
various regulatory agencies and Congressional committees. They,
too, deserve our thanks.
Because of them -- of you -- this legislation will give us
the tools to make our thrift institutions strong and stable. And
our financial system as a whole. With this bill's substantial
funding, we will begin -- here, and now -- to eliminate the
ongoing losses of the insolvent firms. And to recover every
possible dollar from their assets for the taxpayers.
Toward that end, this legislation abolishes the agency once
responsible for thrift supervision. In its place a new agency
will operate as part of the Treasury Department -- ensuring the
taxpayers' interests will always come first.
At the same time, a completely new insurance fund will
protect deposits in thrift institutions. The obligations of this
new fund -- called SAIF [SAFE] -- will be fully guaranteed by the
full faith and credit of the United States. The new seal
displayed here symbolizes this new fund, and our commitment to
protecting depositors.
Good steps? Vital steps. And this legislation goes still
further.
Beginning today, penalties for wrongdoing by insured
officers and directors of insured institutions will be increased
to up to $1 million per day. And criminal penalities will be
toughened from yesterday's slap on the wrist to the clang of a
4
prison door. Those who try and loot the savings of their fellow
citizens deserve, and will receive, our contempt.
Also: Beginning today, tougher requirements for safe and
sound operating practices will take effect. Never again will
America allow any insured institution to operate normally if
owners lack sufficient capital to protect depositors and
taxpayers alike. And today, too, we begin the task of resolving
failed institutions. Yet we will also seek to minimize adverse
impact on local markets.
These reforms will help our system right itself. For while
the S&L crisis isn't behind us, the worst -- I believe -- is
over. Yes, we will face more hard choices ahead, and challenges.
Yet we will meet them as we have this challenge: As friends, and
bi-partisan colleagues -- consulting, cooperating, between
Congress and the Executive Branch.
The great American humorist, Will Rogers, was once asked
about the place of politics. "Politics isn't worrying our
people," he said, "half as much as parking space." And he was
right. Americans shouldn't have to worry about politics, or
the Security of our
public honesty, or our financial system. We must do our job, so
that they can do theirs.
If we do, we will keep the system solvent. And help serve
those millions of small savers who make America great: The local
paperboy looking ahead to college; the young couple dreaming of
their first home; the retired teacher whose savings are her life
line. They have earned our help. And they must have it.
5
Together -- Republicans and Democrats -- we can keep
America's economy No. 1 in the world. And by remaining
"answerable to the people," we can -- and will -- preserve a
safe, efficient, and equitable financial system for ourselves
and, yes, for our kids.
Thank you for coming here. And your support, both past and
future. And now, it is my honor to sign the legislation which
protects tens of millions of Savings and Loan depositors.
# = # #
061617SS
Document No.
WHITE HOUSE STAFFING MEMORANDUM
8/8/89
8/8/89 5:30 PM
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
PRESIDENTIAL REMARKS: SAVINGS AND LOAN SIGNING
SUBJECT:
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
BREEDEN
ROGERS
CARD
WINSTON
CICCONI
PINKERTON
DEMAREST
BOSKIN
FITZWATER
GRAY
HAGIN
REMARKS:
Please forward any comments directly to Chriss Winston, Rm. 122,
x2930, no later than 5:30 TODAY, Tuesday, August 8, with a copy
to my office. Thank you.
RESPONSE:
ok
89 AUG 8 P5 23
70
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
THE WHITE HOUSE
WASHINGTON
August 7, 1989
Memorandum to Chriss Winston
From:
Austen Furse A.F.
Subject:
Savings And Loan Signing Ceremony Draft Speech
pg. 1, para. 2, line 1 Even though it spoils the symmetry of
the introduction and the "answerable to the people" line of the
conclusion, we suggest using a quotation from some figure other
than Daniel Webster. The reason is Webster's historical
reputation for financial misconduct: he was in the pay of the
railroads -- a fact that resurfaced during the Wright affair.
It should not be hard to locate another quotation that gets
across the "answerable to the people" theme by an historical
figure famous for personal integrity (e.g., George Washington,
Albert Gallatin -- Jefferson's Treasury Secretary, Harry Truman,
Sam Rayburn, or, assuming he cannot be accused of having
contributed to the problem as Senate Banking Committee Chairman,
William Proxmire). We will avoid a potential embarrassment in
doing so.
2, 2, 6-7 "
to protect those who have relied on government to
do what is both legally and morally right."
The "legally and morally right" phrase seems to anticipate
an argument that it was not legally and morally right for the
government to have insured depositors.
Because many reasonable people would argue that the
government should not be in the business of insuring deposits in
the first place, this phrase may unnecessarily provoke a
critique, e.g., by the Wall Street Journal editorial page. We
suggest, therefore, that instead of "do what is both legally and
morally right," the phrase "faithfully fulfill its obligations,"
be used.
£0 : Sd 8 AUG 68
(more)
2-2-2
4,1,2
"Those who try and loot the savings of their fellow
citizens deserve, and will receive, our contempt."
After the previous sentence invoking the image of prison
doors, this line, which speaks only of contempt, comes as an
anti-climax. To continue the parallelism with prison doors,
i.e., criminal punishment, we suggest adding after "contempt" a
phrase such as "and the swiftest possible application of
justice," or "and a condign punishment, or "and the severest
punishment consistent with justice. =
4,5,5
"The local paperboy the young couple the retired
teacher
They have earned our help."
It is not the case that these vulnerable savers should be
helped because they have earned the government's help -- that
suggests that the government deigns or condescends to help them.
The government is not being obliging to help, it is obligated to
help. Thus, instead of "They have earned our help. And they
must have it," we suggest "We have a duty to help. And we must
meet that duty. "
###
061617SS
Document No.
WHITE HOUSE STAFFING MEMORANDUM
8/8/89
8/8/89 5:30 PM
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
PRESIDENTIAL REMARKS: SAVINGS AND LOAN SIGNING
SUBJECT:
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
BREEDEN
ROGERS
CARD
WINSTON
CICCONI
PINKERTON
BOSKIN
DEMAREST
FITZWATER
GRAY
HAGIN
REMARKS:
Please forward any comments directly to Chriss Winston, Rm. 122,
x2930, no later than 5:30 TODAY, Tuesday, August 8, with a copy
to my office. Thank you.
RESPONSE:
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
(Smith/Martin)
Draft Three
August 8, 1989
S&L
PRESIDENTIAL REMARKS: SAVINGS & LOAN SIGNING
ROSE GARDEN
WEDNESDAY, AUGUST 9, 1989
10:45 A.M.
Members of the House and Senate, Ladies and gentlemen,
Friends.
That great patriot, Daniel Webster, once referred to "the
people's government -- made for the people, made by the people,
and answerable to the people."
Today, we gather here to sign legislation -- the "Financial
Institution Reform, Recovery, and Enforcement Act of 1989" --
which reaffirms those words.
This legislation comes to grips with the problems facing our
savings and loan industry. And will safeguard and stabilize
America's financial system. Moreover, it says to tens of
millions of S&L depositors: "You will not be the victim of
others' mistakes. We will see -- guarantee -- that your deposits
are secure."
This, of course, was government's intent when S&L
institutions were created at the Federal level in 1933. Yet as
that system incurred massive losses over the past two decades,
the fund designed to protect depositors itself became insolvent.
The crisis has been told, and re-told. The fund was unable
to make good on its commitments to the public, or to close
2
insolvent institutions. Poorly supervised, their losses
mounting, hundreds of bankrupt institutions were allowed to
continue.
On February 6, I announced a plan to change all that. To
protect insured depositors. And to finance -- responsibly, and
fairly -- the closing or other resolution of all insolvent
institutions. We sought to abolish lax regulations; to increase
penalties for wrongdoing; and to reform the financial system.
And above all, to protect those who have relied on government to
do what is both legally and morally right.
The historic legislation I will sign this morning was tested
and refined by Congress. You see it here: All
pages of it.
No, the bill's not perfect. And it is only a first step toward
restoring public confidence. But H.R. 1278 is responsive, and
responsible. And for that I salute the Congress. For this bill
balances America's need for financial security, competitiveness,
and equity.
In particular, I want to thank two committee chairmen --
Senator Donald Riegle and Representative Henry B. Gonzalez -- for
their leadership. And they were aided by Senator Jake Garn and
Representative Chalmers Wylie, who helped make these proposals a
reality. And Senator Phil Gramm. And numerous other members of
the banking and other committees, from both sides of the aisle,
who were "answerable to the people."
Then there's Treasury Secretary Nick Brady: His efforts
have been vital. And so have those of Director Dick Darman, who
3
has worked on this issue from the beginning. And I would be
remiss not to salute hundreds of others in the staffs of the
various regulatory agencies and Congressional committees. They,
too, deserve our thanks.
Because of them -- of you -- this legislation will give us
the tools to make our thrift institutions strong and stable. And
our financial system as a whole. With this bill's substantial
funding, we will begin -- here, and now -- to eliminate the
ongoing losses of the insolvent firms. And to recover every
possible dollar from their assets for the taxpayers.
Toward that end, this legislation abolishes the agency once
responsible for thrift supervision. In its place a new agency
will operate as part of the Treasury Department -- ensuring the
taxpayers' interests will always come first.
At the same time, a completely new insurance fund will
protect deposits in thrift institutions. The obligations of this
new fund -- called SAIF [SAFE] -- will be fully guaranteed by the
full faith and credit of the United States. The new seal
displayed here symbolizes this new fund, and our commitment to
protecting depositors.
Good steps? Vital steps. And this legislation goes still
further.
Beginning today, penalties for wrongdoing by insured
officers and directors of insured institutions will be increased
to up to $1 million per day. And criminal penalities will be
toughened from yesterday's slap on the wrist to the clang of a
4
prison door. Those who try and loot the savings of their fellow
citizens deserve, and will receive, our contempt.
Also: Beginning today, tougher requirements for safe and
sound operating practices will take effect. Never again will
America allow any insured institution to operate normally if
owners lack sufficient capital to protect depositors and
taxpayers alike. And today, too, we begin the task of resolving
failed institutions. Yet we will also seek to minimize adverse
impact on local markets.
These reforms will help our system right itself. For while
the S&L crisis isn't behind us, the worst -- I believe -- is
over. Yes, we will face more hard choices ahead, and challenges.
Yet we will meet them as we have this challenge: As friends, and
bi-partisan colleagues -- consulting, cooperating, between
Congress and the Executive Branch.
The great American humorist, Will Rogers, was once asked
about the place of politics. "Politics isn't worrying our
people," he said, "half as much as parking space." And he was
right. Americans shouldn't have to worry about politics, or
public honesty, or our financial system. We must do our job, so
that they can do theirs.
If we do, we will keep the system solvent. And help serve
those millions of small savers who make America great: The local
paperboy looking ahead to college; the young couple dreaming of
their first home; the retired teacher whose savings are her life
line. They have earned our help. And they must have it.
5
Together -- Republicans and Democrats -- we can keep
America's economy No. 1 in the world. And by remaining
"answerable to the people," we can -- and will -- preserve a
safe, efficient, and equitable financial system for ourselves
and, yes, for our kids.
Thank you for coming here. And your support, both past and
future. And now, it is my honor to sign the legislation which
protects tens of millions of Savings and Loan depositors.
#
#
#
#
FICE
REMARKS: SAVINGS & LOAN SIGNING
ROSE GARDEN
WEDNESDAY, AUGUST 9, 1989
10:45 A.M.
SECRETARY BRADY, DIRECTOR DARMAN, SENATORS RIEGLE
AND GRAMM, CONGRESSMEN WYLIE AND GONZALEZ, OTHER
MEMBERS OF THE HOUSE AND SENATE, LADIES AND GENTLEMEN,
FRIENDS.
- 2 -
THOMAS JEFFERSON ONCE OBSERVED THAT "THE CARE OF
HUMAN LIFE AND HAPPINESS, AND NOT THEIR DESTRUCTION, IS
THE FIRST AND ONLY LEGITIMATE OBJECT OF GOOD
GOVERNMENT."
TODAY, WE GATHER HERE TO SIGN LEGISLATION -- THE
"FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND
ENFORCEMENT ACT OF 1989" -- WHICH REAFFIRMS THOSE
WORDS.
- 3 -
THIS LEGISLATION COMES TO GRIPS WITH THE PROBLEMS
FACING OUR SAVINGS AND LOAN INDUSTRY. IT WILL
SAFEGUARD AND STABILIZE AMERICA'S FINANCIAL SYSTEM.
AND PUT IN PLACE PERMANENT REFORMS so THESE PROBLEMS
WILL NEVER HAPPEN AGAIN.
MOREOVER, IT SAYS TO TENS OF MILLIONS OF S&L
DEPOSITORS: "You WILL NOT BE THE VICTIM OF OTHERS'
MISTAKES. WE WILL SEE -- GUARANTEE -- THAT YOUR
INSURED DEPOSITS ARE SECURE."
- 4 -
THIS, OF COURSE, WAS GOVERNMENT'S INTENT WHEN
FEDERAL DEPOSIT INSURANCE WAS CREATED IN 1933. YET AS
THAT SYSTEM INCURRED MASSIVE LOSSES OVER THE PAST TWO
DECADES, THE FUND DESIGNED TO PROTECT DEPOSITORS ITSELF
BECAME INSOLVENT.
THE CRISIS HAS BEEN TOLD, AND RE-TOLD. THE FEDERAL
INSURANCE FUND WAS UNABLE TO MAKE GOOD ON ITS
COMMITMENTS TO THE PUBLIC, OR TO CLOSE INSOLVENT
INSTITUTIONS.
- 5 -
THEIR LOSSES MOUNTING, HUNDREDS OF BANKRUPT
INSTITUTIONS WERE ALLOWED TO CONTINUE OPERATING.
ON FEBRUARY 6, I ANNOUNCED A PLAN TO CHANGE ALL
THAT. To PROTECT INSURED DEPOSITORS. AND TO
RESPONSIBLY FINANCE THE CLOSING OR OTHER RESOLUTION OF
ALL INSOLVENT INSTITUTIONS. WE SOUGHT TO ABOLISH LAX
REGULATIONS; TO INCREASE PENALTIES FOR WRONGDOING; AND
TO REFORM THE FINANCIAL SYSTEM.
- 6 -
AND ABOVE ALL, WE SOUGHT TO PROTECT THOSE WHO HAVE
RELIED ON GOVERNMENT TO FAITHFULLY FULFILL ITS
OBLIGATIONS.
I TAKE SPECIAL PLEASURE IN THE HISTORIC LEGISLATION
I WILL SIGN THIS MORNING. FOR THE TASK GROUP ON
REGULATION OF FINANCIAL SERVICES, WHICH I WAS PROUD TO
CHAIR, BEGAN THE EFFORT TO STRENGTHEN OUR FINANCIAL
SYSTEM. ITS WORK, AND THAT OF MANY OTHERS, WAS DEBATED
AND REFINED BY CONGRESS.
- 7 -
You SEE IT HERE: ALL 371 PAGES OF IT. No, THE BILL'S
NOT PERFECT. BUT IT IS A FIRST STEP, A CRUCIAL STEP,
TOWARD RESTORING PUBLIC CONFIDENCE. H.R. 1278 IS
RESPONSIVE, AND RESPONSIBLE. AND FOR THAT I SALUTE THE
CONGRESS. THIS BILL BALANCES AMERICA'S NEED FOR
FINANCIAL SECURITY, COMPETITIVENESS, AND EQUITY.
IN PARTICULAR, I WANT To THANK TWO COMMITTEE
CHAIRMEN --SENATOR DONALD RIEGLE AND REPRESENTATIVE
HENRY B. GONZALEZ -- FOR THEIR LEADERSHIP.
- 8 -
AND THEY WERE AIDED BY SENATOR JAKE GARN AND
REPRESENTATIVE CHALMERS WYLIE, WHO HELPED MAKE THESE
PROPOSALS A REALITY. AND SENATOR PHIL GRAMM. AND
NUMEROUS OTHER MEMBERS OF THE BANKING AND OTHER
COMMITTEES, FROM BOTH SIDES OF THE AISLE, WHO TOOK UP
THE CAUSE OF THE PUBLIC'S INTEREST.
THEN THERE'S TREASURY SECRETARY NICK BRADY, WHOSE
DEDICATED EFFORTS HAVE BEEN VITAL AND WHOSE LEADERSHIP
HAS BEEN TRULY OUTSTANDING.
- 9 -
AND SO HAVE THOSE OF DIRECTOR DICK DARMAN. AND I WOULD
BE REMISS NOT TO SALUTE HUNDREDS OF OTHERS ON THE
STAFFS OF THE VARIOUS REGULATORY AGENCIES AND
CONGRESSIONAL COMMITTEES. THEY, Too, DESERVE OUR
THANKS.
BECAUSE OF THEM, OF YOU HERE TODAY, AND so MANY
OTHERS, THIS LEGISLATION WILL GIVE US THE TOOLS TO MAKE
OUR THRIFT INSTITUTIONS AND OUR FINANCIAL SYSTEM AS A
WHOLE STRONG AND STABLE.
- 10 -
WITH THIS BILL'S SUBSTANTIAL FUNDING, WE WILL BEGIN --
HERE, AND NOW -- TO ELIMINATE THE ONGOING LOSSES OF THE
INSOLVENT FIRMS. AND TO ENSURE THAT NOT ONE DOLLAR OF
INSURED FUNDS WILL BE LOST BY ANY DEPOSITOR.
TOWARD THAT END, THIS LEGISLATION ABOLISHES THE
AGENCY ONCE RESPONSIBLE FOR THRIFT SUPERVISION. IN ITS
PLACE A NEW AGENCY WILL OPERATE AS PART OF THE TREASURY
DEPARTMENT -- ENSURING THE TAXPAYERS' INTERESTS WILL
ALWAYS COME FIRST.
- 11 -
AT THE SAME TIME, A COMPLETELY NEW INSURANCE FUND
WILL PROTECT DEPOSITS IN THRIFT INSTITUTIONS. THE
OBLIGATIONS OF THIS NEW FUND -- CALLED THE SAVINGS
ASSOCIATION INSURANCE FUND -- SAIF [SAFE] -- WILL BE
FULLY GUARANTEED BY THE FULL FAITH AND CREDIT OF THE
UNITED STATES. THE NEW SEAL DISPLAYED HERE SYMBOLIZES
THIS NEW FUND, AND OUR COMMITMENT TO PROTECTING
DEPOSITORS.
- 12 -
GOOD STEPS? VITAL STEPS. AND THIS LEGISLATION
GOES STILL FURTHER.
BEGINNING TODAY, PENALTIES FOR WRONGDOING BY
OFFICERS AND DIRECTORS OF INSURED INSTITUTIONS WILL BE
INCREASED TO UP TO $1 MILLION PER DAY. AND CRIMINAL
PENALTIES WILL BE TOUGHENED FROM YESTERDAY'S SLAP ON
THE WRIST TO THE CLANG OF A PRISON DOOR. THOSE WHO TRY
AND LOOT THE SAVINGS OF THEIR FELLOW CITIZENS DESERVE,
AND WILL RECEIVE, SWIFT AND SEVERE PUNISHMENT.
- 13 -
ALSO: STARTING TODAY, TOUGHER REQUIREMENTS FOR
SAFE AND SOUND OPERATING PRACTICES WILL BEGIN TO TAKE
EFFECT. NEVER AGAIN WILL AMERICA ALLOW ANY INSURED
INSTITUTION TO OPERATE NORMALLY IF OWNERS LACK
SUFFICIENT TANGIBLE CAPITAL TO PROTECT DEPOSITORS AND
TAXPAYERS ALIKE. AND TODAY, Too, WE BEGIN USING THE
NEW RESOURCES AVAILABLE TO ACCELERATE THE RESOLUTION OF
FAILED INSTITUTIONS. AND TO RECOVER EVERY POSSIBLE
DOLLAR FROM THEIR ASSETS FOR THE TAXPAYERS.
- 14 -
AT THE SAME TIME, WE WILL SEEK TO MINIMIZE ADVERSE
IMPACT ON LOCAL MARKETS.
THESE REFORMS WILL HELP OUR SYSTEM RIGHT ITSELF.
FOR WHILE THE S&L CRISIS ISN'T BEHIND US, WE HAVE
MET -- AND PASSED -- OUR FIRST CRITICAL TEST. MORE
HARD CHOICES, AND CHALLENGES, LIE AHEAD. BUT WE WILL
MEET THEM AS WE HAVE THIS CHALLENGE -- CONSULTING,
COOPERATING, BETWEEN CONGRESS AND THE EXECUTIVE BRANCH.
- 15 -
As WE DO, WE WILL KEEP THE NEW FEDERAL DEPOSIT
INSURANCE SYSTEM SOLVENT. AND HELP SERVE THOSE
MILLIONS OF SMALL SAVIRS WHO MAKE AMERICA GREAT: THE
LOCAL PAPERBOY LOOKING AHEAD TO COLLEGE; THE YOUNG
COUPLE DREAMING OF THEIR FIRST HOME; THE RETIRED
TEACHER WHOSE SAVINGS ARE HER LIFE LINE. WE HAVE A
COMMITMENT TO PROTECT THE SAVINGS OF THESE AMERICANS
AND MILLIONS LIKE THE ACROSS THE NATION. AND WE WILL
HONOR THAT COMMITMENT.
- 16 -
TOGETHER -- REPUBLICANS AND DEMOCRATS -- WE CAN
KEEP AMERICA'S ECONOMY No. 1 IN THE WORLD. WE CAN --
AND WILL -- PRESERVE A SAFE, EFFICIENT, AND EQUITABLE
FINANCIAL SYSTEM FOR DURSELVES AND, YES, FOR OUR KIDS.
THANK YOU FOR COMING HERE AND FOR YOUR SUPPORT,
BOTH PAST AND FUTURE.
- 17 -
AND NOW, IT IS MY HONOR TO SIGN THE LEGISLATION WHICH
WILL PROTECT OUR NATION'S FINANCIAL SYSTEM, AND TENS OF
MILLIONS OF OUR FELLOW AMERICANS.
# # # #