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CHAIRMAN HELFER PRAISES CONGRESS
FOR PASSING SAIF LEGISLATION
|FOR IMMEDIATE RELEASE
| Media Contact:
Carolyn Ryals (202) 416-2571
Clark Blight (202) 416-2583
FDIC Chairman Ricki Helfer praised Congress for passing legislation that will put the deposit insurance funds on a sound footing.
"This bill is good for the nation's financial system and good for America's depositors," she said. "By capitalizing the Savings Association Insurance Fund, Congress has fixed a structural defect in the deposit insurance system that threatened not only the SAIF, but the strength of the deposit insurance system as well.
"The legislation assures Americans that their deposits are safe," she added.
Chairman Helfer also thanked bankers and thrift executives for working together in the final months of the Congressional session to make the legislation possible.
"I appreciate the very constructive part that banks and thrift institutions are playing in solving a problem that is not of their making," she said.
The thrift industry is paying a one-time assessment of $4.5 billion to capitalize the SAIF, and banks will bear part of the cost of the Financing Corporation bonds sold from 1987-89 in an effort to shore up the former Federal Savings and Loan Insurance Corporation, Chairman Helfer noted.
BIF-member institutions will pay one-fifth the rate paid by SAIF members for the first three years. After January 1, 2000, BIF and SAIF members will share the FICO payments on a pro-rata basis.
"In the long run, banks and thrifts both benefit from the legislation because insured by the FDIC' will continue to be synonymous with depositor protection, as it has been since 1933," Chairman Helfer said.
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 11,670 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.
FDIC press releases and other documents are available on the Internet via the World Wide Web at www.fdic.gov or through Gopher at gopher.fdic.gov. They may also be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 ((703) 562-2200).
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