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Article: Feared rules, 3 years in making, emerging as toothless tigers. (Federal Deposit Insurance Corp. Improvement Act)
- Article from:
- American Banker
- Article date:
- February 16, 1995
- Author:
CopyrightCOPYRIGHT 1995 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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WASHINGTON - The Federal Deposit Insurance Corp. improvement Act lost some of its bite over the three years it took regulators to write implementing rules.
The best illustration: On March 22 new safety and soundness guidelines will go into effect, but no one expects them to have much impact on the way banks are run.
That wasn't the expectation in 1991 when Congress passed the law, whose section 132 demands regulations dictating how much bankers can pay top executives, what OW of internal controls an institution must employ, and how tough a bank's underwriting standards should be.
But a series of factors conspired to defang the section.
Reacting ...