FOR IMMEDIATE RELEASE
February 26, 2003
Contact: Robert M. Garsson
Comptroller Hawke Urges Senate to Reform FDIC Insurance Fund
WASHINGTON — Comptroller of the Currency John D. Hawke, Jr., in testimony today before the Senate Committee on Banking, Housing and Urban Affairs, said Congress should address a number of flaws in the deposit insurance system, including several introduced in the last two decades.
"Legislation adopted in response to the banking and thrift crises of the 1980s and early 1990s has had the effect of preventing the FDIC from taking what it had reason to believe were sensible and necessary actions," Mr. Hawke said. "Due in large part to these statutory restrictions, the FDIC cannot price deposit insurance in a way that accurately reflects the risks posed by different depository institutions and that avoids the need for sharp increases in premiums if a fund experiences significant losses."
The Comptroller told the Senate panel that:
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