CHAIRMAN HELFER PRAISES CONGRESS FOR PASSING SAIF LEGISLATION
FOR IMMEDIATE RELEASE PR-79-96 (10-1-96)
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
"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
"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
"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).