October 15, 1982
Thank you all very much, and thank you for joining us to sign this historic reform. This bill is the
most important legislation for financial institutions in the last 50 years. It provides a long-term
solution for troubled thrift institutions. It's proconsumer, granting small savers greater access to
loans, a higher return on their savings. And when combined with recent sharp declines in interest
rates, it means help for housing, more jobs, and new growth for the economy. All in all, I think we
hit the jackpot.
Let me just divert here for a moment to underline the importance of something that we've been
saying since our administration took over. Bringing down inflation brings down interest rates
which brings backs the economy. And what a better way to cap off a big week of momentum
toward recovery than this morning's Producer Price Index report -- down another one-tenth of 1
percent last month, and up only 3.1 percent so far this year. If that rate holds steady, it'll be the
best performance in 10 years.
Now, this bill also represents the first step in our administration's comprehensive program of
financial deregulation. I particularly want to commend the leadership of the chairman, Senator
Garn, and Chairman St Germain, along with Secretary Regan and his fine team at Treasury. They
did a remarkable job forging a consensus within the Congress and among affected industries in
favor of the bill's deregulatory provisions. I'd like to also thank Congressmen Stanton, Wylie, and
LaFalce for their assistance.
What this legislation does is expand the powers of thrift institutions by permitting the industry to
make commercial loans and increase their consumer lending. It reduces their exposure to changes
in the housing market and in interest rate levels. This in turn will make the thrift industry a
stronger, more effective force in financing housing for millions of Americans in the years to
come.
Unfortunately, this legislation does not deal with the important question of delivery of other
financial services, including securities activities by banks and other depository institutions. But I'm
advised that many in the Congress want to put this question at the top of the banking deregulatory
agenda next year, and I would strongly endorse such an initiative and hope that at the same time,
the Congress will consider other proposals for more comprehensive deregulation which the
administration advanced during the 97th Congress.
Thank you all again. I'm very pleased to sign this Garn-St Germain Depository Institutions Act of
1982.
Note: The President spoke at 11:03 a.m. at the signing ceremony in the Rose Garden at the White
House.
As enacted, H.R. 6267 is Public Law 97 - 320, approved October 15.