OCTOBER 28 AND NOVEMBER 3, 1987 Printed for the use of the Committee on Banking, Finance and Urban Affairs Serial No. 100-40 U.S. GOVERNMENT PRINTING OFFICE For sale by the Superintendent of Documents, Congressional Sales Office U.S. Government Printing Office, Washington, DC 20402 WALTER E. FAUNTROY, District of STEPHEN L. NEAL, North Carolina CARROLL HUBBARD, JR., Kentucky BRUCE A. MORRISON, Connecticut ESTEBAN EDWARD TORRES, California PAUL E. KANJORSKI, Pennsylvania DAVID E. PRICE, North Carolina NANCY PELOSI, California PAUL E. KANJORSKI, Pennsylvania STEPHEN L. NEAL, North Carolina BRUCE A. MORRISON, Connecticut ESTEBAN EDWARD TORRES, California ELIZABETH J. PATTERSON, South Carolina Clarke, Robert L., Comptroller of the Currency Seidman, L. William, chairman, Federal Deposit Insurance Corporation. Clarke, Robert L. dated October 28, 1987, with a list of studies of the effects of commercial bank entry into revenue bond underwriting Seidman, L. William, with attached book entitled "Mandate For Change". Wylie, Hon. Chalmers P............. 423 ADDITIONAL MATERIAL SUBMITTED FOR INCLUSION IN THE RECORD Clarke, Robert L.: Cover letters with responses to questions, and with miscellaneous materi- 450 News release, dated November 27, 1987, Guidelines for Compliance With 397 Statement, dated November 19, 1987, with questions and the responses, Seidman, L. William, cover letters with questions and the responses St Germain, Hon. Fernand J., question asked by him and the response. 303 WITNESS ADDITIONAL MATERIAL SUBMITTED FOR INCLUSION IN THE RECORD Baker, James A. III, letter to Chairman St Germain dated October 28, 1987..... Gould, Hon. George D.: Page Letter to Chairman St Germain dated December 8, 1987, with tables and miscellanous information..... 625 Statement on the Financial Modernization Act of 1987, S. 1886. 598 St Germain, Hon. Fernand J., letters to Hon. George D. Gould with attached questions and his response.. 572 Letter of Invitation to Hon. James A. Baker 546 Major Broker-Dealers, position table of Eleven Major Securities Broker-Deal ers....... 624 REFORM OF THE NATION'S BANKING AND FINANCIAL SYSTEMS WEDNESDAY, OCTOBER 28, 1987 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON FINANCIAL INSTITUTIONS SUPERVISION, COMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS, The subcommittee met at 10 a.m. in room 2128 of the Rayburn House Office Building, Hon. Fernand J. St Germain [chairman of the subcommittee] presiding. Present: Chairman St Germain, Representatives Wylie, Gonzalez, Leach, Parris, Neal, McCollum, Hubbard, Wortley, LaFalce, Dreier, Vento, Barnard, Ridge, Schumer, Bartlett, Roth, Frank, Roemer, Lehman, Morrison, Saxton, Kaptur, Swindall, Erdreich, Carper, Torres, Kleczka, Kanjorski, Patterson, McMillen, Kennedy, and Price. Also present: Representatives Flake, DioGuardi, Pelosi, and Delegate Fauntroy. Chairman ST GERMAIN. The subcommittee will come to order. Today, the subcommittee continues its hearings on broad-based reform of the Nation's banking and financial system. We're delighted to have as our witnesses this morning Hon. Robert L. Clarke, Comptroller of the Currency, and Hon. L. William Seidman, Chairman of the Federal Deposit Insurance Corporation. The rapid changes taking place in our domestic and global economy due to technological advances, instant communication capabilities and the proliferation of all kinds of financial instrumentalities demand that the comprehensive review of this Nation's legal and regulatory financial system be undertaken. I am committed to this task and today's hearing is but one of many this subcommittee will have. Globalization of the markets, the interdependence between our national and international economies and the impact our current financial structure has on the abilities of our financial institutions to compete in today's domestic and international markets will be explored thoroughly. However, in our efforts to find the solutions to problems_embodied in today's financial system as it is currently structured, we must never forget the hard lessons this country has learned from the past. The two witnesses before this subcommittee today are respected not only because of their current official positions, but for the vast (1) |