Apr 23 2002

SENATE COMMITTEE HOLDS HEARING ON DEPOSIT INSURANCE REFORM

STATEMENT OF SEN. RICHARD C. SHELBY (R-ALA.)

U.S. Senator Richard C. Shelby today commented on issues related to the Federal Deposit insurance system:

"As this debate moves forward, I think we have to be mindful of two critical issues: The first is the role that deposit insurance plays in our banking system. By protecting savings, insurance promotes confidence in the banking system. This faith in turn, ensures the financial stability necessary for economic growth. Therefore, I think our focus should be on those changes which boost stability and confidence and enhance the strength of the banking system."

"Secondly, deposit insurance is the nexus that links the banking system directly to the pocketbook of the American taxpayer. As someone who participated in the clean-up of the Thrift debacle, I know first-hand that the taxpayer is ultimately on the hook for the losses of insured institutions. Therefore, I believe that we must proceed only after thorough consideration of the implications reform may have for new or additional taxpayer exposure."