Insurance Aspects of Banking Reform: Hearing Before the Subcommittee on Commerce, Consumer Protection, and Competitiveness of the Committee on Energy and Commerce, House of Representatives, One Hundred Second Congress, First Session, July 11, 1991, Volume 4 |
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ability Administration's American Express annuities assets authority BALLWEG bank entry Bank Holding Company bank insurance bank's banking and insurance banking industry banking organizations banking regulators banking system banks to engage benefits BHCA billion capital client COLLINS commercial banks community banks competition Congress consumer protection CUSTIS customers deposit insurance DINGELL diversified holding company FDIC Federal Reserve financial institutions financial services financial services holding firewalls FSHC House Banking Committee independent agents insurance affiliate insurance agents insurance companies insurance coverage insurance industry insurance powers insurance products insurance sales insurance underwriting interstate banking investment issue legislation lender loan loophole Madame Chairwoman marketplace McFadden Act MCMILLAN mortgage NACSA member national banks needs nonbanking North Carolina offer percent permit banks POWELL premium problems prohibited regulatory restrictions retail risk sale of insurance securities sell insurance small business solvency Subcommittee subsidiary testimony thrift tie-ins title insurance too-big-to-fail Treasury proposal underwrite insurance YINGLING
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Page 118 - By and large, these protections, at least for the banking industry, already exist. For example, Section 106 of the Bank Holding Company Act Amendments of 1970 (12 USC 1972) prevents consumers from being required to purchase other corporate products as a condition of obtaining a bank product. Such illegal "tie-ins" would subject violators to substantial damages.
Page 1 - HOUSE OF REPRESENTATIVES, COMMITTEE ON ENERGY AND COMMERCE, SUBCOMMITTEE ON COMMERCE, CONSUMER PROTECTION, AND COMPETITIVENESS, Washington, DC. The subcommittee met, pursuant to notice, at 10 am, in room 2322, Rayburn House Office Building, Hon.
Page 123 - Furthermore, all extensions of credit must be conducted on an ann's-length basis, including credit standards substantially the same or at least as favorable to the bank as those employed in transactions with non-affiliates.
Page 120 - In its 1987 study of banks' sales of life insurance the Consumer Federation of America (CFA) found that banks were generally doing a good job of selling life insurance, that coercive tying did not appear to be a problem, and that banks' sales of life insurance could provide substantial consumer benefits.
Page 133 - ... as consumers and providers of financial services, we believe that the plan does not adequately address the needs of Main Street America, its small businesses, consumers, farmers, ranchers, and religious and charitable organizations".
Page 140 - The captive bank will attract low-cost funds through insured deposits and will deploy them to finance retailers, jobbers, manufacturers and individuals who further the distribution of the parent's products and services. The bank will be inclined to withhold credit from those who are, or could be, competitors to the parent corporation.
Page 141 - This evaluation also applies both to consumer protection firewalls and to financial firewalls, designed to prevent nonbanking losses from spilling over to insured banks. Risk to the Safety Net If the financial firewalls fail, the Treasury bill will extend the federal safety net under massive financial/commercial conglomerations. Under the too-big-to-fail doctrine the taxpayers could wind up underwriting all of the risks they take. As the GAO put in recent testimony: [N]ot enough is known about what...
Page 139 - First, when they are needed most, firewalls will not work... Second, it is inevitable that at least parts of the supervisory system - if not the safety net - will be extended to commercial owners of banks.. .Third, the risks of concentration of economic resources and power are great... Finally, the potential benefits that might grow out of bankingcommercial combinations strike me as remote at best and illusory at worst....
Page 7 - Except for serious character problems most weaknesses are curable if the contractor is willing to make the necessary effort." (Statement of Dennis E. Wine, Vice President, The Surety Association of America, to the Subcommittee on Commerce, Consumer Protection and Competitiveness of the House Committee on Energy and Commerce, June 29, 1988) ASA agrees that this is true, but only if the contractor is aware of what the surety perceives are its weaknesses. The "Equal Surety Bond Opportunity Act" would...
Page 154 - I hope so. Senator PELL. I would like to thank you very much, Senator Griffin, for your kindness in letting me be here and inviting me to participate. I am most appreciative. Thank you very much, very much. Senator GRIFFIN.