Reagan Signs Banking Bill
President Reagan put the brakes on deregulation of the banking industry today in exchange for a $10.8-billion bailout of the federal agency that insures deposits at the nation’s savings and loans.
In a brief Oval Office ceremony, Reagan signed the Competitive Equality Banking Act of 1987, which allows the Federal Savings and Loan Insurance Corp. to raise $10.8 billion in bond sales to subsidize takeovers of failing thrift institutions. The measure also limits the time banks can hold depositor checks before making funds available to them.
Reagan agreed to sign the bill only after Congress agreed to increase the level of FSLIC recapitalization.
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