Garn-St. Germain Depository Institutions Act

Garn-St. Germain Depository Institutions Act

The Garn-St. Germain Depository Institutions Act of 1982 (USPL|97|320, USBill|97|H.R.|6267, enacted 1982-10-15) is an Act of Congress, that deregulated the Savings and Loan industry. This Act turned out to be one of many contributing factors that led to the Savings and Loan crisis of the late 1980s. [Leibold, Arthur. "Some Hope for the Future After a Failed National Policy for Thrifts" "in" Barth, James et al. " [http://books.google.com/books?id=lzys8fDJn3AC&pg=PA58&ots=GY1occB50v&dq=garn+and+%22strunk+and+case%22+and+%22Where+deregulation+went+wrong%22&sig=w5wF8tDnYHZjj7vue2Y_cxALc-c#PPA58,M1 The Savings and Loan Crisis: Lessons from a Regulatory Failure] ", pages 58-59 (2004). Leibold cites Strunk and Case, "Where Regulation Went Wrong: A Look at the Causes Behind Savings and Loan Failures in the 1980s", pages 14-16 (1988).]

The bill, whose full title was "An Act to revitalize the housing industry by strengthening the financial stability of home mortgage lending institutions and ensuring the availability of home mortgage loans," was a Reagan Administration initiative. [Reagan, Ronald. [http://www.reagan.utexas.edu/archives/speeches/1982/101582b.htm "Remarks on Signing the Garn-St Germain Depository Institutions Act of 1982"] (1982-10-15).]

The bill is named after its sponsors, Congressman Fernand St. Germain, Democrat of Rhode Island, and Senator Jake Garn, Republican of Utah. The bill had broad support in Congress, with co-sponsors including Charles Schumer and Steny Hoyer. [ [http://thomas.loc.gov/cgi-bin/bdquery/z?d097:HR06267:@@@P H.R. 6267, Cosponsors] .] The bill passed overwhelmingly, by a margin of 272-91 in the House. [ [http://thomas.loc.gov/cgi-bin/bdquery/z?d097:HR06267:@@@R H.R. 6267, Major Actions] .]

Title VIII, Alternative Mortgage Transactions, allowed Adjustable rate mortgages [ [http://www.phil.frb.org/src/Garn.html FRB Philadelphia - PL 97-320, Garn-St Germain Act ] ]

References

Further reading

*cite journal |last=Cornett |first=Marcia Millon |authorlink= |coauthors=Tehranian, Hassan |year=1990 |month= |title=An Examination of the Impact of the Garn-St. Germain Depository Institutions Act of 1982 on Commercial Banks and Savings and Loans |journal=Journal of Finance |volume=45 |issue=1 |pages=95–111 |doi=10.2307/2328811 |url= |accessdate= |quote=

External links

* [http://thomas.loc.gov/cgi-bin/bdquery/z?d097:HE00603:@@@L&summ2=m& Bill summary and status]
* [http://www.phil.frb.org/src/Garn.html Full text of bill]


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