Despite Frustrations, Republican Congress Is Not Banks' Enemy

To the Editor:

I would like to comment on the Oct. 13 column by Robert Garsson, "Some Bankers See GOP as the Enemy."

I believe that, in large part because of the headline, the column left an overblown impression of the industry's and ABA's relationship with the Republican-controlled Congress.

Mr. Garsson attended the ABA's convention, and he was entirely correct to point out that many bankers there expressed disappointment with where banking legislation stands at this point.

Unfortunately, the Congressional process on legislation affecting banks is usually complex and generally involves a mixed bag of pluses and minuses.

In the House, for example, we see pluses - including new powers in securities and other financial services, regulatory-burden relief, reductions in bank premiums to the Bank Insurance Fund, and premium rebate authority - and we see minuses, including being made responsible for the Financing Corp. interest payments and restrictions on insurance authorities.

A saying that we often use at the ABA is that legislation is a process, not an event. That certainly applies this year.

Of course we have had some disappointments with Republicans - and with Democrats for that matter. But I know bankers do not see the Republicans as the "enemy."

For example, on the issue of regulatory-burden relief, Republicans have been the primary sponsors. And Republicans have also pushed forward tax changes important to the ABA, such as expanding IRAs and reducing capital gains taxes.

Furthermore, it is important to note that the Republicans on the House Banking Committee under Chairman Leach planned to report out clean legislation on both regulatory burden and bank securities authorities. They have dealt openly and fairly with the banking industry.

Unfortunately, the Republican leadership insisted on adding negative provisions. Our goal must be to convince them that these anti-competitive provisions should be removed - and indeed, that they are anathema to the basic pro-marketplace philosophy of Republicans generally.

Donald G. Ogilvie

Executive vice president American Bankers Association Washington

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