CLEVELAND - Jerry Jordan, president of the Federal Reserve Bank of Cleveland, called for reductions in government regulations of the nation's savings and loan associations and for the quick closing of failing depository institutions.
Mr. Jordan, speaking before a meeting of the Ohio Savings and Loan League, said the recent performance of depository institutions was the result of too much government regulation rather than too little. He said the cost of compliance has put S&Ls at a competitive disadvantage to financial institutions regulated by the Securities and Exchange Commission.
Mr. Jordan proposed that healthy depository institutions be excepted from government regulations. Sick but potentially viable institutions are where all of the government supervisory efforts should be focused, he said, and terminally ill institutions should be closed.