Roukema bill would repeal examination fee authority

Examination fee authority for the FDIC and Federal Reserve System would be repealed under legislation introduced by Rep. Marge Roukema (R-N.J.), chairwoman of the House Financial Institutions Subcommittee.

Her action was in response to Clinton Administration proposals to require new fees by federal regulators on state-chartered banks.

"We need to stop this budget gimmickry and take this off the table as soon as possible,' Roukema said. "This is the seventh year in a row that the administration has proposed this unnecessary fee. The agencies have consistently said they don't need it to fund their operations. And the Banking Committee and Congress have rejected the request on a bipartisan basis every year."

The measure is H.R. 3900. Roukema has also introduced H.R. 3899, which would merge the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF).

Edward Yingling, executive director, government relations, for the American Bankers Association (ABA), said the ABA opposes the legislation because it merges BIF and SAIF without addressing other key deposit insurance issues.

"In ABA's recent testimony before the House Financial Institutions Subcommittee," Yingling said, "ABA indicated that any legislation addressing a BIF/SAIF merger should also address other key issues, including capping the insurance funds, providing rebates and merging the OTS and OCC."

He said that the ABA "will strongly advocate a comprehensive approach and oppose a single merger, which, if enacted, would ensure that Congress does not address other important related issues for years to come."