BANKING & FINANCE - Oct. 3, 1992
Politics Cited for Bank Closure Delays: The chairman of the House Banking Committee has charged that federal regulators are bowing to political pressure and are delaying the closings of hundreds of ailing banks before the November election. “It is unconscionable,” said Rep. Henry B. Gonzalez (D-Tex.), “that politics gets in the way of good regulatory practices.” Bank closings slowed this year, but regulators for several months have warned that up to 80 banks with $20 billion in assets could be closed early next year after tough new bank regulations take effect Dec. 19. But Gonzalez said regulators should not wait for new regulations to kick in before shutting down ailing banks.
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