Financial Institutions Deregulation Legislation White House Statement on Senate Approval of the Legislation.

The President applauds the Thursday night Senate action which would give an important break to small savers. The bill approved by the Senate contains major recommendations that the President submitted to Congress in May.

The President proposed and now, under the leadership of Banking Committee Chairman Senator William Proxmire, the Senate has agreed that major deregulatory reforms in the financial area are needed: the phaseout of federally imposed deposit interceilings that limit the interest that savers earn on their savings accounts, the reversal of an appellate court decision that would have prohibited the proconsumer automatic transfer system, and the validation nationwide of proconsumer NOW accounts and share draft accounts at credit unions.

"The Senate has taken a significant step," the President said, "to provide equity for savers in our country and to assist depository institutions in competing more effectively for funds." The President urged that the House-Senate conference committee members "act promptly to return to both Houses for final approval legislation that will provide this critically important relief to small savers."