Statement of Administration Policy: S. 2752 - Recapitalization of the Federal Savings and Loan Insurance Corporation and Extension of Expiring Garn-St Germain Depository Institution Act Authorities

(Senate)
(Garn (R) Utah)

The Administration strongly supports legislation to recapitalize the Federal Savings and Loan Insurance Corporation fund and to provide the financial institution regulatory agencies with additional authorities to assist troubled institutions, including an extension of the authorities of the Garn-St Germain Depository Institutions Act of 1982.

The Administration strongly opposes section 105 of S. 2752, however, which would exempt the regulatory agencies from the President's apportionment authority. Apportionment authority is essential in ensuring that the President and his senior advisors are able to oversee and manage the Executive branch — of which the regulatory agencies are a part — in an effective and efficient manner. The Director of the Office of Management and Budget will recommend disapproval of S. 2752, if the proposed exemptions from apportionment authority are not deleted.