40 Wash. & Lee L. Rev. 1313 (1983)
Garn-St Germain: A Harbinger of Change

handle is hein.journals/waslee40 and id is 1325 raw text is: WASHINGTON AND LEE
LAW REVIEW
Volume 40                       Fall 1983                      Number 4
GARN-ST GERMAIN: A HARBINGER OF CHANGE
STANLEY M. GORINSON*
GLENN B. MANISHIN**
On October 15, 1982, President Reagan signed into law the Garn-St
Germain Depository Institutions Act of 1982 (Garn-St Germain or the
Act).' Although not as transcendent an achievement as claimed by its
champions, Garn-St Germain is nonetheless a most significant piece of
legislation. Included within the Act's myriad provisions, which comprise
some 8 separate titles2 and some 165 different statutory sections, are
measures relating to thrift institutions, commercial banks, bank and sav-
ings and loan (S&L) holding companies, and both federal regulatory agen-
cies and deposit insurance corporations. Indeed, one provision of the Act,
directing the expeditious establishment of an account for depository in-
stitutions directly equivalent to and competitive with money market
mutual funds,' has proved both an immediate boon to consumers and a
source of significant short-run cash flow to hard-pressed thrift institutions.
When the excitement generated by these money market deposit ac-
counts and Super NOW accounts subsides, however, it will become ap-
parent that Garn- St Germain is but one small step in the transition rapidly
The views contained in this article are solely those of the authors and do not necessarily
represent the views of the United States Department of Justice.
* Chief, Special Regulated Industries Section, Antitrust Division, United States Depart-
ment of Justice; J.D. Rutgers University, 1973; B.A. Brooklyn College, 1967.
** Attorney, Special Regulated Industries Section, Antitrust Division, United States
Department of Justice; J.D. Columbia University, 1981; B.A. Brandeis University, 1977.
Pub. L. No. 97-320, 96 Stat. 1469 (1982). Upon signing the Act, President Reagan
described the legislation as the most important legislation for financial institutions in the
last 50 years. Remarks on Signing H.R. 6267 Into Law, 18 Weekly Camp. Pres. Doc. 1319
(Oct. 15, 1982).
2 See Pub. L. No. 97-320, 96 Stat. 1469 (1982). The eight legislative titles include five
separate Acts within the Garn-St Germain Act itself. See title I, Deposit Insurance Flex-
ibility Act, id. §§ 10141; title II, Net Worth Certificate Act, id. §5 201-06; title III, Thrift
Institution Restructuring Act, id. §§ 301-55; § 410, Banking Affiliates Act of 1982, id. S
410; title VIII, Alternative Mortgage Transaction Parity Act of 1982, id. SS 801-07.
1 Id. 5 327 (to be codified at 12 U.S.C. 5 3503(c)(1)). See infra notes 71-75 and accom-
panying text.

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