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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. 1313

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