Don Young’s History Fairbanks vs. Don Young

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Don Young supported deregulatory measures that led to a $120 billion bailout of the savings and loan industry during the late 1980’s

Don Young cosponsored the Depository Institutions Deregulation and Monetary Control Act of 1980 (H.R. 4986) and supported the Garn-St Germain Depository Institution Act of 1982 (H.R. 6267). These bills are widely recognized as direct causes for the $120 billion savings and loan industry meltdown and bailout during the 1980’s. These bills:

  • Lifted federal limits on interest rates paid by S&L institutions with federally insured deposits,
  • Increased the limit of federally insured deposits from $40,000 to $100,000
  • Allowed Savings and Loans to invest up to 90% of their assets in risky loans during a seven year period before the bailout, and

Taxpayers were liable for the bailout since Congress insured the deposits, and deregulated the S&L industry in a manner that caused this train wreck

 

Bill

Don Young’s Action:

Effect

Date

Status

H.R.14279

Voice Vote

Financial Institutions Regulatory and Interest Rate Control Act of 1978. Allow flexible regulation of interest rates on accounts in depository institutions

10/11/78

Passed into Law

H.R. 4986

Co-Sponsor, Voted *, Roll Call 454 and 164

Depository Institutions Deregulation and Monetary Control Act of 1980 – Increased federal deposit guarantee to $100,000 per account

9/11/79 & 3/27/80

Passed into Law

H.CON. RES. 290

Missed Vote, Roll Call 29

Reaffirmation that deposits up to the statutorily prescribed amount, are backed by the full faith and credit of the United States

3/16/82

Passed House and Senate

H.R. 6267

Voted Yes, Roll Call 92

Garn-St Germain Depository Institution Act of 1982. Encouraged insolvent S&L’s to invest up to 90 percent of their assets in risky loans, dramatically increasing the bailout costs seven years later

5/20/82

Passed into Law

H.R. 6294

Cosponsor, Voted Yes, Roll Call 66

Bailout proposal directing the federal government to pay lenders over a 7 year period to bring the effective interest rate down for qualified borrowers.

5/11/82

Passed in House, died in Senate

S.J. RES. 271

Passed House with Unanimous Consent – Individual votes not recorded

Technical “corrections” to the Garn-St Germain Depository Institution Act of 1982, allowing S&L’s to enter new markets including construction lending and checking accounts.

12/21/82

Passed into Law

H.R. 27 and S. 790

Voted Yes, Roll Call 85

Competitive Equality Banking Act of 1987 – Initiated inadequate reform efforts for the S&L industry.

5/5/87

Passed into Law

 

* Data incomplete; this is a work in progress. Visit often to review Don Young voting patterns as our research is further developed.

 Epilogue: As the crises became irreversible, Don Young voted for bailing-out the S&L industry

Bill

Don Young’s Action:

Effect

Date

Status

H.R. 1278

Voted Yes, Roll Call 95

1989 S&L Bailout, closed insolvent institutions and repaid depositors, radically reordered the industry's regulatory structure, and officially confirmed that taxpayers would foot the bill – eventually $120 billion

6/15/89

Passed into Law

H.RES. 298

Voted Yes, Roll Call 422

Expedite agreement with Senate on increasing credit to FDIC from $5 billion to $30 billion

11/23/91

Passed in House

H.R.3768

Voted Yes, Roll Call 415

Federal Deposit Insurance Corporation Improvement Act of 1991, Increase credit to FDIC from $5 billion to $30 billion.

11/21/91

Passed in House

H.R. 1340

Voted Yes, Roll Call 434

Additional $10 billion funding for S&L bailout

9/14/93

Passed in House

S. 714

Voted Yes, Roll Call 613

Additional $10 billion funding for S&L bailout

11/22/93

Passed into Law

 

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