Garn-St. Germain Depository Institutions Act

Garn-St. Germain Depository Institutions Act,

Definition of Garn-St. Germain Depository Institutions Act:

  1. The Garn-St. Germain Depository Institutions Act was enacted by Congress in 1982 to ease pressures on banks and savings and loans which increased after the Federal Reserve raised rates in an effort to combat inflation. The act followed the establishment of the Depository Institutions Deregulation Committee by the Monetary Control Act, which had the primary purpose of phasing out interest rate ceilings on bank deposit accounts by 1986.

  2. The Garn-St. Germain Depository Institutions Act was named after sponsors Congressman Fernand St. Germain, a Democrat from Rhode Island, and Senator Jake Garn, a Republican from Utah. Co-sponsors of the bill included Congressman Steny Hoyer and Senator Charles Schumer. The bill passed the House with a substantial margin of 272-91.

  3. A federal law, enacted in 1982, that deregulated savings and loan institutions and allowed banks flexible financing products, such as adjustable rate mortgages. The bills title explains its purpose An Act to Revitalize the Housing Industry by Strengthening the Financial Stability of Home Mortgage Lending Institutions and Ensuring Availability of Home Mortgage Loans. However, the bill has been credited with opening the door to the savings and loan crisis of the late 1980s.

How to use Garn-St. Germain Depository Institutions Act in a sentence?

  1. The Garn-St. Germain Depository Institutions Act eased bank pressure and was intended to combat inflation.
  2. Title VIII of the Garn-St. Germain Depository Act allowed banks to offer adjustable-rate mortgages.
  3. This act was named after Congressman Fernand St. Germain and Senator Jake Garn. Congressman Steny Hoyer and Senator Charles Schumer were cosponsors.

Meaning of Garn-St. Germain Depository Institutions Act & Garn-St. Germain Depository Institutions Act Definition