Depository Institutions Deregulation and Monetary Control Act: Difference between revisions

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{{Primary sources|date= October 2008}}
The '''Depository Institutions Deregulation and Monetary Control Act''' (H.R. 4986) (often abbreviated '''DIDMCA''' or '''MCA''') is a [[United States federal law|United States federal]] financial statute passed in 1980 and signed by President [[Jimmy Carter]] on March 31st.<ref>http://www.presidency.ucsb.edu/ws/index.php?pid=33206#axzz1mquUfO88</ref> It gave the [[Federal Reserve]] greater control over non-member banks.
The '''Depository Institutions Deregulation and Monetary Control Act''' (H.R. 4986) (often abbreviated '''DIDMCA''' or '''MCA''') is a [[United States federal law|United States federal]] financial statute passed in 1980 and signed by President [[Jimmy Carter]] on March 31st.<ref>http://www.presidency.ucsb.edu/ws/index.php?pid=33206#axzz1mquUfO88</ref> It gave the [[Federal Reserve]] greater control over non-member banks.


Revision as of 16:42, 27 March 2012

The Depository Institutions Deregulation and Monetary Control Act (H.R. 4986) (often abbreviated DIDMCA or MCA) is a United States federal financial statute passed in 1980 and signed by President Jimmy Carter on March 31st.[1] It gave the Federal Reserve greater control over non-member banks.

  • It forced all banks to abide by the Fed's rules.
  • It allowed banks to merge.
  • It removed the power of the Federal Reserve Board of Governors under the Glass–Steagall Act to use Regulation Q to set maximum interest rates for any deposit accounts other than demand deposit accounts (with a six-year phase-out).[2]
  • It allowed NOW Accounts to be offered nationwide.[2]
  • It raised the deposit insurance of US banks and credit unions from $40,000 to $100,000.
  • It allowed credit unions and savings and loans to offer checkable deposits.
  • It allowed institutions to charge any loan interest rates they choose.[3][4]
  • It required that banks be charged Fed Float for use of funds received before clearing between depository institutions.

References

  1. ^ http://www.presidency.ucsb.edu/ws/index.php?pid=33206#axzz1mquUfO88
  2. ^ a b Gilbert, Alton. "Requiem for Regulation Q: What It Did and Why It Passed Away", Federal Reserve Bank of St. Louis: pp. 31-33. [1]
  3. ^ Michelle Minton, The Community Reinvestment Act’s Harmful Legacy, How It Hampers Access to Credit, Competitive Enterprise Institute, No. 132, March 20, 2008.
  4. ^ John Atlas and Peter Dreier, The Conservative Origins of the Sub-Prime Mortgage Crisis, The American Prospect, December 18, 2007.

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