Credit Availability Hearing Before the Committee On Small Business House of R
Credit Availability Hearing Before the Committee On Small Business House of R
United States Congress House Committee On Small
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That is my judgment. Why take it on if you know you are going to run into some trou- bles? Let's try to do these other things first. But there were tre- mendous overreactions. On the other hand, Mr. Fiechter, regulators were given a certain amount of discretion, that because of the climate of fear that may have been brought about by legislators and the media, regulators were afraid to exercise. For example, you do have the authority under FIRREA to permit capital plans for financial institution...s if they are qualified, if you think that they have good management, if they are operating ac- cording to a financial game plan that means their losses will be less in the future or they will become profitable and that their cap- ital ratios will improve. I don't know that that discretion, that au- thority, has been used at all; maybe one instance. I am not even sure about that. Is there now some new thinking within OTS that you will utilize the discretion that is there to keep institutions that appear to have the promise of viability open if the capital plan does go beyond the 1994 period?
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