Statement of Administration Policy: S. 419 - Resolution Trust Corporation Funding Act of 1991

(Senate)
(Riegle (D) Michigan)

The Administration supports Senate passage of S. 419, but urges an amendment to section 5 to:

—   limit the authority of the Resolution Trust Corporation (RTC) to indemnify its directors, officers, and employees to actions taken by such persons within the scope of their employment in connection with any transaction involving the disposition of assets entered into on or before September 30, 1991; and

—   make it clear that the authority to indemnify is in addition to any immunities or other protections that may be available under applicable law.

If, prior to final congressional action on S. 419, the Supreme Court satisfactorily resolves the Federal Tort Claims Act issues in U.S. v. Smith, the Administration will seek deletion of section 5.

Scoring for Purposes of Pay-As-You-Go and Caps

S. 419 makes available to the RTC $30 billion for the funding of existing deposit insurance guarantees during FY 1991. This amount was included in the President's FY 1992 Budget. Accordingly, enactment of S. 419 would not increase projected deficits. Pursuant to Section 13101 of the Omnibus Budget Reconciliation Act of 1990, pay-as-you-go requirements do not apply to this bill.