The Commission of Financial Structure and Regulation: Its Organization and Recommendations

The President's Commission on Financial Structure and Regulation was appointed in june 1970 to recommend legislative and regulatory changes to improve the performance of the financial system. At its early meetings the Commission defined more narrowly the areas it would cover. It was decided to concentrate on problems relating to commercial banks, savings and loan associations, mutual savings banks, credit unions, reserve life insurance companies and private pension funds. For these institutions, the Commission elected to study their functional specialization, the effects of deposit rate regulations, chartering and branching, problems of deposit insurance, reserves and taxation, the effects of regulations on social priority investments, competitive problems and the organization of their regulatory bodies. The scope of the work was determined by the Commission's view of the state of the financial system in the late 1960's and the reasons which prompted the creation of the Commission.