HomeMy WebLinkAboutResolution 1317A ~~plution Adopted Resolution No. ~
WHEREAS, the City of Fort Worth works vigorously on behalf of business and
industry in Texas to promote conditions for economic prosperity that will
benefit the citizens of the State; and
WHEREAS, current federal law prohibits commercial banks and their
affiliates from underwriting any form of corporate security and .most forms of
municipal revenue bonds; and
WHEREAS, the Tax Reform Act of 1987 reduces the sources of development
financing available previously through Industrial Development Bonds; and
WHEREAS, the number of underwriters specializing in small issues has
declined by over 13% since 1976; and
WHEREAS, the City feels that the increased competition created by
additional low cost underwriting by commercial banks would benefit the economic
development activity in the State; and
WHEREAS, the City's goals include influencing and developing legislation
policy that affect economic development; and
WHEREAS, the City is concerned with the quality and stability of the
financial institutions of the State and their ability to aid in economic
development;
THEREFORE, BE IT RESOLVED, that the City of Fort Worth does hereby support
U.S. Senate Bill 1886, introduced by Senators Proxmire and Garn, which will
amend the current Glass-Steagall Act in allowing banks to underwrite corporate
securities and municipal revenue bonds. The City would endorse an amendment
which would sufficiently protect the credit of the issues and banks involved in
such underwritings.
APPROVED BY
CITY COUNCIL
~,6, ~~M///AR 24 1988
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