Memorandum: Regulation of Interest Rates on Time and Savings Accounts

Public Law 89-597 permits the Directors of the Corporation to "limit by regulation the rates of interest or dividends that may be paid by insured nonmember banks," Passed as temporary legislation shortly after the peak of the so-called money market crisis of August 1966, the law will empire at the end of one year. The question arises as to Aether Public Law 89-597 should be renewed, amended, or allowed to expire.