4148

LAWS OF MARYLAND

Ch. 11

Annotated Code of Maryland
(1984 Volume)

Preamble

WHEREAS, Disclosure of problems at certain State chartered,
privately insured savings and loan associations resulted in a
financial run on and the erosion of public confidence in all such
institutions; and

WHEREAS, The Governor undertook certain actions to deal with
the situation, including declaring a state of emergency, issuing
a gubernatorial proclamation, and calling a Special Session of
the General Assembly; and

WHEREAS, An investigation of a State-chartered privately
insured savings and loan association was instituted by the
Attorney General at the request of the Governor; and

WHEREAS, The General Assembly convened in Special Session on
May 17, 1985 and approved a package of bills designed to address
the concerns of the Governor, the General Assembly, the privately
insured savings and loan associations in the State, and the
citizens of the State of Maryland; and

WHEREAS, During the consideration of this emergency
legislation and since that time a number of grave questions have
been raised that call into question the actions taken by State
officials, State agencies, the Maryland Savings-Share Insurance
Corporation, and certain segments of the savings and loan
industry; and

WHEREAS, The crisis at privately insured savings and loan
associations involved many more aspects than the occurrence of
alleged criminal acts at a single institution; and

WHEREAS, The paramount questions raised by this crisis are
why and how it occurred, who the responsible parties were, could
it have been prevented or its impact decreased, and what can and
should be done to prevent any similar crisis from occurring in
the future; and

WHEREAS, It is critical to the public confidence in both the
privately insured savings and loan associations and in all levels
of State government that, in a totally independent and unbiased
atmosphere, a careful evaluation of the events surrounding the
savings and loan crisis take place including an investigation of
the programs, policies, and actions of the State of Maryland, its
agencies and officials, and the Private Sector; and

WHEREAS, The appointment of an Investigator a Special

Counsel, not connected with State Government, to conduct such a

broad and comprehensive investigation would maximize public
confidence in the investigation; and