Table 131

Major Steps Toward Deregulation

1970 Federal Reserve Board frees interest rates on large bank deposits with short maturities ($100,000 or more) for 6 months or less.

1971 Federal Communications Commission (FCC) allows companies to set up long-distance telephone networks and compete with AT&T by offering private-line services.

1975 Securities and Exchange Commission prohibits fixed commissions on stock and bond sales.

1978 Congress deregulates prices for airline passenger service.

1979 FCC allows AT&T to sell a limited range of unregulated services (e.g., data processing).

1980 Congress allows banks to pay interest on checking, increases competition for commercial loans. Interstate Commerce Commission begins to dismantle trucking and railroad regulation.

1981 FCC allots airwave space for two cellular phone franchises in every city—one for the local telephone company and one for a competing provider.

1982 Congress allows savings and loans to make commercial loans and related investments; Department of Justice and Federal Trade Commission relax merger guidelines.

1984 Department of Justice order splitting AT&T into seven operating subsidiaries becomes effective. Judge Harold Greene retains indefinite control of the "Baby Bells."

1986 Congress deregulates interest rates for passbook statement savings accounts.

1991 FCC caps long-distance rates and institutes limited profit-rate deregulation for the interstate services of local telephone companies; eliminates price caps for AT&T's large business customers.

1992 FCC eases caps on radio and TV station ownership; sets in motion the process to allow networks full access to syndication revenues from reruns of hit shows.

1995 Congress votes to require all regulations that cost the economy in excess of $25 million to be subject to cost-benefit analysis.

1996 The Telecommunications Act outlines the route for telecommunications deregulations; Federal Energy Regulatory Commission opens up competition in electricity generation. "Freedom to Farm" law reduces crop-production subsidies, promises market forces greater influence in the supply of agricultural products.

1999 Repeal of the Glass-Steagal Act of 1933 and the Bank Holding Company Act of 1956 removes barriers between banks, insurance companies, and insurers.

areas where the government considered continued regulation desirable and necessary, regulatory agencies were pressured to reform and improve the regulatory decision-making process to reduce inefficiencies, bureaucratic delays, and administrative red tape.

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