To provide that certain provisions of the Internal Revenue Code of 1986 providing special rules for financially troubled financial institutions shall not remain in effect after the enactment of financial institution reform legislation.

Repeals on the enactment date of financial institution reform legislation the following special rules of the Internal Revenue Code and the Tax Reform Act of 1986 relating to troubled financial institutions: (1) the exclusion from gross income of payments by the Federal Savings and Loan Insurance Corporation and the Federal Deposit Insurance Corporation; (2) rules permitting tax-free reorganizations of troubled institutions; and (3) special rules governing loss carryovers. (The repeal will be effected on December 31, 1989, if no such reform legislation is enacted.)