Interstate Banking Already Here, Touche Ross Expert Says

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While bankers have been busy barring doors to non-bank banks, other closed doors to interstate banking are being kicked in by financial f ailures such as those which occurred in Ohio, according to William K. Smith, visiting merger and acquisition expert for Touche Ross & Co.

"That kind of thing can happen overnight," said Smith, referring to Chase Manhattan's application to acquire two state-chartered Ohio savings and loan associations which are unable to qualify on their own for federal deposit insurance.

"An important issue is how the weakness of the thrift industry can affect the banking industry," said Smith. "You see that more and more all the …