Lack of Time Makes Passage of Bank Bill Unlikely This Year, Sen. D'Amato Says: Interstate Agreements Unfair to Big Banking States, NY Republican Claims
DALLAS -- Sen. Alphonse M. D'Amato, R-N.Y., told a group of financial services executives Tuesday that Congress is unlikely to have enough time to pass banking legislation this year.
Sen. D'Amato said he opposes some provisions of a Senate bill that would extend new powers to banks, saying more time is needed to debate those proposals. He also said a provision granting states the freedom to establish regional interstate banking agreements is unfair to big banking states like New York and California.
Speaking to about 75 financial services executives at a reception held in conjunction with the Requblican National Convention, Sen. D'Amato said, "I do not think there will be a bank bill because of the short period of time. It does not give a sufficient opportunity for those of us who care about fairness with regard" to new bank powers.
Congress, which will have only 30 days in session when it readjourns after Labor Day, does not have sufficient time this year to consider all of the issues, he said.
The Senate proposal would allow banks to underwrite and deal in commercial paper, revenue bonds, and mortgage-backed securities. Senate Banking Committee Chairman Jake Garn, R-Utah, has promised to introduce an amendment on the Senate floor that would allow banks to offer mutual funds as well.
The House version does not include any new powers for banks. But like the Senate version, it seeks to plug loop-holes that banks and other financial service companies are using to cross state lines and offer products previously off-limits to banks.
Provisions in both the Senate and House bills would redefine a bank. Existing laws define a bank as an institution that offers checking accounts and commercial loans. …