Academic journal article ABA Banking Journal

Glass-Steagall Reform: Once More, with Feeling

Academic journal article ABA Banking Journal

Glass-Steagall Reform: Once More, with Feeling

Article excerpt

House Banking Committee Chairman Jim Leach (R.-Iowa) is one determined man. In early May, in a speech before a conference on banking structure run by the Chicago Fed, he announced that he would introduce vet another revised version of his Glass-Steagall-based omnibus banking bill.

Leach said the bill was the result of talks with parties interested in the insurance provisions of the much-revised legislation.

"The compromise approach that we have developed represents a consensus package that has a decent prospect of receiving significant industry endorsements and wide support in the House," Leach said. (Not long after the announcement, the Comptroller's Office and the Treasury Department complained that the package was still limiting to its authorities relating to bank insurance powers.)

Overall, he said, the package would:

* Break down barriers between commercial and investment banking.

* Expand permissible holding company powers to include all activities financial in nature or incidental to them.

* Allow/hr insurance underwriting and agent), affiliations with banks. Underwriting would be done through a holding company affiliate subject to state law.

* Provide for substantial regulatory relief except in the area of Community Reinvestment Act relief, "where the Administration has balked. …

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