Magazine article American Banker

Senate Approves Several Amendments to Bank Bill but Puts off Key Decisions

Magazine article American Banker

Senate Approves Several Amendments to Bank Bill but Puts off Key Decisions

Article excerpt

WASHINGTON -- The Senate Wednesday approved a series of amendments to its banking reform bill but agreed to wait until Thursday to proceed with the more controversial provisions dealing with expanding banking powers and interstate banking.

Actions taken by the Senate included approval of two consumer protection amendments offered by Sen. Howard M. Metzenbaum, D-Ohio.

One amendment would limit increases in interest rates on the popular adjustable-rate mortgages to five percentage points over the life of the loan. The second would require institutions to inform new depositors of account charges and to give "adequate notice" before fees are changed.

The Senate also agreed to a package of amendments offered by senators Jake Garn, R-Utah, and William Proxmire, D-Wis., the ranking members of the Banking Committee.

Among various thrift-related provisions in the package is one that reaffirms the affiliations now permitted between a thrift institution and a firm engaged in certain securities and real estate activities. Another provision seeks to mandate separate studies by the Federal Deposit Insurace Corp., The Federal Reserve Board, and the Comptroller of the Currency on how -- Through capital requirements and other procedures -- the risk of bank failures can be reduced.

In addition, the Senate agreed to an amendment offered by Sen. Robert T. Stafford, R-Vt., that would require the Student Loan Marketing Association -- Better known as Sallie Mae -- to divest itself of a recently acquired savings and loan association in North Carolina. …

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