Reports Ask Congress to Settle Regulation, Fed Fee Controversies

By McCormick, Linda W. | American Banker, April 11, 1984 | Go to article overview

Reports Ask Congress to Settle Regulation, Fed Fee Controversies


McCormick, Linda W., American Banker


WASHINGTON -- Two reports approved Tuesday by the House Government Operations Committee call on Congress to resolve two major controversies in the financial industry.

One urges congress to straighten out the regulation of financial institutions, and the other seeks to force the Federal Reserve to be more competitive in setting its prices for check clearing and other services. The reports were prepared by the staff of the subcommittee on commerce, consumer, and monetary affairs.

In the financial regulation report, the committee urges Congress to "act quickly and progressively" to clarify federal laws regarding geographic limits and products that can be offered in the financial services industry. The report outlines the various lawsuits and state statutes that have added to confusion over existing powers.

Commenting on the report, Rep. douglas Barnard, D-Ga., the chairman of the subcommittee on commerce, consumer, and monetary affairs, said that while no specific legislative recommendations are made, the report says, "Let's get going before the system gets any more confusing, and let's do it with legislation that recognizes we are in the modern world, which is being changed by smarter, consumers and advancing technology."

Mr. Barnard added that the report finds moratoriums "of dubious value." Not Abused Its Position

The report on Federal Reserve competition with private providers of check-clearing services found that the Fed has not abused its position as a regulator in order to gain a competitive edge over private-sector companies.

But the report did criticize the Fed for not going out of its way to be a fair competitor. And it urges Congress to amend the Federal Reserve Act to make fair competition with the private sector in the payment system services area an explicit objective of Federal Reserve policy.

The Monetary Control Act of 1980 directed the Fed to set explicit prices for all its check clearing and other services and to offer its services to both member and nonmember institutions on an equal basis.

However, several of the Fed's competitors, now led by an organization called the National Payments System Coalition, repeatedly have criticized the Fed's pricing system, charging that its fees are too low and inhibit fair competition. Hearings were held in the House last summer and a hearing will be held in the Senate Banking Committee today to discuss those charges.

The National Payments System Coalition has recommended that the Fed get out of the business of check clearing and allow private industry to take over completely. However, the report rejected that recommendation.

Instead it supports the Fed's contention that the possibility of a market failure exists "if the private sector alone handled all payments processing operations. This one argument provides a sufficient reason to reject the proposal of the National Payments System Coalition that the Fed's priced services operations be placed in a separate autonomous corporation. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Reports Ask Congress to Settle Regulation, Fed Fee Controversies
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.