Financial Firms Try to Tweak Reform Law to Gain Powers

By Anason, Dean | American Banker, February 23, 2000 | Go to article overview

Financial Firms Try to Tweak Reform Law to Gain Powers


Anason, Dean, American Banker


WASHINGTON -

The ink is hardly dry on the Gramm-Leach-Bliley Act, but financial services companies are already trying to stretch its outer limits.

The law contains a six-page list of activities that are "financial in nature," including lending, insurance underwriting, securities underwriting and dealing, and financial advice services. It gives the Federal Reserve Board and the Treasury Department joint authority to define which new activities are acceptable for financial holding companies or banks' direct financial subsidiaries.

With three weeks left until these provisions take effect, Gary Gensler, Treasury under secretary for domestic finance, said regulators have received requests for new powers. In an interview, he vowed to work closely with Fed officials to make rules on how to grant expanded powers.

The Financial Services Roundtable made the first request, urging regulators to add five more powers to the list: nonfinancial data processing, real estate brokerage, management consulting on nonfinancial matters, broad-based travel services, and brokerage activities known as "finder" services.

The group argues that because these services are not controversial and are so closely related to ones banking organizations already provide, regulators should include them when they implement regulations rather than wait for applications from the industry. If anything, observers said, it shows that the industry is evolving faster than new laws and regulations can be written.

"We wanted to jump-start the process to try to get more stuff included up front," said Richard M. Whiting, the roundtable's executive director and general counsel, who included the wish list in a Feb. 8 letter to Treasury Secretary Lawrence H. Summers and Fed Chairman Alan Greenspan. "These (services) are all very, very reasonable. They haven't been allowed in the past, for more political and historical reasons that now have been bypassed by the marketplace and changes in the laws."

The American Bankers Association plans to compile a similar list of brokerage and other powers to share with regulators, said the ABA's regulatory affairs director, James D. McLaughlin. The ABA, he said, is focusing on powers sought by small banks and is using its National Conference of Community Bankers in Palm Desert, Calif., this week to fish for suggestions.

"The obvious one is real estate brokerage, because banks are intimately involved in the real estate financing and settlement process," Mr. McLaughlin said, adding that many small towns do not have real estate brokers. "That would be a really good service for communities and a good product for banks."

Treasury officials said in an interview last week that Gramm-Leach-Bliley does not require them to issue a rule on defining new powers but that they and Fed officials are developing one to provide the industry with guidelines on the application and decision-making process. …

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

Items saved from this article

This article has been saved
Highlights (0)
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.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
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, APA and Chicago citation styles.

(Einhorn, 1992, p. 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.

Cited article

Financial Firms Try to Tweak Reform Law to Gain Powers
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

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, 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."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.

    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.