Reform, Or A Crackdown On Banking?

The banking reform package wending its way through Congress is widely seen as a virtual wish list for banking. The version approved on June 28 by the House Banking Committee, which has a long way to go before becoming law, would open a lot of doors for banks. It would allow them to branch into other states and enter a passel of new businesses, from securities underwriting to insurance. But buried in the measure are harsh proposals that would have a quite different impact. They would impose stiff constraints on banking regulators and crack down, probably too soon, on banks that fall on hard times.

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