Banking Reform Gets Pushed Back

Interstate banking legislation has stalled out. Backers of the bill, which would allow banks to operate across state lines without setting up separate holding companies, had claimed it would be a done deal by Memorial Day. But there have yet to be any meetings between House and Senate staffers to iron out differences in their versions of the bill. Hill sources say the loss of momentum is due largely to Senate Banking Chairman Donald Riegle's (D-Mich.) determination to push through pending community-development legislation before he turns to the interstate bill.

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