Banking Reform Is Back On The Back Burner

When federal regulators allowed banks to acquire big brokerages starting this spring, it looked as if a Depression-era law limiting bank activities was in its death throes. Exhibit A: Bankers Trust New York Corp.'s bid for Alex. Brown & Sons Inc. on Apr. 7. The fatal blow to the Glass-Steagall Act was expected later this year with a push by the Clinton Administration to eliminate the last curbs on bank ownership so that in time, say, Microsoft could acquire BankAmerica or Chase Manhattan could buy Chrysler.

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