ABA backs bill to ease pooling.

WASHINGTON -- The American Bankers Association has endorsed legislation sponsored by Sen. Alfonss M. D'Amato, R-N.Y., that attempts to promote a secondary market in small-business loans.

Unlike other proposals, the bill focuses entirely on the private sector.

Rather than create a government agency, it seeks to eliminate regulations that make it difficult to pool and sell business loans.

In a letter to Sen. D'Amato, ABA president William H. Brandon praised the proposal for not entailing additional government spending or risk to the financial system.

The bill "would promote ccareful experimentation and permit the secondary market to develop for those types of loans for which it may be viable," Mr. Brandon said.

"The ABA recognizes that this bill creates a win-win situation for the businesses, financial institutions, and the overall economic climate of the nation," Sen. D'Amato said.

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