WASHINGTON - A key House subcommittee is ready to turn the spotlight on bank interest rates.
The House Banking subcommittee on consumer credit and insurance convenes Thursday to explore" the banking industry's reluctance to increase interest rates for deposits while interest rates for loans have been going up."
The panel, chaired by Rep. Joseph Kennedy 2d, D-Mass., is regarded by bankers as among the most liberal of subcommittees in the House.
'Public Relations Problem'
However, Edward L. Yingling, chief lobbyist for the American Bankers Association, said it is unlikely the panel will attempt to pursue legislation to limit loan rates.
Instead, he said, the hearing represents "more of a public relations problem for banks."
"We have seen a steady stream of studies by consumer groups attacking banks' price structure," he said. "The problem is, no matter how trumped up those charges are, they get frontpage media coverage."
While Congress is unlikely to address bank fees, Mr. Yingling said, publicity in Washington could drive legislation in some states.
Fed's Lindsey to Testify
Among those scheduled to testify Thursday are Federal Reserve Governor Larry Lindsey and Consumer Federation of America lobbyist Chris Lewis.
Economists from the AFL-CIO, the Mortgage Bankers Association, and the University of Texas are also scheduled to appear.
