Capital Briefs: Bill Would Increase Oversight of Foreign Banks

Senate Banking Committee Chairman Alfonse M. D'Amato introduced a bill Friday to give the Federal Reserve Board and state regulators greater control over foreign banks operating here.

The bill gives the Fed explicit authority to oversee foreign banks, even after it revokes their charters. For example, the bill says the Fed could require banks booted out of the country to make officials available to government investigators and to open their books to examiners. It also allows federal regulators to keep confidential exam reports obtained from foreign banking agencies.

The legislation also would allow federal judges to share grand jury information with state examiners. Currently, federal judges only can make this information available to federal regulators.