Treasury Under Secretary John D. Hawke Jr. told trade group officials this week that the administration plans to introduce legislation in early 1997 to merge the thrift and bank charters.
In separate meetings with the Independent Bankers Association of America, America's Community Bankers, and the American Bankers Association, Mr. Hawke said the administration wants to finish its proposal by March 31, when a Treasury report on merging charters is due.
During the meetings, which were held Tuesday and Wednesday, trade group officials advocated substantially different legislative blueprints.
Kenneth Guenther, executive vice president of the Independent Bankers Association of America, said he told Treasury officials Tuesday that community banks would benefit from unrestricted authority to sell insurance and real estate.
Mr. Guenther said he also pushed for provisions that would give banks the right to invest in real estate and underwrite state and local government bonds.
But the IBAA remains determined to maintain the traditional firewall between commercial and investment banking. Mr. Guenther said he told Mr. Hawke that the IBAA would draw the line at letting banks underwrite corporate debt and equity directly. He also opposed letting banks make direct equity investments in local businesses.
Paul A. Schosberg, president of America's Community Bankers, declined to comment on his Tuesday meeting with Mr. Hawke. But the group has previously argued that commercial firms should be allowed to continue owning single thrifts. It also has said the mutual thrift charter should remain intact.
Chief lobbyist Edward L. Yingling said that, in the ABA meeting with Treasury officials Wednesday, the trade group reiterated its desire for a charter that lets banks offer new financial products.
"Our goal is to be able to offer all financial services in as flexible a manner as possible," Mr. Yingling said.
Mr. Hawke said in an interview that the Treasury scheduled the meetings to solicit industry opinions on the ownership structures and powers that should be included in a new charter.
"We're trying to get as much input as we can," he said.
Mr. Hawke declined to discuss which new powers are under consideration. "We're reviewing a whole range of options," he said.
The thrift fund recapitalization law enacted Sept. 30 anticipates a merger of the charters and the industries' deposit insurance funds by Jan. 1, 1999.
