House Panel Expected to Vote Out Reform Bill

The House Commerce Committee is expected to approve financial reform legislation today, despite widespread opposition from the banking industry.

On Wednesday state banking groups urged Commerce Committee Chairman Thomas Bliley to ease proposed restrictions on bank insurance and securities sales.

The bill also came under attack from the chairmen of Merrill Lynch & Co.; Morgan Stanley, Dean Witter, Discover & Co.; and Travelers Group. The executives criticized a provision allowing the Fed to set capital standards for all financial holding companies owning banks and a measure that would force thrifts to divest commercial businesses. They also urged lawmakers to let banks own a limited amount of nonfinancial operations.

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