Rep. Marge Roukema plans hearings on the Office of the Comptroller of the Currency's decision to let Zions First National Bank underwrite municipal revenue bonds through an operating subsidiary.
The New Jersey Republican, who is chairwoman of the House Banking Committee's financial institutions and consumer credit subcommittee, said the decision by the Comptroller's Office will convince more banks that financial reform legislation is unnecessary.
"I fear this will further complicate the issues and perhaps cause some to leave the bargaining table," Rep. Roukema said last week.
Rep. Edward Markey, D-Mass., also criticized the agency, saying the comptroller is usurping Congress' power.
Still, Comptroller of the Currency Eugene A. Ludwig said he was pleased at Capitol Hill's reaction to the Zions decision, which was endorsed by House Banking Committee Chairman Jim Leach as well as by Reps. Richard Baker, R-La., and John LaFalce, D-N.Y.
"I didn't expect as many good words as we got," Mr. Ludwig said.