Capital Briefs: Leach Seeks Probe of Electronic Banking

House Banking Committee Chairman Jim Leach on Friday asked the General Accounting Office to investigate electronic banking's vulnerabilities.

The congressional watchdog agency will review the Federal Reserve System's Fed Wire operations as well as on-line services offered by individual banks.

"It is critical to assess whether depository institutions and the Federal Reserve have implemented adequate firewalls to protect their electronic payment operations from unauthorized access through Internet connections," Rep. Leach said.

Meanwhile Rep. Marge Roukema, who chairs House Banking's financial institutions subcommittee, asked Rep. Leach, R-Iowa, to schedule a vote on her ATM-fee disclosure bill.

The New Jersey Republican wants surcharge fees noted on ATM screens as well as on the machines themselves. Her subcommittee unanimously approved the bill last year.

"Operators should be allowed to charge a reasonable fee to cover the cost of the convenience ," she said. "But ATM users need fair warning of how much is being charged before they proceed with the transaction."

Rep. Leach was in Iowa last week and had not seen Rep. Roukema's letter. His staff said her request would be given "due consideration."

Legislation banning surcharging is expected from Senate Banking Committee Chairman Alfonse M. D'Amato this month.

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