House Republicans postponed a vote on financial reform legislation until next week when a key Democratic supporter, Rep. John Dingell, can be present.
The House was scheduled to vote Thursday on the long-sought legislation that would permit a merging of the banking, insurance, and securities industries.
Supporters are counting on Rep. Dingell, who will be in his Michigan district Thursday, to deliver Democratic swing votes. Opponents questioned whether Republicans were using his absence as an excuse to buy more time.
Meanwhile, the bill's supporters were applying a full-court press.
Five financial services executives, including Travelers Group chairman and chief executive officer Sanford I. Weill and Merrill Lynch & Co. chairman and CEO David H. Komansky, pushed for passage in a meeting Tuesday with House leaders from both parties. They then met separately with House Speaker Newt Gingrich in his office.
"It's terrific to have the representatives of the insurance, banking, and securities industries all agreeing to move legislation," Mr. Weill said afterward. "Financial modernization is what we need in this country to keep competitive in global markets."
"We are hopeful the House and the administration will agree and move this bill," Mr. Komansky added.
The group included John B. McCoy, chairman of Banc One Corp., one of the few banking companies supporting the bill. After their Hill meetings, the executives tried to persuade administration officials to drop their opposition. Their White House meeting included Treasury Secretary Robert E. Rubin, Under Secretary John D. Hawke Jr., and Gene Sperling, President Clinton's economic adviser.
Mr. Rubin has said he will recommend that President Clinton veto the legislation unless banks are allowed to conduct new activities in direct subsidiaries.
Rep. John A. Boehner of Ohio, the House Republican Conference chairman, said an amendment will be offered to let bank operating subsidiaries engage in securities underwriting. But such a narrow change is unlikely to budge the administration.
Still, the GOP point man on reform said he has not given up hope of winning administration support. "The administration's concerns are the same as the banks'," Rep. Boehner said. "We're continuing to work together in a bipartisan way."
House Republicans tried to bring the reform legislation to a vote March 31 but withdrew it after realizing they did not have enough votes. Last week they cut a deal with Rep. Dingell, who said he would support the bill if eight consumer protections were included.
It was Rep. Dingell's schedule that forced Thursday's vote to be delayed. House Majority Leader Richard K. Armey said Rep. Dingell, the Commerce Committee's ranking Democrat, would be in his district Thursday for the dedication of a veterans hospital in his honor.
Republican leaders insisted that Rep. Dingell's ceremonial obligation is the sole reason for the change.
"The delay is only because of his scheduling conflicts," Rep. Boehner said. "We've been working with him for the past year and we felt he should be here for the vote."
"Given this is their last shot this year, they have to have their ducks in a row," said Paul A. Schosberg, president of America's Community Bankers. "Not that much has been sorted out ... . I know they are working at it."
