Rep. Richard H. Baker on Wednesday asked regulators to develop rules that would allow them to punish bank employees who misinform customers that nondeposit investment products are federally insured.

"I would be very interested in some proposal that would give you the right or ability to at least to suspend those individuals ... until the institution ... has satisfied you that the practice has been curbed," the Louisiana Republican told bank regulators during a hearing of House Banking's capital markets subcommittee.

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