A blueprint for merging the bank and thrift charters would be designed by a nonpartisan commission under a bill introduced Wednesday by Rep. Toby Roth, R-Wis.

Rep. Roth's proposal is modeled after the base-closing commission that planned the shutdown of military installations in recent years. Rep. Roth said his plan would help Congress update Depression-era banking laws without getting "bogged down" by industry lobbying.

"This is a revolutionary step toward solving thorny, ongoing problems in the savings and loan and banking industries," he said.

Issues the commission would tackle include: determining activities allowed to banks and thrifts, creating a timetable for converting to a new charter, and capitalizing the Savings Association Insurance Fund.

Rep. Roth wants Congress to vote on the recommendations by early 1998.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.