A deal reached by the Senate Banking Committee's leaders cleared the way for state banks to be treated the same as national banks under the 1994 interstate branching law.

Sen. Paul Sarbanes, D-Md., had blocked the House-approved interstate amendment but backed it after working out a small change with Sen. Alfonse M. D'Amato, R-N.Y. The version expected to be approved by the Senate this week requires the Comptroller of the Currency to report preemptions of state laws to Congress.

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