The House Rules Committee canceled its scheduled vote Tuesday on legislation aiming to shore up the Savings Association Insurance Fund and give banks regulatory relief.
House leaders called off the vote at the last minute after reallizing that a majority of the panel's 13 members oppose the bill. A host of Democrats, big banks, state bank associations, and the Clinton administration joined forces this week to block House Banking Committee Chairman Jim Leach's bill.
The fate of the thrift fund fix was unclear late Tuesday. If the Iowa Republican cannot revive his bill, the package could be picked up in the Senate.
Senate Banking Chairman Alfonse M. D'Amato's version of the bill has more bipartisan support because it has less regulatory relief for banks.
Another option - being pushed by the Clinton administration - would be to tack the measure onto a spending bill Congress is expected to pass before it adjourns Sept. 28.
That could be the worst outcome for the banking industry. Banks would be forced to help capitalize the thrift fund but would get nothing in return.