Capital Briefs: IBAA to Fight Leach Bill Over Insurance Stand

Despite an appeal from House Banking Committee Chairman Jim Leach, the Independent Bankers Association of America announced Tuesday it will "vigorously" oppose his Glass-Steagall reform/regulatory relief bill because it would allow common ownership of banks and insurance companies.

"This will cause a level of concentration of the financial services industry not known to anybody alive today," said Kenneth Guenther, the group's executive vice president.

Rep. Leach said last week that the Supreme Court set the stage for bank and insurance affiliation by allowing Barnett Banks to sell insurance from a small town.

The IBAA was the only banking trade group to support Rep. Leach's Glass- Steagall reform bill, but has fought previous efforts to allow banks and insurance companies to own each other.

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