House Banking Committee Chairman Jim Leach came out Tuesday against levying fees on state banks examined by the Federal Deposit Insurance Corp. and the Federal Reserve Board.

The Clinton administration has proposed raising $400 million during the next five fiscal years by charging state banks for exams done by federal regulators.

"In reducing the federal deficit, it is my belief that Congress needs to rely less on budget gimmickry and tax increases and more on streamlining and cutting the cost of government," Rep. Leach said in a statement.

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