Rep. Mike Castle wants financial modernization legislation to include new powers for limited-purpose banks, such as selling corporate credit cards and marketing via the Internet.

"Unnecessary restrictions" make it harder for limited-purpose banks to compete, the Delaware Republican said. The banks also should be able to cross-market products with their corporate parents, borrow from the Federal Reserve on the same basis as commercial banks, and acquire undercapitalized depository institutions, he said.

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