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.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.