Capital Briefs: Panel Stalls Over CRA Provision in Relief Bill

Republicans on the House Banking Committee were unable Tuesday to resolve a dispute that has stalled regulatory relief legislation.

During a nearly one-hour meeting on the committee's agenda for the rest of the session, Chairman Jim Leach and some fellow party members tangled over whether to remove an amendment inserted in subcommittee that would exempt small banks from the Community Reinvestment Act.

"There was disagreement within the caucus on the CRA language," a committee spokesman said. "No agreement was reached."

Unless Rep. Leach can broker a compromise, Democrats are expected to bog down the legislation in committee. Other options weighed in the meeting included taking up a scaled-down bill or sending the bill directly to the floor and attempting to amend it there, the spokesman said.

The bill, as approved by subcommittee, would authorize the Federal Reserve Board to pay interest on required reserves and would eventually permit banks to pay interest on commercial checking accounts.

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