House and Senate negotiators have removed provisions from the financial reform legislation that would have authorized wholesale banks.

Lawmakers had agreed to create wholesale financial institutions, or "woofies," which securities or insurance firms could have chartered to accept uninsured deposits. The institutions would not have been subject to Community Reinvestment Act requirements, but banks could not have chartered them.

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.