Individual retirement accounts and individually directed 401(k) plan accounts are an important part of the business of bank trust departments, providing a needed service to customers while generating valuable fee income.

But bank customers would no longer be able to obtain these services from their banks under the financial modernization legislation pending in the House. Under HR 10 as approved by the House Banking Committee, banks that offer IRA and 401(k) custodial services would be deemed broker-dealers, making them subject to the Securities and Exchange Commission's net capital rule.

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