The House Banking Committee has approved a bill championed by Chairman Jim Leach to reform the Glass-Steagall Act. The bill represents a good beginning on the road to financial reform, though bankers will have problems with some of its specifics.

The bill would allow commercial banks and investment banks to affiliate for the first time in more than 50 years. Potentially more important for most banks is a provision that would modify the "closely related to banking" test in the Bank Holding Company Act.

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