Core Bank Plan Suffers Setback
WASHINGTON - Rep. John Dingell, chairman of the House Energy and Commerce Committee, said the panel will not take up a controversial "core bank" proposal when it meets on the banking reform bill in the week of Sept. 23.
In a memorandum to committee members, the Michigan Democrat said the proposal to establish floating interest rate ceilings and dramatically reduce loans-to-one-borrower limits would probably be the subject of a floor debate. He urged them to begin preparing for it.
The core bank proposal, championed by Rep. Charles E. Schumer, D-N.Y., might have had easier sailing if the Energy and Commerce Committee had voted for it. Rep. Dingell is seen as a likely ally of Rep. Schumer.
Rep. Dingell also revealed that two of his subcommittees will mark up, or vote on, the bill during the week of Sept. 16. The telecommunications and finance subcommittee will handle securities-related issues, and the subcommittee on commerce, consumer protection, and competitiveness will deal with bank insurance powers.