After criticism from bankers, the Federal Deposit Insurance Corp. is expected to reject Tuesday a proposal that would require some bank directors to report personal securities transactions.

Comment letters by several industry trade groups and calls from bankers swayed FDIC officials, said Miguel D. Browne, a deputy assistant director of supervision at the agency. Bankers doubted official assurances that the proposal would affect only a limited number of directors, according to Mr. Browne.

"We thought it was clear in the first place, but if the industry doesn't think it's clear, then there's a problem," Mr. Browne said. "It's obvious we need to work a bunch more on the language."

The FDIC board will likely drop that section before approving a larger proposal to streamline record keeping and confirmation rules for securities transactions, agency sources said.

FDIC officials are expected to consult with the other banking agencies and then craft a separate rule on director reporting of personal securities trades.

Under current rules, bank officers and employees involved in securities activities must disclose their personal trading. The FDIC's proposal would have extended that requirement to outside bank directors who actively participate in making decisions or recommendations on the purchase or sale of debt and equity securities.

The industry reacted positively to news that the FDIC would likely reject the proposal.

"That's good news," said Sarah A. Miller, senior government relations counsel on trust and securities for the American Bankers Association.

The ABA criticized the proposed requirement on bank directors as vague, burdensome, and out-of-step with other banking agencies. ABA expressed concerns that banks, particularly small ones, would have a harder time recruiting directors and trust committee participants.

"The way the FDIC had worded it, they tried to make it as unobtrusive as possible," said Robert G. Rowe, regulatory counsel for the Independent Bankers Association of America, which had not raised any objections. "But I am glad they are going to go back for more clarity."

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