SAN DIEGO -- Banks passing deposit-insurance premiums on to retail customers risk a congressional backlash that could result in another layer of regulation, a Federal Reserve official said.

Leonard N. Chanin, managing counsel, warned of a repeat of the Truth-in-Savings Act of 1991, which cracked down on an increasingly widespread pricing practice. Congress prohibited banks from basing interest calculations on "investable balances," which excluded funds that had to be set aside as reserves.

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