WASHINGTON - House Banking Committee Chairman Jim Leach warned that U.S. branches of foreign banks may deserve closer scrutiny in the wake of the recent $1.1 billion bond trading loss at the New York office of Daiwa Bank Ltd.

"It would appear that more comprehensive examinations may be needed of foreign institutions, particularly those from countries lacking U.S. standards of transparency and regulatory discipline," the Iowa Republican said at a hearing Monday on the Japanese financial system.

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