WASHINGTON - Foreign banks operating uninsured wholesale bank branches and securities branches in the United States should be subject to fewer safeguards than insured institutions, international bankers told the House Banking Committee Tuesday.

The Glass-Steagall repeal bill sponsored by House Banking Committee Chairman Jim Leach would create a new class of investment bank holding companies that could own an uninsured wholesale bank affiliate along with a securities affiliate. The affiliates would be subject to less stringent firewalls then if the bank were federally insured.

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