House Democrats Seek to Allow Interest on Demand Deposits

WASHINGTON — House lawmakers negotiating broad changes to  financial markets will seek this week to repeal the restrictions on banks paying interest on demand-deposit accounts.

Rep. Barney Frank, D-Mass., who is leading House negotiators in a "conference committee" with the Senate, will push for the change as part of a broader offer to the roughly 2,000-page bill.

The offer, likely to be made on Wednesday, contains a number of potential changes to the bill's treatment of bank regulation. House lawmakers are also pushing to add language dealing with regulators' encouragement of countercylical capital at financial institutions, as well as a provision allowing credit card banks to issue cards to small businesses.

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