WASHINGTON -- In a new sign that lawmakers are unenthusiastic about the Bush administration's bank reform package, the House Judiciary Committee refused on Thursday to recommend its adoption by the full House.
The panel also voted to urge the House to reject a provision adopted by the banking committee that would treat individuals with significant holdings of bank stock as bank holding companies. And it adopted amendments that would make it more difficult for banks that enter the securities field to package two products together.
Clearly Stated Reluctance
Although the panel had only limited jurisdiction over the measure, several lawmakers, including Rep. William J. Hughes, D-N.J., said they have serious concerns about the bill and wanted to make it known that the panel was not reporting the bill out with a favorable recommendation.
By contrast, when the committee considered limited parts of the thrift-bailout bill in 1989, it gave the entire bailout package a favorable recommendation.
"There is an awful lot of nervousness among House members in general about the package," added Edward L. Yingling, chief lobbyist for the American Bankers Association.
Major Shift Possible
House Banking Committee Democrats were scheduled to meet in private session. Thursday afternoon. A number of banking lobbyists said the caucus could be a first step toward a decision by the banking panel to scuttle the comprehensive administration bill and go to the House floor with a more limited measure.
Steve Verdier, who lobbies the House for the Independent Bankers Association of America, said the judiciary panel showed that lawmakers outside the banking committee oppose broad deregulation of the financial services industry.