The American Bankers Association applauded the Federal Reserve's plan to drop a rule that keeps bank holding companies from sharing directors and employees with securities firms.
The proposal means holding companies "will now be able to seek out talented individuals from unaffiliated underwriting firms to fill positions on their boards," Sarah A. Miller, senior counsel at the ABA Securities Association, wrote in a comment letter.
The proposal, approved without discussion at a Fed board meeting in late June, has been hailed as a step toward dismantling the Glass-Steagall Act, a 1933 law that separates commercial and investment banking.
However, the plan apparently didn't grab bankers' attention. The Fed got only a handful of comment letters by the Aug. 2 deadline.
- Compiled by Matt Schulz