The Clinton administration Monday said it would oppose plans to include Federal Home Loan Bank System restructuring in the Senate Banking Committee's regulatory relief bill.

In a letter to Senate Banking Committee Chairman Alfonse M. D'Amato, Treasury Secretary Robert E. Rubin said the Home Loan bank provisions would lead to "piecemeal" reform of the system.

Mr. Rubin specifically criticized a deal brokered by Federal Housing Finance Board Chairman Bruce A. Morrison and New York Fed President Alfred A. DelliBovi, which would expand the types of investments allowed to the Home Loan banks.

"We would strongly oppose such efforts, as they lead the system in exactly the wrong direction," Mr. Rubin wrote. He complained that the proposal failed to limit the banks' investment in nonmortgage securities. "Any legislation aimed at reforming the system must resolve this serious problem."

The Banking Committee is scheduled to vote on the regulatory relief bill Wednesday.

- Bill McConnell

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