WASHINGTON - This spring the Federal Reserve Board will propose new limits on the volume and pricing of credit banks extend to affiliates, Fed Governor Laurence H. Meyer said Thursday.The Gramm-Leach-Bliley Act of 1999 tore down the barriers between banking, securities, and insurance companies, but it also required the Fed to regulate the movement of funds within diversified financial firms.

The Federal Reserve Act, in sections 23A and 23B, already restricts lending from banks to their affiliates and requires transactions to carry market prices and be collateralized.

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