Dampening the short-lived optimism on financial reform, the Treasury Department and insurance industry groups are blasting Senate Banking Committee Chairman Phil Gramm's latest proposal.

The Treasury labeled the Gramm plan "unacceptable" in a written statement late Wednesday because, the agency said, it would weaken the Community Reinvestment Act, discriminate against large banks seeking broader powers, and court economic disaster by permitting cross ownership of banks and commercial businesses.

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