In a dramatic move Tuesday, House Banking Committee Chairman Jim Leach abandoned his yearlong effort to enact a sweeping financial modernization bill and instead announced he will push for modest reforms.

Rep. Leach conceded that he could not overcome widespread opposition to his bill, despite months of negotiations with the banking and insurance industries. "Unfortunately, while many different approaches to gaining consensus have been suggested ... comprehensive bank modernization legislation cannot move forward this year," the Iowa Republican said.

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