WASHINGTON - Sen. Rod Grams, R-Minn., said the chairman of the House Banking Committee will have to compromise with his Senate counterpart on Glass-Steagall legislation.
The chairman, Rep. Jim Leach, R-Iowa, introduced legislation that would repeal the Glass-Steagall Act but maintain the separation of banking and commerce. Senate Banking Committee Chairman Alfonse M. D'Amato, R-N.Y., would repeal Glass-Steagall and permit affiliations between banks and nonfinancial companies.
"If I'm right, Jim Leach will have to move closer to D'Amato's bill in order to get it through the House," Sen. Grams said last week.
Sen. Grams served on the House Banking Committee before he was elected to the Senate last year, where he serves on its Banking Committee
In other comments before a conference here sponsored by the Financial Institutions Insurance Association, Sen. Grams said he expects the House to go first on Glass-Steagall.
"I think they will be out on front on this," he said, because the Senate Banking Committee will be wrapped up in Whitewater hearings.
Sen. Grams also said he expects the Senate to consider Community Reinvestment Act reform later this year.
"I would almost guarantee some change, especially for smaller banks and S&Ls," he said, adding that these institutions shouldn't be subject to CRA because they already serve their entire community.