Legislation freeing bank holding companies from overlapping state and federal securities laws is likely to be enacted this year, congressional sources said.
The legislation, which would exempt broker-dealers from most state reporting requirements and loosen restrictions on lenders who extend credit for customers' securities purchases, was approved by the Senate on June 27. The House passed a companion bill June 19.
Senate Banking Committee Chairman Alfonse M. D'Amato has said he hopes Congress will have a final securities package ready for President Clinton's signature by Aug. 3, when lawmakers leave for a month-long break.
President Clinton is expected to sign the legislation because there is enough support in both chambers to override a veto.
A conference committee will meet "in the near future" to hammer out differences between the House and Senate bills, the New York Republican said Friday. Unlike the House measure, the Senate bill would exempt investment advisers registered with the Securities and Exchange Commission from most state reporting requirements.
The Senate conferees are Sens. D'Amato; Phil Gramm, R-Tex.; Robert Bennett, R-Utah; Paul Sarbanes, D-Md.; and Christopher Dodd, D-Conn.
The House has not named conferees yet.