In the turf war between the Federal Reserve Board and Treasury Department that hung up the financial reform bill for more than a year, the Fed seems to have emerged the winner.

The battle centered on how banks would be allowed to take advantage of new powers. The Fed wanted them to be offered through subsidiaries of holding companies, which it supervises. The Treasury argued that new powers could be safely housed in subsidiaries owned directly by banks, which it indirectly oversees through the Office of the Comptroller of the Currency.

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