Last week, House Banking Committee Chairman Jim Leach introduced legislation that would allow banks and securities firms into each others' business. The bill draws a strict line, however, between banking and commerce. Not only would securities firms with insurance interests be barred from owning banks, but unitary thrift holding companies would lose their special powers. Here are excerpts from a summary of the Financial Services Competitiveness Act of 1995.
Section 20 of the Glass-Steagall Act would be repealed, and section 32 would be amended to permit common officers, directors, and employees with a securities affiliate.