A Democratic alternative to House Banking Committee Chairman Jim Leach's financial reform proposal emerged this week.

Rep. John J. LaFalce, the committee's ranking Democrat, is circulating a 45-page draft that would repeal the Glass-Steagall Act separating investment and commercial banking and would amend the Bank Holding Company Act to permit cross-ownership of banks and insurance underwriters. It calls for functional regulation and consumer protections such as anti-tying provisions and disclosures about the risks of uninsured bank products.

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