In a landmark vote, the House approved the Financial Services Act of
Repeal the 65-year-old Glass-Steagall Act that separates commercial and
Eliminate Bank Holding Company Act restrictions on banks affiliating
Override state laws preventing affiliations.
Require diversified financial services firms that own banks to form
Provide for functional regulation of financial activities.
Bar financial holding companies from conducting nonfinancial
Grandfather nonfinancial activities of existing firms at 15% of annual
Let grandfathered thrift holding companies continue their current
Preserve state laws governing insurance and securities sales unless
Strip the comptroller of the currency of "deference," or legal
Permit banks to own operating subsidiaries that conduct insurance,
Bar operating subsidiaries from underwriting activities, merchant
End banks' exemption from federal securities laws except in a dozen
Let national banks underwrite municipal revenue bonds directly.
Preserve the thrift charter.
Bar formation of unitary thrift holding companies that had not applied
Grandfather existing unitary thrift holding companies, permit them to
Keep the bank and thrift deposit insurance funds separate.
Home Loan Bank Reform
Lift requirement that 10% of total assets be in residential mortgages
Let Home Loan bank members receive advances for funding small-business,
Require banks to tell consumers which products are not federally
Require banks to separate deposit and loan services from insurance or
Mandate financial holding companies to supply low-cost banking
Mandate federal regulators to review their rules on consumer fee
Other Create a new type of bank-the wholesale financial institution-that
Studies to be Done
By the Treasury Department to determine whether adequate services are
By the Federal Trade Commission on privacy issues.
By the Federal Deposit Insurance Corp. on the need to merge the bank
By the Office of the Comptroller of the Currency on the impact of the