Two House Democrats Endorse Reform Bill-with Safeguards

Breaking ranks with the Clinton administration Monday, House Democratic Caucus Chairman Vic Fazio urged colleagues to vote for the financial reform bill.

In a letter to Democrats that he signed with Rep. John D. Dingell, D- Mich., Rep. Fazio of California endorsed the bill, provided it includes an amendment adding consumer and investor protections and preserving state regulatory authority.

"This package will enable Democrats and Republicans to join together in bipartisan support of financial modernization that will serve the public interest and the competitive needs of financial services providers," Reps. Fazio and Dingell wrote. "It is fair to all industries."

Meanwhile, the banking industry urged lawmakers to vote against the bill. "There is no amendment or combination of amendments being considered that will fix the fundamental flaws in the bill," according to a letter from the American Bankers Association, the Bankers Roundtable, and the Independent Bankers Association of America.

The House, the groups noted, has already hurt the banking industry this year, approving legislation easing credit union membership limits.