Financial Modernization Legislation Update
The likelihood of so-called financial modernization legislation emerging from ongoing Congressional conference deliberations to be enacted this year remains uncertain. However, the three chairmen of the relevant committees, Senator Phil Gramm (R-TX) and Representatives Jim Leach (R-IA) and Tom Bliley (R-VA), have completed their work on drafting a consolidated proposal for consideration and further amendment by the Conference Committee. A markup of the new version of the bill is scheduled for this Thursday. The Conference is intended to be completed in time to allow votes in both chambers for passage prior to the anticipated adjournment of the Congressional session later this month. Disputes over several controversial issues, including the Community Reinvestment Act, activities of bank subsidiaries, insurance and securities provisions, and so-called unitary thrift holding companies, as well as recently surfaced concerns over privacy,
