Compromise Pushes Financial Modernization Legislation Toward Likely Enactment
A compromise agreement was reportedly reached in the early hours last Friday morning in closed-door sessions between the Administration and Congressional leaders of the ongoing conference on so-called financial modernization, which has cleared the way for likely enactment of that far-reaching legislation. A compromise conference report is expected to be circulated soon among the conferees for signature and approval to proceed to the House and the Senate floors for voting sometime next week. The President will presumably sign the compromise bill.
Although the text of the final bill is not yet available, it is expected to include several revisions reflecting an agreement on CRA that, among other things, would: (1) restrict the ability of a financial holding company to gain approval for, or commence, new activities unless its insured bank subsidiary maintains at least a satisfactory CRA rating;
