Bank Reform Sponsor Concedes Defeat

House Banking Committee Chairman Jim Leach conceded defeat Tuesday in his bid to push a broad bank reform bill this year and proposed to move a much narrower measure.

“In this setting, it would appear that comprehensive bank modernization legislation cannot move forward this year,” said Leach, R-Iowa.

He spoke as the banking committee planned a second day of debate on the bill to remove 63-year-old barriers separating banks, Wall Street firms and insurance companies. The proposal would let banks underwrite stocks and bonds, sell mutual funds, insurance and engage in other new financial services activities.

In its most recent version, the bill sought to reduce bank regulations, particularly key consumer laws such as requiring consistent disclosure of interest rates on savings accounts and details about consumer loans.