|FOR IMMEDIATE RELEASE:||CONTACT: CHRISTI HARLAN|
|Thursday, March 4, 1999||202-224-0894|
COMMITTEE APPROVES FINANCIAL SERVICES MODERNIZATION ACT OF 1999
The Senate Committee on Banking, Housing and Urban Affairs today approved the Financial Services Modernization Act of 1999, which will make it easier for consumers to conduct their banking, securities and insurance business in one location.
Committee Chairman Phil Gramm, R-Texas, said he expects the bill to be considered in the full Senate after the Senate's Easter recess ends in early April.
"It has been clear for 25 years that we have needed a new structure for financial services that addresses the real needs of consumers and the industry," Gramm said. "The committee's action today is the first step in building a modern structure, and I'm going to work hard to pass the best bill possible."
As approved by the committee in an 11-9 vote, the bill will:
The Banking Committee approved six amendments to the 130-page markup draft of the bill, including one that will allow state insurance regulators to establish safeguards for the sale of insurance by banks. Such safeguards include a reminder to consumers that insurance products sold by banks are not covered by the Federal Deposit Insurance Corp. The amendment was sponsored by Sen. Richard Bryan, D-Nev.
Another amendment would exempt small banks with less than $100 million in assets from the requirements of the Community Reinvestment Act. The amendment was sponsored by Sen. Richard Shelby, R-Ala.