FOR IMMEDIATE RELEASE: | CONTACT: CHRISTI HARLAN |
Friday, June 9, 2000 | 202-224-0894 |
Sen. Robert Bennett, R-Utah, chairman of the Subcommittee on Financial Institutions and Sen. Rod Grams, R-Minn., chairman of the Subcommittee on Securities have scheduled a joint hearing on the interim rule and proposed regulations implementing the merchant banking provisions of the Gramm-Leach-Bliley Act.
"The incorporation of the merchant banking provisions in Gramm-Leach-Bliley were significant and important elements of the banking modernization process," Bennett said. "It was our strong desire to limit any unduly burdensome restrictions put forth by the financial regulators. With that backdrop, this hearing will examine the merchant banking provisions of this new law and the regulators' interpretation of them as shown in their recently released regulations."
The Gramm-Leach-Bliley Act permits financial holding companies to engage in merchant banking activities if the investment is held by a securities affiliate. Merchant bankers provide debt and/or equity to new and existing ventures and companies for the purpose of long-term investment, appreciation and ultimate resale or disposition.
"The merchant banking provisions were among the most carefully considered provisions of the Gramm-Leach-Bliley Act," Grams said. "Subsequent rule-making by the Treasury and Federal Reserve Board was authorized, but not required for this portion of the Act. The purpose of our oversight hearing is to assure that the proposed regulations are consistent with the intent of Congress."
WHEN:
9:30 a.m. Tuesday, June 13, 2000
WHAT:
Subcommittee on Financial Institutions and Subcommittee on Securities
WHERE:
Room 538, Senate Dirksen Building
WHO:
The Honorable Gary Gensler
Under Secretary for Domestic Finance
Department of the Treasury
The Honorable Laurence H. Meyer
Member, Board Of Governors
Federal Reserve System
Mr. Frederick M. Fritz
President, BancBoston Capital
Member, The Financial Services Roundtable
Mr. Jeffrey Walker
Managing Partner, Chase Capital Partners
Member, The Financial Services Roundtable
Mr. Marc E. Lackritz President Securities Industry Association
Mr. John P. Whaley
Partner
Norwest Equity Partners
Mr. Joseph S. Bracewell
Chairman/CEO
Century National Bank
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