Sen. Phil Gramm, chairman of the Senate Committee on Banking, Housing and Urban Affairs, said he is pleased that federal bank regulators responded to concerns from the public and Congress and withdrew the so-called "Know Your Customer" rule.

"I heard from more than 10,000 Texans who thought this rule was a bad idea," Gramm said. "I'm glad to know that there are regulators who will listen to real people and walk away from a bad idea.

"Now, I'd like these agencies to go one step further and tell us how such an idea came about in the first place," Gramm said. "This exercise will go a long way toward keeping bureaucrats in touch with reality."