The Fed endorsed legislation on checks.

Federal Reserve Vice Chairman Preston Martin told a House committee that Fed governors reluctantly support legislation that would force banks to declare in advance how long their customers must wait before writing checks on their deposits. He conceded that banks had failed to set up a system voluntarily. But he said the Fed still opposes writing into law a timetable on so-called check holds. The House bill would require the Fed to develop within five years a system under which no deposited check could be held by a bank for more than three days before the funds are available to the depositor.