THE HOUSE : Banking Bill

By a vote of 324 to 89, the House defeated a bill (HR 6) to provide the first overhaul of banking laws since the 1930s.

The measure would have permitted banks to open branches nationwide and sell securities and insurance through affiliates. Among its tight regulations were measures to keep high-flying banks from putting taxpayer-backed deposits at undue risk, as many S&Ls; did in the 1980s, with calamitous results. It recapitalized the federal deposit insurance fund by authorizing $30 billion in FDIC borrowing from the treasury.

Supporters said the bill would empower the American banking system to compete in a sophisticated global economy while retaining consumer confidence in its soundness. Opponents included lawmakers who saw the bill as injurious to hometown bankers and insurance agents. Some feared the bill might lead to an S&L-style; fiscal and political debacle.

A yes vote was to pass the bill.

How They Voted

Rep. Gallegly (R): Nay

Rep. Lagomarsino (R): Nay

Deposit Insurance

By a vote of 264 to 153, the House rejected an amendment to HR 6, limiting federal deposit insurance to $100,000 per person per bank, plus $100,000 for an individual retirement account.

Sponsors noted that the high cost of the S&L; fiasco is attributed largely to the virtually unlimited taxpayer backing of bundled deposits in weak thrifts.

Opponents said tightening deposit insurance would alarm consumers and cause capital flight, adding that only a tiny percentage of depositors have more than $100,000 in one bank.

A yes vote supported the amendment.

How They Voted

Rep. Gallegly (R): Nay

Rep. Lagomarsino (R): Nay

Interstate Banking

By a vote of 250 to 142, the House rejected an amendment putting state-by-state barriers in the way of nationwide branch banking. This preserved language in HR 6 enabling a bank to open teller windows in any state that hasn’t opted out of nationwide banking.

Amendment sponsor Bill Sarpalius (D-Tex.) said “this is a big bank versus small bank issue. . . . Big does not always mean it is better.”

Opponent Charles E. Schumer (D-N.Y.) said that “we need interstate banking for the stability of the system” and to benefit consumers.

A yes vote was to block or slow nationwide branch banking.

How They Voted

Rep. Gallegly (R): Nay

Rep. Lagomarsino (R): Nay

Civil Rights Bill

By a vote of 381 to 31, the House sent President Bush a bill (S 1745) providing increased protection against bias at work. The bill makes it easier for women, minorities and others to file and win suits and collect cash damages. One politically sensitive provision subjects complaints against senators to internal hearing and federal appellate court review. Staff complaints against House members will be resolved only on the internal level.

A yes vote was to pass the bill.

How They Voted

Rep. Gallegly (R): Yea

Rep. Lagomarsino (R): Yea

Source: Roll Call Report Syndicate