Highlights of the Banking Bill

Under the landmark legislation signed into law Friday, banks, insurance companies and securities firms can enter each other’s business through mergers, acquisitions or creation of new enterprises. The law also addresses the privacy issue. Among the provisions:

* Industrial and commercial firms are barred from buying thrifts. For instance, Wal-Mart cannot buy a bank or savings and loan association.

* States continue as prime regulators of insurance companies and federal government continues as key regulator for securities firms, even when banks become active in these businesses.

* Banks must have a satisfactory record of investing in poor communities under the Community Reinvestment Act before they are allowed to expand into insurance and securities.

* Banks must have written policies on privacy and disclose them to consumers. Customers can forbid banks from sharing personal account information with outside firms such as telemarketers. But banks can share information with their own securities and insurance affiliates.