GOP Unveils Framework for Banking Bill

Republicans unveiled a framework for final legislation to overhaul Depression-era U.S banking laws, but the Clinton administration said it is inadequate and will be vetoed. For the first time in two decades of trying, both houses of Congress this year passed bills that would allow banks, brokers and insurers into one another’s businesses. Lawmakers have been trying to reconcile the two measures. Republican leaders went behind closed doors last week to hammer out a final draft to take to the conference committee. “ . . . The good news is that we are going to pass a financial services modernization bill,” said Senate Banking Committee Chairman Phil Gramm (R-Texas). “I think we have written a bill that merits the signature of the president.” But Treasury Secretary Lawrence Summers said the proposal does not fully address any of the administration’s key concerns. Chief among these is a dispute over which agency would regulate the new financial conglomerates that the bill would allow. On the issue of consumer privacy, the draft includes the broader protections in the House version of the legislation but would allow several exceptions. The administration backs even tighter controls on the ability of firms to share or sell customer data. The conference committee will begin debating and amending the draft Thursday.