Georgia Insurance

A panel of congress updates today a clear signal in the debate on opening up the heart of the Bush administration’s proposal to repair the banking system, which the legislature May extend the powers of banks by the institutions to the entry of new companies.

A number of provisional votes of the commission’s banking subcommittee on financial institutions today, only the first step in what is assumed that a summerlong process. The Panel’s vote is seen as an important political test may go far in Congress to throw banks laws written during the Great Depression. Of the 52 members of the Banking Committee, 36 serve as the subcommittee.

The votes today strongly recommended that the legislature was aware of the recommendation on the management of the extension of powers of banks, although perhaps not as large, such as management.

Members of the Subcommittee strike again trials for the elimination of many benefits of the merger of investment banks and commercial banks. Nor has a “needs more funds for banks, which aims own securities firms.

The committee members also a provision that would simply reinforce what the administration described as a firewall between investment banking and commercial banking units of the same company. They also adopted an amendment to prohibit Directors and Officers of a unit of securities worked in the banking business partner. The ban on working time for banks and securities, member organizations are not applicable to banks-enterprises with less than $ 500 million in assets.

Two other measures, banks in the sub-committee would ask the future to tell customers when they are protected by the Federal Deposit Insurance. Under the provisions, customers must be told that their investments in securities, investment funds and other products that are sold by banks are not insured.

But in a clear victory for the insurance sector, the sub-committee of coordination, so that they can difficult and costly for banks to insurance business, although it retains the existing status of many public institutions charter, which sell insurance.

The importance of the meeting today, and the other in the last few days, it was clear, hordes of lobbyists on a varety interests of Wall Street for large and small industrial and savings banks, insurance and other companies. The subcommittee “marking” of the legislation was hot ticket on Capitol Hill. Each morning, an editorial meeting, lines, well before the sun goes down on the Rayburn Office building, where meetings will be held. In localities where the lines are lobbyists in possession of some people pay nearly $ 20 per hour. For those who receive it is too late, a second room was opened, where the procedure can be heard by loudspeaker.

An amendment by representatives of James P. Moran, a Democrat first-term Virginia, strongly reflects the political and policy issues that Congress would conflict with the coming months.

Mr. Moran proposed a measure would have been éventé and investment banks member organizations selling the exchange of information and financial resources. Supporters of the measure, said it was necessary to prevent abuse of financial and loops plagued the practical development of the banking sector during 1920 and savings and loan, while the Industry 1980’s. It was adopted by the jury.

“The same arguments are now in favour of extending the powers of the Bank were 10 years ago, the associations to save money,” said Representative Gerald D. Kleczka, Democrat of Wisconsin.

But the action opponent said that times were different and that the proper management of the proposal would involve obstacles for banks, risky activities.

“We are not the same as 1930 or 1980’s,” said the representative of Barnard Douglas Jr., Democrat of Georgia. “If we do not allow banks to affiliate, let’s forgotten. We put in a capsule and take all provisions of the air. Let’s verstaatlichen.