|
Democrats offer bank bill
|
 |
March 26, 1999: 11:58 a.m. ET
Daschle says Clinton will veto GOP financial services reform if passed
|
NEW YORK (CNNfn) - A Senate Democratic proposal for financial services reform unveiled Friday came with a warning that President Clinton will veto the Republican version of the measure if it passes Congress.
The Democratic proposal includes tying added financial services activities for banks -- which is the main thrust of the measure -- to adherence to the Community Redevelopment Act, aimed at ensuring that communities are able to get credit. That provision is missing from the GOP measure offered by Sen. Phil Gramm, R-Texas, and passed by the Senate Banking Committee on an 11-9 party line vote.
Sen. Paul Sarbanes, D-Md., the ranking minority member of the Banking Committee, said the Republican measure is opposed by civil rights, community and consumer groups, and doesn't enjoy as broad support of financial services industry groups as the Democrats' alternative.
Senate Minority Leader Tom Daschle, D-S.D., said the Democratic proposal is based on a House measure that has a cleared a committee in the other body on a bipartisan basis.
"There are ... two tracks for reform for this legislation," Daschle said. "There is the veto track -- the Gramm bill is certain to be vetoed because of its provisions, or lack of provisions, on the CRA. And the second track is enactment of the Democratic bill, which will lead to a very swift conference with our House colleagues and ultimately signature by the president."
Treasury Secretary Robert Rubin said the Republican legislation doesn't meet the administration's guidelines for a reform measure: that it protect the Community Redevelopment Act and that it ensures the safety and soundness of financial institutions.
"We very strongly want to see good financial services modernization legislation passed this year," Rubin said. "The bill that came out of the Senate banking committee does not meet these requisites."
The legislation is aimed at making it easier for banks to offer other types of financial services such as brokerage and underwriting. Banks are moving into those sorts of areas anyway, but the legislation would allow them to be less encumbered as they proceed.
"The choice is very clear -- either a partisan brinksmanship or a bipartisan accomplishment," said Daschle. "We can't see a partisan standoff on an issue this important." 
|
|
|
|
|
 |
|
