August 18, 1994
TO: BOARD OF GOVERNORS NO. 85-94
FEDERAL LEGISLATION COMMITTEE NO. 27-94
FEDERAL LEGISLATION MEMBERS NO. 24-94
FINANCIAL SERVICES ISSUES GROUP
BANK LEGISLATIVE ISSUES GROUP
RE: THE FINANCIAL SERVICES COMPETITIVENESS ACT INTRODUCED
THIS MEMO WAS NOT SENT OUT ACCORDING TO LEGISLATIVE AFFAIRS
__________________________________________________________
On August 12, House Financial Institutions Subcommittee
Chairman Steve Neal (D-NC) introduced H.R. 4956, the "Financial
Services Competitiveness Act." This legislation, which is
similar to legislation introduced last Congress by the previous
Administration, would establish a new financial services
regulatory structure based upon a Diversified Financial Services
Holding Company concept. Under this structure, depository and
non-depository institutions could exist as separately-capitalized
subsidiaries within the same holding company.
Chairman Neal is retiring at the end of this session of
Congress, and in his introductory remarks stated that he does not
expect to move this bill, but rather has introduced it to
"facilitate a debate addressing the basic structure [sic]
problems that are the result of outdated affiliation and
activities restrictions contained in the Bank Holding Company
Act, the Glass-Steagall Act, and various other laws."
In order to provide a forum for such debate, the
Subcommittee may hold a hearing on the legislation sometime this
fall. To date, however, nothing has been scheduled.
A copy of the legislation, a section-by-section summary, and
Chairman Neal's introductory remarks are attached for your
review. We will keep you informed as this matter develops. If
you wish additional information, please contact the Legislative
Affairs Department at 202/326-5890.
This memo can be found on FUNDS, the Institute's Fund User
Network and Delivery System, under "Legislative Affairs;
Washington Update."
Julie Domenick
Senior Vice President
Legislative Affairs
Attachments