Article Abstract:
The Financial Services Act of 1998 (HR 10), which passed the House and would have passed the Senate but for the threat of filibuster, would have repealed the Glass-Steagall Act and amended the Bank Holding Company Act so as to let well-capitalized and managed national banks affiliate with any type of financial firm within a holding company structure. Such reform legislation has very good chances in the next congressional session. Proponents argue that current restrictions are outdated in an era when banks must compete in global markets.
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Article Abstract:
National banks may charge credit card customers late fees regardless of state consumer protection laws after the Supreme Court's 1996 unanimous decision in Smiley v. Citibank (South Dakota) N.A. The court held that the term interest contained in section 85 of the National Bank Act of 1864 included late fees. The case settles the confusion in the lower courts on the issue, and opens the door to congressional deregulation of the banking industry and bank revenue increases.
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Article Abstract:
A roundtable panel discusses the possible effects of legislation now in Congress to reform the 1933 Glass-Steagall Act, which separated securities underwriting and commercial banking. Issues discussed include the need for reform of Glass-Steagall, the role of the states, effects of consolidation of banks, oversight by the Federal Reserve, and problems at the British bank Barings Ltd.
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