Legislative Background
Recent Action on Financial Restructuring Legislation
For two decades, Congress attempted, without success, to undothe prohibitions on cross-ownership of banks, securities firms,and insurance companies imposed by the 1933 Glass-Steagall Act.Until this year, however, Members were unable to agree on a varietyof issues — from how the new financial services companieswould be structured to privacy, consumer protection, and communitylending provisions.A Near Success in the 105th Congress. In May 1998, the House approved, by a single vote, H.R. 10, sponsored by House Banking Committee Chairman Jim Leach (IA-R), to remove restrictions on affiliations between banks, securities firms, and other financial providers. While the bill had strong support from…
