CCH Provides Timeline On U.S. Banking System
(RIVERWOODS, November 4, 1999) With the banking system on the brink of
major reform, CCH INCORPORATED (CCH), a leading provider of business law and financial
information, takes a look back at the history of the U.S. banking system.
1933 Glass-Steagall Act creates Federal Deposit Insurance Corporation and
erects barriers between banking and commerce, banking and securities.
1956 Banking Holding Company Act establishes a structure to regulate the
permissible non-banking activities of companies that owned banks, but bars bank holding
companies from acquiring banks across state lines.
1967 Savings and Loan Holding Company Act permits any company to own a
single savings and loan institution.
1977 Community Reinvestment Act requires banks to make loans in the same
low-income and minority areas from which they accept deposits.
1987 Federal Reserve Board allows banks to be affiliated with companies
engaged in the private placement of commercial paper. Fed also permits subsidiaries of
several of the largest bank holding companies to underwrite and deal in commercial paper,
mortgage-backed securities, consumer-receivable related securities and municipal revenue
1987 The Office of the Comptroller of the Currency rules that a national
bank can underwrite securities backed by its own mortgage loans.
1988 Senate and House pass separate bills repealing provisions of
Glass-Steagall Act, but no common bill is agreed to.
1989 Fed allows bank affiliates to underwrite and deal in securities if
they derive no more than 10 percent of their gross revenues from those activities.
Percentage limitation is later raised to 25 percent in 1997.
1991 Bills reforming Glass-Steagall pass in the Senate, fail in the
1994 Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994
allows banking organizations to acquire banks in other states and to have the ability to
branch into other states more easily.
1995 Clinton Administration proposes
financial system modernization, but legislation does not progress beyond House Banking
1997-98 Financial services modernization is passed by the House, but dies
in the Senate amid disagreements about Community Reinvestment Act (CRA) and threatened
presidential veto due to concerns about regulatory structure.
1999 The summer of 1999 finally brings what the banking industry had
sought for years, legislation approved by both houses of Congress. With most issues
resolved, the legislation is almost doomed by the same issue that killed it in the 105th
Conference CRA. However, following a marathon late-night session, conferees reach a
"credible resolution" in "good faith" over CRA. In addition, the White
House finds all aspects of the legislation acceptable.
Upon passage of the financial services reform legislation, CCH will issue The
Financial Services Reform Act of 1999: Law, Explanation and Analysis, which will
include the final text of the Act, Committee Reports, Explanations and Analysis by CCH
banking and legal experts. Relied upon by the banking industry and their legal counsel,
the book will be provided to news reporters on request.
Contacting CCH for Interviews or Information
Media interested in speaking with CCH banking law analysts or obtaining copies of the
publication can contact Leslie Bonacum at 847-267-7153 or firstname.lastname@example.org.
About CCH INCORPORATED
CCH INCORPORATED, headquartered in Riverwoods, Ill., was founded in 1913 and has served
four generations of business professionals and their clients. The company produces more
than 700 electronic and print products for the tax, legal, banking, securities, human
resources, health care and small business markets. CCH is a wholly owned subsidiary
of Wolters Kluwer U.S. The CCH web site can be accessed at www.cch.com.
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