H.R. 10 Mark-Up Postponed

The Senate Banking Committee has postponed a mark-up of a comprehensive financial services modernization bill (H.R. 10) due to unresolved issues, including Federal Home Loan Bank reforms and the treatment of unitary thrifts.Senate Banking Committee Chairman Alfonse D'Amato, R, N.Y., issued a statement that members have made progress on many issues and he intends to reschedule the mark-up and vote on H.R. 10 sometime during the next two weeks. However, any delay is seen as proof that the full Senate will not have time to consider or pass H.R. 10 before Congress adjourns Oct. 9 for the year and for the November elections. Just prior to the 10 a.m. mark-up Thursday, Sen. Chuck Hagel, R, Neb., was expected to offer a stripped-down version of his FHLB reform bill. The Hagel amendment would provide for voluntary membership for thrifts, change the annual $300 million Resolution Funding Corp. obligation to 20.75% of FHLB System earnings, and make access to FHLB advances easier for small banks with less than $500 million in assets. However, the final form of the FHLB provisions were still being negotiated behind closed doors when Sen. D'Amato announced the postponement. An amendment by Sen. Paul Sarbanes, D, Md., that would stop commercial firms from acquiring or chartering unitary thrifts was also subject to intense backroom negotiations. Commercial bank lobbyists now are concerned that the Sarbanes amendment may fail and they will not be able to support H.R. 10.