Legislation that would narrowly expand banking securities...

Legislation that would narrowly expand banking securities power was proposed by the House Banking Committee chairman, Rep. Fernand G. St Germain (D-R.I.). The bill would allow nationally-chartered banks to underwrite and deal in commercial paper and municipal revenue bonds. About 4,600 of the nation’s 13,650 commercial banks are federally chartered. Bank holding companies could underwrite and deal in securities through two types of affiliates: a limited subsidiary for commercial paper and municipal revenue bonds and a full-power subsidiary which would add securities backed by assets such as home, auto and consumer loans to the list. St Germain’s proposal was immediately condemned by the nation’s largest bank lobby group as “regressive . . . and anti-competitive.”