Legislation to Aid FSLIC Faces Fight in Full Senate
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WASHINGTON — A plan to pump money into the Federal Savings and Loan Insurance Corp. and broaden the powers of federal regulators over financial institutions faces a possible fight on the Senate floor.
Sen. William Proxmire (D-Wis.) said he would filibuster the measure unless lawmakers attach a curb on the proliferation of limited-service banks.
The Senate Banking, House and Urban Affairs Committee on Wednesday unanimously approved the measure, which would establish a financing corporation designed to raise $15 billion over three years.
Federal regulators also would be empowered to sell failed or financially ailing banks with assets of at least $250 million to out-of-state holding companies, a loosening of current restrictions.
The measure would enable the Federal Deposit Insurance Corp. to create institutions known as “bridge banks” to take over the assets of failed banks and carry on their business for up to three years.
Even if the bill wins Senate approval, it still faces an uncertain future in the House.
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