The recent failures of the savings and loan institutions are chilling proof that restricting banks to real estate and commercial loans is anything but safe.
Proposals on the House and Senate floors today would further restrict banks from greater involvement in insurance.
Cuba says such purchases are all but impossible because the law restricts the United States government and American banks from financing the food sales.
Also approved by the committee was a measure that would restrict banks from selling insurance anywhere but the state in which they conduct their primary business.
Mr. Greenspan contends that many of the laws restricting commercial banks severely limit their ability to adapt to a changing marketplace.
Insurance companies had hoped to further restrict banks from selling insurance.
Unfortunately, the Europeans show no appetite for this debate, instead harping on about top-down measures to restrict banks and attack hedge funds.
Narrow banking would restrict banks to holding liquid and safe government bonds.
For the bill would severely restrict banks from entering new areas of business and stop a move by large commercial companies from entering the banking business.
It would permit the merger of commercial banks and investment banks and eliminate the barriers that restrict banks from opening new branches across state lines.