Thank you for the opportunity to present my views in support of the Bliley- Dingell-Leach Manager's Amendment and H.R. 10, the Financial Services Act of 1998.

I want to commend my two colleagues, Mr. Bliley and Mr. Leach, for their leadership and their willingness to work with me to build reasonable consumer and investor protections into this bill. I do believe that the Banking Committee's willingness to accept these requirements was strongly influenced by this week's enforcement action against NationsBank and its operating subsidiary NationsSecurities for defrauding elderly retired people. (See attached statement and press report.) So I guess I have to thank NationsBank too. Even with these protections, there are still numerous opportunities for banks to engage in securities activities not under the watchful eye of the SEC. (See attached listing.) I am not happy about that but I will support the compromise.

I urge Members of the House on both sides of the aisle to support the bill, as presently written, with the addition of the consumer protections we are proposing. And with their inclusion in the Managers Amendment, I am prepared to support the rule and work actively for this bill's passage.

I need to bring two things to your attention in closing. First, due to the press of time, we were unable to complete and include in the Managers Amendment a provision offered by Chairman Leach providing for Federal Reserve review of the important issues raised by megamergers. I believe that this amendment is vital and I hope that acceptable language can be worked out for inclusion in the Managers Amendment before we reach the Floor. It would address the issues raised by small banks and consumer groups and result in added support for the bill. It is also, I might add, good government.

Finally, I want it clearly understood that I am strongly opposed to the Treasury Department's long-standing proposal for greatly expanded high-risk activities in bank operating subsidiaries. I have attached to my statement a news release on the equally negative views of the Federal Reserve and the SEC. This issue deeply divides both of our caucuses. If the Treasury Department's proposal is adopted by the House, I will be compelled to oppose the bill, vote against the bill, and urge others to do the same. I feel the same way about expansion of the commercial baskets in the bill.

• May 4, 1998 Press Statement of Congressman John D. Dingell on NationsBank and NationsSecurities
  
• May 5, 1998 New York Times article "Risks Are Cited In Bank-Broker Combinations"
  
• Title II -- Securities Functional Regulation (list)
  
• May 6, 1998 Press Statement: Dingell Releases Federal Reserve and SEC Responses Opposing Administration on Op Subs

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