Lending Reform Bill Stalls in Senate Committee

An effort to resolve differences over federal community-lending rules fell apart in the Senate Banking Committee, stalling a vote on legislation to overhaul the financial services laws. The 1977 rules require banks to serve low-income people and minorities in their communities. The rules have long been championed by Democrats and attacked by conservative Republicans. After hours of closed-door meetings over two days, committee Chairman Sen. Alfonse M. D’Amato (R-N.Y.) indefinitely postponed a vote on the bill. With only a few weeks before Congress’ planned adjournment for the year, the sweeping measure’s prospects for Senate passage appeared cloudy. The legislation, which in May squeaked through the House by a 214-213 vote, would lift Depression-era barriers separating banks, securities firms and insurance companies.