Jill Considine, New York StateSuperintendent of Banks, said a federal banking bill proposal
now before the Senate, which includes a moratorium on new
non-bank activities by bank holding companies, would preempt
state banking authority.
    "This bill purports to freeze the 'status quo' of banking
but in fact only magnifies the existing competitive
inequalities and places a strait-jacket on the ability of
states to permit banks to diversify their services and expand
geographically," Considine said in a statement.
    "This bill is antithetical to the concept of the dual
banking system, which encourages states to experiment and
innovate," she added.
 Reuter
