Cities and counties popularly atte...

Cities and counties popularly attempting to finance public infrastructure must purchase the municipal revenue bonds necessary to do in the way that through securities firms. But Congres could change that this year.

Legislation to allow banks and securities firms the right to engage in each others' businesses has been introduced in Congres and is backed through the Clinton Administration. Currently, banks cannot exchange or underwrite many types of securities, including return bonds, because of the Glass-Steagall Act, which was written in 1933 against the backdrop of the Depression to safeguard the financial order

"National banks have lengthy had the authority to underwrite and deal directly in general obligation (GO) municipal attractions [and we support] similar authority to underwrite and deal in municipal receipts bonds," says Secretary of the Treasury Robert Rubin.

Since 1987 the Federal hold Board has allowed some banks - in the name of competitiveness - to barter and underwrite ...