CLINTON PROPOSES BANKING REFORMS

The Clinton Administration proposed sweeping changes in the nation's banking system that would permit commercial banks to sell insurance and underwrite securities. Treasury Secretary Robert Rubin outlined the new proposal, which would allow banks to "affiliate" with Wall Street firms, insurance companies and other financial service providers. It would repeal several federal restrictions, including the Depression-era Glass Steagall Act, which forbids banks from underwriting securities or selling insurance. Banks for years have been seeking a repeal of Glass-Steagall. Their efforts were blocked by Rep. John Dingell (D-Mich.), who chaired the House Energy and Commerce Committee until the Republicans took control of Congress last month. A Dingell staffer told TIME Daily that the congressman's top concern is to make sure any reforms include protective "firewalls" to prevent federally insured deposits from being used for risky stock investments.