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October 20, 1994|From Times Staff and Wire Reports

Fed Proposes Allowing Discounts by Banks: Banks should be allowed to give discounts on some products to customers who buy other services, the Federal Reserve Board said. The proposal stems from a Fed ruling that gave Fleet Financial Group Inc. a limited exemption from the "anti-tying" laws. The laws were designed to keep banks from making customers buy products before giving them loans, which is deemed unfair to consumers and anti-competitive. Regulators have been particularly concerned in recent months about banks making companies agree to let them underwrite their debt offerings as a condition for providing financing. The Fed said there should be an exception to the rules for traditional bank products such as checking accounts and for products offered by bank subsidiaries, such as brokerage accounts.

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