The bill rewriting Depression-era U.S. bank laws promises broad benefits to the banking, insurance and securities industries. A close examination of the fine print, however, shows some companies did particularly well, while others were disappointed.
On Tuesday, U.S. House and Senate negotiators formally approved details of the bill, clearing the way for final House and Senate action as early as today.
All but two of 20 senators, and 38 of 46 House members on the joint negotiating committee signed the so-called conference report, which translates the Oct. 24 general agreement on the bank bill into specific legislative language.
The bill is expected to lead to a fresh wave of mergers among banks, brokerages and insurance companies. The legislation also includes some rewards, and setbacks, for individual companies.
Jefferson Pilot Insurance Corp., Fannie Mae, American United Life Insurance Co. and rural banks are among the companies that benefit from some of the less-known provisions of the bill.
Losers include Wal-Mart Stores Inc., CMS Energy Corp., and Dillard's Inc.
A look at the details:
* Citigroup had perhaps the most riding on the outcome, and emerged as the most visible winner.
Citigroup, the largest U.S. banking company, represents the combination of Citicorp and Travelers Insurance. That merger won Federal Reserve approval in September 1998 with one caveat: The Fed ordered Citigroup to sell its insurance underwriting operations within five years--unless Congress changed the law allowing banks to affiliate with insurers.
Citigroup stock, up 31 cents to $53.69 on the New York Stock Exchange on Tuesday, hit a record high of $56 last week, boosted in part by the bank bill.
* Jefferson Pilot of Greensboro, N.C., was granted special language in the bill, allowing the company--one of the few U.S. insurance companies in the broadcast business--to increase its broadcast holdings if it is purchased by a bank.
Without the amendment, Jefferson Pilot's broadcast business would have been frozen at current levels if a bank bought the insurer.
The company's stock, up 13 cents to $73.75 on the NYSE on Tuesday, has resurged to just below its record high reached late last year.
* Mutual insurance companies, such as American United Life of Indianapolis, scored a significant victory by winning the right to select a state with favorable insurance regulations in which to incorporate if they convert from a mutual ownership to a hybrid company owned by stockholders and policyholders.
