Legislative Highlights Dec/Jan 1999

President Clinton signed the historic financial services modernization bill on Nov. 12 (Pub. L. 106-102),
clearing the way for financial firms to be able to offer a full range of banking, securities and insurance products.
It is hoped the new law, repealing the 1933 Glass-Steagall Act, will spur greater innovation, competition and
choice for consumers. Section 730 of the law clarifies the so-called "source of strength doctrine," by amending
the Federal Deposit Insurance Act to limit the circumstances under which a Federal banking agency, including
one serving as a receiver, can be liable with respect to a transfer of assets from a financially troubled depository
institution.

The Courts Subcommittees of the Senate and House Judiciary Committees held a hearing Nov. 2 on the
Judicial Conference's request for 24 additional bankruptcy judgeships. The pending reform bills (H.R. 833
and S. 625) provide for 18 new positions only, all on a temporary basis. The Conference is seeking 13
permanent and 11 temporary positions and the conversion of three existing temporary positions to permanent
judgeships. The six new positions are in: Puerto Rico (add one temporary and convert existing temporary);
Delaware (add one permanent and convert existing temporary); Maryland (add one permanent); E.D. North Carolina (add one temporary judge); M.D. Georgia (convert shared judgeship with S.D. Ga. to a full-time
position in the M.D.); S.D. Georgia (add one permanent judgeship following above conversion); S.D. Florida

(add one temporary judgeship). Sen. Paul Coverdell (R-GA) has offered an amendment to S. 625 to add the six new positions.