The Senate voted overwhelmingly last night to limit debate on a controversial bill that would permit bank companies to get into new lines of business but also would prohibit companies whose primary business is not banking to own a bank.
By a vote of 89 to 3, the Senate decided to limit debate on the bill to one hour for each senator.
But Sen. Alphonse M. D'Amato (R-N.Y.), an opponent of the bill, has promised to offer more than 40 amendments in an attempt to derail the legislation. D'Amato and Sen. Daniel P. Moynihan (D-N.Y.) both oppose the bill because it would permit states to set up regional compacts that permit interstate banking within a region but keep out banks from states not in the compact.
Regional interstate banking is opposed by major banks in New York, many of which feel the compacts are designed to keep them out. Citibank, the nation's largest, has vowed to fight all regional interstate banking.
Big banks, however, generally approve of some provisions in the legislation that would enable banks to underwrite mortgage-backed securities and revenue bonds issued by municipalities.
The bill's chief sponsor is Senate Banking Committee Chairman Jake Garn (R-Utah).