Curbs for Holding Companies

Ever since the disastrous collapse of Samuel Insulls financial empire in 1932, Washington has viewed bank holding companies with suspicion but done little to curb their power. Last week the Senate and the House passed and sent to President Eisenhower a bill that would apply stringent curbs. Directed at the 39 U.S. companies that control two or more banks apiece, the bill would make them get rid of all their nonbanking interests, and would forbid buying new banking properties without approval of the Federal Reserve Board. Primary purpose of the bill is to protect independent banks from the interstate branch-banking competition they cannot match.