BANKING: I Have to Put You on Hold

It is the banking industry's version of "The check's in the mail." Banks sometimes force customers to wait as long as a month to make sure that deposited checks do not bounce. But Congress moved closer last week to ending this widespread practice, which House Banking Committee Chairman Fernand St Germain calls a "shell game."

In a 388-to-5 vote, the House approved the Rhode Island Democrat's proposal, which would ultimately limit the nation's banks to a one-day hold on deposits of local checks and a four-day hold on out-of-state checks. The Senate earlier passed a similar measure that would set a more flexible schedule, and now congressional conferees must reconcile the two versions.