The OTS allows thrifts to branch where they choose. Interstate Banking and Branching Efficiency Act sanctions interstate banking and loosens interstate branching. 1995 Republican Banking Committee leaders introduce banking modernization bills. The U.S. Supreme Court rules that banks can sell annuities, previously considered insurance and allowed to be sold only by insurance companies. The Fed loosens restrictions on Section 20 subsidiaries of banks and allows mergers of banks and large securities companies.
Some banks immediately take advantage of the ruling to acquire securities firms.
The Fed also raises the Section 20 revenue limit from 10 percent to 25 percent. Financial modernization bill goes nowhere due to opposition from insurance industry. The insurance industry drops opposition to financial modernization. Fed eliminates Section 20 firewalls. House and Senate Banking Committee chairmen introduce financial modernization bills, but while the House bill passes in 1998, the Senate version dies.