Article: FDIC limits product offerings of state banks. (Federal Deposit Insurance Corp.)

WASHINGTON - The Federal Deposit Insurance Corp. adopted a regulation Tuesday that bars state-chartered banks from offering products or services that national banks may not offer.

Congress in 1991 instructed the FDIC to crack down on states that allow their banks to engage in activities that federal regulators consider unsafe. The same prohibition was slapped on state-chartered thrifts by the 1989 thrift bailout law.

Separately at its open meeting Tuesday, the FDIC proposed a regulation that would require banks to disclose their capital ratings in writing to employee benefit plans.

Move Was Expected

The FDIC's action on state bank ...

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