Transcript: JOHN D. HAWKE, JR. UNDER SECRETARY OF THE TREASURY FOR DOMESTIC FINANCE TO THE 1998 UNC SCHOOL OF LAW BANKING INSTITUTE CHAPEL HILL, NORTH

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While the organizers of this impressive program could not possibly have anticipated it, this week could not be a more appropriate -- or perhaps inappropriate, depending on your point of view -- time to talk about Financial Modernization. Just two days ago an effort to bring a long debated and delicately balanced Financial Modernization bill to the Floor of the House of Representatives failed. While supporters of the bill gamely announced that the effort was not over, and that they would return to the drawing board after the Recess, the prospects for legislation in this Congress look exceedingly dim.

Why did the effort fail -- an effort that had unprecedented momentum ...

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