While the Treasury is trying to close loopholes that are seen as having contributed to the financial crisis, its efforts are hitting stumbling blocks, columnist Peter Eavis explains. Under proposed measures, General Electric, as well as other nonfinancial companies, would have to become bank holding companies. However, the Treasury does not want nonfinancial companies supervised by banking regulators, so it wants those companies to split off their finance divisions. The proposal has sparked a dispute with the Treasury on one side and the Federal Reserve, Rep. Barney Frank, D-Mass., and GE on the other.
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