Staffers: banks have no incentive to negotiate

The lack of incentives to negotiate an agreement by the banking industry concerning bank insurance business is the major obstacle to reform in financial services, according to staff members in Congress. Efforts by the Federal Reserve and Office of the Comptroller of the Currency for banking deregulation have given banks almost everything they want. The situation may become more complicated if Federal Deposit Insurance Corp gets involved.
WASHINGTON--The biggest stumbling block to financial services reform is the fact that banks have no real incentive to come to the table to negotiate an agreement, leading Capitol Hill staffers [...]