BANKING

Fed Proposes to Reduce Restrictions: The Federal Reserve Board proposed to eliminate dozens of restrictions on the activities of banking companies and to create a fast-track application process for bank mergers. Fed Chairman Alan Greenspan applauded the board’s effort to dislodge a buildup of regulations over the last 20 years that are no longer relevant. Among other things, the proposal would vastly expand the scope of what bank units can do in the areas of derivatives trading and investment, as well as investment and management consulting. It would also speed up the process for mergers and acquisitions.