Nation: Fed Proposal On Insurance
The Federal Reserve Board proposed yesterday that bank regulatory agencies prohibit officers, directors and principal shareholders from personally profiting from sale of life insurance in connection with their banksÛª credit transactions.</br></br>The Fed said the proposed rule would help "preserve the safety and soundness of financial institutions.1'</br></br>The Fed rule would apply-to state-charter Federal Reserve members, but the board recommended that other bank regulatory agencies impose the rule on all federally insured financial institutions.</br></br>has been introduced in both houses to close a loophole in the tax code that permits self-employed professionals to avoid antidiscrimination provisions of pension law.</br></br>The bill, sponsored by Sen. Lloyd Bentsen (D-Tex.) and Rep. A1 Ullman (D-Ore.), would require professionals to pay the same propor- tion of income as they do for them* selves to any workers employed by an "adjunct organizationÛ in which the professionals collectively have at least a 25 percent interest.