UNKNOWN SENATOR SQUELCHES ALLARD BANK BILL

WASHINGTON March 4 (States) -- An unknown senator blocked an attempt by
Republican leaders Thursday to push a bill written by Sen. Wayne Allard
through the Senate, delaying the Colorado Republican's plan to prohibit
federal regulators from imposing "know your customer" rules on the nation's
banks.

Allard's bill would have prevented the Federal Reserve, the Federal Deposit
Insurance Corp. and other agencies from instituting new rules requiring
banks to report "unusual" activity in customers' checking and savings
accounts to the FBI and Drug Enforcement Administration. Consumer advocates
have attacked the proposed rules as an attempt by the government to invade
customer privacy.

Eager to show that Congress has not been crippled by President Clinton's
divisive impeachment trial, Majority Leader Trent Lott on Tuesday
approached Allard in the Senate chamber. Lott told Allard that GOP leaders
wanted to offer his measure as a "unanimous consent" resolution, a
designation normally reserved for only the least controversial bills.

Unanimous consent resolutions can be defeated by any single senator.

On Thursday, one or more senators indicated they would vote to kill
Allard's bill. Rather than see it defeated, GOP leaders withdrew it from
the floor schedule.

"We're disappointed we weren't able to get it done right now," said
Allard's spokesman. "We think we'll still win this battle. The American
people are on our side, and we'll force them to withdraw the regulations.
It is only a temporary setback."

Designed to fight crime, the "know your customer" regulations have come
under heavy fire from banks and the general public. During a mandatory
comment period that ends March 8, the FDIC has received 153, 000 comments
- -- mostly e-mail -- most of them staunchly opposed to the proposal,
according to FDIC spokesman Steve Katsanos. The regulations would take
effect in April 2000.

In light of the public response, the FDIC Board of Directors is likely to
modify its proposal, but it is too soon to say what changes they might
make, Katsanos said.

"Our chairman said back in January that whatever is done is likely to be
different that what was proposed," he said. "I can't say any more than that."

Allard tried to slip language barring the agencies from implementing the
rules into a separate banking bill as an amendment in February, but removed
it after Banking Committee Chairman Phil Gramm, R-Texas, promised the panel
would consider Allard's bill separately.

"These new regulations are clearly an invasion of privacy, and if they are
not stopped they threaten to have 'big brother' looking into every piggy
bank in America," Allard said. "This is about the most un-American
regulation I have ever seen proposed."

The senator will try again later in the session, aides said.