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The Fed sought to regulate ‘non-bank’ banks.

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The Federal Reserve Board urged the Supreme Court to give the agency power to regulate the ever-increasing number of limited-service banks. The justices heard 60 minutes of arguments in a case expected to produce an important ruling by July. The Fed contended that it should be permitted to check unrestricted growth of limited-service banks, which offer either checking accounts or commercial loans but not both.

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