July 11, 2002

The Honorable David M. Walker
Comptroller General
U.S. General Accounting Office
441 G Street, N.W.
Washington, D.C. 20548

Dear Mr. Walker:

I am transmitting copies of my correspondence today to the Board of Governors of the Federal Reserve Board and the Office of the Comptroller of the Currency regarding the growing prevalence of "pay-to-play" practices or the tying of credit extension to investment banking underwriting and advisory services (enclosures). This practice is now openly and avowedly at the core of the business strategy of the major universal banks that have been formed with the demise of Glass-Steagall. In light of changed circumstances and mounting concerns, I am writing to ask that the General Accounting Office update its May 1997 report, Bank Oversight: Few Cases of Tying Have Been Detected (GAO/GGD-97-58), which was prepared at my request and that of Reps. Manton and Markey.

Thank you for your cooperation and attention to this request. I look forward to working with you on this important consumer protection and safety and soundness issue.

Sincerely,

JOHN D. DINGELL
RANKING MEMBER

Enclosures

cc: The Honorable W.J. (Billy) Tauzin, Chairman
      Committee on Energy and Commerce