The President could bar American banks from making loans of more than $10 million to companies that receive sanctions.

As leverage, the bill gives the Treasury secretary various sanctions to impose on those nations, up to barring American banks from dealing with them.

The bank was unable to repay the Singapore concern because the Philippine Government had barred banks from sending dollars out of the country.

But the Federal Reserve has effectively barred Chinese banks, claiming they have failed to meet Western standards on transparency.

Mr. Moran proposed a measure that would have barred banks and securities affiliates from sharing marketing information and financial resources.

Another measure that died in the final throes of the session would have barred insurance companies and banks from selling or trading private information about customers without their permission.

The new legislation would bar credit card companies, banks and other financial institutions from sending money to online gambling sites at their customers' request.

In an additional nine states, including New York, the laws are less clear but could bar banks from selling insurance.

Under the 1996 law, the Administration could bar American banks from lending more than $10 million to any of the three companies involved in the Iranian investments.

The proposals represent the latest erosion of the Glass-Steagall Act, the landmark law that for 61 years has largely barred commercial banks from trading securities.