The Fed backed limits on banks’ holding checks.

The Federal Reserve Board reaffirmed its support for limiting the time that banks can hold money after a check has been deposited in a customer’s account. Wayne D. Angell, a Fed governor, told the Senate Banking Committee’s subcommittee on consumer affairs that legislation introduced by Sen. Christopher J. Dodd (D-Conn.), provides the “needed authority for the Federal Reserve to improve the check system. . . . We think we can live with four business days.”