Senators from both sides of the aisle addressed a public policy institute last week on issues that could shape banking policy. Democratic Sen. Hillary Clinton and Republican Sen. Lindsey Graham spoke to members of the New America Foundation about the need for bipartisan compromise on issues like a federal savings account and a government-run investment plan.

An "American Stakeholder Account," one of the foundation's Ten Big Ideas for a New America, would start with $6,000 for every child at birth. With dollar-for-dollar matching contributions of up to $500 per year, the accounts would foster a savings culture.

"It's a message to every family that as they invest in their kids, America will invest in them as well," said Sen. Clinton of New York, who is running for the 2008 Democratic presidential nomination. "We can give every child a vested interest in our financial system, reverse our terribly low national savings rate, and give every child an opportunity to begin adulthood with money in the bank."

The group also advocated a "Universal 401(k)" plan that would be federally managed, with the government matching voluntary contributions. Instead of asking workers to opt in, participation would be the default option.

"I do believe as a people we can come up with an investment program ...that will be secure, sound, and will allow additional retirement benefits,"Mr. Graham of South Carolina said.

A third idea put forth by the foundation aims to reduce college debt and federal expenditures. A "College Access Contract" would demand more of college students in the form of community service and accomplishments after graduation and force banks to compete for government-guaranteed loans...

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