In recent years observers have noted a remarkable flow of capital into the United States; foreign investment has almost quadrupled within the last decade. A segment of the economy in which foreign penetration is dramatically evident is the American banking industry. …It is this deft compromise, developed by Senator Adlai Stevenson which is the focus of this comment. The general history of the international banking legislation and positions supporting and opposing the regulation of interstate branching will be discussed. Thereafter, the elements of the Stevenson compromise will be explained and their efficacy illustrated. Finally, the current and potential effects of the compromise upon the entire banking system will be explored.