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The Regulatory Separation of Banking from Securities and Commerce in the Modern Financial Marketplace

Abstract

A longstanding, central feature of American banking regulation has been the attempt to separate banking from other financial activities, such as securities and insurance, and from general commerce. In the modem financial market-place, such separation is no longer viable or desirable, and serves only to undermine the competitiveness and soundness of the formal U.S. banking system. Sweeping regulatory reforms proposed by the Bush Administration represent a sound, workable approach to effectively eliminate that separation, though a re-form proposal offered by the Federal Deposit Insurance Corporation, in 1987, seems even more desirable.

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33 Ariz. L. Rev. 583 (1991)

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Authors

Peter J. Ferrara (Shaw, Pittman, Potts, and Trowbridge and the Cato Institute)

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