Financial Industry Consolidation: The Convergence of Financial Products and the Implications for Regulatory Reform

Abstract

This paper addresses convergence of financial products in the U.S. marketplace and the question of how better to regulate an industry offering financial products with overlapping features. This paper examines the various distinct regulatory functions and analyzes whether a more purely functional approach to regulation would be workable.

Keywords: Convergence, Consolidation, Regulation, Financial, Banks, Securities, Gramm-Leach-Bliley Act, AEI, Insurance, What Is A Financial Product, Deposit, Hybrid, Functional Regulation