The Future of Banking in America - the Mixing of Banking and Commerce: Current Policy Issues

Abstract

This paper examines the arguments in terms of the public interest; reviews the evidence about an alleged long-standing principle of separation; explores the benefits of, and then the risks posed by, affiliations between banking and commerce; discusses firewalls and prudential supervision; spells out two approaches to regulating affiliations; and concludes with a summary and a discussion of policy implications.