There are a number of policy issues involved but one which seems self evident is that mixing commerce and banking, fully or in part, impels inter, as well as intra, industry conglomeration, whereas maintenance of the status quo on the issue assures and perhaps enhances greater competition. While big banks have now figures out that too much commerce and banking jeopardizes their independent viability, they have concluded that a little can go a long way in giving them ore discretion - i.e. a competitive advantage in the market. Likewise, industrial firms, as well as securities and insurance companies, might wonder why banks should be given such added advantage is they can't comparably share in them. In conclusion, let me stress that Americans have been well served by an independent community banking and financial services industry, one which is competitive, innovative and hallmarked by a customer-orientated approach to business. But the sobering fact is that relative to other financial services, banking is a declining industry, less than half as big as it was three decades ago.
Action is needed.
Modernization that allows increased competition within the banking, securities and insurance industries makes sense. More radical change that jeopardizes an independent banking industry should be looked upon with great wariness.