The Glass-Steagall Act and later the Bank Holding Company Act reduced the scope of operations for banks and created a separation between banking and commerce. But this separation is not absolute. An individual can legally own controlling interests in both a bank and a commercial firm. Finally, banks often take equity stakes in firms that have defaulted on their loans. Approximately one-quarter of the unitary thrifts currently use their commercial powers to operate in real estate development, as well as insurance sales and underwriting.
Commercial firms can purchase thrifts.
In the 1980s, firms such as Ford Motor Company and Sears Roebuck bought thrifts. The recent flood of applications for new thrift charters, however, has come mainly from nonbank financial firms. Firms in any industry choose to merge because they believe they will be more profitable together than they are apart. One compelling argument for efficiency benefits in mergers between banks and commercial firms is that a combination between two firms may result in the profitable delivery of new products. This enhanced profitability could emerge from operating synergies between the two firms.