The fact that our bank structure laws are out of date is not for lack of trying. Changes Occurring in Our Financial System Nonetheless, the failure of our bank structure laws to keep pace with the changes over the past several decades becomes all the more glaringly apparent when we consider the profound changes now occurring in our financial system. Let me just give you a few examples, first by being a bit retrospective. If you look back about 30 or 40 years, you find the financial services industry neatly segmented into specific, regulated markets. Commercial banks take deposits, offer checking accounts, and make loans.
Thrifts offer savings accounts and home mortgages.
You go to your stock broker to buy securities, and visit your neighborhood insurance agent for your insurance needs. Now fast forward to the present. Despite the legal and regulatory barriers that created that balkanized system of several decades ago, financial services have begun to converge. Commercial banks and their affiliates engage in a wide range of investment banking activities. Securities firms make bridge loans.