1930s Rules Ensnare 1990s Finance

This week, we saw what the global, wired economy can look like during a market correction. The irony is that at the very moment when global financial markets are creating tumult with the savings of American investors, U.S. financial institutions, still operating under laws that date back to the Grea...

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Bibliographic Details
Published inWall Street journal. Europe
Main Author By David H. Komansky, Philip J. Purcell And Sanford I. Weill
Format Newspaper Article
LanguageEnglish
Published Brussels Dow Jones & Company Inc 31.10.1997
EditionEurope
Subjects
Banking
Financial institutions
Financial services
International finance
Securities markets
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Summary:This week, we saw what the global, wired economy can look like during a market correction. The irony is that at the very moment when global financial markets are creating tumult with the savings of American investors, U.S. financial institutions, still operating under laws that date back to the Great Depression, are constrained from providing the full range of services to clients across every market in the world. But the stock market shifts of October have come at a propitious time. Yesterday the U.S. House Commerce Committee met to consider whether to modernize the rules that govern America's financial services industry. Four times in the past decade, the U.S. Congress has tried but failed to overhaul these laws. We believe the country cannot afford to wait much longer. Around the world and here at home, we are witnessing a whirlwind of consolidation in financial services. It is safe to say that a few years hence, the arrangement of banks, securities firms and insurance companies that is familiar today will look dramatically different.
ISSN:0921-9986