With such things happening, why do we need a legislative solution? The answer is that a well thought out proposal addressing the appropriate structure for the industry would allow for a more rapid and efficient integration of financial services.
Moreover, by clearly defining the boundaries and structure of financial conglomerates, a well-considered supervisory program could adequately protect banks without undue intrusion to other parts of the conglomerate. Because financial conglomerates generally operate as integrated entities and manage risks on a global basis across business lines, their true operating structure superimposes a risk management and internal control process that extends across legal-entity-based corporate structures.