Nevertheless, it is imperative that we modernize our approach to traditional banking restrictions. The Federal Reserve and state and national chartering authorities have begun to consider the range of electronic commerce activities that financial institutions may operate or own.
We recently issued a proposal on “finder” activities that would allow financial holding companies to provide, or invest in, services that bring together buyers and sellers of nonfinancial products. These activities would encompass, for example, hosting an Internet marketplace or operating an Internet auction site.