But we have dealt with these trade-offs before and should be able to in the future as well. Umbrella Supervision Whether new activities are authorized in bank subsidiaries, bank holding companies, or both, Congress, in its review of financial modernization, must consider legal entity supervision versus umbrella supervision.
The Board believes that umbrella supervision is a realistic necessity for the protection of our financial system and to limit any misuse of the sovereign credit. The bank holding company organization is increasingly being managed so as to take advantage of the synergies between its component parts in order to deliver better products to the market and higher returns to stockholders.