In the excellent book, “Regulating Wall Street,” several of the studies indicate that there are few synergies among financial activities that could lead to economies of scope. The studies also demonstrate that multiple functions in large, complex firms can actually increase systemic risk. Moreover, they suggest that the spun-off activities could thrive without explicit or implied government support.
Toshihiko Fukui: Bank of France – Bank of Japan: converging views Opening speech by Mr Toshihiko Fukui, Governor of the Bank of Japan, at a joint symposium of the Bank of France and the Bank of Japan, Paris, 8 January 2008.