This paper reviews the literature on the effects of combining banking and nonbank financial activities on banking organizations' risk and return. In general, securities activities, insurance agency, and insurance underwriting are all riskier and more profitable than banking activities. They also...

In recent years investment banks have drawn particular criticism for the lack of objectivity and independence in their research reports and analyst recommendations. This article argues that this conflict of interest is but one of many potential conflicts that arise as banks take advantage of the...

The health of the U.S. economy is heavily dependent on the health of the banking system. Commercial banks support economic activity through a number of traditional services-taking deposits, making loans, and providing payment services. Many of today's large banking organizations, however, don't...

In the wake of the passage of the Gramm-Leach-Bliley Act, the separation of banking from commercial activity is now one of the few remaining pieces of Depression-era banking law. In this article I explore the incentives that banks and commercial firms might have to affiliate. I also outline some...