Unformatted text preview: much risk • unfair to small banks because small banks are put at a competitive disadvantage because their large depositors may suffer losses if the bank fails Restrctions on Banking Industry Competition • branching restrictions These limit the ability of banks to expand outside their regions or states and make the banking industry less competitive. Bank holding companies (firms that own many different banks as subsidiaries) are allowed to operate interstate. • restrictions on the scope of bank activities The Glass-Steagall Act (1933) separated commercial and investment banking. Also, banks are not allowed to engage in nonfinancial activities....
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This note was uploaded on 11/22/2011 for the course FIN FIN1100 taught by Professor Bradrifkin during the Fall '09 term at Broward College.
- Fall '09
- Personal Finance