"Deregulation and financial consolidation have led to the development of financial holding companies--allowing commercial banking, insurance, investment banking, and other financial activities to be conducted under the same corporate umbrella--and the Federal Reserve has been named supervisor of the consolidated enterprise. This Policy discussion paper will show that there likely are economies of scope between the Fed's inherent central-banking responsibilities and those of an umbrella supervisor and that these dual roles benefit both the Fed and functional regulators."
