This article traces the history of the growth and regulation of banking services in the United States. That history will show how the existing regulatory structure was developed in response to demands of the Civil War and a populist crusade against the “money trust.” That effort reached its zenith with the New Deal legislation of the 1930s, but began to fall apart as financial services consolidated. The article will then show how the financial services industries (banking, insurance, securities and derivatives) began to merge in their product base while at the same time separating on a fault line between institutional and retail customers. After reviewing this history, the article will discuss the future of banking regulation under the functional regulatory structure adopted by the recently adopted Gramm-Leach-Bliley Act for financial services holding companies.
Jerry W. Markham, Banking Regulation: Its History and Future, 4 N. C. Banking Inst. 221, 286 (2000).