Consolidation and universal banking

Banks in the US have been competing with investment banks through newly cre ated "Section 20" subsidiaries. The evidence to date suggests that banks en try into securities activities via these subsidiaries has been pro-competit ive. Recently, however, banks have been allowed to enter securities activit ies via acquisitions. This may not result in the same competitive effects a s "new bank" entry. (C) 1999 Elsevier Science B.V. All rights reserved.