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Journal Article
The potential for portfolio diversification in financial services
The Gramm-Leach-Bliley Act sweeps away most of the barriers limiting the affiliation of banks with nonbank financial services providers. The focus now shifts to financial services executives who must decide which combinations provide the best opportunities to increase shareholder wealth. Existing empirical evidence suggests that an important consideration in this decision is the potential gain from portfolio diversification into new activities. The empirical evidence also suggests that the potential for such gain clearly exists. ; This article builds on earlier studies, in particular updating ...
Journal Article
The final frontier : the integration of banking and commerce. Part 2, risk and return using efficient portfolio analysis
Using hypothetical portfolios created from historical data on industry profitability, the authors demonstrate that some combinations of banks with other industries could produce higher returns on equity with less risk.
Journal Article
The final frontier : the integration of banking and commerce. Part 1, the likely outcome of eliminating the barrier
Exploring the potential effects of removing the legal barriers between banks and commercial firms, this article surveys economic theory as well as experience in other developed countries and in U.S. nonbank conglomerates.