At that time, there existed some blurring of the functions of the major players in the industry, as well as the presence of many new players. As an example, the activities of commercial banks and investment type institutions overlapped to a greater extent than was true prior to regulatory revision. The distinction between commercial banks and thrift institutions had also been blurred. By this time, thrift institutions were permitted to engage in all retail banking activities, although not all thrifts availed themselves fully of such opportunities. Further, the narrowing (or, in some cases, the elimination) of interest rate ceilings between commercial banks and thrifts resulted in a restructuring of the activities of the two types of institutions.9
Unfortunately, the outcomes of governmental actions are not always as anticipated. Certainly some of the outcomes of governmental deregulation in the airline and communications industries differed from predictions, and, in the summer of 1989, it was becoming apparent that some of the
...