This year marks the 20th anniversary of the Financial ServicesModernization Act (FSMA), also known as the Gramm–Leach–Bliley Act,signed into law in President Clinton's second term. The goal ofthis legislation was to improve the efficiency and competitivenessof the financial services industry by removing legal barriersbetween commercial and investment banking. In reality, it laid thegroundwork for an oligopolistic universal banking industry, inwhich a small number of institutions provide a wide variety ofservices across the commercial and investment banking spectrum.

Once implemented, the FSMA led to a massive consolidation offinancial institutions. Today, according to FDIC data, more than 50percent of all deposits in the United States reside with the fourlargest bank holding companies, and these are the same companiesthat sit atop the league tables in merger and acquisition (M&A)advisory, loans, bonds, and equity offerings.