Centre for Economic Policy Research

Endnotes 111

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evidence that information sensitive issues benefit from using a universal bank.
75
The pre-1906 US experience shows that combining insurance and banking through 
interlocking directorates was an inferior choice, providing unusual opportunities for 
officers and directors to exploit conflicts of interest. 
76
The Federal Deposit Insurance Company’s History of the Eighties
– 
Lessons for the 
Future (1997) documents how the severe reductions in bank examiner resources at 
the federal and state level and decreased frequency of examinations exacerbated the 
banking crisis.
112 Conflicts of Interest in the Financial Services Industry

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