A Federal Deposit Insurance Corp. study recommends...

A Federal Deposit Insurance Corp. study recommends ending the split between commercial and investment banking imposed by the Glass-Steagall Act, saying that separation of banking and commerce is not fundamental to the financial system. The draft study of the proposals, presented by FDIC Chairman L. William Seidman at a conference in Wyoming over the weekend, would give banks greater freedom to engage in new businesses, such as underwriting securities through affiliates and subsidiaries. The study also proposed limits on bank holding companies while supporting stricter supervision of banks by regulators.