Much consolidation occurred in the financial services industry since, but not at the scale some had expected. Retail banks, for example, do not tend to buy insurance underwriters, as they seek to engage in a more profitable business of insurance brokerage by selling products of other insurance companies. Other retail banks were slow to market investments and insurance products and package those products in a convincing way. Brokerage companies had a hard time getting into banking, because they do not have a large branch and backshop footprint. Banks have recently tended to buy other banks, such as the 2004 Bank of America and Fleet Boston merger, yet they have had less success integrating with investment and insurance companies. Many banks have expanded into investment banking, but have found it hard to package it with their banking services, without resorting to questionable tie-ins which caused scandals at Smith Barney.
Much consolidation occurred in the financial services industry since but not at the scale some had expected Retail banks for example do not tend to buy insurance underwriters as they seek to engage in a more profitable business of insurance brokerage by selling products of other insurance companies Other retail banks were slow to market investments and insurance products and package those products in a convincing way Brokerage companies had a hard time getting into banking because they do not have a large branch and backshop footprint Banks have recently tended to buy other banks such as the 2004 Bank of America and Fleet Boston merger yet they have had less success integrating with investment and insurance companies Many banks have expanded into investment banking but have found it hard to package it with their banking services without resorting to questionable tie-ins which caused scandals at Smith Barney