What the Commission Didn't Recommend

THE BASIC WORK OF THE COMMISSION ON FINANCIAL STRUCTURE was negotiation. The restrictions on competition in the banking laws and regulations create monopoly positions, two of which turned out to be most important for the members of the commission. Protracted negotiation was required because the commission had to discover the price that commercial bankers were willing to pay to the depository thrift institutions to get them to give up Regulation Q and the 1/2 percent difference in deposit rates maintained by regulation. The price was a share of the commercial banks' monopoly on the demand deposit business and their claim to "one-stop" banking