After Gramm-Leach-Bliley: Looking for the Gains.

Where are the big gains that are supposed to follow enactment of Gramm-Leach-Bliley? Mostly, they haven't happened yet, says Claude Hanley, managing director of Furash & Co., Washington, D.C., because strategic considerations have gotten in the way. "Organizational and channel conflict" have prevented most banks from taking full advantage of the opportunities GLB provides, Hanley writes in a recent issue of the Furash newsletter, "The Edge."

Most insurance companies already can offer banking products through thrift subsidiaries, Hanley points out. Why buy a bank and become subject to regulation by the Fed? And on the other side, with insurance companies returns averaging in the low teens and banks averaging in the 20 percent range, there isn't much incentive to go the other way, either.

"While some cross-industry mergers may occur," Hanley writes, "success wilt not be driven by, or even enabled by, GLB. Instead, it wilt continue to be determined by a clear strategic vision, effective decision-making, the ability to adapt quickly to change, and consistent and excellent execution."