ABSTRACT
In an October 2003 lecture, Roger W. Ferguson, Jr., vice chairman of the Federal Reserve, remarked that technological change has played an important role in improving risk measurement at financial institutions. This may be one reason why banks have weathered the 2000 to 2003 economic downturn. Ferguson also emphasized the role of technology in breaking down traditional distinctions between commercial banking, investment banking, and insurance — to the point that the Gramm-Leach-Bliley Act can be thought of as a response to technological change.
