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All the enthusiasm in the brokerage industry no longer centers on mutual funds as it did before internet became an everyday household word. Now, much attention surrounds on-line investing in the brokerage industry. On-line investing has only recently begun to expand at astronomical rates. As personal computers become nearly an essential part of life, consumers are beginning to manage their portfolios on-line. Full-service brokerages may now be facing competition from their cyberspace counterparts as these …

…gradual blurring of the lines between full-service brokers and on-line brokers. Jack White foresees the day when consumers will have access to all their financial needs on the Internet. I believe that these blurred lines between different sectors of brokerages are fleeting. After these firms finish "duking it out", price will nearly equal marginal cost. Banks will thus take this opportune time to move heavily into the market through a series of consolidations and acquisitions.