Financial systems around the world are undergoing a process of modernization due to many different forces. Advances in information technology, product and market innovations, and recent regional financial crises have contributed to this movement. As a result, evolution in the financial sector is leading to larger, more complex financial organizations that render inadequate the supervisory and regulatory structures currently in place. While some changes in regulatory policies have already occurred, the adaptation of supervisory oversight and regulation in the face of these new developments is expected to continue for many years to come. This book collects papers originally presented in September 1998 at the Financial Modernization and Regulation Conference co-sponsored by the Federal Reserve Banks of Atlanta and San Francisco. Revised before publication, the papers seek to identify the reasons for changes in the financial services sector, and the implications these changes pose for financial supervision and regulation. Taken together, the papers offer valuable insights on 1) the forces behind financial modernization; 2) the implications financial modernization poses for corporate structure, market discipline, and financial regulation; 3) how to price deposit insurance accurately to reflect banks' risk-taking; and 4) balancing private versus public interests and managing potentially conflicting public policy goals.

The Fed. Aviation Admin. began to modernize the ATC system in 1981 under a 10-year $12 billion program that comprised 80 projects. In 1991, the modernization effort was redefined incorporating the original projects and about 150 additional ones. Currently, the program is estimated to cost $32.8 billion through the year 2000 and will require an additional $1.3 billion for 2001. This report provides information on the status of modernization of the ATC system. Also contains information on overall costs of air traffic control modernization. Tables.