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Show The Salt Lake Tribane F7 Sunday, May 22, 1383 u Bankers Stockbrokers, Battling In Financial Services Game By James Russell Newspapers ATLANTA Joshua fit the battle of Jericho, and the walls came tumbling down. A Merrill Lynch executive here last week quoted that old bit of folksong to describe whats happening to the walls separating stockbrokers and bankers. $ Each is invading the business territory of the other so boldly that numerous court battles have eruptKnight-Ridd- er ed. "A legal and judicial quagmire has been created, said Douglas Scarff, director of market regula- tion for the Securities and Exchange Commission. This cries out for legislative intervention. But congressional attention to what SEC Chairman John Shad called the battle between the securities and banking industries could be a long time coming, and the fighters are not waiting. Swapping Activities The banks are moving rapidly into the field, while the brokers are taking on what historically have been banking activities. Shad presented a snapshot of the present battle scene at a two-da- y conference in Atlanta sponsored by the SEC and attended by some 200 financial-services executives. The banks and savings and loan associations are aggressively expanding into the discount brokerage business, the governments top securities regulator said. He cited the attempt by Bank of America to acquire the Charles Schwab discount brokerage firm, a move by a group of S&Ls to become brokers, and the actions of numerous banks throughout the country to sell stocks and bonds at cut-rat- e commissions. After complaining for years about brokers siphoning off their deposits mutual funds, into money-markthe banks and S&Ls finally got congressional approval late last year to fight back. Ceilings on savings rates were removed in December and the banks lost no time attacking the funds head on. money-markThere has been an unprecedented movement of capital in the past six months, Shad said. The banks and savings and loans took in $370 billion in deposits, while the money-markfunds experienced a $54 billion decline. Shad estimated that half of the $54 billion went into savings deposits and the other half went into the stock market In the past six months, he added, registration filings for new money-- ( market funds have dried up. town department stores that were outflanked by the discount stores years ago. The brokers, however, have been equally active in broadening their financial horizons. Shad mentioned the combinations of Prudential Insurance Co. and Bache, and Sears Roebuck and Dean Witter Reynolds. "Merrill Lynch has added a savings and loan to its complex, the chairman said. Shad said the SEX? endorses the heightened competition, but would prefer to see that it is fair and that all play by the same rules. For example, the banks and S&Ls w HAVE A JOB OPENING? PUT THE SYSTEM TO WORK FOR YOU! Vif have deposit insurance, something the brokers with their money-markfunds lack. In addition, laws dating back to the early part of the cenet the limit tury corporate . 0 LETS GET THEM TOGETHER combatants forays into each others territory. May has been proclaimed Veterans Employment These disparities should be removed to foster fair competition, Shad said. But no one at the SEX? conference was anticipating an early resolution of the differences. What will happen with all this blending and blurring? asked Theodore Focht, general counsel of the Month by the Governor. Help Job Service help Veterans find jobs. FULL TIME Wstsjlrlm Securities Investors Protection Corp. 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