This article looks at the types of risks that may be associated with complex financial groups and then sifts through the weight of the evidence in favour of, and against, the various alternatives used to address those risks. The conclusion drawn is that there is no magic bullet among the available policy options that is sufficient on its own to satisfy the three core policy objectives (i.e. safety and soundness, systemic stability, and conduct of business). Rather, this article argues that the greater financial and economic impacts associated with problems at larger institutions requires a holistic approach that combines transparency, governance, regulation and supervision. JEL Classification: G01, G18, G02, G03, G28, G32. Keywords: financial groups, safety and soundness, systemic stability, contagion, governance, supervision and regulation, market discipline.