The regulatory revolution of the 1980s brought the financial services industry to its current period of dramatic organizational, sectoral, and inter-sectoral restructuring. This process carries with it far-reaching economic and regional implications. This text explores the impact of this changing organization of the financial services industry on regional economic development in Britain. It outlines the way regulatory change and market dynamics have propelled the transformation of the financial sector from a set of self-contained markets to an integrated financial system. It highlights the vital contribution of corporate reorganization to this process, a contribution which reinforces the role of large firms in regional economic development. The author concludes with policy recommnedations to reform the regulatory structures of the UK financial system. Institutional structures and regulatory practices should, it is argued, be recast to establish better links between industry and finance.