firms said Thursday that brokerage companies would have to start offering traditional banking products in order to stay competitive in the new world of financial modernization.

Speaking at the annual meeting of the Securities Industry Association, Goldman Sachs Group Inc. chief executive officer Henry Paulson and John "Launny" Steffens, a vice chairman at Merrill Lynch & Co., said securities firms would also need to sell insurance, in addition to providing a broad array of financial services products.

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