This project examines the policy process surroundingCanada's latest reforms of its financial–services industrylegislation. The banks lobbied for a broadening of their eligibleactivities to mirror those of the multi–function banks in Europeand the United States and for mergers to permit them to compete withthose banks on an equal footing. The government denied theinstitutions' requests and the pressure for action was deflected toa task force. My analysis of the policy change process is informed bythe public choice paradigm and portrays the activities in the policy“black box.”