This paper analyses the legal status of financial institutions which form part of financial or mixed group in the law of the European Union. This analysis is made from a double angle. First the situation in group law is examined, as in many jurisdictions, financial institutions will be treated as normal components of group of companies. In addition to general group law, financial groups are however, subject to more stringent and more specific requirements, aimed not only at safeguarding the interests of their creditors, but also at protecting the financial system as a whole. This explains the elaborate rules at European level on consolidated supervision. This paper further investigates into the legal nature and legal effects of consolidated supervision of both financial groups and financial conglomerates. Published in: Festschrift Marcus Lutter, Bonn, 2000 and European Business Organization Review EBOR 2001, 2, 81-99.