Proponents of the recent banking law changes assert that

OE:

The underlined portion uses "neither ... nor" correctly, but it follows the comma with "and also has not ...." When "and" is used as a conjunction, it must join two sentence elements in parallel form. However, the "neither ... nor" construction is complete, and no new subject is introduced after the comma. Finally, the phrase "and also" is redundant. Eliminate (A).

Scan and Group the Answer Choices:

The answer choices tackle the arrangement of the things deregulation has not done in various ways, and grouping will not be efficiently. Proceed to test the choices one at a time.

Eliminate Wrong Answer Choices:

(B) uses "neither" with "or," which is unacceptable.

(C) uses "not ... or" instead of "neither ... nor," which is perfectly fine as long as the two parts of the construction are parallel, which they are here. After the final comma, "nor" is used as a conjunction, and the word "it" is added to provide a subject for the final clause. Everything is acceptable, making (C) the correct answer. For the record:

(D) uses "not ... nor," which is unacceptable.For comparisons, the correct idiom is either not ... or or neither ... nor. Mixing and matching is not allowed.

(E) uses "neither ... nor" to compare three items and only includes "nor" before the last item. Neither is rarely used for lists. If used, it would require a nor before each item after the first. (For example, consider the unofficial US Postal Service motto: "Neither snow nor rain nor heat nor gloom of night ...").

This post is for my own reference