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This article represents an extension of some hypotheses I advanced in two earlier publications about identifications and regression in small groups (Scheidlinger, 1964, 1968). At that time, I had suggested that in the normative development of inner psychic structures through internalization of affective relationships with familial objects, one's early experiences with groups beginning with the family might be internalized as well.** While I was in the process of researching the relevant literature and collecting clinical illustrations, I encountered an early article of Redl's dealing with the adolescent “Gang Beneath the Couch” (Redl, 1974) and a more recent series of articles by Grunebaum and Solomon (1980, 1982, 1987) on peer relationships and their role in adult development with emphasis on developmental stages and the promotion of self-esteem. These contributions materially stimulated my inquiry.