Gramm-Bliley-Leach Act

(redirected from Financial Modernization Act of 1999)
Also found in: Acronyms.

Gramm-Bliley-Leach Act

Legislation in the United States, passed in 1999, that deregulated the banking industry. Specifically, it repealed the portion of the Glass-Steagal Act that prohibited commercial banks, investment banks and insurance companies from working in each other's sectors. Critics claim that this deregulation led directly to the late 2000s recession by allowing banks to take excessive risks, essentially putting their customers' deposits at risk. Many others claim that this assessment is inaccurate, and contend that the Act prevented the crisis from being even worse than it was.
References in periodicals archive ?
In the United States, well-organized groups have helped to establish competing regulatory bodies that are likely to keep the market for financial regulation far from being a monopoly, even after the Financial Modernization Act of 1999. As I describe in the section on the leviathan approach, competition among regulators plays an important role, parallel to that of competition among the interest groups.
With President Clinton's signing of the Financial Modernization Act of 1999 (FMA), however, the landscape changed for providers of consumer financial services.
900, the Financial Modernization Act of 1999, mostly along party lines.
The Financial Modernization Act of 1999, which allows banks, brokerage, and insurance firms to expand into one another's businesses, now allows Atlanta Life to offer a myriad of investment advisory products.
21 order and memorandum opinion upholding the constitutionality of the Gramm-Leach-Bliley Financial Modernization Act of 1999.

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