Gramm-Leach-Bliley Act

(redirected from Financial Services Modernization Act)

Financial Services Modernization Act of 1999

Legislation in the United States that deregulated much of the American financial industry. It permitted banks, insurance companies and investment banks to offer each other's products for the first time since the Great Depression. That is, the same companies could offer insurance, brokerage services and/or regular banking services. The legislation resulted in a great deal of consolidation in the financial sector. Critics maintain that it caused banks to take on unnecessary risks that led to the late 2000s recession. It is more commonly called the Gramm-Leach-Bliley Act after its principal authors.
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Gramm-Leach-Bliley Act

Contains privacy provisions regarding consumers' financial information.Financial institutions are required to provide information to their customers regarding information-gathering and information-sharing practices.Consumers may opt out if they do not want their information shared with nonaffiliated third parties.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The first NARAB statute, which was part of the Gramm-Leach-Bliley Financial Services Modernization Act of 1999, was supposed to make it easier for producers licensed in one state to do business in other states.
As for the report on insurance regulation, mandated under the Dodd-Frank Financial Services Modernization Act, the FIO, an agency within Treasury, was supposed to release it last January.
The Gramm-Leach-Bliley Act, also known as the Financial Services Modernization Act of 1999, dealt the mortal blow by ending the ban on combining commercial and investment banking.
Alan Greenspan, the ex Fed chairman writes in his book The Age of Turbulence: "Years in the making, the Financial Services Modernization Act finally did away with the Glass-Steagall Act, the Depression-era law that limited the ability of banks, investment firms, and insurance companies to enter one another's markets."
Accordingly, this empirical note investigates factors influencing the bank failure rate over the period 1970 through 2008, with emphasis on a major banking statute, namely, the Financial Services Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act (GLBA), a statute that essentially repealed the Glass-Steagall Act of 1933.
Some of the roots of the current financial crisis started taking hold in 1999 when Congress passed the Financial Services Modernization Act, also known as the Gramm-Leach-Bliley Act.
The Financial Services Modernization Act of 1999 (FSMA) dismantled important legislative safeguards and circumvented the ability of the Securities and Exchange Commission to effectively regulate certain security-based exchanges.
Congress enacted the Gramm-Leach-Bliley Act (GLBA), also known as the Gramm-Leach-Bliley Financial Services Modernization Act. GLBA repealed the Glass-Steagall Act, which greatly restricted the financial services banks or other financial institutions could offer.
Nason compared the current review to the work that produced the Gramm-Leach-Bliley Financial Services Modernization Act of 1999.
The impetus for the new screening and training program is the federal Gramm-Leach-Bliley Financial Services Modernization Act (15 U.S.C.
A proposed initiative of the Financial Services Modernization Act of 1999/Gramm-Leach-Bliley Act would allow banks to expand their services to include entering the real estate brokerage and property management market.

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