Gramm-Leach-Bliley Act

(redirected from GLB 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.

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.

References in periodicals archive ?
PCI, HIPAA, HITECH Act, GLB Act, FTC, and FCC regulations.
Which of the following items are parts of the GLB Act?
(95) "The idea of notice under the GLB Act is to convey information that is critical to an individual's decision making' regarding their personal data.
This was achieved in 1999 with the passage of the GrammLeach-Bliley Act (GLB Act).
The GLB Act requires companies to give consumers privacy notices that explain the institutions' information-sharing practices.
A study done by a professor at the University of Arkansas says the GLB Act has had little effect on bank profitability.
For FHCs, the GLB Act directs the Federal Reserve to rely as much as possible on the functional regulators (including the primary federal banking supervisory agency) for examination and other information.
The court disagreed, writing, "Despite Guin's persistent argument that any nonpublic personal information stored on a laptop computer should be encrypted, the GLB Act does not contain any such requirement."
The GLB Act, effective November 13, 2000, allows mergers of financial institutions and regulates the disclosure of NPI.
Eight federal regulators, on December 23, 2003, announced an advance notice of proposed rulemaking (ANPR) requesting public comment on ways to improve the privacy notices that financial institutions provide to consumers under the Gramm-Leach-Bliley Act (GLB Act).
Howard Beales, director of the FTC Bureau of Consumer Protection, wrote in an April letter to the ABA that although the FTC recognizes the issues raised regarding the application of the GLB Act to lawyers, there are "significant questions as to the legal authority of the commission" to grant the exemption requested by the ABA.
During the 106th Congress, financial modernization legislation known as the Gramm-Leach-Bliley Act (GLB Act) included privacy protections (Title V).