Gramm-Leach-Bliley Act

(redirected from Gramm-Leach-Bliley 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.

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 ?
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 GLBA repealed the Glass-Steagall Act, which greatly restricted the financial services banks or other financial institutions could offer.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.
Among the most significant developments during his tenure at ACLI was passage of the Gramm-Leach-Bliley Financial Services Modernization Act of 1999.
In June 2000, the Federal Trade Commission and federal banking regulators approved rules implementing the privacy provisions of the Gramm-Leach-Bliley Financial Services Modernization Act. This legislation, which Congress developed in 1999, contained a number of privacy protections for consumers.
NIPR is a byproduct of the Gramm-Leach-Bliley Financial Services Modernization Act, approved in 1999 as a final congressional attempt to enact nationwide regulatory standards.
It is with the Virginia Bankers Association, which stepped up its efforts to help member banks sell insurance after Congress enacted in 1999 the Gramm-Leach-Bliley Financial Services Modernization Act. In 1999, the Virginia association created a special organization, Bankers Insurance LLC, to buy agencies throughout the state; that organization's deal with SBLI of Massachusetts complements its primarily property/casualty operations.
Insurers must incorporate into their operations several new international, federal and state regulations dealing with privacy and security including the Gramm-Leach-Bliley Financial Services Modernization Act, the Health Insurance Portability and Accountability Act, the anti-money laundering USA PATRIOT Act; and state legislated optin/opt-out privacy mandates.
The expected rush of banks to affiliate with insurers has largely failed to materialize, despite the removal two and one-half years ago of barriers separating financial services firms with the passage of the Gramm-Leach-Bliley Financial Services Modernization Act.
In 2000, the NAIC asked the industry how to streamline state regulation and bring it into line with the principles set forth by the Gramm-Leach-Bliley Financial Services Modernization Act.
Title V of the Gramm-Leach-Bliley Financial Services Modernization Act of 1999 contains comprehensive federal privacy protections for consumers, and it impacts all financial institutions, including insurance companies.
The Gramm-Leach-Bliley Financial Services Modernization Act of 1999 has contributed to the use of data warehousing and data-mining techniques in both the banking and insurance industries.