Gramm-Leach-Bliley Act

(redirected from The Gramm-Leach Bliley 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 ?
The proposed changes would bring the rules into line with changes implemented by Congress through the Dodd-Frank Act in 2010 and the FAST Act in 2015, which modified the annual privacy notice requirement under the Gramm-Leach Bliley Act.
Ed Markey (D-Mass.) has spoken in support of amending the Gramm-Leach Bliley Act to require encryption.
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) and the Gramm-Leach Bliley Act protect consumer privacy and, equally as important, make companies liable if consumer information gets into the wrong hands.
The proposed rule is contrary to what Congress intended when it passed the Gramm-Leach Bliley Act in 1999, which clarifies any congressional intent and amends the Bank Holding Company Act to preclude any such action by the Federal Reserve or Treasury.