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.