The Gramm-Leach-Bliley Act of 1999 (GLBA) by Julia Kagan

TL;DR - The Gramm-Leach-Bliley Act repealed the Glass-Steagall Act that prohibited commercial banks from providing other financial service offerings.

Helpfulness - 2

Tags - Gramm-Leach-Bliley Ac, Glass-Steagall Act, commercial bank, investment, insurance

Questions answered:

  • What is the Gramm-Leach-Bliley Act?

Summary:

  • The GLBA is most famously known as the repeal of the Glass-Steagall Act (1933).
  • Glass-Steagall disallowed commercial banks from offering other financial services (ie. investment and insurance services) as part of their normal operations.
  • Since many regulations have been instituted since the 1930s to protect bank depositors from exposure to risk (reason for Glass-Steagall), GLBA was created to allow these financial industry participants to offer more services.
  • Citicorp’s (commercial bank) merger with insurance firm Travelers Group set the stage for GLBA.

Follow up links: