Conference Report Summary
Major Provisions of the Gramm-Leach-Bliley Act
The following is a summary of the Gramm-Leach-Bliley Act (theFinancial Services Modernization Act), as signed into law by PresidentBill Clinton on November 12, 1999.Affiliation Among Banks, Securities Firms, and Insurance CompaniesRepeals the restrictions on banks affiliating with securitiesfirms contained in sections 20 and 32 of the Glass-Steagall Act.Creates a new "financial holding company" under Section4 of the Bank Holding Company Act. Such a holding company canengage in a statutorily provided list of financial activities,including insurance and securities underwriting and agency activities,merchant banking, and insurance company portfolio investment activities.Activities that are "complementary" to financial activitiesalso are authorized. The nonfinancial activities of…
