Financial Services Modernization Act Of 1999

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DEFINITION of 'Financial Services Modernization Act Of 1999'

A law that works to partially deregulate the financial industry. The Financial Services Modernization Act of 1999 allows companies working in the financial sector to integrate their operations and invest in each others businesses and consoldiate. This includes businesses such as insurance companies, brokerage firms, investment dealers, commercial banks etc.

BREAKING DOWN 'Financial Services Modernization Act Of 1999'

Also known as the Gramm-Leach-Bililey Act, the law was enacted in 1999 and removed some of the last restrictions of the Glass-Steagall Act of 1933. The financial industry began to struggle during economic turns and argued that if allowed to collaborate, they would have divisions that would be profitable during their main divisions downturns, avoiding major losses and closures.

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RELATED FAQS
  1. How was Glass-Steagall weakened prior to its repeal?

    The Banking Act of 1933, popularly referred to as Glass-Steagall, was signed into law by Congress in the early years of the ... Read Full Answer >>
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    First things first, it's only partially correct to think that a portion of your bank deposits is protected. The Federal Deposit ... Read Full Answer >>
  3. What is the difference between investment banks and merchant banks?

    Merchant banks and investment banks, in their purest forms, are different kinds of financial institutions that perform different ... Read Full Answer >>
  4. What are the differences between affiliate, associate and subsidiary companies?

    All three of these terms refer to the degree of ownership that a parent company holds in another company. In most cases, ... Read Full Answer >>
  5. What is the difference between the Volcker Rule and the Glass-Steagall Act?

    The Banking Act of 1933, commonly referred to as Glass-Steagall after one of its most important components, created federal ... Read Full Answer >>
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