Gramm-Leach-Bliley Act of 1999 - GLBA

AAA

DEFINITION of 'Gramm-Leach-Bliley Act of 1999 - GLBA'

A regulation that Congress passed on November 12, 1999, which attempts to update and modernize the financial industry. The main function of the Act was to repeal the Glass-Steagall Act that said banks and other financial institutions were not allowed to offer financial services, like investments and insurance-related services, as part of normal operations.

The act is also known as Gramm-Leach-Bliley Financial Services Modernization Act.

INVESTOPEDIA EXPLAINS 'Gramm-Leach-Bliley Act of 1999 - GLBA'

Due to the horrific losses incurred as a result of 1929's Black Tuesday and Thursday, the Glass-Steagall act was created originally during the 1930s in order to prevent bank depositors from additional exposure to risk associated with stock market volatilities. As a result, for many years, banks were not legally allowed to act as brokers. Since many regulations have been instituted since the 1930s to protect bank depositors, GLBA was created to allow the financial industry to offer more services.

RELATED TERMS
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which ...
  2. Unitary Thrift

    A company that controls a single savings-and-loan association. ...
  3. Regulation R

    Regulation R implements provisions of the Gramm-Leach-Bliley ...
  4. Financial Institution - FI

    An establishment that focuses on dealing with financial transactions, ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. Black Thursday

    The name given to Thursday, Oct. 24, 1929, when the Dow Jones ...
Related Articles
  1. From Booms To Bailouts: The Banking ...
    Home & Auto

    From Booms To Bailouts: The Banking ...

  2. Succeeding At The Series 63 Exam
    Professionals

    Succeeding At The Series 63 Exam

  3. What Was The Glass-Steagall Act?
    Retirement

    What Was The Glass-Steagall Act?

  4. Overcome Your 6 Biggest Digital Banking ...
    Personal Finance

    Overcome Your 6 Biggest Digital Banking ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center