What was the 'Gramm-Leach-Bliley Act of 1999 - GLBA'

The Gramm-Leach-Bliley Act of 1999 (GLBA) was 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.

BREAKING DOWN '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. Firewall

    Legal barriers that prevent both the transference of inside information ...
  2. Commodity Exchange Act - CEA

    An act passed in 1936 by the U.S. Government that provides federal ...
  3. Regulation G

    A federal regulation that requires insured depository institutions ...
  4. Monetary Control Act

    Title 1 of a two-title act passed in 1980 that represented the ...
  5. Dodd-Frank Wall Street Reform and ...

    A series of federal regulations, primarily affecting financial ...
  6. Business Banking

    A company's financial dealings with an institution that provides ...
Related Articles
  1. Insights

    Financial Regulations: Glass-Steagall to Dodd-Frank

    Here are some of the most important financial regulations that have been established.
  2. Insights

    Why Trump and Clinton Want to Reinstate Glass-Steagall

    Both major-party platforms call for the reinstatement of the Glass-Steagall Act. Whether the financial regulation would actually do any good is hotly debated.
  3. Investing

    What Was The Glass-Steagall Act?

    Established in 1933 and repealed in 1999, the Glass-Steagall Act had good intentions but mixed results.
  4. Investing

    What's a Commercial Bank?

    A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal and mortgage loans; and offers basic financial products ...
  5. Personal Finance

    Who Does Wall Street Want For President?

    Wall Street seems to benefit more from a president who favors "laissez-faire" policies.
  6. Personal Finance

    How Will Bank Regulation Affect British Banks?

    We look at the proposed changes to Britain's banking system, and see whether it will be able to stay competitive.
  7. Insights

    The SEC: A Brief History Of Regulation

    The SEC has continued to make the market a safer place and to learn from and adapt to new scandals and crises.
  8. Insurance

    The Rise Of The Modern Investment Bank

    Get to know a little bit about the institutions whose actions help to guide free markets.
  9. Small Business

    How Effective Is The Chinese Wall?

    Because underwriters work on one side of the Chinese wall and analysts work on the other side, information gathered by the underwriters is not supposed to be shared with analysts.
RELATED FAQS
  1. How was Glass-Steagall weakened prior to its repeal?

    Learn about the gradual relaxation of the strict banking regulations under Glass-Steagall, eventually culminating in the ... Read Answer >>
  2. How are investment banks regulated in the United States?

    Read about the extensive regulations placed on investment banks in the United States, beginning with the Glass-Steagall Act ... Read Answer >>
  3. How did the Glass-Steagall Act affect commercial and investment banking?

    Learn what the Glass-Steagall Act did for banking in the early 1900s. Learn why it was implemented and what economic era ... Read Answer >>
  4. Did the repeal of the Glass-Steagall Act contribute to the 2008 financial crisis?

    Understand the argument that the repeal of the Glass-Steagall Act caused the 2008 financial crisis, and learn why the argument ... Read Answer >>
  5. What is the difference between the Volcker Rule and the Glass-Steagall Act?

    Read about the differences between the Volcker rule and provisions in the Glass-Steagall Act, two attempts at regulating ... Read Answer >>
  6. What's the difference between investment banks and commercial banks?

    Understand the principal differences between investment banks and commercial banks, and the areas of banking services that ... Read Answer >>
Trading Center