Financial Services Modernization Act of 1999

The Financial Services Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act, removed barriers between banks, securities firms, and insurance companies. It allowed these financial institutions to merge and offer a wider range of services, which aimed to enhance competition and consumer choices. However, critics argued that it contributed to risky financial practices, leading to the 2008 financial crisis. The act marked a significant change in how financial services are structured and regulated in the United States.