Gramm-Leach-Bliley Act

The Gramm-Leach-Bliley Act (GLBA), enacted in 1999, allows banks, insurance companies, and securities firms to merge and offer a wider range of financial services. It aims to modernize the financial industry by removing barriers between these sectors, promoting competition and efficiency. However, GLBA also includes provisions to protect consumers' personal financial information, requiring institutions to explain their data-sharing practices and provide options to opt out of certain information sharing. Essentially, it balances the benefits of integrated financial services with the need for consumer privacy and security.