The Financial Services Modernization Act

The Financial Services Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act, allowed different types of financial institutions—such as banks, insurance companies, and investment firms—to share information and offer combined services. This law modernized regulation by removing previous barriers that kept these institutions separate, promoting competition and innovation. It aimed to create a more efficient and integrated financial system, better serving consumers’ needs, while establishing safeguards to protect customer privacy and financial stability.