What is the law on the modernization of financial services?
, which was also called Gramm-Leach-Bliley law, was the Modernization Act by law 106. The US Congress, which was signed in Act 12. November 1999. The Modernization Act abolished part of the 1933 Act.
The Modernization of the Financial Services has launched competition between banks, valuable companies and insurance companies by allowing commercial and investment banks to consolidate. These fusion created the financial services industry. The banking industry managed to weaken the Glass-Steagall Act, which has been promoted for abolition since the 80s, so there have been some combinations of financial services before legislation.
at the time of legislation, banking industry, brokers and insurance companies generally supported it. Their arguments were that allowing consumers to carry out all their banking, investments and other financial business in the same place were for the consumere for financial institutions "mutually advantageous" situations. The law would be good for consumers because they would have a more comfortable and wider service to choose from. This would be good for financial institutions, because it would isolated from the ways people tend to move their money back and forth between savings and investments depending on how the economy is doing.
The Modernization of Financial Services has maintained some restrictions on mergers and acquisitions between financial services companies. The institutions must have a satisfactory evaluation by the law on the reinvesting of the community that monitors the practices of fair loan. Financial companies also cannot own non -financial companies and vice versa. Non-financial companies, such as Wal-Mart, cannot run banks.
Financial -connection on the modernization of AL services is included by some economists and experts, including President Obama, in a direct causing mortgage crisis of 2007. For FThe institutions were criticized as "corporate well -being". Defenders of the law claim that without it it would be harder to bring some merger and sales organized in response to the current financial crisis.