The
Gramm–Leach–Bliley Act (
GLBA), also known as the
Financial Services Modernization Act of 1999 and commonly pronounced ″glibba″, is an
act of the
106th United States Congress (1999–2001). It repealed part of the
Glass–Steagall Act of 1933, removing barriers in the market among
banking companies,
securities companies and
insurance companies that prohibited any one institution from acting as any combination of an
investment bank, a
commercial bank, and an
insurance company. With the bipartisan passage of the Gramm–Leach–Bliley Act, commercial banks, investment banks, securities firms, and insurance companies were allowed to consolidate. Furthermore, it failed to give to the SEC or any other financial regulatory agency the authority to regulate large investment bank holding companies. The legislation was signed into law by President
Bill Clinton.