Gramm-Leach Bliley Act, P.L. 106-102 (113 Stat.1338), also known as the Financial Services Modernization Act of 1999, tears down many barriers established early in the 20th century that separated the banking, insurance and securities sectors of the financial services industry.
White Paper: Crisis in Life Insurance for a complete view of why change was needed. This White Paper is credited with helping to secure the bank insurance friendly Gramm-Leach-Bliley Act which was enacted into law on November 12, 1999.††
Now bank holding companies owning well-capitalized, well-managed commercial banks that perform satisfactorily under the Community Reinvestment Act (CRA) may become financial holding companies and acquire securities firms and insurance companies. The new law establishes a "functional" framework for regulatory supervision of each industry segment and redefines the roles of state regulators and federal agencies in regulating financial services.
For an overview of the new law, read the GLB white papers offered at our site and provided by several law firms. These white papers answer frequently asked questions about GLBís provisions.††††††
White Papers on the GLB Act:
By Morgan, Lewis &
By Squire, Sanders & Dempsey, LLP
By Stradley Ronon Stevens & Young, LLP
You can also read the text of the
Act, and you can read the Fed and
OCC's rules for implementing
Many have already entered the insurance market and are earning the fee income they need in this period of squeezed interest margins. But because insurance products and regulations are complicated, many bankers hesitate. All bankers can, however, learn to understand the insurance industry and benefit from the fee income bank insurance sales generate. This site can get you started.
At any time, you can
contact MWA for professional advice.