Financial Services Modernization Act Of 1999

When lawmakers decided to party like it was 1999, part of their fun and festivities included passing the Financial Services Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act. (Sounds like a trio that might perform on The World’s Best, but those are actually the last names of the bill’s co-sponsors.)

This act really did three things. First, it deregulated certain aspects of the financial industry and made it possible for people to receive more than one financial service from one financial institution. Investors/entrepreneurs could now invest through their banks and talk insurance with their investment firms. This made life a little easier for investors, since they didn’t have to deal with different companies all over the place to manage their financial portfolio.

Second, it gave the federal government more oversight over financial institutions. Since now those institutions could do all kinds of new stuff and be involved in multiple aspects of the finance industry all at once, the government decided it probably needed to keep more of an eye on them, and make sure all that power and responsibility didn’t go to their heads.

And third, it put provisions in place to protect our financial privacy. This includes protecting consumer info against hacks and data breaches, as well as forbidding financial institutions from running around sharing or selling our personal financial information.