We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

GrammLeachBliley Act and its effect in Economy - Essay Example

Comments (0) Cite this document
Summary
This paper seeks to outline the effects of Gramm-Leach- Bliley (GLB) Act in the economy from different points of view including that of regulators, investors, financial institutions. This paper will discuss first the nature and original purpose of the Act, how it became a law,…
Download paper
GRAB THE BEST PAPER
GrammLeachBliley Act and its effect in Economy
Read TextPreview

Extract of sample
GrammLeachBliley Act and its effect in Economy

The GLB Act is also known as the Financial Services Modernization Act of 1999. As its name suggests, it is meant to bring into practice or reality what were then needed at that point –_ to modernize financial services. Signed into law by President Bill Clinton to repeal part of the Glass-Steagall Act of 1933, which limits what banks could do, GLB created opening up of the market among securities companies banking companies, and insurance companies. Under the Glass-Steagall Act, the three companies cannot be combined in any way but under GLB, they were made free to do so. The GLB Act therefore gave more power to the players of the financial services industry as it allowed consolidation or combination of commercial banks, investment banks, securities firms, and insurance companies. The 1998 case of Citicorp, a commercial bank holding company, merging with Travelers Group, an insurance company by forming conglomerate Citigroup exemplified the case in point. A temporary waiver process1 for combining securities, insurance, and banking was needed or the merger in 1998, would have violated the Glass-Steagall Act and the Bank Holding Company Act of 1956. GLB therefore legalized the merger on a permanent basis.
How it became a law through the legislative process? Through congressional vote by chamber and party, GLB came about in 1999. Prior to said date, the banking industry had been seeking the repeal of the 1933 Glass-Steagall Act since the 1980s, if not earlier. In 1987, the Congressional Research Service reported on the matter, after exploring the cases for and against preserving the Glass-Steagall Act2. This was followed by respective versions of the legislation being introduced in the US Senate by Phil Gramm and US House of Representatives Jim Leach with the support of Rep Bliley, Jr, Chairman of House Commerce Committee from 1995 to 2001.
As stated earlier, the banking industry ... Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“GrammLeachBliley Act and its effect in Economy Essay”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/410029-grammleachbliley-act-and-its-effect-in-economy
(GrammLeachBliley Act and Its Effect in Economy Essay)
https://studentshare.net/miscellaneous/410029-grammleachbliley-act-and-its-effect-in-economy.
“GrammLeachBliley Act and Its Effect in Economy Essay”, n.d. https://studentshare.net/miscellaneous/410029-grammleachbliley-act-and-its-effect-in-economy.
  • Cited: 0 times
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Gas Price effect on the economy
The economy is affected by numerous factors that are influenced by the consumption of goods and services. Our consumption of the goods and services greatly affects the wealth, jobs, and overall economy of the country. Economies of countries differ in the pace of evolution.
2 Pages(500 words)Essay
THE EFFECT OF TAX AVOIDANCE IN ECONOMY
Implementing of taxes on various transactions of different product categories must be at a level that allows the country an opportunity to achieve the desired objectives in the economic spheres, social programs and defense. Taxation is significant in terms of increasing a country’s reserve amount and regulating business policies, with the aim of maintaining national development and competence at the international scale (Moffat, Bean, & Dewar, 2005, p.45).
8 Pages(2000 words)Essay
Effect of the Charities Act 2006
Charity is the act of giving money voluntarily to help people who require or in need of financial support. However, the idea of charities has changed over time with contributions changing from monetary aid into other material, and personal assistance. There are different developments in the U.K law in regard to charity trusts.
5 Pages(1250 words)Essay
Gender Roles and its Effect
It is this concept that informs gender roles: a set of behaviors, which are accepted as ‘desirable’ and expected of a particular sex category. On the other hand, there are individuals who do not identify as male or female while others describe themselves as completely out of the male/female dichotomy.
4 Pages(1000 words)Essay
Effect of Taxation on the Economy
Tax is an involuntary financial levy imposed on individuals and firms by the government to finance its social welfare and developmental activities. This affects the behavior of house holds and firms alike as they tend to buy more of the less taxed commodities.
7 Pages(1750 words)Essay
The Economy and it's Effect on Politics
It proposes to enrich both the people and the sovereign' (Smith, 2000). Politics and economics are intertwined, both disciplines influence each other on national and global stages and actions in both disciplines have consequences for the other as will be shown.
2 Pages(500 words)Essay
Inequality in the UK its effect on the national economy
Several development agencies in international lending institutions have over the years emphasized on poverty eradication as a means of economic empowerment especially in middle income countries. This is well demonstrated by the components of the Millennium Development Goals (MDGs).
11 Pages(2750 words)Essay
How Business ethical problem effect economy
The sweatshop issue which drew in Nike is also very well-documented. Nearly every high-end apparel brand operates its sweatshops in various countries around the world, especially in places where labor costs are low. This helps companies to save up on
5 Pages(1250 words)Essay
The effect of immigration on US economy
immigrants benefit from immigration, there is no evidence that indicates that a substantial increase in the per capita income of Native Americans is as a result of the immigration. The second issue is that, there is an evidence of fiscal impact (Hansen, 31). This involves the
6 Pages(1500 words)Essay
The effect of immigration on US economy
Immigrants from Mexico are considered the largest source of illegal immigrants. Most of these immigrants entered US without proper inspection procedure while others who were temporarily admitted extended their date of stay. Recent research revealed that on the year 2008
5 Pages(1250 words)Essay
Let us find you another Essay on topic GrammLeachBliley Act and its effect in Economy for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us