The Impact Of The Financial Modernization Act On Small Banks
The recent passage of the Gramm-Leach-Bliley Act of 1999 (the "Financial Modernization Act" or the "Act") has been widely hailed as eliminating the traditional barriers separating the banking, insurance and securities industries. While the benefits of the Act for large financial services companies are apparent, the Financial Modernization Act also offers benefits to community banks. This Article describes the impact of the Act on community banks, including a discussion of expanded securities and insurance powers, Community Reinvestment Act ("CRA") relief and easing of Federal Home Loan Bank requirements.
I. Community Banks Will Benefit from Expanded Securities and Insurance Powers
