It has been one year since Congress passed and President Clinton signed the Gramm-Leach-Bliley Act ("GLBA") into law in November 1999. The passage of GLBA ended more than sixty years of separation between commercial banks and securities firms, removing barriers established during the Great Depression and allowing affiliations between banks, securities firms, and insurance companies. As November 2000 approaches, it is a good time to examine how GLBA has changed the financial services industry in the short-time and evaluate the impact of GLBA.
Financial Holding Companies And Financial Subsidiaries
As of September 29, 2000, the Federal Reserve Board ("FRB") had deemed effective the financial holding company ("FHC") election of more than 400 top tier holding companies. The companies that have elected FHC status include large banking organizations (e.g., Citigroup, Inc., Bank of America Corporation, First Union Corporation), small banking organizations, foreign banking organizations
