FINANCIAL SERVICES MODERNIZATION ACT OF 1999

A law that works to partially deregulate the financial industry. The Financial Services Modernization Act of 1999 allows companies working in the financial sector to integrate their operations and invest in each others businesses and consoldiate. This includes businesses such as insurance companies, brokerage firms, investment dealers, commercial banks etc.

Also known as the Gramm-Leach-Bililey Act, the law was enacted in 1999 and removed some of the last restrictions of the Glass-Steagall Act of 1933. The financial industry began to struggle during economic turns and argued that if allowed to collaborate, they would have divisions that would be profitable during their main divisions downturns, avoiding major losses and closures.