Gramm-Leach-Bliley - Financial Modernization Act of 1999

The Gramm-Leach-Bliley Financial Modernization Act of 1999 ("GLB") is the recently enacted federal financial modernization legislation that modernized the way the U.S. banking, securities and insurance industries can provide various financial services to customers. The State of Missouri implemented these innovations for state chartered banks in June of 2000 with the enactment of Senate Bill 896.

GLB also addressed such issues as consumer privacy and community reinvestment. The following is a brief outline of GLB, highlighting some of the major accomplishments of the legislation:

GLB authorized the combination of banking, securities and insurance companies in the same corporate structure, removing Depression era barriers.

GLB strengthened consumer rights

GLB amended Community Reinvestment Act ("CRA") (CRA is a federal law requiring banks to meet entire home community credit needs, including low and moderate income neighborhoods.)

GLB terminated "unitary thrift loophole" -- terminated prior power of commercial companies, such as retail stores, to acquire a single federal savings association

GLB instituted Federal Home Loan Bank reform -- increased community bank access to FHLB loan funding

For additional information concerning securities brokerage and insurance activities:

Bank Securities Brokerage Summary
Bank Insurance Agency Activities Summary

For more information on GLB and its effect on the State of Missouri, please contact the Missouri Division of Finance at 573-751-3242, or email: