Financial Services Modernization Act

United States [1999]

Also known as: Gramm-Leach-Bliley Act

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July 19, 2026

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The Financial Services Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act, significantly altered the U.S. financial landscape. This act repealed key provisions of the Glass-Steagall Act, which had previously separated commercial banking, investment banking, and insurance services. By removing these barriers, the act allowed these different types of financial institutions to merge and enter each other's markets. This led to the creation of large, diversified financial conglomerates, often referred to as "megabanks," fundamentally changing the structure of the American financial services industry.1

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Sanford I. Weill
In 1999 the Gramm-Leach-Bliley Act was signed into law; it repealed the barriers of the Glass-Steagall Act. Thus, the merger was able to be completed, and in 1999 Weill became cochairman and co-CEO of Citigroup, then the largest financial services company in the world.
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In 1999 the Gramm-Leach-Bliley Act was signed into law; it repealed the barriers of the Glass-Steagall Act. Thus, the merger was able to be completed, and in 1999 Weill became cochairman and co-CEO of Citigroup, then the largest financial services company in the world.
Read More

bank
Entry, branching, and financial-services restrictions
Finally, in 1999 the Financial Services Modernization Act, also known as the Gramm-Leach-Bliley Act, repealed provisions of the Glass-Steagall Act that had prevented banks, securities firms, and insurance companies from entering each other’s markets, allowing for a series of mergers that created the country’s first “megabanks.”
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Finally, in 1999 the Financial Services Modernization Act, also known as the Gramm-Leach-Bliley Act, repealed provisions of the Glass-Steagall Act that had prevented banks, securities firms, and insurance companies from entering each other’s markets, allowing for a series of mergers that created the country’s first “megabanks.”
Read More