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Financial Legislation: The Promise and Record of the Financial Modernization Act of 1999

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  • John A. Tatom

Abstract

On November 12, 1999, President Clinton signed the most significant piece of financial services regulation to be enacted since the Great Depression, at least up to that time. When the Financial Service Modernization Act of 1999, better known as the Gramm-Leach-Bliley Act (GLBA), was signed, the financial services industry faced strong pressures for deregulation of the rigid structure imposed during the Great Depression. During the 2007-08 financial crises and ensuing debate regarding financial services regulation, the GLBA became a target as members of the financial sector, academia and government considered possible triggers that may have precipitated the crisis.

Suggested Citation

  • John A. Tatom, 2010. "Financial Legislation: The Promise and Record of the Financial Modernization Act of 1999," NFI Policy Briefs 2010-PB-05, Indiana State University, Scott College of Business, Networks Financial Institute.
    • Handle: RePEc:nfi:nfipbs:2010-pb-05
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    File URL: http://www.indstate.edu/business/sites/business.indstate.edu/files/Docs/2010-PB-05_Tatom.pdf
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    References listed on IDEAS

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    1. David VanHoose, 2017. "The Industrial Organization of Banking," Springer Books, Springer, edition 2, number 978-3-662-54326-9, December.
    2. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates," Introductory Chapters, in: This Time Is Different: Eight Centuries of Financial Folly, Princeton University Press.
    3. George Benston, 2000. "Consumer Protection as Justification for Regulating Financial-Services Firms and Products," Journal of Financial Services Research, Springer;Western Finance Association, vol. 17(3), pages 277-301, September.
    4. Reinhart, Karmen & Rogoff, Kenneth, 2009. ""This time is different": panorama of eight centuries of financial crises," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 77-114, March.
    5. James B. Bullard, 2010. "Containing risk in the new global financial landscape," Speech 149, Federal Reserve Bank of St. Louis.
    6. Barth,James R. & Caprio,Gerard & Levine,Ross, 2008. "Rethinking Bank Regulation," Cambridge Books, Cambridge University Press, number 9780521709309, December.
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    Cited by:

    1. Ilias Anthopoulos & Christos N.Pitelis, "undated". "The Nature, Performance, Economic Impact and Regulation of Investment Banking," Working papers wpaper137, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.

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    More about this item

    Keywords

    Glass-Steagall Act; Dodd-Frank Act; financial regulation; financial crisis;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

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