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Gramm-Biley Act 1970

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Gramm-Biley Act 1970
Throughout the sample period, many regulatory environmental changes occurred which would change the relative costs and benefits of bank conglomeration. For most of the 20th century, the Glass-Steagall Act of 1933 (GSA) separated commercial banking, investment banking, and insurance activities. This legislation gradually eroded by way of court outcomes, regulatory interpretations, and new loopholes; banks could gain more income from securities in the late 1980s, and insurance in the early 1990s. This process culminated in the Gramm-Leach-Bliley Act of 1999 (GLBA), which effectively removed cross-industry barriers. Banks operated under this regulatory environment until the Dodd-Frank Act of 2008 (DFA), which repealed parts of the GLBA and reinstated
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