Congress Sends Financial Services Reform Bill to President

Washington, DC, November 5, 1999 - On November 4, the Senate approved the conference report on S. 900, the "Gramm-Leach-Bliley Financial Modernization Act," by a 90-8 vote. A few hours later, the House of Representatives passed the conference report by a 362-57 vote. The votes are historic steps for financial modernization legislation, which has been considered in Congress for more than 20 years. The President is expected to sign S. 900 shortly.

S. 900 repeals the Glass-Steagall Act's restrictions on bank and securities firm affiliations and amends the Bank Holding Company Act to permit affiliations among financial services companies, including banks, registered investment companies, securities firms, and insurance companies. It also imposes privacy requirements and disclosure obligations on all financial firms, even if they are not affiliated with a bank or thrift.