Changes

The Gramm-Leach-Bliley Act passed, which repealed parts of the [[Glass-Steagall Act]]<ref>The formal repeal was a recognition changes had already taken place, such as the [[Federal Reserves]]' revision of Regulation Y to make it easier for Bank Holding Companies with a satisfactory [[Community Reinvestment Act]] (CRA) rating to receive quicker approval for acquisitions and engage in other activities. [http://www.frbsf.org/publications/community/investments/cra97-3/regy.html Regulation Y Revised - Changes to the Federal Reserve Application Process,] Community Investments, Volume 9; No. 3; Summer 1997, By Mike Johnson, Applications Officer, Federal Reserve Bank of San Francisco.</ref> ; in signing [[President Clinton]] remarked Glass-Steagall was "no longer appropriate."</ref> regulating Bank Holding Companies (BHCs) and passed during the [[Great Depression]]. The new law let commercial and investment banks to merge with insurance companies into newly created '''Financial Holding Companies''' ('''FHCs'''), and allowed for [[proprietary trading]] on their own behalf. FHCs could be encumbered with the bad debts and risky investments non-banks held and BHCs specifically had to stay away from. The result was "too big to fail" behemoths like Citigroup.  

'''Financial Holding Companies''' ('''FHCs''') were created with passage of the Gramm-Leach-Bliley Act, which also repealed parts of the [[Glass-Steagall Act]].

 

The formal repeal of Glass=Steagall was recognition of changesthat had already taken place, such as the [[Federal Reserve]]s' revision of Regulation Y, making it easier for Bank Holding Companies with a satisfactory [[Community Reinvestment Act]] (CRA) rating to receive quicker approval for new acquisitions and engage in other activities.<ref>[http://www.frbsf.org/publications/community/investments/cra97-3/regy.html Regulation Y Revised - Changes to the Federal Reserve Application Process,] Community Investments, Volume 9; No. 3; Summer 1997, By Mike Johnson, Applications Officer, Federal Reserve Bank of San Francisco.</ref>

 

The Glass-Steagall Act regulating Bank Holding Companies (BHCs) and passed during the [[Great Depression]]. The new law let commercial and investment banks to merge with insurance companies into newly created financial holding companies, and allowed for [[proprietary trading]] on their own behalf. FHCs could be encumbered with the bad debts and risky investments non-banks held and BHCs specifically had to stay away from under Glass-Steagall. The result was "too big to fail" behemoths like Citigroup.  

==Notes==

==Notes==